Category Archives: Uncategorized

Pros and Cons of Refinancing Your Student Loans with a Personal Loan

National student loan debt is on the rise, totaling $1.52 trillion according to the latest findings. Without a doubt, college is expensive. Graduates experience financial burden when it comes to alleviating their debt. A common option for lowering monthly expenses is to refinance your student loans. Refinancing your student loans means consolidating your current federal and private loans into a single personal loan with a new lender. Refinancing your student loans is a great option if you want to lower interest rates and payments; however, there are some drawbacks. Here are the pros and cons of refinancing your student loans with a personal loan.


1. You can apply with a cosigner to lower interest rates

Refinancing your student loans can be difficult if you are not creditworthy. However, some lenders allow you to enlist the help of a cosigner to achieve a lower rate. A cosigner is a relative or creditworthy adult, with the ability to repay the loan. Once you have made a certain number of consecutive timely payments, you can remove your cosigner from your loan agreement.

2. Major savings through a lower interest rate

The more qualified you are for refinancing, either through excellent personal credit history or a cosigner, the lower your interest rate will be. A lower interest rate means paying less overall. Refinancing also gives you the option of a variable interest rate, which is useful if you’re looking to repay your loan over a short period of time. Variable rates increase or decrease your payment according to market influences.

3. One monthly payment with the lender of your choice

When it came to taking out loans for school, you were assigned to a federal loan service; you could even have federal loans from a variety of different services. On top of this, you could have additional private loans. The variety of lenders could make staying on top of your debt difficult. Through refinancing your student loans, all these loans become consolidated into one single monthly payment to one lender. Even better, the lender is of your choosing.


1. You must meet eligibility requirements

Lenders who offer student loan refinancing have certain criteria that must be met. Basic requirements include being a legal resident and holding a college degree. However, you must also have good or excellent credit to qualify.

2. Loss of access to federal loan protections

If you lose your job or experience a money-related setback, the Department of Education has several ways you could qualify for up to three years of mandatory forbearance. Many refinancing companies also award forbearance, but it is not nearly as flexible as the federal government’s options. Generally, refinancing companies allow you to pause your payments only for up to 24 months.

3. Your repayment plan is locked

One benefit of federal loans is that you can alter payment plans, such as switching from the 10-year standard repayment plan to the 20-year income-based payment plan. However, once you’ve refinanced your loans, you’re locked into the same payment plan until the loan is paid off.

How Mortgage Companies Verify Your Employment History

Verification of your employment is part of the underwriting process of every mortgage lender. They will perform a verification on your employment prior to sending the loan approval decision. Every lender has different employment verification procedure. They will review the latest income documents that you have submitted in this procedure. The reason why they want to verify your employment is to determine your salary, length of employment and other factors.

To verify your employment, they will attempt to make a phone call to your employer. They will question the employer about the information you have entered in the application form. They will ask your employer things like your month salary, how long you have been working with them and whether you receive any promotion recently. Some lenders will just send a fax to your employer and your employer will have to fax back the details in order for them to confirm the information on your loan application.

Several types of income are taken into account when mortgage lenders verify your income such as W-2, 1099, part time, overtime, social security, royalty, pension, and child support income. The income after deduction of the income tax will be used to determine your qualification for the loan. It is best to have at least 2 years of employment history before you apply for a mortgage. If you just recently get a new job and have been unemployed previously, they will just need you to submit the 30 days pay stubs.

Self employed people will need to have the more savings in bank account and be earning more to get approved for the mortgaged. If you are self employed, they will ask you to provide your business license. You must fill in the IRS Form 4506-T so that the lender will have the permission to request for the latest tax return. If you have an accountant, you can let him discuss with the lender about your business for example how long your business remains successful.

Prior to applying, make sure you ask them what type of document you need to submit. Missing a single document can delay the approval of your mortgage. The copies of your financial document can be sent to the lender via mail, email or fax. When filling in the application form, make sure you provide truthful information about your income or business.

If you tell lies, the lender will soon find out when they check the details on your application. Lying may help you to get approved for a larger amount but you may have problem in paying back afterwards. The most important thing is that you get approved of a loan that you can afford to pay back.

How Lenders Utilize Your Debt When Considering an Installment Loan Approval

When applying for a loan, the lender will check your debt to income ratio to assess your credit risk. Credit risk refers to the risk you pose to the lender. People with bad credit score is labeled as high risk to the lender because it is very likely that they have financial problem.

It is highly possible that they will not be able to make payment on time. The lender will lose money if the borrower does not pay back. Therefore, to compensate for this potential low-interestharge the borrower a high APR interest fee in return. On the other hand, having good credit score can reduce your debt to income risk.Low income to debt ratio means you can be trusted and the lender will happy to lend the loan at a low interest rate.

Debt to income ratio is a comparison of your existing debt to your household monthly income. They will take a look at your credit history and find out the previous creditors that you borrow money from. Your minimum debt payment must not exceed a certain percentage. The purpose of checking the debt to income ratio is to find out whether you have sufficient cash for making the repayment.
Most lenders follow is the 28/36 rule where your PITI payment must
not exceed 28% of your gross monthly income and the total debt must not exceed 36% of the gross monthly income. Gross monthly income is the total amount that you earn every month including your pay check and other sources of income before tax or other deductions.

To find out your debt to income ratio, the lender have to pull out your credit report. They will requets for a copy of your credit report from the credit bureau. In your credit report, it provides information about the amount of income you receive, the address where you are living, all the debts that you apply and the payment you make and etc. All the information on the credit report are used in calculating the credit risk rating.

You can take the initiative to repair your credit score until it reaches a decent level. To repair your credit score, you must make timely payment for your credit card debts. You can still use your credit card but make sure to keep the credit usage ratio to less than 35% if you want a positive credit report.

It is important that you know that most lenders will only request for the credit report from one of the 3 credit bureaus including Transunion, Experian, and Equifax. Before applying the loan, you should first requets for a free credit report and check it meticulously for any mistake that could possibly be recorded there.

Short Term Cash Advance Loans in California Are Regulated By Who

A short-term cash advance, also known as an installment loan, is legal in California and it is under the regulation of California Deferred Deposit Transaction Law. The regulation aims to protect consumers from getting taken advantage by payday loan lenders.

Anyone that wants to operate a cash advance/payday loan business in California must possess a valid license that is issued by the Department of Corporations. It is important that you only apply the loan from a licensed lender. Lenders that are not licensed will not follow the payday loan laws in California.

Under the regulation, the maximum amount that a payday lender can lend to each customer is $300. The maximum length of the loan term is 31 days. The maximum APR interest on a 14 day loan of $100 is 459%. The maximum finance charges for a 14 day loan of $100 is 17.65%. The maximum fee that can be charged on a bounce check is $15.

The payday loan industry in California is booming. The statistic shows that there are more than 500,000 hits on payday loan in the early part of the 2017. They are not allowed to sue the borrower if the loan is not paid within the loan term.

Recently, the CFPB has tried to impose a regulation on short term cash advance loans with the excuse that they want to help consumers to relieve their burdens. But, many consumers fought back and claimed that payday loans lenders have help them. They prevent days of worrying by helping them to meet their expenses.

Cash advance is a type of loan that must be pay back by the next payday. It usually has a loan term of 2 weeks to 1 month. You can apply cash advance at a local payday loan shop or online. The only downside is that it has expensive finance charges but the loan can get approved fast and you can receive the funds immediately.

Payday lenders can accept all borrowers regardless of their credit score. Bad credit won’t be a problem as long as you can provide proof that you are capable of paying back. If you apply it at a local shop and it gets approved, they will hand you the cash immediately. If you apply online, you have to wait for them to deposit the funds into your bank account in the next business day.

There are a few basic requirements that you have to meet including 18 years old, permanent citizenship and stable job. It is important that you fill in accurate information in the application form such as name, social security number, employer contact information and income information. When shopping for cash advance, make sure that you compare the interest rate and fees. Fees that are often charged in a payday loan include collection and rollover fees.

Top Lending Marketplaces To Learn About Your Personal Finances

Many lending marketplaces that offer comparison rate shopping also offer personal finance guides on various topics. These guides and reviews are trustworthy as they are written by people who are experienced in the fields. They also embed the link for applying the personal finance products in the reviews so that customers can conveniently sign up for them. The following are the top 4 lending marketplaces where you can learn all things about personal finances.

1. Nerdwallet
Nerdwallet offers expert advice on everything related to personal finances. Nerdwallet is the best place if you want to read reviews on credit cards and personal loans. The reviews are long and never miss a single detail on the important information that consumers should know. It offers guide on finding the best credit card and how to build up your credit score. They also offer great advice on how you can budget and keep track of your expenses. There are helpful tutorials on how to save money for short and long term goals. They provide acalculator for you to calculate your budget.

2. Bank Rate
Bank Rate offers valuable advice on credit score, for example, how many credit card is bad for your credit profile, how to boost your credit score and etc. It also offer tips on how to save money and pay off your debt. You can read about strategies from experts on how to get out of your debt. It offers advice on the best credit card to consolidate your debts at a low interest. Bankrate also offer reviews on the best online personal loans for different range of credit score. You can request for a free credit report from Bankrate without experiencing any negative impact on your credit report.

3. Magnify Money
Magnify Money offers guides on various personal finance topics including balance transfer, building credit, credit cards, earning cash back, p2p lending, online personal loans and paying down your debt. All the articles are well researched and up to date. The author of the guide actually applied the personal loan and give their real experience on it. So, you can trust the reviews posted on Magnify Money no matter what personal finance product you are looking for.

4. Lending Tree
Lending Tree is another lending marketplace where you can read about expert guides on various topics to help you make the right decision. The guides covers a wide range of topics including auto loans, personal loans, student loans, debt consolidation, credit score and credit cards. On their site, you can read honest feedback and check the rating on different types of loans products that are left by the actual customers. You can sign up to receive multiple offers from several lenders for shopping comparison purposes at Lending Tree.

How to Avoid Making Financial Mistakes Ahead of the Holidays

It can be fun to go on a shopping spree at the end of the year but it can also put a big hole in your wallet. There are many expenses that need to be spent and you can easily make money mistakes while trying to make sure that you follow up on your holiday plans. The following are 5 tips on how to avoid making financial mistakes in the upcoming holiday.

1. Don’t Exceed Your Budget
The first step is to plan your holiday shopping list by writing down every holiday expenses on piece of paper. When compiling the shopping list, make sure you include everything including parties, cards, gifts, decorations and etc. By taking a look at the list, you can estimate how much you have to spend. Now that you know the estimate expenses, you can plan accordingly on how to save and come up with that amount of money.

2. Don’t Use a Credit Card
Many people find it convenient to use their credit card to pay for holiday expenses. If you use a credit card, you will be in debt for several months after Christmas is over. Using credit card also can lead to overspending and exceeding the budget. Planning carefully prevents you from having to use your credit card to pay for your holiday expenses.

3. Don’t Get a Personal Loan to Cover Holiday Expenses
It is best to avoid applying a personal loan to cover your holiday expenses. Getting a loan is a financial commitment and you have to pay back every month thereafter along with the interest rate. It adds worries to your life as you try to meet the repayment at the due date every month. Saving your money to pay for the holiday expenses is the best solution to avoid holiday debt. Starting to save your money early can give you enough time to accumulate the funds you need for paying the holiday expenses.

4. Don’t Buy Expensive Gifts
It can be tempting to buy expensive gifts for everyone on your list just to impress them but this is not the wise thing to do. If you spend money on expensive gift for everyone, you’ll find yourself exceeding your budget soon. Instead, you should only save the expensive gift for those who are closest to you.

5. Don’t Forget Anyone on Your Holiday Gifts List

When going for shopping, make sure you carry a list with the names of the person that you are buying gift for. As you buy the gift for each person on the list, you can cross of his/her name on the list. This can prevent you from making mistake by buying gift again for someone whom you have already purchased the gift.

Which Online Lenders Offer The Longest Repayment Periods For Debt Consolidation

Debt consolidation personal loans reduced your burden by lowering the monthly amount. Now that you can afford to pay back your loan, you will want to make sure that it offers enough time for you to pay it off. There are a few debt consolidation personal loans that offer a long repayment term of 84 months (7 years) or more. The following are the top 3 online lenders that offer the longest repayment term for the debt consolidation personal loans.

1. LightStream
LightStream is founded by SunTrust Bank and they provide personal loans specifically for creditworthy people. LightStream offers a generous loan amount of up to $100,000. The minimum loan amount that you can apply at LightStream is $5,000. The interest rate can be as low as 2.2% and reach up to 17.49%. With LighStream personal loans, you don’t have to pay any origination or prepayment fee. LightStream can be strict as they require borrowers to have a solid income, and healthy savings account. There are several loan terms to choose from 24 – 84 months. LightStream releases the funds fast after the loan is approved and you can expect to receive the funds in a single day.

2. Sofi

Sofi is an online lender most recognized for the student loans refinancing. Besides student loans refinancing, Sofi also provide a personal loans of up to $100,000 for consumers. You can apply for fixed or variable interest rate for the Sofi personal loans. Fixed rate personal loans are cheaper and feature an interest rate from 5.49% – 11.09%. There are 3 loan terms to choose from including 3, 5 and 7 years. Sofi requires its borrowers to have low income ratio, reliable job and excellent credit score. Sofi provides an unemployment protection program that allows the borrowers to halt payments for a few moments when they suddenly lose their jobs.

3. Discover
Discover offers personal loans typically for borrowers who have good credit scores. Most of the borrowers that are qualified for Discover personal loans have an average credits core of 747. You can use Discover loans to consolidate your debts as they can pay off the lenders directly. If you want to use the loan to pay off your lender, you must make sure that at least 70% of the loan is used for that purpose. You can apply to borrow a loan amount in between $2,500 – $35,000. The APR starts from as low as 6.99% and can reach as high as 24.99%. Discover personal loans have a loan repayment term from 36 – 84 months. The due date can be changed up to two times during the entire loan term. If you delay a payment, you will get charged with a late fee.

Personal Loan Offers For Borrowers With Delinquent Taxes, Is This Possible

Getting a personal loan is the best option if you owe tax money to the IRS and you don’t have any money in your savings to pay. You should apply for the loan as soon as you realize that you are not going to have money to pay the tax by the deadline. The IRS can charge you a failure to file penalty fee if you fail to pay your tax by the deadline. The failure to file penalty fee is about 5% of the tax income that you have owed. It is cheaper to get a personal loan to pay your tax than paying it with your credit card.

Credit cards often charge expensive interest rates and you don’t know when you are going to clear off your credit card debts since you can roll the payment from month to month. On the other hand, personal loans have fixed interest rates and low monthly payment amount. With personal loans, you know when you will finish paying off the loan. Additionally, you can avoid tax liens when you use personal loans to pay your tax bill. Any tax liens that have been put forward will be put to an end and the IRS will accept the payment.

Short term loan is the best for people who owe a sum of tax bill that is lesser than $1,000. you can pay back the loan by installment and clear up the debt in about 1 year. The key is to get a loan with a lower interest than the IRS loan. You should not delay in getting a personal loan if you find that this option suits you best. Delaying can cause your tax bill to pile up over time until the sum becomes even larger and harder for you to pay off. Your debt to the IRS will be paid in full when you use a loan to pay it.

You can get either an unsecured or secured personal loan to pay the tax bill. Unsecured loans don’t have collateral but secured loans are tied to a property such as the house. Unsecured loans are safer because you don’t lose your home if you are late in making payment. To be eligible for a personal loan with low-interest rate, you need to have good credit score.

Personal loans applications are fast and straightforward nowadays and you only need to fill a short application form to apply for it. Usually, you need to get pre-approved first to find out the estimate quote for the interest rate. You can fill in more than one form to get pre-approved for several loans and then review the loan offers to see which one is the best for you.

Top 3 Credit Unions for Personal Loans in Florida

Credit Unions are ranked near the top for the best places to apply for personal loans because of the low interest rate and fast approval process. Credit unions usually serve residents in the nearby counties and their criteria for joining are easy to fulfill. The following are the top 3 credit unions that offer personal loans to residents in Florida.

1. Suncoast Credit Union
Suncoast Credit Union was originally established by teachers from the Hillsborough County in Florida in 1934. It has more than 700,000 members in 21 counties in Florida. Suncoast Credit Union offers personal loans that can be used for financing all kinds of personal expenses such as holiday, debt consolidation and home renovation. Suncoast provides 3 types of personal loans including signature, computer, and personal line of credit.

Suncoast signature loan features a competitive interest that is as low as 10.25% and a maximum repayment period of 60 months. The computer personal loan is for people who want to borrow money to buy a new computer for work, study or personal use. The computer personal loan features a fixed APR interest rate starting from 9% and a maximum repayment period of 36 months. The personal line of credit is an unsecured loan that features a preset limit and the APR interest for this loan starts from 9.5%.

2. Vystar Credit Union
The Vystar Credit Union was founded more than 60 years ago in 1952 to provide loan services to civil and military members. It now serves 22 counties with a new Yulee branch opening on the 5th of June. Vystar Credit Union’s signature loan charges interest rates starting from 7.25% – 12.25% and the repayment period range from 1 -7 years. No collateral is required to apply for the signature loan. Vystar personal signature line of credit features a variable interest rate starting from 11.74% and a repayment term of up to 60 months. The interest rate is charged on the amount that you use from the line of credit. Both the signature and personal line of credit have fast approval process.

3. MidFlorida Credit Union
MidFlorida Credit Union was fo
unded by a few teachers in Polk County in 1954. It started with 10 charter members and now it has over 271,000 members. MidFlorida Credit Union has 40 branches throughout Central Florida. MidFlorida Credit Union offers 4 types of personal loans including general purpose, secured, line of credit and payday alternative. The general purpose loan can be used for general purposes such as shopping, stocking a classroom, debt consolidation and other good purposes. The line of credit loan features interest rate as low as 11% while the closed end personal loans features an interest rate starting from 9.73% and a repayment term of up to 60 months.