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Finance

All You Need To Know About Personal Loans

Loans are of several types. It can be classified according to the needs of the person. Suppose, if one wants a loan for his/her home, he/she should take a home loan. If the person needs money to fulfill the educational needs he/she shall be allowed the educational loan. Other types of loans are personal loan, payday loan, etc. However, when one is considering to take a loan he /she should keep in mind that the interest rates for all the types of loans do differ. In this article we shall be dealing with the personal loan and will try to find out how one can get a loan.

A personal loan is something that you might need at any moment for buying anything of your choice. This can be a television, a fridge or even a designer dress that you have come across in the shop. This can be the medical expenses that crops up immediately without any notice. Anything and everything can fit into the personal loan bill.

To apply for a loan one needs to have a good credit. This will make the loan approval process quicker. If one is having a bad credit score then the chances of getting a loan are much less. So, when you apply for a loan make sure you have a clean credit report.

A bank would take time to approve for a loan as they check all details before finally saying you “Yes”. If you want a loan fast you can apply to those financing institutions that offer loans quickly. The crucial point of choosing these organizations over the banks is that they might charge high interest rates, although all the some are an exception in this case. And of course it is better as the process is fast and hassle free when you are really in need of money.

If you are applying for the loans please be sure to go through the terms and conditions of the loans. This will make sure that you are aware of what you are agreeing to pay.

What are the things you need to be careful about?

Be careful about the repayment terms. We advise you not to go for long term loans. There are certain companies which charge hidden amounts and you will never know what you are paying for. So, make sure that you do not fall into their trap. Always take a bill when you pay them so that you have a proof of the money you have paid.

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Finance

Know More About Personal Loans

Planning to get your house renovated but do not have the sufficient amount of money to do it? With the concept of personal loans, you do not need to worry about this anymore. Personal loans are offered by the banks which enable you to use the amount for personal use – like for paying off an immediate debt or for clearing an unforeseen expense.

Though the concept seems to be very lucrative, getting one approved is not an easy task. In order to be able to qualify for getting such a loan, certain strict norms have to be followed. Thus, if you are planning to apply for one, there are certain points which should be kept in mind.

These loans are not secured: This type of loan does not require any asset to be kept as a mortgage to the bank. However, if one fails to repay the loan the bank has the right to seize any asset be it your property, house or car. However, in most cases, if the defaulter does not have any asset to give in lieu of the loan it becomes very difficult for the bank to get back the money. This is one of the major reasons as for why it is difficult to get a personal loan approved. In such a situation, the bank can file a legal suit against your name to carry out the legal proceedings.

They have a fixed amount: The amount of a personal loan depends entirely on the borrower’s income and also on the lender’s discretion. It is based on the borrower’s credit score. A credit score is a measure to get an idea of one’s income which enables the lender to decide upon the amount to be given as a loan. Some of the banks have limited the amount they offer as a personal loan.

The rate of interest is fixed: The interest rate is decided based on the borrower’s credit score. In an ideal situation, the interest rate should be less which would enable you to repay a loan at a much lower cost. The most important fact about personal loans is that the rate of interest remains fixed during the entire tenure the loan. However, some banks offer loans at variable interest also, which makes it difficult for the borrower to repay it.

One must always try getting the loan from a bank in which he has an account. This is because it would be much easier to get the loan approved. One must also be careful while applying for one as there are many scams which keep taking place. One must also explain the bank about his/her need for money, in case they can offer something much better.

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Finance

Home Improvement Loan or Personal Loan

Personal Loan or Home Improvement Loan? That is the question.

We love decorating our houses.

And there are phases in our lives when maybe we’ve spent too much time watching Food Food or TLC and thus have built castles in the air of visions of turning our kitchen into a chef’s paradise. Or perhaps our master bath is just one shower away from a disaster. For we really do love Italian tiles on our bathrooms.

And if so, then cheers, you’re not alone. Recently, the Joint Center of Housing Studies for Harvard University has investigated and reported that the home improvement industry should continue post record-level spending in 2016. For many people, this means borrowing money to pay for the well planned home improvements and home decorating schemes.

Now, one is ought to face a tough and difficult and perhaps hypothetical question.

So, which home improvement loan is right for you?

Many homeowners and homemakers look to tap the equity in their homes. But home equity loans or home equity lines of credit may not be possible or very practical for some borrowers. In that case, one should consider using a personal loan.

While it is known that one can use a personal loan for a variety of reasons, there are a few reasons why a personal loan can have advantages over home equity loans when it comes to a renovation loan, to be specific.

The application process for a personal loan is usually quite simple and quite straightforward. Your own financial situation-for example, your credit history and earning power; this is often the main deciding factor for whether or not you will be able to get a loan, for how much, and if so, at what interest rate. Some personal loans even boast of having no origination fees.

However, home equity loans or home improvement loans on the other hand, are akin to applying for a mortgage (in fact, home equity loans are sometimes called second mortgages). How much you can borrow depends on several factors, including the value of your home. Because you can only borrow against the equity you already have (i.e. the difference between your home’s value and your mortgage), you may have to arrange – and pay for – a home appraisal.

Let’s now see this case in the case of a home improvement loan. With a home equity loan or a home improvement loan, you can only borrow against the equity you have – which, as a new homeowner, is probably not much. You maybe have not had enough time to chip away at your mortgage and the market has not yet elevated your home’s price. A personal loan lets you start home improvements regardless of how much equity you have. So, that is one benefit of availing a Home Improvement Loan.

With a home equity loan, you use your home as collateral, which means an inability to repay could result in your home going into foreclosure. While failing to pay your personal loan carries its own risks (like ruining your credit and credit score), it is not tied directly to the roof over your head,like a gun on your head. Therefore, it is better and safer to avail of a personal loan.

So, if we were to decide, which one is better and safer and more suitable?

Personal loans may not be right for every borrower looking for a home improvement loan. For example, if you have significant equity in your home and are looking to borrow a large amount, you might be able to save money with lower interest rates on a home equity loan. Also, interest payments on home equity loans and lines of credit can be tax deductible under certain circumstances; but that is clearly not the case with personal loans.

On the other hand, personal loans can make sense for these types of customers:-

• Recent home purchasers.

• Smaller home improvement loans (e.g., bathroom or kitchen as opposed to full remodel)

• Borrowers in lower home value markets (if your home value has barely budged since you moved in, you may not have much equity to draw on for a home equity loan).

• For those who value ease and speed.

• Borrowers with great credit and cash flow.

While home equity loans and lines of credit are a good source of home improvement money if you have already built up equity in your home, a personal loan may be a better alternative if you are, say, a new homeowner and need to take care of a few updates to make your new home, just right and perfect.

Concluding, we conclude that a personal loan is a better option than a home improvement loan,anytime.

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Finance

Improve Your Poor Credit Score and Secure Yourself a Loan

So you are thinking of getting some extra money to make some urgent home repairs, the porch door needs replacing, along with a new hot water system. Unfortunately you do not have the money in the bank, but neither do you have a secure porch door or any constant hot water.

Have you considered personal loans? A lot of people take out personal loans for this type of repair. Car repairs and even holidays are used by people with their newly acquired finances. Most people have heard that a poor credit score is not a good thing (However even those that have a poor financial history can still get loans). But how do you make a good rating?

One of thing major pieces of advice from experts, before you apply for finance it is best to get a credit report completed from a reputable source. This will give you an idea of the chance of getting your application approved. In the United States of America there are three levels of credit rating, basically the higher it is the better it is.

An excellent rating is above 760, a good rating would be between 700 and 759 and a poor rating would be between 640 to 699. if you are at the top end, 760 and above then there is no point in making your rating any better. However with other ratings it is worth trying to improve as it will help your chances of succeeding in the application.

There does seem to be a bit of a chicken and egg situation sometimes, you need finance but have a poor score,but to improve you need a lender to give you a chance. Well, luckily there are things that you and your family if you have one, can do to improve your rating.

Having a poor rating does not mean you have to be stuck with it, starting to pay the bills on time instead of late or not at all will start to get you on the right path. Some lenders will still give applicants loans even with a low score, but the total given will be lower than usually and the percentage rate will be considerably higher. So you will pay more over the period of the finance.

Families can help too. If a member of your family has a good rating then some credit card companies can add you to that family members credit card as an authorized user, this will help with any poor credit score. Also having a family member with a good rating co-sign the loan could help you get what you need.

Finding the correct lender for your score is a good way to make sure that you are getting what you deserve, if you have a high score you deserve some of the best deals on the market. Instead of going to your bank or card company you can go online and search for a matching company. Companies like this are a good place go to make sure you achieve the best deal.

What are a matching company and what do they do? You enter your details on their online program and your information will be fed to several of their approved lenders, in turn the lenders will then return to the matching company with a list of loans that they are able to offer.

Once the offers come back it is then up to the applicant to choose one and complete all the necessary paperwork. A check will then be received within a matter of days and your new boiler and door fitted soon after.

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Finance

Understanding Online Loans

Online loans have become the latest fad. Many people love them due to the benefits that they come with. Unlike the traditional loans that require you to wait for weeks or even months before you receive them, Online loans are released in your account immediately the loan lender certifies that you are qualified.

How to get the online loans

Getting the loans is easy. All you need to do is to visit the website of the lender and make your application. To increase your chances of getting the loan carefully read through the requirements required and provide them.

The cool thing is that online loans are one of the easiest to get. In fact, when you apply for them, the lender will give you the loan even if you have bad credit. All the lender wants to know is whether you can afford to pay. To prove that you can repay the loan once it’s given to you, you should provide a bank statement or proof of employment.

Benefits of online jobs

As mentioned above, many people are going for these loans due to the comfort that they come with. Some of these advantages include:

Ease of access: This is a no brainier. As mentioned, you don’t need a stellar credit score to get these loans. As long as you prove that you can afford to repay the loans. You are ready to go. This is unlike with the traditional loan lenders that will require you to have a good score to get the loans.

Also, you don’t have to travel to your bank to get the loans. All you need is a computer and internet connection, and if the lender certifies that you can repay the loan, he/she will send you the money to your account instantly.

Payment options: Unlike with traditional loans where the repayment of the loans is decided by the lender, with online loans you agree with the lender on the amount that you will be repaying. In addition to this, in the event you lose a job, you can contact your lender and adjust your repayment.

Factors to consider when getting the loans

When you are borrowing the loans, you need to consider a number of factors for you to get the right ones. These factors include:

Amount to borrow: How much money will you be borrowing? The amount allowed differs from one lender to another. You should do your research and find a lender who will give you an amount that you will be comfortable with.

Repayment period: This is the amount of time that you need to repay the loan. Again this differs from one lender to another. The cool thing is that you can reach an agreement with the lender and settle at an amount that both of you are comfortable with.

Interest charged: The loans are known for their high interest, but this doesn’t mean that you have to pay high interests all the time. Before you take a loan, scout for lenders with the best rates.

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Finance

Searching for a Personal Loan Just Got Simplified

Figuring where to get a loan with the best rates isn’t easy, but it’s still possible even after the credit crunch the United States has experienced in recent years. With a bit of research and persistence, it’s still possible to get a great personal loan. Many loans are still ridiculously high in spite of the Federal Reserve’s influence on rates which they’d hoped would trickle down to each and every loan type product.

It’s smart to know what determines interest rates in order to strike a better deal when wondering where to get a personal loan. A bit of research will help a person learn how to get the best rates on the following:

1. Mortgages

2. Lines of credit

3. Home equity loans

4. Auto loans

5. Credit cards

6. Student and personal loans

About Mortgages

There’s a lot that affects mortgage rates, and of course there are several different types of rates from fixed-rate to adjustable. Fixed-rate are always in relation to the current state of the economy. They are also subject to the expectations of the investor. They usually have long-term interest rates via treasury note as opposed to short-term personal loans that are regulated by The Fed.

ARMs or adjustable rate mortgages are affected by short-term rates. For those looking to find where to get personal loans at the best rates, they should prepare a portfolio that shows stable income, and a great credit score. A score of 740 or more is best. If they have a down payment that will also help, and cash reserves on top of that makes them a prime borrower.

Of course, that doesn’t mean there aren’t great rates for those who aren’t considered “perfect” borrowers. Making a larger down payment or borrowing less money will help get a personal loan, be it for a mortgage or other purpose, that’s a much lower rate.

Another way to reduce rates when searching for where to get personal loans is to pay an origination free up front, or even what are called discount points. This is simply a percentage of the loan amount that helps decrease the interest rate. Of course, this means one will pay more at closing if mortgage related.

How much these points lower the mortgage or rate of the loan depends on the market at the time of the loan. It’s smart to pay points because it reduces not only the interest for the total life of the loan but also lowers the monthly payment. Take into account how long the home will be owned to figure out if it’s a smart move. Most homeowners sell or refinance within 5 years of ownership, to give an idea.

Home Equity Line of Credit

Many prefer to take advantage of a home equity loan in lieu of trying to get a loan elsewhere. In this case, borrowers get money right away and in a lump sum. The loan is set at a fixed interest rate, which allows them to make the same payment every month for the entire loan term.

These type of personal loans are lines of credit that let the borrower take out money periodically when necessary. The interest rate can be different, depending on what is called the prime rate. The borrower may have the choice of making interest-only payments over a set period of time.

In any case, to get the best rate when looking for where to find personal loans, it’s best to be aware of one’s credit profile and secure a loan whenever interest rates are at their lowest.

Competitive rates and flexible terms are a click away, and you’ll have money from trusted lenders deposited directly into an account of your choosing. Applications are free, then fees and loans are up to the individual and the provider.

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Finance

Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.

NO CREDIT

No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

  • Student Loans
  • Secured credit card (includes a down payment amount)
  • Being added to a parent’s or spouses good credit: card, car loan, etc.

LOW CREDIT

Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.

INCOME

Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.

PURPOSE OF THE LOAN

Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.

BLACKLISTING

If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.

NO CREDIT CHECK LOAN

If you need a loan now, but are concerned that you might not qualify for a personal line of credit, you can qualify for a No Credit Check Loan. You could be on your way to a better financial future in no time.

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Finance

Personal Loan and Its Different Advantages

A personal loan is an unsecured loan which is offered to a consumer for catering their various personal needs such as the renovation of a house, marriage, home appliances, buy vehicle amid others. This is offered after verifying one’s ability of paying especially the income source and also according to their credit history. A nominal processing fee will be charged and the sum as per a person’s paying ability will get credited to their account. In fact the loan payment is made via fixed installments which also includes interest and for fixed time periods. The icing on the cake is these days personal loans are a smart choice as one do not require going through a lot of formalities and tedious paperwork. Most of the financial institutions and banks offer personal loans today and the rate of interest is also quite reasonable.

Discover the different benefit

  • Available easily- to get a personal loan is no longer a challenging affair. It is offered by almost all financial institutions and banks at a reasonable rate of interest. Compared to other loans it is convenient and easy to get
  • No middleman or agent involved- for availing a personal loan one will not require taking the help of an agent or a middleman. This will avoid unnecessary expenses and delays. A person can approach the financial institution or bank for the purpose directly
  • Unsecured loan- this is indeed an unsecured loan. Here no collateral security is needed for availing the loan. In fact, all that is needed is one’s ability of paying back the money.
  • Less processing time- because it is accessible devoid of any guarantee or security the processing time needed to get this is naturally less compared to other loans
  • All purpose loans- in this form of loan it is not compulsory for a person in specifying the reason for which they will be using the money.
  • Minimum paperwork- to get a loan will not need any asset verification or other forms of certificates and proofs which include ample paperwork as none of one’s property is mortgaged
  • Offers and schemes- different financial institutions and banks keep announcing offers and special schemes on personal loans, especially for the professionals such as architects, doctors, chartered accountants and the like
  • Amount and tenure- these loans generally are provided varying from Rs 15000 to Rs 20 lakhs differing from one bank to another. The repayment can be made through EMIs

The bottom line is, rather than borrowing money from a credit card it is always better to choose a personal loan as the rate of interest is comparatively lower. So reap its utmost benefits.

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Finance

Instant Travel Loans & More About O’Spicy Calicut

Travel loans have become a convenient way to fulfill all your travel dreams without having to worry about money. This is because you can easily opt for quick personal loans from online lenders and pay back over time without compromising on your monthly budget. This week, I would like to tell you more about a quaint coastal town in Kerala and why that travel loan would be worth it.

A land where whiffs of ‘Sulaimani’, the local black tea follow you around! Where the legendary ‘Kozhikode Biriyani’, Banana Chips and ‘Kozhikode Halwa’ hold their own amidst the greatest of Asian cuisines! Where you can soak up the Mystique Malabar and become one among them in no time at all…

Here’s your answer if you are wondering why you should endure a 5 hour journey from Cochin to Calicut. And that is not all. You can just congratulate yourself on stumbling upon an offbeat experience oozing with warmth.

Forever a flourishing spice trading coastal town, Calicut, the erstwhile seat of the formidable Zamorin Empire has a particular draw- the Kappad beach to trace the trail of Vasco Da Gama’s first step to the nation back in 1498- something that changed India’s destiny drastically for hundreds of years to come. Or hop to Beypore to watch colossal shipping vessels called ‘Urus’ being manufactured. More than touristy, Calicut is more of a break from your regular Kerala trip that encourages you to do nothing but absorb the friendliness & serenity flowing all over.

A hunting ground for Ayurveda treatments and ethnic spices, both a terrific hit among the travellers and locals alike, you’ll feel the small town getting bigger and bigger in your eyes. If you are a fan of quietude, we suggest you visit Harivihar Ayurvedic Retreat, a mere 10 minutes from the main town by rickshaw. Calicut Ayur on the banks of Iruthully River too is an idyllic choice. These retreats are so designed that the moment you step inside, the outside noises seem to magically disappear. Quite tempting, isn’t it, to sign up for a massage session?

If interested, you may check out the local Kerala Martial Arts Centre nearby. Clangs of swords and urumi (a very traditional & even more dangerous weapon) add to the surreal experience watching the fighters moving with frightening agility.

A visit to the Theeram Nature Conservation Society around 30 km away from the north of Calicut can shake awake the hidden naturalist in you. The story of its inception is that inspiring. Gobsmacked to find that the Olive Ridley turtles, a part of their staple food, a bunch of local fishermen of Kolavipuram shore to rig up a small turtle hatchery. If you’re visiting Calicut during November to December, you may catch sight of female turtles appearing on the beach to lay eggs, which will hatch in 2-3 months.

People jokingly say that Calicut has more textile shops and eateries than natives. Though a huge exaggeration in itself, you will kind of agree as you walk past oodles of such enterprises. The popular ‘Mittayi Theruvu’ (Sweet Meat Street), close to Mananchira Square is a lively testimony to that. Wandering amidst the street with the swirling mass of busy people can consume your entire afternoon. Its narrow lanes seem to course with the din in tiny sarees and chappal shops punctuated with bakeries that are essentially ephemeral Pandora boxes of pleasures.

As you raise hands to bid farewell to this small town, you will muse that getting off the beaten path was worth it.

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Finance

The Benefits Of Getting A Personal Loan

A personal loan is usually not secured. It means collateral does not need to be provided by you when you borrow. The loan is offered to you by the lender on the basis of your credit and qualifiers. You can easily get the approval of loan, if you have a good credit. A lower interest rate can also be offered to you. Visit a financial institution or search online to get a personal loan.

Here is a list of some of the benefits of such a loan:

  • Lower interest rate – If you have good credit, then personal loans with lower interest rates can be availed by you. Around 15% APR on a credit card balance is paid by the people with lower credit card balance. But if you have good credit, you have to pay only 6% APR. While making a big purchase, it is considered as a big difference.
  • Use for many purchases – Your cash can be used by you for making any purchase. A loan of this type can be used even for purchasing a vehicle, starting a business or renovating your house. Restrictions may be placed by other types of loans on the usage of fund. But the conditions of using a personal loan are flexible and can be used for any purchase.
  • Consolidate debt – High interest debt can be consolidated by using a personal loan. Several smaller debts with high interest such as credit cards and student loans can be paid off by using a larger loan. Money on interest can be saved if you consolidate your debt by using this loan. Your debt repayment plan can be managed in a better way by combing several loans in one place.
  • Smooth your cash flow – Your cash flow can be smoothness by using a personal loan. A personal line of credit can be got by you, by using your personal loans. You have to pay a low interest rate in this alternate way of use. An emergency fund doesn’t need to be raised for future. The borrowed amount can be repaid by accessing your line of credit.
  • Boost your credit score – Your credit score is counted depending on your different types of accounts. One type of credit is represented by credit cards. In this case, you can use your credit score to handle your loans. Your score can be boosted slightly by adding installment loans in your credit report.

Thus, save a huge amount on all your purchases by using a personal loan. Always remember to compare different loans before borrowing any sum.