Credit

Everyone wants a quick and instant, especially in financial matters. Especially if the money is needed in an emergency.To fulfill the consumer's desire to conduct transactions, the bank issues its services.Credit is an arrangement that allows consumers to buy goods or services now and pay for them later.When you use a credit card to charge purchases, you must usually pay a finance charge.There are some types of credit:1. Credit Cards2. Installment Loans3. Service Credit4. Revolving Credit5.Student Loans6. IOU7. Single Payment Credit
Using a credit must have advantages and advantages. The benefits of using credit are:1. The use of goods and services as you pay for them.Example: Driving a car as you pay for it
2. The opportunity to buy costly items that you might not be able to buy with cash.Example: Can you imagine paying cash for a brand new car?
3. A source of cash for emergency or unexpected expenses.Example: Medical, automotive, etc.
4. Convenience.Example: Do not have to carry large amounts of cash.

And the disadvantages of using credit is1. The reduction of future income.Example: Spending future income now and living beyond your income
Expense.Example: Using credit usually costs money.
3. Temptation.Example: Easy to spend money you do not / will not have.
4. The risk of serious consequences if you misuse credit.Example: Failure to pay debts on time, bankruptcy, repossession, damaged credit score
There are types of consumer credit:1.Sales Credit: when you buy goods and services with a credit card or a charge account.Example: Charge Accounts or Credit Cards
2. Cash Credit: when you borrow money.Example: Loans
4 Steps to building a sound financial reputation:
1. Start with a job.-Show that you can hold a job and earn money
2. Open a savings account and save regularly.-Saving show financial responsibility
3. Open a checking account and manage is carefully.-Show you have experience with handling money
4. Apply for a store or gas station credit card.-Make small purchases and pay your bill