Borrowing money can be a really smart thing to do but only if you really know what you’re doing. On this episode, we’re answering some of the most commonly asked questions about loans.
$$$ This Is How You Get Money $$$
When considering loans understand that…
- If you get denied, don’t take it personally. It could just be that the algorithm didn’t like you that day.
- Loans for investing in yourself are great – like a small business loan or student loan. Loans for stuff like luxury cars, not so much.
- Compound interest, remember that phrase? That can work against you if you’ve got a high interest rate so make sure you know what your rate is! So if you’ve got a high interest rate and you stop making payments sure you know what your rate is.
Here are three tips to help you in the loan process:
- Be organized! Make sure you have the necessary documents needed to get a loan get a loan like your tax returns, paystubs, W2s. Have digital copies of them easily accessible.
- When reviewing a loan offer, make sure you understand the difference between variable and fixed interest rates. A variable rate might appear lower at first but the rate could go up at any point in the future just based on the ups and downs of the us economy
- One major factor in the interest rate you get on a loan is your credit score. And one thing that negatively impacts your score is missing a loan payment so make sure you set up autopay on all of your loans, even if it’s just the minimum payment.
Loans usually represent a positive life change or transition, so congrats!