If you believe credit simply refers to those cards we pull out of our wallets when we make an expensive purchase, you're wrong! Credit is absolutely essential for anybody who is seeking finance (also referred to as credit) in the form of a personal loan or mortgage. Put simply, credit is your ticket to obtaining loans.
Credit Defined
What one really has to understand is that credit is so much more than a credit or store card. Credit is borrowed money which allows you to buy things now and pay for them later. Under a credit agreement, you borrow money and you are bound to pay the money back, over a set time period, with interest. Whether one is able to secure credit depends upon one's credit history - which just to make things confusing, is sometimes also referred to simply as 'credit'. Credit history refers to your ability to repay loans and your financial debts. Your Credit Record provides prospective lenders with this information which they need to determine whether you are a credit risk or not. Good credit makes you a suitable candidate in the eyes of lenders, and it allows you to obtain finance easily. Similarly, bad credit may deem you unsuitable for a loan to some lenders.
Payday Loans No Bank Account, fast cash payday loans, cash advance,
When do we need Credit?
There will be many times when you require credit. At some point, all of us will need to borrow money to achieve financial goals or obtain personal possessions. Such instances when you will need to apply for credit include times when you apply for a new mobile phone plan, take out a personal loan to buy a car or apply for a mortgage to buy a home. Without credit, many people wouldn't be able to make large purchases for cars or property. You will require credit, and to get credit, you will need a credit history - a history that indicates what your payment patterns are like. Rather than being seen as debt, credit is an opportunity for us to become financially successful.
Why use Credit?
Credit represents a convenient way for us to make purchases now and pay for them later. Beyond this obvious benefit of using credit, we also use it for smaller purchases, which help us to build our credit portfolio - or credit history. All of this information goes into our Credit File, which if indicative of good money management practices, will help us be approved for larger loans. If one has good credit, they can apply for greater amounts of credit, and they maximise their chances of being granted credit. A good credit history is a major deciding factor for the lender in determining whether or not you will get a loan. This said though, people with bad credit can also secure a home loan if they work with specialist bad credit mortgage brokers.
What if I don't have a Credit File?
If you have never applied for credit, don't have credit cards, loans, etc, chances are you may not have a Credit Card. If this is indicative of your situation and you intend on applying for a home loan soon, there is no need to panic! Don't run off either and sign up for as many credit cards or interest-free deals as you can today. Your Credit File is only one factor lenders will examine to come to a decision regarding whether you will receive finance. If you are in a situation where you have no Credit File, it is best that you work with your broker to ensure that you can find a lender, prepared to lend you money if you do not have a credit history. It is probable that traditional banks won't lend you money if you have no Credit File or a limited history of credit, however there are lenders who might. Only a specialised broker who works in the area of bad or limited credit mortgages will be able to tell you what is possible. Be sure to do your research and find a broker who can help you secure a loan that not only gets you into a home, but also sets you up for a successful financial future.
Need Money? Let Me Help You
Take advantage from the innovative CreditGraph lending technology today.cash loans for car titles
$ 100 - $ 1500 Cash Advance Online. No Faxing No Credit Check Highest Approval Rate. Get Cash Fast Today!
No comments:
Post a Comment