Jun 26, 2010

Several Types of Personal Loan

Personal loan is commonly referred as the means of achieving your dreams. Personal loan is one of the simplest of the type of loans. Loans are not appreciated by anybody of us. But, in the present social and economic circumstances, it is pretty hard for a person to arrange money for an additional expenditure other than in the budgeting. And loans are the only possible means to arrange the finance to meet their needs. The widespread popularity of personal loan makes people often comment it as, the dream finance.

Personal loan is the kind of loan, which can be used for any purpose. Most of the other loans are approved for a specific purpose such as home equity, student loan, and debt consolidation. The personal loans have gained the acceptance mainly because of the inadequacies of the other loan to cater all the needs. The focused loans can be used for only a particular reason and not for any other, even though the needs may be varied. While personal loan can be used for any purpose such as repairs, hospital expenses, and even for a dream holidays. To obtain the most affordable and adequate personal loan, the different types of the loan has to be evident.

Personal loan can be generally categorized into two - secured personal loan and unsecured personal loan. Unsecured personal loan can be arranged without the support of any collateral security. The personal loan can be used for anytime purposes and the unsecured personal loan does not impose any risk about loosing your asset, because of the defaults in the loan repayment. The unsecured personal loan can be availed from any sources and it include credit card loan, unsecured loans from banks, private lenders and so on. The cash advances and payday loans can also be viewed as unsecured personal loans. But the lender will not be fully happy with this deal as he will not have any assurance about the loan amount. To compensate the risk in the deal, they will be very stringent in the interest rates of the loan amount and the repayment duration will be decreased.

On the other hand, the secured personal loan is more comfortable for the borrowers as well as lenders. If borrowers can provide the collateral security of any asset, such as home, property or any other valuable one, the lenders are always lenient in their conditions. You can avail the best interest rate and long repayment schedule with secured personal loan. The secured personal loan includes home equity personal loans. But the risk is with borrower, you have to be strict in your repayment. If not, you will loss your valuable asset. The lenders can even proceed with foreclosure if you default the payments.

As with any other loan, the types of personal loan is also provided based on the credit report of the person. For persons with good credit, certainly it will be easy to locate the best deals. But now, bad credit persons are also given good offers from the specific bad credit lenders. The comparative market search will help everyone to locate the best personal loan. According to the personal preference the appropriate type of personal loan can be selected.

Get Car Loan Fast by Poor Credit

Many assume that it is extremely hard to get an automobile loan for those who have a poor credit rating. This presumption however is quite definitely not the truth. Though it may seem difficult to find an automobile loan when you've got bad credit, it is not impossible. Nowadays, poor credit auto loan businesses have grown significantly. The reason being that there's more individuals with a bad credit rating.

Poor credit auto loans bring a greater risk to lenders. Therefore, the lenders normally charge an increased rate of interest to their borrowers. Lenders analyze your credit scores and match up the needs you have with the best suited auto loan package. Most lenders have online loan applications, which usually speeds up the process and helps it be a whole lot easier.

As mentioned earlier on, rates of interest on these auto loans are usually higher. This ends in you paying a larger amount of interest. Nonetheless, increasing your credit rating can help you to avoid lenders charging you an increased rate of interest on your own poor credit auto loans.

Here are a few ways to improve your credit rating

  • Attain a valid copy of your credit score.
  • Keep all current accounts up to date. Don't get behind on any payments if you can help it and pay your bills on time.
  • Avoid taking multiple loans, particularly at the same time.

Keep in mind, a bad-credit auto loan loans will not just help you get new or used vehicles but it will also help you rebuild your credit score. The best way to achieve understanding of the best rates for poor credit auto loans is by doing some cost comparisons; similar to how you would when looking for your desired used or new vehicle. When looking at auto loan offers, constantly compare the Apr. This will help determine the best loan for you and your budget.

Jun 25, 2010

Refinance Student Loan

Student loan refinancing is done to decrease the monthly student loan payments. Banks have student loan consolidation programs to facilitate this. A student may have federal student loans and private loans. The federal loans have a lower rate of interest than the private ones. The private loans are personal loans given with a surmise that the income will increase with education. While refinancing, if these two loans are mixed, then the student will have to pay more interest rate on the total principal. So, it is advisable to finance the two loans separately. The student loan rates change as per the lender and credit history. While refinancing, it must be confirmed that the history is helpful. A credit report must be studied to overcome problems. Then, rates of different lenders can be compared. The rates of refinancing federal student loans alter annually, generally on 1st July.

Lenders for student loan refinancing

Financialaid.com assists students with monetary help. It has an excellent customer service and highly trained student loan counselors guide the needy. The monthly payments can be decreased by 52%. The fixed interest rate may be as less as 6.75%. Early repayment is not charged with penalty. The loans can be consolidated to one easy payment. EstudentLoan.com is another lender. StudentLoan.com is a Citibank company. The Federal consolidation loan decreases the monthly student loan payments by half. There is one easy payment per month and a low fixed rate. No income or credit check is necessary. There is a 0.25% interest rate decrease as per a E-Z pay plan. The student loan account can be seen on the Internet. The Private consolidation loan is locked at a fixed rate or a variable rate. Only one payment is required per month. There exists a 0.25% interest rate reduction as per the E-Z pay plan. After the initial 48 successive monthly on-time payments, there is a 0.50% interest rate decrease. This loan account can also be seen on the net anytime. Each of these lenders have varying qualification needs. Most of them demand that currently the student must not have an active student loan or that there must be a minimum balance requirement.

Student loan payment

While refinancing, the monthly payments can be decreased by a lesser interest rate or a greater loan duration. Of these two methods, a low interest rate is the better option as the long term student loan debt gets reduced. In case the monthly payments are very large, the loan duration should be increased. Due to this, the span of repayment rises and the monthly payment becomes small. Long terms however imply high interest rate and consequently more interest payments. Overall, the student has to pay more, but it becomes less cumbersome.

Resources to refinance student loans

  • effects of student debt
  • school loan consolidation
  • consolidation recommendations of the University of Michigan Law School
  • consolidating federal student loans

Difference between federal and private loans

The federal student loan can be consolidated if the student is not enrolled in school or is actively repaying the loan. Many consolidation companies need a minimum loan amount like $10,000. In case of federal student loans, the interest on the loan is tax deductable, the loan may be forgiven for some services or the payments can be postponed if the student returns to school. Private loans lack these benefits and may be secured or unsecured. They have to be repaid similar to other loans. Hence, it is recommended to consolidate federal and private loans simultaneously. Federal student loans have to be considered first and consolidated separately. The second step is to consolidate the private loans.

Jun 23, 2010

Best No Credit Student Loans

Many college students today hit a hurdle before they even start when it comes to finding the funds necessary for college because they have already managed to run up a poor credit history. Fortunately however there are aid and loan packages available today which look principally at need and ignore your credit history and so this is where you will need to start your search for funding. One of the oldest sources of funding and one which is chiefly available on the basis of economic need is the Pell grant. As long as the student and his family are considered to be a low-income family a Pell grant is more or less automatic and is made on the basis of the submission of supporting documentation.

The student will be required to provide proof of the cost of his intended course (including tuition fees and other qualifying costs) and will also need to provide details of the family's income from which an EFC (Expected Family Contribution) number will be calculated. On this basis a decision will be made and the grant made or refused. As the name suggests, a Pell grant is a 'gift' and not a loan and it does not have to be repaid. Pell grants are currently for a maximum of $4,731 a year (depending on your assessed financial need) and, while this will not normally cover the full cost of attending college, it can go a long way towards helping. However, most students will need to seek loan funding in addition to a Pell grant and the best form of loan funding initially are Stafford loans.

There are two different types of Stafford loan and the first is a subsidized Stafford loan on which the government pays any interest charges while you are studying full-time and for up to six months after graduation. The second type of Stafford loan is an unsubsidized Stafford loan on which you will be responsible for making all interest payments.

Unsubsidized Stafford loans need to be considered very carefully because, although you will be responsible for making interest payments, you will not be required to do so while you are in full-time education and for up to six months after graduation. However, during this period interest will still be applied to any loan and will simply be added to the outstanding amount of the loan. This means that during a three or four year college course your loan debt can grow substantially and reach a very significant sum by the time you do start paying it off.

Naturally, most students would prefer to have an unsubsidized Stafford loan but loans are disbursed according to the funds available and on the basis of need so that only a minority of students will qualify for a subsidized loan. The good news however is that most students will qualify for an unsubsidized loan and, despite their drawbacks, these still represent one of the best forms of college loan funding available today.

There are of course other forms of grant and loan funding available (and scholarships) and you need to shop around to see just what is available and best suits your circumstances. However for students from low-income families Pell grants and Stafford loans are invariably the best routes to follow.