Financing Without Headaches

Wednesday, June 20, 2012

Financing Without Headaches

Most people are simply unable to pay cash for big ticket items likes homes, cars, and appliances.  Fortunately, there are number of companies that will finance your items without too many headaches.  It can sometimes be an arduous process to get the financing you need, but if you find the right company the process can be simplified.

Your Credit Rating

An excellent credit rating and credit score will help you to get the financing you need without any trouble at all.  Remember that lenders want to give you the money, but they also need to make sure that they will be repaid.  An excellent credit score is not that difficult to maintain, as long as you pay your bills on time each month.  If you are trying to get financing without having to go through a really long process, check your credit score first.  You may want to wait a little while and improve your credit score if it is not very high.  Lenders’ credit requirements vary, however, so a good lender may get you the money you want regardless of your credit history.


Finding a Lender


The best way to find a great lender is by doing your research.  Some lenders have shortened loan processes, others have long ones.  You can figure out which has what by comparing lenders online, or you can use a local lender if that makes you feel more comfortable.  The great thing about internet is that you can quickly find APRs and interest rates for comparison, which makes it much easier to find the lowest interest rate possible.  You may also want to discuss this information with your close friends and family members, as they may know lenders who will give you a great rate.

Avoid High Interest Rates


If you have excellent credit, you will likely be eligible for cash advances from credit card companies.  These usually come with a low interest term for a set amount of months.  You may even be able to get a zero percent interest rate for 12-24 months.  The rate would then change and increase, but you could save a lot of money if you can pay your debt down faster.

Pay Your Debt off Faster


The repayment plan that you subscribe to will be outlined for you once you get the financing you need.  The best way to pay it off faster is by paying extra principal each month.  If you double your actual payment, you can pay your loan off much faster.  You may also want to try setting aside your two extra pay checks that most people get each year to put towards debt payments.  You can also use your tax return to pay it down.  A solid operating procedure is to budget well and put all income that is not dedicated to your budget into debt payment each month.

Conclusion


Take your time to research lenders who will give you the money you need with a low interest rate.  Improve your credit score as much as possible by making all your payments on time.  Pay off your debts as quickly as possible, and you can get a great loan with very few headaches.


About the author:

David Nance writes for http://www.accountant.org/.

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