Basics of Credit
What is credit? Credit is the ability to obtain goods or services before payment, based on the trust that payment will be made in the future which will benefit your creditworthiness. What are the forms of credit? The forms of credit are credit card loans, auto loans, mortgage loans, personal loans, and home-equity loans. Lenders lend out money that you need to pay back and if you don't it affects your credit score. What cost are associated with credit? The cost of credit can harm your credit score if used immaturely, for example if you are making a payment on something and don't pay all of it off then you will be charged interest. What determines if someone gets credit and how much they get? Credit score because it determines the eligibility for all kinds of financial endeavors, such as credit cards and home loans. The credit bureau collects information relating to the credit report of individuals and makes it available to credit card companies and financial institutions.
Credit- The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.
Credit Score- A credit score in the United States is a number representing the creditworthiness of a person, the likelihood that person will pay his or her debts