Why is a good credit history so important in the US?

Surely you have all heard about the fabulously low interest rates on loans in this country. Without a credit history (statistics of your payments on loans) there is nowhere. Special companies monitor the credit rating of residents, and transmit data to interested organizations. The rating is expressed in numbers from 300 to 850. Anything below 630 is a bad rating and it is problematic to get a loan or a credit card with it.

Why is a credit score important in the US?

For example, you You want an apartment or a house. You may be denied If your credit rating below a certain number, and you may also be asked for a deposit for the first and last month of rent. If you have a high rating, you could count on rental terms with only an advance payment for the first month of rent or no advance payment at all. Your credit score affects the amount of interest on your loans and the lower your score, the higher your interest. A good age for a credit line is considered to be the use of a credit product for at least 5 years.

The following loans are most popular in the USA:

1. Loan to buy a house (mortgage) – a loan with a fixed and floating lending rate. Fixed rate for a loan term of 15 to 30 years with a fixed monthly payment. With a floating rate, the bank has the right to raise the interest rate later according to the agreements. A floating rate is beneficial for those who plan to quickly pay off the loan or sell the purchased property after a while, pay off the loan and move to another state. Rates range from 3 to 5 percent per annum. It can be very beneficial to refinance an existing loan in order to reduce monthly payments. But refinancing is fraught with an increase in the term for which the loan is issued. Banks are very scrupulous about borrowers who want to get a mortgage and impose strict requirements.

2. Car loan – there are very good offers with low interest rates for a new car at a rate of 0.5% to 1% per annum. Standard interest rates depend on credit history and solvency. In the usual case, the percentage is likely to be up to 2.6%. For used cars, interest up to 4% for a period of 48, 60, or 72 months. Like a real estate loan, it is refinanced. Rates may change. After paying 30% of the loan, it is allowed to return the car and receive a new car instead on credit on individual terms, taking into account the amount already paid for the loan.

3. A student loan obtained from a bank is the last opportunity to get a loan for studying at a university. The best option is to take a student loan from the state or directly at the university for a specific program at a low interest rate. Term from 10 to 20 years. Paid after training and employment. During the loss of work, the loan is not paid. Rates in banks from 6% per annum.

4. Consumer credit – it is beneficial to take when debts are on credit cards, since the interest is lower. On credit cards, interest rates start from 25% per annum and the limit is usually set at the beginning from 500 to 1000 dollars. Keep in mind that banks charge a monthly fee for servicing the card. Most stores accept bank credit cards and also have their own unique cards with bonuses and discounts for people with high credit scores. The more often you use the card and the more take responsibility for paying off your debts, the larger the limit is set for you by the bank and your credit rating grows. The creditor’s debt on the card should not exceed 30% of the card limit, but it must be repaid on time so that the bank sees that the person is actively and responsibly using the card, and, therefore, he can be trusted. Given the fines and late fees, if you do not put money on a credit card on time, it is recommended to use it to pay for food and not open a large number of cards. The more you earn, the higher the limit on the credit card and the chances of getting a loan for a large amount increase.

5. Cleared credit card (credit account) – you open a credit account and put your own money into it. This must be done at the very beginning of your credit history, if you immigrated to the United States from another country for permanent residence, because in this case your credit rating begins to grow, which has a positive effect on your credit history. Do you use your

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They offer a wide variety of games and you can even earn money playing one of them. Best of all, many of the most reliable online casinos offer free credit.

You may have heard the term “free credit” in the gambling industry, but what exactly does it mean? Well, you can consider free credit as a kind of promotion or offer that online casinos provide.

Casinos or gambling establishments are known for this advertising of their games. They successfully promote their games by providing free odds or free spins to players. These are usually called “casino bonuses” or “promotions”.

Casino bonuses are given in the form of free money, points or credits. There are many types of casino bonuses, the most popular being the signup bonus. This type of bonus is sometimes called a welcome bonus. This type of bonus is given to players who join the casino and play for real money for a certain period of time.

Casino bonuses are extremely attractive to new players, especially because free credit or free trials allow them to try out games they haven’t played before without spending real money. Some bonuses don’t even require wagering before they can be withdrawn from your account. Some offers and bonuses are given to players to encourage them to play at online casinos, and many players enjoy the opportunity to play with minimal losses. The more types of free “money” you can use at one casino, the better.

A casino bonus is also a type of incentive offered to players. Casino credits or points are usually used by players for gambling or during the withdrawal process. It also helps the player stay engaged in the games.

Online casinos can also use these bonuses to direct new players to certain types of games they want to make more popular on the site. There are many different types of bonuses that can be offered depending on the casino’s preferences and what they want their players to play.

Where to get a bonus

Before we can continue, we need to find a casino that has this offer. Click the link to view the casino’s website for more information on their rules and regulations. As much as I’d like to, I can’t provide more information on this as different casino sites operate differently and as a result will have different bonuses. For example, the biggest bonuses are in the new casinos and to see for yourself, you can go to best new casinos.

If you are looking for a place to try your luck in online casino games at 96Ace Brasil. It’s hard to beat the appeal of claiming a casino bonus, especially when the process is so quick and easy. Our online casinos offer a wide selection of exciting and rewarding games.

You can find different types of bonuses to suit your needs and preferences: free spins, no deposit bonuses, match bonuses and more.

Today, most online casinos offer deposit-based bonuses, while others like to offer free credit only for certain games and not for all games on the site.

Bonuses are a type of prize that can be won by playing any game. Before you start playing, it’s always best to read the terms and conditions to make sure you understand how the bonus system works for that particular game.

Online casinos offer standard bonuses that can be seen on the website before playing. It is best to familiarize yourself with the conditions before withdrawing funds or fulfilling certain requirements. However, more often than not, playing with a casino bonus or free credit is very profitable and enjoyable.

Casino at Trusted Online Casino Brasil

Free credit is a reward that online casinos offer to their players to attract new customers. Players have the option to register with an online casino and after they make a deposit, the casino will offer them credits that they can use for free bets on various games or slot machines. There are many different terms for this type of free online casino credit, such as “bonus” or “free play”; however, they all mean the same thing: new players are given free credits.

The casino offers a “Beginner” package for people who have never gambled before, which includes a limited number of credits, no wagering requirements and a free sign-up bonus. This type of offer is designed to give people a taste of how our casino works without any risk or commitment.

As I mentioned before, players can get free spins or play for free without incurring huge losses. They can familiarize themselves with the games and then, when they are confident, only the best with real money. In the long run, it also increases their chances of winning. With a no deposit bonus, players can enjoy the games without depositing any money and keep their winnings – a great way to find out if our casino is right for you.

Conclusion

Gambling can be addictive, so be careful not to lose money too quickly. It’s important to know what you’re getting into and be responsible when gambling.

Although it is a common thing, online gambling in Brasil is a popular pastime around the world and has been around for centuries. I hope this article has convinced you of the possibilities that await you in online casinos.

Gambling can be a lot of fun because you never know what will happen. Gambling is competitive, which means there is always a chance to win big. You can gamble anywhere from your home to a casino in the Bahamas, so it’s easy to find time to gamble whenever you want.

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Banks have a history of providing small business loans, understand the general lending process, and know how to service small businesses. Bank loans also have a relatively quick turnaround. 

No matter which financial avenue you decide to pursue your business’ financing needs, it’s important to remember that getting approved for a loan or line of credit will not guarantee the loan will fund. The following nine factors should be considered before approaching a lender for a business loan.

Consider the Terms of Your Loan

The loan terms will determine how much money you can borrow, how long it takes to pay back, and what interest rate you’ll be charged on balance.

When considering terms, ensure that the length of payments works with your budget and cash flow projections. Also, be aware that some lenders may offer flexible repayment schedules or low introductory rates that increase over time as an incentive for taking out their loans. 

However, these options aren’t always beneficial. Ensure they’re right for your situation before choosing them over traditional fixed or variable rates that remain constant throughout the term of the loan agreement.

Review Your Credit Report and Score

Your credit report and score are two of the most important factors lenders will consider when making a loan decision. Your credit report is a history of your financial activity, including late payments, bankruptcies, and any other information that would negatively affect your ability to repay a loan. Your credit score is a numerical representation of your creditworthiness, with higher scores representing a lower risk to lenders.

If you don’t know your credit score, check it free through any major credit reporting agency. You should also review your credit report to ensure no errors could hurt your chances of getting approved for a loan.

Know How Much You Need to Borrow

One common mistake small business owners make is requesting more money than they need from lenders. This can hurt your chances of getting approved for a loan, increase the cost of borrowing and put your business in a difficult financial position if you cannot repay the balance.

When calculating how much you need to borrow, including the costs of any equipment or inventory you need to purchase and any renovations or repairs needed. You should also have a buffer of working capital to cover unexpected costs or slow periods.

Once you know how much money you need to borrow, shop around for the best loan options before approaching a lender. This will help you understand what terms and rates you can expect and give you leverage when negotiating with lenders.

Understand the Application Process

The application process for a small business loan will vary depending on the type of lender you’re working with. However, some common elements are typically included in most applications, such as personal financial statements, business tax returns, a list of collateral and a detailed business plan.

Some lenders may also require that you have a minimum amount of time in business or that your business meets certain revenue requirements. Be prepared to provide this information when applying for a loan, so the process goes as smoothly as possible.

You can save time by completing the application process online, but ensure you’re working with a reputable lender before submitting any personal or financial information.

Do Your Research and Shop Around for Lenders

There are different types of lenders you can work with when seeking a small business loan. Each has its strengths and weaknesses, so it’s important to research and find the one that best suits your needs.

Some common types of lenders include banks, credit unions, online lenders and peer-to-peer lenders. You can also get financing through the Small Business Administration or a business credit card.

Be sure to compare multiple lenders before choosing one, and don’t be afraid to negotiate for better terms. Remember that the goal is to get the best loan possible for your business, so don’t rush into a decision to get it over with.

Take the time to research and shop around for lenders, so you can get the best loan possible for your business.

Be Aware of Any Fees You Will Have To Pay

When taking out a loan, it’s important to be aware of any fees you’ll be required to pay. These can include origination fees, prepayment penalties and late payment fees.

The lender charges origination fees for processing your loan, typically a percentage of the total loan amount. Prepayment penalties are assessed if you pay off your loan early, while late payment fees are charged if you miss a scheduled loan payment.

These fees can add up, so factor them into your overall costs when taking out a loan. You can negotiate with lenders to waive these fees, but it’s not always possible.

Be aware of any fees you must pay when taking out a loan. So you can budget accordingly and avoid any unpleasant surprises down the road.

Keep Track of Your Repayments

Once approved for a loan, it’s important to stay on top of your repayments. Ensure you know when your payments are due and how much you need to pay each month.

It can be helpful to set up automatic payments so you don’t have to worry about forgetting to make a payment. You can also set up reminders in your calendar or use a budgeting app to help you stay on track.

If you’re struggling to make your loan payments, reach out to your lender as soon as possible. They may work with you to modify your loan terms or provide other assistance.

Keep track of your loan repayments to stay on top of your finances and avoid any missed payments.

The Bottom Line

Taking out a small business loan can be a helpful way to get the financing you need to grow your business. However, it’s important to research and understand the process before applying.

Be sure to shop around for lenders, compare terms and rates, and be aware of any fees you’ll have to pay. You should also make a budget and track your loan repayments to ensure you can afford the payments.

If you take the time to research and understand the process, you can get the right loan for your business and avoid any stressful surprises down the road.

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Such loans lead to complications and hardships for individuals later in life, especially when the individual does not know about the number of unnecessary expenses and overheads. Take note of the following:

Do Not Borrow More Than You Need

If you are planning to take a student loan, you must ensure you only borrow what you need. There are no two ways; borrowing too much can cost you money in the long run.

Students who have just completed their education and are looking for jobs tend to take out loans they cannot afford. The thing is that they need to realize that the interest rates on these loans are high, and they will have to pay them back even after they find jobs.

If you plan on taking out a student loan, ensure you only borrow what is necessary for your education needs. You can always get help from your parents or grandparents if you need more money for your education expenses.

Not Knowing Your Options

There are many options available for students to take out loans. You need to make sure that you know all of your options before you make a decision.

There are federal student loans and private student loans. Federal student loans have lower interest rates and offer repayment plans. On the other hand, private student loans have higher interest rates but do not offer repayment plans.

You need to make sure that you know all of your options before you take out a loan. You should also compare the interest rates and the repayment options before you make a decision.

Not Paying Attention To Interest Rates

Interest rates play an important role in student loans. You need to make sure that you pay attention to the interest rates before you take out a loan.

The thing is that most students do not even know what the interest rate on their loan is. They just sign the papers and take out the loan without knowing what they are getting into.

You need to ensure that you know the interest rate on your loan before you take it out. You should also try to get a fixed interest rate if possible.

Failing to Read the Fine Print

When you are taking out a loan, you must make sure that you read the fine print. You need to know many things about the loan before you sign the papers.

The first thing that you need to look for is the interest rate. You need to make sure that you know how much interest you will be paying on loan. The second thing that you need to look for is the repayment plan. You need to make sure that you know when you will repay the loan.

You also need to make sure that you know the terms and conditions of the loan before you sign the papers. The last thing you want is to default on your loan because you did not read the fine print.

Doing Other things with the Money

Once you have taken out a loan, you must use it for its intended purpose. Many students take out loans and then use the money for other things, such as gambling. While gambling on non Gamstop casino sites is not a bad idea, it is not advisable to use your loan money for it.

You must make sure you use the money for its intended purpose. You should also ensure that you do not use the money for other things unrelated to your education.

Not Having a Plan to Repay the Loan

One of the biggest mistakes students make is that they do not have the plan to repay the loan. They take out the loan and think they will repay it when they find a job. The thing is that it is not always easy to find a job after you graduate.

You must plan to repay the loan before you take it out. You should start looking for a job while you are still in school. This way, you can repay the loan as soon as you find a job.

Not Making Payments on Time

One of the worst things you can do is default on your loan. This will damage your credit score and make it difficult for you to get a loan in the future.

If you are having trouble making payments on your loan, you need to contact your lender as soon as possible. They might work out a repayment plan with you.

Not Doing Your Research

Taking out a student loan without research is tempting, but this can lead to some mistakes. 

For example, if you have a steady job lined up after graduation, consider an income-driven repayment plan that will reduce the amount of your monthly payments based on your income (and family size). If you don’t have a steady job lined up, it’s better to opt for a fixed payment plan that will give you more flexibility in budgeting and saving money each month.

Applying for Too Many Loans

When applying for student loans, there’s no need to apply for more than one at once — especially if your current credit score isn’t the best. If you try to apply for multiple loans at once, it could negatively impact your credit score and make it harder for you to obtain future funding. 

This is especially true if one lender declined your application because of poor credit history or insufficient income compared with other lenders who don’t require those things from applicants immediately.

Takeaway

When it comes to taking out a student loan, there are many things that you need to keep in mind. You need to ensure you do not borrow more than what you need. You also need to make sure that you know your options before making a decision. You should also make sure that you read the fine print.

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The main peculiarity of American savings institutions is specialization in the market of savings of the population, focused on mass service of the contingent of people with low and middle income level. The deposits of this category of depositors form the basis of the liabilities of the savings system. Savings is a special segment of the U.S. banking market, the boundaries of which are strictly defined by government regulation.

The development of savings institutions in the United States is closely linked to the use of their assets to provide loans for housing construction. The U.S. savings system functions as a specialized network of credit institutions, whose leading function is to provide a stable mass influx of financial resources to the housing market.

Strict limitations on savings institutions reduced their ability to compete with other financial market operators. And the advantages provided by the state to the savings system did not compensate for its financial losses. In the early 1980s the savings system found itself in a severe crisis that threatened its survival. Looking for ways to survive, savings institutions began to diversify as universal banks in order to enter new markets, including by merging with more stable, mobile and flexible structures, such as bank holding companies. Most savings banks are mutual banks by form. Their depositors are not outside creditors; they are part-owners of the bank.

U.S. savings institutions have independent and separate controls from the Board of Governors and the Federal Reserve Banks. But the DIDMCA expanded the lending authority of savings institutions (to make loans to businesses and consumers) and put savings and loan associations under the control of the reserve system. Savings institutions are now subject to reserve requirements so that they can borrow from the Federal Reserve.

In recent years there has been a trend toward a change in the nature of ownership relationships with the massive conversion of mutual associations to joint stock companies. Joint-stock SSAs have more opportunities to increase fund capital. In addition to attracting deposits, they can issue shares. SSAs seek to maximize the profitability of their operations and increase their market share through advertising. They assume higher rates on savings deposits. Their rate of growth in resources and operating income is more dynamic than that of mutual associations. In a deregulated environment, however, publicly traded SSAs tend to be riskier. They are subject to higher risks of credit losses. Therefore, there are more bankruptcies among them compared to mutual associations. At the same time, mutual SSAs have higher transaction costs due to the separation of the ownership function from the management function.

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An investment bank typically becomes involved when a startup prepares to launch its initial public offering (IPO) and when a company merges with a competitor. An investment bank also plays a brokerage or financial advisor role for large institutional clients, such as pension funds.

Global investment banks include JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse and Deutsche Bank.

Many of these investment banks also offer open-end banking services and have divisions that serve the investment needs of the wealthy.

How an investment bank works
An investment bank’s advisory department is paid a fee for advisory services. The trading department receives commissions based on its performance in the market. As noted, many investment banks also have retail banking divisions that make money by lending money to consumers and companies.

Professionals who work at investment banks can pursue careers as financial advisors, traders or salespeople. Careers at an investment bank are lucrative, but usually require many hours of work time and considerable stress.

An investment bank is an intermediary
Investment banks are best known for their work as intermediaries between a company and the financial markets. That is, they help corporations issue stock in an IPO or additional public offering. They also arrange debt financing for corporations by finding large investors for corporate bonds.

The investment bank’s advisory role begins with advising before underwriting and continues after the securities are distributed.

The investment bank is responsible for reviewing a company’s financial statements for accuracy and publishing a company prospectus that details the offering to investors before the securities become available for purchase.

Investment bank clients include corporations, pension funds, other financial institutions, governments and hedge funds.

Size is an advantage for investment banks. The more connections a bank has with the global financial community, the more likely it is to profit by attracting buyers and sellers, especially for unique deals and offers.

The operations of an investment bank can be roughly divided into three main functions:

Financial Advisor.
As a financial advisor to large institutional investors, an investment bank can provide strategic advice on various financial matters.

Investment banks perform this role by combining a deep understanding of their clients’, industry and global markets’ objectives with the strategic vision necessary to identify and assess short- and long-term opportunities and challenges.

Involvement in mergers and acquisitions
Participating in mergers and acquisitions is a key element of an investment bank’s work.

The investment bank estimates the value of a potential takeover and helps negotiate a fair price for it. The investment bank also helps in structuring and simplifying the takeover process so that the deal goes as smoothly as possible.

Conducting research and analysis on companies
Investment banks have research departments that review companies and write reports on their prospects, often with buy, hold or sell ratings. This research may not generate revenue directly, but it helps traders and the sales department.

The research department also provides investment advice to outside clients who can make a trade through the bank’s trading department, which will generate income for the bank.

Research supports the investment bank’s institutional knowledge of credit research, fixed income research, macroeconomic research and quantitative analysis, which are used internally and externally to advise clients.

Size is an asset in the investment banking business, where the largest investment banks rely on the world to find buyers and sellers.

The disadvantage of investment banks.
Investment banks advise outside clients in one branch and trade their accounts in another. Herein lies a potential conflict of interest.

To prevent this, investment banks must maintain what is known as a “Chinese wall” between branches. This figurative barrier is designed to prevent the exchange of information that would allow one side or the other to profit unfairly at the expense of their own clients.

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Out of all commercial banks, a few of the largest banks, whose resources are growing faster than the sum of the resources of other banks, have been singled out. In turn, a handful of giant banks have emerged from the largest commercial banks – Bank of America, First Nation City Bank of New York, Chase Manhattan Bank, Menifexchurer’s Hanover Trust Co. and Morgan Guarantee Trust KV. These banks either lead or play a major role in powerful financial-industrial groups. They are essentially bank holding companies formed by merging large banks.

At the end of 1994, there were 40.9 thousand commercial banks with total assets of 4,313 billion dollars, as well as 9.3 thousand full-time banks – members of the Federal Reserve and 24.5 thousand full-time banks not members of the Federal Reserve.

In the resources of U.S. commercial banks, equity accounts for a small part, up to 7.4 percent; deposits account for the lion’s share, with 44 percent being demand deposits and 56 percent term deposits.

The commercial banks’ active operations consisted overwhelmingly of loans (in 1995, loans accounted for 56% of total assets). Investments occupy a smaller place, and they consist largely of investments in government securities, mainly federal securities.

Note that the Banking Act of 1933 prohibited commercial banks from acquiring shares in industrial and commercial companies. However, this does not mean the elimination of the splicing of banks with industrial companies. A typical form of this splicing is the incorporation of major banks and industrial companies into the same financial-industrial groups. The close ties of large commercial banks with industry are carried out through long-term loans. Large commercial banks provide about 3/4 of all “commercial and industrial” loans; loans with a maturity of more than one year play an important role, some of them for long terms of up to 8-10 years and are a typical form of alliance between banks and industrial and commercial companies.

Fiduciary operations play an important role in the splicing of large American banks with industry and other companies. Commercial banks are deprived of the right to buy shares of industrial and commercial companies on their own account, but they have the right to manage the assets of those companies by proxy of their clients; the latter often entrust the banks with the right to vote at general meetings of shareholders. In fact, this is a peculiar form of circumventing the ban on commercial banks owning shares in companies.

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As you probably already know, interest rates have been at record lows in recent years, something the U.S. hasn’t had in maybe 20 years. But now they’re slowly going up. And as far as the home loan is concerned, there are fixed rates, that is, fixed rates; there are adjustable rates, floating rates.

The fixed rate is most often for a 30- or 15-year loan. A 30-year loan now has a 4.125% interest rate, and a couple of years ago it was 3 something, and that was the lowest interest rate ever. The fixed rate for a 15 year loan contract is now 3.375%, the floating rate is 3.125 to 3.25%. Let me explain a little bit about the difference between types of interest rates. So, a fixed rate. You sign a contract, take out a loan and for 30 or 15 years you pay a fixed amount, that is you won’t pay more under any circumstances. Floating rate. When you sign an agreement it says that you have to pay that particular interest rate for 10, 5, or 7 years; after that the bank has the right to raise the interest rate. The extent to which it can go up every year is stipulated in the contract. In fact these loans are advantageous to those who are planning to pay everything off within this fixed period, or are going to sell the house before the end of this period. The most common type of loan is taken by people who come from out of state, for example. They want to buy a house, work for a few years, then sell it and move somewhere else. In this case a floating rate is better than a fixed rate, because the interest rate is lower.

If you’re going to sell the house in three to five to seven years anyway, it doesn’t matter. But if you intend to live in it and won’t be able to pay off the loan within a certain period, then the interest rate on the loan will greatly increase; it will be unprofitable. If you’re looking at 15, 20, or 30 years, a floating-rate loan is much less profitable than a fixed-rate loan. Let’s talk a little bit about refinancing. A couple of years ago, and now, as long as interest rates are low, a lot of people refinanced the loan to reduce payments to the bank. And, by the way, we did that just a couple of months ago, too, by refinancing our loan.

As you may recall, I talked in one of the videos about how we bought our house. We had a relatively high interest rate at that time on the market price because we were taking out an additional loan from the city. And it just so happened that neither banks nor other lending institutions worked with that. We didn’t have to choose much, our interest rate on the loan was 4.75. Now we have refinanced and are paying 4.25. Our monthly payments are about $150 less. So, when it comes to refinancing, a little bit higher rate, fixed for 30 years is 4.25, for 15 years it’s 3.5, and for 15 years it’s 3.25 to 3.375. A little bit ahead of the curve, I will say that details about refinancing a loan will be in the next video. Sometimes refinancing is done when there are problems with funds and a person wants to reduce the payment on the loan. For example, if he has been paying off a home loan for 5 years and is paying $1,800 a month, then if he does refinance for 30 years, the remaining unpaid amount will be spread over 30 years ahead. That is, the person will pay off the loan for another 30 years, but the monthly payment amount will drop. For example, he would pay $1,600 or $1,500, depending on the amount owed and the interest rate. This is one of the reasons why people refinance.

So let’s move on to the car loans. They have a very low interest rate. I don’t know how much it used to be, but even now it’s pretty low. Very often there are deals, good deals.

If you buy a new car, very often there is a 1% credit or even less, 0.5%. This applies to certain models and brands, does not mean that you can take a loan on these terms for any car. Most often it is a Toyota Camry or Honda Accord, Honda Civic. If you want to buy another car that does not fall under these conditions, the interest rates will now be announced. I will say right away that they are not the same for everyone, it depends on your credit score, credit history, everything is individual. When you are offered a loan, they will take into account all aspects and choose the one which is right for you. What they are willing to give you.

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A bit of statistics.
There are three types of educational loans in the U.S.: private, parental, and federal. Private loans are taken by only 7% of students: such loans are taken out by banks at a solid interest rate, which can grow every year, and they are harder to get – you need a guarantor with a good income and a favorable credit history, who has American citizenship or a green card. Parental loans make up about 15 percent of student loans, while federal student loans make up 78 percent of all student loans.

Humanities and creative arts majors can pay back loans for up to 30 years.
It’s easier to
It is easier to get a federal loan and pay it off than a parent’s loan. The student’s parents will have to prove their ability to pay, and loan payments start as early as 2 months after the loan is disbursed – while the child is in university, at least the interest will have to be paid.

Federal student loans are available regardless of a student’s or family’s ability to pay, the government acts as a guarantor, and the first payments can be postponed until the student finishes college.

Parent loans are available for 10 years, and federal loans are available for 10 to 25 years.
In some cases the state pays the interest on the loan, and the loan can be repaid for up to 25 years.

It is more advantageous
Parent loans have an annual interest rate of 9 percent, while federal education loans have lower rates, up to 8.25 percent. Federal loans are divided into several types: the Perkins loan, the subsidized Stafford loan, and the unsubsidized Stafford loan. The second type is the most advantageous: the interest rate is only 3.4%, the state pays interest on the loan, and it can be paid back for up to 25 years. The state also assumes paying interest on the Perkins loan, but the interest rate is higher – 5%, and the repayment period is 10 years. If a student takes out a non-subsidized Stafford loan, interest is added to the amount owed. Federal loans need to begin repayment six to nine months after graduation.

What about return?
Despite a number of benefits and government support, it is not easy to pay back student loans: education is expensive, and salaries of yesterday’s graduates are not very high.

For example, a degree in film and film directing at Columbia University in New York costs $300,000, the average debt of graduates is $181,000, and most of them earn less than $30,000 a year.
Technical graduates pay back debts the fastest, but humanities and creative professionals can take up to 30 years to pay back their loans. Because of this, they have to put off buying a home and starting a family, forego health insurance, and suspend their retirement savings.

The total amount of student loan debt is now about $1.5 trillion, which is comparable to the overall size of the U.S. education market.

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Mistake #1 – Listening to and trusting the advice of well-meaning bank employees
You must remember that bank employees’ remuneration depends not on “usefulness of their advice”, but on the amount of money earned from the bank customers (services imposed on the loan, insurance, commissions, etc.).
Expecting a bank employee to give honest, helpful advice makes no sense.
Example – insurance for the borrower in case of disability and inability to pay the loan: the first lines of the contract says that in case of disability the debt of the borrower pays the insurance company. There are dozens (!) of situations in the “exceptions” section, when the insurance does not work (for example, in case of “oncology”). As a result, the borrower, having lost his health and paying the insurance, still have to pay the loan with interest. The bank employee will be silent about this, because about 50% of the money paid for the insurance will go to the bank (the rest to the insurance company), and some of it will go to his premium.

Mistake #2 – the borrower doesn’t consider several loan offers, but takes the first one he sees
Statistics show that if you are going to take a car loan or mortgage, 2/3 of would-be borrowers consider different options (this is the right approach), and if a cash loan or a consumer loan, it seems that people thoughtlessly grab what is given. And for nothing. The main mistake a would-be borrower makes:

The borrower thinks he or she won’t become a debtor; he or she has everything “covered.”

But, as I wrote in the beginning of this article, ALL debtors, while still only borrowers, do not plan to become debtors. So when choosing a loan, always pay attention to the terms of delinquency: what are the fees? Penalties? Read online reviews of how this or that creditor collects debts.

Are you a reasonable person?
All the stories and smiles of a bank employee are not worth a penny, this is a way to lure you into taking the loan. Clearly remember 4 points:

1. If one bank is willing to give you a loan, then other banks will be happy to give you a loan, but you must compare their conditions.
2. When choosing a loan, read the reviews of the lender, and then you will know what kind of a person you are dealing with.
   Do not be shy to “exploit” the bankers – let them print out the agreement (tell them you are ready to sign it only after reading it) and then refuse to sign it if you are not satisfied with the two figures which will be hidden from you until the last moment:

The “total cost of credit” (circled in a box at the very top of the first page of the contract). If it is much higher than the rate you were told before, you are cheated;
A payment schedule (can you “afford” the overpayment and monthly payment?).

4. Do not agree to the imposed services, refuse them clearly.
   When applying for a loan it is a good idea to use your phone as a recorder (in a bank office), and when applying for an online loan it is worth making copies of the screen with the selected services.

Remember:

You don’t just want a loan, you want a loan you can pay back.

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