Credit

A road to good credit...

Big image

Basics of credit

Credit is a way to make big purchases when you want to buy something, but it doesn’t include any free money. The credit report could help those out though that need help with their credit. The credit Bureau is a company that collects the credit ratings of individuals in order to make them available to credit companies and financial institutions. Within the institution there is an organization or person that lends money and loans to those who need help and that is called a lender. Those loans are then established as consumer credit that is granted for personal use based on the borrower which are classified as personal loans. Some different types of credit are loans, credit cards, charge cards and mortgages. Some costs that are associated with credit is the fee charged by the credit card processing company and the upfront cost of purchasing the equipment. The fees can also vary depending on other things such as the type of card accepted and the method used to enter the transaction. This is an example of an interest(APR). The four C’s are what determine if someone gets credit and the amount that they can get. The four C’s are character, capacity, collateral and capital. Another thing they check for is creditworthiness which is trustworthiness with money that’s based on your credit history along with your credit score as well. This is a number that determines how much you pay back on your bills.