Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Loans and other Financial Planning topics.
Paying for bills, purchasing a new car, buying a new house or just having some extra money may require you to take out a loan. However, your credit situation may be negatively affected when you seek out this financing. Most financial institutions will look at your credit history and rating to determine if they will grant you a loan. Even if they don't deny you, you may pay a higher interest simply because you have a poor or no credit history.
Banks come in all shapes, sizes, and different requirements to receive financing. Even if you have a poor credit history, shop around to try to get the lowest interest rate you can afford.
Credit unions are great for people who have a poor or no credit rating. If you have a family member who is in a credit union, you will have an easier time becoming a member.
Some car dealerships offer loans to people; however, they will have higher interest rates than other places, such as credit unions, for people with poor credit history. Seek out all alternatives if the rate is just too high.
Beware of payday loans and instant credit establishments. These places automatically approve you no matter what your credit history is. They often have interest rates that are so high that you will be paying two to three times the amount of what you originally borrowed.
|Sheri Ann Richerson|