Posted by Beth Kaspar | Aug 2, 2010
When used wisely, credit can enhance your life. It allows you to purchase things like a home, a car, and even finance a college education. Credit comes in many forms: credit cards, charge cards, car loans, mortgage loans, home equity loans, personal loans, consolidation loans, student loans, and more. When you use credit, it becomes a debt.
To purchase an item on credit means that to get the item now, you are willing to pay extra for it (called interest). Whenever you use credit, you should calculate the true cost of an item, which will include all fees and interest you pay. It is not uncommon for people who make purchases on credit to spend two to three times more than if they were paying cash for the purchase.
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| Tagged as: cards, charge, consolidation, credit, equity, home, installment, interest, loans, mortgage, personal, revolving, score, service, student, using, wisely, car