Loan master in 5 minutes

26 October 2010

** Welcome to 5 minute Monday here at credit Karma Bootcamp: Plan. * health * 31 days credit

** Special guest post by Michael, editor-in-Chief of doughroller.net, that helps consumers find the best online banking available today. **

With interest rates of mortgage loan interest rates low and other times also to record lows, now is the best time to look for a line of credit, if you need it. But even with low interest rates, there are actions to run before and after you get the loan that ensure that the interest rate and your credit score is the best they can possibly be.

Pre-Loan enhancements

Before taking a loan, you should first do everything they can to improve the current credit score. You would be surprised what can be done in a few minutes to sit down and strategizing.

First, you must have a copy of your credit report.This can be done by visiting annualcreditreport.com or a variety of free trial offers, from online credit monitoring services.After getting your credit report, locate all accounts that have negative information. This includes any late payments, collections or a credit report extremely high debt. (For example, if you have a credit card with a limit of $ 1000 and your current balance is $ 990). Gather contact information for Auditors and call them to request that the negative information to remove.Depending on how many years during the late payments, you'd be surprised at how can be the forgive some creditors.Not everyone will force but also one will improve your credit score. Last but not least, if your credit score is not in the category outstanding (750 +), pay down as much of that debt as high as you can. one of the factors that hurt your credit score is a credit report high debt and a couple of quick payments to reduce the debt immediately should improve your credit rating.Can only be a few points, but that can be the difference between thousands of dollars in interest payments.

Post-Loan enhancements

Taking the above measures must ensure that you have done everything possible not only get the credit you need, but get a low rate of interest in the process.But this is only half the battle. now the task is to ensure that this loan not only helps monetary needs, but also improves your credit score good for the future.

Always pay more than the minimum – minimum payments are great for a positive credit history, but making it just the minimum payment will do two things: first, it will reduce your debt faster, improving your credit score and, secondly, to drastically reduce the amount of interest you pay over the life of the loan.Avoid consolidation – if you can satisfy your payments every month, avoid consolidating this loan in another. consolidation loans can be effective in reducing the interest rate, but when you close an account positive, open-minded, will pass your credit score. Consolidation should be used only if you are able to meet your obligations monthly and I fear that they will be effected payments on time.Subscribe for automatic payments – some loans offer interest payment reductions up to 0.50% if you sign up for automated online payments. remember to ask your lender if you will reduce the interest rate for signing.

CK Bootcamp Council: each of the steps above do not take more than a few minutes to complete and the results could end up saving a lot of money. remember, your credit score is extremely complex and each decision that you make could not affect it. credit application should be executed only if absolutely necessary and even then, handle with extreme care.

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Credit Karma Bootcamp: 31 days credit Health Plan

In October, credit Karma Bootcamp you daily information on what you need to take wise decisions, credit-expert when it comes to credit cards, mortgages, insurance, loans and credit, especially, of all things.

Follow to get financially fit and healthy credit.

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