Friendly advice is easy to ignore until you’re left worrying about the responsibilities like paying EMIs, taxes and budget planning. But even if you listen to the advice given by experts of finance, there are some important tips they likely don’t mention.
If you are planning to build or buy a house, you need to be ready with a favourable, positive credit score. Heed these tips to maintain a healthy credit several financial advisers have taught us.
- Paying Interest Is a Big Deal
Making monthly payments for your loan is not fun and sometimes it can appear to be frustrating. The real pain is when you are making monthly payments for multiple loans, which can range from vehicle loan, business loan or your credit card payments. On top of it, missing payments or overdue add a new burden on head. And it is really painful.
- Small Numbers Matter a Lot
Even if it’s a half percent deduction in the interest rate, it matters a lot. Many homebuyers do not want to negotiate on the payment terms and they do not even explore the options available for home loan. Different banks have different schemes and their interest rates for home loans also vary, so if you are considering taking home loan, do not skip negotiation. A loan with even 0.5 percent interest rate can help you save some money every month.
- You Have To Build Credit
Credit is not going to build itself, you will have to take necessary steps to make sure that your credit score gets stronger. It is better if you proactively start building your credit score. A good credit score can help you save a lot of money and strong credit means you can avail loan at lower interest rates. No matter what, you should start building your credit as soon as you can. Make small transactions using credit card and pay for them on time. Start small, and you can grow well.
- Philosophers Can Fail Badly
If you believe that your philosophy about money is accurate, think again. In the end, not all things work out and if you still rely on the last minute magic, unfortunately, you are rising your chances of failing badly. When you don’t pay attention to things, you are not going to have good time while negotiating an overdue or discussing your credit report. It’s always crucial to have an actionable plan to begin your journey as a home buyer.