A Guide to Understanding the Personal Loan Process

Let us face it, most of us need a loan at some point in our lives. Unless you are independently wealthy, you are going to find a time when you need a loan. Most of us cannot, or choose not to, put out a large sum of money for large purchases, such as a car or house. You may even need a loan for smaller purchases.

Or, you may find yourself in a position where an emergency arises and you need money fast. Those are times when you may need a consumer loan. I understand that the thought of a personal loan may be a scary one. We are going to make the process less scary with this guide. We are going to share many tips, including where to get a loan.

What Is A Personal Loan?

Let us jump right in with the basics that you should know about the personal loan process. In the most basic definition, a personal loan is a lender giving you money that you must pay back monthly for a set period of time. There are, of course, more details to that. So, let us dig into that a little deeper. A lender can be any type of lender, such as a traditional bank, a credit union, an online lender, and even a family member. It is not as simple as a lender just giving you money.

There are qualifications you must met. You need to provide documentation. A loan can be in any amount from a few hundred dollars to tens of thousand of dollars. If you need the money to buy a house, that type of loan is for a larger sum and is usually a mortgage. You make the payments monthly. The typical time frame in which you pay back the money is three to five years.

Personal Loan Process – Step by Step

The amount of money you pay per month depends on how much you borrowed, the length of time and the interest. We will talk more about interest a little bit later. A personal loan can be used for just about anything. The lender typically asks you what you plan to do with the money, but they do not use that reason as a determining factor.

Step 1. Apply For A Personal Loan?

You have decided that you want to get a personal loan, but you do not know where to start. You know you need to do some loan shopping to find the right one for you. The easiest part of the loan process is the application process. Depending upon on what type of lender you choose, the application process make vary slightly. The easiest of all applications is an online loan.

You simply fill out the online application and submit it. After that submission, the lender determines what documentation is needed. You must then submit those documents online. If you pick a more traditional lender, you have to go into the bank and fill out the application.

At a traditional bank, they have representatives that help you fill out your loan paperwork. When using an online lender, you have to fill out all the paperwork on your own. It is really a simple part of the personal loan process. It may take you more time to collect the documents for the bank than it does to fill out the application.

What Documents Do I Need For A Personal Loan?

As I stated above, the application process is fairly simple. There is always documentation that the lender asks of you. You have to provide that information within a set amount of time. This is a normal and expected part of the personal loan process. Please keep in mind that most of the information you must provide is personal and identifiable information. The first thing you need to provide is proof of identity.

This should be something that has your picture and name on it, such as a drivers license, military ID, or passport. You also need to provide proof of income. You can do this with paystubs, W 2 forms, tax forms and documents, and bank statements.

The lender may ask you to provide proof of your rent or mortgage payment and your utility bills. You should expect to provide any of this documentation within a few days notice. The lender may also ask you for proof of any retirement or annuity payouts you might be getting. You can always ask why they need the documents, but keep in mind, failure to provide them may mean you are denied.

Step 2. Credit Check

You may think that your credit score should not be a big deal, but lenders think it is. Your credit score is a large part of the personal loan process decision. So, let us spend a few minutes on credit scores. Your credit score is a three digit number that could stand between you and a new house, or car. It can, in some instances, even prevent you from getting a job. So, it’s really important and you should understand why.

It may seem like only a number to you, but to a lender it signifies how risky you are when it comes to loaning money. Credit scores range from 300 to 850. The lower your credit score, the worse your credit is considered. Anything above 700 is considered a good score. Anything below about 650 is starting to get into the fair to bad range. Most people fall into the 600 to 750 range. The reason for most credit scores dropping is late or missed payments. It is hard to get and maintain a good credit score.

It only takes one or two mistakes and your credit score decreases. If your credit score is low, you can bring it back up but it does take consistent and hard work. You should protect your credit score and do everything you can to not let it fall below what is considered good.

What If I Have Bad Credit?

Personal loan application process

If you do not know what credit score you have, you should pull your credit report and take a look at it. You want to make sure there are not any errors on your credit report. If there are errors, you should work to get them fixed. If you can fix some of the errors on your credit report, you should be able to improve your credit score. Once you know what is on your credit report, you can decide how to handle it.

If you do have bad credit, you can still get a loan. It may be a little harder and requires more work on your part, but it is possible. When you have bad credit, some banks will not approve you for a loan. Other lenders, like credit unions and online lenders, are more willing to loan you money with bad credit. The interest rate is going to be higher, so you end up borrowing more money.

The lender may require that you have collateral. A loan with collateral is a secured loan and it means that you are using something, such as a car, house, or jewelry to secure your loan. If you do not pay back the loan, or default, the lender can take your collateral and own it.

The good news is the lender gives you one last chance to bring the loan current so you do not lose your collateral. If you do not have the best credit, you need to shop around to find the best loan for you. Most importantly, read all the fine print and understand the personal loan process.

Step 3. Lender Decision

Once you apply, the lender sends your application to the underwriter. This is part of the personal loan process where you just have to wait. You do not have anything to do during this time. It can also be the most frustrating part of the process because you truly have no control. You just wait and see what happens. You may be asked for more information during this process, so be prepared.

During this time, the underwriter looks at all of the documentation you provided, checks it and double-checks it. The underwriter looks over your credit report, reviews your income and debts and does some other administrative tasks. If your loan is approved, the rest of the documents are filled out and sent back to the lender. The lender contacts you and lets you know it has been approved or denied.

This is when you confirm the amount for which you are approved. The terms of the loan are outlined for you, including the interest, your monthly payment and how many months you must pay back the loan. Up until this point, all of the numbers are tentative and considered subject to approval.

What Do Lenders Look At When Approving A Personal Loan?

Now that you have taken a look at your budget and understand how much money you have, I want to make sure you understand the personal loan process. Lenders look at different pieces of information when determining approval for a loan. Income and credit score are two of the major factors a lender uses to determine approval. Let us table credit score for just a moment and focus on income and some of the other factors. Most lenders want you to have a job, or a steady stream of income.

There are title loans that depend solely on the title of a vehicle, but we are not considering that type of loan in this situation. Lenders want to verify your employment. They ask for paystubs and bank statements. They may even want to call your employer. Not only are they interested in how much money you make, but how long you have been with your employer.

Lenders determine your stability based on how long you have stayed at one job. If you bounce from job to job, they may think you are not stable and therefore a risk for lending money. They also want to have faith that you can pay back your loan. A stable income indicates that you should be able to repay. The more money you want to borrow, the higher the lender wants your income to be.

Step 4. Sign Credit Agreement

Before you jump into a loan, it is important to understand every step in the personal loan process. One of the most important pieces of your loan is the interest rate. As I mentioned before, the lower your credit score, the higher the interest will be. Ultimately, that means you borrow more money.

Lenders use your credit to determine the annual percentage rate (APR). Interest rates can vary anywhere from 5 percent to 36 percent. Those with the best credit get loans with an interest rate of 5 percent. Those will poor credit end up with 36 percent interest.

The best way to illustrate this is with an example using numbers. If you plan to borrow $10,000 and have 5 percent interest, that means your total interest is $500. You borrow $10,500 from the lender. If the term of your loan is 36 months, that means you will pay $291.67 per month.

Now, let me show you how that changes at 30 percent interest. You borrow $10,000 at 30 percent interest, which makes your total interest $3,000. The total amount you have borrowed from the lender is $13,000. Your monthly payment becomes $361.11.

With a higher percentage rate, you end up borrowing $2,500 more and pay about $70 per month. I have shown you two extremes here to really emphasize my point. You should shop around for the best rate for you by spending the time to look for the right lender for you. This helps you save money in the long run.

Are There Fees With A Personal Loan?

When you are looking for a personal loan, always look at the fine print. Personal loans may have fees associated with them. They are part of the personal loan process and it is important to know about them ahead of time. Some of the fees of which you should be aware are origination fees. An origination fee  covers the administrative costs associated with the loan. It covers all the paperwork that occurs.

The origination fee is rolled into the loan payment. A lender may charge an application fee. This is a fee simply for you to fill out the application. This is a fee that you must pay out of pocket before the loan is even processed. If your loan is denied, you still have to pay the application fee. All other fees are charged as part of an approved loan. If your lender is charging you an application fee, you may want to find a different one. There are many lenders that do not charge this fee. There is a late payment fee.

This is typical for most bills. If you pay the bill late, there is a fee you will pay. The fee varies with each lender, so be sure to read the contract. You also want to determine if the fee increases with each subsequent late payment. In addition, when you make a late payment, it can have an impact on your credit. Another fee your lender might have is a pre payment, or early payment fee.

Sometimes, this may be called an early termination fee. The lender may charge you this when you pay back all the money you borrowed early. The bank makes money off of you by charging you interest. When you pay off the loan early, they lose the interest on that additional time. They may charge a fee to offset the money they are losing. You must be sure that you understand all of the fee associate with the personal loan process of the loan for which you apply.

Step 5. Get the MoneyMoney icon

The amount of money received can range anywhere from $200 to $100,000 depending on your credit, the lender’s loan amounts, the amount you request and more. Money can show up in your account as soon as tomorrow.

Is A Personal Loan Right For Me?

Ultimately, you are the only person that can answer that question. You must decide for yourself if you should apply for a personal loan. However, there are some factors that can assist you in making that decision. First, do you really need one and can a personal loan fit within your budget. What is your intention for the loan and is it something you really need? You should also ask yourself, does a loan payment fit into your budget.

In other words, can you afford to pay it back? You really must take a hard look at your budget. Remember, while it is nice to get a large sum of money, you always have to pay it back. Once you use that money for something else, you still have to make monthly payments. The first step is understanding your budget. You should know how much money is coming into your bank account. You also should know how much is going out of it. Then look at what is left. If it is zero, or close to it, a personal loan may not be for you.

If you are not sure about where your money is going, there are budget calculators and budget apps to help you. It is important that you understand your money before applying for a loan. The last thing you want to do is negatively impact your credit score because you miss a payment. You should also have a good understanding of the personal loan process before applying.

Which Lender Is Right For Me?

There are so many lenders on the market willing to lend money. You get emails offering you special rates. You still get mail in your mailbox with all of their special offers. Perhaps, you’ve even seen commercials on TV. But how do you know which one is right for you? There is no magic involved. The right lender for you is the one that gives you the best deal and fits your parameters.

The lender that gives you the money you want to borrow with terms that are agreeable to you. A lender that makes sure you are comfortable with the personal loan process is the right one for you. Make sure whichever lender you pick, it is a credible one. Make sure you understand all the fine print and the lender is willing to answer all of your questions.

It’s important that the lender you’ve choosen is reliable and serious. Don’t just go with the first lender you find. Do your research and pick the best option. You can always come to Loanry for recommendations. Take a look below at the options our trusted partner Fiona selected for you.

The personal loan process does not have to be scary or difficult if you understand the process. The right lender for you should make sure you understand. That lender should have everything written in plain language and be sure their process is not confusing. Any lender that seems to be hiding something, or does not want to take the time to explain things is not the lender for you. Look for another one. There are plenty of them out there. Do not feel like you are stuck with one lender. If a lender makes you feel that way, walk away.

Should I Consider An Online Loan?

I am sure that you have heard of cash loans online. You may have heard something like get money fast. Or even, fast cash in your bank account. While those are typically presented by online lenders, not all online lenders are alike. Online loans are on the rise as one of the top ways to apply for a loan. The process is super simple:

You fill out a quick application online from the comfort of your home. Then you supply the necessary documents by uploading them online. You usually get an approval within 24 hours of completing the application. Then the money is in your bank account within 24 hour of the approval. It really is the simplest personal loan process you can do. Do not get too excited, yet. Online lenders can be great. There are a few things to keep in mind.

Smart Money Tip!

One is that you can often receive a higher interest rate from an online lender. This is not a hard and fast rule, but there is a high chance. Pay attention to the bottom line. Look at the interest rate and make sure it works for you. Do not get sucked in by how fast and easy it is. Fast and easy might cost you more in the long run. Just pay attention and know what you are signing.

Applying with an online lender can be more risky. There are many people out there looking to scam people out of money. These people prey on those in desperate situations. Someone looking for an online loan might be desperate and might not be as vigilant as he might be in a different situation. Scammers now this and look for easy targets. Do not be an easy target. Always do your research.

Should You Consider a Loan from an Online Lender?

Always find out information about a potential lender. Lenders must be authorized to do business in your state. Make sure the lender has proper certification. Make sure that you can find information about the lender and do your research. Spending a few hours researching a lender can say you a lot of headache and lost money in the long run. Your financial security is worth the extra time. As always, read the fine print and understand the terms of any contract you sign.

Conclusion

We have gotten to the end of the guide to understanding the personal loan process. We hope that you have a better understanding of the entire personal loan process. There are some key points that we really want you to take away from this guide. You must know that your credit score matters and can make a huge impact on your loan and how much money you end up paying.

You need to understand how your credit score is calculated and what impacts it. It is important that you read the find print of any loan application that you sign. Make sure you are getting the best loan for you with the best rate. Most importantly, you need to make sure you can afford to pay back the loan. You need to take a hard look at your budget and determine if you can actually afford to pay back the loan.

The last thing you want to do is get a loan that you are not able to repay. That can put you in a worse financial position than you are currently. If you make your payments late, or do not make them at all, you can default on the loan. This negatively impacts your credit and lowers your credit score. Remember, protecting your credit is the most important thing you can do. You do not want to do something that hurts your credit.

Short Term Loans When You Need It Most

A short-term loan provides you with emergency funding. You have experienced a catastrophic one-time event or a temporary hardship? The loan helps you get by until additional funds are available.

Short Term Loans for Emergency Situations

Short term loans are offered by a variety of personal loan lenders with myriad requirements. They are an option when you need fast loans and cannot wait for traditional approval procedures.

Short Term Loans From Traditional Lenders

When you have good credit and need short term loans to overcome a hardship, consider visiting with traditional lenders first. If your bank or credit union can provide you with the funds, you are likely to receive better interest rates. Bank loans also enjoy more manageable repayment schedules than going through short term loan lenders.

Your bank or credit union is already aware of your financial situation. This allows you immediate access to the best loan terms possible given your assets.

In-person Application for Short Term Loans

Stop by your bank or credit union in person to speak to a representative familiar with your account or immediate access to it for research. By connecting with a local person, you also increase the likelihood of the lender reviewing all possible avenues for you to obtain funding.

A local bank often has the same parameters for lending as a national bank but can find alternate ways to match you with the appropriate loan.

Short Term Loans and Credit Scores

For example, some banks or credit unions may not lend to you if your credit score is below a certain number or your debt to income ratio is too high. However, a local bank or any financial institution specifically reviewing your credit information can assess these variables both together and independently.

If your debt to income ratio is a little high but you have an excellent credit score those two can balance each other out. Likewise, a lower credit score with an excellent debt to income ratio would suggest that you are a responsible user of credit. A bank can then determine you are likely to repay the loan in a timely fashion.

When you are speaking to a person directly, you are more likely to encounter a little more flexibility in this area. Local representatives are able to review all of this with you in person without other demands.

For example, when you call a bank’s toll-free number it often leads to a call center. This means you encounter someone who is going through the standard script in terms of loan paperwork. If you don’t check all of the checkboxes, the representative is not necessarily going to research other options available. This makes the in-person approach best.

Benefits of Obtaining Local Short Term Loans

When you are researching short term loan options, visiting with traditional lenders like a bank or credit union is also instrumental because you may find yourself able to secure a better loan.

Short term loans may be what you think is best for you because you only need money for a brief time. However, a long-term loan may provide you with the funds you need while providing financial flexibility in terms of repayment.

For example, you took out a $6,000 loan to pay all of you bills for a couple of months of unemployment or to finance a vacation. This way you may be able to repay the loan quickly. When you can, it is a solid option. However, you will be temporarily reducing your cash flow while you repay the loan in full.

If you took out the $6,000 loan for a 12-month period, even without interest, you are facing a $500 per month repayment schedule. With interest, that total is going up.

While your budget may be able to handle the loss of $500 per month short-term, you will still be paying interest charges. Often, some of the higher interest rates allowed are charged on short term loans.

By investigating a long-term option, you may be able to find a more agreeable repayment schedule.

A $12,000 loan over a 60-month period – the type of loan you would typically get for a small car purchase — would only require repayments of $200 per month plus interest.

If you are concerned about the added cost of interest, review the terms of two different loan types. The higher interest rates of short term loans can quickly add up to the same rates charged over a longer loan period.

High Interest on Short-term Loans

In both, the business and private sector, short term loans can be viewed as inherently risky. A person needs capital quickly and doesn’t have access to liquid assets.

For business loan shopping, there are many lenders for short term needs. However, they often carry heavy qualification requirements. Such as minimum assets required and years in business. Interest rates are high and repayment schedules aggressive.

When the average consumer applies for consumer loans with traditional lenders, the requirements are also strict. You will need an excellent credit score. You might also need to be able to show the ability to repay the loan.

For those in a financial bind that necessitates considering this loan type, the requirements often cannot be met. If unemployment or an alternate emergency leads to you needing short-term financing, it still pays to research the possibilities.

Payday Loan Options for Short Term Loans

A payday loan is one of the more common short term loans. It provides a loan in advance of your paycheck with the premise being that you will pay it off when you are paid next.

Payday Loan Pitfalls

The problem with payday loans for some borrowers is the likelihood of renewing the loan week after week. Each time the loan is renewed additional fees accrues, increasing the balance and making it more difficult to pay off.

When the loan is taken out, an initial processing fee is often required. Interest is then added to this processing fee to arrive at the total you must repay the lender by the due date.

After you receive your next paycheck, the loan is due. If you cannot pay the loan in full, the lender will charge a fee for renewing the loan.

Basically, the entire amount is refinanced as a new loan instrument. This means the interest accrued on the initial loan is added to your principal. New interest charges are also added on top of the processing fee.

When you are in a financial bind, it is easy to renew these loans week after week or paycheck after paycheck. The short-term financial crisis you experienced that led to the loan being necessary often can create hardships for repayment.

It is also possible the full cost of the loan equals the full value of your next paycheck. This often makes it impossible to pay off the total without neglecting other bills.

Over time, the processing fees and interest charges add up. If broken down over the cost of frequently renewed short term loans, they often add up to repayment over twice the original loan amount.

This is How Payday Lenders Make a Return on High-risk Short Term Loans

To avoid falling into this trap, avoid taking a higher loan than you need.

Develop a plan to pay back the money as soon as possible and stick to it. Even if you must refinance the loan, you can pay back a lump sum every paycheck. This lowers the balance and reduces the amount subject to additional interest charges.

When a large lump sum isn’t possible, make it a goal to pay back all accrued interest, the refinancing fee and a portion of the balance. This ensures your total is always going down.

Short Term Loans From Local Lenders

A variety of local finance companies as well as web-based lenders also focus on the short term loan market. These chains specialize in installment loans at a low dollar value.

The loans may include an abbreviated repayment period. For example six months, or lengthier terms in excess of one year. Like payday loans, short term loans offered by these entities make money through high interest.

Short term loans generally target a low-income demographic with limited access to other financing options with more generous terms. This increases the possibility of default for the creditors. Without charging higher interest rates to those who repay and those who are currently repaying but will default, the enterprises would not be self-sustaining.

Qualifying for Short Term Loans From Direct Lenders

Most short term loans, particularly those offered by chain lenders, have well-established terms. Those will require some form of collateral. For many people, this means allowing the company to place a lien on a paid for vehicle, piece of equipment, or parcel of property.

The collateral provides the lender with some tangible property or asset the lending outfit can attach itself it to for collections. If you default on a personal loan, the collections process would include seizing the item and forcing a sell to cover the terms of the loans.

The qualification will not require the high credit scores other lenders require or a specific debt to income ratio. The repayment of your other debts will be considered heavily. The loan company uses this to determine your likelihood of repaying the debt in a timely fashion.

Paying off Short Term Loans

In addition to collateral, many providers of short term loans will want to connect to your bank account to withdraw monthly or weekly payments. In this scenario, it is possible you will face garnishment of your bank account when you fail to pay.

Whether or not the lender is connected to your bank account, when your account goes into arrears, they can tap it. As part of the collections process, a loan provider can go through the court system to access your bank account or paycheck. The bank account or your checks are then garnished until the terms of the loan of fulfilled.

Benefits of a Short Term Loan

When you possess the ability to quickly repay a short term loan, the instrument is capable of helping you out of a financial bind quickly.

Most payday lenders and small loan providers are skilled in making quick eligibility decisions. Many also provide funds immediately in the form of a bank direct deposit or via check.

For an emergency trip home, imperative dental work or a necessary medical procedure, this option will provide you with the money you need quickly. When time is of the essence, a short term loan for an emergency can get you on track as soon as possible.

As long as you possess the ability to repay the loan quickly, the additional fees will be easily absorbed by your budget. While the cost may be higher than other loan types, convenience may be more important.

Should You Use A Personal Loan for An Emergency?

How to Find the Best Deal on a Short Term Loan

Do you want to find the best deal on a short term loan when you have the time to research? Firstly, review your credit score and your existing liabilities and income. A credit shop or site with free access to your credit report can help.

When you have a credit score of 640 or above, you are likely to qualify for a range of short term options. Then choose and pick the best one. An even higher score will open the possibility of a long term loan you can spend more time repaying while your cash flow improves.

For scores less than 640, the options start to narrow. However, an established credit history and solid income can help you negotiate with a local lender.

At 600 and under, you are largely looking at short term loan specialists and payday lenders.

Researching Short Term Loan Options

To find the best option for you based on your current financial situation, consider using an online loan aggregator. These sites will take your basic financial information and present a variety of loans, including cash loans online, you could be eligible for.

Many sites will not require a hard pull of your credit report to provide a glimpse of the options. Instead, the individual lender you select will pull your report when you fill out a final application.

Look at the possible interest rates for each loan, the repayment schedule, and what your monthly or weekly payment will be. Pick a loan that provides a low cost of borrowing while keeping payments you can manage until your financial situation improves.

Credit Card Options

If your credit is okay, you may also consider utilizing a credit card as an alternative to a short term loan. While most credit cards maintain high-interest rates, the rates are usually competitive with those charged by short term lenders. They are also better than the higher rates and fees charged by payday lenders and cash loans based on your car’s value.

New credit cards often feature fixed or low-interest rate offers on introductory charges. They also routinely issue checks with promotional financing featuring similar terms.

Utilizing such an option provides you with the repayment flexibility of a long term loan. You can make lower monthly payments while you need to focus on your finances. After you move past your emergency, you can focus on paying the credit card off in full.

A benefit of this is the ability to improve your credit score. And gain access to a larger credit limit capable of helping you out in a future emergency.

Unlike qualifying for a short-term loan, you can keep a credit card you maintain a solid repayment history with for years and use it repeatedly. If you needed another short-term loan in the future, it would be necessary to reapply and meet all of the original terms.

Moving Forward From a Short Term Loan

By actively focusing on paying off a short term loan, you will suffer no financial repercussions for pursuing this option. In fact, a lender who reports your payment history to the credit bureaus can end up boosting your score for the long term.

This means you will qualify for more, better loans in the future. Instead of taking out a short-term loan to fix a clunker car or buy a used vehicle, you may find yourself qualifying for a full auto loan or leasing arrangement.

The key is to use any offer of credit you accept or any loan you take out to build a history of responsible usage. Avoid late payments and added fees, and you will benefit if you use a personal loan wisely.

After you pay off the loan entirely, work on other ways to build up your credit, such as responsible credit card usage, to expand your loan options for the future. Establish a savings account when possible to build a cash fund you can tap when the unexpected happens, and develop a cash flow that will allow you to help others in the future.

Bad Credit Personal Loans Not Payday Loans: Find Here

Bad Credit Personal Loans Not Payday Loans
Bad Credit Personal Loans Not Payday Loans: Find Here

For those of us who are seeking out personal loans without the best credit, it is better to consider bad credit personal loans not payday loans. It is important to understand the difference between the two types of cash loans online. Don’t confuse them with those that can be considered emergency cash loans.

What Is a Bad Credit Personal Loan?

A bad credit personal loan or cash loans bad credit are financial options for those who seek the services of a traditional personal loan with less than fair credit. These loans have the ability to reach a loan amount of five thousand dollars. They can be paid back over the course of two or three years. In most cases, these loans are used to cover much larger expenses.

For instance, home repairs or major car repair expenses that exceed a thousand dollars. Those require a loan that can cover the cost of the need up front and at once. For larger purchases, bad credit personal loans not payday loans are the better options.

There are several factors used to qualify a person for a personal loan. They include the following:

  • Credit check
  • Age
  • Income verification
  • Debt to Income ratio

It is important to expect all of these factors to play a percentage in determining whether or not you qualify for cash loans bad credit included. Lenders use these factors to not only determine your eligibility for the loan. They also calculate the interest rate you are awarded. Then it influences the term for repayment. The lower the credit score the higher the interest rate is in most cases. Expect additional fees to be associated with these personal loans.

For example application fees and penalty fees for repaying the loan in a shorter time span than originally agreed. When you pay the loan off earlier, you are benefiting yourself financially. However, these companies lose interest that they were expecting to generate from granting you a personal loan.

What Is a Payday Loan?

A payday loan is different from a bad credit personal loan. They are also referred to as emergency cash loans and cash loans online. A payday loan in terms of amount and term limit is much shorter than the personal loan option available to those with less than fair credit. Most payday loans allow one to two periods to pay back the loan that was borrowed.

The amount that is often borrowed is less than a thousand dollars. It is used to essentially have ends meet when a check may be shorter than the one coming behind it. In fact, many of these payday loans do not even refer to a credit check during an application. They require more on income verification and the amount that you generally make in order to know what to expect on the next payday when the loan will be paid with interest.

Because these payday loans have such a small term on repayment, any person who is unable to pay back the loan in the allotted term may extend it to an additional pay period. However there will be an additional fee applied in addition to the interest that will generate on the remaining balance. The interest on these payday loans can be up to and exceed 100% of the loan amount. For this reason, it may be difficult to repay the loan in a one or two payments.

Why Should You Opt For a Bad Credit Personal Loan?

When you are comparing your loan options, you should choose bad credit personal loans not payday loans due to a variety of reasons. Payday loans may not impact your credit directly. However they can be a financial strain that depletes all of your finances.

Especially if you are unable to quickly repay the loan. Because of the way the interest is generated and the different fees that can be tacked on to a payday loan, these companies can make close to 200% on their loan in some states. Even more depending on the state allowance of loan interest. This alone is why bad credit personal loans not payday loans are a better option available.

With bad credit personal loans, you have the ability to stretch out your repayment term. Making it a longer obligated to pay back the borrowed amount, but also much smaller monthly payments that do not cause significant financial distress. When monthly payments fit into your budget, choosing bad credit personal loans not payday loans are the right options.

Where Can You Find A Bad Credit Personal Loan?

Now that you have decided that you will seek out bad credit personal loans not payday loans, your next step is to determine where these loans are located and how to search out the right option for you. These personal loans can be found at the following:

  • Bank
  • Local Finance Lender
  • Online

Local banks offer personal loans for customers. They can have a number of uses. However, there is often a credit requirement associated with bank loans. For those with anything less than fair credit, most bank personal loans are not as easy to obtain.

Local finance companies can be found in almost all downtowns. These lenders are available for customers with all credit scores. They will offer personal loans with scheduled monthly installments. Some of these lenders offer customers the ability to secure their loans with collateral in order to obtain a much smaller interest loan.

Maybe you would like to check out the cash loans online? Using an online lender search service, you have the ability to choose your personalized loan be reviewing numerous offers presented. Minimal information is required for a pre-approval to determine what companies will offer you the cash you need and provide both their term limits and interest offers.

Conclusion

When you are considering the best options available for your arising expenses, the soundest financial option to consider is the bad credit personal loans not payday loans. Of course high interest is a variable in both options. However it is essential to remember that paying that loan back can leave someone financially strapped until the debt is paid.

While a payday loan may not affect your credit initially, it will affect your wallet. It might then make the better option to be the personal loans available. Even those designed for customers with bad credit. These personal loans allow customers to handle the expenses needed and maintain financial security while paying back the loan.

Keep in mind that payments made on time to your personal loan lender will reflect positively on your credit report. Remember these pros and cons when making the choice of bad credit personal loans not payday loans. 

5 Ways to Improve Your Chances of Getting a Personal Loan

improve your chances of getting a personal loan

Getting a personal loan can pay for a number of different things. Are you paying for a wedding? Do you have some emergency expenses coming up? Do you want to make some improvements to your home? Are you moving and need some extra money for moving expenses? Do you want to take your dream vacation? These and more are just some of the things in life that can be helped by having a personal loan.

How to Improve Your Chances to Get a Personal Loan

If you are looking at getting a personal loan, there are ways to improve your chances of getting a personal loan with just a few tips. If you have time on your side, start doing these things now before you begin personal loan shopping.

Check and Improve Your Credit Score

Your credit score for a personal loan matters, so one of the first things you need to do is check it. If it’s been a while since you checked your credit score, then bite the bullet and do it now, since you may need some time to improve things. In general, you will need a score of at least 660 to applyCredit Score Management for a personal loan. FICO, a popular credit score bureau, has credit scores that run between 300 and 850.

If your credit score is too low, then lenders will think you run too much of a risk to apply for a loan. If you are able to think ahead and have some time before applying for the loan, start doing some things now in order to improve the score.

Pay bills on time and in full if you can. Avoid opening any new lines of credit before you apply for the loan, since doing so can immediately drop your credit score, even if it is temporary. Don’t close any credit cards either, even if you don’t use them. It looks good if you have a longer credit history.

Pay Down Existing Debt

Many Americans have debt, so don’t feel alone. Paying off existing debt can help you get better terms on your personal loan. This also helps improve your chances of getting a personal loan by helping your credit score. To help pay down existing debt, start with creating a budget. There are personal finance tools you can use, such as Mint.com, but you can also just use an Excel spreadsheet in order to track income and expenses.

Look at categories and see where you can cut costs. There are different ways to pay off debt and some say to pay off the most expensive debt first. Others suggest paying off the smallest debt first because it’s more motivating to see debts get wiped out. Whichever method you choose, start paying more than the minimum balance in order to make a dent.

Make weekly payments instead of monthly payments in order to start paying it down faster. You may also be able to take advantage of balance transfers. Pay attention to the terms so that you don’t get into more debt by accidentally accruing a higher interest payment. While you are paying off your debt, try not to get into more debt by halting credit card spending.

Remove them from your wallet and don’t take them shopping with you so you can avoid being tempting. Everyone loves some retail therapy but now is not the time. It’s also a good idea to delete your credit cards from online stores. It’s so easy to buy that shirt on sale when your credit card information is already stored. Changing daily spending habits can help prevent you from getting into further debt and also helps pay off existing debt.

Only Apply for the Amount You Need

Before you begin to shop personal loans, determine what you are going to use and ask for that amount only. By requesting more than you need to reach the financial goal, it can be risky to lenders. The last thing you want to do when trying to improve your chances of getting a personal loan who looks risky to lenders.

Not only will a larger loan make you look riskier, but it will also give you higher loan payments that can be difficult to pay back. You also need to consider your other financial commitments when determining the amount you need for your loan. You have to pay back your loan, but you can’t just stop paying other payments, such as your mortgage or student loans.

 

Guide To Personal Loans

Find a Lender Using a Free Online Service

Finding the right lender will help you make sure you can meet the requirements for a personal loan. Lenders online will disclose the minimum requirements for income and credit scores, and if they will offer options, such as using a co-signer. Using a free online lender finder service to will save time when personal loan shopping.

If you meet the requirements, then you can get estimated terms and rates and pre-qualify for financing. You may be worried that by pre-qualifying you will have a dent in your credit score, which you are trying to avoid. However, don’t be worried about this. This type of credit inquiring will only trigger a soft credit pull. This means that there isn’t an impact on the credit score. By pre-qualifying with different lenders, you can compare terms and rates and find the best loan for your needs and budget.

Consider a Co-Signer

If time isn’t on your side and you need to improve your chances of getting a personal loan now, then consider a co-signer. A co-signer with better credit can increase your chances of approval. This is because a co-signer can also be held responsible for paying the loan and the banks want to see as little risk as possible. It’s important to have a conversation with the co-signer to make sure they are aware of the risks if something were to happen.

Since income and credit scores are two important factors when trying to get a personal loan, finding someone with a better credit score and a higher income that can co-sign your loan increases your chances of approval.

Various Options Other than a Personal Loan

If a personal loan isn’t an option or you need more time to improve your chances of getting a personal loan, then you can consider some other options and what you need to know to get money fast. Some have requirements similar to getting a personal loan.

Credit Cards

It could be difficult to open a new credit card if you have a bad credit score, and it’s one of the things you shouldn’t do if you are looking to increase your credit score for a personal loan. However, this can be another financing avenue if a personal loan isn’t going to work for you, or you need more money than your personal loan will allow for.

Short-Term Loans

A short-term loan needs to be paid back within a few months or less than a year. Traditional bank loans usually allow years to pay back. Short-term loans can be used when there are minor cash flow problems and for emergencies. The same rules apply for short-term loans about not borrowing more than you can afford and avoid missing any payments.

Line of Credit

A line of credit is a preset amount of money that a credit union or bank will lend you. This can be drawn from the line of credit when you need it, up to a certain maximum amount. You then pay interest on the amount you borrow. You only pay interest on the borrowed funds and then once you pay it back you can have that amount available to you again. This type of financing is more flexible, as long as you stick to the terms. A line of credit is usually unsecured, so you don’t have to put anything up as collateral.

Secured Loans

A secured loan will allow you to put up a valuable item as collateral. This will eliminate some of the risk for the lender. By eliminating some of the risk for the lender, this allows you to get some better rates and terms than with an unsecured alternative. It’s important to understand that whatever borrowers put up as collateral, they risk losing if they aren’t going to pay the loan. Not only do they risk losing their collateral, but it can also damage any future financial standing. Secured loans can also be referred to as a title loan or home equity loan.

Various Types of Personal Loans to Get Money Fast

Conclusion

Once you have worked though the ways to improve your chances of getting a personal loan you can start the process. Getting fast cash loans online will allow you to find more competitive rates and give you more options when you are shopping around. You never know when something in life could come up and you need a personal loan. Following some of these tips throughout your daily life can help you get a personal loan when the time comes and you need one.

When You Should Get a Personal Loan: Smarter Finance

When people get into difficult financial straits, it makes sense to reach for a lifeline. But knowing when you should get a personal loan can be more complicated than just swiping the credit card and kicking the payments down the road.

When is the Right Time for a Personal Loan

Among the most significant benefits that short term loan lenders offer are options to get on a consistent repayment plan at an affordable interest rate. Unlike credit cards, personal installment loans allow borrowers to package different types of debt. And secure stop-gap funds when emergencies arise.

These products can consolidate substantial debt under one roof to unburden monthly bill-payers, so you can better enjoy a comfortable lifestyle. But before you shop personal loans online, make a full review of your situation and make a strategic decision about when you should get a personal loan.

When A Personal Loan Makes Sense For Debt Consolidation

Small personal loans have become increasingly popular over the last 10 years for strategic debt consolidation. Rolling high-interest monthly bills such as credit card balances and other debt allow everyday people to save money on interest and streamline budgets.

But the fact that it can ease financial stress does not necessarily mean cash loans online are the best solution. Knowing when you should get a personal loan also involves planning and immersing yourself in a financially stable situation and mindset. Taking out emergency cash loans to fix short term financial crunches could exacerbate long-term deficits. That’s why it’s important to consider the following in order to know when you should get a personal loan.

Personal Loan Money Tips

  • Create A Repayment Budget: Packaging substantial debt into one monthly installment can only be a successful financial strategy if you are prepared to make consistent payments for the life of the debt. Personal installment loans require due diligence that includes calculating income versus spending. Be reasonably sure you can meet all of your financial obligations, or you might sink deeper in debt.
  • Smart Debt Management: Before selecting a personal loan product online, ask yourself pertinent questions. For example, how long would it take to pay off a loan realistically? How much monthly flexibility do emergency cash loans offer given the accumulated debt? Select a product with terms that allow you to streamline and successfully manage short- and long-term debt.
  • Control Spending: One of the keys to intelligent debt consolidation entails getting spending under control. Emergency cash loans can be fantastic vehicles to regain your financial health. But a steady diet of lower expenditure may also be in order. Without critical self-control, cash loans online might only put off a crisis.

Knowing when you should get a personal loan means answering these and other questions about individual finances. Short term loan lenders have a variety of products that can include obtaining a loan for medical bills to packaging a variety of liabilities. But before diving in, be reasonably sure you are ready to swim.

What to Know When You Refinance a Personal Loan

It may not be common knowledge, but refinancing applies to more loan products than simply home mortgages. Buying a home ranks among the largest purchases in many people’s lives and a good place to take advantage of low-interest rates when you are able. But people who get personal loans online also have refinancing options available.

When rates are low, or you find yourself in a better borrowing position, you may be a strong position to renegotiate. Keep in mind that short term loan lenders compete over customers. The fact that you put yourself in a commanding position to shop personal loans online means a lender may be willing to reduce interest rates, improve loan terms, and waive fees rather than lose your business.

Because many lenders review and approve application online, the process requires little effort on your part. And, don’t be shy about picking up the phone or communicating through online customer service windows to emphasize your improved financial situation. Consider the ability to refinance a financial feather in your cap.

Types of Personal Loans that are Good for Specific Reason

As I stated earlier, there are a wide range of personal loan products available to people interested in consolidating debt and short-term loans to bridge a financial gap. Experienced short term loan lenders may consider these and other items credible reasons to apply such as the following.

Loan for Medical Bills

Often referred to as “medical refinance,” the high cost of insurance and procedures has prompted compassionate lenders to create loan products to help people through a health care crisis. Products may include secured and unsecured medical loans as well as medical credit cards among others.

Emergency Cash Loans

There are numerous issues that put everyday people in a financial pinch. Things from severe weather storms that damage a home to a temporary work stoppage can create short-term setbacks that require short-term financing. Online lenders understand the need for stop-gap cash to avoid taking a credit hit.

Should You Consider a Loan from an Online Lender?

Automobile Loans

Many dealerships provide customers with loan application services. But car salesman and their lending network are not always the most cost-effective option.

That’s because the person selling you the vehicle has a vested interest in you buying the most expensive vehicle possible in many cases. Sales staff members are required to meet quotas, and they often improve their commissions and bonuses based on sales numbers. When automobile buyers shop personal loans online, you can weigh low-interest options and against a dealer’s in-house deal.

It’s also important to keep in mind that auto loans are not one-size-fits-all products. They tend to have considerable flexibility regarding the repayment schedule, fees, and even interest rates. The best way to know when you should get a personal loan is to take the time to conduct due diligence. Review online lending resources and makes sure the monthly installment fits into your budget.

Good Credit Matters To Short Term Loan Lenders

If the adage that “cash is king” holds true, then good credit is a knight in shining armor. Whether you are working to get a loan for medical bills or consolidate monthly bills, enjoying good credit can help lower interest rates and save money.

Short term loan lenders commonly employ a tier pricing policy when borrowers have good credit scores. Borrowers who cross certain numeric thresholds may be able to access rates enjoyed by those with top-flight credit scores. These are some websites everyday people can use to review credit score standings before applying for cash loans online.

  • Creditry: Offers a general view of your credit score but not necessarily a FICO score. It can provide a rough estimate.
  • myFICO:  Provides a credit score calculator arrived at through the answers to personal finance questions. If you answer accurately, it may also provide a rough estimate.
  • Experian: For a fee as allow as $1 this site provides a credit report and monthly monitoring.
  • Equifax: Provides a reasonably accurate credit score and report for as low as $12.

By considering these resources, potential borrowers and refinancing customers can draw some general conclusions about when you should get a personal loan based in available interest rate options. Knowing your credit score and seeing a credit report also gives potential borrowers an opportunity to fix deficiencies. And improve their borrowing leverage before applying.

Finding a Lender Using Loan Shopping Tools

One thing that is abundantly clear to me is that securing a personal loan has evolved considerably in the technology age. Lending portals offer insightful tools to shop personal loans and allow you to settle on the best option to suit your financial needs. Take the time to weigh your options about when you should get a personal loan that best improves your financial health and wellbeing.

You’ve Done the Research to Compare Personal Loan Lenders

Once you have taken the time to work through possible loan options, take the next step and compare the interest rates offered by competing lenders. Keep in mind that even slight differences in interest rate percentages turn into significant dollars over the life of a loan. At the end of the day, that’s your money.

How To Get A Personal Loan With Good Credit (690-739)

A respectably high credit score opens the door for a wide range of short term loan products. The flexibility of short term loan lenders helps good, hard-working people overcome unexpected shortfalls and put them back on their feet. People who secure funds online are finding the process easy, streamlined, and rewarding. These are three basic steps to get a personal loan online.

  • Shop Personal Loans
  • Connect To A Lender
  • Check Out and Wait for Approval

It may seem unbelievably simple, but securing a loan online is almost as easy as making a purchase on Amazon and the delivery time tends to be faster.

Use Free Personal Loan Calculator to Figure Out What You Can Afford

Online loan calculators have proven invaluable to potential borrowers in helping to decide when you should get a personal loan. Brick and mortar bank lenders tend to handle the paperwork for you and highlight the end figure. In this day and age, that practice simply does not hold water.

You have every right to review potential lending options and weigh them against repayment abilities. Consider working with an online loan calculator to get a clear picture of your lending options.

Should You Consider a Loan from an Online Lender?

The surging economy and changes to lending regulations have opened up significant revenue streams for everyday people to utilize. The lending industry may be more competitive than ever before. A loan from an online lender streamlines the process of applying for personal and various other types of loans. That spells good news for borrowers. But it also begs the following question:

Is a Personal Loan Online a Bad Idea?

The answer is absolutely not — IF — you work with to find a credible loan from an online lender that understands emergency cash loans. And consolidation goals are reasonable ways to enhance credit scores and improve lifestyles. These are some of the common questions potential borrowers ask. And why cash loans online may be in your best financial interest.

Can I Get a Loan if I Already Have One Out?

When lenders see that you have a product such as a payday loan that remains outstanding, they are likely to be hesitant to offer you a second option. But that does not necessarily leave you out in the cold.

Some payday loan organizations are willing to extend the borrowers’ emergency cash loans under certain circumstances. Although this may appear to solve your short-term financial challenge, it could prove detrimental to your long-term credit health. That’s because a loan from an online lender may mean excessive interest rates that put a heavy burden on borrowers with immediate bills to pay.

A more measured approach to overcome temporary financial obstacles may be to get a personal loan online that puts the necessary cash in your pocket and extends the time limit of repayment. This plan can lower your monthly liability. Taking on two separate payday loans at the same time is likely to be a recipe for disaster.

What are the Best Places to Get Personal Loan Online?

One of the hesitations that some borrowers struggle with when applying for cash loans online is knowing the best resources. Worrying about online scams is a legitimate concern. And applicants may be best served by working with an experienced lender with an excellent reputation.

Do Personal Loans Online Hurt Your Credit Score?

The short answer is: No. In fact, cash loans online are equally beneficial to building a robust credit history as getting one from a brick-and-mortar bank. But for a personal online loan to help augment your credit score, you would be wise to focus on three things.

  • Positive Payment History: By making payments to your loan in a consistent and timely fashion you will likely help improve your credit score.
  • Pay More Than The Minimum: Along with making the monthly installments on time, credit scores can be positively affected by exceeding the minimum due or making more than a single payment in a given month.
  • Go Low: the 30-percent threshold is considered a significant milestone to reach. Paying yours down below that mark ASAP can help push your credit score up.

For those who get a loan from an online lender with credit score improvement in mind, it’s essential to maintain good repayment history across the board. That’s one reason many borrowers secure a loan that consolidates all of their debt into one secure monthly payment.

Personal Loans Online for Bad Credit

When you think about the words “cash loans bad credit” together, that doesn’t generally raise people’s hopes of securing money to pay short-term debt or build a credit score that tops 700. But personal loans can be a real solution for people who have encountered some financial hardships and are ready to turn things around.

Because personal loans are a type of installment debt, it does not impact your score the way high credit card bills prove detrimental. As you reach or even exceed a credit card’s limit, that tends to have an adverse effect on your score.

Another welcome aspect of an online personal loan is that it brings diversity to your credit portfolio. Having a mix of credit cards, auto loans, mortgage payments, and other repayment history tends to improve your credit position. When these products are paid off from the resources of a personal loan that consolidates them, that can have a profound effect on your financial health.

How Long Does it Take to Get a Personal Loan Approved?

Despite the fact that we are living in the technology age, many people still walk into bank branch offices and apply for loans. Whether that notion comes from old habits or not realizing that there are excellent online lending resources remains to be seen.

While walking into a chain bank allows you to meet a representative in person, the approval process from traditional banks often takes longer. It seems almost counterintuitive that an established lending institution would make you wait for emergency cash loans longer. But that is generally the case. Coupling the approval wait time, physical banks also tend to be slower about transferring the funds into personal accounts.

In many respects, banks have more similarities to dinosaurs than today’s option for a loan from an online lender. A loan from an online lender is an easily accessible personal loan. For this type of loans, you can fill out and submit a short form from most electronic devices.

Think about having your morning coffee, applying for funds, having an answer before lunch, and money in your account by day’s end in many instances. What is truly mind-blowing about cash loans online is that you never had to drive to the building or wait in line. They seamlessly fit into your day.

How can I get a Personal Loan up to $10k?

What is the Best Reason to Give when Applying for a Personal Loan?

When applying for a loan from an online lender, it’s in your best interest to provide an honest answer. That answer should relate to a legitimate financial reason. This will help avoid forcing a decision-maker to reject your application. These are among the common reasons applicants provide.

  • Consolidate Debt: Paying off credit cards and other debts and putting them under one roof can be viewed as a good financial move by online lenders.
  • Pay Off Credit Cards: A similar consolidation effort, transferring credit card debt to a single monthly loan payment often makes good financial sense.
  • Wedding Funds: Major life events may even cause the need for loans for wedding expenses. This is becoming more common and understandable reasons lenders review on a regular basis.
  • Home Improvements: Online loans can prove more beneficial than home improvement loans from traditional banks. Decision-makers see this type of reason regularly.
  • Medical Bills: Health insurance has become a national problem. And unexpected surgeries, dental procedures, and others sometimes require emergency cash loans.

Final Thoughts

There are numerous reasons that lenders see as legitimate and wise financial decisions. It’s important to be transparent and demonstrate an ability to repay the personal loan in a timely fashion.

I Can’t Pay Back My Personal Loan. What Happens Next?

In life, there are lots of sources of stress. Right at the top of the list is when someone says they “can’t pay back my personal loan”. Often, money is one of the first things that people think about when they wake up in the morning. People rely on their money to put food on the table, keep the lights on, provide housing for their family, and even send the kids to school. Because of this, many people rely on a personal loan to help finance these big-ticket items. Typically, a personal loan comes with a monthly payment plan and an interest rate. Unfortunately, circumstances can change and some people might have trouble paying off their personal loan.

There are many reasons why people might have issues sticking to their payment plan. Life is unpredictable and people can fall on hard times financially. In some cases, a loved one might fall seriously ill and the medical bills can start to pile up. In other cases, an individual could lose their job, leading to a serious drop in income. Sometimes, people have taken out a personal loan with an adjustable interest rate. When the interest rate goes up, people might not be able to afford the new monthly payment plan. Because of this, many people ask, “what happens if I can’t pay back my personal loan?” There are a few important points that everyone needs to keep in mind.

Let’s look at the worst-case-scenario before we go deeper into some of your questions around Credit and consequences.. If you stop paying on a loan, you eventually are in default and will require taking steps outlined below. The reality is you’ll have to pay more money in penalties, fees and interest charges that will continue to build up. Often you can see this when logging into your lenders online system. Your credit scores will also take dip.

What Happen If Somebody Can’t Pay Back Their Personal Loan?

Nobody decides to take out a personal loan assuming that they aren’t going to be able to pay it back; however, circumstances can change quickly. You might have issues keeping up with the monthly payments and think, “I can’t pay back my personal loan.” When this happens, there are several things that you might notice. These include:

  • Receiving both regular and electronic notices about payments that are either late or missing
  • Warnings that the loan company may send the loan to collections
  • Threats that people might have their paychecks garnishes, their credit score could go down, or that they could lose their house

These notices can be scary and you might be wondering what you should do. The most important thing for everyone to keep in mind is that they should not simply ignore these warnings. They are very real and serious consequences could occur. Therefore, the first step is to call the lender. Remember, loan companies are people as well. They understand that people can fall on hard times financially and are often open to discussing the payment plan. They need you to repay the loan in order for them to get their money. Because of this, they will often try to make this easier for you to stay on track.

What happens if I miss a loan payment?

In addition to not being able to pay back a personal loan, there are other problems that you might notice. A common issue that people face is missing an occasional payment. Let’s face it. Your life is busy. There just isn’t enough room in the head for everything that needs to be done on a daily basis. Some of the reasons why people might miss a loan payment (in addition to routine forgetfulness) include:

  • The money might not be in the bank account when the payment is drafted
  • The check gets lost in the mail
  • The lender misplaces the records of the payments

When people get the notice that they have missed a payment, they might feel worried. What is going to happen next? Am I in trouble? What if I can’t pay back my personal loan? The good news is that you aren’t in trouble immediately. Of course, when the letter arrives, try to pay the missed payment immediately. Your credit score could suffer if the payment is more than two weeks late. The warning from the lender might also come with the threat of defaulting the account. This typically happens if the payment is more than 60 days late. Therefore, try to pay any missed payments immediately. This will prevent your credit score from dropping and save your account from defaulting.

Various Types of Personal Loans to Get Money Fast

What Should I Do if I Can’t Pay Back my Personal Loan?

In other situations, someone might miss a loan payment because they cannot afford the loan. As the missed payments start to stack up, people may start to think, “I can’t pay back my personal loan. What should I do?” The first step is to take a deep breath and calm down. There are options available. The first step is to stop spending frivolously. Think before you swipe the card and budget appropriately.

Make sure that there is money in the account to pay back the personal loan. If not, the interest will start to rise and people might find themselves in a hole that they cannot get out of. After people use their personal loan to pay off credit card debt, try to close some of those credit card accounts to avoid unnecessary debt. Lastly, when it comes to paying off the personal loan, communicate with the lender. They might be open to renegotiating the terms of the personal loan. Remember, they don’t want you to default on your loan, either. Otherwise, they don’t get paid.

Can You Go to Jail for Not Paying a Personal Loan?

If people think “I can’t pay back my personal loan,” they might be wondering if they could go to jail. After all, it seems like someone is going to prison every day for some financial scandal. The good news is that it is highly unusual for someone to go to prison for not being able to pay back a personal loan or pay back a debt. Yes, this used to be common hundreds of years ago. In this day and age, people typically go to prison for debt if there is another crime committed with it. For example, if someone is in debt because of fraud (such as a pyramid scheme), then he or she could be sent to prison. For a simple personal loan and a few missed payments, prison is not an option.

What is the Grace Period on a Personal Loan?

The grace period on a personal loan will vary depending on the type of loan. The grace period is the time between when the bill arrives and when the payment is due. Important points include:

  • No interest accrues during the grace period
  • The grace period varies but typically falls between 2 and 4 weeks
  • A grace period is not a moratorium

In a moratorium, the lender has given you permission to stop paying the loan for an extended period of time. Typically, the lender does this due to extenuating circumstances that create a financial hardship. If you feel like you need a moratorium, communicate with the lender.

How much does one late payment affect credit score?

For people thinking, “I can’t pay back my personal loan,” a common question is exactly how much their credit score drops with a single missed payment. The simple answer is that it varies. It depends on someone’s past credit history, their current income, any other debts, and a number of other factors. In general, people with average to good credit scores in the 600s or 700s should expect their credit score to drop by as much as 150 points. This is a large drop that nobody wants to see on their credit score.

In Conclusion: Ask for Help

Money is a tremendous source of stress for many people. Families rely on a steady income to pay their mortgage, buy groceries, and to pay for their kids’ education. In many cases, families need to take out personal loans to make this happen. There are many different types of loans and it is important for everyone to ask for help finding the right loan. There are personal installment loans, cash loans online, and even cash loans bad credit. In many cases, it is possible for a family to get personal loan online. With this in mind, everyone should ask for help when it is needed. Paying back a personal loan is a challenge and nobody should ever feel alone during this process.

Loanry is here to help. We partner up with Fiona to connect you with reputable lenders from the industry in a matter of seconds. These lenders will honor their part of the deal and you can rest assured that you will not be scammed. Additionally, you can use our money tools to shop for loans, and to make sure that you don’t get yourself in the situation to not be able to pay off the loan.

How We Fight: How to Get Help Paying for a Lawyer

How to Get Help Paying for a Lawyer

When your researching how to get help paying for a lawyer, but don’t have the money to pay their hourly fees, there are other options. Most attorneys charge a retainer fee and then hourly fees after that. If you don’t have the money for the retainer, ask the attorney if they will allow you to pay on a contingency basis. This means you won’t have to pay anything upfront. Instead, you will pay the attorney a percentage of whatever you are awarded as a settlement.

Emergency cash loans may also be an option if your attorney requires the retainer fee before they agree to take your case. There are a few ways to know how to get help paying for a lawyer. Let’s look more into loan options.

What is a Legal Loan?

Applying for cash loans online may be the best way to pay for an attorney if you need immediate help. Most attorneys charge by the hour and time will add up rather quickly, especially if you have already paid the retainer. Getting a legal loan is a good way to get the money you need in the right situation. If you can get a legal loan to cover the retainer and the attorney agrees to accept contingency fees, then you won’t have to worry about paying by the hour. Legal loans work best for cases that are fairly simple and don’t require a lot of time or effort on behalf of the attorney and their staff.

Can I Get a Loan For Attorney Fees?

If you want to try and finance your lawyer fees, shop personal loans to see how much money you Lawyer Loanwill qualify for. It’s important to have a good idea as to how long your case may last. This will give you a good idea in terms of how many hours you may have to pay for. You will also need to determine if you are going to include the retainer fee in the amount you borrow. Before you make the final decision to borrow money for any reason, you need to carefully evaluate your needs. Figure out exactly how much you need. Never borrow more than you can payback. While lawyer fees can be expensive, many are willing to work with you on payments if you can at least cover their retainer.

How does Paying a Lawyer Work?

You can pay your lawyer in many ways. The most common way is to pay an upfront fee. This is called a retainer. The retainer covers the lawyer’s time for several hour’s worth of work. Once that money has been used, you will be charged an hourly rate. Once the hours start to add up, so will your fees. You can request that the attorney work on a contingency basis. Contingency fees are taken out of whatever monies you are awarded when the case is settled. This is a good choice if you are filing any type of personal injury case in which you are expected to receive a settlement.

Certain cases that are fairly simple, like contract negotiations may be paid for by a flat fee. The attorney already knows how much time the case will take and charges a flat fee for the service. An uncontested divorce or prenuptial agreement are other examples of cases that may be taken for a flat fee. Emergency cash loans are a great way to pay for flat fees charged by your lawyer.

Loans for Criminal Attorney Fees will Lawyers Take Credit Cards?

Surprisingly enough, the majority of attorneys do not take credit cards. Attorneys usually will find any way to let you know how to get help paying for a lawyer. While some are starting to accept digital payments, others prefer upfront payment for their services. This ensures the money is available and in their trust account. This allows it to be used for firm business and to pay other clients. Attorneys who choose to accept credit card payments must make sure the money received goes directly into their trust account for safekeeping. In some cases, attorneys are willing to accept “pre-authorized” payments for their fees. The client must sign an agreement that allows the attorney to charge their credit card for a set fee on a specific date each month.

Money Cents: Is it Smart to get a Loan to Payoff Debt?

How to pay for a lawyer with no money?

There are many ways you can find legal representation without having a lot of money. If you are in legal trouble, you may be able to apply for a public defender. You will have to provide the judge with proof that you do not have money for an attorney. If you meet their criteria, you will be assigned a public defender. If you need help with a civil case, you may be able to visit your local Legal Aid office. At Legal Aid, attorneys offer to take on certain types of cases. This works best if you have little to no income. Most people don’t qualify for legal aid because their monthly income is too high.

If you are willing to take the risk of talking to a law student, you may be able to get the information you need for free. Most law students can legally practice if they have a lawyer who is willing to certify them. Most law professors are practicing attorneys who will do this for their students who are advanced enough to handle a case. Some universities have law clinics where students are allowed to take on pro bono cases to hone their skills.

Conclusion

If you are wondering how to get help paying for a lawyer, you do have options! Personal loans can help you finance fixed flat fees and retainers. Contingency fees will take the pressure off of you to pay your lawyer fees upfront. If your attorney agrees to accept a contingency fee, then your fees will be paid out of any settlement you receive. Financing any type of legal case will require that you understand how the fees are charged. You will also need to know how long it may take to settle your case. With this information in hand, you can choose the right way to pay for your attorney’s fees.

 

How to Calculate Your Net Worth? Let’s make Cents.

Knowing how to calculate your net worth is a concept that encapsulates the total monetary value of a person or enterprise after accounting for expenses and income.

According to Investopedia, knowing how to calculate your net worth is, “the amount by which assets exceed liabilities. How to calculate your net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth. A consistent increase in net worth indicates good financial health; conversely, net worth may be depleted by annual operating losses or a substantial decrease in asset values relative to liabilities.”

According to Dave Ramsey of the Dave Ramsey Show this is how to calculate your net worth: “Your net worth is your assets minus your liabilities. Anything you own, that can be turned into money, that’s an asset- minus what you owe.”

It is an idea that we tend to associate with high ranking business people and corporations, but how to calculate net worth, and getting real with sitting down doing it after you know how to calculate net worth can be useful for anyone.

For example, if your total income is $100 a month and your total expenses are $75 a month, then your net worth is $300 per year. Of course, that is a highly simplified example. Understanding the true value of all of your assets can be a challenge in a constantly changing economy.

In his segment on how to calculate net worth, Dave Ramsey notes that if an asset is not easy to turn into money, it is an illiquid asset. Assets that are easy to turn into money, he continues, are liquid assets. A good example of an illiquid asset is a home or a business that you own. These are things of value, to be sure. But turning around and turning them into cash would take time and effort. There is a valuation process that can be used to pin down the true worth of your illiquid assets.

What is my Net Worth?

Figuring out your personal net worth is easier than you might think. Of course, the more illiquid assets you have, the harder it’s going to be. Because liquidating illiquid assets is a challenge- the process of liquidating them actually takes some of their value away. But if we do not need to be extraordinarily precise, we can compensate by being conservative in our evaluation across a list of items. Below are the steps for how to calculating your net worth.

Step 1: What are my Tangible Assets to Include?

This number will include your retirement savings, your current holdings in checking and savings, and the total value of any stocks you may own as well as the value of your home (if you own it), automobiles, and valuables.

Most people do not count items worth less than an automobile. Of course, the value of cars and trucks varies widely. For our purposes, we might leave out anything worth less than $5,000.

Still, most people will want to assess the total value of all of their belongings. To do this, just make a list of everything you own, which you wish to include such as book collections, TVs, clothing and so forth. Then find comparable items on eBay. The sales prices on sites like eBay and Amazon are a good indicator of their true market value. Once you’ve got all the small items evaluated, add them together under the heading, “personal belongings.”

Your Go-to Guide to Understanding Tangible Assets

As we have already touched on, some of the items in your asset column are going to have some very obvious and specific values which you can count on to remain stable. But large illiquid items will require an estimate. If your home is the item in question, sites like Redfin and Zillow offer calculators that will give you a usable figure for your calculation. If you’re looking to put a number on your car, Edmunds and Kelly Blue Book are great tools.Calculate Home as Asset

Do not expect these numbers to be a perfectly precise measure. Different items are in more or less demand depending on where and to whom you are able to sell them. You may be able to sell your home for half its worth tomorrow, but getting the true liquid value out of it could take a year or more. That’s why we call these types of assets illiquid. The numbers you get from these calculators are estimates and should be thought of as such. As mentioned above, rounding these values down to the nearest $5,000 is a good way to avoid over evaluating your net worth.

Over valuation of how to calculate your net worth is a good way to get yourself into financial trouble, and so we strongly recommend against it.

For clarity, we advise you to make a list with the word “ASSETS” at the top. Below that, list all your asset items along the left column rather than lumping everything under one total sum. This lets you revise your net worth valuation so that you can continue using this information for a long time. Considering that it could take you a whole day to figure out your net worth, you owe it to yourself to organize this information in a useful manner.

Once your list is complete, write the word “TOTAL” down at the bottom and start crunching the numbers. Once you’re finished, you will have the total estimated value of your assets.

Step 2: What are Your Liabilities?

This part probably won’t be as fun as adding up the asset column, but it’s necessary to know how to calculate net worth. Here, you will need to list all of your expenses. These will include;

Large businesses and wealthy people do not include minor outgoing expenses like groceries, gasoline, and the like- but the rest of us probably should. We’d say, if you make less than $200,000 a year, these kinds of expenses are not negligible and should be included in your outgoing estimate.

Once again, you’ll want to organize your list clearly and completely so that you can go back and reference or revise the information later.

Net Worth Cheat Sheet

Step 3: Calculating Total Equity

Take a deep breath, and subtract the total in the debt column from the total in the assets column. The difference is your net worth.

Apply to Know how to Calculate Your Net Worth Formula for Individual (Total Assets – Total Liabilities = Net Worth)

EXAMPLE:

Margret is 40 years old and owns a home that is worth $250,000. She owes $100,000 on her mortgage. Her car is a few years old, but it’s all paid off and is evaluated at $5,000. She has $1,500 in credit card balances, $20,000 in her 401(k), roughly $5,000 in savings, and $15,000 left to pay off on her student loans.

ASSETS

  • Home: $250,000
  • Car: $5,000
  • 401(k): $20,000
  • Savings: $5,000

TOTAL ASSETS: $280,000

DEBTS

  • Credit cards: $1,500
  • Student loans: $15,000
  • Mortgage: $100,000

TOTAL DEBT: $116,500

Margret’s Net Worth: $280,000 – $116,500 = $164,000

Do You Include 401(k) In Net worth?

Many people ask this question. As you saw in our example, Margaret did include her 401(k). It is a real asset to you and does count toward your net worth. So, yes- include it in your calculation.

What if I Have a Negative Net Worth?

That’s good news for Margret. She’s doing pretty well. Unfortunately, not everyone is going to come up in the black like Margret. After taking on a large sum of student loan debt, accounting for a mortgage, and not having reached the full income potential of whatever training and degrees one might have taken- many people will end up with a negative net worth.

When you take on a student loan, the financial institution that provides your loan is betting that you will use your training to achieve an income that will enable you to pay off your debt. The same is true of a mortgage broker, a car dealership and so on. What this means is that while having a negative net worth is not exactly desirable, it is not the end of the world, nor is it unusual.

Often times, all a person needs to get their debt under control is debt consolidation services. These come in a variety of forms. Their purpose is to place all of your debt into one monthly bill. This ensures that you will not get confused each month with dozens of different bills to pay.

How to Build Your Net Worth

While having a negative net worth is both common and manageable, other unexpected life events can throw a monkey wrench in your plan to pay it down. If you need a loan for medical bills, need help paying rent, wedding finance, or for any other unexpected expense- there are a number of financial services that can help.

Personal installment loans are designed to be easily manageable and can help you get your finances back on track faster and with greater reliability than you might do on your own. You can easily get personal loan online or cash loans online from a number of short term loan lenders.

Get Personal Loan Online

Short term loan lenders and other financial professionals understand that young earners are likely to have a negative net worth. It will not affect your credit as long as your payment history is in good shape. Personal installment loans and debt consolidation can be set up easily online for those who qualify.How can i get a Personal Loan up to 10k

Conclusion

Remember, discovering how to calculate your net worth is not a measure of your ability to produce or to earn more. It is simply a measurement of your current financial standing. And as any good economist will tell you, your earning potential is a function of your productivity- not your debt.

Author:

DL M has 21 years of professional writing for print and online media with 10+ years experience as a freelance fiction editor. Though he also occasionally delves into other topics of interest his specialty subjects include: current events, marketing, analytics, personal development, leveraging social media, SEO, business development, cloud computing, language, and politics.

Ideas to Plan a Move on a Budget That Will Get You Home

Ideas to Plan a Move on a Budget That Will Get You Home

Everyone has a lot of stress in their life but, in terms of the pure amount of stress, moving is right at the top along with death and divorce. This shows that many people consider moving to be one of the most significant, life-changing events. We’re about to show you the ultimate guide to move on a budget.

Moving represents a transition to a new location, new job, and even a way to start over. Because of this, it is important to take steps to minimize the amount of stress that moving creates.

There are a few common tips that everyone thinks about, such as planning ahead to plan out where items should be packed and creating checklists to keep everything organized.

During this process, many people will find things that they can throw away. Common items that people can discard include old magazines, sports equipment, broken luggage, and even out-of-date clothing. This will make the packing process easier.

Finally, without a doubt, one of the biggest things that people worry about during the moving process is the cost.

How can people make such a large life change without going into bankruptcy in the process? Believe it or not, it can be done.

How Do You Move on a Budget?

Moving on a budget is a challenge; however, there are some steps that everyone can take to make the process cheaper. As mentioned above, it can be helpful to get rid of unnecessary stuff.

One of the ways to do this is to donate it to Goodwill. It can even be claimed as a tax deduction, which is always nice. Other ways to reduce the cost of moving include:

  • Move during the offseason, where one article claims the cost of hiring movies is up to “30 percent cheaper”
  • Skip the process of buying boxes and go with free ones instead
  • Scrap the movers altogether and move with the help of friends and family

Moving on a budget is a challenge but it can be done by getting creative. Try to enlist the help of family and friends to ease the stress of the process.

Talk to other people who have moved recently. They might have other ideas that can reduce the cost of moving.

Unfortunately, moving to another state is a particularly daunting challenge.

What is the Cheapest Way to Move Out of State?

Often, moves involve crossing state lines. This means that making multiple trips with bungee cords and open trunks aren’t typically feasible. Because of this, people are often left scrambling to find ways to make the move in a single trip.

There are ways to get this done cheaply. One of these involves taking the bus, which has multiple benefits, including:

  • Bus tickets are inexpensive
  • People can take up to 250 pounds of luggage with them
  • The driving is left to someone else

Unfortunately, for those with furniture, this often isn’t a viable option. That is where renting a small truck can be helpful. Some of the numerous benefits include:

  • People can load furniture onto the small truck
  • In some cases, the truck can be upgraded to tow an additional vehicle
  • The furniture will arrive at the same time as you

So, why is renting a truck so cheap? You’ll be doing all of the packing, loading, and unloading yourself, saving the cost of movers. Moving out of state can be a challenge. Furthermore, some websites have tools that can help you find a great deal online!

How to Pack for a Move Checklist

Moving is already a significant challenge. This challenge only gets tougher when people unpack at their new home and find that they’ve lost something.

Which box is it in? Was it left behind? Where did it go? Avoid this problem by using a reliable moving checklist. Unsure of where to begin? There is a template to start from!

Weeks Ahead of Time: In the weeks leading up to the move, make sure to:

  • Trash or donate items that don’t need to be moved
  • Compile a list of businesses and people that need to know about your new address
  • Make arrangements for movers or trucks, if they are needed
  • Make sure that expensive items have insurance on them

Days Ahead of Time: As the moving date approaches, make sure to review tips and survival guides to moving:

  • Start taking down wall decorations, such as pictures, and pack them up
  • Carefully package all fragile items together with plenty of padding
  • Box up electronics with their respective cords to avoid confusion
  • Pack a separate container of toiletries for the first night

As the process starts to unfold, set small goals. Try to unpack one room per person per day. This will make the process less overwhelming. Lastly, do not make the mistake of packing all of the heavy items together.

This will make the box almost impossible to move and could lead to serious injuries.

Can I Get a Personal Loan to Move?

Without a doubt, moving is expensive. Even after following all of the advice above, the process may still be costly. This is where locating a personal loan can be helpful.

Yes, people can qualify for moving loans! Moving loans can cover all forms and styles, including:

  • Moving loans to pay for storage during the moving process
  • Truck and van loans
  • A loan to help with the cost of shipping furniture
  • Loans to cover the cost of incidental moving expenses
  • Loans for those who need help paying rent when they move or their mortgage

Various types of personal loans to get money fast

Lastly, there are even ways for people to qualify for cash loans online. There are many benefits to investing in a moving loan.

As one website puts it, a moving loan is an “unsecured loan, which means you don’t have to put your property at risk.”

This can help people spread out the cost of moving over several payments. People don’t need to stress about losing their car or house if they miss a loan payment. Finally, save some stress by considering cash loans online!

Finding a Mover After You Have Funding for Moving

With the money set aside, people can finally figure out the best way to move. Like buying a house, there are many different moving companies available.

Sifting through all of the options can be a challenge. Some factors to consider when looking for movers include:

  • Are the movers available for the moving date?
  • Are the movers able to transport exotic objects such as fragile pictures and pianos?
  • Do they have the equipment necessary to transport the furniture?
  • Are they willing to travel the distance to the new home?
  • Will the movers be willing to help pack, load, and unload?

Conclusion

These are all important questions to ask. Everyone needs to take the time to find the movers who can do the job correctly the first time. Nobody wants to unpack their items only to find them broken or damaged.

Remember, moving loans and cash loans online can help cover the cost of the move. This money can even help people purchase insurance to protect those valuable items during the moving process!

Finally, don’t hesitate to ask for help. The moving process is tough and everyone deserves a helping hand during this stressful time.

David R is a contributor and writing professionally creating palatable, actionable content in the realm of finance.  David was a Medical school student at UNC Chapel Hill with graduation in May 2017. He graduated Magna Cum Laude from Washington University in St. Louis with a degree in Biochemistry in 2013.  Though David also occasionally delves into other topics of interest, you can find many featured articles on major publications, podcasts and independent websites across the topics of personal finance and money.