Credit is borrowed money that you can use to purchase things you need when you need them and then repay the funds back to the credit grantor at an agreed on time. Repayments are an important part of the credit process. Credit Providers look at how you pay and have repaid your credit obligations to determine if they are prepared to grant you credit and if so, how much they are willing to grant you.
The repayment of your credit is reported to credit bureaus who store the information for other credit grantors to use. If you are slow in repayment you may also have to pay a high interest rate. Good repayment will allow for lower interest rates and better credit limits into the future. Credit Providers need to charge you interest in order to make a profit on their service and to help them account for the risk of losing their money when some borrowers do not repay the money. You should always consider the interest rate and repayment schedule before you agree to a loan.
Be sure that you will be able to repay it. Think about situations such as if you had to lose your job suddenly and would not be able to meet the payments. If there is any risk that you would not be able to make the regular payments, you should definitely postpone taking credit until you are certain of your situations
Good credit scores and affordability will get you credit at better interest rates saving you alot of money. Register now to find out how Kudough can help you