Month: June 2019

You can use a mortgage calculator to calculate your credit power in a bank and they will tell you exactly what you can afford. The bank uses a formula that you may have heard about, called the debt-to-income ratio. Basically, they take all your bills and combine them with your income to get a percentage of how much you spend and how much you can pay. It is useful to know if you want to rent or buy, because it tells you how much you can pay for a monthly payment. The rent and the purchase are pretty close when it comes to the size of your monthly payment. The difference lies in the down payment, the more difficult credit checks and the property values ​​in the sale. The rent is definitely a little cheaper, easier and faster in most cases, so if you need something now and know it will be short term, then the rent is for you.

The director is very easy to decipher with the help of a rent vs buy calculator that shows a depreciation schedule. It shows how much capital and interest for each monthly payment. Keep in mind that the initial amount is very low at the beginning, because you still owe a lot of money. As you owe less, you pay less interest, so it is important to pay the amount of capital. If you decide to buy, try adding a little to the main amount each month so you do not have to pay so many percent.

Suppose you can rent for $ 1,000 a month or buy an apartment for $ 150,000 and pay $ 1,350 a month. 1300 includes:

Monthly mortgage payment – $ 850.00

Taxes / Insurance – $ 300.00

Apartment rate – $ 200.00

All there is basically the same as the rent, except that you did not need a down payment or 2 months of work to buy a house first. If you look at the depreciation schedule, you will see that the amount of capital during the first year is approximately $ 165 per month. This is your only savings compared to rent. Therefore, in this 3-year case, you will spend an additional $ 185 / month, buying instead of renting. After 3 years for an amount of US $ 6,660.00 PLUS, you must sell the apartment with the payment of real estate and the transfer of property rights.

Conclusion

Each person has a different situation, and they always require different paths. There is no better or worse idea, just get the best out of what you want or need to do. He also uses the rent vs buy calculator well, because he can tell you a lot!

Mostly, people refrain from availing credits because they believe living with credits is a burden. While this is true, availing credits has its own advantages. One of these advantages is that you get serious income tax benefits if you have some credit. Also, you will be able to afford what you cannot at once.

Also, even if you don’t have a credit, no one can predict when you may need one. Maybe you lose your job or buy a new car – the reasons may be many. But there is one thing that you need to note. It is not a bad thing to borrow some money but it is a bad idea to have bad credit. Bad credit affects most of the aspects of your life. In this article are a few ways how. For further information, you can look at this now.

How do I Earnbad credit?

A credit is an indicator of how trustworthy a person is when it comes to forwarding credits. It includes various aspects like the regularity of the repayment of the credits in any previous loans, the total amount you owe someone (including the mortgages, credit cards, etc. and also the duration of each loan. Usually, out of 800, scores below 579 are considered bad credit and 61% of people in this bracket are more likely to default on their loan.

Each time you postpone the monthly EMIs, you lose your credit score, making your credit worse.

What effects will it result in?

Having bad credit score means that your future lender will think twice before forwarding loans to you. This may also result in the following circumstances.

#1 No loan approval or loans at a higher rate of interest

Your future loans will either not be approved at all or approved at a higher rate of interest. You will think of quitting your plan of starting your startup.

#2 Career

Nowadays most employers look into the credit history of their prospective employees. Bad credit might mean lower packages and the inability to quit the job that you are not interested in.

#3 Insurance

Even insurance companies are not left behind when it comes to credit checking. Bad credit history might increase your premiums (many companies do that, though not all) or reduce your returns.

So, these were the ways in which bad credit hurts your budget and life. For more information, you can look at this now. All the Best!!