Sunday, December 24, 2006

Credit Card Christmas

Christmas o christmas.. This year christmas is being more commercialized. Credit card companies also join the craze of christmas. Today THe Star newspaper, there is an article that state that some credit card companies even offer attractive deal of range of credit cards. They even send those offer to houses. The bad news is most of these offers have interest as high as 18%.

Before applying credit card, take short while to go through the terms and conditions (T&C), as well as take note of those tiny T&C. This can be costly in the long run.

Monday, December 11, 2006

Credit report and score

To apply for a credit card, one need to know about credit report and credit score.

Credit report contains information about the person identity, credit relationships, and court actions. Credit reports are compiled by agencies that gather information about a person credit relationships known as credit bureaus.

Credit scoring is more of a system. These system are used by lenders to determine whether to give a person credit (car loans, credit cards, home mortgages). Credit score is inter-related to credit report. Various information about a person is collected from credit application and credit report.

Nowadays, creditors use statistical program to evaluate the credit performance of consumers with similar profiles. This is beyond our scope of discussion, but basically is to choose the right person to be given credit card.