Credit Newsletter

By: Yazmin A. Jimenez

Basic of Credit

● What is credit?
Credit is a way to buy what you want when you want it and not free money and good for good purchases, It helps you earn credit, when you want to borrow money they can view your credit Report there they see your Credit score and if it is good the lender know if you are person that can pay their loans.

● What are the forms of credit?
There are different forms to earn credit like installment loans ,student loans,mortgages, credit card, car loans and Personal Loans.

● What costs are associated with credit?
APR or also known as Interest Rate which is a yearly cost for money you borrow, but if you make a late payment your APR go down. And also the Credit Bureau who collects your credit rating
● What determines if someone gets credit and how much they get?
Character, are you trustworthy
Capacity, capability to pay it back, like the Credit Bureau that makes credit rating available to Credit car companies
Creditworthiness , what's your history
Collateral, what you have of value

Credit Cards

What is a credit card?
A Credit Card is a plastic card that you can get in the bank. You also get a Credit Limit for the maximum amount of credit that the lender will extend to you
● Where can you use credit cards?
you can use credit cards to purchase goods and services on credit.

● What are the benefits and costs of using credit cards?
You get Annual Fees for having the privilege of the credit card, Interest Rates which is the sum of money you are charged for its use, and Over The Limit Fee if you overpass you credit limit. You can also get penalty fees for being late on your payments