It's no big deal.
I'm a cash and carry kind of guy.
My dad always taught me that if I don't have the money to pay for something, then I shouldn't be buying it.
That is all fine and good, but there may be an exception to that rule.
And yes, it's wise not to buy things you can't afford or don't have the money to buy.
There are some things that you may not need or want now, that can only be bought with credit (for most of us anyway).
One of those items is a house.
Most people simply can't pay cash for such a large investment.
So, you say "my credit stinks.
Who cares?' The answer is; the institutions that lend people money to buy homes, cars, business equipment or any other larger ticket items.
They care.
Sure, there might be loan and finance programs that help those with challenged credit buy homes and cars and luxury items, but don't short change yourself and pay more than you have to.
Let's say you live in California and unexpectedly you find a deal on a home that had been taken back by the bank from the previous owner.
A foreclosure.
That term is all too common when referring to the California housing market in 2008.
Maybe you weren't looking, but let us just say that this is a smoking deal.
We've already seen a decline in home prices and this one is priced way below all the other ones in the area.
You've got to jump on it.
It's a home in the down town area of Huntington Beach and it's only going to cost $400,000.
That would surely be an excellent deal.
If your credit is good and you qualify for a 30 year fixed note at 5.
99%, then your payment is only $2395 per month.
If you happen to fall into the "my credit stinks.
Who cares?" category, then the answer to that question is; you care.
Generally, folks that have poor credit pay two to five percent more per annum than those with good credit.
That means that your payment on this unbelievable deal will be anywhere from $2658-$3806 (from 6.
99% to 10.
99%).
That range is anywhere from $263.
00 to $1,411.
00 more than the person with good credit.
That's a huge difference.
Think about it.
Over just five years that's a difference of $15,780 if your credit is just marginally damaged OR a difference of $84,660 if your credit is very damaged and you only qualify for something in the 10.
99% range.
It's important to think ahead.
Those that do end up seeing unbelievable opportunities come their way.
Not only is it important to recognize a great opportunity, but it's also important to be able to seize that excellent opportunity.
Don't let poor credit get in your way.
If your credit needs some t.
l.
c.
, do it now rather than waiting until the moment you actually have a need for an extension of credit.
I'm a cash and carry kind of guy.
My dad always taught me that if I don't have the money to pay for something, then I shouldn't be buying it.
That is all fine and good, but there may be an exception to that rule.
And yes, it's wise not to buy things you can't afford or don't have the money to buy.
There are some things that you may not need or want now, that can only be bought with credit (for most of us anyway).
One of those items is a house.
Most people simply can't pay cash for such a large investment.
So, you say "my credit stinks.
Who cares?' The answer is; the institutions that lend people money to buy homes, cars, business equipment or any other larger ticket items.
They care.
Sure, there might be loan and finance programs that help those with challenged credit buy homes and cars and luxury items, but don't short change yourself and pay more than you have to.
Let's say you live in California and unexpectedly you find a deal on a home that had been taken back by the bank from the previous owner.
A foreclosure.
That term is all too common when referring to the California housing market in 2008.
Maybe you weren't looking, but let us just say that this is a smoking deal.
We've already seen a decline in home prices and this one is priced way below all the other ones in the area.
You've got to jump on it.
It's a home in the down town area of Huntington Beach and it's only going to cost $400,000.
That would surely be an excellent deal.
If your credit is good and you qualify for a 30 year fixed note at 5.
99%, then your payment is only $2395 per month.
If you happen to fall into the "my credit stinks.
Who cares?" category, then the answer to that question is; you care.
Generally, folks that have poor credit pay two to five percent more per annum than those with good credit.
That means that your payment on this unbelievable deal will be anywhere from $2658-$3806 (from 6.
99% to 10.
99%).
That range is anywhere from $263.
00 to $1,411.
00 more than the person with good credit.
That's a huge difference.
Think about it.
Over just five years that's a difference of $15,780 if your credit is just marginally damaged OR a difference of $84,660 if your credit is very damaged and you only qualify for something in the 10.
99% range.
It's important to think ahead.
Those that do end up seeing unbelievable opportunities come their way.
Not only is it important to recognize a great opportunity, but it's also important to be able to seize that excellent opportunity.
Don't let poor credit get in your way.
If your credit needs some t.
l.
c.
, do it now rather than waiting until the moment you actually have a need for an extension of credit.
Source...