Without taking out loans, many of us would not be able to buy a home, a car or afford a higher education. The fact is, mortgages, auto loans and other types of loans can help us to advance and reach important goals in our lives.
The cost of a loan depends on the type of loan, the lender, the market environment and your credit history and income. Borrowers with the best credit profile usually get the best interest rates. Before you shop for a loan, find out your credit score and look at your credit report to make sure it’s accurate. You can get your credit report and credit score for free on Bankrate.
All loans are either secured or unsecured. A secured loan requires the borrower to put up an asset as collateral to secure the loan for the lender. An auto loan is an example of a secured