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Personal loan quotes can be obtained by contacting a lender, typically a bank or credit union, and asking what the current interest rate is. A personal loan quote can vary within the same lending institution depending on whether or not the funding requires a security collateral item, or it is an unsecured program. Quotes are usually higher for loans that do not require collateral pledged in case of default. Information can be received via email, telephone or person-to-person. Some lenders advertise rates on their marketing material, but a consumer should be cautious to believe these numbers.

Many advertised personal loan quotes are dependent upon excellent credit from the borrower, and security pledged as collateral. A personal loan quote that is advertised may only apply to a certain program with a specified amount and repayment schedule. Lower interest rates are normally given for longer terms of agreement. If a borrower believes that their quoted rates may not apply to their specific agreement, they should speak with the lending department manager to confirm the information and numbers they were given.

Rates provided by financial institutions can change each day. In order to stay current, it is recommended that a borrower review electronic publications for the most up to date personal loan quotes. Borrowers who want to receive the best and most accurate information should have a high credit reporting score. If the borrower has high balances on their credit cards that are close to the limit, it will impact their credit score. It is known that the most effective way to quickly improve a credit score in 30 days is to pay down all credit card balances to at least 20% of their limits. This can actually improve a borrower’s credit score by up to 30 points and will allow for a lower interest rate personal loan quote.

Once the borrower receives the funds offered through a personal loan quote, it is extremely important that they don’t waste money frivolously on insignificant items. Christians have a responsibility to control their money in a smart, effective and organized way.

1. Personal loans can come in either a lump sum or revolving line of credit.

True
Funds distributed in the form of a lump sum usually have a fixed interest rate, while lines of credit have variable rates. Different lenders have varying terms, conditions and eligibility requirements. It is best to shop around or research on the Internet to find out what type of financing options they are best suited for.

2. Personal loans are a type of secured loan.

False
They are unsecured in nature, meaning that no personal belongings are needed as collateral. The applicant borrows on their power to repay the balance. Interest rates on this type of funding will vary depending on the borrower’s credit.

3. Obtaining your credit report before applying for personal loans is wise.

True
Interest rates can always be negotiated. Knowing a credit score can give the borrower the confidence to get a lower finance rate on their personal loan. Obtaining the credit report also gives the borrower the ability to correct any misinformation before applying for personal financing. The credit report can be obtained through a request made to any one of the three major credit reporting bureaus: Equifax, Experian, and Tran Union.

4. Personal loans are to be used only to pay off your credit card debt.

False
They do not have to be used to pay off credit cards. There are no restrictions on the end use of such financing, so the borrower can use the money for whatever purpose they like. Many people take out these types of loans to take care of an unexpected expense, make a big purchase, or to have available credit in case of emergencies.

5. Personal loans can be a way to practice good financial management.

True
Proverbs 27:23-24 – Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation?

The major difference between an unsecured credit loan and secured credit loan is the use of collateral. Secured financing is based on collateral, a tangible asset that lowers the risk for the lender. Two common examples of secured financing are home mortgages and automobile financing. When house payments are missed, the mortgage holder may begin foreclosure proceedings against the homeowners. When car payments are missed, the financing company may repossess the vehicle. With the ability to reclaim tangible assets like these, the lender has the opportunity to recoup at least a percentage of the borrowed funds. Additionally, most people have a strong aversion to having their homes sold out from under them or having their vehicles repossessed. Therefore, borrowers have a powerful incentive to keep up with the monthly payments. An unsecured credit loan is not based on collateral, but on information that the prospective borrower enters on the lending institution’s application.

Two other differences between a secured and unsecured credit loan are the lender’s level of risk and the interest rate that the lender will charge the borrower. In the financing industry, these two factors correlate to one another and to the use or non-use of collateral. Obviously, the lack of collateral increases the risk for the lender that the borrowed money may not be repaid. Should the borrower miss payments, the unsecured lender doesn’t have a house to foreclose on or a vehicle to repossess. Instead, the lender has to resort to threatening letters and phone calls, turning the account over to a collection agency, and/or getting assistance through court system. There are laws that creditors must observe when trying to collect on an unpaid debt. Consumers who are receiving calls and letters from creditors or collection agencies are advised to familiarize themselves with the provisions of the Fair Debt Collection Practices Act. Because of the increased risk of not having collateral to secure the debt, the interest rate on an unsecured credit loan will almost always be higher than the interest rate on an “all other factors being equal” secured loan. A higher interest rate equates to higher monthly payments to repay the debt. However, the monthly payment can be reduced by lengthening the number of months that the funds need to be repaid.

An unsecured credit loan is sometimes known as a signature loan because it is based on the strength of the applicant’s signature — in other words, her reputation for meeting monthly obligations. A credit card account can also be considered as a type of unsecured financing. These are common types of loans in many households. However, there is another type of unsecured financing that can quickly spiral out-of-control even for financially-conscientious people. More commonly known as payday advance loans, these lenders charge fees that calculate to extremely high annual percentage rates. Though such a harsh admonition isn’t given for those who pay usurious rates, it’s unwise to get caught up in a financing situation with a high APR. In recent years, legislation has been passed in many states to limit the amount of interest that a payday lender can charge. However, borrowers should still beware of borrowing money through a payday advance company. This type of unsecured credit loan should only be used as a last resort.

In general, financial institutions require less paperwork and documentation on unsecured loans than they do on secured financing. Anyone who has filled out an application for a credit card knows how short the application is and how quickly it can be approved. But applying for a home mortgage, home equity line of credit, automobile financing, or another type of secured loan can mean providing all kinds of paperwork to the lender. For this reason, sometimes it is quicker and more convenient to apply for an unsecured credit loan than to go through the hassle of making copies of income tax statements, pay stubs, and other required documentation. However, for the vast majority of people, the highest amount that can be borrowed through unsecured financing will only be a few thousand dollars. People with poor credit histories may qualify for loans amounting to only a few hundred dollars.

Financial institutions will have differing criteria for determining whether or not to approve a prospective borrower’s application. Whether or not the applicant is applying for a secured or unsecured credit loan, one important factor will be the applicant’s FICO score. A higher score reflects a history of meeting financial obligations as well as residential and employment stability. An applicant with a higher FICO score will most likely be able to obtain financing with more favorable interest rates than someone with a lower score. In addition, the higher score may qualify the applicant to borrow more money than someone with a lower score. Individuals are advised to obtain their FICO scores and copies of credit reports before applying for any type of financing. A free report can be obtained from each of the three major credit reporting agencies once a year. Consumers are advised by financial experts to obtain the free reports on a regular basis so that the reports can be reviewed for accuracy. There will almost always be a small fee to obtain the FICO score, but it is worth the small price to have this information before applying for financing.

Personal debt consolidation loans will allow debtors to go from having several debt payments per month to one lower monthly payment. There are many lenders who will be able to offer a variety of these lending options. If the consumer already has a lender in mind, they can begin there and see what kind of personal debt consolidation loan programs that lender has. Those who cannot find a first choice can look on the Internet, a great place to search for consolidating opportunities. Plus, there are many websites which offer free quotes and estimated payments to make selection of the right lender easy and convenient.

There are many companies that specialize in helping people with lending needs. Many people run into problems paying the minimum payments on all their personal debt, such as credit cards and other types of loans. Personal debt consolidation loans are there to help with this problem. This could keep debtors from ruining their credit by enabling them to have one lower monthly payment. A personal debt consolidation loan that is paid on time will keep one’s credit score up. Lenders like to see that consumers are making payments on time, regardless of the amount paid.

Instead of ruining one’s credit by being late on payments, it would be wise to investigate options for consolidating. Personal debt consolidation loans alleviate the stress of having so many different payments looming over the debtor and allow them to have only one payment to make. Consolidating can save one hundreds of dollars per month and also reduce the interest paid out. A personal debt consolidation loan have helped many people avoid filing bankruptcy by preventing them from falling behind on payments and creating a new payment schedule that is much more affordable.

Those who want to consolidate should seek out all options before making a choice of lenders. It’s best to search for personal debt consolidation loans with low interest rates and reasonable payment terms. Borrowers should be faithful in payments and save a portion of the savings each month from obtaining a personal debt consolidation loan so that they will not end up in financial distress again. Every spender should try to learn from past mistakes and move forward to be a better steward of the resources that God has provided.

RealEstate-Calc (http://realestate-calc.com) and REIcalc (http://reicalc.com) are new websites specifically geared to advanced online real estate and mortgage calculation tools. These two websites, designed by Analytical Finances Inc, are intended to aid the small to intermediate investor in numerically understanding the financial implications of owning real estate. Most online calculation tools provide limited utility and are merely marketing strategies employed by mortgage companies. With the current mortgage crisis, the general public could benefit greatly from improved tools and education on the subject of property ownership and mortgage financing.

Everyone should be reassessing their real estate holdings at least once annually. Homeowners and investors should be 1) performing a five year forecast (at the very minimum) of their property holdings and 2) should be reviewing their mortgage costs for possible refinancing. Here are two obvious reasons: 1) most people have the majority of their net wealth allocated to their personal residence, and 2) real estate is truly a fascinating mechanism for wealth accumulation.

Determining to refinance your mortgage may require a more sophisticated approach than most mortgage calculators provide. Most online mortgage calculation tools lack the sophistication necessary to be of much use and are so seriously lacking in their complexity that they are nearly financially ineffectual.

Determining the economic benefits of refinancing depends on many factors, i.e. 1) what is the rate on your existing loan, 2) what is the current rate at which you can refinance, 3) what will it cost you to refinance, 4) how long do you expect to hold the property hence hold the loan, and 5) what is the time value of money. RealEstate-Calc and REIcalc can help guild you through a step by step approach in the application of these variables.

When creating any financial calculator or model there is a trade off between complexity and simplicity versus effectual and ineffectual and striking the right balance is the key to being a good analyst. “Mathematical modeling”, “manipulation of numeric data” and “displaying numeric results” are all part of an art form. To think otherwise would produce less than superior results.

There are more types of calculators than just mortgage calculators. There are real estate calculators that can assist you in determining the cost of buying, selling and holding real estate. They can help you determine the tax consequences of selling a single family or multifamily property which is either investment property or primary residential property. Perform a 5, 10, 15 or 25 year forecast of rental property, multifamily property or primary residential property.

There are business plan calculators. These types of calculators are useful for those interested in starting a small business. No business plan can be complete without a financial forecast and numeric framework. Many people considering starting a small business prefer to overlook the utility of a business plan; however those that require funding through more conventional sources often are required to have some type of minimum financial plan in hand.

Try the mortgage calculators (http://www.realestate-calc.com/Mortgage-Calculators.asp).

Perform a 5 year forecast:

rental property (http://reicalc.com/reim/models/forecast5-notyetAcquired-rental.cfm)

primary residential property (http://reicalc.com/reim/models/forecast5-notyetAcquired-primary.cfm)

multifamily property (http://reicalc.com/reim/models/forecast5-notyetAcquired-both.cfm)

Estimate the tax consequences of a sale:

rental property (http://reicalc.com/reim/models/sale-rental.cfm)

primary residential property (http://reicalc.com/reim/models/sale-primary.cfm)

multifamily property (http://reicalc.com/reim/models/sale-both.cfm)

Please note that the financial tools on RealEstate-Calc.com and REIcalc.com are not intended to be a substitution for seeking professional legal, professional tax, and professional financial advice. These financial tools should not be used by anyone to make material financial decisions and should solely be used for informational purposes only. Users should develop their own financial tools for the purpose of forming their own conclusions and are encouraged to seek professional advisement from all of the following: 1) a lawyer, 2) a tax specialist and 3) a financial planner.