What is Credit?

Ever wondered what is credit? Credit is more than just a plastic card you use to buy things - it is your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors - those who lend money or services - will be more willing to work with you.

Having good credit usually translates into lower payments and more ease in borrowing money. Bad credit, however, can be a big problem. It usually results from making payments late or borrowing too much money, and it means that you might have trouble getting a car loan, a credit card, a place to live and, sometimes, a job.

A bad credit history can haunt you for a long time - seven years or more. That's why the best thing to do is learn how to maintain good credit before there's a problem. While this might seem complicated at first, it gets easier once you understand the basics of credit and how it works.

Did you know that there are companies that keep track of whether you pay your debts and if you make payments on time? Then these companies make this information available in the form of a credit report and score.

Most creditors use credit scoring to evaluate your credit record. This involves using your credit application and report to get information about you, such as your annual income, outstanding debt, bill-paying history, and the number and types of accounts you have and how long you have had them. Potential lenders use your credit score to help predict whether you are a good risk to repay a loan and make payments on time.

Many people just starting out have no credit history and may find it tough to get a loan or credit card, but establishing a good credit history is not as difficult as it seems.

You might apply for a credit card issued by a local store, because local businesses are more willing to extend credit to someone with no credit history. Once you establish a pattern of making your payments on time, major credit card issuers might be more willing to extend credit to you.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

A Method Used For Evaluating Online Lenders

Online lenders might be high quality, serious companies such as... Read More

A $500 Payday Loan Can Help In an Emergency

A $500 payday loan can be a real life saver... Read More

Free Money Saving Auto and Home Loan Tips

Free Auto Loan TipsThe following tips should help increase your... Read More

Secured Loans House the Most Positivistic Consequences of Loan Borrowing

One of the most enduring myths of loan industry is... Read More

Bad Credit Personal Loan - A Pay Day Loan May Be Your Best Option, No Credit Check

If you have bad credit, have an emergency and need... Read More

Car Loans - Shop Around, Compare Offers, and Watch The Small Print

Getting a loan to buy your new car is, you... Read More

Benefits of a Bridging Loan

A bridging loan has many benefits, some of which are... Read More

Become A Smarter Borrower

With a nation that has in the region of a... Read More

8 Point Checklist: Evaluating Online Vendors

Here are 8 things to consider, when evaluating lenders online:Website... Read More

A Little Lesson on Loans

The opportunity to spend money is everywhere. There is no... Read More

Alternative Venture Finance: Federal Grants and Loans

While most companies seeking venture capital initially think about angel... Read More

How to Find a Good UK Secured Homeowner Loan

If you're looking for a UK secured homeowner loan, you... Read More

Cosmetic Surgery Loans ? Discovering How It Feels to Look Your Best

Market research of UK's cosmetic surgery ascertains the fact that... Read More

Refinance Car Loans - Refinancing Your Car Loan Online is Convenient

Refinancing your car loan online is now more convenient. Your... Read More

A Secured Loan Could Save You Money

What is a Secured Loan?A secured loan is any loan... Read More

Applying for a Loan Online

If you want to apply for a loan online, you... Read More

Risk It With A Bridging Loan?

How many times have you been casually going about your... Read More

Be Careful With Loans For Bad Credit

If you're saddled with debt or find yourself in an... Read More

Payday Loans - Bridging The Void Between Paychecks

Emergency - the word is written everywhere in red and... Read More

New Car Loans - How You Buy a New or Used Car With Poor Credit

Consumers buy a new or used car with poor credit... Read More

Useful Tips On Buying A New Or Used Car

Buying A New Car: A new car is second only... Read More

Making Cars Accessible Through Secured Car Loans

Enervated by the hectic schedule at the work place, traveling... Read More

Navigation After Financial Closure - Bankruptcy Personal Loans

Bankruptcy has a stigma attached to it that is hard... Read More

Easy Cash Advance - Payday Loans Online are Quick

Cash advances have become quicker to process with online payday... Read More

Faxless Payday & Cash Advance Loans - Fast Cash, No Faxing Loans, The Easiest Payday Loan Process

If you are in a hurry for a payday loan,... Read More

Finding a Loan With Bad Credit

No matter what your credit history is the simple fact... Read More

Finding the Best Secured Loan for Your Money

If you're looking for a secured loan, there are several... Read More

Cash Loans for Unemployed ? for an Instantaneous Response to Needs of the Unemployed

Unemployment is generally supplemented with several other vices like poverty... Read More

Should You Get A Pay Check Advance?

At some point in your working life, you may find... Read More

Secured Loans vs. Unsecured Loans ? Choosing Between the Two Diverse Ends

Often in our search for finance options, we are led... Read More

Are Interest Rates Up, Up and Away?

Interest rates have been at their lowest levels in over... Read More

Small Business Loans Can Help You Write Your Success Story

Scene one: you are sitting on your office desk surrounded... Read More

Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance

If you need a fast way to get an emergency... Read More