Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Improve Your Credit Worthiness by Timely Repayment of Auto Loans

12. October 2011 Administrator (0)

Credit rating is a statement showing the loans which had once been taken and their payment, as in, when they were paid. A good credit history shows the timely payment of all such loans. A credit rating statement showing bankruptcy and all late payments are considered to be a bad credit rating, forcing a dip in credit worthiness.

The first and foremost thing which is to be considered before you take a loan to buy a vehicle is your credit report. There are five things which are considered by your lenders to determine your credit worthiness. These are Payment history, outstanding debt, length of credit history, new credit applications and types of credit.

It is believed that timely or fast repayment of auto loans helps improve credit worthiness of a borrower. For anyone who wants to boost his credit history, timely payment of loan is the perfect option. Timely payment of auto loans not only helps to maintain a wonderful credit but also gives an impression that you are a person who has a track record of making timely payments across the board for all the debts.

Also when calculating your credit worthiness, the banks looks for the type of loans you had taken. A person who takes varied loans and repays them timely will have a good credit. This is because they believe that a person who can repay different types of loans has the capability and will to pay all his bills too.

If you already have taken an auto loan, you cannot go for another one if your income can not sustain it. Lending companies do give high weightage to a good credit score while approving an Auto loan. It is important that you keep your credit rating high so that you later have an ease in taking a loan against your car purchase.

If you are still paying for your car loan and the car is in a poor condition then it is suggested to sell off that car and get rid of the loan before you buy a new one.

For future perspective it is very important to have a good credit rating and worthiness so that the lenders readily give you loans whenever you are in a need.
We are an established firm in Texas and provide loans. For further details visit us at Greater Central Texas Federal Credit Union, 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

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GCTFCU Blog | Applying For A Home Loan? Questions Your Lender May Ask
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Applying For A Home Loan? Questions Your Lender May Ask

17. November 2016 Administrator Home Loans (0)
Getting a home loan is expected to be an extensive process as the lender may ask some important questions from the borrower. This may be done to clear any doubts regarding your financial stability. You need to be prepared with all the paperwork and documents at the origination of the loan-approval process. Following is a list of questions a lender may ask before approving your home loan:

Q: How much do you earn?
The lender may ask for the recent pay stubs in order to secure a fairer idea of your monthly income. The debt-to-income ratio has to be conducive for you to secure the desired amount of loan at a reasonable rate of interest. Having a stable job with a steady income reduces a number of hassles for you. In case you own a business or have recently changed your job you may need to produce your tax returns. Asking for your income tax returns can imply two important causes. One, the lender wishes to look at your annual revenue. In case you have provided with a record of past few years, the lender will get a fair idea if your revenue has increased or remained constant over the years. This is good because it increases your credit worthiness.

Q: What is your source of income?
The lender would want to be sure about your job stability. Providing details about your employer can help the lender get a better idea about your income consistency. If you are self-employed, it is necessary to make sure your business is profitable. The lender may ask for at least two years of income records. In case you are planning to pay the loan from your savings or you will be using a grant/gift from your relatives, you may be required to produce the gift letters as proof.

Q: Do you have any current debts?
This question is generally asked to get an idea about your financial liabilities and ensure that you will be able to repay the loan. Sometimes, the lender may ask you to produce documents which state that you have paid all of the previous debts. In case you have an active debt, the lender may want to make sure that your income allows you to take another loan.

Q: What is your marital status?
If you plan to pay your debt through the alimony, the lender will need assurance that you will receive the amount. Women receiving money from their ex-husbands may need to produce the papers that state their legal separation.

Q: What is your credit history?
The lending institution may want to know your credit history in order to make sure you pay your bills on time. This also gives the lender a fair idea of your creditworthiness and the way you manage your expenses. Having a high credit score increases your chances of securing loan at a lower rate of interest.

Q: How much savings do you have?
Many people plan to make the loan payments through their savings. Having sufficient savings in the bank is appealing for the lender because it shows your liquidity and ability to pay the mortgages smoothly. A savings account acts as an asset for a borrower and increases the chances of getting a loan approval.

Q: What is the limit of your down payment?
The down payment is a major factor determining the amount of the monthly installments. This in turn decides the duration of loan payments and the money you save. If you pay a higher down payment, lesser will be your loan tenure and monthly installments. An added benefit is that you may secure the loan at a lower rate.

If you are looking for affordable home or auto loan in Killeen, TX, consider Greater Central Texas Federal Credit Union. We offer a wide range of loan plans at low interest rates and easy repayment options. For more information, you can call us at (254) 690 – 2274.
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