How to Get Lower Loan Quotes
Posted on | July 13, 2009 | No Comments
In order to understand how to get a lower loan quote, we must first look at the difference between the two personal loan categories.
The first thing we need to do is look at those who are able to get lower loan quotes and great loan terms. These people are called “prime” borrowers. This is because they have a good credit rating with little to no debt.
There are no easy or set rules to being a “prime” borrower because every financial institution has different qualifications for loans that must be met in order to receive any type of loan.
There is also another category that is called the “sub prime” category.
There are many typical qualifications to the “sub prime” category that we can discuss. Such as having a credit score lower than 660, having at least 2 payments over 30 days late within a period of 12 month, having one payment over 60 days late in a 24 month period, foreclosures and charge-offs, any type of bankruptcy within the last 7 years, monthly income versus monthly budget and much more.
When these qualifications apply to you, then you are considered a “sub prime” borrower. However, don’t worry as there are many different types of loans that are available to the “sub prime” population as well.
Those that fall into the “sub prime” category may not know about all of the options available to them because in the past these options were not available. It is an amazing advancement that even though you may have bad credit, you are still able to receive some type of personal loan. These personal loans do have rather high interest rates, higher loan fees and loan terms that may not be the greatest, however at least you are still able to receive assistance in the time of an emergency.
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