Category: Loans

What is the Best Alternative to a Traditional Bank Loan?

In today’s time, loans have become a necessity in many people’s lives. As a result, the loan industry is constantly evolving and developing around the whole globe. Unexpected expenses can occur anytime, and loans are a great approach to get money and cover those expenses. However, applying for a loan and receiving the funds is still challenging.

Receiving funds from a traditional bank can be a difficult task. You have to visit banks, their different departments and deal with various personnel to apply for the loan. First, you’ll have to follow their lengthy procedures, and furthermore, you will typically have additional possibilities. Chances are your application gets rejected, and all your efforts go in vain. So, what is the solution?

Looking for online cash loans Canada is the correct move. Many online lenders offer easy loans where you can receive funds quickly and easily. People now have started adapting these loans to fulfill their money requirements.

You might think, what’s this fuss about online loans? We are here to explain everything about it.

What exactly are online loans?

Online loans are funds provided by online lenders to borrowers. The major feature of these loans is you don’t have to deal with any bank to get money. Instead, online lenders offer you the loan amount from their pockets and receive it back when you repay it. The lenders offer you various types of short-term loans that you can use to pay medical bills, university fees, repairs expenses, or any other requirement.

When you decide to apply for the loan on the lender’s website, you’ll have to provide them with your documents for verification. The documents may include your bank details, ID, and your income source details. If the lender finds you eligible for the loan, they directly transfer the loan amount to your bank account.

How to apply for an online loan?

The best thing about online loans is, you can apply for them while sitting at your house. In addition, online lenders offer you hassle-free loans to make your money borrowing easy.

Here are the steps you need to take to apply for a loan online – 

Find a trustworthy source

Many online lenders and financial institutes are interested in offering you loans. However, you can do a little research to find a lender with good customer history and service. As they all have different terms, select one that you find suitable for you. Don’t forget to ensure their reliability by checking their physical address and certification.

You can also go through third-party verification. Check their ratings and reviews to know what people say about them. This whole process helps you find a lender that will be able to help you according to your requirements.

Fill the application section

Once you decide which lender to get a loan from, start with your application. The whole process takes place online so, the application process won’t be a trouble for you. Lenders provide a variety of loans such as payday loans, short term loans, personal loans, or instant cash loans.

Select the loan you want to apply for and go to their website’s application section to fill in the details. Ensure to fill in the correct details as mistakes can delay the process. The lenders may ask you to submit some of your personal information, such as address and income source.

This information helps them know your credibility and decide whether you’re eligible for the loan or not.

Fill instant bank verification section

Lenders require your bank account information and account activity to verify your transactions. It enables them to assess your repayment capacity. Previously, applicants had to collect account information from their banks and deliver it to lenders by email or electronic documents.

But now, online lenders have simplified the process for applicants with the most up-to-date technology, instant bank verification (IBV). In this process, you do not need to collect your bank account information.

Instead, you have to fill in your bank details in the IBV section. It enables lenders to get access directly to your bank account. Then they can review all transactions and make sure whether to lend you the money or not.

Don’t be concerned; bank verification is completely secure. Lenders can only access your account information and cannot control or misuse it.

Wait for the funds

Let the lender evaluate your application when you’ve finished it and wait for the funds. The advantage of online loan applications is that lenders start reviewing them as soon as they get them. Their process may take 2 to 4 hours. If they find your application valid, the lender will transfer the funds directly to your bank account within just a few hours.

Which are the most popular online loans?

Unsecured Personal loans

Personal loans are applied for a number of purposes, including wedding expenses and debt consolidation. In addition, most personal loans are unsecured, which means you won’t have to put up any collateral, such as your home or car if you default on your loan.

Payday loans

Payday loans are short-term loans that are required to be paid back by your next payday. States govern payday lenders differently, so the amount of money you can borrow, the fees you pay, and the time you have to repay your loan may differentiate depending on where you reside. In this loan, you’ll need to write a post-dated check or permit the lender to deduct the amount you borrowed on your next salary automatically.

Payday alternative loans

Some federal credit unions offer a payday alternative loan, which is a short-term loan. A PAL is intended to be less expensive than a payday loan. Payday alternative loans are available in sums ranging from $200 to $1,000. They feature lengthier repayment terms than payday loans, ranging from one to six months instead of the normal few weeks.

Secured personal loans

To qualify for a secured personal loan, you must provide some form of collateral, such as a car or a certificate of deposit to secure your loan. Secured loans offer the lowest interest rates. Because a secured loan has an asset backing it up, the lender may consider it less hazardous. A secured loan may help you save money on interest if you don’t mind pledging security and are confident in your ability to repay your loan.

What are the benefits of online loans?

You will get the funds quickly

One of the most significant advantages of short-term loans is that, unlike regular banks, they provide you with immediate funds. Long application and approval processes are not required for these loans. People who need money instantly can apply for a short-term loan and receive funds in a matter of hours. However, you must meet the lender’s requirements and be eligible for the loan.

There is no need for collateral

Other types of loans may require collateral, but most online loans are completely unsecured. You are not required to deposit any of your assets up as security with the lender. These loans are for people who want to get started with a loan but don’t have any valuable assets to put up as collateral.

Repayment methods are simple

Online lenders generally provide you with a small sum of money. As a result, after you acquire the loan and use it to cover your emergencies, repaying it will not be a hassle. These loans are available in six-month or one-year installments. You can deposit the installments on a regular basis with your monthly income.

A wide range of options

There are numerous lenders available that provide loan money with different conditions. However, most of them provide flexible terms and simple payment options. You can compare all and choose the one that suits your needs. You can also use the loan money for a variety of purposes, such as purchasing new gaming equipment or other expensive items.

Can you apply for a loan with a bad credit score?

Traditional banks generally don’t prefer people who can’t provide a strong repayment commitment. So, if you don’t have a good credit score, securing a loan can be challenging. On the other hand, online lenders provide loans to people even with bad credit. Instead of your credit score, they ask you for other documents to assess your repayment ability.

However, you must match their conditions of a bad credit score cash loan. Here are some methods that can help you get a bad credit loan from an online lender.

Show your income evidence

Even if your credit is bad, a steady salary can help you secure a loan. If you have a second source of income in addition to your work, the lender may be more receptive to your loan application. You can offer your income information to the lender. They can accept your loan application easily if they discover that you have stable work and a consistent income.

Apply for a small amount

If you ask for a large loan amount with a low credit score, you will be seen as a high-risk candidate. Lenders will not want to risk their money. Thus your application may be turned down. On the other hand, applying for a small loan amount can help you out. Lenders accept loan applications when the amount of loan is minimal. In addition, small loans come with easy and convenient repayment methods.

Get a co-applicant or guarantor

Your friend, colleague, or any relative can also help you secure a loan. You can apply for a co-applicant loan with a person with a maintained credit score. Thus, the lender will be assured that if you fail to repay the loan, the co-applicant will be able to do so on your behalf.

Also, if you bring a guarantor, they can take the guarantee that you will repay the loan amount on time. When lenders notice that your co-applicant or guarantor has a solid credit score, they are more likely to lend you the funds.

Factors that affect your loan eligibility

Age

You must be between the ages of 21 to 58 years old. Your age helps the lender know if you have a sufficient number of working years further. In addition, this helps them evaluate your credibility and repayment ability. If your age does not match the eligibility conditions, your loan application may be affected.

Income

You should match the lender’s minimum income condition to get a loan from them. Your regular income will indicate that you are eligible to repay the monthly installments.

Repayment ability

Lenders typically look at your monthly loan repayment history, including the installments on your new loan and previous EMIs on other debts, to see if they are within 50% of your net monthly income. Those who exceed this limit have less probability of obtaining an online cash loan.

Current debt details

When you pay off any existing loans, such as home loans and vehicle loans, the lender will ask for the loan’s information. The lender will use the information and facts to determine your creditworthiness in terms of repaying your debts.

Current location

Generally, online loans are applied from the location where you live. For example, if you are a resident of the USA, you have to mention the USA in the application. The lender will provide you with the money if they are also registered with the same location. You can’t apply for an online loan to another country’s website.

Long-term job security

A personal loan is generally granted if you have steady work. For security and credibility, a lender will look at your years of work experience. As a result, if you have stable employment or business, the lender will approve your loan right away.

Debt-to-income ratio

If your debt-to-income ratio is too high, your loan application may be denied. For example, assume you earn a good salary but spend most of your earnings on debt installments. This factor will influence your short-term loan eligibility. As a result, it’s best to maintain your debt-to-income ratio below 50%.

Bottom line

Online loans are one of the most convenient ways to receive funds. Online lenders are a good option if you need money quickly and don’t have time to complete bank procedures. Their services make your loan application easy, and you can get the money without putting in much effort. If you’re looking for a loan, go for the above option and receive the funds just within a few hours.

How To Buy A Truck With Bad Credit

Poor credit may feel like an additional load, but it does not have to make purchasing a truck hard work. There are vast numbers of pickups on the road today, and not all of their drivers got at the back the wheel with perfect credit scores. Here are some beneficial pointers for buying a truck with bad credit, including how to save money and time.

Try boosting your score

Consider improving your credit score prior to you apply for financing. Fixing errors included in a credit report can assist, but you can also try measures for instance, paying off overdue credit balances, and correcting any bad habits that were emphasized in your reports.

Check your credit

Credit score is a huge factor in most auto lending decisions, both in regards to whether an application is approved and what rate may be provided. Your score is based in part on the information contained in your credit reports, so check those reports for errors that may limit access to a loan and the most excellent terms, and dispute them if needed. You can also request for a free copy of your reports from the major credit bureaus.

Build a down payment

A down payment can be a good thing for all parties involved in a loan and will be a requirement in many cases. Money up front could reduce your potential loan amount and financing costs while decreasing lending risk for the creditor. However, if you do not have much or any cash for a down payment, you may still be eligible for a loan.

Know your trade-in value

A trade-in can be used in addition to or on behalf of a down payment and offers the same benefits. Look up the trade-in value of your current vehicle, if you have one, you can add it into the truck-buying equation and discuss a fair price at the dealership.

Read More: Tips for Truck Trailer Financing in Mississauga

Think about a co-applicant

A co-applicant is a beneficial option to think about when you have bad credit, particularly as trucks are usually more costly than cars. Adding a creditworthy co-applicant means you are applying for a joint auto loan for which two sets of income can be considered by the lender. That can enhance your chances of approval and, if approved, might get you a larger loan amount and better rate.

Estimate a loan amount

Use calculators to guess what you might be able to pay for as a monthly payment and total loan amount and, to help stay on budget. Down payment and trade-in amounts will be practical here – if you have both just add them together and enter the number into the down payment field. Adjusting loan term, down payment, and APR will allow you to see how the loan amount and monthly payments change, and what may work best.

Get preapproved

Give yourself more control in the purchasing procedure by getting your auto loan arranged prior to visiting the dealer. Once at the dealership, preapproval allows you to focus on choosing the right model and negotiating a great deal on cost. You can apply for a loan online from home, work or your mobile device with no anxiety. It takes just minutes and you will get an immediate decision. If approved, you can get multiple offers customized to your requirements. Just choose the best option, print your documents and go shop with self-confidence.

Think about add-ons in advance

Whether you intend to modify your truck or are interested in a service contract to keep it functioning smoothly, keeping these items will increase the total price tag. Plan in advance and decide whether you want to make space for the price in your loan amount.

Find a great truck

With truck financing preapproved, you are free to enjoy the best part – selecting your vehicle. If approved, visit the chosen dealership listed in your loan documents or use dealer locator to find another. Most of the leading lenders have relationships with 15,000 auto dealerships across the country that are able to show customers select, high-quality vehicles meeting standards for age, mileage and financing. The streamlined process means RoadLoans customers can apply and get on the road the same day.

Buy a truck with bad credit and no hassles

The process of Bad Credit Truck Loans and Financing is simple when you are armed with the correct knowledge, and part of that is selecting the right lender. You can search for companies that accept applications from consumers with all types of credit, including those who have been through repossession or have a discharged bankruptcy on file, and has assisted thousands of customers into their chosen SUV, car or truck.

Understanding Bad Credit Score

Varied credit reporting bureaus and lenders use varied ranges to explain credit tiers. The FICO model utilizes the following classifications: A Poor credit score is 300 to 579, while the Fair category includes the array from 580 to 669. Customers with ratings from 670 to 739 are believed to have good credit, and those with scores from 740 to 799 are regarded very good. Those with scores from 800 to 850 are considered exceptional.

Some scoring models use a variety of 250 to 900, but the 300 to 850-point range is more common. Whether an individual borrower has bad, good, or outstanding credit is up to every lender. The FICO credit score model believes any score under 670 to be considered bad credit. The terms deep subprime and subprime are also used to explain credit scores on the lower end of the scale. Prime and super prime borrowers have scores at the top of the series.

Why does it matter?

Prospective lenders use credit scores to not only find out whether to decline or approve your auto loan application, but also to set the loan terms. Those terms comprise the amount they will lend to you, the interest rate charged, what down payment they will need, and the length of the loan they will provide. While the average length of auto loans is climbing, borrowers with awful credit should not expect to meet the criteria for the longest lengths.

Why can banks and other lenders accuse consumers whose credit is already bad like high interest rates? It may not seem fair, but lenders can show borrowers with low credit scores are riskier to lend money to. Most default on their loans than those with higher scores. Lenders cost that additional risk into the cost of the loan in the form of higher interest rates.

Keep yourself posted

Your lender or bank will offer several loan documents when you apply for bad credit vehicle financing. It is really necessary that you know the loan terms and read all the paperwork. Only after guaranteeing and reading that the terms listed on the paperwork match what the auto dealership verbally agreed to should you endorse the agreement.

The Bottom Line

Purchasing a car with bad credit can take some work. In addition, most of these loans have a moderately higher interest rate. By taking measures to reconstruct your credit score and repair your personal finances before your next car purchase, you can avoid the financial blow apparently. When you are all set, go with a dependable, appropriate and affordable bad credit truck finance option to buy the truck or SUV of your dreams.

Tips for Truck Trailer Financing in Mississauga

For many individuals buying a car is considered one of the biggest decisions they will have to make in their lifetime. Imagine the degree of complexity involved for businesses when purchasing a truck or a fleet of trucks for their growth and operations. From light-duty to heavy-duty trucks, tippers etc., there are plenty of options to choose from to suit your business needs. They must also keep in mind the after-sales service of the vehicle, including the financing and lease options.

Below-mentioned is things to keep in mind when buying a truck:

What is the purpose of the truck?

Before you purchase the truck, you must determine its purpose. Is it for transportation of perishable goods and cargo? Or for long-haul shuttling. Not all trucks are the same, they are for different purposes, and as a business, you must identify that before making a well-informed decision.

How many loads are you looking to transport?

After you identify the use for the truck, the next step is to determine how much cargo are you looking to transport. When making this decision, you must bear in mind the safety issues, the maximum load that can be transported, and the impact it can have on the vehicle. Adding cargo above and beyond the limit can result in frequent wear and tear of parts, resulting in higher maintenance costs.

After Sales Service

An important component to remember before making a purchase. The dealership you may potentially buy the commercial vehicle from must have reliable and consistent after-sales service. The breakdown of your truck can lead to a loss in revenue. To avoid this, having a dealership that prides itself on its after-sales service is a bonus.

The size of the engine

When purchasing a truck, businesses need to take into account the size of the vehicle’s engine. If you’re looking to make short-haul commutes, then a 4-cylinder engine is perfect for getting the job done. However, if you are looking to transport heavy cargo, or make long-haul commutes, then trucks with 5, 6 and 8-cylinder engines are the preferred choices. Keep in mind, the size of the engine will determine its usage.

Size of the cabin

Commercial vehicles, including trucks, are generally used for long-haul trips and transporting a sizeable load. Before you make a well-informed purchase, you must consider the cabin size of the vehicle. A 2-door drive can comfortably seat two or three adults. You also must keep in mind the length of the bed in the cabin. Sizes generally range from 5 feet up to 8 feet.

Check all the safety features of the truck

Almost every truck has basic safety features like seatbelts and front airbags. Before making a purchase, you must thoroughly review all the necessary safety gears to protect your driver, the vehicle and the cargo in the unfortunate event of an accident. You must go through all the safety standard guidelines and the regulatory compliances.

Identifying the right dealership

When buying a truck or a fleet of trucks, you must identify the right dealer that suits your business needs. The dealership must have dedicated representatives that can cater to your queries quickly and efficiently. A committed department makes all the difference between a reliable dealership and a mediocre dealership. They will guide on the financing options, the various models etc., making it easier for small and medium-sized businesses to make a more well-informed decision when buying a truck.

Be aware of all your financing options

The crucial component when purchasing a truck is the financing options of the vehicle. Purchase by cash, purchase by partial payment, credit purchase, or a business contract hire are some of the various finance options to consider. It is vital to narrow down the dealership or check with the lending institution if there are any pre-approved vehicle financing choices available. The smart decision is to increase the flexibility of your business and decrease the cost.

Take the truck for a test drive

With a wide range of truck alternatives available for purchase, you should do your necessary due diligence and request the dealership for a test drive. Through the test drive, you can examine the wheels, brakes, gears, as well as its manoeuvrability by driving it through turns and curves. For ultra-modern trucks in today’s day and age, you can check the advanced and automated features of the vehicle.

Regular Maintenance Required

If you don’t maintain your truck regularly, it can become a liability rather than an asset. Whichever model or make of truck you buy for your business; you must ensure that regular servicing can lead to lower maintenance costs. Hence, identify a dealership that not only has a dedicated technical support team but also keeps you updated on your next truck service.

When it comes to truck trailer financing in Mississauga, you keep the above-mentioned in mind before purchase. The truck you purchase for your business must be easy to maintain, compliant with all the regulations, has good resale value, and be smooth to drive on the road.

How to Find the Best SME Loans

Your company is currently from strength to strength. He plans to expand his business and possibly diversify into another workgroup. But all your plans are saved for lack of money. You will soon realize that you need a small and medium loan to move on to the next phase of the business. But applying for a loan is easier than approving a loan application already. Here are ways how to find the best SME loans in Singapore.

Do your homework

You can claim more than one million rupees, but what is the cost of your loan? Find out before proceeding with your loan application. Your eligibility is calculated based on your income, business plan, credit score, and other factors. You can find out your eligibility after starting an initial meeting with a loan administrator at your preferred lender. Also, look for credit institutions that are subject to credit expansion for companies like your company.

Clean your credit history

This is an important step to follow before applying for a loan. The credit institution will verify your credit history and calculate your credit score before continuing to examine your loan application. From the more careful settlement of pending outstanding debts (including credit card bills) or settle the refund of them if it is not yet. If your company has a good payment history and there are no other payments pending, your credit score will be good.

Improved cash flow

The main area affected by all credit institutions is knowing if your company has a solid repayment capacity. If your cash flows are irregular, it is time to organize them before applying for a small and medium size loan. Therefore, you may need to simplify the billing and collection processes for your business to receive regular cash flows. One way to do this is to stimulate advance payments: this is useful when dealing with clients who pay in a cycle of 45 or 60 days.

Explore an existing relationship with the lender

If you already have a relationship with a bank or a financial institution, it is likely that the latter will offer a loan to your SME. You may have received a loan from a lender before, or have a checking account and a savings account at a local bank for several years. Opportunities for a well-known lender to lend you more.

5 Things You Should Know Before You Plan To Cover The Costs Through Wedding Loan

Getting married anytime soon?

The most important thing about the wedding is how you’re going to cover the costs. And if you’re planning to take a wedding loan to cover the costs then hold on and give a heed to the 5 necessary things to consider. According to the survey by the Knot, the national average cost of a wedding is $33k. But you don’t have to match that figure to have an awesome wedding; instead, you can make your wedding a wonderful experience at any budget and without going for a wedding loan.

There are 3 key strategies to follow:

  • Fix a budget and stick to it
  • Set priorities
  • Start saving as soon as you say those 3 magical words

We share with you 5 things to consider before you plan to cover the costs of your wedding through a wedding loan.

5 Things to consider before you go for a wedding loan:

1. Wedding loans- what is it?

In general, a “wedding loan” doesn’t exist and all you can do is just take a personal loan for your wedding. Most people either choose to go for a credit card purchase or a wedding loan. In either way, you are kicking off your marriage with a future of debts.

2. How much money does a wedding loan offer?

Okay, if you still want to opt for a wedding loan then you would want to know how much money you can get with such a loan. The loan amount can range from $1000 to $50,000. There are lots of online companies which offer a loan without any prepayment penalties such as Upstart.

3. Process and documents required to get a wedding loan

If you’re planning to take a personal loan to cover up your wedding costs, then there are a couple of things you need to consider. How eligible are you for the loan and what factors influence your affordability?

Here’s what you need to get a personal loan to cover your wedding costs:

• A good credit score and rating

The first thing that would affect your loan affordability is your credit score. How?

Your credit score is a number that defines how you manage your finances, debts etc. This number is calculated based on the following factors:

  • Your payment history
  • Your debt history and your current debts
  • What type of credits you have
  • For how long your credit accounts have been used
  • Your credit limits and how much you’re using

In general, having a score above 700 is considered a good credit score. Not sure what is your score? There are lots of online calculators to know your credit score.

• All other requisite documents

Apart from your credit score, you will have to produce all the necessary documents to apply for a loan such as:

  • Your proof of income
  • Bank statements
  • Any debt statements such as mortgage, student loan, home loan etc.

The institution where you apply for a loan might have specific requirements, qualification etc. You need to find it out from that institution for the details.

4. Should you go for it?

As in the case when you don’t have enough cash to cover the wedding cost, you opt to go for a credit card or a personal loan. Be it anything, you are starting your new phase with a debt-full future. And thus, the decision should be made by discussing with your partner as its going to affect your financial decisions after marriage. It’s a call to be taken by both of you whether you want your phase to begin with a financial crunch just after you come back from your honeymoon. If you choose to have a financially balanced future, then there are alternate ways in which you can have a wonderful wedding at the cost you want.

5. Are there any alternate ways to cover the costs?

Let us have a look at the alternate ways available to cover the cost of your wedding without opting for a wedding loan or credit card:

  • Best thing to do is get married when you’re well prepared not only emotionally but financially as well. Take time and start saving for the big day
  • Have an out of season wedding or a Saturday wedding
  • Cut costs on a photo shoot, décor, cake, guests etc.
  • Wedding location & reception: Pick a municipal park, beach, a backyard theme etc. as the big day location.
  • Choose a simple food menu in place of exotic cuisines
  • DIY options for car décor, cake, and other essentials

Summing up:

Budgeting for your wedding can be an arduous task. But instead of going for a wedding loan, you can always consider other ways to save costs and still have a dream wedding.