What is Good Debt? How Debt Can Help
March 2, 2021 | June Mckaig
In the old days, the goal was to never owe another human being a dime, but with the nature of credit scores being what they are today you’ll never get good credit without a little good debt. What is good debt and how does that work? Here’s what you need to know about building up good credit by accruing small debts and paying them on time.
After all, it’s all about showing what you can manage, not what you can avoid. Once you answer the question of ‘what is good debt?’, you can know how to get that stellar credit that you deserve! And we also explain how a title loan can help you through.
What Is Good Debt? Here Are Some Examples
Good debt is indeed out there and knowing what kinds of debt are ‘expected of you’ is important for building a strong credit profile. There are the types of debt that actually help to build your credit and this information comes from Experian, one of the 3 primary firms when it comes to credit:
As pesky as they can be, student loans are actually a good indicator as to how you will deal with future debt which you have accrued. By paying back your education money you not only show that you are responsible but by getting the education in the first place, you become more attractive to lenders.
A Bachelor’s degree alone means that statistically you command roughly 24k more median income and that does indeed get you noticed.
Homes have always been considered a good risk in the long term. While values rise and fall commonly, over time a home tends to pack a lot of value. It is also a good indicator of your net worth, as we tend to select a dwelling that gives us a certain amount of reward for the hard work that we do.
Think about it, the median price of a desirable home is around $200,000. From the perspective of a financial institution, this shows that you know how to manage your money.
Business loans are considered good debt as long as you are making the business work. When you execute a plan for a business then it takes years to really make the switch from ‘just making it’ to running a proper business. This takes a lot of foresight and this is reflected in your credit rating.
Frankly, most people don’t know how to run a business so this is a skill that people will notice.
Is There Such A Thing As Good Debt?
As shocking as it may sound, good debt does exist. Believe it or not, certain types of debt are expected in normal life and if you somehow manage not to build up some debt, then you end up with an unattractive credit profile. If you think about the business end then this makes sense. When you owe for something and pay it off then it shows that you are reliable.
For a proper business, this means that they can try to tempt you. Whether or not this will be possible is up to you, but that kind of opportunity can open up new avenues in your life. It’s all about knowing what type of debt is bad and what type of debt is considered good.
Some Debt Is Necessary To Show Creditworthiness
While it seems contrary to the point of demonstrating that you are creditworthy, a small amount of debt is really a good thing. You reach a little farther to get what you want in life and you pay it off in a timely fashion. It demonstrates that you are dependable and ready for larger responsibilities.
That doesn’t mean that you are immune from disaster, of course, but thankfully you have recourse if an emergency should arise.
Turn To Title Loans If Emergencies Come Up
If you have the need for emergency travel, surprise medical expenses, or even home repairs that can’t wait, then Nevada Title Loans can help. So, what is a title loan? Can you get one If you have no credit or bad credit? Will you need a cosigner?
A title loan is a loan you receive when you use your vehicle’s title as collateral – meaning you do not need a cosigner. Getting one with Nevada Title Loan is easy, you just need to follow the following steps:
- Gather up your driver’s license or state-issued ID;
- Get your lien-free vehicle title and vehicle ready;
- Call us or visit our website to get the application started;
From here, you will fill out your title loan application and if approved – in as little as 30 minutes – then you can get your cash on the same day. The process is easy. After you fill out your online form, a title loan representative will give you a call to come into your closest Nevada Title and Payday loans office. Once here, the representative will inspect your vehicle to determine how much you can qualify for. They will also take a look at your other documents and determine if you qualify for approval.
If you do get approved, you’ve got the help that you need right away. It’s really that simple. So if you need assistance, don’t hesitate to give us a call. Bad credit or even no credit, everyone can apply. After all, 'what is good debt?', It's the kind where you deal with an emergency before it can get worse.