Personal Loans for Uber Drivers: Pull Up Here

So, you have heard about how great it is to drive a car for Uber. Maybe you have been hearing about how much money you can make with Uber. You can set your own schedule and drive only when you want. You are excited about the new opportunity to take on a new job as an Uber driver, but you are not sure your car is up to snuff. While you need little to start up your career as an Uber driver, you do need a reliable car to meet Uber’s standards. It is possible that you can get personal loans for Uber drivers. Continue reading to find out more information about personal loans.

Pick Up All the Information About Personal Loans If Your  An Uber Driver

If you are considering personal loans for Uber drivers, it is important to understand all the details about personal loans. A personal loan is when you borrow a certain amount of money from a lender with the promise to make regular payments until the loan is repaid. A lender is a bank, a credit union, or even an online lender. Lenders attach interest to your loan as a fee for allowing you to borrow money. The interest rate that a lender gives you is directly related to your credit score. The higher the interest rate you receive means the more you pay each month when you repay the loan. There are many different types of personal loans that are available to you. It is important that you know where to get a loan when you are interested in getting a loan.

What Are The Different Types Of Loans?

There are different personal loans for Uber drivers that may interest you. Traditional loans come from banks and credit unions. These are banks that have an actual building that you are able to visit when you require assistance. Some of these banks have online banking options, but that is not the bulk of their business. These types of banks tend to give loans to those who have good or better credit. They do not have many options available, so if you do not fall into their exact criteria, they may not give you a loan. Their application process may take longer and if you are approved, it is long before you see money in the bank. They typically also require that you have a bank account with them. You usually get better customer service with a traditional bank.

Online Loans

Online lenders were once considered for those with bad credit. That has changed over time and those with great credit have turned to online lenders for loans. As we advance technologically, online lenders are finding themselves in the right place to lend money. The customer service may not be as good because there is no person with whom you can see face to face. They do tend to have other communication methods. Online lenders offer a wide variety of interest rates and you are able to apply for these loans online and in just a few minutes. You can upload documents quickly and often get a response within 24 hours about the status of your loan.

If you are approved, the money is usually in your bank account in 24 hours. Looking for the right online lender is easy because one or two quick internet searches give you all the information you need.

Loan Options like Fast Cash, Payday and Title Loans

There are a few other loan types that you should consider with caution. Fast cash, payday, and title loans are some other options.

Fast Cash

This type of loan gets you a small amount of money quickly but they come with high interest and short repayment terms. You usually have to repay these loans in just a few weeks and they can get you in a bad spot if you cannot pay back the loan timely.

Title Loans

Title loans use the title of your vehicle as collateral. There usually is not a credit check. These types of loans have high fees and interest rates. Usually, you have to repay this loan within a short period of time. These lenders determine the value of your vehicle and do not allow you to borrow more than a percentage of that value. If you do not repay this loan, the lender can take your vehicle. Be careful with this one as your car is your lively hood. So, why would you risk such an important piece of collateral in exchange for money today. We don’t recommend this type of loan if your an Uber driver. Your car is not a currency. Your ability to use the car to drive others certainly is a ride you can count on day after day.

Payday Loans

Payday loans are another loan where you get cash fast. These loans are for small amounts and have high-interest rates. You must repay this loan on your next payday. You give the lender a postdated check for the full amount of the loan. The lender requires proof of your income so he can see how much money you earn with each paycheck. Also, the lender does not allow you to borrow more than your paycheck amount.

Some Lenders To Consider

Once you decide that personal loans for Uber drivers are the right step for you, you should shop around to find the lender that can offer you the best loan terms. There are some lenders you should consider:

Upstart LoansUpstart – with a credit score of 620 and an annual income of $12,000, you could qualify for a loan. They want you to have a debt to income ratio of less than 45 percent. They approve of those who do not have much credit history. This lender offer loans from $1,000 to $50,000 with interest rates from 7.69 to 35.99 percent. They offer repayment terms from three to five years.

Lendingclub loansLending Club – this peer to peer lender has a minimum credit score of 600. They want you to have a three-year credit history and less than 40 percent debt to income ratio. Their loans range from $1,000 to $40,000 with interest rates from 6.95 to 35.89 percent. They have repayment periods of three to five years. They do have an origination fee.

Avent LoansAvant – they accept credit scores as low as 580 but want you to have at least $20,000 a year income. They offer loans from $2,000 to $35,000. Their interest rates range from 9.95 to 35.99 percent and repayment periods from two to five years. There are a number of other lenders that may offer you better terms that fit in your budget. Do not accept the first offer you find.

A loan for an Uber driver, is simply a personal loan. A personal loan is versatile because it can be used for anything. With our partner Fiona, we’ve made it simple to shop loans based on your situation.

Positives To Taking Out A Personal Loan When Your An Uber Driver

Pros of personal loan for uber driverThere are many positives to personal loans for Uber drivers. One of the upsides to a loan is that you can get the money upfront to pay for a car you need for your job for Uber. You can get the car that you need and you will be able to work for Uber while working to pay off your car. You can take the money you make as an Uber driver and pay the monthly payment to pay back the loan. And you may even make enough money that you can double up your car payments and pay off your car faster.

When you use a loan to obtain a car, you do not have to tap into your savings account to purchase your car. You are able to keep your money in your savings account for some other emergency. When you get a personal loan, the amount you pay per month remains the same so you always know how much money you are paying each month. You will not have any surprises.

Negatives To Taking Out A Personal Loan As An Uber Driver

Cons of personal loan for uber driverJust like everything, when there are positives, there are also negatives. There are some negatives to taking out personal loans for Uber drivers. One of the biggest negatives to taking on a loan is that you are taking on more debt. Any loan that you accept means that you have more debt to repay. That also means that you have a higher debt to income ratio. These things may cause your credit score to decrease, even if it is just for a short period of time. If you are not able to repay the loan, you can put yourself in a worse financial place. Loans also come with fees. I will go into more detail a little further down in this article about the fees you encounter. Some loans have interest rates, which means that you are potentially paying a lot more for the loan that you really should.

Do Loans For Uber Drivers Have Fees?

Just about every personal loan for Uber drivers has some type of fees associated with it. Lenders must disclose all fees upfront to you in the loan agreement. It is your responsibility to read the agreement and ask questions if you do not understand anything. Loans may have application fees. This is a fee that you are charged simply to apply for a loan and run a check on your credit. This is a non-refundable fee, so even if you are not approved for the loan, you have to pay it. Not all lenders charge this fee, so you may want to look for a loan that does not have this type of fee.

There are administrative costs associated with a lender giving you a loan. The lender passes these costs along to you in administrative fees. This fee covers all the paperwork associate with processing your loan. Sometimes this fee also includes an application fee. Some lenders combine several fees into one big fee called an origination fee. This includes the application, credit check, processing it all and paying out the money. The most important piece of all of this that you need to understand is the origination fee comes off the amount of the loan that the lender gives you. That may not seem like a big deal, but let me show you why it is.

You need to borrow $8,000 to buy a car that has a total cost of $8,000. You plan to use every bit of the money you borrow for the car. The administrative fees were $400. The amount that the lender deposits into your account is $7,600. That is $8,000 (the amount you borrowed) minus $400 (origination fee) = $7,600 (total amount deposited). Now, you need to come up with another $400 to buy the car.

Does My Credit Matter If I Work When I’m Looking for Money as an Uber Driver?

It does not matter where you work when you are looking for personal loans for Uber drivers, your credit matters. Honestly, it does not matter what type of loan you want, why you need it, or where you get it, your credit always matters. As I mentioned above, your credit score directly impacts the interest rate that you receive with your loan. The lower your credit score than the higher your interest rate is going to be.

Your credit score is a three-digit number that gives a lender an indication of your creditworthiness. There are about five different factors that go into determining that number, but what matters most to you is it is a direct link to the interest rate you receive. You want to make sure you protect your credit score as best you can. You want to make all of your payments in the correct amount and on time. Late or missed payments are one of the top reasons why your credit score decreases.

What Is The Difference Between Secured And Unsecured Loans?

When you are considering personal loans for Uber drivers, there are two major designations for loans. There are secured loans and unsecured loans. Most personal loans are considered unsecured loans. This means that they do not require collateral. They are more risky for the lender, so they usually require you to have a higher credit score when dealing with an unsecured loan. You may also find that unsecured loans are for a smaller amount of money. This is also because they tend to pose more risk for the lender. You can often get a quick decision on an unsecured loan, but it may not be in the amount that you really need.

Secured loans are less risky for the lender because they have some type of collateral associated with them. Collateral is an asset of yours that has some financial value to it. You are offering this item as proof that you will make your loan payments. If you do not make your loan payments, the lender can take the item you offered as collateral. Most often, secured loans are in the form of mortgages, where the house is the collateral. Another type of secured loan is an auto loan where the car is the collateral.

There are other types of collateral that can be used such as other real estate or art or jewelry. These items are often valuable and you must be able to prove their value. Secured loans are usually for larger amounts of money and have lower interest rates. Lenders are willing to offer better terms because the collateral gives them a better sense of security.

Is A Loan Right For Me?

When you are considering personal loans for Uber drivers, it is important that you assess your current situation and determine if you really want to take on a personal loan. You are the only one that can decide if a personal loan is right for you. There are some questions you can ask yourself when you are trying to figure it out. The first questions is can you afford to make the monthly payments? You may not know the answer to that question. You need to take a look at your budget and determine how much you can afford to pay each month. If you do not have any extra money to pay towards a loan then a loan might not be right for you.

If you are not making any extra money because you do not have a car to become an Uber driver, then maybe a loan to get you a car is the right step for you to take. However, you must make sure that you make at least enough money to make the monthly loan payments. If you do not think you can make enough money to pay off the loan, then a loan still may not be the right answer for you.

Conclusion

It is very important to fully understand personal loans. When it comes to personal loans for Uber drivers, there are many options available to you. No matter which one you pick, make sure that the option is the right one for you. You do not want to put yourself in a worse financial place because you have taken out a loan that you cannot afford. When considering personal loans for Uber drivers, make sure that this loan will help you get to a better place.

Advertising Disclosure: Some of the offers that appear on this website are from companies which Loanry receives compensation. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products. For more information please see our Advertiser Disclosure.

The 9 Top Personal Loans For Poor Credit

Is it just me, or does it seem like the cost of everything has gone through the roof? I understand inflation. Also, I understand that as the cost of materials goes up, so does the cost of the final product, but wow, I feel like costs are at a ridiculous level. I cannot be the only one feeling that right now. If people are feeling the squeeze from the rising costs, I know the need for money is increasing.

What do you do when you find yourself staring at a stack of bills you know you do not have the money to pay? Or when some expenses pop up that you have to pay? It happens every day to more people than you can imagine. Times are tough and you may find yourself needing a loan. You may find yourself in bad financial shape and needing a loan. Have no fear, it may be harder but you can find a loan to meet your needs. Continue reading to find out more about personal loans for poor credit.

Nine Best Personal Loans for Bad Credit Borrowers

I would like to focus on what you really need, which is personal loans for poor credit. I want to break that down into smaller segments, so how about we start with the basics about a personal loan. A personal loan has some complexity when you start talking about the details, but at its core, it is money you borrow and promise to repay. You are promising to repay the dollar amount you borrowed, which is the principal amount, plus the interest that the lender charges. The lender charges you interest as a fee for allowing you to borrow money. The amount of the interest you are charged is based on your credit score. Personal loans can be secured or unsecured, but most personal loans are unsecured loans.

You have looked at your budget and you know your number. Now, you are ready to look for personal loans for poor credit. I am going to help you out by giving you the top 9 loans that you should consider during your search for a personal loan.

OneMain Financial

OneMain financia logoThis lender provides various types of loans, including secured and unsecured options. They offer loans in varying amounts from $1,000 to $20,000. The better your credit is, the more they are willing to lend you. They offer repayment terms of 2, 3, 4 or 5 years, so they are incredibly flexible. Of course, they reserve the higher amounts for those with better credit. They offer interest rates ranging from 18 percent to 35.99 percent, based on credit, of course.  They have branch offices you can visit, or you can handle all of your business online. It is up to you.

Opploans

This lender is a fantastic option if you have poor credit. They specialize in providing loans to those who are often declined elsewhere. Opploans gives you access to funds without putting you in the payday lending trap even if you have poor credit. You apply through their site and customers say things like “I got the loan right away”. Like any lender, there are still some loan shoppers who may not get offers back. It is not a guarantee. The loan amounts range from $500 to $4,000. The repayment period can be as long as 36 months and there are no hidden fees. You have no obligation, so you can decline all the offers.

Avant

This lender is another great choice for those with poor credit. They will give you a loan when your credit score is as low as 580. They even approve your loan if you have a low income as they have no income requirements. Their loans range from $2,000 up to $35,000. Their loan terms are also flexible at 2, 3, 4 or 5 years. Interest rates range from 9.95 percent to 35.99 percent. They do have an origination fee of as much as 4.75 percent of your loan amount.

LoanMe

This lender offers loans in limited states, but is known for fast funding and excellent customer service. You fill out the application on their site and they claim they can fund as soon as 30-4 hours. Interest also tend to be on the higher side, but they often are able to fund those within a lower credit grade. According to their website, interest rates vary from  They all may be different, so may sure you know what they have to give you. The loans start at $600 and go up as high as $100,000 for those with prime credit. LoanMe is also a good payday loan alternative with an option for more if needed. A great place for a quick turnaround loan.

PeerForm

Peerform logoThis is a peer to peer lender. That means lenders and borrowers are matched together while removing traditional banks from the process. Individuals are willing to lend money to help others. However, you must have a credit score of at least 600. Loans range in amounts from $4,000 to $25,000 with interest rates of 5.99 percent to 29.99 percent. This lender takes a little longer to get the money to you, up to 2 weeks. There is an origination fee of 1 to 5 percent.

Upstart

Upstart is a great lender if you do not have much credit history. They may loan money if you have a credit score of 580. You must have an income of at least $12,000 per year. You can borrow $1,000 to $50,000 with terms of 3 and 5 years. The origination fee is from 1 to 6 percent of your loan amount.

LendingClub

This is another peer to peer lending facility. The loan amounts can vary from $1,000 up to $40,000. The loan terms are three or five years. Lending Club has a high origination fee of anywhere between 1 to 6 percent of your loan amount. Interest rates range from 6.95 percent to 35.89 percent. You must have a credit score of at least 600. They want you a credit history of at least 3 years and your debt to income ratio to be under 40 percent.

Prosper

Prosper logoThis lender accepts credit scores of 640 and wants a credit history of 2 years. They do not have a minimum income requirement. You can have a debt to income ratio of 50 percent maximum, but no bankruptcies within the past year. They offer interest rates of around 6.95 to 35.99 percent.

NetCredit

NetCredit logoWhen looking for personal loans for poor credit, this may not be the best one, but you can consider it, if you are out of options. Interest rates start at 34 percent (ouch) and can go up to 155 percent (double ouch). They accept credit scores as low as 550. You even have a day to change your mind about borrowing the money. Loans range from $1,000 to $10,000.

Where Can I Find A Personal Loan?

It is one thing to know you need personal loans for poor credit, but where to get a loan may be a more difficult question for you to answer. You may be surprised to find that finding a lender is not as difficult as you might think. The internet puts everything right at your fingertips. One quick search and you will have a list of many different lenders. There are many from which you can choose, so I hoped the list I provided will help you with your choice.  I will list those later on in the article. Do not just go to the bottom of the article, stick with me for a little longer. I have some good information to share but do not worry, I will be brief.

You can find a personal loan through a traditional lender, such as a bank or credit union that has an actual brick and mortar location that you can walk into and speak with someone. You can find personal loans online. Once upon a time, there was a stigma associated with online lenders. They were only for those risky lenders with bad credit. That is no longer the case. You can find really good loan options online, so do not count them out. There are many bad credit personal loan lenders, however, not all of them have loans that will benefit you. Keep in mind that all lenders will look at certain criteria for personal loans before they decide to lend you money.

Some lenders prey on your emotional state knowing that needing money right now can make you feel stress and anxiety. Do not make an impulsive decision because that will hurt you in the long run. Make sure your decision is thought out.

Influence of Bad Credit on Loan Terms

Your credit matters and I would be lying to you if I told you something different. Your credit score directly impacts the interest rate a lender is going to offer you. When you are looking for personal loans for poor credit, you should understand that you will have higher interest rates. Poor credit does not mean you will not find a loan. It does mean you will pay more money in the long run. If you have poor credit, you may have better luck getting a loan from an online lender, so you might want to start looking there first. Online lenders have easy application processes and it goes much faster than when you go into a bank. You often get your approval in 24 hours or less. Then, the money is usually in your bank account in about 24 hours after your approval. It is a fast process.

I want to highlight for you how bad credit impacts your loan repayment. When you have poor credit, the lender sees you as a risk. They think you will make late payments, or perhaps not make payments at all. Your credit history shows them what you have done in the past and they believe you will continue to behave that way. Your credit history does not tell why things happened the way they did, so some lenders will ask you. They want to understand why you missed payments, especially if it seemed to occur during a specific time. If you have a reasonable explanation, they may be more willing to lend you money.

Your Bad Credit Impact on Your Interest Rate

Back to the interesting part of your loan. You already know interest it piled on top of the amount of money you borrow. Let’s say you borrow $20,000. If you had good credit, you might get a loan with 10 percent interest. That means you are paying $2,000 in interest for that loan. The total amount you pay back to the lender is $22,000. The Same scenario but with bad credit looks like this…you borrow $20,000 but you have to pay 25 percent interest because of your credit score. That means your interest amount is $6,000. The total amount you pay back is $26,000.

Let me show you how that impacts your monthly payment. When you pay back $22,000 over 3 years, your monthly payment is $611. When you are paying back $26,000 over 3 years, your monthly payment goes up to $722 per month. That is a huge increase.

How Can I Improve Poor Credit?

Those are some scary numbers, right? I know and that is why you want to protect your credit as best you can. We all know that things happen that are outside of our control and you may see your credit score slipping. The good news is what goes down can always come back up and you can repair your credit. It will take time and perseverance, but you can do it. One of the benefits of personal loans for poor credit is that personal loans can help you improve your credit. When you take out personal loans for poor credit and you make your payments on time each month, it begins to improve your credit score.

You should pull your credit report. I know you probably do not want to look at it. But, you cannot bury your head in the sand. That is not going to help you fix your credit. Pull your head out and look at your credit report. Look for errors and fix them. That is a quick and easy way to improve your credit score. You should also eliminate your debt as quickly as you can. You need to focus on paying down your debt, which will bring your credit score up. Paying down your debt helps you in many ways. The most obvious is that you do not owe as much money, which relieves stress for you. The less debt you carry means the higher your credit score will be. This decreases your debt to income ratio, as well as your credit utilization. These are all good things.

Should I Get A Personal Loan If I Have Bad Credit?

I mentioned that personal loans for poor credit can improve your credit score. Does that mean you should run right out and get a personal loan? Not so fast. A personal loan has advantages and disadvantages, remember that. You need to determine IF a personal loan is right for you and is going to improve your financial outlook. If the answers are yes, then proceed, but with caution. You need to determine if you can afford to make the payments. You are borrowing money that you must repay every month. A loan is not a gift. You cannot let it slide and miss a few months. Remember, you must repay it every month.

You should take a look at your budget and determine how much money you can afford to repay each month. This is an important step that many people skip. They look at the amount of money they have to pay each month and they think “that’s not too high, I can handle that”. Can they really, though? If they do not have a budget, they have no way of knowing if they can actually afford it. You need to know how much money you are paying out each month and how it compares to your income. Once you see what is left over after all of your expenses, you are better able to determine how much you can afford to repay each month. You should know that number before you even apply for a loan.

Conclusion

As you can read, there are many personal loans for poor credit options available to you. Some are pretty good offers while others are not great. You should obtain the best possible loan that you can find. Remember, you do not have to take the first offer. You should take the best offer you can find. Do your research and make a good choice.

Advertising Disclosure: Some of the offers that appear on this website are from companies which Loanry receives compensation. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products. For more information please see our Advertiser Disclosure.

How to Find a 6-Month Personal Loan Online

There are a number of benefits of personal loans. With this type of loan, you will be borrowing a set amount of money so you know what your monthly payments will so you don’t get hit with any surprises. A lot of personal loans are unsecured. This means you don’t need to have any collateral. When you get a personal loan online, you can have the money you need in as little as a day. You are also able to apply for a loan from the comfort of your home. Personal loans will typically have lower interest rates than most credit cards. If you’re interested in how to find a 6- month personal loan and other details about it, then read on.

What Is a 6-Month Personal Loan?

Typically the terms for a personal loan will range from 12 to 60 months. A 6-month personal loan is made for those who don’t have great credit. All you will need to get approved is an active checking account and proof of income or employment. You can then borrow up to $5,000 over a 6-month period. With this type of loan, you pay back the interest and principal in regular installments and they are usually set for once or twice a month. It helps to make sure the payments are affordable and realistic for your situation. Interest rates can be high and falling behind on your payments can have serious consequences.

Reasons to Use a 6-Month Personal Loan

These 6-month personal loans and smaller loan amounts can be used by people who don’t have the best credit and need some help getting over a hump. The reasons these loans work for people with not that great credit scores is because lenders can be more comfortable loaning smaller amounts of money to those with bad credit. These small loan amounts are usually geared toward these people and this is why the interest rates are higher.

Borrowers can use these loans for a number of different reasons that include utility bills and rent expenses, small home or car repairs, computers or other necessary electronic devices, wedding expenses, college expenses, travel, back to school expenses, birthday or Christmas gifts, replacing a home appliance, and to help with a down payment on a car.

How Does a 6-month Personal Loan Work?

A 6-month personal loan or other small loans don’t have a major amount of money. This amount usually can’t be used for something as large as a wedding but it can cover home repairs or unexpected expenses that require cash you may not have. When you get a loan online you can keep your business to yourself and not have to ask friends and family. The steps to get a personal loan are applying online, searching options, getting cash, and then making payments.

Apply Online

Getting a small personal loan online has never been easier. The entire system, from the application to repayment, can be found through a lender’s online portal. Even when you apply online you may still be required to prove your income. There are some information lenders may require. Lenders can require proof of pay stubs to show that you have a regular income and are being paid. Once the income is confirmed there are usually no extra steps and your approval will come quickly.

Together with Fiona, we connect you with reputable lenders in a matter of seconds. Sounds impossible? But it’s true! We find unique offers based on the information you put in this form below, and if you get approved for a loan, you may have the funds in your account by tomorrow.

Search the Options

If you find the first offer won’t work for your needs then there are more options to consider. If you want to repay the loan quicker or push for smaller payments, you can search for this option. You can have the ability to customize the terms with the majority of lenders online.

Get the Cash

Once you have been approved and found a loan that works with your terms then you can upload your bank information in order to have cash deposited into your account. Cash can be deposited the next business day, which is much faster than waiting for a check from a lender and then waiting to have it clear.

Make Payments

When it is time to make payments, all you have to do is log back into the lender’s online portal to easily and quickly make a payment. You can even have the payments drafted at your convenience to make sure you are paying back the loan on time. If you want to pay back the loan early, you can log in and choose the pay back the loan in full just as if you were making a regular payment. You may want to check your loan terms for any pre-payment penalties to make sure you won’t be hit with extra fees if you do choose to pay back your loan early.

How Long Does It Take to Get a 6-Month Personal Loan?

The entire process can be quick and easy and can be as fast as 24 hours from the time you apply to the time you get your cash. If you have more time then you can spend more time searching your options. Many pre-approvals for a loan will be valid for about three days. The pre-approval stage only take as long as getting the key information required to the lender to upload. Once you have been pre-approved then it’s up to you to search for options and confirm the loan option you choose. Once you review the loan options then it’s time to continue the application.

Online loan companies usually work faster than banks. The application process can take anywhere from fifteen minutes to half an hour, depending on the information that is required. Once the information is gathered then the lender will usually take several minutes in order to determine approval. Once you have been approved then cash should be in your bank account by the next business day, as long as your loan was approved prior to 5 p.m. If the loan is processed after then it could be another business day in order for you to see the funds. However, this is still faster than receiving a check from the bank or a local lender.

How Is a 6-Month Personal Loan Different from Other Short-Term Loan Options?

There are other alternatives to a 6-month personal loan. Payday loans are also short-term loans and are usually for $500 or less. These loans are typically due on your next payday. Auto title loans are also another type of short-term loan. However these loans have higher interest rates and will usually use your car’s title as collateral. You may have to repay the loan back within 30 days, although some lenders do give longer options.

Three-month loans can usually give you up to $5,000 and can be a reasonable option if you can’t qualify for a personal loan. However, it can be hard to find lenders that offer short-term loan amounts. The longer term will make the loan more expensive. Long-term loans can have lower interest rates overall for borrowers that have good credit.

Where Can You Get a Small Personal Loan?

A small 6-month personal loan can be something you need from time to time for everyday expenses. Whether it’s for medical debt or to pay for a vacation, there are different avenues for where to get a loan.

From a Bank

Getting a personal loan from a bank will require a decent credit score for approval of the loan. If your credit score is below 550 then you likely won’t qualify for this option.

From a Family Member or Friend

This is a non-traditional option but can work if your credit score isn’t sufficient or you don’t want to have the risk for a hard inquiry. You could have the option of getting a small personal loan from a friend or family member. Before you ask to borrow any money though, keep it professional and offer a written contract. This person should have reliable income and not be experiencing any financial tragedy.

With a Small Cash Loan

If these other two options aren’t available to you then you can also apply for small cash loans online. In order to do this, it helps to use an online lender finder service. This will allow you to search different lenders and determine if you can qualify for a loan. Many times you can pre-qualify for different loan options. Despite your low credit score, you can have the ability to choose your small personal loan options when you find one online.

Do You Need Proof of Income for a 6-Month Personal Loan?

A lender, even for a 6-month personal loan, will want to see proof of income before you get approved. For an individual who is regularly employed, this shouldn’t be an issue. However, it can be harder for non-traditional employees. These people may be self-employed and don’t give themselves a paycheck.

In order to show proof of income if you don’t have a regular paycheck, there are some things you can do. There are other means of income that lenders will accept. A W-2 is a tax document that will tell a lender how much money you made in the previous year. Lenders can also accept tax returns if your are self-employed. A signed letter from an employer is another proof of income that lenders can accept. You may also use bank statements, which shows that your employer has made regular deposits in the account.

It can be difficult to get a personal loan without proof of income. There are other ways to get loans that may require some collateral.

Choosing between Different Loans and Lenders

When searching for a 6-month personal loan, it is important to not rush and choose the first available option. This loan is going to affect your life for some time, even if you do pay it off quickly. There are some things to consider when choosing the right loan.

The Loan Terms

You have to look at the loan terms. Many different factors will vary from loan to loan and you have to be careful to notice these differences. Be sure you know what the interest rate is and how it is calculated. Is it fixed or variable? It is compounded yearly or monthly? It is added to the loan amount? It’s also important to understand if the payment amount due each month is only for interest or if some of it is also applied to the principal.

The repayment terms are also important. How long do you have to repay the loan? And how often do you need to make payments? How does the loan need to be paid? Knowing everything about the loan before accepting it will help make sure you don’t end up in worse financial trouble. If the loan you are approved for requires shorter repayment terms or larger payments than you expect then choose a different one. Don’t get yourself in a deep hole.

Purpose of the Loan

There are different types of personal loans and the loan you choose should be based on the purpose of the loan. If you just need some financial assistance to make a purchase or pay a bill then a loan option that doesn’t require collateral will work. If you are using the loan to build credit then you want to make sure you pick a loan type that will get reported to a credit bureau. Payday loans and title loans don’t get reported unless you fail to repay them. When you consider the purpose of the loan, you can choose the best one for your situation.

If you are choosing between applying for a loan online or at a brick and mortar lender, know there are some differences. Applying online can be much faster than driving around and filling out paperwork over and over again. When you apply online, you can start the application for multiple lenders at once. Some brick and mortar locations will hand out cash while others will give you a check and you need to wait until it clears. Online lenders will deposit loans into your checking account when you are approved.

What Are Some Loan Eligibility Requirements?

Every loan company will have a different set of eligibility requirements. Many lenders look at the debt-to-income ratio, along with if monthly payments are made on time. If you can’t afford monthly payments then you may not get approved. Other lenders will look at career experience, financial history, and education level. Lenders can require the borrower to be 21 years of age and have a steady income. Many lenders want their borrowers to have a steady job with a minimum annual income. There are also credit requirements and many lenders will factor in the credit score.

Steps to Take after Getting a 6-Month Personal Loan

When you get a 6-month personal loan and take care of the business that caused you to get the loan in the first place then your number one goal next is to pay off the loan.

Know the details of the loan, when your payment is due, who to contact if you have an issue, and what the total amount of the loan is. Add the payment date to your calendar so you don’t forget. Missing payments on personal loans can be damaging to your credit score. Add the payment to the budget so that you are able to financially afford the payment. If your loan is above your budget then you need to decide how to make extra money. You don’t want to wait until the day before it is due to decide how you are going to pay back the loan. Be sure to follow through with payment.

What Do You Do if You Have Bad Credit?

There are still some ways to get personal loans with poor credit. However, there are some things to keep in mind. You will need to know the distinction between a secured and unsecured loan. Secured loans require collateral to use as backup. Unsecured loans don’t require any collateral so they are riskier for lenders. With poor credit, you may only have the option for a secured loan so you need to know what you are using for any collateral. You should also expect the interest rate to be higher. Extending the length of the loan can be tempting in this case since it will lower the monthly payments but you will end up paying more in interest.

You will also need to prepare more when getting a personal loan with bad credit. You will need to have copies of financial documents, bank statements, employment information, and more. This paperwork will be submitted with your application. If you don’t have a good credit report then you will need to do more work. Don’t be discouraged if you are rejected from one lender as there are more opportunities available. You may be able to ask why the application was rejected so you know if there are ways you can improve.

Can You Get a Personal Loan with Bad Credit? Proceed with Caution.

How to Improve Your Chances of Getting a 6-Month Personal Loan

If you don’t need the money right away and want to improve your chances of getting a 6-month personal loan, there are some things you can do. You should eliminate outstanding debt since this can help improve your credit score. When applying for a loan, only apply for what you need. Start shopping for loan options for free with online tools so that you can see what your options are and if you meet the eligibility requirements. If you don’t meet some of the eligibility requirements then a co-signer can help you get approved. However, they will be on the hook if you don’t make your payments.

Conclusion

A 6-month personal loan can help you out if you need cash fast. These loans are a little different than other short-term loan options and can be used for a number of different reasons. You can use a 6-month personal loan to get by on bills or to make sudden home or car repairs. There are different places where you can get these types of loans and each has its own advantages and disadvantages. It helps to know the process of how to get these loans and what to look for when you are choosing between different lenders and different loan options. You will need to show proof of income but even if you have bad credit, there are still options for you to choose from that may have higher fees and interest.

How to Get a Personal Loan for a Pool: Dive in Cautiously!

My family and I live in the south- like, the real south. Alabama to be specific. You have probably heard some jokes about a lot of things down here, but one thing everyone who lives here or has visited here in the summer agrees on is that summertime is hot. And it is extraordinarily humid. Air conditioners are a necessity, not a luxury. So are bags of ice and gallons of water.

My story:

Don’t get me wrong- the summers here can be awesome. Getting out on the river in your boat, riding jet skis, taking your kids to the community water splash pad, turning the water hoses on and soaking each other, or having water balloon or water gun fights are just some of the joys. However, try getting through the summers without some cool water to play in, it will be an uncomfortable misery like you have never known.

That is why two years ago, I splurged to by my family a decently sized pool. We had some other ways to get wet, but I longed to submerge myself in water. I ordered it online and we anxiously awaited the delivery. When it finally arrived, I was probably more excited than my kids.

Unfortunately, about two weeks prior to delivery, I had literally ripped a muscle apart in my back and was in the process of recuperating, so my husband refused to let me help move the box or set the pool up. And in a crazy turn of events, he slipped a disc in his back while moving the box. Here the two of us are limping around and unable to do anything more than stare at the pool just waiting to be assembled.

About a month later, we decided that we were recuperated enough to make another attempt at putting the thing together with the help of our teenage son. We get all of the parts laid out, suffer through the dreadful mosquito bites, and after hours of agony, we had it together. In went the hose pipe and we filled it up, then put all the necessary cleaning stuff in and, voila! We had our pool but we had to wait 24 hours for the chemicals to settle.

My dream:

I dreamed of that pool that night, and the kids and I were so excited that we wanted to jump in before even eating breakfast. So imagine my utter dismay when we awoke the next morning to find this huge pool empty. After all of the injury, pain and suffering, the crazy thing had a hole in it. And because we had taken it out of the box and put it together, the retailer would not exchange it.

I cannot begin to express the emotional anguish we all felt. For days, we sat around feeling angry, and hot, of course- very hot. We were so desperate to cool off that I nearly went to the very expensive pool place down the road and finance four times the cost of our original pool for these guys to deliver it AND set it up. I stopped myself just in time, but it did cause me to consider getting a pool loan, so I want to share what I learned about them.

What Exactly is a Pool Loan?

A pool loan is simply a personal loan for a pool. Personal loans can be used for virtually anything, and that includes pools. If you are considering a personal loan for a pool, there are a few things you should think about first.

What Kind of Pool Do I Want?

There are many different types of pools from little tiny baby pools to enormous in-ground pools, and those in-ground pools can be made very elaborately. So what kind are you looking to get? One factor when deciding this is estimating how long you think you will be at your current home, and whether or not you own that property.

While I would love to have nice in-ground pool, I plan to sell my house before too long and move into something better suited for my large family. Due to this, I would not have even considered an in-ground pool for my current home. If you are renting, do not invest in a permanent pool. Just get something to play around in for now.

You must also consider that in-ground pools are pretty expensive. You can get a pretty large above-ground pool for a few hundred dollars. Then again, I have seen some amazing videos on YouTube of people who have built their own very nice in-ground pools. If you have the skills and patience, you might be better off buying the supplies and doing it yourself. This is all really up to you but you should know what type you are willing to pay for before looking into pool loans.

Can I Afford to Repay a Pool Loan?

Be truthful with yourself. Can you afford another payment? If you are currently struggling to pay your utilities, or have nothing left over after you do, a pool loan is probably not a good idea. If you are willing to pick up a second job to pay for the loan, it might be okay. At the same time, though, if you are spending all of your time at work, will you even get to enjoy the pool? If not, you might consider taking that second job and saving up until the following summer, buy one outright, and then spend that whole summer enjoying your hard work while soaking up some rays.

Will It Interfere With Other Things?

Pool Loan
AVERAGE COST OF A POOL

So what stopped me from running down the road and financing that pool? I knew just how much that loan would hurt my family. We have certain goals, some of which include clearing up our credit and saving for a house, saving for our four children to go to college, buying a new car that runs right, buying our teenager a car before he graduates, and a few other things like those. We also want to put our children into some activities they have been asking to join, build my business, and just be free enough to grab a couple of pizzas once a month and enjoy a movie.

Had I gotten that loan, I would have put many of those goals on hold and most likely would have had to be away from my family even more to work extra. Weighing out the pros and cons, it just was not worth the consequences- as desperate and as sweaty as we were. Our other goals held much higher priority in our hearts.

What about you? Will getting a personal loan for a new pool interfere with anything else you are trying to do? If so, is it worth putting your other goals on hold? You should really think this through carefully before making a decision. For some people, a pool is a bigger priority, and that is okay. It may be the one way you can get all of your kids away from their tech without acting like they cannot live. You may want to have friends over more often. Maybe it is a way to improve your health. And it may just be something you want bad enough to put above other things at the moment. It is a personal choice but it should still be carefully thought through.

Is There Another Way to Pay for the Pool or Beat the Heat?

Even though we chose not to get a long, we were still sitting at home sweltering. It was so hot that we did not want to move, we just wanted to sleep all day. Inside our house was even worse than outside in the shade. Somehow, I had to get us and keep us cool.
One of the best things about growing up in the country, and without a lot of money, is how creative you learn to be. I remember wanting a Slip-N-Slide as a kid, but we could not afford it. What we did have was an old pool liner, a hose pipe, and a huge yard- all of which added up to a homemade water slide. We also had freezing cold creeks and summer rain.

I saw no reason not to get creative with my own kids. We, too, made a water slide and a small pool made from some wood and a tarp that I saw on Pinterest. We had water gun fights, ice fights, and water balloon fights. When it rained, we would play in it. We started working on a pool savings that we started funding through yard sales and a few car washes.

How about your situation?

Are there other ways to stay cool while you save for a pool? There are many gyms that have pools available for members. While this is an additional monthly charge, it is probably less than many pool loan payments, and there is the added benefit of exercise equipment and not worrying with the maintenance of the pool, which is costly in and of itself.

Maybe you know someone that has a pool, and you can exchange some yard work or pool cleaning for a swim a couple times a week. Do you have any rivers or creeks nearby? I will say that this is not my favorite option as I am quite germaphobic since having children, but my children still love it. About 30 minutes away is a man-made beach near the local dam. I took my children once, and they have begged to go back ever since. If you are unsure of activities or places, social media will likely have some answers for you.

Is a Pool Loan a Good Idea for Me?

After considering all of the following factors, you must decide if you want to get a personal loan for a pool. Only you can decide if a pool loan is a good idea for you. If you feel you might be too hot and desperate to make a good decision, talk it out with a friend or coworker. Or go old school and write out a pros and cons list- those still work very well. If you choose not to get a pool loan, make a savings plan and find an alternative means of staying cool. For those who decide to get a personal loan for a pool, keep reading for some additional information and tips.

How Do I Know If I Will Qualify for a Pool Loan?

Though it is not possible to know for certain if you will be approved for a personal loan for a pool  until you actually get approved, you can use a loan checker to determine whether or not you are eligible for a personal loan. There are, of course, certain things that lenders look for before approving you. One of the biggest factors is whether or not you can afford to repay the loan. By looking at your income and your outgoing, they get a good idea of your ability to pay. Most will also look into your credit history to get an idea of how responsible you are with debt.

While requirements will often vary from lender to lender, be prepared when you apply for a personal loan for a pool with your personal and income information. You might also consider having some collateral in mind just in case you can only qualify for a secured loan. Using a personal loan checker can usually give you a good idea of what you might qualify for and, most likely, lenders that might approve you. It might also tell you what kind of interest you are looking at paying. Again, until you are approved and your lender tells you the terms and interest, there is no certainty. However, using a loan eligibility checker can give you some information to work with.

Where to Get a Loan and What Type of Personal Loan for a Pool to Consider

For those who have applied for a loan before, you are aware of the overwhelming number of loans that are available as well as the vast amount of loan places both online and offline. For those who are unaware, brace yourself. It is what is known as a saturated market. However, even with all of the loans and lenders available, it is still a very useful market because almost everyone has needed some type of financial help before. The key is in finding the best loan and lender for you. First read the entire article so you would get an idea what you’re looking for. Then, you can get back here and take a look at the form below. If you fill it out, Loanry connects you with reputable lenders and you can get offers within seconds.

The more you know about them before shopping for a pool loan, the better, so let’s learn a little. As far as a personal loan for a pool, there are really only a couple that make sense. Here is why: some charge high interest and need to be paid back quickly while others charge lower interest and give you a longer repayment period. Here’s the breakdown:

Not Ideal for Large Purchases

Title Loans:

Let me speak openly here- title loans should be a last resort in case of emergency. It makes no sense to use them for large purchases. You put your vehicle title up as collateral. Logically speaking, your interest level should be pretty low since the lender is assuming so little risk. However, that is not the case. The interest I have seen is anywhere from 25% to 36%. That is huge- hundreds in interest a month. So, it is unwise to take out such a high interest loan for something like a pool when you will likely end up paying four times more for the pool at least by the time you are through paying it off. Unless you are getting something big like a tax refund check in the next few weeks, this is not a good option.

Payday Loans:

Payday loans are basically the same as title loans in terms of cost, but you usually do not get as big of a loan. In fact, most people do not get enough on the first loan to pay for more than one of those small easy-set pools. And by the time you pay the interest on the payday loan two times, you could have paid for that same pool outright. This is also not ideal for a personal loan for a new pool.

Secured Loans with High Cash Collateral:

Secured loans can be okay as a personal loan for a new pool, but not if you have to deposit the same amount that the pool costs. What I mean by this is that some secured loans and secured credit cards require you to put down a cash deposit. At times, it is a small percentage of the loan amount. However, for some with low or no credit, they require the full loan as a cash deposit. If you want to build your credit while buying the pool, this might be a good option. However, let me point out the fact that if you can afford to deposit the full amount of the loan, you do not need the loan to pay for the pool.

More Ideal for Large Purchases

Personal Installment Loans for Good Credit:

I may sound biased- and I might be a little bit- but I believe that installment loans with good credit are the best option when looking for a personal loan for a pool, and just about everything else. That is because the interest and payments tend to be much lower- some even below 10%- and repayment terms are often very doable. I advise looking into these first if you qualify.

Personal Line of Credit:

A personal line of credit is similar to a personal loan online in that a line of credit is often much more favorable than other high interest loans, credit cards and title loans. The differences a line of credit and a personal loan usually has fixed interest while a line of credit has variable interest, and a line of credit is revolving while a personal installment loan is not. Still, with a personal line of credit, you can take the amount you need out and make smaller payments than with a high interest personal loan for a pool.

Secured Loans with Low or No Cash Collateral:

I spoke a moment ago of secured loans that require high deposits. Now, let’s talk about those that do not. There are secured loans that require a small portion of the amount of the loan as a deposit. For instance, a $500 secured loan might require as low as a $25 deposit. This would be helpful as a personal loan for a new pool since you are receiving more than you are depositing. Also, some require no cash deposit but another form of collateral, like a piece of property. This would also be helpful as you are putting down no cash at all.

Retailer Financing:

In some cases, the retailer selling you the pool with provide financing. This is just a personal loan for a pool through that retailers credit partners. While not always, this can be the best way to go sometimes if you catch the promotions. During sales, they offer things like “0% Interest for 24 Months” or something similar. I have seen 0% interest for up to five years. If you can qualify for this financing, you can make a plan to pay off your new pool during the no interest time and save a ton of money.

Where to Find a Personal Loan for a Pool

All of the aforementioned loans can be found both online and offline, even the retailer financing. While everyone has their preference, I would much rather apply online. I do not have to leave home to do it and through platforms like Loanry, I can search multiple lenders at once. Trust me when I say that this is much simpler than doing so in person or one at a time. However, if I had a good relationship with a credit union, I would also consider applying there since they usually charge lower interest than many lenders and have favorable repayment terms. The choice is yours but the more time you can save yourself, the better- at least in my opinion.

What to Do Next

Many people I know who get a personal loan go through all that they need to get approved, purchase or pay the item they got the loan for. And more often than not they forget that the loan will be coming due. Suddenly, they are struggling to pay a payment that should not be a surprise at all. Let’s try to prevent that with you. If you get a personal loan for a pool, take the following steps to stay on top of it:

  • Be sure that you know and understand your payment, payment date, interest rate, whether there are any early payoff penalties, and who to contact in case the worst happens.
  • Write the payment date on a visible calendar and add an alarm on your phone so there is no way it sneaks up on you.
  • Budget the payment in. Do not think that it will magically take care of itself because it will not. Add the payment to your budget and figure out if you need any extra cash to make the monthly payment. If so, start working on that quickly.

One more thing: enjoy your new pool.

Yes, you need to pay for it but, honestly, if you are not enjoying it, what is the use of being in debt for it. My biggest rule when it comes to debt is that I am not going into debt for something that I or my loved ones will not benefit from. Enjoy it as often as you can, especially if your summers are short. In Alabama, we can usually get away with swimming from the end of April until sometimes November. One year, I was sweating on Christmas Eve (it’s very strange weather around here). However, some people do not have that many warm days, so swim as much as you can.

Conclusion

In the end, a pool loan is just like any other personal loan. You borrow the money and you have to pay it back. If you do not, it can mess up your credit that you will likely need again in the future. One way to do this is to personal loan shop for a new pool. Look for the lowest interest rate and best repayment period you qualify for. Then, be responsible and diligent in making your payments.

What is A Personal Loan Origination Fee?

There comes a time in everyone’s life when he or she needs a little extra money. It could be because you want to make a big purchase for a house or car. It may be because some unexpected emergencies occurred and you need money fast. No matter the reason, it will happen to you at some point. You are going to need a loan. As with anything, there is a good way to go about getting a loan. There is also a terrible way to do it. I am an advocate of doing things the smart way. That involves learning as much as you can about the process so you can make sound decisions.

What is an Origination Fee and How it Impact Personal Loan

Lenders are not always the best at explaining all the little details. Personal Loan Fees Details like fees, such as a personal loan origination fee are often hidden in the fine print.

A personal loan origination fee is a combination of several different fees. Really this makes things easier for the lender. They hit you with this one fee that is some percentage of your loan, perhaps 10 percent, to cover all of their administrative costs like filing the application, running a credit check, and sending the money to your bank account. Continue reading to find out more details about personal loans, including a personal loan origination fee and where to get a personal loan.

Origination fees are often just a percentage of the loan amount and in most cases is somewhere between 1% and 8% on typical personal loans in the United States.

Smart Money Tip!

Your origination fee could be determined by total amount of the loan, your credit profile and how long the loan term is, the purpose of the loan and even if you have a co-signer. It depends on the lender. As you shop lenders, it’s critical you ask them about origination and other fees. Most likely they won’t negotiate and if you don’t like the deal don’t be afraid to walk away.

What Fees Are Associated With A Personal Loan?

Every loan has fees. You just cannot avoid it. You should, however, know what they are and try to minimize them as much as you can. Whenever possible avoid an application fee. Some lenders charge you just to fill out the application. You pay this whether you are approved or not. You must pay this fee out of pocket. It is usually a small fee, less than $50. For me, it is the principle of the matter. A lender charging this fee is just looking to get some quick money out of you. Avoid it whenever you can. Most other fees you cannot negotiate.

Remember the personal loan origination fee from earlier in this article? Usually, this is an application fee and administrative fees rolled into one. This fee is for the cost of the application, running a credit check and handling all the administrative pieces of your loan. This fee does not come out of your pocket. It comes off the top of your loan. What this means for you is, if you ask for a $5000 loan and the lender charges a 10 percent personal loan origination fee, that means the lender is taking $500 off the top of your loan. You only see $4500 of the loan right from the start.

What Is The Process For A Personal Loan?

The process for a personal loan may seem daunting. It is not as bad as it may seem, once you understand the personal loan process. The first step is knowing why you want the loan. This guides what type of loan you need. For example, if you want to consolidate debt, you would not apply for a mortgage. Then you should do a little bit of research to find loan places that meet your needs. You want a loan that fits your budget and has an acceptable interest rate. When you have decided where to apply for your loan, be sure to take a look at the fees, including the personal loan origination fee.

Once you have done that, now it is time to apply for the loan. Depending on your lender, you may be able to apply online. Either way, you must answer a list of questions, including income, rent/mortgage payments, and identifying information such as name, address, and social security number. Depending on the lender, they may ask more detailed questions. You will have to provide documentation for proof of income and a picture ID. The lender does a credit check. You agree to that as part of your application. Then, you wait for the decision.

Other Loan Phrases I Should Know

When you are applying for a loan, you should read all the documents carefully. I know many people do not because it is full of a bunch of words most people do not know. I’m going to help you out by defining some loan related terms here for you. I talked about a personal loan origination fee above and that is a big one that you should understand.

An unsecured loan does not have any type of collateral attached to it. These loans a riskier for the lender and typically have a higher interest rate.

A secured loan has collateral attached to it and are less risky for the lender. These loans have lower interest rates.

Collateral is a tangible asset that you attach to your loan. You are promising to pay the loan, or you will give up the asset to the lender. Your car is considered collateral in an auto loan, the same is true for your house and a mortgage.

Default is when you do not pay the loan as promised.

Interest is basically what the lender charges you to allow you to borrow money. The interest has an annual percentage rate (APR) which you pay for the life of the loan. The lender has some flexibility in what they charge you in interest. The lower your credit score is, the higher your interest rate.

What Else Should I Know About A Personal Loan?

I have briefly touched on interest above, but I would like to bring it up once more. I want to make sure that you have a full understanding of the impact of your interest rate on your loan. Also, I am going to use an example to highlight how interest impacts your payment. This is purely an example, these numbers are not accurate. You want to borrow $4,000 and you need $4,000, but you know the lender has a personal loan origination fee of 10 percent. That means borrowing $4,000, you only get $3,600. Now, you need to borrow $4,500, which means after the 10 percent personal loan origination fee, you get $4,050.

Let’s see what interest does to that $4,500. You have pretty good credit, so your interest rate is 10 percent. That means you are paying $450 on top of the $4,500. Now, your total loan amount become $4,950. Remember you only wanted to borrow $4,000. Let’s see how that breaks down per month. You only want a loan for 36 months. That means your monthly payment is $137.50.

Let’s see how that changes when your credit falls into the bad zone. You have bad credit, so your interest rate is 20 percent. You are borrowing $4,500, so your interest amount is $900. Now, your total loan amount becomes $5,400. Over 36 months you end up paying $150. Your payment has now increased by a little over $20 per month. That may not seem like a lot of money to you, but for some people it is significant.

The Ugly Side Of Personal Loans

Often times when you are looking for a personal loan, you are in a position where you need the money. This can be a scary place, especially if you do not know much about the loan process. Think about it, you are desperate for the cash and you take the first loan you can get. Most likely, you will fall into a personal loan trap. Loan traps can take the shape of many different things. It can mean ridiculously high interest payments. It might mean an astronomical personal loan origination fee.

Keep in mind, there are many people out there preying on those in vulnerable situations. They are looking to scam you. If you make a quick decision without thinking it through, you might get caught up in a scam. You need to be aware of the lender you are using. Use a personal loan checker to make sure you are getting best deal. Read all of the fine print to understand their fees and interest. You should not jump into a personal loan without knowing all the information.

My Credit Score Scares Me

Does your credit score scare you because you do not know what it is? Perhaps you do not understand it and find it scary. A typical credit score range from 350 to 850. Most people have a credit score somewhere between 600 to 750. Good credit falls somewhere between 670 to 800. Anything below 570 falls into the danger zone of bad credit. When you have bad credit, it is much harder to get a good interest rate. You may also find that you have a higher personal loan origination fee and it is difficult to be approved for a loan.

You should pull your credit report and look at your credit score once a year. This helps you remain in control of it. You can also check it for errors, so you can address them. If you do not know your credit score, you cannot do anything to improve it.

How Can I Fix It?

The good news is, you can always work to improve your credit score. I will not lie to you, it takes hard consistent work, but it is possible. You must be focused on the goal of repairing your credit. Start by creating a positive payment history. That means you need to be sure to pay all your bills in full and on time. Obtaining a personal loan may help you to improve your credit because it allows you to work on a positive payment history. You may have to shop around for a loan that meets your budgetary needs. You also want to make sure you are hit with a high personal loan origination fee.

I’m Not Sure I Can Afford A Personal Loan

This is the first question you must answer for yourself. Only you can decide if you can afford a personal loan in your budget. You need to look at your budget and determine how much money you can pay in a monthly loan. If there is not extra money, stop there. You cannot afford a loan and should not even consider one. Doing so only puts you in a terrible financial position. If you think you can afford a loan, be realistic in what you can afford to pay each month. When you think about how much you want to borrow consider the personal loan origination fee and interest rates in your calculation.

I Am Terrible At Budgeting

Creating a budget for yourself is key in controlling your finances. Sometimes, when I talk about budgeting, I swear I can hear people groan. No one ever wants to put themselves on a budget. If you think about it, there is not other way to control your spending and make sure you have money for all of the things you need, and some of the things you want. You need to make it a habit and then it gets easier. There are so many budget apps and websites available for free. It is silly for you not to use one to put yourself in a better place.

How Can I Save Money?

Saving money may not seem like a viable option for you. It is hard, especially when you feel like your money is already spent before you earn it. There are many ways to save money. However, it takes practice and it means giving up some things. You can think of it as a temporary solution until you have some breathing room with your finances. Take a look around your house and see if you have items you can sell. This is a quick way to make money and clean your house of clutter. Consider getting a part-time job to earn some extra cash.

Take a look at your spending and cut out those daily coffee stops, or lunches out. Limit your meals out to once a week so that they become special events and not everyday occurrences. Consider getting rid of your tv for a few months. You can save a lot of money and invest that time into doing something more meaningful.

Are There Any Other Options To A Personal Loan?

There are many alternatives to a personal loan from a traditional lender. You could consider borrowing money from family or friends. This eliminates the extra money spent on a personal loan origination fee and interest. Instead of borrowing money at all, you can save money for the items you need, or want. This prevents you from having to borrow any money at all. That way you would not have to take on any more debt.

Conclusion

The most important thing you should take away from this post is the fees associated with a personal loan. You need to pay attention to things like the personal loan origination fee and interest rates. These things add on to the amount of money you borrow. If you are aware of them, you can do some research for the best rates.

How to Get a Personal Loan Without Hurting Your Credit

After you have spent some time working on your credit and finally see some improvement, the last thing you want is to mess it up again. Sadly, your much better credit score will not prevent an unexpected expense from popping up. Suddenly, you need money that you do not have. Now you need to find a loan but you do not want it to undo all of your hard work. Is it possible to get a personal loan without hurting your credit?

In truth, a personal loan can only do one of three things: improve your credit, hurt your credit, or not touch it at all. If you get a loan and make your payments on time, it will improve your credit score. If you do not pay on time, it will hurt your credit. However, there are some loan companies that will not check your credit or report your payment history. If you want to get a personal loan without hurting your credit, this information can help.

Get a Loan With No Credit Check

There are, indeed, loan companies that do not even check your credit to approve you, but most require collateral or charge high-interest rates- or both. For instance, neither title loan companies nor payday loan companies always check your credit, but both may require collateral and can charge high-interest rates. While you can get a loan without a credit check, you need to carefully consider the consequences that go with it. The following are some loan types that do not require credit checks.

Personal Loan from Family or Friends

Some people have loved ones that can help them out when they need it. If you do, this might be the best option for you since it might be the simplest one and it will not affect your credit. However, money can tear relationships apart, so if you do borrow from a loved one, pay them back as soon as possible.

Credit Card Cash Advance

Most credit cards offer the ability to get a cash advance from your available credit. As the credit is already available to you, there is no need for a credit check. The trade-off is that there are usually fees for the withdrawal as well as high-interest rates. Before you go with this option, find out how much a cash advance from your card will cost you.

Payday Loans

Payday loans are extremely easy to attain. Pretty much anyone with a regular income and an active checking account can get approved. Since the borrower is putting up collateral, there might be no credit check is required. However, they come with high interest rates so if you cannot pay the full loan and interest on your loan, this is not a good option.

Title Loans

Title loans are similar to payday loans. They require collateral instead of checking your credit. If you have a regular income and a vehicle that has enough value, you can usually get approved. Also similar to payday loans is that title loans have high-interest rates- really high-interest rates. If you choose a title loan and you cannot pay it off that first payment, you are in for an expensive cycle.

Some Unsecured Personal Loans Online

You can also shop personal loans online, but if you get a hard inquiry it can affect your credit. By using the correct search terms, i.e. “no credit check”, you will likely find a list of lenders that you can apply with. Some people find it much easier to get a personal loan online than in person.

How Does A Personal Loan Effect Your Credit?

Other Secured Loans

A secured loan is simply a loan that is connected to collateral, making both title loans and payday loans fit this category. Fortunately, there are some other secured loans available that are a bit less drastic. For instance, your bank or credit union might approve a loan using your savings account as collateral. Some banks will also use your car title as collateral, but the interest rates are generally much lower than with a title loan company.

Bank Statement Loans

One of my new favorite topics is bank statement loans. For years, freelancers, self- employed people, or others with unconventional and irregular income, such as tips, have been pretty much out of luck when it comes to getting a loan with a decent interest rate. In fact, we have been stuck going for title loans- at least I have. Most lenders do not want to approve a loan for someone that does not have a steady income.

Then, a wise person noticed this market gap and jumped on it. Someone realized that just because a person does not have an hourly rate of pay, it does not mean that person cannot afford a loan. And so bank statement loans were born. A bank statement loan is a pretty simple concept. Instead of checking credit and asking for check stubs, the lender will ask for 12 – 24 months worth of bank statements. Your ability to repay the loan is based on deposits and any other bank activity they factor in.

Most often, this term is used for mortgages but that is not the only type of bank statement loan available. Freelancers, the self- employed, servers, and contractors finally have a fair shot. And these loans are a perfect choice for someone with bad credit.

A Previous Lender

If you have borrowed from a lending institution in the recent past, there is a chance that you could get another loan based on your repayment of the first one. This may not always be the case, though. A quick phone call to that lender can tell you whether or not they would run your credit again.

Where to Get a Loan?

When it comes to getting a personal loan, you have many options. As mentioned above, your bank or credit union is always a possibility. Remember though to always compare their interest rates to others. It is not necessary to pay really high interest just because you bank with them. Also, most cities have at least a few lending institutions around. You can call them or drive around and speak to them in person.

In my humble opinion, the easiest way to find a personal loan without hurting your credit is by finding an installment loan online. It is much easier to locate lenders that match specific criteria, i.e. “no credit check”, online. You can also start the application with multiple lenders at once, decreasing the amount of work you have to do. Using a platform like Loanry is helpful to find a trustworthy lender that might match your needs. As an added benefit to online loan shopping- and a favorite of mine- you can apply from your couch in your pajamas with bedhead and no one will ever know.

The Next Step

If you cannot find any credit check loan, you might try looking for one that can approve you based on a soft inquiry. Each company that runs your credit either makes a soft inquiry or a hard inquiry. Do you know those pre-approvals for loans and credit cards that show up in your mailbox? You are pre-approved based on a soft inquiry. It is basically a surface credit check. These do not count against you because no one needs permission to run them. Otherwise, you probably would not have any of those pre-approvals.

A hard inquiry is quite different. At some point, you have likely signed a document for a job, a loan, or something else that asked for your permission to run a credit check and background check. These are for that company to do a hard inquiry, which is a hit to your credit. This is when they dive deep and dig up all the juicy details of who you owe, how much you have owed it, and for how long.

Do understand, though, that this type of hit on your credit is nowhere near as bad as an unpaid account, and it will not stay on your report as long. It might bring your score down a few points but it probably will not be a big enough impact to alter an approval decision. It merely states that someone has looked into your credit lately. And if that hard inquiry can get you a loan with a low interest rate and great terms, it is worth the temporary hit on your credit.

You will likely find that most unsecured loans will run a hard inquiry, but a few might approve you based on the results of a soft inquiry. By asking questions and reading the fine print before applying, you should have no trouble distinguishing between those that perform hard inquiries and those that do not.

Which Way Should I Go?

The direction you take should depend on the answer to the following question: What is your purpose for the loan? Do you need the loan to pay for something, or is it just for building or fixing your credit? All loans are not created equally, so treating them equally can be a costly mistake. Some loans are better suited for credit building than others, and some are better suited for bill paying.

Being clear on your purpose will help you choose your path. For instance, if your purpose is to build your credit, a loan from family or a friend is not going to help- unless, of course, they own a financial institution that reports to the credit bureaus. Otherwise, you are out of luck. Additionally, most payday loan and title loan companies do not report to the credit bureaus- unless you do not pay them. In order to discourage opting not to pay, they will report non-payment. So title loans and payday loans are not a tool for building credit, but they can destroy it if you are not careful.

At the same time, if you need money for a bill, a secured loan is probably going to be counterproductive, especially if you need to put up the same amount of collateral as the loan you are receiving. So, again, the purpose of the loan should guide you through the decision process.

How Do No Hard Credit Check Loans Work?

Commit to Repaying Your Loan

Finally, there is one very important step to getting a personal loan without hurting your credit. Are you ready for some outstanding advice? If you really do not want a loan to hurt your credit, here is what you need to do: pay it back on time. That’s it, you just need to do what you agreed to when you got the loan. If you repay it on time it can do no damage because you held up your end of the agreement. And as backwards as it may sound, the first step in repaying a loan is only borrowing what you can afford to repay. Otherwise, you are asking for trouble.

While making every single payment on time should be the goal, it is not a perfect world, so you need a plan. The saying, “When you fail to plan, you plan to fail,” is extraordinarily accurate in the world of finance. Without a plan, you will likely end up in an uncomfortable amount of debt, and that is not somewhere you want to be.

I have heard people say that planning is a waste of time because plans always change. As a homeschooling mother of four from kindergarten to high school, I am well- versed in how quickly and easily plans can change. I actually cannot think of a single school day in the last twelve years that something did not change. Yet if I try to start our day without a plan, I am lost before I start.

Keep in Mind That Plans Will Change

They are fluid, not concrete, and that is okay. You do not need them set in stone- you simply need a map to guide you in the right direction. In the case of repaying the loan, making a plan is really simple. You need only to know when payments are due, how much is due for each payment, where exactly the money will come from to pay that payment, and how you will make the payment, i.e. automatic debit or cash in person.

Once you have your basic information, repaying your debt comes down to committing to the plan. Write the date in your planner or add it to your Google calendar so you will be reminded every month. If you need to, have a friend or family member ask you every month if you have made your payment yet to keep you accountable.

Also, acknowledge the fact that we humans have a “reward center” in our brains. If you attach a task you do not love to a reward, you are much more likely to complete the task. Give yourself a small reward after each payment, or a large reward once you have paid it off. It can be as simple as taking a bubble bath or as elaborate as an island vacation. Choose a reward that: 1. You can afford without taking out another loan, and 2. That will actually motivate you. The actual reward you choose is completely up to you.

If the worst occurs and you absolutely cannot make a payment, face the situation head on. Call your lender and explain your situation. Unless you are late for many payments, they will likely work with you instead of immediately reporting a missed payment. They really get nothing out of reporting you. They would much rather get their money back, even if it takes a little longer than planned. Speak to them as soon as you know you cannot make the payment. The earlier you explain, the better.

Conclusion

Your credit can affect your entire life. It can dictate where you live, where you work, what you drive, and more. If you find it necessary to get a loan, or you just want to build your credit, you need to be careful with it. The goal is to get a personal loan without hurting your credit. If you know that you cannot repay it, do not risk it if it can be avoided. If it cannot be avoided, do everything you can to pay every payment on time. This may require working overtime or getting a second job, but it is worth it to protect your credit. Be vigilant in your choices and diligent in your planning so that this experience can improve your credit instead of hurting it.

How to Get a Personal Loan to Repair Your Car

When it comes to frustrating events, car trouble ranks somewhere around the top of my list. It is always unexpected – especially if you do not know enough about vehicles to easily feel or hear a change in performance. And I have been through some doozies when it comes to mechanical issues. One year, I had a car actually catch on fire while I was driving. It was an old car that sparked something combustible and just decided it was through.

That is not the only time I have gone without a car – it was just the most traumatic time. Either way, I know what it’s like to have your mode of transportation be snatched away from you. I cannot think of any other time in my adult life that I feel more helpless. Not being able to get around when you need to is a horrible feeling, and you want to do anything to change it, even if it means going into debt. That should be the last resort though not the first choice. Let’s start with something a little less drastic.

Personal Loan to Repair Your Car? Get Some Useful Information

When you are faced with a desperate situation, you are tempted to make desperate choices. Let’s try not to do that just yet. Desperation almost always leads to bad decisions because the problem tends to look worse than it is. When you calm down and the fog clears from your brain, you can make much wiser choices and see wiser solutions. Start by truly assessing the situation. The following questions should help:

What is wrong with the car?

So what is actually wrong with your car? Is it damaged from a wreck? Is the battery dead? Or maybe is your transmission or something totally different? As I always tell my kids, you cannot fix a problem if you do not know what that problem is. The beginning of your evaluation has to be determining what is wrong with it.

The issue with the car will affect how much the repairs will cost, how long it will take to fix, and who is certified to fix it. It also determines if an insurance company is financially responsible for the repairs. If you are lucky, you can find a mechanic that will take a look at your car for free. Or you might be one of the fortunate few that knows their way around a vehicle. Get someone to help you figure out what the problem is- preferably at no cost- so you know which direction to move in.

Is a personal loan really the best or only option to pay for Auto Repair Cost?

It may be tempting to jump up and decide to get a loan so you can get your car fixed quickly, but is it really necessary? Do you have some savings you could dip into instead? Will a family member pay for it and let you pay them back in payments? Getting a loan to repair your car is a big deal. It is a financial responsibility that has the potential to mess up your future if it is not handled correctly. So before you choose to take on this responsibility, be sure that it is your only option in paying for repairs.

How much will it cost to fix?

Auto Repair Loan

New batteries or other minor issues probably will not cost much at all. Small purchases such as these should be easily covered with a paycheck or credit card, if you have one. More serious issues will cost much more. In this case, getting a loan to repair your car might be necessary.

Is it worth the cost to fix it?

Be honest with yourself: is it worth the amount it will cost to fix it? If it is a used car that needs thousands of dollars worth of work, it might be better to count your losses and start working toward a new car, instead. This is obviously a personal decision but try to be logical when making it. If you do not know the value of your car, you can find out through the Kelly Blue Book or something like Carfax.

The vin number should give you all of the information you need about your car. If the value is less than the repair costs, unless you are keeping the car for sentimental reasons, your best bet is to get a new one.

Is there another way to get around for now?

A couple of years ago, our only source of transportation broke down completely, and we have zero public transportation in my hometown. Fortunately, I live within walking distance of the restaurant I worked at the time. When I had to, I would walk back and forth to work, but more often than not, a coworker would bring me home if they knew I was walking. I did that for about three weeks until I could get my truck fixed.

What about you? Is there another way you can get around, even for a short time? Is there public transportation in your area? Do you have a friend or coworker that will get you back and forth in exchange for some gas money? People are more willing to help you out if they know you are not taking advantage of them. Bottom line: if you can find an alternate way, you can save the money you need instead of getting a loan to repair your car.

Where to Get a Loan to Repair Your Car?

If you have decided your only option is to get a personal loan to repair your car, that’s okay. You are not therepair loans first, and you most certainly will not be the last. What is important now is that you find a loan with terms and interest rates that you can easily handle- if at all possible. To do so, you most likely need to emergency repair loan shop.

While you can drive around town- if your car is still driveable- and physically apply in person at multiple places, I cannot imagine a better time to shop online for loans than when your car is in questionable condition. Instead, let Loanry simplify the process. You can find a lender on our site from your couch in your PJs. We do not lend the money ourselves but instead, you find a lender without the hassle.

Types of Loans for Auto Repair

Once you have exhausted every other avenue you can think of, you might only be left with the option of getting a loan to repair your car. If that is the case, you need to know what types are available and which ones to steer clear from.

Emergency Repair Loans

There are loans known as emergency repair loans. This simply means that the lender tries to process your application faster, often as fast as the next day. Thanks to the fast application and processing times, you might get charged a higher interest rate than you would with another type of loan.

emergency repair loans

Payday Loans

I am sure you have heard of them, and yes, payday loans are an option. If you choose a payday loan though, there are a couple of things you need to understand. Most first time payday loan borrowers do not get approved for more than $150, so this probably will not help you much if the cost of your repairs exceeds that amount. Also, these interest rates are very high, so if you must take out a payday loan, pay it back asap.

Title Loans

Title loans are also available, but may not be viable if your car is broken down. Most title loan companies- those that you walk into, anyway- take pictures of your car as part of the application process. If you cannot drive your car, they will likely not approve you.

With online title loans, the requirements may be different but that will depend on the lender. If you do get approved for a title loan, pay it back as quickly as you can, and definitely pay more than the monthly payment. Being committed to a title loan for three years is not something anyone wants to do.

Personal Loans for Auto Repair

I tend to be much more partial toward personal cash loans than any other type of loans. The interest is usually much lower and figured into the payment. You get a longer time frame to pay it off. Generally speaking, they just seem much fairer to borrowers than many other loans- especially payday loans and title loans.

Should You Use A Personal Loan for An Emergency?

Personal loans are designed for long term borrowers. And, unlike title loans-which actually fit the category of short term loan– the monthly payment includes the principle, so it is possibly to actually pay them off without have to eat Ramen noodles and crackers for years to come. If you apply for a personal loan to repair your car and are approved, you receive the loan amount all at once.

If any fees are associated with the loan, such as origination fees, they are usually subtracted from the amount you borrow. The total amount you owe, including fixed interest, is then spread out into monthly payments for the extent of the repayment term. So what exactly are the benefits of getting this repair loan to fix your car?

The benefits

In my opinion, the biggest benefits are the simplicity, the clarity, and that they are designed to be paid off- not keep you in an endless loop of debt. Let’s say you get a $1,000 personal loan to repair your car. The money is then in your possession and you head off to the mechanics shop. The lender gave you a contract that explained exactly how much your monthly payments will be and how long you will pay on it.

The bill for your repairs is only $400, so you have $600 left of the loan for auto repairs. So what do you do? We are going to ignore the temptation to spend for a minute and think about this. There are a few wise options for this extra cash.

The First

One is that you ask the mechanic to go ahead and fix another issue that you know needs to be taken care of soon.

The Second

The second is that you can place the $600 in a savings account with intentions of using it to make your monthly payments. That means it is also there if you need it again. You never know what might pop up next.

The Third

The third is you might pay off another monthly bill whose interest is hurting you. We will use a credit card with a $500 balance for example. The interest is 25% and that is more than you can handle paying on a regular basis, so the balance grows. If you use the additional $600 to pay off that credit card, you are helping yourself in two big ways: you are getting the credit card off of your credit and you are making it easier to repay the personal loan to repair your car. Regardless of how you use it, your monthly payment and terms remain the same.

Personal Line of Credit

A personal line of credit is another fair option, but it works a little differently. With a personal loan, you are given the entire amount upfront, minus any fees. With a personal line of credit, you are approved for a certain amount which is then put it something similar to a savings account. The full amount is available to you if you need it, but you do not have to borrow it all. The interest is only calculated according to how much you have taken out.

A personal line of credit is an excellent loan to repair your car. Quite often, when you start fixing your car, you- or the mechanic- start to notice other things that need to be fixed. I used to hear elder family members joke about car repairs. They would say something like, “I went in for an oil change and came out with a whole new fuel pump.” I know the feeling. Every time I have taken a car in for work, I am given a list of things that need to be fixed. I do not doubt the mechanic’s expertise, but I only have so much to use for repairs. If it is not imperative to get me home that day, it has to wait.

However, You do Not Necessarily Have to Wait!

However, if you have a personal line of credit, you do not necessarily have to wait. So let’s say that you go into a repair shop with your vehicle to get a tune-up and some new wheels. When the mechanic comes to speak with you, he tells you that while putting on your new tires, he noticed that your rotors are worn out. Now, you need new rotors and new brakes. Great. If you have a set amount of money, you might have to wait on at least one of those. Sadly, both are very important but you did not budget for both.

This is when a line of credit comes in handy. Perhaps you withdrew $300 from your $1000 credit line for the tune-up and tires. With the extra work, you might need another $300 or so. No problem, just head back to the bank or your other financial lender and withdraw the extra $300. You can continue to withdraw more money until you reach your credit limit- in this case, that is the $1000. Lines of credit are very helpful when you are unsure of the amount you actually need.

Secured Loans

Another type of loan to repair your car is a secured loan. A secured loan is not necessarily separate from the other loans mentioned. It may just be an additional characteristic, and it just means that the lender needs you to put up some collateral to ease the risk they are taking. Most often, those with low credit scores or unfavorable financial conditions are the ones that need collateral.

Both payday loans and title loans are secured loans, but there are definitely some with less harsh terms. Some financial institutions will use your title as collateral without it being a traditional title loan. The loan itself is actually an installment loan. Your title is just in the financial institution’s hands until you repay the loan. The interest rates with secured loans are often much lower.

Other than vehicles, lenders consider collateral such as real estate property, valuable electronics and jewelry, and even certain types of investments or bank accounts. Lenders have their own guidelines about what they will accept, but the bottom line is that if you default on the loan, they can sell your collateral to recoup their losses.

Steps for the Future

As much as I wish it were, it is just not possible to prevent all future car issues. You cannot control a nail in the road, you cannot control the weather, and you definitely cannot control how other people drive. So it is safe to assume that you will experience more car trouble at a later time. What you can do is minimize your chances of car trouble and decrease the impact it has on your life by following these steps:

Regular Maintenance

Regular oil changes are important- just in case you did not know. I did not get my first car until I was grown, and no one taught me how to maintain one. Not a soul had ever said, “You have to change your oil.” So it was no surprise to find myself sitting on the side of the road with a smoking engine and a six month old baby. To fix my car was going to cost way more than an oil change would have.

Oil changes, tune-ups, and anything else you know you need should be a priority. Ignoring them can cause a lot of trouble. And parents, please do not assume that your children know how to take care of their vehicles. Take the time to teach them, so there is no doubt or confusion.

Emergency Fund

When at all possible, have an emergency fund available so that if you need to make repairs again, you can do it quickly. Experts suggest having 3 – 6 months of expenses put away for a rainy day, but I do not think that car expenses should be calculated in that. I try to keep savings for extra expenses totally separate from savings for regular expenses.

I learned a tip years ago about saving for additional expenses. Though I cannot always follow through, life is much smoother when I can. I have a stack of envelopes that each have their own label such as “Christmas”, “Auto Care”, “Kids’ Birthday”, “Homeschool Resources”, and so on. Every chance I get, I add something to those envelopes. I have apps that I use for cashback on groceries or rewards for surveys.

When I have enough to cash out, I try to spread that amount over all of my envelopes. Sometimes I receive gift card codes to Amazon or Walmart instead of cash. I put those codes into envelopes like “Christmas” or “Kids’ Birthday”. It does not matter if it is $0.50 per week. When the day comes that I need it, like at Christmas or with auto repairs, I am thankful that I have every tiny bit. Give it a try, especially with things such as auto repairs. Find little ways to earn extra and put it away until you need it. You just might be surprised.

While having the cash put away would be better, you might also consider applying for a line of credit before you actually need it. If an emergency occurs, you can then withdraw from your line of credit to make repairs. Knowing that it is available just in case has the power to lighten heavy burdens.

Maintain Insurance

Auto insurance will not necessarily cover all of your car issues, but it will cover some, especially if the problem with your car is due to an accident. Keep your policy paid and up to date. And since insurance premiums tend to fluctuate so often, at least once a year you should shop around for better rates.

Roadside Assistance

Most often, insurance policies come with roadside assistance but sometimes it is an extra expense. However, when I looked into it, it was no more than a few bucks a month. Trust me when I say that you will be glad you spent that money when you are stuck on the side of the road with no one to come help.

Keep a Spare Tire & Some Fix a Flat in Your Car

Last year, my family and I were hit by another vehicle. It destroyed the front drivers’ side tire, so we had to use the spare to drive home. Before I could even get a new tire on the car a couple of days later, another one on the passenger’s side went flat. This time, we did not have a spare available since it was already on the car. The moral of this story is to waste no time replacing tires and be sure you always have a spare- two if you have space. Additionally, keep a can or two of fix a flat in your trunk for really desperate times.

Get a Battery Charger

If you can spare the money, purchase one of those portable car battery chargers. They do not necessarily get your battery back in tip-top shape. But they can get you from a dead battery to home. You might also consider having a battery charger to keep at home. I remember more than one occasion as a child that the car battery would die and my dad would whip out his charger to get us home.

None of these tips will prevent problems, but they can minimize them. Having a flat tire and putting on the spare is no fun, but being stuck on the side of the road without one is much worse. Likewise, paying insurance every month that you do not use feels unnecessary- until you need it. Take care of your car and put these preventative measures in place, and you should bounce back from car disasters much easier.

Conclusion

When you are met with the inevitable headache of car trouble and need some type of repairs, you have a few options. Though a personal loan to repair your car is an option, do not make this decision lightly. Be ready to commit to the loan until it is fully repaid. And, of course, apply only through trusted lenders to prevent any additional headaches, like scams and identity theft. Be wise and diligent in all of your financial decisions.

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.

Your A+ Guide to the Five C’s of Credit

There have been a couple of times in my life that loan approvals and rejections have utterly shocked me. I have seen some people with really low credit scores get approved, and some with really high ones get rejected. It seemed so twisted, especially since I grew up hearing that your credit score was the “be all, end all” when it came to financial success. I realized very quickly that I had been given some bad information. Credit scores, it seems, are only a factor in the equation.

How Credit is Calculated

If your credit score is only a portion of the decision, what else is considered? Basically, anything that can show them whether you can repay. The bottom line with a consumer loan, or any other loan, is that the lender wants their money back, and they add certain things into the equation to determine if they will get it back or not. Your credit is not determined by a single item.

Instead, it is an equation of multiple factors- all of which speak to your ability and possibility of repaying the loan. These factors are lovingly referred to as the five C’s of Credit.

Understanding the Five C’s of Credit

Have you ever heard of the Five C’s of Credit? I like that name because it tends to lighten the seriousness- just a little bit. While credit is a serious thing, being way too serious and stressing out about it will only hurt you. Stress is a killer, so we are going to keep this on a less serious note as well. The five c’s of credit are going to help you understand credit terms and decisions a little better.

Five Cs of Credit

Imagine you are going on a trip to fabulous Honolulu, Hawaii. You want to take a friend along but cannot decide which friend to take. You want to be fair in your choice, so you decide to look at each friend objectively. Though you are paying for the trip up front, the friend you choose will have to pay you back and cover their own food. As there is money involved, you score each according to the following five categories:

The Five C’s of Credit: 1. Character Five Cs of Credit Character

The first of the five c’s of credit is character- the one I happen to think is the absolute most important. A person’s character can lead one in the decisions he or she needs to make- like relationships or loaning money. In very simple terms, when it comes to the five c’s of credit, character is based on credit history. In the case of the trip, you can look at this two separate ways.

First is the obvious: do any of your friends have a history of not repaying personal loans? Remember, you need your money back so if any of your friends have a history of not repaying, that is probably not the friend to take.

The second way to look at this is through plain enjoyment. You are going to Hawaii to have some fun. Which of your friends knows how to have a good time? Which ones will want to stay in the hotel room more than go out? Or worse, complain the whole time they are there?

You are asking for a miserable vacation if you take someone with you that will not enjoy it. Trust me. My mom did that once when I was a teenager. He was the most miserable person I have ever known, but you would think being at a beautiful beach would make it better. Nope- I think he was even more miserable there. And he made all the rest of us miserable with his non-stop complaining, and it is really difficult to make me miserable at a beach. That was the worst vacation ever.

As far as your credit goes, your character is determined by your known previous financial actions- just as you scored your friends according to their known actions. The decisions you have made in the past speak to your character, to whether or not you are likely to repay the loan. In fact, whey judge your character by how likely it is you will be 90 days late or later in a two year period.

You may be saying, “But I’m in better financial shape now. It’s not fair that they judge how I will do now by what I did in the past. I was a stupid kid, then.” I know- I have had those same thoughts run through my head before, but you have to be fair to financial lenders, as well. They have no way of seeing in the future, so they have to go by your previous actions.

It has often been said that past behavior is a predictor of future actions. How else can a lender decide if it is safe to loan money to you? However, while your character is a part of your credit worthiness, there are four other parts that are looked at. So while there is no guarantee, you might still have a shot at borrowing if the other factors look pretty good.

The Five C’s of Credit: 2. Capacity

The second of the five c’s of credit is capacity. While character can be judged more subjectively, capacity is pretty straightforward. It is simply the ability one has to repay. Let’s put it like this: if you know that one of your friends has to work two jobs just to get by, they probably do not have the capacity for a luxury trip. Unless you change your mind and decide to pay for all the trip expenses, it would probably not be fair to even ask that friend to come.

If, on the other hand, you have a friend that is constantly going on trips and just has cash lying around, they likely have the capacity to repay. As far as this goes, that friend would probably be the best one to ask as they can afford it. However, that friend may also be your most miserable or negative friend, so judging just by capacity alone is not wise. That is why there are multiple factors to calculate.

Lenders look at income capacity to see whether or not you have the ability to repay the loan. If your outgoing money is more than your income, they will say you do not have the capacity to afford a loan. And, truthfully, how comfortable would you be loaning someone money that did not have a way to repay you?

It would be better to just give them the cash and not expect it back. Though some friends may do that, do not expect a financial institution to. They want you to have an income that outweighs your ongoing debt.

The Five C’s of Credit: 3. CapitalCapital

If one of the friends you are considering offers to put up half of the cost up front, you are probably most likely going to choose them- or at least move them to the top of the list. Why? Well, for one, they are easing your financial burden. If they put up half and you put up half, it is a lot less stress on you. Second, it shows that they really want to go and are serious about doing their part.

The same is true with lenders. When you apply for a mortgage loan, the lender usually wants you to pay a portion upfront. It could be as low as 2% and can go as high as the lender wants. The same is true with car loans- lenders want you to put up a down payment. And honestly, can you blame them? They are putting money towards something for you- something that may cost them a lot of money.

With you putting at least a portion of the cost down, it shows you are serious about this purchase. It means you have some skin in the game, so to speak. You have invested in it, so you are more likely to pay off the loan instead of losing your investment. It’s really that simple.

The Five C’s of Credit: 4. CollateralCollateral

Capital is not the same as collateral, though they have been confused a bit. Remember that capital is your friend paying a portion of the cost up front. Collateral, on the other hand, is something your friend lets you hold until they repay you. It could be a piece of jewelry, a piece of stereo equipment, or something else that they find valuable. The agreement is that if they do not repay, you have the right to sell that collateral to make back your money.

In the loan world, collateral may be a car title, a check, a piece of land, or anything else the lender finds valuable enough to regain their money. While collateral does not necessarily guarantee approval, it does improve your chances because a secured loan- a loan attached to collateral- is less of a financial risk for the lender. If you are applying for a loan, it might be wise to have something in mind that you can use as collateral just in case.

The Five C’s of Credit: 5. ConditionsConditions

Conditions is just what is says- conditions surrounding the loan. That may seem pretty straightforward but there are many conditions that might affect approval. You would need to consider your friends conditions, too. What if one friend has a family or children that she cannot leave for a vacation? What if one of them is allergic to something or has an illness that requires extra thought and preparation? And what if one friend is terrified of flying?

One may not be able to take time from work. And, as awful as I can imagine this to be, one of them might have that rare skin condition that causes their skin to react strangely in the sun. So many things could affect which friend could go with you, and all of those should be considered.

Likewise, a lender has to consider all conditions. Of course things such as the terms of the loan, i.e. principle and interest rates, need to be factored in. How else will you or the lender know if you can afford the loan? However, there are other factors that are beyond the borrowers control that still have to be considered- such as the housing market, in general. A borrower has no control over the condition of the housing market but it can prevent loan approval.

The Equation

When I was in school, I loved math. It was one of my favorite subjects and I made excellent grades, quite often being called a math nerd. I did not mind. In a world of uncertainty, I saw numbers as absolutes. They were constant, and I could expect the same thing out of numbers regardless of anything else that was going on.

While numbers themselves might be absolute, the ways they are calculated can change quickly. Those five c’s of credit we just discussed are all consistent factors of the equation, but the level of importance of each of them can change from lender to lender and loan to loan. Here is the thing many people I know do not pay attention to: your credit score is not all that lenders look at. And, for that matter, your credit score is not just figured according to how much you owe or how much you have paid off. It is based off of a mixture of things.

When lenders check your credit report, they will be looking at all of the factors, but the weight of those factors will be different. While one lender may place more important on character another may consider capacity more important. With secured loans, collateral is often the most important factor. With home and car loans, capital is probably going to rank higher. There are some lenders that only factor in your capacity and, possibly, your collateral.

Finding a Lender

The bottom line with this is that there is no concrete equation that you can plug everything into so you will know if you can get approved. Most lenders will have their own equation, so you will only know for sure when you apply. And since the equations differ among lenders, just because one says, “No”, does not mean they all will.

So if it is so different among lenders, how do you know where to get a loan? You will have to credit shop. This means searching for the type of loan, rates and terms you want among multiple lenders. Then, you apply at each of them because that increases your chances of finding a lender to approve you.

Common Loan Definitions and Related Terms: Lending 101

Yes, I know- it sounds time-consuming. It can be but it does not have to. That is why places like Loanry exists. We help you find a lender. You simply fill out your information, and we find a lender that may fit your situation. If a lender wants more information, they will ask you for it, but you are not wasting time applying for loans that are not even in reach. It simplifies the process completely.

What To Do If You Do Not Get A Loan

If you have exhausted your lending options, cannot find a loan that meets the terms you want, or you are through looking for some other reason, you have two options: give up completely or make yourself a more desirable borrower for the future. Though it can take time, persistence, and a strong will, you can improve your overall credit and increase your odds of approval by using the five c’s of credit to do so. Just follow these steps:

Build Your Credit Character

Remember, character is about your credit history, so to build your character you have to improve your credit history. How can you get credit to improve your credit if you cannot get credit? That’s a great question. Perhaps you could not get credit in the ways you were trying to, but there is something else you can do.

Go to your local bank or credit union and deposit some cash into an account- probably around $500. Don’t freak out yet by saying you do not have $500 to spare because you do not need it to spare. Go to the loan office of that credit union or bank and apply for a secured loan using the cash you put in the account as collateral.

Explain that you are looking to rebuild your credit and you would like to start with this secured loan. Most likely you will be approved because they will usually approve you for the same amount that you have deposited. Again, there are no guarantees, but it is very likely.

This type of loan is good for you because you get the same amount you deposited- meaning you are not losing money, and neither is the bank if you decide not to pay. If they did not approve you for some reason, you can just withdraw your money. Easy as pie.

If you are approved, though, you can begin to rebuild your credit. Make timely payments each time so good marks go on your credit report. For those that can spare any of the loan, put it away to use for payments. Make each payment to the best of your ability. Once it is paid off, do it again and again until you no longer need collateral.

Increase Your Capacity

Again, your capacity is determined by your income versus your consistent outgoing funds. The goal is for the incoming to exceed the outgoing. To do this, pay off any bills that you can, renegotiate things like your cable, and any other item you pay that could be gone or at least decreased. At the same time, increase your income. Ask for a raise, apply for a promotion or a new job altogether, or pick up a second job.

Add Some Capital

If you want to purchase a house, or other large purchase, you need some capital. The amount of capital lenders want fluctuates according to the market and other conditions, so it is hard to put a dollar amount on how much capital to have. However, determine a goal according to the current rates, and once you find or make that amount, apply for something that fits with that.

For instance, let’s say you are aiming for a $100,000 house and lenders are currently looking for 10% capital. This means you need $10,000. When you have that amount together, you find that they are now looking for 20% capital. You have three choices:

-Wait to see if the amount goes back down.
-Find the other $10,000.
-Find a home for $50,000 so you already have the capital ready.

Obviously, that choice is yours. If you are looking for the home you plan to stay in for the next 50 years, you probably do not want to compromise on the type of house you buy. On the other hand, if you are moving to a different state because of a new job that will only last a few years, you could be more flexible.

Decide on Collateral

Having some collateral to put up will generally increase your chances of approval, though it is not a decision to take lightly. Understand that collateral means the lender can take that property and sell it as a means to recoup their losses. While I sincerely hope that you have no intention of defaulting on a loan, life does happen, so you need to be mindful of the collateral you use. You should choose collateral that will not throw a huge wrench in your life if you lose it.

Let me put it like this: collateral needs to have some value or it is of no use as collateral. A car is valuable monetarily, but it is also valuable as your vehicle. It is most likely what gets you and your family back and forth to where you all need to go. So, before putting it up as collateral, really think about it.

Do you have another vehicle you can use? If not, can you easily walk back and forth to work or take public transportation? Basically, can you continue the things you need to do without that vehicle?

Lenders may require a certain type of collateral, so you may only have the choice between using your car title or not getting the loan. If that is the case, you must simply decide if it is worth the risk. Collateral may improve your odds of getting the loan, but you do not need it hurting you in other ways.

If you are unsure of why you are not getting approved, there are ways to find out. First, when you apply and are denied, the lender is supposed to send you a letter in the mail explaining why. It might say things like, “Too many delinquent accounts”, “Judgment including bankruptcies”, “Not enough open accounts”, or something totally different. You can use these notes as a starting point.

Additionally, you can obtain your credit report for free. Once a year, you can get a free copy through each credit bureau: TransUnion, Experian, and Equifax. You want to get a copy from all three because there tends to be different things on each. To get a comprehensive view of which of the five c’s of credit need the most work, you need to see what all you are fighting against.

Also, when you get denied for credit, you have a certain amount of time to request a free copy of your report. The letter that you received from the lender will give you the information to do that. These are just two ways to keep an eye on your credit.

There are a few things that I do to keep a constant eye on mine. I am signed up with Credit Karma and CreditWise through Capital One. I love both because they alert me when something changes for better or worse on my credit. This is great because if something is not right, like a charge I did not make, I know pretty quickly and can take care of it. I also love them because they break down my credit and give me suggestions for improvement.

How to Evaluate Your Credit

No matter how you do it, it is important to keep an eye on your credit, and to consistently evaluate it against the five c’s of credit. The quicker you know these things, the better. To lighten the burden, though, when I say Credit Score Factorsconsistently check your credit and evaluate it, I do not mean daily- or even weekly. The first time you look at it, it will take a little bit. Be prepared to spend some time really working through your credit reports. After that first time, though, once a month or so should be enough.

The first time, pull out a few sheets of paper, your credit reports, a highlighter, and a pen- yes, we are going old school. You can transfer it all to digital files later. In the meantime, look through each item on your report. Does everything look right? If you see something that is unfamiliar, speak to the lender. Some investigation should get you to the bottom of it.

If everything is familiar, pick the first three debts you wish to pay off. I know a lot of people say to list them all at once, but I tend to find myself irritated when I do this. For one thing, the list looks like a mountain I cannot climb. Second, credit changes consistently. If I go through the trouble of listing them in order just to have to change it next month, I am probably not going to continue. Building credit is tiring enough without adding extra work. So pick three and start working. Pluck at it as much as you can- even if it’s $5 a month. It will add up.

Lastly, look at your credit report with fresh eyes. Pretend you are the lender. Would you loan to this person? If not, why not? Which of the five c’s of credit need to be worked on the most? What could the borrower do to change your mind over time? Make a list of those things and turn all of this information into a strategy that you can follow.

Conclusion

Whether you are looking for a loan or building your credit, you just might need to be a bulldog. Have your goal in mind and push toward it until you reach it. For assistance shopping for cash loans, Loanry is standing by to help you find a lender that may suit your need. For assistance building your credit, enlist a trusted friend to push you when you feel like giving up. No matter your goal, you can reach it if you are ready to fight for it.

Should You Get A Personal Loan for Home Improvement Projects?

When I first bought a home, it was one of the hardest experiences of my life. It was something that I had been looking forward to for years, but it wasn’t what I expected. There was so much to fix up, and really not enough time to do it.

Home is where the heart is. It’s cliché, but it’s true. I spend the most time here. This is where my family lives, where we grow, and change and where we want to grow old. Since we also spend more time there and our needs continue to change, it’s also the place where we need the most funds for upkeep and maintenance. On the one hand, it’s my dream house, the place I can be happy and fulfilled, but it’s also the most expensive money sink.

What type of loan is best for home improvements?

I can get home improvement loans from a number of different sources. The most logical sources are via my local credit union or bank, but there are other options as well. I’ve also been looking at making my home more energy efficient, with green technology and other environmentally friendly improvements. Those great energy efficiency improvements also make sense from a cost-to-benefit point of view.

Home Equity Loans or Home Equity Lines of Credit (HELOCs are most popular):

With the home equity loan, I can borrow against the equity in my home, usually all at once. This is probably the most common home improvement that exist. That gives me cash-on-hand to work with for my home improvement projects. It’s like a credit card, since I can just borrow the amount I need and then pay it right back. It can be quick-and-easy.

Smart Money Tip!

My other important consideration is the fact that a home equity loan can be a tax deduction. On the flip side of that, though, you must be sure that you will be able to pay the loan back (with the closing costs figured in as well). Since my home is taken as collateral, there’s also the chance that the lender will foreclose on my house if I can’t make the payments, which is never a great proposition.

Credit Cards for Home Improvement:

I’ve covered previous home improvement expenses and other unexpected costs with a credit card, savings, or even borrowed funds. But home improvement is so expensive. It doesn’t take long for all the back-up credit cards and other loan options to dry up pretty quickly. It quickly becomes obvious that I need to explore other alternative funding sources as loan options.

Title I Loans:

The Title 1 Loans are available from the U.S. Department of Housing and Urban Development for home improvements and renovations. It’s an attractive option, because I am not required to have a minimum income requirement or credit card score. I can be eligible based on ownership of my house for 90 days, but also based on owning property with a land contract.

Using your 401k

Depending on the project, though, I might not have enough time to determine how to pull money out of my 401k. Then, it also takes time to fill out the form and get all the paperwork processed and approved so that I can borrow from my 401k. Of course, there’s also the substantial penalty for pulling the money out early. Even if and when you pay the money back, you’ll end up with less money in your account at the end of the exercise. All taken together, it can just be a pain to tap into funds from my 401k.

Personal Loan for Home Improvement vs. Lines of Credit/Above Options

Not every home improvement loan is the same. I’ve found that a number of options for payment and financing exist and they vary depending on when I need the money and how much equity I have in my house. It also depends on how much the project will cost, and whether I’m planning my project with a larger overall scope. The process of my home improvement loans also depends on the payment options that will work best for me. The best option for me will also depend on what form of payment that I want to use for my home improvement loan.

A home renovation loan doesn’t always need to be completed right away, but it often feels like there’s a sense of urgency. I feel like I have to home improvement loanmake the decision right away and need to get the house fixed. I need to move forward with my life and just get it done. But this is the perfect opportunity to really take a step back and reflect on what I need, what I’d like to accomplish, and what the very basic requirements are for accomplishing my goals. The best step forward is to take a breath, reflect and plan. Here are some top considerations for home renovation:

  • Make a Budget: How much money do I need? What will I need to cover? This must include the costs for materials and supplies, as well as any labor estimates for contractors that I need to bring in.
  • Keep Track of Expenses: I need to carefully track receipts and expenses. One of the biggest stressors in a home renovation project is the “creep” of vendors, materials and supplies. I need to track all the expenses, and not let job delays kill my budget.
  • Make Sure Your Paperwork is in Order: It’s not always easy to organize all my financial records, including student loans, mortgages, bank accounts, etc.

While I may not need all that paperwork for a home renovation personal loan, it’s always a good idea to determine exactly what assets and expenses I have. It would be nice if the assets miraculously multiplied, but just knowing what I have does help too.

Unsecured Loans – Personal Loan for Home Improvement

Unsecured loans are considered “personal loans.” Since it doesn’t involve any collateral, financial institutions consider these types of loans bigger risk factors. That risk factor also means that banks usually prefer to already have a relationship for bank credibility. They must trust me and feel sure that I will pay back the loan as promised. But based on that trust, they may offer me a better interest rate.

Bad credit can also be a factor. As you’ve already seen, your credit can affect your financial situation. It might be more psychological than actual. Your bad-credit perception may have made you not attempt to access other funding options. Of course, you need to research your credit score. A personal loan for a home improvement loan may be more accessible than you’d imagined.

Secured Loans – Another type of Personal Loan for Home Improvement

A Secured Loan typically involves some kind of collateral (a house, car, boat, or other valuable item). The rate of interest and terms may vary. It’s often easier to get a secured personal loan for a home renovation project from a financial institution because they are holding the asset if you default on the loan.

The options for personal loans sometimes really seem endless. That may just be because there are lots of options, and they are all designed to fulfill various requirements. I’m glad to know that there are options that will help me. So, why take out a secured loan? The most obvious reason is because I need it, but there are a few more salient reasons. Here are some top reasons why I’ve considered (and taken out) loans in the past.

At this point, it really doesn’t matter why I need a personal loan for home improvement projects. What is important is getting the money that I need. It’s essential. Then, the next step is to evaluate my options for personal loans. I need to know what options are available, the costs, and the pros-and-cons. I also need to be aware of how that loan will affect my future financial health.

It’s difficult to take a step back and really study my situation, particularly when I’m right in the midst of an emergency (it’s too stressful). When I need money right away, I just want to drop everything. We can’t give in to panic, though. I need to take time and carefully analyze the options that are available to me.  (And you do too.) Which option will be the best?

Other Options:

By the time I’m looking at loan options, I’ve already taken a look at other options.  So, if I’m still looking for more options, the money situation is just that bad. I have probably already tapped out on all the other finance and credit solutions. I’ve covered previous expenses and other unexpected costs with a credit card, savings, or even borrowed funds. There comes a point, though, when all my other funding options are used up or non-existent. So, then, I begin the process of searching for alternative funding sources. That guaranteed loan option is sometimes the next best step. It’s the only solution that’s left to me.

Home Repairs is Another Use over a Remodel

Your Guide to Personal Loans for Emergency Home Repairs

A personal loan can be used for just about any reason. Sometimes emergency home repairs just come up for unexpected reasons. Perhaps, you need a loan to take care of the home emergency. These can be called home repair loans, personal loans for home repairs or what ever you’d like. In the end, you’re borrowing money to cover the cost of an emergency in your home, condo or apartment. You’re taking out a personal loan. Typically, you need cash fast for a emergency at home and as always you want make sure to pay it back as soon as possible.

Can I get a personal loan for home improvement projects?

Sometimes a personal loan is the only way to really get to the home improvements that I want and need. While home always has felt like a dream. There’s something about actually owning a home that makes everything come crashing down. It’s so expensive. Even the most basic renovations really add up in time and cost, so it becomes really difficult to fix up my dream house when my finances just make it impossible to support even the slim slice of those machinations. Who has a whole truckload of money and supplies just lying around to make that dream house a reality?

There are solutions that are really easy to understand, and just what they sound like: personal loans for home renovations.  While it would be nice to have ready cash lying around to cover every fix-it-up expense and consideration, that’s not the world I live in. In my world (the real world), I make arrangements for repayment over a period of months and years, depending on the value of the loan. With costs that quickly ramp up to, how else do I easily just fix the house and make sure it’s safe for my family. Fortunately, I’ve found solutions that can help: home renovation loans.

When I am broke and faced with the real costs of home renovation, my credit score and employment history are important factors. Obviously good credit might make my search for a home renovation loan easier, but bad credit does not ruin all my chances. And, it may actually be a positive thing for me to take out a loan. Here’s why:

  • If I take out a home renovation loan, and then pay it off, it might just go toward rebuilding my credit. It could help me to get my finances back on track.
  • Then I can also dig into my overall credit situation, learn as much as I can and start to find out what has caused my poor credit.
  • Finally, I can also work on improving my credit score before you take out the loan.

Bad credit makes my situation more complicated, but I know that I can turn it around. Instead of focusing on all the negativity, I can focus on what good might actually come out of this entire educational experience.

Where to Get A Personal Loan for Home Improvement Projects

Personal loans for home improvement projects are usually easier to get because there’s less risk for the lender. They are typically tied to a paycheck, a bank account, a car title or some other form of collateral. So, there’s the sense that it’s a “safe” investment. In other words, it’s tied to the things of value that I have available at my disposal, even though I don’t have the money right now to pay for fixing my car or buying groceries.

With my already bad credit, I just don’t have good access to financing. I don’t have the ability to use my credit card or other line of credit to finance emergencies or unexpected expenses. So, I look to personal loan options to cover flexible financing solutions or those unexpected expenses. It’s a pretty straightforward process though.

  • I fill out the paperwork, being sure to include all the details they’re requesting.
  • Depending on the type of loan that I get, I may be required to give the lender access to my bank account.
  • Alternatively, I may have to write them a check, which they will cash when the payment is due. The amount will cover the loan plus the finance fee.
  • The lender processes my information and determines how much (or if) they can offer me the loan.
  • I (hopefully) receive the loan in the form of a check, cash or money transfer—typically in 24 hours or less.

At this point, it really doesn’t matter why I need the guaranteed loan. What is important is getting the money that I need. It’s essential. Then, the next step is to evaluate my options for guaranteed loans. I need to know what options are available, the costs, and the pros-and-cons. I also need to be aware of how that guaranteed loan will affect my future financial health.

It’s difficult to take a step back and really study my situation, particularly when I’m right in the midst of an emergency (it’s too stressful). When I need money right away, I just want to drop everything. We can’t give in to panic, though. I need to take time and carefully analyze the options that are available to me.  (And you do too.) Which option will be the best?

What Loan Solutions Will Work?

There is always a myriad of options to consider no matter what my financial history is. Some solutions will just work best for me in the short-and-long term. My goal is to use the solutions that will help me build my credit and successful navigate the hard times until I can climb out the other side. It’s not always easy, but it’s great to know that there are loans that will allow me to survive those unexpected emergencies. I just need to review the pros and cons for each possible solution and then move forward strategically with what I need.

How can I find a Personal loan for home improvement projects?

I get it. Everything is expensive. Eating and fixing my car sometimes even seems like a non-essential luxury. But I do have those essential requirements that I sometimes just can’t do without. That’s why it’s great to know that there is a loan I can get to cover those unexpected bills. All of those expenses and bills add up, particularly with kids. But, where do I start, and how easy is it to get a loan when I need it for the amount I really can’t do without?

I need to check my credit first to get a sense of which type of finance option I need, or which one will fit with my financial situation.

I also need to figure out where to get a loan. Based on my credit score and loan amount needs, here are tools to help you find a lender when searching for personal loans for home improvement projects:

  • Short-term more small dollar loan lenders can be found on Cashry.com
  • or use Loanry.com, which offers higher dollar personal loan lenders and many other types of finance products.

emergency repair loans

These sites are not lenders themselves, they simple help you find a lender.

There are always risks when I borrow money. After all, I need it, so I’m willing to go the extra mile to cover my broken-down car, unexpected expenses, bills, or grocery list. Probably the largest danger is that I would just not be able to pay the loan back at all, and I could be charged additional fees and penalties in addition to the interest rate. Of course, another consideration is that I could further damage my credit or incur other liabilities.

I don’t always realize what kind of impact my credit score, payment history and credit usage will really be. (It’s not always as bad as I’m imagining.) So, the first step is to determine what my credit score is, and also what factors are affecting that rating. Equifax, Experian and TransUnion are the three credit reporting agencies, so I go there. I can access my credit score from a number of online portals and financial-planning resources.

As part of my credit research, I can also determine factors that may have downgraded my credit, including how solid my payment history has been and also how much credit I’m already using. This whole process goes far beyond just checking the accuracy of those credit reports, though. I also really want to learn what actions I must take to improve my financial health in my current situation.

It’s really not as difficult as I thought. That’s what really excites me. I want a solution that will be quick and easy. But I need a loan that will allow me to live my life and not worry so much. Is that too much to ask for? I want to enjoy life again. It looks like a loan finance solution can help me. For that, I will be forever thankful.

Personal Loan for Home Improvement Projects As Soon As Tomorrow

I’m looking into the best (and easiest) options for a home renovation loan. Unsecured personal loans online allow me to take out a loan that will take the edge off. It can make the planning process that much easier. And, with Loanry.com, I can find a personal loan lender with less hassle. I can get an emergency cash loan or even a rent loan within budget. It’s fast, painless, and might even get me back on the right track.