Smart Shopping

Before heading to the store for major purchases, it’s a good idea to research your options online. If you don’t have a reliable computer at home, your public library is a great place for free computer access and may have other resources as well – Consumer Reports or similar periodicals, or subscription sites you can access with a library card. Ask a librarian – they love helping with this sort of thing.

Obviously prices are worth comparing, but you want to look at quality and features as well. Which dishwashers have the highest customer satisfaction for the lowest price? Which furniture brands seem to last the longest while still retaining their look and comfort? If I want a laptop primarily for social media and office applications, is that different than what I should buy to watch videos and play games?

Part of smart shopping is controlling the parts you can control. Not everyone likes or values the same things, but if enough reviews from enough different sources all complain about the same guitar amp having the same problems, you might want a different amp.

That’s not to say you have to buy online. The impact of online shopping on local businesses is certainly a valid issue for discussion, and if that’s why you choose to buy locally, more power to you. There are more pragmatic reasons to consider shopping locally for big-ticket items, even if “locally” includes major chains or even “big box stores.”

First, of course, is the issue of shipping or delivery. It’s one thing to pay an extra $1.99 to have a drone drop off a Blu-ray the day it’s released, but quite another to have major appliances or furniture shipped. Most local stores will offer delivery, even if you have to pay a little extra for it. Second is what to do if something goes wrong. Sure, most online sellers have a return policy of some sort, but if it was a pain to return those pajamas which were too small, how much more is involved shipping back a computer and all its accessories after you were halfway through getting it set up and running? Find out what the policy is even if you DON’T by the “extended maintenance” plan (because those are almost always a horrible idea!)

Whether you choose to shop online or prefer to walk in to an actual store, don’t overlook the smaller places you may not have noticed in every town you’ve ever been in. The major chains aren’t the only places that sell stuff, and the name-brand websites aren’t the only cool places to browse. Cheaper is not always better – but spending more unnecessarily doesn’t guarantee much, either.

How Will My Credit Impact My

Ability to Get a Loan?

There are several things most lenders look at before offering a personal loan for shopping or for anything else. The first is your credit score. This three-digit number acts as an extremely simplified “snapshot” of your predicted credit worthiness. There are several different ways it can be computed, depending on which credit scoring service the lender chooses to use, but generally your credit score is based on several factors:

Your history making other kinds of payments – credit cards, automobile financing, store cards, utilities, rent, etc. This is usually the single biggest element of your credit score.

Your current debt utilization ratio. This is a fancy way of saying they look at the total amount your currently owe as compared to the amounts available to you. If you have an open line of credit with a local bank, or credit cards with available credit you haven’t used, that improves your ratio. Being maxed out on your cards or other forms of credit lowers your debt utilization ratio score.

Your current total debt. Whatever your total available credit, how much do you actually owe right now, in total – including on your home, cars, etc.?

Your credit mix. Some credit score systems really like it if you’ve had a variety of credit transactions over the years – maybe a car payment, a store credit card, a home equity loan you used to do some renovation, and a personal loan to pay for your daughter’s wedding. It’s not the dollar amounts so much as the variety they like – assuming you paid each of these off according to schedule along the way.

Many lenders will also look at your full credit history, especially if your credit score isn’t particularly strong. Some look for specific types of transactions. If you’re applying for a loan for things to go in your home, for example, the lender MAY pay more attention to the computer loan you paid off a few years ago and the auto loan you’re current on and less attention to your delinquent medical bills.

Finally, be prepared to document your income over the past few years and how long you’ve been at your current residence and job. Some lenders will consider personal loans for bad credit if you have a reliable income and seem to stay in one place most of the time. Some online lenders even specialize in these sorts of “credit rebuilding” loans. You may pay higher fees up front and a slightly higher interest rate, but if you can agree on a payment plan you know you can follow, you can not only get your loan for the stuff you need, but start rebuilding your credit as well.