Do not apply for a personal loan without making sure you have done everything you can to get the best deal. While it may be tempting to go for the first loan you come across, that could be a big mistake. Use the following checklist to avoid these common mistakes.

1. Not shopping around to compare loan products. Not all lenders are the same, so fees and terms of personal loans can differ quite a bit. Take the time to evaluate different lenders and loan packages to get the right fit. It’s also important to research any lender you plan to do business with to make sure they have a solid reputation.
2. Borrowing money from unfamiliar loan companies.There are many companies out there offering to lend money. Unfortunately, there are a lot of scam artists just waiting for a chance to pick your pockets. If you feel that something isn’t quite right with a particular lender, go with your gut instinct.
3. Not doing the math. It is important to understand exactly how much getting a personal loan will cost.

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Social Security Number also called SSN is a 9-digit number. The purpose of it is to track and verify people for tax. That number is also used for loan verification of an individual to avoid frauds. If someone don not have a SSN, but do have an ITIN (Individual Taxpayer Identification Number) then he can be eligible for an ACORN (Association of Community Organizations for Reform Now) program. It offers thirty year fixed-rate financing with a very viable interest rate. Alternative lines of credit such as rent and utilities can also be used to qualify for loan.

An ITIN loan, catch its name from Individual Tax Identification Number, is for house purchasers without a Social Security number. This organization collaborates with Citibank and few others to make ITIN loans obtainable for first-time home buyers without Social Security identification. There are few steps to follow for loan qualification.

Step 1

The first step for an ITIN loan qualification is to listen home buyer seminars. The seminar provides information about purchasing a home for the first time buyers.

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The Center for Public Integrity (CPI) published a new report, Buyer Beware, on April 11. It exposed some of the many scams that certain car dealers use when selling to innocent consumers. Here are five of the worst.

1. Cheap auto loans that become expensive

As reported in last week’s Rebuild.org auto loans news blog, dealers creamed off $25.8 billion in 2009 by inflating the rates customers are charged for their auto loans and keeping the proceeds for themselves or splitting them with lenders, according to the Center for Responsible Lending.

On April 7, Forbes reported that 80 percent of car buyers finance their purchases using dealers, and quoted one industry expert, who said: “A mark-up of 2 percent to 4 percent is standard in the auto industry, and can be even higher for those with less than perfect credit. If you already got rooked on your car loan, you can refinance online…”

2. Auto loans that yo-yo

Yo-yo auto loans are an industry favorite. Th

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APR or Annual Percentage Rate determines the total cost of your credit in terms of annual rate. You should carefully understand the APR and different facts related to it.

Different APRs on Various Transactions

Usually creditors allow users to use their credit cards with full freedom by giving them introductory APRs on various transactions. Promotional APRs mean that you have a lower APR on various kinds of transactions for a particular time period. The APR returns to the original point after the end of promotional period. Users can save a great amount of money by using these low promotional rates.

What to Avoid?

You should avoid penalty or default APR. These are usually the higher APRs that are imposed on the late payments. The detail of penalty APRs is within the account agreement.

Fair Comparison of Variable & Fixed APRs

You have different APRs among which some are variable or some may be non-variable.

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