Credit Newsletter
By: Ana Cajamarca
The Basics of Credit
Credit is the ability to obtain goods, money, or services in return for a promise to pay later. The forms of credits are Loans, they let you borrow money that must be repaid with interest. Installment loans, This type of loan is repaid in fixed monthly payments over a specific period of time. Credit cards allow repeated transactions up to a maximum credit limit, also known as your available credit limit. The costs that are associated with credit are personal loans, student loans, mortgage loans, car loans, etc. Someone can determine how much a person can get by their credit score. For example the credit bureau is going to give that information to a mortgage lender and then they can determine if that person is creditworthy.
Vocabulary Watch
Personal Loans- Consumer loan granted for personal use, as opposed to business or commercial use. Lender To give or allow the use of temporarily on the condition that the same or its equivalent will be returned. Credit-The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit".
What You Need to Know
Don’t Fall Into the Credit Card Trap
Make sure to pay everything on time to avoid late fees. Try to avoid the minimum payment,