Credit limit dilemmas

Credit limit can be quite a dilemma at times. Both, having too much credit and not having enough credit limits can be equally troublesome. Credit limit is the credit amount in which a financial institution such as a bank or private creditor extends to a customer. A credit limit on a credit card is the maximum amount the card company is willing to allow the card holder to spend on that specific card or cards linked to a single account. Continue reading

Late payments and debts

Late payments lead to bigger debts and worse credit histories that lead to very bad credit scores. Needless to say that bad credit scores lead to the possibility of the related individual not being able to secure future loans. The point being driven home here is that you should keep up with repayments of credit cards, loans and mortgages to avoid getting into a debt trap and also save yourself a whole load of cash in the process. Continue reading

How to ensure that your credit history stays clean

It is imperative for everyone to have a clean credit history. This is true because one never knows when the need for a loan may arise. This need may stem from the fact that you need to buy a house, refinance your existing mortgage, apply for a credit card or get a money loan to meet some emergency financial need. Continue reading

Benefits of maintaining clean credit

A clean credit history guarantees future finance such as loans, should you ever need one. What is more, a bad credit history will definitely be a hindrance or a guarantee for you not getting a loan, or even if you do, you will be expected to pay a high rate of interest – and all because of your bad credit history. So, it is important for everyone to understand the benefits of maintaining a clean credit history. Continue reading

How to repair your credit history

You probably already know what “credit history” is. However, lets give the initiated a concise explanation before we proceed. Every time you fail to make a payment on a credit card, loan or in some cases, fail to pay your bills, your creditor reports the missed payment to the credit bureaus. The credit bureaus calculate your monthly credit score based on these reports from creditors and display it as a three digit number. The lower the number, the worse your score is, meaning that, your creditworthiness is nothing to be proud of and that you cannot be depended on to repay your debts. Who then would want to lend you money? Continue reading

What is Credit?

In terms of “Credibility,” credit can be defined as a lenders confidence in a borrower’s ability to repay loans. Credibility is thus also synonymous with ones reputation of being trustworthy to keep commitments. Therefore a credible person will find it easier to borrow money to pay for goods, services or anything he, or she needs the money for.

Over time, credit has also come to refer to amounts of cash that has been loaned to an individual or business firm. Continue reading