Loans For Every Occasion: Home Loans, Payday Loans, Student Loans And More...

At some point in life, it is almost guaranteed that you will be applying for
a loan of some sort. Paying cash for products and services is not only
becoming obsolete, it's terribly inconvenient. Today, credit is a way of
life, and as more and more people begin to shop online, plastic is the
currency accepted everywhere.

The most basic of loans is of course, the credit card.
Companies that issue credit cards make money every month that you carry a
balance, and they are betting on the fact that you won't pay off the balance
every month.

Some loans actually make good business sense. Why would anyone want to shell
out $300,000 for a new home when they could get a Home Loan and pay
$1,000.00 a month, and then deduct the interest paid from their income
taxes? That three hundred grand could be put to work in other investments,
and could conceivably earn more for you than you are actually paying for the
house!
And all that time, if you time it right, your house becomes more and more
valuable.

There are also times when for many people things just aren't going well
financially. An unexpected expense occurs and you find yourself just coming
up short on your living expenses.
Many types of loans exist for this type of situation, both secured and
unsecured.

Maybe you just need some quick cash to get through the holidays, and intend
to pay the loan off within the next few pay periods. Companies offering
short term Payday Loans abound both on the Internet and off. Some with no
credit check will transfer up to $1,500 into your bank account within 24
hours.

Student loans, auto loans, small business loans, personal loans, home loans,
second mortgages, payday loans, government loans, bad credit loans, loans to
consolidate other loans - there is a loan for just about any occasion out
there.

The question is how much are you going to pay for your loan?
And the answer to that depends in most cases on your credit history.

Your Credit History: Weather or not you get the loan, and how much it will
cost you.

It is never too early to start establishing credit, and the best way to do
this is with a credit card. If you are finding it difficult to obtain a
credit card because you have no history, you can always buy your history by
applying for a secured credit card or line of credit. Put down $500 or
$1,000 and borrow against it. Make sure the institution you are applying to
reports to the major credit bureaus, use the line of credit and pay your
bills on time, and voila - you have a credit history! There is nothing wrong
with carrying a balance over, just pay the minimum or a bit more, and pay it
on time!
Creditors like to think they will be making some money off of you.

What Lenders are Looking For

While different institutions have different criteria, there are some
generalizations one can make about how they determine the creditworthiness
of an applicant. Make no mistake about it; creditors are in the business of
making money. If your credit is less than perfect, it doesn't necessarily
mean you won't get the loan, but you will be paying more for it!

After receiving your application, a lender will then acquire a credit report
from one of the three major credit bureaus, Equifax, Trans Union, or
Experian. This is your credit history.
Taking into account such factors as your income, the balances in your
checking and savings accounts, the assets you own, the length of time you
have been at your current job and place of residence, the amount you owe
other creditors, and how promptly you pay your bills, the potential lender
will then make a determination on if you will get the loan, and how much
they will charge you for it.

Frequent late payments, bankruptcy, repossessions, legal judgment liens, or
accounts being turned over to collection agencies do not bode well for
obtaining a loan. That being said, most creditors realize that life happens,
and such legitimate circumstances like an unexpected illness, injury, or the
loss of your job do not necessarily reflect negatively on your
creditworthiness.

When Things Take a Turn for the Worse

If you are in the process of paying on a loan or loans and one of these
unforeseen circumstances befall you, talk to your loan officer. Most loan
institutions find it in their best interest to work with the lendee, and
will often make the necessary arrangements to make it easier for you to make
your payments.
Just remember, they want their money, and the last thing they want is for
you to default on your loan, or heaven forbid, declare bankruptcy!

About The Author: Michael Talbert is an author that writes on a variety of
topics. Visit The Loan Station at http://www.Loan-Station.net for more
information.