COMMERCE 4FL3 Lecture : Chapter 6 - Borrowing on open account.docx
4 Dec 2013
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Financial planning borrowing on open account chapter. Overspending and carrying on balances by just paying the minimum monthly payment. Don"t spend on basic living expenses, impulse purchases (especially expensive ones), nondurable/short- lived goods and services. Establish a stable, long-term relationship with a financial institution: open checking and savings accounts. Use credit: get one card and make small purchases, use the card periodically. Obtain a small loan: make regular payments and retire the loan in accordance with the loan agreement. The cs of credit lenders often look for these to assess the willingness and ability of a borrower to repay a loan: character, capacity, collateral, capital, condition. Monthly consumer credit payments (excluding mortgage) should not exceed % of your monthly net income. Consistently use your own legal name to build credit history. Have information reported to credit bureau in your name as well as your husband"s. Consider retaining separate credit file when you marry.
