BORROWING
| Borrowing Strategies When you think about borrowing money, there are several things to consider. Ideally, you should be able to:
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| Where Can You Borrow? Most consumer credit comes from: banks, savings and loan institutions, credit unions, finance companies, and credit card companies. In addition, many people borrow from relatives or other individuals who may or may not be good credit sources. Individuals who loan money but don't have a permanent place of business may offer you loans that charge more than the legal interest rate. Wherever you borrow, be sure to get a signed contract, and READ THE FINE PRINT including the terms and the finance charge calculations. |
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| The Cost of Borrowing Credit costs money! The cost of credit will vary considerably depending on the method used to calculate the balance on which you pay a finance charge. It is often difficult to figure out the finance charges once you start using a credit card regularly and carrying a balance on it. The bottom line about finance charges on credit cards is this: Try to pay off your credit cards each month. If you can't afford to pay off your credit cards each month, make the largest payment you can afford, and pay the card off before you make another purchase. Different credit card issuers may offer different interest rate plans. Make sure you understand the interest calculation method before you roll over your credit balance. Read more: Understand Your Credit Card » |