Personal loans can serve a variety of needs for people with various financial goals. Many avails a personal loan to consolidate debt or to pay for personal purchases. Interest rates on credit cards are higher than that of personal loans, thus many Americans avail personal loans to pay off credit card debt. The higher your credit score, the lower your interest rate on the personal loan.
Those availing personal loans for other needs like home improvement etc., do not have a big impact on the credit rating. If you are using a personal loan to pay off credit card debt, your credit improves; as a personal loan converts revolving debt into installment debt. This will lower your credit utilization i.e. the percentage of available credit you are using.
An easy personal loan will:
Have low-interest rates and competitive offers
Be a discounted interest rate in most cases, if the lending institution is the bank in which you have an account
Have predictable monthly payments
Have interest rates that are better than credit card rates
Offer solution to a variety of personal financial needs
Have a simple application process
Not require a collateral as it is an unsecured loan
Increase your credit score if it is used to consolidate credit card debt
Things to look out for:
Additional processing fee charged by some lenders
Do not go blindly by the advertisements, as rates may vary based on individual financial history and other factors
Those with a poor credit score will have difficulty in procuring personal loan from a traditional lender
Many online lenders offer a variety of easy personal loans. Many offer loans with flexible and convenient repayment options. Non-payment of dues will have negative implication not only on your credit score but also increase your interest rates. It is recommended that, to avoid any action, notify the lender as soon as a repayment problem crops up. Repeated non-payment may also lead to legal action taken by the lender.
Some lenders pressurize the borrowers to renew the loans, as a borrower one must be aware of the terms and conditions, especially for hidden clauses before signing the loan agreement.
Everyone needs a little help now and then. A personal loan will help make your plans a reality by meeting your financial needs. As a borrower, you just have to keep the pros and cons in mind and then make an informed decision. Fixed rates, set payments and a scheduled pay off are the primary options an easy personal loan must offer.
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.