Prime lending has been in practice since from many years, but the point is that, it would not suit everyone. If you are the bad credit holder, then no banks or financial institutions will come forward to lend you under prime lending rate. If you fall on the category of bad credit holders, you should go for the sub-prime lending. The reason is that, the sub-prime lending will be issued to the customers that contain bad credit history. The rate of interest will be higher to the sub-prime lending while comparing to the prime lending regardless of types of the loans.
In many cases, the prime lenders will end up as subprime lenders due to various reasons. Besides the credit scores, people will be at times fail to pay the higher down payment or fail to meet the documented income and all these things will make them turn subprime lenders. In order to know about the prime lending in detail, you should pay your visit to the site, PrimeLending.com . It is not that easy to obtain the loan under prime lending rate. For that, you need to fulfill some prerequisites. Without fulfilling the guidelines of the banks, you cannot get loans under prime lending rates.
Eligibility Criteria for Getting Loans under Prime Lending Rate
The eligibility criteria will vary according to the types of the loans. But in general, you need to possess the following things for turning eligible to get loans under prime lending rate.
- You should get hold of good credit score. Your credit scores will be thoroughly examined by the lenders before offering loans to you at prime lending rates.
- You should be the long-time and creditworthy customer of the lending company. The lending company would not lend money to any of their customers that are new or not known.
- You should own a job that can make you pay your loan dues and interest rates on time. Your job and payroll sheet will be checked by the banks if it is needed to be.
- You should accept the terms and conditions of the loan, prime lending rate and repayment schedule.