what is credit and what is credit card. what is credit card debt.?

Question

I always see free credit score on net. I know its not a kind of real money or etc. but what this system is about.

Answer 1

This "credit score" is a number factor, that credit bureaus have on you. Any thing you have ever financed, a home, car, an installment sales contract ie, furniture bought at a store going through a finance company will report your opening balance, monthly payments, current balance, and if you have ever been late. This also includes your Soc. Sec #, address, etc.

It will also include any collections, ie hospital bills that were never paid, doctors, electric, phone companies, etc.

A credit card debt , is like having a Visa or Mastercard, Discover, Sears, American Express, etc. These are also reported to the credit bureaus.

Answer 2

Credit is how world business is done, it used to be based on your word or reputation for the last century or so it is based on how well you pay your bills. A credit score is not something you can buy to get a good one, however there are many ways to assist your score in going up or down, (by the way down is very very bad). Credit scores range from 300 to 850 and in all my years of doing credit type work I have only seen one over an 820. The average American has scores between 680 to 720. To start working on getting a score start slow and easy... a secured credit card and never open an account for a family member or friend where you give them payment control always have all bills sent to you so you know when the bills are paid (make sure always on time), a good example:cell phones: I have had customers miss out a dream purchase because they helped out a family member who was down on their luck and got them a cell phone and had it set up to where the bill went to the family member and the bills did not get paid it took the credit down from a 720 to a 500 and they were not qualified to buy the house they wanted. I hope this helps you to understand credit a bit better. Just remember this is something you must earn through good behavior not order it they way you want.

Answer 3

For a really good understanding of the different forms of credit and how they affect you as well as information on credit scoring, go to myfico.com. It's an excellent site designed to educate the public on their use of credit. It also has several calculators for determining debt management, housing, etc.

Answer 4

Credit cards and credit, is when a financial institution lends you funds to buy now pay later with interest .credit cards are exp. store cards visa ,MasterCard and Amex. credit card debt is when you use the credit card and owe money that your creditor has approved. It's better if you get a credit card and use it and pay it in full every month by due date to avoid interest charges.