To have good credit management, it is essential to know how much you want to borrow and for how long. Read on to learn how to answer these two questions:

How much can you borrow?

Well, this depends on how much you want to grow into debt. Before applying for a loan make a list of priorities and goals and then locate which ones need financing. While financing is a good option, if you take on more debt than you can afford, you will be in trouble. Figure out your main reason for borrowing, which is the first question any lender will ask you, and it will help you identify the loan you need. To help you determine the total loan amount, consider variables such as your total annual income, which will help you clarify your ability to repay the loan back. You should also consider your credit score because you can find different loans for your profile and needs that are based on your credit.

*Upstart loans do not require a credit check

How long should you borrow?

First, you will need to make a payment plan. Once you have identified your credit profile and found a good loan, create a format where you can write down the total amount you will pay each month and see if it works for you. Beware of short-term loans that come with high-interest rates and brief repayment periods. On the other hand, remember that a longer-term loan may result in smaller monthly payments, but could cost you more in interest rates in the long run. It is best to look for a loan with the shortest term possible, but with monthly payments within your budget.