A little something about loans…
I had a great question posed to me given my line of work and I thought that I would share my thoughts. The question was: When applying for a loan, what does the bank look for?
Well, anytime you are looking to take a loan, you have to take into consideration the following information for yourself:
How much can you afford? How long do you want to pay it back? What is the interest rate? What are the fees?
Normally, the best likely situation would be a secured loan (car, home, boat, cash) rather than an unsecured loan (like a credit card or a personal loan). Secured loans will normally yield a lower interest rate unlike the unsecured kind.
What financial institutions that extend credit to people need to do is to prove the creditworthiness of the borrower. They find this out by your credit history (FICO score), your income (ability to pay back the loan from paystubs and income verification), and your current debt/income ratio (the percentage of total monthly debt you have vs how much gross monthly income you bring home). There may be other special factors that can be considered, but these are the basics.
All in all, loans are something that people need to take care of obligations, however, you just have to be careful and not overextend yourself with debt.
you’re still alive!
yea, I’m still alive. Branch management has been difficult for the past couple of months for me and I’ve been trying to take care of business. I’ll be hopefully able to post some more very soon.
the real question is that is it better to pay cash or take a loan?
respect mi tuggs!! i had to dedicate a post to that question. i knew that question would come up and i have always gone back and forth with that at times in my own understanding. i don’t claim to be right or wrong on the subject, but i want to certainly give you an honest answer as i understand from my experiences.