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Should You Use a Personal Loan or Home Equity to Fund a Home Improvement Project

Personal loans and home equity are the two most popular options for homeowners who want to fund a home improvement project. Both types of loans are different and they are also provided by different lenders.

Home equity is a type of secured loan that allows you to capitalize on the existing equity of your home. Your home equity is calculated by minusing the mortgage from the market value of your home. For example, if you have a house that is worth $600,000 in the market and you still owe $200,000, your home equity will be $400,000. Usually, you can only borrow up to 80% of your home equity.

Home equity loan has cheaper interest rate because it is a secured loan. Its repayment term is longer and most homeowners take 20 – 30 years to pay it off. If your income is not stable, using a home equity to fund the home improvement project can be risky. You may lose your property if you can’t submit payment by the due date.

Home equity is recommended for big home improvement project that requires funding of a few hundred thousand dollars. Staying with the current mortgage lender is cheaper. If you refinance with another mortgage lender, you may have to pay additional fees.

Personal loans is an alternative for people who don’t have any home equity. It is an unsecured loan so you don’t have to submit your house or vehicle as security. Just like home equity, you borrow a lump sum from the lender and repay it within a scheduled term. Personal loan has shorter repayment term that last from 3 – 7 years.

Since you did not put up any collateral, the lender may be stricter when reviewing your financial documents. If you want the personal loan to be affordable, you need to demonstrate that you have a good credit score.

Personal loan can offer lesser funding than a home equity loan as most lenders only allow you to borrow up to $40,000. There are only a few online lenders that would approve a large loan amount of up to $100,000. If you are carrying out a small home improvement project, personal loans will be the best option for you.

Traditionally, personal loans are obtained from the banks and credit unions. However, nowadays, with internet technology, you can apply for a personal loan from online lender and peer to peer (p2p) lender. In personal loan, neglecting to make repayment on time can have a negative impact on your credit score. Your account may be handed over to the debt collector if you did not make payment for more than 6 consecutive months. If you diligently submit payment every month, you will be able to achieve an ideal credit score after 6 months or longer.

Personal Loan Offers from Wells Fargo Are Available In These States

Wells Fargo personal loans are available in 19 states along with the District of Columbia. You can visit the Well Fargo official site and enter your postcode to see if the personal unsecured loan is available in your state. Wells Fargo allows you to borrow a loan amount from $3,000 – $100,000 for the personal loan. Wells Fargo offering $100,000 in loan amount makes them generous compared to the standard loan amount of $35,000 offered by most online lenders.

The interest rate ranges from 6.99% to 23.99% and the repayment can be spread out over 5 years. Short repayment term is available for certain loan amount. Wells Fargo unsecured personal loans don’t have any prepayment fee so you don’t have to pay any additional fee if you pay it off before the loan term. Origination fee does not apply to the unsecured signature loan. The two fees that they charge are late and returned payment fees.

Wells Fargo has a fast approval process and they often send a decision within 15 minutes. If you get approved, you can expect them to deposit the funds in your bank account in the same business day. On their website, you can find a calculator which you can use to calculate how much you are to pay each month. This can help you to decide whether it is affordable to take out a personal loan with Wells Fargo.

To qualify for a personal loan with Wells Fargo, your credit score should be in the range of 660 – 749. In addition, you must possess a debt to income ratio of not more than 40%. The length of the credit history and your loyalty to Wells Fargo are among other factors that will be taken into account when determining the loan approval decision.

If you have a checking/portfolio account with Wells Fargo, you will get a small discount on the APR interest rate. Wells Fargo personal loan is suitable for those who want to consolidate their debts. If you are using the loan for debt consolidation purpose, you have the option to make repayment to the creditor directly. The funds from the personal loans can also be used for other personal purposes for example, paying medical expenses, home improvement, education and utility bills.

If you are a new customer, you have to visit one of the physical branches of Wells Fargo to apply for the personal loans. Old customers can apply for the unsecured personal loans at the official website. They will carry out a hard credit check when you submit the application. The hard credit check can cause your credit score to slightly drop when they request your credit profile from the credit bureaus.

How Do Most College Students Qualify For Student Loans

Many college students have to get a loan to pay for their college tuition fees because their parents don’t have enough income or savings to support their studies. It is common for students to get their parents or family member to cosign their student loan. Getting a cosigner or necessary when the person attending the college does not have enough payment history or a credit score that is good enough. It is estimated that 90% of all private student loans are cosigned.

The cosigner you get must have a good credit score as well as an established credit history. With the help of a creditworthy cosigner, you will be able to easily qualify for a student loan with the low-interest rate. You can either sign up for one of the student loan provided by the Department of Education or take out a student loan from a private lender. There are 3 main government student loans including Perkins, PLUS, and Stafford loan. Cosigner is usually not needed when you apply for a federal student loan. Government student loans are for students who can demonstrate financial needs.

You can apply for the private student loans if you don’t meet the criteria of the government student loans. To get approved for a private student loan, you must meet several requirements including good credit score, good income, and a citizen of the USA. The average income of students who get approved for the loan is $25,000. Summer jobs that you take up are also counted as income sources.

If you apply without a cosigner, you will pay an interest rate above 10%. Students without cosigner get higher interest because they are considered as as belong to a risk category by the lender. Some of the leading private student laon lenders are Discover, U-fi and Sallie Mae.

When shopping for a student loan, you can use a loan comparison search engine to compare the loans. The loan comparison search engine will outline the fixed/variable interest rate, estimated monthly payment, and the eligibility criteria of the student loan. You can use an amortization calculator to calculate the total cost of the loan.

Before applying, you should first use an amortization calculator to calculate how much you need to pay back each month. Many private lenders lets you get pre-approved by filling an online form without hurting your credit scores. The purpose of filling in the online loan request form and getting pre-approved is to find out the interest rate. Once you know the interest rate, you will be able to calculate the total cost and monthly payment of the loan. You will then be able to compare the student loans and find out which one is the most affordable.

Which Personal Loan Providers Offer Loan Terms Over Five Years

Many people are looking for personal loans that can give them more than 5 years to pay off. A loan that has a long term tends to charge higher interest rate but it can make it easier for you to come up with the funds for making repayment. The following is a list of the top lenders that offer personal loans with repayment term of more than 5 years.

1. Discover
Discover offers personal loans with a maximum loan amount of up to $35,000. The interest rate range for Discover personal loans is in between 6.99% – 24.99%. The loan term it offers for personal loans is in between 36 – 84 months. No interest is charged if you refund the loan within a period of 30 days. There is no origination fee or early repayment fee but there is a late fee charge of $39. Discover offers fast cash deposit within 1 business day after approval. They accept soft inquiry so you can fill in the online application to get a free estimate interest rate. Discover loan is available to residents in 50 states. Repayment can be made several ways including phone, check, or directly deducted from your account. The minimum credit score you need to have to get approved for a personal loan from Discover is 660.

2. Lightstream
Lightstream is a branch of Sun Trust Bank and they offer personal loans with loan amount in between $5,000 -$100,000. Lightstream gives customers the option to choose a loan term in between 24 – 84 months. Depending on the loan term and loan amount, the interest rate can be in between 3.09% – 12.14%. The lower interest rate is offered for customers who choose the auto pay option. If you did not choose the auto-pay option, you will be charged with an interest that is 0.50% higher. LightStream loan cannot be used to refinance another loan that is also applied from LightStream. You can expect to get fast response for the loan application during business hours.

3. Sofi
Sofi offers a loan amount in between $5,000 – $100,000 and fixed interest rate range in between 5.49% – 14.24% for auto pay option. They are offering 0.125% discount for loyal customers who apply for a second loan. There are three loan terms including 3, 5, and 7 years. Sofi offers fast preapproval and they don’t charge an origination fee. Sofi personal loan features unemployment protection which allows borrowers to login into their accounts and pause payment temporarily until they find a new job. Sofi loans is open to residents in 47 states and the minimum credit score required is 660.


In conclusion, above are three lenders that approve loans with a loan term of more than 5 years for personal loans. Signing up with lenders that offer a longer loan term can benefit borrowers that have some financial difficulties and need a cheaper monthly payment.

Installment Loan Lenders in Oklahoma, Which Credit Unions Have the Best Promotions

Credit unions in Oklahoma offer personal loans with very low interest APR rate that are easy for the local residents to qualify. Unlike bank, the application process for the installment signature loans is less complicated and the fund is released faster. The following are the top 4 credit unions in Oklahoma offering one of the lowest APR interest rates for the signature personal loans.

1. Tulsa Federal Credit Union

Tulsa Federal Credit Union is a credit union founded in 1943. Tulsa Federal Credit Union offers a signature loan with APR interest rate starting from 6% and a repayment period in between 18 months – 48 months. Borrowers will have free access to online and mobile banking. Automatic payment and ATM payment options are available for those who want to make payment for their signature loans conveniently.

2. Tulsa Teachers Credit Union (TTSU)

Tulsa Teachers Credit Union (TTSU) is a credit union established by a few teachers in 1934. It is one of the largest credit unions in Oklahoma with a membership base of 120,000 members and a net worth of $1.7 billion. TTCU is an accredited member of Credit Union National Association and the Cornerstone Credit Union League. TTCU credit union offers unsecured closed end personal loan with APR interest rate that starts from as low as 6.99%-7.99%. TTCU signature loans can be repaid within 2-4 years.

3. True Sky Credit Union
True Sky Credit Union is a non for profit credit union located in Oklahoma City. Membership is open to 8 counties in Oklahoma. True Sky Credit Union offers two types of unsecured loans including 7-4-7 loans and signature personal loans. The 7-4-7 loan is like a payday loan where you can get access to fast cash without having to pay exorbitant interest fees. With the 7-4-7 loan, you can borrow up to $1,000. The 7-4-7 loan features an APR interest rate starting from 7% and a repayment term of up to 48 months. True Sky Credit Union also offers personal loans of up to $10,000.

4. Red Crown Federal Credit Union
Red Crown Federal Credit Union is a non for profit credit union first founded by 10 members on the 8th February 1938. Red Crown offers unsecured signature loan with APR interest rate starting from as low as 7.50% and a repayment term in between 36 – 84 months. The repayment term varies depending on your loan amount for example, loan amount of $0 – $4999 is to be repaid within a period of 36 months and a loan amount of $5,000 – $9,999 must be repaid in a period of 48 months. Membership of Red Crown Federal Credit Union is available to residents in a number of counties including Tulsa, Mayes, Pawnee and Rogers.

What Short Term Loans Should You Consider for Paying Off your Taxes

Short term loans like peer loans or P2P loans and fixed/variable rate personal loans can be used for paying your tax bill. Zero interest credit card can also be used as a type of short term loan for settling your tax payment if you can finish paying back before the end of the intro period. However, you should check with your credit card to see if it can be used for paying tax as some credit card companies that do not allow customers to use the card for this purpose.

You should avoid using short term loans like payday, cash advance and car title loans to pay for your tax. Payday and cash advance loans have high interest rate which makes it very expensive especially when you are already facing problem in paying your tax. Auto title loans is also not safe because your car can be repossessed if you fail to make repayment by the due date. Both payday and auto title loans have short loan term which is about 30 days from the time the loan is approved.

When shopping around, you should find out whether the interest rate of the loan is higher than the cost of setting up an installment loan with the IRS. Short terms loans charge an average interest rate of 6-21%. The lowest interest rate is reserved for those with excellent credit score. If it cost more than taking out an installment loan with the IRS, it will not be worthwhile to apply the personal loan for purposes of paying your tax.

Before applying for the loan, make sure you find out if it has a fixed or variable interest rate. The advantage of a fixed personal loan is that you will be charged with the same interest rate throughout the loan term. Short term loans that charge a variable interest rate features interest rate that fluctuate from time to time. There is a cap in the variable rate loan which puts a maximum limit on the fluctuating interest rate. If possible, you should find a short term loan with fixed interest rate and monthly payment. This will make it easier for you to handle the repayment with no surprises in the increment of the interest rate.

Short term loans from banks, credit unions or a reputable lender is great for people who owe less than $1,000 on their tax bill. It is important that you commit yourself into making repayment for the loan on the due date as neglecting to do so can harm your credit score. It is safe to use unsecured loans to pay off your tax because you don’t have to provide a collateral. Nowadays, you don’t have to go to the bank to apply for a personal loan. You can easily qualify for a personal loan in a few days by simply signing up online.

What Options Can Consumers Who Live in Hawaii Choose for Unsecured Loans

If you live in Hawaii, you can apply for an unsecured personal loan from the bank and credit unions in Hawaii. Bank loans can take a few months to get approved and you have to submit a lot of paperwork to show the bank that you can pay back the loan without any problem. A more convenient method for getting a loan in Hawaii is by applying for online signature loans. The online signature loans can be used for all kinds of purposes including car repair, medical expenses, and home improvement. Online signature loans can be used to build up your credit history so that it is easier for you to get approved for a better loan with lower interest rate in the future.

A signature loan is a type of loan that requires only your signature to get approved for the loan. The loan amount that you can borrow in an online signature loan is in between $500 – $5,000.It does not require you to put in any collateral to get approved for the loan. Online Hawaii signature loans is suitable for you no matter what type of credit score you have. The only requirement is that you have a steady job for the past few months.

You will have to provide your pay stub as a proof that of your employment. Other documents that you need to bring are tax returns, photo ID, and W-2 form. In addition, you must have a valid checking account with 9 digit routing number that is in good standing in order to get approved. The loan amount you are allowed to borrow in a signature loan vary across the states. With many lenders offering signature loans, you most likely will be on a payment program where you must pay a fixed amount every month.

The fastest way to apply for signature loan is to apply it at the loans search engine. After you fill in the personal information in the online application form, the search engine will start to look for eligible lenders that are suitable for you. A representative will contact you if one of the lenders decide to approve the loan.

Another type of unsecured loan option in Hawaii is peer to peer loan. Peer to peer loan is funded by individuals who have the funds to invest in your loans. You can post your loan request on the peer to peer loan site and people who are interested in funding your loan will post a bid. If you are a student, you can apply for a student loan to fund your education. Student loans often offer better features than personal loans such as lower interest and longer grace period. The only requirement you need to get approved for a student loan is to be a student at a recognized college.

A Guide to Securing an Installment Loan up to $25,000

Most lenders will approve a $25,000 loan if you can prove that you have been employed in the past months on a job that pays a salary sufficient to cover the monthly loan payment. Nowadays, it is not the case that you need to have a perfect credit score above 700 to be qualified for a loan. Even if your credit score is average, you will still be able to find a lot of loan offers that you can be eligible for.

The first thing is to find out your credit score because your credit score is an important factor that the creditor use to determine your interest rate. You can learn about your credit score by requesting for a free credit report from the credit bureau. If your credit score is above 600, you will have a chance of getting approved for the loan because many lenders are willing to approve loan at this credit score range. You should improve your credit score and reapply the loan if your credit score is rated poor which means it is below 600.

You must perform comparison between different lenders for the $25,000 loan that you want to apply. Every lender has different interest charges and fees so you must calculate to find out signing up with which lender will make the loan most affordable. The creditor usually has a minimum and maximum interest charges.

They calculate how much interest fees to charge the borrower by taking into account many factors. The loan amount you have requested and the repayment period you choose play a role in determining the loan’s interest rate. The lender will check your credit score and take a look at your employment history before considering to approve the loan.

Usually, borrowers with good credit score will instantly be approved to qualify for the lowest interest rate. You should choose a repayment period in between 3 – 5 years if you want to take advantage of the best interest rate. Some loans offer a loan holiday for a few months before you actually start to repay the creditor. If the lender decide to approve the loan, they will email you and ask you whether you want to accept the loan. They will only send the loan amount after you respond with an acceptance to the loan.

After you receive the loan, you must make a commitment to repay the loan every month. Not repaying the loan on time will result in you getting charged extra fees. Non payment of your loan for several months may force the lender to hand your account over to the debt collection agency. If you are serious about building your credit score, you must be financially discipline and diligently set aside the sum of money to meet the monthly repayment.

How Do You Set a Budget During the Holidays to Avoid Long Term Debts

Spending money without any budget planning in the Christmas holiday season can be dangerous and lead you to fall into the debt trap. If there is a long list of stuff that you want to buy, it is a wise step to organize them into an excel sheet and add up the total cost.

When creating a budget for your holiday expenses, you have to take into account your priority expenses for example living cost and bills. You must calculate the exact amount of bills including credit cards, loans and utility bills so that you know how much bills are due for you to pay in that month.

Taking a look at your expenditures in the excel sheet allows you to find out your spending patterns and identify the areas that cost you most money. For example, some people like to spend money on movie tickets in the weekend or buying junk food. You can minus these expenses since you don’t necessarily have to spend money on them.

Some people who don’t have finance responsibility spend without thinking whether they are going have enough money to cover their living cost or pay the bills. This forces them into a situation where they have to obtain a loan. When taking out a loan, many people would tell themselves that they will surely pay the bill in full by the due date. However, when the due date arrive, they delay the bill payment which results in the debt growing larger because of the penalty fees.

When you are late in making payment for your bills for one month, there is a tendency that you are going to be late in paying the bill for another month. This can cause you to develop a bad habit to make late payment for your credit cards bills and cause your credit score to drop more and more. It is advised that you also set aside a small portion for your savings instead of spending all the leftover money from your salary.

It is best to use cash for your holiday shopping instead of relying on the credit cards. The problem usually happen when people rely on their credit cards to do their holiday spending. You should start saving money for the holiday season starting from now onward.

To save more money, you can try cutting down unnecessary expenses.
For example, instead of dining out, you can cook all your meals at home. You only need to drink water so there is no need to spend money on beverage like juices, coffee, and tea. If you are spending a lot of money on your cell phone package, you can choose a different package where you are only limited to the essential features.

What Financial Mistakes Do Most College Students Make

College years are the years when young people start to find themselves need money to pay for education and there are also many things that they would like to buy. Students should become familiar with the common mistakes that people in their age make so that they don’t repeat the same financial mistakes. The following are the top 4 financial mistakes that college students make.

Many college students lack self control when coming to using credit card. They charge their card for almost all their purchases without caring about their ability to pay back the debt. Most students only make the minimum repayment for the credit card so it can take them more than 10 years to pay off the credit card debt. Credit cards may help the student to rebuild his credit if the balance is paid in full every month. Paying the balance in full every month can help you to save money on the interest charges.

There are lots of college students that lack discipline and neglect to pay the credit card bill on time. Every-time you are late in making repayment, you will get charged with penalty APR and late payment fees. If you are late in payment for 6 months, your card will be handed over to the debt collection company and this will leave a negative record on your credit report for 7 years. So, if you have decided to own a credit card, make sure you responsibly make the repayment on time.

Many college students never record down their expenses on their budget planner book. It is easy to compromise and not record down your expenses on a budget planner because you have light financial burden and not yet have a family to feed. The problem with most students is that their spending habit is not consistent month after month so keeping track of your expenses on the diary is the best way to save money. All you need to do is to estimate your monthly pocket money and get rid of unnecessary expenses. Without proper budget planning, you will end up spending more money than you have and then don’t have any leftover money to pay your outstanding credit card debt.

You may find your college loan insufficient to pay for your tuition fee after the next year because of the inflation and the increased in the tuition fee. Therefore, you should never use the money from your college loan for your own personal expenses as it will leave you with even lack of the money to pay for the tuition fee. Usually, the parents will help out in paying the difference that you are lacking in the tuition fee if it is not a big amount so you must never use the money from the loan inappropriately.