What is my credit – What Should I know

By The CreditConsultant on January 21, 2011 In Finance

Maybe you are young and just starting out. Or maybe you’ve just never taken an interest into your financial well-being. Perhaps you are wondering, what is credit? In very simple terms, credit is money that you borrow for a specific period of time before giving back. This can be something as simple as a loan on a house or car. Or, this could be a credit card in which you are borrowing funds to pay back via your monthly bill. In fact, credit could even be the $20 bill you borrowed from your sister last week. (Although this type of personal loan isn’t calculated into your history and won’t affect your score!)

Credit is also extremely important in our society. You will need it to do pretty much anything: obtain a cell phone provider, get certain types of jobs, rent an apartment, apply for an auto loan, buy a house, etc. A bad history can be quite detrimental and be the reason for a denial from a lending institution. A good history, however, can help you obtain the funding that you need to live life to the fullest.

As you learn what credit is and what it is all about, be sure to always make your payments on time. Do not exceed your limits on retail cards or other lines of credit. In addition, keep a monthly budget and regularly review your financial expenditures. By creating good financial habits from the start, you are ensuring a favorable credit record. Now that you are powered with new information, got out there and take action.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book for Free and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com