In today’s society, most people are looking for some type of financing at least once in their lifetime. More often though, we need to finance a new vehicle every few years, finance the purchase of a new home at least once, and possibly finance college education for one or more children.
Financing is one of the biggest drivers of our society today, and a service we have come to depend on. Most of us want at least one fairly new vehicle, a house to call our own, and other material assets as we experience a greater level of financial security. Without financing, most of us would not be able to afford the material purchases we make throughout our lifetime, or the semi-annual vacations more or us seem to be enjoying.
In recent years, interest rates have experienced record lows, and consumers have been more ready to make major purchases and borrow money to pay for new homes and other big items. With most mortgages you even have the option of locking in an interest rate for several years, so even if it climbs higher, you still pay the lower interest rate.
Interest rates are influenced by a number of factors, including what happens to rates in neighboring countries, relative inflation rates, and the condition of the local economy. An improving and growing economy will usually mean that interest rates are going to rise.
Establishing and maintaining credit can be a challenge. While a basic credit card with a low spending limit may not be so difficult to come by, other credit products often require a complete check of your credit history and your current financial position. A few late payments or the loss of a job can make the process of securing a loan much more complicated for a growing family.
That’s why taking care of your credit is so important. Maintaining a positive credit rating is essential if you plan to make major purchases like buying a new home or a new vehicle. Your credit may also directly affect how you spend your retirement days or finance other major family purchases.