Credit has taken over the world and Walter Glenn Soileau reveals exactly how it works.
SARASOTA, FLORIDA, UNITED STATES, June 12, 2018 /EINPresswire.com/ — Credit cards. Houses. Boats. Cars. Nearly everything, big or small, can be purchased with credit. In many ways, this is great. It allows people to buy things that they need or want, and they can pay for those things over time.
Unfortunately, it’s easy to abuse credit, which ultimately hurts your credit. The damage that one can easily do to their credit can take years to repair. Those years of repair could push back important milestones such as getting a house, or a safe, reliable vehicle.
However, Walter Glenn Soileau believes that by understanding how credit works, you can avoid these devastating pitfalls.
Soileau states that knowing the right credit mix, being responsible, and keeping credit in check will explain how credit works.
The Right Credit Mix
Around one-hundred years ago, the decision to lend money was a personal experience. The banker, in the town where the person grew up, would decide whether they wanted to lend them money.
While the system has globalized and becomes far less personal, the intricacies of credit lending have remained. A person’s credit report is the sum of their financial history.
That sum takes credit history, how much is already owed, the length of credit history, and the credit mix into account. Additionally, it considers any recent credit. Therefore, there isn’t just one-factor determining eligibility.
Unfortunately, that could work for or against you. Considering, those who are new to credit have a disadvantage before they even start. The longer they have credit, the more stable a score will be.
Soileau’s advice is to have a mix of credit added to your name, as soon as possible. Instead of just having credit card payments, take out a car loan, or rent an apartment. If you can, get a mortgage. The different types of credit help you far more than simply being good at paying one type of credit.
Soileau stresses that this is a big deal. Being responsible, for everyone with access to credit is a balancing act.
Of course, there are the extreme cases, where people borrow above their means, using their credit to satisfy their every whim.
Plus, there are the people who think they don’t have to pay the money back…Oddly enough, there are quite a few people who feel this way.
Yet, there are also the people who try their best, but make a bad decision or become a victim of circumstance.
Walter Glenn Soileau explains the best way to avoid this is to be responsible with your payments.
Overall personal credit takes many factors into account. So, if a person is faulty for a month on one factor, it doesn’t destroy them.
The problem is that when one thing goes wrong with credit, the effect snowballs.
Soileau’s advice to avoid this is to pay at least the monthly minimums, if not more. This way your credit remains manageable.
Keeping Your Credit in Check
Walter Glenn Soileau states that keeping an eye on your credit score and figuring out the trends is paramount.
Sites like Credit Karma are available to help you track your credit for free. While Soileau advises you shouldn’t give your information out to just anyone, keeping track with a reliable source is good. This way, you will understand what’s really going on with your credit and how you can help your own score.
After all, credit is based off a mix of factors that add up to the financial possibilities of your future. Instead of convincing the town banker, your score must be telling enough to encourage a lender’s faith.
Therefore, when you go into a lending situation, you will know exactly what you’re getting into.
In summation, Walter Glenn Soileau hopes that this explanation of credit helps to increase your understanding of credit. Since, in this world, understanding and managing credit can pave the way to financial success.
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Source: EIN Presswire