Basis For the Cheapest Personal Loan Rate
High Risk Personal Loans Presents:
Basis For the Cheapest Personal Loan Rate
By Li Junjun
In the financial world, there are many factors that contribute to what we perceive is the cheapest personal loan rate. This perception differs from individual to individual, and even from lender to lender. Each situation may differ, and as such, the lender may have to apply a different set of criteria to each individual application. Unfortunately, in the financial world there is never one set of rules that will apply to every situation, so you have to look at each one on its own merit.
Secured or unsecured loan
One of the first factors the lender may need to determine is whether, based on the information he sees on the application, you qualify for a secured or unsecured loan. Of course, at this stage of the loan process, he is only making a guess because until he does the credit investigation and sees your credit score, he will not know if you qualify for the cheapest personal loan rate, or if you qualify for an unsecured loan.
This does not diminish the need for good credit by any means because without that, you would likely be subject to much more scrutiny. However, if you have recently begun establishing or re-establishing credit, that is going to have an effect on the credit score, and thus, may influence the lender?s decision in regard to how much credit he is willing to extend without security.
Other influential factors
The financial criteria that each lender uses vary from lender to lender, and even from lending officer to lending officer. This makes it difficult for the potential borrower to get a feel for what he can expect, but when a lender is ready to make the final decision, he has to use his instinct to make a final decision since most borrowers will not have excellent credit and five or more years with the same employer.
Article Source: http://EzineArticles.com/?expert=Li_Junjun
High Risk Personal Loan
Secured or unsecured loan
One of the first factors the lender may need to determine is whether, based on the information he sees on the application, you qualify for a secured or unsecured loan. Of course, at this stage of the loan process, he is only making a guess because until he does the credit investigation and sees your credit score, he will not know if you qualify for the cheapest personal loan rate, or if you qualify for an unsecured loan.
This does not diminish the need for good credit by any means because without that, you would likely be subject to much more scrutiny. However, if you have recently begun establishing or re-establishing credit, that is going to have an effect on the credit score, and thus, may influence the lender?s decision in regard to how much credit he is willing to extend without security.
Other influential factors
The financial criteria that each lender uses vary from lender to lender, and even from lending officer to lending officer. This makes it difficult for the potential borrower to get a feel for what he can expect, but when a lender is ready to make the final decision, he has to use his instinct to make a final decision since most borrowers will not have excellent credit and five or more years with the same employer.
Article Source: http://EzineArticles.com/?expert=Li_Junjun
High Risk Personal Loan
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