Basic Credit

By: Yanira Gallegos

What is Credit ?

  • The ability to obtain before payment , based on the trust payment.

What are the forms of credit?

  • 1. Secured which is the creditor guarantees that it will be paid back by putting a lien on an asset you own.

2. Unsecured When your credit is unsecured, you simply give your word to the creditor that you will repay what you borrow. and revolving which is If your credit is revolving, the creditor has approved you for a set amount —your credit limit — and you can access the credit whenever you want and as often as you want.

  • 3.Installment, which is credit, you borrow a certain amount of money for a set period of time and you repay the money by making a series of fixed or installment payments

What costs are associated with credit?

It depends on what type of credit you decide to get. Many have different interest rate , others have hidden fees.

What determines if someone gets credit and how much they get?

A specific formula is used to determine the score, and it's based on whether the person pays bills on time, how much debt he or she has, the length of his or her credit history, how many new accounts the person has, and the diversity of the credit accounts. Knowing what criteria go into the number on a credit report can help a person maintain a good score and qualify for higher limits and better rates on loans.