Are You Creditworthy?
What is credit?
Credit can be both beneficial and detrimental to an individual's finances. Using credit will allow you to build your credit score, which is determined by a credit bureau. The better your credit report looks, the lower the lender has to pay towards interest rates on things like credit cards and personal loans.
The primary thing that determines your ability to take out a line of credit is your creditworthiness. Character, Capital, and Capacity are what makeup your creditworthiness. Character is your credit history. Did you pay your bills on time? Capital is all of your assets that could be taken if you do not pay your bills on time. Lastly, Capacity is your financial ability to pay back the lines of credit based on your income.
Credit Cards: Costs and Benefits
Here Are a Few Tips:
2) Pay more than the minimum. This will build credit and get you out of debt faster.
3) Create a budget. You cannot have unexpected costs if you have something to follow.