Many personal loans are now based on peer to peer lending programs
Many people are now turning to peer to peer lending because of the easy loan application process. With peer to peer lending, your loan will be funded by a single investor or multiple investors. In peer to peer lending, you sign up for the loan through an online service that provides comparison on different lenders. Such loans are usually unsecured loans lent for personal uses even though sometimes they may also offer loans for businesses.
The main advantage of P2P lending is that it is cheaper because there are lower overhead costs. The interest rate is typically lower than a conventional bank loan and you also don’t have to pay a lot of fees. When you apply a traditional loan, you are expected to pay for various fees such as application and processing fee. The interest rate is fixed for the entire duration of the loan term. They also do not incur any early repayment charges so you don’t have to pay for any penalty fee if you plan to repay back the loan early.
P2P lenders are flexible in letting you choosing the loan term, which can last for 3 – 5 years. Because of the short loan term, the monthly repayment fee can be more expensive and prevents you from having extra money to spend on other expenses. However, you will save a lot of money in the long term and it also discipline you to pay back your loan faster.
It is generally faster to get approved for a P2P loan because the entire lending process takes place online. The first step is to check your rate by answering a few questions in a survey. Your loan will immediately get approved when there are people investing in your loans. The funds will arrive in your account immediately once the loan is approved. You could get approved within minutes and get the funds direct deposited into your account in 1 – 3 weeks. There is the option of setting up automatic monthly repayment so that you don’t have to forget about repaying back the minimum amount.
There is no requirement on how you can spend the money in the loan. In P2P lending, you explain why you want to take out the loan and they will decide whether they want to lend you the money. On the other hand, a bank loan may set restrictions on what you can use the money for.
During the P2P application, you will be connected with a large network of lenders with different requirements. This improves your chance of getting approved because there will always be lenders with not so high requirements that you are able to meet.
In conclusion, P2P lending is suitable for people who need to get a loan quickly but don’t want to have to apply through the bank. Before applying, you can visit several P2P lending sites or use a comparison tool to compare the interest rates. As a reminder, you must make sure you fully understand the loan requirements and know your financial responsibility as a borrower.
Getting Rid of Credit Card in a Legal Way
Credit card users often fall into very disastrous problem of credit card debt. Often the debt is much more than what they can afford. Over the years, the number of people who become victim to credit card debt has increased tremendously. Even though credit card users are well aware of their credit limits, they do not realize it when they cross it and soon bills start piling up. If you do not get rid of these bills soon, you will be in a great financial mess.
This is what is happening with many credit card users. Hence, people who are under such financial problems are looking forward for ways to come out of it. Keep in mind that you can clear your debts on your own in a legal manner and that too by following simple procedure without paying anyone for it.
Credit cards are unsecured which means you do not have to pledge any collateral. In other words, if you do not pay the pending payments on time, the things that you have purchased by means of your credit card will not be taken back by the credit card company. You will not be arrested and the credit card company will rarely initiate legal proceedings against you. This does not mean that if you do not pay back nothing bad can happen to you.
If you do not pay your credit card debts on time, your credit score will be hit badly. If you have low credit score, you will not be able to get for any type of loans. Since credit companies are well aware of the financial situations of people who are in debt, they have created a way through which debts can be paid easily. However dealing with them can be quite intimidating.
There are independent financial companies available that help in providing relief to such people. The collections departments of the credit companies are very aggressive and cruel when it comes to making the debtor pay his debts. Hence it is advisable to make use of the services of independent financial companies to deal with your debts.
All you need to do is get in touch with such organizations and give them the list of creditors and the details of the amount of money you owe to them. The organization will deal with the threatening calls that you can get from the collections department of the credit card company.
Such organizations are also called debt consolidation companies. If you have a very big amount as debt, debt consolidation will help you club all your debts and pay back at with a very low interest rate by keeping your personal property as collateral. The debt consolidation company will talk on your behalf to the credit card company and ask them to forgive certain amount of money that you owe to the credit card company.
Before hiring the services of a debt consolidation company, you should also check its background and how long it has been working in this field. You should also consider seeking advice from your financial advisor before you consider the option of debt consolidation.
If you are going to take out a personal loan, there are several factors that you should keep in mind before applying for a personal loan. While personal loans unlike many other loan products are easy to apply for, and for many people are easy to obtain, taking out a loan is a serious endeavor, and could affect for your credit and your finances.
Taking out a loan in and off itself will not negatively effect your credit, at least if you pay back the loan properly, making all of your payments on time. Personal loans are like any other loan when it comes to your credit standing, it is all about your payment history. Where you stand the risk of ruining your credit is if you start to miss payments, are late on payments or quit paying your loan altogether. So it is not the loan in and of itself that is the risk, but rather any factors that could prevent you from honoring your contractual obligation to repay your loan.
Here is several things to ask yourself before applying for a loan:
Are you only applying for the amount you need?
Every loan has interest, so you should only aim for an amount you actually need, without going over. Lenders often try to get you to apply for more than you need, as its is much more profit for them to do so. Yet the more you borrow the higher the risk is to you that you will run into financial problems. Often times people try to justify amounts higher than they need, so try to think about your loan amount with logic and without emotional response.
Do you really need that loan?
While we love personal loans, and we think personal loans when used correctly can financially empower cash strapped people, we also believe that personal loans should only be used when absolutely needed. If you are dealing with an unexpected auto repair, an emergency or a medical need than chances are yes you need that personal loan. Yet if you are taking out a loan to get the latest X-box and 15 new games then you might want to reevaluate whether or not taking out a loan is the ideal solution here. Loans are serious endeavors, and should not be taken out lightly. Any number of other serious things can happen while you have this loan out, such as losing your job, accidents, a lay off or other factors that can lower your income, and your ability to repay your loan.
Is it an emergency?
This is directly related to the above question. Emergencies are the best time to make use of a loan. For anything else you should really take some time to mull it over. If for example you are taking out a loan to help cover the household budget, a loan will not help you, in fact it will just make matters worse. For everyday expenses you should be able to cover that with just your normal everyday income. Instead you should work on either lowering your expenses, or raising your income up. Sadly in the U.S 69 percent of personal loan users take out their loans to cover everyday living expenses.
I have been often asked if it is possible to have a negative removed from your credit report, one that you actually owe, if you pay off the debt with a collection agency. This is known as a pay for delete deal. While some people will tell you that this cannot be done, it can indeed be done. Most creditors and collection agencies will not do this, unless the collection agency has purchased the debt.
One way to do this is to tell them you are going to dispute the amount of the debt, that you do not believe you owe that amount. Tell them you are also planning to dispute the debt with the credit reporting agencies, and are considering legal representation. Then you tell them you are willing for the sake of convenience to settle the debt for less than owed, provided that they remove the debt from your credit reports. If they accept this deal, they can and will remove the debt from your record. They agree to this based on the premiss the debt may not be valid, even if it likely is, the dispute process can drag out, and you and they have reached an amicable settlement to resolve the matter at hand. This is done every single day.
There is another way to have a negative item removed from your credit report. If the collection agency has violated the Fair Debt Collection Practices Act, you might have recourse for whats known as a “tradeline” deletion. You can negotiate with the collections agency to drop your complaint for the breaking of the Fair Debt Collection Practices Act in return for deleting the entire account from your credit report via a tradeline deletion.
In the event that there is anything inaccurate about the debt information on your credit report, and you legitimately owe the full amount, you can indeed have it removed with no problem, once the debt is paid off by the creditor or collection agency. While paying or settling the debt is not mandatory to correct inaccurate information, your creditor is more likely to co-operate fully and in a reasonable time frame. Your creditor will draft a document stating the debt is incorrect, and forward this to the credit reporting agencies. Once the credit reporting agencies receive that proof, they will remove the information from your credit report, as if it never happened.
If you should decide to pursue an agreement with either the original creditor, or a collections agency, be sure to get any agreement made in writing. Creditors and collection agencies are famous for making verbal agreements, then not following through with them. Make sure to write down the names of everyone you speak to about the matter, and ask for their extension. When trying to negotiate the removal, if it is not going well with the person you are speaking to, ask to talk to a supervisor, as they often have the authority to make such decisions. If you are denied you can always try again after a period of time has passed, such as one month.
Stay tuned to Installment Loans Quick for timely articles on credit and lending topics, our goal is to help match you with the right lender for any loan related financing needs in 2016.
If you have bad credit and are in need of a personal loan, you need to keep a few things in mind. For one, lenders are not in the lending business to loose money. If you have a bad credit, chances are that you have stiffed one or more lenders on payments. Each and every missed payment effects the lenders bottom line, and quarterly earnings, and hence their yearly earnings. No lender likes to end up in the red. These lenders do not care if you lost your job or merely decided that your money was better spent elsewhere.
This may sound harsh, but I state this for a reason. Many people with poor credit get caught up on personal loan scams by fraudulent lenders. These are fly by night websites which make rather targeted copy writing towards people with bad credit, in an attempt to get them to fill out the loan application. You really need to think about the quality of the website offering these loans, the wording they use, and think to yourself if you were a lender, why would you loan money to someone with your credit history. If you cannot come up with a logical reason, not based on emotion, you should think twice.
Examples of personal loan copy writing on rather dubious websites:
“Financial problems don’t belong to something unusual today as literally every of us has faced difficult situations and hard times at least once in a lifetime. Fortunately, now short-term monetary issues can be easily solved with the help of fast personal loans offered on our site.”
What is wrong with the above? First off the English is terrible. Secondly how is the lender going to make money if for example they lend to someone with 9 past due tradelines on their credit report? The answer can of course be found on the small print of the website, they make money for each application they submit on your behalf to lenders, which of course damages your credit when you suddenly have 20 hard inquiries appear on your credit report. These are known as lending networks, where the website owner submits your application to as many lenders as possible. On the off chance you do get approved for a loan, the network owner makes a hefty fee, which ends up getting passed on to you, in fees on your loan. This of course raises the APR on your loan.
Here is yet another example I found on a website:
“Bad Credit OK!
We value our customers and don’t perform any credit check, and paperwork, so your bad credit is not a problem anymore! As a legit direct lender, we guarantee your approval, and as there is no third party and no brokers involved, our fees are cheaper! ”
Again note the poor English here “paperworks”. Also what lender on the face of the plant would not use and file paper work on a loan? No one. Also they have to point out “As a legit lender”, that hardly sounds legitimate if you have to use language like that on a rather poor looking website. Credit checks are pretty much an industry standard by the way, so if you see such an ad or website, walk quickly away. This whole advertisement just screams scam. Do not be a victim to loan scams.
Basically if you have bad credit, you need to be extra careful when applying for a loan. Make sure that the lender you are doing business with is licensed to do business in your state. Any good lender will also be registered with the BBB or Better Business Bureau. You should also run the lenders name in Google with the key words “Scam”, “Complaint” and “Fraud”. This will give you an idea if others have run into problems with that lender. If you need to find reputable lenders you can always find solid reputable lenders via the reviews on our website. If all else fails, you can take advantage of the credit repair advice we offer here, and make your credit good enough that no lender will turn you down.
Do you think you have too many credit cards? How many do you have? Three? Maybe 5 credit cards? Maybe you have 15 credit cards and think you have the world record for credit cards in possession? You would not even come close to the amount of credit cards that Walter Cavanagh has, in fact he has $1.7 million in various lines of credit, thanks to having a whooping 1,497 open and currently standing credit cards. This man takes credit card hunting to the extreme, but it is a wonder how he keeps track of all the account statements and fees.
This man made it into the Guinness Book of World Records in 1971, for having the most credit cards, and he has a title as well, which is “Mr. Plastic Fantastic,”. He has held the record every single year since 1971. He also owns the largest wallet in the world, which clocks in at an amazing 38 lbs, the wallet also stretches out 250 feet, and accommodates upwards of 800 credit cards.
Walter Cavanagh began his quest on a lark in the 1960s, due to a casual bet. Walter Cavanagh stated that “Me and a buddy in Santa Clara, Calif., made a silly bet: the guy who could collect the most credit cards by the end of the year would win dinner. I was fresh from the Peace Corps and I got 143 cards by the end of the year. My friend gathered 138.”
You would think having that many credit cards would hurt his credit score, but according to Walter, his credit score is nearly perfect. Despite owning so many cards, he claims to actually only use one of them, and that he pays off his balance in full each month, which is a sure fire way of keeping your credit score intact. He does say however that the length of his credit report is insanely long.
Weather or not all of the cards are truly open is a matter of debate. Walter says he assumes they are open unless he is told differently, and since he only uses one, I suspect that one or more, likely more of these cards are in fact dormant, closed accounts. He also says he has only ever been denied a credit card once, from Newberry’s, and that he still does not have one from them, stating They said I had too much credit,”. If only we could all be so lucky as to have the problem of having too much credit, and a nearly perfect credit score, and 1.7 million in open lines of credit.
The moral or lesson of this story is that you do not have to close out old accounts. In fact keeping older credit cards open can actually help to improve your credit score, due to age of accounts, as well as increasing your over all credit limit, and lowering your credit utilization. The next time you fear opening up a new line of credit, thinking that having to many credit cards will hurt your credit score, you only merely need to think of Walter Cavanagh and his 1,497 credit cards to know otherwise.
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If you have a large purchase or expense to make, and are considering breaking out your credit card, you should beware of a few things before you do. Credit card interest rates these days often soar as high as 29.99 percent is one reason a credit card might not be the best option for you. Another reason is that large purchases, a few thousand or more, will utilize much of your available credit, which will sink you credit score. Credit scores are computed using a variety of factors, but one main factor is your credit utilization. Your credit utilization is whatever credit available via credit cards or lines of credit that you have open that you are using. This means if you have a total available credit limit of say $10,000 but need a large purchase of say $7500, your credit utilization will now be 75%, which would tank your credit score considerably. Loans on the other hand differ from this other type of credit, so loans will not tank your score like using credit cards would.
If you have good to excellent credit, a personal loan might be the better option for you. If your credit score is only fair or poor, you might struggle to find a good interest rate, but you would still be protecting your credit score by using a loan for large purchases or expenses, instead of utilizing your credit cards. You should not confuse payday loans however with personal loans, as each of these two types of loans vastly differ. Personal loans can offer fair interest rates, while payday loans are more of a predatory type of lending with interest rates that can soar well past 400%. If you do opt to go for a personal loan, great care needs to be taken in picking the right lender, other wise that personal loan could end up costing you more than you had bargained for. It is vital to understand the terms and conditions, as well as any fees involved before signing on the dotted line for your loan.
If you do opt to go for a personal loan, you will have two basic choices, secured and unsecured personal loans. Each has their own pros and cons. Secured personal loans are secured with collateral such as property or a car, and they offer less interest generally, in exchange for securing the loan. Unsecured personal loans on the other hand are secured with nothing more than your signature and a promise to repay the loan as agreed upon. Since unsecured personal loans have nothing but your word backing it, they tend to carry a higher interest rate. The choice here amount to risking losing an asset if you should default in exchange for a lower interest rate, or taking the higher interest rate in exchange for security in knowing your assets are protected. With either type of loan however, failure to make payments on time will damage or severely tank your credit score.
If you do opt for a personal loan over a credit card, you still have more options to think about. Where will you find your lender? Banks come to mind, but banks often do not have our best interests at heart. Credit unions on the other hand often offer a lower interest rate, but you have to be a member in good standing to qualify, which could take to long if you are not already a member of one. Online is the next place to look, and offers several key benefits. One benefit is being able to look from the comfort of your own home. Another is that many of these lenders will allow you to check your rate without even affecting your credit score. The last being that online lending is very competitive so deals can be found more readily. If you want to find reputable online personal loan lenders, look no further than the reviews featured on this website.
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Do you use a debit card often? If so did you know that your debit card is likely not secure? I say likely since most debit cards have yet to switch over to the EMV chip. EMV in this case stands for Europay, MasterCard and Visa, which helped to propel this new security feature forward. An EMV chip is basically a mini microprocessor that is embedded directly into your credit or debit card. It securely stores your payment information, preventing random people from scanning your information. It also has a second feature that really helps to kill any fraud, it sends a unique digital code each time you make a purchase. Every purchase has a new digital code sent to a payment terminal, so any attempted purchase that does not have this unique code will fail. The unique code can only come from an authentic EMV chip, as of today’s date there is no way to fake this process.
Using the cards is much the same, in fact they can be swiped just like the magnetic cards you are used to already. They can also be dipped into the terminal. Some of these cards do not even need to make physical contact with the terminal, they can be make a remote payment from several feet away from the terminal. Credit cards have already started rolling these EMV chip cards out in the United States. These cards have been in Europe, Asia and other parts of the world for years. If these cards had been rolled out sooner in the United States, experts agree that the damage done by credit card fraud would have been severely diminished in the States. Now banks have started to roll these cards out for debit card users. As much as 4 out of every 10 debit cards will likely have a chip in them by the end of 2015, with more to follow in 2016.
This comes at a high cost to U.S banks, but the savings in debit and credit card fraud will make it well worth it for both the banks and you the consumer. While large banks are having an easy go of producing and sending these cards out, many of the smaller banks in the U.S are falling behind and struggling to catch up. Also there is a change coming to payment terminals, which was the main reason EMV chips were delayed state side. For now people will be able to swipe or dip their EMV cards, but the plan is for all terminals to eventually be dip only.
If you are wondering why the big push to do this, it is not just credit card fraud people have to deal with. A shocking 1 in 5 Americans has been the victim of debit card fraud over the last 5 years, according to the ACI Worldwide and Aite Group. Unlike credit cards, banks are under no obligation to refund fraudulent debit card purchases, and when they do refund these bogus charges, it is often after a long battle with the bank. Banks and consumers alike are on the hook for millions of dollars in debit card fraud every year. Unlucky people can find their entire bank accounts wiped clean by a clever fraudster.
If you have yet to receive an EMV debit card from your bank, you should contact them and ask for one. Most big banks have them available, but are staggering out handing them out. By simply calling and asking for one, you could secure your bank account, and add peace of mind.
Losing your job can not only be stressful and an emotional time in your life, it can be downright financially disastrous. Not only do you need to worry about finding a new job, you have to deal with making your rent or mortgage payment, and paying all of your other bills. Those other bills include paying off your creditors including your credit cards. It can be very easy to destroy your credit score during this time of turmoil, but it does not have to be. There are some things you can do to prevent damage to your credit score and your finances that may just well help you to cope with your current financial burdens. Here is a basic checklist to follow if you have found yourself out of a job:
Examine your finances
Okay yes you just lost your job, but you should have some assets in place. You need to factor in any funds you have set aside, calculate how much in unemployment insurance you have due, and any other assets you might have such as severance pay, savings accounts and any assets that you can liquidate for cash if need be. You are basically figuring out what you have to work with.
Examine your obligations
Now you need to separate your financial obligations into two categories, must pay and would like to pay. Your must pay obligations include rent or mortgage, utility bills and a food budget, as well as transportation. Next factor in all other debts and expenses, cable TV for example you can likely live without. Credit card debts can be taken care of with minimum payments until you are back on your feet. In this stage you are pretty much doing financial triage, figuring out what expenses and debts you have to pay, and which ones you can eliminate or pay the minimum on. You main priority is to ensure that you can meet your basic needs, anything else is secondary.
Cut unnecessary expenses and create a new budget
During this time you do not need gym membership, dining out, Netflix or any other non vital expenses. Anything you can live without until you find a new job should be cut. Next you need to make a new budget taking all of the above information into account, so you know exactly what you have incoming and outgoing.
Communicate with your creditors
Do not delay talking to all of your creditors. Do this well before you are ever late on a single payment. Arrangements may be possible that can save you from any nasty dings to your credit report. Some loan companies for example like SoFi will pause loan payments while you are unemployed. Some creditors offer “hardship programs” where payments are lowered and even suspended for a limited time. You should have on hand any documentation that you have lost your job, before making these calls, as you may be required to prove it. Make sure you keep up with the minimum payments during this time, if at all possible. The loss of your job may only be a temporary setback, but late payments on your credit report can haunt you for years to come.
Doing the above can help you during this time of turmoil. Keep calm and collected, and implement the above tips. Your goal is to create monetary stability as much as possible, and to limit the damage to your finances. In order to do this you need to focus and be honest with yourself and with your creditors. Ignoring the situation will not do you any favors. Remember the loss of a job is only a temporary setback.
No one ever wants to see the hard work, equity and emotions they put into their home go up in smoke because they can no longer afford their mortgage payments. Today you see on street corners signs stating “we buy houses with cash”, which just goes to show you that thousands of Americans today are in a mortgage crisis. From job loss to those who took out a mortgage with an adjustable rate to various financial problems, thousands of Americans are struggling with their mortgage payments.
If you are behind on your mortgage payments, you do have options. Never give up. Your first step should be to contact your loan provider to go over your options, the sooner you do this the better. If you put off discussing the matter with your loan officer, you could be reducing your options the longer you wait, and make matters worse. With the big push from the government against foreclosure, many loan providers are now offering several options for borrowers who are behind on their loans. Even if you have been turned down for help once, you should try again. You may be wondering exactly what type of help they can give you, lets discuss several of your options.
You may qualify for the HAMP program, or the Making Home Affordable Modification Program. HAMP is a loan modification program for those who owe less than $729,750 on their primary home and a first mortgage. To qualify for HAMP your loan had to have been made prior to January 1, 2009. The last two qualifications are that your mortgage payment, which includes your principal, interest, taxes, insurance and homeowner’s association dues, is more than 31 percent of your current income, and that you are facing a financial hardship such as an illness, medical costs, or a job loss for either you or your spouse. If you meet those qualifications you could receive a loan modification that will result in lower mortgage payments.
There are other programs out there to reduce your mortgage payments, even in cases where your homes value has decreased. For example the U.S. Department of Housing and Urban Development offers the HARP program, known as the Home Affordable Refinance Program and the the HOPE for Homeowners (H4H) program, both of which you may qualify for, simply contact your local HUD office.
You can also opt to try and deal directly with your loan servicer. You could try for reinstatement where you pay back your past due payments, by a mutually agreed on date. This can work if you have equity in your home and are willing to tap into it for a loan to pay back this amount. You should also see if you can refinance at all, reducing your monthly payments. Some lenders will also agree to a repayment plan where you pay back your past due amount over time, but this plan tends to only work if you have missed only a few payments due to a short term setback. You can also ask for a forbearance, where payments are suspended for a short time, and the money is repaid at a later date.
If you are falling behind on payments you do have options, you always have hope. Your local HUD office can assist you with resources for underwater homeowners who are behind on their mortgage. The key is acting fast and not putting off doing what needs to be done.