5 Personal Loan Mistakes You Can’t Afford To Make

The versatility of personal loans makes them attractive to consumers in need of extra funds. Personal loans can be used for helping consolidate debt, to renovate or remodel your home, financing travel, or anything you desire. Whatever you need the financial help of a personal loan for, you can’t afford to make mistakes when choosing the best personal loan for your needs. Mistakes could hurt your finances for years to come.

To get the best personal loan for your circumstance and to keep your finances healthy, avoid these mistakes:

1. Failing to compare options

Don’t settle for the first personal loan offer you receive. Interest rates, fees, and terms can vary immensely between lenders. In addition to checking with your bank or credit union, check with online lenders for offers. Competition between online lenders is stiff, so many will offer you lower rates than you’ll find with your bank or credit union.

2. Overlooking fees

Many borrowers are looking at the loan rates when comparing loan offers. Borrowers who overlook the fees and costs of each loan may end up paying far more than expected. Many lenders charge an origination fee. The origination fee is typically calculated as a percentage of the amount borrowed, usually 0.5%-2%.

3. Lying on the application

Not only is lying on your application illegal, but it can also hurt your chances of getting approved for a loan. Not all lenders check all details of your application so a lie may not be noticed, but if a lender realizes you gave inaccurate information, they can deny the loan. If the loan has already been issued and the lender realizes you lied, they can consider the loan a default and immediately ask for repayment. Be honest with lenders.

4. Skipping over the fine print

Before signing a loan agreement, lenders should always review ALL of the contract. Reviewing allows you to notice things like fees or terms that may differ from your first offer. Be on the lookout for hidden details because they can be proof of the lender being a predatory lender.

5. Not changing spending

If you’re borrowing a personal loan to consolidate debts or because you’ve mismanaged your money, you risk ending up in a worse financial situation if you borrow a loan and don’t adjust your habits. Before taking out a loan, borrowers should revaluate spending. Adjust your budget to avoid being in even more debt after you take out a loan.

What To Do If You Owe More Than You Can Pay In Taxes

It’s tax season! For some, this means we have cash to look forward to. For the remainder, it means another bill. Tax day 2018 is Tuesday, April 18th. If you’re one who owes and find yourself unable to pay, what should you do? First, you should make sure you at least file your taxes. Don’t let your inability to pay to keep you from filing. There are options if you find that you’re unable to pay:

Get a short-term payment extension

You can apply for a short-term payment extension through the IRS if you know you can pay the full amount owed in 120 days or less. The application can be done online at IRS.gov or by calling the phone number on your tax bill.

Apply for a payment plan

Using Form 9465, you can apply for a payment plan if you owe $50,000 or less. The process can also be completed online or on the phone. The IRS charges a low fee for payment plans, but it may be your best option depending on your credit card rates or financial issues.

Settle for less than you owe

The IRS may offer you the option of an Offer in Compromise (OIC). The OIC allows you to settle the tax amount you owe for less. Offers can vary, but it’s worth looking into if you find yourself struggling to pay your tax balance.

Consider a personal loan

Depending on your credit card rates a personal loan may be the best option to pay your tax debt. Personal loans often offer lower rates than those on credit cards and may offer a fixed term, rate, and monthly payment for you. You can check your rates and offers without impacting your credit score by filling out our quick form.

Pay with a credit card

Not the ideal option, but an option nonetheless. The IRS accepts the major credit cards, and payment can be done online or by phone. Credit card payment should not be the first option you choose because the interest and fees you’ll pay can add up quickly and hurt you financially.

Whatever your situation is, don’t avoid the IRS. Tax bills won’t just disappear, and failure to pay can lead to your passport being seized. Don’t be afraid to give the IRS a call. They’re willing to work with you if you reach out.

How to Apply for a Cash Loan and Get Approved Quickly

Applying for a cash loan is a simple process:

Check the qualification policy to make sure you qualify. Check that someone is available to answer any questions you may have. Lenders should not leave you wondering what the status of your application is. Although the price is important, customer service is also important. What if you are sent the wrong amount, or there is a billing issue? TCA Loans only deals with lenders that have a solid reputation.

What are your options if the unexpected happens and you can not pay off your loan? The best thing to do is to contact the lender as soon as you find out that you can not pay them (due to your employer changing paydays, or other reasons). It helps if you can provide documentation or contact (such as your boss, or payroll company), to verify your situation. Most lenders are flexible, and would rather get paid late, than not at all.

Being honest will help your situation. Some people think that exaggerating may help them (more extended time on the job than they have, higher income than they have, etc.) If a lender feels that you are exaggerating or lying, they will decline your request for a loan. This is because it takes too much time to find out the truth from you. If they see that you are honest, then they are more likely to approve your loan.

Once you get a loan, remember the following valuable tips:

Do not default on your loan. If you do not, this causes you all sorts of problems, like extra NSF fees from your bank if the payments bounce, and possible fees charged by the loan service. Also, the lender may send your account to a third party collections agency. This will also show negatively on your credit report and can cause problems for years.

Keep your NSF (non-sufficient funds) charges down in your checking account. If you have too many, it is also a red flag. Keeping the “red flags” to a minimum will result in a better approval rate for you.

If you need a loan, TCA Loans can help. These tips will help you better manage your money and reduce the stress that comes with financial difficulty. Once you have submitted your application, approval can occur within about an hour, and all of our lenders are discreet.

Online Secured Personal Loans – A Low-Cost Finance Option

If you own property, then it may be beneficially used as a tool for securing a loan. When you hold property, the process of borrowing a loan is of low cost and is less burdensome than without. The prime concern of lower interest rates and earlier approval of the loan is met when you opt for an online secured personal loan. You can use the loan amount for any personal purpose like home improvement, meeting medical or educational expenses, enjoying a holiday, or even for clearing debts.

All that is required for online secured personal loan approval is filling out a simple online application, providing essential details like loan amount, purpose, repayment duration, and your basic personal information. The lender verifies the details, and after finding you a suitable candidate, the approval comes immediately.

You are also required to put up your property such as your home as collateral with the lender when borrowing a secure loan. With a secured loan, the lender will approve greater amounts ranging from a few thousand to multiple thousands of dollars with an online secured personal loan. The interest rate is the main advantage of a secured loan. You have access to the loan at lower interest rates. Also, if your credit history is good and you have sound repayment capacity, then further reduced interest rates are possible to attain.

Most often, online secured personal loans are cheaper for the borrowers. Online secured personal loans go a long way in improving financial health as you can do works like home improvements at a low cost and enhance the value of your home. The loan amount is not a burden as it can be paid back in a term that suits the repaying capability of the borrower.

Do not worry about your bad credit. Because your property is used as collateral, the lender can afford to ignore bad credit. But be careful, or you risk losing the collateral to the lender. Check with www.tcaloans.com to find online secured personal loans, personal finance loans, and instant personal loans.

Get The Money You Need Through Cheap Personal Loans

You can take a loan from one of the numerous sources such as www.tcaloans.com but what matters the most is the interest rate you’re offered for the loan. The interest rate can later make or break you if you’re not cautious when evaluating what you can afford. A higher interest rate may sink you in debt as the loan goes beyond what you can afford to repay. Cheap personal loans enable you to take finance at lower interest rates to help keep you debt free. Borrowers can utilize cheap personal loans for many needs such as home improvements, making payments for various expenses and going on a holiday trip. One can also pay off all previous debts of higher interest rates through cheap personal loans.

When taking out a cheap personal loan, borrowers should consider taking specific steps. First, check your credit score. If your credit score is fine (Usually 620 and above) then getting a cheaper personal loan becomes relatively easy as lenders see this credit score as a safe and low risk. If your credit score is not optimal, you should try to make efforts to eliminate easy debts.

Secondly, to take out cheap personal loans, you should consider a secured form of the loan. You can bargain for a lower interest rate if you’re able to take the loan against any of your property such as home, vehicle, valuable papers, etc. For borrowing more substantial loan amounts, borrowers should place collateral that has higher equity in it. Collateral of higher equity is also helpful when asking the lender for a cheaper interest rate.

Another step towards borrowing a cheaper personal loan is using the medium of the internet. You should apply for the loan online. The online application allows you to view numerous loan offers from many loan providers in response to your loan application. From the luxury of your home, you can choose the loan package that suits your budget.

Tenants and non-homeowners can also take cheap personal loans. Because these people do not own property that they can offer as collateral to the lender, they should produce evidence of their regular income and financial standing if any to convince the lender of the security of lending to them. This way they can avoid higher interest rates which would otherwise be offered to these borrowers.

The interest rates are charged reasonably. Numerous lenders offer the interest rates at discounts so that it is not hard to spot cheap and low-interest rates. Moreover, you should be smart while hunting for interest rates especially if bad credit has already staggered your credit status. Using tools like loan calculators, applicants can make out the monthly installments before signing off on the loan.

A cheap personal loan can be an opportunity to revamp your credit profile and create a platform from where materializing personal ends becomes simple. Consolidation of debts, decoration of a house, weddings, higher education, and more can be incurred in a single amount. To access these provisions quickly, use the online application. The online application is a fast and straightforward process via which applicants can approach lenders around the world at any time.

Common Loan Terms You Need To Know

The following terms and their definitions provide a brief overview of terms you’ll run into when looking at lenders and loans.

Amortization: Calculates the entire loan payment including interest on the outstanding balance which is to be paid off at the end of a fixed period

Annual Percentage Rate (APR): APR is the interest rate charged on the loan. Expressed as a percentage, APR is the yearly cost of the credit

Bad Debt: A debt which is unlikely to be paid, therefore unprofitable to the lender

Collateral: Property put as a security against the amount borrowed

Credit Score: A numerical value used by lenders to predict how likely an individual is to repay a new loan

Creditworthiness: Past and future ability of a borrower to repay debts

Dealer Charges: Amount charged for features sold separately by an auto lender such as undercoating or service offered in warranty period

Default: Failure to repay a loan or failure to meet the terms of the loan agreement

Down Payment: Amount paid by the customer in cash or trade-in value to get an auto loan in order to finance the remaining of the purchase price

Equity: Difference between the market value of a property and the outstanding mortgage on it

Late Payment: A payment made later than agreed upon

Loan Application: Is the primary step in obtaining a loan. It involves filling of the loan application form

Loan Calculator: It determines the amount of monthly payment that a borrower has to pay on the loan borrowed

Prepayment Penalty: A penalty imposed by the bank on the early payments

Term: The specified period of time for which the loan is provided by the lender

Title: A document which gives evidence of an individual’s ownership of a property

Upfront Costs: Any fees or charges that are collected in advance, before a loan is advanced

8 Tips For Paying Down Student Loans

1. Don’t ignore your student loan debt.

Just because you’re avoiding the debt doesn’t mean it doesn’t exist! Avoidance can lead to severe consequences like delinquency and default; both can leave your credit score in shambles. Besides, default can lead to your wages being garnished and tax refunds seized by the government.

2. Know the details of your loan debt.

Knowing the details of your lender’s information, loan balance, and repayment status is essential when paying off your student loan debt. You can access federal loan information at www.nslds.ed.gov. For private loans, look for related paperwork you signed or contact your college or university.

3. Know the repayment options and their guidelines.

Most loans, both federal and private, offer multiple repayment options. Read over your options, including all fine print before choosing. Keep in mind that while extending the length of your loan will lower your monthly payment, the loan will cost you more through the interest in the long run. Options such as income-based repayment and related income-driven repayment options should also be looked at.

4. Pay more than the minimum payment anytime you’re able.

Be willing to sacrifice some comfort now to pay less in interest overall. When you have any amount of extra money, put that money towards paying off your loan debt. You’ll thank yourself later.

5. Start by paying off the most expensive loans.

It might seem obvious but if you have multiple loans, begin by paying off the most expensive ones first. Don’t avoid other loans but put any extra amount you can afford into paying off the highest interest rate loans first.

6. Consider consolidating or refinancing your loans.

If you’re struggling with multiple student loans, look into consolidating or refinancing. Consolidating and refinancing allow you to pay off the various debts with one loan, leaving you with only one payment to worry about. Consolidating and refinancing can also give you access to lower interest rates than you have currently.

7. Look at loan forgiveness programs.

Usually involving government or non-profit employment, loan forgiveness programs can offer you relief from all or a portion of your loan debt, in exchange for work. Before deciding to take part in a forgiveness program, consider all employment options. It might be smarter for you to take a higher paying job somewhere else instead of going with a loan forgiveness program. Carefully read all details of these programs.

8. Find other ways to save and earn income.

Besides putting yourself on a budget, research other money-saving or money-earning opportunities. This could mean not taking that vacation this year or perhaps taking a second job. Spend smart and budget accordingly.

A Final Word

Approach your student loan debt as a challenge. Come up with a plan and strategies to stay on the path to repayment.

If you’re nearing default or can’t handle your loans suddenly, consider one of our personal loan options. Regardless of your credit history, you can quickly get the money you need to manage your loan payments.

Is it a Good Idea to Pay Off Student Loans with a Personal Loan?

If your student loan debt is getting you down, you may be looking for any solution to make the payments more manageable. One often-overlooked option for dealing with student loan debt is taking out a personal loan. Taking out a personal loan to pay student loan debt may not be the best option for some. To help you determine if it’s a good option for you, we’ve listed some pros and cons of using a personal loan to repay student loan debt:

Pros

  • A personal loan may allow you to consolidate your student loans leaving you with only one monthly payment to keep up with.
  • You may be able to access a personal loan with a lower fixed-rate than what you have with your student loans.
  • A personal loan can provide you with a fixed interest rate as well as a fixed repayment period.
  • If you have a cosigner on your student loans, repaying the student loan with a personal loan would release your cosigner from their obligations.
  • A personal loan can be discharged in bankruptcy, unlike the majority of student loans.

Cons

  • The interest on a personal loan is not tax-deductible like it is with student loans.
  • Personal loans don’t offer benefits like deferment or forbearance as federal loans do.
  • The personal loan lender may have a limit to how much they allow you to borrow.
  • The personal loan rates offered to you may not be lower than your student loan rates.

A Final Word

There are a myriad of options for you to consider when looking to make your student loan debt more manageable. Whether or not a personal loan is the best option for you will depend on your credit history, your financial situation at the moment, and what you’d like your financial situation to look like down the road. If you decide to go forward with a personal loan, you can fill out our hassle-free application form here.

Debt Consolidation Personal Loans: The Basics

You can always opt for a debt consolidation personal loan if you are struggling with paying back multiple loan debts. Debt consolidation personal loans allow you combine all your loan debts into a single loan at a lower interest rate.

Debt consolidation personal loans are accessible as both secured and unsecured loans. You can opt for a secured loan if you have assets to offer as collateral. Secured debt consolidation loans offer lower rates of interest compared to unsecured loans. Since no collateral is required for an unsecured debt consolidation personal loan, you are charged a higher rate of interest because of the risk involved for the lender. Loan amounts can vary from a few hundred to multiple thousands of dollars, and repayment terms vary depending on lender and amount borrowed, often ranging from five to twenty-five years.

Because of rivalry in the market, you can obtain the loan at a lower rate of interest. You can receive it at an even lower rate if you qualify for a secured loan. Unsecured debt consolidation loans may be the only option to assist people with bad credit record, insolvency, defaults, etc. There are many institutions where you can obtain loans such as banks, monetary institutions, etc. but you do not have to look for the market for such loans. You can find the ideal loan for your situation online. Many applications can be completed online, often with better rates and terms.

If you are committed to paying back the loan and make payments on time, the loan will positively impact your credit history.

Debt consolidation personal loans are meant for those who are anguished with many loan debts. These loans consolidate all loan debts from many lenders into one, the single loan which should be paid monthly. Both secured and unsecured loans are available. You can select the one that best meets your needs.

Disclaimer: Modern Lending Solutions (modernlendingsolutions.com) is not a lender. We offer a matching service for connecting potential borrowers with financial institutions. Loan amounts, rates, and terms will vary based on lender’s decision, and approval is not guaranteed.
Offers provided to customers feature rate may no greater than 35.99% APR with terms from 61 days to 180 months. However, your actual rate depends on credit score, loan amount, loan term, and credit usage and history, and will be agreed upon between you and the lender. An example of the total amount paid on a personal loan of $5,000 for a term of 36 months at a rate of 10% would be equivalent to $5,808.09 over the 36-month life of the loan.