Credit Newsletter

by Yanni Grande

Basics of Credit

Credit allows you to make big purchases possible, but you have to pay for the money you borrowed earlier. Some examples of Credit would be car loans, house loans, and credit cards. Items You can't purchase at the moment can be payed with credit. However things like your credit score determines whether or not you can receive credit Your credit score is a number based on your credit record. The 4c’s also determines whether or not you get credit

1) Character, are you trustworthy
2) Capacity, do you make enough money
3) Credit worthiness what’s your history
4) Collateral - what you have of a value if you can’t pay back

You can check you credit score once a year for free from a government official web sight.

Failure to pay your credit rates on time will increase you interest rate (APR) meaning you will pay more than you originally payed for.

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Vocabulary Terms

Credit: You can make big purchases possible

Credit Score: A number based on your credit report

Credit Cards: Used to make purchases if you do not have cash at hand.

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Credit Cards: What you need to Know

A credit card is used to make big purchases possible. You can use it at almost every store. Having a credit cards means you need to be responsible about your payments, and purchases. There are different fees that you have to pay if you fail to pay before the due date this is called a penalty fee. Some examples of Penalty fees would be Over the limit fees ( Go over the amount you are allowed to borrow), and annual fees. Every time you fail to pay your feed makes your APR go up meaning you have to pay more than you owe. Credit cards have a credit limit which means the amount of money you are allowed to borrow.
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PRO Tips on using a credit card

DON'T buy anything you don't need. Only make purchases that are necessary. Having a low limit credit card would be a very smart idea. that way you won't be tempted to buy a lot of things. You should sign your credit card as SOON AS POSSIBLE, don't ever share your personal credit information with anyone, always use a secure browser, don't max out your credit card, and be sure to Pay on time. Always keep track of what you buy as well.
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