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

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.


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

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. 

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