ECONOMICS 1 | Page 11

THINGS TO KNOW ABOUT CREDIT

CARDS

1. Have a good credit because it can give you lots of benefits. For example, low interest rates on the credit card. As well it can be a better chance for a approval of a loan.

2. If you are in a high debt can be bad for credit influence. It make you look like you take risks. Spending more than what you get can get you to a high debt.

3. The scores for the credit car card are based on your history, the use of your credit, average credit, inquiries and account mix.

4. Before signing the contract to get a credit card, read it carefully. The contract can include credit line, annual percentage rate, interest calculation method, fees, the period you have to pay the interest, etc.

5. The interest rates can go from 0%, balance transfer to 30%. The people that receive the great rates, meaning the lowest interest are people with proven history.