How to Get Interest Rates Reduced on Loans

Many people who have mortgages and other types of loans simply take the interest rate that is offered to them by the lender. Most of these people are unaware that there are a couple of ways that they can get cheaper interest rates. Consumers who are wondering how to get interest rates reduced will be pleased to hear that it is a simple process.

The first thing that people who are in the market for a loan should do is shop around. One of the biggest mistakes that people make when it comes to lending, is to stick with the same provider they have used for the majority of their lives. The lending business is competitive and this means both banks and finance companies are prepared to offer good interest rates to their customer.

Generally a bank will be able to give a customer a cheaper interest rate than a finance company. This is because banks have a lot more security to back them up if their customers do not pay back their loans. Also banks are very conservative about who they lend their money to. If a customer does not have a regular income and a clean credit history, a bank will not touch them. This leaves some customers with no option but to turn to a finance company. Finance companies will then charge a higher interest rate because the customer is deemed to be high risk.

Once the customer has shopped around and has a list of interest rates that various companies are prepared to offer they should get back on the phone. Consumers should now tell the lender that another company has offered them a cheaper rate and wait to see if the lender can give them a discount. Many people are unaware that lenders have a degree of flexibility when it comes to interest rates. While they will not want to drop the rate, they will be prepared to do it in order to snag a customer. Lastly those with very bad credit looking for products such as credit cards for people with bad credit, will have to put up with high interest rates until they rebuild their credit history.

Debt Help – What Can You Do on Your Own?

Being in debt is never a good situation to be in. Having debt troubles can cause a lot of unnecessary stress in a person’s life. This is one of the reasons why more and more agencies are creating programs that focus specifically on helping individuals cope with debt problems or teaching them how to manage their debts so that they can be out of debt in no time. However, you cannot solely rely on these programs to help you get out of debt. Debt help begins with yourself, you should never depend on others to help you eradicate all of your debts. Below are a few things that you can do on your own in order t help yourself get out of debt the soonest time possible.

  1. Learn to develop a budget. Having a budget plan is one of your most important tool in trying to recover from debt. If you have tried making a budget before but is still buried with debt, then it can either be one of the two: it’s either you never stuck to your budget plan or the priorities in your budget plan are all wrong. List down all of your earnings then divide your expenses into two categories: necessary and unnecessary. Obviously, those that fall under necessary are monthly bills and the like while those that fall under the unnecessary are your luxuries in life, basically those you can do without at the moment. Once you have listed down your income and budget you can begin prioritizing which should be paid off first and how much.
  2. Try to contact your creditors. There are a lot of people who get intimidated with the thought of personally contacting their creditors. Although it can truly become a daunting task, still you can gain so much from it especially if your talk goes well. You can contact your creditors and try to negotiate your interest rates or propose new payment terms to allow you to catch up with all of your debts.
  3. Know how to deal with your debt collectors. Constant calls from debt collectors are one of the main stressors when in debt. They can harass you with constant collection calls which can ruin your pace at work or can lead you to worry more and more about your debts. In order to avoid being harassed by your collectors, you need to orient yourself with the Fair Debt Collection Practices Act. This law clearly states when and how your debt collectors may call you regarding your debt.

The tips mentioned above may be simple and very basic, however they can be your starting moves in order to make your debt troubles less stressful than it actually is. By following these tips, you can be well on to a clearer path of just how you can get rid of all of your debts.

Bad Credit Business Loans Might Be The Answer

Are you concerned about the credit profile of your small business? Has it been stopping you from acquiring additional capital from lenders? These days, this should not be too much of a problem anymore. Small business owners who have poor credit ratings or are starting to build their credit profile need not feel restricted from acquiring additional startup or working capital. Thanks to financing institutions that offer bad credit business loans, almost every small business owner these days can have the chance to grow their business venture. Through this kind of financing option, additional capital should no longer be a big concern that seems to be impossible to resolve.

It is quite true that applying and getting approved for a business loan is no easy task for any business that has poor credit ratings. With banks, this whole task even gets extremely difficult. This is such a common plight for small business owners but the good news is there is a solution. Thanks to bad credit business loans and other options, almost every small business now has the chance to pick up on its slow growth pace.

There are now several financing institutions that offer this kind of option. What is good about bad credit business loans is they are comparatively faster and simpler than traditional loans. Some providers even offer quick online application. This simply means a business owner no longer needs to be physically in an on office to start processing his or her application for a certain loan. There are even some that can have the application results within 24 hours. Generally, funding can be received within 7 days. And depending on the provider, there are no upfront or hidden fees.

These are only some of the several reasons why more and more business people are resorting to this option over traditional loans. Other reasons why business people prefer this option include the fact that bad credit is not a problem, there are generally no application or closing fees required, and these loans are typically unsecured – so no worries about collateral. There are also small business loans for women with bad credit that are quite similar to this new kind of financing option.

It can be quite helpful to learn more about bad credit business loans today. This financing option might very well be the answer to cash flow problems, as well as to additional business capital requirements.

Get a Free Credit Score from

Today their are a lot of websites claiming they have the cheapest credit score, but instead what most of them do is give you the credit report for free and charge for each of the three credit scores.  This is how most credit score websites sites operate these days but their is one that truly does give you the free report and score and that is Credit Karma.

First off Credit Karma offers you a free score and report up front.  The score and report comes straight from Trans-union completely free.  With any other credit website you would have to pay for this info but they do much more than this.

They also grade you on each area of your credit report, such as open credit utilization, percent of on time payments, your average age of open credit lines, your total accounts, and any hard credit inquiries you may have received.  On top of grading your credit they also show what to do to fix your credit issues and how to improve your score over time.  This is real value that most credit websites just don’t offer.

Next you can also compare your credit against other to see how good it really is.  For example you can see how good you compare against people in your same age bracket, or how you compare against those that live in your state, or community.  The benefit behind this is when you know where you stand it’s easier to see if you need improvement or not.

Finally, the last great thing about Credit is that they have a credit simulator.  This is a great tool that allows you to test different ideas against your credit, such what would happen to your credit if you opened a new credit card, or took out a new loan, or closed your oldest credit card account, or even worse filed bankruptcy.  By doing these things you can see how your credit would react.

In the end to find a cheap credit score all you need to go is go to Credit Karma and get it for free.  To get started go to Credit today and open a free account and start improving your credit today.

For Mortage Refinance Leads Try the Web

As a person in the mortgage industry, the time inevitably arrives when you need to increase business through the use of leads. When you reach this point, you better have a solid plan in place to take advantage of the potential prospects.

Contrary to popular belief, it is definitely possible to generate leads for no cost. You just have to be proactive and look in the right places.

A forum is a hub online where like minded individuals meet and communicate with one another. There are literally thousands of online forums on many topics including mortgage. Your job is to find forums where individuals who are looking to buy a home spend time.

A great way to find a forum is to Google: mortgage refinance forum. Implementing this search will yield the forums of mortgage refinance leads. After you’ve found one you like, create an account and begin interacting with the members.

The key here is to NOT push your products on members. At least not right away. Doing so will turn off members and may get you kicked out. What you need to do is provide value and establish yourself as an expert.

Look through the threads (topic titles) and look for people asking questions or running into problems. Answer their questions and genuinely help. After a while, you will be seen as an authority.

While you shouldn’t tout your business overtime you get, you should include a mention of your business in your bio line which appears at the bottom of your forum messages.

By providing unique value, leads will come to you. You will have gained credibility and most importantly trust. Once that trust is established you can take the tep of converting those leads into customers. Taking this approach is a long term strategy, but it will pay for itself in time.

Numerous Ways to Clear Debt

Many individuals find it difficult to avoid a transforming debt into wealth scam, and this is especially true for those who have a lot of credit card debt and other similar obligations. People who target consumers for such scams typically tell them they can become wealthy if they allow a third party to talk to the credit card companies on their behalf. Anything that seems too good to be true probably is, and people in the aforementioned positions should think carefully before becoming involved in such a venture. The best way to find out if something will actually work is to inquire about it from those who have already participated in the program and can subsequently speak from experience. Many individuals have had past debt problems and have found a way to change their luck by obtaining help from those who can offer clear debt solutions rather than false promises. Many lenders will agree to work with those in debt if they see that they are willing to attempt to pay.

A transforming debt into wealth scam might claim that a person can get wealthy from the aforementioned venture, and while this is not entirely true, there are advantages with certain companies that can work in one’s favor. It is always in one’s best interest to have a representative fight on his or her behalf and make negotiations with the credit card companies to which the money is owed. This liaison person will work to discover the amount of money for which the credit card company or other lender is willing to settle. If one has an amount in mind, he or she can use this service in order to assist with shrinking the overall amount that is owed. Outstanding debt affects the profit of credit card companies and it is for this reason they are willing, many times, to settle for less in order to recoup at least some of what is owed. However, it is best for one to hire an experienced person to help them deal with such negotiations. The best way to eliminate debt is to take advantage of methods that have proved successful for others.

Instant Approval Unsecured Loans

If the approval of the loan is instant, it can mean only one thing: a computer is doing the deciding. And if a computer is doing the deciding it means the approval (or decline of the loan) is completely quantitative, not qualitative. What does that mean? It means the computer doesn’t care about your circumstances, your personality, your hard luck story or your 100% commitment to repay. All the computer cares about is whether the numbers work in the bank’s favor. What numbers?

Your Credit Score and History

There is no way you’re going to get an unsecured loan (being defined as a loan that doesn’t require collateral) without a good credit score. When I say good I mean north of 680. And not only does your Fico score have to be high, you have to have a nearly spotless payment history on your other loans during the previous 24 months – at least. So when the computer pulls your credit report it can’t see any “30 day late” or “60 day late” notices.

Your Outstanding Debts

How may credit lines do you have open? Are they revolving credit or secured credit? Secured or unsecured? Meaning, are they credit cards, car loans, student loans, payday loans, a mortgage – what? It’s true that you want a certain number of credit lines active on your credit report in order to qualify for unsecured loans, but if you have too many you can start to look like a credit risk. And just so you know – department store and gas station credit cards don’t help your credit in the least, so you might as well cancel them.

In an instant approval loan situation, you need to make sure you have a few long-standing credit lines open, and ideally they’ll have some activity on them in the last 24 months that proves you’re an active, but very responsible borrower.

If you’ve got the credit score and history, and if you’re total monthly debt payments aren’t overwhelming (in the bank’s eyes), there’s a good chance you can get instant decision unsecured personal loans. But if you don’t have those things in order, you’re going to have to go the more traditional instant personal loans route – I’m talking about payday loans. The ugliest loans in the world, with their egregious interest and fee structures.

Avoid Traditional “Unsecured” Loans if Possible

The problem with traditional payday loans is they will literally approve anyone as long as the person has a pulse, a direct deposit paycheck stub, and an active checking account. That means the burden is  really on the borrower to decide whether it’s a good idea to borrow that money. And take it from me – it’s a terrible idea.  If you can possible avoid taking on that kind of debt, please do.

Instant Decision Unsecured Personal Loans

When you’re trying to get a personal loan, “instant” can mean a couple different things. It could mean you fill out a web form with all your relevant data, click “submit” or “approve me!” and you get an immediate message saying you’re either approved for the loan, or not.

On the other hand, you might consider a 24 hour approval period to be essentially instant, especially consider most loans have approval times measured in days or weeks. So whether you’re looking to be approved instantaneously or sometime tomorrow, you need to understand which aspects of your application make the biggest difference to getting approved for instant decision unsecured personal loans.

What signals are lenders looking for to identify you as “not too risky?”

The first – and biggest – factor is your credit score. There’s no way around it. If you want to borrow money fast you’re going to have to show you’ve been a responsible borrower in the past. Remember, you’re asking them to give you up anywhere between $1,000 and $5,000 in a matter of minutes (or maybe hours). For the lender to feel comfortable with that decision they’re going to have to see glaring proof that the loan will be a good use of their money. Glaring proof in the form of a high Fico score and and a history of making your loan payments on time.

How much does your income matter?

Your income matters quite a bit. Maybe not as much as your credit status, but it’s still a factor because the lender has to see that your income has room for the new payment you’re going to have if they give you this loan. Typically called your “Debt to Income” ratio (or DTI), the lender is going to add the new payment this loan will create to your other monthly debt obligations and calculate whether or not the new payment will overload you.

When you’re trying to qualify for a home loan the standard DTI numbers are typically around 33% of your net income and about 42% of your gross income. The preferred DTI isn’t as well-known for unsecured loans, but it’s logical to assume they’ll be slightly more conservative given the fact that they have nothing to repossess if you don’t make your payments.

If you have terrible credit and a lot of other debt….

Instant personal loans may not be for you. Well, that is unless you want to go the payday loan route. If you’re truly desperate for some cash you can get really fast loans for up to $1,000. But these are “borrower beware” situations. The fees and interest rates on these loans make them a horrible decision for pretty much everyone. Not the recommended path, in my opinion.

Getting a Good Deal on Private Personal Loans

It is rare to find someone who can pay for everything they need upfront and this has led to the regular use of private personal loans. They allow an individual to pay for something that they cannot afford in the short term and spread that cost over a longer period of time. Many people use this kind of lending to pay for a new car, a luxury holiday or even to pay an unexpected maintenance bill.

When looking for a loan like personal quick loans there are a number of companies that are vying for your custom. The banks are the first port of call and offer the widest number of products but also the highest rates. Finance companies are the competitors to the banks and while their rates are often lower they cannot offer the range of services the bank does. There are others willing to offer you loans, any online search or glance at the phonebook will show a wealth of choice.

The consumer has a number of considerations when taking out private personal loans. The first is to find out what fees they are to be charged for the organisation of the loan. The lender will not always volunteer this information so make sure you check. Before taking a loan it is also wise to read the contract. The terms and conditions as they will tell you of any extra charges the company will take. It is sometimes the case, in particular on bigger loans, that the lender will want collateral on their investment. This means they may be able to repossess your car or home if that is the item they have asked for as a guarantee against the money borrowed. This information can be found in the terms and conditions of the loan.

A final consideration is to decide how much you need to borrow and not accept more if the bank or finance companies offer it. Sometimes they will inform you that you can borrow more but unless you need this money remember that you will still need to pay it back. Private personal loans are a good solution to short term needs but always remember that you will be paying it back overtime and that commitment can hold you back from other activities.

$5,000 Auto Loans with Bad Credit

You’re looking for $5,000 auto loans for people with bad credit, but the fact is lenders aren’t looking to lend a specific amount. They’re looking to lend as much as possible without taking excessive risk. So let’s look at how a lender would decide whether to give you an auto loan for $5,000.

First, let’s estimate the payment. Now, because we know you have a shoddy credit score, your interest rate is going to be between 11% and 20%. For quick math let’s call it 15%.

$5,000 financed at 15% for 36 months gives a payment of about $174 per month. The lender already knows your credit is bad, but they’ve offset their risk by charging you 15% interest (or more). The only question remaining is whether you can handle another $174 in monthly debt service. To make this decision they use a ratio of the sum of all your current debt payments compared to your monthly gross income. What ratio are they going to want to see? It’s hard to say because it varies so much by lender. Some lenders care a huge amount about your income; others don’t care as much because an auto loan is a secured loan – meaning they can repossess the car if you default (repossessing the car can actually be profitable for them because they get the car back, keep all the money you’ve already paid, then turn around and sell the car again).

But I’d say you want to keep your total payment to income ratio below 40%.

For example:

Your gross income is $4,000 per month (you’ll have to prove that with pay stubs and possibly a letter from your employer).

  • Your mortgage payment on your townhouse is $950 per month.
  • You have another car payment at $250 per month.
  • You have student loans at $150 per month.
  • The minimum payments on your credit card debt is $140 per month.

So before we add the $174 per month for your new car loan, you’re at $1,490 per month.

Adding your $174 for the new loan you’re at $1,664, which is 41.6% of your gross income.

This leaves slightly over the 40% ratio we were shooting for. Does that mean you won’t get the loan? Not necessarily. Like I said, some lenders don’t care a ton about your debt to income ratio. On the other hand, you have to ask yourself if YOU want the loan. You’ve already got credit card debt, student loans, and another car payment. Would it make more sense to hold off on this car? Could you ride your bike or a $500 scooter to get where you need to go? I know it’s not glamorous, but trust me when I tell you that getting out of debt is worth feeling a little nerdy on your scooter. Think it over.


No Credit Check Auto Loans with Repo

Listen closely. It doesn’t exist. There’s no such thing as a no credit check auto loan, with our without a repossession on your record.

Of course, that doesn’t mean you can’t get financing. You’re operating under the assumption that because there’s a repo in your recent past a lender won’t touch you. That’s not the case, but that doesn’t mean they’re not going to check your credit before they give you a loan. Why is that? Because your credit goes beyond just your Fico score (which I’m sure is pretty awful, but don’t feel bad – that’s just about everybody these days). Prospective lenders are going to look at your credit history to get an idea of whether they should treat you as anything other than a really bad credit score.

They’re going to look at:

  • how much credit you’ve had in the past (both number of credit lines as well as total available credit on things like credit cards, etc)
  • how many late payments you’ve had on those credit lines (although typically they’ll only go back 24 months)
  • what your current outstanding balances are (including judgments, active credit lines, home loan, etc)

Make no mistake, if someone gives you an auto loan (even relatively small $5000 auto loans) after you’ve had a repo, they’re going to stick you with some ridiculous interest rate. I’m talking upwards of 20%. But that doesn’t mean they won’t give it to you at all. They likely will give it to you. But before they do, they’re going to look very closely at your provable income and your current monthly payments on other loans.

After all, whenever you had your repo, it wasn’t because you were flush with cash and just decided to stop making payments, was it? Probably not. Whether it was unemployment or some other emergency cash issue in your life, you didn’t have the money to stay current on your car payment. So the big tow truck came in the night and hauled it off to auction.

Here’s what your new lender will need to see:

  • most likely at least 30 days of pay stubs
  • a letter from your employer (on company letterhead) saying that not only are you still working there, you will continue to be employed by the company for the foreseeable future

Once you’ve proven the income, the lender will add your new payment to existing loan balances, calculate the total payments as a percentage of your gross and net income, and make a decision about whether you can handle the payment. If he feels like you’re likely to make your payments on time, he’ll give you the loan and courteously charge you 23% interest on it. And if you’re dumb enough to default again, he’ll repo your car, keep all the money you’ve already paid him, and sell the car to somebody else who’s on the hunt for no credit check auto loans after their repo.

Bad Credit Personal Signature Loans

Personal signature loans are typically intended for people who have good credit. When you’re trying to get a loan it’s always wise to put yourself in the lender’s shoes. Let’s say a friend approaches you and says she needs $1,000 to cover her utility bills until she gets her next paycheck. Or maybe she needs the money longer term because she needs a new washer/dryer combo. What will be the very first thing you ask her?

That’s right – “How are you going to pay me back? Can you handle the payments?” And the all important question: “If you end up not being able to keep up with the payments, what can you offer me as security on the loan?” Now, if she’s using the money to buy a washer/dryer you could take those from her and sell them to recoup at least a percentage of your money. But if she’s borrowing the money to pay bills, there’s nothing to repossess. If she tells you she doesn’t have the greatest fico score, you’re looking at giving her a bad credit unsecured personal loan. Does the thought of lending her the money make you nervous? If so, you’re starting to see how picky the banks can be when they’re looking at offering a loan to a person with no collateral other than her good name.

The bottom line is personal signature loans for people with bad credit are going to be hard to find. You’re not offering the lender any tangible security on their loan; and you’re not offering them mathematical security in the form of a good credit history and high Fico score. Their only recourse is to attempt to ruin your life by crushing you with high fees per dollar borrowed, very short repayment periods (which you won’t meet, meaning you’ll incur more fees), and worst of all – this kind of loan is typically not going to do your credit score much good.

So while you may have no alternative to seeking instant approval unsecured loans online right now, you have to take a step back and evaluate what got you here in the first place. I mean, even credit cards would be a far superior borrowing vehicle. but if you’ve really trashed your credit, I’m guessing you’ve had credit cards before and got yourself into trouble there, too.

Do what you have to do today. But…get a secured credit card (one that DOES report to the credit agencies), put a small balance on it, and make your payments on time. Slowly but surely your credit will improve and you won’t have to go down this nasty personal loans path many more times.

Lending Tree for Bad Credit?

“Banks Compete. You win.” Right? That’s‘s catchy slogan. The question is, do banks compete for your business if you have bad credit?

Not as aggressively, it’s safe to say, but there interest to compound and fees to charge on loans made to people with low Fico scores. So yes, I’d say banks may still want to compete for your attention, and Lending Tree may be the place to do it.

What kind of loan are you looking for? Lending Tree is probably best known as a mortgage company, but they offer all different kinds of financing, from auto loans to student loans, all the way to personal loans.

Lending Tree Bad Credit Personal Loans

You have to dig a little, but they do offer personal loans. Here are a few of the details:

  • minimum loan amount is $1,500 (unless you live in Arizona or Tennessee – then it’s $1,000).
  • you can apply for a revolving line of credit or a one-time loan with a repayment term of 12 to 60 months.
  • if, and when, you’ve declared bankruptcy will be factor in your approval and loan terms
  • you can apply with a spouse or other co-borrower.
  • they’ll want to know how many outstanding debts you have (that’s the number of loans, credit lines, credit cards, etc – as opposed to the amounts of those loans).
  • They’ll ask you to rate your credit on a scale of Poor to Excellent (no point fibbing, you know they’re going to check your credit score). I’m sure they ask you to declare your credit status so they know which loan providers could potentially work well with you.

If you’ve damaged your credit with late payments or bankruptcy, it won’t automatically preclude you from getting instant approval unsecured loans through Lending Tree. Countless Payday loan stores and websites prove there are providers ready to help you out. The question is whether you want them to.

With triple-digit annualized interest rates and practically criminal fee structures, personal loans are a potential disaster in your life. Yes, Lending Tree is a reputable company helping you find the loans you need, but always make sure you’re aware of whether those loans are in your best interest in the long run.




Guaranteed Loans with No Credit Check

There’s only one reason you don’t want lenders checking your credit as part of a loan application – your credit stinks. Really bad credit guarantees really expensive loans.

So if you want guaranteed loans no credit check, you’d better be prepared for the consequences. It’s not an exaggeration to say that taking on this kind of debt could take a bad financial situation and turn into a total personal finance nightmare.

I’m convinced that the majority of people who take out any sort of guaranteed approval personal loan have no idea what it could do to them long term. The interest rates are so high that you can end up paying back two or three times the original loan amount within just a few months. This isn’t a house we’re talking about. It’s an unsecured loan you’re probably borrowing to pay some utility or medical bills.

Even if you are able to pay back the loan on time, this kind of financing has been proved to be habit forming. I read a government report that said the majority of short-term borrowers (ie payday loan situations) use this kidn of financing multiple times.

So let’s say you take out a $1,000 guaranteed approval loan that costs $100 in fees and interest. You pay it back in two weeks. You wouldn’t be out of the ordinary if you did this five times in the course of a year. That’s $500 in interest and fees paid on…nothing! You didn’t borrow money for any kind of appreciating asset. You borrowed money to keep your lights. Yes, you need lights, but they shouldn’t be paid for with a triple-digit interest loan.

How to Avoid this Type of Loan

It’s simple, really. The only time people borrow money this way is when they’ve run out of cash and have pressing bills. The simple solution is to have an emergency fund in the bank. Yes, conventional wisdom say says you should have six months worth of expenses in the bank, but that’s a ludicrous number for most people.

If you maintained a small personal slush fund of even $1,000 you’d probably save yourself from ever having to borrow awful payday loans again.

It won’t be easy to build up your $1,000 reserves, but if you take a long term view you can get there. Work a few hours of over-time. Do some odd jobs for friends and family. You will be amazed how much better you sleep at night with a little rainy day fund in the bank.

Unsecured Signature Loans

Good credit is an asset. You already know it makes home and auto ownership possible, but you may not have considered the fact that your high fico score can bail you out in an emergency. See, the only way you’re going to get unsecured signature loans is with a good credit score and a well-established credit history.

The amount you can borrow, of course, depends on more than your credit score. You could have a perfect 850 Fico and lenders still won’t give you an unsecured signature loan for two reasons: inadequate income and/or excessive debt.

A loan is always extended based on the most basic assumption: your ability to make timely payments. Lenders need to know the new payment created when they give you this loan won’t be the proverbial straw that broke the camel’s back.

First, they’ll look at all your outstanding debts. They’ll weigh your total current payments plus the payment you’d have on the new loan, weight it against your verifiable income, and decide whether you can still afford the additional debt.

Of course, if you have very little debt and a relatively big income, you should have a clear path to a bigger loan.

Be careful. Often the fast track from being a good credit borrower to a terrible credit borrower is taking out guaranteed loans no credit check in amounts you don’t need just because the lender is willing to give them. Interest is a powerful, terrifying financial tool. Get yourself out of the mindset that a loan is fine just because the bank says you can afford the payment.

Develop a mindset of debt avoidance and a habit of frugality and saving. You can’t go wrong.

Can I Get Unsecured Signature Loans with Bad Credit?

Well, no. I guess I can’t say no without qualifying it. I should have said if you have terrible credit the only signature loans you might get are instant decision unsecured personal loans. That’s right – a payday loan with all the trimmings: very short repayment terms (two to three weeks) and crazy fees (often up to $10 per hundred borrowed).

You DO NOT want these loans. If your credit is bad please do yourself a favor and get some kind of secured debt to help you rebuild your credit. You literally cannot afford to borrow many of these payday-type loans. They’ll ruin your life.


Georgia Payday Loans: Reasons for Abolishing

Today, Georgia is one of the many states in the America which has abolished and prohibited payday loans. If you think that you might need payday loans in the future, do not live in Georgia. You will never be able to find Georgia payday loans now. Payday loans can be very helpful to people who are in dire need of money to get them through until the next payday. They can be the salvation for people who need money urgently.

However, payday loans are frowned upon today. This is because of the fact that payday loans are very notorious for high interest rates and terms which are only favorable to the lender and not the borrower. Payday loans started appearing in 1920. Today, payday loans are small loans which are unsecured. However, the amount of money you can get from it is very limited. The usual maximum amount is only $1,000. The terms are short and it is only usually 14 days. Payday loans are also regulated by the government and it is a loan which has laws governing it.

These instant approval unsecured loans have a lot of disadvantages although it can help people who are in dire need of money. Payday loans are more expensive than other types of loans. It is crucial that a borrower settle the loan on or before the maturity date. Most people do not know that the annual percentage rate of payday loans is about 400 percent and that is indeed a very big amount compared to other loans. It is also not uncommon to find payday loans with interest rates as high as 5,000 percent. A lot of payday loan companies are also very deceptive. They do not disclose all the information to customers.

A lot of people find it very difficult to get out of payday loans legally because there are so many loopholes. If somebody you know says “I need 3000 dollars fast”, warn them about the possible problems they can face with unsecured signature loans.

Guaranteed Signature Loans

By definition, a signature loan requires nothing more than your name on the dotted line for approval. But “nothing more than your signature” means “we’re not asking for collateral.” A signature loan doesn’t require collateral. But why doesn’t it require collateral? Because the applicant’s credit score and credit history are so good that the lender isn’t concerned about losing his money. Your word and your track record are enough to give him that peaceful feeling that he’s going to get back all the money he lent you, plus a healthy amount of interest.

In other words, getting a guaranteed approval signature loan requires good credit AND a well-established history as a borrower. If that’s not you, well, you’re going to find it nearly impossible to get a guaranteed signature loan (or any loan). We are NOT talking about guaranteed loans for bad credit no fees.

How much could you borrow with this kind of loan? Assuming you have great credit, the amount you can borrow will be based strictly on your income and debt to credit ratios. More income, bigger loan. More income, lower total debt in your name, bigger loan. Average income, higher credit balances, smaller loan.

The more debt you have, the more your current payments eat up your income. If a lender is going to guarantee approval of a signature loan, they’re going to have to see that the payment on the new loan, combined with your current loan payments, won’t take you into the red and jeopardize your ability to make payments on time. See, these kinds of lenders know the payment on your newest unsecured loan will be the very last one you think about paying if you experience a serious downturn in your finances. Before you bother with them you’re going to make sure you keep your house and car payments as current as possible. Then you’ll take care of your credit cards (because you don’t want them closed), and then finally you’ll think about these outstanding personal loans.

All of that makes the lender very nervous about you, and the only way to calm their nerves is to show that not very many people are ahead of them in line when it comes to monthly payments. Lenders typically want to see that your new payment, combined with all other monthly loan payments, total less than approximately 40% of your gross income. Do the math yourself before you go apply. If you find your income isn’t going to be high enough to meet their requirements given your debt load, don’t bother with the application. After all, maybe it’s a clue as to whether you should be guaranteed loans no credit check at all if the bank isn’t very excited to lend you the money.

Guaranteed Loans for Bad Credit with No Fees

You don’t want to pay fees. Fine. There are online lenders who will accommodate you, but you have to know they’re going to get their money somehow. So if you don’t want fees you should be prepared for other aspects of the loan to be even worse.

Do the math:

If a lender says they’ll give you guaranteed signature loans with bad credit and no fees, how much can they earn on a $1,000 loan?

Loan Amount: $1,000
Fees: $0
Loan Term: 21 days
Interest Rate: ?

Why the question mark next to interest rate? Because even though they may quote you 10% of the total loan, if you factor in the term (21 days), you’re actually going to be paying triple digit annualized interest.

“No I’m not!” you say defiantly. “It’s not like I’m going to hold this loan for a full year.”

I’d hope not, but the statistics are not in your favor. The majority of people who borrow guaranteed personal loans for bad credit do NOT pay them back within the original term. C’mon…think about it. You’re borrowing $1,000 with the expectation of paying it back in three weeks (and sometimes less). That means you’ll need an extra $333 per week just to pay back the principle. But there’s no way you’ll have less than $150 interest due on that loan, so the reality is you need more than an extra $400 per week just to pay back this loan on time. Do you even make $400 per week?

Sure, you might be taking out unsecured signature loans just to cover you till payday, and your next paycheck might pay off the principle, but what if it doesn’t? Or what if you have to repair your car, water heater, or buy a new washing machine with the loan? Then you can’t zero it out with your next paycheck.

People wonder why personal lenders charge such crazy fees and interest rates. I’ll tell you why. It’s because a high percentage of their borrowers don’t repay their loans. So they use high fees and interest to recoup as much cash as possible before your typical payday loan borrower defaults.

So rather than looking for guaranteed loans no credit check, let me encourage you to evaluate what got you into this position in the first place. Examine your income, your personal budget, your spending patterns, and try to put yourself on the path to never needing this kind of horrifying financing again.

Do You Really Need A $25,000 Personal Loan?

According to Lending Tree, a personal loan can be used for anything from debt consolidation, a wedding, a vacation, or other personal uses. There is technically no restriction on what  exactly a personal loan can be used for, but sometimes people opt for a home equity loan, or an auto loan, for certain other expenses.

There are some risks to personal loans, however. While it’s great to think about being able to buy virtually anything with a $25,000 personal loan – from a boat to a vacation to dirtbikes – its important to know that they often carry much higher interest rates than other loans. We calculated a 60-month, $25,000 personal loan in New York at over 10%. As of April 2011, a 30k Home Equity Loan at Bankrate was a little over 7%; auto loans are typically 2-5% depending on your credit and the make/model of the car. The reason for this is that personal loans are not secured by assets like a home, automobile, or other collateral. In order to cover the risk they take by lending money, the bank needs to charge a higher interest rate.

Other Alternatives To A $25,000 Loan

Consider a credit card and home equity line! According to the Federal Reserve, you CAN use a home equity line of credit for expenses such as education, medical bills, and other things. Most people use their home equity line for home remodeling and repairs, too.

Credit cards can be a good way to avoid a high interest rate on a 25000 personal loan, too. Depending on your credit score range, your credit cards may have a lower APR than what you would be approved for on the personal loan. But if you have a low Fico score, you may want to check out your options with Lending Tree bad credit. They’re not just a perfect credit mortgage provider.

Always stop and think before you go applying for a loan of any kind – chances are there are other creative solutions that you can take so that you can avoid a higher interest rate and another monthly payment to make.