installment loans near me

How Does Your Credit History Affect the Loan?

How Does Your Credit History Affect the Loan?

Here’s a tip; Try to minimize your debt obligations to 35%-45% of your income. So, if you usually earn $4,000 per month, try not to go any higher than a repayment plan of $1,720.

What Is an annual percentage rate?

While some credit bureaus (namely the bigger ones) charge origination fees, you’ll often find that most will just charge interest on your loan.

Origination fees, a term that covers administration and processing requirements, is a one-off cost for taking out of the loan, usually between 1% and 5% of the loan amount (that being said, some online lenders do prefer fixed fees instead).

So, if you wanted a loan of $5,000, an average 5% origination fee would take out $250 of the loan amount, leaving you with $4,750 – because of this, it’s often best to avoid these fees when possible.

It’s important to know your credit score before applying for personal loans, in order to make sure you are able to qualify for the most fitting no-credit-check loans. The majority of personal loan lenders are interested in working with applicants who have a good credit score and consistent credit history, and online banks are particularly notorious about this.

All the same, if you already have an existing relationship with a bank, you may be able to get approved for favorable loan terms if you have a reliable credit history of paying your bills on time, and honoring any past loans and accounts terms.