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What are the Pros and Cons of Debt Consolidation?

Debt consolidation is a loan taken to pay off all your existing loans. With debt consolidation loan, you are responsible to make repayment to a single creditor only. It is easier to plan your bills repayment when you only have one due date to manage. You only have to set one reminder on your phone to remind yourself to make repayment promptly.

Another benefit is that more of the payment you make will goes toward covering the principal amount. In credit card, making the minimum payment will only cover the interest charges. When more payment is used to cover the principal amount, you will be able to pay off the loan and get out of debt faster.

When you take out a debt consolidation personal loan, you won’t have to decide which creditor you want to pay first. In addition, you don’t have to face the risk of your properly getting repossessed when you can’t keep up with the repayment.

Unsecured debt consolidation loan tends to have higher interest rate but the rate is still lower than the interest that is charged on your credit card. Lower interest means you have to make a lower monthly amount. This helps if you have a low income and is struggling to set aside a large amount to repay the loan.

Debt consolidation personal loans also have its own disadvantages. The disadvantage is that you may be prone to spend more money after freeing up some money. It is important to be wise and save the extra money from your salary instead of using it to become entangled in more debts.

A lower monthly payment usually means you agree to repay the loan over a longer loan term. This means you spend more in the overall interest charges that you are paying. For this reason, it is best to use an online personal loan to consolidate your existing debts. Many online personal loans waive the early repayment fee and prevent you from getting extra charges when settling the full loan amount early.

Finally, you must keep in mind that debt consolidation does not solve your debt problem. You must change your spending habit and start learning how to manage your finance wisely. When you are financially disciplined, you will be able to prevent yourself from getting into debt.

When taking out a loan, always remember to take out an unsecured loan. An unsecured loan has no collateral and won’t put your properly in risk. Generally, you need to have a good credit score to get approved for an unsecured personal loans. Prior to applying, make sure you request for preapproval and get to know your interest rate. In this way, you can compare the debt consolidation loans with different lenders and make a wise decision.

Short Term Lenders Who Lend In Texas Are Regulated By Which Entity

Many of the short-term loans in Texas are regulated by the Texas Office of Consumer Credit Commissioner (OCCC). If your lender is not regulated by the OCCC, you can contact the Texas Department of Banking and they can redirect you to the regulator. It is important that you apply for a loan from a regulated lender because you are sharing your personal information with them when you submit the loan application.

Many scam loans are issued by unregulated lenders. Usually, scam loans will ask for a lot of fees that are illegal and should not be charged such as an advanced fee. After they collect the fee, they will disappear and not release the funds to you. Scam lenders often ask the borrowers to wire transfer money to them. Many scam lenders make a little change to the name of the legitimate lenders or banks to make people think that they represent the same legitimate lender.

Unregulated lenders often target at people who have poor credit score. People with poor credit score are desperate to get loans and they would look to unregulated lenders when they cannot get approved for a loan from the bank. As a rule of thumb, you should avoid loans that have lending terms that are too good to be true. If you have poor credit score and urgently need a loan, you should call the National Foundation for Credit Counseling and get help from them.

Prior to getting a loan, you should ask your friends and family members to provide references. If you are interested in applying for a loan from a lender, you should first call the Better Business Bureau (BBB) and make inquiries on what types of complaints it has in the past. If the lender is legitimate, you can start reviewing the features of the loans such as interest rate, loan term, monthly payment amount, and fees.

You can visit the online loans comparison site to compare the interest rates. Besides the interest rates, you should also find out about other costs of the loan such as closing fees, and commissions. You can use a loan calculator to calculate the costs of various loans you are considering and decide for yourself which one is the best offer. Many online lenders allow you to get pre-approved.

A regulated lender will always provide clear disclosure of the lending terms of their loan products. If it does not disclose the lending terms, you should not apply for your loan from the lender. Before applying for the loan, make sure you read the fine print and understand all the terms. If you have any question, make sure you ask your lender to explain before proceeding in putting down your signature on the loan agreement.

Which Online Personal Loans Can Be Used for Buying a New Car, Marcus, Discover or Rocket Loans

RocketLoans is the personal loan that you want to apply if you need financing for purchasing a new car or secondhand car. You can also use the funds from RocketLoans to pay for your car repair expenses. RocketLoans is a relatively new online loan provider founded in February 2016. It has a sister company called Quicken Loans that specializes in providing mortgage loans. The personal loans are provided via Cross River Bank which is based in New Jersey. RocketLoans personal loans is only suitable for covering auto expenses but it also can be used for other various personal purposes such as medical fees, debt consolidation, and home renovation. RocketLoans does not allow its loans to be used for funding a college education or activities that are illegal.

With RocketLoans, you can borrow in between $2,000 – $35,000 and the interest rate starts from 5.9% – 28.99%. The APR interest rate that is assigned to the borrowers can depend on various factors such as the history of credit inquiries, whether you own your home or living in a rental home and the length of the loan term. Borrowers can choose from loan duration that is in between 3 – 5 years. When the loan is approved, you can expect the fund to be released as soon as the next business day.

Borrowers whose loans are approved must pay an origination fee that can range from 1%-6% of the borrowed amount. The origination fee is automatically deducted so the loan amount that is deposited into your account will be the amount that has already deducted the origination fee. For example, if you apply for a loan amount of $7,000 and the origination fee is 6%, the amount that you will see in your bank account is $6,580.

RocketLoans target on customers with good credit scores but it is willing to accept customers with credit score starting from 640. Most of its borrowers have a much higher credit score. Borrowers must maintain a minimum credit history of at least 2 years and be able to show proof of a solid income to pay for the loan. The average income of the borrowers who were successfully approved for RocketLoans is $80,000 per year. In addition, the borrower must not have a debt to income ratio that exceeds more than 34%.

Applicants who are interested in RocketLoans can first submit the application online at the official site. They will perform a soft credit check that won’t affect the applicant’s credit score. The soft credit check will let the applicant knows the estimated interest rate that he will be charged for the loan. The final APR interest rate is provided after the hard credit check has been performed.

3 Tips to Improve Your Credit Score from 680 to 700+

A low credit score increase your chances of getting turned down by the lenders and credit card companies. If you are having an average credit score, you will find many lenders will approve your loan but at a higher interest rate. To avoid paying high interest on your loan, you need to increase your credit score prior to applying. The following are 3 tips on how to increase your credit score from 680 – 700+.

You are entitled to receive a free credit report from each of the three credit bureaus every year. You can go to annualcreditreport.com to request a free credit report and print it out with your printer. After printing out the credit report, you can review it to see if there is any error information. When reviewing the credit report, you should check and see if there is any mistake record on late payment. You can submit the incorrect information on your credit report for dispute at the credit bureau.

If you have a lot of unpaid bills, you should focus on paying down them. Having a lot of unpaid debts means you have a high credit utilization ratio which can reduce your credit score. To pay your bills on time, you should set up a budget and be discipline to stick to the plan. You can have self control and live a frugal lifestyle so that you can meet the bill repayment deadline. Credit utilization accounts for 30% of your FICO score which means than you should not use more than 30% of the overall credit limit of your credit card.

If you can’t afford to pay down your balance, you can negotiate with the lender to reduce the outstanding balance. If you successfully negotiated with your lender, you must get it put down in a written agreement. Alternatively, you can persuade your creditor to increase your credit limit so that you have a lower credit utilization ratio.

Another way to raise your credit score is to get added as an authorized user on someone’s credit card. You can ask someone who has good money management skill to add you as an authorized user on the credit card. The account of the credit card which you are being added as an authorized user will show up on your credit report. So, if the person use the card responsibly and make on time payment every month to the card, you will be able to increase your credit score. There is no need to spend any money on the card to get a boost in your credit score. If you want to use the card to buy stuff, you can discuss with the person on how much you are allowed to spend.

How Many Personal Loans can Borrowers Have at One Time in California

You can take out as many loans as you want in California but there are some down sides. Everytime you apply for a loan, the creditor will take a look at your credit report to perform a hard inquiry. This will slightly reduce your credit score. The more bank you go to apply for loans, the more your credit score will be affected.

Lower credit score means higher interest rates so you should ask the lender about the rate prior to applying. They may not be able to tell you the exact interest rate you will be charged but they can give you a rough figure. In this way, you know the rate that you can expect to pay. If you are facing a financial crisis, you can borrow from multiple lenders to get quick access to the cash to meet your financial needs. In this way, you don’t have to wait for a longer time to get the amount of money you need for your financial problem.

Although getting multiple loans can ding your credit score, it can also be used as an opportunity to increase your credit score when you make the decision to pay back promptly. Applying for multiple lines of loans can be expensive so you must ask yourself whether you really need to borrow that much money. You have to make sure that your motivations to apply for multiple lines of loans is right so that you don’t fall into the trap. You must make sure that you are able to afford the loan as it is not a small issue to be default on multiple loans.

Before you apply for a loan, it is important to always read and fully understand terms and conditions. You must keep in mind that you will not only be charged with an interest fee but also other hidden fees. For example, there are lots of creditors that like to charge origination fees in their loans. He origination fee is usually about 4.5% of the loan amount.

It is also very common for the creditor to charge a penalty fee for those who are late in making payment. For this reason, you must find out from the creditor the total amount repayable including the APR. it can be confusing to try to determine the interest and fees that you will be charged by going through the terms and conditions. If you are not sure, you must not be shy to ask the representative to explain the details of the loan to you.

As a rule of thumb, you should shop around with several creditors instead of making a rash decision. You can visit the top review sites to find out which financial institutions is offering the best interest rates and fees for the loans.

Why Students Should Avoid Getting Too Many Student Loans to Cover Non Education Expenses

Many students who need more money to spend in their expenses will often look to applying for student loans. They get so excited with the money from the student loans that they forget that the debt burden that they are going to carry once they graduated from college. They forget about keeping track of the interest rate for each of the loan they apply. As a result, when they graduated out of college, they are very surprised that they now have an enormous pile of debt to pay back.

When you are just graduated from college, your first job will usually have a low salary. It can be challenging to manage the repayment of your loan with a small income every month because you have to cut off the expenses of many things you wanted to buy in order to live on a lean lifestyle. You could have avoided this by setting a budget and keeping track of your expenses to make sure you don’t spend more than your pocket money. Since you are still studying and not yet working, you should avoid spending money on things other than your basic expenses such as gadgets, electronics, clothes, or invest. All these things are expensive and you have to take multiple loans just to fulfill your wants.

Students who are currently in college now can avoid the debt trap by applying for the minimum amount that they need for buying groceries. You don’t need to calculate your expenses for entertainment when deciding how much loan to apply. Instead, you can come up with ideas on other things you can do for free to satisfy your entertainment needs. If you work during school holiday break, you can use the money that you earn to pay back some of the student loan interest.

If you have already graduated, you should try to improve your cash flow so that you can achieve debt freedom quickly. If you are going to graduate from college soon, make sure you update your loan contact information to the address of the apartment that you are going to move in. if you don’t change the address, all the bill statements will go to your parent’s home. This will cause you to forget about making the repayment for your loan on time.

If you take out several loans, you must make sure you know how much is the monthly repayment that you need to come up with for each loan every month. You also should take note of the monthly due date and grace period for each of the student loans. In this way, you know how much to set aside to pay your student loan. You can always seek advice from your loan servicer if you have any question about repaying the student loan.

Learn more about personal loans and short term advance lenders, we cover all aspects of personal finances.

Manage Your Money Better In 2016 With Some Retirement Savings Tips

Financial Planning – Retirement Savings Money Tips

There are many aspects to financial planning, the most important being: What are you planning for? It could be saving for a house, your children’s college education, or retirement just to name a few. Today we are going to talk about financial planning for retirement.

When Social Security was enacted in 1935, people could count on being able to live off their Social Security when they retired. Of course, in 1935, you could buy a loaf of bread for eight cents, a new home for less than $3500 and people made an average of $1600 a year. Those days are long gone. Now people are lucky if they can get a new home with a $3500 a month mortgage payment in most of the country, and it really isn’t possibly to live comfortably on just Social Security. Now, people need to do some financial planning to “supplement” that money they put into Social Security over the years or they really could find themselves choosing between their medication or food.

It should go without saying that the sooner you start planning financially for your retirement, the better your financial position will be when you retire. But that doesn’t mean that after a certain age, things are hopeless, it just means you might not retire as soon or will have to live on less money.

It seems as though very few companies offer pension plans, unless you are in the executive management section of the corporation with stock options, pension, etc. But those people rarely need help with planning for their retirement. Also, union and government workers usually have pension plans.

While many companies don’t offer pensions plans anymore, that doesn’t mean that they don’t have options for retirement. Things like 401K plans where your employer matches your contribution is a great part of planning for your retirement. One of the best things about a 401K plan is that while if you leave the company, you can’t keep it there, as long as you either transfer it to your new employer’s 401K plan or another retirement fund like and IRA, you don’t lose any of the money. And these plans aren’t taxed as income, so you save the tax money as well. However, if you don’t transfer these plans within a certain period of time, there are steep penalties, plus the income tax. The same applies if you withdraw from your IRA fund before retirement; penalties and taxes.

Using a professional financial advisor works well for many people as well. Companies like Meryl Lynch and others offer affordable financial planning for people in all ranges of income. A financial advisor isn’t just for the rich anymore. For many people, having a financial advisor is so helpful because it takes the burden off of what is typically an already overburdened and over scheduled life most of us are living these days. A financial advisor will take some time to get to know you, find out how much risk you want your plan to have, and help you figure out how much you need to invest over time to reach the goal you want when you retire. Once all of that is decided, your financial advisor handles all the transactions and you just send them what you decided you could afford to invest. Some people are willing to go with high risk types of plans, others want the least risky, and everything in between. But a good financial advisor can help you figure out what type of investor you are comfortable being and then create a plan that matches your wants and needs.

Covering a wide range of topics from lending to debt reduction, credit cards, retirement and creating goals for personal finances. Have some suggestions, send us an email anytime.

5 Reasons When Its Ok To Seek A Personal Loan Online

Most times financial experts and writers will tell you debts are bad. In many cases debts are, who wants to be in debt? Yet believe it or not, not every debt is bad. Debt helps us to build up our credit history and our FICO score for one, secondly it allows us to get a home and a car, among other things. So some debt is good debt, needed debt, and some debt, such as racking up $10,000 on credit cards buying stuff we do not need is bad debt. When we manage our debts wisely, good debt can be a tool to obtain the things we need in life. Which is why personal loans when used correctly can be a very beneficial type of debt, that can help us with sudden emergencies and other long term needs. This assumes we use the money from a personal loan wisely. Lets discuss some good reasons people take out personal loans for.

Medical Expenses
Medical expenses are a prime example, if not the best example of a good reason to take out a personal loan. One should never put off a medical procedure simply due to finances or not being able to afford it at the time, as our health is important. We only have one life, and the debt from a personal loan is a small thing when compared to this. Putting off medical care can complicate whatever condition we have and make it worse.

Home Repairs and Improvements
Your home is likely your number asset, so home repairs should never be out off, especially when it comes to emergency repairs such as water damage restoration. Putting off repairs, especially over money, is never a good idea, and putting off these repairs could lead to more costly repairs down the road. This is one area where a personal loan can definitely help, and even save you money later. Another area where personal loans are a good idea is taking out a personal loan for home improvements, since they add value to your home. Think of a home improvement as an investment.

Consolidate Debt
If you have many smaller debts, sometimes a personal loan can be a good idea to consolidate all of those debts down to one more manageable debt. One lady I advised her issue was that she had 15 separate debts and kept missing payment dates, so her credit one would suffer with each missed payment. Simply rolling all debts into one monthly payment can greatly assist people and make their bills more manageable, so this is one instance where a personal loan would make sense.

Better than Credit Cards Often Times
Sometimes, not always, using a personal loan is a much better option than breaking out the plastic for a large purchase or expense. The only time breaking out plastic is a better idea is if you have a low interest rate and if you do not mind your credit score tanking due to a high credit utilization. The more revolving credit you use out of your total credit limit, the lower your credit score will be. The rule of the thumb is to use no more than 30 percent of your available credit, anything else signals to lenders that you are having financial problems. Many times a personal loan will offer you a lower interest rate, and keep your credit score intact, so in this case a personal loan would make the most sense.


Emergencies

These happen to every day americans every single day of the year. Often times these emergencies catch us unaware, such as needing a new transmission, which is an expensive endeavor. Even those of us with rainy day funds can be hard pressed during an emergency. Also you may need that rainy day fund for another sudden emergency, in these cases a personal loan is the right choice.

If you need a personal loan, be sure to read the reviews of personal loan lenders on this website to find the right lender for your needs.

Potential Pitfalls If Your Are Considering A Debt Consolidation Program

Many people choose to consolidate their debts, to end the cycle of debt that they are in. Consolidating your debt can result in lower monthly payments so it is a good option for those who are serious about eliminating their debts. Yet there are a few common pitfalls that consumers often run into when it comes to debt consolidation. Here is 3 common pitfalls that consumers run into often enough


When do a balance transfer to achieve debt consolidation

Credit card balance transfers can provide the means to lower your interest and go down to just one bill per month. The mistake that many people make is assuming that this transfer is immediate, when in fact it often takes up to two weeks to achieve. They fail to make the minimum payment on their credit cards, then get slammed with not only late fees and penalties, but also take a ding to their credit report and credit score. Even if you are doing a balance transfer, if you fail to make the minimum payment, you will be reported 30 days late, which is a serious ding to your credit. To avoid this problem, make at least the minimum payment on your credit cards. After your balance transfer goes through you should still log into your old credit cards websites for up to a month to check for any surprise balances that were not showing or fees. If any amount other than zero shows up you will need to make the payment or face late fees and a damaged credit report.


Applying for multiple loans at the same time

Many people try and rate shop by applying for multiple loans over the course of a few weeks. While you get less of a ding if you apply for most of them within a few days of one another, you still receive a credit ding for all of these hard inquiries. So trying to be a smart borrower by shopping for the best rate can harm your credit report due to to many inquires. To avoid this problem you can look up your credit score online and pull your credit reports via annualcreditreport.com and look for any mistakes that may be effecting your credit score. Once you are armed with your credit score you can begin to look for lenders that fit your credit criteria and credit score range. Some lenders websites will list their credit requirements, and for those who do not you can simply call or email them, explaining that you do not want a hard inquiry if you can avoid it. Once you know all of the various lenders requirements, you can then apply for the right loan for you, all without having to damage your credit score. Do remember to take into account the APR and not just the interest rate. The APR will include the fees, while the interest rate will not do so. Every loan has fees attached to it, and consolidation loans often come with fees.

Falling for a scam
There are a ton of debt consolidation scams online and in the real world. From fake online lenders to debt consolidation companies the scams run deep and wide online. The fake loans may be asking for a fee upfront, and your important information like your social security number, date of birth, and address for identity theft purposes. Scam and fake debt consolidation companies will often ask for several months of payment in advance, and when it is time to use their services, they will be long gone with your money. Often times we run into deals that seem to good to be true, and as the old saying goes if it seems to good to be true it probably is. Only go through reputable lenders and avoid fly by night companies. Check on businesses with the Better Business Bureau and do searches online with the names “scam” and “complaint” along with their business name. If lenders are required to be registered in your state you can check on their status by contacting your states Attorney General. If you discover your potential lender is besieged with complaints, it is time to take your business elsewhere.

Personal Loan Providers Operating In Wisconsin

Do you need a personal loan quickly, but have been denied by banks in Wisconsin? Have you been faced with only having two choices, payday lenders or a car title loan? You deserve to find a personal loan with rates you can afford and with terms you can live with. You do not have to settle for a payday lender or a car title loan, no matter what your credit score may be. We know how hard it can be to find a good personal loan lender in Wisconsin, which is why we have put together a list of reliable lenders that offer loans to residents of Wisconsin.

LendingClub
LendingClub is backed by the online bank WebBank, and they offer residents of Wisconsin personal loans regardless of credit score. They even accept loans for consumers who have under 600 on their FICO score. Your APR will range from 5.99% to 32.99% and terms can be as high as 5 years, giving you ample time to repay your debt. The best APR rates are for those with excellent credit, and people with scores under 620 can expect to pay 27% or higher interest. They allow you to borrow as little as $1000 and as high as $35,000. You can borrow the funds for whatever you wish, provided that the money is being spent legally.
https://www.lendingclub.com


Springleaf

Springleaf offers online loans to people in Wisconsin. If approved for a loan the funds can be wired to your bank account the following day via ACH transfer. Loans can be as low as only $1000 and as high as $25,000. They have a quick turn around time as far as the loan approval process goes, usually in as little as one hour. They can work with you on assuring the payments are better tailored to your unique financial needs so that you do not fall short on your other financial obligations while repaying the loan. The application only takes a few minutes so it is worth looking into. Your APR will vary according to your credit score and past credit history.
https://www.springleaf.com/

Avant
This is the last one on my list. They offer loans to residents of Wisconsin upwards of $35,000 and as little as $1000, however their best interest rate is steep, at 19.99% interest. People with poor credit can expect to pay higher than 31% interest with Avant. The good thing about Avant is they do approve loans that many other lenders would back away from, and of course they are less expensive than payday or car title loans. They surprisingly have a very high customer satisfaction rate, with 9 out of 10 who borrow from them recommending them for a loan, so that does speak volumes about the company. Customer service is U.S based and very friendly, and they offer a variety of payment methods. You can always check your rate without affecting your credit score, this is because they do a soft inquiry instead of a hard inquiry. It is worth checking what rate they will offer you if you have been denied elsewhere. You can also opt to speak to a loan officer if you have been denied a loan through them and have the chance to convince them to make the loan for you.
https://www.avant.com/