First State Bank and Trust

A credit score is a number that evaluates the creditworthiness of any customer. Generally, lenders use credit scores to evaluate the probability that an individual will repay his or her debts.  An individual’s credit score ranges from 300 to 850. It is considered an important part of your financial status. If your credit score is higher, the risk of not getting a loan is lower; if your credit score is lower, the risk of not getting a loan is higher.  As you’re reading this article, you must be aware of the importance of maintaining a good credit score. In this article, we’ll share some tips that can help you with building a good credit score.  1) Start with only one credit – Many users gather a collection of credit cards within their first year of using credit. Don't do such mistake – opening up too many credit cards too soon. The more credit in your cards means you’ll end up spending more. This will make harder for you to keep up with your balanc...

You buy a car with an auto loan and home with a mortgage loan. However, a personal loan can be a good option in various circumstances. As there is no collateral with a personal loan, the interest rate is higher for it. Here are some circumstances in which personal loan can be a good option for you.  When Are Personal Loans a Good Idea?  Let’s understand the scenarios when you can make the best use of personal loan.  #1. Consolidate credit cards  You can take a personal loan to pay off your maxed out credit cards. The personal loan will consolidate all the charges in one monthly payment. The interest rate of personal loans could be lesser than the annual percentage rates on your credit card.  #2. Improve your credit score  Credit score plays an important role in mortgage and auto loans. To improve your credit score, you can always apply for a personal loan. Pay off your credit card debt with a personal loan that will improve ...

“A personal loan can improve your credit scores in the long term as long as you consistently repay the debt on time.” Your credit score gets affected when:  You apply for a personal loan. You shop for a personal loan. You regularly repay your personal loan. Miss a loan repayment Consolidate your debt Applying for a personal loan A personal loan application triggers a hard credit check that can temporarily lower your credit scores. A hard credit check is an evaluation of your credit history. This evaluation knocks off approx. five points from your FICO credit score. Overall, new credit applications account for about 10% of your credit scores. This inquiry typically stays on your credit report for two years but only affects your score the first year.  Repaying your personal loan Consistent and on-time payments toward your debts improve your credit in the long-term. Your repayment history forms up to 30% of your credit score. Therefore, it is very im...

Need to buy a car? Okay, you can get an auto loan to buy a car of your dreams. But for this, you must have a good credit score. What if your credit score is bad? The chances of getting approval for car loan reduces. Don’t worry! We’ve covered it for you.  Here are some steps that can help you to buy a car with a bad credit score.  Check your credit before buying a car – Check your credit report as soon as you plan to buy a new car, even if it's months or years in advance. And if your credit score is bad, start working on improving it. You can improve your credit score by paying off past-due accounts, disputing credit report errors, and adding positive information to your credit report. It improves the chances of getting approval for a car loan.  Check current interest rates – Check latest auto loan interest rates online to get a clear picture that what interest rate you should expect at your credit score. With good credit, you can qualify for a rate at or...