Payday loans is a costly option for people who urgently need to borrow money to cover some temporary expenses. Usually, payday loans are applied by people with bad credit and cannot go to a regular lender to obtain a loan. If you have bad credit, you should try building up your credit until you have good credit. There are better alternatives that offer low APR interest rates when your credit report shows that you have good credit score. The following are the 3 alternatives to high cost pay day loans for people with good credit score.
1. Online Personal Loans
If you have good credit, you may be eligible to apply for an online personal loan with low interest rate. Apart from your credit score, there are many things the lender will want to see before assigning you a low interest rate including steady employment and low debt to income ratio. You can borrow $1,000 – $35,000 or more from a reputable online lender. They are fast in reviewing and approving your applications. Sometimes, an online lender can approve your loan in the same business day. Unlike a bank, you can expect to receive the money fast in your account in 1- 3 days. You can take anywhere from 3 – 7 years to pay back a loan that you apply from an online lender.
2. Peer-to-Peer Loans
There is a type of loan called P2P loans that is different than the online personal loan. This type of loan is issued by individual lender or more than one individual lenders rather than an online personal loan company. With P2P loans, you can borrow a small amount of lesser than $100 up to tens of thousands of dollars to meet your temporary financial needs. You can also get low APR from 6% when you apply a loan from peer to peer lenders. You can get approved if it is funded by at least 75%. Usually, the it will take up to 2 weeks to release the funds from the p2p loan. Just like the P2P loan, you have to repay the loan in 3 – 7 years. Various types of fees like origination fees, and administration fee apply.
3. Credit Cards
Another alternative is to get a credit card. With a good credit score, you can apply for zero percent rewards credit card with a long intro promo that last for more than 1 year. Currently, the card with the longest zero percent intro promo is Citi Diamond Preferred with 21 months intro promo. There are other cards with 18 months intro promo like Citi Simplicity, Citi Double Cash, and Discover it 18 Months Balance Transfer Offer. You don’t have to pay any interest fee during the zero percent intro promo.
Having a poor credit score means that you pose risk to the lender. It may lead the lender to believe that in the past you have not been disciplined in paying your bills on time and has taken out too many loans. High-risk borrowers often get charged with expensive interest rates. But, with some research, you can still find a lender that is willing to approve your loan and give you a reasonable APR interest rate.
If you have poor credit score, chances are you won’t be able to get a car loan from a bank. Banks often ask for higher down payments when you have poor credit score. On the other hand, credit unions are known for offering lower rates and extra benefits especially for customers who already have accounts with them. You can go to a credit union that you already have membership. The credit union membership can be joined for free if you don’t have any savings account with them.
You can also apply for the car loan through your car dealer who work with numerous banks and loan companies. Whether or not you get approved for a low interest rate will depend on the car dealer. Another method is to apply for the car loan online. It takes less than 5 minutes to complete the car loan request application form. Many lenders support soft inquiry so you can get preapproved prior to applying it. You can conveniently apply for the online car loan from your laptop or mobile phone.
Many online car loans lender will approve your loan if you can provide proof that you have a stable job. The job must provide enough income for you to pay back the loan. To provide income proof, you must prepare the payslip of the last 3 months. They will approve your loan faster if you have work with the same employer for a long time.
You can go to your employer and ask him to write a letter for the car loan application. The letter should include the start date and salary you receive. If you receive increment to salary during your employment, the information should also be included in the letter. Besides, you must prepare the documents like utility bills to prove your residential address.
You probably don’t know what is a bad credit score and only think your credit score is low in your viewpoint. Therefore, you should always check the lender’s definition of bad credit score when shopping around. You can shop around by using the online comparison tool. The online loan comparison tool allows you to input your credit score, zip code and loan amount to filter the search results. On the loan comparison site, you can submit applications to get preapproved and find out the estimate interest rate
When you apply for Avant personal loans, you can choose from a repayment term from 24 – 60 months. Choosing a longer repayment term can result in higher APR interest rate. Shorter repayment term can reduce the APR interest rate that you pay but the monthly repayment amount will be higher. If possible, you should always opt for shorter loan term as it enables you to pay off the loan faster.
There is an administration fee, about 3.75% of the loan amount. The loan amount you receive is already deducted of the administration fee. You also have to take into account the origination fee when calculating how much loan amount to apply for. The origination fee is 0.95% of the loan amount for refinancing customers. New customers usually get charged with an origination fee that is about 4.75% of the loan amount.
Besides, there is a late fee of around $25 if you wait until after the due date to make the repayment. The actual late fee varies depending on which state you comes from. Avant has a late fee forgiveness program in which they will refund the late fees if you make on time repayment for at least 3 consecutive months. If Avant approves your loan, you can expect to see the funds in your bank account in 1 – 2 days.
If there is not enough money in your bank to cover the loan repayment, you will be charged with a penalty fee of $15. Avant personal loans can be repaid early without the hassle of having to pay any prepayment fee.
Avant allows you to borrow $2,000 – $35,000 for the personal loans. Statistics show that most borrowers take out $8,000 of loan from Avant. The average income of the borrowers who get approved is from $40,000 – $100,000 per year. Avant does have a minimum credit score requirement which is in between 600 -700.
The average credit score of the borrowers who get approved is 650. If you are employed, they will call your employer to confirm your employment status and monthly salary. People who are self employed must submit the previous income tax to prove that you have enough income to pay for the loan.
Avant loan is suitable for consolidating a large amount of credit card debts into a single payment. You can use the funds from the loan to cover the cost of your home improvement project. It can also be used to cover any emergency cost that you are facing.
To apply for Avant loans, you simply fill in the form on the Avant site for them to perform a soft credit check. If you get preapproved, they will show you a rough estimate on how much you will pay each month for different loan length along with the preapproved APR interest rate.
Which Apps From Itunes Are Best For Managing Your Finances
There are a lot of free finance management apps at the Apple iTunes store that you can download. The finance management app helps you to organize all aspects of your finance so that you can effectively keep track of your spending. With the app, you will be able to stay on track on your savings and finance goal. The following are 4 apps from iTunes that you can use to plan your budget and manage your finances.
Mint is a fully customizable finance management tool that allows you to see a complete picture of your finance such as balances, transactions and bills on a single screen. To set up your account, you must first select your account provider and sign in through the mobile app. You can categorize your transactions into categories like transportation, groceries, dining and etc. The app also let you know how much it think you should spend on a particular category of expenses. It will send out a notification when you spend more than the monthly budget.
Wally is a free app which you can use to enter your income and expenses. You can enter the expenses on the home tab in the opening screen. There are many expense categories to choose from including transportation, and entertainment. Every major category has a subcategory. Wally will connect the expense to the shop where you were just now on a map. It allows you to take photos of the receipts. The income tab allows you to key in multiple income sources. You can also set a savings goal in the income tab. You can check your spending habits in the review section. The data can be exported to your iCloud on CSV.
Mvelopes allows you to sync to up to four accounts. You can sync accounts from a bank, credit union, paypal and financial institutions. After syncing your account, you will be able to import your balances and transactions. It automatically categorize your transactions but you can create your own categories. You can set a budget for each category or envelope. Up to 25 envelopes can be created. You can view a complete report of your spending/income, and networth and how much you have spent in each category. It allows you to export the report in PDF or CSV format.
Penny allows you to categorize your spending in simple categories. It shows monthly summaries of all your bills. You can set your savings goal and keep track on it with user friendly graphs. It logs all your transactions on a single place. Penny offers visuals that shows you at a glance how much money you are gaining or losing in day/week/month. The chat bot named Penny will answer all your questions about finances instead of you having to flip through the graphs yourself.
It is possible that there will be a better outlook for the short term loan industry in 2018 because the Republicans are now doing their best to fight against the CFPB’s new rule. The Republican senators have recently written to Mick Mulvaney, who is the acting director of CFPB. Mick Mulvaney was placed by President Trump to serve as the acting director for CFPB.
In the letter, it says that they will support any legislative effort to throw down any new rule that the CFPB impose. The letter to Mulvaney shows that the Republican senators have done the right thing in standing up for the consumers and payday loan shops and other short term lenders that have been mistreated under the proposal of the new CFPB rule.
The payday rule will not be implemented until the middle of 2019. The rule requires lenders to make sure the borrowers have the abilities to pay off the loan. The rule also restricts payday lenders to extend no more than 3 loans to each lender. The rule was issued under Richard Cordray who resigned last month in November.
They decide to stand up against the rule when many people start to criticize the CFPB. They are overthrowing the rule for many good reasons. Payday loans have helped millions of Americans to meet their emergency expenses every year. Many people prefer to take out payday loans rather than applying the loan from a bank because they get approved faster.
Payday loans can get approved fast in 1 – 2 business day and provide the money they need to stay out of dire financial situations. However, the CFPB is coming up with excuses to eliminate the industry. If they successfully roll out the new rule, more than 80% of the payday loan shops will become unprofitable and ultimately close down.
Without the help from payday loan, they may resort to other alternatives, for example, taking out a loan from unlicensed predatory lender that will use violence to chase them to make payment. The CFPB did not give any clear justification on why it proposes the rule. Statistics show that there is lesser than 1% consumers complaint filed to the CFPB. The CFPB fails to consider the welfare of the people when they make claims that its high interest rate has render the payday loan industry to be deceptive.
They are now looking to the Congress on rejecting the new rule proposal. The Congress has up to 60 days to give the decision and this mean the case will delayed until March or April of 2018. If the Congress’s final verdict is against the CFPB, the CFPB will lose its authorities to make new rules.
Longer Term Personal Loans Likely Will Offer You Better Terms
When you need to borrow more than $1,000 and your credit may now be amazing or your pressed for time, it’s worth considering an online short-term loan versus a cash advance loan. With the popularity of personal loans continuing to grow, many lenders now will allow you to take 1 – 7 years to repay the loan. On the other hand, payday loan has tight repayment schedule where you are required to pay back in 2 – 4 weeks.
It has a low interest rate starting from 6% which is significantly cheaper compared to payday loans that has a sky high interest of more than 400%. Short term loans can offer a low interest rate because it doesn’t have to deal with the same operation cost as a brick and mortar personal loan shop. When you are on a loan comparison search engine, you can quickly get a glance on the range of APR interest rate that different lenders charge.
If you are interested in finding out a more accurate APR interest rate, you can fill in the online form. They will send you an email if you get preapproved. You can submit as many application forms as you want to get the estimate APR interest rate quotes. This allows you to compare which lender is the cheapest. The loan that you apply should feature soft credit check so that your credit score is not affected the first time you submit the application. Before putting down your signature, make sure you read the loan contract as it discloses the full information on the interest rate and fee.
As a rule of thumb, you should only borrow the amount that you need. The interest rate that you are assigned depend on your credit score. Therefore, you should request for a free credit report and review it to see if there is any error that you can get fixed. Fixing somThe onliners in the credit report can help to raise your credit score. Online personal loan is the best option for young people who do not have an established credit profile. Many online lenders would look at other factors if you don’t have a good credit profile.
After you decide to proceed with the loan, they will perform hard credit check by pulling out your credit report. While checking your credit report and other financial documents, they will determine how much you can borrow and the interest rate. Many lenders let you select the loan term according to your convenience. If you have the finance, you should select a short loan term. Short loan term may have higher monthly payment but the total interest rate that you pay is lower. If you are tight on budget, you can select a long loan term with low monthly payment but you will pay more interest rate in the end.
For people who filed for bankruptcy befores, the best way for them to get a loan is via the online P2P lender. There are some P2P lenders who are willing to approve borrowers with credit score lower than 600. If you have a stable income and are already discharged for bankruptcy, you will surely be able to get a personal loan from P2P lender online. The following are three P2P lenders that will extend loans to borrowers that suffer from bankruptcy before.
PersonalLoans.com has a large database of lenders that offers personal loans for people with bad credits and bankruptcy. Although it is not a p2p network, it has many lenders that are p2p lenders. To apply for a loan from PersonalLoans.com, you just need to fill in the online form and interested lenders will send you the loan offer. The loan network is known to have a low credit score requirement and borrowers with a credit score as low as 580 will be accepted. The fees and rates vary depending on which lender’s offer you have accepted.
Peerform is a New York based P2P lending platform for borrowers with really low credit score. To be eligible for a loan at Peerform, you must have at least a credit score of 600 and at least 1 year of credit history. You don’t need to meet any minimum income requirement. Grades are assigned to borrowers with different levels of risk and the interest rate will depend on the grades that you are being assigned. You can learn more about the grades at the Peerform website. With Peerform, you can apply for a loan of up to $25,000 and the interest rate ranges from 7.12% – 29.99%. It reports your loan payment to TransUnion. There is no prepayment penalty and the grace period is 15 days. If you didn’t submit payment after the grace period, you will be charged with a late fee.
3. Lending Club
Lending Club has a higher loan limit and they allow you to apply for a personal loan of up to $40,000. You can use the loan for consolidating multiple credit card debt, financing the purchase of a car, and holiday trip. No collateral is needed to apply for the loan. The APR interest rate range for a Lending Club loan is in between 5.99% – 35.89% and you can choose from a loan duration in between 3 – 5 years. If you submit all the necessary documentation, you can expect that your loan to be speedily approved and receive the funds in 1 week. Applicants that are interested in signing up for a Lending Club loan must have a minimum credit score of 600. Applicants in 43 states can apply for Lending Club loans.
Filing for a Chapter 11 bankruptcy does not immediately eliminate your credit card debt. Instead, it allows you to put the debt collections on hold for a period of time until the court has officially declared the bankruptcy. Filing for a Chapter 11 bankruptcy have some upfront costs including filing fee, U.S. Trustee fees and the fees to mail the reorganization plan.
Once you have filed for a bankruptcy, you are given 120 days to come up with a reorganization plan. You can extend this period to up to 180 days by appealing to the court if you need more time to prepare the reorganization plan. During this period, you can negotiate with your creditors to create a reorganization plan. The creditors will be willing to negotiate with you because they don’t want you to file for a Chapter 7 bankruptcy and get nothing in the end.
The reorganization plan is a custom repayment plan on how you are going to put your finances in order and repay back the debt. You are to propose a plan that will protect your assets and allow you to use your disposable income to repay the debt.
At least one half of your creditors in each class of claims must first accept the proposed reorganization plan before the court can approve it. It can be hard to negotiate with the creditor sometimes and you will need to prove to the judge that the proposed plan is reasonable in order to get the reorganization plan approved. If the court did not approve any of the plan you submit within 180 days, your creditors will submit the repayment plan on your behalf.
After the plan gets approved, it is important that you make payment according to the outlined schedule. Usually, you will have to make payment for a number of years to become fully acquitted of the credit card debts. You will owe the outstanding amount of debt if you fail to follow up on payment on the court approved repayment plan.
The court may also convert your case to a chapter 7 bankruptcy where they auction off your assets to pay back the creditors you owe. If you successfully pay off your debt in the court approved repayment plan, you will be discharged from the rest of your debts.
Chapter 11 bankruptcy is ideal for an individual who have a disposable income that is too high for them to qualify for other types of bankruptcies. Prior to filing it, you should consider other alternatives. You might also want to come up with a good reorganization plan first before filing it otherwise it will not help you to restructure your finance as you have hoped in your expectation.
A mortgage loan can have impact on your new car loan in a number of ways. Firstly, when you apply for a mortgage loan, the lender will make a hard inquiry on your credit report which causes your credit score to drop. If you have high credit score, this is nothing to worry about. For example, if your credit score is 720 and it reduces your credit score to 718, you will still not fall below the lender’s minimum credit score requirement.
Your punctuality in making on time repayment to the mortgage loan is another factor that can affect the new car loan that you want to apply. If you arelow-interesting repayment, your credit score will drop which will make it harder for you to a qualify for a good car loan with low interest rate. It is important to always pay your mortgage every month so that you have good track record of payment history up until the time you apply for the car loan.
Besides, the mortgage home loan you take out must not push your debt to income ratio to more than 43%. If your debt to income ratio exceeds 43%, you may face problem in getting approved for a new car loan. Debt to income ratio represents how much is your existing debt versus the income that you have. You must make sure that you have a lot of leftover income after paying the mortgage. The more leftover income, the higher the borrowing power you have and the more money you have to pay back the new car loan.
You should avoid applying for a large mortgage if you are planning to get a new car loan in the near future, for example in 6 months. This is because larger mortgage tends to have more impact on your credit rating and debt to income ratio. Another reason why you should avoid taking out a large mortgage is that it is harder to repay. If you fail to repay your mortgage, the house can be repossessed and it will result in a black record on your credit profile. When the auto loan lender sees the black record on your credit profile, they may increase the interest rate or reduce the amount of car loan that you can approved.
Although a mortgage can affect your ability to get a car loan, or any loan for that matter, it can also help you to build up your payment history. It is important to have some payment history before you apply for the car loan. Making repayment on the mortgage promptly can also help in raising your credit score if you currently have a poor credit score. Making repayment on time for 6 months to 1 year can effectively help you to raise your credit score. Once your credit score is increased, you can start shopping for a low interest car loan.
It is a must to have a great credit score in order to qualify for a low-interest loan to refinance your auto loan. A loan with a lower APR interest can reduce the total amount that you pay back for the car every month. The interest rate is added to your monthly payment so lower APR interest means that you will have lower monthly payment. Lower monthly payment will make it easier for you to manage your budget every month.
It is best to choose a loan with fixed interest rate so that you will pay a fixed monthly payment throughout the loan term. After you get approved for the loan, you must diligently pay back the monthly amount on time. When you continue to make payment on time for a year or so, your credit score will increase and you may be able to qualify for an even lower interest rate.
Taking out another loan to refinance your auto loan allows you to obtain a more favorable loan term. For example, the new loan that you get may have no late payment or penalty APR as you are charged in the old loan. You don’t have to wait for a period of time before refinancing the loan. You can refinance the loan as soon as you purchase the car before the first monthly payment is paid.
If you don’t have a good credit score, you can start taking actions such as pay off your existing bills or credit card debts to improve it. Before applying for a car refinancing loan, you should obtain a copy of your credit report from the credit bureau and review it for errors. If you notice an error in the credit report, you can launch a complaint to the credit bureau. Once they have fixed the error, your credit score will be raised.
You can refinance your auto loan with a loan that you have applied from an online lender, bank or credit union. Applying for an online car refinancing loan is the easiest because you can get approved within a few minutes of submitting the online application. Most online lenders allow you to complete the auto loan refinancing application completely online so that you don’t have to leave your house to visit a branch and complete the application process.
When you are shopping around, it is important to check all the fees that you are liable to pay not just the APR interest fees. When you are ready to apply for a loan, you have to prepare a few documents such as vehicle, current loan and identity documents.
You should try to sign up for a loan that features a soft inquiry to prevent a hard inquiry from being made on your credit profile.