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Borrowing is not a dirty word

borrowing money

Hello you all! This week, we will look into the importance of credit and why it has so many benefits.

One of those benefits is the daunting B-word; get your mind out of the gutter, not that word! I am referring to the word, borrow. If you are like me, you too don’t like to borrow from anyone because you like keeping your money. Borrow is using something belonging to someone else to return it. “Loan” can be a noun, such as a sum of money that you must pay back with interest, or a verb, the act of lending something to someone. Please don’t think I am a weird person; we all know that you are borrowing for a large purchase like a home or car.

As a college student, it is likely you borrowed money and currently are dealing with student loans. If you have a healthy credit score, then borrowing isn’t a bad thing. When borrowing, the annual percentage rate (APR) is critical when deciding which loan to accept. The lower the APR you receive means that you will pay less interest over time. Your APR ties right into your credit score. The higher your credit score, the less interest you will be charged. In this sense, if you’ve had financial issues in the past, you could be in a place where your finances are paying off interest. Having excellent credit gives you the financial freedom to have great financing options when borrowing.

Daryl Singleton
Daryl Singleton

There is the other side of borrowing, repayment. Repayment seems to be the part I struggle with most. I simply don’t like giving away money. There are several options available to students as it relates to student loans, but you must be willing to call and ask about your options. Most lenders are willing to work with you if you are responsible managing your repayment. Consider that for smaller items, and you could borrow from yourself because you have been budgeting. Remember please take what you need from this blog and let’s build!