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New Borrowers: 5 Tips Before You Sign A Personal Loan

Are you getting ready to take out a personal loan for the first time? This is often quite exciting. Usually when you need a no credit check loan, it’s a time of growth in your family and personal life. There are situations we’ve all found ourselves in, where we realize that we need more equity than we actually have on hand. That’s why a personal loan can be so helpful. Here are a few things you’ll want to understand, before you sign on that dotted line:

Your Credit Score Matters! Not only does the specific number in your credit score, but so does your credit history. Be upfront about any problems you’ve had with your credit over the past 3 to 5 years. Today, most lenders are understanding that situations can arise such as changing jobs, divorce or even a major illness. You will be in the most competitive situation to get a great personal loan if your credit score is at or near 700. So do your best to at least reach this credit score number by the time you’re ready to apply.

Be Truthful About What You Can Afford. There is an old saying that “people are funny about money” and it’s actually quite accurate. Did you know that some will actually attempt to borrow much more than they need, simply to see if they can get it? That’s right! They think that by doing this, they are increasing their financial power. That then the next time they go to borrow, they will be able to get an even higher amount. But doing this means you take on quite a bit of risk. After all, what happens if you bite off more than you can chew? Don’t put yourself and your family under unnecessary stress. Besides, it is far wiser to borrow the exact amount you need and pay it off without missing a single payment – than it is to borrow 25% more and struggle to make the payments each time.

The Best Personal Loans Are For 2 to 5 Years. Now this is what is considered the real “sweet spot” for lending. Aim for about 2 to 5 years for the length of your loan. If a personal loan is longer or shorter, it quite likely is not an ideal situation. Depending on your circumstances, you may be better off taking out 1 loan to take care of part of the project and going back for another loan after you’ve paid that 1st one off.

Realize This is a Legal Contract. When you sign on that dotted line, not only are you getting that deposit in the bank or the check in the mail but you’re also agreeing to all of the loan terms. It’s important to keep in mind that this is a legal agreement. Yes, the font can be super, super small on these documents and sometimes it is hard to understand! Take your time reading it and ask questions if you want to confirm what a phrase means. Because by signing this, you are agreeing to what they say. You can’t claim you didn’t know, because you have been given the opportunity to read and reflect on everything before signing! Today, there are many great personal loans available that have helped individuals and families.

Consider Your Long Term Goals When Obtaining a Personal Loan. Some of the best reasons to get a personal loan are going to reflect long term goals. If you take out a loan because your daughter is getting married and you want the entire family to enjoy the special day, then this is going to be very special. Or if you take out a loan to get a boat for weekend fishing. Do you see which goal would be more important to your long term goals?

Loans have helped many people build for their future and make dreams come true. When you don’t have the cash equity in hand, a personal loan can make something you’ve always wanted within your reach. Individuals, couples and families have often turned to loans. You can too, to get what you want and desire. It’s all possible!

Payday Loans: 10 Facts You Should Know

Okay, just how much do you know about payday loans? They’ve been popular for about 10 years. Payday loans are available not only in the U.S.A., but also in the U.K. and Australia as well as other parts of the world. Sometimes a payday loan means the difference between having what you need when you can’t stretch your budget any further, or going without.

Many people find payday loans quite helpful, but they may not realize all of the facts about them. That’s why we created the article, so you can learn just a bit more about these loans. We’ve found payday loans perfect whenever you’re in a stretch to get to that next paycheck.

Here are 10 informative facts about payday loans!

1. A payday loan is also known by other names. It’s also called a “short term loan” or a “cash advance loan.”

2. Do you understand how long a payday loan is in effect for? Now this can depend a bit on exactly where you obtained your payday loan. But the most popular terms are for 14 days, which gives you enough time to get to the next paycheck. That is if you are payed biweekly or bimonthly.

3. What do payday loan companies do to qualify you for a loan? The #1 and usually the only thing they do is to verify that you are employed. If you have a job, then you can get the payday loan that you desire. Yes, it really is that simple to get the payday loan you need. This is a great convenience for many individuals and families trying to make ends meet.

4. Payday loan companies do not verify income. So while they do double check to see if you have a job, no one asks exactly how much money you make. This means you have minimal limits on this micro loan as to the amount that you request to borrow. Because the terms are far less strict than if you went to the bank or another type of lender.

5. One thing that is quite helpful to know is that you can get as many payday loans as you need during the year. There is no limit on the number of payday loans that you obtain. Simply that you pay them back in a timely manner. But you can borrow as much and as often as you would like to. That’s exactly why payday loans are there for.

6. When you go to get a payday loan, they do not run a credit check or look at your credit score. For some, having a credit score check can feel quite stressful. If you just got a divorce and your spouse was the spender in the relationship then you know your credit score is not very good. It’s terrific that you can get a payday loan without worrying about your credit score.

7. When you go to get one, they don’t ask what you need the loan for. Now this is quite helpful and actually rather different from when you get a loan from the bank. Because the bank is going to ask many questions and judge exactly what you need the money for and if it has value. But your payday loan company will not do that.

8. Most often the payday loan is due when your next paycheck comes in. While the “official” term of a payday loan is 14 days, when you sign up to get a payday loan they are going to ask when you get paid. Because that day is when your payday loan is due. They know you will have the money to pay them back right then on that exact day.

9. You don’t need a bank account to get a payday loan. Not everyone needs or wants a bank account. But it is basically impossible to get a loan at the bank without a bank account! Fortunately you can get a payday loan without one.

10. People just like you get payday loans. Moms, teachers, nurses, store managers, entrepreneurs, accountants, truck drivers and many more people get payday loans all the time. There are plenty of circumstances where you want and need that helpful payday loan.

Should You Get a Secured or Unsecured Loan?

You may wonder if a secured or an unsecured loan is better for you. Either choice has its benefits. Quite simply, a loan can help to make things happen where otherwise you would be spinning your wheels. Without the loan, you might have to wait months or even years to make your dreams come true. There are many benefits to getting either a secured or unsecured loan, but each are a bit different. You’ll likely want to choose them under specific circumstances too. Here is some helpful information to guide you!

So, what exactly is a secured loan? This is a loan where the person borrowing offers an asset such as a car or property as collateral that becomes secured debt. This debt is secured against the collateral (car, property or other asset), so if the borrower defaults, the creditor now possesses the asset. This helps the creditor obtain some of the amount that was originally lent, in the form of an asset. Secured loans include a mortgage loan, home equity loan and a car loan.

Here is what you should know about an unsecured loan: this is offered to the borrower without an asset. Some borrowers prefer to choose an unsecured loan because they may not have an asset to offer for a loan. Or they may have an asset that does not equal the value of the loan they would like. Quite often the rates of an unsecured loan are reasonable. They are also determined according to your credit rating and previous credit history. Unsecured loans include payday loans and personal loans.

Pros for a secured loan:

A loan is offered, in exchange for offering the asset as collateral. For some people who do have an asset such as a car, house or other asset such as a boat, this is an ideal choice to make. A borrower can feel more confident that they will have the chance to get a loan, because they have an asset to put up to secure it. They know that a creditor is going to feel secure they will be paid back, because they are offering their asset to promise the loan.

Borrowers do find they can be offered good terms on a secured loan, because they are putting up an asset as collateral. A borrower really appreciates being given a lowered interest rate and lending friendly terms by which to repay the loan.

There are times choosing a secured loan gives a borrower a chance to get a loan, where otherwise they might have a challenging time getting a lender to give them another type of personal loan.

Pros for an unsecured loan:

The interest rate on unsecured loans is often reasonable, though sometimes it may be higher than for a secured loan. A secured loan can help you pay off a debt that feels overwhelming such as credit card debit. It also can help you take care of an unexpected home repair that is urgent. A good credit score is important when obtaining an unsecured loan, as you are not giving a creditor an asset. Thus, your credit score and credit history are essentially your “asset” and guarantee that they will be paid back in a timely manner.

Reasons people would want a secured loan:

A family might choose to take on a secured loan, to do major repairs to a home. They may want to add additional rooms so an elderly relative can move in or they are having more children.

Someone who has recently graduated from college may have a car as their major asset. With this asset, they can obtain a loan to get a down payment on their first apartment. If they have just started a new job and do not have a paycheck coming in yet, then choosing to do a loan in this way offers them an opportunity to start the new job and have a place to live close to work.

A newly divorced man could use his boat as an asset for a secured loan, so he could buy a car. If his wife got the family car in the divorce, then he would need to buy one. Sometimes divorced people find their credit rating needs a chance to improve, especially if one member of the couple has been a big spender during the marriage.

Reasons people would want an unsecured loan:

A new homeowner discovers that the boiler doesn’t work at the start of winter. The snow is starting to fall, and this new boiler must be purchased and installed. But they do not have the money in their savings account to purchase it. So getting an unsecured loan helps them to obtain it.

A couple celebrating their 25th wedding anniversary wants to take the luxury vacation they dreamed about for their honeymoon but could never afford. They get a loan and are able to stay in five star hotels and eat in the finest restaurants.

A family has twin daughters who have both announced they are getting married over the same summer. It’s an exciting time but will cost more than they realized. They take out a loan so each daughter can have their own special day.

Taking out a loan can mean the difference between being comfortable in your home and experiencing discomfort. It can send a child to the school they want to go to. Loans give you many options and choices!