As an adult, there is likely to be many times in which you need to apply for credit or one kind or another. There are mortgages, personal loans, auto loans, and credit cards. While it can be tempting to jump on whatever you are first offered, especially if you’re excited to move forward with your purchase, you will need to refrain from doing that. You need to ensure that you’re making the best possible decisions when it comes to the financial things that you must consider. Here are some great pieces of advice to help you with just that:


One of the worst things you can do is to blindly agree to an adjustable rate mortgage. Even if you’re locked into a low-interest rate for the first couple of years, not knowing what your monthly mortgage payments would be after that is too risky. Don’t assume that the payment could never jump too high, as some people have found their payments to double in size, which caused them to go into foreclosure. Also, don’t assume that you will simply be able to refinance your mortgage by then.

There’s no telling what could happen in the lending industry and housing market. You might not be able to qualify for the mortgage you need. Therefore, you want to avoid obtaining any mortgage that doesn’t come with a fixed interest rate. Talking with professionals at a place such as Eagle Home Mortgage will help you understand how the fixed rate mortgage can benefit you in many ways, even if this means paying a little more in monthly payments in the beginning than you’d pay with an adjustable rate agreement.

Personal Loans

The two types of personal loans are secured and unsecured. With the secured personal loan, you’ll have to agree to use some type of personal property of yours to secure the loan. What this means to you is that if you default on the loan, the lender can obtain that personal property, commonly referred to as the collateral, as repayment for what they allowed you to borrow.

An unsecured loan doesn’t require you to agree to give any collateral. However, this usually means that the unsecured loan can be harder to get approved for and when you’re approved, you may not be able to borrow as much money as you would with a secured loan. It’s  important to weigh your options here, because if you give collateral for a loan, such as a car or house, and you were to lose your job and become unable to pay on your small personal loan, you could lose some very valuable and important things of yours.

Credit Cards

Too many people make the mistake of simply focusing on the amount of money that they’re approved for and sign up for a credit card just based on that information. Many times, this leads to headaches and financial trouble because they never took the time to read the fine print. It is vital that you’re well aware of the early payoff penalties, if there are any, and how the interest rate may adjust after the first few months. You also want to know if there are any perks that the credit card company is offering that might make it more worth your time and money. If the perks they’re offering do not relate to anything that you could use in real life, don’t opt for that card. It might be a great card for someone else, just not for you. Just make sure that you’re taking your time to read the fine print, talk to a representative of the company to get your questions answered, and compare the card you are interested in with a few others. This will ensure that you’re getting the best possible credit card for your needs.

With those tips in mind, you’ll have a much easier time ensuring that you will be able to make the financial decisions that best suit your budget and financial goals.