Know About YOUR Credit !
-Theresa S. Rosas
The basics of credit
- What is credit , you may ask ? Credit is making big purchases available . It's not free money .
- What determines if someone gets credit ? The four C's :
CAPACITY - able to pay the debt you owe .
CREDITWORTHINESS - paying your bills on time
COLLATERAL - take things you bought if unable to pay back the money you owe
- Credit is the ability to obtain goods or services before payment , based on the trust that payment will be made in the future
- Credit Score is the number based on your credit report
- Credit Bureau is a company that collects the credit ratings of individuals and makes them available to credit card companies,financial institutions , etc.
- Credit Report shows the amount of debt you owe . One free credit report a year .
- Credit Worthiness is trustworthiness with money as based on a person's credit history; a general qualification for borrowing .
- Lender is an organization or person that lends money
- Credit Card is a plastic card issued by a bank, business,etc. ,for the purchase of goods or services on credit.
- Personal loans are loans that establish consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay
What YOU Need To Know
The benefits of using credit cards ? Most people over a certain age have a credit card or two in their wallet . Some people learn the hard way that access to credit cards can bring financial difficulty. When used responsibly, some credit cards have rewards that compensate for their drawbacks. A wide variety of reward options are available, and research is necessary to find a card with appropriate benefits for your spending habits .
- The yearly fee charged by credit grantors for the privilege of using a credit card is known as the annual fees .
- Over-the-limit fees are fees that are assessed if your balance goes over your credit limit at any time during the billing cycle .
- Banks give you a certain amount of money amount that you're allowed to borrow, that is known as your credit limit .
- Make sure to sign your credit card
- NEVER share accounting info
- Use secure browser
- NEVER share your password
- Best way to protect your credit is be smart , check your credit report a year , pay more than a minimum balance , don't max out , keep track on things that you buy , and most importantly , pay on time .
FREE CREDIT REPORT WEBSITES :