Episode 7:

Can We All Just Get A Loan?

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:

  1. 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. 
  2. 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
  3. 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!