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Inside Section 1



Credit is another term for loan. Credit is often used in connection with unsecured loans. You get credit from a company when you get billed with an invoice instead of having to pay when you buy the item(s). For example your phone bill is a type of credit, where you have used your phone and pay for the time you have used it afterwards.

Very often (or almost always) the company giving you credit will do a credit search before granting you a credit. If they find that you have record of not paying your bills in time you are likely not to get credit. Often people does not think about the consequences of not paying their bills. They do not realize that this can give them a "bad credit" and makeing it more or less impossible to get a loan or credit from any other companies, banks or credit companies.


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