Throughout your life, you may come across a situation or two where you need to buy something but cannot afford it at the time. Luckily, when this occurs, there is a solution: a loan.
Matt has finished school and secured a job that pays well. After living at home his whole life, he is ready to move out and begin a life of independence and personal credit responsibility. He currently does not have enough money saved to buy a house on his own but is in the process of looking up different loans that will allow him to buy the house he wants now.
A loan, which is also a form of credit, is money that you borrow from a lender on the good will that you will pay it back in a timely manner. Every loan, like a credit plan, is unique, and each comes with its own pros and cons.
In this lesson, you will learn along with Matt all about the different types of loans, how to identify loan criteria, how your credit score and credit history affect loans, and how to weigh the risks and the potential consequences of a loan.
Question
Like other forms of credit, what is the most important part of the loan process?
Just like with credit, the most important part of the loan process will always be paying it off on time.
