Navigation How Credit Works.
A Consumer's Guide to Understanding How Credit Works

Mortgage Resources: A Guide to Credit and Credit Reports

Art Concept of IMF Tranches.You are in need of purchasing a major item. It could be a house, a car, furniture, appliances or even needing to do extensive repairs on your auto. The purchase amount that you are facing is quite high, and your current finances can't afford the cost. What are you to do? The answer is credit!

While merchants offering credit has been happening for generations. Consumers have been looking to purchase items, without the needed cash for many years. The merchants began offering consumers the option to buy now, and pay later. This was the beginning of the use of credit in our economy.

But, one of the biggest factors in merchants offering credit is the credit risk that they are taking. In every transaction, the merchant needs to identify whether they will be paid back the money from the purchase. To assist businesses and financial institutions in deciding whether to lend money or not, credit evaluation became a big part of the process.

Merchants began looking at credit reports and credit scores to determine credit worthiness. Basically, a credit report is a look at how consumers have handled past credit transactions and how long they have been using credit. It also helps potential creditors learn how they have handled past credit, and gives a guide for determining how future credit will be handled.

To learn more about credit, credit reports, credit scores and how this information is used, we have gathered a number of information for consumers. We hope that this information will help educate you to be a smarter consumer, and learn how to gain credit and preserve your credit standing. Please feel free to share this information with others who can benefit.

Safely Using Credit

Credit Cards

Credit Scores & Reports

Fixing Identity Theft Problems & Other Issues

Your Rights