HUMS 202 Lecture Notes - Lecture 8: New Balance, Credit Score, Credit Score In The United States
1 Nov 2016
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What is credit and why is it important. Credit allows you to borrow money, and you make a promise to pay it back with interest. Interest is money a creditor charges to ley you borrow its money. People use credit for many reasons: emergency, easier and safer than carrying large amounts cash, allows you to buy things and pay for them over time, allows you to build credit history. Credit cards and charge cards will allow you to build credit history, debit cards and stored value cards will not. Credit card: allow you to obtain goods and services now and pay for them over time, you hav a revolving line of credit. Means you cn make purcases up to approved dollar limit such as 3 grand ad as you pay it back you can reborrow it. Must pay at least part of your bill every month. Minimum payment often a percentage of your balance.
