In the United States, many people use a variety of credit cards and various types of loans. The more active and responsible person makes use of loans, the more loyal it belongs to the banks. In order to get a profitable loan for an impressive amount (from 10,000 dollars), an ordinary person and especially an immigrant need to go a long way. Official employment and a good credit history are a mandatory requirement for the bank to consider the possibility of entering into a loan agreement for a sum of 10,000 dollars and above.
Why is such a significant qualitative credit history in the United States?
Surely you’ve all heard about fabulously small interest rates on loans in this country. Without a credit history (statistics of your payments on loans) there is nowhere. Special companies monitor the residents’ credit rating, and transfer data to interested organizations. The rating is expressed in numbers from 300 to 850. Anything below 630 is a bad rating and it is difficult to get a loan or a credit card.
The following loans are most popular in the US:
1. Home Loan (Mortgage) fixed-rate and floating rate loan. Fixed rate for a loan period of 15 to 30 years with a fixed monthly payment amount. With a floating rate, the bank has the right to raise interest rates later, according to arrangements. A floating rate is beneficial for those who plan to pay a loan quickly or, after a while, sell the purchased property, repay the loan and move to another state. Rates vary from 3 to 5 percent per annum. It is very profitable to refinance a current loan in order to reduce monthly payments. But refinancing is fraught with an increase in the term for which a loan is issued. Banks with great scrupulous nature relate to borrowers who want to issue a mortgage and impose strict requirements.
2. Car loan there are very good offers with no high interest rates on 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%. Used cars interest up to 4% for a period of 48, 60, or 72 months. Like a real estate loan, he is refinanced. Rates may vary. Upon payment of 30% of the loan, a car can be returned and a new car is issued instead of a new loan on an individual basis, taking into account the amount already paid for the loan.
3. Training loan received by the bank the last opportunity to get a loan to study at a university. The best option is to take a student loan from the state or directly at a university for a specific program at a low percentage. The term is from 10 to 20 years. Paid after training and employment. During the loss of work, the loan is not paid. Bets in banks from 6% per annum.
4. Consumer Loans It is profitable to take when debts on credit cards, as the percentage is lower. On credit cards interest rates from 25% per annum and the limit is usually set at the beginning of 500 to 1000 dollars. It must be taken into account that banks take 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 ratings. The more often you use a card and the more responsible you are to repay your debts, the bigger the limit is set by the bank and your credit rating is growing. The debtor’s credit on the card should not exceed 30% of the card limit, but it must be paid off in time so that the bank would see that the person is actively and responsibly using the card, and, consequently, he can be trusted. Taking into account fines and late payment, in case you did not put money in time on a credit card, it is recommended to use it to pay for food and not open a large number of cards. The more you earn, the more credit card you have and your chances of making a bigger loan increase.
5. Punched Credit Card (Credit Account) you open a credit account and place your own money on it. This should be done at the very beginning of your credit history if you have immigrated to the United States from another country to a permanent place of residence, since in such a case you will start to increase the credit rating, which has a positive effect on the credit history. You use your own money from a credit account (your bank does not trust your money yet) take away, return on time and thus increase your credit rating. After a certain period of time, the bank will make a proposal on the issue of a credit card for the amount of your deposit and will refund your money to you if you identify yourself as a responsible person paying for your debts on time.
US loans for opening their business are less popular (from 5 to 15% per annum). The bank may refuse to enter businessmen from other countries to open a business, as people are new and trust in them is not enough, there is no credit history. Private individuals who are able to finance someone’s future business under certain conditions are actively engaged in lending to the opening of a business.
You approach the design of a US mortgage loan and will not pay huge interest on which the banking system earns. this country.