credit newsletter

by Stephanie Moreno

The Basics Of Credits

  • WHAT IS CREDIT?
Credit is being able to buy a good or service before the payment, Which gives you money when you need it.


  • WHAT ARE THE FORMS OF CREDITS?
There are two types of credits, Credit cards which are considered as visa, and store credit cards. Also when using a credit card you get a credit bureau which collects the credit rating and makes them available for credit card companies.There is also Personal loans that can be school,car or house loans.


  • WHAT COSTS ARE ASSOCIATED WITH CREDIT?
When you are getting credit you must always pay Interest, also when you get a credit card you have a limit to spend but by the end of the month you must pay all the amount you spend with interest. You need to be sure you have a good credit when purchasing big items like this, so in order to find out they make a credit report on you to see how good/bad your credit is, also it helps the lender determine whether you're going to pay off all your bills on time.


  • WHAT DETERMINES IF SOMEONE CAN GET CREDIT AND HOW MUCH THEY GET?
When applying for credit the company has to make sure you're creditworthiness, the company wants to make sure that you are going to pay all your bills on time and also have good credit. Also there are credit scores, meaning the higher the better. By having good credit you will be able to get more things and purchase items and you will have a good record.

Smart Consumers

  • WHAT IS A CREDIT CARD?
A plastic card issued by a bank for the purchase of goods or services on credit, but you have a credit limit and when you go over the limit you must pay a penalty fee.


  • WHERE CAN YOU USE A CREDIT CARD?
You can use your credit card anywhere, In any kinds of stores, but you do have to be aware of the amount you spend and how much your interest is going to cost. Also with credit cards you need to be sure to pay them off on time, before the deadline.


  • WHAT ARE THE BENEFITS AND COST OF USING A CREDIT CARD?
One good thing about using a credit card is that you can get a good first and pay for it later but you do have to pay an annual fees when using the credit card every year. The cost of using a credit card is that you do have to pay an interest rate for using the companies credit card. Another cost can be that when you use the card and go over-the-limit fee, you can get your card declined or eventually get a penalty fee.

Smart Consumers, don't fall into the credit card trap

When using a credit card you need to always make sure you pay your bill ahead of time. Try not to mess up your credit by paying anything late. Remember this can haunt you forever. As a young adult you may want to buy everything but the longer it takes you to pay it off, the more you're going to have to pay. Be sure to always be aware of your bills and do not mess up your credit because it can mess you up for the future, you won't be able to buy a house, car, or get school loans. Make sure you never sign up for any credit cards at school or anywhere because they can be the people to mess up your own credit. Also don't waste a lot of money and try to use your credit card as little as possible!