Do You Need Great Credit Scores to Refinance an Auto Loan

It is a must to have a great credit score in order to qualify for a low-interest loan to refinance your auto loan. A loan with a lower APR interest can reduce the total amount that you pay back for the car every month. The interest rate is added to your monthly payment so lower APR interest means that you will have lower monthly payment. Lower monthly payment will make it easier for you to manage your budget every month.

It is best to choose a loan with fixed interest rate so that you will pay a fixed monthly payment throughout the loan term. After you get approved for the loan, you must diligently pay back the monthly amount on time. When you continue to make payment on time for a year or so, your credit score will increase and you may be able to qualify for an even lower interest rate.

Taking out another loan to refinance your auto loan allows you to obtain a more favorable loan term. For example, the new loan that you get may have no late payment or penalty APR as you are charged in the old loan. You don’t have to wait for a period of time before refinancing the loan. You can refinance the loan as soon as you purchase the car before the first monthly payment is paid.

If you don’t have a good credit score, you can start taking actions such as pay off your existing bills or credit card debts to improve it. Before applying for a car refinancing loan, you should obtain a copy of your credit report from the credit bureau and review it for errors. If you notice an error in the credit report, you can launch a complaint to the credit bureau. Once they have fixed the error, your credit score will be raised.

You can refinance your auto loan with a loan that you have applied from an online lender, bank or credit union. Applying for an online car refinancing loan is the easiest because you can get approved within a few minutes of submitting the online application. Most online lenders allow you to complete the auto loan refinancing application completely online so that you don’t have to leave your house to visit a branch and complete the application process.

When you are shopping around, it is important to check all the fees that you are liable to pay not just the APR interest fees. When you are ready to apply for a loan, you have to prepare a few documents such as vehicle, current loan and identity documents.

You should try to sign up for a loan that features a soft inquiry to prevent a hard inquiry from being made on your credit profile.

Which Peer to Peer Lending Platform Offers The Quickest Loan Approvals

Peer to peer lending offers a type of loan that allows you to borrow from individuals instead of banks. P2P loans offer faster approval because its eligibility criteria is less strict. The following are the top 3 P2P lending platforms that offer the fastest loan approvals.

1. Prosper
Prosper offers fast loan approval within 1 – 3 business days. With Prosper, you can borrow a loan amount from $2,000 – $35,000 and the repayment of the loan can be spread out over 3 – 5 years. Most of the customers who get approved have good to excellent credit scores in the range of 640 – 710. It does not set any minimum income requirement but most borrowers have an average income of $89,000. The minimum interest rate is 5.99% but it can get as high as 35.99%. Prosper loans charge an origination fee of 1% – 5% depending on what grade the borrower falls into. Besides the origination fee, it also charges late and unsuccessful payment fees. Soft credit check is available with Prosper.

2. Upstart
Upstart typically takes 1 day to approve the loan but they can take up to 3 days to approve loans used for the purpose of funding education. Upstart allows you to take out a loan of up to $50,000. They have different minimum loan amount for various states, for example, $3,000 in Georgia and $6,000 in Ohio. The typical APR rate of Upstart P2P loan is from 9.48% – 29.99%. To get approved, you need to meet the minimum credit score criteria of 620 and the minimum income requirement is $12,000 per year. Your debt to income ratio must not be more than 45%. Upstart loans charge fees such as origination fee (up to 8%), late fee (5% or due amount) and $15 fee if your check gets rejected. Upstart loans feature soft credit check.

3. Sofi
Sofi loans typically take 7 days to fund it. Sofi loans come with either fixed or variable interest rate in the range of 5% – 15%. If you are hoping to get approved for a Sofi loan, you must make sure that your credit score is 660 or higher. Sofi’s borrowers have a median income of $101,000. You can take out a loan of at least $5,000 and up to a maximum of $100,000 from Sofi. Several loan repayment periods are available starting from 3 – 7 years. It does not charge origination and prepayment fees but it does charge a late fee which is 4% of the due amount. Sofi offers a 15 days grace period for you to repay the loan. Sofi is different from other lenders in that it allows you to participate in a forbearance program that can postpone the payment for 3 months at a time. You can postpone your payment for up to 12 months.

Why Using Personal Loans for Holiday Gifts is Not a Great Idea

Christmas is a holiday season where stores would put up sales to encourage people to spend money. For some people, they may feel a pressure that they need to spend a lot of money on holiday gifts to impress their friends. It is not wise to spend money on expensive holiday gifts if you don’t have the savings to buy them.

Taking out a loan to purchase the holiday gifts may be able to make the recipients of your gifts happy but it will add a financial problem to the upcoming year. You will be obliged to pay back the loan with interest over a few years and this means that you will have lesser money to spend on other necessary expenses. It will give you, even more, financial headaches if you already have other debts such as unsecured loans, home and car loans that you need to repay.

It is the thought that counts and not the price of the gifts. The last thing that your family or friends approaches to see going in debt because of the expensive gifts you purchase for them. If possible, you should save money to purchase the holiday gifts. There is still some time to save money before the holiday season approach.

To save money, you must cut down unnecessary budgets. You can keep track of all your expenditures by recording them down on a note book. This allows you to see your unnecessary expenses clearly and you can eliminate them from your expenses in order to save more money for purchasing the holiday gifts. These unnecessary expenses can be small luxury items such as junk food, and cable subscription.

To avoid a holiday debt, you should plan everything properly. First of all, you must determine what gifts you want to purchase and how much is the estimated cost. Then, you need to shop around looking for stores that offer the gift at the lowest price. You can give your friends handmade gifts to save money.

Doing a gift exchange allows you to have some presents to put under the tree without having to buy them yourself. When shopping online, you can always look for discount coupon code to get a few percentages of discounts. You may be tempted to buy more because of the free shipping. You should always stick to your budget and don’t spend more than the minimum amount required for free delivery.

If it is really necessary to take out a loan to buy the gift, you should spend some time shopping around for a personal loan with the best repayment plan. You must ask yourself how much you can afford to pay every month. You should borrow less if you are unable to meet the monthly amount.