The Many Faces of Loan Lenders
Posted on December 31, 2008
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There are more places to get a loan than just at a bank. While banks are probably the most popular choice in a lender, you should know that they are not your only option. You may just find going with an alternative lender is better for you.
Small Loans
You can sometimes find lenders who specialize in just giving a certain type of loan. In general, these companies will give loans for small amounts. Some special loan companies may include debt consolidation, auto financing and payday loans.
Other Lenders
You can also find other types of financial institutions who offer loans. One example is a credit union. It is not really a bank and you may be able to get some good member only deals with extra perks.
Shop around and do not let yourself get caught up in using a bank only. Expand your horizons and you may be surprised at the pay off.
Want A Loan? Got Collateral?
Posted on December 30, 2008
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Let’s face it, collateral can help you get a loan. You need it, especially if you have had some credit issues. Collateral is your good faith effort to show the lender you are a serious candidate for a loan and shows the lender a backup plan if you do default.
So, how do you figure out what makes for good collateral? First of all you have to know that collateral needs to be something of value. Value means something worth money. A family heirloom is worth sentimental value but a lender won’t necessarily want it, will they?
Typical collateral includes things like real estate, vehicles, equipment or even an inventory of goods to be sold. Sometimes it’s a co-signer. You need to look at what you have. See what is valuable and worth a lot of money. You want to choose something that is going to be worth as much as possible to get the lender really excited about it.
Haunted by Bad Credit?
Posted on December 29, 2008
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Bad credit may seem like a bad cold you can’t seem to shake when you are applying for a loan. Some lenders are so credit focused that they just don’t want to look past your credit report; they don’t look at the other things you have to offer.
You have to learn how to overcome bad credit and get a lender to take you seriously. Show them you are more then a credit score and make them see what you have to offer.
Running of the Credit Report:
Almost immediately upon inquiring about a loan you will be asked to authorize a credit check. If you know that your credit is not so great you may try to get the lender to consider the other areas of your application first. It never hurts to ask.
Make sure that you make the good points about your application stand out and that you explain that you know about your credit situation. Show the lender you are working on solutions to your past credit problems.
It is only you that can get a lender to look past your credit report and at the responsible borrower sitting before them. If all else fails, you can go to a high risk creditor or take six months to work on your credit and make yourself look more credit worthy before trying again.
Understand The Terms Of A Loan
Posted on December 28, 2008
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Loan terms look like a tangled mess sometimes. It can seem like a hassle to try to read all that fine print. It is a big mistake, to not read a loan contract.
Many people believe that defaulting on a loan means only missing a payment. That is not true. Defaulting on a loan technically means failure to meet the terms of the loan agreement, which does include payment, but also much more.
You have to make sure that you clearly understand all of your obligations under a loan. Do not sign a contract if you are unclear about anything.
Bad terms can really get you down and cause you a lot of trouble. If you do not agree with every term of a loan contract then do not sign it.
The money is not worth the trouble that will come back to haunt you if you default so be sure you know what you are signing up for!
Doing The Math On Loan Interest
Posted on December 27, 2008
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Interest can be confusing. Trying to figure out how much a loan is costing you is something you want to do, but many people say “forget about it” when they start trying to do the math.
The problem with figuring interest is that it is not always calculated the same. You have to begin with reading the terms of your loan agreement. You should be able to find out exactly how the interest is calculated.
To give you a basic idea, here is the formula for figuring interest for a one month period. The loan amount is $1000 and the interest rate is 5%.
Multiply $1000 and 5% (which is equivalent to .005)
The answer is $50, which is the interest you would pay for that month.
You may be thinking that is easy, but you usually have a loan for longer than one month. So you have to figure interest for each month in the life of the loan. There’s also a big factor called compound interest where you’re paying interest rates on the interest accrued.
Sometimes it is easiest to go to your lender and have them figure it for you. This is really important in terms of understanding the full cost of a loan. It will save you some headache in the long run and it’s a service your lender should offer to show you everything detailed in black and white.
Doing The Math On Loan Interest
Posted on December 26, 2008
Filed Under loans | Leave a Comment
Interest can be confusing. Trying to figure out how much a loan is costing you is something you want to do, but many people say “forget about it” when they start trying to do the math.
The problem with figuring interest is that it is not always calculated the same. You have to begin with reading the terms of your loan agreement. You should be able to find out exactly how the interest is calculated.
To give you a basic idea, here is the formula for figuring interest for a one month period. The loan amount is $1000 and the interest rate is 5%.
Multiply $1000 and 5% (which is equivalent to .005)
The answer is $50, which is the interest you would pay for that month.
You may be thinking that is easy, but you usually have a loan for longer than one month. So you have to figure interest for each month in the life of the loan. There’s also a big factor called compound interest where you’re paying interest rates on the interest accrued.
Sometimes it is easiest to go to your lender and have them figure it for you. This is really important in terms of understanding the full cost of a loan. It will save you some headache in the long run and it’s a service your lender should offer to show you everything detailed in black and white.
Doing The Math On Loan Interest
Posted on December 25, 2008
Filed Under loans | Leave a Comment
Interest can be confusing. Trying to figure out how much a loan is costing you is something you want to do, but many people say “forget about it” when they start trying to do the math.
The problem with figuring interest is that it is not always calculated the same. You have to begin with reading the terms of your loan agreement. You should be able to find out exactly how the interest is calculated.
To give you a basic idea, here is the formula for figuring interest for a one month period. The loan amount is $1000 and the interest rate is 5%.
Multiply $1000 and 5% (which is equivalent to .005)
The answer is $50, which is the interest you would pay for that month.
You may be thinking that is easy, but you usually have a loan for longer than one month. So you have to figure interest for each month in the life of the loan. There’s also a big factor called compound interest where you’re paying interest rates on the interest accrued.
Sometimes it is easiest to go to your lender and have them figure it for you. This is really important in terms of understanding the full cost of a loan. It will save you some headache in the long run and it’s a service your lender should offer to show you everything detailed in black and white.
Want A Loan? Got Collateral?
Posted on December 24, 2008
Filed Under loans | Leave a Comment
Let’s face it, collateral can help you get a loan. You need it, especially if you have had some credit issues. Collateral is your good faith effort to show the lender you are a serious candidate for a loan and shows the lender a backup plan if you do default.
So, how do you figure out what makes for good collateral? First of all you have to know that collateral needs to be something of value. Value means something worth money. A family heirloom is worth sentimental value but a lender won’t necessarily want it, will they?
Typical collateral includes things like real estate, vehicles, equipment or even an inventory of goods to be sold. Sometimes it’s a co-signer. You need to look at what you have. See what is valuable and worth a lot of money. You want to choose something that is going to be worth as much as possible to get the lender really excited about it.
Want A Loan? Got Collateral?
Posted on December 23, 2008
Filed Under loans | Leave a Comment
Let’s face it, collateral can help you get a loan. You need it, especially if you have had some credit issues. Collateral is your good faith effort to show the lender you are a serious candidate for a loan and shows the lender a backup plan if you do default.
So, how do you figure out what makes for good collateral? First of all you have to know that collateral needs to be something of value. Value means something worth money. A family heirloom is worth sentimental value but a lender won’t necessarily want it, will they?
Typical collateral includes things like real estate, vehicles, equipment or even an inventory of goods to be sold. Sometimes it’s a co-signer. You need to look at what you have. See what is valuable and worth a lot of money. You want to choose something that is going to be worth as much as possible to get the lender really excited about it.
Online Loan Safety
Posted on December 22, 2008
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Any dealings online can be risky. This is especially true of doing financial business online. You have to be careful that your personal and financial information does not fall into the wrong hands.
You should always work with a trusted and reputable business. Do not go with a company that you have never heard of, or who can’t be found on any financial listing.
You also want to make sure that anytime you submit personal information that it is protected. Most financial websites will show a security system and make sure that you know you are protected. Information transmissions must be encrypted!
The internet is a place where anyone can pretend to be expert so you should be on the look out for scams, and for people trying to get your personal information for their own illegal use, known as phishing
Be smart about all online dealings. Being overly cautious is much better than being a victim of identity theft. Seek a reputable lender and look for someone that lists their affiliations and telephone number.
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