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TRENDING BASIC MONEY MANAGEMENT TIPS
03.31.2020 / Borrowing « Back to all articles
4 Mistakes to Avoid When Borrowing
Borrow with Both Eyes Open
Even with less than perfect credit, it’s easy to borrow money – sometimes a little too easy. Situations arise when a loan is necessary, whether it is a big purchase like a house or a car, or in an emergency when cash is short. But neither excitement nor panic should force anyone into a rash decision. Be sure to avoid the following common pitfalls when borrowing money.
Don’t Neglect the Credit Report
This step happens before any shopping begins. A credit report will communicate to the lender whether or not potential customers are likely to pay them back. It can affect interest rates and terms, and in some cases can prevent the loan from being approved at all. This is why it is crucial to look over the credit report ahead of time. Make sure that every detail is correct, all loan information is up to date, and report any inaccuracies such as unpaid bills or activity that is not accurate before bringing incorrect or misleading information to your financial institution.
Don’t Borrow Too Much
Borrowed money might be easy to obtain in today’s online market, but be aware that not all loans are created equally. Credit cards and student loans are already crippling countless people who borrowed without counting the cost. Be sure that the loan in question is for the amount that is needed. Do not borrow extra money because it is there for the taking. Only borrow what is needed and walk away owing as little as possible. This not only makes good financial sense, but it may build up your credit quicker since you are not taking on "too much" debt.
Don’t Skip the Terms and Conditions
Taking out a personal loan is not like registering for a free email address. These terms and conditions are vitally important and will impact the life of the loan for years to come. It is important to completely understand what the terms states and ensure that all necessary questions have been answered.
Don’t Go with the First Option
Impatience is the number one enemy for those borrowing money. Take the time to think over and look at different loans. Be sure to read the fine print and don’t be afraid to ask questions. Above all, don’t rush into borrowing money because of fear.
Credit Talk
03.31.2020 / Borrowing « Back to all articles
4 Mistakes to Avoid When Borrowing
Borrow with Both Eyes Open
Even with less than perfect credit, it’s easy to borrow money – sometimes a little too easy. Situations arise when a loan is necessary, whether it is a big purchase like a house or a car, or in an emergency when cash is short. But neither excitement nor panic should force anyone into a rash decision. Be sure to avoid the following common pitfalls when borrowing money.
Don’t Neglect the Credit Report
This step happens before any shopping begins. A credit report will communicate to the lender whether or not potential customers are likely to pay them back. It can affect interest rates and terms, and in some cases can prevent the loan from being approved at all. This is why it is crucial to look over the credit report ahead of time. Make sure that every detail is correct, all loan information is up to date, and report any inaccuracies such as unpaid bills or activity that is not accurate before bringing incorrect or misleading information to your financial institution.
Don’t Borrow Too Much
Borrowed money might be easy to obtain in today’s online market, but be aware that not all loans are created equally. Credit cards and student loans are already crippling countless people who borrowed without counting the cost. Be sure that the loan in question is for the amount that is needed. Do not borrow extra money because it is there for the taking. Only borrow what is needed and walk away owing as little as possible. This not only makes good financial sense, but it may build up your credit quicker since you are not taking on "too much" debt.
Don’t Skip the Terms and Conditions
Taking out a personal loan is not like registering for a free email address. These terms and conditions are vitally important and will impact the life of the loan for years to come. It is important to completely understand what the terms states and ensure that all necessary questions have been answered.
Don’t Go with the First Option
Impatience is the number one enemy for those borrowing money. Take the time to think over and look at different loans. Be sure to read the fine print and don’t be afraid to ask questions. Above all, don’t rush into borrowing money because of fear.
