Home » Finance

Understanding The Basics Of Credit Finance

Jul 31, 2008
Credit finance is about understanding credit and knowing how to use it wisely. Many people jump into credit without ever getting to understand it. This is why there are so many people suffering from credit problems. The key to finance is taking credit seriously and being responsible with it.

There are many different types of credit. Many people do not even realize that some things can affect their credit. For example, utilities are a credit based expense. While they do not report positively to a person's credit, they do report negatively should a person not pay a bill. Besides that type of credit there are credit cards and loans. All these types of credit need to be used wisely.

A person's credit report is a record of their credit history. Every new line of credit is reported there. The credit report will tell if a person makes payments on time to if they don't. It will tell about the types of accounts a persons has and their credit limits. It will also show who has been looking at the person credit. All of these things factor into what is called a credit score. The score is a huge factor in lenders deciding if a person is credit worthy.

Most people do not give a thought to the terms and conditions of their lines of credit. Except for interest rates, most people do not understand about the fees and penalties they can be charged. This can be a huge mistake. Part of credit finance is understanding these things and taking the time to figure them out.

The extra fees and hidden costs of credit is often what get people into trouble. One missed credit card payment can be very costly and most people do not even know that until they get their next bill. It is things like this that create credit problems. This why reading all information before signing a credit agreement is essential.

One of the most important aspects of credit finance understands limits. It is common for persons to want to gather up all credit that is available to them, but this is not necessarily a good thing. Credit in moderation is best. Having a few good standing accounts is far better then having a lot of accounts, even if they are in good standing. This is because many lenders figure credit worthiness based upon debt to income ratio. What they want is someone who has a low debt to income ratio. When a person has a lot of accounts that means their debt is high, so no matter what condition the accounts are in will not matter.

Credit is something that is very wonderful and something that people need. Most people, for example, could never dream of buying a home without credit. However, credit can be very bad. Many people get themselves so far into credit card debt that they begin to suffer from it, being unable to even meet necessary needs financially. The bottom line with credit finance is aprons must get informed. They must understand it and use wisely if they want to stay in control of it.
About the Author
James Copper is a writer for http://www.any-loans.co.uk/no-credit-check-loans.shtml where you can find information on no credit check loans
Rating:
Please Rate:
(Average: Not rated)
Views: 130
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources