Our forefathers used to do the trade system in exchange for something without using money. They trade by providing their goods or services or what we call product money. For example, a handful of diamonds then could be equal to five sacks of onion. As times goes by, it was replaced by representative money. These are coins (made of gold and silver) and paper legal tender that have the value equivalent to those useful commodities. Later on, receipts were printed to additional strengthen the structure of using this representative money. At the moment, we are now enjoying the profit of this evolution.
Right now, the public consider money as the basic device in exchange for something. If you don’t have it, you will most likely have hard time in dealing with the diverse establishments. With this case in mind, another form of deal exists. This is known as credit money.
Credit money is a proxy for money, especially if the money is being used for other use. We can’t keep away running out of cash, which makes us run to the nearby bank to ask for credit. Of course, banks won’t give you one except you have your account with them. The sureness that you will pay is also determined by them.
We sometimes depend on our credit, particularly if we are preparing for a new goal. If you plan to have a housing mortgage, car loan or a student loan, with your credit, you can at all times ask for money in order to achieve it. However, your credit scores will say how much will you get.
What is a credit score then?
Credit score is three-digit numbers that would tell you how possible can you do things and how much will it rate you. The number ranges from 300-850. It is principally based on credit reports made by a certain credit office. It usually tells your “credit-worthiness,” and if you would be a good or a bad nonpayer.
Types of Credits that You Have (10%) – This refers to knowledge that you have while into the different accounts such as installment loans.
Payment History (35%) – This refers on how compliant you are in paying your bills and loans.
Length of Time You’ve had Credit (15%) - This refers on how long you had your credit. The more credits you had in the past, the more information that one will get based on your expenses history.
Are you planning to have your car, housing or student loans? Do you want to have more money? Perk up first your credit scores. Surely, you’ll get what you want.
0 comments:
Post a Comment