Loan Documents: Document Your Loan With Friends and Family Part 2
Documenting loans with friends and family that you pay back can be positive information reported to a credit bureau. Although it doesn’t hold as much weight as a well known institution, it can help give a good image of the person they are lending money to. On your credit rating, they can see such information as Child Support Payments missed, bills paid late, taxes owing, and various other information. Some of this information can be negative, but doesn’t affect your rating as much as it could be a decision point. Borrowing money from friends and family, drafting loan documents, registering the debt as paid in full when it is paid, all adds to positive information on your credit rating.
If you need to document your loans with friends and family, I suggest purchasing a loan document from www.kasu.ca also known as www.documentyourloan.com. Make sure you get all of your loans with friends and family documented. You can buy a loan document for as little as $59.99, versus paying a lawyer $100 for a simple document. Get those loans in writing now!