We all know that finances are at the root of becoming a more stable family. The best way to build good credit is to make sure your three C’s are judged highly in the banking world. Get started in making your finances better protected and stabilized by improving these financial C’s before thinking about bankruptcy.
Banks will notice you if you stand by your word. Banks with money to lend are looking to invest people and businesses that say what they mean, and back it up with action. They really don’t want to have to worry about relying on a piece of paper to force you to do what you said you were going to. Give them evidence that it’s in your nature to pay back what you agreed, and they can depend on it.
In the business world, character is valued, but collateral is valued higher. Even the best of us can have financial difficulties. Lenders like to protect their investments by making sure they control at least part of your personal assets in case you fail to pay back your loan. Collateral can be a lot of different things as long as it has a monetary value that when liquidated, can cover the cost of paying back the money you borrowed. This can be a great alternative to bankruptcy and can help give you incentive to pay off your loans.
A lender can decide that even though a client might be true to their word, they just aren’t right for them. Lenders don’t typically want your collateral because they are not in the business of acquiring and selling physical assets. You financial ability to meet your repayment requirements will be heavily scrutinized. Your capacity is typically measured by your debt–to-income ratio. The more money dedicated to paying off debts each month, means the less you will have to spend on acquiring new debt. Lenders want to make sure you can afford adding on new debt, so it’s always a good idea to go over your payment plan with them so they know what to expect.
Banks are always looking to lend money, and if you’re on the brink of bankruptcy, companies like Creditguard.org are usually willing to help out. They just want to make sure they’ll get paid back before they do, and they use the three “Cs” to help them make the right credit-lending decision. Make sure you’re on the right track.