Wood services – Woody House http://woodyhouse.org/ Mon, 16 May 2022 11:55:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://woodyhouse.org/wp-content/uploads/2021/10/icon-120x120.jpg Wood services – Woody House http://woodyhouse.org/ 32 32 LendingPoint Personal Loans Review 2022 | News https://woodyhouse.org/lendingpoint-personal-loans-review-2022-news/ Mon, 16 May 2022 11:55:56 +0000 https://woodyhouse.org/lendingpoint-personal-loans-review-2022-news/ Getting a loan when you have poor credit is not an easy task. You may face astronomical interest rates – or outright rejection. LendingPoint is a personal loan company that provides loans to people with credit scores as low as 580. In this LendingPoint review, we have taken the time to research and analyze the […]]]>

Getting a loan when you have poor credit is not an easy task. You may face astronomical interest rates – or outright rejection.

LendingPoint is a personal loan company that provides loans to people with credit scores as low as 580. In this LendingPoint review, we have taken the time to research and analyze the company’s offerings and compare everything to competition.

From the interest rate band to the minimum credit score needed to get a LendingPoint personal loan, we’ll help you determine if this online lender is the right option for your particular financial situation. After all, you might need a little extra cash, but you don’t want to be stuck in a high APR loan with a terrible repayment schedule and unfairly high fees.

Advantages and disadvantages of LendingPoint

Advantages

  • Approval for borrowers with credit scores as low as 580.
  • Funds deposited the next business day.
  • Pre-approval with only a soft credit check to avoid affecting your credit score.

The inconvenients

  • Interest rates are a bit higher than the competition, even those who specialize in bad credit loans
  • Co-signed and joint loans are not available
  • Does not fall under Equifax, which prevents the lending institution

What are LendingPoint Personal Loans?

LendingPoint is a financial technology (fintech) company that provides affordable personal loans to people with lower credit scores. The company emphasizes the evaluation of external factors FICO scoreslooking overall debt to income ratios and payment-to-income ratios, making it a solid choice for those with fair credit.

LendingPoint requires a minimum credit score of 580 and provides financing from $2,000 to $36,500. Interest rates start at 9.99%, which is a bit high compared to other lendersand can go up to 35.99%.

A plus point is its fast next-day funding once you’ve been approved – a strong contender if you need cash immediately for an emergency.

Overall, LendingPoint is a relatively new company, which launched in the United States in 2014 and issued its first consumer loan in 2015. It has strong support from equity investment firms and industry executives. large companies, including American Express, have joined his team.

Things to Know About LendingPoint Personal Loans

Companies like LendingPoint that accept people with lower credit scores can be solid solutions if you run into an unexpected emergency. However, its high interest rates can make it a poor choice for everyday purchases.

Here are some important factors to consider when choosing LendingPoint as your personal loan provider.

LendingPoint

Personal loans for fair credit

Main characteristics

  • Approval for credit scores as low as 580
  • Funds deposited next business day
  • Loan pre-approval with only a soft credit check

Borrowers with sub-optimal credit can take out a personal loan with LendingPoint and get their money in as little as one business day. But as with all loans deemed risky, interest rates can be high.

Interest rate range

9.99-35.99%

Minimum credit score

580

Loan amounts

$2,000 to $36,500

Loan conditions

2 to 5 years

Loan conditions

LendingPoint personal loans start at $2,000 and can be extended up to $36,500 with approval. Initial approval only involves a soft credit checkso you won’t have to worry about the impact on your credit score.

Once approved, LendingPoint offers personal loan terms from 24 months to 60 months (2 to 5 years). It is generally better to choose a shorter loan term, because of the generally lower interest rates. Although longer personal loans may provide lower monthly payments, you’ll pay more in the end.

Interest rate

LendingPoint interest rates range from 9.99 to 35.99%. The exact interest rate you receive will be based on factors such as your credit score, your overall debt-to-income ratio, and your payment-to-income ratio.

LendingPoint’s base interest rate is a bit high compared to the competition.

Fees and Penalties

A personal loan from LendingPoint may include an origination fee of up to 6% – the exact percentage depends on your state of residence.

This origination fee is a one-time fee that loan companies charge to cover processing fees and other administrative costs; it is within a reasonable percentage for origination fees compared to other lenders.

Once your loan is in progress, be sure to make payments on time. If you miss a payment, you may face late fees of up to $30, and late payments may be reported to credit bureaus.

Pro tip

LendingPoint only reports to two of the three major credit bureaus, Experian and TransUnion, but not Equifax.

Finally, LendingPoint does not charge penalties for prepaying your personal loans or for making additional payments.

Availablity

LendingPoint is widely available in the United States. The only two states that LendingPoint does not currently serve are Nevada and West Virginia.

How to get started with LendingPoint

To apply for a personal loan, go to LendingPoint website. To qualify for a personal loan, applicants must meet the following six conditions:

  • Be at least 18 years old
  • Provide a photo ID issued by the US federal, state, or local government
  • Have a social security number
  • Have a minimum annual income of $20,000 (from employment, retirement or other sources)
  • Have a verifiable personal bank account in your name
  • Live in one of the states where LendingPoint does business

A soft check or soft credit check is done when you apply for a loan, which allows the company to determine the amount you qualify for. It does not affect your credit score. If you decide to pursue the application for final approval, a thorough investigation will be carried out, which may reduce your credit score by a few points.

During the approval process, you may need to provide documents such as a driver’s license, pay stubs, bank statements, or proof of employment. It is important to note that LendingPoint currently only offers individual loans. Joint and co-signed loans are not an option.

Once you’ve selected your loan terms and signed your loan agreement, LendingPoint notes that they “will provide a decision as soon as possible.” Once approved, money can be delivered the next business day. If you opt for a debt consolidation loan, LendingPoint does not offer an option to pay creditors directly, so you will have to pay each balance manually.

Should I get a loan with LendingPoint?

In general, we recommend that you review personal loans from other companies before proceeding with LendingPoint. Although the company lends money to people who might otherwise struggle to get loans, there are other alternatives with lower interest rates.

If you have fair or bad credit, you should still shop around for the best personal loan with the best conditions.

LendingPoint Personal Loan Alternatives

If you are looking for other options beyond LendingPoint, many companies have the same low credit goal. Here are a few personal lenders you might want to consider as alternatives to LendingPoint.

Other personal lenders

Other lenders offer loans to people with a fair credit rating. Compare products before signing for a loan.

Our best installment loans The guide features lenders who approve credit scores as low as 300 (and people with no credit score at all) on your credit report.

Secured loans

Although LendingPoint offers unsecured personal loans, there are also secured loan options. Secured loans are solid options for people with a lower credit score, who have collateral that they are willing to provide.

Because these loans use collateral, there is generally less risk for the lender, resulting in lower interest rates. Of course, if you miss your payments, you risk losing what you have put up as collateral.

Balance Transfer Cards

If you want to consolidate an existing debt, a balance transfer card can be a solution. Balance transfer cards are similar to traditional credit cards, except they allow you to transfer existing lines of credit to them.

A balance transfer card might offer a lower APR than what you are currently paying.

Buy now, pay later

If you’re looking to get cash for a small purchase, a personal loan may be much needed. Instead, a Buy Now, Pay Later service could let you pay for something big with small payments. We’ve reviewed a few of these services and recommend you check out To affirm or Klarna.

Frequently Asked Questions (FAQs)

Is LendingPoint a good company to borrow from?

LendingPoint is a solid option for getting a personal loan, especially if you have a lower credit score. The company approves loans for people with scores as low as 580.

We’ve found that LendingPoint’s interest rates are a bit high compared to the competition, so you may want to research a better interest rate before signing up. LendingPoint also charges an origination fee, which is comparable to the fees of other lenders.

What credit score do I need for LendingPoint?

You only need a credit score of 580, and LendingPoint considers other factors for approval, including your overall debt-to-income ratio.

How long does LendingPoint take to make a decision?

While most applicants will be approved almost immediately, LendingPoint says they “provide a decision as soon as possible,” so the experience may be different for you. Once approved, you can receive funding the next business day.

Does LendingPoint verify income?

As one of LendingPoint’s eligibility requirements, they can verify your income through a bank statement, pay stubs, or direct employment verification request. In short, yes, LendingPoint will verify your earnings in one way or another.

Michael Archambault is a senior technology writer for The Penny Hoarder.

This was originally posted on The Penny Hoardera personal finance website that empowers millions of readers across the country to make smart decisions with their money with practical, inspirational advice and resources on how to earn, save and manage the money.

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Where does identity theft happen the most? https://woodyhouse.org/where-does-identity-theft-happen-the-most/ Fri, 29 Apr 2022 20:12:48 +0000 https://woodyhouse.org/where-does-identity-theft-happen-the-most/ Identity theft is the number one consumer complaint in the country. The latest data from the Federal Trade Commission (FTC) Consumer Sentinel Network shows that identity theft was the top complaint in 49 of 50 states, plus Washington, DC and Puerto Rico. It accounted for nearly a third of the 4.7 million consumer complaint reports […]]]>

Identity theft is the number one consumer complaint in the country. The latest data from the Federal Trade Commission (FTC) Consumer Sentinel Network shows that identity theft was the top complaint in 49 of 50 states, plus Washington, DC and Puerto Rico. It accounted for nearly a third of the 4.7 million consumer complaint reports filed with the FTC.

And those numbers likely don’t reflect the true prevalence of identity theft, says Eva Velasquez, president and CEO of the national nonprofit Identity Theft Resource Center (ITRC). “A lot of people don’t report identity theft to the federal government,” she says. “We think those numbers are low.”

Where Identity Theft Happens Most Often

Identity theft strikes indiscriminately. “This notion that only certain subsets of the population are extremely vulnerable is out the window in the world we live in,” says Velasquez. “Demography can play a role, but it’s really general when it comes to demographics.”

As a result of the coronavirus pandemic, state and federal governments have become the primary industry for identity theft and fraud. Unemployment benefits, small business loans and grants, the Paycheck Protection Program and other initiatives aimed at supporting the US economy have been the main targets of criminals.

Here’s the top-to-bottom breakdown of where identity theft happens most often, according to FTC data.

Government Benefits and IDs: Identity theft involving public benefits, particularly unemployment benefits, and government ID documents skyrocketed nearly 3,000% from 2019 to 2020. WE Secret A service recently estimated that $100 billion in pandemic relief money was stolen.

The falsification and issuance of false driver’s licenses, passports and other forms of government identification have also increased.

Credit card accounts: New and existing credit card accounts are cited in nearly 30% of identity theft reports, with the number of reported incidents increasing by 48%.

Loans and leases: Identity theft involving business and personal loans skyrocketed 127%, followed by home loans, auto loans and leases, student loans, and home and apartment rentals.

Employment and taxes: Identity theft related to consumer tax information jumped 225%, followed by theft related to employment or wages.

Telephones and public services: New and existing landline, mobile, and utility accounts are prime targets for identity thieves. New mobile phone accounts have the highest number of identity theft complaints in this category.

Bank fraud: New bank accounts, existing bank accounts, and payment methods, such as debit cards, electronic funds transfers, and automatic clearing house (ACH) payments, are a prime playground for thieves of identity.

Other main types of identity theft: The FTC aggregates identity theft complaints involving medical services, insurance, social media, online shopping, securities accounts, bogus charitable solicitations, credit bureaus, debt collectors, refund and other tricks.

The Consumer Sentinel Network highlights further details about where identity theft most often happens and to whom:

  • The five states with the highest number of identity theft reports are Kansas, Rhode Island, Illinois, Nevada and Washington.
  • Consumers between the ages of 40 and 49 filed the most identity theft reports, with the majority involving fraudulent government benefits or government documents.
  • The 30-39 age group filed the second highest number of identity theft reports, most of them related to credit card fraud.
  • The 50 to 59 age group filed the third highest number of reports, most of them relating to benefits or government documents.

Common ways scammers steal your identity

Cyber ​​attacks

Cyberattacks are the main strategy of identity thieves, according to the Identity Theft Resource Center. Here are some examples of cyberattacks:

  • Emails that look genuine but contain dangerous attachments or links. This is called “phishing”.
  • Text messages that look legitimate but contain links to fake web pages. This is called “smishing”.
  • Malware, or malicious software, that invades computers, phones, and other devices.
  • Ransomware, a type of malware used to extort money from victims by blocking access to computer systems or by posing a threat, such as leaking personal data.
  • Credential stuffing, where stolen usernames and passwords are used to gain access to multiple accounts.
  • Massive data breaches from companies that hold personal information for thousands or millions of people. This could be a healthcare company, retailer, financial institution, social media platform, or other large entity.
  • Biometric authenticators, such as fingerprints, add another layer of security to smartphones and other devices, but if the place they’re stored is hacked, identity thieves can gain access to digital wallets and more.
  • The dark web is “like Amazon for scammers”, says ITRC’s Velasquez. This is a market where personal data stolen in previous breaches is sold to other criminals.

Scams by imposters

Imposter scams include a wide variety of identity theft crimes. They are perpetrated through phone calls, emails, text messages, social media, websites, advertisements and other means.

Some common imposter scams include:

  • False emergencies: These are often phone calls from someone claiming to be from the IRS, your bank or credit card company, the police department, or a computer company. They will tell you that you have an unpaid fine or there is a computer virus alert and they need to fix your computer. Another common false emergency is that a loved one is in distress and needs money.
  • Bogus job opportunities: Advertisements for bogus employment agencies or work-at-home jobs trick victims into filling out applications and disclosing highly sensitive personal information such as social security numbers.
  • Delivery notification scams: With more and more people ordering groceries and other products online, scammers can call, email or text fake delivery notifications. Victims may be prompted to call a number and provide updated account or payment information, or click on a bad “tracking link” that installs malware on their phone or computer.
  • Romance scams: Imposters prey on people looking for human connections. They use information from victims’ social media accounts about who they are and what they like. They gain the trust of victims and quickly build strong relationships. If they still seem to be available, it’s because they’re online all the time, probably hacking into your accounts. After stealing your credentials or money, they disappear.
  • Fake invitations to a videoconference: Taking advantage of the massive work from home and home schooling, identity thieves use emails, text messages and social media posts to send fake meeting invites that infect computers with malware. Or, they “phish” personal data saying you missed a meeting or your account was suspended, prompting you to enter your username and password, which they capture and use to defraud you.
  • Charity scams: Criminals pretend to belong to a legitimate charity, food bank or other organization to steal personal data and money.
  • Offers of fake vaccines and test kits: This is one of many COVID-related scams. Criminals steal personal information by tricking people into signing up for COVID vaccines and coronavirus test kits.
  • Prizes, sweepstakes and lottery tricks: These impostor scams have been around for a long time. Identity thieves call, email, use direct mail or a social media notification to congratulate someone on winning a big prize or contest. But the victim is informed that they have to pay a tax, fee or duty to claim the money. The impostor can ask for bank account information, ask for a wire transfer, or ask the victim to buy a gift card and then ask for the gift card number.

The old-fashioned way

Some identity thieves use old-school street tactics, like pickpocketing in crowded areas, removing a forgotten credit card from a checkout counter, or taking a smartphone someone left behind .

There are also still “dumpster divers”, who will scavenge through people’s trash looking for discarded personal information that they can use to their advantage.

Mail stolen from a mailbox can be a rich source of personal information. Identity thieves take advantage of pre-selected credit card offers, uncashed checks, and new debit or credit cards that have not been activated.

Only your name and address are valuable to an identity thief, as they can be used to redirect your mail or access other information. Names and addresses are among the most breached data points, according to the ITRC.

At the end of the line

Identity thieves are creative and industrious. As technology advances, so do their tactics. They follow societal trends, such as the massive rise of online shopping, and use them to their advantage.

Don’t think you’re too smart or savvy to be a victim of identity theft. Basically, everyone is vulnerable to identity theft. “If you live in the United States and have IDs, I can guarantee you’ll have issues with impersonation,” Velasquez says.

“One of our biggest problems is the lack of recognition of our vulnerability. When we don’t admit it, we create additional vulnerability.

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AAA: Drivers face $600 car repair costs after pothole — compare your financing options https://woodyhouse.org/aaa-drivers-face-600-car-repair-costs-after-pothole-compare-your-financing-options/ Mon, 25 Apr 2022 12:14:23 +0000 https://woodyhouse.org/aaa-drivers-face-600-car-repair-costs-after-pothole-compare-your-financing-options/ Pothole damage cost drivers $26.5 billion in 2021 alone, AAA reports. If you’re stuck with an unexpected bill, compare your auto repair financing options. (iStock) According to a recent study from AAA. Potholes caused $26.5 billion in damage in 2021, leaving about 1 in 10 drivers to face an average repair cost of $600. “When […]]]>

Pothole damage cost drivers $26.5 billion in 2021 alone, AAA reports. If you’re stuck with an unexpected bill, compare your auto repair financing options. (iStock)

According to a recent study from AAA. Potholes caused $26.5 billion in damage in 2021, leaving about 1 in 10 drivers to face an average repair cost of $600.

“When a vehicle hits a pothole with any type of force, the tires, wheels and suspension take the brunt of the impact and repairing any of these items is expensive” , said AAA director Greg Brannon.

While potholes are often impossible to avoid, AAA offers tips for protecting your car (and your wallet) from the impact of potholes:

  • Check your tires. Regularly monitor your tire pressure and tread depth to minimize the impact of uneven roads. You should also keep an eye on your alignment, making sure to follow routine maintenance.
  • Scan the road for potholes. It is important to note that potholes can be obscured by standing water and puddles. Reduce your speed safely, as running over a pothole at higher speeds increases the chance of more serious damage.
  • Pay attention to the warning signs. After hitting a pothole, listen for any new noise and feel your direction for any unusual vibrations. Take your car to a trusted mechanic to determine if you need repairs.

If you’re faced with unexpected repair expenses after a pothole or other type of collision, keep reading to learn more about your financing options. You can also visit Credible to compare a variety of financial products, from 0% APR credit cards to emergency personal loans.

AUTO REPAIR LOANS: WHAT YOU NEED TO KNOW AND WHERE TO FIND ONE

How to pay for unexpected car repairs

Potholes can damage your bumper and your wallet. When you’re faced with unexpected auto repairs, paying cash is ideal. This ensures that you won’t have to pay interest charges or late fees, which can increase the overall repair cost.

Yet only about a third (36%) of Americans could cover an emergency expense of $400 in cash, according to the Federal Reserve. More than a quarter (27%) would need to borrow money, either by using a credit card, taking out a bank loan or asking a friend or relative for help.

If you’re stuck with an auto repair bill you can’t afford, here are three financing options to consider.

WHAT IS A CAR TITLE LOAN AND HOW DOES IT WORK?

Search buy now, pay later

Buy Now, Pay Later (BNPL) financing lets you break large expenses down into smaller installments that you pay back over time. Some BNPL providers offer zero rate options, but read the entire finance agreement to fully understand any interest charges or late fees that may be charged.

Call several auto repair shops in your area to see if any of them partner with BNPL companies like Affirm. Some mechanics may offer low-interest or interest-free financing through a credit card like Synchrony Car Care. Just be sure to stick to the payment agreement to avoid accruing deferred interest charges.

93% OF LOAN BORROWERS REGRET MAKING THEIR LOANS

Use a 0% APR credit card

Some credit card companies offer promotional introductory financing at 0% APR that can last up to 21 months after you apply for a new card. This can effectively give cardholders the ability to pay for auto repairs without paying interest, as long as the bill is paid in full within the promotional period. If not, you will be charged the regular purchase APR on the remaining balance.

Keep in mind that zero rate credit card offers are generally reserved for applicants with very good to excellent credit, as defined by the FICO model such as a credit score of 740 or higher. You should also be aware of the annual fees and late fees that come with the card.

You can visit Credible to compare 0% APR credit cards for free without affecting your credit score.

PERSONAL LOAN SETUP FEES: ARE THEY WORTH THE COST?

Borrow a fixed rate personal loan

A personal loan is a type of unsecured lump sum loan that you repay in predictable monthly installments at a fixed interest rate. Since these loans don’t require collateral, you can use the financing however you see fit, including financing car repairs.

Personal loans offer quick funding and lenders can deposit the amount directly into your bank account within one business day of loan approval. But keep in mind that you will pay interest, which will add to the overall cost of borrowing. Yet personal loans generally offer lower interest rates than credit cards, Fed data shows.

It is important to note that borrowers with good credit will see more favorable loan offers than applicants with bad credit. You can browse the current interest rates in the table below and use Credible’s personal loan calculator to estimate your repayment terms.

10 BEST PERSONAL LOANS FOR FAIR CREDIT

You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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5 signs you can increase your house hunting budget https://woodyhouse.org/5-signs-you-can-increase-your-house-hunting-budget/ Sat, 23 Apr 2022 10:00:32 +0000 https://woodyhouse.org/5-signs-you-can-increase-your-house-hunting-budget/ Image source: Getty Images The main goal is to leave you enough to live a good life. Key points A competitive housing market can encourage people to spend more than they should. The housing market will go up and down, but you still want to have enough money after your housing payment to save for […]]]>

Image source: Getty Images

The main goal is to leave you enough to live a good life.


Key points

  • A competitive housing market can encourage people to spend more than they should.
  • The housing market will go up and down, but you still want to have enough money after your housing payment to save for bad weather.

We would be lying if we said that it is now easy to be a house hunter. If there are a dozen other parties lined up to bid on every home you like, you may feel like you can’t compete.

If so, you may be considering increasing the amount you are willing to pay. Before doing so, however, make sure each of these five signs applies to you and your financial situation. If you can answer “yes” to each of these questions, you may be able to increase your budget.

1. Will my debt to income ratio still be in line if I increase my budget?

The debt-to-income ratio (DTI) refers to the amount of money you spend each month on living compared to what you earn. For example, if you earn $80,000 per year, that’s $6,666 per month (before taxes). Let’s say the bills you’re obligated to pay each month (including mortgage, car, credit cards, personal loans, child support, and other debts) total $2,500 per month. You divide your total bills by your income to get your DTI. Here’s what it would look like:

$2,500 ÷ $6,666 = 0.375. Your DTI in this scenario would be 37.5%. Ideally, most lenders like to see a total DTI of 36% or less, and statistics indicate that people with a DTI above 36% tend to experience more financial problems.

Now, this is where it gets tricky. Some mortgage lenders give loans to people with higher DTIs. While it’s good for their business, you need to consider whether it’s good for your financial life. Do the math and if increasing your home budget is cutting you off, you know it’s not the right time.

2. Can I still afford to do the things I love?

If you’ve ever been housing poor, you know the misery of spending so much money on a mortgage that you don’t have the funds left to simply enjoy life. If you have a hobby that means something to you, you want enough left over to go out for nice dinners or dream of traveling, pouring everything you earn into a house is likely to get old once the moving day excitement will have dissipated.

3. Will I still have enough to store for a rainy day?

One of the most surprising things about being a homeowner is how much you’ll pay in hidden fees. You are not only responsible for a mortgage. There is also home insurance, utilities, HOA fees, maintenance fees, etc. Some of these expenses can be planned for, but when your furnace breaks down on Christmas Day and you have to dig deep to pay someone to come and fix it, you’ll need a solid emergency fund on hand.

Before increasing your housing budget, calculate the numbers. Make sure you have enough money aside to deal with emergencies.

4. Can I still prioritize saving for my future?

No matter your current age, part of treating yourself well is planning for your financial future. For some, that means early retirement. For others, it means an annual vacation somewhere far away. And for many of us, that means a comfortable retirement. Unless you can still invest money in your future self, you may not be ready to increase your house hunting budget.

5. Can I pay the mortgage without depending on someone else?

Even if you’re buying the house with a partner, think about what would happen if that person died or left. Would you still be able to make the mortgage payments until you could make other arrangements (like selling the house or bringing in a roommate)?

If you answered a resounding “yes” to each of these questions, congratulations. You are ready to increase your housing budget. Just make sure it’s your decision and you don’t have to make the wrong decision.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are, interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.

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Types of bad credit loans and their uses https://woodyhouse.org/types-of-bad-credit-loans-and-their-uses/ Thu, 14 Apr 2022 21:07:05 +0000 https://woodyhouse.org/types-of-bad-credit-loans-and-their-uses/ If you have bad credit and need cash fast, you may not realize that you may still have loans you qualify for. A loan for bad credit could be an option if you have been refused by your bank or credit union and borrowing from relatives or friends is not an option. There are several […]]]>

If you have bad credit and need cash fast, you may not realize that you may still have loans you qualify for. A loan for bad credit could be an option if you have been refused by your bank or credit union and borrowing from relatives or friends is not an option.

There are several types of bad credit loans to choose from. They often come with high interest rates that could cost you several hundred or thousands of dollars more over the life of the loan. It is therefore worth exhausting all your options and exploring other alternatives before applying for a loan for bad credit. However, if you’re in trouble, a bad credit loan might be what you need.

What is a bad credit loan?

Bad credit loans are designed for consumers with low credit ratings who cannot be approved for financing elsewhere. You can expect higher interest rates and fees with these loans because the risk of default is higher.

The FICO scoring model, which 90% of lenders and creditors use to make a loan decision, ranges from 300 to 850. Lenders who offer bad credit loans typically target consumers in these FICO score ranges:

  • Bad credit: 300 to 579
  • Fair credit: 580 to 669

Although these loans are expensive for borrowers, the advantage is that you can get the money you need to meet an unexpected expense or financial emergency. Additionally, some lenders offer a simplified application process and same-day or next-day financing.

Secured loans

Secured loans are for consumers whose credit is not perfect, but require some form of collateral to be approved. Title loans and home equity loans are popular secured loan options, but you risk losing your car or home if you fail to repay the loan.

Still, they might work if you haven’t found better options elsewhere and don’t anticipate any problems repaying the loan on time.

Before applying for a secured loan, research several lenders that offer title and home equity loans to determine if you meet their eligibility criteria. You’ll probably have better luck with a title loan if your credit score is in the trenches, but you may qualify for a home equity loan from some lenders.

Loans without credit check

As the name suggests, these loan products do not require a credit check to be approved. They are attractive to borrowers with very low credit ratings who have been turned down for other loan products, but come with high interest rates to compensate for the risk they pose to the lender. As a result, you could get a monthly payment that doesn’t quite fit your budget and find yourself in even more financial trouble over time.

Some lenders will extend the loan term on these loan products to give you a lower, more attractive monthly payment. However, this simply means that you will pay more interest over the term of the loan, as the lender will have more time to collect the interest from you.

Common loans without a credit check include payday loans, installment loans, auto title loans, and cosigner loans.

Payday loans

Payday loans offer a short-term solution for borrowers in credit difficulty. These loans usually come with exorbitant interest rates, sometimes well into the triple digits, and capped at around $500.

Most payday lenders won’t check your credit to qualify for a loan, and you could get the loan proceeds within hours. Nevertheless, payday loans should only be used as a last resort, as the cost of borrowing is high. Plus, you’ll usually have to pay back what you borrow before the next payday or face high fees if you extend the term of the loan. This could lead to a vicious cycle that is difficult to escape.

Cash advances

A cash advance allows you to withdraw funds from your credit card’s available balance up to the preset limit established by your credit card issuer. The amount you borrow is added to your outstanding credit card balance. You will likely pay a higher interest rate than on regular credit card purchases.

Cash advances are usually made by withdrawing cash from an ATM. You can also request a cash advance from a cashier at the physical branch of the credit card issuer (if applicable).

If possible, use cash advances only in times of financial emergency. Although they offer a quick fix if you’re in financial difficulty, they can be expensive and keep you in credit card debt for an extended period of time.

Banking agreements

Some banks offer short-term loans for smaller amounts to account holders with a positive banking history. However, the qualification criteria differ depending on the financial institution. You should therefore contact your bank or credit union to determine if this option is viable for you.

Alternatives to Bad Loans

Although bad credit loans are designed to help consumers who have difficulty accessing finance, they can be expensive and predatory in some cases. If you are facing a financial emergency or unexpected expenses, here are some viable alternatives:

  • Asking a relative or friend for money. Be sure to write out a repayment plan that works for both parties to avoid problems later.
  • Use a credit card. If you have available credit on a credit card, the cost of reading it is likely much less than what you’ll pay if you take out a bad credit loan. However, you want to pay back what you spend as soon as possible to avoid spending a fortune on interest.
  • Find local help. Some communities have religious and nonprofit organizations that offer financial assistance to those going through a financial crisis.

Most importantly, work on building your emergency fund and improving your credit. That way, you might not have to borrow money the next time life comes around. Plus, you’ll potentially qualify for loan options with better terms and more competitive interest rates if you don’t have enough savings to cover a financial emergency should it arise.

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What are secured loans and where can you get one? https://woodyhouse.org/what-are-secured-loans-and-where-can-you-get-one/ Tue, 12 Apr 2022 19:45:57 +0000 https://woodyhouse.org/what-are-secured-loans-and-where-can-you-get-one/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Unlike unsecured loans, secured loans are backed […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Unlike unsecured loans, secured loans are backed by collateral or a valuable asset that you own. (Shutterstock)

If you don’t have the best credit and want to lock in a low interest rate or borrow a large sum of money, a secured loan might be on your radar. Contrary to unsecured personal loansSecured loans require you to pledge an asset like a savings account or a car, which the lender can take if you don’t repay the loan.

Let’s take a closer look at what secured loans are, where you can get them, and some pros and cons to consider.

If you are considering an unsecured personal loan, you can visit Credible to learn more and to see your prequalified rates.

What are secured loans and how do they work?

Also known as secured personal loanA secured loan is secured by collateral or something valuable that you own. It could be a house, a car, a savings account, an investment portfolio, or even a piece of jewelry or a musical instrument. If you default on your loan, the lender may seize your collateral. You can use a collateral loan to almost any goalwhether you need to cover an unexpected expense, pay a medical bill or perform an expensive car repair.

You will come across several types of secured loans, including mortgages and car loans. If you take out a mortgage, for example, you will use your house as collateral. For an auto loan, you would use your vehicle as collateral. Other examples of secured loans include home equity loans or home equity lines of credit (HELOCs), which also use your home as collateral.

Secured loans are less risky for lenders because they have the right to sell your asset if you fail to repay your loan. This can make secured loans easier to obtain than unsecured loans, which pose a higher risk to lenders.

Where can you get a secured loan?

You can get secured loans from a number of financial institutions, such as:

  • Banks – If you already have a checking or savings account with a bank, you might want to start there for a secured loan.
  • Credit Unions – In most cases, you will need to be a member to qualify for a secured loan from a credit union.
  • Online lenders — While most online lenders only offer unsecured loans, some also offer secured loans.
  • Car dealerships — If you are looking for a new or used vehicle, you may be able to get a car loan from a car dealership.
  • Pawn shop – Pawnbrokers are secured by a personal item of value, but they usually come with very high costs.

What credit score do you need for a secured loan?

Each lender has their own requirements for secured loans. While some require good or excellent credit scores, others are more lenient and work with borrowers who have fair credit ratings. If you don’t see the credit score requirements listed on a lender’s site, you can contact the lender to find out.

Comparing rates from multiple lenders can help you find the loan that’s right for you. Credible, it’s easy to compare your prequalified personal loan rates from several lenders.

Lenders who offer secured loans

While some personal lenders only offer unsecured loans, others offer loans that you can secure with collateral. These four credible partner lenders offer secured loans:

Before

  • Loan amounts: $2,000 to $35,000
  • Minimum credit rating: 550
  • Acceptable collateral: Auto

LightStream

OneMain Financial

  • Loan amounts: $1,500 to $25,000
  • Minimum credit rating: Check with the lender
  • Acceptable collateral: Car, Truck, Motorcycle, Boat, RV, Motorhome

Improve

  • Loan amounts: $1,000 to $50,000 ($3,005 minimum in GA; $6,005 minimum in MA)
  • Minimum credit rating: 560
  • Acceptable collateral: Auto

The following three lenders are not Credible partners, so you won’t be able to easily compare your rates with them on the Credible platform. But they are also worth considering if you are looking for a secured loan:

First Tech Federal Credit Union

  • Loan amounts: $25,000 to $1,000,000, depending on coverage
  • Minimum credit rating: Varies depending on loan amount and collateral
  • Acceptable collateral: Stocks, First Tech stock certificate, First Tech savings account

Federal Naval Credit Union

  • Loan amounts: Equal to the amount of your savings or certificate of deposit
  • Minimum credit rating: Check with the lender
  • Acceptable collateral: Navy Federal Savings Account, Navy Federal Certificate of Deposit

Wells Fargo

  • Loan amounts: $3,000 to $250,000, depending on coverage
  • Minimum credit rating: Check with the lender
  • Acceptable collateral: Savings account, certificate of deposit, home

How to apply for a secured loan

If you decide to go ahead, you’ll typically follow these steps to apply for a secured loan:

  1. Check your credit score. Since borrowers with the best credit ratings generally qualify for the lowest rates, it’s a good idea to review your credit rating before applying for a collateral loan. This way you will know where you stand and you won’t be surprised.
  2. Pre-qualified. Find a few lenders that allow you to prequalify for a secured loan. Prequalification generally won’t affect your credit score, so you can explore potential offers without affecting your credit.
  3. Compare offers. Compare prequalification offers and review accepted collateral, interest rates, terms and fees for each option.
  4. Take a decision. Determine which offer best suits your budget, needs and preferences. Be sure to choose a lender with collateral requirements that you can meet.
  5. Gather your documents. When you apply for a collateral loan, the lender will ask you for supporting documents to confirm your financial situation. Be prepared to submit pay stubs, tax forms, bank statements, and proof that you have the security you are offering.
  6. Complete an official application. Depending on the lender, you may be able to apply for the loan online. Check your work before submitting your application to avoid delays. Once you’ve made a formal request, the lender will usually do a credit check, which can temporarily lower your credit score by a few points.
  7. Wait for funds. The type of secured loan and the lender you choose will determine how long it will take to receive the money. Funding time can be one business day or seven or more business days.

Credible makes it easy for you compare personal loan rates from various lenders in minutes, without affecting your credit score.

Advantages and disadvantages of secured loans

Like any other financial product, secured loans have advantages and disadvantages to keep in mind.

Advantages

  • They may be easier to get if you don’t have the best credit. Since you are securing your loan with an asset, secured loans are less risky for lenders. This means you can have one with no credit or with bad credit.
  • They usually offer lower interest rates. Compared to unsecured loans, secured loans often have lower annual percentage rates, or APR. A lower rate can save you hundreds or even thousands of dollars over the life of your loan.
  • They come with higher loan amounts. Lenders have the legal right to take your property if you don’t repay a secured loan. This may make them more willing to provide higher loan amounts, which will depend on the value of your collateral.
  • They may have better conditions. If you want more time to repay your loan, some types of secured loans come with longer repayment terms than secured loans. For example, a mortgage, which is secured by your home, may have a repayment term of 10, 15, 20 or 30 years.
  • They could help you build or improve your credit. As long as you make your monthly payments on time and in full, a secured loan can help you establish a positive credit history. Just make sure the lender you choose will report your payments to the three major credit bureaus – Equifax, Experian and TransUnion.

The inconvenients

  • The application process can be more complex. Chances are you will have to provide more documents and share more information when applying for a secured loan than you would with an unsecured loan.
  • You are putting your asset at risk. If you default on your loan, the lender can foreclose on your property. This can be risky, especially if you are hiring your car or your home.
  • You need collateral. To take out a collateral loan, you must have something of value. If you don’t have the type of security a lender is looking for, the loan won’t be an option for you.
  • Not all lenders offer secured loans. Almost all lenders offer unsecured loans. But not everyone provides secured loans, so you may need to do some extra research to find the right secured loan for you.
  • You could hurt your credit. While a secured loan can help your credit, it can also hurt it if you don’t make your payments on time or, even worse, if you let it default. Lenders will report any late or missed payments to major credit bureaus, which can stay on your credit file for up to seven years.

Is the secured loan for you?

Although a secured loan may be a good option in some situations, it may not make sense in others. If you’re having trouble qualifying for an unsecured personal loan or need to borrow a large sum of money and you have something of value that you can afford to risk, a secured loan can be a great option. Good choice. Additionally, if you have poor credit or no credit, a secured loan can help you establish or improve your credit history.

On the other hand, if you are not sure that you can repay your loan, a secured loan is risky because you could lose a valuable asset. If you have good credit and don’t want to put a valuable asset on the line, an unsecured loan is probably a better option.

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April 6, 2022 Personal Loan Rates: Rates Rise https://woodyhouse.org/april-6-2022-personal-loan-rates-rates-rise/ Fri, 08 Apr 2022 18:23:29 +0000 https://woodyhouse.org/april-6-2022-personal-loan-rates-rates-rise/ Personal loan interest rates have increased this week. Rates jumped from 10.30% last week to 10.50 this week. The average rate for personal loans varied during the month of March. JMoreover, the national average interest rate on personal loans had remained stable since the beginning of 2022 at 10.28%. Bankrate organizes a weekly review survey […]]]>

Personal loan interest rates have increased this week. Rates jumped from 10.30% last week to 10.50 this week. The average rate for personal loans varied during the month of March. JMoreover, the national average interest rate on personal loans had remained stable since the beginning of 2022 at 10.28%.

Bankrate organizes a weekly review survey major lenders and monitors personal loan interest rates week after week, tracking any changes.

Comparison of the best personal loan rates

While personal loan interest rates have remained stable on average, different lenders offer different rates and overall experiences. Below are rates for some of the best personal lenders of 2022. These lenders performed well in the 2022 Bankrate Awards, each winning a superlative category.

Lender APR Amount of the loan Minimum credit score Discount rate superlative
LightStream 4.98% $5,000 to $100,000 700 Ideal for home improvement and debt consolidation
Marcus of Goldman Sachs 6.99% $3,500 to $40,000 660 best online lender
TD Bank 6.99% $2,000 to $50,000 660 The best of a bank
Reached 8.94% $1,000 to $50,000 Nothing Ideal for borrowers with bad credit
best egg 5.99% $2,000 to $50,000 640 Ideal for borrowers with fair credit
Figure 5.75% $5,000 to $50,000 670 Ideal for borrowers with good credit
Axos 6.49% $5,000 to $50,000 720 Ideal for borrowers with excellent credit

Personal loan rate by credit score

The interest rates you can get depend on your overall credit health. Below are the average interest rates for borrowers, ranging from excellent to bad credit, based on data from Bankrate.

Credit score Average loan interest rate
Excellent (720-850) 10.3%-12.5%
Good (690-719) 13.5%-15.5%
Good (690-719) 13.5%-15.5%
Just (630-689) 17.8%-19.9%
Bad (300-629) 28.5%-32.0%

How to Compare Personal Loan Rates

When applying for a personal loan, potential borrowers should keep a few things in mind to help them get the best rates and the best personal lender for their situation:

  • Compare interest rates and fees: You may want to compare the APR range of a few lenders, but you may not be able to qualify for the lowest advertised rate. The interest rate you qualify for depends on your credit health and other approval requirements. If you can, prequalify for more specific pricing. You also need to factor in any fees that will affect the overall cost of your loan.
  • Prequalify if possible: Many lenders allow borrowers to prequalify for loans, allowing you to submit your financial information and learn the exact rates you qualify for. Knowing your exact quote from a lender will help you decide if it’s best for you, and you’ll be able to compare interest rates more accurately.
  • Consider the purpose of your loan: Every lender is different, and the right lender for you depends on the purpose of your loan and your specific needs. Personal loans have a wide range of purposes, from consolidating debt to financing large purchases such as weddings and vacations. How you plan to use your loan will affect which lender is right for you.
  • Consider loan amounts and repayment options: The amount of money you need to borrow could limit your choices of lenders, as different lenders allow different borrowing ranges and different repayment term options. If you need to borrow a large sum of money, you may want to find a lender with long repayment terms and a wide range of loan amounts.

How to get a lower personal loan rate

You can use some strategies to improve your chances of finding a better loan rate:

  • Sign up for automatic payment: Some lenders offer a discount on interest rates to borrowers who use automatic payment.
  • Choose a shorter repayment period: The longer your repayment period, the higher your interest rate is likely to be. If you are financially able to repay the loan in a shorter time frame, your interest rate will likely be lower.
  • Improve your credit score before applying: The better your credit score, the lower your personal loan interest rate is likely to be. You can take steps to improve your credit score over time.
  • Get a co-signer with strong credit: Some lenders allow you to borrow loans with a co-signer. If you co-sign a loan with someone who has good credit, you’re more likely to qualify for lower rates.

Comparison of the best personal loan rates

While personal loan interest rates have remained stable on average, different lenders offer different rates and overall experiences. Below are rates for some of the best personal lenders of 2022. These lenders performed well in the 2022 Bankrate Awards, each winning a superlative category.

Lender APR Amount of the loan Minimum credit score Discount rate superlative
LightStream 4.98% $5,000 to $100,000 700 Ideal for home improvement and debt consolidation
Marcus of Goldman Sachs 6.99% $3,500 to $40,000 660 best online lender
TD Bank 6.99% $2,000 to $50,000 660 The best of a bank
Reached 8.94% $1,000 to $50,000 Nothing Ideal for borrowers with bad credit
best egg 5.99% $2,000 to $50,000 640 Ideal for borrowers with fair credit
Figure 5.75% $5,000 to $50,000 670 Ideal for borrowers with good credit
Axos 6.49% $5,000 to $50,000 720 Ideal for borrowers with excellent credit

Personal loan rate by credit score

The interest rates you qualify for depend on the overall health of your credit. Below are the average interest rates for borrowers, ranging from excellent to bad credit, based on data from Bankrate.

Credit score Average loan interest rate
Excellent (720-850) 10.3%-12.5%
Good (690-719) 13.5%-15.5%
Good (690-719) 13.5%-15.5%
Just (630-689) 17.8%-19.9%
Bad (300-629) 28.5%-32.0%

How to Compare Personal Loan Rates

When applying for a personal loan, there are many factors to consider. Here are some of the things you should think about before choosing a personal lender:

  • Compare interest rates and fees: You may want to compare the APR range of a few lenders, but you may not be able to qualify for the lowest advertised rate. The interest rate you qualify for depends on your credit health and other approval requirements. If you can, prequalify for more specific pricing. You also need to factor in any fees that will affect the overall cost of your loan.
  • Prequalify if possible: Many lenders offer a prequalification option. This usually creates a soft credit check, so it won’t affect your credit score if you prequalify with a few lenders to see what your rate and loan details would be. Prequalification will help you compare interest rates more accurately when shopping.
  • Consider the purpose of your loan: Every lender is different, and the right lender for you depends on the purpose of your loan and your specific needs. Personal loans have a wide range of purposes, from consolidating debt to financing large purchases such as weddings and vacations. How you plan to use your loan will affect which lender is right for you.
  • Consider loan amounts and repayment options: The amount of money you need to borrow could limit your choices of lenders, as different lenders allow different borrowing ranges and different repayment term options. If you need to borrow a large sum of money, you may want to find a lender with long repayment terms and a wide range of loan amounts.

How to get a lower personal loan rate

You can use some strategies to improve your chances of finding a better loan rate:

  • Sign up for automatic payment: Some lenders offer a discount on interest rates to borrowers who use automatic payment.
  • Choose a shorter repayment period: The longer your repayment period, the higher your interest rate is likely to be. If you are financially able to repay the loan in a shorter time, your interest rate will likely be lower.
  • Improve your credit score before applying: The better your credit score, the lower your personal loan interest rate is likely to be. You can take steps to improve your credit score over time.
  • Get a co-signer with strong credit: Some lenders allow you to borrow loans with a co-signer. If you co-sign a loan with someone who has good credit, you’re more likely to qualify for lower rates.
]]> 5-Year Variable Student Loan Refinance Rates Drop For Second Straight Week https://woodyhouse.org/5-year-variable-student-loan-refinance-rates-drop-for-second-straight-week/ Mon, 28 Mar 2022 19:43:05 +0000 https://woodyhouse.org/5-year-variable-student-loan-refinance-rates-drop-for-second-straight-week/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest student loan refinance interest rate […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest student loan refinance interest rate trends on the Credible Marketplace, updated weekly. (iStock)

Pricing for Qualified Borrowers using the Credible Marketplace for refinance student loans tend to fall for 5-year variable rate loans, while rates for 10-year fixed rate loans are rising.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender during the week of March 21, 2022:

  • Rates on 10-year fixed-rate refinance loans averaged 4.02%, down from 3.80% the week before and 3.76% a year ago. Rates for this term hit their lowest point of 2021 during the week of November 22, when they were at 3.35%.
  • Rates on 5-year variable rate refinance loans averaged 3.12%, compared to 3.22% the previous week and 3.31% a year ago. Rates for this term hit their lowest point of 2021 during the week of November 22, when they were at 2.41%.

Weekly Trends in Student Loan Refinance Rates

If you’re curious about what kind of student loan refinance rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

Current Student Loan Refinance Rates by FICO Score

To ease the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least May 1, 2022. As long as this relief is in place, there is little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of low interest rates to refinance their student debt at lower rates.

If you qualify to refinance your student loans, the interest rate you may be offered may depend on factors such as your FICO score, the type of loan you are seeking (fixed or variable rate), and the repayment term. of the loan.

The chart above shows that good credit can help you get a lower rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms. Since each lender has their own method of evaluating borrowers, it’s a good idea to ask for rates from multiple lenders so you can compare your options. A student loan refinance calculator can help you estimate how much you could save.

If you want refinance with bad credit, you may need to apply with a co-signer. Or, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.

You can use Credible to compare rates from several private lenders at once without affecting your credit score.

How Student Loan Refinance Rates Are Determined

The rates charged by private lenders to refinance student loans depend partly on the economic environment and interest rates, but also on the duration of the loan, the type of loan (fixed or variable rate), creditworthiness the borrower and the lender’s operating costs and profit margin. .

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

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Bad credit van finance: how to buy a van if you have bad credit https://woodyhouse.org/bad-credit-van-finance-how-to-buy-a-van-if-you-have-bad-credit/ Thu, 24 Mar 2022 10:56:08 +0000 https://woodyhouse.org/bad-credit-van-finance-how-to-buy-a-van-if-you-have-bad-credit/ If you’re having trouble getting financing for a new van because of your bad credit, bad credit or a subprime van financing solution could help you get the utility vehicle you need. There are specialist lenders who may be able to help, although the deals available may not be as attractive as those offered to […]]]>

If you’re having trouble getting financing for a new van because of your bad credit, bad credit or a subprime van financing solution could help you get the utility vehicle you need. There are specialist lenders who may be able to help, although the deals available may not be as attractive as those offered to buyers with higher credit scores.

A bad credit score can be the result of a number of different factors, including a limited or poor credit history, unpaid debts, county court judgments, or default on payments in the past. A bad credit rating simply means that a lender will take a greater risk by offering you financing for a pickup truck because your credit history suggests you may have difficulty making your payments.

It’s usually much easier to get financing when you have good or excellent credit, but it’s still possible to get financing if your credit rating is poor or bad. When it comes to commercial vehicles, it can feel like a catch-22 where you need a van to work, but you have to work to prove you have the money to pay for the financing. There are ways to get out of this vicious cycle and buy a new van, whether you’re a small business, self-employed, or just have a less than perfect credit score.

Bad credit van finance: things to consider

First, if you’re having trouble getting financing, you can look for ways to improve your credit rating, such as getting on the voter rolls, paying off any outstanding loans, or closing accounts related to someone with bad credit. .

Bad credit van finance is generally a hire purchase agreement (HP) rather than a personal purchase agreement (PCP). While both types of agreements would allow the lender to repossess the vehicle if you fail to make the payments, HP is simpler with a deposit followed by a series of monthly payments after which you own the van. You can also opt for a personal loan.

HP agreements often have a higher monthly payment because the cost of the vehicle is spread evenly over the term of the contract. PCP contracts defer part of the cost of the vehicle to the end of the agreement and for someone with bad credit, it may be more difficult to pay a lump sum, otherwise known as a “lump sum payment”, to the end. With HP, once the contract ends, you own the vehicle.

A significant difference when you get van financing with bad credit is that you may need to put down a larger deposit of around 10% to lower your monthly repayments and get a more favorable interest rate. Another way to cut costs and make the path to a deal easier is to opt for a less expensive van until you can improve your credit rating.

To make it easier to get financing, you could ask someone to be your guarantor, which means they would be responsible for your repayments if you weren’t able to pay. However, you need to make them aware that it would impact their credit rating if they were also unable to pay.

How do you get bad credit van finance?

The actual process for getting approved for bad credit van financing is the same as getting any type of car or van financing. You will need to speak to the dealership or a financing provider and determine what kind of options are available to you in your particular situation.

It probably makes sense to research online what kind of funding deals might be available first. A credit check with one of the major credit checking agencies is free and will give you your credit score Experian, Equifax Where Trans Union and an online car finance calculator like our used car and van calculator will give you an idea of ​​how much you can borrow. Then it’s time to talk to find a vehicle and talk to the experts.

Can I Have Bad Credit Van Finance If I’m Self-Employed?

When it comes to obtaining financing for a van, a bad credit history is one problem and being self-employed is another. If both apply to you, getting financing is more difficult but still possible. If you’re self-employed you’re less likely to have a steady income with evidence you can show a lender, but if you can show regular income at a level that can afford repayments you’ll have a lot more to do. easy. .

Should You Get Bad Credit Van Finance?

If you need a van to run your business but are having trouble getting financing due to poor credit, this type of financing might be a good option for you. In addition to helping you maintain your business, Bad Credit Van Finance can help improve your credit score – as long as you are able to make all your payments on time and fulfill the contract. This would make it easier to get finance for a van in the future, and you’ll also own a van at the end of the deal that you can use to trade some in for a down payment on a better van.

Regardless of the type of financing, it’s always important to determine whether you can afford the monthly repayments you commit to. This is especially important to consider if you have a guarantor, because if you are unable to make the payments, it will fall to them or the lender may repossess your vehicle. Van finance offers with bad credit often have higher deposits and interest rates than other finance offers, but many van buyers who consider them have no other choice.

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Best Secured Credit Cards for Business https://woodyhouse.org/best-secured-credit-cards-for-business/ Tue, 22 Mar 2022 18:16:26 +0000 https://woodyhouse.org/best-secured-credit-cards-for-business/ Eligible business structures may include: If you are a sole proprietor or regular consumer, you cannot obtain a corporate card. Some corporate cards may also have quite high annual minimum earnings. Secured Consumer Credit Cards If your business does not qualify for a corporate card, the next best alternative is a secure consumer card. We […]]]>

Eligible business structures may include:

If you are a sole proprietor or regular consumer, you cannot obtain a corporate card. Some corporate cards may also have quite high annual minimum earnings.

Secured Consumer Credit Cards

If your business does not qualify for a corporate card, the next best alternative is a secure consumer card. We put several on our list for this reason. Secured cards are the best credit cards for bad credit.

Consumer secured credit cards have similar requirements to business secured credit cards. You will need to make a deposit to open and maintain the account. Consumer cards generally have lower minimum and maximum deposit limits than business cards. It also means that you will have less available credit to use.

Responsible use of your secured card over time can build or rebuild your credit. The most important step is to make all your payments on time each month. You should also aim to maintain a low utilization rate (how much of your available credit you are using).

READ MORE: What is a credit utilization ratio?

Business loans

Depending on your situation, you may qualify for a business loan. Many business credit cards will check your personal credit. With some business loans, your business credit may be higher.

Since sole proprietors generally do not have separate business credit, lenders will likely check their personal credit. However, if you have an LLC or corporation and strong business credit, you may qualify.

Consumer loans

If all else fails, you can try taking out a personal loan to cover major business expenses. There are all kinds of personal loans and lenders.

A standard personal loan will come in amounts ranging from $500 to $10,000 or more. The amount you can get will likely depend on your personal credit history. Your credit will also be factored into the interest rate you receive. Loans for bad credit tend to have high interest rates.

READ MORE: Best personal loans for bad credit

If you qualify for a personal loan, you can often receive funds within days. You will receive a lump sum deposited in your bank account which you can use for whatever you need. Personal loans are repaid in fixed monthly installments. The amount of your payments and the length of your loan terms will be determined during the application process.

Credit enhancement loans are a good option for anyone whose primary goal is to improve their credit rating. These loans are not ideal for obtaining the necessary funds to make purchases.

READ MORE: What is a credit loan and how do I get one?

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