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Common Ways of Using a Personal Loan

Demarcus Burnett 28/02/2021 0 Comments

The good thing about a personal loan is that you can use the money the way you want. For instance, you can use it to consolidate your loans, renovate your home, or get a new pair of shoes. In fact, quick approval personal loans can be used for a range of purposes. Since they are unsecured, you do not put up collateral like a car or house.

It is advisable to use a personal loan to boost your finances. These are the popular ways of using a personal loan.

Consolidating Loans

You can use a personal loan to consolidate loans that have high-interest rates. That is because the rate of a consolidation loan should be lower than the combined rate of all other loans. If you have huge debts that require several years to pay, then you should consider consolidation.

Refinance Current Loan

Most lenders and banks allow refinancing of loans. The good thing about refinancing is that you get a loan that is lower than the rate of the loan you currently have. You should note that this is different from refinancing your student loan. Moreover, you cannot use a personal loan to repay your student loans.

Pay Medical Bills

The truth is that personal loans can cover both dental and medical bills. You can even use your loan to pay for expensive cosmetic surgery. However, it is not recommended to use a personal loan to pay a medical bill that does not attract interest. You should only seek a medical loan after exhausting all the options you have. Only get the loan if it is the cheapest means of paying your medical bills.

Home Renovation Project

A personal loan can be used to fund your home renovation project. This type of loan is recommended when you do not have equity in the home. Also, it is the best option when you do not need to use the home as collateral. Moreover, you will enjoy an extended repayment term and lower interest rate than a home equity loan.

Weddings and Anniversaries

You can bankroll your wedding with a personal loan. As you know, the cost of a wedding is quite high. When you get a loan, you can budget accordingly. The fact that the loan has fixed monthly payments, you can easily pay off the loan. You can also use the loan for traveling and vacations. There are lenders that offer travel loans.…

Annette Schmit 21/08/2018 0 Comments

Taking a loan puts you into a financial commitment where you have to remit money for repayment each month, or in a lump sum until you clear the loan. This makes it important to consider a variety of factors before taking any loan to ensure that you make the right choice. Some of the top considerations to make are discussed below.

Top considerations to make

Type of loan

There are various types of loans which you can take. Your decision on which one to take may be dictated by your reason for taking the loan. The most common ones include personal loans, business loans, mortgages, student loans, auto loans, and equity loans among others. You may have to consult your financial advisor to know the various options that you have depending on your qualifications and needs.

Credit history

A majority of lenders will offer you a loan based on your credit history. This is more of the case for personal unsecured loans, as no collateral is used to cover the loan. If you have a low credit score, you should try to improve it so that you can qualify for high loan amounts. Paying up all your minor debts, for example, can help you to improve the score. There are some lenders who offer loans for bad credit. You can consider borrowing from such lenders if your credit history is bad and you are struggling to get a loan.

Your financial situation

You should also consider the financial position that you are in. This will be important in determining the amount of money which you should borrow. Make both monthly and yearly budgets to help you figure out the amount of money that you can spare from your income to service the loan. Make sure you take an amount which you can afford to repay without getting into financial trouble. Consider the terms and duration of repayment as well as it will determine the amount of money which you have to repay each month.

Interest rate

In most cases, the lender will charge interest on the principal loan amount borrowed. The rate usually varies for different lenders. You should shop around for the best interest rates to minimize the total amount which you will have to repay. Remember to consider all the possible hidden charges such as appraisal fees, origination fees, administration fees, processing fees, underwriting fees, and credit report fees among others.…

Demarcus Burnett 07/02/2018 0 Comments

At times you may find yourself in situations that require a financial solution. Some of them may not come by your wish but occur accidentally. Medical emergencies can arise which may amount to large sums of hospital bills. Failing to pay them may see you stay in the hospital longer than expected which also means you have to pay more for the extra days. If you are not in a good financial situation, you can borrow money from banks and other lending institutions. Banks will lend you money on the condition you will pay back with interest. There are those who may have borrowed money before and failed to pay back in time which got them blacklisted. You should not worry because you can get loans with your poor credit score.

Online lenders are some who can provide you with loans even though you have been blacklisted. The vital information they will require from you is your details and your occupation. Some institutions will need you to come with a co-signer or guarantor who can be held responsible if you fail to repay your loan on time. You can avoid all these inconveniences by instilling self-discipline in yourself and making timely payments. Here are some things you can do to repay your loan on time.

Use reminders

You can set reminders on your phone that will alert you to repay your loan after a specified period. Be strategic and set your reminder days or weeks before your repayment deadline. Some banks or lenders will send you SMS notifications on your phone reminding you to repay your loan.

Invest in your loan

Before making any loan application, you should understand the reason for borrowing. If it is not for emergency reasons, then you should make good use of that money by investing. There are instances where people borrow for leisure activities which is a move they come to regret later on. Investing in that money will see you making profits which you can use to repay and remain with some.

Make partial payments

You can make partial payments that will see you repay the whole amount in due time. Look at your repayment period and set dates where you can pay quarterly or fewer amounts till you complete the full payment. It can be on a weekly, daily or monthly basis depending on your repayment timeframe.…

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