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Before Filling out any
online loan applications - check out our Tips
They will SAVE you time and money! |
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Tip 1: Know your credit report!
Before applying for any type of loan you must know how the lenders will see you - and they do this via your credit report. You should get a copy of your report from each Credit Reporting Agencies in the US: Equifax, TransUnion, and Experian. DO NOT get the 3 in 1 reports offered by each agency! They do not supply the same indepth information the lendors will be using to judge you - get your individual reports from each agency at the above links. Do Not purchase for your credit score either (see tip 2 below). Why? Because the odds are very good that there is some information incorrectly recorded in your report - and this incorrect information may hinder your application process, or cause you to pay a higher interest rate. Also - its a good idea to check your reports at least once a year to thwart identity theft. To help you in this effort the three agencies provide you the ability to get a free report once a year, just follow this link If you find errors on your report - FIX THEM! You can do this your self so we do not recommend using another agency to do this. Each agency has posted procedures to address incorrect information. You Have Your Credit Report - Now What?How To Read Your Credit Report Properly. Read more here... |
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Tip 2: Know your FICO credit score!
This score more than anything really affects if you'll be granted a loan request and what rates you'll pay for the money. To see the exact same scores your lender sees you need to use the same company they use - Fair Issac Corporation. You can get a copy of your scores from their website at myFico. Next, pay down your balances on your revolving (e.g. credit cards) loans. One criteria of your FICO score is the percentage of your available credit you've used. The higher the percentage - the lower your score. NOTE: Do not pay off and close an account! Having an open and active account with a small balance may help your score. Close the account and you could lower your score, especially if you've had the account for several years. Follow this link for more information on understanding your credit score here... |
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Example
National Interest Rates vs. Your Credit Score
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| For a $225,000 30-year, fixed rate mortgage: | ||
| If your credit score is: | Your interest rate is: | ...and your monthly payment would be: |
| 760 - 850 | 6.18% | $1,320 |
| 700 - 759 | 6.40% | $1,352 |
| 680 - 699 | 6.58% | $1,377 |
| 660 - 679 | 6.79% | $1,407 |
| 640 - 659 | 7.22% | $1,470 |
| 620 - 639 | 7.77% | $1,550 |
Tip 3: Know your Financial Situation!
Why do you need a loan? Can your wait to get the item you intend to purchase with the loan proceeds? How much can you afford to pay each month on the loan? You must know the answer to these questions before considering a loan. The basic gist is do you really need this loan and if so - can you afford to pay it back? A great tool to help answer these questions is a budget. For more information on budgeting, please read this article here.
Listed at iquicktips.com