Learn how to use credit responsible with bob and sharol

Learn how to use credit responsible with bob and sharol

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  • My name is bob, this is my friend sharol she just got her credit card and I am going to be explaining how to use credit responsible 
  • My name is sharol, and bob is credit really that hard to use. Can't i just go buy something then pay it later.
  • Okay Sharol now when using credit you need to be able to pay back the money that you spent 
  • what do you mean i have to pay back the money I thought the bank paid for it and that was it
  • Lets say you wanted to buy a purse with your credit card and the purse costs $50 you would use the banks money to pay for it , then when the bill comes you have to pay the bank back
  • That makes sense I am borrowing the banks money so I have to pay them back 
  • Your credit card does have a limited amount of money on the card and once you make it to that balance your card will be declined
  • I thought the credit card would be unlimited, man that sucks.
  • Sharol I know you don't have a car so when you have his credit card make sure you pay back the full amount and that its on time to improve your credit score 
  • Credit Score? what is that?
  •  Sharol a credit score is based off of how well you back the money you spent on the credit card and by paying it off on time you will have a better chance of getting the loan for your car
  • Okay now the credit score makes sense. Thanks bob for teaching me how to responsible use my credit card and teaching me about the credit score 
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