What is credit? Why do we need credit?

If you borrow money from banks, the banks need to know who you are; determine whether you need to be able to pay back the money on time; ago by whether the money is not there yet does not have to borrow money, and so on the record.

Before the appearance of credit, you have to prove a wide range of materials that the bank provided: The proved of your company, the prove of your wage and so on; banks have to call your company ...... visits for two weeks, or even a longer period of time , The bank will tell you whether or not borrow money to you. Banks really tired, you also tired,it's really troublesome to borrow money.

Well now,with the emergence of credit, bank can simply know your credit: they have their hands on your credit information to a specialized agency of the summary by the specialized agencies to you to create a "credit files" (That is, the personal credit report), and then made available to banks to use. Such banks through third-party credit agencies to share information on the activities of credit is in order to improve efficiency and save time, you work a little faster. With the intervention of credit institutions, with credit reports, you borrow money to the bank, with your consent, the bank can look up your credit report, take a moment to re-verify some of the key issues will be Quickly tell you whether a bank loan made available to you. Bank easier, you less bother.