What is credit?

Hello,

  My name is Michael Anthony. I am a consultant specializing in solution based options assisting businesses and individuals for the past 20 years.

The financial arena is a scary place if you are traversing it alone. Here at yourcreditpulse.com we provide information necessary to properly plan your financial present and future. In this series I will cover such topics: what is credit? Why does having good credit matter? What does bad credit mean for future growth? How do you fix a seemingly impossible credit situation? All of these questions and more will be addressed in the series.

Let’s go ahead and start with number one.

What is credit? Well, credit it defined by Websters dictionary as an amount or sum placed at a person's disposal by a bank. In addition, an entry on the right-hand side of an account constituting an addition to a revenue, net worth, or liability account. In other words, “credit” is leverage given to you from banking institutions that raises your net worth to allow for larger purchases. In return, they collect interest on these transactions and make their money. This in turn provides you the chance to make your payments on time to receive in increase in your “credit score”. In my next entry, I will go over what your credit score is and how you can benefit from said score. Thank you and stay tuned.