There are many different types of financial services available. The first type of financial service is short term loans. The short term loans are usually called payday loans. This is generally for those that want to borrow a small amount immediately. The repayment is done over a few paychecks. This type of loan has the advantage of being available for people with poor credit. This will help build up their credit report, giving them the chance to apply for a long term loan later. The disadvantage of this loan is it usually has a higher interest rate and large penalty for a late fee.
Another type of loan is a long term loan. The long term loan is generally for a vehicle loan or a home loan. These types of loans can be given through a bank, credit union, or some best factoring companies. The payments are fixed and will never change, unless it is stated in the contract. Generally the interest rates on the long term loans are much lower than the short term loans. The key to obtaining a long term loan is to have your credit score in a decent range, no outstanding bills, and longevity at a job. The advantage of a long term loan is it will be able to help you build a stable home life for yourself and family. The disadvantage for the long term loan is if so many payments are late or not paid at all the financial institution reserves the right to take possession of the item that the loan purchased.
Bringing the right information when you meet the loan officer is important. Generally all loans require the same basic information. You will want to bring your personal photo identification and social security card. These two pieces of information will verify with the loan officer they are speaking to the right person. You will also want to bring your proof of income. Usually three months worth of pay stubs will be minimum to show longevity of your employment. Finally you will want to bring any unsecured debt bills with you. The unsecured debt usually includes credit cards. The lenders generally like to see the balance below half of what your credit limit is. Finally, you will want to bring detailed information of what the loan is for. If you are purchasing a home, you will want to bring in the information of the cost and any other information about the home. Usually a realtor can provide you with this information.