More About Personal Finance

  This week in Personal Finance we learned about credit. First, we learned there are many methods of financing a purchase. One method is an installment plan, where the buyer get possession of the merchandise by a payment of deposit and complete the purchase by paying a series of regular installments. Another method is layaway. This is a system of paying a deposit to secure an item for later purchase. Also there is secured and unsecured loans. The banks gives you money so you can offered to buy what you want or need. Unsecured loans are only supported by your credit score. Some sources of financing are retail stores, banks and credit unions, finance companies, pawn shops, payday loans, title loans, and private lenders. But remember payday loans and title loans are bad! You also need to know the types of credit: open-end credit, closed-end credit, service credit, revolving credit, secured loans, and unsecured loans. When buying a credit card look out for things like APR, annual fees, compound interest, ect. Learning this will be very helpful to us in the future. We now know how to finance a purchase that we may not be able to afford. Also it is important to know the types of credit and what to look out for when getting a credit card.