Nowadays, making your dreams come true: having your own business, buying the perfect house or purchasing the automobile that you always wanted is not impossible, even if you do not enjoy the financial support to do so. Actually, there are different options to support financially all of these ideas. An Premier Consumer we are committed to offer you the financial education on the benefits that brings you to apply for a credit.
As we all know, a credit is a financial transaction, where some person (the lender) loans a fixed amount of money to another person (the debtor), under a compromise of giving back the initial amount within a period of time plus some extra amount of money called interest. But, what else should you know about credits? Surely, getting information about the benefits of being granted with a loan always turns out to be useful.
Thinking about getting a credit usually makes you remember that you are also getting a debt. However, when you have the right counseling about having you suitable monthly payment figure it out, and you are perfectly clear on how are you going to pay off this debt, the credit as a financial option turns into the rightful solution that will give you the opportunity to build the path you have already imagine.
“At Premier Consumer we are committed to offer you the financial education on the benefits that brings you to apply for credit”
If you want to keep a low level of costs, and you are interested to qualify for benefits such as low insurance of automobiles, or lower rates when you buy a new house, you should fulfill one important requirement: you must have a good financial record. The lender will always check on your credit records and, based on it, he will decide if you can have the amount of money that you are asking for. Is as simple as: if your credit rating is high then your possibilities of getting a credit increase proportionally.
You must be wondering how can you get a better credit rate? And who determines if your credit record is “good” enough? Well, the process of scoring your credit history is based on your previous decisions. The FICO (Fair Isaac Corporation) is the index used by the lenders to identify you. A lender studies your credit history, the rate of utilization (the percentage of your credit line which is already in use) and evaluates how well are you on paying your debts. He also will search if there are defaults on you past story. The lender will use this information to figuring out what are you be possibly doing in the future to finally determine your credit rating.
Read Also: Credit Ratings and Their Factors
The average American has a score between 650 and 700. It is really common that they own a mortgage and at least one credit card to pay off monthly. Their average utilization ratio is about 30% plus they carry a balance on their cards month to month. These numbers are not fixed. There are ways to improve your credit ratings and with that the possibilities of enjoy some benefits like a dreaming vacations for example.
A loan can make a huge difference in your life. For example, most people choose to take student loans in order to pay for their college education. This type of loan allows them to cover for tuition and the opportunity to live within the campus if they come from other cities or states. In general basis, getting a student loan allows them to support economically while they work every day on getting a future. In consequence, a student loan is a valid option if you want to go back to school and getting a second degree that allows you to get a better job, increasing your incomes and effectively having a better quality of life.
To grow your own business is also possible. Every day the amount of people who wants to improve their careers and have the initiative and the necessary ambition to beat their fears, decide to take risks and dive in into the adventure of creating their own destiny. These people are entrepreneurs who believe that any idea or little business can become a huge overnight success. Remember that Google was born on a sleepless night, when Larry Page (Co funder of the company) wrote his idea; Whole Food begun as a Little shop of healthy food in Austin; while Wal-Mart became what we know today, because his funder Sam Walton though different. Having a credit will allow you achieve all of this.
If you are considering buying a new home of your own that also generates future benefits, applying for a credit may be the first of many steps to do so. If you choose the right rate of interest and a payment plan that suits you, then having the house of your dreams will no longer be a dream but a reality.
A credit is not only the amount of money that the bank gives to you. The credit cards are the easy options for most people on their daily basis, and turns out to be incredibly beneficial when you know the right way to use them. Credit cards mitigate the risk of loss, because they substitute the use of cash. Also, having a credit card may allow you to keep track on your money, the monthly reports are an easy way to identify your expenses and create and efficient budget that let you save some money. But perhaps, the most important benefit of using a credit card is that it generates your credit history, which will be the support that the lender needs to grant you a credit.
To sum up, a credit is a way to improve your life. It does not represent a threat to you financial security, but a way to achieve some of your life goals.