Credit Newsletter

Raquel Estrada pd.7/8

Section 1: The Basics of Credit

What is credit? With credit you are able to borrow money and in the future pay it back. You must have a good credit score to borrow money.

What are the forms of credit? Some form of credit are Credit Cards and Personal Loans.

What costs are associated with credit? Credit is not fee and you have to pay interest APR.

What determines if someone gets credit and how much they get? To get credit, you must demonstrate your creditworthiness. The lender has to see if you have are qualified and see your credit score . The Credit Bureau can send the lender with a Credit Report of anybody adult.

Section 2: Vocabulary Watch

The credit bureau has a record of every adult including: Bounced a check, Missed a rent payment, Been sued, and Bankruptcy. So when it comes time that you ant to borrow money for something. The lender will ask the credit bureau for this information.

Credit cards are sometimes a key factor why people have bad credit score. some common credit cards are VISA, MasterCard, Discover, AMEX. credit cards can also carry the balance from one month to the other.

CREDITWORTHINESS- depends on the capital. This shows the value of what you own. It can range from savings, investments, and property you own. Capacity is the the ability of paying your loans. Character is the sense of financial responsibility. (Having a steady job)

Section 3: Credit Cards: What You Need to Know

What is a credit card? A credit card is a way too borough money and pay it off later.

The common ones can are VISA, MasterCard, Discover, AMEX.

Where can you use credit cards? You could use them mostly everywhere. (store, anywhere you could buy things)

What are the benefits and costs of using credit cards?

There is a annual fee of 15-100 dollars. If you pay by the date you won:t have to pay Interest (APR). There is a credit limit, there is a max amount that you could not over pend. If you do you will get a over the limit fee. Also you could get an additional Penalty Fees because of due to late payment, over credit limit, returned payment.

Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

Credit card can seem a easy way to buy things. You should always be careful and make sure that you will be able to pay of what you bought. This could effect your credit score if you don't pay all you monthly bills. The best time to get a credit card is when you are twenty one. You know how to handle your money a little more than if you are eighteen years old. There are late fees which you have to pay if you don't pay on time. This can effect your credit score and it' s hard to get it back to a good score. You will not be able to buy a house with a bad credit score. In many college campuses they will offer student a credit card, but the best thing is to stay away until you know that you will be able to pay all your monthly bills.