Credit Basics
What is credit?
Credit is the reputation you have earned for paying your bills on time that makes it possible for you to receive loans, etc. with the understanding that you will pay for them later.
Does the death of a spouse affect my credit?
If you and your spouse share a checking or savings account, by law a creditor cannot automatically close the account or change the terms because of the death of your spouse. You may, more than likely, be asked to update your application or reapply in your own name. The creditor will then decide whether to continue your credit or change your credit limits.
What are the three Credit Bureaus and how do they affect my credit?
In the United States, Equifax, Experian, and Trans Union are the three major credit bureaus that provide nationwide coverage of consumer credit information. Many national lenders report consumer credit information to all three. However, smaller banks, most credit unions and other credit grantors may report to only one, or none. Therefore, the information you receive from one credit bureau may not be the same as what you would receive from another credit bureau.
Why is credit important?
If you are looking for a loan, credit card, or low interest rates, having good credit will increase your chances of getting one of these. If you have credit problems, it may be hard to acquire a loan when you need it the most.
See More >>
