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Personal loans are one of the most expensive categories of loans you can avail of. These are unsecured loans that can be easily availed of and banks are eager to offer them. In fact, you might have received a few calls offering instant personal loan because you have been a loyal customer to your bank. However, if you opt for a personal loan, expect to pay an interest rate of anywhere between 9% and 20% per annum. The reason is simple: an unsecured loan means that the lender will not ask for a collateral. This is only feasible for the lender if they have a sense of what your credit history is like and whether you have the capability to repay the loan. But that isn’t enough of a safety net. Hence the high interest rate. Given that they are expensive, but easily available, personal loans seem like a good option to fund an emergency expense, if you don’t have a contingency fund in place, or if the fund was depleted for some reason. Of course in the absence of emergency money, falli...

Most people who consolidate debt with a personal loan see their credit score go up — here’s why. Can a personal loan raise your credit score? Several personal finance experts have said that it can, but now we have proof. Credit bureau and consumer finance company TransUnion recently released a new study at the 2019 Money20/20 conference that examined consumers who used a personal loan to consolidate credit card debt. For 68% of those customers, the study found that their credit scores increased by 20 points or more within three months of consolidating their debt. A pair of hands shaking hands and also transferring a wad of 100-dollar bills. The results were even more impressive in subprime and near-prime consumers, where the study found 20-plus-point credit score improvement rates of 84% and 77%, respectively. This may seem counterintuitive. After all, it is well known that applying for new credit (including a personal loan) can have a negative impact on your credit sco...

Some financial terms are so similar that they end up being used interchangeably. But that doesn’t mean they’re the exact same thing. One especially common mix-up: the difference between cosigners and guarantors, who are both people who can help you get a loan if your individual financial history isn’t strong enough. Let’s break it down: a cosigner agrees to be responsible for a loan if the primary borrower has trouble paying it back. It’s typical for people with young credit histories or those repairing their credit to need a cosigner for a loan. For instance, a student taking out private loans for college is likely to need a cosigner since they don’t have a long employment and financial history. A cosigner is different from a co-borrower. The latter is used if two people want to own something together, like a car or home, Bankrate explains. If you have a cosigner, it doesn’t mean that person has the right to drive your car whenever they want. It ...

For those who are trying to find a strong foothold in the real estate business, you’ve probably come across the idea of hard money lenders before. Also known as private lenders, these men and women have had somewhat shady reputation over the last few years. A few bad cases have put a black spot on the business for many, but this does not mean you should be avoiding them in the same way you avoid white after Labor Day. In fact, hard money lenders are on the rise again. Hard money lenders are a bit different than your other loan options out there. They’re shorter (usually 12 months, but can be extended to a few years), tend to focus more on property value than borrower credit history, and require monthly payments of interest until a balloon payment at the end. They are available for almost all types of properties, but that largely depends on the hard money lender themselves. So, have you thought about working with a hard money lender? Check out some of our crucial tips ...