Almost everyone after graduation is aware ofsaving hard earned money from resources for the future,maybe for an emergency or for after retirement or even just for leisure. However,even after trying, there remain loopholes which may drain out cash reserves saved with hard efforts, and some of the problems are stated below which no one is commonly aware of.
Having no credits
This might sound insane, but when one doesn’t have any credit to pay, lenders don’t understand the trend of paying the dues. And this might raisethe difficulty to get some money from various possible resources. This means that if one doesn’t have a credit established, it becomes difficult for the lender to understand whether the dues are paid on time, or they are just procrastinated. So, to get credit started, one can get a credit card, or some unsecured loan as both of these loans aren’t collateral similar to an auto loan.
Negotiation in auto loan
One might not be aware of the fact that the rate of interest can be negotiated when auto loans are taken and then accordingly, can be adjusted. For example, at a car dealership, one finds the perfect car, the dealer will search for financing topurchase the car. Suppose the bank asks for 3.5% rate of interest, but the dealer says5.5% instead. And in such cases, the deal can be negotiated.
Paying Extra on a mortgage can make a big difference
Always pay more on the mortgage because a major portion of mortgage is, in fact, interest. Suppose there is a mortgage of $250,000 on the home. Let’s assume the rate of interest is 4%. For 30 years, one may have to pay $429,673whichmeans that an additional amount of $179,673 over the mortgage value needs to be paid. But if one decided to pay an amount $100 more to the principal each month, then one would save $27,957 which is a considerable amount.
Don’t keep medical debt because it is a terrible debt
Even though it’s not an irresponsible cost, it’s just wrongand is equivalent to ahuge purchase made on credit cards which is unpaid. And if someone has experienced it, it will sound very biased and annoying. If anyone getsstuck in the situation, you can reach amedical facility for making payments BEFOREHAND. This won’t hurt the credit.
Expand the credit
Lenders are akin to know the credits one uses. If anyone has a mortgage, it willproveto the lender that one is accountable to get the loan.
Diversify your credit
Lenders want to know what credit one uses this giveslenders a proof that one is responsible for getting that loan and can pay back with interest.
So next time anyone is making any future plan for savings or creditability from the earned resources, this is all one needs to keep in mind. The unknowns that have nowbeen made known can definitely helpsave extra money.