|
|
| *Loan,banking and credit>>>credit score |
Is it better to have a good credit score or lots of money in savings? |
Why should I have either a $10,000 credit limit or $10,000 cash invested in mutual funds? Good question. I think the wealthier you are, the better. If $10,000 were invested in a mutual fund that has an average return of 10% per year (many funds do even better), this is what your $10,000 investment will turn into: in 5 years=$16,105 in 10 years=$25,937 in 20 years=$67,275 Credit can't build wealth, it will only allow you to borrow money that you have to give right back. When you have money, there's no need to borrow in the first place! The better your credit score the less money you will have to put down on any loan. Period! $10K in mutual funds. If you have enough money, you should have a good credit score. If you previously messed up your credit score, there are ways to correct it. First of all, pay everything off. If you don't have the means to do that, talk to a credit counsellor and they might be able to arrange payments with your creditors. When you use your credit card, immediately pay it off (only use it with the equal amount of cash in your bank account to pay it off). Realistically, there are going to be times when this can't happen (what's credit for after all?) in which case you need to set aside the amount every month to ensure that the payments are being met. Also, remember that credit is not necessarily a good thing to have. For example, if you have $20K in credit cards when you apply for a mortgage, you will be able to get a bigger mortgage if you reduce your limit - even if you aren't carrying any balance on your card. That's a weird question because the two aren't mutually exclusive. In fact, I'd be willing to bet that people with savings have higher credit scores--because they'll never be short on cash and have to miss a payment. And your credit limit has nothing to do with your credit score. Your credit score is based on length of history, paying on time, having different types of debt, etc. a lot of money hidden, so know one knows you have it.... |
| Tags |
| credit counseling credit debt credit line credit repair credit report credit score credit card online bad credit loan bank of american bank of china |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |