Healthy Personal Credit 'Lends' Itself To Healthy BorrowingPersonal credit is an essential part of our lives. All of us, at some point in time need credit; be it in the form of a loan, credit cards, connecting utilities to your home etc. It can determine whether or not your application of further credit is granted or declined. Research shows that it is one of the most important factors in classifying would-be borrowers who will repay their loans. When you understand how your personal credit is waived in all aspects of your life, you are well on the way to gaining financial freedom. One of the most common mistakes that a lot of people make with regard to managing their finances is not learning how to prioritize. I know - and I am sure you know as well – a number of persons who have problems with this. I am sure you will agree that it results in frustration. When you do understand how to put priorities to your finance, you are closer to achieving a healthier personal credit and a less stressful life “So how do I prioritize my finance?” you may ask. Well you need to be very honest with yourself, and separate your wants from your needs. After doing this the first time, focus your attention on your needs, and subject each to the same critique – do I really need this? Then you go through your list of needs and place a value that determines how important or how immediate a need it is. “So what if my credit is poor, what does that mean?” That means you will have problems accessing further loan advances to meet those needs you identified earlier. “That will explain why my last credit card application was declined. How do I fix this?” The first step in repairing this is of course identifying that you in fact have it and more importantly, why. It could be because of::
An important tool in achieving good financial health and in the early detection of problems is your credit report. Much more will be said of this in later sessions.
|
