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emergency loanAn emergency loan is an unsecured loan that you can borrow whenever you're in a pinch. It means that it’s quick and easily approved you can get the money as fast as the next day. The borrowing limit depends on the amount you need for such an emergency, but they typically range between $250 and $1,000. 

There are many lenders on the internet if you think it would be a struggle to find one. 

Emergency loans are unsecured, which means you don't need to offer collateral to get approved. However, some lenders offer secured loans as emergency loans. The collateral is just the usual, like home equity or some asset. There are also other loans that you can use as emergency loans, like payday loans and credit card cash advances, which we will discuss later.

The most popular option for an emergency loan is personal loans. They are quick, easy, and are negotiable. But remember that these factors depend on the lender. The interest rate, borrowing limit, and repayment terms will change depending on your creditworthiness.

For which purpose can emergency loans be used?

One of the most popular uses of emergency loans is payment of medical bills. If you're struggling with an unexpected medical expense, taking out an emergency loan is the way to go. Other purposes include rent and mortgage payments. We've all been there; your salary will be late, and you're not expecting it for a few days, but the monthly rent or mortgage is slowly dawning. The way to mitigate this disaster is to take out an emergency loan. 

Another common use of emergency loans is payment of utilities. Nobody wants to get their electricity and water cut off. But sometimes, we accidentally go over our budget, sacrificing our payment of utility bills for some reason. 

If you're currently having that problem, call the lender, and tell them that you want to take out an emergency loan. There are plenty more uses of an emergency loan and the list goes on and on. 

Here are some loan options for you if you're in an emergency.

Personal Loans

A personal loan is a type of loan that has many uses. For instance, you can use it for a car loan, pay for mortgages, or even for emergency purposes. Many financial institutions, like banks, online lenders, and even credit unions, offer personal loans. It works like a typical loan— you have to pay it back monthly with interest. 

Some personal loans have fees and other charges, depending on the lender you choose. Personal loans are different from student loans, car loans, or mortgages as they are taken for specific purposes. However, they can be used for any purpose as they are very flexible. With a personal loan, there's typically a fixed date for the loan repayment. 

Title Loans

A title loan is a type of loan that requires collateral. Title loans are popular for two reasons. First, the lender doesn't check the borrower's creditworthiness so tightly. Second, since the approval is loose, a title loan can be quickly approved.

So how does it work? The most common form of a title loan is a car title loan. Before you get a title loan, you have to have a car. The lender will take the car as collateral, appraise it, and lend up to 25% of the car's total value. A car title loan can go up to $1,000, but you could get more depending on your car's total value.

The usual duration of the loan is 15 to 30 days, although that depends on the lender. In terms of repayment, you can agree with your lender to repay the loan in a lump sum after a few weeks, or you can pay it with a multi-year installment.

Payday Loans

Payday loans are instant cash loans, where a lender offers you a high-interest loan with the principal, a certain percentage of your next salary. This type of loan usually has a high interest rate because of the urgency.

Payday loans don't require collateral, making them unsecured loans. These loans can be taken online or in physical stores. Also, they are fast and easy to get, which makes them a better alternative for emergency loans.

Final Thoughts

Emergencies can happen anytime, anywhere, and it becomes a real struggle to pay expenses in the most unexpected times. However, you don't need to struggle with these expenses anymore with the alternative options above. They are all quick and easy and are very convenient when you're in a pinch.

Author Bio: Darcy Andrew is a journalist that specializes in articles about finance, fashion, and engineering. She also tackles topics about politics and socioeconomics. In her free time, she browses the internet to look for new topics about financing, for example, cash loans that are instant and where to find them or tips on how to improve your credit score.

car bying tipsPurchasing a vehicle may not be as much of an investment as it is a cost.  An pricey cost at that.  Shopping around can save some pennies.  But, ever wonder if buying a used vehicle would be a better way to spend your hard earned money as compared to a new vehicle?  There are pros and cons to both.  So, you’ll have to bring out the calculator and put some mind to it before making that big a purchase.

Here are some of the advantages of buying a new vehicle.  The first one that comes to mind is that it will have the newest technology and creature comforts.  For instance push start is found on many new vehicles now a days, but, no so on used vehicles.  There are now vehicles that can park themselves.  With older used vehicles you’ll have to rely on what you learned about parallel parking to get the job done.  New vehicles also have the most up to date safety features.  Other pluses to a new vehicle is that it can be customized to your liking and may come with warranties.  It is also less likely to have blemishes that older vehicles may have due to time on the road. There is also the issue of financing.  New vehicles tend to get the better interest rates as compared to used vehicle.  

But before you start checking the credit score to figure out the best interest rate that you may qualify on a car loan, consider some of the benefits of buying a used vehicle with not too heavy a mileage on it.  For one depreciation.  A new vehicle may depreciate up to 10% the moment it’s driven off the lot according to auto.com (https://www.auto.com/advice/car-depreciation-how-much-does-a-new-car-depreciate).  Not so with a used vehicle.  There is also the cost as a used vehicle should cost less that the same vehicle new.  Car insurance is another point to keep in mind.  Insurance tends to be cheaper on used vehicles, but, not always.  Do some homework on the vehicle you want by contacting your insurer.  It also helps that with used vehicles there is a track record that can be considered.  One can more easily find how a 2018 Ford Explorer has performed with owners than a brand new vehicle which may have what are yet unreported issues.

Buying new or old will take some thinking.  But do use that worldwide web to do some homework to help you pick that perfect vehicle.    

question on loan guarantorHave you been asked to act as a guarantor for someone’s loan? Are you wondering what a loan guarantor does?

Of course, we will answer your questions regarding this subject in this blog post. But, first, let me tell you that being a loan guarantor takes some balls. It’s a must to weigh the consequences of taking this role, especially if you don’t fulfill your obligations of being a guarantor. One of these risks is hurting your credit score. 

You’re in the right place before making your big decision: to be or not to be a loan guarantor? Here’s a guide to help you regarding this matter. 

What’s the Responsibility of a Loan Guarantor?

If everything goes smooth - which means if the borrower pays his/her debt on time - the guarantor does nothing at all. The role of the guarantor, after all, is to guarantee that there’s someone who’s going to pay for the loan if the borrower doesn’t or can't pay it. 

In the case of the borrower missing payments or defaulting on the loan, the passive role of a guarantor turns active. He/she will now shoulder the failed obligation of the borrower. Based on the contract, the lender may request the guarantor to continue making the payments for the loan.

The guarantor should follow the terms of the guarantee if the borrower misses making a single payment or the entirety of the loan. If the guarantor won’t continue paying the debt, his/her credit score will get dragged down. That’s the harsh reality of being a loan guarantor. 

Why a Lender May Require the Borrower to Have a Loan Guarantor?

A lender may ask the borrower to get a guarantor for the loan for various reasons, namely:

  • The borrower hasn’t experienced borrowing money in the past (no credit history).
  • The borrower has bad credit or a history of missing payments. 
  • The borrower doesn’t have a sufficient monthly income required for getting the loan. 
  • The borrower owes other debts. 

Who Can Be a Loan Guarantor?

While lenders may differ in setting their requirements for a loan guarantor, we can nevertheless list down the most common of these qualifications. 

  • A would-be loan guarantor has to be 18 years of age and above.
  • A would-be loan guarantor needs to have a good or excellent credit score. 
  • A would-be loan guarantor must have a full-time job and meet the required monthly income. 
  • There must be proof that the would-be guarantor and the loan applicant aren’t married or have shared financial accounts. 

Is It Possible for a Loan Guarantor to Back Out of the Agreement?

As long as you haven’t agreed to any contract yet, you’re good to go. But once you have signed the terms of the guarantee, you can’t back out from your obligation. Thus, it’s crucial to think about it carefully before you decide to be a loan guarantor. You need to consider these questions below to help you make a decision. 

Can You Afford to Continue Making the Payments If the Borrower Can’t?

A loan guarantor must be financially confident in acting for this role, if not to say lots of guts. Think about the worst-case scenario. If you’re going to make the payments that the borrower failed to do, you should make sure that you can afford them. Also, take into account your other essential expenses, such as food or mortgage. 

Do You Know the Risk to Your Credit When You Miss Payments as a Guarantor?

Your credit won’t get affected by you simply being a loan guarantor. However, when the borrower can’t pay back the loan and you need to shoulder the obligation and you also fail to make payments, your credit score will get negatively affected by your action. So, always ponder this scenario before deciding to become a loan guarantor. 

Are You Aware That Your Assets Might Get Repossessed?

Besides hurting your credit score, the lender has the right to take legal action against you and repossess your house or other assets to cover the repayment on the loan. 

How Well Do You Know the Borrower?

You must know the borrower you’re guaranteeing. Make sure that he/she has the capacity to pay back the loan. Check his/her monthly income, assets, and financial resources. Moreover, you have to ensure that the borrower is serious about repaying the debt. You can’t just be a guarantor for someone’s debt if you don’t know that person well. 

Takeaway

Being a loan guarantor is a serious matter. If someone asks you to guarantee his/her loan, you must be aware of the responsibility and the consequences that come with this role. Keep in mind that you have to pay back the borrower’s debt if he/she failed to repay it. Moreover, if you can’t fulfill your obligation, your credit will get affected and the lender might repossess your assets to cover the payment for the loan. 

Author Bio:

Bree Diaz is a blog writer who tackles topics surrounding personal finance. She is well-versed in consumer loans such as secure online payday loan and guarantor loans. Bree is also a hiker and a dog lover.

house flipping Loans jpgHouse flipping has never been hotter. If you've been thinking of getting into flipping houses in retirement, there are some key points you should know to help your venture be a successful one.

if you’re thinking about making some money with house flipping, check out these tips:

  1. Find Quality Properties

Flipping houses is about making money, so finding the right properties is imperative. You want something in a good neighborhood that is close to schools and has a low crime rate. Consider areas that are up-and-coming but are not the priciest locales so that you won't have to pay steep taxes for the period that you own the home.

Experienced home buyers know to avoid homes with serious issues, such as cracks in the foundation, plumbing problems, electrical issues or widespread mold. A lack of adequate bathrooms is also a deal breaker for many homebuyers. For a small home, one to one-and-a-half bathrooms may be fine, but for bigger homes, more bathrooms are necessary if prospective homebuyers are going to even consider looking at the property.

Find properties that have good bones but could benefit from some updating. Things like fresh paint, new flooring, modern appliances and hardware, and refreshing landscaping can make big differences, and as Cheatsheet points out, these upgrades come with low costs.

  1. Finance Intelligently

If you have the money to purchase homes to flip outright, you can. There are benefits to having that kind of cash when flipping houses since many that can be bought for cheap in auctions require cash. If you don't have your own funding, though, getting a loan is an option.

Using hard money. Hard money loans are more costly than traditional loans, but they have their perks. They aren't based on the borrower's ability to pay back the loan or credit history. Instead, the loan is based on the collateral the loan is being used for.

Because hard money loans don't have the requirements typical to traditional home loans, they can be used for homes in disrepair. You can borrow the amount that the home is estimated to be worth once you've flipped it, so you have money to complete the repairs you need. They also are speedier than a conventional loan since there is less red tape. This is especially important because the longer you pay on the loan, the less money you earn on your flip.

  1. Know When to Outsource

Finishing the project as quickly as possible is vital to making money flipping houses, so learning to outsource when it's beneficial is vital to your success. This means engaging professionals to complete work that you aren't entirely sure how to do well yourself. It may seem costly in the short term, but if it saves you time and gets the project done in a professional manner, it is worth it to make the investment. Furthermore, Bob Vila notes that if you want to make flipping houses a business, there are often repairs beyond your expertise. Plus, you won't be able to complete all of the repairs yourself simply because the time won't be there.

Outsourcing isn't limited to home repairs and landscaping, though. If you are using contractors and other employees, you'll need to set up payroll for them. Luckily, there are online services that can take on the burden of payroll for you. Research options to see one is right for you, paying special attention to perks that might be beneficial to your business, such as direct deposit options and automated taxes. Some payroll services even allow you to set payroll to run automatically, so your workers never miss another payday. This will keep contractors feeling motivated to get the job done.

Flipping houses can be a lucrative and satisfying business to be in. Find the right properties, fund them wisely, and know when to delegate to other professionals; you'll be a successful flipper in no time.

Blog writen by Emma Grace Brown

 

Using credit cards have added a level of convenience that many fail to appreciate.  Would you rather have to carry $300.00 in cash to purchase that new lawnmower or just carry a small plastic card in your wallet?  Now we don’t even have to carry the plastic and can pay with through an IPhone.  One downside to this convenience is the likelihood of getting into too much debt.  Getting too many credit cards can become an invisible way of getting into debt.  Whereas when people needed to pay cash, they paid from what was in their bank account or had to go through the conscious trouble of applying for a loan.

multiple credit cardsIf Experian data is correct, the average American had almost four credit cards during the thirds quarter of 2020.  This was an improvement or a reduction on the number of credit cards consumers held in 2019.  So then what is the appropriate number of credit cards one should have? You’ll have to decide based on your finances and credit objectives, but, here are some pros and cons.

Being able to use more than one credit card makes it easier to split expenses amongst them.  This reduces the percentage of the available balance you is being used on any single credit cards.  This lower credit utilization when kept low may help your credit score.  For instance, say you have a major purchase, like a $300.00 lawnmower, in addition to your regular expenses.  If you had one credit card, the $300.00 for the lawnmower would increase the percentage of the available credit limit that is being used.  This may affect in a negative way the credit score.  But, with two credit cards, one may be used for regular expenses and the other to purchase the lawnmower. 

With multiple credit cards you can also maximize the rewards that the credit companies offer.  If one credit card gives three percent cashback rewards on supermarket purchases only and another gives two percent on gasoline, then you can split how you use them. 

Some credit cards also send offers you can take advantage of.  Back to the $300.00 lawnmower, you can search for a credit card that offers several month same as cash repayments instead of using the regular credit card used for all other expenses.  As long as the lawnmower is paid in full before the same as case payment period expires, you will save money by not paying interest.

But what could go wrong with having multiple credit cards? 

Lack of discipline can lead to having too many credit cards and too much debt.  If you have a history of overspending, it may benefit you better to just have one credit card that can keep an eye on.  Some credit cards make it too easy to open accounts.  Self control is vital.

Having too many credit cards can also make it difficult to remember when payments are due.  Next thing you’ll see late fees being added to the bill.  If you are not an organized person, for the sake of not getting stuck with late fees, stick to one credit card.

Also, remember that when a credit card company opens an account it may run a hard credit on you.  This will have a negative effect on your credit score.  So to keep your credit score on the high side, it is best to keep the number of credit cards you have to a minimum.

As mentioned, there is not written in stone way of telling how many credit cards you should have.  But, do take into consideration the points mentioned.  Hopefully it will keep the financial pain at a minimum. 

Some of the points on this blog were derived from a blog by Ben Luthi at Experian’s website, https://www.experian.com/blogs/ask-experian/how-many-credit-cards-should-i-have/.

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America's Loan Company - Notice

Customer Notice: Personal loans, title loans, and car loans have terms 6 months or longer. There are no early payoff penalties. We currently report to one of the 3 major credit bureaus, TransUnion. However, many factors affect your credit score. Therefore, we can't promise that your credit score will improve while having a loan with us.

Requirements: We are able to service Ohio residents only. Approval depends upon meeting legal, regulatory and underwriting requirements. America's Loan Company may, at its discretion, verify application information by using national databases, including but not limited to Teletrack and any of the national credit bureaus. America's Loan Company may take this information into consideration in the approval process. Due to state and verification requirements, not all applicants for loans may be eligible for approval by America's Loan Company. You may be required to submit additional documents due to state law and qualification criteria.

Products & Services: Products and services offered to customers may vary based on customer eligibility and applicable state and federal law. Actual loan amounts vary. The availability of loans and extensions may vary. Auto loans and secured personal loans are subject to minimum auto value requirements.

Further Personal Loan Disclosures: For qualified customers, America’s Loan Company offers bad credit personal loans with terms of 6 months to 5 years, with APR under 35.9%. As an example, you may borrow $1,500.00 over a 24 month period, with a $10.00 credit investigation fee, $100.00 loan origination fee, and $452.32 in interest, for a total payment of $2062.32, with an APR of 32.6514%, and monthly payments of $85.93.

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