By financen | April 24, 2017 - 5:42 pm - Posted in Credit Score, Loan, Personal Loans

Personal loans can be a great arrow in your financial quiver for consolidating higher interest rate debts, like credit cards or short-term loans, or financing a major purchase or unexpected bill. With predictability built in, personal loans make it easy to budget for repayment for the life of the loan, and for the most qualified borrowers, repayment can extend up to several years. However, not everyone is eligible for a personal loan through banks or online lenders. Because personal loans do not require collateral – an asset, like a vehicle, a home, or a bank account the lender can use to recoup losses due to default – the application process can be stringent. Here are the most common factors banks review when evaluating a personal loan application.

Credit Score

credit-score

The first place lenders look when receiving a new personal loan application is the borrower’s credit history and score. Credit information is like a financial fingerprint in that it provides a clear picture of who a borrower is in terms of money management and timely debt payment over an entire lifetime. When credit history is clean, and a credit score is above 700, banks are more apt to offer a personal loan with the lowest possible interest rate and budget-friendly repayment term. If credit score and history are on shaky ground due to past late payment, a recent bankruptcy, or a foreclosure, lenders either decline a loan application or charge far higher interest rates to protect their potential for loss.

Employment History

employment

Some banks ask for employment history on a personal loan application, in an effort to understand a borrower’s track record of earnings. When someone has had significant gaps in jobs over the last few years or has had several different employers in a short period of time, lenders may view the borrower as higher risk. Steady employment and increased income over time is what banks are typically looking for to qualify a borrower for a personal loan.

Current Income

Income

Above and beyond a borrower’s past financial record, banks want to understand current income. Borrowers with steady earnings from a conventional job are perceived as a lower risk to most lenders, while those who are paid by commission or a bonus structure are less reliable in theory. Banks also want to understand the reliability of the income stream a borrower has, and how that stacks up against other outstanding debts that require a monthly payment. Even when income is steady, borrowers who have several other monthly payments due may not be a strong fit for a personal loan through a bank.

Amount and Purpose of the Loan

The last common factor in reviewing a personal loan application is two-fold: the intent of the borrow and the amount funded. First, personal loans may have some restrictions on what items or expenses they can be used to pay, typically excluding paying off another loan or financing education-related costs. The most common uses for personal loans that are deemed suitable by a bank include debt consolidation, a large expense like a family vacation or holiday spending, or business financing. Second, banks always review the amount of the loan requested and compare that to the borrower’s income and other monthly obligations. For most personal loan applications, no more than $35,000 can be borrowed at one time.

Using a personal loan to manage your finances can be a smart way to leverage your borrowing ability, but take note that banks are going to review your loan application carefully. Before applying for a personal loan, make sure to have documentation relating to your income, a list of previous employers, and a clean credit history to improve your chances for approval.

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By financen | May 8, 2016 - 3:34 pm - Posted in Loan, Title Loans

Title loans are one of the helpful means if you are looking for a short term loan. Here, the loan gets instantly approved and the borrower finds it as one of the best available option.

Title loan is secured to the vehicle as collateral, but you can still freely use the vehicle in the manner you want. Many lenders take the vehicle as collateral to back the loan repayment. It is important that the borrower has a clear title to the loan. He needs to produce valid documents proving that he owns the vehicle at the time of approval of the loan.

The processing time in title loans is very fast. In regular loans, the borrowers have to wait for several days for the approval. In title loans, the borrower can know the status within 30 to 45 minutes after the application is filed. People with bad credit who are disheartened because of refusals in the application process will find title loans different. No credit check is required in Title loans Texas.  You can still get approved for title loan even if you have county court judgment, individual voluntary arrangement etc. by being regular in the loan repayments, you can have a sizeable positive effect on the credit status.Title loan

While applying for the title loan, the borrower needs to present his pay stub, a couple of personal references and a valid address proof. Once these documents are submitted, the loan can be sanctioned for use.

Title loans are best used for short term because of high interest rate. Hence the term of repayment should be for a month or two.

Due to unavoidable circumstances, if you are not able to pay the title loan in the month it is due, you will have to pay the double amount in the subsequent month, plus the interest of the first month. This is because interest in the second month costs equal to the actual amount.

It is advised to use title loans only during emergencies and not to get trapped in it. If for some reasons, the borrower fails to pay the title loan in the month it is due, then he has to pay double in the subsequent month or else he will just pay the interest. This means that the principal will be carried over to the next month and the borrower has to pay interest equal to the principal. This way it becomes a vicious cycle making it difficult for the borrower to come out of this trap.

Before taking the title loan, it is important to plan repayments and make sure to pay it on time to avoid the late fees. The rate of interest is very high so one should keep this factor in mind.

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By financen | April 3, 2015 - 3:45 pm - Posted in Loan

Sometimes bad finances happen to good people. An unexpected car repair, an emergency medical expense or a leaky roof can throw your careful budget for a tailspin. When these money emergencies happen, it’s good to know that there is somewhere you can turn for extra cash. Getting a short term has never been easier or quicker.

How Short Term Loans Work:

Short term loans are intended for one-time events that require you to come up with a lump sum of cash. When these situations arise, you can apply for a quick loan and have money delivered to your bank account quickly. Repayment terms for these loans vary, but in most cases, you can make weekly payments that allow you the flexibility of paying back your loan over time.

You can often get short term loans regardless of your credit situation. Many companies that offer loans work a network of lenders that loan to a variety of applicants from a wide range of credit scores. This means that even people with less than perfect credit have a chance at getting approved for a short term loan.

Applicants usually have to pass minimum qualifications for getting a loan. This include being at least 18 years of age, earn a minimum annual salary and have an active checking account. You can get info here on how you can get a short term for all your financial needs.

Don’t let an unexpected expense throw you for a loop. Apply for a short term loan and get your money back on track today.

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Sometimes we get into financial mess that may not be created by us. If you are one of them and are feeling trapped, there is an easy way to get out of this mess. Sometimes you get frightened thinking that the lenders will turn down your proposal because you are a bigger risk to their finance. Now you don’t have to go through such difficult financial situations. Recession has left its toll on many of us. People who never thought that their credit will get bad are now facing this tough situation. You can easily apply for a loan with different loan companies. You just have to do a search on the internet, shop with different companies and figure out the best deal in your favor.

What makes a loan high risk? This is that type of loan which is applied by a borrower who has bad credit and is in tremendous need of cash. Just do a search on the internet as per your requirements and you will find different lenders. Although they may not specialize in this type of loan, but they can approve your loan requirement. These lenders have a fair idea about such requirements of the borrowers. It does not matter whether you own a car or a home, to put as collateral, you still have the chances to get approved. All you need is a steady income and an active checking account, and many lenders will be willing to do business with you.

Based on the collateral that you have to put against the loan, you can apply for a bigger amount. An unsecured loan that is offered without collateral can range between $1,000 to $25,000 and you can pay it back between 1 to 25 year time frame.

creditWhen you are applying for an unsecured loan, it is obvious that the interest rate will be a lot higher considering the risks involved with it. Hence, it is better to pay back a small loan quickly than letting the interest charges kill you slowly over a long period of time. Hence, you should borrow a small amount, so that you don’t end up paying a lot in interests and fees. And once this loan is getting paid off, it will improve your credit history. Once your credit score is back up, then you can get better deals from the lenders.

Application process is very easy. You just have to get online, fill the application form and your loan will be processed. Make sure that you have fully read the terms and conditions in the contract copy to avoid any confusions at the later stage.

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By financen | June 9, 2014 - 6:13 pm - Posted in Loan

LoanNowadays, it can be hard to acquire a loan when you need it. However, you will be able to find websites like freedomlending.ca that will give the loan alternatives that you want. You won’t have to worry about high rates on your mortgage loan. You can get second mortgage rates Ontario that will fit your budget. One of the biggest benefits that you can take advantage of is calculating your mortgage loan.

By calculating your mortgage loan, you are able to find the right type of loan option that can fit your budget. In the end, this type of loan can get you out of your debt or help you when you need a short-term loan. Aside from a mortgage refinance that includes a second mortgage, you also have many other types of alternatives.

Other types of services that you can browse for can include private mortgages, debt consolidation and equity take outs, just to mention a few. You also have options to grow your small business with loans that can help you get started. You can use the money to renovate your home as well or fix your credit. Rest assured that you can benefit from all of these services and offers.

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By financen | January 20, 2013 - 6:27 pm - Posted in Loan, Student Loan

student-loan

student-loan

A college education is so important that many parents start saving money from their children’s date of birth having their future in mind. However, very few parents save enough money to pay higher education and many others forget the early enthusiasm that moved them to save money. This could be your own story, and now that you have grow up and are close to completing your high school education, the reality is that your parents have not enough money to pay for college and the only workaround to pay your professional formation seems to be student loans. However, there are several tips to keep in mind before taking out a student loan.

  • Help Your Parents Save Money Yourself

Many students believe that their parents have to pay for college education no matter what, and they do very little or nothing to materialize their dreams to enroll in a certain university or college of their choice. They know that either way their family will takes parent loan or a student loan, the education will be paid. However, if you know that your parents are short of money and you can contribute with their budget, talk to them and let them know that you prefer they save the money they would pay for your latest video game towards your education. You can also take a part-time job or summer job and put into a college piggy bank the money you earn to achieve your goals.

  • Good Students Are Often Rewarded

Problem with most teenagers is that they believe that high school is a place to be a rebel, go insane and make tons of friends, the last opportunity to run wild before becoming a serious man or woman at college. Wrong perception! If you spend your time in high school in petty activities, you are going to have fun, but very little opportunities to be rewarded as a good student, or definitely none. Many colleges are glad to finance the education of high school students that have proven to be a valuable asset for their schools, granting them total or partially paid scholarship. The better student you become the more financial benefits you can obtain.

  • Postpone Your Independence Day

Becoming an adult is probably the most awaited moment that any teenager has in mind. Moving out of your parents’ home becomes a golden dream and you cannot wait to start making your own decisions and live in a place that is far from being the conventional and organized place that your mother asks you to keep clean. However, if you gain the courage to ignore the comments about still living under your parents’ roof while attending college, you will find that staying there can help to save money that you can use to pay your education rather that taking out a student loan.

There are many other ideas and tips to same money or earn money to finance your higher education without having to acquire debt. Use your talents to find those ideas, including asking other family members to contribute with donations to get money for your college education.

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By financen | November 27, 2012 - 4:25 pm - Posted in Loan

Most people have heard of the idea of borrowing money via the Internet these days, but borrowing money over text messages is something that many have not yet heard of.

loan-by-phone

loan-by-phone

The company seeks to provide all customers with the chance to borrow up to £500 at any time that they need to. This is a great thing for those who need to borrow money sometimes for emergency needs. After all, there are plenty of us who are living from one paycheck to the next, and having a little extra help now and then never hurt anyone.

TxtLoan only requires that you sign up for an account on their website once. This process usually only takes about 5 minutes and you are good to go. After you have established an account, you are able to text the company for a loan anytime.

One of the very best things about this particular way of borrowing is that you can get the money that you need in your bank account in 15 minutes or less. That is incredibly fast processing time for loans in general.

The whole purpose of borrowing a small amount of money is to pay off things that need to be paid immediately. In many cases it is better to borrow a small amount of money rather than pay the late fees that come with paying bills late. Depending on the circumstances, there are certain situations when paying late could have even worse results than just having to pay a late fee. Thus, having a text lender is key to helping you avoid these situations.

The ability to receive money via text is important to a lot of people who want to maintain their financial privacy. They do not want other people seeing them in the offices of a small time lender, and this means that they would prefer to be able to get their money over the phone. It is a much more private way of doing things. Besides this, it is a lot easier to receive money in this manner. Anyone can just pull out their phone and have the money almost instantly. That is a lot better than wasting gasoline going down to the lender’s office to borrow money.

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By financen | August 30, 2012 - 6:12 pm - Posted in Auto loans, Loan

In today’s life, everyone needs a car for their personal use. If you are looking of buying a vehicle for personal use, there are a few important things that you need to be aware of in order to get the right solution. If you are thinking loans for your car, then you must go for that loan option which you can easily manage in a long-term payment obligation.

car-loans

car-loans

Before putting cash for your title, it is always recommended that you take professional advice so that you can secure a worthwhile and handy way of getting it. A car loan that comes with the best economical and friendly deals is preferred by many people and they can buy their own sedans. You must shop with different banks or financial institutions and see who is offering you the lowest interest rate and favorable terms. You can also browse through the internet and get plenty of useful information about financing tips for your advantage. This way, you will be more than one hundred percent sure of getting an affordable loan application.

Before buying your car or any other vehicle, you must also consider these significant factors so that you end up making a fair decision. You must always consult with your friends or family members or take professional advice before applying for loans for your car. Familiarize yourself with all the terms and conditions before putting cash for your title. You should be aware of the pros and cons before borrowing money from the bank or from the private lender.

You can also consider car leasing as another feasible alternative other than applying for a mortgage. You should weigh all your options regarding auto loan and lease. Then compare the advantages and disadvantages before finally making your decision of purchasing the vehicle. An accurate comparison and smart analysis will certainly be of great help in making wise decision in buying and shopping for a certain type of vehicle.

Discuss about your plans with an expert or a trustworthy financial consultant. He will go through the terms and conditions very carefully before making any suggestions to you about the purchase of the car. You will now know how to distinguish the deal and understand whether it is a scam or not. You will definitely be able to save a huge amount of cash if you prefer to use an exceptional auto loan.

Helpful Article: http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut04.shtm

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By financen | February 8, 2011 - 4:57 am - Posted in Loan

Sometimes we need loans to fulfill our utmost requirements when we don’t have enough time to relax. There is an easy solution to it with instant decision loans which is planned to meet the urgent requirements. It can easily resolve the problems without having to wait till the next payday.

Instant decision loans also known as personal unsecured loans are offered for a short term to fulfill the emergency finance requirement of the borrower. They are known as unsecured loans because they do not require any collateral or security for approval. It also does not need any heavy paper works at the time of processing.

Loan provider will review the monthly income of the borrower as the major benchmark for approving the loan. The basic criteria to get approved for the loan is that a person should be above 18 years of age and should be employed. S/he should be earning a minimum salary of $1000 on a monthly basis. The borrower should also have an active checking account for immediate cash transaction after approval.

Instant decision loans are offered in the range of $100 to $1000 depending upon the monthly income of the borrower and can be paid back within 15 to 30 days. Its short term characteristic gives the amount at higher interest rate. However, you can negotiate with your loan provider for a lower rate.

There is no credit check procedure for getting approved for an unsecured personal loan. People with bad credit can easily apply for such loans. You should always try to pay back the loan within time to avoid high interests and penalties.

You can easily apply for the unsecured personal loans from different lenders on the internet. Make sure that you have understood the terms and conditions of the loan before applying for one. You just need to fill the form on the lender’s website and wait for the approval. Once you get approved, the loan amount will be electronically credited to your checking account within 24 hours and you can use it in the same day.

By financen | November 18, 2010 - 2:26 pm - Posted in Loan, Mortgage

Many people look on the internet and apply for an online home mortgage loan. There should be some kinds of advantages and disadvantages while applying for these kinds of online home loans as compared with a brick and mortar mortgage loan company. Before you connect to the internet and apply for the online home loan, here are few important things that you must know.

  • Advantages of online home mortgage loan:

Application process of online home mortgage loan on the internet is not only easy but very convenient. The process has been made very simplified if compared with the brick and mortar mortgage Loan Company. You don’t have to go and meet anyone personally and answer a variety of questions that can be sometimes time consuming.

There are lots of online home mortgage loan companies and that being said, there is a tough competition between different companies to grab their customers. Customers look for some added features when they apply for the loan. Different online home loan companies try to retain their customers by offering different options like flexible payment terms and low interest rates.

The corresponding costs and fees charged by the online home mortgage loan companies are much cheaper than those who offer loans offline. People with bad or very little credit history often get approved by an online home mortgage loan company. They may charge a high interest rate on these people with bad credit history who usually don’t get approved for a mortgage when applied offline.

You can immediately check the status of your online home mortgage loan. If you get approved, you are sure to get the loan as soon as possible. There is no waiting period as compared with other companies offering loans offline. When applying for the loan online, if you are rejected by one company, you can start searching for another online home mortgage loan company.

  • Disadvantage of online home mortgage loan:

While there are so many online lenders, not everyone is doing a legit business. You should be aware of the fact that when you are applying for a loan online, you should not be paying any upfront fees before the loan even gets approved. If any online lender asks you to pay anything upfront, beware.

When applying for the loan online, you should understand the terms and conditions carefully before submitting the application form. If there is any term that you have not understood clearly and submitted the application form in a hurry, there may be chances that you will be charged some kind of high fees which you may not have read, but agreed when you were submitting the application form online. It’s difficult to find compensation for whatever damage or problem it might have caused you.

Not all online loan lenders are represented in all the US states, and so before you apply for an online home mortgage loan, be sure the state that you are in have their representative.

By financen | January 26, 2009 - 6:55 pm - Posted in Loan

It may be quite surprising to know that you can get some easy finance just with the help of your signature. This is all true and anyone can apply for a signature loan. Through these loans, you can solve a lot of your financial worries with comfortable terms and conditions. Once you have got a signature loan, you can fulfill some of your dreams like purchasing a car or a motorbike, renovation of home, consolidating all debts, take a vacation and take care of various other things.

Secured loans are of two different types. One is a secured loan and the other one is an unsecured signature loan. In secured loans, you have to show something as collateral so that you can borrow a bigger amount. The amount is approved on the basis of the equity present in the collateral and is usually in the range of $5000 – $75,000. The repayment term is made feasible and it can be spread over a period of 5 – 25 years. The interest rates on the secured loans are lower because they are backed by collateral.


Unsecured loans are available for people who do not want to attach anything as collateral either because they do not have it or they don’t want to risk it, just in case if any default in the repayment occurs. In the beginning, you can borrow an unsecured loan of $1000 and later, it can be extended up to $25,000 based on your repayment history. The repayment plan is kept short for a period of 5 – 10 years. These kinds of loans come at higher interest rates because there is no collateral attached against the loan and the lenders have to undertake a lot of risk when they offer these loans to the borrowers.

These kinds of loans are offered to all kinds of people whether you have good or bad credit. You may need a co-signor while applying for the unsecured signature loans. This way, the lender gets the re-assurance that if there is any delay in the repayment by the borrower, he can contact the co-signor.

If you are applying for a signature loan, you just need to fill a simple application form on the website. Once you have submitted all the necessary information, you will come to know instantly whether you got approved for the loan or not. Make sure that you browse through the internet and shop with different lenders so that you can find out who is offering the best deal according to your requirements.

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