Monday, February 7, 2005

Large Percentage Not Shopping Refinance Rates

I am completed floored to find in my research that so many are not bothering to shop interest rates.

Obviosuly there is a common thread when comparing the reasons for this oversight.

I came up with three basics

1. Low credit score jidders

2. Poor negotiation skills

3. Credit card mentality

So what does it all mean?

1. Low credit score jidders: Many loan applications don't bother to consider their credit score as they were not taught to put emphasis on credit standing as a means to get the stuff they want. Perhaps inexperience and the ability to into the family treasury left them ignorant of the need to build up good personal credit standing. Now out on ones own your asked to face yourself in the mirror. Not seeing what you like you fail to negotiate other factors.

2. Poor negotiation skills: Ones credit score should be a cause of concern. But all too often when one is self-conscious about his or her credit standing the option to negotiate rates seems out of reach. Add to this fact that many never learned how to negotiate or put themselves in postion for a more successful loan agreement.

3. Credit card mentality: Another factor is that many who have opted for rather high credit card rates may do the same when seeking a loan. Some don't realize that there is a such thing as a 5.7% fixed rate loan for life.