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.
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.
If you’ve been putting off organizing your finances or if you get overwhelmed when you finally sit down to do it, stay calm and let us help you tackle your finances. Don’t let your big goals scare you, remember that big goals are accomplished after a series of small goals are achieved.
Start tackling your finances today with these six easy money moves:
1. Look into debt consolidation
If you’re dealing with various loans and credit cards, consider debt consolidation or refinancing. You can receive a personal loan offer in minutes. Use the loan to pay off your multiple debts and save yourself from the hassle of keeping up with many payments and due dates. Consolidation and refinancing can also significantly reduce your interest rate and can be obtained same-day in many cases.
2. Check your credit score
Haven’t checked your credit in a while? Take a deep breath and get a free copy of your credit report. Once you fully understand your financial situation, you can start to prepare a plan to achieve your financial goals.
3. Automate to save
Set up an automatic payment to transfer an amount into your savings as soon as your paycheck cashes. When the money is automatically put into your savings, you have less temptation to spend it.
4. Earn extra money without extra work
One way to earn extra money right now is to sign up for a rewards site like Ebates. Ebates provides you with cash back when you shop. You even get a gift card for just signing up.
5. Negotiate with your bill providers
We all hate sitting on hold with internet/phone/cable companies, but this temporary bother could save you money immediately. Most major providers will offer some discount if you ask.
6. Create a budget that works for you
Sit down and do it. It’s an integral part of managing finances. Get an idea of the income you have coming in as well as your spending habits before you try to set up a budget. There are many different budgets out there, and your first budget may end up needing to be adjusted later. Keep trying, and you’ll figure out a budget that works for you and your lifestyle.
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.
Before you start your search for a loan, it’s important to understand the basics. Below are common questions and answers people have when they start looking at loans.
What is an APR?
Annual Percentage Rate or APR is the figure that represents the amount of interest a lender will charge you as a yearly percentage. Interest is the charge that you have to pay on borrowed amounts; it is a way of paying the lender for their services. Lenders are required to disclose APR by law. APR is charged at both fixed and variable rates. A fixed rate interest will not be affected by external changes and represents the stock annual percentage rate of the finance charge. Variable rate programs are affected by indexes (economic indicators) and will fluctuate accordingly, charged according to the prime rate and an added percentage. If you are applying for a variable rate credit card, then ask your credit card provider how they determine that rate and according to which index. There may well be limitations set on how much and how often a variable rate can change.
What is debt consolidation?
Debt consolidation is a way in which you can avoid bankruptcy and destroying your credit rating entirely. Companies that offer debt consolidation services will combine (or ‘consolidate’) your arrears into one lump sum. You will pay one monthly amount that the debt consolidators will then dispense variously to your creditors. Debt consolidation professionals will negotiate with creditors to help you get better repayment terms and lower interest rates. These companies aim to help you get out of debt faster than you would on your own and can help stop you going under completely.
What is a loan?
A loan is, on its most basic level, an arrangement between lender and borrower where the lender provides the borrower with money or property, and the borrower promises to return it at a later date, usually along with some interest. Loans comprise two parts- the amount borrowed and the interest. Interest represents the charge the lender imposes for the services they provide, it is also called APR and is expressed as an annual percentile of the total amount borrowed.
What is a student loan?
Student loans are a popular form of financial aid used by college students. As a college student, you can get hold of both subsidized and unsubsidized loans. Subsidized loans are funded in part by the Federal Government, and you will simply pay back the money you have borrowed, without any interest. Unsubsidized student loans work like any other borrowed finances, and you will have to pay back the interest on the loan in addition to the money originally borrowed. All student loans must be paid back in full regardless of whether or not the student graduates.
What is a payday loan?
A payday loan is a short-term loan that is deposited directly into your checking account, usually within 24 hours. At an agreed time the money that you have borrowed will be removed from your account in addition to the charge that the loans company imposes upon you. The service fee will be dependent upon the size of the loan and your credit history. For a further fee, you will usually be allowed to extend your loan. Payday loans are also often referred to as bridging loans and can be useful for those mid-month times when cash is tight, and you have bills to pay.
What is a personal loan?
A personal loan is a type of unsecured loan available to individuals. It is not guaranteed by any collateral, and for this reason, they usually have higher interest rates than other types of secured loans. Personal loans can be obtained for pretty much any purpose– you might want a personal loan to fund that holiday you’ve been dreaming of, to redecorate the house or just to cover unexpected bills.
What is a mortgage?
A mortgage is an amount of money borrowed from a bank or other lender for purchasing a property. The property is itself, used as security against the loan. When applying for a mortgage, you will agree to pay back your loan over a fixed period of years, usually in monthly installments.
What is a home equity loan?
A home equity loan, also commonly referred to as a second mortgage, is a popular form of financing where your home is put down as collateral and security for the loan. This means that your home is at risk if you do not keep up repayments, but can enable you to procure more favorable interest rates and also tax benefits. The interest accrued on a home equity loan is tax-deductible up to $100 000; other loans offer no such benefits. With a home equity loan, you will borrow a lump sum of money and agree to pay it back over a fixed term of years with either a fixed or variable interest rate. A second mortgage works in just the same way as a regular mortgage
What is an auto loan?
Auto loans are loans provided to purchase a vehicle. Often your car dealer will try and provide you with auto financing, but cheaper rates are far more likely to be found elsewhere. It is possible to be pre-approved for an auto loan before you even start looking for your car. Often this is the wisest way to act as you know all your options and spending limits right from the start.
What is a secured loan?
A secured loan is a loan requiring you to put up some type of collateral as security for the loan repayment. Most commonly this will be your property, and your home will be at risk if you fail to keep up repayments. As secured loans present lower risks to the lender, you will usually be rewarded with lower interest rates on secured loans.
What is an unsecured loan?
An unsecured loan is a sum of money that can be borrowed from any lender. Unsecured loans are not tied to anything, and for this reason, the interest rates charged on them are slightly higher. If you apply for an unsecured loan, then you will receive a sum of money which you will be required to repay, usually in monthly installments. Different lenders have different repayment options so check with your loan company about the choices they provide.
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.
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.
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:
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.
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.
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.