Credit is simply using tomorrow's money today itself.Getting a credit is believing you in a good way that you are trust worthy.Credit is a tool or opportunity given by lenders to you to buy some thing or materiel in advance by giving money and you shall accept that you are committed to pay that back in accepted and stipulated time.
When you use this correctly for your advantage it is going to give you the best and quality life for you with out straining yourself much.In buying a car or home generally every one is in need of big money and you need to take loan from some bank or lender.Credit is a valuable friend and you shall not misuse it.
Taking multiple loans at a time,skipping or paying monthly bills lately,defaulting loans will give you serious troubles to you in the future and they are going to effect your credit score seriously.They will block your future options of getting better loans at lower interest rate and financial loan will be ruined.
Lenders will help you in spending your tomorrow money today itself and it will benefit them in terms of interest.They will three points about you before giving offer to you.
1.Are you reliable in terms of financial commitments given to some one.
2.How much debit you can handle basing on your income and other obligations.
3.What collateral is there if your income is dried up.
All this information can be found in your credit report and can be decided basing on your credit score,the three digit magic number.
Paying a extra interest is only one issue and other serious implications are family stress and reduced opportunities.Lenders will not give oppertunity to you to take decisions.Creditors would like to put in in high interest rates than you are qualified for and they make lot of money through that root.They can give incentives to the employees who get that kind of money into their pocket.
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