loan Archives - Serendipity Mommy

How Can a Title Loan Help You Get Cash Quick?

February 3, 2020 by Mandy

We are sure you’ve heard the term equity. Your parents told you that it’s better to have equity in a home instead of renting. But, equity doesn’t just apply to homes.

Do you own a car? Then you have equity and if you’re facing some hard financial times, a title loan can help. So, how can a title loan help get you some quick cash?

Read on for more info about car title loans and how to get one.

Title Loan Help Utilizes the Equity You Have in Your Vehicle to Get You Approved for a Loan

It’s simple to get approved for a title loan. The title loan company will ask you to provide a few documents and proof of identity and you can be on your way with your cash in no time.

A title loan works by you putting up your car title as collateral. Kind of like when you go into a pawn shop, you give them your item and they give you cash. When you pay them back the cash in the time you’ve agreed they give your item back to you.

Instead of an item, a title loan company will require the title of your car to hold onto until they receive the amount of the loan back. If you fail to pay on the loan, they can take ownership of your vehicle. This is why it’s important to know how you’re going to be able to pay the loan back in the schedule allotted.

Here are some of the items you’ll need to provide when applying for a title loan:

Your car’s physical title
Driver’s license
Social security card or birth certificate

Keep Your Car While You’re Paying Back the Loan

Because the title is what is held by the loan company, you get to continue to use your vehicle as normal during your repayment period. Everything stays the same as long as you continue to make payments on time.

There are some rules on who can apply for a title loan. You must be:

Over the age of 18
Be the owner of the car named on the title
The title must be lien free
Bring the vehicle for a visual inspection
Have proof of regular income in the form of pay stubs or other paperwork

Once you have filled out the application, proven you meet all the requirements, and handed over your title, you’ll be good to go cash in hand.

Is a Title Loan Right For You?

Title loan help, similar to payday loans, seems appealing due to the ease of access. It’s a simple application process and you’re practically guaranteed approval.

However, think about the ramifications of defaulting on this type of loan. Can you afford to lose your car? How will you get to work? Is this extra money really necessary? Before taking out any type of loan sit down and make a plan on how you intend to pay the money back.

Looking for more great content like this? Make sure to bookmark this blog and check back regularly for new articles!

Choosing a Lender In Today’s Financial Climate

April 27, 2019 by Mandy

The financial sector has greatly advanced, especially when it comes to the lending segment. Thanks to the different technologies available today, you can access a wide variety of loan types that can either be traditional or modern. Borrowers get to enjoy the convenience that comes with the Internet and regulation of interest rates.

What to consider when deciding on which lender to go for

Technology

Various technological advancements today have brought about highly convenient tools, such as mobile apps, that allow you to access a myriad of financial services and products. This means that you get to enjoy instant loans from mobile applications. All you need to access the loans is your smartphone. In fact, most borrowers have grown to love the convenience that comes with mobile apps.

To check out the reliability of mobile apps, you could even try to use it to apply for a Knoxville, Tennessee home loan. Whether you are looking for a home loan, vehicle loan, or a personal loan, you will love the convenience that it gives you.

Non-traditional banking hours

Traditionally, borrowers were used to fixed banking hours, which meant that there was a time limit that dictated at what time you could apply for a loan. With a mobile app, however, you can apply for a loan at night, on weekends, or even during non-working hours. This makes modern lenders more convenient and reliable, especially when you need to cover an emergency. With the app, you don’t have to wait on long queues in banks during fixed working hours.

Flexibility for payments

As you search for a lender in the contemporary market, you also need to consider how flexible the payment plan is for the lenders you are reviewing. You should ask the lender if they will allow held payments for at least a month in case you are dealing with financial difficulties. Ask them what the charges are for delaying a payment?

If you are taking a huge loan and your earnings are good, you might want to inquire about the exit fee. This information will come in handy if you are able to clear the loan before the agreed upon payment period is over. Make sure to avoid lenders who might charge you a higher fee in the event you want to end the deal earlier.

Response times

The best lender is one who is available 24/7 to respond to your inquiries and make clarifications where necessary. When it comes to boosting your financial relationship with the lender, they should be readily available to answer any questions you have about the loan.

The good thing with today’s financial institutions is that their online presence helps them to stay directly linked to the borrowers. This way, you can get in touch with the lender whenever you need to.

Be on the lookout for brokers

Loan brokers are in contact with a wide variety of lenders and will help you identify the institution that best fits your needs. Going for an experienced broker also gives you access to fast loan processing, thus allowing you to save time. A broker, therefore, is really important if you have a poor credit score.

Nonetheless, if you have enough time, you can do the research and find the best lenders by yourself. This gives you a pool of lenders to review against your needs in order to find what you are looking for. It is also imperative to know that you might encounter many scammers online. As such, be careful when choosing your broker.

How soon do you need the money?

The innovation of the financial sector that paved the way for online lenders gives you an opportunity to get instant cash. Online loans come in different types and might include car title loans and payday loans. If you are dealing with an emergency, then you will need a small loan, and multiple online lenders can help you out. The loan is applied online and approved or declined within 24 hours. Once approved, you will receive the money within a day, which is the good thing about modern loan types.

Unlike online loans, traditional loan types take days to be approved. Let’s not forget that the chances of having the loan declined are also high since the lenders rely on a wide range of information to either approve or decline your loan application. Your credit score and monthly income, for instance, are some of the factors that traditional lenders review before approving your loan application.

Getting the money you need should not be a problem. Thanks to all of the different technologies today, you can handle your finances in the most convenient way.

Family Finance: No Matter the Reasons for Your Loan, You Deserve the Best APR Possible

July 6, 2018 by Mandy

A loan may have all the merits to deliver you from a tight financial situation, but a few wrong moves and you can end up in more trouble than you were before. All lending institutions issue loans with the guarantee that an applicant will pay back the money, along with a pre-calculated annual interest over a pre-determined period.

As the borrower, therefore, the interest a lender charges can make all the difference between getting out of your predicament successfully or sinking deeper into the murk.

So, when you need some money, don’t let desperation rush you into making a damaging deal. Below are some tips that will help you get a low annual percentage rate and avoid a good chunk of cost on your debt.

1. Becoming an Ideal Client

Lending money is risky business, and as a result, lenders typically have guidelines that determine who they approve as their client. The fewer boxes you check, the riskier you become, and that means a higher APR. Applicants with excellent credit and a reliable source of income, such as stable employment or a thriving business always find it easier to get low-interest loans than borrowers in a shaky financial situation.

Before applying for a loan, ask yourself if you would make an ideal borrower. Go online and check your credit score with a major credit reporting bureau. And if your credit isn’t as good as you would want, seek out ways to improve it.

Repairing bad credit can take you months or years of responsible financial planning. Therefore, think about how long you can wait before applying for a loan, and if you have time, consider building up your score first.

2. Weighing Your Options

For borrowers looking for low APRs, big, established lending institutions aren’t the only option. If you don’t like the rate your bank quotes to you, start looking into other choices. Local credit unions, for example, often offer the lowest interests since they’re run by their own members.

Online lenders are also known for their ultra-friendly rates. A company like Loan Review HQ provides unsecured personal loans with low APRs to short-term borrowers, even those with bad credit.

3. Getting Better Terms

Most lenders will be willing to offer better rates if you sweeten the deal for them. For instance, securing your loan with a valuable asset like a house or car will almost always get you a low APR, since you will be protecting the lender from loss. Collateral loans are also typically more straightforward to obtain than standard personal loans, especially if your credit history is unfavorable. On the downside, your property will be tied to the loan, and the lender will certainly take it if you don’t pay them back.

Alternatively, consider getting a cosigner on board. Asking a friend or family member with a high credit score to co-sign on your loan will make your application less risky to the lender and will, therefore, result in lower rates. Keep in mind, however, that you will be putting your cosigner’s credit on the line. Before signing up, be sure you can pay back the loan.

Conclusion

A great APR can be a huge money saver down the road but getting one means knowing where to look, and of course, being the client with which the lender would like to do business. Let the pointers above be your guide to landing the best loan rates available for you.

5 Important Things You Should Know Before Taking Out a Personal Loan

June 8, 2018 by Mandy

Applying for a Loan Approved, Loan application form with a pen on a desk with an approved stamp

Using a personal loan can be a great financial strategy in the right circumstances, but you must understand what you’re getting into and how they work. Here are 5 important things you need to know before taking out a personal loan.

Taking out a personal loan can be a great option for those who want to consolidate their debt, need extra money, or simply pay off a large, unexpected expense. It’s estimated that 24 million Americans take out a personal loan each year, with that number increasing each year as well.

Unless you have specific financial knowledge, you probably have a few questions. But, what exactly is a personal loan? Will taking out a personal loan hurt my credit? How do personal loans work?

We are going to answer all of these questions and more in this article, so keep reading to learn more.

1. What Is a Personal Loan?

A personal loan is a type of loan that is paid back in installments over a set amount of time. The repayment time for personal loans can range from 18 months to 5 years.

2. Unsecured vs. Secured

There are also two different types of personal loans.

The most common type is called an unsecured loan. This means the lender doesn’t take collateral for the loan. They will give the loan based solely on your credit and financial history.

There are also secured loans, which are less common for personal loans. These types of loans are backed by collateral, usually in the form of a savings account. These types of personal loans are usually for people who can’t qualify for a loan based on financial history alone.

Secured loans often have slightly lower interest rates.

3. Risks with Personal Loans

The main risk associated with personal loans has to do with the fixed repayment period. You must pay the full amount of the loan back in a fixed time determined when you take out the loan.

If you fail to do this, you can be sued by the lender. And since most personal loans are unsecured, going to court is almost guaranteed if you fail to repay.

You can also face extra fees if you try to pay the loan off before the repayment period ends.

4. Your Credit Score Makes an Impact

It’s pretty simple: the better your credit, the more affordable the loan will be. Having a high credit score will get you a loan with a much lower interest rate and potentially lower fees.

Those trying to get a loan with questionable credit might face outrageous interest rates that would make the monthly payments extremely high.

5. It Can Impact Your Credit Score

Not only can your credit score impact the loan itself, the loan can also impact your credit score.

If you fail to pay on time or fail to pay in general, your credit score can take a hit.

Also, applying for a personal loan can also lower your credit score a few points because of the multiple credit checks.

Things You Should Know Before Taking Out a Personal Loan: Wrapping Up

Even with all the financial planning and budgeting, sometimes you need a little extra help by way of a loan. A personal loan can provide you with a decent sum of money and a fixed repayment plan.

If you have any other questions about loans or finance, check out our finance articles on our blog.