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

A credit card is a plastic card issued by a bank, for the purchase of goods or services on credit. Which were you have interest rate. You have a credit limit and if you go over that you have penalty fees. You can use credit cards almost everywhere.The benefits of using a credit card is that you get rewards, it is more convenient, the disadvantages are that you can get over the limit fees, you need to save the receipts and track on everything that you spend.

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,