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7 Smart Ways to Use a Personal Loan

Posted on June 18, 2019 | by Cole Lehman | Leave a Comment

Every so often, it is normal to find yourself in a situation where you need extra cash. There are many ways through which consumers can raise the money they need to handle emergencies or meet their financial needs. One of the most common and convenient ways of doing this is to get a personal loan online. However, before approaching any short term loan lender for these products, it would be important to learn about the various smart ways to use a personal loan. This will not only help borrowers to make the most of the money but also help to avoid frustrations arising from financial difficulties.

Seven Ways to Use a Loan

Here are several smart ways to use a personal loan that borrowers should know about.

1. Consolidate Debt to a Lower Interest Payment

In case you are struggling to pay off your credit card loans and other debts, you may want to think about consolidating the loans into a single lower interest payment. Debt and bill consolidation makes it easy for borrowers to know how much they owe and keep track of their monthly payments. However, your circumstances will determine whether this qualifies as one of the smart ways to use a personal loan. While taking out a personal installment loan for debt consolidation is becoming increasingly popular, borrowers should always be aware of the advantages and disadvantages of making this financial move.

When it comes to advantages, personal loans for consolidating debt may have a longer repayment period, making it more convenient for borrowers to pay back. This may also mean that the amount of money to be paid back may be significantly lower.

One of the disadvantages of debt consolidation is that you may end up paying more in interest depending on your credit score. However, this will be influenced by the type of loan, market conditions, and the lender you choose to work with. Similarly, the extended repayment period may mean higher interest in the long run, even though you may feel less of a debt burden.

As much as you may consolidate your debts and take out a loan to clear them, you should remember that you still have a responsibility to pay back the debt. To determine whether this is one of the smart ways to use a personal loan, it would be important to speak to a financial advisor.

2. Boost Your Credit Score

A good credit score plays a critical role when borrowers are looking to borrow money from financial institutions. This is why it is important to maintain a good score and boost it in case it is negatively affected. Depending on how the borrowed money is used and repaid, this could be among the smart ways to use a personal loan.

Most lenders will consider the relationship between your credit limit and spending over a given period before giving out a loan. Borrowers with high credit utilization are considered to be a higher risk.

Personal loans can help borrowers to consolidate debts, reducing their balance during a given month, and therefore improving their credit score.

Whether you are looking to get a personal loan online or from traditional lenders, you should carefully evaluate your ability to repay the loan. A personal loan presents borrowers with the opportunity to improve their credit score. However, this will only happen if all the loan installments are paid in good time. Since late payments or missed payments will hurt the credit score, this is an issue that borrowers must consider carefully.

There is no doubt that personal loans can help to improve your credit score in case of poor credit. However, achieving this goal requires a certain degree of financial discipline. Borrowers will also have to be sure that they will make timely payments for the loan to have a clean credit record and history.

3. Emergency Medical Expenses

Even with insurance, emergency medical expenses can result in unpaid bills that could lead to bankruptcies and negative credit reports. While having money saved in a savings account would be a great way to avoid the associated frustrations, this is not possible for most people. This is when taking out an emergency loan for medical bills makes for one of the smart ways to use a personal loan.

Paying for medical costs out of your pocket can be expensive, considering the high cost of healthcare. While you can think of negotiating the bill with the concerned medical practitioner, there is also the nurses, anesthesiologists, and the hospital itself. Medical loans are designed for people who run into financial trouble as a result of medical expenses. The loan allows borrowers to settle the medical bill in full and payback installments over time.

One of the advantages of this type of personal loans is that borrowers can still get them even with bad credit. Banks and credit unions can also extend the loan under emergency circumstances even if you already have a loan with them. However, borrowers should ensure that the emergency loan for medical bills will not lead to a debt burden that overwhelms them.

4. Home Improvement or Maintaining Your House

After staying in your home for a considerable period, you may find it appropriate to upgrade the property. Whether you want to make it more functional or boost its value before putting it up for sale, you will have to figure out where the money for the project will come from. What most people do not know is that there are personal loans for home improvement or maintaining your house.

There are several instances where taking loans for this purpose joins the list of smart ways to use a personal loan. Since personal loans have to do with a borrower’s credit and ability to pay, they will be a great option to consider if the borrower does not have enough equity in their home. This also applies if the borrower wants a shorter or fixed repayment term. When they do not want to use their home as collateral or when the borrower wants to start their project right away.

One of the reasons why this makes it to smart ways to use a personal loan is because it contributes to increasing the value of the property. However, it remains important to look at the interest rates charged on the loan, the repayment period, and other fees before taking out the loan. Before committing to these loans, borrowers must check out the different options available to establish the product that will be a better fit for them.

5. Repair a Car That You Use for Work

While most people know that they can take out personal installment loans to buy a car, very few are aware that they can borrow to repair a car that they use for work. Unexpected maintenance and repairs for your car will put you in a situation where you find yourself in need of quick cash. A personal loan to take care of the expenses associated with repairing your car will allow you to pay back the money over several months. This reduces the financial pressure you feel so that you can carry on with other things.

Getting your car working will save you from additional expenses that would arise if the problem is not fixed in good time. This is why borrowers may want to consider taking out a personal loan to help them meet such costs. Some of the advantages of taking out a personal loan are that the process is easy, quick, and private.

When thinking of smart ways to use a personal loan, borrowers should ensure that the borrowed funds will be used in such a way that it will make economic sense. Repairing a car that you use for work will make it easy for you to generate income. Unlike borrowing for luxury spending, this will allow you to move to work and transport stuff more conveniently.

Young man calling for assistance with his car broken down by the roadside

6. When You Can Use a Personal Loan to Make Money

While borrowing has risks associated with it, borrowing for the right reasons can help you reach your financial goals. Rather than letting an opportunity pass you buy, you should consider approaching lenders to advance the cash you need to take advantage of such situations. This includes financing a business expansion that will increase profits, paying for a home remodeling exercise that will increase the value of the property and paying for a course that will translate into better career prospects.

In most cases, putting money into a project where you expect to make money comes with certain risks. There is never a guarantee that investing in a given venture will bring about the expected results. In fact, there is the possibility of losing money. As such, this move must be a calculated risk. Even if the venture fails, borrowers will still be required to repay the loan. This means that it is extremely important for borrowers to do their research to establish whether the opportunity is likely to work out.

There is no doubt that borrowing when you can use the cash to make more money is one of the smart ways to use a personal loan. However, the most important thing is to ensure that the money is put to proper use. Only by doing so will it help to improve the quality of life or generate more income. Using the money for the intended purpose will also go a long way in ensuring that the loan is repaid promptly without straining.

7. Emergency Situations With Your Home

Every homeowner wants to make sure that their home is comfortable and functional at all times. However, once you begin your home ownership journey, there are times when you will have to carry out repairs to both the structure and the different systems in your home. In case such situations arise at unexpected times, you will be forced to find reliable sources of money to carry out the repairs. This is when taking a personal loan may become one of the smart ways to use a personal loan.

The reasons why people take out loans for emergencies with the home are as different as the borrowers themselves. These loans can be used to remove health and safety hazards, carry out repairs, or modernize the space. Depending on your needs, you should consider looking for a lender who will offer products that are suited for your situation.

Today, a good number of people get a personal loan online to execute such projects. This is because most online lenders have flexible requirements. At the same time, online loans have a shorter and faster application process when compared to taking out loans with traditional lenders. As a borrower, you will want to work with a lender who makes it possible for you to meet your needs at the right time and pay back the loan conveniently over time.

Key Points to Remember

Much has been said about the benefits of personal loans. However, for borrowers to realize these benefits and ensure that personal loans help to improve their lives, they must ensure that the money is used wisely. This means finding smart ways to use a personal loan. So that repaying it does not lead to financial difficulties and a larger debt burden.

Make a plan – the first step when it comes to using a personal loan wisely is to make a plan. This means identifying the need for the money, figuring out how much is required, choosing a lender, and discussing a suitable repayment schedule. Lastly, this will involve coming up with a clear way of using the funds.
Take only what you need. It is possible that you will qualify for a higher loan amount than you actually need. However, taking out more than you need can land you in financial trouble. Renegotiate for a lower amount if the lender offers more than the amount you want.
Stick to the plan. A plan will only work if you stick to it throughout the entire process. Once you have received the money, it is important to stay focused on your goals. Use the money only for the intended purpose.
Remember it isn’t money. It is important to remember that you do not have money. On the contrary, you owe money. Just because there is a certain amount of cash in your bank account does not mean it is yours.

What Credit Score You Need for a Personal Loan?

Most personal loan lenders will take the borrower’s credit score into consideration before issuing a loan. This is why borrowers should think of boosting their score way before they apply for or need personal loans. This helps to avoid the frustrations associated with getting your loan application rejected. The borrower’s credit score will also have a direct impact on how much they pay in terms of interest and other loan fees.

A credit score ranging from 700 to 750 is usually considered good. A good credit score will not only ensure that borrowers get numerous attractive offers but also make it easier for them to access the funding they need for their needs. There is also a fair credit score which ranges from 650 to 700. While it may not be easy to get a personal loan with fair credit, some lenders will consider your application when they take into account other factors.

Lastly, a bad credit score is between 560 and 650. Getting a personal loan with bad credit can be hard. The good news is that borrowers can take certain steps to get the funding they need. However, such borrowers may end up paying high-interest rates, have shorter repayment periods, or have lower borrowing limits.

Considering the important role that the credit score plays in the loans industry, it is important to maintain a good credit score. Similarly, those with a poor credit score should strive to improve their score. This means adopting healthy financial habits, paying back debts on time, and sticking to smart ways to use a personal loan.

When You Should NOT Use a Personal Loan

Before and while taking out a personal installment loan, borrowers should ensure that the loan will not lead them to financial troubles. Although personal loans can be beneficial in many ways, there are several instances when you should not use the loans. Here are examples of when not to use personal loans.

When You Are Struggling to Keep Up With Debts

If you are struggling with student loans, credit cards, and other bills, it may not be a good idea to take out a personal loan. Once you cannot keep up with current debts, adding to the amount you pay back monthly will only complicate things further. It would be important to improve your financial situation before adding on a new loan.

You Want to Refinance a Small Amount of Debt

While personal loans can help borrowers to consolidate debts for easy and convenient repayment, the amount you want to refinance should be considered carefully. Seeking to refinance a small amount will mean additional expenses that one would have avoided if they paid off the loan over the remaining period.

If You Can Easily Save the Money

Taking out a loan will mean paying it back with interest and incurring costs in terms of fees. In case you do not need the money urgently and can save up for your project, it would be wise to do so.

Covering Expected Major Expenses

Rather than taking out a personal loan to cover upcoming expenses, you may want to consider other ways of raising the money. This may include looking for a part-time job or cutting down on expenses to boost savings.

Unstable Employment and Income

In case your employment or income is unstable, you may have problems paying back your loan. Avoiding such a loan altogether will help you avoid the frustrations that come with late or missed payments.

Final Thoughts

Knowledge of smart ways to use a personal loan and when to avoid the products can go a long way in helping you meet your needs. At the same time, it can help you get out of financial difficulties and move you closer to your goals. However, the journey requires good financial habits and discipline.

Besides figuring out smart ways to use a personal loan, borrowers should carefully consider the kind of lenders they work with. Since different lenders have varying loan terms, doing some research will help in identifying the most appropriate one for your needs. We simplify the process of finding a lender by helping consumers to compare different lenders and identify reliable loan companies. Work with us to make it easier to get a personal loan online and learn more smart ways to use a personal loan.

Cole Lehman

Cole is a personal finance research analyst and writer with extensive experience in building and maintaining a corporate brand utilizing both qualitative and quantitative methods. Cole has written on a diverse range of topics including financial planning, cryptocurrency, commercial real estate, and tax strategy. A graduate from Drexel University, Cole seeks to demystify financial borrowing and help individuals achieve financial freedom.

Personal Loans for Students: Your Study Guide

Posted on April 23, 2019 | by Blaine Koehn | Leave a Comment

Lower Rates

Personal loans for students may come with lower rates that are more manageable for individuals to allow income. There are high chances that your first job will not pay as well as you need it to. Having the loans deducted from the amount renders you helpless for a long time. The rates help you get smaller manageable decisions. It allows you to invest your money in other projects that will help you get more income or grow as a person. These rates are also spread over a long time making it convenient for you.

Loans With Bad Credit

There are also high chances that you have already gotten into bad borrowing habits. Mainly due to the condition that the student loan has put you in when it comes to your finances. Personal loans for students help you get back on your feet within a short time. Indeed, they are okay lending to people with adverse credit reports. The level of the credit report will determine the conditions the lender will offer you. Some will give slightly higher interest rates while others will shorten the amount of time you need to repay the loan. A loan on bad credit is an excellent opportunity for you to get out of debt if you honor your smaller payments.

Getting your scoreboard back in the green enables you to borrow even more in the future. At least, if you still need it to build your life. It means working on a tight but allowable budget to help you manage the crisis.

Quick Processing

Personal loans for students are processed very fast enabling you to repay your student loan fast. The short processing period is convenient to ensure that you do not accumulate more interest from your previous lender. The fact that it is paperless makes it all the more convenient for you. You can quickly get a loan while at home in hours.

Protected Borrowing

One of the most significant risks, when you want to get a personal loan online is unscrupulous lenders that take advantage of the situation. They will offer low rates with a lot of underlying traps and fines that are likely to get you in trouble. It is for this reason that OLA came into play. Online Lenders Association is a mediator between the borrower and the lender ensuring that bot is safer when it comes to lending and borrowing. The process is then made transparent for the borrower and much safer for the lender. The lenders listed with OLA adhere to a strict code of conduct that will put your mind at ease before signing up for personal loans for students.

No Collateral Needed

It is impossible for a student that has just finished school to borrow using collateral unless he or she has a car or something else to borrow against. Loans that need a guarantee will limit your borrowing to the assets you have. The asset will also be evaluated and the value cut down in a way that the amount received will not be sufficient to help you in any way. Online lenders for personal loans for students give loans without requiring any form of collateral from the student. The credit score of the student will determine how much they get as well as the conditions they need to pay back the money with by the lenders. Options in the market include using co-signer which is a difficult process to achieve. Very few people if any are willing to be a guarantee for a person that does not have any form of creditworthiness.

Loan Consolidation with a Personal Loan

Personal Loans for students will easily allow you to consolidate all your accumulated debts into one pot for more flexible repayments with lower interest rates. It is a great way to start putting your life back on track. You need to get into healthy spending and income-earning trends for this to work for you. Climbing up the credit score ladder will enable you to get more student loan options as well as creditworthiness.

In Conclusion

Personal loans for students are not a cure for bad spending and borrowing habits. You need to remember that you are still in debt even after getting a personal loan. In as much as the rates are lower the interest is still high enough to cripple you if you do not get into a reasonable budget and spending habits. Budgeting and working towards reducing your debt is the only way to get out of a chronic debt situation. It is unfortunate that many students remain in debt from this state for the rest of their lives. Personal Loans for Students should be taken as an opportunity to get out of debt and invest in a more financially empowered lifestyle.

Blaine Koehn

Blaine Koehn is a former small business manager, long-time educator, and seasoned consultant. He’s worked in both the public and private sectors while riding the ups-and-downs of self-employment and independent contracting for nearly two decades. His self-published resources have been utilized by thousands of educators as he’s shared his experiences and ideas in workshops across the Midwest. Blaine writes about money management and decision-making for those new to the world of finance or anyone simply sorting through their fiscal options in complicated times.

7 Benefits of A Personal Loan to Finance Anything

Posted on February 23, 2019 | by Brandy Woodfolk | 1 Comment

A personal loan is a money loaned from a bank or other financial lender that is paid back with fixed payments that include interest over time. These are often referred to as personal installment loans, which is a type of personal loan. They can be either secured or unsecured. Secured personal loans require collateral. Unsecured personal loans, which are the most common type, do not require any form of collateral. There are many benefits of a personal loan. I’m excited to share these with you below.

What Are the Benefits of a Personal Loan?

A personal loan is usually a much cheaper option than using a credit card or getting a payday loan because the interest rates are often much lower. Additionally, payday loans must be paid back all at once so a personal loan is a more convenient option. Most personal loans are small amounts though they can range all the way up to $100,000.

You may have considered applying for a personal installment loan but you just are not sure if it is a good move. Depending on your financial situation, a personal loan may be a great way to help you make your payments. Continue reading to learn some benefits of a personal loan.

1. Lower Interest Rate Than Most Credit Cards

One of the many benefits of a personal loan is that it will most likely cost you much less than using a credit card. Personal loans can help you save over other types of finance options. Personal installment loans generally have a much lower interest rate than credit cards whose interest can be 20% or more. That credit card interest is also due monthly, so if you have not paid your full bill by the end of your billing cycle, you will be paying interest on that amount the next month. As many people tend to pay only the minimum payment on their credit cards each month, they hardly touch the actual amount due. When their bill comes in next month, more interest is added meaning that they owe more than before.

Let's take an example - Benefits of a Personal Loan

Let’s say that instead of using my credit card, I take out a personal loan for $1000, the interest rate is the same fixed 10% that my credit card charges and I have the loan for 12 months. That brings my loan total to $1100. Since this is a personal installment loan, the interest is already fixed into the total. My payments would come to approximately $92 per month. No extra interest is added. I simply make my payments and that’s it. A personal loan can save a great amount of interest and help you stay out of further debt as long as you make your payments.

2. One Way to Consolidate Debt

Another benefit of a personal loan is that you can actually use a personal loan to consolidate other debt. If I ran up my credit card balance too high because I either did not know that the minimum payment was not enough or even just did not have more than that to pay back, I am going to find myself in a good bit of trouble that may affect me for years to come. If I have more than one out of hand debt that I simply cannot catch up, the stress is probably eating away at me. I can either continue on the same path, work extra jobs to try to pay it all back, or consider a personal loan.

If I get approved for enough to cover the debt I owe, I can pay the debts off and pay a much lower interest loan payment. In simple math, paying off one $1,500 personal loan at 10% interest is a lot better than paying on two debts that charge 25% interest each.

3. Free Up Your Cash Flow

If I take out the loan mentioned above to pay off those debts, I am likely to have a little more cash each month than I did when I was attempting to make higher payments. That freed up cash can then go to other necessities, savings or paying off yet another debt. When you owe less out, you can accomplish more financially.

4. Finance Anything: Medical Expenses, Repair Emergencies, Travel and more

Unlike a mortgage loan that is applied to mortgage or a vehicle loan which is applied to a vehicle, a personal loan can be used for pretty much anything from medical bill expenses, repairs, vacation, clothing, shopping for back to school items and much more. Another benefit of personal loans is that they offer more freedom than some other types of loans and even some credit cards do.

5. A Personal Loan Can Improve Your Credit Score

Personal loans can help borrowers build their credit. Lenders report to the credit bureaus. Consistent and on time payments reflect positively on your credit report open up new opportunities for you in the future, like lower interest rates.

6. Fixed Payments Are Easy to Manage in a Budget

One of the major benefits of a personal loan is that the fixed payments can be budgeted. When you take out the loan, you know how much your monthly payments will be. There is no guessing to it. Therefore, you can go straight home and rework your monthly budget knowing how much you will have to pay and for how long.

7. Fixed Interest Rates Create Predictability

If you have or have ever had a credit card, you might have seen an increase in interest rates. It could be that you signed up for it during a promotion, the lower payment is only guaranteed for the first few months, or something similar. This is extremely frustrating when you have figured out a repayment plan and suddenly you get surprised and your plan goes out the window.

Another huge benefit of personal loans is that this will not happen. When you take out a loan, the interest rate is the same until you pay the loan off. Knowing what your payments are, as mentioned above, allows you to budget it in more easily.

As you can see, there are many benefits of a personal loan.

Types of Personal Loans

There are different types of personal loans. One of the benefits of personal loans is that you can get them for pretty much anything. Personal loans are approved for specific needs and more general ones. The required credit score for each type of loan may vary between lenders, and they may require additional documentation for specialized personal loans. Below is some information on different types of loans.

Secured Loans

A secured loan is simply a loan that is secured with some type of collateral. It may be money in a savings account, a piece of land, a vehicle, or something else of value. Interest rates are lower with secured loans because there is less risk. If you default, they can take your collateral to cover the money you owe.

Unsecured Loans

Unsecured loans do not require collateral. The lender loans money to you with the agreement that you pay it back.

Personal Installment Loans

These are loans with fixed payments. Often, if you pay the loan back, you can borrow that money back with less hassle than the first time.

Debt Consolidation Loans

These are loans that pay off debt and put the total amount under one new payment, usually with a much lower interest rate.

Travel Loans

As the name suggests, short term travel loans are available for the purpose of traveling.

Medical Loans

Medical finance loans are for the sole purpose of repaying medical bills.

Home Improvement

This loan is specifically for repairs and improvements to your home.

Things to Know Before Getting a Personal Loan

As tempting as it may be to jump up and start applying for loans, that can be a mistake. Some lenders charge application fees and other things so it is best to know what to expect first. Read on to understand all the things to know before getting a personal loan:

Do You Really Need This Loan? Will It Help or Hurt You?

Taking out a loan just because you can or for something you do not actually need is usually not the best idea. You should be sure that you are helping yourself in some way, not just digging yourself into a deeper hole.

What Credit Score Do You Need?

Most lenders have their own requirements for credit scores. Some want excellent credit while others are willing to work with lower credit scores. Find a lender that accepts your credit score.

How Much Income and Consistent Work History Does the Lender Want to See?

Generally, lenders are more concerned about your debt-to-income ratio than the amount you make. However, you should still check first. Also, some lenders require five years of job consistency while others just want to see the last two years.

How Much Does That Lender Typically Loan Out?

If you need $2,000 but a particular lender does not go above $1,000, it is not worth your time to apply with them.

What Is the Interest Rate?

Shop around for the best interest rate that is available for your particular financial situation.

Is There an Application Fee or Any Other Type of Fee That Will Be an Out-Of-Pocket Expense?

Some lenders charge a $25 – $50 application fee that must be paid upfront. Find out before you go to apply so there are no surprises.

Are There Any Fees Added Into the Loan, Like an Origination Fee?

An origination fee is a fee that is charged for processing the loan and gets subtracted from the money you borrow. While this expense does not come out-of-pocket, the fee could affect the amount you need to borrow.

How Much Can You Pay Back?

If you cannot make high enough payments to pay back a $2,000 loan, do not get a $2,000 loan. Only borrow what you know you can make payments for. Defaulting on a loan destroys your credit faster than positive marks build it up.

Final Thoughts

Debt is a scary, stressful thing. The idea of adding more may terrify some people. There are times, however, that the benefits of a personal loan outweigh the negatives. At times, the benefits of a personal loan may even set you on the right path when handled responsibly. With research and planning, the benefits of a personal loan just might change your life.

Brandy Woodfolk

Brandy Woodfolk is an educator, home business owner, project manager, and lifelong learner. After a less than stellar financial upbringing, Brandy dedicated her schooling and independent studies to financial literacy. She quickly became the go-to among family, friends, and acquaintances for everything finance. Her inner circle loves to joke that she is an expert at “budgeting to the penny”. Brandy dedicates a large portion of her time to teaching parents how to succeed financially without sacrificing time with their little ones. She also teaches classes to homeschooled teenagers about finances and other life skills they need to succeed as adults.

Brandy writes about smart money management and wealth building in simple and relatable ways so all who wish to can understand the world of finance.

www.linkedin.com/in/brandy-m-woodfolk/

Should You Use A Personal Loan for a Computer: Power On!

Posted on February 21, 2019 | by Brandy Woodfolk | Leave a Comment

We may try and try to keep our bills paid and money in the bank, but many of us find ourselves living paycheck to paycheck or barely above that. Something unexpected hits, and we lack the money to take care of it. Now we have to make a decision: take out a loan or not? Though debt is never the best option, sometimes taking out a personal loan can be a good idea, but is a personal loan for a computer one of those times? Read on to learn more.

Should You Take Out a Loan for a Laptop?

Most people answer with “Yes, if you can make money using the computer”. The popular opinion is that the only “ok” debt is for a home, a car, or a degree. Let’s face it though- we live in a digital world and a laptop is often necessary. The question is whether it is necessary enough to get a personal loan for a computer? Below are some pros and cons of getting a personal installment loan to purchase a laptop.

Pros- Personal Loan for a Computer

You can get the laptop immediately instead of having to wait until you save enough. If you need the laptop ASAP for work, school, or some other project, accessing the laptop now is a priority.
It can help to build your credit- if you can to pay it back. Small personal loans can improve your credit report if you make timely payments.
A personal loan can be less expensive than retailer financing. The interest charged by retailers is much higher than that of personal loan lenders.

Cons- Personal Loan for a Computer

Unless you can pay the loan off immediately, you are looking at paying interest. Paying more than the item’s amount is never fun. Sometimes the interest can add up to the amount of the item.
Most personal loans do not go under $1,000. That means you will be borrowing more than you actually need. If you need that money for something else or can put the extra away to make your first loan payment, this may not necessarily be a bad thing. As a general rule, however, borrowing more than you need can lead to trouble. Remember: the more you borrow the more you have to repay.

Can I Take Out a Personal Loan for a Laptop?

You can get a personal loan with these simple steps for just about any reason. Though they ask what the loan is for, the lender cares much more about your ability to pay the loan back than they do the reason you are requesting it.

If you choose to take out a personal loan for a computer, do not accept the first loan offer you get. Do your research to find the best loan terms and interest rates available to you. Just as you shop around for a car you should also loan shop for a laptop. You can do this from the comfort of your couch because these days you can easily do your computer loan shopping online from your phone. Websites like Loanry can help you find a personal installment loan lender.

Modern home office with laptop on the desk.

Using a Credit Card to Purchase a Computer

You may be wondering about buying a laptop with one of those handy things we call credit cards. A credit card can, of course, pay for a laptop, just as it can pay for anything else. With a credit card, as long as the item is within your credit limit, you can bring the item home as soon as you purchase and put it to work.

However, there are cons to using credit cards, as well. If you do not pay off the full amount by the end of your billing period, you are charged interest. Sadly, if the bill is not paid fast enough, you could be paying at least half the amount of the item in interest alone, many times more. You have to decide how much you are really willing to pay for that laptop. If using a credit card is the route you choose to go, be sure to shop around for the best credit card for you.

How Does Computer Retailer Financing Work?

Retailer financing means that the retailer is loaning you the money to purchase an item, which is a laptop, in this case. At times, you are required to pay a down payment but not always. The retailer will check your credit score to determine how likely you are to repay the loan. If your credit score is high enough, they will discuss loan options and terms with you. Approval rates are higher for this type of financing than for a traditional loan. If approved, you are billed and pay for the laptop over time, much like a credit card.

Sounds simple enough, right? Not so fast. You have to find the catch.

There is Generally Always a Catch

Often, retailers advertise “90 Days Same as Cash”, “0% Interest for 24 Months” or something similar. It sounds extremely tempting but is often misleading. I once worked for a retailer that ran deals like these and I saw how often people were surprised after the special financing period was over. As far as “90 Days Same as Cash“ goes, you have 90 days to pay the item in full without any interest being added. If you do not pay the item off during that 90-day period, the interest is compounded and seemingly out of nowhere skyrockets. That interest you thought you were avoiding for 90 days has just been added to your bill.

What About the “0% Interest for 24 Months”?

What about the “0% Interest for 24 months“? It is a great deal for those that can pay off the amount during those two years, but the same compounded interest applies here. You can take full advantage of this deal if you make more than your minimum billed payment and get the item paid off before the interest kicks in.

The bottom line: you need to understand what your payments will look like after the special financing period is over. Read the fine print and ask questions until you are clear on the matter. If you decide that retailer financing is the way you want to go, learn everything you can about what you are signing up for so there are no surprises later.

Computer Loans for Students

Most students find themselves in need of their own computer. Between research to complete, graded online discussions, and papers to write, library visits every time you need to use a computer is tough. Some schools understand this. They solve the problem by providing a laptop to the student. They simply add the cost in with your tuition. Sometimes college bookstores have them for sale and students can use their financial assistance to purchase them.

There are also the options to go through:

A rent-to-own store,
Retail financing, or
Computer personal installment loans

Rent-to-own stores are convenient as there is no credit check, you can walk out the same day with your item, and if you decide you do not like that particular brand or there is a problem, you can simply exchange it. However, the buyer usually pays out almost double the cost of the item making this a costly choice. For a personal loan, a college student may not have established credit yet. In this case, you may ask your parents to cosign for the loan.

Computer Loans for Bad Credit

Trying to get a personal installment loan with bad credit can be an overwhelming and discouraging process- I know firsthand. It can be possible but very difficult. Having a bad credit score tells lenders that investing in you is a high risk. Not everyone will approve you and those that do will likely charge really high-interest rates and may even require collateral. Before trying to get a personal installment loan, understand that you will definitely have to research and loan shop to find someone to approve you as well as give you the best interest rates.

When Is Taking Out a Personal Loan a Good Idea?

In order to answer this question, you need to answer a few more like:

What is the Loan for?

Do you need to get a computer to run your business to pay your bills and eventually this leads increasing your net worth or do you just want to go on a shopping spree? The purpose of this kind of computer shopping loan will greatly weigh in on whether the loan is a good idea. Obviously, fixing your car to get back and forth to work is important and would likely to be a good reason to get a loan, especially if you have no alternative modes of transportation. However, taking out a personal loan to simply go on vacation or to just have a good time, step away now! It is not worth the debt.

Likewise, if you need a computer for work or school, a personal loan for a computer might be worth it. If you just want the computer to scroll through social media or stream videos, it would be better to save up money and purchase it outright.

Is it Necessary?

Are computer personal installment loans the only way to take care of this situation? Could you have a yard sale instead or borrow from a friend with no interest? Do you have enough time to budget and save for a few weeks? Could you pick up an extra job and get paid in time?

If there is absolutely no other way to take care of your problem in the necessary time frame, you should probably consider a loan. Just be sure you have exhausted all other known possibilities first as debt is debt, regardless of why it is there. If you can borrow a friend’s laptop when you need it or even use the library computers, it may not be necessary to take out a personal loan for a computer. If you do not have consistent access, a loan may be worth the consideration.

Can You Afford to Pay it Back?

A major factor is whether you will be able to pay the loan back. Not paying a loan can lead to repossession of items, the lender taking whatever you put up for collateral, and messing up your credit. It takes so much longer to fix credit than it does to destroy it. Look through your finances carefully to decide if you can pay it back. If not, getting a loan is not a good idea.

Are You Willing to Make Payments Consistently Until it is Paid off?

Once you take out a loan, you are responsible for it. You will be required to make scheduled payments until it is paid off. Are you willing to stick with it? Can you diligently work on paying off the loan to prevent bad marks on your credit?

How will Taking Out a Loan Affect Your Quality of Life?

Will making the payments on this loan interfere with your ability to buy groceries? Will you still be able to comfortably buy your baby diapers? Are you going to have to work two full-time jobs? Will you need to take out an additional loan to simply cover regular bills?

Having to make some sacrifices is one thing. If you have to skip necessities or run yourself into the ground to pay back a loan, you should probably stay away from them. If you can pay back the loan with nothing more than sacrificing your daily Starbucks run, a loan is worth the consideration.

Final Thoughts

Basically, getting a loan is an extremely personal decision. Only you know your full situation and whether it calls for solutions, like a personal loan. As with any major decision, for your research and consider all options. Do not make the decision without heavy consideration. Look over your current finances to determine if a personal loan will honestly help or just dig you into a deeper hole. It may be prudent for you to talk it over with a friend or family member who can help spot potential problems. If you still feel that taking out a personal loan for a computer seems like the right choice for you, shop around here at Loanry.com. We can help you find a personal installment loan to buy a computer.

Brandy Woodfolk

Brandy writes about smart money management and wealth building in simple and relatable ways so all who wish to can understand the world of finance.

www.linkedin.com/in/brandy-m-woodfolk/

How Much Income Do You Need to Get a Personal Loan

Posted on February 16, 2019 | by Blaine Koehn | Leave a Comment

Applying for a personal loan is easy, but to get an approval is the hard part. There are several factors that determine your ability to get a personal loan; income being one of them. Therefore, the question “How Much Income do you Need to get a Personal Loan” is a relatively important one. Before we answer it, let’s talk about personal uses and the basics.

Some seek a personal loan to consolidate debt or improve their own credit score. It’s all about making available credit more accessible for other parts in your life. When it comes to gaining financial empowerment, one way to achieve this goal is securing a personal loan to improve your own credit situation.

Unlike other forms of financing, unsecured personal loans don’t require collateral to be put up before gaining approval from a lender. It’s important to remember that you will have to pay back the loan at some point. You can make the process go much easier if you plan out a timeframe to pay off the personal loan as this approach avoids any chance of being overwhelmed by the entire process.

How Much Do You Need to Make to Get a Loan

A personal loan is requesting a set amount of money that can range from $1,000-to-$100,000. The lender’s requirements are all based on personal and financial information. One of the main requirements answered by the information submitted is how much income do you need to get a personal loan.

Usually, the minimum salary requirement for how much income do you need to get a personal loan is in the area of $15,000-$20,000 a year for the lowest loan amounts. If you’re asking for a $100,000 loan then your income needs be about 10x the minimum salary. You may get up to $100,00o with high income of at least $150,000 a year.

It is important to note that when it comes to getting a personal loan there is no set income requirement. The above figures are simply average markers. Each lender will have difference requirements. Income also just one factor in the lenders underwriting criteria.

What Is The Minimum Salary to Get a Personal Loan

When you’re applying for a personal loan, the lender must be confident that you have the capability to repay the loan. There is no set dollar amount that can secure a personal loan. Instead, you must at least qualify for the minimum income requirements that do vary with the terms of the personal loan. Again, it will come down to how much income do you need to get a personal loan.

The one plus that is in your favor will be having a good, steady income. But, if you have high debt, you might not be able to meet the monthly payment requirements. You will need to show how much disposable income is available each month as this number will show your money management skills.

Disposable income is the portion of your monthly salary that remains after you pay bills, rent and other living expenses. Many lenders call this dollar figure a borrower’s monthly cash-free flow. Often, they will adjust the final total after taking into consideration the amount of taxes paid and other financial obligations

Do You Need Proof of Income For a Personal Loan

You will need to show proof of income when applying for a personal loan. The standard form of documentation to prove income is showing pay stubs for a period of three months. Lenders use this proof to verify the borrower’s ability to repay back a personal loan. Before personal loan shopping based on your income, it’s smart to research the type of proof of income most lenders are looking for on an application form before approving a personal loan.

The reason to research how to get personal loan online could be if a proof of income verification is missing from the application packet, then your approval for a personal loan could be greatly jeopardized. Plus, research this topic will help answer how much income do you need to get a personal loan.

Why Does a Lender Need This Information?

Showing pay stubs will confirm that you’re a “W2 employee”. Other workers like self-employed or independent contractors will have to show other forms of employment documentation that will confirm their income amount. Lenders will need verification of their current financial state before determining how much income do you need to get a personal loan.

If your occupation on a tax form is self-employed or independent contractor, then you will also need to show proof of income. Usually, a lender will require you to show some form of regular depositing into your bank account as this will confirm that you do have a consistent source of income coming into your home each month. Other financial documents may be required during the review of your personal loan application. This information will help to determine how much income do you need to get a personal loan.

How Much Personal Loan Can I Get on My Salary

When, it comes to obtaining a personal loan, the guidelines on what a person can afford are very clear. It’s important to take a look at your own financial situation as there are questions that must be answered before moving forward. The biggest question is how much income do you need to get a personal loan.

One way to get a better understanding on how much personal loan can a person get on their salary is beginning the application process with a lender. After all, the lender’s main interest is keeping their business doors open. This is only accomplished by limiting the amount of money offered to potential borrowers. They achieve this by offering the right affordable dollar amount to a borrower who then can pay it back over time. Lenders determine how much income do you need to get a personal loan by the information submitted on the loan application. This course of action prevents them from losing money on the loan.

Income Types to Calculate

Most personal loans come with terms of two-to-five years. Most lenders will require you to fill out an application and authorize a credit check. The types of personal loans are either a single or joint. The difference is requiring one signature or multiple signatures on the final documents. The typical underwriting requirements include a minimal credit score between 640-750. It also requires your debt-to-income ratio being no higher than 45 percent.

The debt-to-income ratio will show how much debt you have already accumulated in your lifetime. The percentage number will determine whether you gain approval for the personal loan. In some cases, it will be the deciding factor over your income and credit rating score. Some lenders won’t approve a borrower over the above number (45%) on debt-to-income ratio.

Even, if you have a low percentage number, but have a large amount of credit card debt, you may have trouble getting approval for a person loan despite holding a high-salary job. The main reason is you’re too big a risk defaulting on the loan.

Here are important financial definitions in relation to determining how much income do you need to get a personal loan:

Income Definitions

Term is the length to pay back the loan. Often, when a lender is calculating and determining how much income do you need to get a personal loan, they will ask you how many years you need to repay the loan.
Interest Rate is the percentage of your loan balance that the lender will charge a rate over time.
Gross Income is all money you earn and account for on income taxes for the year. This figure excludes untaxed income like government benefit payments or money you collect from renting property.
Untaxed Income is funds you recieve monthly, but aren't subjected to paying taxes each year. This type of income could include work pension, social security, disability and child support. All fall under the untaxed income umbrella
Rental Income is the amount of money you earn from renting an apartment, home or any other living quarters. Once again, it's the number accumulated before taxes.

Individuals that fall short of the above criteria can still obtain a personal loan. At least, as long as they can afford to make monthly payments to repay the lender back. You may be eligible to borrow an amount of money between $1,000-$5,000. How much income do you need to get a personal loan you will know when you look at the information on the application.

Borrowers will list all income earned as some falls under the heading entitled “reasonable expectation of access”. This terminology has a broad definition. Unfortunately, there is no guideline to calculate irregular income unless a person reports this amount on their tax return. It’s smart to use common sense when reporting income on a personal loan application. This information will help to answer how much income do you need to get a personal loan.

Other Factors Besides Income

Lenders look at factors like your credit score, your debt-to-income ratio (DTI), what you intend to use your funds for, number of other times you’ve looked for credit and sometimes even look into your employer.

The loan can serve in a number of ways. Some borrowers will use the money from a personal loan to get through an emergency situation. Others will pay off outstanding credit balances in order to get their finances in order to make a “big ticket item” purchase in the future.

The basics of a personal loan for a borrower is having a fixed monthly payment plan, a repayment timeline and securing an interest rate that is based on your current employment status and how much money you make in a given year. Besides offering your own credit score, you will need to figure out the exact amount of money needed to borrow, and the length of time you will need to pay back the loan. This information helps the lender determine if you (the borrower) have the capacity to repay a personal loan back.

The lender will want some assurances that you will be able to make the scheduled payment each month and still have the ability to weather other untimely expenses that will add debt to your finances.

What Credit Score Do I Need For a Personal Loan

Credit scores play a major role in what type of personal loan a person can obtain. Most lenders will offer personal loans up to $50,000. Other lenders will offer loans up to $100,000 to those borrowers who have an excellent credit score and hold a high income job. The more positive you can be in your credit history, the more money you will likely get in a personal loan.

714 is the average FICO score in the U.S. in 2021.

An average credit score is between 620-679 and a poor credit score fall under 580. If your credit score is below this range, you can still secure a personal loan. You may have to use your personal (car, home or land) property as collateral to gain a secured loan from a lender. These types of personal loans come with a higher interest rate. It remains all throughout until you pay back the lender in full. Plus, the lender will repossess the property if the borrower defaults on the personal loan.

Using Collateral to get a Personal Loan

Most cases, individuals aren’t required to put down something of value as collateral in an unsecured loan. The lender may place a cap dollar amount on how much a person can borrow based strictly on their yearly salary. If you don’t own property that has some value, then you might want to reconsider your situation and work on rebuilding your credit score.

If you have provided all the information necessary to qualify for a personal loan, then once you’re approved, the money will be deposited into your bank account as fast as one business day. However, this is all based on a lender’s personal loan process.

Blaine Koehn

How to Get a Personal Loan with a 620 Credit Score?

Posted on February 1, 2019 | by Julia Peoples | Leave a Comment

In many cases, the right bank approves a personal for the low credit scores. Your credit score dictates the interest rate of that loan. Personal loans are available to you when you have an emergency expense pop up but you don’t have extra funds to pay for the repair. The most important key to receiving a personal loan and the interest rate you receive is your credit score.

That three digit number holds your future in its grasp. It indicates to lenders how much they can trust you as a borrower. It’s important to understand how your credit score is measured. Once you understand this, you can begin to take control of your lending eligibility. Any person with a bank account, credit cards, or any type of loan has a credit score. Your credit score is an indication of how well you pay back your debts.

How to Get a Personal Loan With a 620 Credit Score

Personal loans are unsecured, which means there is nothing for collateral, so the bank is taking a chance by giving you a loan. This is the reason that interest rates can be all over the place depending on those three digits that control everything.

A difference of 50 to 70 points may not seem like a lot to you. In the lending world, it’s a huge difference and could cause a much higher percentage interest on a loan. The average rate for a credit score between 720 and 850 may be 10 percent to 13 percent. The average rate for a poor credit score between 300 and 639 could be as high as 28.5 percent to 32 percent.

1. Work on Improving Your Credit Score

You can’t improve your credit overnight. It is slow and steady work to improved credit. There are some things you can do to work towards better credit. Pay your bills on time. Set up reminders to pay your bills on time. You could even set up automatic payment, so you don’t have to remember. If you have missed payments, get the account current. You should also reduce your debt. This is hard, you can do it. Stop using your credit cards. If you continue to use them, keep the balance low. Most importantly, check your credit report for any errors. If there are errors, fix them.

2. Online Lenders Willing to Lend to Fair Credit

It is possible to get personal loan online with fair credit. There are many lenders willing to lend to people in the fair credit range. Loanry provides a list of available loan options for fair credit. These options include a personal loan to payday loans to credit cards. You can get an online personal loan with a 620 credit score. You should be aware not all online lenders are reputable.

Make sure you are using an experienced lender with a good reputation. Adding an online loan to your credit report along with auto loans and mortgage payments can help your credit score. Online loans are installment loans, so you know exactly how much you owe and when. Unlike credit cards, the amount of interest you pay is set when you sign the loan terms. It does not get added on every month.

3. Consider a Secure Loan like a Title Loan (With Caution)

Title loans have a short repayment time, usually less than a month. They are short term loan lenders. It is a cash loans bad credit situation. You are using your vehicle for collateral. Typically any vehicle works as long as the value of the vehicle is more than the loan. They have high interest rates of 25 percent per month. These loans must be paid in full.

Cashry outlines the pros and cons of a title loan. These lenders do not check your credit. You get cash fast regardless of your credit score. It comes with a great cost. If you consider this type of loan, be sure you can pay it back without hurting your finances.

Is a Credit Score of 620 Good or Bad?

There are ranges for credit scores. These ranges are exceptional, very good, good, fair, and very poor. A credit score of 620 is considered fair. It isn’t the worst range, but it’s far from the best. According to Experian, one of the three credit reporting agencies, 18 percent of all consumers have fair credit. Experian’s statistics state that 28 percent of the people in this range are likely to become delinquent.

Those statistics scare lenders and many of them choose not to lend to the fair range. Some lenders look for people in this range and offer them high interest rate loans. If you are having a hard time getting a personal loan with a 620 credit score, there are other various personal loan options you may consider.

You could consider short term loan lenders online. These lenders give small amounts of money with repayment in a short amount of time. There are also cash loans bad credit lenders available. These lenders tend to lend a larger amount of money with a longer repayment schedule. If you choose these lenders, make sure you understand the terms of your loan. You should know how much interest you are paying. You should know how often you have to make a payment, weekly, bi weekly, or monthly.

Credit Score of 620: Should I Get a Personal Loan?

Getting a personal loan with a 620 credit score can be a good way to consolidate debt. Paying off high interest debt at one time and consolidating it into one payment sounds great. But, does it make sense for you? You should really consider this option before you jump into it. Loanry provides helpful money tools to calculate payments you may consider when thinking about a personal loan.

You should consider if a personal loan will improve your situation. Or will it put you in a worse financial position? You should be sure that you can pay this debt for the life of the loan and meet all financial needs. A personal loan with a 620 credit score may have a high interest rate. You should consider how long it will take to pay off the debt without the loan. If a personal loan helps you stop interest from mounting and pay the debt faster, it may be right for you. You may need to change some of your habits. You might need to take a look at how much money you’re spending and put some controls in place.

Personal Loans For Good And Fair Credit

People are realizing that high credit card debt is almost impossible to pay off. You just can’t get out from under the interest charged that continue to add up. According to Loanry, personal loans are a popular way for people to get out from under that debt. For many, a personal loan with a 620 credit score is a great way to pay off credit card debts with high payments. Those with good credit have a great chance of getting a loan with the best rate.

Anyone with a credit score over 740 should get a loan interest loan. When your credit dips below 739, it becomes more difficult to get the best rate. A credit rating of 670 to 739 is good but lenders start looking at other factors. If your credit score is under 669 you are considered subprime. This is where the interest rates start to get high.

Conclusion

An excellent credit score is the key to financial freedom. Once your credit score starts to decrease, it is hard to get it to go back up. It can with hard and consistent work. Consolidating and paying off debts timely is one way to make that happen.

You can get a personal loan with a 620 credit score. A personal loan is sometimes the best answer. You can pay off all that high interest debt with one payment a month. If you find yourself in the situation of high debt and a credit score creeping downward, consider a personal loan.

Julia Peoples

Julia Peoples is a long-time business manager focused on providing decision making assistance to the public. She works with people at key points of their lives who are making important retirement and financial decisions. She has had many articles published that educate the public on sound financial decision making.

Julia writes for those who are working towards financial freedom or a better understanding of how finances work. She has shared her financial insights with individuals on a one on one basis for years.

Can You Get a Personal Loan With a Credit Score of 580?

Posted on January 31, 2019 | by Blaine Koehn | Leave a Comment

You might be able to get a personal loan with a credit score of 580. It depends on a variety of factors, including things like where you apply, what your income is and the purpose of the loan. There are times in life when a personal loan makes sound financial sense. You might need to pay medical bills, pay tuitions costs up front or wish to make a financial investment. Personal loans can also be used to pay off credit card debt, finance home remodeling or construction or even to take a vacation. Before you apply for a personal loan, you probably want to know if you’re eligible for a personal loan with a credit score of 580. Here is some information that will help you decide if you should try for the loan.

Credit Score of 580: Can I Still Get a Personal Loan?

If you find out that your credit score is 580, you may wonder if you can still quick get personal loan online. In fact, there is a good chance that you may qualify for a personal loan up to 10k.

Credit companies are often willing to work with individuals who are trying to improve their financial circumstances. If you’re thinking of getting a personal loan, it’s likely for a good reason, such as paying off your credit cards and consolidating your debt.

Consolidating debt makes good financial sense. It often leaves you with a lower monthly payment, which can be more manageable for you and your family. It’s easier to make one monthly payment than several. It’s hard to keep track of multiple payment due dates each month. With a credit score of 580, there’s a good chance that when you submit your application, you’ll be approved. Remember, it depends on where you apply.

Some lenders can be very strict about minimum credit scores. But as long as you work with a quality lender who is willing to give you a chance with a credit score of 580, you have as good a chance as anyone. When you get your loan, just be sure to use it wisely. If you’re frivolous with the money, you may find it disappears quickly.

Try to only spend it on what you had in mind when you applied for the loan. And most important of all, be sure you make your repayments for the personal loan on time every month. Many people find that enrolling in an automatic payment plan each month is very convenient.

Is a Credit Score of 580 Good or Bad?

Almost everyone has a credit score. It’s based on your income history, your debt-to-income ratio, how well you pay your bills on time and other factors. Because everyone has a credit score, the credit companies are able to formulate calculations that rate how any particular score is compared to the national average.

Credit scores range from zero to 850. If you’re applying for a personal loan with a credit score of 580, that score is considered “fair.” Don’t be disheartened, though. A score between 300 and 579 is considered “very poor.” At least you aren’t in that category! Just so you are well-informed, a credit score between 670 and 739 is considered “good credit.” A credit score between 740 and 799 is considered “very good.” A credit score between 800 and 850 is considered “excellent.” Remember that credit scores change monthly. You have a chance to increase your credit score over time by paying your bills on time and being responsible with your debt.

There are a variety of ways to raise your credit score. One way is to pay off some debt if you can. This will improve your debt-to-income ratio, which is one of the factors that plays into your credit score. This is a reason why getting a personal loan to pay off debt can be such a smart financial move.

Tips for Getting a Personal Loan With a 580 Credit Score

To get a personal loan with a 580 credit score, it’s smart to try to take some steps before you apply:

✓ Work on Your Credit Score

Try to pay off old debts, remove errors from your credit reports and try to generate extra income to improve your debt-to-income ratio

✓ Consider a Secured Line of Credit

A secured line of credit is kind of like a loan, but it’s secured by an asset, such as your car. A record of timely payments will help increase your score.

✓ Try a Less Than Prime Lender

A less than prime lender will have less strict criteria for lending money. They often charge higher interest rates, but again, if you repay on time each month, the benefits of a higher credit score may make borrowing from a less than prime lender worth while. Less than prime lenders are even more likely to offer you a personal loan with a credit score of 580.

What Credit Score Do I Need for a Personal Loan?

Before you make the decision to apply for a personal loan, it helps to understand what the lender will be looking at when they make their decision. The first thing you should do is to check your own credit history. This will make you feel more in control and let you know where you stand. You can get one free credit report each year from each of the three major credit bureaus: Experian, Transunion and Equifax.

To do, just log in to each company and answer a few I.D. verification questions. Depending on your individual circumstances, you may be able to get copies of your credit report online. Otherwise, they’ll mail you a copy you can review.

Review your credit reports carefully once you receive them. Look for any errors or omissions. Errors include things like a credit card that you closed out but it shows it’s still open. Omissions include things like payments you made that aren’t showing up on the report. If you find issues, contact the account company directly and ask them to correct your credit report.

If you don’t get satisfactory restitution that way, contact a credit company that helps consumers resolve debt issues.

See Your Credit Score

Next, find out your credit score. This can be found on your credit reports. You may also be able to view your credit score while logged into one of your credit card accounts online. Many credit card companies are now offering this service to their customers. If you think that you might be able to get a personal loan with a credit score of 580, you can then move on to applying for a personal loan.

The lending company will likely have some guidelines listed for loan applicants. This may include a minimum credit score that they will accept in order to grant a personal loan. Realize that each lender will have their own lending criteria. So if you get turned down for a loan, don’t be discouraged. You may be the ideal loan applicant somewhere else!

Personal Loans for Bad Credit and Fair

There are all kinds of people in this world. Some have excellent credit, and others have fair credit or even bad credit. Thankfully, there are loan programs available for almost everyone. If you or someone you know has fair or bad credit, there may still be a chance to get a personal loan from short term loan lenders. A personal loan for a person with bad credit can be a real benefit. It enables the person to possibly pay off some old debts and start to get back on their feet again financially. With cash loans bad credit may become a problem of the past.

In Conclusion

The question is, can you get a personal loan with a credit score of 580? Absolutely! However, you should still go through all of the advice mentioned above so that when you do apply, you’re in the best possible position to be accepted. A personal loan can be transformative. If you’re approved, you may feel like a great weight has been lifted from your shoulders. If you use your borrowed money wisely, the next time you check your credit score, you may find that you’ve made a very positive difference in your financial profile.

Blaine Koehn

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

Posted on December 18, 2018 | by Blaine Koehn | Leave a Comment

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

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

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

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

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

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

What Happens if I Miss a Loan Payment?

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

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

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

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

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

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

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

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

What is the Grace Period on a Personal Loan?

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

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

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

How Much Does One Late Payment Affect Credit Score?

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

In Conclusion

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

Blaine Koehn

How Can I Get a Personal Loan up to $10K?

Posted on November 27, 2018 | by Blaine Koehn | Leave a Comment

Most people are going to need emergency financing of some kind during their lifetime. People borrow money for school, large purchases or to help cover expenses until their next payday. Whether you have an excellent credit score or a poor credit score, there are loan options for borrowing.

Money problems are the leading cause of stress in America and more than 85% of adults report they are worried about money, according to a recent poll by Varo. More than 30% said they felt stressed about their finances constantly.

If you are struggling with a financial burden, immediate needs you can’t afford or encountered an unexpected emergency, then you know how frustrating it can be. You want to borrow money, but you don’t want to end up in a rut.

We want to make the process transparent and as stress-free as possible. Check out your options and consider what loan will help you with the financing you need.

What Kind of Short Term $10k Loan Can I Get?

When you are in need of fast cash, there are lending options available. If you need a personal loan for $2,000 or even $10,000, you’ve come to the right place!

Whether an emergency has you in a bind or you need money to help make ends meet for a short time, a personal loan can help bridge the gap between your need and your pay. There are many loan options for borrowing, but let’s look at the three most common loans for everyday personal needs.

Personal Loan

A short term personal loan is usually unsecured (not backed by collateral). And it comes with a fixed repayment schedule. The loan has a fixed interest rate that is likely going to be lower than a credit card or payday loan rate.

They can be both secured or unsecured, depending on what you can put up for collateral and how much you need to borrow. Personal installment loans can be ideal for paying off debt and consolidating the payments into one place with a fixed amount and fixed interest rate.

However, it can be difficult to get a good personal loan if your credit score is low. If you use Loanry to shop for a personal loan lender, you will be able to find a lender in one place without multiple hits to your credit score. You can shop the Loanry store to find a lender that can provide their rates and payback options for the loan amount you need. Always look for lenders that are clear in their requirements and do not require an upfront fee. The internet is full of scam artists and predatory lenders, so make sure you are using a tool you can trust.

Payday Loan

If you just need a loan that will take you to the next payday, then a payday loan may be perfect for you. The payday loan is a much shorter term loan than a personal loan or a credit card—typically due on the next payday.

A loan based on your paycheck will not usually be a large amount and won’t cover major expenses.

Fees for payday loans typically range from $10-$30 per $100 borrowed, which is a lot so pay it off before the next payday and don’t fall into the trap.

A payday loan is usually given with access to your checking account or a post-dated check that covers the amount you are borrowing. These loans are usually options for people who have steady low-income jobs with poor credit scores. If you don’t pay back the money on time, your lender will apply high fees and penalties.

Credit Card

Credit cards are one of the most expensive ways to borrow money, but they are also the most common. Many people have cards that only require a monthly payment of 1%-3% of what was borrowed, but high interest rates are applied to any amount that isn’t paid for the month. The smartest way to use credit card lending is to only purchase what you will have money for by the end of the month.

Restrict spending on the credit card to less than what you will have in the bank by the end of the month and then pay off your statement every month. The credit card companies plan on their users getting into revolving debt. So the high interest rates kick in after you haven’t paid the balance for the month.

If you are able to pay off your card each month and use it more like a debit card, the credit card is the best way to borrow money. You won’t be able to pay off some forms of debt with a credit card, like your house or car, but most bills can be paid through your card.

You should be aware of how to compare credit cards based your credit type and things you want to get out of your card such as loyalty rewards.

Find a Lender for Your Loan

There are many loan options for borrowing with many varying details. This can make searching for a personal loan, credit card or payday loan overwhelming. With a tool like Loanry, you can find a lender and decide what works best for you. You can check out lenders who offer emergency cash loans or loan shop to help you find the funds you need. Save time by seeing a lender in one place and not having to search lender by lender to find the deals right for you.

Can I Get a Personal Loan if My Credit Score is Below 550?

Poor or bad credit can make it hard to qualify for a loan—especially given personal loan rates depend on your credit score. If you have a credit score of less than 550, you are considered a risk to your lender and may struggle to get a loan. When it comes to lending money, a FICO credit score of 580 or less is poor credit.

Over 60% of accounts that have poor credit scores become delinquent accounts, so many lenders won’t even consider applicants with scores under 600.

When you search for a personal loan with a low credit score on Loanry, you will still may find a lender. However, a lender will likely charge higher fees and fewer options when your credit history is low. Ideally, you want to work on raising your credit score before you apply for a personal loan.

Finding a lender on Loanry doesn’t mean you are under any obligation to take the loan. If you don’t like your rates, work on boosting your credit score to at least a fair rating with a score over 580.

Beware of Predatory Lending

You cannot trust all lenders, especially many online lenders. There are a lot of loan options for borrowing out there for people who have poor credit scores and are looking for personal loans. If you have been searching for a loan to cover personal expenses, you may have noticed some of the scams that are offering advance fee loans.

According to the Federal Trade Commission, you should be wary if a lender demands an upfront fee, pressures you to wire money or doesn’t clearly display what fees apply.

At Loanry, we want people to shop personal loans to find fair offers and get the financing they need at a rate they can afford. Get personal loan online options and complete a short form to find a lender here today!

Blaine Koehn