So You're 18!
Here are some tips for being a responsible adult with credit
What is Credit??
The ability to borrow $$ in return for a promise of future payment from a lender (An organization or person that lends money).
aka “Buy Now…Pay Later”
Example: when looking to buy a car from a dealer, house, or school/personal loans.
Forms of Credit
What is a credit card and is there a catch to using one?
Credit cards and debit cards are not the same, debit cards you can only use the money you have available, and credit cards you are borrowing money until you hit a set limit. So you need to be responsible when using one or getting one.
What determines if someone gets credit (card) offer?
Terms you should learn!
2. Liability- A thing for which someone is responsible for; example debt or financial obligation.
3. Collateral- Something pledged as security for a repayment of a loan. Example: Your car title.
Ways to be responsible with Credit and Credit Cards!
Make full payments- Paying the balance IN FULL every month will show other lenders that you are responsible borrower.
Avoid impulse buys- Needs over wants!!
Limit the number of credit cards you apply for- When you apply for a lot of credit cards, it gets recorded and can damage your credit rating because it seems that you may rely too much on them.