CREDIT AND DEBT

A hard inquiry is a type of credit report inquiry that is initiated by a lender or other credit grantor, typically in response to a specific loan application or credit report dispute. Key Characteristics of Hard Inquiries: Examples of Hard Inquiries: Impact on Credit Score: Hard inquiries can temporarily lower your credit score because they […]

Consumer credit is a type of credit extended to individuals rather than businesses. It includes loans, credit cards, and other forms of borrowing that are used by consumers to make purchases, cover expenses, or build up their credit history. Types of Consumer Credit: Factors Affecting Consumer Credit: Consumer Credit Laws: Impact of Consumer Credit: FAQs

Definition: A credit history is a report generated by a credit reporting agency (CRA) that summarizes your credit behavior and payment history over time. It typically includes information from your credit accounts, such as your payment history, account balances, and any delinquencies or defaults. Key Factors Affecting Credit History: Payment History: Your payment history accounts […]

Country Club Billing Country clubs are typically members-only organizations that provide a variety of amenities, including golf courses, tennis courts, swimming pools, and social events. To maintain their operations, country clubs rely on member dues and other fees. Billing Systems: Membership Dues: Members pay annual or monthly dues based on their membership category, which determines […]

Sure, “deficit net worth” is a term used in accounting to describe an individual or company’s financial situation where their liabilities exceed their assets. This means that the individual or company owes more than they have in assets and therefore has a negative net worth. Here’s a breakdown of the key components: Net Worth:– Net […]

A consumer credit file is a report summarizing an individual’s credit history. It contains information from various sources, including: Sources: Credit reports: The three major credit bureaus (Experian, Equifax, TransUnion) compile reports based on information from creditors, such as banks, credit card companies, and utility providers. Public records: Court records, tax liens, and bankruptcies may […]

Credit Control Credit control is the process of managing the flow of credit in and out of an organization. It is a key function in financial management, ensuring that the organization maintains liquidity, controls risk, and operates within its credit limits. Key Objectives of Credit Control: Maintaining Liquidity: Ensure that the organization has sufficient liquid […]

Debit Balance A debit balance occurs when the total debits to an account exceed the total credits, resulting in a negative account balance. Causes of a Debit Balance: Overdrafting a check or electronic transfer Making a purchase that exceeds the available balance Borrowings not repaid on time Fees charged to the account Errors in bookkeeping […]

Definition: A credit limit is the maximum amount of money that a credit card issuer is willing to lend to a cardholder. It is generally expressed in dollars and is typically established at the time of account opening. Purpose: Determines credit utilization ratio: The credit utilization ratio is the amount of credit used compared to […]

Impact of Bad Credit History on Loan Approval and Interest Rates A bad credit history can significantly impact your ability to obtain loans and the interest rates you pay. Here’s how: Loan Approval: Lenders use credit reports to assess your credit worthiness, credit history, and payment ability. A bad credit history can make it difficult […]