Once I was working online on my financial portal, my neighbour’s kid comes up to see me and when he observed I am busy, he placed himself with me silently watching what I am doing. After a while his developed curiosity pushed him to break the silence as he was looking on the screen that was showing commercials of bad credit loan, what he asked to make me surprised a lot because I was not expecting such an intelligent question from at least a junior school kid;
“I know about the variety of loans and credit instruments like mortgage, car loans, personal loans, home repair loans and credit cards because my parents have got these all and I usually heard their conversation every month while making our home budget that holds payments for these loans but I don’t know about the bad credit loan. What kind of loan is this and can my parents take it?”
I was thinking we are living in a highly advanced society that has a great impact on such financial instruments but most people think it best to discuss with the teens; Although knowledge of loans, mortgages and other credit types are not meant for young people. Being a hard subject, at least high school students should get the primary knowledge about what it means to borrow. Moreover, we should not wait for the time that our kids get this kind of information from their school but financial literacy should start at home with our kids as soon as it’s possible with an intention to build responsibility, confidence and power of good decision making, and when they start asking you questions on this financial subject, don’t hesitate because it’s a right time to begin.
Anyway, I replied to him bad credit loan is not such kind of any loan product that can fit into any specific category offered by banks and other non-banking institutes because it’s a situation that can turn individual or business from good credit into bad credit rating and these people when requiring some kind of loans, say if it’s a personal loan then they can’t get the loan from personal loan lenders but from those lenders who offer bad credit personal loans.
Do you know your parents are enjoying their loans and credit facilities on the best rates and terms because of their good credit history that they have achieved through their regular timely payments without a break or delay? Let’s say your father has got a car financing that requires monthly payment towards the car dealer or lender until it completely paid off, if he doesn’t pay his liability in form of monthly loan payments on time and doesn’t keep up with the regular payment schedule, his credit score will drop, in this kind of situation if he needs another type of loan then he will have to apply that loan to the specific lender that accept bad credit applications.
That’s the reason if your credit history has turned into bad credit because of your negligence or have been lost your job and, or you can’t afford to pay off your liabilities on your existing loans then there may be an only way to apply for your next credit that you need a lot to survive your life is through a bad credit loan.
He was listening to me very carefully and I was expecting another question that may have definitely build up in his mind; if we can get a loan with bad credit and good credit history both then why should we care about responsible lending?
As he didn’t find words to put another question because it may be a lengthy topic for that age but my responsibility is compelling me to tell him at least what’s good and what’s bad.
So I added bad credit loans taken for any reason that may be a car loan, home loan, credit cards or else are expensive kind of loans beside these loans are hard to get and; would you tell me if your parent’s credit history turns into bad then what happens if they want any kind of credit after and while I was just paused myself he replied me an intelligent answer that everyone will definitely enjoy here, in his own words, he said “they will fight while making their home budget”,
This was an excellent answer that makes him a genius among other junior school kids. As it were not completely understood by this young fellow but he knew his parents will get hard feelings because they have to spend more money to adjust their previously tight budget.
This was an interesting conversation between an adult and kid but completely different in form of discussing especially interesting topics of kids in which they usually don’t stop asking questions and it makes the environment so funny when an adult want to escape out from a situation, anyway but one thing that admires me about my neighbour’s kid, he is so concerned with the financial affairs of his parents that he wants to do something that helps them releasing their pressure.