The options for personal loans are aplenty, especially if you have a good credit score. Most people use personal loans to bridge financial shortfalls. Many also avail personal loans to payback credit card debts which usually carries a higher interest.
The clear benefits of personal loans is, it does not require you to provide a collateral and the interest rates are competitive. At the same time, caution needs to be practiced when choosing the loan suitable to you; as being an unsecured loan, it’s more risky for the lender and thus you might not get the best rate. Depending on how good your credit score is, options are aplenty for lenders offering personal loans.
While looking to narrow down a personal loan, look for the institution that offers competitive interest rates, wide availability of its network and transparency of process. The downsides to be aware are the high threshold you’ll have to meet to qualify (if your credit score is not great), providing a stable and sufficient income, solid savings history.
The reasons for availing a personal loan are many. It could be to consolidate debt, to pay for major personal expenses, home renovations etc. It is best to always keep in mind the exact amount of money you need while applying for a loan and its fixed monthly payment. If you choose to opt for a personal loan to consolidate your existing debt, so that you’ll have only a single payment each month, be aware that doing so may not reduce your debt or pay off your debt sooner. In some cases, the lower interest rate offered or the longer duration of the loan might appear as payment reduction. The hidden truth in most of these cases is, by extending your loan term, you may end up paying more interest on the loan.
Credit unions, unlike banks and other major financial institutions, offer the most affordable rates for personal loans, they might also offer loans to those with less than great credit scores.
Things needed to apply for a personal loan:
If you have a long standing relationship with your Bank, ask them for their lending rates. You might end up getting a good rate. Also, it’s worth spending time online and looking at options as online lenders are offering competitive rates especially for those with below average credit scores.
By considering all the above factors, you would be better placed to to decide if indeed personal loan is right for you.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.