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...

“Student loan debt in 2019 is the highest ever.” According to the latest student loan debt statistic, “The debt is highest than ever.” These statistics have become a real concern among borrowers across all demographics and age groups. As far as student loan debt is concerned, approximately 44 million borrowers collectively owe approx. $1.5 trillion in the U.S. alone. Student loan debt has become the second highest consumer debt category, first being mortgage debt. Student loan debt is much higher than both credit cards and auto loans. According to the Institute for College Access and Success , “Students who enrolled for college in 2017, on average, owe $28,650.” If you are a student loan borrower or planning to apply for a student loan, we hope these student loan debt statistics can help you make appropriate decisions regarding student loan refinance, student loan repayment, student loan consolidation, and student loan forgiveness. Student Loan Stats Overv...

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 ...

If you think your personal loan can be transferred to another person, you need to reconsider it. Your personal loan can’t be transferred to another person. You get approval for your loan based on your credit score and income due to which it’s non-transferrable.  Some types of personal loans, such as signature loans, require your signature and use your promise to pay as collateral.  What Happens If You Do Not Repay a Personal Loan? If you don’t pay your loan on time, it can affect your credit score badly. Your lender can transfer your loan to a collection agency, making your life very stressful. Moreover, your lender can report you as a defaulter to the three credit bureaus – Equifax, Experian, and TransUnion. This default can be reflected on your credit for 7 years so it’s really important to make your payments on time.     Your lender can include a set off clause in your contract to avoid long repayment periods. A set-off clause allows th...

“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...

You can use a personal loan to fund anything, from home renovation to a long vacation.  You can qualify for a low-rate personal loan if you’ve got a checking account in U.S. Bank. Moreover, you must live within 50 miles of a U.S. Bank branch. Before applying for the US bank personal loan, you must have an idea about the pros and cons of personal loans.  Pros of taking out a U.S. Bank personal loan  U.S. Bank offers several benefits to its customers who apply for personal loans. Some of the pros of taking out a personal loan with U.S. Bank. You don’t have to put collateral as personal loans are unsecured Loans are flexible and you can use them for any purpose The loan limit is up to $25,000 and can return between 1-5 years APRs start as low as 6.99%, as of August 2017 You can apply for a personal loan over the phone, online, or in person at a U.S. Bank branch. You can make your payments through any mode – online banking, phone banking, or ...