How Credit Works

Daniela Carrera

Credit

Credit is when you are able to borrow money for a promise of a future payment. When you get a creditworthiness you must demonstrate that you will be paying back the loan that was given to you. Loaners judge you by capital, capacity and character. As for credit bureau what it does is that it collects info on consumer's credit and sells it. Also it keeps a record of adults. As for credit score it is calculated based on the information that is in your credit report.The more negative information in the credit report, the lower your credit score will be what the credit report does is credit any information and credit scores. Credit report when a record of the individual's or company's past borrowing and also repaying. Credit card start building up your credit starts small. Also when you promise to pay debit always pay them. Credit cards have a max amount you spend using card. There is also a penalty fee when going over the limit. The interest is what a business gets the income of. A personal loan that is granted to the consumer for personal use. The lender is who lends the loans out to who asks for them.

Vocabulary Watch

  1. Premium- an amount to be paid for an insurance policy
  2. Claim- state or assert that something is the case, typically without providing evidence or proof
  3. Coverage- the extent to which something deals with or applies to