Best financial secrets revealed for college graduates

Best financial secrets revealed for college graduates

It is better to think of and form the business goals, as early as possible in life. Successful people are the ones who start their plans as soon as they are graduates. So, there should be some ideas for a savings account as well as for retirement account. But many people never think of all these when they are young. So, let’s discuss problems and solutions regarding financial goals which must be considered. You can check here for more information.

No credit – no less than lousy credit

Many people think that having no credit is always better than having bad credit. But this is not true. No credit can be as bad as having bad credit. The main reason behind this is, for lenders. This is the first measure through which they can gauge borrowers. Through this, they understand how they can behave when they lend money. So, they think that a person who is having bad credit is the one who is not paying the debt on time.

These people are less risky when they compare them to the borrower with no credit. This is because in case of the borrower without credit, they will not be able to decide how he can pay when he borrows. So, always try to keep some credit history. If it isright, then it is better. Choose either a credit card or unsecured loan for this purpose.

financial secrets

Negotiation of auto loan interest

When we consider auto loans, there is a chance to adjust and alter the interest rate which many people are not informed of. This is because there is a significant percentage ofan auto loan which goes towards the dealership. This will be usually 3% or sometimes even 5%. So, always try for negotiation in the auto loan.

Try to make extra payments

Yes. Always try to makeadditional payments on the mortgages. This is because interest takes a significant portion in the mortgage loan. It is possible to save a lot of money by paying some extra money to the principal every year. If the loan amount is over $200000, and a person tries to make around $100 every month as additional payment, then he will be able to save over $27000 assuming the loan duration was for 30 years.

Medical debts

Even though there was no additional purchase, whenever there is purchase using a credit card, you should owe to pay on time. Credit score never understands the reason behind a delayed payment or missed payment; it just goes down. So, always ensure that you work with the medical facility so that the payments are made on time.