Times when you need to borrow
When used wisely there are times when credit & borrowing can be useful, offer you protection and even make you money.
In my last post Loads of money from property I said I was going to tell you how to make tons of cash from property even when your skint. Well sorry but I am not going to tell you now I think it would be to controversial and I might get in trouble.
Instead I am going to tell you when to borrow cash and use your credit cards for maximum benefit.
Times to borrow.
When should you borrow money? You should borrow money in these circumstances.
1. Buying a house - Borrowing money to buy a house can't be helped really can it? They cost a lot of money and property prices keep rising you can't save the cash because you need somewhere to live, renting costs nearly as much as buying so you need a mortgage.
If you saved for the next 20 years and bought for cash would you be any better of taking into account rental costs? I think not then theres the likely increase in property value, this is the way to buy a house Louise has bought her house with a mortgage but she plans to pay her $152,377 mortgage in 5 years: 30th June 2012. She started her blog to stay motivated the blog is called Journey to eliminate debt visit it.
2. Protection - If your having work done on your home or buying an appliance, even a car and the company offers you finance on a 0% deal You should take it and then pay it of within the 0% period Why? Because the finance company will have a duty to fulfil the warranty should the other company go bust or not do the job properly even if you clear the finance next day.
So why do the finance company offer these deals? So they can get your phone number and try to sell you other stuff, just tick the box on the form saying you don't want to hear from them and they can't.
Thats it for today might give some more times when credits good tomorrow.
Amateur Geek:
How about when you are using borrowed money to build credit?
I had zero credit a few years ago. I got a credit card by securing it with cash, and then charged everything! But I only buy things I was going to buy anyway, and for which I already have the cash. These "loans" are usually only for a few days and thus at zero percent interest. For example, when I go to pay the cable bill, rather than logging into my online banking and making a payment to the cable company, I instead make the same payment to credit card company and then I log into the cable company website and pay the cable bill with the credit card.
The result - after a few years my credit rating is through the roof and I was able to buy my own home without a co-signer, and just purchased a new car two weeks ago (also at zero interest over 7 years, it was cheaper than buying a used one at 8.6% and came with a 5 year warranty).
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