Advance Fee Loan Scams- A personal loan where the lender is requesting monies upfront as security for your loan is going to be a scam 99.9999/100.
Is Applying Online for a Loan Safe?- Being able to apply for a loan over the Internet is an excellent convenience. However, there are thousands of websites offering online loans, with many of them taking advantage of unexpecting victims via various scams.
Loan Aspects to Avoid- When in the market for a personal loan, to avoid taking out a loan with a total cost that will be more than the amount you borrow, it would be a good idea to familiarize yourself with varying loan aspects to try and avoid.
Difference Between Credit Reports & Credit Scores- Nowadays, every time you sit down to watch television, you can rest assured that you are going to see at least one commercial every hour promoting some sort of credit report and score product. A great misunderstanding by many is that these two phrases mean the same thing.
Potential Disadvantages of Personal Loans- When you compare personal loans with secured loans, it is easy to identify some potential disadvantages.
First Time Borrower's Guide- Applying for a personal loan can be a bit tedious even for the most seasoned borrower. Determining how much to borrow and for how long is not an easy decision to make, especially since the interest rate you receive can be heavily dependent on your borrowing amount and term.
Guide For Reducing Debt- When you spend more than you earn, you end up in debt. It's a pretty simple equation. Being in debt can make it difficult to live routinely with spending but more so to get approved for any type of new credit. Good news, the steps for reducing and eliminating debt are also a simple equation. The hardest part is staying on track and being consistent.
Understanding Interest Rates- Interest rates are the cost you pay your lender for your loan. When applying for a personal loan, it's important that you understand what interest rates are and how they work.
Maximized Borrowing Power-When considering a personal loan, it's a good idea to not only shop around before applying, but to also make sure your credit report is totally accurate; that your information listed is free of errors and is also current. In addition, while it can take several month, if you have the time before applying, there are things you can do that can help raise your credit score and rating.
Impact Of Poor Account Management-Being that there is no collateral securing an unsecured loan, these loan types are deemed as high risk. The consequences for not practicing strong account management and not paying your monthly loan obligation timely and in full, or even worse defaulting on your loan, are severe. More severe than not paying a secured loan; auto loan or mortgage.
What's The Right Loan Type For Me, Secured Or Unsecured?-Understanding the difference between the two is pretty critical when determining what loan type is your best choice. You'll accomplish the same with both, obtaining money. But each have very different costs/fees and terms associated with them as well as processes for obtaining.
The Federal Reserve Discount Interest Rate
Money is borrowed by banks and lending institutions from the Federal Reserve Bank. When lending funds, the rate the Federal Reserve Bank charges these borrowers on the short-term basis is called the “discount rate”. The directors of the Reserve set the discount rate, which has an immediate influence on Prime Interest Rate. The Prime rate is what banks charge to consumers when utilizing personal loans. The Prime rate fluctuates daily and can be viewed in real-time at PrimeRate.net.
Credit Reports
There are three major credit bureaus; Experian, Equifax and Transunion. They all collect and sell your personal info data, including but not limited to your history of bill paying (whether you've been late, delinquent or if your account is current), where you work and live, if you've ever filed bankruptcy or if you've been sued or arrested. No matter if lenders are performing and hard or soft pull of your credit, when determining whether or not to fund your loan request, every lender is going to pull your credit at some point of their underwriting process.
Your credit score, aka as your FICO score, is a scoring technique that condenses your total credit history into one number. This number is a grading that determines you potential of paying your bills. As long as you practice positive account history by paying your bills timely and in full every month, and don't utilize too much of your available credit limits, you can expect that your credit score will be favorably high.
If you don't know what your credit score is and/or haven't viewed your credit report in some time, considering obtaining a copy of your credit report and score prior to applying for a personal loan. You want to make sure your report is current, free of errors and/or outdated information. If when you do get your credit report and score, you witness info that needs to be corrected, make sure you do so before you apply. You don't want to obtain less than desirable rates and terms or even worse, get declined for your request, because of misinformation on your credit report.
Lender's Fighting For Business
Lenders have extremely complex systems in place to not only determine what sort of applicant they want to approve and fund, but also, what their interest rates need to be in order for them to be profitable in their business of personal loan lending. And as a result of their being a large abundance of lenders in the online loan industry, lenders will push their potential profit margins to the lowest possible values for the intent of offering their lowest possible rates, and gaining the business they are striving for. It's a fine line…if lenders don't charge enough interest, and in turn enough profit, they run the chance of not being profitable. On the other hand, if they present potential borrowers with interest rates that are too high, there is a good chance that they will lose business to lenders offering better rates and terms.
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IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, the lender will ask for your name, address, date of birth, and other information that will allow the lender to identify you. The lender may also ask to see your driver's license and other identifying documents.
Disclaimer: MyChoiceLoans.com is not a lender and does not represent lenders as a loan broker or in any other capacity other than as a loan matching referral service, offering free rate quotes with no impact to your credit. MyChoiceLoans.com does not run your credit and is not acting as a credit services agent for you. Lenders may perform a soft pull of your credit during the free rate quote process. Soft credit pulls have no impact to your credit scores or rating. You must select a rate quote and then finalize your loan directly with the lender with which you have selected. Any credit product for which you apply is solely the product of the lender. Most lenders will perform a hard credit check under the Fair Credit Reporting Act in order to evaluate your request promptly and adequately. Your permission will be asked for prior to any hard credit inquiry being performed. Final rates, terms and fees will be based on your individual credit history and underwritten by the lender NOT MyChoiceLoans.com. MyChoiceLoans.com cannot guarantee final terms, rates or repayments as they vary by lender. Providing your information on this Website does not guarantee approval for a product offering. There is no charge to use the MyChoiceLoans.com service. MyChoiceLoans.com may receive compensation from a lender in certain circumstances.
Representative Personal Loan Example: For a $5,000 36-month loan at an interest rate of 6.03% with a 1.11% origination fee of $55.50, you will receive a loan amount of $4,944.50 and will make 36 monthly payments of about $152.18 at a 6.78% APR. Total loan cost would be $5,478.48.