What is Credit?
While some people pay cash, financing, or obtaining a boat loan, or getting credit, is the way most people pay for their purchase. Purchasing on credit requires making monthly payments with interest over a defined period of time to pay back the loan.
Much like every decision you make, there are pros and cons to consider before you actually apply for credit.
The Benefits of Good Credit
A good credit history can open many doors. Many big-ticket items (like boats) are purchased on credit. Using an extension of credit to purchase a boat, in many cases, could be to your advantage. An extension of credit is also commonly used to purchase other items such as a new engine for that boat or that new boat accessory you've had your eye on.
Credit is convenient, but it's not free. When creditors grant you an extension of credit, they give you financial flexibility. But there's a cost. Creditors charge a fee for that financial flexibility. Every creditor has a different way of charging you, so it's very important that you always review all the documents given to you and the terms of your credit extension before entering into an agreement with a creditor. Typically, the fees you are charged include some form of interest.. Visit Understanding Credit for details on your own personal credit standing.