Although the Credit cards and other debts are very essential to our financial wellbeing, they are also risky if mishandled. Here you will earn the features of good debt and that of bad debt. This way you will be able to get and credit and maintain a good credit score.
1. Establishing a Credit history
You must have a going credit history for you to be considered for a credit card or other types of major loans. The process of establish a credit history is easy, the harder part however is making sure in advance that the type of credit that you have established is the right one for your needs.
2. Why is the Credit Score Important?
Lenders will review your credit history whenever you go to get a loan or any other type of credit. Why the credit score is important is that the lender after reviewing your credit history will decide whether to give you the loan or not or whether to charge you a higher interest rate because you are a higher risk.
3. How to Improve Your Credit Score
The journey toward bettering your credit score starts by understanding the things that make up your credit score and then improving on them. If you understand what part of being a debtor you are bad at, you can work slowly towards better scores.
4. How do you get Out of Debts
By paying only the minimum amounts in your credit card, you are taking very few strides towards freedom. Make sure that you pay a few extra dollars above your minimum amount and before you know it, you are out of debt.
5. Student Loans
The average people will come out of college with a huge amount of debts thanks to borrowing money to fund this education that is becoming expensive every year. You can stay debt free by looking for other education aid in addition to borrowing money to fund your education.
6. Credit Cards to finance Business
With a credit card, you are able to pay for the items that you purchase for your business more easily. What is not cool is getting a new business idea and then looking at the credit card as your capital this can only lead to financial ruin especially if the business does not survive. Capital can be sourced from family and friends with zero interest rate.