How to Find the Best Loan?
At present it is difficult to meet someone who did not use a credit in one form or another, whether a bank loan, car dealers, credit supermarkets to purchase of consumer goods. When it comes to loan on the house, buying a business, buying expensive things choose the loan must be based on a well meaningful, serious decision, we are talking about major financial commitment for many years.
It would seem to be a universal algorithm that helps to choose the best, most suitable option.However, there is no such algorithm, prove this is not hard, just look at the variety of bank advertisements that offer all you want up to free loans, low or even zero initial payment, etc. All companies claim to have the best interest rates for a loan financing, so you need to know who truly offers the best deal for you.
Typically, they focus attention on one loan factor, or other factors not mentioned at all. Here is a simple calculation to attract the attention of a potential client, knowing that not everybody know the lending details.
Usually we have no time to search the best option for the loan, and we are not thinking long time, rush to the first offer which seems us as the best. In this case the effects of advertising are working. We are not prepared to have on hands the most optimal version of a credit for our needs. But the version of the best conditions of the loan should always be ready for use at any time.
Almost every person applied for a loan can get it regardless of his financial situation. The only question is under what conditions he will. The greater risk for the bank to experience problems of loan repayment, the more disadvantageous for the customer requirements for obtaining credit.
When you apply to a financial institution with the loan, you will be evaluated by them for the value of risk of bad loans. Just like you should have 100 points when you open a bank account your financial status will also be evaluated by the point system.
What are the main factors that will influence on the calculation of your ranking?
- The history of your payments. This includes not only the time you pay the bills, but with some regularity, you make a zero balance your credit cards. This factor will give you 30-35 points.
- The number of credit cards that you constantly use. On the one hand the more credit cards in your use the more common possible limit. That means a less risk for lender. On the other hand, it is important whether you do the minimum payments and decrease total available credit or your payments allow you to keep a high free credit. This important factor is valued as 20-25 points.
- Duration of use credit cards. The more time you are actively using credit cards, the more trust you get from lender. This figure is estimated to be 10-15 points.
- Availability of your other bank loans. If you already have credits and successfully guided them, then you know how to handle money. This indicator is usually estimated at 10 points.
- How often do you apply for the loans? If you frequently apply for the loans, it will work against you, even if you successfully repay them. This is a signal for a lender that you are constantly in money need.
When bank grants you the loan it takes into account your age, work experience, income, education, social status, whether the refusal to grant loans, whether you own real estate or renting property.
When you begin to search for a lender sometimes you get a surprise: each of the lenders has shown that he has the most favorable credit conditions and him comparative table follows that this is true.
Which of these best suits you? To answer this question, make our comparison table. Fill in this table the following estimates:
- One-time costs on the loan. This includes charges for loans, charges for the transfer of funds, other charges. Typically these costs are based on percentages from the loan amount.
- One-time credits on related services. These include credit insurance, life insurance of the borrower, notary services.
- Fixed costs. This is the annual interest rate on the loan and the monthly charges on the loan balance.
Draw up a table for each company offering you services on credit, you can easily find a lender with the most suitable for your circumstances.
When you are armed with the data obtained, please follow next advice. Good advice is to find companies that provide results with research of a lot of home loan and interest rate in the market. They research a lot of companies to find out the best offer and service on base a ratio of a quality to a price and they recommend only qualified, reputable and responsible of them.
Finally, having their own research results presented in the table and the opinion of independent experts, you are now ready for free consultation with a representative of credit companies.
It is very difficult to find the best offer you need among the large number of companies. The best way to have a right decision is familiarized with opinion of independent experts. To do so it is necessary find out the company that provided you with objective and independent information about various products and services. You could look at one of such company on http://www.vengos.com which has inspected a lot of companies to find out the best offer of loan on base a ratio of a quality to a price. As result they recommend one of the most qualified, reputable and responsible of them with the best quality for optimum price. It is represented on http:// http://www.loan.vengos.com
Article Source: http://EzineArticles.com/?expert=Valory_Nester
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