Tuesday, June 30, 2009

I Need A Loan For School And The Best Kind Of Credit We Can Snag.

By Neil Baulch

Although we are in an economic recession, there are still needs to borrow money and plenty of people asking "I need a loan". Are you in a position where you need extra credit? Do you need to borrow some money? Read on to find out how you can do so.

Many people claim that the reason the U.S. is currently in an economic recession is because society relies on borrowing money. Credit is a huge part of the way we live, as most people rely on borrowing money to purchase a new car, purchase a home, or make any other large purchase. While this may be part of the reason for the recession, the fact remains that, unfortunately, credit is still a large part of this society. Thus, it is not a surprise that you may be wondering how you can still go about borrowing money for your next purchase and like many others you are thinking "I need a loan".

One of the difficulties we face as ordinary consumers who wish to make a major purchase is where do we go to access a loan. It is wise for each of us to be nervous when borrowing large sums when interest rates continue to climb.

But, a fair to good credit rating, can remove a lot of the pain associated with borrowing no matter what you may have seen on T.V.

Firstly, consider your current borrowing position. Some debt, like a mortgage, education or car loan can be considered healthy when it comes to measuring your credit worthiness. Weigh up the interest on your current loans and work out the average. This average is around what you should pay in interest on your new borrowings. My next suggestion is to consider if you really need a loan.

It would worth your while to factor in two to three percentage rate points on your average because interest rates are still under pressure as finance companies raise them to protect their position. I would consider any rate above a couple of points on what you are now paying might be regarded as being too high. Calculating the expected interest rate allows you to budget for future repayments and gives you a figure to work with when dealing with potential creditors. As you can see there is plenty to think about when refinancing so don't be in to big of a hurry to sign that dotted line.

About the Author:

No comments:

Post a Comment