Using Credit Wisely
As a consumer learn how and when to use credit
The Basics of Credit
- Credit Worthiness-is reliable to pay back a loan.
- Credit Bureau- firm that investigates creditworthiness and assigns a credit rating to a consumer
- Interest (APR) -Percentage of the sum borrowed.
Credit Cards:What You Need to Know
A credit card is a plastic card issued by the bank, or business,that is used for purchasing goods or services on credit.With credit cards you can buy things, withdraw money from an ATM and make balance transfers,there are different interest rates depending on which card you choose.There usually is an annual fee which is any fee that is changed yearly.You can also get credit limit which is the most that a credit card company will allow a person to take out at once on a card.With credit cards you have a responsibility to uphold if you don't uphold them you get fees. If you don’t pay your credit card bill on time, or if you spend over your credit limit, generally your credit card company will hit you with a penalty fee or over-the-limit-fee.The benefits of a credit card is you don't have to carry money or a checkbook around,also if you are traveling to a foreign country you don't have to carry around foreign currency.