- 1 where can i go to get a loan
- 1.1 Where Can I Get a Loan to Start My Own Business?
- 1.2 How Can I Pay for Legal Fees I Can't Afford?
- 1.3 Where Can I Go to Get a Mortgage? – Mortgage Lenders 101
- 1.4 What are the different types of mortgage lenders out there?
- 1.5 So what about all the online lenders? Are they mortgage brokers?
- 1.6 So who can give you the best deal?
where can i go to get a loan
Having money to do with as you please is always a good thing. You can buy whatever you want and not lose sleep about it. Unfortunately, for most us this isn’t really the case. Only a handful of people can afford to live like this. We, on the other hand, have to agonize over every penny spent because if we don’t we might end up like Florence. Let’s listen to her story:
“I never thought I was overspending. I always believed I didn’t even come close. My regular shopping trips were limited to trips to the supermarket. I didn’t go for expensive signature shoes and clothes. I always thought that if I spent on just the necessities, I’ll be fine. Unfortunately, I had a different concept of necessity and I only realized this too late. These TV shopping shows? I’m addicted to them. Each of those segments convinced me that the items being hawked were actually necessary. Food processors, ceramic cookware, knives that didn’t rust. Name it, I had to have it. Because I didn’t spend so much on extremely expensive stuff, my credit card debt kept on piling up ever so slowly, because I only paid minimum each month since that would be enough to keep me out of trouble, right? Wrong. When my credit cards were maxed out I couldn’t use them for the really important things so I had to use cash. Which, of course, deducted the resources necessary to pay of my credit card debt. My credit rating has hit rock bottom and I’m thinking about loans as an option to get me through these difficult times. But who would lend me the money? Where can I get a loan with bad credit?”
The truth is, there are smart lenders out there who know about people like Florence and want to serve this marginalized market. In fact, many of these lenders have had positive experience in the UK and Canada, too. They know it’s very risky be pointed in their direction as an answer to the question: where can I get a loan with bad credit? People with bad credit have a history of being very poor in managing finances but these lenders know how to hedge against the risk. They also know that very few main street lenders will be willing to help people get a loan with bad credit so this market is underserved.
Florence need not worry too much about where to get loans with bad credit because they are out there, mostly online, and it’s easy to find them. What she does have to worry about is what she does when she finally gets the loan. Read success stories of people who have managed to handle their debts successfully in “Debt Repayment Tips that Work from Real-Life Debt Winners.”
Yes, you now have the money you need, and you feel giddy after being so low cash for such a long time. Do you pinch a little bit from the amount to treat yourself to a dinner at your favorite restaurant? Perhaps pamper yourself with a facial and a massage because being poor is such a stressful thing? If you do then be prepared for more stress because if you fail to pay the loan you get with bad credit, your credit will go from bad to worse. It might even be impossible to repair. Remember that your credit rating is the face you show to the world of finance, and you will always be judged by that. Bad credit? Bad person. It hurts, but it’s true. Yes there are places where you can get a loan with bad credit but these places will be closed to you if you don’t pay up. The Consumer Finance Protection Bureau website is always a good place to start getting good education and proper information on credit.
If, as a part of your financial rebuilding activities, you decide to look for a new job the human resources department will run a background check and one of the most easily available pieces of information is your credit rating. If you haven’t been making payments on time they will interpret this as a sign that you might be a procrastinator. No team wants a member who puts off for tomorrow what can be done today. Your application might be turned down. Read this article from New York Times that details the impact of bad credit on your job search.
Take good care of your credit rating
You have to remember that only you have the right to read your credit report. The lender only has access to it with your permission. Even when you’ve been denied credit it is always a good idea to check your credit file regularly and ensure all the information is correct. You have the right to dispute inaccurate information on your credit file, and to have errors corrected. If there is negative information on your file about people in your family with whom you have no financial connection, you can ask the agencies to “disassociate” you from them.
Always remember that good rating means good credit. The higher the rating, the higher your chances of securing better terms. Learn more about what’s in your credit score and how the scores are computed in the primer from FICO.
Where Can I Get a Loan to Start My Own Business?
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One of the most crucial decisions you will make when beginning your new venture is how much money you'll need for startup and operating costs. While some businesses can get up and running on a shoestring, others will need lots of cash for things like inventory and equipment.
Personal Loans And Credit Cards
Because starting a new business is risky and can be a major drain on your finances, it is imperative that you get them in order before you take the plunge. Some people continue to work at their current jobs while getting their new business up and running, while others put their startup costs on credit cards or take out a second mortgage on their home. If you decide to finance your new business this way, make sure that your credit is in order by checking with one of the three credit bureaus –Equifax, Experian or TransUnion. A good rule of thumb is to have at least six months living expenses socked away in case things go awry.
Bank Loans Or Government-Backed Business Loans
Debt financing means you are going to take out a loan that will need to be repaid over a certain period of time – usually with interest. Start your search for business financing at a commercial bank, savings and loan or credit union. Although banks are generally reluctant to offer long-term loans to startups, lots of government programs encourage them to do so – including several from the Small Business Administration, or SBA. You're going to need a good credit history, solid business plan and strong resume should you choose to go this route. You'll also probably need some collateral. Women and minority business owners may also be able to find loan programs through certain nonprofits.
With equity capital, you sell shares of your company to raise money. Equity financing is a good way to go if you don't want to incur debt. A lot of equity capital for small business comes from family, friends or even current customers. According to the SBA, contrary to popular belief, most professional venture capitalists aren't looking for startups but, rather, businesses with a proven track record of three to five years. Also, as you may imagine, this type of financing can have its drawbacks later on. If investors don't believe you are working hard enough or smart enough, or if they think they could do a better job, they may become more involved in your company than you are comfortable with.
Michael Kerr is an award-winning freelance writer living in Portland, Oregon. He writes about business, health and travel for a number of publications including Portland Business Journal, Healthline Networks and USAToday, among others.
- Accounting and finance image by MAXFX from Fotolia.com
Cite this Article
[Small Business] | Funding for African-Americans Starting Their Own Small Business
[Small Business] | Where Can I Get a Loan to Start a Small Business?
[Tips] | Easy Tips and Ideas to Start My Own Business
[Pool Hall] | How to Start My Own Pool Hall or Billiards Business
How Can I Pay for Legal Fees I Can't Afford?
I have large lawyer fees I need to have financed but I am not sure where to turn.
I have left some messages and sent some e-mails and searched endlessly on line but I keep finding scams (I check before I apply).
Where can I go to get a peer to peer loan or another place to get a large unsecured loan?
If I don't get the legal fees taken care of I could lose everything but I can't find a lender that isn't a scam, extremely high interest, or real.
Why aren't there more avenues out there for legal fee's that don't include injury lawyers?
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Thank you for your question. It's an area I've never spent much time investigating and your feedback that most lenders you've been running into are less than desirable is helpful.
With almost any type of loan your credit score is ultimately the single most important deciding factor. The loans it is not that important are usually the last ditch lenders with huge interest rates like payday lenders and title loan companies. But I'd never suggest you use either of those to fund legal fees.
Dealing with paying for lawyer fees can be overwhelming. Good representation does not come cheap. But what is someone to do?
If a lender is telling you your credit score doesn't matter then that's a great sign you should run away. Why? Well if the credit score is not important to the lender, in my experience, the terms and rates charged will be heavily weighted in the lenders favor. Even more than usual.
Lawyers that refer people to financing companies face some points to ponder as well. A number of state Bar associations have issued opinions that seem to be similar in nature to the New Hampshire Bar Association opinion:
An attorney contemplating involvement in such programs must be very cautious in advising his or her client to engage in such funding. Only through thoughtful and careful counseling and disclosure to the client can an attorney avoid the ethical pitfalls that exist.
Now on to peer-to-peer loans you asked about.
Peer-to-peer lending for those who are unaware are companies that act as intermediaries and loan managers to allow people like you and me to help fund loan requests to other people like you and me.
These lending groups claim their rates are lower than traditional lenders because they are not brick and mortar operators.
I happen to also help fund loans through this type of lender for my readers and I've been very impressed by the performance of the company in screening individuals, the prompt issuance of loans and the feedback I hear from consumers has been very positive.
The reality is while many think unsecured loans are not available from legitimate lenders, the peer-to-peer lending crowd does make almost all of their loans without requesting collateral or a co-signer. They also use traditional credit scoring and review policies and not everyone qualifies. However, I have seen them make loans down to 660 credit scores.
Most people just jump in and apply for a loan. That would be the least favorable approach.
The better thing to do is think of what you would do to sell your house fast. You'd at least look it over and pick it up so it's not a mess when potential buyers take a look.
The same is true when setting yourself up for getting approved for a peer-to-peer loan. I wrote a guide, "The Ultimate Debt Consolidation Loan Guide: Getting Approved, Acting Smart, and Being Wise" and the steps in that guide would apply to anyone looking to get any sort of unsecured financing, even for legal fees.
As with any type of financing, make sure you read and understand the terms and conditions and make an informed decision if the financing offer is agreeable and affordable for you.
Before I go I wanted to leave you with three easy action items you jump on right now to address your situation. Just click here.
If you have a credit or debt question you'd like to ask, just click here and ask away.
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You might try one of the online lending groups such as http://LendingClub.com or http://Prosper.com.
Good luck and I hope this helps!
Johanna Fox Turner, CPA, CFP®, RLP®
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Do you own a car today? Typically, you can get a loan or refinance your existing loan at a much cheaper rate than a personal loan without collateral (i.e. car or house). Other options are a home equity line of credit on your house or even consider a credit card with the 0% intro rate for 12 months ONLY if you will be able to pay back in one year. LendingClub and Prosper are options, but keep in mind that there rates will be very high, but not as bad as pay day loans.
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Where Can I Go to Get a Mortgage? – Mortgage Lenders 101
What are the different types of mortgage lenders out there?
Whether you’re looking to buy or refi, there are plenty of companies competing for your business. While they all serve the purpose of financing a real estate purchase, they can look very different from each other. So how do you decide where to go and what to look for?
Here’s a quick rundown on the different types of lenders, and how I, as a real estate agent, would go about getting my own financing. These types of lenders work with conventional home loans, FHA-insured loans, and VA-insured loans.
1. Big Banks (and credit unions) – these are the companies where you may already have checking and savings accounts. This is where my parents and grandparents would have gone (wearing a business suit) to apply for a loan. Most big banks and credit unions still operate from local branch offices, where you can meet with someone in person.
2. Direct Lenders/Mortgage Bankers – these are privately-owned companies that technically loan you their own money, and then often sell off the loan to the secondary market, with no change in your terms. More accurately, they have direct approval to loan money on behalf of Fannie Mae (FNMA, or Federal National Mortgage Association), Freddie Mac (FHLMC, or Federal Home Loan Mortgage Corporation), the Veterans’ Administration, and the Federal Housing Administration.
3. Mortgage Brokers – these companies work simply as the middle man, or broker, between you (the borrower) and a lender. They take your application, and then shop your loan file to big banks and/or direct lenders, to try to find you a loan program and attractive interest rate. Once a loan program is selected, the lender takes over for processing and underwriting.
So what about all the online lenders? Are they mortgage brokers?
Actually, online lenders can be #1, #2, or #3. Very often, they are mortgage brokers. You answer some basic financial questions on their website, and they return with multiple offers from various companies.
So who can give you the best deal?
Lenders often promise super low rates, and may advertise them on their websites, but it’s important to remember that the “best deal” includes all terms of the loan, including the down payment, one-time processing fees, and any applicable mortgage insurance. Promises of ultra-low interest rates might come with high processing fees. Promises of cash back toward closing costs often come with higher interest rates.
Big banks sometimes offer incentives to their existing customers, such as low closing costs or even principal reduction with on-time payments. However, they are restricted to their own loan programs, so may not be as competitive as mortgage brokers and bankers. The approval process can be more structured and take days longer than other lenders.
Mortgage brokers, who only act as the middle man, have little control over the actual loan process, since another company is processing the underwriting the loan.
Mortgage bankers, or direct lenders, tend to have more flexibility and speed in the approval process, since it’s their own money to lend, and they are also very competitive with rates. They process and underwrite your loan in-house, so it usually goes faster than another type of lender. They also tend to have a wider variety of available loan programs to cater to your particular financial situation, including Renovation Loans. Mortgage bankers can sometimes approve someone who cannot qualify with a big bank.
I asked Nick Richardson, senior loan officer with Prospect Mortgage in La Jolla, about how direct lenders differ from big banks: “Did you know big bank lenders do not have to pass a federal or state test to originate a loan? They simply have to register with the federal and state government. On the other hand, a mortgage banker, or direct lender, has to be licensed by both federal and state, and pass a background check.”
You are free to shop around, and apply to multiple companies until you find a loan program and terms that make you feel comfortable. It no longer negatively affects your credit score if you submit multiple mortgage applications. It’s also relatively easy: once you have the loan package scanned together as a .pdf file, it doesn’t take much extra time to send it to one more e-mail address.
Consider one-time processing fees, any mortgage insurance fees, the interest rate, fixed rate vs. adjustable rate, and any other terms of the loan. These terms vary across the three main loan types: conventional, VA-insured, and FHA-insured mortgages.
You can also check with a trusted real estate advisor to find out what kind of experiences they have had with lenders. While I tend to prefer direct lenders, your credit union may be able to offer you a program that better fits your needs. Programs change often, so it’s important to shop around.
Real estate advisors provide guidance and support throughout the escrow process
Today we have very strict laws prohibiting real estate agents and mortgage lenders from compensating each other for referrals. Any reputable real estate professional can give you experienced, objective advice about which lenders they have enjoyed working with.
I personally have experienced the fastest approval and funding times with direct lenders. I have found that their rates are highly competitive, and their processing fees are usually fixed, and they have numerous loan programs that cater to different types of borrowers. For example, I have seen cases where small business owners who couldn’t document enough income to qualify with a big bank have successfully been approved by a direct lender, who used asset depreciation and other techniques to make a mortgage possible.
If you’re considering buying or refinancing, I wish you a pleasant and successful experience. Feel free to send me any questions or comments.
In 2015, the Consumer Financial Protection Bureau released a new toolkit to guide consumers through the process of shopping for a mortgage and buying a home. The Home Loan Toolkit can help you plan your purchase.
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