Thursday, March 15, 2018

What to Know about the Different Types of Loans

We all have times where we need a little extra money to help us through a rough patch or to help us meet our financial goals. Maybe you want to buy a car but you don't have the savings to buy it in cash. You need to get a loan. Or maybe you get sick and are out of work for three months while you recover, leaving you with high medical bills but no income. You need to get a loan. Maybe you just want to consolidate your debt, so you look at one loan to pay off all your accounts.
There are a lot of reasons why you might need a loan, and there are just about as many options for loans. Here's a look at some of the most common types:

Personal Loans
Banks and other traditional lenders offer personal loans for a variety of reasons. These are loans that do not require collateral, such as a home or vehicle, to guarantee the loan. However, they do require that you have great credit. The lenders want to know that you are not a risk, so they assess your credit history to let them know whether you are likely to pay back the loan.
But what if you don't have good credit? Or any credit? You can still get unsecured installment loans. These loans only look at your income, not your credit, so they are typically easier to get than bank loans. These loans are usually awarded in lower amounts and for shorter periods of time. You wouldn't be able to borrow tens of thousands of dollars to pay back over years. Therefore, they are ideal to help you through short-term financial emergencies.

Secured Loans
Secured loans use your assets as collateral to lend you the money you need. For example, a pawn loan gives you money based on the value of your personal items, such as a personal computer, diamond necklace, or electric guitar. The more valuable the item, the more you can borrow. Some pawn shops can make loans of up to $100,000.
Auto title loans are another type of popular secured loan. If you own your vehicle, you can get a loan for up to the value of the vehicle. These loans still have to be paid back within a relatively short amount of time, compared to traditional loans. Therefore, you should only use these and pawn loans for short-term emergencies, even if you have to borrow larger amounts. Pay special attention to the interest rate, as well, which can get high.

Home and Auto Loans
Two of the biggest types of traditional loans are home loans and auto loans. These are the loans that are hardest to get. Not only are they awarded in much higher amounts, but they are also controlled by large corporations that require you jump through a lot of hoops to get approved. You have to provide all kinds of documentation about your income, your debts, and your job history. Lenders also look very closely at your credit history, which makes it very difficult to get approved if you have any kind of credit issues.
You can often get the lowest rates on home and auto loans from traditional lenders, but you'll need a stellar credit history to get these loans.

Business Loans
If you want to start a business, you will likely need some capital to get started. Exactly how much you need will depend on the kind of business you want to start and what your goals are. If you need a loan for hundreds of thousands of dollars, you should expect to go through one of the most intensive approval processes ever, including handing over a detailed business plan, providing collateral, and having every aspect of your finances scrutinized.
If you are starting a small business, such as an online business, you may be able to get an unsecured personal loan for a couple hundred or thousand dollars. You don't always need a lot of money to get started.
Understanding the different types of loans can help you determine which is the right loan for you. It also helps you understand what your options are when you need money fast but don't have great credit.

Sunday, February 25, 2018

How Does the Personal Loan Application Process Work

One of the most common loans applied for is a personal loan. Used to fund just about anything, personal loans can range in size from a few hundred dollars to several thousand. Since signing a financial contract with a lender is a huge responsibility, you shouldn’t make the decision swiftly. If you’ve never taken out a loan before, knowing a few basics like how the application process works is recommended. 

Apply Online 

Fortunately, you don’t have to wait in long lines at the bank to apply for a loan anymore. You can complete an application for an unsecured personal loan online any time of day. The application can be found by searching through various reputable lenders and choosing the one who offers the best rates and repayment options.
There are eligibility requirements that you’ll have to meet prior to applying. The application generally asks for basic identifying information like your name, address, and place of employment. They will also want to know your household monthly income as well as the status of your checking account.

Provide Documentation

The lender will need to prove that everything you’ve told them was true. They will typically ask you to send some documentation. This could include copies of your last 2-4 paystubs, a copy of your driver’s license or state id, your last bank statement, and a contact number for your immediate supervisor or human resources department. If you’re including other income to qualify for the loan such as child support, documentation will be required to verify this source.

Speak with a Representative

After all, information has been verified, a loan representative will reach out to you to give you more specifics about the loan agreement and your responsibilities within that agreement. They will discuss the amount you’re borrowing, the amount you’ll pay in total including projected fees and interest rates, and the dates the payments will be debited from your account. Once you verbally agree on the recorded line, you’re obligated to uphold your end of the agreement.

Review Loan Documents

Ask the representative for a copy of the loan documents so you can review them for yourself. Make sure that you are aware of the interest rate, payment dates, penalty, and extension fees. This would be the time to ask questions if you have any or don’t understand anything stated in the agreement. After you’ve done reviewing the documents, you can either verbally agree or sign electronically (or both in some cases).

Wait for Your Funds

Once you’ve done all the above steps the loan process is complete. The only thing left for you to do is wait for the funds to be deposited into your designated checking account. Depending on when you applied and your lending institution, you should have access to those funds within one business day.
Personal loans are convenient ways to afford things that would otherwise take years to save up for. Whether you’re dealing with an emergency, looking for some extra money before your next payday, or need spending money for a vacation, an online personal loan is the quickest solution. With minimal eligibility requirements, quick approval times, and fast deposits, you’ll be able to spend the funds in just one day.

Saturday, December 23, 2017

How to Save Money with DIY

When it comes to home improvement, there are a vast number of tasks to be completed, and a number of ideas that must be conjured from the ether. Itcan be hard work to make your dream home a reality, but I think we can all agree that it’s worth it, however, when you see your perfect dream home come to life in front of your very eyes. Therefore, we have to try our hardest to ensure that the end result is everything that we want and that we didn’t leave anything undone. It can be tricky, however, just to get started, because it’s notoriously hard to pin down what perfect means, especially as it pertains to your home. Here are some tips to help you save some money on your home improvement project.

For starters, one way to save on home improvement is by doing it yourself. The DIY approach is famous and, indeed, infamous for allowing practitioners to take matters into their own hands in order to bring their dream home to life without paying through the nose for a professional job. With some research, some tools, and some dedication, you can replicate much, if not all, of what the pros can do, and you can do it all for (virtually) free. Free, that is, aside from the cost of building materials and tools. So, why not get on down to Home Depot and grab the supplies you need in order to craft your perfect dream home.

Another way that you can use DIY to your advantage is to make repairs on your car. Much like home improvement, we offer hire pros to make repairs on our car, but with a little bit of research and the right gear, we could somewhat easily do this job ourselves. Therefore, there’s basically no excuse not to.take advantage of the reduced cost of the DIY path to home improvement and vehicle repairs. If you go down this road, there are savings beyond measure  just waiting around every corner.