General Information About Loan

Posted by nabeelshaukat on September 7th, 2010

General Information About Loan:

You should do some working before you select a lender or financial institution, and the type of loan required. There would be lots of institutions and other money lenders available in market (depends upon your region as situation could be vice versa) and all with slightly different terms and conditions for lending you money. Some of them may also show the easiest way to get an instant loan and pay back methods, but use your judgment as this can be a trap to make you a client once and impose un-disclosed terms later.

Remember, before you get into any legal contract for loan, make sure that the terms and conditions are crystal clear to you, and there is no open ended clause that can be turned against you later. Therefore, take proper time to read the contract papers with scrutiny and discuss all the terms you find onerous with your lender before you sign them. If later, you find that your money lender is trying to play bad tricks then do consult your lawyer immediately and seek legal advice before you get trapped.

If you ever fail to pay back your loan or installments on time then this can harm your repute and you can even go bankrupt. That is why; a person should make a proper diagram in mind that why he/she needs a particular type of loan and how it would be paid off. 

During the processing of your loan application, all the lenders get the copy of your credit report from you for verification. Then they verify your credit history from the CBR department of State Bank. The credit report contain the list of your all long term debt including mortgage payments, credit cards, student loans, auto loans etc. along with your payment history.

Many real estate agents suggest that it is fine to get your credit report some months before you apply for a loan. It will be helpful to resolve your credit problems (if any) before your bank verify it. You can access your credit report from your local credit bureau or any public firm that concentrates in credit reports.

There are some problems given below, which some people can face in their credit history:

Errors on Your Credit Report

Sometimes you may encounter inaccurate information or different errors in your credit report. If you see any error, immediately contact the reporting agency to solve the problem.

Late Payments

Some problems in credit report are related to late payments of a debt. If you have a late payment history, then you should file the reasons why. If you have slow payment history, then you should prove to the lender during loan application that you can repay loan in an appropriate manner.

Bankruptcies

Bankruptcy on your credit report is not a good sign for you. In most of the situations of bankruptcy the lender hesitates to lend a loan. But it does not mean you cannot obtain a loan. If you reestablish a good credit report then you have a chance of loan approval.