How Do You Choose the Best Loans and Credit Cards?
Will you be applying for a loan or shopping around for a credit card in 2016? Your BBB® recently read a Press Release from the Federal Deposit Insurance Corporation (FDIC) that outlines some of the tips they have available in their latest Consumer News newsletter on shopping for loans and credit cards.
According to the Press Release, there are three steps consumers can take before submitting an application to help them qualify for the best possible terms:
- Review your credit report for errors. Access your free credit report at annualcreditreport.com or 1-877-322-8228.
- Think twice before closing older credit card accounts or lines of credit. Lenders making credit decisions like to see an established history of credit use, and the length of your credit history is figured into your credit score.
- Make sure you pay your bills on time.
- Research the terms and conditions of different loans or credit cards.
- Be aware that when you apply for a loan or a credit card a record of that inquiry will show up on your credit report, and since too many inquires may hurt your credit score, it's best to only apply for loans and credit cards that will meet your needs.
Another bit of helpful information is an overview of the new disclosures for mortgage loans. The Consumer Financial Protection Bureau (CFPB) issued a new rule in October 2015 to help consumers better understand their mortgage loans. The FDIC explains the provisions of the new rule.