loans and credit

Personal loans for fair credit may seem difficult to obtain, but they aren’t. In order to find personal loans for fair credit, an individual can get a loan from an auto finance center, credit card company, or bank. You can start looking for personal loans for fair credit in your hometown. Getting a personal loan for fair credit takes a lot of time and research. There are many companies that offer personal loans for fair credit, but no one knows about them. You can ask close family and friends about places you can obtain a fair credit personal loan. The next place you can look is online.

Auto finance companies are a good place to obtain a personal loan with fair credit. Search in your hometown for personal loans. There are many finance companies that will allow you to borrow money on your vehicle. Your vehicle will be used as collateral. The amount of money you receive will be based on how much debt you have and the worth of your vehicle. You may even be able to obtain a personal loan, if you do not have a auto loan with them. If you happen to have an auto loan with them already, you may have to wait a year or two before they will allow you to borrow any money. When you are borrowing money on your vehicle, the finance company gets the title to your vehicle. If your vehicle is with another company, the auto company may pay your car off and give you an additional loan.

Credit card companies offer personal loans for consumers. Some credit card companies won’t give you a personal loan, unless you receive an invitation in the mail. Capital One Bank is an example of a credit card company that offers personal loans through invitation only. Your bank may be a good place to obtain a loan with fair credit. If you are in good standing with your personal bank, they will consider you for a personal loan.

There comes a time in a person’s life when they will need to apply for personal loans because of an unexpected emergency. You may need to receive a loan as soon as possible. Some personal loans can be received quicker than others. It all depends on the financial institution. Most of the time if you are in good standing with a finance company, they will write you out a check either the same day or the next. In order to apply for a personal loan, you may need to check your credit report to see if there is anything on your report that will stop you from receiving a loan. You can receive all three of your credit reports for free at the AnnualCreditReport website. If there is any debt showing that isn’t yours, you can have it removed. Once you are ready to apply for personal loans, there are two places you can receive one quickly.

Payday Loans

One of the fastest places to obtain a loan is through your local payday loan center.  These personal loans can even be obtained even if you have bad credit. With a payday loan, you may borrow up to $1,500. The money may have to be repaid back quicker, but you will be able to receive the money into your checking account in 24 hours or less. In order to receive a payday loan, you must have a valid checking account and a steady monthly income of at least $800. You can apply online at MoneyMutual.com. The information that you input online will be kept safe and secure.

Finance Companies

Another place that you can get a quick loan is through your finance company. Many people have a finance company that they used to purchase furniture or a car. If you are in good standing with the finance company, they may allow you to borrow some money. You can call or go into the finance company’s office to see if you qualify for a personal loan. If you qualify, you may walk out of the office with a check.

It’s not impossible to get personal loans for people with bad credit, but getting the right loan, at the best rate, takes some know how. We’ve all gone through some ups and downs in our lives with our finances, but just because you may be a little down right now, it doesn’t mean that there’s no hope.

Personal loans with bad credit are indeed out there, but before you make any decision that will impact your credit profile for the future, you should be doing some research, and asking some important questions to ensure that you don’t make the same mistakes that so many other people have. These then, are a few things you should be considering:

Is My Credit That Bad? There’s only one way to be sure, and that is to look at a copy of your credit report, which you can get for free from someone like Experian, Equifax, or TransUnion. People make mistakes, and you should examine your report to be sure that it is both error free and not out of date. You may end up being surprised, and able to save yourself some money.

Where Will You Get The Loan? Loan offers seem to be everywhere these days, from banks and credit cards, to credit unions and payday loans. While some of these are better offers than others, it is strongly suggested that you go online to double check rates. Since you are able to search a much wider network of lenders, your chances increase for getting a better loan.

Be Smart About Your Loan. You may receive a number of different personal loan offers, but besides choosing the best rate and terms, you should think carefully before accepting a large loan. Do you really need all that money? Typically, the smart move is to borrow only what you need, and try to pay it back quickly. Done correctly, you will be helping your credit score instead of worsening it.

Don’t Fall For A Bad Personal Loan.

This is where a financial adviser (FA) might come in handy, if you aren’t totally comfortable with the loan process. A FA is often able to offer more insight, as well as valuable tips and other information, which all might help to save you some money.

Just because times are tough, it is no reason to panic, or to make rash decisions—instead, do a little research and gather some helpful hints concerning getting a personal loan. The time that you take now will serve you will in the near and distant future, and will probably save you some money!

Personal loan rates have a big impact on whether consumers decide to take out a loan. Some of these loans are taken out of necessity for things like debt consolidation, college tuition, critical home repairs and such. Others are taken out for pleasurable things like new toys and vacations. You might think banks would always keep their rates low so more people can borrow. But the rates vary depending on the times, and depending on a person’s credit report.

Why Do the Interest Rates Vary?

The rates for personal loans vary depending on a couple of things: the prime lending rate and personal credit history. Banks base their loan interest rates on the prime lending rate — the rate that only the most qualified customers get. Anyone with less than stellar credit will get a higher rate. If a customer has good credit, he will get a higher rate than what prime is. One with fair credit gets a little bit higher rate, and a consumer with bad credit usually gets a very high interest rate. With that in mind, consumers do have some control over the personal loan rate they get.

How Do Personal Loan Rates Affect the Economy?

Borrowing and lending have an influence on the economy — nationwide and worldwide. When rates are high, fewer people borrow; when they are low, more people borrow. When people borrow, they spend; and when they spend, the whole world is happier and more prosperous. These good times end when consumers have borrowed more money than they can pay back, and they start to default on loans. That makes personal loans more expensive. Then the cycle starts over.

The best thing to do about personal loan rates is to keep your credit in top-notch shape. If you do that, even in hard times it will be easier for you to get financing. In addition to that, it is a good idea to plan on taking out loans when the economy is good and loan rates are lower. Remember that cycle you read about above? Eventually, it will swing in your favor.

The cost of getting unsecured personal loans is going down; at least, for the time being. Early in 2011 several banks announced that they have dropped their rates for unsecured loans. Bank of America, Kaiser Federal and Wells Fargo, among others, have gotten into the act by offering rates starting as low as 2.99 percent up to 4.99 percent. It seems that they are interested in making a customer out of you. Why did this happen all of a sudden?

Personal loans, whether secured or unsecured, are big business for all banks. When the economy took a turn for the worse, the banks companies lost business. They lost it because people were uncertain about the futures, and because people had lost their jobs. People without jobs are not good prospects and not usually eligible for unsecured personal loans. As workers started back into the workforce, the economy started to show a spark of life. With that renewed optimism, the banks decide to attract new customers — customers who could once again afford and qualify for a loan. The plan is to not only get those prospects, but also others who are still working, but on the fence about taking out a personal loan.

Secured personal loans have not been as much of a worry for banks as far as borrower eligibility goes. By nature, something is on the line for the consumer that makes them more prone to paying on the debt. Additionally, if the consumer defaults, the bank has a way to get some or all of its money back. Although based on good credit and good faith, unsecured loans do not offer that kind of safety.

While the interest rates for unsecured personal loans are so low, this might be a good time to take one out. You can use it to pay off or consolidate debt, make home improvements, purchase a car, finance school or most any other thing you desire. When it comes to this kind of loan, the bank is not interested in why you need it, they are just glad that you do.

Getting personal loans for bad credit may be easier than it used to be. At this time, many banks and finance companies are opening the doors to customers who have less than perfect credit. This is understandable considering the economy of the world right now. The loan companies had to find a way to get back customers, and that involved taking in those who have suffered though tough financial times. You can believe that the banks have not done this out of the goodness of their hearts; they need money, too. If they don’t provide bad credit loans, they are turning away a lot of business.

The brightest side of the loan companies offering personal loans for bad credit is not just that they will make more money, but that it does stimulate the economy. People borrow money to buy things, and when they buy things, everyone prospers: business owners, workers, the government and anyone else in the financial food chain. It’s a beautiful thing to see after going through such an uncertain phase.

However, bad credit personal loans do not come without a price to borrowers. They are easier to get now, and the interest rates have come down, but that does not mean they are terribly low for those suffering from the bad credit plague. Consumers can expect to have interest rates that are 50 to 100 percent higher, and sometimes more, than those with a good credit history will be charged. But that does not mean the loans are not worth the cost. Providing they are used responsibly, they can be very beneficial in paying off other debt, consolidating debt and even rebuilding credit. There is always a high cost for that.

All things considered, the availability of personal loans for bad credit seems like a good thing. It is the telltale sign of the whole world seeing the proverbial light at the end of the long, dark tunnel it has visited. As the money starts to flow again, the snowball effect occurs. More money breeds more money, and that breeds more spending. That is good for all of us.

Personal loans for fair credit are available for consumers whose credit is not bad, but it is not that great, either. Bankers know that people go through tough times now and then, and that they need a little help. Though they may be reluctant to lend to someone with bad credit, they will often welcome those who fall in between good and bad. That is because those borrowers show hope. It can mean they are recovering from hard times and have started to rebuild, or it may mean that there are minor blemishes due to a lay off or maybe medical bills. Those things can happen to anyone.

People with the highest credit ratings get the best rates; those with the lowest get high rates. A fair credit history will fall somewhere in between. Rates, of course, vary from year to year, but overall you can figure that good rates will be around 10 percent or less. Higher ones can be up in the 20-percent range. Fair, or average credit, will normally be around 12 to 18 percent, depending on the prime rate, which typically runs about three percent higher than the federal funds rate.

Do not rule yourself out of the game if your credit is not perfect! You are a long way from being on the sidelines, thanks to the availability of personal loans for fair credit. As long as you understand the interest rate will be a little higher, you will do fine. In fact, one of these loans is the perfect opportunity to get that good credit history you deserve. By taking out the loan and paying it back as agreed, your next loan will likely have a lower interest rate. If you keep that up, financing will be easy for you to get, and it will be much more affordable. Some people with excellent credit qualify for personal loan interest rates that are so low that they practically nonexistent. In that situation, it is almost like the bank borrowed money from you!

Ditching your credit card, and paying for more of your purchases with cash or debit cards, sounds like a great idea, until, that is, you check your free credit report. That’s because using a credit card responsibly is one of the best ways to build a solid credit score. And today, lenders, whether they’re passing out mortgage, auto or personal loans, rely on those three-digit credit, or FICO, scores to determine not only who qualifies for loans, but how high their interest rates will be. Of course, the key here is to use your credit cards responsibly. Check your free credit report after you’ve run up huge amounts of revolving debt or missed several credit card payments in a row, and you’ll find that your credit will have suffered immensely. A better plan is to rely on all three methods of paying for your purchases: cash, debit cards and credit cards.

Credit Card Use Falling?

There was a time when it seemed as if people were paying for everything with their credit cards. They’d get a hamburger at their local fast-food joint and put it on their plastic. Today, though, that trend seems to be diminishing. A recent survey cited by CBS said that 28 percent of consumers planned to increase their use of debit cards while decreasing the amount of purchases they make with their credit cards. This is a sound financial move. However, it should be noted that credit cards don’t have to be evil. If you use credit cards properly, without running up overwhelming amounts of monthly debt, you can, in fact, boost your credit score.

Responsible Use

Credit Karma, a financial Web site, recently said that consumers who don’t carry at least one credit card have an average credit score of 563. That’s fairly low by today’s standards, and might foretell a struggle for consumers seeking mortgage or auto loans. Consumers who have at least one card and who carry a monthly balance have an average credit score of 689, according to Credit Karma. This score is far more in line with what mortgage and auto lenders are seeking.

Getting your Free Credit Report

If you want to see how your use of credit cards is impacting your credit history, it’s time to order a copy of your free credit report at AnnualCreditReport.com. This site, run by the country’s three credit bureaus – Experian, TransUnion and Equifax – provides consumers one free copy of each their credit reports every 12 months. By ordering these reports, you can see if you’ve used credit cards responsibly. Each free credit report will list any late credit card payments you’ve made. You may discover that your credit cards have actually helped you attain a solid credit history.

A debt consolidation loan might be in order if you’re facing calls from debt collection agencies on a daily basis, and if you dread finding another overdue notice in your mailbox. When you take out one of these loans – which consolidates all your monthly debt obligations into one monthly payment – the collection calls will stop, as long as you remain current on your monthly debt consolidation payment. These loans aren’t ideal; they do come with high interest rates and origination fees. But if you’re at the point at which collection agencies are calling on a regular basis, a debt consolidation loan might be your best option.

Consumer Protection

Most states have laws regulating the way debt collection agencies can operate. Some states, for instance, may forbid collection agencies from calling before 8 a.m. or after 9 p.m. Others may limit the number of calls these agencies can make in a given period of time. Still others forbid them from using threatening or harassing language; they can’t, for instance, threaten to vandalize your property if you don’t send in the money you owe. In mid-March, the New Jersey state legislature was debating new legislation, the Debt Collection Practices Act, which would eliminate intimidating debt collection practices. The act, if approved, will also give consumers a streamlined way to dispute any debt information that they feel is inaccurate.

Avoiding the Calls

Even if debt collectors do follow state laws to the letter, their calls are still intimidating. It’s never a good feeling to pick up the phone only to be reminded once again of how much money you owe. It’s even worse when several debt collection agencies are calling you at once. These calls can negatively impact your entire life: You’ll struggle to sleep. Your relationships with friends and family members might suffer. You’ll falter at work. Living under the stress of debt is no way to be a productive citizen. It’s hard to concentrate on anything when the specter of unpaid bills is constantly hanging over your head.

The Debt Consolidation Solution

If debt is ruining your life, it might be time to investigate debt consolidation loans. These loans don’t come without penalties: They can be expensive to take out, and they will hurt your credit score. But if you follow your debt consolidation plan, you will pay off your debt and eliminate the barrage of phone calls from collection agencies. Just make sure to do your research before working with a debt consolidation firm: Make sure the firm lists (in writing) how long it will take you to pay off your debt and what interest rates and fees you’ll pay for your loan.

With mortgage interest rates expected to remain low in the foreseeable future, home equity loans might remain a viable alternative to debt consolidation loans for consumers owing large amounts. A recent story by MarketWatch, the online financial news site run by the Wall Street Journal, reported that interest rates in general are expected to remain low. Analysts from RBS Securities, National Penn Investors Trust, DWS Investments and others were quoted in the story as saying that they expected interest rates to rise only from 0.1 percent to 0.25 percent during the next several months. This means that the interest rates on home equity loans will remain low, too.

The Home Equity Alternative

For homeowners, home equity loans have long been an effective way to pay down big debts. They are often a better alternative than are debt consolidation loans because they come with lower interest rates and fees. They also don’t have the same negative impact on credit scores that debt consolidation does. When mortgage interest rates fall to record lows, as they have during much of 2009 and early 2010, these loans are an even more attractive option.

Not Right for Everyone

Of course, not everyone can take on a home equity loan. For one thing, borrowers have to be homeowners. Secondly, they must have enough equity in their homes to support a loan. For many homeowners, equity is a serious issue. According to real estate data firm First American CoreLogic, nearly 25 percent of U.S. homeowners, because of falling housing values, were underwater in the third quarter of 2009. This meant that they owed more on their mortgage loans than what their homes were worth. These homeowners, obviously, would not have been able to take out a home equity loan. Home equity loans are also not the best choice for borrowers who have a history of missing payments; borrowers who default on these loans can lose their homes.

Debt Consolidation Homework

These consumers who do face a mountain of debt and can’t take out a home equity loan can still rely on debt consolidation loans. These loans do come with some negatives: They boast high interest rates and origination fees. They will cause consumers’ credit scores to fall. But they will stop the calls from collection agencies, and they will put consumers on a path toward paying off their debts. Borrowers, though, need to do their homework before agreeing to a debt consolidation loan. They should make sure they know exactly how much they’ll pay for the loan and how long it will take them to pay off their creditors.