for Building Credit
Find out your chances on getting a loan here.
Of the Devil! 😉
Loans can be deceptively expensive! It is important you understand not only your monthly payment but how long you will be paying it and the total you will be paying. Think long and hard before making a commitment.
The VAST majority of people live with rose-colored glasses. They see a future with no setbacks, job losses or medical issues. We are a culture so obsessed with positive thinking that we lose touch with reality. Real life is full of problems, and if we don’t plan for them, they will overcome us.
*** This is a BIG issue. The majority of divorces today stem from money-management issues. Be careful for your family!
Any loan should be taken with trepidation, but it is hard to live without borrowing, especially to live well. On the flip side, if you don’t take out any loans, it will be hard to find a loan when you really need it. Loans build credit, and not having any loans hurts your credit.
My personal feeling is any loans you get should be strategic. Plan like the banks are out to get you – they are. To the banks and lending institutions you are just a number, and however warm and fuzzy their commercials are, their bank’s hearts are made of stone. They exist solely to make money for their shareholders in the most efficient means possible.
Personally, I would RUN from any company that offers credit with no credit check. It is almost guaranteed that the interest rates will be sky-high, the product will be over-priced and they won’t submit your positive payment history – but they will report missed payments! They are SHARKS, out to take advantage of your desires. Most things we can take out a loan for are DESIRES. If you can hold back these desires, the reward is tremendous! Even Cars and homes can be desires, and when our eyes are bigger than our pocketbook we can get in big trouble.
It’s All a Game
Don’t take things personally. Life in many ways is like a game, and you need to plan ahead to win. There are a lot of obstacles, and the competition can be fierce, but you can win – if you plan properly!
Building Credit with Personal Loans!
Since debt is mandatory for good credit, a good way to build it is to take out a personal loan with the best interest rate possible. Make sure the lending institution reports to all the credit bureaus. Take the money and open up a free bank account just for that loan, then deposit it into the account. You also want to deposit a little more to cover the interest. Make sure you calculate the interest correctly. Here is a calculator.
Don’t touch the money. Use an automatic draft from the new account to pay the loan. You are essentially buying interest. Keep the loan for a short amount of time, say six months. By this time you can do it again, but at a lower interest. Keep repeating and watch your credit score rise.