• Wells Fargo Bad Credit Loans | Wells Fargo Bad Credit Mortgage Loan

    by  • 14 June, 2012 • Personal Finance • 0 Comments

    Wells Fargo Bad Credit Auto Loans, Wells Fargo Bad Credit Student Loans And Wells Fargo Bad Credit Mortgage Loans. How To Apply and get Wells Fargo Loans.

    Have a plan to buy your own car, but don’t have the money?  Wish to live in your own house, but cannot build the resources?  Want to complete your education, but don’t have the funds?  With the financial services of Bad credit loans available at Wells Fargo anyone with a bad credit can avail these loans.

    Bad credit loans offer variable interest rate which may suit your financial needs from time to time. Anyone earning a minimum of $1,500 can apply for this loan, a candidate with income below this amount will not be allowed, and his loan won’t be passed.  You can check your annual credit financial standing which will be displayed on the annual credit report website. Once you establish the amount you have to pay an interest, considering your income bracket and you’re all good to go.

    Let us have a look at how bad credit loans function across different sectors and can be considered by aspiring applicants.

    Wells Fargo Bad Credit Auto Loans

    While applying for this loan 3 things need to be considered very cautiously

    Rate of interest:

    The interest offered for a mediocre credit standing having no collateral background have been as high as 50%-60% in the past. But these interest rates now days vary according to the credit standing and can be checked with your lender. These loans required a certain amount of down payment to be paid, thus the higher the down payment you pay lower is the rate of interest you will be offered on the outstanding amount.

    Down payment:

    Financial Advisors suggest the down payment to be anywhere around 15-20% of your total amount. Thus the interest on the rest of the amount will work out to be comparatively less, reducing the burden of your monthly payments.

    Monthly Payment: Timely monthly payments have to be made, failure to which a penalty will be charged unnecessarily, burning a hole in your pocket.

    Wells Fargo Bad Credit Student Loans

    Your bad credit can sometimes be a hindrance to pursuing your education which is quite the case with many young students. Therefore they can get this loan keeping the following points in mind.

    Unsecured loan: An unsecured loan is without any collateral per say which will put you in the category of the bad credit candidate. This will impact the interest rate which you will be given and you will most likely fall in the high interest rate margin. The relation between an unsecured loan and the interest rate offered is inversely proportional.

    Secured loan: Thus ensuring secured collateral is always an option which is beneficial and helps you get a competitive interest rate. Therefore it is always advisable to apply for a secured loan.

    Consigner: In the case of student loans the “repayment ability” is a bit low as the applicant is still pursuing his education and has a no fixed source of income. In this scenario a consigner is appointed who will take the responsibility of any default of payment by the borrower. The student can withdraw the cosigner agreement after 24 months of monthly payment is done.

    Bad credit student loans may have fixed or variable interests depending on the credit standing, but on an average it could be somewhere around 6%.

    Wells Fargo Bad Credit Mortgage Loans

    As far as mortgage loans are concerned the rules to apply for this loan are quite stringent and depend solely on the credit standing of the applicant. Here the down payment of a certain percentage is mandatory and may vary from 10%, to a credit standing of 500- 579,  or as low as 3.5% to a credit standing of 600 and higher. Otherwise a down payment of 20% has to be paid in any case if the credit score is not known.

    Let us see an example of a great credit and a bad credit and how the different rates will account to a loss of your money.

    You have applied for a loan with a good credit and the bank offers you an interest of say, 5% for an amount of $2, 00,000 for 30 years. Considering the calculation chart it will amount to about $1070 per month.

    On the other hand a bad credit loan will offer you a higher interest of about 8% on the same amount and will account to say $1460 per month. Thus you will have to pay $390 extra each month because of your bad credit standing not inclusive of the tax rates and insurance rate applied.

    Thus bad credit mortgage loans should be applied for, with utmost financial planning and moreover mere negotiation with your lender can sometimes help you fetch competitive interest rates depending on your credit background.

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