What are the Types of Bank Loans and How to Be Eligible for One?

If you are looking out to make a big purchase, and do not have enough savings to pay for it in full, loans from BC loans ensure that all your desires are fulfilled. This article lists out the types of loans available and what how do you qualify for one.

  1. Auto Loans

Auto loans are the most popular types of loan. It helps you to finance for your favourite vehicle you have been wondering to own for a very long time.

  1. Student loans

College costs seem to be rising over time and so does student debt. Banks help you in financing college costs if you are a private student. It is quite different from the federal student loans offered by the government.

  1. Personal Loans

Personal loans are those loans which are offered by banks for a myriad of uses, which includes consolidation of debt or to pay for a crucial yet an unexpected expenses like a medical need.

  1. Home Purchase Loans

Almost everyone applies for a home loan if they are looking to purchase one. It is quite an extreme case if the purchase is made directly by cash. Some bank loans to finance a home purchased maybe guaranteed by the government and require a little down-payment, such as FHA loans or VA loans.

  1. Refinance Loans

Refinance loans have been climbing the charts for a very long time because of its low-interest rates. Refinance loans are available for various term lengths like 30-year, 15-year, etc. They can also be fixed or adjustable rate loans.

How to Qualify for One?

  • Credit Status

Lenders will take a detailed look at your credit score and history. Banks usually look at your score, your record of late payments and if any of the parties have any judgments against you or outstanding collection accounts. If you have an excellent credit status, you will achieve the best interest rates that are available. And, you will also be able to pay off any collection accounts or judgments before your loan approval.

  • Income

No, banks do not look at your income, instead, they look at your debt-to-income ratio, the percentage of your gross income that you use to pay your housing costs and monthly credit card and other loan payments. These factors help in determining if you qualify for any loan or not.

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