Monthly Archives: December 2015

Key Factors To Consider When Contemplating A Personal Loan

If you are going to take out a personal loan, there are several factors that you should keep in mind before applying for a personal loan. While personal loans unlike many other loan products are easy to apply for, and for many people are easy to obtain, taking out a loan is a serious endeavor, and could affect for your credit and your finances.
Taking out a loan in and off itself will not negatively effect your credit, at least if you pay back the loan properly, making all of your payments on time. Personal loans are like any other loan when it comes to your credit standing, it is all about your payment history. Where you stand the risk of ruining your credit is if you start to miss payments, are late on payments or quit paying your loan altogether. So it is not the loan in and of itself that is the risk, but rather any factors that could prevent you from honoring your contractual obligation to repay your loan.

Here is several things to ask yourself before applying for a loan:

Are you only applying for the amount you need?
Every loan has interest, so you should only aim for an amount you actually need, without going over. Lenders often try to get you to apply for more than you need, as its is much more profit for them to do so. Yet the more you borrow the higher the risk is to you that you will run into financial problems. Often times people try to justify amounts higher than they need, so try to think about your loan amount with logic and without emotional response.

Do you really need that loan?

While we love personal loans, and we think personal loans when used correctly can financially empower cash strapped people, we also believe that personal loans should only be used when absolutely needed. If you are dealing with an unexpected auto repair, an emergency or a medical need than chances are yes you need that personal loan. Yet if you are taking out a loan to get the latest X-box and 15 new games then you might want to reevaluate whether or not taking out a loan is the ideal solution here. Loans are serious endeavors, and should not be taken out lightly. Any number of other serious things can happen while you have this loan out, such as losing your job, accidents, a lay off or other factors that can lower your income, and your ability to repay your loan.

Is it an emergency?

This is directly related to the above question. Emergencies are the best time to make use of a loan. For anything else you should really take some time to mull it over. If for example you are taking out a loan to help cover the household budget, a loan will not help you, in fact it will just make matters worse. For everyday expenses you should be able to cover that with just your normal everyday income. Instead you should work on either lowering your expenses, or raising your income up. Sadly in the U.S 69 percent of personal loan users take out their loans to cover everyday living expenses.

Tips For Removing Collection Accounts From Your Credit Report

I have been often asked if it is possible to have a negative removed from your credit report, one that you actually owe, if you pay off the debt with a collection agency. This is known as a pay for delete deal. While some people will tell you that this cannot be done, it can indeed be done. Most creditors and collection agencies will not do this, unless the collection agency has purchased the debt.
One way to do this is to tell them you are going to dispute the amount of the debt, that you do not believe you owe that amount. Tell them you are also planning to dispute the debt with the credit reporting agencies, and are considering legal representation. Then you tell them you are willing for the sake of convenience to settle the debt for less than owed, provided that they remove the debt from your credit reports. If they accept this deal, they can and will remove the debt from your record. They agree to this based on the premiss the debt may not be valid, even if it likely is, the dispute process can drag out, and you and they have reached an amicable settlement to resolve the matter at hand. This is done every single day.
There is another way to have a negative item removed from your credit report. If the collection agency has violated the Fair Debt Collection Practices Act, you might have recourse for whats known as a “tradeline” deletion. You can negotiate with the collections agency to drop your complaint for the breaking of the Fair Debt Collection Practices Act in return for deleting the entire account from your credit report via a tradeline deletion.
In the event that there is anything inaccurate about the debt information on your credit report, and you legitimately owe the full amount, you can indeed have it removed with no problem, once the debt is paid off by the creditor or collection agency. While paying or settling the debt is not mandatory to correct inaccurate information, your creditor is more likely to co-operate fully and in a reasonable time frame. Your creditor will draft a document stating the debt is incorrect, and forward this to the credit reporting agencies. Once the credit reporting agencies receive that proof, they will remove the information from your credit report, as if it never happened.
If you should decide to pursue an agreement with either the original creditor, or a collections agency, be sure to get any agreement made in writing. Creditors and collection agencies are famous for making verbal agreements, then not following through with them. Make sure to write down the names of everyone you speak to about the matter, and ask for their extension. When trying to negotiate the removal, if it is not going well with the person you are speaking to, ask to talk to a supervisor, as they often have the authority to make such decisions. If you are denied you can always try again after a period of time has passed, such as one month.
Stay tuned to Installment Loans Quick for timely articles on credit and lending topics, our goal is to help match you with the right lender for any loan related financing needs in 2016.