BOOKSANSAAR

When it comes to borrowing money, not all loans are created equal. The way you manage different types of debt can significantly impact your financial health. Let’s explore the journeys of Rahul and Sameer—two borrowers who took very different financial paths. Rahul vs. Sameer: A Credit Score Story Rahul and Sameer both took loans, but their financial outcomes were drastically different. Rahul took a home loan and a car loan, making regular payments on time. Over the years, his credit score improved because lenders saw him as a responsible borrower. His credit limit increased, and he received better interest rates on future loans. Sameer, on the other hand, relied heavily on credit cards and personal loans. He missed a few payments, and his outstanding balances kept growing. Soon, his credit utilization was too high, and his late payments dragged down his credit score. When he needed a business loan, banks rejected his application. What went wrong? The type of debt they carried made all...