I’m thinking of taking out a few loans and was wondering how I can borrow money most efficiently. I have good credit (not very good or excellent) so I know I won’t necessarily get approved for every loan, but what are my options and which option is best for me?
Every time that you borrow money should have an explicit and exclusive goal. Obviously, you should borrow with a mortgage to ensure that you can afford your home. But, even in smaller settings, like with personal loans or revolving lines of credit, you should have a budget and set goals and stick to them. Credit cards should not be used to buy all of your dream items, but as a way to cover some of your expenses until you are able to pay them off. Also, in terms of organization, you should try not to spread your borrowing across many different lenders. This will make it harder to build a strong reputation with one in particular, and it will mean making different payments on different days with different consequences, and altogether will make things worse.