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Credit & Credit Cards

The Basics of Credit

People often wonder what credit is, basically it is showing if you are responsible for personal loans in future acts. There are a lot of ways to gain credit but you need to prove that you have "creditworthiness" ones that is done you can use Credit cards. You can also take many different kinds of loans by a bank lender, to make sure you are worthy enough for a loan they collect credit bureaus which shows all information of your credit. All of them require a cost that consists of interest on each of them that you are giving a specific time to pay off, which determines your credit score to improve it on your credit reports.

Vocabulary Watch

Creditworthiness might be like a joking term, but it is definitely a real term. This is what determines your ability for loans and every way you could think of to gain your credit. Once you got through all of that you will have to end up paying an interest, which means they give you a percentage up to 29% that gives you more money that is needed to be paid they call it an Annual percentage rate for your credit cards and what not. Then finally a term that just is sometimes confused is just CREDIT, people don't exactly know what it is sometimes it is basically what shows if you are a trust worthy person to lend money to, basically just shows your responsible.

What Exactly is a Credit Card You May Ask? WELL.............

A credit card is basically imaginary money, it is used when you have no cash on you at a specific time. It must be paid back in full along with a interest rate. Also the cards come with an annual fee which is paid monthly to be able to keep the card. You can use credit cards pretty much any where because it is just like cash but you need to make sure you can pay off what you put on. Otherwise you may end up with penalty fees that make the monthly price go up even more and can effect your credit. You do have a credit limit though it will give you a maximum amount that you are able to spend, and if you go over the limit you do end up getting more fees. There are many benefits you get with the cards they help build up your credit and also give you many rewards if you keep up with payments and use it for spending.


You must make sure that you responsible for a card, it should only be used in emergencies only and also you should make sure that you will be able to pay it off in time of payments do. Never ever over spend with one because it could definitely put a big whole of debt in your life, that you may spend the rest of your life digging yourself out of. Just shop responsible with one and never get carried away would be the best advice for anyone with that plastic money in there hands.