Beging Building a Good Credit
What you need to know about credit
Some forms of credit are secure loans, Unsecured,personal loans, Installment, Students loans, mortgages and Credit cards. The interest for loans varies by lender and its tie closely to the consumer's credit score.
The're benefits and costs of having credit; One big benefit is the people can use it to pay a big amount of money if they don't have all the cash at the moment to pay it. It can be very useful to carry all you money everywhere. It can also offer you a lot of sales, convenience of paying and keep better track of spending. On the other hand some of the costs of credit are fiance charges, if costumer is late to pay some item then they can charge extra money, total cost of an item sometime can get higher and sometimes the costumer can be in danger of identity theft.
Another important thing that you need to know before having a credit is not everyone gets credit (but the majority does) and that the amount is different for everyone. There are a lot of factors that determinate if you get a credit or not, and whats your credit limit. Some of the things that lenders look at are: credit score, personal income and if you as costumer have any debts.
Some of the benefits of having a credit card are: You can make a large purchase now and pay it later in small amounts, is easier than carrying cash and you can built up your credit score which will be useful later on. Some of the costs are: The ease of using credit cards can cause you to overspend, You can easily dig yourself into debt if you're not careful about your spending and had penalty fees and interest rates can make even a small debt seem larger over time.
Don't fall into the credit card traps
- Don't let the debt grow
- Keep track of your spending
- Be aware of how much money you can pay (spend) and how are you going to pay it in how many days.