Personal loans and car title loans are some of the quickest and easiest ways to get qualified borrowers the cash they need, but that doesn’t simply mean you’re a guarantee to be accepted for one. Different loans have different requirements, and there are situations where credit, derogatory marks or other factors could keep your personal loan application from being approved. What do you do if this happens to you? There are a few proper steps to take. Let’s have a look.
Common Uses of Personal Loans
Life can bring many unexpected twists and turns, especially within the realm of finances. For people who might be in need of a little extra flexibility now and then for a variety of reasons, personal loans through a company like Loans for Less are a great option. What are some of these reasons that might cause a need for a personal loan? Here are a few of the most common.
Debt Consolidation or PayoffThe most common use of a personal loan is to consolidate outside debts. A lump payment can allow certain people to combine multiple debts into one more manageable payment, or to lower monthly payments so they can make payments at a level commensurate with what they have available. A personal loan can also be used to pay off credit cards, which can lead to a lower interest rate and create “light at the end of the tunnel” when it comes to an end-point for credit debt.
Home Remodeling or Moving ExpensesIf you need to install a new roof, remodel your bathroom or add in an amenity like pool or a hot tub, a personal loan can be a great option – especially if you don’t currently have equity in your home and don’t want to get a home equity line of credit. Additionally, moving expenses are just the sort of one-time payments that can be perfect for a personal loan. Larger moves can be expensive, and particularly if they’re a move with a new job in mind, there might be a situation where cash funds are low right now, but will be on the upswing soon. This makes a temporary personal loan a great choice.
Personal EventLarge life events are another example of a great use for a personal loan. This might be a positive event like a wedding or a graduation, but it also could be a sudden and sad event like a funeral where funds are needed in short order.
Bills or EmergenciesVarious bills, especially medical bills, may require immediate payments to avoid major additional expenses. Things like dental services, cosmetic surgery or fertility treatments can come with large cost attachments, and may come up as emergencies that cannot be avoided. A personal loan can be the simplest way to solve these temporary issues. Interested in learning more about personal loans, or about any of our title loan solutions? Talk to the brokers at Loans for Less today.
Differences Between Personal Loans and Lines of Credit
If you’ve just learned the basics of a personal loan, you may be wondering how it differs from a line of credit. Both options extend you the basic ability to add funds in an immediate sense, but there are a few big differences. At Loans for Less, we have all the best signature loans and personal loans available for your needs. These are generally perfect for one-time purchases or emergencies, where lines of credit can be better for ongoing purchases with an extended need for credit. Let’s look at a few of the other basic details here.
Disbursement TypeWhen you receive a personal loan, the entire sum of the loan is released to you in a single lump payment. This differs from a personal line of credit, which is reusable. Once you’ve been approved for a line of credit, you can continue accessing it into the future. Both areas can have major benefits depending on your situation.
AmountsThe minimum for most persona loans is $3,000, where it’s $5,000 for most lines of credit. Maximums can generally stretch larger for lines of credit, but this is mostly because of how far it can extend into the future. The max you can borrow in a personal loan situation will depend on factors like credit score.
Interest RatesWith a personal loan, you can often choose between fixed or variable interest rates – an important factor for many people. With lines of credit, only variable rates are allowed.
Secured or UnsecuredSecured loans are those backed by collateral, meaning they allow a higher borrowing amount and lower interest rates. Unsecured loans have faster approval processes, but borrowing amounts can be lower and rates will be higher. Both personal loans and lines of credit can be either secured or unsecured.
Repayment OptionsWith a personal loan, you can choose between weekly, bi-weekly and monthly payment formats. You’ll pay a combination of principal and interest. With lines of credit, you only pay interest on the amount you use – not the entire line of credit. However, every cent you borrow must be repaid by the end of the term, or you face harsh penalties. To learn more about personal loans, speak to the brokers at Loans for Less today.
Benefits of Personal and Signature Loans
There are many ways to get money quickly when you’re in a bind, but perhaps the simplest is using a personal or signature loan. These require no collateral, typically have low interest rates, and can be completed quickly to get you the cash you need. For signature loans, the name is the reality – all you need to get your cash is a signature. At Loans for Less, we offer a full range of personal and signature loans for people who need quick cash. What are the specific benefits of a personal or signature cash loan? Let’s take a look.
FlexibilitySignature loans and personal loans are meant to get you some quick cash with as little hassle as possible. You’re not putting up your car, your house or any other collateral, and there’s no requirement for how you spend the money you receive – you have complete control over how it’s put to use. Personal and signature loans do require solid credit since there’s no collateral involved, but those who qualify are opened up to a new layer of temporary financial freedom. These loans can allow you to clear some debt, make a large but necessary purchase, or make a one-time emergency payment.
Lower Interest RatesBecause there’s no collateral and these loans are based on credit alone, interest rates are generally far lower than other kinds of loans. Their terms are usually shorter, which means your monthly payments might be higher than other kinds of loans, but you won’t be forking over tons of extra interest to get the cash you need.
Fixed Interest RatesPerhaps even more importantly for people who struggle with finances, most personal and signature loans come at fixed interest rates. This means your rate can’t change regardless of how much you spend or repay on the loan, a very big deal for some people who can’t afford any month-to-month variability in their spending habits.
Can Improve CreditIn many cases, a personal or signature loan can actually improve your credit. Interest rates on these loans are often lower than most credit cards, and people who have run up a high credit bill from one or two large bulk purchases can use personal loans as a way to increase the amount of credit they have available. Because credit utilization is such a big part of what goes into your credit score, this can help the score go up in many cases. To know more, or you are interested in a personal, signature or car title loan contact Loans for Less today, where our friendly and professional staff are standing by to assist you.
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Title Loans, Easy to Get Personal Loans in Salt Lake City in Demand
An auto title loan, or title loan, is a secured short-term loan that requires the borrower to put up a vehicle he owns as collateral. The borrower allows the lender to put a security interest on the vehicle’s title, which will be lifted as soon as the borrower completes payment of his loan. If the borrower fails, the lender can sell the former’s car to pay for the amount he owes.
Things to Ponder Before Getting Low Interest Personal Loans in Ogden
It’s easy to get excited over something you’ve always wanted to buy, like that brand-new car, a one-of-a-kind designer evening dress, or the LED TV you “badly” need. When you don’t have the money, it’s even easier to get tempted to take out a personal loan just to acquire those coveted items.
What to Consider when Using Car Title Loans for a Financial Emergency
In the event of an emergency, applying for car title loans is a good option to cover expenses, as Investopedia writer Reyna Gobel explains:
“How Car Title Loans Work If you were to take jewelry or other valuables to a pawn shop, an employee behind the counter would appraise your items and give you a loan based on what your items are believed to be worth worth. In this case, the pawn shop will lend you money and charge interest. If you don’t pay back the money within the agreed-upon time frame, you will forfeit your items. This is similar to how a car title loan works.”
Short on Cash? Get Quick Access to Personal Loans in Salt Lake City
Following the 2008 economic crisis, many Americans became prudent with their spending habits. However, that cautious spending mentality may be coming to an end this 2014. According to a report from Wicked Local-North Andover, many US citizens are once again starting to be more open to securing personal loans: