Usually, tenants carry high risks in a loan deal, as they do not have a valued property in their name. However, they can have access to a personal loan, if they are able to meet the lenders’ some terms-conditions. It is crucial that such a borrower finds a loan at low cost as well. These loans provide finance for any personal purpose like paying for tuition fee, purchasing a car and paying off old debts.
Tenants can borrow anywhere from £1000 to £25000, under the personal loans. These are unsecured loans. The borrower can have access to the loan without providing any property, as collateral. Usually, the borrowers’ repayment capability is what matters to the lenders. Hence, they take into account the borrowers documents of income and employment, before taking the loan approval decision.
These are short-term loans. The loan repayment duration ranges from few weeks to 15 years, depending on the loan amount and the borrowers’ circumstances. However, these loans carry higher interest rates. You should be prepared to make high interest payments. Still, if your credit history is excellent or good, you can find the loan at lower rate.
A history of making late payments, payment defaults, arrears or CCJs is a big hurdle in taking out a new loan. You should make extra efforts to prove that you have learnt from past mistakes and that you are now in a good financial position of making timely repayments. On making a good search for a lender, you can locate a deal.
Do not rush to the first loan offer you cite on internet. You should check their rates and additional charges. To do that, apply for the rates on personal loans for bad credit. Make comparison of these offers to find out as to which deal is suitable to your circumstances.
By: George Kane
Posts Tagged ‘Loan Approval’
Personal Loans For Tenants – Borrow Finance Without Incurring Risks
June 24th, 2010Yes, You Can Refinance Your Car Loan
December 4th, 2009
Everyone has heard about home refinancing where people replace their original mortgage with a new one. What a lot of consumers haven’t heard about is car refinancing and how they can get rid of their original car loan for a better loan elsewhere. Are these offers any good? And, should you consider refinancing your car? Read on and we’ll explore what has become one of the fastest growing areas of refinancing on the market.
You purchased your car last year and Ford Credit is financing your Mustang for 60 months at 7.9% interest. Kind of high isn’t it? Yes, mostly because at the time of your purchase your credit was fairly new and you had an important ding against your rating. Today, you ran your credit report and obtained your credit score and your rating is excellent. So, why continue paying an above average rate for financing?
Today, various companies have recognized a long neglected area of refinancing and have decided to fill that gap. What I am talking about is the refinancing of a car loan.
To receive the best possible deal in refinancing, here are some things you should look for:
–No fees for filling out an application. Unlike some personal loans where lenders demand a fee, you shouldn’t have to pay a fee to apply for auto refinancing. There are enough companies out there who want your business and won’t charge you a fee for applying, so consider using them first.
–A competitive rate. Taking into consideration your excellent credit, the rate that you are offered should be better than what you have now. Most new car loans can be had for 5 percent or less; make sure that you get the new car loan rate for the best savings.
–Upon loan approval, authorize the lender to pay off your current loan. You may receive cash back from the original loan, monies you can pocket. Overall, your monthly payments should drop significantly compared to what you were paying.
Don’t settle on the first car refinance loan that you see. Get multiple quotes and compare offers to find the one that works best for you. By refinancing your car loan you could save yourself several hundreds dollars in interest payments perhaps several thousands depending how much you are financing.
Yes, the car refinancing industry is exploding all because savvy consumers just like you are looking elsewhere for their funding.
By: Jeff Lakie
Refinance Scams – Shady Loan Officer Tactics – Part 1
November 25th, 2009
Refinancing scams are big news lately, and for good reason. If you are considering refinancing your home, I urge you to read this article in its entirety. It might save you tens of thousands of dollars in the long run.
I used to work for a major, US direct lender who specialized in home-loan refinancing. This corporation taught its loan representatives how to manipulate customers into agreeing to loans that were not in the borrower’s best interest. Although we were taught many methods of psychologically coercing customers into signing loan documents, this article will only discuss one of those methods.
Before I discuss this tactic, you should realize that when a lender evaluates your loan application, they are primarily looking at three things:
1) FICO Score
2) Mortgage-related late payments
3) Bankruptcies
Credit-card payment history, car-payment history, student loans, collections, charge-offs, and pretty much any type of credit problem that is not directly related to a mortgage is irrelevant to getting your loan approved. Why are these credit issues irrelevant? Because that is what the FICO score represents. Your FICO score is a numerical value that takes into consideration all of these factors and lumps them into a number that will range from 500 to 800+.
Mortgage-related late payments will typically increase your interest rate. Bankruptcies will also increase your interest rate or (depending upon the lender) make you “un-lendable”.
Here is the tactic that you should be aware of:
Your loan officer may want to talk with you about your credit history. He or she will ask you specific questions regarding credit-card late payments or otherwise non-mortgage related issues on your credit report. Your loan officer will ask that you explain yourself and provide a valid reason why you were late on those payments.
How is this manipulative?
For starters, those credit issues are irrelevant to your loan approval. Your loan officer should not be discussing them. By asking about your credit history and requesting an explanation, your loan officer is accomplishing three things:
1) Making you feel insecure about your credit history so that you will be less likely to request a quote from another lender
2) Forcing you to “open up” about your personal life, which will help develop a stronger relationship between the two of you
3) Make you feel more appreciative of the loan that your loan officer offers you
The more battered your credit history, the more ammunition a ruthless loan officer will have to use against you and try to manipulate you into accepting a loan that is not in your best interest.
Remember, the majority of loan officers know exactly what type of loan you are approved for the moment they pull your credit. There is absolutely no need for them to delve into your past.
If you experience this type of tactic from your loan officer, I strongly suggest you find a more reputable company to work with.
By: Christian Rios