Credit Cards
In the most basic sense, think of credit as borrowed money. Credit cards offer
you a line of credit (an amount of borrowed money) that can be used to
make purchases, balance transfers, etc. requiring that you pay back the
loan amount in the future.
Credit cards are obtained based on your ability to pay back previously
borrowed money. A borrower's spending habits are used to determine
his or her risk for not paying the money back, these risks are
based on one's credit report.
Credit cards are an amazing tool if you can use them responsibly. If you
cannot pay off your credit card bill every month in full then you do not
need a credit card and you should not be using one.
you a line of credit (an amount of borrowed money) that can be used to
make purchases, balance transfers, etc. requiring that you pay back the
loan amount in the future.
Credit cards are obtained based on your ability to pay back previously
borrowed money. A borrower's spending habits are used to determine
his or her risk for not paying the money back, these risks are
based on one's credit report.
Credit cards are an amazing tool if you can use them responsibly. If you
cannot pay off your credit card bill every month in full then you do not
need a credit card and you should not be using one.