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Heartland uses merit-based
pricing to offer you the best possible rate based on your
credit history. This rate structure applies to new and used vehicle,
signature, fixed-rate home equity and home improvement loans. Merit-based
pricing does not apply to variable-rate home equity
loans, credit cards, overdraft protection, guaranteed student
loans, savings or CD-secured loans, or first mortgages.
What is
Merit-Based Pricing?
"Merit-based pricing" means we offer a range of loan rates. The rate paid by each
applicant is determined by their credit history. Those with the best
credit pay the lowest rates and those with past credit problems are
assigned a slightly higher rate to reflect the risk involved in their
loan.
When you check our loan rates, you'll notice that
APRs are quoted "as low as." The rate given is the lowest rate available; the rate you will pay may
differ based on your credit history.
When you cosign for a loan, you are responsible for repayment if the
primary borrower is unable to make payments for any reason. If someone asks you to become a cosigner, make sure you are willing (and able) to take on that responsibility.
Will anyone know what rate I'm paying?
No. After reviewing your loan request and your credit report, your loan officer will determine what interest rate will apply to your loan. Federal privacy laws dictate that this information is not
to be shared with anyone. Like all other personal information you provide, this information is held in strict confidence.
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How can I improve my credit report?
When your loan officer reviews your application, he or she can tell you if
your credit report affects your application in a way that you are not
eligible for our lowest loan rates.
Your loan officer can also give you some advice on how to improve your
credit history so it doesn't affect future applications for credit.
Here are some helpful tips:
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Be sure payments are made on time.
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If you are unable to make a payment, contact the lender to discuss your
options.
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Don't apply for credit unless you really need it. Many
borrowers do not realize that the amount of credit they
have outstanding affects the perceived risk
involved in granting future loan requests.
What if a credit problem is not my fault?
In some cases, your credit report may contain
discrepancies. Your loan officer
can advise you on how to resolve these discrepancies with the
credit reporting agency so it won't be an issue when applying for credit in the future.
Will my rate change over the loan term?
No. Most rates
will remain in effect when until the loan is paid in full.
However, If your credit report improves over time, you may be
able to refinance your loan at a lower rate. Once your credit
issues are resolved, future loan requests will be evaluated based on your improved payment record.
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