More Protection for the Military

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If you are one of the brave men and women serving our country in uniform, you face enough dangers. You do not need anyone attempting to take financial advantage of you by capitalizing on the unique challenges of military life.

Unfortunately, you can find many payday loan lenders and other purveyors of short-term, high-interest loans near any military base. Bases are full of young service members with a regular and reliable paycheck — fertile ground for lending groups. According to The Wall Street Journal, payday loan organizations target families with service members at twice the rate at which they target civilian families.

The Military Lending Act of 2006 was designed to prevent lenders from taking advantage of military families by capping the effective interest rate at 36%. However, only three credit products were covered: closed-end

6 Situations Where A Personal Loan May Be Better Than A Credit Card

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When you have a relatively large expense that you can’t cover with cash on hand, you generally have two choices to consider: revolving debt such as a credit card, or installment debt such as a personal loan. Which option works best for you?

Consider the difference between the two types of debt. Revolving debt has no finite payment — you can pay as much or as little as you want, but realize that you are paying interest for the privilege of carrying that debt. Installment debt allows you to set up a regular repayment plan over time, and the terms of repayment (the interest rate and length of repayment period) will dictate how much you repay per installment and over the total course of the loan. You can budget your interest costs with certainty, assuming that you make regular payments.

Typically, credit cards come with higher interest rates than personal loans. Introductory offer…

Lenders Pulling Back on New Subprime Loans

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It’s tough living on the lower end of the credit score scale. If you have a credit score below 640 or so, you are generally given “subprime” lending offers for any form of credit that you request. From credit cards to auto loans and mortgages, you will be hit with higher interest rates and potentially other restrictions and fees.

According to credit bureau TransUnion’s Q2 2017 Industry Insights Report, you now have another problem to deal with – difficulty in getting credit at all.

TransUnion found that overall originations for subprime consumer credit have dropped sharply over the past four quarters. Total subprime originations dropped from a post-crisis peak of just under 6 million consumers in Q2 2016 to just under 4.6 million in Q1 2017. The last two quarters represent the first consecutive year-over-year decreases in overall subprime ori…

Personal Loans For People With Fair Credit

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If your credit score is in the low- to mid-600s, you have what is usually considered to be fair credit — not in the range where you have trouble getting personal loans at all, but in the range where finding a good interest rate and reasonable terms can be challenging. Whether you are experiencing a temporary fall in otherwise good credit or you have built your credit up from poor to fair status, it takes effort to find a loan that meets your needs.

Banks and credit unions are less likely to offer you a loan with fair credit unless you take the path of a secured loan that is backed by some form of collateral, such as your car, the contents of your bank account, or the equity in your home. With a secured loan, you are likely to receive a much better interest rate than you could receive otherwise, but there are two drawbacks: you put your collateral at risk, and your loan amount is limited by the amount of collateral that you supply.

Depending on your reason for the…

Personal Loans For People With Poor Credit

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You may need a personal loan for a number of reasons — perhaps to deal with unexpected medical expenses, to consolidate high-interest credit card debt, or even to take that well-deserved vacation. Unfortunately, if you have borderline or bad credit, personal loans may be difficult to get at your local bank or credit union. You can resort to payday lenders that loan money for short periods of time at very high interest rates, or you can investigate the growing number of online lenders that focus on loans for people with bad credit.

Bad credit personal loans represent an underserved market, mainly because most banks and credit unions have plenty of available business without dipping into that particular higher-risk pool. Many personal loans through traditional banks are unsecured, meaning that the bank accepts that you are a low risk to default on the loan and is willing to loan you money without collateral. Unless you are willing to accept a secured loan backed by some form…

Don’t Borrow Against Your Retirement Plan!

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You are already dealing with increasing debt. Suddenly, you find yourself with an unplanned expense that you cannot afford. You look longingly at your 401(k) balance. If only you could access some of that money to meet your current needs….

In many cases, you can access that money without penalties by borrowing from your 401(k) — but most experts agree that borrowing against your retirement plan is a bad idea, for a variety of reasons.

Borrowers may not understand the long-term harm that they are doing to their retirement account, or they may understand it but still rationalize a retirement-backed loan as their best option. Greg McBride, Chief Financial Analyst at Bankrate.com, uses the example of borrowers thinking that they are harmlessly paying money back to themselves but forgetting about compounding and the time value of money.

Such borrowers do not realize, says McBr…

Loan Fees 101

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Many sources are available to define and outline the fees that are associated with mortgage loans, but what about personal loans? Generally, personal loans are unsecured loans that are not tied to any form of collateral that can be taken over by the lender in case of default, such as a house with a mortgage loan or a car with a dealer-financed auto loan.

Potential loan fees in these cases are similar to mortgage and auto loans, except that fees relating directly to the collateral do not apply (think dealer delivery charges for an automobile or appraisal fees for a mortgage). Here are the personal loan fees that you are most likely to encounter.

  • Origination Fee – Just as in a mortgage loan, an origination fee is essentially a fee that covers the lender’s costs of processing the loan. Origination fees are usually a percentage of the amount of money …

Subprime Loans – Should You Take the Risk?

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Subprime Loans are Back

Since the housing crisis began over a decade ago, subprime mortgage loans basically disappeared – thanks to regulatory actions from government and self-preservation for both lenders and borrowers. The effects of borrowing more than you could safely afford to repay became obvious to all parties.

Subprime mortgage loans have been making a slow comeback over the last decade, driven by years of pent-up consumer demand and lending institutions competing for more business.

If you have borderline or poor credit (credit scores in the 580-669 range or below), lenders are devising new ways to offer you a mortgage loan. Are you ready to take advantage of these offers – and, even if you are, is a subprime loan the best choice for you?

Increased Risk But Greater Scrutiny

Data from the Mortgage Bankers Association (MBA) shows that during the first quarter of 2007, approximately 13% of all residential mortgage loans we…

Video: Which Type Of Mortgage Lender Should You Use?

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What is the difference between a mortgage broker and a loan officer? Which should you use for your mortgage? Casey Fleming, Mortgage Advisor at C2 Financial, explains in which situation to consult each of these lender types in our exclusive video above.

MoneyTips is happy to help you get free mortgage and refinance quotes from top lenders.