Couple buying first home

Consider This When Planning to Purchase Your First Home

Now is the time to start executing those plans you have for the future. The Christmas Holidays are over and all the gifts are bought for everyone else. Now is the time to invest in yourself.

One way to invest in your future is to buy a home for your family. Many families are looking to buy their first home this year. This trend is due to the savings incurred from owning a home over renting. According to Trulia, “Homeownership remains cheaper than renting in all 100 largest U.S. metro areas. In fact, buying is 35% cheaper than renting now, compared with 33% cheaper one year ago.”

The article goes on to say, “Homeownership remains cheaper than renting in all 100 largest U.S. metro areas. In fact, buying is 35% cheaper than renting now, compared with 33% cheaper one year ago. Paradoxically, home price growth nationally has outpaced rents over the past year. So what gives? Two things. First, the 30-year fixed-rate mortgage rate has fallen from 4.5% in 2014 to 3.87% today (as of April 15). Second, the 3.9% home price gain wasn’t much larger than the 3.7% gain in rents. In the past year, these two trends have made homeownership even more affordable compared with renting.

Trulia’s Rent vs. Buy Report assumes a traditional 30-year fixed rate mortgage with a 20% down payment. But for those looking to buy a home, apartment, or condo with homeowner association (HOA) fees, the extra cost could make renting a more attractive option.”

However, all of that good Holiday cheer and gift buying may have caused a hit on your credit. You may also have less ready cash for those things you would need before moving into you new home.

When buying a home, the interest rate can be greatly impacted by, both, your down payment and your credit rating (FICO Score). AdvantageUSA credit program helps you to get the things you need for your future home and will help you establish personal credit worthiness for your first new home purchase.

The AddvantageUSA credit program or store credit account helps your credit rating the same way that any major credit card or department store account helps you. Think for a second or two about how that works.

  • You want/need to buy something
  • You don’t want to/can’t afford to pay cash
  • The credit program lends you money
  • You buy now and make monthly payments
  • Your credit becomes established

As our Post How does an AddvantageUSA online account help my credit? states, “Don’t blow it. We report the good and the bad. If you use your credit wisely, and if you make your payments on time the way you are supposed to do it, then you will have the chance to create new payment history on your credit reports. Good payment history will definitely improve your credit reputation. That reputation is measured by your credit score. The higher it is, the better your reputation. On the other hand, late payments, defaults, or payments in amounts smaller than the amount due will create negative credit history and bring down your credit score.”

Contact AddvantageUSA for more information and assistance or call us at 888.601.5527

Girl considering getting a loan

Being Prepared to Apply for a Personal Loan at a Bank

It is the Holiday season and many of us will once again watch the movie “Its a Wonderful Life” for the umpteenth time. We seem to never get tired of watching the life challenges that the James Stewart character goes through.

As the years have gone by, however, it has become more obvious how much the banking methods have changed in this country. Back in those days, a middle class person with good character could get a loan from any local bank. That was what we thought banks were meant for.

Today, it is really difficult to get a personal loan. Many large and regional banks have discontinued them. The financial institutions that are still offering personal loans require a top-rated credit history. They are quick to deny an application if all of their strict criteria is not completely met. Oh, and that good character thing – well that doesn’t matter anymore.

However, the need for a little cash to get over a slow period has not gone away. So, what do we do these days to give ourselves the best chance possible.

First, be prepared. When you do decide to apply for personal loan through a major financial institution, you do not want to be denied. In the Forbes article 5 Tips For Getting Your Bank Loan Approved, it states “It can be dangerous to your credit to continually apply for just any loan you think you may be able to get. Too many loan applications can ruin your credit and obliterate your chances of securing one in the near future.”

A key to not getting denied for a personal loan is to improve your credit history. One way to raise your credit rating is to acquire a secured credit card. Another way is to buy products on a payment plan that is easily within your ability to repay in a timely basis. For instance AddvantageUSA provides products that can be purchased online for a reasonable monthly payment. They then report your successful payment record to the major credit agencies. This is very effective.

These are a couple of ways to improve your credit rating in preparation of requesting a needed personal loan. Have you used other techniques? Share them with us.