Loans are a form of financial help that allow you to make big ticket purchases
such as a home or a car; loans are also an excellent option to finance
an education or necessary home improvements and repairs. Before
applying for your first loan, knowing some basic information about the loans your bank can offer you
will help you through this process and help you prepare to get the best
rates available on your loan.
Your Credit Score Matters
Your credit score will be a significant determining factor in the interest
rates available to you when you apply for a loan. A lower interest rate
will save you considerable money, as the difference between just a few
percentage points of interest over several years can amount to thousands
of dollars in interest. When you have a good credit score, you’re
demonstrating to your lender that you are financially responsible and
organized, and are more likely to pay your loan back on time without skipping
payments or deadlines. Before applying for a loan,
check your credit reports and consider taking steps to improve your credit score prior to visiting
your bank to discuss your loan options.
Your Income Matters
While your credit score typically determines your loan’s interest
rate, your income plays a bigger part in the amount your bank is willing
to let you borrow. This is because your monthly income determines the
amount you can comfortably pay in loan installations each month, so you’ll
need to bring your employment and income information with you to your
credit union when applying for a loan. If you have more than one income
source, such as a second job or a spouse’s income, make sure to
bring this information with you as well.
At Westmark Credit Union, our loan department is here to help you with
personalized financial advice on
home loans, car loans, and more. You can find out more about our loans and other
financial services near Idaho when you click through our comprehensive
website, or by calling our credit union directly at (208) 523-1071.