Credit

Credit is a very interesting word. Today it means a lot more than "Kudos" to a person who has done something well. The word ‘credit’ is also an accounting term to mean money earned or coming into the accounts. The word is more used today in association with credit card which means the card is worth money and there is kudos given to the holder of that credit card.



Credit Cards and what not having one means today:



Credit and credit cards are a way of life today that wasn’t available to the average citizen fifty years ago. People who were deemed to be trustworthy years ago opened an account with the store or the supplier of goods and the bill was sent out once a month for the account given on credit to be paid. It was a localized term of trade and patronage.



If a person had an account at a store then they could buy goods or services ‘on tick’ which meant they didn’t have to have the cash on them to pay for the goods immediately but they were deemed by the provider of the goods to be trustworthy enough to pay for them at the end of the month. Hence the correct term for the business transaction was to get the goods or services on credit.



Over the last fifty years, this business transaction system has evolved from being a local system of trade into a multi-billion, multi-national financial system. Today, people who don’t have access to credit or a credit card can find life very difficult.



Accessing credit facilities today means being able to buy a house, to buy a method of transportation, buy a means of communication and everything else that is available and even essential today to live life to the fullest capacity in the 21^st century. Without having access to credit or credit facilities then it becomes near impossible to even get the electricity connected in your name.



Anyone with a bad credit history today will find life very difficult. Credit cards are often used in place of cash so the people who don’t have any plastic money (that is, credit card) often can’t purchase goods off the internet or get access to services like being able to rent a car.



Anyone trying to live today without a credit card will be unable to rent a Hotel or Motel room. Accommodation houses today simply demand a credit card before they will even book a room in your name.



What having a good credit history will mean for you:



Having a good credit history means that you have the ability to live much more comfortably in today’s world.



You will have little trouble having the electricity connected to your residence, you will be able to rent accommodation as and when required, rent the use of a vehicle, buy bargains online and even buy whatever you want and your credit card limitations allow.



Having a good credit history will mean better access to finance for a house or a car. You will be in a better bargaining position for better interest rates because you will have the financial credit history that will enable you to "shop around" for the very best interest rate possible and save yourself many thousands of dollars in interest payments over the term of the loan.



With so many people using credit today to live above their income, no-one can afford to have a bad credit history.