Credit News

Veronica Reed

The basics of Credit

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Credit is the ability to obtain goods or services before payment, based on the trust that payment will be made in the future, a credit card can help you buy the stuff you need now so you can pay later. But some times there are lenders that let you barrow you money but there is interest in those or personal loans. There are forms of credit are low limit, secured and student, they check you credit worthiness to make sure you are able to take care of your credit report. There are costs if your credit is late such as it can affect your credit score and the credit bureau might come after you. The four C's determine if someone gets credit and how much they get, they are Capacity, credit worthiness, and collateral.

Vocab Watch!

Credit- you gain for paining on time

Credit Score - is a number that see if your able to buy things like a house, the larger the number the better.

Credit Bureau- a thing that if you owe money they come after you.

Credit Report- Shows all your purchases.

Creditworthiness- is to see if you are responsible enough.

Interest (APR)- a fee you get when you barrow money.

Lender- someone who barrows money.

Credit Cards- use to pay upfront then you get a bill you pay at the end of the month.

Personal loans- money you barrow to pay for things.

Credit Cards: What you need to know

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A credit card is a card that lets you use money upfront that you do not have and you pay later in the month but with some credit cards there are some annual fees which might have interest rates on them or they might have a Credit limit which makes sure you don't go over the limit. You can use a credit card pretty much anywhere that accepts it but if you don't pay on time there are penalty fees for paying late. There are many benefits of using credit cards such as if you don't have the money at the time but you will it makes it easier to buy necessities, but there are costs of using a credit card like if you spend too much money there is an Over-the-limit-fee.

Smart Consumers: Don't fall into the credit card trap

There are many tips in using a credit card and some safe ways to track your spending such as sign your cards to make sure no one else is using it. When doing online banking make sure you are using a safe browser. Don't overspend and don't max out. Also keep track of your spending so you know how much you have. And don't forget to always pay on time.