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Credit is a sum of money an individual or institution (the lender) allows you to borrow - for a price. How much you can borrow and how much interest you pay depends on a couple of factors.

Type of Credit

There are two main types of credit: Home mortgages, student loans, auto loans and other such loans for specific purpose fall into the category of installment credit.…

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Offers consumers tips, tool, and deals on loans, mortgages, credit cards, debt management services, and other financial resources.
www.credit.com
Credit is the provision of resources (such as granting a loan) by one Credit is in turn dependent on the reputation or creditworthiness of the entity
en.wikipedia.org/wiki/Credit_(finance)
Offers consumer and commercial credit reports and services. Detect potentially fraudulent activity with 3-in-1 credit monitoring. Resolve an identity theft with our ID
www.equifax.com
Credit (creative arts), acknowledging the ideas or other work of writers and contributors Credit (finance), the granting of a loan and the creation of debt.
en.wikipedia.org/wiki/Credit
Each month, our Nonprofit Consumer Credit Counseling Services, HUD-Approved Counselors, and Bankruptcy Counselors help thousands of hardworking American families;
www.credit.org
To view your personal credit report and credit score, visit TrueCredit. We have the resources and tools you need to understand and manage your credit report scores.
www.truecredit.com/?enurl=truecredit.com
Supervises and insures federal credit and state-chartered credit unions. It is entirely funded by credit unions and receives no tax dollars.
www.ncua.gov
Tools and advice for managing credit and debt from About.com.
credit.about.com
Receive consumer credit counseling and educational services from NFCC member agencies, located throughout the U.S. Services include debt management
www.nfcc.org
Providing credit reports and identity evaluation solutions for consumer-oriented businesses.
www.transunion.com
…These have a fixed number of payments and often have interest rates tied to federal rates. Credit cards are classified as revolving credit. With revolving credit, you can borrow up to a pre-approved amount (line of credit). At the end of the statement period (usually a month), you are required to make a minimum payment towards your balance.

Your Credit Score

Your credit score is a standardized way for lending institutions to take a snapshot of your credit history. When a potential lender pulls your credit report, they can see flagged items such as late payments, missed payments, how long you've had credit and your low credit to debt ratio. Bad credit indicates to a lender that you may not be able to make your payments. In order to mitigate this risk, a lender will allow you a lower line of credit and charge you higher fees and interest.

Your Ability to Pay

Another factor that lenders will consider is your ability to pay. When applying for credit, institutions will often ask for proof of income (pay stubs or W-2s) and assets (bank account and portfolio statements). By showing that you have several sources of capital to draw from, you are more likely to get favorable terms on your loan. While these are the main areas a lender examines when determining how much credit to give you; each institution and circumstance calls for different factors to be considered- some of which are only divulged and understood within the industry. But a good general rule of thumb is to use your credit responsibly and with moderation to stay out of debt and keep a clean credit report.