An Introduction to the Various Types of Credit Facilities

People with a good credit history and steady earning can easily qualify for credit cards at the bank. The card issuer will first assess credit card applicants' repayment ability before accepting their application and determining their credit limit.

Fremont, CA: Most people hesitate to use credit facilities as they do not have much knowledge about them. This article will give readers some idea about various types of commonly used credit facilities. Credit facilities are a variety of loans made in a business or corporate finance context. They are particular types of credit facilities such as term loans, revolving credit, secured and unsecured loans, and retail accounts. These will be reflected in one's credit report, which shows that person's creditworthiness.

Some of the commonly used credit facilities are as below:

Credit Card

People with a good credit history and steady earning can easily qualify for credit cards at the bank. The card issuer will first assess credit card applicants' repayment ability before accepting their application and determining their credit limit. Credit cards are a good option for emergency cash-in. Different credit cards offer different interest rates for various activities, such as cash advances or balance transfers, purchases, so one should remember to read the fine print.

Car Loan

Another common type of credit facilities is a car loan. In this particular case, the bank lends a definite sum of money to an individual who intends to purchase a suitable vehicle and who meets a list of requirements that establish the said individual's financial repaying capacity. The process of obtaining a car loan is easy; it largely depends on the applicant's compliance with an age requirement, gross family income, clean credit history, and employment stability that adds up to a dependable source of income.