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The 3 Best Personal Loans for Home Improvement

Nowadays, many homeowners have turned to online personal loans lenders to receive funding for their home improvement projects. The reason is that they are easier to approve and faster in releasing the cash compared to banks. The following is the 3 best personal loans for home improvement.

1. Upstart

Upstart allows you to obtain approval for a personal loan from $1,000 to $50,000. Borrowers who want to apply must have a credit score above 620. You must have a verified income source and earn at least $1,000 every month. Upstart will approve you even if you have a short credit history. Through the preapproval process, you can get a quote estimate in less than 2 minutes. Every loan that Upstart issues has origination fee charges that range from 0 to 8%. The loan can be repaid within a 3 – 5 years period. The APR interest you are charged starts from 7.73% – 29.99%. It just take one day for you to see the fund in your bank account following approval.

2. Lending Club

Lending Club is a p2p platform where borrowers are allowed to apply for a loan amount as much as $40,000. Borrowers with minimum credit score of 600 can easily receive approval for a loan. On Lending Club, customers that submit their payments later than 15 days will pay a 5% fee or $15 (whichever is greater). It charges an origination fee in the bracket of 1%-6%. Just like a regular loan, the repayment can take 3 – 5 years . Depending on your creditworthiness, they may help you to save money with the cheapest rate from 5.99%; or the interest can get as expensive as 35.89% if you have low credit score. Lending Club allows joint loan application where one borrower can have a credit score of 600 and above while the other borrower’s credit score must be in the middle range of 500s.

3. Avant

Avant extend personal loan from $2,000 – $35,000 for borrowers with credit score as low as 580. They did not set any minimum income requirement but you must earn enough to cover the monthly payment and other living expenses. They incur a $25 late fee when you fail to submit the monthly payment 10 days from the due date. However, if you promptly make repayment for 3 consecutive months, you will see the late payment fee refunded back to you in your account. The origination fee is about 4.75% of the loan balance. You can opt for a loan term from 2 – 5 years. Avant personal loan has interest rate ranging from 9.95% – 35.99%. Avant interest rate is about the same as other lenders that specialize in offering loans for people with low credit scores, for example, OneMain Financial. Avant loan is great for consolidating your high interest debts. .

How Much Can You Borrow in a Personal Loan for Your Home Improvement Project

Generally, you can borrow an amount from $1,000 – $40,000 through a personal loan. It is true that some lenders would issue a bigger loan but they have stricter requirements in evaluating such applications. When you apply for a loan amount, the lender will want to know what you are going to do with the funds. Therefore, when you fill in the application form, make sure to state the home improvement project that you want to fund clearly.

The lender will also check your credit score. If you want your personal loan to quickly approve, you must have a credit score of at least 640 or above. The lower your credit rating, the higher the interest rate you must pay. Your current income will determine the amount they are willing to approve. The lender will also check whether you have other debts when you apply the loan. Some lenders will limit the amount you can borrow if you already have other existing debts.

Before shopping for a loan, you should take a look at your book keeping ledger to find out how much you are spending on your living expenses. You can flip through your book keeping ledger up to 6 months – 1 year before. When you get a rough idea on how much you spend every month, you can use a calculator to calculate how much income you have left after deducting the living expenses. As a rule of thumb, your income must be 3 times more than the monthly amount that you have decided to pay.

You can take a few actions to improve your credit report if you are hoping to get as much of the loan amount to approve. For example, you can start to get into the habit of making payment for your bills on time to improve your credit score. As you pay down your debt, you will be able to reduce your debt to income ratio. Ideally, your debt to income ratio should be lesser than 36%.

If you don’t have a job now, you can get one and apply the loan after working for 6 months. This will prove to the lender that you are financially stable and capable of making the monthly repayment. If you cannot qualify for an unsecured loan, you can consider using a collateral to get a secured loan.

When you sign up online, you have the opportunity to get pre-approved first. To get preapproved, you only have to fill in a simple form that ask some basic information about your income, employment and personal information. If you are preapproved, they will approve your loan faster afterwards. They will ask you to choose a repayment schedule. Those can afford paying more every month should do so by selecting a shorter repayment schedule.

How to Determine If You Need a Debt Consolidation Loan or Home Equity Loan

Debt consolidation and home equity loans are the two main types of loans that people often use to consolidate their debts. Both types of loans can consolidate multiple loans into a single repayment. Debt consolidation loan is basically a personal loan that is taken out to consolidate all the existing debts. With a personal loan, you can borrow an amount of around $1,000 – $35,000. Some lenders can lend up to $100,000 for qualified borrowers.

Debt consolidation personal loan is for those who don’t want to put in their property as collateral. All it requires to get approved for this type of loan is your signature. It is safer as you won’t face the risk of losing your house if you lose your job and can’t make on time repayment.

To qualify for an online debt consolidation personal loan, you must have a job that provide you with a reliable income for the past few months. The longer you have been employed, the lesser the risk level the lender will see you. It is easier to get approved when you have a low debt to income ratio and a good credit score. Higher credit score can help you to receive a lower interest rate.

You can apply for a debt consolidation personal loan from an online personal loans lender or P2P lender. With online lender, the loans can get approved in less than 1 week. If you apply from a P2P lender, it can take up to 2 weeks for them to approve and release the funds. After getting approved, you will have to repay back the loan according to the repayment schedule which can last from 3 – 7 years.

On the other hand, home equity loan is a type of loan that allows you to borrow against the equity value of your house. The equity value is the home appraisal value minus the amount that you still owe on the mortgage. If you get approved, you will receive a lump sum and you will have to make repayment according to the repayment schedule.

With a home equity loan, you are putting down your house as a collateral which will be repossessed if you cannot pay back on time. The reason why it is a popular option among the homeowners is that it has low interest rate. Besides, the interest that you paid will also be deductible from your income tax.

There is a good chance to qualify for a home equity loan if you have a credit score above 600 and you own a home. The amount that you can borrow is based on your house’s equity value although some lenders put a limit at $100K. You must keep in mind that you have to maintain a balance of at least 20% after taking out the home equity loan.

What Small Business Loan Platforms are Best for Startup Companies

New businesses need to go somewhere to get funding to ensure their businesses operate efficiently. The best place to get funding for your new business is to apply for a small business loans online. The business loans may require collateral and frequent repayment especially when you have low credit score. The following are the top 5 small business loans.

1. Credibility Capital
Credibility Capital offers loan amount from $10K to $350K with APR interest starting from 10% – 25%. The average loan amount that most people borrow from them is $75,000. It does not charge any prepayment fee and you can pay back the loan via automatic monthly payment. Borrowers are required to have a credit score of at least 650. The maximum repayment term for the loan is 3 years. UCC-1 filling is necessary if you want to apply a loan from Credibility Capital.

2. SBA Community Advantage
SBA Community Advantage is a special SBA 7(a) loan designed for startup companies. It offers the same low interest rate as the standard 7(a) loans. It provides loan amount of up to $250,000 and the maximum interest rate is 10.5%. Credit scores and other factors that are used to gauge the applicant is not as strict as the bank. You can be considered for the loan if your credit score is 575 or above. The loan can be used for all kinds of purposes by startup company including working capital and real estate. The only criteria is that your business must be commercial and located in the US.

3. QuarterSpot
QuarterSpot offers unsecured business loans of up to $200K without any requirement for collateral. You can apply for a business loan from QuarterSpot even if you have a credit score as low as 550. Your business must be operate for at least 1 year and you must have an annual income of at least $200,000 in order to apply for a loan. Every month, you must make at least 10 sales. You also need to maintain a minimum of $2,000 in your daily bank account balance. The loan requires daily or weekly repayment. The origination fee is 6% of the loan.

4. Fundation
Fundation offers loans of up to $500,000 for small businesses with good credit score of at least 620. Borrowers are only required to make repayment two times per month. This is good for startups who cannot afford to operate efficiently as they are obliged to pay back daily and weekly. Fundation business loans has a few requirements including minimum revenue of $100,000, minimum of 1 year in operation, and have at least 3 employees.

5. Lending Club
Lending Club offers secured loans of more than $100,000 with loan term length of 1 – 5 years for small businesses. The minimum personal guarantee is 20% of the loan amount. Lending Club will not approve borrowers who file for bankruptcy in the past 3 years. You have to make monthly repayment for the business loan. If you borrow less than $15,000, you can submit lesser documentation. It does not charge any prepayment penalty fee.

Large Loans is SOFI or Rocket Loans A Better Choice

Which Lenders Sofi or Rocket Loans Offer The Larger Loan Amount Potential
Sofi personal loan offers a larger loan amount than Quicken Rocket personal loan. Highly qualified borrowers can borrow a maximum loan amount of up to $100k from Sofi. The minimum loan amount that you can apply at Sofi is $5k. Your credit score is not the most important factors used to determine the loan approval. The most important thing is that you have enough cash flow which is the leftover amount after deducting the monthly expenses from your salary.

Sofi offers both variable and fixed rate personal loans. Most people choose to apply for fixed rate personal loans as it gives them a peace of mind that the interest will not change. Variable rate personal loans is popular with people who are applying for a short term loan. The interest rate for variable loan tends to be lower than fixed rate loan but it also has the tendency to increase during the loan term.

You can select the payment date from Sofi. They may waive the late fee if they notice that you have a straight record of making on time payment in the past. You may apply for forbearance if you can no longer afford to make monthly repayment for up to 12 months. Each time, the forbearance can last for 3 months. The interest will continue to accumulate on the loan when you take part in the forbearance program.

RocketLoans personal loans are designed for borrowers with good/excellent credit score. However, they would accept borrowers with credit score as low as 640. You must bring in an income of at least $24,000 per year to be qualified. The average income of the borrowers at RocketLoans is $78,000 annually.

With RocketLoans, you can borrow an amount from $2,000 – $35,000 and choose a loan duration from 36 – 60 months. RocketLoans is a new online loan company established in February 2016. It is notable for its speed in releasing cash and you can expect to get the money within 1 – 3 business days. Most of the borrowers receive the funds in the next business days.

Quicken’s RocketLoans can be used to pay for various types of expenses including home improvement, auto expenses, medical and small business personal loans. The entire application process of RocketLoans takes place online. You can verify your identity, and income electronically at the lender site. You will be required to login into your bank account to verify your bank account data.

Normally, the interest rate you get is the same as the estimate interest quote that you receive when you get preapproved for the loan. When getting preapproved for RocketLoans, your credit score will not be affected because it is a soft check. They will only conduct a hard check after you decide to proceed with the loan application.

Is It A Good Idea To Take Out A Short Term Loan To Buy Crypto Currency

The value of the cryptocurrency, especially Bitcoin has increased dramatically recently. The value of bitcoin is surging at a rate of 40% which is over $2,000 in a day recently. With the value of cryptocurrency rising, people start to talk about it on TV, radio, and news site.

We Do Not Recommend People Borrow Money To Purchase Bitcoin or Other Cryptocurrencies

As people start to talk about it, many others will also follow up to invest because they don’t want to miss out the opportunity to make big money. Some people have reportedly taken out short term loans with a high hope to make a big gain while investing in the cryptocurrency.

It is risky to take out a loan to invest in cryptocurrency as its value is volatile. The volatility is so much higher than other investment classes. At the moment, cryptocurrency has an average volatility of 85% per year. If the value suddenly drop, you will have lost your capital investment and left with a debt to pay. Besides, being an unregulated currency, it can be easily taken advantage by hackers and scam companies.

Despite that, if you know how to invest in cryptocurrency to your advantage, you will be able to make some fast money. Before taking out a loan, you must ask yourself how it is going to put problems in your finance if you lose the investment. You can invest more from your savings as you make money over time. If you really want to take out a loan to buy cryptocurrency, you should only take out a loan for as much as you can afford based on your income. It should not interfere with your income when you take out the loan.

Borrowing means that you will sacrifice part of the profit that you earn because you have to pay back the lender. For this reason, you should try to borrow only a small amount for the first time. When you make profit, you can reinvest it by purchasing more coins and make more money.

If you want to take out a loan to buy cryptocurrency, make sure you first do research on the market and find out the best coin to invest in. When doing research, you should check the ROI so that you know how much roughly you can get back by investing in the currency. There are a few types of good cryptocurrencies that you can invest apart from Bitcoin such as Dash and Ethereum.

To increase the chance of making a profit, you should invest in more than one cryptocurrencies. In this way, if one cryptocurrency didn’t make money, you can still count on other cryptocurrencies. As a rule of thumb, you should hold your investment for at least one year. This will ensure that you earn a significant amount of returns than the original amount that you invest in.

Installment Loans for Debt Consolidation, When is This Considered a Bad Idea?

If you want to get a loan to consolidate your debt, you should get a personal signature loan. You get a debt consolidation signature loan because you can’t pay for the high interest of your current debt. So, the personal loan that apply to consolidate your existing debts must have a lower interest fee. Not only must you make sure the interest fee is lower but you also must make sure you can afford to make the monthly payment.

You should try to find a debt consolidation personal loan that has the least fees. Ideally, the loan should waive fees such as the penalty and late fees. Most online loans will charge 3% – 5% of origination fee but there are a few that would waive the origination fee. When you sign up for the loan online, they will let you know whether you get approved by email. In the email, if you get approved, they will present you with a few options including interest rate and loan term.

Usually, a longer loan term has cheaper monthly payment but it will cost more in interest fees in the long term. Shorter loan term has more expensive monthly payment but you save a lot in the interest fees. You should choose the one that best fits your needs depending on your capability to pay back. Nowadays, it is easy to qualify for a debt consolidation signature loan online. Online lenders has a more simple loan approval process than bank and they usually release the funds in less than 2 weeks.

Using a personal loan to consolidate your debt is better than borrowing against your home equity, for example, taking out a HELOC loan. In a HELOC loan or a home equity mortgage loan, with some lenders you can borrow up to 85% of your home equity if you have a good credit profile. It is a form of secured loan as you use your house as a security for the loan.

You can lose your home to the bank when you fail to keep up with the payment. Therefore, it ca e risky especially for those who are in a difficult financial circumstances and late behind many bills. You also face the risk of owing more money to the bank if the value of your house drops in the market.

Debt consolidation only helps you to get out of the debt problem on the surface. It is up to you to make the decision to control yourself in spending money if you want to get out of the debt cycle. It is recommended that you stop spending money on your credit card while paying back the debt consolidation loan. Doing so can prevent you from wrecking further more debts while you are trying to settle your existing debts.

Short Term Loans – State regulations in 2018

Each year 12 million Americans turn to short-term financing options as a solution for their immediate fiscal woes. However, that number may start to dwindle now that that governmental regulations are getting stricter. Over the next few weeks, the

Consumer Financial Protection Bureau is expected to launch its first draft of federal regulations governing short-term debt solutions. Not to mention the fact that state regulations are at an all-tim time high.

Regardless of the fact that short-term finance options often to create an endless cycle of debt, many are concerned the regulations will have a devastating effect on short-term lending’s $46 billion payday market.
Prior to the creation of the CFPB, the pay day loan industry was controlled at the state level. The CFPB’s jurisdiction includes banks, credit unions, securities companies, short term lenders, mortgage servicing operations, foreclosure relief services, debt collectors, and other financial companies.
The short term loan industry is subject to state regulations and, In effect, the costs associated with these products vary. These variations mean that borrowers in various states assume various costs–and distinct financial consequences–related to payday loans. By way of instance, states set different caps on interest rates and the amounts which a consumer can borrow. They may limit the amount of times each borrower can roll over a loan. Some nations have made the change to installment loans which require that the loan be broken up into several smaller, more affordable payments. Other states, under pressure from consumer advocates, have placed major restrictions on or outlawed payday loans entirely.

These variations mean that borrowers in different states assume different prices–and different financial consequences–related to payday loans. By way of instance, states set different caps on interest rates and the amounts which a consumer can borrow. They may limit the amount of times each borrower can roll over a loan. Some nations have made the shift to installment loans that require that the loan be broken up into several smaller, more affordable payments. Other states, under pressure from consumer advocates, have placed major restrictions on or outlawed payday loans altogether.

The High price that low-to-moderate income borrowers pay to use payday loans may endanger their financial well-being.

Rollovers are important features of a payday advance. Theoretically, regulations should play a part in how lenders choose the features of the payday loans and, given differences in state regulations, these features should vary. This report shows how these regulations function in practice by examining payday loans’ maximum quantities, finance fees, and rollovers from a sample of 442 payday lenders with attention to variations between state regulations.

Key Findings
• Lenders use regulations to set their maximum loan amount as high as permissible, which indicates that regulations are effective at capping loan amounts.
• In states that regulate the maximum short-term loan amount, lenders consistently report loan amounts which match their states’ regulations.
• There’s wide variation within states that don’t regulate the maximum amount of payday loans.

Short term lenders in states that do not place limitations on Interest rates have a larger variance in the amounts of interest they charge.
• The average cost in interest on a $100 payday loan ranges from $1 to $45; however, the average price is $24 among nations without interest regulations and $17 one of states with regulations.
• Finance prices in the state of Idaho, for instance, range anywhere from $20 to $42 a $100 loan. In Ohio, due to loopholes in state regulations, lenders have the ability to charge anywhere from $1 to $35.
Regulations, suggesting lenders could be trained not to advertise rollovers to potential borrowers or that they might be moving away from this practice.

In 2013, the CFPB enabled consumers when it Began accepting consumer complaints about payday loans. A Few of the complaints included:
• Unexpected fees on interest
• Unauthorized or incorrect bank account charges
• Payments not being credited to the loan
• Issues calling the lender
• Obtaining a loan that they didn’t apply for
• Not receiving money after the loan was applied for

On March 26, 2015 a hearing has been held in Richmond, Virginia to deal with the proposed regulations. By 2013 to 2015 the CFPB analyzed the effects that private short-term lending and longer credit terms had on consumers. The analysis included the need of these loans and how they have impacted consumers.

So what will the regulations mean for American consumers? Richard Cordray, Director of the CFPB, stated that currently no effort is made to determine whether the consumer will have the ability to pay for the ensuing payments.
Under the new regulations, lenders will need To make sure that borrowers have the capacity to repay the loans. The new regulations will reduce the amount of unaffordable loans that lenders can make each year. Some of the law specifics include:

Lenders will be required to assess a client’s income, other financial obligations, and borrowing history to ensure that repayment is feasible. Lenders will be banned from rolling over loans over two times in a 12-month period, and this includes a 60-day cooling off period.

Lenders need to provide an affordable way for borrowers to escape debt or repay current loans before approving second and third successive loans.
Lenders will be required to limit the amount of loans per consumer.
For certain longer-term loans, lenders will have to put a ceiling on prices at 28 percent.

Secured lenders provide loans to people in Need of fast cash. However, the consumers that need these kinds of loans are willing to apply for loans based on their future earnings, like their paychecks. This specific group of borrowers tend to be vulnerable, rolling over their loans an average of two to three times before having the ability to pay the debt off. And the numbers are shocking: the payday loan industry accumulates $8.7 billion in yearly interest fees alone.

Borrowers are also paying ridiculously excessive interest rates. In some cases, borrowers pay up to 400 percent in interest. Borrowers are also applying for additional payday loans to cover present ones, so they sometimes bounce back and forth between different lenders. It appears to be a double-edged sword, 1 side being the fiscal necessity and the other side the need for oversight.

Oftentimes, borrowers do not understand the complete cost associated with their loans since they need funds quickly, they tend to skip the fine print and simply sign their name on the dotted line.

While the proposed regulations will not ban High interest or short-term loans altogether, it will surely change the Short-term and payday lender loan processes. Some predict that short-term loan Industry will collapse due to the stricter guidelines.

How Installment Loans from Banks are Regulated Compared to Peer to Peer Loans

It is getting even harder to obtain a loan from the bank nowadays. The bank has always used a conservative approach to decide whether to extend the loan to borrowers. Borrowers must meet a number of criteria and make sure every single document is submitted before the bank will give a loan decision. The bank will take 3 – 6 months to evaluate a loan request because they need to observe the borrower’s finance carefully.

Another reason is that the government is introducing more regulations on issuing of loans by the banks. The CFPB plays a key role in the regulation of the bank loans more recently. They introduced high fees to the bank which strip off their earnings of the banks and this forces them to limit the number of loans that they can issue. This is why many people are complaining that they can’t get a small loan nowadays even though they used to easily get approved for a bank loan in the past.

If you are having a problem getting a loan from the bank, you should consider applying a peer to peer loan on the internet. Peer to peer is different from a traditional bank in that the loan funded by individual investors. Banks often have minimum loan amount but P2P allows you to borrow just a small amount of money to fits your needs. In P2P, lenders will bid on your loan once you have posted the loan request up on the platform.

Since it is funded by individual investors, you can negotiate about the lending terms. Just like bank, the interest rates of a P2P loan can be either fixed or variable rate. P2p lenders tend to charge a lower interest and fees. They can also give you an estimate on the interest rate with a soft inquiry so that your credit score will not be impacted.

Bank loans may charge a fine called prepayment penalty if you try to pay it off early whereas most peer to peer loans do not charge any of such fees. With P2P loan, it is up to you to clear the loan whenever you have the money to do so. Individual lenders are more compassionate and they may post-bankruptcy ok at your post-bankruptcy you have a bad credit or in a post bankruptcy situation. If you are getting a business loan, the individual investor can take a look at other factors such as number of followers on your social media page. With P2P loan, the most important thing is that you must have a steady job and enough income to repay the loan. Peer to peer loan releases the funds faster than a bank and you can receive the funds in 1 – 2 weeks after approval.

Top 3 Finance Mistakes to Avoid for 2016 Holidays

The Christmas holiday season is the busiest shopping season in the entire year. Stores will be packed with crowds of shoppers during this time because of the discounts. The mark down discounts occurring nationwide in many stores is the reason why people often make finance mistakes in their holiday shopping. The following are the top 3 finance mistakes that you should take heed to prevent careless spending of your money in the holiday season.

1. Spending Money Without Proper Planning

Many people make the mistake of making impulse purchases when they see a lot of stores offering huge discounts. They spent their money without any budget planning. By the time they spent all they want, they don’t have enough money left to pay the bills. If you get a year end bonus, you must try to control yourself and not quickly use up the money. It is important to create a budget no matter how much money you have in hand to spend in the holiday season.

2. Applying for Loans for Holiday

Some people find they don’t have enough money of their own to spend in the holiday season so they decided to apply for loans that are easy to get approved. Normally, loans that release the money in the same day charges high interest fees and must be paid back within a short time. Examples of this type of loan are payday loans and peer 2 peer loans.

The majority of the people won’t pay back their payday loans on time so the balance has to be rolled over and the interest fees just keep on adding to the amount owed. Even if you know you will get the money to pay back, you should be careful in spending money in the holiday season. This is because there might be an unexpected expenses that arise which prevents you from paying your bill on time.

3. Failing to Make a Priority of Your Expenses

Another mistake that people often make is that they are too greedy and think they can afford all they want with their salaries. You must prioritize what expenses are important and be prepared to let go of some things on your shopping list that are not that important. Making a list of all the stuff you want to buy during the Christmas season will be able to help you to budget properly.

Since Christmas is approaching soon, some stores have already posted about the discounts promotions on different types of products. Doing research on the web allows you to find out which stores are offering a Christmas sale and what items are being discount. If possible, you should use the extra money that you receive in your salary to pay down your bills so that you can be debt free as soon as possible.