Thinking Of Co-Signing For A Loan? Read This FirstWritten by Roy Thomsitt
It is quite common for someone, who is having trouble getting credit, to approach a friend or relative to act as a guarantor or co-signatory for a loan. They've seen that new car they would dearly love, but have one problem. For one reason or another they are a credit risk, and cannot get a car loan on their own. It may seem simple when they say that all you have to do is sign. That's it! The trouble is, that is only beginning; at least, if things go wrong, signing for loan is not "all you have to do."
The Reality Of Co-Signing A Loan - What You Should Know
Before you finally co-sign that loan application, there are a few things you ought to know. In reality, it is not just a matter of signing loan application. You will be entering a serious loan transaction, in which you will have responsibilities, just as if you were applying for loan yourself. If your friend does not keep up repayments on that car, or other, loan, lender will seek best way to get money. Their first port of call? You!
If you are asked to co-sign a loan application, here are a few points for you to take into account. Stop and think about them. Ignoring them could lead you to lose a lot of money yourself, and possibly fall out with your friend.
1. Your Friend Is Probably A High Credit Risk
If someone is asking you to co-sign a loan, that means that lender is unwilling to take a risk on them on their own. This means that their past credit performance has been so bad that lender doesn’t believe your friend will pay back loan. Do you want to be fall guy; one who carries risk? You are not a professional lender, and your judgement may be impaired because this is a friend.
2. Impact On Your Credit Report
You have probably worked hard and responsibly to keep your credit report clean. Your friend would benefit from that if you co-sign loan, but did you know that if your friend becomes delinquent with his payments, it could affect your credit report? All your good work down drain because of your trying to help a friend.
Refinance Mortgage Loan – Tips On Refinancing Your Home MortgageWritten by Carrie Reeder
Refinancing your home mortgage can come with some great perks. If you do it with no money out of pocket, you can skip one to three mortgage payments. You can save money on your payment or pay off your entire mortgage faster when you have better terms. Here are a few things to pay attention to when you refinance your mortgage loan, to make sure that you don’t overlook anything that you might regret, or that can cause you problems later:
1. Apply for a pre-approval to many different lenders to make sure you are getting lowest rate possible. When you do this, make sure that with initial pre-approval application, lender is not pulling your credit history. You will want to reserve your credit pull for lender that you are most likely to work with. You can decide that after you have gone through preliminary pre-approval process with a few lenders. Each time your credit is pulled, it docks your credit score just a little. If you have too many inquiries, it could keep you from refinancing your mortgage loan with lowest rate possible. When you pre-apply for home mortgage loans online, most lenders or mortgage service companies will not initially pull your credit. Check for information about this on their website. They will usually tell you whether or not they are going to pull your credit. Also, if on application you do not give them your social security number, they cannot pull your credit. If, on application, they ask you to describe your credit, they are probably not pulling your credit.