Posts Tagged ‘credit financial’
What is Credit?
Is your financial history, including debts, loans, accounts, credit cards, collections, outstanding balances and more. If your credit is good it will be easier to get financing with good rates of interest and if it is bad hurt your ability to get loans and services. When you apply for credit financial institutions and lenders analyze two main factors:
* Credit report : a record of your transactions and financial accounts, loans, debts, credit cards, collections, payments, outstanding balances, personal information and credit applications. The bad financial history can remain on your credit report for seven years or more.
* Credit score : a number, usually between 300 and 850, used by financial institutions and lenders to predict your likelihood to repay loans on time. Your score low if you have too much debt or do not pay on time and your money goes if you drive responsibly. A score above 700 is considered very good. A score below 600 represents a risk to the lender and can cause you to receive a higher interest rate or your application be rejected.
2 Comments »