Category Archives: Home Mortgage
Personal Loans: The easiest solution even with Bad Credit
If you are in need of money but you dont want to undertake any complex financial transaction, personal loans are the right option for you. Personal loans are designed to provide money for applicants with little requirements and very flexible repayment processes.
Secured or Unsecured
Personal loans come in two forms: Secured and unsecured personal loans. Secured loans are guaranteed by the client with a personal asset such as a real estate or a vehicle. Unsecured loans on the other side dont require any collateral. But, though you may say this is the only difference between the two kinds of loans, the truth is that this difference has many consequences.
Secured loans involve less risk for the lender and this turns into lower interest rates, longer repayment periods and lower monthly payments. As opposed, unsecured loans imply higher risks for the lending institution and thus carry higher interest rates, shorter repayment periods and higher monthly payments.
Get Your Credit Report
Knowing your credit report before applying for a loan is essential. Credit agencies are required to provide you with a free copy of your credit report as per your request, so dont waste this opportunity.
Demand your free copy and make sure there are no errors or inaccuracies and if you find something that needs to be corrected, act immediately and contact the credit agency. Credit Agencies are prepared to deal with this kind of problems and are required by law to attend at your request for revisions.
Bad Credit is not an obstacle
If you suddenly discover that past financial mistakes have shattered your credit score, you dont need to worry. There are many people in the same situation and the financial industry, as creative as it is, has shaped solutions for people with bad credit, no credit at all or even for those who have gone through bankruptcy.
There are many lenders now offering personal loans for people with bad credit, the conditions are not as good as regular loans but they are a good way to rebuild your credit and a better source of finance than credit cards. The interest rate on credit cards is usually 50% higher than bad credit personal loans and the monthly payments of a personal loan are usually fixed so you wont have to worry about sudden variations.
Make sure you use the money to cancel outstanding debts and credit cards balances in order to immediately improve your credit score. If you do so, further monthly payments on the new loan will contribute to enhance your credit till youll finally leave the bad credit category and enjoy the benefits of having good credit.
Follow this advice and stay in the right path. Avoid requesting loans and credit cards youll fail to pay in the future. Learn how to make a budget and stick to it. These are healthy financial behaviors and will make your life peaceful and secure and youll easily save that extra money you need to enjoy your life. Debts on the other side wont let you sleep. Be smart and make conscious decisions when your finance is at stake.
Federal Student Loans vs. Private Student Loans (Page 1 of 2)
Few students can afford to pay for college out of their savings, so they use student loans to pay for school. Two major categories of student loans include federal loans and private loans. Because we believe that it is important to understand your education-funding options, this article investigates the difference between federal and private student loans.
These days, there are very few students who can afford to pay for college without some form of education financing. Two-thirds of undergraduate students have some debt, while 88% of law students need to borrow to finance their education. A typical undergraduate may graduate with more than $20,000 of debt, while graduate students may have significantly higher indebtedness. Law school students may graduate with an average of $80,000 in student loans. Typically, students have acquired both federal and private debt, but what are the differences between these types of loans? And is one better than the other? Read on for an explanation of both categories of student loans.
Many students rely on federal student loans to help finance their education. The most common federal loan is a Stafford Loan. These may be issued directly from the government to the student, or they may be issued by a private lender, such as a bank or credit union, belonging to the Federal Family Education Loan Program (FFELP). Either way, these loans are guaranteed against default by the federal government.
Something else to remember about Stafford Loans is they may be subsidized or unsubsidized. If you are eligible for a subsidized Stafford Loan, the government will pay the interest while you are in school. Subsidized Stafford Loans are generally given to students who can demonstrate financial need. If you receive an unsubsidized Stafford Loan, you will be responsible for paying all of the interest, although you may have the payments deferred until after graduation. If you choose to defer paying the interest until after graduation, the interest will be capitalized, or added to the loan amount. To qualify for an unsubsidized Stafford Loan, you do not need to demonstrate financial need.
The amount of your Stafford Loan will vary depending on your year in school. However, graduate students may borrow up to $18,500 each year (with $8,500 being subsidized) with a combined limit for graduate and undergraduate federal loans of $65,500 for dependent students. If you are an independent student, the cumulative limit you may borrow is $138,500 for your graduate and undergraduate studies.
Stafford Loans have variable interest rates, based on the 91-day T-bill, and this interest rate is adjusted each year on July 1. Stafford Loans have an interest rate cap of 8.25%. All lenders offer the same base rate for Stafford loans because the interest rate is predetermined by the government, although many lenders offer payment incentives and/or discounts to help you reduce your interest rate further. Another benefit of federal loans is you may lock in a fixed interest rate if you choose to consolidate your federal student loans. That way, you will not be affected by adjustments in the interest rate each year.