The Type Of Credit You Have Matters.
Okay, tell us if this matters:
- Two strangers want to borrow the $3000 you've worked two years to save.
- They're willing to pay you "interest" for making the loan. Nice!
Look at the following information:
Stranger "One"
Stranger "One" has two loans, both paid "as agreed."
But look at the loans:
- A comic book store loaned him 20 bucks for two months, and he paid it back as agreed in two payments of 10 bucks each.
- A candy store loaned him 10 bucks for a week. He made two payments of five bucks each.
Stranger "Two"
Stranger "Two" has two loans, also.
- She just made 36 payments to a bank for her car loan.
- Her payments were $300 per month.
- She paid "as agreed."
- She also has been making credit card payments for 36 months at her credit union.
- Every payment has been on time for all 36 months.
- She also paid twice the minimum payment each month.
Which stranger would you loan your money to, based on that information?