|
What is a Credit?Credit is an arrangement for deferred payment of a "loan" from a creditor or lender - the person or entity granting the credit. In fact, credit has become the cornerstone of consumer purchases. Why? For many types of consumer goods, particularly large ticket items (cars, homes, appliances, etc.), credit makes it possible to purchase these items TODAY, rather than later or perhaps not at all.A Credit History is the history of an individual's debt payment. Lenders or Creditors use this information to predict a prospective borrower's probability of loan repayment. Credit scoring is a formulaic method used to calculate (or predict) in a standardized manner, the risk associated with one's history of credit repayment.
Factors which can damage a credit score include late
payments, absence of credit references, and non-payment of outstanding loan
balances.
Credit score is typically one of primary factors considered in evaluating whether or
not to provide a loan and what rate to charge.
© Copyright 2003-2007Luisa Han Group All Rights Reserved. |
 |
|
|
|
|
