Reflection Blog (15 May 2014)

This week, the class focused primarily on credit. We learned the benefit and cost of having a credit card and we learned what determines our credit. Some benefits for using a credit card is that it establish a credit for you, it can help you in some emergencies, you don't have to carry a lot of money with you, and etc. But some disadvantages are risk of paying fees and interest. It also lessens your future buying power, since you are basically borrowing someone else's money. Anyway, businesses and loaners check your credit report and score to see how reliable you are to pay back. The score range from three hundred to eight hundred and fifty. You want to get the higher score of course, which is eight hundred and fifty, and you want to avoid three hundred, which is really bad. It is best that you do not reach near the maximum amount of your credit card, since it will lower your credit score. It is also good for you to keep it for a long time (while making a few purchases, so that it won't go inactive), so that you can get a better credit score. Also there are three major credit bureaus. They are Experian, TransUnion, and Equifax. The class also watched videos on these and we also search up some credit cards. We have our paycheck this week too and we been introduced to the online store, which the items there are expensive. I believe that we did not have any bills too, which is great! Also our class is finally ahead of second block, so hip-hip hooray!