Becoming An Intelligent Borrower.
Here in Part 2, we give you more information to move you in the right direction. There are three more ways for you to use. If you will take note of and actually use the ideas in part 1 and part 2, you will not find yourself under the crushing weight of debt.
Some people see suggestions and use them. Others read the suggestions, gain knowledge, but stop there. Which kind of person will you be?
Do you want greater control over your future? Then put what you read into practice. It will make a difference in your life.
If you haven’t read Part 1, you might want to read it after you read this article. It doesn’t matter which order you use as you read these articles. What matters is changing bad borrowing habits and developing new ones. What matters is becoming an intelligent borrower.
Let’s get to the tips:
1. If you are going to become an intelligent borrower, you must be sure to search everywhere for the best loan terms. that makes sense doesn't it. You'd be surprised how few places people search for when looking for a load.
Go on line and check various lenders, or perhaps your local newspaper would be great places to begin. You can see lists of the best credit cards, as well as the best deals on mortgages, home equity loans, and car loans in your area.
Be certain to phone at minimum of at least half a dozen lenders prior taking out a new loan. Two options you should always check out: credit unions and the bank where you keep your savings. On average, credit unions offer loan rates that are one to two or more interest points lower than those obtainable at banks and S&Ls . What's more, they have become increasingly flexible about their membership. and are readily available to more people.
Also, ask the loan department where you have your checking and savings accounts whether depositors get certain breaks on loans. You can occasionally get a quarter point discount on the interest rate by having your payments deducted automatically from your account each month.
2. Examine your credit report prior applying for a loan. All intelligent borrowers do this.
Credit reporting agencies store information on your debt payment history and the amount of credit you already have. They then market this report to lenders, merchants, and different credit issuers, who use it to target you as a prospective borrower and to determine whether to allow you additional credit.
3. Negotiate rates and fees. Even though lenders don't like to admit it, with a small arm twisting numerous lenders today will cut their credit card interest rates and fees, as well as drop fee's on all kinds of loans. You can count possible savings merely by asking for a more lucrative deal and, possible suggesting that you might need to move your account's elsewhere.
In 1994 a group of 28 money reporters and didn't identify themselves as such that used MasterCards, Visas, or Discover cards called their card's issuing institutions and asked for better terms. Result: Of the 88 banks called, some reporters owned more than one card and phoned more than one bank, 84 waived their annual fee, lowered their interest rate, or did both.
Here is an example of the difference that dialing for dollars can make, Signet Bank responded to one reporter's call by ditching the $18 fee on her MasterCard and lowering her 19 .8% interest rate to a rational 13 .9%. You can also save additional funds by asking lenders for lower interest rates and fees on car loans, home equity loans, and mortgages. Most banks maintain an authorized rate for each type of loan they create. But if you are an existing client or maintain a good credit rating, it's not hard to persuade the bank to lend to you at a decreased rate.
As an intelligent borrower, you have to try hard to get the lowest rate you possibly can.