A How To Guide
What Is Credit?
What Are Some Different Types Of Credit?
- Credit Cards- a plastic card issued to you by a bank or business, allows you to borrow money with the trust that you will pay it back
- Loans- an amount of money that is borrowed with the intent of paying it back by interest
What Are The Costs And Benefits Of Credit?
- Shop online
- Buy gas
- Travel benefits
What Is Creditworthiness?
Credit Report- a report of a person's credit history made by the Credit Bureau to be given to a lender.
Credit Bureau- a company that collects everyone's credit information and makes individual reports for each person.
Credit Cards: What You Need To Know
What Is A Credit Card?
Where Can You Use Credit Cards?
Tip: Use your credit card when shopping online. It builds credit and if the purchase turns out to be a scam, the person or company that has your card info won't be dipping into your personal bank account.
What Are The Benefits And Costs Of Using A Credit Card?
- Travel rewards
- Hotel rewards
- Account protection
- "Limitless money"
- Interest - a percentage you pay with each credit card bill
- Annual fees - a yearly fee for owning a credit card
- Penalty fees - late payment fee, over-the-limit fee, etc.
An over-the-limit fee is a fee that is applicable to you when you spend more than your credit limit per month.
Smart Consumers: Don't Fall Into The Credit Card Trap
- Have at least one credit card in your life
- Pay back your card as soon as possible
- Try to pay more than your minimum amount when paying back your fee, this will help you get it paid off faster
- Use it for emergencies only
- It's easy to abuse a credit card, try to limit yourself much lower than the credit limit that is placed on you
- Don't fall behind on your payments, debt will catch up to you quickly
https://www.capitalone.com/financial-education/credit-and-loans/credit-cards/using-credit-cards-responsibly/ http://www.myfico.com/crediteducation/types-of-credit.aspx http://www.psdgraphics.com/psd/credit-card-template/ https://dayair.org/blog/do-i-buy-with-cash-credit-card-or-take-out-a-loan/