Home loan (Mortgage) – a loan with a fixed and floating interest rate. Fixed rate for a loan term of 15 to 30 years with a fixed monthly payment. With a floating rate, the bank has the right to raise the interest rate later according to the agreement. The floating rate is beneficial for those who plan to quickly repay the loan or after a while sell the purchased property, repay the loan and move to another state. The rates range from 3% to 5% per annum. It can be very profitable to refinance an existing loan in order to reduce monthly payments. But refinancing is fraught with an increase in the term for which the loan is issued. Banks are very scrupulous about borrowers who want to get a mortgage and have strict requirements.
Car loan. It provides very good offers with low interest rates on a new car at a rate of 0.5% to 1% per annum. Standard interest rates depend on credit history and solvency. In a normal case, the rate is likely to be up to 2.6%. For used cars, interest is up to 4% for a period of 48, 60, or 72 months. Like a real estate loan, it is refinanced. Rates are subject to change. After payment of 30% of the loan, it is allowed to return the car and receive a new car instead of it on credit on individual terms, taking into account the amount already paid for the loan.
A student loan obtained from a bank is the last opportunity to receive a loan for university studies. The best option is to take a loan from the state or directly at the university for a specific program at a low interest rate. The term is from 10 to 20 years paid after training and employment. At the time of loss of work, the loan is not paid. Bank rates from 6% per annum.
Personal loan. It is profitable to take when the debts are on credit cards, since the interest is lower. On credit cards, interest rates are from 25% per annum and the limit is usually set at the beginning from $500 to $1,000. Keep in mind that banks charge a monthly fee for servicing the card. Most stores accept bank credit cards and also have their own unique cards with bonuses and discounts for people with high credit ratings. The more often you use your card and the more responsible you are to paying off your debts, the more the bank sets the limit for you and your credit rating grows. The lender’s debt on the card should not exceed 30% of the card limit, but it must be repaid on time so that the bank can see that the person is actively and responsibly using the card, and, therefore, he can be trusted. Considering fines and late fees, if you did not put money on a credit card on time, it is recommended to use it to pay for food and not open a large number of cards. The more you earn, the more there will be a limit on the credit card and the chances of getting a loan for a large amount increase.
Credit Account. You open a credit account and deposit your own money into it. This must be done at the very beginning of your credit history if you immigrated to the United States from another country for permanent residence, because in this case your credit rating begins to grow, which has a positive effect on your credit history. You use your own money from a credit account (the bank will not entrust your money to you yet) – you withdraw, return on time and thereby increase your credit rating. After a certain time, the bank will independently make you an offer to issue a credit card for the amount of your deposit and will return your money to you if you establish yourself as a responsible person who pays your debts on time.
Loans for starting a business are less popular in the USA (from 5 to 15% per annum). The bank may refuse businessmen from other countries a loan to open a business, since people are new and there is little trust in them, there is no credit history. Individuals are also actively involved in lending for starting a business, who can finance someone’s future business on certain terms.
Take out a loan in the United States wisely and you will not pay huge interest on which the banking system of this country earns.