Credit Newsletter CE

The Basics Of Credit

What is credit?

Credit is being able to borrow money with a promise that you would pay back all the borrowed money in the future. Credit involves having to pay for interest (APR), you get an annual percentage per year for the amount that you have to pay for the amount you’re borrowing.

What are the forms of credit?

The forms of credit are like credit cards and personal loans. Credit cards are what you can pay with almost anywhere it takes out the money from your account once it’s swiped. A personal loan is something you want to buy but can’t pay right away so you borrow money with interest, first they check for creditworthiness, so they know that you could pay it all back. It would be looked over by a lender that would look for character, capacity, and capital in you.

What cost are associated with credit?

It is associated with the fees you have in your history and your credit scores have it all. Your credit scores hold all you history of the credit you have ever used with all your information as well as a credit report.

What determines if someone gets credit and how much they get?

A person’s credit on how much they get could be determined by their Credit Bureau, which is how many times the person gave a bounced check, if they have ever missed a rent payment or if they’d ever been sued. They check their number to see their creditworthiness. So they can know if they are able to pay things on time.

Credit cards: What You Need To Know

What is a credit card?

A credit card is a card you can use to purchase any kind of goods or pay for services. The money you pay with on the card comes out directly from your bank account. You do have a credit limit, which is the amount of money you can spend using the card. If you go over the limit then you would have to pay a penalty fee or the credit card would be declined. The credit card also has an annual fee in which you have to pay yearly for. It doesn't matter how much money you spend with the card or how much it cost you, you still have an annual fee that needs to be paid every year.

Where can you use credit cards?

You can use your credit card almost anywhere that you want to purchase a good or pay for a service. You can use a credit card at restaurants to pay for your food or at the stores to pay for any clothing you buy.

What are the benefits and cost of using a credit card?

The benefits of using a credit card are that if you pay your entire balance by the due date then you do not have to pay any Interest Rate (APR). The cost is that If you do end up missing the due date of paying then your interest rate could be up to 29%. Another cost is, there is over-the-limit fee and if you do go over the limit then you would have to pay for that too. There’s also penalty fees, that are cause by late payment, over credit limit, or returned payment. That could also result in you having to pay more interest rate.

Smart Consumers: Don’t Fall Into the Credit Card Trap

A good ways to stay safe while using a credit card would be not to share your pin number with anyone. If you do then anyone would be able to access your credit card and pay with it with your money. Another tip, if you lose your credit card go to your bank and cancel it as soon as possible because anyone could have it. Also, don’t use the credit on everything you buy because it’s harder to think about the credit card as cash and so you end up spending more.