credit along with any important information you should remember when
considering these products. This is far from a dictionary of loan types and if you
are considering any of the following I would recommend doing some more
research before applying anywhere. Don’t let somebody pull your credit and
lower your credit score unless you have a pretty good idea that they may be able
to help you.
Credit Card: Credit cards should only be used to either help you to establish
and repair your credit or used as a means to not have to carry a lot of cash with
you at all times. Once you have established good credit you can take advantage of
some of the rewards programs most credit card companies offer. Personal Loan: Personal loans are really not a good idea to consider unless
you have no source of immediate credit and you need extra money immediately.
The interest rates are usually very high for a personal loan.
Payday Loan: A lot of people have got themselves into trouble with these.
You have to remember that they should only be used as a last resort.
Mortgage Loan: One of the most important aspects of a traditional mortgage
loan is that you can have your taxes and home owner’s insurance paid through an
escrow account which you contribute to every month. This takes a big financial
burden off of any homeowner’s back.
Auto Loan: Auto loans have some of the lowest interest rates available. If
you can’t hold onto the same vehicle for more than a few years make sure there
is no pre-payment penalty for paying it off early.
Student Loan: Unless your parents planned very well ahead of time you are
more than likely going to have to take out one of these in your lifetime. Just make
sure the career path you decide to study for can pay for your education with
plenty of money to spare so your hard work will pay off.
Equity Loan/LOC: Any homeowner who can write this interest off for their taxes
should never use another form of credit again. Most banks will let you open one for free and since your home is being used as collateral, the interest rate is low!