My parents are going to ask the bank on Monday for $7000 (to burrow)... do you think they will allow?My parents had a debt of $850, 000 5 years ago, still in the process of being paid of. We still have $500, 000 left. We went to America last year as a whole family so I am not sure if that have effect our debt slowly decreasing to nothing... But our house now costs $1 million + and my dad earns $100,... |
Yes only because you have assets
American creditors (like banks, credit unions and credit cards) use a system of credit scores. Any credit score over 750 is excellent. A score of 700 is considered really good. Anyone with a credit score below 650 is considered higher risk and will most likely (a) not get credit or (b) be charged at a high interest rate if given credit. If your parents don't have a credit history in America, then most likely they won't be given a loan, even if they earn a lot of money.
One of the best ways to build credit is to open a credit line with a credit card. Paying off balances on time and having a long and good-standing transaction history are ways to build good credit. It could take a few years to build up good credit. If you're young, you should start a credit line now, but don't max out the credit card. Just use it for small purchases and pay off the full amount each month.
The way the economy is these days I wouldn't be surprised if the bank asked you to loan them some money.
