3 Reasons To Borrow Money For Now Instead Of Later

Because of a wide variety of factors, there are times when it’s better for borrowers to take out loans now rather than later. But such a simplistic statement is definitely not convincing, right? So instead, here are the reasons why it’s true. That way, you can consider whether to borrow now or not.

Investing today is likely more profitable than tomorrow

It’s a general rule for interest rates and cost of living to get higher as time goes on. That means if you have plans, your mind is set, and you have the means to pay back, there’s no better time to take out a loan for an investment now than later.

An example of a good investment would be property, as its value goes up over time. It can also either be a passive income or a place of residence, allowing you to save rent money in the long and have your own home.

Another would be education and learning programs. These can help you move up the career ladder or make a necessary career switch, allowing you to have better-paying or more fulfilling positions.

Lastly would be a business. While there’s no guarantee that the venture will have a return on investment, it will be worth it if it does. Aside from the earnings, the experience you can have in running your own business is invaluable.

You’re building credit score building

Creditworthiness, or credit score, is a report of your loans and credit repayments you have made in the past. Money lenders use credit scores to check borrowers’ credit history and their likeness and ability to pay their loans or default. By doing so, they avoid risks. Thus, it follows that a borrower with a poor credit score will find it hard to secure a loan. The same would be true for those who still haven’t taken out a loan.

So if you have plans to take out a big loan in the future, it’s a good idea to borrow money for now and work your way to a good credit score. One way to do this is to take out loans, especially personal ones, and then manage to pay them off regularly, completely, and punctually. When it’s time to take out the big loans you truly want, your credit report will show that you are a credible borrower who handles your financial responsibilities well, making lenders very likely to approve your loan.

You have steady income sources and can add another

Let’s say you have multiple income streams. If you are planning to take out loans to give yourself and your family a better life, there’s no reason you shouldn’t do so now. After all, you are more likely to get approved by money lenders more easily.

The same is also true if you have multiple income streams. Money lenders won’t be wary of lending you money if you can provide proper documentation that proves you have various income streams.

So, what should you loan for if you already have stable income sources? Well, a small business is a good idea. Or if you already have one, how about another? Or, better yet, how about a business with a novel concept? Good examples include a coffee shop and bookshop in one store or a cyber cafe that sells hobbyist items like plastic models and graphic novels.


After reading this post, did you change your opinion and wonder if borrowing money now could be beneficial to you? After all, loans have helped many individuals pursue their dreams, whether it’s for a capital startup, a new house, a new car, or many other financial goals. If yes, then good; just remember to be a responsible borrower. If not, that’s okay; hopefully, there will be better opportunities in the future.

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