3 Telltale Signs of Unreliable Lenders

While most lenders will treat you fairly, there are some who will waste your money and time. These lenders should be out of business, but they still operate – disappointing and serving borrowers at the same time.


How can you avoid unreliable lenders then? Well, here are the telltale signs that you mustn’t ignore:


Abrupt Information Changes


Once you got your loan and everything is agreed upon, you can now move on and worry about repayment later. Suddenly, the lender informed you that the rates will increase. What the hell happened? Did the lender suddenly develop a bitter hate towards you? Probably not – but the abrupt information change will put you in a compromising situation. If you encountered a lender like this, avoid it next time. You’ve learned your lesson: some lenders are monsters indeed.


Delays in Processing


Lenders typically promise a certain time period of the cash release. Knowing the schedule of the loan release can bring a smile on your lips, especially if you have lots of payables to settle. But what if the schedule is a red herring? What if the lender lied to you and the real schedule is few days or weeks away? Very frustrating indeed! If the lender is guilty of processing delays, stay away from it. View that lender as a nuisance in society entrapping hundreds of borrowers in a hopeless loan cycle. There are many reliable lenders out there; you just need to stretch to find the right one.


Dishonest Representatives


Lending firms are typically represented by loan agents. These agents are trained to sweet-talk their way onto the hearts of borrowers. In lending, honesty is a must, but some reps seem to forget about that fact. They exaggerate about interest rates and prefer to hide external charges. Upon repayment, you’ll be shocked with the additional fees on top of your loan. While it’s almost impossible to spot the dishonesty of a lending representative, you can prepare ahead. Ask as many questions as you can to filter out the lies spewing from the mouths of these dishonest reps. More importantly, do not trust them at all.


By knowing these telltale signs, you can find the right lender worth your time and attention. Before choosing a lender, you should track down moneylender review so you’ll know if it can be trusted or not. If you got a lead from friends, take that data with a grain of salt. Commit to your research first so you won’t have any regrets later on.

3 Situations that Can Derail You From Proper Loan Repayment

Loan repayment is a big problem for many people. While some can repay their loans smoothly, others are trapped hopelessly in recurring debts and interests. There are also tons of situations that can affect your steady loan repayment. This is why you can’t just take loan repayment easily. Careful planning is needed to prevent some situations from derailing you financially.


Emergencies (All kinds)


Nobody wants emergencies in their life, but these things happen. You may think that you have it all figured, then an emergency sends your financial plans spiraling towards oblivion. Emergencies, whether financial or medical, can hinder your loan repayment. Perhaps you can explain the situation to the lender. But still, you need to shell out penalties and fees. The best way you can do is mitigate the damage of emergencies through careful life planning.


One Uncontrolled Purchase


It’s easy to declare that you’re spending smartly. Even if you’re true to such statement, there’s still a chance that you might make an uncontrolled purchase. This can be out of impulse, perceived need, or peer pressure. You may think that one purchase won’t affect your loan repayment process. But it’s difficult to spot this situation once you’re already mesmerized by the product. Before you know it, you probably used the budget allotted for paying your loan premium for the month. Be vigilant over your purchases. List down your needs and wants so you can justify your purchases.


Business and Work Issues


If you’re running a small business, problems will always occur. These problems can lead to bigger situations if they’re left unsolved. Business problems, especially financial ones, will cause you to delay your loan payments. At work, you may also encounter issues that can compromise your loan responsibility. A sudden job loss will cause you to use up the money assigned for the loan. To prevent this from happening, you must have a contingency fund. In this way, you won’t have to use any budget that goes towards loan repayment.


While you can’t control the things that will happen in your life, you need to apply some strategies to put the odds in your favor. The real key is to make your loan repayment plan dynamic and flexible. This way, you can make room for adjustments. Document the major things that have occurred in your life so you’ll know how to deal with them next time. Don’t let unpaid loans control your life!

3 Risky Ways to Use Your Personal Loan

With the appearance of countless online lenders, the popularity of personal loans has greatly increased. Around the world, thousands of borrowers are applying for personal loans and most of them were approved. Once you got your loan, the next step is to actually use it. You probably know about the best ways of using a personal loan. Now, it’s time to explore the risky methods.


A caveat: the methods that will be discussed are indeed risky, but they can still function as strategies. Just be careful toying around with them.


Invest in Binary Options


If you want to be an online trader yet you don’t want to shell out too much cash, you can try binary trading. Binary options let you buy a small commodity so you can sell it few minutes or hours later. Within a day, you can win hundreds of dollars, especially if you picked the right options. Most of the time though, you’re hitting empty air. Binary options can be likened to gambling – you win some, you lose some. But it’s easy money! Just don’t feel heartbroken if you blew away your personal loan on wrong options.


Repay Another Loan


Loan cycling is the process of taking out a loan to repay a previous debt. This strategy is common in rural areas where people don’t have stable means of income. If you stick to this kind of strategy, you’ll have a hard time getting up from your debts. It’s like you’re trapped in a financial quicksand. Consider this strategy as a last resort, and make a vow that you’ll never use it again.


Splurge Needlessly


Now that you have your personal loan, the risk of needless splurging is high. Advertisements will push you to buy stuff that you don’t need. If you splurge too much without thinking about repercussions, your financial dilemma will turn for the worst. Instead of splurging, you should jot down the reasons why you took out a cash loan in the first place. Most borrowers forget about their reasons and they’re fooled into thinking that they have a huge budget to spend on things.


Even if personal loans can be used as solutions to your financial woes, you should not rely on them often. If you cannot repay a personal loan on time, you need to cover penalties and higher interest. This will put you in a compromising financial situation. So, be a responsible borrower!

3 Responsible Methods of Using Personal Loans

Personal loans are great options that can help you achieve your goals in life. Just like any other kind of loan, it’s important to know about the advantages and disadvantages of getting a personal loan. Let’s face it – not all personal loans are useful. Some will bring you down if you’re not careful.


Check out these responsible methods of using personal loans:


Determine if You Really Need a Personal Loan


You should pin down your reason before taking out a personal loan. In many situations, a personal loan is the best option but there are other alternatives. Since personal loans are unsecured debt instruments, there is no need for collateral. Unfortunately, you have to shell out larger interest rates on top of other associated fees. Before taking this type of loan, make sure that you’ve already exhausted your options.


Create a Realistic Repayment Plan


Now that you’re ready to get a personal loan, you must prepare a repayment plan. This plan will help you see the pitfalls in your financial stance. With the plan, you’ll be able to apply the best strategies that can repay the personal loan in the shortest time possible. The plan is also crucial in setting up your budget. Don’t be like other borrowers who are trapped by personal loan penalties because they failed to make a plan.


Broaden Your Search for the Best Personal Loans


Once you have your plan ready, it’s time to do your search for the best personal loans. Keep in mind that each money lender has different ways of introducing personal loans. Some banks and credit firms have better personal loan terms, while other online lenders also have competitive edge. With the help of Facebook, your search will become easier. Typically, personal loan lenders are sharing their posts in Facebook and other social media channels. They even have pages that you can visit. Remember to check out borrower reviews before trusting a lender. The reviews will give you hints about the lender’s trustworthiness and reliability. As a rule of thumb, you should also pick a lender that has a website. This means that the lender is serious and doesn’t have any secrets to hide.


By applying the mentioned strategies, you can become a responsible personal loan borrower. There should be no other way around. If you don’t apply the strategies, any personal loan will put you in a compromising financial situation. You don’t want that to happen – especially in these challenging times!

3 Things to Do Before Refinancing Your Personal Loan


When it comes to personal loan refinancing, many borrowers are still confused. Borrowers think that only mortgages and home loans can be refinanced. This is an old misconception that threw many borrowers off the right lending track. If you’re not aware of personal loan refinancing, the concept is easy to understand.  It’s like you’re renewing the personal loan albeit with lower monthly interest. While that sounds promising, there are some things you have to do before refinancing.


Have Your Credit Score Assessed


Credit score is one of the important things that will get you ahead in society. If you have high credit score, you can apply for higher loan amounts. More importantly, companies will have better product offers for you. Most lenders will only refinance your loan if you have a good credit score. Make sure that there are no financial loopholes that are dragging your score down. If you have small unpaid debts, pay it off before applying for refinancing.


Be Cautious About Loan Rates


If you’re planning to refinance your personal loan, you must observe the rates carefully. Typically, a lender’s website has an online calculator that you can use. With this calculator, you can figure out if the personal loan rate will match your financial stance. You’ll also determine if the rates are good for refinancing. Be careful around lending agents who will trick you into refinancing your loan. They may give you higher rates and you’d barely notice. Visit your previous lender first, then determine if the lender will give you a lower rate. If not, then it’s time to move forward with other refinancers.


Do the Necessary Paperwork


Refinancing barely differs from getting a new personal loan. You still need to fill out the necessary paperwork and go through a step by step process. If you’re applying in a new lending firm, you may need additional requirements. To save your time, secure your requirements firsthand. Don’t worry, the lending representative will walk you throughout the process so you’d know if there are any missing requirements. When it comes to paperwork, total patience is needed. You can also ask your friends about lenders with less strict paperwork process. This way, you don’t have to deal with detail-freak and slow lenders.


Personal loan refinancing is a great strategy that requires attention and consistent planning. Even if your interest is potentially lower, the longer term will put a dent in your budget. It’s best to multiply your income as you cover long months of repayment.