the ability of a customer to purchase goods or services before payment, based on the trust and credit history that payment will be made in the future.
The Importance of Credit
Credit is a very important aspect for many thing including buy a house. Another part of credit that is really important is a lender which is a person who wants to make sure borrower the money pays the money back. To have good credit a lender would look for three thing which are capital, capacity,credit history, character, and collateral other known as the 5 C’s.
It's a number that represents the person’s credit files to represent their competence of credit. The higher number the better it is and the lower the number the worse it is.
A report of an individuals credit history. Credit Bureaus and lenders are involved in the process of the individuals credit worthiness.
How can us teens build and maintain excellent credit?
The key to maintaining a healthy credit is to start off small. Us teens should start with a credit card with a small credit limit. Avoiding big buys, and use it when needed, small purchases recommended. Pay all the bills on time and pay off your balance each month. Get accustomed to checking your credit score. Daily habits of paying bills, checking your credit score, and only purchasing small purchases well help you get excellent credit.