Credit, as it pertains to the consumers market, is basically a way for a consumer to acquire a product or service today, from a retailer, with the understanding that the consumer agrees to pay the retailer for that particular product or service in the future.
This ‘credit process’ is usually entered into between two or more parties, such as a consumer (YOU) and a retailer (SELLER), and it commonly involves a written contractual agreement that requires the consumer to make weekly or monthly payments to the retailer, and usually requires that the consumer pay interest for the privilege.
In other words, credit allows YOU the ability to enjoy the things you want now, without having to fork over all the cash… now.
Rather, YOU agree to make a series of affordable monthly or weekly payments to the SELLER over a set period of time. The interest charged to YOU is the ‘cost’ of the credit being extended to you.
Pretty simple process I would say.
However, there are a few factors that must be considered by any retailer of goods and/or services before offering to extend any amount of credit to you, such as, your credit history, your credit score, your time on the job and your income, to name just a few.
Personal Credit is a BIG DEAL, because your Personal Credit reveals to a lender or a retailer if you are a person that can be trusted to pay when you say you are going to pay.
In other words, your Personal Credit reveals if you are the type of Man, or Woman, who keeps their promise.
The next time you hear someone ask you, ‘So, how is your credit?’, what they are really asking you is, ‘So, are you someone that can be trusted?’
YES! The Concept of Credit is a BIG DEAL, so it is extremely important that you do all that you can to keep your credit report clean and your credit score high.
