Credit : A Tool, Not A Crutch

For major purchases credit may be useful because it provides an immediate source of funds where as you might be saving for years to afford a house. Or maybe credit may supply the capitol for a small business start up. The problem many people have at this point is that they now owe the money lent to them and do not realize the amount of debt they are in. You are required to make a monthly payment and to pay interest on the amount loaned.

Avoiding debt is a popular concept among younger population, and it is a very reasonable personal decision. However, most of us will need a credit at some point in life – to get a mortgage, for instance.

The purpose of usury laws was to regulate the maximum interest rates of loans. This law was created to protect borrowers from excessively high interest rates. It insured that lenders could not put the borrower in a situation where they were not able to fully pay off their debt. However, as said on investopedia.com, “In the United States, individual states are responsible for setting their own usury laws.”

This evaluation is focused on a school district with 3, 000 high school students in New Jersey. The statistics were gathered from the student management system for this school district the 3,0000 high school students attend two high schools {High School “A” and High School “B”} during the 2014-15 school year. The racial makeup consists of: high school “A”, 78.6 percent of students identified as white, 14.8 Hispanic, 3.3 percent black and 2.7 percent Asian. At high school “B”, 82.8 percent of students were white, followed by 8.4 percent Hispanic, 5.5 percent black and 2.6 percent Asian. The overall graduation rate at High School “A” was 80 percent, and at High School “B”, 87 percent of students graduate.

The Bottom line is that before you get a credit card or any credit account, you should have a basic understanding of how your score is calculated and how to use your credit responsibly. You should know how to gain access to your credit reports and scores. After you’ve done that, you can start building your credit. Remember! Be very patient, building your credit takes time, but it will happen as long as you’re making the right credit

Beautiful home, luxury cars, two and half kids; this is what people feel life should be. Well for most, they will never experience this because of bad credit. Credit is what allows most middle class and lower class families to afford nice things. It allows you to make purchases for large items with affordable monthly payments over a specified time. Of course income is an important part of the credit allowed per household. If you only make $25,000.00 a year, you might not get a Mercedes C-Class but more like a Ford Focus. There is absolutely nothing wrong with a Ford Focus, it’s all about getting what you can afford. Then there are those who make twice that amount and still can’t get anything other than a Ford Focus. Those are the people who have abused their credit and now are in the “rebuilding” stage. Let’s go over some tips to prevent you from having to restore but make wise choices so that you have a prosperous future.

As people get older, everyone tends to apply for credit. It is much simpler and easy to make larger purchases. Although, strict actions must be made, it is a full time responsibility and you must have the independence, organization and knowledge to receive credit. To use credit wisely, it is smart to first know what you are getting yourself into. Ask family members, friends, or financial institution any question you may have. Receive all the information you need before receiving your credit. Also, make sure that you are willing and financially able to pay back any money, plus interest and fees that may come from a credit card. Make sure that you will not be behind on paying bills, or be irresponsible with how you are managing your credit. A time I used credit wisely, was when I wanted to purchase a very expensive Michael Khors purse from their new collection.

What exactly goes into a credit score? Unfortunately, many consumers cannot answer this question. Credit scores are not easily accessible and therefore this lack or knowledge negatively affects individuals because they do not know how to better their score. A credit score is composed of five different components: thirty percent is the amount a person owes, thirty-five percent is payment history, fifteen percent is the length of credit history, ten percent is new credit, and the remaining ten percent is called a credit mix. One study of individual’s knowledge of credit showed, “that while most respondents knew what a credit score was ‘in theory,’ their practical knowledge of credit scores was lacking. Knowledge of the factors that positively and

A good credit score is important in order to get the loans and interest rates that you want. To financial institutions, a credit score reflects the likelihood that you will repay what they lend you (i.e. mortgage, credit cards, car loans, student loans, etc.). Therefore, one of the most important ways to improve and keep a good credit score is to always, always pay your bills on time. Missing a payment or paying late even once will drop your credit score and if you make a habit of it, you will have bad credit. Paying on time makes up 35% of your credit score. Since you are going to be making payments anyway, it is very important

Even if you are good at handling your finances, but by not having a credit score, lending institutions will not have a basis to refer to. Having a credit score is the same as having a financial history where lending institutions can determine your credit worthiness. With credit scores, the lender can find out your financial background, current and previous loans taken, down payments you have made interest rates you choose and the payment scheme that you opted.

The reason that your credit score is so important is because it opens doors to a lot of opportunities, with a good credit history it provides stability about you, when shopping around for luxury apartments or homes, checking for car insurance, Gas Company’s or light companies, how much money you can borrow from a loan or even what kind of loan you are eligible for, some loans can be so high and overwhelming with the ridicules

A pre-owned vehicle may be exactly what you need to increase your credit rankings and to put financial challenges behind. At Washington Credit Kings, we put our focus on our customers and believe that everyone deserves a solid chance to improve their credit situation with quality financing and affordable

You don't have to get worried whether you'll be able to get a loan along together using bad credit score. Properly, simply due to the fact online lending organizations provide payday cash advance loans with no credit check; therefore bad credit does not matter anymore. It is excellent actually, as debtors along together using damaged credit history typically encounter issues whilst trying to get cash loans. Nicely, these complaints could be left in past as unsecured loans for those who have bad credit can be viewed as new reality clear of frustrating concerns.

An established credit history is important in the buying process. You should always maintain a good credit history whether you are purchasing a small item or very large item. Sellers want to know that you are a good credit risk and that they can trust you will pay them their money. Having a good credit history means a good credit score. When you have a good credit score, mortgage lenders will offer you more options for paying. You also want to understand additional costs that go along with the cost of the house. Those may consist of mortgage pre-approvals, down payments, mortgage options, and closing costs. Having a good credit score and history will make paying these costs much easier.

There are several pros and cons of using a credit card and all of them need to be considered before deciding to actually apply for a card. One aspect is that having a credit card can effect your credit score, but how you use the card can determine whether that effect is positive or negative. It is important to try to build your credit score especially when you are young, but abusing a credit care can have even more of an impact later in life. Being late on payments, having too many card accounts open, or being close to your spending limit can cause your credit score to decrease, which could make it harder for you to get loans later in life for things such as a new car or a mortgage on a house. Also, it can be tempting to only pay the minimum balance each month, but doing this can greatly effect how much you are actually paying after the interest rate is applied. On the other hand, many credit cards now offer rewards for using their card such as frequent flier miles or cashback. These can be great benefits for card users but these even these rewards cannot outweigh potential issues if the card is misused.