Borrowing to pay off debt, often called debt consolidation or refinance can be a useful strategy if, the consolidated loan offers a lower interest rate, a simplified payment option, and the chance of improving the credit score. But, why would…
A personal loan calculator shows monthly payment amounts depending on the inputs. Usually, a borrower needs to some information such as the principle amount, interest rate, loan terms, and the type of interest to calculate the total cost of the…
Applying an effective debt management strategy is crucial to maintaining the credit score and overall financial stability of the borrower. Debt management refers to strategically handling one’s debts to ensure timely repayment, reduce financial stress, and improve overall financial health.…
Lenders reject a personal loan application mainly due to poor credit scores, high Debt-to-Income ratio (DTI), inaccurate or, incomplete documents, and inadequate income proof. Here are several steps that an applicant can consider in case of any loan denial: Why…
For a personal loan, a borrower needs to submit certain documents such as proof of identity, proof of address, proof of income, employment details, loan application forms, and photographs. On top of these, a lender will check the borrower’s credit…
Setting your financial goals is important if you earn little, take loans, and do not know the best way to invest for maximum return. To set an effective financial target, you need to: A real-life example of how a defined…
A good credit score is generally 670 to 740 on a scale of 300-850 per the FICO score and VantageScore. A borrower can consider a credit score as good if it provides confidence in his creditworthiness to the lenders which…
Collateral can be any of your valuable assets that can be used as a security against a loan. Certain types of assets such as personal clothes, household appliances, electric items, future earnings, social security benefits, retirement funds, intangible assets, assets…
Debt-to-Income (DTI) ratio measures what proportion of your total income you use for your loan. Usually, the DTI ratio is used to measure borrowers’ ability to repay the loan. A higher DTI represents that most of your income you spend…
The annual Percentage Rate (APR) represents the annual cost of your loan in percentage. Any personal loan would cost you interest, processing charges, and any other associated fees. APR accounts for every costs and tells you what is your actual…
