Credit
Newsletter Project
What is credit and what are the different forms?
Credit is money borrowed to receive goods when you need them. One of the different types of credit is a revolving credit line. You make different payments each month, depending on how much you use that particular line of credit. An installment account has a fixed payment due each month. The final type of credit is the open account. Open accounts each have a balance that is to be paid in full every month.
What are the costs and benefits associated with credit and how do you get credit?
Having a credit card and using it wisely (making payments on time and in full each month) will help you build a good credit score. A disadvantage would be credit card lenders charge you an enormous amount of interest on each balance that you don't pay off at the end of each month.
Credit Cards
What is a credit card?
A credit card allows you to borrow money from your bank to make your purchases.
Where can you use a credit card?
You can use credit cards anywhere as long as they accept them.
What are the costs and benefits of using a credit card?
Credit cards can save you time and trouble. You don't have to search for an ATM or carry cash around with you. A disadvantage of using credit is that revolving credit makes it easy to spend beyond your means.
Shopping for Credit
Chase Bank
There are many Chase Bank credit cards to choose from but I chose the Freedom Unlimited card. There is not APR until after 15 months. After that period the APR is 4.24%, 19.24% or 23.24%. An incentive this card has is that you earn a $150 bonus after you spend $500 on purchases in your first 3 months from account opening.
Smart Consumers
In my personal opinion, I don't think credit cards are a good idea. For luxury reasons, credit cards should not be used. You don't actually have that money. They are not necessities. When taking out loans for things that you absolutely need such as down payment on a car or college tuition. When picking out a credit card company I believe you should choose a company that does not increase its interest rate and lets you pay it the set amount over a long period of time.
Bank of America
The Bank of America Rewards card requires 0% APR for the first 12 billing cycles. After that there is a 13.24% - 23.24% standard APR. An incentive would be an online $100 statement credit offer after making at least $250 in purchases in the first 90 days of your account opening.