Credit Newsletter

Ruben Hernandez

The basics of Credit

Credit is when a bank gives you money and expects you to pay it in the future. There are three forms of credit, Loans, Personal loans, and credit cards. Loans is when a lender lends you money and you have to pay them back with interest. Personal loans is when a bank or person lends you money and you have to pay them back with a equal certain amount periodically each month. When you buy things but get loans to buy it, you have to pay the loan back and it all adds up to your credit score. If you have a good credit score and people see that they are going to see that you are creditworthiness. In order for you to get good credit you have to pay back your loans on time and the correct amount and it all will build up and help you in the future because if you ask for a loan they look at your credit score. If you have never been late on a loan then you will have more points which is better.

Credit Cards : What you need to know

A credit Card is a plastic card where you can buy goods or services but in the future have to pay back all the money you spend on it. But you cant just go around buying whatever you want because there is a credit limit. If you don't pay your bill each month your interest rate will go up higher. You can use the credit cards almost everywhere to buy goods or services, like in restaurants, clothing stores, for bills etc. You are going to want to buy everything in the stores with your credit card but if you buy a lot of things and you cant pay your credit card bill then you are going to face penalty fees. Maybe you can shop a lot and not realize you went over your limit, and now you have to pay a over-limit fee. The benefits of having a credit card is not loosing cash or carrying cash around. You can also use it for mostly anything, the cost of a credit card is you can easily forget you have a limit and over shop and have a big bill.

Tips on having a credit card

In order to be safe while having a credit card you have to have a couple of rules for yourself. First you have to tell your self you wont use the card to buy everything so you can go in debt. Another thing you should consider is limiting your purchases or costs. If you want to have a good credit score you have to keep you credit card bills payed with at least minimum pay.