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| PERSONAL LOAN |
A personal loan is a loan from a lender that is not secured by any property. Rates tend to be similar to those of credit cards, which are another type of unsecured loan. Ordinarily, people will receive a lump sum. In return, they agree to make regular repayments, usually monthly. Assuming they've taken out a repayment loan, which will usually be the case, some of the money they repay will go towards servicing the loan, and the rest of their payment will be used to pay off capital and reduce the outstanding debt. In deciding which loans are right for your specific needs, the key is to find the best rates for your loan. This page is dedicated in helping you make an informed decision. |
| 6 Strategies In Applying For A Personal Loan |
1. Understand Your Credit Rating.
Understanding how your credit rating will help a person qualify for a personal loan. Depending on the credit score, there are specific personal loans that might be applicable to your situation. For example, certain lenders specialize in extending sub-prime financing. (Sub-prime loans carry a higher interest rate). |
2. Systematize Financial Documents.
For the loan shopper in need of a personal loan or debt consolidation loan, certain personal financial documents may be needed for approval. Generally, lending institutions request the following records.
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W-2 statements from the past two years |
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Federal tax returns from the previous two years |
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Current and recent paycheck stubs |
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Investment and mutual fund documents |
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Child support or alimony documentation |
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Records that demonstrate other financial sources (2nd job, commissions, interest dividend income, bonuses) |
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Home and vehicle titles |
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Any other assets |
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3. Be Aware Your Assets.
Before you begin shopping for a loan, knowing where you stand is the first step to take. Basically the first question of a loan consideration involves, how much loan you can really afford. Add up your collateral. For example, if you have a home, car, and insured jewelry, these items are assesses to approve or calculate a loan.
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Determine how much you need to borrow |
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Analyze how much loan payment you can afford |
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Review the current interest rates you are paying |
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Remember to budget your consolidation loan with a breathing space or leeway. It will prevent you from falling prey to over-extending personal finances – again. |
Another important step to include in your debt calculation is to tally all current bill obligations: housing costs, credit card debt, child support, car notes, alimony or student loans. Lenders believe that 36 percent of a person’s debt should account for 36 percent of a borrower’s pre-tax income.
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4. Thoroughly Analyze Different Personal Loan Products
As personal loans come in diverse variety, thoroughly researching different products can help you find a loan customized to your specific financial situation. Here are various classification of personal loans:
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Debt consolidation loans allow the borrower to refinance or reorganize debt. |
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Mortgage – a loan to purchase property. |
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Mortgage refinancing – a loan where the homeowner borrows money against the equity of their property to pay off bills, apply for a lower interest mortgage (Mortgage refis- are tax deductible). |
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Personal loans – are all options you have to borrow money, and make one monthly payment until you are out of debt. |
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Secured personal loans – are ideal for the consumer with collateral (in example: home, real estate property and certain specialty recreational vehicles can be used as collateral). |
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Unsecured Consolidation Loans – are a personal financial solution for the consumer who does not have assets or own real property. |
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Equity loans – are lines of credit that can be taken out on a home with out affecting the state of the mortgage. (Depending on the terms of the financial institution, equity loans-are usually tax deductible). |
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5. Searching For a Personal Loan.
Finding the perfect lender will require a bit of shopping around. Getting quotes of financial products for your financial needs will enable you to make the right decision. Don't forget to ask questions regarding any surcharges, penalties and documentation charges. |
6. Choosing a Lender
Although the process of selecting a lender may be a bit challenging, considering and reviewing the terms and risk factors involved with each personal loan opportunity will help you make the decision. Just because a personal loan comes with a low interest loan – doesn’t mean that it’s the best loan. |
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Basics of a personal loan |
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Looking for a little extra cash? Some consumers who find they need a small amount to fix the car, buy a new washing machine or make a down payment on Junior's braces are passing up home equity loans or credit card charges in favor of small, closed-end, unsecured loans. |
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Choosing Where to Go for Your Personal Loan |
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Once you decide that a personal loan is for you, then you can begin to decide where to go. In the past your options were limited to just your neighborhood bank, but today you have more choices, although not all of them are good ones. Let's look at some of the possibilities so you can decide which is most appropriate for your situation. |
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Entrepreneurial Personal Finance: After the Sale of Your Company |
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As an entrepreneur, you may eventually be fortunate enough to have built up your company to the point at which you are able to sell it for a considerable profit. At that time, you will likely be faced with the daunting task of what to do with perhaps the most significant single influx of funds in your working lifetime. |
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What is a personal loan? |
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A personal loan is a lump sum advance from a loan provider to you.. You can choose over what period of time to repay the loan, in monthly installments.
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Why is this type of loan known as a "personal loan"? |
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The simplest explanation of the use of the word "personal" to describe this type of loan is that the money that is borrowed is to be used for personal reasons. A personal loan could be taken out to finance the purchase of a car. Personal loans are usually for amounts between £5000 and £25000, which make them the perfect size for buying a car with. Many car dealers will actually offer what is called 'car finance', but in effect this is no different from a loan. It really does pay to shop around for car loans, as the dealers in practice do not tend to offer the best deals, but do offer the convenience of instant provision of finance. You would normally be expected to provide a deposit - which is a percentage of the loan.
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What is an unsecured personal loan? |
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An unsecured personal loan is a debt that you can acquire where you do not have to use any specific collateral to back the loan. Usually, the people who would be eligible for this type of loan would be people who do not own a home, or people with bad credit. |
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What is a secured loan? |
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A secured personal loan is a loan that is specifically assigned for homeowners. This is where the home is used as collateral, which is a larger risk for a customer than an unsecured loan, because if you fall into difficulties or are unable to repay the loan for any particular reason your home is at risk. One of the most vital points to understand about a secured loan is that it is not best used as a solution to debt problems, because it is even more important that you have budgeted properly to cover the loan payments. Many people with debt problems have them precisely because they are not good at budgeting to cover loan payments. |
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How am I judged when applying for a personal loan? |
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Judgment criteria vary from one loan provider to another. However, your income and your credit history are the two main criteria. Many loan providers rely on data from credit reference agencies.
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Packet8 is an affordable and easy-to-use broadband telephone and videophone service. Designed with both residential and business customers in mind, Packet8 allows anyone with broadband (high-speed) Internet access to use their regular phone to make UNLIMITED calls to anywhere in the U.S. and Canada for as little as $19.95 per month. Packet8 subscribers with videophones can make video calls for as little as $19.95 per month. All Packet8 subscribers get world wide UNLIMITED calling to other Packet8 subscribers at no extra charge. Calls to non-Packet8 international numbers (outside the U.S. and Canada) are charged at a very low per minute rate. |
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Vonage’s wealth of features, extensive coverage, and strong support combine to make it a good Internet phone selection. Its monthly rate plans, $14.99 or $24.99 for residential customers and $39.99 or $49.99 for businesses, are a bit higher than those of competitors, such as Packet8, but Vonage's phone features are more numerous, and the company offers useful services, such as transferring your existing phone number to your Vonage account. With its easy setup, nontechies ditching their traditional phone can quickly get up and running, and Vonage's easily activated and inexpensive fax capabilities will appeal to businesses. |
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OPEX Internet Voice provides access to the most exciting and robust communications platform since the telephone was invented. Combine your current high-speed DSL or Cable broadband Internet access with OPEX's unlimited local and long distance service for unprecedented cost savings! There is a slightly higher start-up cost for this VoIP, but there are no agreements or early termination fees. Service is strictly month-to-month. |
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New to this increasingly crowded space is Lingo, which comes close to knocking off the competition. Lingo offers the lowest monthly unlimited-minutes plan of all the VoIP packages we've seen at $19.95, which includes not only the United States and Canada, but also numerous countries in Western Europe. Likewise, its plans come equipped with a lengthy list of features: all plans include 911 emergency calling, and business plans include fax capabilities. Unfortunately, Lingo's call quality was inconsistent, with more interference than we've experienced with other VoIP services. |
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If you've been harboring any doubt about the viability of VoIP services, you can put them to rest. AT&T, once the center of the telephone universe in the United States, rolled out its own VoIP service, CallVantage, last year, and it has since added to and improved the service. The company launched CallVantage with a lone calling plan but now offers three plans that range in price from $19.99 to $49.99 per month. At $29.99 per month, its unlimited-minutes plan is pricier than those of competitors such as Lingo and Packet8. You also have a host of features at your disposal, including virtual numbers, conference calling, call filtering, and call forwarding. In addition to a standard telephone adapter that requires a connection to a broadband router, you can choose to combine those two devices with a VoIP-enabled Linksys wireless router. |
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