Basics of Credit
Credit is borrowed money to purchase goods and services when you need them. To determine whether someone has good credit or bad credit is by credit score. Credit score ranges between the numbers 300-850. The higher the number, the more beneficial for a person to receive loans. To determine a person's credit, it is broken down into 3 factors: character, capacity, and capital. Character a sense of financial responsibility and paying bills on time, capacity is the financial ability to pay back a loan, and capital is the value of what you own.
Based on your credit report, it will determine whether you will be charged interest or not. In other words, pay extra than what you owe because it is borrowed money. Interest will go up if one does not pay the monthly bill on time or the set amount of money owed. In order for this to be evaluated, there is something called a credit bureau. It is a company that collects the individual's rating and makes them available to financial needs as in Personal Loans. Banks offer personal loans to customers and are usually for a car or home. Banks will charge interest for these loans because it is a large amount of money. Interest will differ if the person is creditworthiness. Creditworthiness is being reliable for paying the bills on time. To determine this, bankers have something that is called a credit report. It is the history of someone's credit.
What you need to know about credit cards.
A credit score in the United States is a number representing the creditworthiness of a person
An organization or person that lends money: "a mortgage lender".
a loan that establishes consumer credit that is granted for personal use