Oh shoot, Sammy's birthday is only a couple days away and I haven't gotten him anything
Just finished my breakfast, going to school now. Man can't believe my birthday only a couple of days away
Bob wakes up one morning to his alarm to find out that it's his son Sam's birthday in only a couple of days
What now? Sammy's birthday is so close, my pay doesn't come in until the day after Sammy's birthday, and I can't risk paying with the money I have now without going over the budget. Unless I can try credit...
Bob finds Sam already ready for school and eating breakfast in the dining room
So it says here that I can safely create a credit card account by knowing my credit score, having low enough debt, and including all of my types of income in the application.
As Sam leaves, he reminds Bob that his birthday is only a couple of days away which freaks out Bob knowing that he hasn't gotten a present for same left
Wow! It looks like I'm accepted to this bank for having a good credit report and good credit score. Now that i have a credit card, I can use it to pay for Sam's present, just gotta make sure I don't go on a spending spree with it like buying ridiculous clothes or items, I don't want to get a bad credit score and high debt
Bob starts to plan out how he's going to pay for Sam's present which is a video game. Then Sam starts wondering if he should use credit, which is a form of payment in which the borrower would borrow a certain amount of cash with the promise of paying it back with a little extra
Bob goes into the living room and uses his cell phone to apply for a credit card to help him pay for Sam's present. As he researches for cards he finds out that there's closed credit and open credit. Closed credit is a loan that one must pay in a specific amount of equal monthly payments. While Open credit is a line of credit established in advance so one doesn't have to apply for credit each time new credit is desired.
d After a while of paperwork and calls, Bob finally is able to get a credit card thanks to his good credit score and report. Credit score is a numerical summary of your credit history that indicates the likelihood of one repaying off a loan as agreed while credit report is is the record of your use of credit.