Financial literacy includes credit knowledge

Ben Sax – Mustangs Ahead

(LAKEWOOD RANCH, FL) – April is Financial Literacy Month, which recognizes the skills that allow an individual to make informed and effective decisions with their financial resources.

Many Mustangs understand the importance of credit cards; however, they do not know how to get one.

LRHS economics teacher Vito Bavaro said students can get a credit card “at your local bank or when you are 18 advertisements will be sent to you.”

The most important thing about credit cards is credit score. Bavaro said that credit score is an evaluation “used by the lending industry to measure how well you pay back your debt.”

According to Experian, “Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit.” For this reason, it is vital to maintain a good credit score.

Credit card companies charge around a 2% fee for each purchase made. Bavaro said, “Some cards have yearly fees as well as a fee to use and late fees.”

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