Credit Newsletter

Get educated on credit!

The Basics Of Credit

If your wondering what credit is and the basic information about it this is the Newsletter to read!

Credit is money that you borrow to purchase goods and services and you pay it back at a later time. The different types of credit would be credit cards, personal credit, student loans, secured loans, unsecured loans, revolving loans, and installment loans.

Some of the advantages associated with credit are convenience for one. With a credit card you always have it and you don't have to worry about taking out cash and counting through it. Now a disadvantage is you have to pay attention to how much you spend and worry about your credit score. Peoples credit scores are very important because it determines someone eligibility for financial choices.The Fair Isaac Corporation(FICO) determines credit scores by using a formula to come up with the number. Being aware of this formula can help people keep track of their credit.

Credit Cards: What You Need To Know

A credit card is a card with money on it that you can use to purchase things that you pay off. You have a credit limit though so you have to be careful about how much you spend before you pay the bank back. Using a credit card is easy and convenient. You can use a credit card just about anywhere to buy something that you want or need. Some places you can not use a credit card, but most major places you can. Advantages of credit cards are that they are very convenient, but sometimes they're not the best because if you go over your limit over-the-limit fees.

Shopping For Credit

Comparing Credit cards


Bank Of America


Annual Fee- None

APR- 0% for 18 billing cycles

Advantages- This card is the lowest available rate for Bank Of America cards.

Disadvantages- APR is only 0% for 18 billing cycles.


Chase

Intro Fee- $0

Annual Fee- $0

APR- 0%

Advantages- Just like Bank of America everything is 0% for the beginning of using it.

Disadvantages- Only 15 billing cycles its free.


I would say Bank of America would be the better choice because its APR is 0% for 18 Months.

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

Some ways you can keep from falling into the credit card trap would be to just not own a credit card. If you do not have one then you cant do any damage to your credit score or to wasting money. If you need one for certain purposes like traveling or food then you can choose to only have one and use it specific purposes. Another way to be smart about using a credit card is if you do use one you should pay off the balance each month and do not forget or else the bank you are with will charge you more.