What is Credit Insurance?Written by John Mussi
Are you wondering what is credit insurance? Very simply, credit insurance is an insurance policy that protects a loan on chance that you are unable to make repayments. The next time you have occasion to apply for a loan or mortgage, you will be asked if you want to buy credit insurance, or it might already be included in your loan proposal. If so, it will increase your loan amount and you'll pay additional interest.Credit insurance usually is optional, which means you don't have to purchase it from lender. Before deciding to buy credit insurance from a lender, think about your needs, your options, and rates you're going to pay. You may decide you don't need credit insurance. If you decide to get credit insurance be aware that it can be an expensive form of insurance. For example, it may be less expensive and more practical for you to get life insurance than credit insurance.
| | What is Credit?Written by John Mussi
Ever wondered what is credit? Credit is more than just a plastic card you use to buy things - it is your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors - those who lend money or services - will be more willing to work with you. Having good credit usually translates into lower payments and more ease in borrowing money. Bad credit, however, can be a big problem. It usually results from making payments late or borrowing too much money, and it means that you might have trouble getting a car loan, a credit card, a place to live and, sometimes, a job. A bad credit history can haunt you for a long time - seven years or more. That's why best thing to do is learn how to maintain good credit before there's a problem. While this might seem complicated at first, it gets easier once you understand basics of credit and how it works. Did you know that there are companies that keep track of whether you pay your debts and if you make payments on time? Then these companies make this information available in form of a credit report and score.
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