If you are considering applying for any sort of credit, including a loan, credit card, mortgage, etc., you need to understand the type of credit you are considering and its possible risks. One important step to take before signing the dotted line is to review your financial situation to see if you can handle another monthly payment. Establishing a monthly budget is essential to determining how much credit you can truly afford. The American Financial Services Association (AFSA) has a great budget planning tool that can help you determine how much disposable income you have at the end of each month.
After you have established a monthly budget, your next step is to determine which factors may be affecting your perceived amount of risk to lenders, which can impact the interest rate you receive. AFSA created an informative educational packet that explains what these factors are and how you can improve your credit risk.
If you have any additional questions, contact your local Mariner Finance branch today to speak with one of our knowledgeable representatives. They will be more than willing to answer any questions you may have!