Loans can be an effective way of getting access to funding. Bobby Juarbe always wants you to understand the upsides and downsides to loans; some may not offer the rate you want, for example, or they might have mandatory automatic withdrawal.

Whatever your reason for applying for a loan, consider that there are good things you can do for your borrowing power. For instance, one of the most common types of loans is a consolidation loan for credit card debt. If you get one of these, take steps to ensure that you won't continue maxing out your cards. You can get an accountability buddy to help you cut them up as you pay them off, for example.

Bobby Juarbe says "No matter what you are getting a loan for, shop around for options first." Not having enough of the right options is one of the biggest reasons people don't get the loan rates they need. You could end up with a higher rate if you don't give yourself enough time to shop around before you need to sign on the loan.

Make sure you get the right lender. For instance, one of the biggest lender differences is credit unions versus banks. They can vary by as much as half an interest point. They also vary by the types of loans they give; in other words, if you're only shopping at one type of institution and not getting the offers you want, try another type.

Be conservative with your spending if you are getting a credit card consolidation loan. You may need an accountability buddy to help you reduce your credit card spending. A consolidation loan won't help you much if you go over that limit also!

Check the terms of your loan carefully. It's all in the details, but in banking, it's all in the fine print. You may find that even if you are a good payer and pay off your loan early, there is a fee. Some banks require automatic withdrawal. And you may not realize all the terms of the loans offered until you read the fine print. Make sure that you can actually adhere to the terms without too much stress first; then, decide on a loan plan.

Differences in interest rates are huge with good credit versus bad credit. Make sure your credit score is accurate before going to a bank to apply for a loan. You can usually get your credit checked once a year for free, but you can also use a paid service to get a really up to date credit score if you've used your yearly check up already.

Origination fees can be a sneaky way to raise interest rates. For example, a loan may have a lower interest rate than another but double the origination fee. Thus, the rate is actually higher in some cases or equal with a higher up front cost. Make sure that you calculate the whole cost of the loan including origination fees, late fees, and other up front costs to check and see that the rate is really lower when comparing two loans.

Lenders can be salesmen too! Even if a salesman is keen on getting you to take a loan out, Tell them Bobby Juarbe sent you and make sure that you can really handle the loan and the terms. Sometimes terms are negotiable; sometimes, they are not. Know what kind of loan and lender you have and don't get stuck in a loan that is too high just because you encountered a good salesman.

Lenders can set up terms so that they are entitled to automatic withdrawals. Make sure that this is really okay with you before you enter into a loan agreement. This can get stuck in the fine print or in terms; so read carefully and judge well because once you sign the agreement you can't go back on this term.

Some lenders are more flexible than others. Determine what kind of lender you have by getting to know them with lots of questions. There is a possibility that you could have difficulty repaying the loan. In this case, you will need to know what your options of renegotiation are. The fine print will usually let you know a good deal about the flexibility of a lender.

An important point about lender type is the arbitration clause. If there is any difficulty in repaying the loan, you will need to know if you must go through the court system or if arbitration is offered. Different lenders may have arbitration, but some of them require a court hearing and if that is not a good fit for you, make sure you don't enter a contract stating as much.

Lastly, consider the difference between fixed rate and variable rate loans. A fixed rate loan will give you consistent payment obligations throughout the duration of the loan. A variable rate loan may increase or decrease in payment amount as the loan progresses. The major difference here is that variable rate loans assume more risk because they vary as interest varies.