Tomorrows Personal Inflation Rates

Today's topic of discussion is a personal inflation rate. I have been driving my wife crazy talking about personal inflation rates all morning and the importance of your personal inflation rate when you go to the bank to get a loan. Unfortunately this is my job and I talk about personal financing matters every day. So here we go.

Your personal inflation rate is not something that you have to be thinking about on the daily basis or ever for that matter. The term personal inflation rate is simply a banker's way on sizing you up. When a loan officer looks you up and down with their blank stare and their financial yardstick they are taking into consideration different data than anyone else they have ever given a loan to in the past, currently, and the future. They must exercise due diligence and figure out what they think their risk is. They will take into account all of your debt, including credit card debt, mortgage debt, etc. etc. etc.

If your personal inflation rate is very low your likely retired or single. A personal inflation rate usually just means whether or not you have children to raise and future costs coming at you. As long as your personal financial situation is under control and you have a good FICO score and a solid credit rating from Equifax, or any of the credit tracking companies, you will likely not have any trouble getting approved for any kind of reasonable financing, especially if it is a house and a decent neighborhood.

I will not get into real estate or talk about any of the different types of loans you may be looking for, suffice to say that you need to be aware of which are future incurred costs are going to be. As I have mentioned on other online lending web sites, your personal inflation rate can be high or low and make no real difference on your approval, or the status of your soon-to-be loan. As long as you can afford, or more importantly as long as the bank thinks you can afford to make the payments on the loan you are golden.

One thing for sure, now you know what personal inflation rate means and how the banks use this metric when making a final call on your financing. It is a good thing to know before you go in to get a loan. I have found in my own life that because I understand the keywords, the lingo, and the buzzwords of the financial industry the banks tend to look upon me more favorably. Why don't you do some research online and learn about what the banker sees and not just what you see. This will give you a much better chance to get approved. Good day to you.