There are many different types of loans. So many, in fact, you may actually be overwhelmed. First, it is important to understand what financial institutions like Liberty Savings looks for and requires when lending. Understanding your options ensures you have the best, and smartest, choices when it comes to financing.
Lending considerations and requirements
To understand your financial situation, financial institutions use a debt-to-income ratio to determine how much is financially responsible to lend you. It is important to make sure your debts do not exceed your income. Another item typically taken into consideration when lending is your credit score. Your credit score is what is used to determine many things such as your loan rate, the amount to lend and credit card terms.
Although loan requirements vary by institution, typical requirements may also include current employment, having a Social Security number or Individual Taxpayer Identification Number (ITIN), and for credit unions, a membership at the credit union. Depending on they type of loan you’re looking for, you will often be asked for property as collateral, references for large loans like mortgages, and tax returns.
If you’re concerned about your credit management or loan requirements, ask us at Liberty Savings for guidance or a referral. Our loan specialists are here to answer any questions, or point you in the right direction for additional help.
Types of Loans
Let’s start with traditional loan types. These types include things like home mortgages, auto and recreational loans, and personal loans. Share secured loans, where the credit union makes a loan to you based on what you have in your savings account, and credit cards are also traditional loans.
Another type of loans is the type that helps to build your credit. Some credit unions have credit building loan programs. Loan types like share secure loan can also help to build credit. Overall, paying your loan payments and other bills will help you keep up your credit score, but if you need help building your credit or bringing your point up, we have free financial resources to assist our members.
There are also loans for specific events or expenses. For example, if you need additional funds to cover expenses during the holidays, Liberty Savings often has options to help. To learn more about the loans offered at Liberty Savings, take a look at our loan page by clicking here. Or feel free to call or stop by any branch to learn more as well. We also have financial information available to learn more about how financing can effect your credit score.