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Credit

            
             When most people think of credit they immediately figure that it only obtains to credit cards. Well credit is far more complicated then that, if you have bad credit then life becomes a lot harder. A credit check occurs every time you finance a car, house, and/or apartment. Even getting in a contract with a wireless phone company requires a credit check. There are two types of credit: revolving and installment. Revolving credit is your everyday credit card or Mervyn's card. Installment credit is a loan where payments are set at a certain amount. There are many advantages and disadvantages and I will be discussing them throughout this paper.
             Many people grow up believing that credit cards are dangerous and never get one and then find out they cannot finance a car or rent an apartment because they do not have a credit history. Credit history is basically a history of your debts that you paid off. If debts are still outstanding and you have a history of outstanding debts that never get paid then your credit history is bad. If you pay off your monthly balance on credit cards and make payments towards loans then your credit history is good. Without credit history you can't do much towards financing anything. .
             The best thing to do to establish credit is to get a credit card and pay off the balance every month. If you know that you will not be able to pay off your balance in full every month be sure to find a credit card with a low interest rate or APR. Once credit is established then it makes life easier and proves to car dealers or landlords that you have money to back up for payments. A gas card is an easier card to start with because you can only buy gas and depending on how much you drive effects how much you spend. Usually when your first credit card has a high APR and a low limit on how much you can spend. The more payments that are made on time the lower the APR and the higher the limit gets.


Essays Related to Credit

1. Building and Maintaining Good Credit

This is an example of why forming, and preserving stellar credit is beneficial. ... It can be problematic to find an acceptable credit card offer that offers low-interest rates for new borrowers without any credit history. That is why the interest rates are usually higher when first establishing credit. ... Never charge the maximum available credit on the card. A credit card appears as a revolving credit line on a credit report, and the company will report the payment history to the credit reporting agencies. ...

  • Word Count: 902
  • Approx Pages: 4
  • Grade Level: High School

2. Credit Risk and Financial Institutions

Moreover, the impact of the spike on the risk profile of credit card advances portfolio can be detrimental to the organization by creating increased exposure to credit risk. My suggestion is that the credit manager considers reducing the credit card advances portfolio. ... Credit cards are classified as high risk mainly because they are usually granted unsecured thus giving rise to credit risk. ... I would therefore advise the credit manager to consider its exposure to credit risk. ... Credit risk is an inherent risk to the business of credit and lending for many financial institutions and ...

  • Word Count: 1800
  • Approx Pages: 7
  • Has Bibliography
  • Grade Level: Undergraduate

3. credits

Here the question is, are banks doing a good job giving or denying credit lines?... , and if the clients are using the credit line in a useful way? ... Others include perations which enables bank control over utilisation of credit, which are also high. Operations that have a specific reimbursement source have a not so high credit risk rate, these credit is paid to the bank when the client debtor pay the company or user. These kind of credit is has to be studied and a lot of research has to be done because if the sales proyections don't have a big margin of error the clients debtors shou...

  • Word Count: 476
  • Approx Pages: 2
  • Grade Level: Undergraduate

4. Credit Cards

Credit Cards: The Potential Dangers Credit card debt is a major problem for some college students because it can easily get out of control. ... Credit cards are also quite convenient. ... Also, using a credit card gives the user a credit history, which helps to get home loans and other credit in the future. ... In conclusion, having a credit card can be risky. ... However, credit cards can be quite convenient and helpful in establishing a credit history. ...

  • Word Count: 1144
  • Approx Pages: 5
  • Grade Level: High School

5. Credit Cards

They do no explain you how credit cards are relate to credit history. ... In reality, credit cards are not so easy. ... Credit card risks are important, but teenager's accesses to credit cards are a big problem. ... People whose agree with credit card acquirement states the importance of having a credit card. ... They must know how credit cards can ruin your credit history and involve them on financial problems. ...

  • Word Count: 918
  • Approx Pages: 4
  • Grade Level: High School

6. Credit Scoring

If the industry does not limit the use of credit, scoring on their own, the government will step in and make a ruling on how credit scoring can be used. ... Does your State allow credit scoring to be used in underwriting? ... What is the state proposing to do about the use of credit scoring? ... Does the insurance company report to the credit bureaus? ... Were you told your credit score would be used in determining your risk factor? ...

  • Word Count: 2308
  • Approx Pages: 9
  • Grade Level: High School

7. Credit Score

This article tells how important your credit score really is. ... Before 2001 credit scores were not available personally to you. ... I personally think it is ridiculous that you have to pay to view your own credit. ... Employers are running credit to see what kind of problems you have. Apartment renters are also running your credit to make sure they get paid. ...

  • Word Count: 300
  • Approx Pages: 1
  • Grade Level: High School

8. Hooked on Credit

Societal Pressure "Hooked on Credit" Hooked on Credit Becoming of legal age was the beginning of a whole New World. ... Credit card vendors were out like vultures hunting their prey. ... Nowadays the easiest way to buy something is with a credit card. ... The point of a credit card is that the owner is lent a certain amount of money. ... I remember the first time that I bought something with my credit card. ...

  • Word Count: 553
  • Approx Pages: 2
  • Grade Level: High School

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