Know Your Loan Basics

Key Takeaways

  • Four basic components of any type of loan are time, interest rate, loan amount and payment.
  • Young adults tend to have four types of loans: student, auto, credit card and mortgage.
  • A good credit score will give you much better terms on any type of loan—and save you thousands of dollars over your lifetime.

Establishing Strong Credit Hands

Key Takeaways

  • Establishing a good credit history early in life goes a long way to helping you get favorable loan terms.
  • To build your credit, pay your bills on time, stay under the 30 percent utilization rate and establish two credit cards with staggered due dates.
  • Get a free credit report at AnnualCreditReport.com. Make sure there are no errors in your credit history.
  • Always keep your FICO score above 740.