Credit Cards for a Better Future

Melissa Dobry

What's a Credit Card & Why Should We All Get One?

A Credit Card is a plastic card that magically has money in it. You use it to buy things. Credit is what you can get so when you don't have money on you, you can use it to pay it off later, but that money builds up over time. To get a Credit Card, you can sign up online, by phone, or even in person. You want to make sure you read everything through and understand what is going on because you don't want to be charged for something you don't know. With Credit comes loans. Personal Loans are things you would need for yourself. Such are student loans for school, loans for buying a house or car. Something that only really matters to you. The lender would usually be the bank because not only could they give you money and make sure you pay them back, they get an interest so you could pay them more and then some. Money that is just too much to borrow from someone. You pay off those loans by monthly payments. With those monthly payments, you have to pay an interest rate, (Annual Percentage Rate). When getting the card, you want to see the extra fees they are charging you because no one wants to lose money without even knowing it. The bank will look back on if you had any payments that you missed or if you had a different card because they don't want to be giving the card just to anyone. They want to give a Credit Card to people who are working and are willing to pay what they have spent without a late fee. Credit Card Companies don't like to have people get a card and never pay them back. Just be careful what you do with the money because power could make people go crazy. People who are Creditworthiness are people who have a good Credit Score. Credit Score is a number that was made up to see if someone is good at spending/saving money and paying the bank back. To get a Credit Score, you use a Credit Bureau. That adds things up to see what kind of score you will get. A Credit Score shows if you are worthy of getting a house, a car, or even going to school. They all want your money, but they don't want to be ripped off from it. The more money they can get from someone, they better.


Having Fun Isn't Hard When You've Got A Credit Card

Dealing With Credit Cards

A Credit Card allows you to pay for things when you don't have money exactly on you. With that, you have to pay it all back and maybe a bit of interest at the end of the month. People think that they could buy anything, but they forget that they do have to pay for it all back. You can use Credit Cards about anywhere, well unless they only take cash. Stores mostly go for Credit, but some don't when they know they need the money right away. The cost is that if you don't pay your bill, real bad things with happen. That's why people have Credit Limit. That's when you set a certain amount of money on your Credit Card, so you don't go overboard. When dealing with Credit Cards, you should look into what you are exactly getting yourself into. You have Annual Fees, which are fees that you have to pay yearly. Most Credit Card companies don't have an Annual Fee, but you can never be too sure. With Annual Fees, you have Interest Rate(APR). That is after a certain amount of time, you start paying interest. Depends on your Credit Score too. If you have a good score you won't pay so much, but if you have a bad one, you will. If you end up not paying the bill, you will get a Penalty Fee, which means you have to pay more for it all. Over-the-limit Fee is when spend too much. Which means, you spend more than your Credit Limit.


How To Be Safe

Always have a plan when dealing with Credit Cards. Know exactly what you are buying and really see if you want it. Leave and when you still want it, go back and get it. Don't pay for stuff out of emotions, that will just ruin you. Know what you are spending. Don't pay for something so expensive just because you can pay it off later because if you don't have all that money now, you probably won't have it at the end of the month. Know your bank and see for ways you don't have to pay so much for fees. Make sure to keep a good Credit Score as well. You'll need it for a lot of things. Be smart with money.