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             When most people think of credit they immediately figure that it only obtains to credit cards. Well credit is far more complicated then that, if you have bad credit then life becomes a lot harder. A credit check occurs every time you finance a car, house, and/or apartment. Even getting in a contract with a wireless phone company requires a credit check. There are two types of credit: revolving and installment. Revolving credit is your everyday credit card or Mervyn's card. Installment credit is a loan where payments are set at a certain amount. There are many advantages and disadvantages and I will be discussing them throughout this paper.
             Many people grow up believing that credit cards are dangerous and never get one and then find out they cannot finance a car or rent an apartment because they do not have a credit history. Credit history is basically a history of your debts that you paid off. If debts are still outstanding and you have a history of outstanding debts that never get paid then your credit history is bad. If you pay off your monthly balance on credit cards and make payments towards loans then your credit history is good. Without credit history you can't do much towards financing anything. .
             The best thing to do to establish credit is to get a credit card and pay off the balance every month. If you know that you will not be able to pay off your balance in full every month be sure to find a credit card with a low interest rate or APR. Once credit is established then it makes life easier and proves to car dealers or landlords that you have money to back up for payments. A gas card is an easier card to start with because you can only buy gas and depending on how much you drive effects how much you spend. Usually when your first credit card has a high APR and a low limit on how much you can spend. The more payments that are made on time the lower the APR and the higher the limit gets.

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