Personal Loans Archives | Wall Street Insanity https://wallstreetinsanity.com Making Money Less Insane Tue, 20 Aug 2024 18:27:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 39880650 4 Best Personal Loans Of 2024 https://wallstreetinsanity.com/best-personal-loans/ Sun, 20 Aug 2023 18:12:13 +0000 https://wallstreetinsanity.com/?p=43999 A personal loan can be a tremendous financial tool. It can help you better manage your debt, pay for necessary expenses like home repairs, and help see you through a tough financial time due to a job loss or an illness. Today, it’s faster and easier than ever to get a personal loan. You don’t have to walk into a ...

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A personal loan can be a tremendous financial tool. It can help you better manage your debt, pay for necessary expenses like home repairs, and help see you through a tough financial time due to a job loss or an illness.

Today, it’s faster and easier than ever to get a personal loan. You don’t have to walk into a bank armed with reams of financial documents or wait weeks to find out if your loan has been approved.

You can apply for and be approved for a loan in less time than it takes to read this article. But not all personal loans are created equal; these are the best personal loans for your financial needs.

The Best Personal Loans

If you’re looking for a personal loan, these are some of the best options available.

1. Credible

Credible is an online loan marketplace that will show you up to 16 top lender options in just 2 minutes. The advantage for borrowers is the ability to enter their financial information on a single site and see offers from several different lenders.

Loan Amounts: $600 to $100,000
Terms: 12-84 months.
Fees: Credible does not charge a fee to use its service, but the lender you take a loan from may charge fees.
Why We Like It: Credible is so sure that you’ll find the best rates through them that they offer the Best Loan Guarantee. If you find a better rate elsewhere, Credible will give you $200. See terms.
Minimum credit score: At least 620 or higher.

Click here to see your Credible personal loan rates.

2. Upstart

Upstart underwrites the loans it offers. The underwriting model does not solely depend on a borrower’s credit score but looks at additional factors like level of education, job history, and residence to evaluate potential borrowers.

Loan Amounts: $1,000 to $50,000.
Terms: Three years and five years.
Fees: Upstart charges an origination fee of 0% to 8% of the amount of the loan. There is a fee for late payments of $15 or 5% of the amount past due, whichever amount is higher.
Why We Like It: Upstart is excellent for those who don’t have a lot of credit history or don’t have an ideal credit score but do have high earning potential, the kind of borrowers many other lenders reject.
Minimum credit score: At least 620 or higher.

Currently Upstart loans are not offered in: WV and IA.

Click here to see your Upstart rate.

3. Payoff

Payoff loans are for paying off credit card debt. The loans come from Payoff’s partners, including Alliant Credit Union, First Electronic Bank, and Technology Credit Union. Payoff offers exceptional customer support that includes welcome calls and quarterly check-ins during the first year of your loan.

Loan Amounts: $5,000 to $40,000.
Terms: 24 to 60 months.
Fees: No application fee, no prepayment penalty, no late fees, no annual fee. An origination fee of 0% to 5%.
Why We Like It: Payoff is very flexible, it may allow you to defer or skip a payment or change your payment date if you’re having trouble making a payment. For those using the loan to pay off other debts, you can participate in Direct Card Payoff and have Payoff pay their other debts using the borrowed money.
Minimum credit score: At least 640 or higher.

Currently Payoff loans are not offered in: MA, MS, NE, and NV.

Click here to see your Payoff rate.

4. Fiona

Fiona is an online loan marketplace where you can shop different loan offers based on your credit score, how much money you are looking to borrow, the purpose of the loan, and the area you live in.

Loan Amounts: $1,000 to $100,000
Terms: 24-84 months.
Fees: Fiona does not charge a fee to use its service, but the lender you take a loan from may charge fees.
Why We Like It: Fiona has a very easy to use interface. Borrowers can shop for loans based on various factors.
Minimum credit score: At least 620 or higher.

Click here to see your Fiona personal loan rates.

What is a Personal Loan?

A personal loan is money you borrow from an online lender, a bank, or credit union that is paid back in fixed monthly payments — generally over a term of two to seven years. The amount of the loan varies from lender to lender but generally range from $1,500 to $100,000.

Types of Personal Loans

There are several types of personal loans.

  • Unsecured: The loan does not require collateral.
  • Secured: The loan is backed by collateral.
  • Fixed-Rate: The interest rate remains the same throughout the life of the loan, meaning your monthly payment remains the same month to month.
  • Variable Rate: The interest rate is based on a benchmark set by banks and fluctuates based on that benchmark. Monthly payments vary with the interest rate.
  • Debt Consolidation: This loan rolls multiple debts into a single loan with a lower interest rate to save money.
  • Cosigned: A person who cannot qualify for a loan on their own adds another person to the loan who is responsible for paying it back should they default on payments.
  • Line of Credit: This is not a lump sum of money but gives you access to a credit line you can borrow against as needed.

What Is the Difference Between an Unsecured Personal Loan and a Secured Loan?

A secured loan requires collateral, a valuable item — such as a home or a car — that the lender can take possession of if the borrower defaults on the loan. A mortgage is an example of a secured loan; the house is collateral.

An unsecured loan does not require collateral. Most personal loans are unsecured.

Personal Loan Interest Rates and Fees

Interest rates will vary according to your credit score, the term of the loan, amount of the loan, and the lender. The better your score, the lower the rate. Generally, rates will range from 10% to 36%.

Not all personal loans come with each of these fees, but they are fees you should be aware of when choosing a lender.

  • Origination fee: This is a one-time fee paid when you receive the loan. It’s deducted from the money lent to you and typically ranges from 1% to 8% of the loan amount.
  • Late fee: If you make your payment late, you’ll be charged a fee. Sometimes it’s a set amount and sometimes a percentage of your loan balance.
  • Prepayment penalty: Lenders don’t want you to pay off a loan early because they lose money in interest when you do. To make up for this loss, you may be charged a penalty for paying your loan off before the term ends. The amount might be calculated based on the loan’s principal or how much interest is remaining at the time you paid off the loan.

Personal Loan Requirements

The requirements to qualify for a personal loan vary by lender, but here are some of most common requirements:

  • U.S. citizenship, permanent residency, a Social Security number, or a long-term visa.
  • Live in a state where the lender you choose is allowed to operate.
  • Be 18 years old or older.
  • Meet the credit score requirements of the lender.
  • Provide government issues identification.
  • Have a permanent address.
  • A verified source of steady income.
  • Provide any requested documentation.

When Should I Get a Personal Loan?

There are several scenarios in which a personal loan can be a helpful solution:

  • Debt consolidation: If you have high-interest debt — such as credit card debt — a personal loan that has a lower interest rate than the rates on the cards can save you a lot of money.
  • Home improvement or repairs: If you want to upgrade your home or make necessary repairs but don’t have the cash to pay for them, a personal loan can be a low-cost alternative if you qualify for a low-interest rate.
  • Medical or dental expenses: Even if you have insurance, medical and dental expenses can be a financial burden. A personal loan can help you get the care you need.

When Should I Not Get a Personal Loan?

A personal loan comes with certain costs, including an interest rate and any associated fees. Some expenses are not worth taking on those added costs:

  • Non-Essential Items: Items like televisions and new furniture are not essentials. They’re nice to have, but you shouldn’t build debt to acquire them. Instead, save up to pay for these kinds of things.
  • Vacations: We all love a good holiday, but taking a trip is not a good reason to go into debt.
  • Weddings: Starting your married life off thousands of dollars in debt spent on a single day is no way to kick off your new life. There are plenty of ways to have a memorable, enjoyable wedding without spending money you don’t have.

How To Get the Best Personal Loan

Of course, you want to get the best possible rate on your personal loan. Taking these steps can help:

  • Check your credit score. Generally, you will qualify for the best interest rates if your credit score is 760 or above. If you aren’t there, you can take steps to improve your score.
  • Consider fees as well as interest rates. Fees could make a loan with a slightly lower interest rate cost more than a loan with a higher rate but fewer or lower fees.
  • Choose a short-term loan. Shorter-term loans are less risky for lenders, so the best interest rates are often available for these loans than loans with a longer-term.
  • Choose a variable rate, short-term loan. Variable-rate loans typically have lower interest rates than fixed-rate loans. If you can pay the loan back quickly, the rates likely won’t be too high.
  • Get a cosigner. If your credit score is low or you have no credit history, you can probably get a lower interest rate when you borrow with a cosigner.

Pre-qualify for a Personal Loan

Pre-qualifying for a personal loan gives potential lenders a glimpse into how creditworthy you are and gives you an idea of the loan options you might qualify for. This process doesn’t mean you’ll be approved; lenders will require that you verify the information you’ve provided before making a decision. These are the steps usually involved in the pre-qualification process:

  • Fill out a form providing information such as your income, occupation, and amount of current debt.
  • The lender will do a soft credit pull; this does not impact your credit score.
  • The lender decides if you’re pre-qualified. If so, you’ll see the terms of the loans you might be offered, including the amount you’re eligible for.
  • You can choose to go forward and accept the offer. If you do, you’ll officially apply for the loan and will be required to provide and verify additional financial information.

Can I Get a Personal Loan with Bad Credit?

You generally need a credit score of at least 600 to get approval for an unsecured personal loan and the terms may not be great. The interest rate will likely be high. A better option may be to apply for a secured loan using your home, car, or savings as collateral. Be warned that, if you default, your collateral could be repossessed by the lender.

Another option is to ask a close friend or family member to cosign the loan with you. But as discussed earlier, if you default, that person is on the hook for the remaining loan balance.

How Fast Can I Get a Loan?

Getting a personal loan can take just a few minutes or several weeks. Many online and peer-to-peer lenders can approve your loan in only a few minutes and deposit the cash into your account within a business day or two. Traditional banks and credit unions can take much longer — weeks in some cases.

What are the Best Alternatives to Personal Loans?

If a personal loan isn’t an option for you, you may be able to use one of the alternatives.

  • Balance transfer credit card: If you want a loan to consolidate credit card debt, you can apply for a balance transfer credit card. The card has an introductory period ranging from 6 to 24 months, during which there is no interest. You can transfer the balance from high-interest cards, and every payment goes to paying down the principal without accruing further interest.
  • 0% interest credit card: Similar to a balance transfer credit card, these cards charge no interest on purchases during the introductory period.

Take Advantage of the Best Personal Loans Today

If you could use a personal loan to help improve your financial situation, consider one of the best personal loans we’ve covered here. It’s fast and easy to apply!

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]]> 43999 Tell This Company To Pay Your Credit Card Bill This Month https://wallstreetinsanity.com/tell-fiona-to-pay-your-credit-card-bill-this-month/ Tue, 21 Jan 2020 01:40:03 +0000 https://wallstreetinsanity.com/?p=41973 Seriously, with one swift move, you can actually get another company to pay your entire credit card debt, and skip this month’s bill in the process. And here’s how. It’s no secret that credit card companies make their money through sky-high interest rates and late fees. So, what if you paid off your credit card debt using a personal loan ...

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Viktor Hanacek | picjumbo

Seriously, with one swift move, you can actually get another company to pay your entire credit card debt, and skip this month’s bill in the process.

And here’s how.

It’s no secret that credit card companies make their money through sky-high interest rates and late fees. So, what if you paid off your credit card debt using a personal loan that has a lower interest rate and better terms?

This might sound difficult, but you can achieve this in 60 seconds through Fiona. As a result, you’ll have no credit card payment due this month, and you’ll also get to enjoy a lower interest rate going forward!

Don’t Be Like This Person!

Someone who carries a $10,000 credit card balance with a 15% interest rate can find it daunting to chip away at the debt.

Making minimum 2% of balance payments will equal over $15,000 paid in interest, and take over 400 months to pay off!

Instead of continuing to drown, that person could use Fiona to find a $10,000 personal loan to knock out their credit card debt immediately.

It’s very possible this person could find an interest rate through Fiona at less than half their credit card APR. Let’s assume they received a personal loan interest rate of 5% and continued to make minimum 2% balance payments. They will be able to pay off this debt in less than half the time and pay about $2,500 in interest.

That’s over $12,000 saved!

How Can I Get a Personal Loan Through Fiona?

You might assume that you need an impeccable credit history and a 700+ credit score to secure a personal loan, but that is far from the truth.

To apply for a personal loan through Fiona, you only need to meet three basic requirements:

  • Be at least 18 years of age
  • Be a US citizen
  • Have a credit score of 580+ (recommended)

As long as you meet this simple criteria, you’re a perfect candidate for a personal loan!

Instead of spending hours scouring the internet in search for the lender with the lowest interest rates, you can get top results in seconds by using Fiona.

Without impacting your credit score whatsoever, the Fiona marketplace will return up to 10 lending options based on your needs.

Fiona protects all of your personal information through 256-bit encryption technology — boasting higher security standards than many banks.

Close out the deal and you could receive your funds as soon as the next business day. Not only is this service free to use but it also makes getting a personal loan quicker and easier than ever!

Don’t carry a credit card balance into next month.

Get a personal loan through Fiona, wipe your credit card debt, and potentially save thousands today!

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]]> 41973 12 Signs Of A Personal Loan Scam https://wallstreetinsanity.com/signs-of-personal-loan-scam/ Thu, 21 Nov 2019 21:19:29 +0000 https://wallstreetinsanity.com/?p=41139 You might be in the market for a personal loan to pay for an unexpected expense like a car repair or medical bills. You may even seek a personal loan to consolidate your existing debt. Unfortunately, not all personal loans are equal. While it is important to research personal loan options including fees, rates, and repayment terms, it is even ...

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iAmMrRob on Pixabay

You might be in the market for a personal loan to pay for an unexpected expense like a car repair or medical bills. You may even seek a personal loan to consolidate your existing debt.

Unfortunately, not all personal loans are equal. While it is important to research personal loan options including fees, rates, and repayment terms, it is even more critical to determine if your chosen loan company is legitimate.

Even if you are financially savvy, you can fall victim to a personal loan scam. Educate yourself on the red flags so you can protect your identity and your money.

Scammers use several different tactics to take your money and run. Plus, you are more likely to be a victim if you have been denied a personal loan in the past.

Of the 3 million identity theft and fraud reports filed in the U.S. in 2018,  25 percent of those cases reported money was lost. And it’s important to note that we aren’t talking about a few thousand dollars. In 2018 alone, loan scams and fraud accounted for nearly 1.5 billion in US dollars.

Legitimate Personal Loan Companies

Apply for a personal loan to instantly get an online quote. These online lenders will give you a no-obligation rate in just a couple minutes without affecting your credit score.

  • Credible: This loan marketplace provides personal loans from $1,000 to $100,000. In just two minutes, you will get up to 11 quotes from lenders.
  • Upstart: With personal loans from $1,000 to $50,000, Upstart goes beyond your credit history. It will take your job history and education into consideration when giving you a rate.

12 Signs Of Personal Loan Scams

Protect yourself and your financial security by learning how to spot scams. Learn what you should look for in a legitimate personal loan company and how to proceed if you are a victim of a financial scam.

1. No Credit Check

Lenders make money by collecting interest on a personal loan. A top way they can judge whether or not you will pay them back is by viewing your credit history. Lenders may additionally request to look at your income or bank account(s). If a personal loan lender offers to skip this step or doesn’t require a co-signer when you have bad or no credit, this is a red flag.

Applying for a personal loan requires the lender to check your credit twice. They will do a “soft” inquiry first to make sure your application information matches. A soft inquiry does not affect your credit score. Once you agree to the lender’s interest rate offer, the lender will do a “hard” inquiry which can temporarily affect your credit score but it necessary to secure the loan.

2. Upfront Fees

Some personal loans add origination fees to the total loan. This is a small percentage that is taken from your original loan amount. Since this fee is rolled into the loan, you won’t receive the full amount you originally asked for. Lenders do this so you don’t have to pay them upfront to receive your money.

If you are new to personal loans, you might not realize the way they work. Personal loan scams often begin with a lender requesting money upfront. This is counterproductive since you have a lack of money in the first place.

Lenders are required to disclose all their fees upfront and not all personal loans have origination fees. Never send money to a lender to receive a loan.

3. Random Forms of Payment (Debit Card, Gift Cards, etc.)

Most people can recognize a personal loan scam in which money is needed upfront. Since money is scarce when you seek out a personal loan, it makes sense to hesitate before you send a stranger money to receive money.

Online lenders now use a different game plan. They often ask applicants to provide them with the applicant’s debit card information. They claim it’s only for collateral to ensure that the loan is paid back. Before you know it, they have zeroed out your bank account and went silent.

Never give out your bank account information or respond to a lender offers that require you to send them a wire transfer or store gift cards.

4. The Lender Calls You

A qualified lender should never call you to offer personal loans. According to the FTC, it’s illegal for a lender to offer loans over the phone that require an upfront payment.

Also, be wary of personal loan offers you receive in the mail and salespeople offering them at your doorstep.

5. High-Pressure Sales Tactics

A legitimate personal loan company will offer you loan options and leave it up to you to decide whether or not to act.

Common personal loan scams include high-pressure sales tactics that try to force you to make a decision, often within 24 hours. Never work with a personal loan company that makes you feel uneasy or feels untrustworthy.

6. Unregistered Lenders

All lenders are required by the Federal Trade Commission (FTC) to register their services in each state they do business in. Even if a lender is 100% online or a non-U.S. company, every lender must be registered to do business legally in the U.S.

The states the lender is registered in should be visible on their website. If the lender’s website does not state this information, you can call your State Attorney General’s Office (where registrations are approved) to verify the personal loan company you are researching. You can also find local scams by searching your State Attorney General’s website.

Look to see if the company is operating under its required bank charter. This information should be provided on the website or available via customer service.

7. No Physical Address

If you already have doubts about a personal loan company, the absence of a physical address could be the tipping point. Although this isn’t always a sign that a personal loan company is fraudulent, it’s best to steer clear of companies that only list a PO box or worse no address at all.

Google map the company address. Some personal loan companies list the address of an open field or empty lot.

Don’t be fooled by online-only companies. They should still meet all the requirements of a brick and mortar lender. By not using a physical address, a personal loan scam can be nearly untraceable.

8. Unsolicited Emails

Email scams are a popular way to play on people’s emotions since they think the email is specifically personalized for them. Unfortunately, these phishing scams collect unsuspecting victim’s sensitive bank account information and more.

Any email that promises a personal loan rate that is too good to be true is a scam. Another way to spot spam emails is to look for grammar and spelling mistakes.

Remember licensed personal loan companies rarely advertise through email. They often advertise on websites, social media, and TV.

9. Emails with Links or Attachments

Never click on a link or download an attachment in one of these emails. Always send it straight to your spam or trash folder.

Participating in these email scams can compromise your personal or financial information and even get your identity stolen.

10.Spammy Email Address

If you think an email you receive is from a legitimate personal loan, an easy way to verify this is to look at the email address from the sender.

For example, if the company is Your Best Personal Loan, the email address should include the company’s website URL, i.e. debbie@yourbestpersonalloan.com. If the email address looks like this xxyi@tekcs.eidk.com, chances are it’s a scam.

11. The Website is Not Secure

A website that is secure not only helps protect the company that owns the domain but can protect your privacy as well. Inputting information on an unsecured site can allow your information to be hacked or even sold.

Some scam websites can mirror legitimate ones making it difficult for the average user to identify if a site is secure or not. Only provide personal or financial information on websites that feature an “s” after the “Http” in the website address (i.e. https://). Both the added “s” in the URL and a padlock symbol signify that the site is secure.

12. The Request for Personal Information

If a lender reaches out to you first via phone, email, or in person, do not give them any personal information. Legitimate personal loan companies advertise in traditional media such as relevant websites or TV.

A customer representative from that lender should always be able to explain to you why they need any personal or financial information for your loan. If you have questions, ask the lender before providing the information or signing any loan paperwork.

I’ve been scammed. What do I do now?

While it may be embarrassing to be a victim of a personal loan scam, you should still report it. Think of all the people you could help by warning them of your mistake.

  • Report the scam. Contact the FTC, Internet Crime Complaint Center, your state’s consumer protection office, even the Better Business Bureau (BBB). For specific theft cases, you can contact your local police department and file a report.
  • Gather any financial or personal data that was provided to the scammer.
  • Check your credit reports for any unusual activity, and continue to check at least once per year.
  • If any unusual activity appears, place a fraud alert on that account through the financial institution. (This step will make it harder for scammers to open accounts in your name.)
  • Consider changing your online passwords that contain sensitive personal and financial information.

Unfortunately, you may never see the money that you gave to the scammer, but you can protect your financial future and identity by being aware of scams and choosing a good lender.

A Good Lender Can Be Recognized in the Following Ways:

  • Legitimate contact information. Do your research. A legitimate personal loan company should provide its state license number, physical address, a valid phone number as well as a contact name. All of the information should match public records.
  • Easy to reach customer service. Talk with a representative using the provided phone number. You should be able to speak with someone or leave a message and get a callback. The customer service team should be able to answer any questions you may have and even offer personal loan advice.
  • Runs your credit history. The lender should have an interest in your credit history even if they know you have bad credit. Your credit history provides the lender with the information they need to set the interest rate and understand your financial situation.
  • Provides personal loan terms in writing. All loan terms should be provided in writing so you can make an informed decision. They will also go over the terms should you have any questions.
  • Maintains a good reputation online. Google search the personal loan company’s name online to see if anyone has reported it as a scam. Online forums are a great resource for asking if anyone has information on the company or is a current customer.

Where to Find Good Personal Loans

Credible:

Get personal loan offers in amounts up to $100,000 from up to 11 lenders in just two minutes just by answering a few simple questions.

Credible is an online loan marketplace, offering no-obligation quotes that don’t affect your credit score. Credible offers a Best Rate Guarantee. Under the guarantee, you will be paid $200 if you find a better rate with another lender (terms apply).

Upstart:

Along with your credit score, Upstart takes into consideration things like your education history, area of study, and job history when determining your rate. You can borrow $1,000-$50,000 and can check your rate online.

Check your rate without lowering your credit score. Upstart provides cash in hand within one day of your loan approval. Make the required payments or pay it off early, there is no pre-payment penalty when using Upstart.

Don’t be Afraid to Ask Questions

Always use common sense when applying for a personal loan. If it sounds too good to be true, it probably is. Research the company that you want to get a personal loan through. Contact their customer service if you have any questions before agreeing to any loan terms.

If your credit score needs work, consider working to improve it before seeking a loan to get a better rate if there isn’t an immediate need for it.

Personal loan scams and identity theft are on the rise. It’s not going away anytime soon, so don’t be an easy target. By following the above tips, you can avoid falling victim to this invasive crime.

The post 12 Signs Of A Personal Loan Scam appeared first on Wall Street Insanity.

]]> 41139 How To Get A Personal Loan (Up To $100k) https://wallstreetinsanity.com/how-to-get-a-personal-loan/ Wed, 24 Apr 2019 19:20:56 +0000 https://wallstreetinsanity.com/?p=39651 A personal loan can really help improve your financial situation, whether you use it to pay off your high-interest credit card debt or to pay for something like an emergency home or car repair. In the past, if you wanted a personal loan, you had to turn to a bank, but that’s no longer the case. We’ll show you how ...

The post How To Get A Personal Loan (Up To $100k) appeared first on Wall Street Insanity.

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Anete Lūsiņa on Unsplash

A personal loan can really help improve your financial situation, whether you use it to pay off your high-interest credit card debt or to pay for something like an emergency home or car repair. In the past, if you wanted a personal loan, you had to turn to a bank, but that’s no longer the case. We’ll show you how to get a personal loan the fast, easy way.

What is a Personal Loan?

A personal loan is money you borrow from a lender. A personal loan typically doesn’t require collateral; it’s an unsecured loan. Personal loans are unsecured because they’re for a relatively low amount, usually under $10,000 although some lenders allow for loans much higher than that.

Banks don’t lend money for nothing, of course, the cost to borrow money is the interest rate. The better your credit score, the lower interest rates lenders will offer you because you’re seen as less of a risk.

This is why a good credit score (anything above 760 will qualify you for the best interest rates) is so important. If your credit score isn’t at or over 760, there are things you can do to improve it before applying for the loan. The lower the interest rate, the cheaper the loan will be for you.

A personal loan usually has a term of two to five years; the amount of time you have to pay the loan back in full. Every month your payment amount will be the same, the principal (amount of the loan) and the interest.

Getting a personal loan can be done right from your computer in just a few minutes. Several legitimate online lenders offer online quotes instantly. Check your rate now with no impact on your credit score.

  • Credible: This site allows borrowers to window shop for the best rates on a personal loan from as many as 11 lenders. You can get a personal loan for as little as $1,000 or as much as $100,000. Check your rates in just two minutes. Credible will give you $200 if you find a better rate elsewhere (terms apply).
  • Upstart: This might be the best option if your a recent college graduate with a job. The company looks at factors other than your credit score including things like your work history, and level of education when deciding to approve a loan application.

What You Can Use a Personal Loan For

Really, you can use a personal loan for anything at all. Some lenders don’t even ask what you intend to use the money for when you’re filling out the application online. That said, you should only use a personal loan for things like debt consolidation, emergency expenses, medical or dental expenses, etc.

A personal loan should not be used for needs, not wants. It’s financially irresponsible to take on debt for things like a vacation, a new wardrobe, or a new smartphone to replace your still perfectly good phone.

How to Get a Personal Loan in the Old Days

It’s easier and faster than ever to get a personal loan, and more people will be approved. Why? Because potential borrowers no longer have to rely on traditional banks to borrow money. Before the advent of online lenders, if you wanted a personal loan, you had to go through a bank. That made things more difficult for borrowers for a few reasons.

Borrowers were limited to banks local to them which significantly reduced their options. Not only as far as shopping for the best rates goes but also for getting a loan at all. If you did choose to apply, you had to physically go the bank armed with reams of paperwork, bank statement, paystubs, tax returns, identification.

The process of applying for, being approved, and getting the money could take weeks. Someone had to sort through all of that paperwork and determine if a would-be borrower would be a good financial risk or not. If someone needed a personal loan for an emergency situation, this lengthy process was far from ideal.

How to Get a Personal Loan Today

The internet has changed the way we do a lot of things, and it has had a tremendous impact on how we get a personal loan. Thanks to today’s online lenders, you could get a personal loan in less time than it will take you to read this article.

Online lenders have done away with much of the red tape traditional banks require to get a personal loan and have opened up lending to people that banks may turn down. If you need a personal loan, there are just a few simple steps involved.

Check Your Credit Score: Because all lenders will require a minimum credit score a potential borrower must have to be approved and you want to be offered the best interest rate possible, it’s good to know your credit score before applying for a personal loan. You can check your credit score for free here.

Gather Your Information: A potential lender will want to know things like your Social Security number, annual income, name of your employer and how long you’ve been employed there, monthly housing costs, and perhaps debt-to-income ratio. Having this information at hand before you start the application process will speed things up.

Shop Around: Simply checking your rates and terms with various online lenders will not affect your credit score. The first step of applying for a personal loan only triggers what is called a “soft” credit check. Based on this soft check, lenders willing to extend a personal loan to you will show you at what interest rate and terms. Look for the best offer before making a decision.

Apply: If your soft check looks good and a lender makes you an offer that you accept, the next step will be to provide additional information and go through a “hard” credit check. At this point, you may need to provide the documentation we mentioned above. If so, you can scan and email the documents, making the process fast and easy.

The hard credit check will impact your credit score but only by a few points and the dip will be temporary. If you’re using a personal loan to pay off credit card debt, doing so will increase your score much more so than this hard check will decrease it.

Approval: If you pass the hard credit check, the lender will finalize the loan offer. You may need to print, sign, scan, and email back the loan documents but not all lenders require this. During the application process, you’ll have provided the lender your bank account information. The money will be deposited into your account usually within just a few business days.

Where to Get a Personal Loan

Credible:

You can get offers from up to 11 lenders by answering a few basic questions. The process takes just two minutes, and you’re under no obligation to accept any offer.

Credible is so sure that borrowers will find the best rates with one of their lending partners that they offer a Best Rate Guarantee. If you are offered a better rate elsewhere, Credible will give you $200 (terms apply, see the Credible website for details).

Upstart:

For recent college graduates without a long credit history or a less than perfect score, Upstart may be the best choice for a personal loan. Upstart uses more than credit history and score to make loan determinations.

It’s fast and easy to check your rates through Upstart, and you can borrow from $1,000 to $50,000. You can have the funds as fast as one day,  and you will not be charged a fee for early repayment.

Take Advantage of a Personal Loan

A personal loan can really improve your financial situation and your life. A loan can help you get out of high-interest debt, pay for medical care, and bail you out of an emergency. Applying for and getting a personal loan is such a fast, painless process thanks to online lenders. If you’ve been considering a personal loan, now is the time.

The post How To Get A Personal Loan (Up To $100k) appeared first on Wall Street Insanity.

]]> 39651 17 Things You Didn’t Know You Could Do With A Personal Loan https://wallstreetinsanity.com/things-you-didnt-know-you-could-do-with-a-personal-loan/ Wed, 13 Feb 2019 16:54:55 +0000 https://wallstreetinsanity.com/?p=38903 A personal loan is a great way to improve not just your personal finances but your life too. If you’re not sure exactly what a personal loan is, it’s money you borrow from an online lender, bank, or credit union. People often use personal loans for debt consolidation or home improvements but you can use a personal loan for anything ...

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A personal loan is a great way to improve not just your personal finances but your life too. If you’re not sure exactly what a personal loan is, it’s money you borrow from an online lender, bank, or credit union. People often use personal loans for debt consolidation or home improvements but you can use a personal loan for anything you want. We’ll show you 17 things you didn’t know you could do with a personal loan.

What is a Personal Loan?

A personal loan is unsecured money you borrow from a lender. Unsecured because most personal loans don’t require the borrower to provide any collateral. When you borrow money to buy a car or a home, the car or home act as collateral, if you don’t pay back the loan, the lender repossesses your car or home.

A personal loan doesn’t require collateral because most are for less than $10,000. The cost to borrow this money is the interest rate the lender charges you: the higher your credit score, the lower your interest rate. If you’re considering a personal loan, take steps to improve your credit score if it’s less than ideal. Even a small difference in interest rates can save you a substantial amount of money over the term of your loan.

The term of a personal loan is typically two to five years. Each month you’ll repay the same fixed amount which includes the principal (the amount of the loan) and the interest.

Getting a Personal Loan is fast and easy, with a number of reliable lenders offering instant online quotes. You can check your rate without affecting your credit score:

  • Credible: This online loan marketplace will show you rates from 11 lenders offering personal loans from $1,000 to $100,000 in just two minutes (a huge time saver).
  • Upstart: This loan company believes you’re more than your credit score. It takes other factors, like job history and education, into account when giving you a rate. You can get a personal loan from Upstart in amounts from $1,000 to $100,000.

What Can You Do With a Personal Loan?

The short answer is, “Anything.” Lenders typically don’t ask what the money is going to be used for beyond a perfunctory multiple choice question on some online applications. So you could take your personal loan, head to Vegas and put it on 24 black. But that is a pretty poor use of a personal loan (or any other money).

A personal loan is meant to improve your personal finances or help you afford essential things you don’t have the cash to pay for. So as we list 17 things you can do with a personal loan, you won’t see playing Roulette in Vegas on the list.

1. Consolidate Credit Card Debt

The interest rate (APR) on a credit card can range from the mid-teens to the mid-twenties. And that interest is charged on a daily basis when you carry a balance. These two factors are what make credit card debt so hard to pay off. Carry a big enough balance for a long enough period of time, and you can end up paying more in interest than you actually spent on a card.

A personal loan can pay off that credit card debt and save you a ton of money in interest. When you take out a personal loan and use it to pay off credit card debt, yes you still owe money, but a personal loan typically has a much lower interest rate than do credit cards.

If you have several credit cards, a personal loan can also simplify your bill paying. You have one payment to one place rather than debts scattered across different credit cards all with different due dates. And if you haven’t always remembered to pay your credit card bills on time, you were probably hit with a late fee which is usually $25-$38.

A late payment can also increase your APR and end up on your credit report where it will sit for seven long years hurting your credit score.

So, as you can see, credit card debt is bad, among the worst kind of debt you can carry, which makes debt consolidation with a personal loan one of the best tools in your personal finance arsenal.

2. Consolidate Student Loan Debt

Student loan debt might not seem as insidious as credit card debt because the interest rates on student loans, particularly federal student loans, isn’t outrageously high. What is outrageously high is the cost of college. So while the interest rates are low, the amounts borrowed can be tens, and in the case of advanced degrees, hundreds of thousands of dollars. When we’re talking that many zeros, even a seemingly “good” interest rate can sting.

If you’re struggling with student loan debt or have been paying for decades and still can’t seem to kill it, a personal loan can be used to consolidate your student loan debt just as it can be used to consolidate credit card debt.

The only downside to using a personal loan to consolidate federal student loans is that doing so means you can no longer take advantage of the various programs available designed to help those having trouble making their student loan payments. Private student loans offer no such programs so consolidating them with a personal loan has no downside.

3. Pay Off Payday Loans

One of the worst personal finance decisions you can make is to take out a payday loan. And the payday lenders know it. Payday loans are for desperate people with no other place to turn. The interest rates on this loans can be in the triple digits. And they become a revolving door. Payday loans are short term loans, usually with a term of just a few weeks. When the loan comes due, the borrower often can’t pay it back, so they take another. And another. And the hole gets deeper and deeper.

If you had to turn to a payday loan, you might not qualify for a personal loan, but you can get a rate quote for free and with no effect on your credit score. If you’re in payday loan hell, it’s well worth shopping around to see if you qualify for a personal loan to pay the payday loan off.

4. Pay Medical Debt and Expenses

Americans spend more than $10,000 a year per person on health care and having medical insurance is not a guarantee that you won’t be out of pocket for thousands of dollars in medical expenses. And if you don’t have medical insurance, it can be impossible to afford even basic medical care.

Your health is more important than anything, even money. If you have medical bills, you can’t pay or need medical care you can’t afford, taking out a personal loan is one of the best decisions you can make. And it can even save you money. Prevention is usually cheaper than a cure. The longer you wait to deal with a health issue, the more expensive and difficult it becomes to treat.

This all goes double for dental issues. If you have dental insurance, even a “Cadillac” policy, it rarely covers more than routine care. Untreated dental issues can not only lead to excruciating pain but to death.

5. Pay Pet Medical Expenses

This is a personal one for me. I had a much-loved cat who came down with pancreatitis, a complication of diabetes which is more common in cats than a lot of people realize. An overnight stay in the 24-hour vet (he got very ill late at night) and three days at his regular vet cost left us with a bill of about $10,000.

Luckily, we had the cash to pay for his care. And it was worth it. He lived a healthy life (diabetes in cats is pretty manageable) for another five years. But if we hadn’t had the cash to afford the vet bills, we would certainly have taken out a personal loan to cover them.

All of the pet owners I have known have considered their pet a member of the family, and they would pay whatever it took to make sure they had the medical care they need. That medical care can be expensive though, and a personal loan can ensure you don’t wipe out your emergency fund or go into credit card debt. Consider looking into pet insurance too.

6. Helping a Family Member

This one can be tricky. I’m sure we all have at least one family member who has needed money at some point. Sometimes it’s for a good reason, and sometimes it isn’t. Whether you choose to help them out or not is complicated and a personal decision.

While it’s good advice to tell someone they should never borrow money to help out a family member; sometimes the decision is not straight forward. If you have a family member who needs financial help, you can recommend they apply for a personal loan. If they’re turned down, you’ll have to make the tough decision whether or not to borrow the money yourself and lend it to them.

If you do, go in with the understanding that it might take a long time to be paid back and it might never happen at all. If you feel like a failure to be paid back would destroy your relationship with this person and you don’t trust them to pay you back, think hard. You’re going to have to pay back this personal loan no matter what.

7. Repay a Loan

Perhaps you were on the receiving end of the above scenario. You found yourself in a tight spot, and a friend or family member loaned you money to help you out. Some time has passed, maybe a lot of time, and you haven’t paid the loan back yet.

We all know that money is a touchy issue and issues around money can damage and even sever relationships. If you had to borrow money from someone, you might not be entirely out of the woods yet, but it’s worthwhile to check your rates and see if you’re now qualified to get a personal loan.

Money should never come between people, but you can understand someone being angry that money they loaned has not been paid back. A personal loan can help repair the relationship.

8. Pay a Tax Bill

Next to a notice that you have to serve jury duty, an envelope from the IRS is perhaps the worst thing you can get in the mail (unless it’s your tax refund). Nothing good happens when you owe the IRS. 

If you owe money to the IRS and don’t pay it, you’ll be charged interest and a penalty. If you fail to file on time, you’ll be charged an extra 5% of the unpaid balance every month you’re late for up to five months. If your taxes are more than 60 days overdue, you’ll either be charged a penalty equal to the amount you owe or $210, whichever is less.

If you can only afford to pay part of your tax bill, you’ll be charged 0.5% of the amount you owe for each month you fail to pay up to a maximum of 25%.

If you go months without paying your taxes, the IRS can garnish your wages, put a lien on property you own or seize your assets to satisfy your outstanding tax bill.

Taking out a personal loan can get the IRS off your back.

9. Boost Your Credit Score

If you’re considering buying a home or a new car, you should check your credit score. The higher your score, the better interest rate you will be offered on a mortgage or a car loan and the lower your interest rate, the cheaper it is to borrow that money. And when you’re borrowing the kind of money, you’ll need to buy a house or a car, every quarter of a point on the interest rate counts.

You don’t need a perfect score to get the best interest rate, so there’s no need to go chasing the much vaunted 850. A score of 750 or better is enough to get the best interest rates from lenders.

If your credit score isn’t there, a personal loan can help boost it in two ways. You can use it to pay off existing debt, and it gives you another type of credit (credit cards, student loans, and personal loans are three separate types of credit). Those who take a personal loan from Payoff to pay off credit card debt can see a jump as high as 40 points in their credit score, a substantial increase that will make you a more attractive borrower to banks.

10. Start an Emergency Fund

Everyone should have an emergency fund. You never know when you could be faced with something like a car or home repair, an illness, or a job layoff. If you don’t have an emergency fund to pay for unexpected expenses, you end up putting them on a credit card, or worse, taking out a payday loan. Not ideal.

Ideally, your emergency fund is made up of your own cash, but it can be hard and take time to build an emergency fund. And because you never know when an emergency expense will arise, using a personal loan to create an emergency fund can be a viable strategy, saving you from paying the high interest charged by credit cards and payday lenders.

11. Invest

It’s generally not recommended to borrow money to invest in the stock market because the interest rate you’re paying to borrow money may be higher than the return you can expect. But what if a really great investment opportunity came to you in the form of investing in a small business? And if you don’t act immediately, the opportunity will pass you by.

You have to do a ton of due diligence to make sure this is indeed an excellent investment opportunity. We’re not talking about your brother in law’s latest hair-brained scheme. But if it is a genuinely good opportunity, (and no investment comes without some level of risk) taking a personal loan to grab that opportunity can pay off.

12. Pay for Your Wedding

Hopefully, you will only get married once so we can understand that you want your wedding to be special and memorable. That doesn’t have to mean spending tens of thousands of dollars, but even small, relatively simple weddings can be very expensive.

You can use a personal loan to pay for wedding expenses but please, be reasonable and responsible. There seems to be a direct correlation between the amount of money spent on a wedding and the length of the marriage. The more money spent, the shorter the marriage. It’s supposed to be about the marriage, not the party. And if you’re worried about what your guests will think if you don’t have the perfect flowers, band, food, favors, etc. Let me tell you something. All wedding guests care about is whether or not there is an open bar.

Bonus tip: when buying or booking anything wedding related, flowers, catering, venue, etc., do not say it’s for a wedding. Say it’s for an anniversary or a birthday or anything but a wedding. When vendors hear the “W” word, they jack up the prices.

13. Pay for a Vacation

You should not take out a personal loan to take any old vacation. While I always think a vacation is a good use of money, it is not a good use of borrowed money in most circumstances. The exception to that is a special opportunity.

Maybe you have a large, spread out family which means it’s hard to get everyone together in the same place at the same time and it’s been several years since everyone has been together. Your family is planning a group trip, and you really want to go.

Maybe your dearest friend lives across the country from you and is getting married. Or maybe your best friend lives close by but is having a destination wedding.

These are the kinds of scenarios where it would be more acceptable to take out a personal loan to pay for a vacation. Not just because it’s February and you’re tired of winter and are thinking about a tropical getaway.

14. Pay for a Funeral

The average funeral costs about $10,000. A lot of us would be hard-pressed to come up with that much money, and when you and your family have suffered a loss, money is the last thing you want to think about. Even if you do have the money to pay for a funeral, you may be facing medical expenses incurred by the deceased (this varies widely by state, but in some community property states, a surviving spouse may be responsible for medical debts of the deceased).

A personal loan can not only help you cover funeral expenses but can help pay for everyday expenses. It can take time to access money from an estate, and the surviving spouse may have no source of income or need to take time away from work which might be unpaid.

A personal loan for the expenses we face when we lose a family member can help ease what is already an extremely stressful time.

15. IVF

Having a kid is expensive. It’s even more costly when that kid is conceived through IVF. The average cost of the first IVF cycle is $12,000. Subsequent cycles average $7,000. On average, women who conceived with IVF went through 2.7 cycles. The odds of success after three cycles for women of any age was just 34%-42%.

Whether an insurance plan covers some, all or no portion of IVF costs vary. Some cover IVF but not the required injections. Some cover a limited number of cycles. And some cover no expenses related to IVF treatment at all.

Three rounds of IVF costs as much as a pretty good downpayment on a home in some places. And the odds of having a baby after three attempts is still less than 50%. Some people will decide to cut their losses after this point, and some will continue with treatment.

Even if you’re one of the lucky ones and only need a single round of IVF, it can cost thousands of dollars depending on what your insurance covers. A personal loan can help cover the cost of starting your family.

16. Adoption

Adopting a child can be as expensive as IVF, sometimes more. The cost of a private adoption can range from $20,000-$45,000. These costs cover things including home study, legal fees, counseling, and medical expenses.

Some employers offer adoption benefits that include partial reimbursement for related expenses but the range is typically $5,000-$10,000, and while more companies are providing these benefits, they’re still relatively few and far between.

Even if you’re lucky enough to work for an employer that offers help with adoption expenses, the math still doesn’t add up, and you’re going to face a lot of out of pocket costs. And that’s just to adopt the child. Kids are expensive no matter how they join your family.

A personal loan can help you meet adoption expenses and cover unpaid time off if your employer doesn’t offer paid parental leave for new parents.

17. Home Repairs and Improvements

This is the good and the bad of owning your own home right? The bad is that the repairs are your responsibility, but the good is that you can make whatever improvements you want. You should have an emergency fund for relatively inexpensive but still urgent home repairs like a busted water heater or a toilet that needs to be replaced.

But what if you needed a new roof? That kind of repair can cost several thousand dollars. You may not have that much in your emergency fund. So you can either buy a lot of buckets (to catch the leaks!) or take out a personal loan to replace your leaking roof.

Home improvements are more fun, and the right ones can actually be a really good financial decision because they can increase the resale value of your home. Updates to kitchens and bathrooms and upgrades to the outside of your home (to improve “curb appeal”) are the best places to spend your home improvement dollars if you’re looking to sell your home in the near future.

But hey, not everything has to be about money. This is your house, and you can do what you like. If you’ve always dreamed of a Harry Potter-themed bedroom, go for it.

Either way, whether it’s to increase the value of your home if you’re considering selling or just having what you’ve always wanted, a personal loan to make home improvements is a good investment.

Where to Get a Personal Loan

You can finish reading this article and apply for a personal loan right from your computer in less than five minutes. No banks, no phone calls, no endless reams of paperwork to fill out, no endless wait to find out if you were approved or to get the money.

Online lenders have really streamlined and revolutionized the process of applying for and getting a personal loan.

Credible:

By answering just a few simple questions, Credible will give you personal loan offers from up to 11 lenders in just two minutes. Credible is free to use and borrowers can get loans for as little as $1,000 to as much as $100,000.

Checking your rates does not affect your credit score and users are not obligated to accept an offer. But Credible is so sure that you’ll find the best loan rate with one of their partner lenders that they offer a Best Rate Guarantee. If you find a better rate elsewhere, Credible will pay you $200.

Upstart:

If your credit score isn’t sterling or you have a “thin” credit file, Upstart may be a great option for you. Upstart takes into consideration things like your level of education, your area of study, and job history, not just your credit score. You can borrow $1,000-$50,000 and can check your rate online.

There is no penalty for early repayment and borrowers can have the funds as fast as one day. Checking your rate will not affect your credit score.

Whatever Your Reasons

Clearly, some of the reasons for getting a personal loan on this list are more advisable than others. Paying off debt, especially high-interest debt like credit card debt or payday loans is one of the smartest personal finance moves you can make, and a personal loan can help you do that. That kind of debt holds you down like an anchor so getting rid of it should be a priority.

Paying medical or dental expenses is a smart use of a personal loan. Left untreated, medical and dental problems become worse, more painful, and harder and more expensive to treat.

I’m not a proponent of borrowing money to pay for a wedding, but that’s just my opinion. You can certainly take out a personal loan for that reason.

A personal loan is a financial tool that you are free to use for any reason you choose. Just be sure to choose wisely.

The post 17 Things You Didn’t Know You Could Do With A Personal Loan appeared first on Wall Street Insanity.

]]> 38903 What Is A Personal Loan? Everything You Need To Know https://wallstreetinsanity.com/what-is-a-personal-loan/ Fri, 11 Jan 2019 01:09:33 +0000 https://wallstreetinsanity.com/?p=38650 During the first quarter of 2018, U.S. household debt reached an all-time high of $13.2 trillion. In December 2017, our personal savings rate dropped to it’s lowest level since the debt-ridden mid-2000s, landing at a meager 2.4% of annual income. Even for those making six figures a year, 2.4% is almost nothing. With so little disposable income being put aside, ...

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During the first quarter of 2018, U.S. household debt reached an all-time high of $13.2 trillion. In December 2017, our personal savings rate dropped to it’s lowest level since the debt-ridden mid-2000s, landing at a meager 2.4% of annual income. Even for those making six figures a year, 2.4% is almost nothing.

With so little disposable income being put aside, many in the US would find themselves in a financial disaster if any big, unexpected expense popped up – large sums of money can be needed at the drop of a hat. What if your car needs a major repair, your pet becomes sick, or your child wants to take a summer semester of college that would require additional funds?

In these situations, how can we make do? One of the most effective ways can be personal loans. If you’re wondering to yourself, “what is a personal loan?” – it is simply money you borrow from an online lender, bank, or credit union for personal financial reasons.

What Is A Personal Loan?

Borrowers can use personal loans for any reason. Most are unsecured meaning you don’t need collateral to be approved. A mortgage is an example of a secured loan. The collateral is the house you purchase. If you don’t make your payments, the bank can take back your house.

Personal loans don’t require collateral because the amounts borrowed are relatively low, the average is $7,576. The lender allows you to borrow a certain amount of money, the principle. The cost of the loan is the interest rate.

The interest rate will depend on things like your credit score, credit report, and debt-to-income ratio. Those deemed to be low risk will be offered a lower interest rate. The loan, including interest, is paid back in fixed monthly payments typically over a period between two and five years.

Getting a Personal Loan is fast and easy. You can check your rate without affecting your credit score:

  • Credible: This online loan marketplace will show you rates from up to 11 lenders offering personal loans from $1,000 to $100,000 in just two minutes (a huge time saver).

You Can Do Anything With Personal Loans?!

There are hardly any restrictions when it comes to how you can use the funds. Yes, you can apply for a personal loan to pay for a vacation or buy a brand new wardrobe. You shouldn’t of course and most people don’t borrow money to pay for things like those.

When people seek out personal loans debt consolidation is usually the reason. A personal loan can be used to pay off credit cards, medical debt, payday loans or to take control of student loan debt.

Another way to use a personal loan is to pay for an expensive event like a wedding or a funeral. Given that the average wedding costs $33,391 and the average funeral costs $7,360 it’s not hard to see why people need to borrow for them.

Save and Simplify

What is a personal loan best for? Personal loans can be a great tool to improve your personal finances. If you’ve ever been mired in credit card debt, you know how hard it is to pay off. But do you know why? It’s the interest rate. The average interest rate on a credit card is a whopping 17.41%.

When you carry a credit card balance, you continue racking up interest charges. If you’re only paying the minimum monthly payment, it can take years to pay those cards off and you’ll end up paying thousands of dollars just in interest.

If you have several credit cards and aren’t good at keeping track of the due dates so you pay at least the minimum on time, you’re going to be racking up late fees too.

A personal loan can be used to pay off your credit card debt. Because the interest rate on these loans is usually lower than the rate on the credit cards, you can save thousands of dollars in interest depending on how much debt you had.

Rather than keeping track (or not keeping track) of the due dates for several cards, you just have a single payment to make. And your credit score is likely to increase, often dramatically once the cards are paid off.

Ideally, you have an emergency fund to dip into for things like urgent home or auto repairs but if you don’t, you might consider reaching for a credit card. But if you can’t pay the balance off quickly, you’ll be hit with interest charges. A personal loan is a better solution for unexpected emergency expenses.

We all know how expensive medical bills can be and things are only forecast to worsen. In 2014, 49% of patients were unable to fully pay off the balance of their medical bills. By 2015 it was 53%, in 2016, 68%. In 2020, that number is predicted to rise to 95%.

Health care providers aren’t shy about sending past due bills to collection agencies either. A study found that 59% of people contacted by a debt collection agency reported that it was due to a medical bill. When past-due bills go to collections, your credit score will take a hit.

If you’re facing medical bills you can’t pay, a personal loan can save you from ending up in collections.

Some Cautions

While personal loans are among the best tools you can use to improve your personal finances, they won’t work for everyone or for every kind of debt.

What is a personal loan going to require? Because most personal loans don’t require collateral, they’re something of a risky prospect for lenders and not everyone can qualify. Lenders will look at the following:

  • A credit score between 620-750
  • A debt-to-income ratio below 45%
  • Types of credit or loans you’ve had
  • Loan totals and credit utilization
  • Payment history
  • Any accounts in collection, bankruptcies, foreclosures or other negative marks on our credit report

It’s not impossible to be approved for a personal loan if you’re not an ideal candidate but the loan will have a higher interest rate than a loan for someone with healthier financials.

If you’re one of the 44 million Americans with student loan debt, a personal loan might seem like the ideal solution. And it can be but if your loans are federal, a personal loan may not be for you. Federal student loans come with programs meant to help borrowers who are having trouble making payments including:

  • Income-Bases Repayment
  • Pay As You Earn
  • Revised Pay As You Earn
  • Income-Contingent Repayment Plan
  • Income-Sensitive Repayment Plan

There are also student loan forgiveness programs available for borrowers who meet certain criteria. But when you use a personal loan to pay off a federal student loan, you lose those access to those programs.

Private student loans don’t include these programs so if you can get a personal loan with a lower interest rate than your private student loans, the personal loan can save you money and simplify your debt just as it can for credit card debt.

Where to Get a Personal Loan

In the old days, you had to go to a bank or credit union to get a personal loan. It required a lot of paperwork, the process could take several weeks, and you were limited to the lenders in your area.

What is a personal loan application process like? You can do it right from your computer, quickly shop around for the best rates, and have the money within a few days. Online lenders really streamline the process.

Credible:

By answering just a few simple questions, Credible will give you personal loan offers from up to 11 lenders in just two minutes. Credible is free to use and borrowers can get loans for as little as $1,000 to as much as $100,000.

Checking your rates does not obligate you to accept an offer. 

Stop Struggling

Having high-interest debt or past due bills is not only stressful, but it also prevents you from reaching your financial goals like buying a home, starting a business, or saving for retirement.

A personal loan can help you get out from under a financial burden so you can move forward.

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]]> 38650 5 Reasons Why You May Benefit From A Personal Loan https://wallstreetinsanity.com/5-reasons-why-you-may-benefit-from-a-personal-loan/ https://wallstreetinsanity.com/5-reasons-why-you-may-benefit-from-a-personal-loan/#respond Tue, 30 Jan 2018 02:10:03 +0000 https://wallstreetinsanity.com/?p=36976 If you’ve ever found yourself listening to a money podcast or reading a website like this one, you’ve probably seen or heard the term “personal loan.” There’s a good reason for that, as they’re often a great way to consolidate debt or pay for unexpected expenses. In order to know whether a personal loan is the right choice for you, ...

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If you’ve ever found yourself listening to a money podcast or reading a website like this one, you’ve probably seen or heard the term “personal loan.” There’s a good reason for that, as they’re often a great way to consolidate debt or pay for unexpected expenses.

In order to know whether a personal loan is the right choice for you, it’s necessary to understand exactly what it is. Generally speaking, it’s a fixed amount of money which is lent to you at a fixed rate for a fixed amount of time.

A high credit score usually gets you a better interest rate, but many lenders also look at your employment and education history when deciding whether to give you a loan. Loan amounts and durations vary from lender to lender, so it’s important to compare before committing.

Before you do any research, you should determine whether you’re a good candidate for a personal loan. Here are five scenarios in which you could likely benefit from one.

1. You’re swimming in credit card debt.

Credit card debt can creep up on you quickly, and it’s possible that you were lured into applying for certain credit cards due to 0% APR offers, balance transfer deals, and sign-up bonuses. Once those perks ran out, you were probably stuck with high variable interest rates.

A personal loan allows you to borrow cash to pay off all your credit card balances, leaving you with just one monthly bill at a lower, fixed rate. Your credit score will likely go up once your balances are paid, as installment loans don’t impact credit the same way that high card balances do.

2. You’re remodeling your home.

Have you always dreamed of adding a wrap-around front porch or a sunroom to your house? Perhaps your kitchen is in need of a major cosmetic update. A personal loan can be great in these situations, as such additions and improvements generally add to the value of your home and can usually be seen as good investments. You also spend a lot of time at your house, so there’s nothing wrong with making some sensible changes that will enhance your enjoyment.

A personal loan can also be a saving grace when you’re forced to make a home improvement you didn’t actually want, like replacing a roof or a hot water heater. While you can certainly debate whether you really want to take out a loan for marble countertops, some household expenditures are simply unavoidable.

3. You’ve encountered major medical bills.

Illness and accidents happen, and sometimes even good insurance plans can leave you with major out-of-pocket expenses. This can be anything from paying a high deductible to undergoing treatment that your insurance simply doesn’t cover. Auto accidents are also a major cause of unexpected medical bills.

The illness of a loved one can also be a major expense, particularly if you find yourself helping with their medical bills or traveling long distances to visit them. Pets can also take a toll on your bank account if they need an expensive medication or an operation.

4. You’re starting a business.

Being an entrepreneur can be exciting and highly rewarding, but start-up costs are often overwhelming. A personal loan could help you pay for a deposit on an office lease, buy necessary equipment, or pay for advertising.

Securing a personal loan to help with those costs can ease some of the stress that you’ll inevitably experience when you start your own business. Another perk is that personal loans through reputable online lenders are usually processed a lot faster than traditional small business loans from a bank.

5. Your car needs major repairs.

Owning a car can be a serious financial burden when things go wrong. While changing a timing belt probably won’t break the bank, a major repair such as a new engine or transmission can set you back thousands.

Taking out a personal loan for car repairs can be necessary if you rely on your vehicle every day and lack the cash to pay a mechanic. However, it’s important to make sure you don’t get carried away and use your loan to pay for cosmetic work or fancy new wheels. Unlike houses, cars don’t appreciate with time — so “fun” upgrades aren’t justifiable with a personal loan.

If you feel as though you could benefit from a personal loan, be sure to go with a legitimate lender and avoid online scams. Remember to shop around for the best interest rate and never accept a loan with a pre-payment penalty. You should also be aware of any upfront costs such as origination fees, and factor those into your calculations.

The post 5 Reasons Why You May Benefit From A Personal Loan appeared first on Wall Street Insanity.

]]> https://wallstreetinsanity.com/5-reasons-why-you-may-benefit-from-a-personal-loan/feed/ 0 36976 How A Personal Loan Can Help You Say Goodbye To Credit Card Debt https://wallstreetinsanity.com/how-a-personal-loan-can-help-you-say-goodbye-to-credit-card-debt/ https://wallstreetinsanity.com/how-a-personal-loan-can-help-you-say-goodbye-to-credit-card-debt/#comments Tue, 09 Jan 2018 21:09:04 +0000 https://wallstreetinsanity.com/?p=36974 The average American is carrying around $6,354 in credit card debt, according to a recent study. Digging yourself out of a hole of debt isn’t easy, as many consumers are stuck making endless minimum payments and never seeing their balance move more than a few pennies at a time. If you aren’t aware of the benefits of personal loans, this ...

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The average American is carrying around $6,354 in credit card debt, according to a recent study. Digging yourself out of a hole of debt isn’t easy, as many consumers are stuck making endless minimum payments and never seeing their balance move more than a few pennies at a time.

If you aren’t aware of the benefits of personal loans, this article will outline why you might want to consider applying for one if you’re struggling with credit card debt. Doing so can free you up financially and allow you to be in more control of your debt and overall financial situation.

How personal loans can help with credit card debt

For many, personal loans are the key to breaking free from the chains of credit card debt.

While personal loan interest rates vary, they are usually cheaper than credit card rates. This makes them an extremely attractive option for anyone looking to achieve the much sought-after title of being debt-free. Once you apply and are approved for a personal loan at a lower rate than your credit card debt, you use the personal loan to pay off this debt. You’re now able to pay less interest, save money, and get out of debt quicker.

Choosing the personal loan that’s right for you can be difficult, as the internet is full of scams and so-called “deals” which can actually worsen your financial situation. Still, there are plenty of reputable companies that can help you regain control of your finances.

2 top choices for personal loans are:

  • Credible: This online loan marketplace will show you prequalified rated from up to 11 lenders at once (a huge time saver). It takes just 2 minutes to get your rate. Credible can find you a personal loan for amounts between $1,000 and $100,000. Credible has a Best Rate Guarantee which will give you $200 if you find a better rate elsewhere (terms apply, see Credible.com for details).
  • Upstart: This personal loan company believes you’re more than your credit score. It takes your job history and education into consideration when determining your rate. You can get a personal loan from Upstart in amounts from $1,000 to $50,000.

What is a personal loan?

A personal loan allows you to borrow a fixed sum of money for various reasons. You pay off the money by making fixed monthly payments each month. There is a set end date, which makes budgeting extremely simple. Payment terms can vary by lender.

Most personal loans are unsecured, which means you don’t have to provide collateral to be approved. This is different from other loans such as mortgages (where your collateral is your house) or auto loans (where your collateral is your car). And unlike other loans, there are virtually no restrictions on how you spend the money you receive. Of course, a personal loan should only be used when there is a genuine need – and paying off high-interest credit cards is certainly a need for anyone looking to improve their financial situation.

Consolidating credit card debt with a personal loan

Trying to pay off even one high-interest credit card can be difficult, and that struggle is intensified with every additional card that you carry a balance on. Not to mention the hassle of making sure all of the payments get sent off every month, when they probably all have different due dates. And everyone knows that even one payment slip-up can be a black mark on your credit report.

Once you’ve been approved for a personal loan and received the money, you can take that cash and pay off every single card you own. You can close your accounts, shred the cards, and never look back. Yes, you’ll still owe the same amount of money as you did before, but you’ll be paying it off in one payment each month and saving a ton of cash in the long-run by no longer paying the incredibly high-interest rates charged by credit card companies.

How to get a personal loan

Technology has come through in a big way when it comes to personal loans, allowing you to apply online and receive your rate in just minutes. If you accept the terms, you’ll receive the cash into your bank account as soon as the next business day. No meetings, no appointments with loan officers, and no need to leave your home at all. It couldn’t be easier.

2 Top personal loan choices are:

Credible:

This online marketplace is a huge time saver. Credible will give you prequalified rates from up to 11 lenders in just 2 minutes. Credible can help you get a personal loan in amounts from $1,000 to $100,000 and has a Best Rate Guarantee. If you find a better rate elsewhere, Credible will give you $200 (see terms at Credible.com)

Let Credible.com find you a personal loan.

Upstart

Founded by former Google employees, Upstart offers loans ranging from $1,000 to $50,000. This personal loan company believes you’re more than your credit score. It takes your job history and education into consideration when determining your rate.

Borrowers typically will need a minimum credit score of 620, although applicants who have an insufficient credit history and therefore do not have a credit score can also be accepted.

Loans not available in: WV, IA

Apply for a personal loan from Upstart.

 

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