![]()
Your financial assessment is a determining factor to get approved or rejected.
People with a higher credit score have a higher chance of getting a loan from financial institutions and are deemed low risk when considering repayments of their capital investment. These applicants may be offered a higher limit and a lower interest rate than a consumer with a low credit score.
The number of loan payments or the repayment period will be more favorable for a person with a higher credit score.
...
1. THERE’S A BIG DIFFERENCE BETWEEN DEBIT AND CREDIT CARDS
If this is your first foray into the world of credit cards, you may think they’re much like debit cards. Debit and credit cards do work in fairly similar ways; they both have the logo of a major credit card company (Visa or MasterCard), they can be swiped for payments (instead of cash) and usually require a pin for successful transactions. But there’s one very big difference: debit card payments come off a current account while credit c ...
Secured vs. unsecured debt
There are two types of debt: secured and unsecured.
Secured debt means the borrower has pledged an asset as collateral for the loan. Auto loans and mortgages are common examples of secured debt. If you fail to repay as agreed, the creditor can seize the asset, for instance repossessing a car or foreclosing on a house.
Unsecured debt, on the other hand, is not backed by an asset. A common example is credit card debt. However, that doesn’t mean you get off scot-fr ...