loan disbursal – A Pair Of http://apairof.com/ Mon, 20 Jun 2022 13:45:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://apairof.com/wp-content/uploads/2021/10/icon-33-120x120.png loan disbursal – A Pair Of http://apairof.com/ 32 32 Being poor is expensive; predatory lenders make matters worse https://apairof.com/being-poor-is-expensive-predatory-lenders-make-matters-worse/ Mon, 20 Jun 2022 13:45:35 +0000 https://apairof.com/being-poor-is-expensive-predatory-lenders-make-matters-worse/ Being poor is expensive. Between overdraft fees, ATM fees and credit card interest, big banks and predatory lenders are taking advantage of low-income Canadians. Recognizing that the pandemic is far from over and that its effects will remain lasting, advocacy organization the Association of Community Organizations for Reform Now (ACORN Canada) conducted a study detailing […]]]>

Being poor is expensive. Between overdraft fees, ATM fees and credit card interest, big banks and predatory lenders are taking advantage of low-income Canadians.

Recognizing that the pandemic is far from over and that its effects will remain lasting, advocacy organization the Association of Community Organizations for Reform Now (ACORN Canada) conducted a study detailing how high-cost loans (such as payday loans, installment loans, and title loans) are exploiting low-income Canadians at a time of record inflation and great economic uncertainty in the global scale.

ACORN compiled a survey between November 2021 and January 2022, gaining insight into the harms and consequences of predatory lending from 440 people who have experience taking out high interest loans. One in four people said they were pushed into predatory lenders because of pandemic-related financial hardship.

The 52-page report, a combination of data and testimonials, found that more than two years into the COVID-19 pandemic, “many people are not seeing their financial situation improve.” An overwhelming majority of participants “expressed concern” about pandemic-related benefits like the Canada Recovery Benefit (CRP) ending or being more exclusive.

The report outlines the many ways lenders exploit customer vulnerabilities, ranging from incompletely explaining the cost of borrowing to “offering loans under the guise of improving credit ratings or attaching insurance to ready to extract more silver”. ACORN concludes that banks are failing the same people who need their services the most, noting that the majority of customers who rely on payday loans were initially rejected by banking institutions. Not only are low-income people often denied bank loans, but they are also charged excessive insufficient funds (NSF) fees, averaging $45. This is in addition to late fees and hidden fees from predatory lenders.

The report also documented a worrying trend: while payday loans remain the most common type of high-cost loan, “installment loans continue to see an increase with an almost equal proportion of people reporting having taken an temperament”.

Installment loans seem attractive to borrowers because payments are spread over a longer period, but ACORN’s report suggests these loans also cause long-term financial pain for people trying to make ends meet.

Less than half of respondents, or 40%, said they had used high-interest loans “once or twice”, while one in four had taken out ten or more loans.

“It reveals the exploitative nature of high-cost lenders, because the goal is not to help people but to ensure that the person who took out a loan is trapped in a vicious cycle of debt,” says the report. “The reasons people are forced to take these loans are to meet basic expenses like rent, groceries, car repairs, etc.”

Part of ACORN Canada’s recommendations would see a fair credit benefit created by provincial or federal governments to help those in financial emergency, providing an alternative to predatory payday loans. The organization also wants the interest rate on installment loans to drop from 60% to 30%. This includes all fees, charges and insurance.

In 2017, more than 6 million Canadians were paying off installment loans of up to $15,000 with interest rates as high as 59.9% (the federal cap is 60%).

One of the report’s case studies documented the experience of Donna Borden, who borrowed $10,000 from CitiFinancial in 2003 after being denied a consolidation loan by her bank.

“After 7 years, Donna had paid $25,000 in interest and still owed $10,000,” the report said. “She was misled into getting $2,600 of insurance on a $10,000 loan and then also paid interest on the insurance. The lender also repeatedly changed the terms of Donna’s loan without telling her and charged her a number of refinance fees.

In 2019, ACORN sent a written submission to the House of Commons ahead of this year’s budget. Among their three recommendations are providing a $10-a-month internet plan to low-income Canadians, modernizing the employment insurance system, and making banking safer by ending predatory lending.

That report noted that nearly one in two Canadian workers live paycheck to paycheque, with millions of workers “at an unforeseen expense” far from “spiraling debt”.

Earlier this month, Nova Scotia Utilities and Review Board (UARB) has reduced the maximum cost of borrowing for payday loans in the province from $19 to $17 per $100. This amount will drop further to $15 per $100 on January 1, 2024. The new regulations, which are due to come into effect on September 1, will also see the maximum interest rate charged on outstanding default balances reduced to 30%. That’s still more than five percent higher interest than the average credit card company.

“Despite numerous comment letters claiming that the payday loan industry would be “shut down” in Nova Scotia or that the maximum cost of borrowing would be significantly reduced, the Commission remains aware that the federal and provincial governments have put in place legislation allowing lenders to offer payday loans to the public,” reads the UARB report.

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[COLUMN] Customer compares Chapter 13 with various alternatives for $60,000 credit cards — https://apairof.com/column-customer-compares-chapter-13-with-various-alternatives-for-60000-credit-cards/ Sat, 18 Jun 2022 19:57:30 +0000 https://apairof.com/column-customer-compares-chapter-13-with-various-alternatives-for-60000-credit-cards/ THE client is 50 years old and married. He owes $60,000 in credit cards. He pays $2,000 a month in minimum credit card payments to keep the $60,000 current. His wife is not jointly and severally liable on these cards. She only owes about $2,000 in credit cards alone. They own a house that is […]]]>

THE client is 50 years old and married. He owes $60,000 in credit cards. He pays $2,000 a month in minimum credit card payments to keep the $60,000 current. His wife is not jointly and severally liable on these cards. She only owes about $2,000 in credit cards alone.

They own a house that is currently worth $1 million with a mortgage of $300,000. So their equity in the house is at least $700,000. The client’s home exemption is $600,000. This means there is $100,000 of non-exempt equity. According to the liquidation analysis, compared to Chapter 7, the customer will have to pay off the entire $60,000 of Chapter 13 credit cards over five years in 60 equal installments, without interest. All payments made under the Chapter 13 plan pay off the principal balance as there is no applicable interest.

The Chapter 13 plan payment is about $1,000 per month for 60 months, which will pay off all $60,000 in credit cards in five years. If the client makes all 60 payments according to the confirmed plan, the court will issue a discharge order at the end of the 60th payment. The discharge order will state that the customer owes zero or nothing on the credit cards at the end of the 5th year. Can creditors still sue the client for unpaid interest, absolutely not! Legally, the customer no longer owes anything on these cards.

Additionally, while the customer is on the plan, creditors cannot sue, call, or otherwise contact the customer to collect on the cards. The customer has peace of mind. He doesn’t have to worry about being sued. They can’t garnish his wages or take money from his bank accounts. The bankruptcy court protects the client’s residence from any attached creditor lien. Thus, in Chapter 13, the automatic bankruptcy stay protects the client, including all of their assets and home. This is the order of the bankruptcy court directing the creditors to cease and desist from all collection efforts against the client and its assets. Pretty cool!

The client pays their plan payments to the Chapter 13 trustee, a court officer whose responsibility is to ensure that all plan payments are distributed to creditors who have filed their proofs of claim. The trustee ensures that all payments are distributed to the correct creditors. In other words, the trustee can’t get away with your money. This is another reason why the client will have peace of mind in Chapter 13. It pays the trustee who is under the supervision of the bankruptcy court.

What other alternatives are there before the customer decides to seek Chapter 13 relief for his $60,000 credit card?

One option he had was to get a $60,000 loan with very high interest to pay off all his credit cards. There were many offers from lenders for these alternatives. Payday lenders have branched out into this type of medium-term, high-interest loan to avoid regulation. The offers are $60,000 at 50% to 100% interest. Does it make sense to get this type of high interest loan? No, this is not the case. The client could end up losing his house if he got this loan. He will live a life of pain. He is expected to pay off a $60,000 principal loan with $90,000 to $120,000 in three to five years. Compare it with zero or no interest in chapter 13.

Another option he had was consolidation. He was actually in consolidation and was paying $1,800 a month for 60 months for six months to a “consolidator”. A “consolidator” is not an officer of justice. He is a businessman and consolidation is his business. What if he decides to close his business? Well, that’s the risk you take. One issue that arose was that two creditors did not agree to toe the line and sued for $30,000. Compare this to Chapter 13 where the court shields the client from all lawsuits and collection efforts. All collection efforts, including legal action, stop the minute the customer’s Chapter 13 is filed.

He also had the so-called “settlement” option. He can negotiate directly with creditors or use a third party to “settle” the debt at a price lower than what is owed. The client actually received several offers from various creditors to cancel part of the debt owed with a lump sum payment. For example, Creditor A will agree to accept 70% of what is owed $10,000 as settlement. Thus, for a payment of $7,000, the creditor will consider the case closed. Good luck raising the $7,000. Maybe you can do UBER at night and not sleep at all. After three months, you could have $7,000. The problem is that they want the $7,000 up front, not in three months. And, the other creditors do not agree to settle, they prefer to sue you immediately to recover their money.

Another option is to get a $60,000 HELOC or home equity loan and use the proceeds to pay off all credit cards. The interest rate for the HELOC is lower because the client’s home will be used as collateral for the loan. The client will have to obtain a second mortgage on his house for $60,000. Remember that HELOC loan interest rates fluctuate. When mortgage rates rise, as they did yesterday, and will rise for the rest of the year to rein in the high inflation at that time, the customer will end up paying double-digit interest on HELOC. And, if he stops paying on the HELOC, guess what happens? The creditor can and will seize his house.

It’s really no surprise that the client chose chapter 13 relief to protect his home from levies, lawsuits, wage garnishment, bank levies and just put an end to all those harassing phone calls for collection, and the unwanted risk of foreclosure of the client’s home through a HELOC loan. Peace of mind, no interest and full legal protection from the bankruptcy court. Trustee guarantees that your payments are distributed to the correct parties.

Of course, if the client’s net worth was $625,000, they would only have to pay a little over $400 per month for 60 months. At the end of the plan, $35,000 is discharged or wiped out. He doesn’t have to pay the full $60,000, he only has to pay $25,000 of the $60,000 cards because according to the liquidation analysis, only $25,000 is not exempt.

If you need debt relief, schedule an appointment to see me. I will analyze your case personally.

Disclaimer: None of the above is considered legal advice and there is no attorney-client relationship between reader and attorney.

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Disclaimer: None of the above is considered legal advice to anyone. There is absolutely no attorney client relationship established by reading this article.

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Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented over five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South, Suite 10042, Alhambra, CA 91803 .

(advertising supplement)

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7 different types of loans you should be aware of https://apairof.com/7-different-types-of-loans-you-should-be-aware-of/ Fri, 10 Jun 2022 17:55:56 +0000 https://apairof.com/7-different-types-of-loans-you-should-be-aware-of/ Consolidation loans can be an attractive option for borrowers who struggle to make multiple loan payments each month, as they can potentially lower your monthly payments and interest rate. Before consolidating, it is important to understand the types of consolidation loans available and their impact on your overall financial situation. These types of loans come […]]]>

Consolidation loans can be an attractive option for borrowers who struggle to make multiple loan payments each month, as they can potentially lower your monthly payments and interest rate. Before consolidating, it is important to understand the types of consolidation loans available and their impact on your overall financial situation.

These types of loans come in different forms, each with their own advantages and disadvantages. Here are the most common types of consolidation loans.

1. Home Equity Loan

This type of consolidation loan uses your home as collateral. If you default on the loan, your home could be foreclosed. However, home equity loans often have lower interest rates than other types of consolidation loans.

2. Personal loan

Personal consolidation loans are unsecured, which means they do not require collateral. This makes it a good option for people who don’t own a home or don’t have any assets to use as collateral. However, because they are unsecured, personal consolidation loans often have higher interest rates than other types of consolidation loans.

3. Balance Transfer Credit Card

This type of consolidation loan allows you to transfer the balance of your other credit cards to a single card with a lower interest rate. However, most balance transfer credit cards have an introductory APR of 0% for only 12-18 months, after which the interest rate changes to regular APR.

4. Student loans

Student loans can help you finance your education and avoid accumulating too much debt. There are many different types of student loans, so it’s important to shop around and compare interest rates before choosing one.

There are two main types of student consolidation loans: federal consolidation loans and private consolidation loans. Federal consolidation loans are available from the US Department of Education and can be used to consolidate multiple federal student loans into one loan with one monthly payment. Private consolidation loans are offered by private lenders and can be used to consolidate federal and private student loans.

5. Payday loan

A payday loan is a short-term, high-interest loan that is typically used to cover unexpected expenses or emergencies. Payday loans should only be used as a last resort, as they can have very high interest rates and fees.

6. Title loan

A title loan is a type of secured loan where you use your car as collateral. Title loans usually have very high interest rates and should only be used as a last resort.

seven. Credit line

A line of credit is a flexible loan that can be used for consolidation, home improvement or other major expenses. Lines of credit generally have lower interest rates than other types of loans, making them a great option for saving money on interest payments.

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What is an installment loan and how does it work? https://apairof.com/what-is-an-installment-loan-and-how-does-it-work/ Tue, 07 Jun 2022 11:50:41 +0000 https://apairof.com/what-is-an-installment-loan-and-how-does-it-work/ An installment loan is a lump sum of money that you borrow and then repay at fixed intervals. Installment loans are often used to finance a major purchase, such as a house, car or boat, or to fund education, although you can get an installment loan for almost any reason. If you’re wondering what an […]]]>

An installment loan is a lump sum of money that you borrow and then repay at fixed intervals. Installment loans are often used to finance a major purchase, such as a house, car or boat, or to fund education, although you can get an installment loan for almost any reason.

If you’re wondering what an installment loan is, you’ve come to the right place. Learn more about how installment loans work, the pros and cons, and how to get an installment loan.

What is an installment loan?

An installment loan is a type of loan that lets you borrow money and pay it back in equal monthly installments or another predetermined schedule. You repay the principal loan amount, plus interest, in fixed monthly installments until you have repaid the loan.

Installment loans usually have a fixed interest rate that does not change for the life of the loan. However, some installment loans, such as private student loans, have a variable interest rate that can change while you pay off the loan.

Some installment loans also charge an origination fee to process your application. Depending on the type of installment loan, you may have to pay a prepayment charge if you prepay the loan. But if you fail to make payments according to the refund terms or make late payments, you may incur additional charges and harm your credit score.

Installment loans work differently from revolving credit, like a credit card. Revolving credit, like a credit card or line of credit, lets you borrow money and pay it back over and over again, while making payments on an installment loan until it’s due. refunded in full. Payday loans are also different from installment loans in that you repay a payday loan in a lump sum instead of fixed installments.

Types of installment loans

Installment loans can be secured loanswhich means they are backed by guarantees, or unsecured loans, which are not backed by guarantees. Mortgages and auto loans are two types of installment loans that are secured. Examples of unsecured installment loans include student loans, personal loans, and debt consolidation loans.

Mortgages

A mortgage is one of the most common types of installment loans used to purchase a house, condo, or land. Your home is collateral for a mortgage, so if you don’t make the payments, your lender can foreclose on your property. Most mortgages are repaid at fixed interest rates over 15 or 30 years. Your home is collateral for a mortgage, so if you don’t make the payments, your lender can foreclose on your property.

Car loans

Auto loans are also installment loans which are secured loans. Since your vehicle serves as loan security, it can be repossessed if you don’t repay your car loan. Repayment terms generally range from 24 months to 84 months, with the most common being 72 months.

Student loans

A student loan is an installment loan, whether you borrow from the federal government or a private lender. The standard repayment term for a federal student loan is 10 years. Federal student loans have a fixed interest rate. For private student loans, repayment terms vary by lender. Private student loan interest rates can be fixed or variable.

Personal loans

A Personal loan is a form of installment credit that you can take out for virtually any reason. You borrow a lump sum of money and then repay it at regular intervals. Common reasons for taking out a personal loan include medical bills, home improvement projects, debt consolidation, or paying for a wedding or vacation.

debt consolidation loan

A debt consolidation loan is a personal loan you use to combine multiple debts into one monthly payment, often at a lower interest rate. Since more of your monthly payment goes toward the principal balance, a debt consolidation loan can reduce the time it takes to pay off debt. APRs range from 6% to 36%, depending on your credit score.

Home Equity Loans

A home equity loan, or second mortgage, is a type of secured loan that lets you borrow against the equity in your home. You repay it at a fixed interest rate on a set schedule. It is similar to a home equity line of credit (HELOC) in that both allow you to borrow against the equity in your home, however, a HELOC is a type of revolving credit that usually has a variable interest rate.

Buy now, pay later

Buy now, pay later for services like Klarna and After-payment, offer a form of installment credit. You typically split the purchase price into four interest-free installments. Installment payments are charged to your debit or credit card.

Advantages and disadvantages of installment loans

Installment loans have several advantages and disadvantages that you should be aware of.

Advantages of the installment loan

  • Predictable payments. Personal loans have a fixed repayment schedule and most have fixed interest rates. As you know the amount of your monthly payments, you can integrate them into your budget.

  • Lower interest rates. Installment loans often have competitive interest rates that are much lower than credit card interest rates, especially if you have good credit. The best installment loans have rates as low as 2.99% APR. This is one of the reasons why installment loans are often a good choice for debt consolidation.

  • Allow you to finance major purchases. An installment loan is often the only way to borrow enough to finance a major purchase, such as a house, car or boat.

  • Less impact on your credit score. Taking out an installment loan hurts your credit score less than charging a credit card or line of credit. Your credit utilization rate, or the amount of open revolving credit you use, is 30% of your credit score. You want your credit utilization to be as low as possible. Unlike revolving credit, installment credit does not affect your utilization rate.

Disadvantages of the installment loan

  • Risk of borrowing too much. Unlike a line of credit where you can borrow as much or as little as you want, with an installment loan you need to decide how much to borrow up front. This could cause you to borrow too much money.

  • Costs. Many installment loans have fees, such as origination fees, documentation fees and prepayment fees, which can increase the cost of borrowing. Missed payments can also result in late fees and hurt your credit.

  • Risk of loss of warranty. Many installment loans are secured loans, which means they are backed by collateral. A mortgage and a car loan are two examples. If you don’t make payments, you could lose your warranty.

Frequently Asked Questions (FAQ)

What is the difference between a personal loan and an installment loan?

A personal loan is a type of installment loan. It is usually an unsecured loan that can be used for almost any purpose. Because personal loans are generally not secured by collateral, they have higher interest rates than mortgages and car loans. However, they often have lower rates than a credit card.

Are installment loans hurting your credit?

An installment loan may hurt your credit slightly in the short term, since you may reduce your average credit age and get a difficult investigation on your credit report. However, an installment loan is generally much better for your credit than shopping with a credit card because you are not increasing your credit usage.

Can I pay off an installment loan sooner?

Yes, you can usually pay off an installment loan sooner, but check the loan documents to make sure you won’t incur a prepayment penalty. Also, look at the interest rates of any other debts you have. Installment loans often have lower interest rates than other types of debt, such as credit cards. Tackling higher interest rate debt first is usually a better bet.

Robin Hartill is a Certified Financial Planner and Senior Writer at The Penny Hoarder. Send your tricky money questions to AskPenny@thepennyhoarder.com.

This was originally posted on The Penny Hoarder, which helps millions of readers around the world earn and save money by sharing unique job opportunities, personal stories, giveaways and more. The Inc. 5000 ranked The Penny Hoarder as the fastest growing private media company in the United States in 2017.

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Orange Credit announces the launch of a low-interest loan https://apairof.com/orange-credit-announces-the-launch-of-a-low-interest-loan/ Wed, 01 Jun 2022 02:00:00 +0000 https://apairof.com/orange-credit-announces-the-launch-of-a-low-interest-loan/ SINGAPORE – Media outreach – June 1, 2022 – Orange Credit, a legal and licensed lender in Singapore, has announced the launch of its latest loan, with a loan interest rate as low as 1% per month. This new initiative will be used for its personal loans, bridge loans and payday loans. The launch of […]]]>

SINGAPORE – Media outreach – June 1, 2022 – Orange Credit, a legal and licensed lender in Singapore, has announced the launch of its latest loan, with a loan interest rate as low as 1% per month. This new initiative will be used for its personal loans, bridge loans and payday loans.

The launch of the new 1% loan by Credit Orange does not include administration fees, according to the applicable terms. Eligible applicants with an annual income above S$30,000, no outstanding loans from other approved lenders, as well as outstanding unsecured loans from banks not exceeding three times the amount of their monthly income may apply for the ready.

This lending initiative was born out of Orange Credit’s advocacy of responsible borrowing and lending to the public with the aim of minimizing personal debt in Singapore. Thus, Orange Credit is dedicated to exploring disposable income with borrowers, in addition to supporting borrowers in terms of debt consolidation loans in singapore. This comes from the fact that she strives to focus on the priorities of her clients in order to provide the optimal solutions to their financial worries.

Orange Credit is a reliable professional approved lender in Geylang, offering flexible, easy and fast cash loans with quick and hassle-free loan approval in Singapore. Orange Credit has steadily expanded its customer base since its inception by offering a variety of loans, such as debt consolidation and business loans in Singapore, to ease the financial concerns of people in need and businesses that have intend to grow. With no hidden fees, all documentation is straightforward and simple. This allows Orange Credit to speed up loan procedures, which results in a quick approval of loans.

For more information about Orange Credit and its reliable range of money lending services, please visit https://orangecredit.com.sg/.

#OrangeCredit

The issuer is solely responsible for the content of this announcement.

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How to Improve Personal Loan Applications: 6 Ways to Increase Chances of Approval https://apairof.com/how-to-improve-personal-loan-applications-6-ways-to-increase-chances-of-approval/ Mon, 30 May 2022 14:00:08 +0000 https://apairof.com/how-to-improve-personal-loan-applications-6-ways-to-increase-chances-of-approval/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Before you take out a personal loan, […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Before you take out a personal loan, read about 6 things you can do to improve your personal loan application and increase your chances of approval. (Shutterstock)

Personal loans can help cover a variety of unexpected projects and costs. The best way to get approved is to have good credit and a low debt-to-income ratio (DTI).

If you need a loan, these six tips can help improve your Personal loan apply and increase your chances of being approved for the funds you need.

Shopping around and comparing lenders is a good place to start before submitting an official personal loan application. Credible, it’s easy to view your prequalified personal loan rates from various lenders, all in one place.

1. Decide what type of personal loan you need

Personal loans are installment loans, which means you receive a lump sum of money up front and then repay the loan with fixed payments over an agreed term. But not all personal loans are created equal. There are many types of personal loans you can choose from, including:

2. Check your credit report

Your credit score is a three-digit number that gives lenders an idea of ​​how likely you are to repay the money you borrow. It is calculated based on your payment history, the number of accounts you have, the type of accounts, your credit usage (how much credit you use compared to the amount of available credit you have) and the duration of your credit history.

Lenders look at your credit score when they review your loan application. A higher credit score generally increases your chances of being approved and getting a better interest rate. By making payments on time and limiting the use of your credit, you can increase your score.

It’s a good idea to pull your credit reports from the three major credit bureaus at least once a year – you can do this for free by visiting AnnualCreditReport.com. Once you receive your reports, review them for potential errors, such as missed payments you didn’t actually miss or accounts you didn’t open. Dispute any errors you find with the appropriate credit reporting agency.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit.

3. Improve your credit score

If you have a fair or bad credit scoreHere are some things you can do to increase your score and increase your chances of getting approved for a personal loan:

  • Pay your bills on time. Even one missed payment can hurt your credit score. That’s why it’s important to pay your mortgage, credit cards, car loans, student loans and other bills on time, every time.
  • Pay off your debt. The lower your credit utilization ratio, the more likely a lender will approve you for a loan. By paying off your debt, you can improve your credit utilization ratio and, therefore, increase your credit score.
  • Do not close credit card accounts. Even if you no longer use certain credit cards, keep them open. It can increase the length of your credit history, which can improve your credit.
  • Limit new credit accounts. Only apply for new credit when you absolutely need it. Applying for too many credit accounts at once can hurt your credit score because it leads to difficult inquiries on your credit report and lowers the average age of your credit accounts.

4. Don’t borrow more than you need

While it can be tempting to ask for more money than you need to meet a financial goal, like a car repair or a kitchen renovation, it can do more harm than good. Since a larger personal loan will come with a higher monthly payment and affect your ability to cover other financial obligations, lenders will consider it riskier. This can make it harder for you to get approved for a loan.

5. Consider applying with a co-signer

A co-signer is usually a family member or close friend with a good credit rating and a stable income who agrees to repay your loan in the event of default.

For example, if you are applying with a co-signer because you are unemployed or your credit is poor, you may get approved for a loan that you would not qualify for on your own. You could also get a lower interest rate, which could save you hundreds or even thousands of dollars over the life of the loan.

While a cosigner can make your personal loan application more attractive to a lender, it’s important to consider the potential downsides of applying with just one. If you fall behind on your payments, you could put the co-signer in a difficult position and damage your relationship, as well as their credit. That’s why you should only apply for a co-signer if you’re sure you can repay your loan as agreed.

Additionally, it is difficult to remove a co-signer from a loan once the funds have been disbursed. Your co-signer may be stuck with responsibility for the debt for a while until you pay it off. Make sure the co-signer you choose not only understands this risk, but accepts it.

6. Find the best personal lender for you

There is no shortage of personal loans on the market. Take the time to shop around and compare a variety of products offered by banks, credit unions and online lenders. Look at their amounts, interest rates, fees, and any special perks they might offer.

It can help you find the ideal personal loan for your unique situation.

Credible, it’s child’s play to compare personal loan rates from multiple lenders without a firm credit application or any effect on your credit.

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Debbie builds the first rewards platform to incentivize individuals to pay down their debt https://apairof.com/debbie-builds-the-first-rewards-platform-to-incentivize-individuals-to-pay-down-their-debt/ Thu, 26 May 2022 20:43:56 +0000 https://apairof.com/debbie-builds-the-first-rewards-platform-to-incentivize-individuals-to-pay-down-their-debt/ Credit card use has grown exponentially since its introduction in the 1970s. While it has taken our consumer-driven economy to new economic heights, our reliance on credit has left us with bad financial habits. More and more Americans are in more debt than ever, with no way out of their financial hole. Debt is so […]]]>

Credit card use has grown exponentially since its introduction in the 1970s. While it has taken our consumer-driven economy to new economic heights, our reliance on credit has left us with bad financial habits. More and more Americans are in more debt than ever, with no way out of their financial hole. Debt is so prevalent in our society that pizza companies offer a buy-it-now, pay-later option to order via their online payment. Frida Leibowitz, Rachel Lauren and Maxime Fourmault help Americans reduce their addiction to credit with Debbie before they overdose financially. Debbie is a “habit-changing rewards platform” that leverages behavioral psychology to create financial products that empower users to get out of debt and into a healthier financial future. The Miami, Florida-based startup has raised $1.2 million from One Way Ventures, BDMI, TA Ventures, Village Global, Green Egg Ventures, Liquid2 Ventures, If Then Ventures, Dipanjan Bhattacharjee and several other angel investors.

Adam Moelis, co-founder of Yotta and angel investor in Debbie, says, “Many FinTech apps now offer financial wellness tools, but they often focus on short-term relief rather than habit building. sustainable finances. Debbie uses behavioral psychology concepts to create a personalized, engaging and accessible journey to debt freedom for those struggling with a perpetual cycle of debt, dramatically increasing their chances of long-term success.

Dipanjan Bhattacharjee, COO of Nirvana and angel investor in Debbie, says, “I have known Frida over the years and seen how smart and passionate she can be to get things done. I was very impressed with Debbie’s vision and the way Frida and Rachel wanted to challenge the status quo of debt consolidation loan offers. The rare combination of relevant experience, good skills and a positive attitude is what convinced me to invest and help in any way possible.

America’s reliance on debt has only gotten worse over time. As consumers are constantly in demand throughout the day, the temptation to spend only increases proportionally. Credit cards are incredibly useful for bridging the gap when you’re having cash flow problems or wanting to rack up rewards points, but they’re a double-edged sword once the bill comes due. Many Americans carry a balance each month, which puts them in a worse situation due to exorbitant credit card interest rates. (There’s also the common financial misconception that keeping a balance is best to improve your credit score, which isn’t true. You should aim to pay off your balance every month!) Have a healthy use of the credit card is crucial for having a high credit score. , which can impact your ability to access car or home loans and whether or not a potential employer will hire you. As US credit card use worsens, there is a lucrative market to help Americans get out of debt.

Consumer credit card debt has reached 841 billion dollars in the first quarter of 2022. With such massive debt, it is unlikely that every user will be able to pay off their balance quickly. Payday loan companies take advantage of individuals and families in financial difficulty, lending them money at interest rates that would make credit card companies blush, being greater than 600% in some cases. The stigma of debt can affect someone so deeply psychologically that they begin to no longer be a functioning member of society. Leibowitz, Lauren and Fourmault can intervene with Debbie before it’s too late for individuals and families in debt.

Debbie offers its users a rewards platform for paying off debt, putting them on the path to having positive net worth and cash flow. The startup encourages positive and constructive behavior with financial incentives for users to develop good financial habits. The founders believe that the technical implementation of their solution is easy; but the real challenge is understanding its users’ relationship and habits with money and integrating those lessons into the core of Debbie’s platform. Debbie uses cognitive behavioral therapy and behavioral psychology to help users better understand the drivers of their drinking habits. By drawing the user’s attention to these spending habits through the app, the startup is able to design real-time reward actions to gradually change consumer behavior.

The startup’s current offering puts it on a path to offering future products and services that simultaneously incentivize debt repayment and savings, and more importantly, help users build long-term wealth through access to property, investment and retirement. When it comes to credit specifically, the data Debbie collects can provide a more dynamic, real-time perspective of the credit card user, which can be helpful to lenders in deciding who they approve for loans in the form of mortgage or other loan products. Leibowitz herself has already been in deep debt, both individually and her family. As much as she is building a product for others as her customers, she is building a tool that she and her family wish they had as they financially navigated America. Fortunately, her partnership with her co-founders makes Debbie’s massive potential impact a reality as the days go by.

CEO Leibowitz says, “I grew up in a single-parent, immigrant, uneducated family that didn’t have access to financial education and always struggled with debt. As an adult, I fell into the same debt trap and racked up $15,000 in credit card debt at age 21. Hoping to make a difference for others, I spent my early career days in digital consumer lending and had the unique opportunity to sit in the seats of borrower and lender simultaneously. I grew increasingly frustrated that our current financial system is quick to topple us when we misbehave, but doesn’t do a good enough job of celebrating our victories.

Leibowitz leads the founding trio as CEOs. She graduated from NYU’s Stern School of Business with a degree in business and political economics and was previously a member of the core team at Goldman Sachs Credit Risk and Product, working on the company’s consumer credit card product. , Marcus. Lauren, COO of Debbie, earned her degree in Business Economics and Policy from NYU’s Stern School of Business and previously worked as a venture capitalist at BDMI and did equity research at Credit Suisse. The team is completed by Fourmault, a graduate of the Private School of Computer Science (EPSI). A computer science graduate, he previously worked at Earnest as a management engineer and has previous entrepreneurial experience. These three combine their deep financial background and temper it with a healthy respect for mental health as entrepreneurs. Together, they will get Americans and their families out of debt and create wealth for generations to come.

]]> 7 smart ways to use an installment loan for your financial needs https://apairof.com/7-smart-ways-to-use-an-installment-loan-for-your-financial-needs/ Thu, 19 May 2022 10:37:14 +0000 https://apairof.com/7-smart-ways-to-use-an-installment-loan-for-your-financial-needs/ An installment loan is the first thing that comes to mind whenever we need money. It is a type of loan that is repaid in equal monthly installments until the full amount is paid off. It offers flexibility and competitive rates and can be used for various financial needs. The term of the loan depends […]]]>


An installment loan is the first thing that comes to mind whenever we need money. It is a type of loan that is repaid in equal monthly installments until the full amount is paid off. It offers flexibility and competitive rates and can be used for various financial needs.

The term of the loan depends on the amount you have borrowed, but is usually a few months to a few years. Borrowing limits are also generally higher than other types of loans, such as revolving lines of credit or payday loans. But when can an installment loan be a good idea? Here are seven situations where it can help:

Emergency expenses

You can get an installment loan if you need funds immediately to cover bills, an emergency expense, or something else that needs immediate attention. An emergency expense, such as your car breaking down or the unexpected death of a family member, can be devastating to your finances.

Suppose you need an installment loan to cover an emergency expense, such as expensive medical bills. In this case, you can take out a loan from CreditNinja to get the money you need the next business day. You don’t even have to worry if you have bad credit because they offer installment loans for people with bad credit.

Vacation or trip abroad

The thought of planning a fun getaway can be exciting. But too many people let their vacation dreams turn into financial nightmares when they don’t have enough money to travel.

If you dream of an adventure abroad or just want to take your family somewhere nice for the weekend, you can use an installment loan to cover the costs. This way you can have fun without worrying about how you’re going to afford your vacation.

start a business

Another smart use of an installment loan would be to start your own business. Loan funds can be used to purchase supplies for your business or pay for initial marketing costs, such as advertising.

With an installment loan, starting a business is easier than ever. You’ll have the cash you need to get your business up and running in no time.

Debt Consolidation

If you’re having trouble paying off your credit card or other debts, you can consider consolidating loans into lower interest payments. Considering that debt consolidation is one of the most common reasons for getting a personal installment loan, it’s a great way to pay off your debts.

Also, a personal loan usually comes with a lower interest rate than many other loans, such as credit cards. So if you’re looking for the best way to get out of debt, an installment loan can be a great option.

Improve credit score

A good credit rating is essential when people are looking to borrow money from financial institutions. Your credit score is built by your financial habits, such as paying your bills on time, keeping loans and lines of credit open for an extended period of time, and using your credit limit.

Taking out an installment loan can help you build a strong credit history and improve your credit score. However, its realization will necessarily require a certain level of financial discipline.

Car costs

Unscheduled maintenance and repairs to your car will put you in a position to need immediate cash. The best type of installment loan to get is either a car loan or a personal loan if you are looking to buy or repair a car.

The only difference between a car loan and a personal loan is that car loans have lower interest rates than the latter and use your vehicle as collateral. The decision is yours, so carefully consider the pros and cons of each type of loan if you ever need one for your car in the future.

Household appliances

You may need or want to upgrade your appliances and furniture from time to time. But if you don’t have cash, an installment loan can come in handy. This will allow you to purchase the necessary items without saving for a large purchase.

With an installment loan, you can spread the cost of your purchase over several months or even years. You won’t have to empty your savings account all at once or make a large purchase on your credit card.

Final Thoughts

An installment loan can be a great financial tool to help you out in a variety of situations. But as with any loan, you must understand the terms and conditions before signing on the dotted line. So be sure to choose the right loan for your needs and take the necessary steps to ensure you can make all payments on time. With these tips, you can build a better financial future for you and your family!

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Common Reasons Borrowers Depend On Payday Loans https://apairof.com/common-reasons-borrowers-depend-on-payday-loans/ Fri, 13 May 2022 13:05:28 +0000 https://apairof.com/common-reasons-borrowers-depend-on-payday-loans/ Payday loans are a useful source of credit, but come with a negative media narrative. Fortunately, the purpose of the mayhem was the high interest rate, which was eliminated several years ago with the introduction of regulation. Payday loan borrowers enjoy legal protection and for this reason it has gained popularity over traditional short term […]]]>

Payday loans are a useful source of credit, but come with a negative media narrative. Fortunately, the purpose of the mayhem was the high interest rate, which was eliminated several years ago with the introduction of regulation. Payday loan borrowers enjoy legal protection and for this reason it has gained popularity over traditional short term bank loans.

LoanPig.co.uk offers good opportunities and short loans for everyone to get a loan with ease and speed. The APR will be high, but you will pay it very soon. Even the amount of fees involved will be less than traditional bank loan processing. Moreover, if the repayment is made on time, it is an excellent option that gives you a space of 5 to 6 months to restructure your finances.

Common reasons why borrowers depend on the type of payday loan

There are several reasons why borrowers choose to choose payday loans. It’s a magic way to get cash flow to your bank account fast.

During unemployment

Source: forbes.com

Unemployment is a phase that hits a person emotionally and financially. This is a point that no one wants to experience, but which can suddenly put you in a financial situation where it becomes difficult to manage your basic needs. A personal loan is an attractive option because –

  • You have access to instant cash
  • You persist your similar lifestyle before you Unemployed
  • You think unemployment isn’t a big deal
  • You are breathing deeply and feeling motivated to look for another job opportunity

It is wise not to choose payday loans but to try other means. You can get jobseeker’s allowance. Also, reduce spending of your savings as much as possible. Accept any type of job until you land your dream job.

To merge other debts

Many borrowers apply for payday loans to pay off other debt. It could be credit card debt or a loan from another lender. It’s a wise move when the advertised interest on the loan is less than the debtor already owes.

Usually, the change can be bad because there are other bills, which can add up to a huge amount. Borrowers can choose the debt consolidation feature. It bundles all loans together making it easy to repay and less risky than using the payday option.

Avoid humiliation

Source: incomepassifmd.com

You can borrow small loans from friends and family, which is less risky than choosing a professional loan service. In addition, there are virtually no worries about interest payments.

Unfortunately, there are stories that borrowing from friends or family caused friction, which damaged their relationship. Therefore, many people prefer to go to a lender and pay interest. You can avoid the embarrassment and humiliation of taking out a loan from someone you know personally.

Holiday loans

At Christmas, parents look forward to giving their children objects or things they want. Payday loans seem to be the best answer. They receive the necessary funds for the holiday period, which are reimbursed with the New Year’s salary.

Parents may be tempted to borrow large sums to buy everything their children dream of, but overlook the cycle of debt. It is difficult for parents to explain to their children that the requested gifts are unaffordable, especially when Santa Claus is supposed to bring them. Be sure to consider your financial capacity before applying for a payday loan.

Support during bad credit ratings

Source: upgradedpoints.com

Payday loans have a bad reputation, so many people borrow from banks or other lending institutions. Here, if your credit score is not good, your loan applications are refused. Alternatively, payday loan services approve loans for bad credit. Approval is based on other criteria like affordability. However, rather than applying for a payday loan, it is better to work on improving your credit score by paying bills and debts on time consistently for more than 6 months. A high credit score will give you access to easy loans in the future.

Pay the bills

Payday loans are an attractive option to pay the high utility bill. Nevertheless, it is wise to look for ways to reduce your utility costs. Find ways to control energy use, such as better home insulation instead of wasting money on gas. Thick curtains can keep the heat inside and are not an expensive switch. Never leave the shower running for hours, have time limits to reduce wasted hot water.

For urgent medical treatment

Source: vitalrecord.tamhsc.edu

Medical bills must be paid or they will accumulate like any other type of debt. Urgent medical treatment or surgery is one of the main reasons people depend on short term loans. However, to circumvent personal loans, it is best to have adequate health insurance coverage, as a medical crisis can be expensive.

To pay mortgage payments

People debate that missing a mortgage payment is worse than getting a payday loan. This is because the mortgage provider begins to assume that you cannot afford the house. If you persist on late payments, they take action against you. You should discuss an appropriate repayment plan with the mortgage lender or downsize your home instead of applying for a payday loan.

Pay an overdraft

The unregulated overdraft is scary. You get penalized, and with payday loans, people avoid that. Steps should also be taken to ensure that you are not overdrawn.

Pay an unexpected debt

Source: experian.com

Everyone wants to stay miles away from debt, but it can happen unexpectedly. For example, your father is dead, so you inherited his debt. You will need to erase it as soon as possible. You will use the payday loan to escape from this situation.

Things to know

As another type of loan is hard to come by, payday loans have become popular for raising capital quickly rather than waiting and missing out on opportunities or in times of emergency. People who are in desperate need of money and don’t have time to go through the traditional loan approval process, which takes time, gets rejected and repeats it with another lending institution, find an option fast payday loan to pursue.

Bank loans are open to investigation, while a direct payday lender does not prioritize where the borrower will use their money. Disclosure to the payday lender about your loan is for statistical purposes only. You can use the amount to treat yourself or go on an excursion or pay a deferred installment, the determining aspect of the approval will be your ability to repay the borrowed amount.




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Can you get a jobless loan? Here’s what you need to know https://apairof.com/can-you-get-a-jobless-loan-heres-what-you-need-to-know/ Thu, 12 May 2022 17:41:28 +0000 https://apairof.com/can-you-get-a-jobless-loan-heres-what-you-need-to-know/ Getting a loan can help you in many ways when you are in a tough financial situation, however, for some getting a loan is not as easy as it is for others. Many people who need a loan cannot get a good deal because of their credit score or even because they are unemployed. So […]]]>


Getting a loan can help you in many ways when you are in a tough financial situation, however, for some getting a loan is not as easy as it is for others. Many people who need a loan cannot get a good deal because of their credit score or even because they are unemployed.

So what can you do if you are unemployed? Well, the bad news is that you may not be able to get a loan if you are unemployed. The majority of lenders will want you to have a permanent and regular stream of income, as this ensures that you have the funds to pay back.

However, this is not the case for everyone. Instead, you might find yourself able to get a loan from one or two lenders even if you’re unemployed, but the loan won’t be as good as if you were employed.

So how does it all work? Are you stuck vying for no credit check loans or do you have other options?

Can you get a loan while you are unemployed?

You can still qualify for a loan, even if you are unemployed. However, if this is your case, you will need either strong credit or another source of income to support you in this endeavor.

Unemployment can arise unexpectedly or by choice, as would be the case with retirement, lenders will still sometimes consider lending to you, as long as you are able to persuade them that you will be able to make regular payments on time.

This is the main concern of the lender.

A lender will generally want to see three things on an application. These include a good and solid credit history, a good credit rating and regular income.

A strong credit history means you have a good history of paying loans or credit on time with little to no late payments, especially recently.

Your credit rating should be as high as possible, the higher the better. Some lenders will have a minimum score that they accept. The higher your credit score, the lower your APR, the lower your credit score, the higher your APR.

Lenders should also know that you can make repayments every month. Technically, this doesn’t have to come from a paycheck, however, you should at least have a reliable source of income that will be enough to cover expenses on a monthly basis and to cover loan repayments.

What should you think about?

There are many types of loans you can get, but probably the most popular are personal loans. With these loans you should consider the same things you should consider with any other type of loan.

There will be short and long term financial factors and consequences of taking out a loan that you should be wary of.

Here are some things you should think about.

Can you make payments on time?

First, if you’re unemployed, or even employed, being able to make payments on time is a big deal.

You should always ask yourself if you can make the minimum payment on time every time. Late payments will not only affect your credit score, but they can also lead to late fees. If you can’t repay the loan, your lender may even go further.

This means debt collection agencies and a negative credit report, if your loan is secured they can take your property, or you can even be sued.

Understanding these factors is very important to ensure you get what you need from a loan and that a loan won’t be a bad idea for you.

What are the loan terms and risks?

It is wise to make sure you understand the terms of the loan. Read the fine print and write down the important things. This includes payments, fees, penalties, interest, etc.

However, also be aware of the risks, consider the best-case scenario, then consider the worst-case scenario, and don’t go for it unless you’re happy with both.

Consider if this loan is really the best thing for you, what might happen if you are unable to make the payments, and the interest rate, what this will mean for your actual total payment.

Don’t forget to consider the consequences if you don’t repay the loan, could you end up losing your house or your car?

What are lenders thinking?

Remember that each lender will have different credit policies that they will use to determine if the borrower is most likely to repay the loan. It is a risk assessment.

So even if you don’t have a job, some lenders accept alimony, disability benefits, unemployment benefits, social security payments, pensions, child support, interest or dividends, etc.

What types of personal loan can you get?

If you are employed, you could get a secured or unsecured loan. Secured loans are tied to an asset of yours and you risk losing that asset if you do not repay the loan in full. Unsecured loans do not have this risk but usually have a higher interest rate.

You could also get a payday loan (although risky) as well as cash advance or debt consolidation loans!


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