Loanio

There is no doubt about this, first of all: Getting into debt is more than capable of getting you into trouble. Although there is definitely a large downside to debt, borrowing money can also do you some good. Some debt is actually good for your credit, but only if you understand why, and how much debt is good in comparison to when your debt has become too much.

With the help of credit, you can achieve some of your financial goals. Debt allows you to take advantage of experiences and opportunities that enhance your life, like buying a car or purchasing your dream home, going to the best school or taking a cruise around the world. Getting the true value out of your credit has to do with developing a spending plan that allows you to get there in the time frame that you have set, without ruining you financially.

With the help of credit, you can send a message to potential lenders. If you have never had any debt, then you have never used credit before and will not have a credit score or a credit report to speak of. In today’s world, however, it is difficult if not completely impossible to live without credit, because credit is vital for purchasing most big ticket items, like higher education, vehicles and homes. Credit is also heavily relied upon for the purpose of preparing for life’s emergencies. For all of these reasons, having a good credit reputation is going to show potential lenders that you are a good and healthy credit risk by showing that you can handle a little bit of debt. By showing your capability to repay debt, you can put yourself in a good position to attract creditors offering favorable terms and rates.

Credit and debt are also capable of giving people a sense of how responsible you are. If you had no debt or credit history, you would find yourself being disadvantaged in other ways. Should a prospective employer check your credit record and come up empty for example, they may find this strange, and not want to hire you. Without a credit record, employers, lenders and other individuals lose out on a potential way to appraise who you are. Debt and credit are important for getting an apartment, applying for car insurance, buying a home, even sometimes renting a car. Even if you can afford to do some of these things, using debt and credit to create a history of how you handle money is an advantageous option in favor of just using cash for everything. Credit is not only a tool for extra income, but it is also a way to show lenders, employers and other individuals how responsible you are when it comes to borrowing, spending and repaying your money.

Photo Credits: 1

• Loanio Roundup – Wall Street Crisis and the Resilient Dollar

  The Resilient Dollar

  Welcome to the second edition of the Loanio Roundup. This edition focuses heavily on the national economy and peer-to-peer lending news. We hope you enjoy pursuing through the links below. Leave a comment and tell us what you think – we’d love……
• 8 Tips for College Student Budgets

  #4 Pace Yourself

  Below are eight tips for college students about money and finances. 1. Track your Expenses If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount……
• 5 Tips for College Students on Budgets When you are in college, it can become easy to get caught up in your busy, stressful lifestyle. With all of the studying and working that you have to do, coupled with hanging out with your friends, working part time jobs and participating in extra activities, it can actually become……
• Teach your Teens to Save Money Teaching your children how to manage their finances is absolutely critical if you want them to be successful at managing their money in the future. More than 80 percent of all parents are led to believe that their children are learning enough about personal finance and money management in school,……
• Setting Goals for Good Personal Finance

  What are your goals?

  Setting goals is an important part of your personal finance plan. Goals can be divided into four unique categories that are relatively general in nature. These categories are short term goals, intermediate term goals, long term goals and life goals. Short Term……

• Even Good Debt Requires a Credit Score I believe in good debt namely housing and in some instances higher education. As I’ve said before, I am not a complete anti-debt guy. I don’t believe in using cash to buy everything. Good debt, like bad debt, requires a credit score. There are several different ways to find out……
• Two Key Factors That Can Dramatically Improve Your Credit Score There are a lot of books, tables, eBooks, and other works available which are alleged to contain top secret information and tricks of the trade on how to improve your credit score. They often sell for hundreds of dollars, but they’re just not worth it. It’s true that Fair Isaac……
• A Low FICO Score Is a Challenge Not a Defeat Credit is essential to acquiring a home, car, etc. especially if you do not have cash to purchase the item you desire or need.  It is equally as important to understand how credit can influence your ability to purchase.    Let’s examine. The bank institutions Advantage Mortgage Lending use FICO score to determine……
• Can You Get a Loan With Bad Credit? Can you get a loan with bad credit? The answer is yes. Obtaining a new or used auto loan with good credit is very easy and qualifies you for a low rate. On the other hand, credit problems may disqualify you for a loan. Traditional lenders are not confident in……
• myFICO Score And Free Credit Score Estimator I came across Check Your Credit Score For Free post on All Financial Matters Blog today. The tool was good, but I found a better one called myFICO FICO Score Estimator (it’s faster and there’s no advertisement). The calculator asks you 10 questions to come up with an estimated range……