- 1 safe personal loans
- 1.1 The OppLoans Guide to Safe Personal Loans
- 1.2 How will you pay off your personal loans?
- 1.3 Financing and personal loan options for every need
- 1.4 Secure, Quick and Easy Personal Loans for Canadians
- 1.5 Fast and easy personal loans help you to get back to
- 1.6 6 Reasons to Choose Amber Financial
safe personal loans
The OppLoans Guide to Safe Personal Loans
Borrowing money is a major financial decision … and a very common one. As of the end of April 2016, the Federal Reserve Bank of New York reported that American consumers had $3.6 trillion dollars in outstanding debt. That’s a significant financial obligation for people to manage. Some manage it better than others.
To help people make better decisions about their debt, we have created this guide to safe personal loans and responsible borrowing. The guide covers the process of taking out personal loans, paying off the loan, and building financial health after the personal loan is paid off. By better understanding these issues, you can improve your financial position.
The Federal Reserve Bank of New York collects credit data. They report the following amounts of debt outstanding from 2011-2015:
Credit cards allow for revolving credit. These are loans that allow you to borrow up to a predetermined limit and make monthly payments. Credit card payments will vary depending on how much debt is revolving in addition to your card’s interest rate.
All other types of loans fall into the category of non-revolving. These are loans that are taken out at one time. When they are paid off, the borrower would have to take out a new loan to acquire additional funds rather than get more money from the old arrangement.
Economists talk about investment goods and consumption goods. An investment good is an item that will have a future benefit, while a consumption good is something that you will use up today. It is key to consider why you are borrowing: are you borrowing money to make an investment, or are you borrowing for consumption?
Borrowing money to go to school is usually considered to be an investment. It is a good use of funds because an education may increase your earning power. Taking out a mortgage to buy a house is usually considered good because you need a place to live, and a mortgage lets you prepay your housing costs in retirement. Buying a car is usually a good use of funds, especially if you need a car to get to work.
The intended use of the funds affects your interest rate. That’s in part because of how likely you are to pay off the loan. A car can get you to and from work, which helps you make money to pay off the loan. It’s also in part based on whether or not the lender has an asset to take over if you don’t pay. In the financial crisis, many people lost their homes. They could not make the payments, so the lenders foreclosed on their houses. That’s a scary risk so mortgage rates tend to be really low to keep repossession from happening.
A first step in getting a loan is finding out your credit score. The major credit bureaus — Equifax, Experian, and TransUnion — use credit scores when evaluating your loan application. These scores are collected by Fair Isaac Corporation, so they are known as FICO scores for short. The company has detailed information about how the scores are calculated and what they mean if you want to learn more about them.
A FICO score is a number between 300 and 850. The higher your score is, the better credit you have. A score below 600 usually indicates problems paying off loans in the past. Maybe you lost your job, had a personal crisis, or ran into unexpected expenses that made it impossible to meet your monthly payments. That situation may be over, but banks and other traditional lenders may not want to lend you money again.
You are legally entitled to one copy of your credit report from each of the three credit bureaus a year. Your credit score won’t be included on it, but you will see the information used to calculate your score. To get it, go to annualcreditreport.com, where you can request one report per year from each of the three major credit bureaus. If you see an error or omission, contact the bureau as soon as possible to get it corrected.
An interest rate is the price of money. The lender starts with the government interest rate (the Treasury rate) and the amount of inflation in the economy. To that, it adds the cost of servicing the loan and cost associated with risk level. A borrower with good credit who is borrowing money for something with very little risk, like a mortgage, will be charged a very low interest rate. A borrower with bad credit borrowing money without the security of a car or a house will pay more.
If interest rates in the economy go up, everyone will pay a higher rate.
Some personal loans have an adjustable rate of interest, also known as a floating rate. Adjustable or floating rates change automatically, up or down, based on the overall level of interest rates. With other loans, the rate is fixed during the life of the loan. The rate you pay is based on what the rate was when you received the personal loan. If rates go down, you may be able to refinance the loan, but otherwise, your rate will stay the same as it was when you borrowed the money.
Lending is a competitive business. There are a lot of companies out there looking to lend you money, as anyone who watches late-night TV knows full well. Lenders are competitive in three areas—types of loans offered, interest and fees, and customer service.
The lending industry is competitive enough that the rates may not differ very much for a particular type of loan and a particular credit score, but there are some differences. It’s worth taking the time to shop around, because there may be more variation than you think.
Finally, lenders differ the quality of customer service they provide. Some lenders may make the experience difficult or confusing, while with others it will be a comfortable, transparent process. You can compare ratings, or get a feel for how you are treated when you are doing your research on the loan.
Personal loans have to be paid back. Once you get the loan, you need to come up with a way to pay it off. How well you manage the personal loan can determine your long-term financial health. Think about this before you borrow money. If you have outstanding debt now, work on a plan to ensure that you pay it back with as few complications as possible.
How will you pay off your personal loans?
A key to managing your loan will be making payments on time and in full. Make a note of the due date on your calendar, as paper statements can get lost in the mail and email notices can get stuck in spam filters.
Many people set up automatic payments through their bank account. This reduces the risk of missing payments, as long as you have enough money in your bank account the day charges go through. If not, you risk adding an overdraft fee to late fees.
Of course, scheduling is irrelevant if you don’t know how much money is due. Don’t sign a loan without knowing how much money you will owe in each period. For example, it’s easy to get excited about instant credit at a department store, but make sure you know what your minimum payment will be before you sign on the dotted line.
The amount of the payment should be disclosed along with the other information that goes with the personal loan. There may be a few differences with the first payment, though. With some loans, the first payment may be due at a different time than the next payment. You don’t want to get off on the wrong foot with a new loan! (The last payment may be different, too — and it is often smaller, depending on whether you paid a little extra at any point during the life of the loan. Most lenders ask you to contact them for the payoff amount when it is time for that last payment.)
When you know what you have to pay, take the time to make a budget. It does not have to be complicated; simply make a list of how much money is coming in and how much money you need to spend on housing, groceries, utilities, and your debts.
Along with information on the loan payments and due dates, find out what happens if you miss a payment. Most lenders charge late fees, and some may tack on interest penalties as well. You could see your payment increase dramatically, and you don’t want that!
Sometimes, you run into problems paying off your loans. In a perfect world, you would have an emergency fund that you could use to cover the shortfall. You may also be able to get a temporary job or sell something that you don’t use in order to raise the funds.
If you can’t find the money to pay off your loans, contact your lenders. You may be able to negotiate a new payment plan or a late fee discount. The worst thing you can do is ignore the problem.
You borrowed money and paid it off? Excellent! There’s still some work to do.
First, check your credit report to make sure that the payoff has been reported. If you came to the loan with a low credit score, your score should increase with the loan payoff. Strangely enough, if you have a very high credit score, it may go down after you pay off a loan, as these scores are based on how well you manage the debt that you currently have. If you have no debt, then you have nothing to manage. This is not necessarily a bad thing, because lenders can see from your credit report why you have the score that you have.
Second, if you don’t have an emergency fund, start putting some of the money that went toward your debt to establishing some savings. Your goal should be three to six months of expenses set aside in a safe bank account that you can draw on if you need to.
If your debt is paid off and your emergency fund is in place, then consider your other finance goals. You can put that money to work for you.
OppLoans is the nation’s leading socially-responsible online lender and one of the fastest-growing organizations in the FinTech space today. Embracing a character-driven approach to modern finance, we emphatically believe all borrowers deserve a dignified alternative to payday lending. Currently rated 5/5 stars on Google and LendingTree, OppLoans is redefining online lending through caring service for our customers.
Ann Logue (rhymes with vogue) is a lecturer in finance at the University of Illinois at Chicago and a writer specializing in business and finance. She is the author of four books on investing in Wiley’s . . . For Dummies series and has written for Barron’s, Entrepreneur, and Newsweek Japan, among other publications. She lives in Chicago and holds the Chartered Financial Analyst designation.
We at Personal Loans are the leading loan arranger offering our services to borrowers across the country. Over the years, we have been able to support many New Zealanders with quick monetary aid.
Our deals like fast loans today and unsecured personal loans can be applied online. We at Personal Loans will ensure that you get quick access to the required cash, mostly within twenty four hours of applying for our loan deals.
We have the highest regard for your freedom of choice and leave the final decision to you. It is only after receiving your final nod on the kind of loan that you would like to get through us that we will deposit the required cash into your bank account.
All our loan deals are unique in their own ways and have been tailored to suit different cash situations. We will help you choose the one deal that suits your situation the best.
We provide highly competitive interest rates to all our customers. Our deals are all very flexible and in most cases we let you to select either fixed or floating rate options. You can also go for a mix of both.
With us, you are sure to find a whole array of loan deals that suits you best. We provide a range of loan repayment options as well and you have the option to go by either direct debit or automatic payment services.
With us, you simply do not have to wait for long to know the status of the application that you have submitted to us. We are really quick in informing about the loan status and in just a few minutes you will get a clear idea about the loan deals that we have found for you and their specifications in detail.
We request you to ensure that the loan application form is duly filled up. Our lending criteria are very simple and easy to be satisfied. That is why we have been able to enjoy a fairly high loan approval rate.
If you have any doubt about the statements made here in the web pages, you are always free to ask us straight away.
For Any Need You Might Have
Financing and personal loan options for every need
The minimum payment term and maximum payment term are 3 months and 36 months respectively. You can choose a term that fits your need and have your loan amortized over your chosen term.
This does not affect your credit score
There is no origination fee, service fee or any other fee. You can pay off your loan early anytime without penalty.
APR stands for Annual Percentage Rate, which allows you to compare the cost of credit between different loan options.
Maximum Annual Percentage Rate (APR) against any loan is 22.47%.
Monthly Cost Of Borrowing
For every $1000 borrowed for a 3-month loan at 11.95% APR, the total cost of borrowing is $9.84 and $0 in fees. This equals to interest payment of $6.66 / month.
Secure, Quick and Easy Personal Loans for Canadians
Canadians can receive safe and affordable personal loans through Amber Financial. Loans can start as low as $1,000 and go up to $50,000 regardless of your need. We have no hidden fees and offer a low fixed interest rate.
- Secure, fast, and made for Canadians
- 0 administration fee, 0 origination fee, 0 hidden fee
- Transparent terms, personalized service
- 100% simple online application
- 24/7, anytime, anywhere
Fast and easy personal loans help you to get back to
Create an account and enter your information
Upload your required documents
Your application can be processed and funded in as little as 30 minutes.
6 Reasons to Choose Amber Financial
Amber Financial provides a fast and convenient personal loan service compared to banks and traditional institutions. Using proprietary technology, we're able to provide you with a secure and easy, customer-oriented loan service.
Receive a personalized quote quickly and easily. Our process will take you no more than 5 minutes.
Your privacy is important. We are compliant to industry standards and go above and beyond to protect your personal information.
Loans are deposited directly into your bank account. Monthly payments will be deducted from your account automatically, so you'll never need to worry about missing a payment.
Absolutely zero fees. Your quote is free. We have no administration fees and no hidden fees.
Unlike many other loan services, you can pay off your loan early anytime without penalty. Your monthly payment and interest rate stay the same during your loan term.
Full disclosure of our costs, no hidden fees. Your interest rate and monthly payment do not change.
It was tough getting my finances back together, and I was kind of relying on my credit card. Amber let me consolidate my debts, and now I only have to pay one provider. It helps me keep the things I work so hard for.
Gustavo, Truck driver
Amber helped me pay for essential things I needed, as well as my credit card debt. It is simple, convenient and fast. I even got my interest deducted by referring a friend, thanks to the "Uber of Finance."
Within three days, I got the money from Amber in my bank account. I will be able to pay off my credit card in 2 years—at half the interest rate I was paying before. Now I can finally get back to the life I want.
Dave, Fitness trainee
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The minimum payment term and maximum payment term are 3 months and 36 months respectively.
You can choose a term that fits your need and have your loan amortized over your chosen term.
Maximum Annual Percentage Rate (APR) against any loan is 22.47%.
For every $1000 borrowed for a 3-month loan at 11.95% APR, the total cost of borrowing is $19.98 and $0 in fees.
This equals to interest payment of $6.66 / month.
Time to consolidate debt, take that overdue dream vacation, or buy that new ATV? No matter what life throws at you, we're here with loan options that meet your needs.
You can use a personal loan for just about anything--including debt consolidation. Many of our members use their loans for:
- Boats and other recreational vehicles
- To consolidate debt
Consumer loans are similar to personal loans but aren't designed for consolidating debt. Instead, these loans are for items that are non-essential. So, where you would get an auto loan to finance a car or a mortgage to finance a house, you would use a consumer loan to finance your recreational vehicle or buy that engagement ring you know your fiance will love.
FEATURES AND BENEFITS of personal and consumer loans
- Provides loan amounts from $250 up to a maximum of $25,000
- Terms up to 60 months
- Rates based on member's credit score
- Flexibility of loan for every size of need.
- Convenient to have choice of terms.
- Save money by maintaining good credit.
Disclaimer: Terms and Conditions subject to change without notice. Subject to member credit approval. Rate may vary based on individual creditworthiness. APR = Annual Percentage Rate
Please Be Careful!
First Liberty Loans is an online service that only provides access to lenders that have been predetermined as providing safe personal loans directly to consumers. You can apply right here online. We collect information about your bank account details, as well as employment details, and we keep all data confidential. We only use it to process your online personal loan application. Your information is always kept safe and secure when you apply online through First Liberty Loans.
Personal Loans are loans provided by independant lenders directly to a borrower.