PERSONAL LOANS

A personal loan from a lender such as a bank or credit union is dubbed a personal loan because it is an unsecured loan which is not backed by some form of collateral Personal loans can be used for any reason but the interest rates on these types of loan are generally rather high compared to other types of loans The amortization of personal loans varies with the interest rate usually lower for loans with shorter terms.A personal loan from another person whether its a friend family member or some other benevolent person willing to loan you money for a down payment may or may not include interest payments and might not have a formal repayment structure.low interest rate loan,personal loans,equity loans,home loan,car loan,equity loan,home equity loans,student loan,auto loans,bank loan,business loan,cash loan, fast loan,loans for bad credit,loans with bad credit,refinance.The terms of this loan depend on the agreement between you and the person lending the money for the down payment. When you apply for a personal loan an inquiry appears on your credit report This means that even if you dont want your mortgage lender to know that you are applying for a personal loan to cover the down payment it will probably still be discovered whether or not the account has even shown up on your credit report at the point you apply for a mobile home mortgage It is better to be upfront when applying for the mobile home loan instead of attempting to covertly borrow the down payment funds. haracter loans are extensions of funding that are granted based on factors other than the declaration of collateral. Generally, a character loan is granted when the lender determines that the loan will be repaid in a timely manner without the need for some sort of security. Signature loans are one common form of the character loan.A lender may choose to extend a character loan based on a couple of factors. First, the lender may be very familiar with the reputation of the borrower, and have every confidence in the ability of the applicant to repay the loan according to terms. This approach was often employed with long standing clients of local banks in times past, and continues to be somewhat common in many smaller bank chains. The lender often will have dealt with the borrower in the past, and have found the business relationship to be mutually beneficial. When this is the case, there is usually not any problem in obtaining the character loan.The second factor has to do with the personal credit history of the applicant. Even if the lender has not had prior business dealings with the borrower, it may still be able to obtain a character loan based on this consideration. By checking the credit history of the individual, the lender can get a good idea of the current level of indebtedness in comparison to income and how well the applicant keeps up payments on current debts.

Persons who are able to obtain character loans tend to exhibit a great deal of business and financial integrity. The dedication to repaying debts on time and keeping finances in order will often increase the confidence level of many lenders, and at least open the door for negotiations. When this high level of credit worthiness is coupled with possessing an excellent reputation in the business community, the potential for being able to obtain a character loan is very good. A loan is a financial transaction in which one party agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or home almost always necessitates some form of financial loan, whether it be a bank mortgage or a private loan with the seller. Financing a higher education may also require a federallybacked student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.There is a very important legal difference between a gift and a loan. A very generous relative or friend may give you $5000 for car repairs, for example. If there is no expectation of repayment, the money can be considered a gift. The giver could not sue for repayment later in a civil lawsuit. But if the lender designates the money as a loan and the borrower pays back even one dollar, the money can be considered a legal loan and the lender can demand repayment any time. Small claims courts spend much of their time determining whether or not a transaction involving money was a gift or loan. This is why paperwork is essential when making private loans to friends or relatives.

Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien can be placed on such purchases. The finance company or bank will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Other items such as stocks, bonds, or personal property can be put up to secure a loan as well.Secured loans are usually the best way to obtain large amounts of money quickly. A lender is not likely to loan a large amount without more than your word that the money will be repaid. Putting your home or other property on the line is a fairly safe guarantee that you will do everything in your power to repay the loan.Secured loans are not just for new purchases either. Secured loans can also be home equity loans or home equity lines of credit or even second mortgages. Such loans are based on the amount of home equity, or the value of your home minus the amount still owed. Your home is used as collateral and failure to make timely payments can result in losing your home.

REFINANCE

When an owner obtains a new first mortgage on his real estate, the homeowner has undergone a home refinancing. Simply put, think of home refinancing as trading in an old first mortgage for a new first mortgage.To refinance a home, the homeowner must apply for a new mortgage. During the application process, the subject home will undergo a new appraisal to determine its value, and the homeowner's credit file will be reviewed. The lender will also order a title report on the property to search for any other liens that may appear. Assuming all these items meet with the lender's approval, the loan will be approved. Once approved, the homeowner will meet typically at the office of the lender or title company to sign the new mortgage. The proceeds of the new loan will be used to pay off the old first mortgage as well as any additional mortgages and liens on the property.personal loans,equity loans,home loan,car loan,equity loan,home equity loans,student loan,auto loans,bank loan,business loan,cash loan, Accordingly, the only mortgage showing on the home after the refinance will be the new loan itself. Homeowners frequently seek to refinance their home when interest rates fall below the rate they had on their mortgage when they first bought their home. For instance, if a homeowner had a 30year mortgage at 8% and a loan of $100,000.00, it would be wise to seek a refinance if the interest rates fell to 6%. The savings in such a situation would be $134.00 per month. Over the life of the loan, the savings could reach a total of $48,240.00. If the loan was for $200,000.00, the monthly savings would be $268.00, an almost $100,000.00 savings over the life of the loan. Accordingly, when determining if it is worthwhile to refinance a home, the homeowner should weigh the long term savings against the costs involved in the refinance and the length of time the homeowner intends to stay at the home to insure that the refinance is worthwhile.Costs typically involved in a refinance include: points, document preparation fees, tax service fees, title expenses, appraisal fees, and other lender's costs. Of these, the "points" are typically the most expensive. Using the $100,000 loan example again, for a refinanced loan with one point (1%), the homeowner would pay a fee of $1,000.00 to secure the loan. If two points (2%) are being paid, then the homeowner would pay $2,000. A refinance constitutes obtaining financing through a new mortgage loan for the purpose of paying off an existing mortgage loan. Though there are numerous ways to proceed with a refinance , there are two basic types, and the reasons for refinance nancing depend on individual financial situations.A straight refinance is the most common refinance nancing situation. A straight refinance means a borrower is only refinance nancing the exact amount he or she owes on an existing mortgage. Often, people do this to change either the terms of their mortgage loan or their interest rate. A refinance that carries a lower interest rate than a homeowner’s current interest rate saves the homeowner money over the course of the loan, and sometimes lowers his or her monthly payment. People sometimes proceed with a refinance to extend the terms of their loan, which can also lower monthly payments, but this is a situation that should be avoided when possible, unless the interest rate can simultaneously be reduced. A cashout refinance is another common refinance nance. A cashout refinance means borrowing more than the amount one's home is currently worth, up to an allowed maximum. The cashout refinance differs from a straight refinance in that the homeowner is not just borrowing the amount he or she owes on a current mortgage, but also borrowing against the equity in the home. People might use a cashout refinance to pay for college, make home improvements, or consolidate debt. The last option is not usually recommended, and should be pursued with caution and under the advisement of a financial planner or councilor. The conditions for approval of a refinance are slightly different than for a purchase loan. Most lenders will not allow a homeowner to refinance nance 100% of the home’s value. Offers from lenders that allow refinance nancing based on 100% or more of the home’s value should be examined closely, and one should never borrow more than the home’s actual market value. A refinance , either cashout or straight, should benefit the borrower by lowering his or her mortgage interest or providing access to equity at a lower interest rate than a conventional loan. A qualified lender will discuss your situation with you and present you with options that are financially in your favor. If the lender only seems interested in closing the loan, look for a different lender.

DEBT CONSOLIDATION

Debt consolidation is a debt reduction system that allows consumers to combine their assorted unsecured debts into one payment. Instead of sending out payments on six or seven bank and store credit cards, for instance, you would make one payment to the debt consolidation company and that company would then disperse the funds for you.This money management system can be extremely advantageous to the consumer as the debt consolidation company will generally negotiate a reduced interest rate, a reduced balance, a lower monthly payment, eliminate late fees, and set a term when the debt will be paid off in full. This may save the consumer large sums of money in the long run. A financial management system like this is far superior to paying the minimums on a credit card every month and watching as the balance continues to grow through the years. Mortgage loans and car loans are not subject to consolidation as these loans are secured. Unsecured loans like bank credit cards affiliated with Visa and MasterCard, pay day loan,small business loans, student loan,emergency loan,short term loan,debt consolidation,low rate loans,quick loans and assorted department store credit cards (Marshall Field, Dayton's, Lord & Taylor, etc,) are typically the items put into a debt consolidation program.Creditors view debt consolidation positively since the consumer is showing a strong, good faith effort to take responsibility for and pay his or her debt. While a bankruptcy allows consumers to wipe out their debt and start fresh, it also tends to destroy a consumers credit background. After a bankruptcy, a creditor will have difficulty establishing credit for almost seven years. With a debt consolidation, on the other hand, a consumer can greatly reduce his or her debt, combine multiple payments into one payment, and preserve their credit background by avoiding bankruptcy. There are debt consolidation companies in almost every city and town in the United States. The Internet also lists such companies that are willing to help consumers begin to eliminate their debt.

COLLATERAL LOAN

Collateral loans are also called a secured loan. It is a loan obtained from a banking or other financial institution, where in exchange, the creditor may sell that which is offered for collateral if the loan is unpaid. A collateral loan is often offered at a lower interest rate than an unsecured loan, because there is a guarantee of repayment should the borrower default on the loan.

A collateral loan may use different things to secure the loan. Often people use stocks or bonds to establish a collateral loan. They can use their ownership in property, where a portion of perhaps a home, or a piece of land, is set up as collateral. If the borrower defaults, he must sell the property to pay back the loan, and the lender has rights to sell the property also, even if only a portion of the full value belongs to them. In these cases, a lender would sell the home, and give the previous owner the monies not offered on collateral.

A collateral loan may also be based on expected collateral, like the expected return on a harvested crop, or on an investment. Occasionally, one can use property like high valued jewelry as collateral, or other high valued goods. This is rare, as most collateral loans are based on paper assets, or on real estate.

If the collateral given decreases in value and the borrower defaults, he or she will still be responsible to repay the amount at which the collateral was previously assessed. For example, a person borrows $100,000 on a home of the same value. If the home decreases in value, say to $75,000, the borrower must still pay back the full amount, as dictated by the terms of the collateral loan. If a borrower has defaulted on the collateral loan, his or her home will be sold. However, the borrower will still owe the lender $25,000. This may require the borrower to sell more possessions or enter bankruptcy.

MORTGAGE CALCULATORS

One of the easiest ways to choose rate types and mortgage terms is to determine how much you want to spend on a house and how much you can afford on a monthly basis

If you need help running the numbers there are many different mortgage calculators online that can do the work for you

Because there are so many things to consider before getting a mortgage you may want to use different calculators for different purposes For example a mortgage amortization calculator can help you determine what type of loan term is best for you by estimating how fast you can pay down your mortgage and build up equity Mortgage rate calculators on the other hand can help you determine what type of interest rate is best for your financial situation

Such calculators can be great tools for homebuyers who want to educate themselves prior to taking out a mortgage loan However you must keep in mind that these calculators do not take every cost of homeownership into account Mortgage insurance taxes remodeling and maintenance costs may not be figured into the calculations Because these costs can really add up on a monthly basis they should be carefully considered when determining how much house you can afford

A mortgage calculator is a tool that can be used by mortgage companies realtors people working in the business world and any other individual who is interested in determining the monthly payment that is associated with a potential or current loan Without using a mortgage calculator the process of determining the monthly payment on a loan would be much more complicated time consuming and maybe even impossible for anyone who is not a numbers person

Almost Everything Can be Calculated

Not only can a mortgage calculator be used to calculate the monthly payment on an amortized loan principal interest but a mortgage calculator can also account for property taxes that are charged on a yearly basis and the cost of homeowners insurance and add those numbers into the loans projected monthly payments

It is also possible to use a loan calculator to figure out how much income is needed in order to qualify for a particular loan amount Most mortgage companies will only permit a person or a married couple to borrow a certain amount of money and that amount is determined by that person or couples monthly income monthly investment income and total amount of other types of debt

Calculators Provide Estimated Numbers

When a mortgage calculator is used to determine what a monthly payment will be on a home loan its important to remember that the numbers the calculator produces are only estimates

The actual monthly payment may be higher or lower than what the calculator says because there may be closing costs and other fees added to the total amount of the loan Also if taxes and homeowners insurance costs will be added into the equation the numbers for the calculation may not be definite numbers The real numbers will probably be similar to what a mortgage calculator determines but the actual dollar amount may be slightly varied

Making Larger Payments than Required

Amortized mortgages have a predetermined monthly payment due for a set number of months However some mortgages allow the borrower to pay additional principal each month in order to lower the total loan amount Also some lenders will allow the borrower to make mortgage payments every two weeks instead of once a month Paying every two weeks may seem impractical but over the course of 30 years it can reduce the total amount of the loan by a significant amount

Mortgage calculators can be used to determine how much a loan would be reduced if additional principal was paid each month and or if payments were made to the mortgage company every two weeks instead of every month If the amount that the calculator determines is a significant amount of money borrowers may choose to use either of these two methods to shave years off the length of the mortgage and or save a significant amount of money on interest

HOME LOANS

A home equity loan can provide the cash you need for home improvement college tuition debt consolidation and much more If you are interested in finding out how you can tap into your equity with a loan read on to learn more.Most people purchase a home as a place to live but homes can also serve as an investment This is because homes are constantly increasing in value As you make monthly mortgage payments you decrease the amount owed on the principal The result is equity The amount of equity that you have built in your home depends on how much you still owe on the house and how much the house is currently valued at For example if your house is appraised at $100 000 and your current mortgage balance is $60 000 then you have $40 000 in home equity Your home equity can be withdrawn at any time All you need is the proper loan.Home equity loans are similar to a second mortgage You borrow money from a lender using your home as collateral You must then pay back the cash that you borrowed The time frame that you have to pay back the money depends on the terms of your loan Some loans have terms as short as one year while others have terms that last up to 20 years.In general equity loans are relatively easy to obtain and is often easier to qualify for than a first mortgage This is because you already own the house and carry most of the risk If you default on your home equity loan your lender can seize your home and sell it to recoup the loan amount. Home equity can be tapped into in two ways that are often confused loans and home equity lines of credit Though both methods of financing use the equity that you have built up in your home they work a bit differently Home equity loans are lump sums of cash that are given to the homeowner upon approval Home equity lines of credit on the other hand are revolving lines of credit that work similarly to a credit card Though you will be approved for a specific amount that can be withdrawn at any time you wish you will only make payments on the money you use If you never use any of the funds that are available to you through your home equity line of credit you will never have any payments.Though both methods of financing have their advantages there are also drawbacks to each Before deciding between the two avenues you should do some research on each option to determine which one best fits your financial situation.

A home equity loan allows homeowners to access the equity in their primary residence without having to sell the property. Equity is the difference between what a home is worth and what is owed against it. Traditionally, home equity loans were called second and third mortgages.

Equity in a home comes from two sources. Mortgage payments, over a period of time, reduce the amount owed against a property, and real estate appreciation increases the gross value. After several years of making mortgage payments, the equity accrued can be substantial. For example, a home purchased for $250,000 with a zero down payment mortgage and appreciating 5% a year may have $50,000 in equity in as little as five years.

Banks and finance companies often given favorable rates on home equity loans as real estate is perceived to be a very stable investment. This is especially true when the economy isn't struggling, as real estate has a long history of appreciation.While home equity loans have favorable rates relative to auto loans or credit card debt, the rates are still higher than for a first mortgage. A home equity loan can be turned into a first mortgage through a process known as refinancing.There are many different lenders who now specialize in home equity lending The lender that you choose will be one of the most important decisions that you can make during the process Not all home equity lenders are legitimate and choosing the wrong one could be devastating to your finances To make sure you choose a reputable lender you will need to do your homework. Start by contacting traditional lenders as well as online lenders Ask for free rate quotes from several lenders and then contact the Better Business Bureau to check for any complaints on these companies Once you have narrowed your choice to three lenders or less begin making comparisons between the interest rates lending fees and loan terms and conditions that are being offered to you Choosing a lender who provides low interest rates and reasonable lending fees can save you hundreds or even thousands of dollars over the life of your home equity loan

FIXED RATE MORTGAGES

There are many types of mortgage programs to choose from but there are only two basic types of rates fixed rates and adjustable rates Fixed rate mortgages are typically the most popular choice. With adjustable rate mortgages your interest rate changes periodically over the term of your loan but with fixed mortgages your interest rate is fixed and will never change. This means that the interest rate you lock in on the day you purchase your loan will be the same interest rate that you have when you make your final payment Because the interest rate never fluctuates your monthly mortgage payments will always remain the same for the interest and principal combined payments may fluctuate slightly if property taxes or homeowners insurance is included. Fixed rates are often the preferred mortgage rate because they provide a sense of security and predictability that adjustable rate mortgages cant offer However they can also be the more expensive choiceIf you are trying to decide whether or not a fixed rate mortgage is for you here are some other pros and cons to consider.If average interest rates surge outrageously those with a fixed rate dont have to worry

Consistent payments make everyday budgeting easier. A loan is a financial transaction in which one party (the lender) agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.

Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or home almost always necessitates some form of financial loan, whether it be a bank mortgage or a private loan with the seller. Financing a higher education may also require a federally backed student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.

There is a very important legal difference between a gift and a loan. A very generous relative or friend may give you $5000 for car repairs, for example. If there is no expectation of repayment, the money can be considered a gift. The giver could not sue for repayment later in a civil lawsuit. But if the lender designates the money as a loan and the borrower pays back even one dollar, the money can be considered a legal loan and the lender can demand repayment any time. Small claims courts spend much of their time determining whether or not a transaction involving money was a gift or loan.

BUSINESS LOANS

Small business loan applications require more then simply dotting Is and crossing Ts Too often entrepreneurs and established business owners forget that when you walk into your bank you are entering the world of your friendly neighborhood commercial lender But if you want that lender to remain friendly and open to your needs you have got to remember that when you walk in you enter his her world and leave yours far behind. Finish filling out your business loan application before your appointment Check it twice and be legible Doctors can get away with illegible scrawls but you cant Anything that has to be translated wont help your case Use online forms whenever possible or have someone else fill them out. Use a checklist to make sure you have all the supporting paperwork before you go Forgetting a key part of the loan application will not win you any points and slow the process. Business loan applications are legal documents and you can be held liable for making false statements on them under certain circumstances If you fib it can come back to haunt you Since the loan officer uses your application to evaluate your loan worthiness and should he she approve it and later discover that something wasnt as you said it was you can forget about ever doing business again with that bank and your credit rating may be ruined .It is easy today for banks to run checks on your claims at the click of a button Databases abound with information about you everything from education employment residence and credit history Make a falsified claim and it can and will be discovered. Things change Update these important documents at least twice yearly Commercial lenders like to see what you have done and where you are going in a nice logical progression Dont fudge on facts. Most banks and other traditional lending sources are understandably reluctant to provide small business finance especially a startup Even businesses who have established that have only been around for a few years may find it difficult to obtain necessary financing Small businesses are risky investments and the selection criteria for lending from these institutions is strict and most times unyielding Banks rely upon stable histories and ontime payments to vendors and other credit criteria that a small business owner often cannot provide due to the ups and downs of the business cycle If your business is less than five years old its still considered a risk by traditional bankers unless you are wildly successful Most small businesses dont fit this criteria but need financing to expand and ironically fit the criteria lenders are looking for If outsourcing your financial needs at this stage of your business life is not possible take heart you can still obtain the small business financing you need.When you approach the subject of small business finance youll still need to know the state of your business If you havent written a business plan now would be the time to do so because writing a plan will force you to think and evaluate your business in ways you may not have done before A business plan will force you to think like a banker when assessing your businesss capabilities You have got to determine how much ready cash you have to invest in your expansion Those sources you approach for loans or investment in your business will want to know how much you have personally invested in it If you havent risked enough of your own funds dont expect others to cough up ready cash even if you have developed the best widget on the market. Relationship financing is probably the most widely used but most dangerous form of small business financing because it involves enlisting the aid of family and friends While family members and friends may be more forthcoming and wiling to aid you in your financing needs the risks of failing to repay has grave consequences for relationships. Relatives can be especially harse should you fail to meet your obligations broadcasting unceasingly to other family members about how you screwed up Nothing can destroy a friendship faster than a failure to repay a loan No matter how understanding your friends may be money is money a separate issue from friendship The difference between family and friends is that while family members never let you forget they will allow you to attend family gatherings Friends may sever the relationship At the very least the relationship may be permanently damaged. One of the more common types of financial lending that is extended to businesses, the bank term loan is a certain type of loan that involves a fixed maturity and an amortization of the principal amount of the loan. Bank term loans may be used to establish a line of credit that the business can draw upon as needed, or be provided to the company in a lump sum, just as any type of bank loan. Here is some information about how the bank term loan works, and why this particular loan process may be advantageous for a business.

Using the process of a bank term loan to establish a line of credit is perhaps the single most common application. Businesses that want to be able to demonstrate financial stability can choose to create this sort of credit line as a means of providing an example of just how secure the company happens to be. There may not be any immediate financial need on the part of the company. However, the creation of a line of credit via a bank term loan makes it possible for a company to respond quickly to chances for acquisitions or other means of expansion without being slowed down by the approval process of obtaining any other type of business loan. This means there are funds on tap whenever they are needed. The company can move swiftly to take advantage of an opportunity without having to dip into the operating capital to do so.

In other cases, a bank term loan can provide the necessary funds to keep a company going during a slow period. A company that experiences seasonal peaks and valleys in the demand for their products is a good candidate for a bank term loan. With a demonstrable performance record, it is easy to establish a bank term loan that will come due during the period when a high volume of revenue is received. In the interim, the funds from the bank term loan can be used to keep the operating and other expenses of the business paid and up to date. From this perspective, the bank term loan is an ideal way to get the best financial arrangements that meet the needs of the company.

Bank term loans have been the means of assisting many companies to grow, as well as allow continued operations during a temporary but anticipated slump. As one of the most common types of loans on the market, banks often offer competitive rates for a bank term loan. Any business that is thinking about the possibility of taking out a bank term loan would do well to shop around for the best rate and conditions possible.

CAR LOANS

Car financing offers one the opportunity of owning a vehicle. There are several ways one can obtain car financing. A personal loan, however, is one of the more popular methods of car financing. Purchasing a car with a personal loan allows one to borrow money from his or her chosen financial institution. It also makes it possible for the buyer to ultimately pay for the car entirely. As a result, the buyer owns the car completely. Since the debt owed on the car is paid off through personal loan car financing, the car owner also has the freedom to sell the car or to trade it for another.Hire purchase is another type of car financing. This method involves forming an agreement between the used or new car dealer and the buyer. In this arrangement, the buyer is asked to pay a deposit of anywhere from 10 to 20 percent of the total price of the car. Monthly payments are then set based on the amount of money still owed. With this type of car financing, the car is not fully owned by the buyer until all monies are paid off. Re mortgage is another choice for car financing. This method is specifically designed for homeowners. With this method, the buyer can re mortgage his or her home and use the extra money to purchase a car. For those who own property and have an existing loan, the same idea can be implemented with refinancing the loan. Refinancing allows the borrower to get more money from his or her financial institution, which can be applied toward car financing.Interest free car financing and personal contract purchase are other methods of car financing. Interest free car financing is usually offered only with new cars. With this type of car financing, the buyer can get a new car without paying interest on the total cost of the purchase. Personal contract purchase, on the other hand, is commonly used with banks. Monthly payments are extracted from the buyer’s bank account for a minimum of two years and a maximum of four years. The borrower and bank account owner then has the choice to either pay off the car via a lump sum payment or to return the car after this time period is complete.

PAYDAY LOANS

Payday loans also known as cash advance loans are short term, high interest loans used to generate immediate cash between wage payments. The customer presents photo identification and proof of income, usually previous pay stubs. He or she may write a post dated personal check to the lender which includes the amount of the cash desired and an established fee. The lender then presents legal documentation which describes the exact terms of the loan, including annual interest rates, late fees and finance charges. Upon signing these documents, the customer receives cash. Ideally, the entire loan is paid in full whenever the customer's next paycheck is issued. If not, the loan terms may be extended or 'rolled over'.

Many financial experts strongly discourage the practice of payday loans. Because the loans are very short term, their APR (annual percentage rate) can reach upwards of 500%. If the entire amount owed is paid by the date of the personal check, payday loans are merely expensive but affordable sources of emergency cash. But if the customer is unable to pay off the entire loan with his or her paycheck, the outstanding balance incurs late charges and additional interest fees. If payday loans roll over three times, the accrued interest can equal or surpass the original amount of the cash advance. Many states do not have laws which regulate the interest rates a private cash loan institution can charge.

While the terms and conditions of payday loans may seem draconian, there may be extenuating circumstances which make emergency cash advances attractive. Many consumers literally live from paycheck to paycheck, which means any unexpected expense can cause financial disaster. The only acceptable payment solution may be a substantial amount of cash. Financial advisers suggest that consumers try to find alternatives to payday loans whenever possible, such as extended repayment agreements with the creditor or a promissory note held until the funds are available through normal wages. If a cash advance loan option seems unavoidable, only borrow an amount of cash which can be repaid entirely with the next paycheck.Payday loans should only be considered in cases of extreme financial emergency. Be sure to read the terms and conditions of the loan carefully before signing any agreements. Lenders will pursue all legal options available if the personal check is returned for insufficient funds. These private lending institutions profit from roll over interest payments, so resist the temptation to borrow more cash than you can safely repay through wages.

STUDENT LOANS

There are three main types of school loans: federal student loans, parent loans, and private loans. Each type of school loan has a specific application process and eligibility requirements. It is in a person’s best interest to only apply for school loans if they have exhausted other resources such as scholarships and financial aid.

Most students will apply for federal school loans when they apply for financial aid. The schools you apply to will make you fill out the application at the same time so that students ineligible for financial aid will still have the option of receiving money through a government funded loan. Federal school loans, of which the Stafford loan is a type, are handled by the Department of Education.

A student has the ability to receive a subsidized or an unsubsidized federal loan. The main difference in these school loans is that subsidized loans do not charge or build any interest until the moment you start to repay them. Unsubsidized loans begin gathering interest from the moment the school loan is acquired. Almost every student is eligible for this type of loan as long they are going to an eligible school on a part or full time basis.

School loans may also come in the form of a parent loan or a Parent Loan for Undergraduate Student (PLUS) loan. PLUS loans are only available for parents of children that are undergraduates. These loans allow parents to take on the loan for their children’s education. This school loan generally has the same requirements as federal school loans. The main difference here is that the PLUS is in the parent’s name and not the child's. The parent loan, in many cases, will be a greater amount of money than what is available to an independent student.

Private school loans come from banks, credit unions, and other non federal institutions. If a person is unable to receive federal loans for whatever reason or the federal school loans they do receive is not sufficient to cover their expenses while at college, they can look to private school loans for assistance. The interest rate on a private school loan is usually going to be higher than a federal or PLUS loan. It is also very important to read and understand the loan agreement that is signed before choosing which institution to get a private loan from, so you can be sure you will be able to pay back the amount plus interest.

There are many types of student loans to choose from, and it's important to find one that is right for your particular situation. The two main types of loans are federal loans and private loans.

There are three main types of federal loans:

Federal Stafford Loans These are awarded based on financial need and are regulated by the federal government. They can be obtained from a bank, credit union, or directly from the government. There are three kinds of Federal Stafford Loans to choose from:

Subsidized Federal Stafford Loan This loan is long term and need based, with a low interest rate. The term "subsidized" means that the government will pay the interest on the loan while a student is in school or when the student requests a grace period or deferment.

Unsubsidized Stafford Loan This loan is long term, non need based, with a low interest rate. This type of loan is best for students who don't qualify for other types of financial aid, or who still need more money in addition to other forms of financial aid. Almost all household incomes qualify, and "unsubsidized" means that the interest on the loan is the responsibility of the borrower. In some cases, however, payments can be postponed.

Additional Unsubsidized Stafford Loan These loans are reserved for borrowers that are classified as independent students, as determined by Federal guidelines.

Federal Plus Loans These loans are available to parents whose children are attending college as full or half time undergraduate students. They are awarded based on credit history and cost of attendance. The interest is low on this type of loan, but repayment usually begins within 60 90 days after full disbursement of the loan, or after the student graduates.

Federal Perkins Loans Perkins loans are awarded to students based on extreme financial need, and usually have very low interest rates. The total funds available to be disbursed for these loans is limited, however, which means that the amount of the loan will likely be relatively low. The interest doesn't start to accrue until 9 months after a student drops below half time enrollment or graduates. If you're not sure if you qualify for a Perkins Loan, ask a college financial aid advisor. One important thing to note about these loans: they are reported to a credit bureau, which means that if you are late on payments, or default on your loan, it could damage your credit.

If you don't qualify for federal loans, then you might consider looking at private lenders. Banks and loan companies often provide student loans at relatively low interest rates. Each institution is different, so be sure to check out the terms and conditions of any loan you obtain, federal or private, and make sure you know the details before signing on the dotted line.

An education loan is a loan taken to help pay for an education, usually at a college or trade school, but may also be used to pay for private schools or prep schools as well. The education loan is available in several different types.

These are student loans, parent loans and private loans. Loans are also either guaranteed or unguaranteed. Student and parent loans are most likely to be guaranteed by the government, though many agencies work for the government in this respect. Unguaranteed or unsubsidized loans are usually from private lenders only, and usually can only be obtained if one has a good credit score or significant equity.

The student loan is usually the best choice education loan for a student whose parents cannot pay for his or her education. While the student remains in school, interest on this type of education loan accrues and is paid for by the government. When the student stops attending school, the education loan is usually paid off in payments. These payments can be quite large if the loan is large, so students should borrow only what they need.

A parent education loan is a good choice for parents who don’t want their children to end their college career in debt. These can also be guaranteed, meaning that parents don’t necessarily have to have great credit scores to get a loan. Unlike the student loan, parents usually begin payments on this education loan right away. Interest rates tend to be relatively low, but a longer repayment schedule means paying quite a bit of interest.

The private education loan almost always requires good credit. Many people use the equity in their house to take out such a loan. Unlike the parent and student education loan, the private education loan is not usually need based. Often when students apply for financial aid, they are told they, or their parents, make too much money to qualify. In these cases, those who do not have the money upfront to pay school costs may use equity to obtain loans.

Secured Loans

Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien can be placed on such purchases. The finance company or bank will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Other items such as stocks, bonds, or personal property can be put up to secure a loan as well.

Secured loans are usually the best way to obtain large amounts of money quickly. A lender is not likely to loan a large amount without more than your word that the money will be repaid. Putting your home or other property on the line is a fairly safe guarantee that you will do everything in your power to repay the loan.

Secured loans are not just for new purchases either. Secured loans can also be home equity loans or home equity lines of credit or even second mortgages. Such loans are based on the amount of home equity, or the value of your home minus the amount still owed. Your home is used as collateral and failure to make timely payments can result in losing your home.

Other types of secured loans include debt consolidation loans where a home or personal property is used as collateral. Instead of having many usually high interest payments to make each month, money is loaned to pay the original lenders off, and the borrower then only has to repay the one loan. This is not only more convenient but it will also save a lot of money over time, since interest rates for secured loans are lower. A debt consolidation loan usually offers a lower monthly payment as well.

On the other hand, unsecured loans are the opposite of secured loans and include things like credit card purchases, education loans, or bank notes, which usually demand higher interest rates than secured loans, because they are not backed by collateral. Lenders take more of a risk by making such a loan, with no property to hold onto in case of default, which is why the interest rates are considerably higher. If you have been turned down for unsecured credit, you may still be able to obtain secured loans, as long as you have something of value or if the purchase you wish to make can be used as collateral.