Is interest rate differ from state to state?

Question

I am planning to apply for loan from bank. if i apply form different states i will get any good interest rate?? thank you very much and happy new year 2007

Answer 1

No, the rates will not be different. Even if they are, the difference won't make a difference...pun intended.

Almost all the rates are based on prime and that is a federal thing which is the exact same for all the states.

On top of that, it is law (because these credit companies spend a looooooooottttttt of money lobbying the Congress) that a credit company for example, can charge a maximum of whatever the state allows. BUT, the the state considered is the state where the company is based, where they have their headquarters AND even though a customer in California is using their credit card and they are based in Nebraska, the California Resident Local can be charged the Nebraska maximmum.

So yes, states with higher population, obviously, have lower interest rate ceilings BUT states which are desperate for sources of revenue and jobs for their own people invite these companies and tell them that if they come here they can charge whatever they want.

Haven't you ever noticed that all your credit card bills and things have their weird mailing addresses that are like 2000 miles away in cities and states no one has even heard of, especially the midwest states. This is the reason.

Since companies don't relocate their headquarters that often, especially to states where they can't charge you the skin, an arm, a leg, and your first born, you will get the same rate. The rate depends mainly on your credit and your credit doesn't drastically change overnight either or from state to state, furthermore keeping you rate quote a constant through out the nation.

If anything, I would advise you to stay locally, in which ever state you are a resident because if you go to another state, you won't have anything developed in that state such as your stay length and your job. As sure as hell, they will ask you why are you applying in South Dakota if you have been living in New York for 10 years. If you tell them that you just moved here, that is even worse.

In addition, if you go to different states and apply again and again, even with the same company, your credit will hit some enquiries and the score will actually decrease. You credit rating will become worse and then even if you apply home, they will charge you more than what they would have originally, because they will see that you have tried multiple attempts so you must be desperate and they will be then careful giving you such a loan.

Also, if you do this with the SAME company in different states, they will instantly see that and consider it some sort of a fraud and outright deny you.

The lesson learned, apply locally wherever you are considered a resident. You should obviously go to different lenders and get a quote and make sure to ask them if this enquiry will show up on your report or not. There is an official enquiry which does show up and then there is a prescreening, which doesn't show up. You obviously want the prescreening so that your credit score will not decrease until you have made your decision and are ready to take out the loan.

DO NOT go out of state. DO NOT enquire with the same company multiple times especially if they reject you the first time.

Answer 2

The interest rate you will get will be based on your personal information only.
It will depend on things like income, length of residence, length of employment, other loans you may already have, credit cards, payment records on all your bills (on time or late), your ability to repay the amount requested, and etc. These things and more is how your credit score is determined. Then your credit score has a large bearing on the interest rate you will be charged on a loan. The higher the credit score, the better the risk you are to a company loaning you money. The reward is a lower interest rate then the general public pays with lower credit scores. Find out your credit score. Mine is 820. I can get pretty much anything I want at a preferred interst rate.
My advice to you and others is to ALWAYS make your payments on time regardless of whom it is owed. Have no more than 2 credit cards and keep the outstanding charges below 1/3 of what they offer you as a credit line. Pay 2-3 times more than the minimum monthly payment on credit cards as often as possible.
Don't be switching credit companies to get the lower introductory rates all the time. Long term use of credit card(s) with consistent payment records builds your credit record the best. My longest use of a card is now at 16+ yrs, and the 2nd card at 10 yrs. You can negotiate with these long term use cards to give you better rates because of your consistent payments and longivity as a customer. Keep things STEADY and CONSISTENT and you will be rewarded with a higher credit score as you journey through life. PS> Future employers also LOOK at your credit information and SCORE. It tells A LOT about a persons character. See how important credit records can be! They also can help you land that job you desire as well.
Hope this gives you and others some insight on what to do to make things better and improve your scores.

Answer 3

Yeah they can, a bank will charge whatever rate the market will suffer. But don't panic just yet, the difference is half a percent at most or less.

Answer 4

Prime is the same, but each bank and loan company charges whatever it wants (within reason).

Answer 5

There should be no difference from state to state. But do your shopping. Different institutions will vary according to what you are going to do with the money.

Answer 6

Depends on the econome of the state but it really dosnt fluctulate a lot.