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Learning More About Savings

Hello, I’m Miranda West. I would like to use this site to help others build an adequate savings account. Most people do not have enough money in their savings accounts to cover emergency repairs or other expenses that unexpectedly arise. Without a savings account, you may be at the mercy of your employer, which can have a negative effect on upward mobility. I will cover popular savings techniques you can use to start building your nest egg. I will also talk about ways to reduce spending so you can dedicate more to your savings. Thank you for coming to my website.


Learning More About Savings

A Graduate's Quick Guide To Navigating The World Of Credit

by Ralph Ford

As you graduate school and head out into the world of adulthood, there are many new facets of life you'll have to learn. And for many people, financial matters can be some of the most confusing and hard to manage. Take, for example, the matter of loans and credit. How can you wisely use them and build a credit history that will make your life easier rather than harder?

Here's a brief primer on what you need to know about credit.

The Two Type of Loans

Credit is basically the act of borrowing money from a lender to pay for something right away. Then, you must pay back the money with an additional cost. Credit histories kept on consumers in the United States show how you have used credit in the past to help lenders determine whether or not to loan you money in the future.

There are basically two types of credit: closed-end loans and revolving loans (which you can continue to borrow from). Auto loans and student loans are an example of closed-end loans, while credit lines or credit cards are two types of revolving loans. 

Using each in balance with the other will help you establish a solid history of responsible borrowing. 

How to Start Your Credit

Starting your credit history is simply a matter of getting a first loan. That first loan is often a credit card, but getting a credit card too early can be disastrous for your finances.

A better choice is often an auto loan. Auto loans have very low interest rates and result in you purchasing something very useful (a vehicle) with which to earn more money and manage your life. They are closed-end loans, which means that if you choose wisely, you won't find yourself in debt beyond the needs of your car. 

How to Manage Credit HIstory

A lender generally wants to see a combination of good activity in your credit history in order to lend you money. They want to see you making payments on time, paying reliably over a period of time, and having a variety of loan types. If you begin your history with a car loan, for example, it's a good idea to get a low-balance credit line as well, establishing two different types of loans. 

Managing your credit is easy when you keep control of it. Never take out more than a small number of loans or credit at one time and be sure to make at least the minimum payment each month. Avoid using credit unnecessarily and you will soon find that you have a good history behind you.

Establishing a good credit history and using loans smartly will help you create good habits for years to come. You'll surely find yourself soon able to reach excellent financial goals like homeownership, paying off student loans, and financial independence.