When it comes to assessing people’s financial lives and giving advice, experts have opinions divided into several points. One of them has to do with the importance of credit history versus the construction of wealth.
When talking about building credit history
Most recommend starting with a low-cost credit card, so it will appear in the financial system and when you start consuming, you can get a good rating, as long as you make timely payments. That is why every year you have access to preventive checkups that are important to attend. Personal loans also help you build a track record, since they don’t have such strict requirements to be approved.
On the other hand, there are those who advise that instead of spending time trying to build their history, use those efforts to build wealth. That is, instead of paying the bank for borrowed money, start saving and investing your own money in different elements that will pay interest and produce profits, so it will not be necessary to borrow.
The truth is that both options are valid and important.
Building wealth is essential in the life of any person, since a savings account and some investments are never over and provide stability. However, the construction of the credit history is not something that should be left behind, since although you can have the money necessary to cover certain expenses without borrowing from the bank, there are some cases in which requesting financing will be the most appropriate option For example, when it comes to buying a car or a house.
So, be encouraged to build credit history, but without neglecting the construction of your own wealth, through a savings account, a fixed-term deposit or investment in mutual funds. Remember that to obtain any of these products, the best option is to compare the alternatives using web comparators such as Austiras Fersons.