SECURING LOANS

Having excellent credit is the key to obtaining any type of loan. Take the time to ensure that your credit history is in good shape before you begin your loan application process. You are responsible for your credit, so you should make a point to know your credit history. If your credit is less than perfect, take the time to improve it before you start shopping for a loan.

When you are ready to start shopping for a loan, realize that shopping is indeed what you will be doing. You need to be patient and look for the best rates, lowest fees, and most flexible arrangements. Loan terms—whether the loan is a mortgage, personal loan, car loan, or anything else—vary greatly. So, do yourself a favor and look for the terms that best suit your needs. Some institutions will offer you a better deal if you do all of your banking with them. If you have the ability to keep all of your accounts with one institution, do so. Keep this in mind before you even need a loan. Developing a relationship with one institution may help you in the future, when you are applying for a mortgage, need that personal loan, or are searching for trustworthy investment advice.

Never just "hang out" in malls. Avoid even shopping in malls when possible especially big, fancy malls with lots of stores that you love. Throw out catalogs as soon as they arrive. Don't browse and ooh and aah over the goodies. Get them out of sight fast. Use coupons, but judiciously. Coupons can be helpful, but use them only for items you need - don't buy a product just because you have a coupon for it.

Also, continue to compare prices; the generic brand or something that's on sale may still be cheaper than the item you have a coupon for. And remember, spending too much time looking for coupons puts your focus on shopping, and that's a focus you're trying to change. Enlist the aid of friends. Just as you would ask friends not to offer you cake and ice cream if you were on a diet, ask them not to tell you about great sales, new restaurants, or all the stuff they're buying: these people will file soon for bankruptcy . Ask them to share when they explore inexpensive entertainment options, or invite them to join you in "cheap" entertainment, like picnics or potluck dinners.

Before you sign on the dotted line, make sure you conduct adequate research. Find out what the typical interest rates are for your type of loan, and then look for the best rates in your area. Basically, you should do a little comparison shopping. Credit unions tend to have the best rates on loans. If you belong to one already, stick with it and apply for a loan there. If you don’t belong to one, look into it. You may be eligible and not even know it.
Once you have found an institution to which you intend to apply for a loan, fill out an application and then wait to hear from that bank before filling out an application somewhere else. You may think it is a good idea to cover yourself with several applications, but that can actually backfire on you. With several banks looking into your credit at one time, you can appear like a risk.

If you are thinking about a loan to purchase consumer items such as furniture, electronics, or appliances, look for financing through the store where you plan to make your purchase. Many stores have paired up with financial institutions to offer very attractive deals to consumers. Surely you have seen ads touting “No Payments, No Interest Until January 2007!” Well, these could be perfect for you. These deals usually allow you to make a nominal deposit on your purchase, and then you are not required to make any more payments until the end of the special incentive term. These terms generally run from six months to one year. You usually won’t have to pay any interest if you pay off your total balance before the end of the term. However, if you do not pay it all off, all of the interest that was waived will accrue and you will owe that, on top of your original balance. So, if you can afford to pay off the balance by the end of the term, then these deals may be right for you. When you are applying for a loan, be prepared to show recent bank statements, pay stubs, investment information, and any other financial documents that you have.

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