Show I A AI bright side to toa a T rT stow o economy 10 T rT Tanner Guzy Contributing Writer As news of the economy continues to worsen it is e easier sier to toI I feel disheartened about personal I finances Gas food entertainment I and the cost of living continue to torise j rise while wages appear app to have haveE ve veI I E hit a plateau The focus on decrease seems to tobe tobe I be prominent ent as well Yields on savings accounts are down The dollar is not worth what it used to i be is declining I Fortunately there is a positive I to the decline as well with interest rates on loans dropping alongside I the rest of the financial world The key aspect in taking advantage of falling interest rates is knowing what they are based on and how to qualify for the best rates The majority of lenders in the state of Utah base interest rates off of the borrowers borrower's credit score Many lenders will base your rate solely off of your score the higher your credit the lower lower your yom interest But how do you increase your credit score Contrary to popular b belief lief credit is not an indication of how well you manage your finances Its It's a guide to lenders about how well you manage your debt So by not having any debt or paying all of your loans off within a few short months of receiving them you are not establishing credit Many lenders recommend with loans such as auto motorcycle R RV or personal loans that consistent payments should be made for a minimum of six to eight months This is in order to allow time tune for the the debt debt and your consistency in maintaining it to Jo establish itself on your credit By giving these types of loan you are demonstrating that you are able to manage your own expenses and the added debt of a term long-term loan Another problem seen on the Credit Crunch C Continued on r Credit a Crunch Continued from A I 1 credit reports of students is 15 mismanagement of revolving debt Revolving debt consists of credit cards or lines of credit These types of loans are established with a set limit that you can borrow against As you borrow and make payments the available debt will fluctuate However even after paying a card off in full the loan does docs not close and the full limit is available again I Even as payments are made on time a balance that is too high and too close to the available limit will dramatically decrease your score To the credit bureaus it looks like you are living off of your debt not your income Different credit bureaus have also reported that people tend to max out their credit cards before they file bankruptcy A goo goon good rule of thumb is to never let your balance exceed 50 of your available limit The workings of credit and loans can be very intricate and detailed It Itis Itis Itis is best to speak with your a q s M i q ii yi s aw f I A AI Ol of The slowing a brighter side loan officer ask a lot of questions and make sure everything is clarified before you commit to any loan You could end up paying a lot less than you are currently |