Monthly Archives: February 2016
Debt consolidation loans are granted by banks and other financial institutions to integrate all debts a person is having. Generally, people go for debt consolidation as they are not able to manage different repayments of their debts. Similarly, there is debt consolidation loan online, which is available from lending institutions operating on internet. Like getting normal debt consolidation, many people go to apply for debt consolidation loan online and get transferred their existing debts to a single integrated loan.
There are advantages and disadvantages of consolidation online in comparison with other loans borrowed from financial institutions. There are less hassles in getting approved these loans as you are not required to visit the bank again and again. Many people get the benefit of these for improving their business when they are unable to deal with so many lenders and for improving their financial condition.
Like borrowing from normal institutions, you need to have a good credit history for online loans as well. In addition, you may be required to use collateral as a security. It is believed that getting debt consolidation loan online is less hard than getting it in a conventional way. People feel that they can satisfy the lenders about their needs for consolidation. A lot of people want to try their luck with these online loans in spite of their bad credit records as they have the pressing need for getting loans integrated. So what is the harm in trying, if you can mend your outstanding debts?
You can get a debt consolidation loan online in a short time of few hours, whereas you have to wait for the lengthy process for getting the loans from banks and other local institutions. Those needing money urgently do not like to wait.
There are several lenders who provide debt consolidation loan online. First, it is necessary to compare the various offers and the applicable terms and conditions of these lending institutions. Most of the times the borrowers have to agree to their are all the requirements. Most of this institution manipulate and try to exploit the customers. Secondly, you will find the deceitful debt consolidation loan online advisers who make the borrowers pledge their valuable assets as collateral. They will also manipulate in such a manner that the customer is not able to repay the online loan and fails to satisfy the stipulated conditions. Consequently, his property gets attached because of failure to pay back the money and he loses it. The plight of the borrower becomes more miserable than before going for a debt consolidation loan online.
This is the biggest hazard with consolidation online. If you really do not have an alternative, it is necessary to take caution before getting into any such deal. Verify through your reliable sources about the institution, which you want to deal with. The lender should be reliable and reputed. You can go through the reviews of the customers. Unless you feel fully confident that the lender is genuine and you have no risk in making a deal with him, never commit any collateral to any loaner when you go for a consolidation loan online. In addition, you should compare the offers from traditional institutions and banks before deciding to go online.
No matter the process of getting consolidation online may be simpler, convenient and handy to save time, but in view of the risk involved with it, the loans obtained from local institutions are safer. If you go for a consolidation loan online, be careful and keep the above facts in mind.
To bad credit borrowers, ensuring that their poor financial decisions of the past are ignored is the key factor to securing a loan. The problem is that traditional lenders do not tend to forget. Thankfully, online lenders are far more accommodating, looking past credit scores and helping to make a deal affordable. The result is that getting unsecured personal loans online becomes much easier.
Of course, approval is not a simple matter of filling in an application form. There are criteria to meet and boxes to see ticked first. To stand a chance of getting fast loan approval with bad credit aspects like the loan size and the income of the applicant are important ascertain.
Applying for an unsecured personal loan can be a stressful thing because of the uncertainty involved, but the online option has proven to be far less stressful. That is just one way in which the loan option is superior to more orthodox options.
Why They Work
It might seem strange that it is even possible to get unsecured personal loans online. After all, it is not like in banks where it is possible to sit down and talk to a loan officer. Online, there is practically no interaction. But this actually works in your favor.
Online lenders are less interested in the personality, intentions or past of a loan applicant. They look at the cold facts, so once the criteria are met and the loan deal is proven to be affordable, it is possible to get fast loan approval – with bad credit or not.
Of course, the lender is still taking on a large risk, which is why the interest rate charged is typically higher than normal. But, as with any unsecured personal loan, proof that repayments are possible and affordable is the key.
Alternative Loan Options
There is a variety of types of unsecured personal loans online, not just those from the online branch of a well-known bank. Many of them are more likely to be approved, though. A payday loan, for example, is granted against the certainty of an upcoming paycheck.
However, the terms are not ideal. The repayment schedule can sometimes be as short as 14 days, while the loan sum is limited to a maximum $1,500. Also, the interest rates can be as high as 35%. On the plus side, however, fast loan approval with bad credit is almost guaranteed.
Another alternative option is a bidding loan, where members of a website bid for the chance to finance a loan proposal. This time, the borrower states the terms and the lenders are chosen. This usually means much lower interest rates, and a more flexible repayment schedule, but the size of the unsecured personal loan is usually low.
Finding the Best Terms
Locating a trustworthy lender willing to issue unsecured personal loans online can take some time. But taking time is usually a sound strategy anyway as it is important to know your prospective lender well.
The most effective strategy is to decide on a shortlist of the best loan offers gathered from the Internet. Then, to check out the reputations of the particular lenders on either the Better Business Bureau website or the Verify1st site.
The lure of specific loan aspects, like securing fast loan approval with bad credit, should be ignored until later. Knowing the lender can be trusted is the first step.
Then read the small print and examine the terms in detail. That way, potholes can be avoided and getting the unsecured personal loan will not prove to be a disaster.
Ever since the advent of internet technology, products and services have become more easily accessible. Before, you would need to go out, drive (or commute) to a store, and wait in a long line to get what you want. Today, you can buy products and services at the comfort of your own living room in front of your computer just as long as you have an internet connection.
Not only that, you can also get your hands on vital information regarding the products and services you are planning to buy. It is not any different with financing matters such as debt consolidation. Debt consolidation, which refers to the process of combining multiple loans into a single one with a lower monthly payment, lower interest rate, and longer repayment period, is a route that many people deep with debts take.
Online debt/credit consolidation may be a new concept for some, but it is basically the same except that you can get this one online. If you are like most people, you would also probably like to get to know the top reasons to go for this route, so here they are.
Reason # 1 – Online debt consolidation saves time
Modern people live hectic lifestyles. Any way they can find to save time would be very much welcome. If you are going to opt for an online debt/credit consolidation, you would be saving a lot of your time because you can find all the necessary information that would guide you through the whole process. In fact, credit consolidation help is free from some companies. The whole process of consolidating your debts could be accomplished through online transactions. You can easily research for companies that have good reputation, and do background checks on them so you can make the right choice.
Reason # 2 – Online debt consolidation is convenient
The process of consolidation can be long and tedious. But it would be a lot more convenient if you do it online. Aside from being able to save time, you would also be able to save energy. As you know, business hours usually run from 9 to 5 everyday excluding Sundays. This leaves you little time to get things done quickly. Going for the online route would not subject you to such limitations. In addition to that, most online debt/credit consolidation websites offer different kinds of tools such as loan calculators and comparison charts that are very simple to use. These tools would help ensure that you would be able to end up with the best deal.
Reason # 3 – Online debt consolidation process is simpler
If you browse online, you would be happy to find out that many online debt/credit consolidation lenders have simplified the quotation and application processes. Don’t make the mistake of thinking that you have to be an internet-expert to be able to accomplish online consolidation. The truth is, most of the time, this entails less complicated processes than going through the traditional route.
Reason # 4 – Different debt consolidation loans are available
Online, you will find various kind s of debt/credit consolidation loans, which include but are not limited to bad credit debt consolidation loan, student debt consolidation loan, and unsecured debt consolidation loan. Yes, debt consolidation loans for people with bad credit are also widely available online contrary to people’s misconception that this option is only for people with good credit rating.
Just like with most products and services, online consolidation is the faster, simpler, and more convenient way of going about this process. However, it is clever to remember that the online market is plagued with pitfalls that you have to study and research about so you can have a safe and smooth consolidation of debt application.
WHAT CAN I EXPECT FROM THE TYPICAL ONLINE PAYDAY LOAN PROCESS?
The world of online payday loans can be an intimidating and controversial one for consumers. With all of the negative hype and confusing misconceptions circulating, consumers often don’t know whether an online payday loan is the right financial alternative for them and their situation.
The truth is that an online payday loan might just be the answer you’re looking for! At the very least, the option of a payday loan is always something worth looking into, especially if you find yourself in need of immediate financial relief.
This article is intended to clear up some of the confusion and illustrate the typical payday loan process. Obviously, different companies will have different ways of conducting business.
In no way does this article represent the full and exact process for each and every payday loan company that you find online. It is only intended as a general guide for the process and what you can expect from a typical, respectable payday loan company.
Always fully research any company you plan to do business with prior to completing any transactions.
WHERE DO I GO?
First you will need to access the payday loan website. Typically, there are two kinds of payday loan sites on the internet.
1. A Payday Loan Lead Site.
o Normally a customer will search for a payday loan site and come across a “Lead Site” thinking it is a payday loan company. “Lead sites” are hosted by companies whose main goal is to gather information from several potential customers, and then sell that information to companies that will further review it and potentially lend you the funds you are requesting. Lead sites are normally identified because they do not have a member log-in section on their homepage. Also look for a disclaimer somewhere on the website which states that their main purpose is to generate name leads for financial loan companies.
2. A Genuine Payday Loan Company Website
o You can usually recognize genuine online payday loan sites by searching for a member’s log-in area. These sites are direct lenders for customers who apply for a loan via the company’s website. These companies are responsible for processing the applications in-house and depositing the funds into customer accounts once the loan is approved.
Customers should always research any company they are planning to do business with. After identifying the company you would like to use you will likely need to fill out a loan application. Online payday loan companies will have their own general pre-designated requirements in place that must be met in order to qualify for a loan. Examples of this may include the following:
o Active Direct Deposit
o An established checking and/or savings account that allows unlimited ACH deposits and withdrawals (Established for three months or more as a general rule)
o A minimum monthly take-home pay amount (Generally around $1000)
o An established employment history of 3 months or more
o US citizenship
o Applicant age of 18 years or older
Online payday loan companies tend to be very specific and forthright about all of the requirements in the loan application. Be sure to fully read and understand all of the terms prior to signing the agreement.
After you have fully and truthfully answered all of the questions on the application a determination will be made regarding the approval or denial for the loan. Different companies rely on different systems when researching applicants. Reasons for denial may include the following:
o Active “write-offs” or a bad payment history with other payday loan companies
o Non matching information on the application (i.e. – Social security number does not match name given on application)
o Lying on an application
o Applicants, spouses of applicants, or dependants of applicants who are on current active duty with any branch of the military (Federal law prohibits these individuals from doing business with payday loan organizations)
o Excessive loan inquiries with multiple payday loan organizations
o Recent poor checking or savings account history
o Excessive amount of current payday loans still outstanding
o False reference or employment contact information
Once the loan is approved, the funds will be scheduled to transfer into the customer’s account. The customer will be notified of the date in which the loan will need to be paid in full. In the event that the customer is unable to pay off the payday loan debt on the agreed upon date, “extensions” can be requested. These extensions usually have a fee associated with them. The fee and a full explanation of the extension process should be explained in the original loan agreement. The purpose of an extension is to extend the amount of time before the full loan payment is due again. Customers are generally allotted a specific number of extensions that can be used during the life of a loan. Once this number is reached no further extensions can be requested and the full loan payment amount will be due.
Another fee which may occur, and should also be explained in the original loan agreement, is what is normally referred to as an “NSF Fee”. This fee is charged when attempts to retrieve scheduled payments are made and the customer’s bank rejects the attempted withdrawal due to Non-Sufficient Funds. Typical NSF Fees are around $20.
Note: Customers living in specific states may or may not be able to utilize the extension process, depending on state laws that govern acceptable payday loan processes. Other related state laws may exist and dictate different aspects of the payday loan service. Customers should always research their specific state payday loan laws and regulations before entering into an agreement online.