A person’s credit score holds a direct link to their ability to make most large purchases such as housing and automotive decisions, a person’s credit score can also be a pretty good indicator as to whether that person is good with money and pays their bills on time. Credit scores are checked by almost all lenders, landlords, credit card companies, even some employers so when they see a low credit score most of the time they correlate that with irresponsibility. It’s because of these things that the information in chapters five and six are very important to any adult and a lot of teenagers. I think that one important thing for anyone to know about is that you have to research, research, research. You need to research the property/house history, the neighborhood, even the realtor because any of these things can throw off red flags that would make it more prudent not to move forward with such a large purchase for your own personal and financial safety. Too build your credit score it’s important that you don’t keep your credit cards maxed out and that you preferably don’t wait to make the minimum payment, paying early/extra will almost always help boost your score. It’s suggested that for your best score you keep your credit card usage around I believe 30%, if you can keep your usage down receiving credit cards can be a great way increase your credit because the more credit you have available the better it reflects on your score. Also always bear in mind that more often than not financial institutions are willing to help you if you fall behind because showing initiative that you want to pay the back balance shows them that you do intend to pay. I believe that capacity is really important because it shows lenders that you are able to afford more payments/loans, character is also very important because you as a person need to present as reliable as well. If I absolutely had the choice I would prefer to outright buy a vehicle because then the vehicle is mine from the very beginning which opens up some extra options for me with it, however for a lot of people that are in my situation can’t afford to buy a car therefore leasing through a lender is the best option even though we’ll end up paying more money in the long run.
Starting with chapter 5, and building your credit and what types of cards that can be useful to your spending needs, it’s important to know that credit is not free, but a bill that states to possible lenders that you are responsible, financially. I deal with a couple credit repair systems that help build your credit, which is at fixed limit of how much you can use each month. This way I’m not looking at a bill that I can not afford to pay at the moment. Chapter 6 talks about buying a home, of which building a good credit line will help in the consideration of lenders or obtaining a low mortgage rate each month. Again, credit is not free. Credit builds an understanding on paper to others of what type of risk you may take when being fronted an opportunity that you could not afford in whole at the initial time of sale. When giving advice to my friend about buying a home and building credit, I advise you develop a budget and try to maintain a steady amount of income coming in first, get a small credit card, and pay something like gas or a phone bill with it. This will show creditors that you ate responsible with your bills and or money management.