What is Credit
The Basic Parts about Credit
- Credit Cards:Are plastic cards that are issued by the bank.They are issued by the bank to allow the owner to purchase their goods on Credit.
- Student Loans:Are given most likely to students to help them pay for college,books,and their personal supplies.Interest rate:Comes in when substantially lowers and the repayment schedule may be deferred while the student is still in school.
- Installment Credit:This specific type of credit is being borrowed to you and since you now took the money you can spend the money but you then after spending the money you promise to repay the the same amount you wasted in a specific period of time.
- Personal Loans:A big sum of money borrowed from a bank or other financial institution may be considered a personal use.Personal loans may be used for debt consolidation,paying bills or to purchase something.It may help to know the different types of personal loans available before applying to choose the most appropriate option.
The fist fees are connected with credit cards.They are connected with the credit cards because it needs to all be processed by the credit card company.These extra charges can come in the monthly bill if you pay your payments late.(different types of credit has different kind of fees)
In order for you to get credit from a lender you need to have a good creditworthiness.In order for you to have this you need to meet some expectations and they are:History of repayment,and the person's credit score.Credit Score:is a number assigned to a person that indicates their capacity to repay a loan.This means that the number they are assigned is the capacity that they would be able to pay after they have wasted the money.People who get your Credit Score are the Lenders ,and Credit Report. Credit of Bureau is a company that gathers information related to credit ratings of individuals.Credit card companies are being notified with the information of individuals credit report.
A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating.
A statistically derived numeric expression of a person's creditworthiness that is used by lenders to access the likelihood that a person will repay his or her debts. A credit score is based on, among other things, a person's past credit history. It is a number between 300 and 850 - the higher the number, the more creditworthy the person is deemed to be.
Someone who makes funds available to another with the expectation that the funds will be repaid, plus any interest and/or fees. A lender can be an individual, or a public or private group. Lenders may provide funds for a variety of reasons, such as a mortgage, automobile loan or small business loan.
What You need to know about Credit Cards
- Over-the-limit fee - It is the fee charged by a lender if the outstanding balance on a credit card exceeds the credit limit.This means that he /she will be charged more more because of exceeding on the money provided to you.
- Annual Fees -In order for you to continuously use a credit card every year you will receive a payment you have to pay after you pay the yearly fee then you will be free to use the credit card in your possession.
- Credit limit-All credit cards have a limit on them.Credit limits can be determined based on information that people put in their application of someone who is looking for credit or on the person's credit rating as well.
All credit cards have an Interest rate It is the cost of borrowing money or the income earned from lending money.Interest rates are expressed as percentage of the principal per period.A Penalty fee is a punishment imposed for violating a law or an agreement money one will pay for breaking a law or violating part or all of the terms & policy of the contract.
Don't Fall into the Credit Card Trap
- Pay your balance on time and if possible pay more than the minimum.
- Always have in mind the amount you can provide per month and not let the date pass no exceptions.
- Never Ever go over your credit limit
- If your monthly balance is growing stop using your credit card until you get your finances under control.
- Always always Check your credit report regularly to check everything is right and no errors are provided in your report.
- Always keep your card,pin,and security code secure.