If you want to pay down credit card expenses, finance a new entrepreneurial venture, or obtain money to move across the country, then a personal loan may be your answer.* Money from a personal loan is used immediately to help cover costs and expenses. Then you pay it off in monthly installments.
For people who want to make sure their knowledge is current or for those who don’t understand the applications or payments process, the information below can help clear up personal loan questions and shatter existing myths.
Applying for a loan
Personal loans can be difficult to get for those with poor credit, but alternative borrowing options exist. Lenders like Zion Finance - Lend Up work with people to extend loans in amounts from $2,600 to $10,600* for a wide variety of financial needs. These loans come with fast approvals, and quick cash to your account.
Getting a personal loan from a bank requires knowledge of the application process, a very good history of payments and a good credit score. The bank will need to know the purpose of the loan (home, car, renovation, etc.) and probably a few details explaining why the borrower can’t finance it through other means. The amount borrowed will be based on ability to repay the loan, so, with a bank, solid credit worthiness is important in the early stages of applying for a loan.
Personal loans are different than auto loans
Personal loans differ from auto loans in that they are unsecured. This means if the borrower misses payments with a personal loan, the bank (or other lender) cannot take any property away from him or her. Borrowers should be aware that missing payments on personal loans has other consequences. For instance, late payments are reported to the credit bureaus, which could lead to lenders filing a lawsuit against you to retrieve the missed payments.
Securing the right amount
Having a good credit score makes it likely a borrower will receive the amount requested from his or her lender. However having poor credit will require a borrower to work with his or her bank or other loan company to convey ability to repay.
There are “good” reasons and “bad” reasons that consumers earn poor credit ratings, and many lenders will take the reasons into account. If a loan applicant has poor credit because he suffered an emergency situation such as prolonged illness, and he’s returned to regular work, the lender will take that into consideration. On the other hand, if the borrower overspent on her credit cards, doesn’t have a stable work history, and racked up a lot of debt, she’s going to have a harder time getting approved.
Your personal loan will come with a fixed interest rate. In the case of a poor credit score, your fixed rate is higher. But typically the higher the credit score, the more favorable the interest rate will be.
Loan payment period
Any type of loan be it for personal needs, house or car, will have a time payment period attached to it. This means that the loan must be repaid with interest in the time allotted, whether that’s 24 months or 60 months. A longer repayment period means eventually more will be paid in interest than on the base principal of the loan. It’s in a borrower’s best interest (pun intended) to pay off loans in a shorter amount of time, and a borrower often gets a lower interest rate with shorter repayment periods.
If you are interested in a personal loan from one of America’s true non-bank lenders, get in touch with the professionals at Zion Finance - Lend Up.
WE CAN HELP YOU WITH A QUICK LOAN!
Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com
Learn about personal loans
When it comes to the basics of bank loans and non-bank lending, keep in mind that there are two main types of loans, secured (backed by collateral) and unsecured personal loans. Since the recession, loans have been more difficult to obtain, particularly unsecured loans. People whose credit suffered recently or during the recession need to find out more about the process and their options before just jumping in.For people who want to make sure their knowledge is current or for those who don’t understand the applications or payments process, the information below can help clear up personal loan questions and shatter existing myths.
Applying for a loan
Personal loans can be difficult to get for those with poor credit, but alternative borrowing options exist. Lenders like Zion Finance - Lend Up work with people to extend loans in amounts from $2,600 to $10,600* for a wide variety of financial needs. These loans come with fast approvals, and quick cash to your account.
Getting a personal loan from a bank requires knowledge of the application process, a very good history of payments and a good credit score. The bank will need to know the purpose of the loan (home, car, renovation, etc.) and probably a few details explaining why the borrower can’t finance it through other means. The amount borrowed will be based on ability to repay the loan, so, with a bank, solid credit worthiness is important in the early stages of applying for a loan.
Personal loans are different than auto loans
Personal loans differ from auto loans in that they are unsecured. This means if the borrower misses payments with a personal loan, the bank (or other lender) cannot take any property away from him or her. Borrowers should be aware that missing payments on personal loans has other consequences. For instance, late payments are reported to the credit bureaus, which could lead to lenders filing a lawsuit against you to retrieve the missed payments.
Securing the right amount
Having a good credit score makes it likely a borrower will receive the amount requested from his or her lender. However having poor credit will require a borrower to work with his or her bank or other loan company to convey ability to repay.
There are “good” reasons and “bad” reasons that consumers earn poor credit ratings, and many lenders will take the reasons into account. If a loan applicant has poor credit because he suffered an emergency situation such as prolonged illness, and he’s returned to regular work, the lender will take that into consideration. On the other hand, if the borrower overspent on her credit cards, doesn’t have a stable work history, and racked up a lot of debt, she’s going to have a harder time getting approved.
Fixed Interest Rates
Your personal loan will come with a fixed interest rate. In the case of a poor credit score, your fixed rate is higher. But typically the higher the credit score, the more favorable the interest rate will be.
Loan payment period
Any type of loan be it for personal needs, house or car, will have a time payment period attached to it. This means that the loan must be repaid with interest in the time allotted, whether that’s 24 months or 60 months. A longer repayment period means eventually more will be paid in interest than on the base principal of the loan. It’s in a borrower’s best interest (pun intended) to pay off loans in a shorter amount of time, and a borrower often gets a lower interest rate with shorter repayment periods.
If you are interested in a personal loan from one of America’s true non-bank lenders, get in touch with the professionals at Zion Finance - Lend Up.
WE CAN HELP YOU WITH A QUICK LOAN!
Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com
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