Protecting Your Credit
by: Wesam. Saif.
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Word Count: 1008
Keeping your credit safe is something every person needs to consider when applying and accepting the terms and conditions of any loan. They need to be able to keep themselves from falling into any financial traps loans of any type present, especially if they aren’t sure when first starting the loan process if this is the right thing to do. If a potential borrower has any doubts, they probably should wait on getting a loan. And if they do get a loan, keeping in constant contact with their lender is the best and easiest way to keep out of additional debt.
A borrower who has secured a loan for whatever reasons should sit down and make sure they have a budget in place in order to aid in paying their monthly bills. A basic spreadsheet is all that is needed, or if the borrower is not computer savvy, they can get a budgeting record book from a bookstore or even from an accountant such as H&R Block. Being able to see when bills are due help borrowers feel as if they have a better handle on their financial future.
No matter how complex the budget a borrower creates, it should contain all the wage and other income resources the borrower uses to pay their bills. Alimony, child support, and disability checks should all be included. They should deduct things like the rent or mortgage first, followed by any loans, then their utilities, food and travel expense. Whatever is left over can be split between a savings account for emergencies and any necessary supplies, such a clothing or vehicle needs.
If there are any changes in the budget, such as unexpected medical expenses, they should be added into the budget as soon as possible to make sure they are accounted for and paid. Borrowers should be prepared for as many eventualities in their finances as possible, even though this may not be feasible or possible. Being prepared just in case is a good thing if it can be done.
All loans should be reviewed carefully before the borrower signs on the dotted line. It does not matter what type of loan it is, it should be reviewed as all loans will affect a borrower’s credit if they are paid late of defaulted on. It takes seven to ten years to have an adverse condition removed from ones credit record.
Making sure ones credit safe is not difficult if precautions are taken. Unfortunately, these precautions should also include preventing any form of identity theft. Identity theft has become more common and happens when one financial information is stolen and then illegally used, causing hundred to thousands of pounds worth of damage. Whole life savings can be stolen in a blink of an eye and unless they have precautions in place, borrowers may not have any recourse to get their money back. This is why all borrowers should be careful when writing a check and making sure they do not leave their check book anywhere that is not secure. Routing and account numbers can easily be jotted down by someone peering over a borrowers shoulder. Borrowers should also never give out this information to anyone the borrower does not know or trust.
The same precautions should be taken if the borrower has a credit card. Regardless if it used online or physically at a store, the borrower should keep his or her eyes on their card at all times. If possible, never let a wait person take the card out of your sight when in a restaurant. They can easily make a carbon copy of the credit card and use it.
When ordering things online from a website, make sure the site has security measures in place. Borrowers can tell if the site is safe by the ‘s’ at the end of the http in the site’s URL. Many sites will also display the authorized VeriSign logo or another that is equally as safe.
Loan statements should also be put away safely where the information can be easily obtained by someone the borrower does not trust. Even though the loan has already been secured and used to pay off bills or purchase property, the demographic information is contains, such as a social security number, can be used against a person. With research and care, borrowers can keep their financial information safe.
Closing Loan Thoughts
Everyone needs a little extra financial help from time to time. Whether the potential borrower is using the money to pay for a vehicle, consolidate their finances, pay off a student loan, or buy a house, they should never borrow more than what they need and they should always research all of their loan options in order to secure the one with the best interest rates and lowest fees.
Borrowers who follow a good budget and repay their loans in a timely fashion can keep themselves from falling deeper into debt. If they take a loan and find themselves having difficulty repaying it, they should contact their lenders immediately and work out a repayment plan that will help them through the difficult time if it is at all possible. They should look into deferments and forbearances if their lender offers one.
The borrower should make sure that when they fill out their tax papers they do not mistakenly include anything that makes their loan look like some form of income. The only thing that is tax deductible is interest on certain types of loans and borrowers should contact their financial advisors with any questions about loan terms, interest rates, or any other financial matter they may have.
With proper planning, a loan can be a positive asset in the borrowers life and help them obtain the things they need, get out of financial debt, and purchase their own home. Ambitious borrowers will be able to continue on with their schooling and make their dreams a reality.
Author: Wesam Saif
www.TheWritersOnline.com
(Read or Write Your Way to Big Success)
About the Author
Wesam Saif is the author of this article on Cash Advance. Find more information about Payday Loanhere.
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