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Staying in touch with your payments each month can help you
avoid bad credit. By keeping yourself organized when your
payments are due, you are on your way toward avoiding bad
credit. If you do your research on the marketplace before coming
to a purchasing decision, you are definitely well on your way to
avoiding bad credit and repair credit hassles. You want to
consider all applications, including credit cards, student
loans, mortgages, and car loans carefully to avoid being
overcharged.
Making the wise decision ahead of the game is the ultimate
solution to maintaining good credit. Most people when taking out
a home mortgage loan are not aware of the options available to
them. Many will walk in the bank door, fill out the application,
and accept the terms & conditions when offered to them. If you
ever heard the many reports that swept the pages of newspapers,
television and other advertising sources...families and
individuals are filing bankruptcy because they cannot afford
their homes anymore. This is because these people did not take
the time to check the marketplace first and searching the
options available to them. There are many options available to a
lender.
As you can see, the millions reported are in debt and searching
for a way to repair their credit. The solution then to avoiding
bad credit and repair is to research, invest wisely, make good
decisions, and budget. Being informed and educated is two of the
best tools offered to us but you must allow yourself the time to
do it.
There are mortgage loans that offer overpayments and
underpayments and these loans include vacation packages and lump
sum payments to the borrowers. There are also other loans
available that offer low mortgage monthly installments and low
interest rates with insurance policies attached that will pay
your mortgage if you are sick, unemployed, in an accident and so
on. If you have an interest in this type of loan, discuss it
with your lender. Make sure there are no "hidden costs" when
applying for this type of loan i.e. prepayment penalty. On the
other hand, there are mortgage loans that have high interest
rates, high mortgages, and balloon payments attached. When
balloon payments are attached to home mortgages it is almost
guaranteed in a few years you will be searching for a solution
to repair your credit. Just remember that the interest on an
average home mortgage can cost a homeowner almost twice (or
more) the cost of the home itself. There are very few home
lenders willing to tell you the truth about the variety of home
loans available. Most of the lenders are making money and you
are a source of income. It is important to scope the terms &
agreements carefully as well as reading all fine prints on any
loan contract before you sign.
If you want to avoid bad credit and repair, you want to stay on
the right path. Loans are agreements that are made between two
parties and attached are interest rates and other fees. If you
are applying for a home loan and want to avoid bad credit, it
makes sense to learn what the fees include and how much those
fees will cost you. Anytime you take out a mortgage loan there
are upfront fees attached. In some cases, you can get a home for
little or no cost. Avoid a loan with high interest as much as
possible or you will end up paying almost all interest on your
home. Perform a little research before coming to a decision on
any loan because searching and investigating the marketplace can
save you time and money.
Some home loans offer an 'acceleration clause', which covers you
if you miss mortgage payments. The lender will apply the clause
by allowing you leniency providing you make payments the
following month on time. This type of loan is great for avoiding
bad credit, foreclosures, and repossessions. The marketplace is
swarming with realtors and other sources that will help you get
a mortgage loan affordable to you with benefits included. Car
Loans If you are applying for a car loan, it is also important
to research the marketplace carefully before agreeing to any
terms & conditions. Make sure that your find the best deals
affordable to you. In college I learned a golden rule that
applies to everyone. This rule is that most car dealers up the
fees on cars 15%. This means if you negotiate with the dealer
you can get a reduction on the vehicle up to 15%.
Credit Cards Another word of advice is when applying for credit
cards you want to stay away from cards that have fees attached
with high interest rates. Avoid credit card offers that have
upfront fees and offer a high line of credit. If some offers
look to good to be true, it probably is. Credit card companies
will offer low rates to "reel" you in. This is usually good to
start but read the fine print because those low interest rates
will jump after a period of time. If you pay your bill in full
every month the rates won't matter but if you begin to pay the
minimum amount or more...look out!
Student Loans If you want to advance your education, you might
want to consider student loans. You may be qualified for a
student grant from the government. This is the first place you
want to start before committing your self to a loan agreement.
About the author:
Keith Hoyng is the web master and operator of
http://www.quickcash2u.com which is a good source of financial,
travel, remodeling, and much more information. Visit us at
http://www.quickcash2u.com/DebtHelp.html
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