Clever Credit

October 1, 2013 by  
Filed under Debt & Credit Free

Let’s face it: Most people feel the need to have things “things” to be happy. There’s nothing wrong with that; even the most frugal people need material possessions in order to survive. It’s not about materialism; it’s about establishing our very identities as individuals in this society. Who wouldn’t want to have a better car, a better computer or a better house? Wanting those kinds of things is only natural; it shows us that we are alive. But sometimes we want -and we need- something that is just out of our economic reach. No matter how much we struggle, some things just seem to be impossible to get, even those we need the most. This is the kind of situation where most people decide to take a loan.

Obviously, there are more reasons to decide on a loan. Sometimes loans are essential when building up a new business venture; you usually need to have money in order to make money. People who are in debt are usually offered loans that would unify all their different debts into a big one, easier to pay off. There are a lot of reasons for taking out a loan.

Most loans work in a very simple way: The requester asks for an amount. The lender gives away the money. The requester repays the money, plus the appropriate commission, during a fixed period of time. Every month, the requester pays off the same amount of money, making it easier to repay and to calculate exactly how much money will be needed every month. It’s a very clear and simple system that allows all the parties involved to retain some degree of control over their finances. But what happens if the requester has unexpected health problems and becomes unable to pay off the monthly fee during a short period? That shouldn’t be a problem; there are a lot of lenders who add an insurance policy, paid by the requester, to the loan. This insurance can cover up the monthly fees of the loan during the time the requester is sick, ensuring that the debt is properly repaid. Although this system may sound solid and bulletproof, it is very advisable that anyone requesting a loan reads the small print of the insurance policy’s terms in order to avoid uncomfortable situation with insurance companies.

During the last twenty years, many people lived off loans, scamming banks and lending agencies. Nowadays that’s nearly impossible, as most lending institutions share some amount of information on your credit history. A requester with a poor credit history, one who has been bad at repaying loans, will have a hard time asking for another loan. In other words, if you want someone to lend you something  specially if it’s money-, it’s essential to have a spotless reputation.

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Clever Credit
Let's face it: Most people feel the need to have things "things" to be happy.

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