Financing companies offer cosmetic plastic surgery loans so that people can afford expensive surgical procedures. In reality, however, loans of this type are nothing more than unsecured debt. An unsecured loan, often referred to as a signature loan, is not based on any collateral. Instead, the financing is approved based on the applicant's credit history and past record of repaying debt. Such factors as annual income and length of time at the current job and residential address are also considered. A person who has worked for the same employer and/or lived at the same address for several years is demonstrating stability and this can be an important factor in the loan approval process. In contrast to unsecured debt, a secured loan is based on collateral. In other words, the loan is attached to a specific and tangible object, such as a house or a car. Financial institutions that provide cosmetic plastic surgery loans can't foreclose or repossess anything that has to do with the loan so the debt is unsecured. However, that doesn't mean that there aren't penalties for nonpayment.
Individuals who miss payments on unsecured debts put their credit score at risk. This can be a problem if credit is needed in the future to purchase a home or other big-ticket item. A low credit score may also affect a person's auto insurance rates. Before applying for financing (whatever the reason), potential applicants may want to review the information on their credit histories for any inaccuracies that may have been reported since the interest rate on unsecured financing, including cosmetic plastic surgery loans, often depends on one's credit score. Federal law requires each of the big three credit reporting agencies, namely, Equifax, Experian, and TransUnion, to give one free credit report a year to those who request them. Many people find it helpful to stagger the free reports by requesting one every four months. For example, an individual might choose to get his free report from Equifax in January, the Experian report in May, and the TransUnion report in September. Though the report is free, the agencies are allowed to charge a fee for the actual credit score. Consumers can choose to pay this fee each time they get a report or perhaps just once a year. Each agency has a different formula for coming up with that important score, but consumers can still get an idea of their creditworthiness by obtaining the number.
As already stated, the interest rate for cosmetic plastic surgery loans is often determined by the applicant's credit history and score. Someone with a low score will usually be charged a higher interest rate than a person with a high score. By reviewing one's report before applying for financing, the applicant can correct any inaccuracies that may be adversely affecting the score or improve it by taking positive steps that will increase the score. For example, the ratio of indebtedness to income may be too high or too many late payments may have lowered the score. The individual can take steps to correct these types of factors by paying down debt to improve the ratio and making payments on time for several months. Of course, the time needed to raise the score may mean postponing the planned surgical procedure for awhile. But postponing the procedure until one's credit score applies for more favorable rates will save money in interest costs. King Solomon wrote: "There is that speaketh like the piercings of a sword: but the tongue of the wise is health" (Proverbs 12:18). When someone wants something very much, waiting can be very hard. But postponing optional surgical procedures until one can get the most favorable financing terms on cosmetic plastic surgery loans is wise financial advice. Of course, even wiser financial advice is to save on interest costs altogether by either saving up for the procedure or forgoing it altogether.
When financing is needed, potential applicants should carefully review the loan documents before signing the paperwork. In addition to securing the most favorable interest rate possible (given one's credit rating), the individual will want to choose the best payment plan for her circumstances. One loan may have a fixed payment plan that requires a regular monthly payment for a number of months. Another plan may have a deferred option that charges zero interest for a certain period of times, usually one year. Additionally, applicants should only choose among cosmetic plastic surgery loans that do not include prepayment penalties in the terms and conditions. This type of provision effectively prevents the borrower from paying off the loan early. When choosing a lender, applicants should also pay attention to the level of customer service that is provided and avoid those lenders that don't provide accessibility. Consumers are also warned to stay away from financing companies that select the surgeon who will perform the procedure. Money should only be borrowed from a company that will provide the funds to the medical professionals chosen by the borrower.
The application process for many cosmetic plastic surgery loans is actually quite simple. Companies often provide consumers with the option of applying for funds online, through an automated phone system, or via fax. Usually a decision is made fairly quickly. Applicants often find it helpful to know how much money is available to them before meeting with their surgeons for the initial consultation. Once the loan is approved, the company can wire the funds directly to the medical professionals before the surgery date. This ensures the money is used for the purpose for which it was intended and also eliminates one more thing for the prospective patient to worry about. With financing in place, the consultation over, the surgery date scheduled, and payments made as needed, the patient only needs to worry about her recovery. In summary, cosmetic plastic surgery loans are basically unsecured financing that is marketed for a particular purpose. Unless it's absolutely necessary, it's a loan most people should do without.
Individuals who miss payments on unsecured debts put their credit score at risk. This can be a problem if credit is needed in the future to purchase a home or other big-ticket item. A low credit score may also affect a person's auto insurance rates. Before applying for financing (whatever the reason), potential applicants may want to review the information on their credit histories for any inaccuracies that may have been reported since the interest rate on unsecured financing, including cosmetic plastic surgery loans, often depends on one's credit score. Federal law requires each of the big three credit reporting agencies, namely, Equifax, Experian, and TransUnion, to give one free credit report a year to those who request them. Many people find it helpful to stagger the free reports by requesting one every four months. For example, an individual might choose to get his free report from Equifax in January, the Experian report in May, and the TransUnion report in September. Though the report is free, the agencies are allowed to charge a fee for the actual credit score. Consumers can choose to pay this fee each time they get a report or perhaps just once a year. Each agency has a different formula for coming up with that important score, but consumers can still get an idea of their creditworthiness by obtaining the number.
As already stated, the interest rate for cosmetic plastic surgery loans is often determined by the applicant's credit history and score. Someone with a low score will usually be charged a higher interest rate than a person with a high score. By reviewing one's report before applying for financing, the applicant can correct any inaccuracies that may be adversely affecting the score or improve it by taking positive steps that will increase the score. For example, the ratio of indebtedness to income may be too high or too many late payments may have lowered the score. The individual can take steps to correct these types of factors by paying down debt to improve the ratio and making payments on time for several months. Of course, the time needed to raise the score may mean postponing the planned surgical procedure for awhile. But postponing the procedure until one's credit score applies for more favorable rates will save money in interest costs. King Solomon wrote: "There is that speaketh like the piercings of a sword: but the tongue of the wise is health" (Proverbs 12:18). When someone wants something very much, waiting can be very hard. But postponing optional surgical procedures until one can get the most favorable financing terms on cosmetic plastic surgery loans is wise financial advice. Of course, even wiser financial advice is to save on interest costs altogether by either saving up for the procedure or forgoing it altogether.
When financing is needed, potential applicants should carefully review the loan documents before signing the paperwork. In addition to securing the most favorable interest rate possible (given one's credit rating), the individual will want to choose the best payment plan for her circumstances. One loan may have a fixed payment plan that requires a regular monthly payment for a number of months. Another plan may have a deferred option that charges zero interest for a certain period of times, usually one year. Additionally, applicants should only choose among cosmetic plastic surgery loans that do not include prepayment penalties in the terms and conditions. This type of provision effectively prevents the borrower from paying off the loan early. When choosing a lender, applicants should also pay attention to the level of customer service that is provided and avoid those lenders that don't provide accessibility. Consumers are also warned to stay away from financing companies that select the surgeon who will perform the procedure. Money should only be borrowed from a company that will provide the funds to the medical professionals chosen by the borrower.
The application process for many cosmetic plastic surgery loans is actually quite simple. Companies often provide consumers with the option of applying for funds online, through an automated phone system, or via fax. Usually a decision is made fairly quickly. Applicants often find it helpful to know how much money is available to them before meeting with their surgeons for the initial consultation. Once the loan is approved, the company can wire the funds directly to the medical professionals before the surgery date. This ensures the money is used for the purpose for which it was intended and also eliminates one more thing for the prospective patient to worry about. With financing in place, the consultation over, the surgery date scheduled, and payments made as needed, the patient only needs to worry about her recovery. In summary, cosmetic plastic surgery loans are basically unsecured financing that is marketed for a particular purpose. Unless it's absolutely necessary, it's a loan most people should do without.
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