Unit 3 Discussion Topic Your credit rating is very important

Unit 3 Discussion Topic

Your credit rating is very important in many areas of your life. Your score determines the interest rate you would get on loans, the cost of your insurance, and could affect future employment. You have rights as a consumer when it comes to billing practices. The Federal Trade Commission provides information that will help you to understand your rights as a consumer.

Fair Credit Billing: Federal Trade Commission. [Website]. Retrieved from  http://www.consumer.ftc.gov/articles/0219-fair-credit-billing

The importance of a personal financial plan is essential. Economic issues are one of the major areas that can affect your personal wealth. Do you think the Fair Credit Act protects the current consumer in these economic times? How can having a personal financial plan influence your credit score? Tell us about any negative or positive experiences you have had in regard to your credit and what you did or could have done to improve your credit rating.

Solution

Economic issues are common to all industries in the economy and they cannot be avoided. These issues are inherent to all the activities of the economy. Therefore, Fair credit act cannot protect the current consumer in these economic times. Personal financial planning helps in ensuring that you have sufficient wealth for your financial plans and future needs. If we have sufficient funds to make payment for the loan we had, we will make the payments on time and hence, we will have good credit rating.

I have a good credit rating. I recently applied for a mortgage loan. The mortgage bank checked my credit history and sectioned the loan without any hassles at the lowest rate of interest. I f anyone have a poor credit rating, they should try making all the debt payments on time and try to prepare a few loans to improve it.