Category: Loans

Is Personal Loan Good for Me?

Unless you were born to suck with a silver spoon and spend your early life in Kashmir clothes, you will have to borrow at some point in your adult life. It may be that you realize your dreams of buying a house or car. You may want to consolidate existing loans or improve your financial situation.

Like all borrowing options, personal loans have pros and cons, Depending on your personal circumstances. Personal loans offer a lot of choices for individuals, but other options may be better for you financially.

When deciding whether a personal loan is right for you, it is best to work out exactly how much you need to borrow and for what purpose. When these things are clear, you will be in the best position to understand which financial system is right for you.

Go through personal loans and let the Guru be your guide.

Major Reasons for Taking Personal Loan

Home improvements

A wedding

A car

Credit consolidation

A holiday

With any loan, remember to mention the total cost before you get involved in anything. An interest rate will be advertised for all loans. However, the advertised Annual Percentage Rate (APR) will be available to the 51% of people who accept the loan, i.e. 49% will offer a lower attractive rate than advertised.

Also check out the additional fees that can be used when setting up a loan. Includes initial repayment fees – the fees you will incur if you repay your loan sooner than agreed – and arrangement fees, which sometimes apply to setting up a loan by the lender.

Benefits Which You Get Through Personal Loans

Personal loans are also known as ‘signature loans’. There are many reasons why some people prefer other ways to raise funds.

1-Personal loans are often unsecured:

2-Personal loans offer numerous loan options:

3-Personal loans can be used for many purposes

Personal loans are often unsecured:

Although it is possible to arrange a safe personal loan, many personal loans are unsafe. This means you do not have to network your house or car. As for the secured loan, the assets must be kept in order to obtain the loan. This means that you are likely to lose your assets in the future if you are unable to repay the loan as agreed with the lender.

Personal loans offer numerous loan options:

Although much depends on the individual applying for the loan, personal loans often offer more options than other ways to raise funds. The borrower’s credit history will be taken into account, but in general, compared to other borrowing methods, personal loans typically have a wide range of amounts, interest rates and repayment periods.

Personal loans can be used for many purposes:

To apply for a personal loan you usually need to give a reason to the lender. These include home improvements, the need for money for a car, wedding or vacation. You can use the loan for debt consolidation – combine your debts into a regular payment. Some people apply for personal loans when unforeseen expenses, such as emergency animal bills, increase.

Some Alternatives to Personal Loan

Personal loans are not for everyone. Some people may have better ways to raise capital, i.e. less credit and less chance of getting into debt overall. Alternatives to personal loans include:

Credit cards

Overdrafts

Mortgage refinancing

Pay in advance

Budget debt

Local welfare assistance

Credit cards

The credit card has similarities with credit, which provides an alternative way of borrowing from the lender. In simple terms, credit card users have the right to pay the outstanding amount of money spent on the card. Failure to do so will result in interest on the amount you borrow.

OVERDRAFTS

The overdraft is actually a type of agreement between you and your bank. This allows you to withdraw money that is not in your account. The amount you can withdraw should be determined by your bank before your overdraft is accepted. The borrower is usually charged for the privilege of being allowed to borrow excessively. Please note, such as an ‘unplanned’ overdraft, where the borrower is an overdraft, but they do not have an overdraft approved by their bank beforehand, however you should avoid using them as they may come with very high fees.

Debt budget

If you have income support, pension loan, job seeker’s allowance or employment and support allowance, you may be eligible for a budget loan. These are designed to help people buy essentials when they are on a low income through short- or long-term unemployment

Local welfare assistance

You can seek the help of your local welfare department. Like budget loans, local welfare assistance should help those on lower incomes so individuals can claim ownership of food, clothing and other essentials. You can request local welfare assistance if you are on a job seeker’s pay, employment and support allowance, pension loan, income support or global loan.

Are Payday Loans a Risk or a Quick Fix?

Salary loans can be an attractive way to get instant cash and quick credit, but we will show you how risky they are with high interest rates and extortion schemes, and look at alternative ways.

What Is Mean By Payday Loans?

Small loans (under 1,000) are short-term loans with funds guaranteed by your next paycheck. Most seven-day loans last a maximum of 31 days, some only seven days.

Getting a payday loan online is easy. For example, to apply with Txt loan you only need to provide some basic details including your bank account details. They demand that you register once and then you can send a text message and you will receive instant money in your bank account.

The only conditions with these are that you must be a UK resident, at least 18 years old, working and earning at least $ 400 per month and you must have a valid bank account, mobile phone and email address. However, they usually do not lend to anyone who has a CCJ or has been bankrupt for the past 18 months.

Emerging market

The payroll loan industry has really shunned after the debt crisis. According to a report by Consumer Focus, the number of payroll borrowers has quadrupled in the last four years.

The popularity of payday loans is understandable – the problem with the unsecured credit market is that lenders are now really, really interested in who they lend to. Anyone with a credit rating defect can be excluded from major lenders, meaning that for some there is no one other than payday lenders.

The problem is, these loans have extortionate rates and it is very easy to create a terrible debt burden if you can’t pay it off immediately. Even if you can pay off the loan quickly, it still costs a staggering amount of interest.

How Much These Loans Cost?

At face value, some salary loans may seem like an attractive deal.

For example, in Txt loan, you pay interest 17 interest on a £ 100 loan and repay it after 15 days. It is cheaper than some unauthorized overdraft bank account fees. However, with a hefty 4474% APR and a கட்டணம் 1 handling fee per text (see here), this deal is not so great.

Thames Financial payday loans offer payroll loans ranging from pay 50 to 750. They act as a broker, looking for multiple providers on your behalf. So the terms and conditions you receive from Thames Financial vary because they deal with different types of lenders. No matter what deal they come up with, always check the small print – especially the APR rate, because it can be very high.

Quidtil payday offers instant loans ranging from 80 to 750. Like Thames Accounting, regular APR varies – check it out!

Payday finder offers instant loans ranging from 80 to 750. On an AP 100 loan you will repay 125, with the regular APR being 1770% larger.

The usual APR on Wonga.com is an eye-watering 4,214% APR. There is a 50 5.50 transfer fee to pay, but the total cost depends on how long you want the loan. For example, if you want £ 100 for more than 7 days you have to repay 2 112.78, but if you want to pay more than 31 days you have to repay 7 137.76.

Misleading APRs

It is true that these APRs (annual percentage rates) are misleading as they are used to calculate interest for more than 12 months – which is not very helpful when the payday loan period is not more than 31 days. See here for Wonga’s explanation of why payroll loan APRs are so high.

However, the use of payday loans serves as a reminder that APRs are still the most expensive way to borrow money from a credit card, and if you trust them they may start to leave a bigger credit problem than you.

The other problem with salary loans is that the entire amount is repaid at once, which can put you in a similar position for the next month. So, when you find that you are not able to repay the loan, when the big fees start to go bad.

What Can Happen IF Someone Can’t Repay The Loan?

If you are unable to repay the loan, you will soon be in big trouble. This is where the nails come out and the payroll companies start making their money.

If after 15 days on Txt loan they are unable to withdraw money from your account, you will be immediately charged with:

Day 17: They send out the first late reminder including over 25 admin fees and daily interest charges 13 1.13, now the loan total is 3 143.13

Day 27: Over 25 Second late reminder including administration and interest rate, loan now stands at 9 179.47 Total

Day 45: Loan total 199.87

Day 46: They refer the loan to a debt collection company, which incurs an additional £ 47 administrative fee and transaction fee. The loan total is 7 247, and you will have to pay extra fees to that company.

Worse still, Txt loan will try to withdraw money from your bank account during this period, so you may face charges from your bank every time the funds increase otherwise the transaction increases, typically 20 – £ 40 a trip.

If the first missed fee on Vonga.com is £ 20 and then £ 17.50 they are unable to pay by 5pm on the same day, the matter will be sent immediately to a collection company. However, one good thing is that you will not be charged continuously until you repay (unlike others), but you will pay interest up to 60 days on your balance.

There are some real horror stories about people using payday loans, not being able to repay on time and ending up in a real mess – here are some posts about Cash Genie that make for a bad read.

Why You Need to Steer Clear?

The problem with any short-term loan or payday loan is that you don’t really solve the real problem – if you find it difficult to pay your bills every month and your paycheck doesn’t cover all your expenses, payday loans are the worst things to do alone.

If you are determined to take out a payday loan, you should only do this to cover the emergency and only when you are confident that you can repay it within the agreed time. With high APRs like this and comprehensive fees for late payments, it can be easy to see that using a payday loan can overwhelm your credit control, so they really should be a last resort.

Some Alternatives to Payday Loans

Now that we (hopefully!) Have put aside the idea of ​​a payday loan, look at some alternative ways to borrow money:

0% Credit Card: Use 0% credit card for interest free expenses if you have sufficient credit record to get 0% contract (check your record here before applying). It is basically an interest free loan until you clear the outstanding amount within the introductory period. The Tesco Club Card credit card (regular 18.9% APR) offers the longest 0% grace period for purchases in 16 months. Among other great purchases, Sainsbury’s credit card offers six months for the first 15 months of balance transfers and purchases and 12 months with Virgin 12/12 card for purchases and balance transactions at 0% rate.

A bank account overdraft: If your credit rating is good, you can also borrow cheaply on the approved overdraft in your bank account. For example, Santander’s preferred overdraft rate account offers 12 months of 0% overdraft until you convert all your direct debits and pay 1,000 per month.

Social Credit: Ignore the banks altogether and beat them up by borrowing from your peers instead! Sofa is the first online financial marketplace that brings together individual borrowers and lenders. As a SOBA member you will be placed in the ‘risk category’ by checking the loan and applying for the best fees for the applicants who can get more loans. Get all the details to become a sofa borrower here. Also, find out more about other social credit sites like Yes-Secure here.

Credit Unions: These are our favorite options. Credit unions are somewhere between a bank and a cooperative. The idea behind the credit union is like a sofa, the credit union benefits mutual buyers and savers. Members save their money to the union for a good, reliable income, and that money is given to other members at an affordable price. So lenders get good interest rates on their money, and borrowers do not have to pay over the roof for the loan.

You must be an established member of a credit union and have already set up a savings account before you can get a loan, so find one near you on the Find Your Credit Union website. Seriously, credit unions are a fantastic option for anyone, but especially if you are struggling. Go now and find your local one.

Online Pound Brokers: A pound broker is rarely a great first option if you want to raise money, but they are generally better than payday lenders. Online pound brokers like 62days.com offer low interest rates and there is no penalty for early repayment, which is worth considering as a quick fix. Pound brokers work by giving you a percentage of the value of a particular item (mostly jewelry) over a period of time, during which the lender receives interest and you can repay the loan at maturity, and repay the interest and your item. The loan is protected against the item you handed over, so if you do not repay the loan, they have that item. 62 days still offers the best deal because it will allow you to sell an item to them, even if it is less than what you would say to a jewelry store or eBay, but you have the option to repurchase it within 62 days for the price.

Let Get Started

It is helpful to check your credit rating first whenever you apply for funding. Go to one of the credit reference agencies to get a copy of your record – you can get a 30 day free subscription to Credit expert – to find out where any problems are and correct any mistakes. If your rating is bad, there are many ways you can improve it, which will help you access better interest rates and deals.

If you often get into debt, we have some tips for getting your bank account back in black.

If you are really having trouble making a decision, take the time to make sure you are claiming all the benefits you are entitled to – you can do this in minutes with Turn2Userge. You can talk to free loan charities to get some help on a budget. See National Debt line, Citizen Service and Consumer Credit Advice.

Top Companies to Consolidate Your Student Loan

Student Loans, Student Loans written on a chalkboard with chalk and a grad cap

With the increasing costs of colleges, the number of students that take loans are also increasing day by day. Students take federal and private loans to pay their college cost and according to a report almost 70% of the students take loans to pay their college costs. So with the rapid increase of this number there are people who want to return the loan and it is sometimes difficult to do so.

One of the best way to decrease the amount of the debt you own is to refinance your debt. A simple refinance can help you save hundreds of dollars that you had to pay in the form of interest and now you can also get a lower interest rate. There are many companies that you can use to refinance your loan, each company has its own terms and conditions with different requirements and payment rates. With so many different options available it is easy to choose the cheapest option with the lowest rates.

If you have a federal loan then make sure that before you refinance that loan, you check all the benefits that comes with these type of loans because if you will refinance a federal student loan then you will lose all these benefits. For instance you can apply for a loan forgiveness program if you have a federal student loan.

So let us talk about some of the companies that you can use to refinance your student loan. Starting from the 1st,

1- SoFi

SiFi is one of the famous loan refinancing company. They are one of the pioneer in this industry and have helped many people to save a very big amount. The company was started in 2011 by students of Stanford in order to help their fellows to pay off their student loans. Now they are provide student loans and are trusted by the students and they also offer refinancing for personal loans, mortgage loans and student loans. Apart from that they also offer life insurance and can help you to compare rates offered by different companies. One of the best thing about SoFi is that you can refinance your loan for a lower amount if your credit score is 650 or more. There are certain other requirements but you can simply fill up a form to know what rates you can get.

There are many benefits of using SoFi, they offer low interest rates in comparison to other companies. The time duration can be in between 5 years to 20 years depending upon the amount you are borrowing. You can take a minimum loan of 5 thousand dollars for a federal or a private loan. Another benefit of using is that when you will choose the option of Autopay, you will get a discount of 0.25% on your interest rate. Another benefit is that you can have access to advisors from which you can take financial assistance. Apart from all these benefits, SoFi also provide unemployment protection, so you do not have to pay any installment if you do not have a job.

If you get approved, there are no better options than that. Although there requirements are more than the competitor’s sites but they also offer more benefits than the competitor’s sites.

2- LendKey

As the name suggests Lendkey is private company that was founded in 2007 and it enables people to get students loans for a lower interest rate and apply for consolidation and here you can also get home improvement loans. The company has a slightly different approval method than any other competitor company. The company partners with credit unions and banks to provide you the lowest possible interest rate. The facilities you can get depends upon your lender union as this company is a marketplace rather than a direct lender. Make sure you review all the term and conditions carefully because each company has its own term and conditions.

There are many benefits of using Lendkey, you can get fixed APR rate in between 3.15% to 8.79% depending upon your loan. You can get a loan of $5,000 to $300,000 depending upon your degree for a time period of 5 to 20 years. Whether you are have a federal loan or a private loan, whether you are an undergraduate or a graduate you are eligible to apply in both the cases. Another benefit that you can take is that when you subscribe for AutoPay, you will get a discount of 0.25% on your interest rate.

The company has a very good customer care service and is highly recommended by its users. One of the reasons to join is that if you have got a loan with a cosigner then if you pay on time for a year then your cosigner will automatically get removed.

3- Earnest

One of the best companies to refinance your private and federal loans is Earnest, the company is in business since 2013 and specializes in consolidation of student loans. You can get lower rates in comparison to other companies but the approval process can take more time because they do not only focus on Credit Score alone. Here you can get a fixed APR of 3.49% to 6.32% and a variable APR of 2.75% to 5.87%. You can get a minimum loan of $5,000 for a time period of in between 5 to 20 years. There is no limit for maximum debt amount. Whether you are an undergraduate or a graduate, you are eligible to apply and one of the best thing about this company is that you have the ability of deferring payments for a time of 3 years.

If you have an amount of debt in student loan then this company is the most preferable and it also has one of the most flexible repayment options that you can use.

4- Discover Student Loans

The Student Loan Cooperation also known as Discover Student Loans was founded in 1992. You can only use this company if you are a permanent US citizen who is residing in the country. In the past you can use this company to get student loans but now you can also use this company to refinance your student loan. If you have a student loan of less than $150 k than you can use this company for a consolidation of your debt. The company brings in many benefits if you are using it to refinance your previous loan as you can get a fixed APR of 5.24% to 8.24% and a variable APR of 4.74% to 7.99%. One of the benefits is that they provide a 24/7 customer service to all the users and here you can refinance all kind of loans like all the companies listed above.

As with other mentioned companies, you need a very high score to be considered for a debt, here you can get a loan for a lower score and you can also get discount on your interest rate of 0.25% if you subscribe for AutoPay.

5- Splash Financial

One of the best companies that you can consolidate your student loan is Splash Financial. They are basically a third party loan providers as they connect you to banks and different other borrowers from which you can get loans on very low interest rates. This company work outs on your behalf and ask banks to provide loans for a lower interest rate than usual. The company also has a very user friendly website which you can use and on that site you can get a quote for yourself within 3 minutes and if you need a loan, then the entire process will only take a quarter of an hour. You can refinance any kind of student loan for a time period of 5 to 15 years with an interest rate as low as 3.75%. The amount of money that you can owe lies in between $7,500 to $300,000. If you are a graduate then you can also get discount from this company. To be considered for consolidation, you need a credit score above than 700.

6- College Ave

College Ave Student Loan company is one of the platform that you can use to get private loan. The company is in business since 2014. The company provides one of the lowest rates on student loans and has one of the most flexible repayment option if you compare with other companies in the list. Offering a low Fixed APR rate of 3.5% to 8% and a variable APR of 3.13% to 7.63% the company has one of the cheapest options. The minimum of amount of debt that you can owe from this company is $5,000 for a time period of 5 to 15 years. This can serve as a great platform to save money when it comes to refinance your student loans. Another benefit of this company is that if you are a Nationwide customer, you can simply take a discount of 0.5% on your interest rate. Thus it is the most under-rated and cheap platform to use.

So these are some of the options that you can consider while you want to consolidate you debt. Make sure you choose the best company in order to save most of the money. Do comment in the section below and let us know if you have any queries regarding the companies because we would love to hear from you.

Best of luck!