Category Archives: Loans

Online Loan Risks Worth Taking – Take a look

Low credit or more popularly referred to as bad credit is often the most undesirable state to be in when you are faced with an emergency and are looking for loans. Had it been some 20 years back, getting a loan was almost impossible with a bad credit score. However, in the current time there are a lot of lenders who have come up to cover the gap which was created with none of the banks operating in the space. However, this leads to another question- How to select the ones which are reputed and best suited to our requirements and the financial situation.

Working out the terms of the loan

It goes without saying that if you have bad credit, taking a loan which calls for the lower monthly installment will be the best situation to be in. However, at times one has to compromise with the loan terms offered by the lenders. Loans with bad credit are generally the high risk loans where the pressure on the borrowers is of paying a higher amount in the form of interests while the lenders are skeptical about the fact whether the borrowers will be able to pay the amount or not.

So with the bad credit short term loans like the payday loans it always, makes a lot of sense to accept their terms and conditions only when you can make the repayment on time and understand the merits and demerits of the loan.

  • Immediate access to money

One of the biggest factors associated with these loans is the approval rates on them. There are hardly any lenders who deny the loan request for the payday loans. With no collateral and a bad credit getting a sure shot approval always attracts customers towards this loan. However, all is not that great. There are considerations which need to be taken.

The amount of money one can get under these loans is extremely low and can extend for up to $2000. These loans can be granted within hours of submitting the application and are best suited in case of emergencies where one needs small amounts of money from www.thenetlend.co.uk.

However, the real game begins when it comes to the repayment of these loans. Based on the paycheck, these loans carry an interest rate as high as 30% for the period of 14-30days. For an amount of $1500 an individual will need to pay a sum of $1950 with the interest and the fees. This means that they will be left with little money to deal with their monthly expenses. This in the grip of payday loans is often seen taking multiple of these loans.

  • Person 2 Person (P2P) Loans

There are loan sites which connect the borrowers to the lenders directly. Borrowers put their loan taking criteria which if the lenders agree; the two parties contact each other and go ahead with the loan proceedings. These loans are extremely high risk for the lenders as there is less chance of them getting any respite if the borrowers default.

 

  • Cosigner Loans

A third option is a cosigner loan, which is arguably the most affordable option when seeking a personal loan with bad credit. The interest rate is kept low by a cosigner, who guarantees the monthly repayments will be made without fail. This means the degree of risk a lender faces is effectively removed, and because of this a low interest rate is charged.

In case of the bad credit loans with a co-signer, the risk of the lenders is reduced to the minimum. The lenders usually agree for a lower interest rate and this means a lower monthly repayment for the borrowers much to their satisfaction. In case of defaults, lenders have all the right to put the cosigners into a tight spot by forcing them into the repayment of the loans which the actual borrowers failed to do.

Features of an unsubsidized student loan program

Subsidized and unsubsidized student loans come under the well known Stafford student loan program. Stafford loans are offered to students in two different forms and unsubsidized Stafford loan is one of those. Student loans are offered to students based on the type of course for which they are enrolled. Stafford loans are offered to both undergraduate and graduate courses. Subsidized Stafford loan is made available only for undergraduate students whereas unsubsidized Stafford installment loans bad credit can be availed by undergraduate as well as graduate students. A brief explanation about the unsubsidized Stafford loan is provided further.

Unsubsidized Stafford loans – Overview

As mentioned earlier, unsubsidized Stafford loans are approved for both undergraduate and graduate students. But, this particular loan is mainly focused towards graduate students. Undergraduate students would be able to obtain a better loan package from the subsidized Stafford loan program. Thus, most of the undergraduate students seem to stay away from unsubsidized Stafford loan.

Interest rate charges

For graduate students, the interest rate charged on the unsubsidized Stafford loan seem to be slightly on the higher end when compared to the interest rate charged on the subsidized Stafford loan program. But, this is quite normal. The main difference between a subsidized and unsubsidized Stafford loan lies in the interest rate factor that would be charged during the period of schooling.

In the case of subsidized Stafford loan, the interest rate charged on the loan when the borrower is still studying would be paid by the federal government directly and the borrower need not pay the interest rate charged during schooling and also until the repayment period gets initiated. But, with respect to unsubsidized Stafford loan, the interest rate charged during schooling would have to be paid back by the borrower. The borrower can choose to sum up the interest rate charged during that period and add it along with the principal loan amount.

Once, the monthly repayment period gets initiated after 6 months from the point of graduation, the borrower should repay the unsecured personal loans bad credit interest rate charged on the loan and also the interest rate factor charged during schooling. This is the only main difference between the two types of Stafford loans.

Loan amount approved under unsubsidized Stafford loan

Loan amount offered under any federal student loan would be based on the education fee charged to the borrower. Unsubsidized Stafford loans are no different from this either. But, when compared to a subsidized Stafford loan, the amount of money one would be able to obtain from an unsubsidized Stafford loan would be lesser.

Terms

Similar to that of a subsidized Stafford loan program, the terms associated with an unsubsidized Stafford loan are flexible. Deferment period can be applied by unsubsidized Stafford loan borrowers too. Apart from this, borrowers can even go for student loan consolidation, loan forgiveness programs etc. Unsubsidized Stafford loans would be eligible for all the benefits which would be offered to most of the federal student loans offered in the market. Graduate students would not be able to get a better loan package than unsubsidized Stafford loan.

Refund Anticipation Loan- Beneficial to the lenders or the borrowers?

The loans sanctioned based on the assurance of tax refund amount of an individual are termed as tax refund loans. These short term loans are also known as ‘Refund Anticipation Loans’. The loan amount is lesser than the refund amount and the loan is easily accessible. The offer can be considered for emergency expenses that cannot be deferred till you get your refund amount from the IRS. The tax preparers who offer this loan takes the entire tax refund amount of the borrower. However, it is not advisable to apply for the loans if your requirements can wait till you get your tax refund.

Features of the loan

The borrowers are charged origination fee for the loan and there are charges for electronic filing as well. The origination fees and all the charges associated with the offer are deducted from the loan amount. Visit our website and Some of the borrowers consider this option as there is no financial stress due to monthly payments or due to the need to settle the loans. Since there is no need for documentation, the task is also simplified. The lender is not reluctant to offer approval for the tax refund loan as the loan amount is secured by the tax payer’s signature.

The tax payer commits for the loan by signing the form which allows the tax preparer to cash out the tax refund check to cover the loan amount. The loan term is short and considering this factor, the interest amount charged for the loan is very short. This is why the financial experts are not for tax refund loans. If the tax payers can wait till it is time to get access to the tax refund, it is better to keep away from the loan. The waiting period is mostly around two weeks. Considering the high interest rates and short term, the loan resembles payday loan which aggravates the financial crisis of the borrowers at https://www.facebook.com/WorthyLoan.

The high interest rates are justified by the lenders as there is risk in lending refund anticipation loan. There is the possibility for the tax payers to encounter issues with the IRS officials and this might lead to a lower amount of tax refund than expected or there might even be the denial of the entire amount due to various reasons. Although the tax preparers, who are the lenders here, justify the high cost of the loan, the profit that is realized is the attraction for the lenders. The loan is more in favor of the lenders than the borrowers who are the tax payers.

When you file the income tax refund, you receive the confirmation instantly and you are notified that your tax return is free of mistakes or wrong entries. And this leads to the availability of full refund amount and this is highly advantageous to the lenders who offer loans anticipating your refund amount. Though you get financial support during urgent needs, financial experts advise you to keep away from the loan if you can manage your urgent requirements with some other alternative financial sources. 

Federal Perkins Loans – Education for Everyone

Federal Perkins Loan is provided by the government through the U.S. Department of Education for students in order to pursue their under-graduation or post-graduation studies. These loans are issued by the school and from the government funds however, you will have to pay back the loan to your school. There is no fee taken for issuing the loan. But if you do not pay back the loan, repay fewer amounts or make delayed payment then you would be penalized by the lender. Consequently skipping payments will also lead you to pay collection costs at http://www.prnewswire.com/news-releases/bad-credit-loans-up-to-5000-launched-via-top-lender-242197291.html .

Eligibility

Though Perkins Loan helps lot of students who are unable to pursue studies because of their financial background, not all can apply for these loans. The eligibility criteria for Perkins loan are listed as follows:

  • Admitted as a student for a full time or part time degree program.
  • Should be a citizen of the U.S, a permanent resident or should hold non-citizen status.
  • Should have showed fair academic betterment.
  • Should not possess history of unpaid debts on other educational loans and grants in the past.
  • Should satisfy all Selection requirements to qualify for the loan.

Duties when you borrow Perkins Loan

  • You should endorse a promissory note agreeing to the terms and conditions associated with the loan program.
  • You should pay back the loan even if you quit the study program in between.
  • Even if you are not satisfied with the education provided at your school, you should repay the loan.
  • Pay back the loan amount according to the agreement schedule which was endorsed before you accepted the loan.
  • You should inform the Federal Perkins no credit check loans Coordinator about your graduation, withdrawal, absence, transfer, name and address change, etc.
  • Display appropriate documents about your delayed payments and loan cancellation.

Privileges of Federal Perkins Loan

  • The promissory note which you endorse should be returned to you when the loan is fully paid.
  • A mercy period is granted for the repayment and that should be shown in the agreement.
  • You should be educated with all the details regarding your principle amount, interest rate, penalty charges if you fail to repay the debt, etc.
  • The list of loan cancellation and delayed payment rules should be given if you opt.
  • The loan repayment terms, duration, etc. should be known to you.
  • Most importantly, you should have knowledge regarding where you repay the loan.
  • Proper reasoning about penalty-free advance.

Calling Off of Perkins Loan

Perkins loan can be cancelled under some circumstances which are legally accepted by the government as well as the lending medium (i.e. the school or university). The loan can be called off only if the borrower qualifies for the cancellation procedure listed below:

  • Death of the student.
  • If you join a non-profit institution, or serve as a law enforcement officer.
  • If you become physically challenged.
  • If you work in a government organization and serve the country.
  • If you work as a doctor, nurse or an allied health professional serving the public.
  • If you work as faculty in a low-income school.

Measures To Prevent Loan Scams And Frauds

Often personal finances might not be sufficient enough to start a new business. In such a case, you often have to rely on other external sources of finance to move out on your venture. Some of the most common sources of funds include friends and family, banks loans, venture capital etc. However, if you are unable to manage finance from any of these sources, you might want to get your source of finance elsewhere. Unfortunately, currently there are many scams in the market. They tempt the business owners in availing loans for starting their business. Ultimately, it turns out to be a great trap at the end.

Going By Advertisements:

There are many a time when you will find advertisements in TV, newspapers or websites. They offer a toll free numbers where the interested customers can call. You might have thought of making such calls to meet your financial requirements. If you make a call, there will be a loan official who will take your credit application directly over the phone or send you papers to fill them up. In any way, you are required to submit some crucial information ranging from your financial status, your employment records, your bank account, your social security number and even your credit card details.

Loan Approval:

The process of approval of loan takes step by step. This is applicable even in case of scams. When you apply for such loans and submit your information, you will be informed after few days about your eon loans approval. They will also inform that you will receive the money after submitting a mandatory fee. This is generally not the case with a reliable institution. The mandatory fee that they ask for is required immediately for covering the first loan payment or for the purpose of insurance. Different companies label it differently.

Forget The Loan:

Once you have paid the mandatory fee, which can even be an advance up to three months, you will never receive your loan. In addition to that, it also implies that your financial losses will never be covered. This is not the end. There are high chances that you are the victim of identity theft, especially when you have provided the credit card details or bank account details. This identity can be used by the scammers for carrying out transactions from your account. Therefore, if you ever fall prey to such scams, make sure that you inform the bank immediately.

Loan fraud is quite common in the recent years. Therefore, while availing a loan, it is extremely important that you go for a reliable institution. Moreover, you should also try to avoid any kinds of ads that come in various places without any valid evidence. You should be careful when any lender is asking a deposit fee from you because this is the first indication of fraud. Such scammers never provide any location information or you will never find any reviews about them. These are few of the signs by means of which you can prevent yourself from the threat of scams.

Loan modification- is it the right option for your budgeting?

Budgeting surely indicates a new way of life.  Your shopping habits will be different and quite new.  You will adopt different yardsticks when you have to purchase during ‘sales.’  If the expenditure on a particular item is big, you will think twice, however tempting the deal may be. But such restrictions on your part will cut down the expenditure only to certain extent. The more important ones, where you have to concentrate, are expenses on car, health insurance, telephone, mobile, television, internet, etc. Expenses on these should be curtailed to the extent possible, by limiting the use of these. Alternatively, you can try to get better deals from the providers of these services.

Loan modification
If you are on a budget, the best thing for you will be loan modification. By this method, your monthly payments will get reduced. The term of the loan could be cut short and the balance due could also be got reduced. However, getting approval for loan modification may be difficult. Lenders, generally, may not give their approval for loan modification.  They will approve only when you are not at all in a position to pay the loan. In case you only want to bring down your monthly payments, you can contact one of the loan modification companies. They are very understanding and will offer you a suitable deal.

Prepare your monthly budget first and then contact loan modification company, because the moment you contact them, they will ask you to give details on this. You should have sufficient income to meet your general expenses, besides the payment on the proposed mortgage. If you give details of your regular monthly expenses on car fuel, insurance and other things, they will give an indication of your income. If there is no income, there is no need to worry at all about this.

You may have to mention, in detail, all the sufferings you are undergoing, like illness, losing the job, the large adjustment in payment which has led to your inability to afford. You can simply write on a paper, giving complete and specific details regarding your sufferings, even including the death of any member in the family.

Approach the mortgage loan providers
You can get in touch with the loan modification department of your lenders. They will guide you to get through the process. All details, such as payment deferment, modification of interest rate, bringing down the principal amount of installment loan lenders to the current market level, could be discussed with them. Even you can get the first and second mortgage combined into one, if you have a second mortgage with them. It depends on the company you are dealing with. It is very necessary that you should follow up the matter on a regular basis.  If necessary, you can ask them to assign someone to work with you.

Avoid Foreclosure with Loan Modification!

With a loan modification, a borrower is allowed to make changes in his existing mortgage terms to suit his convenience. The monthly payments can be lowered. The borrowers who are not able to manage the payments due to their debts are eligible to get loan modification. Those who have loans for bad credit with adjustable rates, those who have obtained loans for overwhelmingly higher interest rates and those with upside down loans can go for loan modification. The government is particular about supporting those with unmanageable debts and so advises the banks to advance loan modifications to those who are in financial crisis.

Internet is a great source of information about loan modification and there are packages of loan modification approved by banks. Those who have upside down loans and those who do not have the needed equity in their homes can give explanations as to their capability to make repayments from the total household income. Online source of loan modification quickens the processing of loans and simplifies the deal. When you go for loan modification, the credit record is not a matter of concern for the lenders. Since the credit record is not a hassle in getting approved for loan modification, the option is very popular and much demanded.

If you have been struggling with mortgage payments that are unaffordable, you can opt for loan modification to avoid foreclosure. You can follow certain guidelines to be qualified for the loan. You need to get informed about the features and the process of the loan to apply with confidence. With this as the first step, you can move forward to make the best of this option for your benefit. Getting prepared with all the necessary documents is the next step. You need to make calculations regarding the loan and your payments. This will help you make the decision as to the terms and the amount of the loan.

How to get approved for the loan modification?

Following the guidelines specified by the banks with which you are going to deal with regarding the loan modification is the key to be successful in getting the loans. A discussion with the lender will help you understand the service better and you can learn how to make yourself qualified for the loan. Understanding the expectations of the banks will keep you ready for the approval. You should never assume and should give importance to all the details related to the payday loans no credit check without overlooking any feature. Loan calculators will help in making exact calculations as to the payments and this will help in deciding the loan amount as affordable by you.

It is possible to save on your monthly payments if you opt for loan modification. Seeking the guidance of financial counselors will help in getting the best deal without difficulties. Their support is inevitable for negotiation. However, if you have all the necessary documents, you can approach the banks that are always willing to help you without charging for guiding you. Getting prepared well in advance with the needed paperwork, it is not difficult to get approved for loan modification that will save your house.

Benefits of Federal Perkins Loans

It has become inevitable to apply for loans when the students need to pursue higher studies. Fortunately for them, there are loan offers from the federal government with lower interest rates and flexible terms, to help them focus on their academic career without financial stress. Stafford loans, PLUS loans and Federal Perkins loans are some of the types of loans which are highly beneficial to the students while in college. The features and the terms of each type of these loans vary and however, the students can decide on the option according to their needs and eligibility.

Both the graduates and undergraduates are eligible for Federal Perkins Loans. The loans are sanctioned by the respective institutions as per the availability of money. The rates of interest on Perkins loans are lower than in other loans as the intention of the loan is to help the financially needy people. The rate of interest associated with Perkins loans is fixed and the borrower is expected to repay the loan as specified. There is the possibility to cancel a part of the loan if the borrowers volunteer their services for the betterment of the society. Jobs in certain military, public and teaching fields get the borrowers the chance to cancel their loans fully.

The Eligibility Criteria

The students should be in a financially grave situation. The student should be the citizen of U.S or must be a permanent resident of U.S or must be an eligible non- resident. The applicant should be an enrolled student of the institution that participates in the personal loans for bad credit program. The eligibility also includes satisfactory grades and good credit history. The limit for the loan amount varies as per the courses and needs of the students and also depending on the availability of finance for the purpose. The maximum term of the Federal Perkins loan is 10 years as per the amount availed.

The repayments can be either monthly or quarterly. Once the students get graduated or leave the school before completing at least half of the enrollment time, a grace period of nine months is allowed. However, the grace period is extended for those in military services. There is no originating fees or penalties involved in case of settling the loans earlier than the agreed time. The government supports the students with payment of interest amount while the students are still in college. Since Federal Perkins loans are cheaper than any other government loans, the demand is more for this offer.

The application can be submitted online as well. The Free Application for Federal Student Aid can be filled online and submitted for quick processing of loans. For offline submission, the students can get the FAFSA forms from the high school in which the student studies, or from the local library or post secondary school. The students who have availed the loans in the previous year can renew the loans with no credit check using the Renewal FAFSA forms and updating the related information. The Federal Student Aid Information Center can be approached for any guidance regarding Federal Perkins Loans.

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