Financial Advice

Basics to credit card knowledge

Basics of Credit

A credit how much are you able to take before you pay for it. Meaning if you have a credit card, the credit card bureau trusts you with a certain limit on it. You can set up a credit report with your bureau that won't effect your credit score. There are many forms of credit. You can have a car, student loans or even something simple as a credit card. Some benefits of having a credit include getting lower APR and better deals. But their is a downside to this, if you take out a credit. You must pay it back with a percent of what ever it is you bought. Some of the things that factor into getting a credit card include you credit score, duration of your credit score and your income, these are just some of the things that determine it.

Must Knows About Credit Cards

A credit card is basically a small loan. The company that provides you with the credit card trusts you with a credit limit that you can use, but you have to pay them back with an APR on top of what you have purchased. Credit cards can be virtually used anywhere. Online, in store or even at your gas station around the corner. The major benefit of using a credit card is that you don't actually need to have the money to spend it. You can buy yourself a nice TV and pay for it over time. But if you fail to pay for your monthly payment, penalty fees may apply. In addition, their might be consequences if you go over the limit. Meaning their might be some fees that you have to pay extra.

Using Your Credit Card The Smart Way

There are many tips and tricks on how to use your credit card the smart way. Some of them are don't spend what you don't have. For people that have a low credit score and are just starting out. Whatever you spend on your credit card, put aside for your bill. So that you don't manage to spend more then what you actually have. This way you can ensure to have your payments on time and in full. Also don't exceed 30% of your credit card limit. If you do this your credit score will rise faster and you will built your credit score well. Use your credit card for things on your day to day basis. Even if it only means tanking up your car of just buying something to drink. This will prevent you from spending your money on big value objects. So that at the end of the month, you wont have any trouble paying the bill.


I knew all this information due to me buying a car in the past month. I'm not sure what websites I should put since I just used that internet for pictures.