If something sounds too good to be true,” goes the old cliché, “it probably isn’t.” Similarly, many people perceive a loan as something that’s best avoided. It’s best to be self-reliant, they feel. And why bother with the paperwork? Thanks to such attitudes, loans are something that people opt for only as a last resort.
However, taking a loan may actually prove not so bad in the long run. In fact, never having taken a loan may be a big negative. Surprised?
Here are some insights into how taking loans helps you create a better financial future for yourself.
No Credit History, No Loan
Debt, which many people view with trepidation, is a grossly misunderstood concept. Having a perfect, debt-free record may sound good but it works against you in case you need a loan. For example, someone having a reasonable monthly income but no credit history may not be viewed favourably by banks. Yet, someone with a relatively lower income but a healthy credit history may not face such trouble.
If you haven’t ever availed of a loan, there is no known public record of your debt or its repayment cycle. As a result, any lender will not be able to gauge your repayment credentials. Absence of a credit score is just as bad as having a poor credit score.
Here are some things you can do to script a ’good’ credit history.
Diese Geschichte stammt aus der March 2017-Ausgabe von The Finapolis.
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Diese Geschichte stammt aus der March 2017-Ausgabe von The Finapolis.
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