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.

---

The Ins and Outs of Loans for Military

Under the microscope loans for military really are different from... Read More

Finding a Cheap Secured Loan

In a time when everything seems expensive, it might seem... Read More

What are Secured Loans?

Secured loans are one of the most popular personal loans... Read More

Bad Credit Wedding Loans in Case You want to Race Towards the Altar with Bad Credit

So you are engaged. Congratulations. It was not easy. What?... Read More

No Faxing Cash Advance Loans - 3 Reasons to Use A No Fax Payday Loan Company

No fax payday loan companies save you time with your... Read More

The Average Profile of Customers Opting for a Payday Loan Cash Advance

Payday loans are loans of a small amount, taken for... Read More

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

Guide to Home Improvement Loans

Here is a useful guide to Home Improvement Loans. What... Read More

Traditional Banks Vs Online Loan Companies

In recent years obtaining loans online has become a new... Read More

Easy Cash Advance - Payday Loans Online are Quick

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

Facts You Should Know About Types of Loans

When you set out to borrow, you often come across... Read More

Debt Consolidation Tips

Here are some useful Debt Consolidation tips. Debt consolidation is... Read More

Business Loans from Family - A Good Idea?

Can I Ask my Family for a Loan to Pay... Read More

Why Choose a Homeowner Loan?

Outlined below are some of the reasons for choosing a... Read More

What Type of Loan Do You Need?

There are many types of loans available to consumers. There... Read More

Secured Holiday Loans- Your Chance To Unwind Your Senses

"All work and no play makes jack a dull boy".The... Read More

Applying For a Student Loan

Studying at college can be an expensive business and you... Read More

What To Consider Before Applying For A Loan

Here are some useful tips on what to consider before... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

What is a Bridging Loan?

A bridging loan as the name implies is a loan... 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

A Guide to Looking for Cheap Online Loans

Cheap online loans may seem hard to come by, but... Read More

Locating Cheap Personal Loans

Locating the cheap personal loans that you're looking for isn't... Read More

Are You In The Market For a Car Loan?

Car loans are a tempting way to purchase a new... Read More

Securing Debt Consolidation Secured Loans

If you're like most people, then you've got debt in... Read More

Guide to Unsecured Loans

Outlined below is a guide to unsecured loans. It will... Read More

Useful Information About Homeowner Loans UK

Homeowner loans UK are a very versatile type of personal... Read More

To Find The Right Loan You Must First Find The Right Lender

We have found internet shoppers to be the savviest in... Read More

A Guide to Finding Home Owner Loans

If you're in the process of trying to find home... Read More

A Brief Look at the Origins of Lending

When trying to discover the origins of lending you might... 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

Information About Debt Consolidation Loans with Bad Credit

Finding debt consolidation loans with bad credit can be quite... Read More

Benefits of a Home Improvement Loan

Some of the many benefits of a Home Improvement Loan... Read More