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| Learn how to establish, evaluate and rate
your own credit profile |
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- Find out what financial institution offers the credit you want
- Choose the type of affordable mortgage that best suits your
needs
- Explore the features of federal student loan programs
- Reinforce what you learn
Find more loan information
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RATING
YOUR CREDIT
LIKE A PRO |
- Learning the basic premise of the credit-approval decision
- Evaluating your credit and rating your own credit profile
- Ordering, evaluating, and reviewing your credit report
- Understanding the meaning of the credit report codes
- Monitoring your credit history is part of good money management.
Learn how to rate your own credit background before applying for
your loan. You examine the basis of most credit decisions, what
lenders call the Three Cs. You rate yourself in a sample credit
scoring guide, which helps you get a better handle on the qualities
lenders seek in a successful loan applicant. Finally, you learn
how to obtain your own credit report and how to interpret the information
and codes in your report. Find
more information
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| WHERE
TO GET A LOAN |
- Learning about the different types of financial institutions
where you can get credit
- Reviewing credit features of each financial institution
- Determining what kind of institution and loan best suit your
needs
In the past, financial institutions specialized in certain kinds
of loans. You found business loans at commercial banks, home mortgages
at savings and loans, and, if you had little or a poor credit history,
personal loans at finance companies. But times and laws have changed,
producing financial institutions with broader-based services. One-stop
shopping at your bank, savings and loan, or credit union now presents
you with many financial services. In this chapter, you find out
about the features of six different types of financial institutions
where you can apply for credit. You explore the variety of credit
available at each institution. All this information helps you determine
where to go and what kind of credit to request for your financing
need.
Find more information
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| Getting a loan means getting credit. |
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That seems easy enough to understand, especially when you’re
looking for a car loan, boat loan, or home loan. However, to completely
understand credit, you need to look at credit as a way of life.
You live in a “cashless” society, where plastic credit
cards are more common in wallets than paper money. Learning about
credit is a journey toward building one of the most important
financial tools you can use — not only to make purchases,
but also to enhance your reputation and standard of living. Does
it matter how you handle your credit? You bet! The manner in which
you establish, develop, and maintain your credit is a direct reflection
of your credibility, trustworthiness, and ability to repay your
debt. It can affect your future employment and credit-seeking
opportunities. Your focus is to make credit work for you, not
for credit to overwhelm you in excessive debt. Here you learn
how to establish and properly maintain your credit. You explore
the variety of avenues where credit is available: store charge
cards and bank credit cards, as well as loans for your home, car,
higher education, and major appliances. Finally, you identify
the early warning signs of credit trouble, its unfortunate consequences,
and how to seek counseling and fix your situation.
Find more information
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| ESTABLISHING
OR RE-ESTABLISHING YOUR CREDIT |
- Establishing credit for the first time
- Clearing up previous poor credit and credit-report mistakes
- Reviewing the federal laws that protect consumer credit
.
Having a good credit rating is a wonderful financial tool, but
having that good rating takes good management from you, both to
establish that credit rating initially and to maintain your good
rating. If you have credit problems and need to re-establish your
good credit rating, you find various methods of clearing up your
credit history and learn about the laws that protect you.
Find more information
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| APPLYING
FOR RETAIL FINANCING |
- Exploring financing through retailers and contractors
- Understanding the terms of the financing contract
- Taking advantage of retail financing
Retail financing arrangements, in which the retailer helps you find
credit to pay for your purchase. You discover what to look for in
the fine print of the financing contract: the interest rate, terms
of the contract, reasons for repossession, and so on. You see the
advantages and disadvantages of this type of financing and find
out why people use it. Find
more information
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| GETTING
A LOAN FROM YOUR HOUSE |
- Evaluating the cost-effectiveness of refinancing your mortgage
- Reviewing the features and advantages of a home equity loan
- Determining the best home equity arrangement for you
Your home is probably your most valuable asset. If you need to reduce
your monthly debt or find a chunk of cash to make home improvements
or send your child to college, you may want to consider refinancing
the mortgage on your house or taking out a home equity loan.
Find more information |
| APPLYING
FOR AN EDUCATIONAL LOAN |
- Exploring the processing steps of the FAFSA
- Learning the provisions of federal student loans
- Examining repayment conditions and alternatives
- Investigating other financing options for parents
Education is an investment in your or your child’s future,
but the costs of post-secondary education may shock you. You uncover
the components and provisions of the Free Application for Federal
Student Aid (FAFSA), and examine federal loans for both students
and parents. You review the repayment process and the alternatives
available to students who can’t repay their loans. The loans
discussed in this chapter apply to students attending the following
federally approved schools: colleges, universities, community colleges,
and trade, technical, or vocational schools. Individual states may
have their own unique lending programs; ask your state’s department
of education for more information.
Find more information |
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