I have always emphasized the importance of financial education and learning finance. One of the things that came to my attention is how ignorant people are when dealing with the finance. One of my clients was looking to take up a boat loan. Well he could get a boat loan, not an issue, there are so many banks and other financial institutions ready to give loans for exactly this purpose, buying a boat. But that person almost never made his past payments on time and even had a defaulted on a loan just because he did nt want to pay back. So what he needed actually was bad credit boat loans.
What he did nt understand was the credit history. He did nt actually know the concept of credit history of an individual, this is one of the most important aspect related to an individual’s credibility. As with boat loan or any other loan or mortgage, a lender always makes a check of the borrower’s credit history, whether the borrower has the capability to pay beck the loan on time, whether he has been paying his past payments on time. A good credit history can mean that you qualify for a loan easily and can get a better deal than others on your loan if you can negotiate on it. A bad credit history means it can be tough for you to qualify for a loan or if you qualify it would be expensive to get a loan. The interest rate would be higher as the lender has more risk on giving you a loan. Bad credit boat loans is also possible, there are not too many lenders giving bad credit boat loans but still there are some who specialize in such loans.
That again comes to the point that a person should be knowing about finances and how they work. That is the only way you can understand money and make it work for you. Don’t pay the price of your ignorance. That could cost you dearly sometimes. The best education empowers you to deal with real life situations, if you can not put your education to a good practical use, it looses its value.