cropped-Satellite.jpg

Unsecured Personal Loans

Options for Good Credit and for Bad Credit

Are you considering a personal loan for a purchase, extra cash during a difficult time, or for any other reason whatsoever? There are many different ways to go about getting a personal loan and there are options for both bad and good credit. Here are some of those options and what you should consider.

First, you need to understand that there are two types of personal loans. There is the unsecured type which will not require you to put up any collateral. There is also the secured type where the lender will hold the title to a car or some other for of collateral until the loan is paid back.

The first option is where all borrowers should start regardless of whether they have good credit or bad credit. Go to your bank and apply for a personal loan. Make sure you explain your situation and they will see what they can do for you. If you have very good credit chances are you will be approved for some amount. If you have bad credit you might have to put up collateral or get a co signer to get approved.

Second, you should try using a company that specializes in personal loans. There are numerous companies that have a specialty in personal loans and you can even apply right online with most of them. This is great for you because it is convenient and will save you time. Most of these companies have lower requirements than banks so this is a good option for bad credit borrowers.

The third option is to use a creative way to get the money you need from a private source. There are individuals that have a lot of money out there and for the right reason they will lend some of it to an individual as an investment. You can find them by placing an ad in the classifieds or by using a website like Prosper. These individuals will usually charge a higher interest rate, but they will help you get the money you need.

The last option is geared towards bad credit borrowers, but if you have good credit and you need money fast is might work for you as well. It is called a payday loan or a cash advance. You can get as much as $1,500 and you can get the cash the same day you apply. You can go to a cash advance store and apply or you can apply right online and find out if you are approve in minutes. The requirements are very basic and just about everybody will be approved.

cropped-Satellite.jpg

Student Loan Options Case Study: Chase Student Loans

There are a number of different ways to fund a college education. The federal government offers a few loan options and an array of financial aid services for students in different situations, and there are many different grants and scholarships available. The financial aid office at your school can help you find out which of these may be available to you. After federal funding, if you still need more money to pay for your education, you need to start looking into private loans. Many different companies offer many different services, but let’s take Chase student loans as a case study.

One service Chase and many other lenders offer is to help you through the process of applying for federal Stafford and PLUS loans, for undergraduate and graduate students, respectively. Chase can offer a slightly lower rate than the standard government rate for paying back these loans, reflected not in a lower monthly payment but in fewer total payments. They can also help with student loan consolidation.

Federal loans and financial aid are often not enough to cover the cost of getting an education. Private lenders step in to make up for the rest of the cost of studying. Chase offers a couple of different private loan packages; their program is fairly standard, so it provides an idea of more or less what you’ll be dealing with.

Chase private student loans pay up to $40,000 per year at an interest rate which depends on the applicant’s credit rating. A cosigner is encouraged as this can lower the interest rates, but is not required as long as the recipient is creditworthy. Recipients begin paying back the loan 45 days after receiving the money but they do have the option of deferring payment of the principle or the principle and accumulating interest until after they finish school.

Chase Select loans are available for graduate and undergraduate students, covering up to the cost of attendance minus financial aid received (COA-Aid). These expenses must be approved by the school.

Chase also offers the Chase Medical Education Program. This is a variety of loan options including federal loans such as Stafford medical loans and PLUS graduate student loans, as well as private medical loans and medical residence loans.

As do many other lenders, Chase has lending specialists available to answer questions and process loans by telephone or by internet, and have a number of online resources, such as loan payment and cost of living calculators and borrower access to their loan history.

Chase student loans are an excellent example of what kind of plans and requirements you’ll find with other lenders, just so you have a starting point to work with. You should compare offers with multiple lenders before settling on one private student loan.