Don't Take Out a Secured Loan If You're Likely to Default on It!

More and more people are now in need of a loan and sadly things are only likely to get more difficult over the next couple of years so it might be a good idea to take a look at the two basic types of loans that are available and decide which would be best for you.

If you have collateral of any kind then you will have to decide between a secured loan or an unsecured one, but if you don't have any collateral then you'll have no alternative but to take out an unsecured loan.

It's obviously much easier to get a secured loan because the lender is going to take what you put up as security if you don't pay back the loan on time, but that's also one of its major disadvantages and it's a major thing to take into account.

If there's a strong likelihood that you'll default on the loan then don't put up your house or car or anything else as collateral! If however you have a job that you're likely to hold onto and you simply want to improve your home or to take a needed vacation then go for a secured loan every time because it will be a whole lot cheaper. Before you start checking out the different secured loans that are available make sure that your collateral is a good bit more than the amount that you want to borrow and bear in mind that most real estate is decreasing in value right now.

Although unsecured loans are more difficult to get, they are in no way impossible even if you've had a bankruptcy or just lost your job but the downside is that the interest will be considerable higher. If you have a good credit rating and what looks like a secure job then an unsecured loan won't be all that hard to get and the interest won't be that much higher than for a secured loan. If you're unemployed or had a recent bankruptcy however then be prepared to pay a lot more interest and don't take the loan unless you really have too.

Finally, even if you're in a panic and a need a loan really quickly don't take the first one that's offered to you but at least try to compare two or three of them. And if you don't need a loan right now then check out some ways of reducing your debts or improving your credit both of which will be a big advantage if you do decide to take out a loan at a later date.

http://home-loan-help.org is one of a small network of sites and each offers a different kind of help. They have information on loans, credit repair, debt reduction and financial advice so check them out for free.

Government Assisted Consolidation Loans

Do you have some federal student loans that are choking your monthly budget? Then the U.S. government may have just the cure with their Government Assisted Consolidation Loans. They are a federal program designed to merge all your debts and bills into a single payment.

This means, that if you have several monthly payments or a number from several different loans, you can make things easier by consolidating them into one single loan to pay off the total debt. This offers you an easy to manage payment, and in most cases, at a lower rate of interest.

The official term for this government program is called Direct Consolidation loans and they are provided to U.S. citizens by the Department of Education.

These Direct Consolidation loans are funded directly by the U.S. government instead of a private lender or financial institution. They allow borrowers to lock in low interest rates and extend their repayment period beyond that provided by the original loan. This results in lower monthly payments for the duration of the new consolidated loan.

How You Qualify For The Program

As stated at the beginning, you must have outstanding federal student loans. Then you must qualify based on your need which is evaluated on the basis of your income, family size and the total outstanding balance of your federal student loans.

Some Benefits Of The Government Assisted Consolidation Loans:

* The ability to defer payments up to 3 Years
* No payments for the first 6 months
* No loan origination costs or fees for consolidation
* Extended loan payment period of up to 30 years.

Do You Qualify For Direct Consolidation Loans?

The fact is that not everyone is eligible for these federal student consolidation loans. The only way to be sure is to do your research. A great place to start is http://www.studentloanconsolidationreports.com a popular site on student loan consolidation programs and their pros and cons.

Online Loan Services

Not so long ago, borrowing funds from your local bank meant a few sessions in front of a loan officer's desk. You would have to answer questions, provide information, and work your way through a stack of paperwork. After several days, if the bank approved your application, you'd have to make another trip to the bank to dot the i's, cross the t's, and sign on the required lines.

Enter the Internet. Today it's possible to apply for a loan online at any hour of the day or night and choose from a wide array of respected financial institutions. And, if claims made at certain sites are accurate, you'll have lenders fighting for the privilege of loaning you money. However, although the Internet introduces new loan possibilities that are flashier and more interesting than a banker's office, the information you'll need to provide and the requirements you'll have to meet are pretty much what they have always been.

When we entered "loan" into the Yahoo! Web directory, we received more than 1,000 topics that contained more than 3,000 sites. Other search engines, such as MSN Search, WebCrawler, and GO.com, provided a similar number of results. Thus, the problem facing those people looking for loans online is not a lack of information, it's sorting through everything that is out there.



Govern Your Search. For getting background information about loans, a good site to start your search with is FirstGov (http://www.firstgov.gov). The Federal Trade Commission and other government agencies post a number of informational sites that acquaint the consumer with borrowing and credit issues. It's good, solid advice, so you shouldn't overlook it. Get to know your rights, learn which programs might be geared to your specific situation, and discover what you need to watch out for.

If you have a specific loan in mind, you'll save time by going directly to a site geared toward your needs. For instance, searching for "student loan" rather than just "loan" lets you bypass general sites and go directly to educational loans. If your need is more short term, try searching for "payday loan" and you'll be directed to sites that specialize in cash advances.

In addition, don't overlook any advantages your background may provide. If you're a veteran, be sure to check out VA home and education loan possibilities. If you're a woman who owns a small business or a member of a minority group, there may be loan possibilities designed especially for your situation.

Research power. The true value of the Internet, however, lies not only in the availability of loan sites but also in opportunities for research. Loan sites can be a wealth of information because many provide glossaries of terms, calculators for "what if" scenarios, and FAQs (frequently asked questions) that alert you of important considerations.

For example, at Bankrate.com (http://www.bankrate.com), we found concise listings of the present rates for various types of loans, as well as comparisons of rates and fees that several institutions offer. The range in rates can be surprising. In fact, at eStudentLoan (http://www.estudentloan.com), we found fees for a 10-year, $3,000 loan varying from zero to $387, with the total cost of the loan going from $6,587 to $7,261.



Edit Your Credit. Because your credit record can be the primary determinant of loan acceptance, many sites, such as QSpace (http://www.qspace.com), offer you the opportunity to view your credit history. QSpace does charge for this service; its Single Report (delivered online) costs $7.95 while the Comprehensive Report (delivered via postal mail) will run you $29.95. The main difference between the two services is that the Comprehensive Report gives you results from three major credit bureaus while the Single Report gives you information from just one.

Credit histories detail activity for up to seven years, and include such information as late payments, accounts placed on payment plans, and inquiries into the accounts. If there are no delinquencies, the report will say so.

Viewing your credit history is a good idea. Everyone has probably heard a horror story about erroneous information causing horrendous complications. Eight dollars for the peace of mind of knowing your report is accurate is money well spent. Likewise, if the report leaves a bit to be desired, forewarned is forearmed.



Applying Online. If you've decided an online application is for you, what can you expect? Although hundreds of sites are available, the information they require is going to be essentially the same. After all, any lender will want to know if the amount of money you're asking for is reasonable and if you can pay it back.

One of the most popular online loan sites is LendingTree (http://www.lendingtree.com), even though it is not a lending institution itself. Instead, LendingTree is designed to connect borrowers with bankers. Once you've provided some basic information about the loan you want, LendingTree forwards the data to a group of lenders who will advise you about their programs. There is no charge for the service, and the site states that you will receive results in two business days. "When banks compete, you win," says LendingTree's slogan, and the prospect of lenders vying for a borrower's business is certainly enticing.

Like LendingTree.com, most online loan services ask you to fill out a brief application or questionnaire so the service can find the right loan for you.

If you visit LendingTree and proceed with an application, you will first need to tell the service what kind of loan you want. There are several possibilities fitting the general classifications of loans, and the questions you need to answer will vary depending upon the type you choose. To get started, choose a loan type from the column that runs down the right side of the home page.

Answering the questions on LendingTree's "Q-form" (a series of questions that you need to complete in order to request a loan) is not especially difficult. You'll fill out the same basic information that your neighborhood bank would require if you were applying for a loan there; mostly, it deals with your assets and liabilities. One nice feature of the Q-form is that if you need to stop partway through, LendingTree saves your place. The service assigns you a numerical password that will let you log on to your partially completed form and take up where you left off.

Once you're done, you'll have an opportunity to review your information and make any corrections prior to submitting your Q-form. You can access online help via e-mail or you can call LendingTree for clarification. When you're ready, a click sends your Q-form on its way.

What you have done is authorized LendingTree to pass your information to as many as four financial institutions. You've given the lenders permission to check your credit history, your employment history, and to respond via LendingTree. Lenders may or may not treat your information as an application for credit. In other words, you may need to provide answers to the lending institution all over again before it will consider giving you a loan. A lender also may contact you to discuss your Q-form before it makes any offer.

When offers come, you'll have the opportunity to compare terms and rates. But to make intelligent assessments, you need to know you are comparing apples to apples. If terms seem vague or if language is unfamiliar, you should get some advice before making a commitment.

The direct route. LendingTree's advantage is that your loan query is routed to as many as four lenders, but the disadvantage is you're not in charge of the process. You may want to eliminate the middleman and go directly to a lender of your choice.

E-LOAN (http://www.eloan.com) makes home, business, and auto financing available through Wells Fargo and its associated banks. As with many loan sites, there may be states from which applications cannot be accepted. At E-LOAN, you can view present interest rates and quickly determine the monthly payments for specific loans. The site advertises that all loans carry no hidden lender fees, and advisors are available via a toll-free telephone number (888/356-2622).

For example, if you're looking for an auto loan and want to compare rates, click the Search Rates link under the Auto Financing heading. In the box on the right side of the page, you would enter the amount of money you want to borrow; the state in which you live; and the make, year, and mileage of the car you want to finance. In a few seconds, you'll see what your monthly payments might be for loans with finance terms from 36 to 72 months. A short application form is available on the same page; fill it out and you'll find out if you're approved in a few hours.

If you use Intuit's Quicken software to keep track of your finances, you may find Quicken Loans (http://quickenloans.quicken.com) is the right fit for you. At this site, you'll find information about home loans, as well as a quick general credit assessment and a 30- second miniature loan application.

The application is basically an opportunity for you to invite contact from a Quicken Loan representative. Once you've completed and submitted the application, a Quicken loan specialist should call within one business day. This site's strengths include good explanations in plain language and plenty of ways to get help.

Some Internet lenders exist mainly in cyberspace while other sites lead to the online presence of brick-and-mortar institutions. This situation can bring you the best of both worlds. A good example is Countrywide (http://www.countrywide.com), a lender with locations throughout the United States. You can fill out your application online and follow that up by meeting with a real person in a real building. Head over to the site's Branch Locator(http://branches.countrywide.com/default.asp) and enter your ZIP code to find the location nearest you.

EQuickLoans (http://www.equickloans.com) handles various types of home loans and invites you to complete a preapproval form at no cost or obligation. The form is not an application, but it will generate a call from a loan specialist within 24 hours. You can then complete the actual application over the phone. There was less information available on this site than on others we looked at, but the preapproval form takes less than five minutes to complete and makes eQuickLoans a speedy way to get things started.



The Old vs. The New. Obtaining a loan has long been something of a sacred trust. Many consumers won't be comfortable substituting keystrokes for the handshake of a living, breathing banker. And, if you belong to a credit union or have a long-standing association with a bank or savings and loan association, don't let the lure of the Internet blind you to possibilities in your own backyard. But for those individuals who want to embrace online opportunities, the Internet awaits.

by Michael M

How to Make a Secured Loan Application

It is now so easy to make a secured loan application, you can do it from your own home. Many lenders allow borrowers to apply for loans directly on their websites but independent loan brokers can offer independent advice and a choice of different loans from different lenders. They generally make the comparisons between different loans easy for people to see by using a table. This way, potential borrowers are able to 'compare apples to apples.' One loan can initially look better than another until you consider comparable terms and conditions.

One-stop-shop loan websites usually provide an online calculator to help you work out what your monthly payments will be for different interest rates and loan terms. By spending some time playing around with one of these calculators you will be able to determine what interest rate and fixed term you will need to get a monthly payment you can afford comfortably.

This knowledge can guide you when making your secured loan application. It means you will apply for a loan with the lowest possible interest rate and request a fixed loan term that will give you the best monthly payments for your needs. Of course, there are limits to your ability to get a loan term and interest rate that will give you the outcome you want. However, you are far more likely to achieve this or get close to it if you plan ahead by using an online loan calculator.

Even before you are ready to submit a secured loan application, it is a good idea to read through the online form to know what information you need to have on hand. This will save you time later. For a comprehensive loan application you will need to provide income and expenses information that can be verified upon request with payslips and rent receipts or mortgage information as well as details about your current employer and perhaps even employment history. You will also need to provide information about the security you are offering for the loan. If you are still paying a mortgage on the property you are offering as collateral, you will need to provide information about the lender for that property.

However, many so-called online applications are really just an initial contact with the lender. Once they receive your secured loan 'application' a loans officer will contact you to talk you through a real application. By spending a little time browsing some loan websites you can find out which applications are comprehensive and which are simply indicating an interest. With the more comprehensive applications, quick conditional approval is often advertised. This means that your application is approved subject to documentation supporting the claims made in the application.

Remember when you make a secured loan application you are agreeing to the lender putting a lien on property to cover the loan amount. This means that if you default on the loan you will have your property seized and sold to pay the debt. It is therefore important to be sure of your ability to make your loan payments in full on or before the due date every month. If you have a history of late payments or financial difficulties, you may need to reconsider whether this sort of loan is in your best interest.

Points to Know When Looking for Loans

Looking for loans can be a tedious ordeal at the moment given the financial climate we find ourselves in. There are measures you can take to ensure you give yourself the best chance of finding the best deals on loans around.

The first and most important one is to shop online where you can compare deals from the leading lenders without having any pressure put on you by staff trying to push a deal on you. You can take your time and compare all the deals and find the most suitable deal for you whilst reducing the stress of finding a loan as you can search in your own time.

There are a few things to look out for when choosing a loan; one of the most important factors is the interest rate that is charged. This will affect your monthly repayments and you need to check the interest rate is not too high. Interest rates will vary from lender to lender, the amount you want to borrow, whether its unsecured or secured loans you are looking for and your personal circumstances.

Always check whether there are any set up fees, these fees often occur when applying for a secured loan rather than an unsecured loan. Double check these fees so you do not receive a nasty surprise once you have accepted the terms. It is also worth checking any extra fees that can be incurred on loans, such as missed payment fees or early redemption fees.

Although shopping online will save you time and hassle, you do not want to waste time finding a deal that you think suits you only to find out that they do not offer the required amount. Most unsecured loans will have a limit of £25,000 whilst secured loans start from £3000 so check whether the amount required is available. The same applies for eligibility for a loan; always check the small print because it is here where you will find the hidden details. Do not waste time looking for a loan you can not have.

Whether you are looking for secured, unsecured or personal loans, make sure you fully understand the details of the contract before you sign because once you have signed, there is no going back. Think carefully about the type of loan you need and the amount you want to borrow and try not to get yourself in to unnecessary debt.

Looking for loans is easier when shopping online where you can find good deals on personal loans and more. Remember to check the lending criteria before signing and consider whether you need secured loans or unsecured loans.

What is a Loan Underwriter Anyway?

When you first apply for a loan and the information on the loan application has been validated the loan is ready to be underwritten. The underwriter can be a company or a person. The loan underwriter has the responsibility for issuing a mortgage and analyzes your creditworthiness and set the loan amount. If the underwriter is not completely satisfied they will request more documentation that they feel is justified to help the file become more complete.

The loan underwriter carries the final responsibility of making sure that the mortgage company is protected from any probability of default which could lead to foreclosure. Not only does a loan underwriter have the responsibility of being aware of all the underwriting guidelines put also all the policies and procedures.

Determining the borrower's monthly income is one of the most important components. The borrower's income can come from several different sources, but it has to be supported by sound documentation that shows the likelihood of continuation. If the borrower is self-employed the underwriter will average the last two years from the borrower's federal tax returns. The underwriter will also want the year-to-date earnings from your profit and loss statement.

After the underwriter is completely satisfied with their finding, you will receive your approval. At this time you are clear to close and the closing will be scheduled. One thing you must remember is your credit will be checked again by running a credit report to make sure that you have not incurred any new debt that could affect your loan qualifications. You could be thinking that everything is fine and you are on your way to closing and you find out that your loan has been cancelled and there will be no closing.

For the Very Latest, Articles and Tips on Unsecured Loans, Personal Loans, Business Loans Visit us at http://www.unsecuredloanshelp.com

Things To Know Before You TakeThat Loan

It is crucial you learn a lot of things before you go and take a loan. Even you may be urgently pressured for a loan; a wrong mistake due to ignorance could put you in permanent debt. I have summarized 7 things below that are more important.

1. What type of loan do you intend to take and why? You might feel you know what you need the money for but you need to research well. For example, you may need a car. But car loans differ. You could decide to go for a long term car loan or a payday loan to pay back the loan when you are paid your salary. There are indeed different types of loan such as auto loans, commercial and business loans, construction loans, real estate loans, refinancing, mortgage loans, secure loans, personal loans, student loans and lots more. Choose the type more appropriate to your situation and do research on it.
2. How much time would you like before repay? This depends on you. I believe faster is better. The sooner you repay your loan the better. Take the time to decide on what time is comfortable for you before you sign any contract.
3. Avoid any complex loan repayment system. Avoid any complex loan repayment system. Go for a scheme that pays a fixed interest rate over a particular period of time. Run away fast from compound interest.
4. Time to source for the lending company. Get searching for lending companies. If you find one or even two don't stop searching. Continue searching. Get as many as possible so you have many options. You might surprise yourself with the results. The more companies the better. This will give you more confidence in the negotiation. Meet them with them if possible or call them then tell them you will get back to them. Don't feel pressured in anyway to sign anything. Take your time to compare rates.
5. Time to get a lawyer. When you find the company you want to work with. Go through the contract with a professional, read between the lines, and be on the look out for any hidden or double meaning in the loan contract. Some companies actually charge you if you repay the loan earlier than scheduled. Get a professional to go over the contract with you before you sign.
6. Time to set a personal repayment goal/ action plan. What are your sources of income? Your salary may have been what you used to get a loan, agreed but what other options could you have to make extra money. You may be saying to yourself if I had other options why would I have gone for a loan in the first place? What I would say to that is simply we need bulk money for different reasons. However, the little opportunities around us can turn to a big one if managed properly. Take the time to look around you for small opportunities for extra income and set have a plan ready or a bank account to just drop it in. That way you will be able to repay the loan as quick as possible. Create the plan and stick with it. Be strict with yourself. It's only temporary, after a while the payment would be completed and you would be free of debt.
7. Avoid taking another loan. Do not take another loan. I personally do not support this. Concentrate on repaying one loan as soon as possible. That is why you should apply for as much funds as you need when you are going for the loan in the first place. Double loan double problems. But if you must, follow the rules above too with the second loan.