| Credit
Learn
about different types of credit and how they work.
Different
Types of Credit
Different types of credit have many advantages and disadvantages.
This is about three types of credit, credit cards, bank loans,
or financing with no payment for 6 months.
Credit
Cards
One type of credit is a credit card. It has many advantages
such as not having to carry around cash. However, there are
also many disadvantages. One is that if you lose it someone
else could pick it up and spend it, forging your signiture,
until it reaches its limit, which is usually thousands of
dallars. Also, you can pick your limit and spend up to it
but still not have the money to pay off the bill. Then people
would come and reclaim your items.
Bank
Loans
Bank loans are another type of credit that has a good and
bad side. They're good because if you don't have enough money
for a car or house you really need you can get a loan and
pay it off in installments. But on the bad side, you may not
be able to pay it off which can have terrible consequences.
Also, in the end you usually pay at least $1,000 in interest.
Financing
With No Payment For Six Months
A third type of credit is financing with no payment for six
months. Well, that could be good because you don't have the
money now and are getting a raise soon, but still, you have
to pay just as much in six months as you do now. There is
not a discount. So it does not help or do anything at all
if your money situation is not going to be better.
Overview
There are many advantages and disadvantages to different types
of credit. You'll just have to decide which means more to
you, the advantages or disadvantages.
|
