Learn about Credit - Interest Rates

Host: Why are interest rates so important?
Linda Stroman: Interest rates are so important because that’s what really dries up the cost. When you’re buying a home, when you’re buying a car, those are big ticket items and those types of things most of us need to go out and buy and get a loan for.

Therefore, we have to look at what the interest rate is. If for example in a home and most of us know that the first 10 years or better, you’re paying most the interest on that loan. It is supposed the principle so you want to pay a little interest as possible because over the life of that loan you’re going to pay you’re paying to the creditor to borrow that money so you pay a little bit. You pay it more back.

With the good credit score, you can get a lower interest rate and then pay less interest so they will be able to bring you your total amount down that you owe to a creditor. So again credit comes in to play, and make it sure that we had decent credit scores. A great credit score is 720 or better on as closeness as we can get and higher we are the more room we have to negotiate out interest rates. Therefore, we’re paying out less money to have to pay back to add that elimination plan.


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