What is Credit?

Ever wondered what is credit? Credit is more than just a plastic card you use to buy things - it is your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors - those who lend money or services - will be more willing to work with you.

Having good credit usually translates into lower payments and more ease in borrowing money. Bad credit, however, can be a big problem. It usually results from making payments late or borrowing too much money, and it means that you might have trouble getting a car loan, a credit card, a place to live and, sometimes, a job.

A bad credit history can haunt you for a long time - seven years or more. That's why the best thing to do is learn how to maintain good credit before there's a problem. While this might seem complicated at first, it gets easier once you understand the basics of credit and how it works.

Did you know that there are companies that keep track of whether you pay your debts and if you make payments on time? Then these companies make this information available in the form of a credit report and score.

Most creditors use credit scoring to evaluate your credit record. This involves using your credit application and report to get information about you, such as your annual income, outstanding debt, bill-paying history, and the number and types of accounts you have and how long you have had them. Potential lenders use your credit score to help predict whether you are a good risk to repay a loan and make payments on time.

Many people just starting out have no credit history and may find it tough to get a loan or credit card, but establishing a good credit history is not as difficult as it seems.

You might apply for a credit card issued by a local store, because local businesses are more willing to extend credit to someone with no credit history. Once you establish a pattern of making your payments on time, major credit card issuers might be more willing to extend credit to you.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

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Google News Updated : Tue, 07 Oct 2008 02:49:07 GMT Rays roll over White Sox, punch ticket to ALCS - Sports Network New York Daily News Rays roll over White Sox, punch ticket to ALCS Sports Network - 34 minutes ago Chicago, IL (Sports Network) - BJ Upton hit two solo homers, and the Tampa Bay Rays defeated the Chicago White Sox, 6-2, to clinch their first berth in an American League Championship Series in franchise history. White Sox eliminated from post-season with Game 4 loss to Rays The Canadian Press Rays Finish Off White Sox to Reach ALCS New York Times MLB.com - Chicago Tribune - Boston Globe - The Associated Press all 2,434 news articles Publ.Date : Tue, 07 Oct 2008 02:14:13 GMT Injury forces May-Treanor to sit out this 'Dancing' - USA Today Sioux City Journal Injury forces May-Treanor to sit out this 'Dancing' USA Today - 39 minutes ago By Bill Keveney, USA TODAY Two-time Olympic gold medalist Misty May-Treanor may be sidelined from ABC's Dancing With the Stars, but she says she won't let a leg injury suffered during rehearsals stop her from competing in beach volleyball. Misty May-Treanor drops out of ‘Dancing’ MSNBC May-Treanor vows torn achilles won't end her volleyball career ... ESPN E! Online - Portsmouth Herald News - BuddyTV - TMZ.com all 281 news articles Publ.Date : Tue, 07 Oct 2008 02:09:39 GMT China's Reputation On Product Safety Reaches a New Low - Washington Post Alaska Highway News China's Reputation On Product Safety Reaches a New Low Washington Post - 53 minutes ago By Blaine Harden Even Burma -- where one of the world's most repressive and isolated military governments relies on trade with China -- has now warned its people to steer clear of all Chinese dairy products. Video: No Traces of Melamine in New Test of Milk Powder AssociatedPress China vows overhaul of 'chaotic' milk industry The Associated Press Bernama - AllAfrica.com - International Herald Tribune - AFP all 1,384 news articles Publ.Date : Tue, 07 Oct 2008 01:55:33 GMT Computer Chip to Monitor Teen Drivers - ABC News Vancouver Sun Computer Chip to Monitor Teen Drivers ABC News - 1 hour ago By LISA STARK, MATT HOSFORD and KATE BARRETT Car keys -- long perceived as the keys to teenagers' freedom -- may soon be the best way for parents to monitor their every move. Going Along on the Ride With Junior New York Times Ford: Key limits speed, stereo volume United Press International TheMustangNews.com - Edmunds.com/Inside Line - Computerworld - CNET News all 636 news articles Publ.Date : Tue, 07 Oct 2008 01:16:34 GMT As Palin Brings Up Ayers, Obama Team Cites Keating - Washington Post Seattle Post Intelligencer As Palin Brings Up Ayers, Obama Team Cites Keating Washington Post - 31 minutes ago By Anne E. Kornblut and Michael Abramowitz The presidential campaign of Sen. Barack Obama for the first time criticized Sen. John McCain for his role in the "Keating Five" savings-and-loan scandal yesterday, saying the issue was fair game after a ... Video: AP Campaign Minute AssociatedPress McCain ready for combat in 2nd presidential debate USA Today Financial Times - Chicago Tribune - Los Angeles Times - The Associated Press all 4,559 news articles Publ.Date : Tue, 07 Oct 2008 02:17:08 GMT Plaxico Burress takes Giants to school with tired act - New York Daily News New York Daily News Plaxico Burress takes Giants to school with tired act New York Daily News - 38 minutes ago Plaxico Burress with his son after the Giants win Super Bowl 42. Burress will need to get his act together if the Giants are to repeat as champs. Burress Returns to Giants, With No Regrets New York Times Unapologetic Plaxico Burress returns to Giants The Associated Press The Star-Ledger - NJ.com - Hartford Courant - Rotowire - Newsday all 251 news articles Publ.Date : Tue, 07 Oct 2008 02:10:29 GMT Three Europeans win the 2008 Nobel for medicine - International Herald Tribune Washington Post Three Europeans win the 2008 Nobel for medicine International Herald Tribune - 59 minutes ago By Lawrence K. Altman The Nobel Prize in Medicine was awarded Monday to three European scientists who discovered viruses behind two devastating illnesses, AIDS and cervical cancer. Aids and cervical cancer pioneers share Nobel award Financial Times Nobel Prize to HPV Researcher Highlights Importance of Cervical ... FOXBusiness The Associated Press - Summit Daily News - Forbes - AFP all 1,040 news articles Publ.Date : Tue, 07 Oct 2008 01:50:01 GMT RSS to Blog RSS For Web Pages

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