Now that you know exactly how much your loan will cost after factoring in the amount you will pay including your loan’s annual percentage rate, do you feel prepared to repay that amount? No matter the type of loan whether it’s a student loan, mortgage, auto loan or personal loan, you will need to figure out if you will be able to repay it and if the cost is worth it to you. Loans for the purchase of an education and home are generally “good debts” to acquire compared to credit card debt from dinners and impulse buys.
Next, you need to think about whether you will qualify for the loan. Remember that your credit worthiness will determine that. Download ACCC’s Understanding Credit Reports guide to learn how your credit worthiness is determined and calculated based your credit history and credit score. For more specific information about how to improve your credit score to apply for a mortgage, check out this helpful Talking Cents blog post.