9 Tips To Consider Before You Apply For A Personal Loan

If you have some personal needs to cover, you can go for a personal loan. There is a defined term for which these loans are granted. You have to pay off the loan as soon as the term is over. If you want to take out a personal loan, make sure you consider 9 things that are given below.

Personal Loan Tips

1. Opt for the best deal

You can use this type of loan for a myriad of purposes. You can use it to make an investment or consolidate the debt on your credit card, for instance. You may also want to read up on other types of loans to meet your needs.

2. Work the best lender

Some good sources include online lenders, credit unions and banks. The terms and the rate of interest may be different based on the lender you opt for. Therefore, it’s better to shop around and look for one that can cover your needs.

3. Don’t ignore the fine print

Make sure you know the loan terms. Don’t forget to go over the fine print. Based on your budget, you should decide whether the repayment terms are fine with you. Keep in mind that you may have to pay late payment fees as well.

Since lenders get paid in the form of interest, you may have to pay some fee in case of late payments.

4. Your credit rating should be accurate

The interest rate associated with your personal loan may be different based on your credit score. For example, if you have a bad credit score, you may have to pay 20% more in terms of interest. Therefore, it’s a good idea to ensure that your credit rating is accurate.

5. Consider the origination fees

Although you will find some lenders offering lower rate of interest, keep in mind that they may charge a special fee that may increase the interest rate. Therefore, it’s better to use a lender with a high rate instead of one who may add an origination fee.

6. Consider your limits

This is important. Before you apply for a loan, don’t forget to get a better idea of your financial situation. In other words, you should only go for an amount that you can easily pay off.

7. Consider the automatic withdrawals

During your research, you may find that some lenders are ready to offer incentives if you allow them access to your bank account for automatic withdrawal of your loan payment each month.

8. Repayments

If you find it hard to make your payments, you may want to take a look at the other options that you may have. Can you make changes to the loan terms? Is the lender ready for arbitration?

9. Variable rate or fixed rate

Can you choose a fixed or variable interest rate on your loan? Usually, a variable-rate loan allows you to begin with a lower interest rate, but it will involve risk as well. With the rise of the interest rate, the variable rate will also go up. As a result, you will have to make higher monthly payments.

So, you may want to consider these 9 tips before you apply for a personal loan.

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Bad Credit Student Loan – What To Do If You Need One

Are you concerned that bad credit will prevent you from going to college? While it is true that finding student loans with excellent interest rates is easier if you have a sterling credit rating, bad credit student loan aid is possible. For example, the most popular US Department of Education loan, the Stafford loan, assumes that most applicants will be going to college straight from high school, and will not have a credit rating yet. Therefore, Stafford loans do not even consider the credit rating a factor when it comes to qualifications. The same holds true for Perkins loans, which are federal loans designated for the neediest students. The only reason bad credit would interfere with these kinds of student loans are if you have defaulted on a federally granted student loan in the past.

Bad Credit Student Loan
Bad Credit Student Loan

Bad credit student loans are also possible if your parents have better credit than you do. In this case, a PLUS loan, which is granted to parents and not to the student, might be the way to go. US Department of Education student loans (like Stafford and Perkins loans) assume that the parents will pay for a certain amount of their children’s schooling; PLUS loans are intended to cover the amount that the parent is obligated to contribute toward college costs.

Federal funding is a good choice for a bad credit student loan because they are specifically designed to help make college more accessible; therefore, their requirements are much looser than those of most banks and other lending companies. However, if you are unable to secure a US Department of Education student loan, you may need to turn to private loans. If you are planning to graduate in a field with a high earnings potential, like law or medicine, you might have a better chance of receiving a bad credit student loan from private lenders.

None of these choices are either/or possibilities, by the way. You may be able to put together enough money to finance college through a combination of any or all of the above types of loans. Moreover, even if your bad credit student loan is at a very high interest rate, all is not lost. Many student loans defer payment until you have finished college, giving you time to improve your credit rating. At that point, you might want to look into ways to consolidate your student loan at a better rate, lowering your payments to a more affordable level.

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How To Find A Low Rate Student Loan ?

Student Loan Programs are generally designed to offer a low interest rates and very flexible repayment terms than conventional car or home loans. But finding a low interest student loan will require some serious work on your part.
Federal loans, federally guaranteed loans, private loans, parental loans – how do you find the one that’s right for you?

Low Rate Student Loan
Low Rate Student Loan

Federal Student Loan Programs

Your first stop should always be the federal student loan programs. Even if you don’t think you are eligible, it is worth completing the standard application form and submitting it just to see if there are grants or other types of loans you might be able to obtain. Also, most colleges and universities require you to complete the federal form because they use the information it contains to assess your eligibility for state aid as well as their own institutional programs.

During the late 1990’s and the early 2000’s the interest rates on federal student loans were at historic lows. The rates have since moved back up some, but they are still substantially lower than those available through conventional loans.

Alternative Student Loans

There are alternative sources of low interest student loans if you look around a bit. There are many lenders with special loan programs for student needs that are similar but not exactly the same as the more well-known federal student loan programs. Most private lenders offer interest rates that are lower for student loans than for conventional loans, but they are generally still a bit higher than the federal rates. Shop around with several lenders, comparing interest rates, terms and conditions, and repayment requirements.

Despite the slightly higher interest rates of alternative student loans, they are a good option for many people who don’t qualify for enough other aid to fully cover their college expenses. Before you commit to any loan make sure you carefully compare all of your options, looking at long term benefits as well as short term expediency.

 

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5 Important Tips to Get a Personal Loan Approved

You might have a smooth running life, but that in no way means that there won’t be a problem with you. You can face an emergency situation at any point of time. So, for that, you need to be careful enough. A loan at this point of time can be a savior for you. It can help you meet a financial crisis. Through a loan, you are going to get some cash that will be helpful to meet the personal needs. But getting a loan is not that simple. There are certain steps that you need to abide by so that your loan plea gets approved.

Personal Loan Tips

Check the Eligibility Criteria

Most of the loan providers do have an eligibility criterion. Some prefer the borrowers to be within a particular age group, generally between 21 to 65 years. Another thing that they might be checking about you is a minimum amount of earning per year. Maintain that you are not a defaulter on any of your previous loans or credit card bills.

Verify Your Credit Score

A credit score is what the lenders are going to determine before they give you a loan. So, before you apply for the loan check for the credit score so that the loan plea does not get rejected. If your scores are not good enough rectify them. This will increase your chances of getting the personal loan approved and also might fetch you attractive interest rates.

Provide Genuine Details

When you are applying for the loan, make sure to provide all details that are true to the best of your knowledge. The lenders will doubt your intentions and will cross check everything. They might consider visiting you or giving you a call personally to verify the information you have provided. So, giving them genuine details will increase your chances of getting the loan approved.

Avoid Several Applications

Aim for a realistic loan amount that is payable by you. So not ask for huge amounts because in that case the plea might get rejected. Another mistake that most people make is applying at several places. The lenders will doubt your intentions and your probability to get the loan approved will be reduced. Also, multiple applications will affect your credit scores.

Have a Stable Source of Income

Having a stable work history is sure to impress the lending institutions. If you are having a minimum of two years of experience that will be an added advantage. Try to avoid switching jobs and maintain a stable source of income.

These are some of the factors the loan providers take into consideration. So, before you apply for a personal loan, consider having a proper knowledge about the terms and conditions and work according to get the loan approved.

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