Loans Tips

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Be Honest on Your Personal Loan Application

If you're filling out a personal loan application, you should know right away that you face an uphill battle if you don't have collateral to back up what you're borrowing. Unsecured personal loans require excellent credit, a good income, and funds in the bank. In other words, most of the people who can qualify for unsecured personal loans don't need them, and the people who need them aren't able to get them.

A personal loan application can also be used for a secured loan, too. For example, if you have a piece of land that you already own, and you buy a manufactured home to put on it, you don't have to finance that home as real estate. You can fill out a personal loan application because the home is technically personal property, not real estate. Since that doesn't fall into the category of unsecured personal loans, you have roughly as much chance of being approved as you would for a car loan or a real estate loan. Make sure you're honest on your personal loan application, and clear up credit problems before you apply. That will give you the best chance of being approved.


Getting A Small Business Loan

Business sometimes find getting small business loans to be a tall order, however, it is not impossible. Banks are looking for specific types of information from its potential borrowers. Provide this information and a small business loan could be made available to you and your business.

A business plan is required to apply for a business loan from a lender. The business plan should outline your business idea, include at least two years of projected financials, a detailed listing of how the borrowed money will be spent, marketing information and the resumes of the principal owners of the business. The plan should also outline how the business intends to repay the money the bank loans it.

Another important piece of information is how much the business intends to borrow. This amount should be calculated by creating a list of all items that are needed to launch the business, such as equipment, supplies, vehicles and buildings. Wages should also be included in this list, and as a rule of thumb, a startup business should have at least six months of salary in reserve.Be careful that the amount you request matches the amount you stated you needed in the business plan. Banks want to make sure all the money is accounted for.

Lastly, prepare your presentation for the loan officer in advance. Be enthusiastic about your business and be prepared to answer the questions the loan officer asks.


The Best Personal Loans for Your Needs

Overall, the best personal loans are the ones that suit your needs, but it's a little more complicated than that. If you're going to be getting a personal loan quote, don't work with just one lender. In order to get the best personal loans, you'll want to shop around a bit and get a personal loan quote from several different companies. That can put things in perspective and give you a better idea of what's really the most important to you.

What matters to you could be very different than what matters to another person who's getting a personal loan quote. It could be the loan terms, the length of time you'll have to pay, the interest rate, the down payment, or anything else that will affect your finances. The best personal loans are loans that you feel comfortable taking out. They're clear about what obligations you have to meet, and your personal loan quote gives you the details, so there aren't any surprises later. Make sure you're getting a personal loan quote from each company you're considering, so you can narrow down your choice from the best personal loans to fit your situation.

Why is personal finance news a research tool?

3 Reasons to Pay Attention to Personal Finance News

Paying attention to personal finance news is a great way to figure out the best time to get student loans and auto loans and learn how to pay them off.

  1. Personal finance news keeps you in touch with current interest rates. This can help you decide the best time to get your new loan.
  2. Personal finance news lets you in on consumer trends that can affect rates and the issuing of credit. When credit is tight, it's reported in personal finance news. It's harder to get loans during this time, so you can save yourself the trouble.
  3. Personal finance news lets you in on tax advantages given for certain purchases and loans. When the IRS develops new tax deductions for certain purchases and loans, it's generally reported in personal finance news.
So remember, use all the resources available to you when you decide the time is right to look for a loan.

How can I improve the interest rates I am offered?

Improve Your Credit, Improve Your Loan Rates

When you compare auto loan rates, your past behavior will have a huge impact on the rates that you actually qualify for. No matter what great rates you're able to find on the internet, you'll only qualify for those that are offered to people with credit ratings that are similar to yours.

The best auto insurance rates will be given to the people with the best credit history. If your credit rating is not stellar, you'll be offered interest rates that are not as attractive. So before you begin to compare auto loan rates, pull a copy of your credit report and attempt to improve it as much as possible to help increase your chances of getting a good rate.

2 Ways to Improve Your Credit

  1. Look for mistakes. If there are mistakes on your credit report, it could be lowering your score when you don't even deserve it.
  2. Pay off debit balances. High credit card balances will lower your credit rating. Make a bulk payment to your credit card company to lower your balance and give it a couple of months to have an effect on your rating.

Where should I secure auto loan financing?

Where Should You Secure Financing?

Paying for bills, purchasing a new car, buying a new house or just having some extra money may require you to take out a loan. However, your credit situation may be negatively affected when you seek out this financing. Most financial institutions will look at your credit history and rating to determine if they will grant you a loan. Even if they don't deny you, you may pay a higher interest simply because you have a poor or no credit history.


Banks come in all shapes, sizes, and different requirements to receive financing. Even if you have a poor credit history, shop around to try to get the lowest interest rate you can afford.

Credit Unions

Credit unions are great for people who have a poor or no credit rating. If you have a family member who is in a credit union, you will have an easier time becoming a member.

Car Dealerships

Some car dealerships offer loans to people; however, they will have higher interest rates than other places, such as credit unions, for people with poor credit history. Seek out all alternatives if the rate is just too high.

Beware of payday loans and instant credit establishments. These places automatically approve you no matter what your credit history is. They often have interest rates that are so high that you will be paying two to three times the amount of what you originally borrowed.

Why not just get a loan through the dealer I buy a car from?

The Importance of Comparing Auto Loan Rates

Many consumers go shopping for a new automobile without ever stopping to compare auto loans. They simply find the vehicle they want to own and then allow the financing to be handled by the dealership selling the car. Unfortunately, when you don't compare auto loans, you run the risk of getting a loan with a high interest rate when you could have done much better.

Instead of letting your dealer secure your financing, why not compare auto loan rates and then secure a loan before you even buy your new car? That way, you have the benefit of securing a great loan at an affordable rate without the pressure of needing to make a quick decision. You can go through your current bank or credit union or compare rates online and choose the financial institution that has the best rate--even if you have no other financial relationship with them.

So don't put the fate of your financial future in the hands of your auto dealer. Instead, take it into your own hands and secure your financing before you buy.

Should I choose a private or federal lender?

Private Student Loan Providers vs. Federal

When comparing student loan providers, one of the major decisions you'll have to make is: should you choose a federal student loan provider or private provider?

Private student loans are often issued to parents of students. They're private loans issued by banks with varying interest rates. Approval and interest rates are dependent on the results of a credit check, and there are few limits to the amount of money that can be borrowed for tuition and living expenses. Private loans also allow co-signors, which can make the interest rates even lower if the co-signor has good credit.

Federal student loans don't require a credit check. If the applicant is a low-income student, the loan can be subsidized, which means that the federal government will pay interest while the student is enrolled in school at least half-time. The government places reasonable limits on the amounts that can be borrowed each year and the variable interest rate has a cap that it cannot exceed.

So keep these points in mind before you choose your student loan providers to make sure you get the best loan for your money.

Should I consolidate my student loans?

Consolidating Student Loans

Once you graduate college and begin working in "the real world," it doesn't take long to realize how cumbersome those student loans that paid for your education are. These loans were great when you didn't have to pay them back and when you were spending them on education, but now that you have to go to work everyday and write several checks each month to pay them, they can be quite a pain.

A student loan consolidation calculator is a tool that can help you find out what a difference a loan consolidation could make in your interest expenses on your student loans. By consolidating your loans, you can reduce the rates of some or all of them and save thousands of dollars each year on interest, all while making your monthly accounting easier by reducing the number of checks you need to write. This can also save you money because you run a reduced risk of forgetting one of the loans and triggering a late fee or interest rate increase.

So when you notice that student loan rates are lower than the rates you're currently paying, try a student loan consolidation calculator and find out the difference it could make in your life.

How will I know if I can actually afford an auto loan?

Auto Loans and Spending

One of the things you should be considering when you compare auto loan rates is whether or not you can actually afford an auto loan. Being able to afford an auto loan is not just about making sure that you have enough income each month to write a check out to your loan company--it's also about making sure that you're using your income in a responsible way.

For instance, if you already have high-interest debt that you're just making minimum payments on, then you might want to rethink the idea of an auto loan. Instead of creating more debt and another obligation, you should consider making more aggressive payments on the debt you have and paying it off more quickly.

Another consideration is savings. If you're not saving any money in an emergency or retirement fund or are saving a very small amount, the money you would spend on an auto loan could be better spent on increasing your savings.

Make sure you review your overall spending and the real truth of affordability before you begin to compare auto loan rates.

What is a student loan?

Understanding Student Loans

Trying to find funding for your college tuition can be stressful, especially since you often feel like you're fighting a race against the clock. But don't let that race turn into an excuse for making a poor decision when it comes to choosing the student loan you take. Instead, be sure to give yourself enough time to compare student loans before you commit to one of them.

What is a student loan, really?
A student loan is more than just a vehicle to get you from class to class this semester. It's a long-term commitment to borrow money and pay it back with interest. Unfortunately, when getting a student loan, many students think that it doesn't matter who they borrow from because all the rates are the same. This is simply untrue, so you must compare student loans to make sure that you get the very lowest rates. There are both federal and private loans that you can take, and you must compare each to determine which offers the most benefit to you. In addition, during your search, you should explore any scholarships or grants you might qualify for.

Is it a good idea to pay off a loan early?

Auto Loan Calculators

If you want to motivate yourself to pay off your auto loan early, one of the best things you can do is to utilize one of the many auto loan payoff calculators available online. While auto loan payoff calculators are mainly used to determine how much you need to pay in order to get out of your auto loan early, they also help you realize how much money you'll save in interest charges when you do pay the loan off, as well as how soon you can be free of payments.

Whether your auto loan is a two-year loan or a five-year loan, you're paying interest during that entire term. When you pay off your auto loan early, you can save thousands of dollars in interest over the years or months that you no longer have a car payment. In addition to saving you money, it allows you to get closer to your financial goals sooner than you would have if you had paid the loan for the entire length of the term. That means you can increase your savings or work on paying off other debts sooner.


Personal Loan Calculators

Prior to using a personal loan calculator, it is suggested that research be completed on the different types of loans. Low interest personal loans which can typically be found through banks and other financial institutions have the best interest rates. It is suggested that an individual be aware of their credit score and verify that their credit report is correct. Their credit score as well as other factors, such as income and existing debts, will determine what loan an individual actually qualifies for. By having this research completed prior to using a personal loan calculator an individual will know what the range of interest rates are for low interest personal loans as well as what they may qualify for. This interest rate will be necessary to calculate information correctly in a personal loan calculator.

A personal loan calculator will allow a user to enter in a series of figures such as yearly income and debts, such as credit cards and existing loans. They will typically give a maximum loan amount, amortization schedule, monthly payment amount and create a timeline to loan payoff. These figures can be manipulated easily through an online personal loan calculator until an individual obtains the figures that fit their financial situation.

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William Pirraglia