October 1st, 2008 at 07:16am
Under Loans
The latest global economic recession showed the power of almighty loan. Indeed, it’s a little exaggeration but loans and mortgages are two of the most important reasons behind this recession. But that is not what I’m going to talk about. The mindset that lead to this recession is.
A typical way of life in modern civilized society can be seen consisting of the following distinct stages. Starting in the pre-school and school stage, the innocent and not worth any attention for the time being. Then there’s college time. Oh yes, the wild days. And that is the critical stage in a person’s life because the decisions made now, have the greatest impact for the rest of one’s life. Sadly, as a rule of society that is when a person falls in debts. You see, it is not possible otherwise and for many indeed it is not. To study, you need a student loan, to get a car you need a car loan, to have a home you need mortgage. There’s no other way, yes, but that’s the end result we see, but where did it start.
I blame the initial mindset of the society. You see, getting credits and loans has grown to be a reasonable way to so called financial freedom. Who cares that you will be in debts for the next 50 years, as long as you can put them away for tomorrow. That’s what it’s all about, after all, to put away the debts for tomorrow while reaping the benefits today. A loan for financial freedom — the paradox which unfortunately has grown into our blood. Is that the freedom?
The answer is only one, and it is being cautious since the beginning. If you’re already deep in debts, you’re a history, but you can teach your children and what way better than showing the right example. Stop taking loans just to fall even deeper in debts, shred your credit cards, give up your car and get a bike. Stop and think what your life has become since you took your loan for financial freedom, don’t let your children make the same mistakes!
By writer
September 22nd, 2008 at 12:01am
Under General
Do you not think it is funny that who we are in this day and age is based on numbers? This goes for when you apply for a loan and to save you any problems, you need to know that you should have at least 700 and above to have a what is termed as a good credit score.
So now you need to know what is a credit score. It is what your creditor uses as an indicator to let them know to if you will be able to pay your debt back to them, should your loan be approved. Normally, the score is from 340 to 850 and if you do not score that well, your loan will by be disapproved or it may be still granted as long as you accept to pay a higher interest rate.
This may seem unfair given that you do not have money already, but it is a fact of life that we all have to live with. Its either you agree to their terms or you do not get the much needed funds you require.
Many Americans and Europeans get a good credit score. This is because they do not spend beyond their means and pay their bills on time.
For those who do not score well, they have to find a way to make ends meet by cutting down on their expenses and paying there debts of gradually. it is always good idea to talk to your creditor about any situation that arises, so they can come up with a payment plan, by doing this it will never appear on your permanent record. This is the smartest thing to do if you had a good credit score the year before.
If you have obtained many credit cards, you should cancel the others and only keep two. You should keep the two that you have had the longest as this will look good on your credit score.
If your credit score is just a few points from 700, then it is best to look at the document and see if everything stated there is correct. Who knows, you might get lucky and find out that there was an error made, this can often be the case for many people. If this is so all you need to do is call the credit agency to tell them about it and send any supporting documents, this is so an investigation can be done and the mistake can be corrected.
To get a copy of your credit score is quite easy, you can get in touch with one of these credit agencies namely Experian, Equifax or Transunion. Though the scoring system they use is different from one another, it states the same thing so you will know what it is. This report changes yearly, so get another one and compare the results versus the year before.
A good credit score of 700 and above can get you low interest rate when you whish to apply for a loan. With this money you will be able to buy a new house or car, pay for college tuition or even renovate your home. If you want to get such a loan, then you have to work for it as this number will not appear out of thin air.
It is always best to know what your credit score is before you even think of asking for a loan. This will avoid you the embarrassment of being told that there are issues with your credit score and remember if you are turned down, this will go on your credit file as well, having a negative effect.
By writer