The Top 3 Tips for Shopping for a Hard Money Loan

When people hear of the term “hard money loan”, they often think of loan sharks and shady dealings. But that is not the case nowadays. There are many trustworthy and legit companies like Maggio Capital Inc. – San Diego, CA that aim to help those people who are not able to qualify for bank loans.

Since there are so many hard money lenders, you should be careful in choosing the one that will truly assist you. Here are some tips to follow when looking for a lender.

  1. Check to see if any of your friends can recommend one to you – the first step you can do is to interview any of your friends or colleagues if any of them had ever gotten a hard money loan. You don’t have to just ask them for the company they got the loan from. but the whole process itself. Every company has a different way of processing their loan applications, and you want to be prepared with whatever documentation you have to pass. Then, ask them if they will be able to recommend their own lender. Get feedback on how the service was and of course the rates that were given to them.

 

  1. Do your research on what hard money loans are – before getting yourself a hard money loan, you will first need to understand what it is. Don’t go blindly into an agreement with first doing your homework and understanding the basics. Know what the difference is between a hard money loan and why it is different from traditional lenders, like banks. Simply put, a hard money loan is a short-term loan secured by real estate. Instead of banks, you will be funded by private investors and the loan term is shorter compared to traditional loans. Unlike in banks where the applicant’s credit rating is the primary concern of the lender, for hard money lenders, it’s usually the value of the property that they consider. So you should arm yourself with information on the industry standards and the types of property that you can use a hard money loan for. Some of the examples are fix and flip homes.

 

  1. Compile a short list of the private lenders you are eyeing and do your background check on them – even with recommendations from friends and family, it would still be a good idea to keep a short list of potential companies that you can go to for a loan. You should watch out for red flags in order to avoid . the shady dealers who might not be giving you the best deal. Schedule a time of consultation with them and ask them the process. You can tell that a lender is trustworthy when they can explain to you every step in the process so that you can understand what will happen. If a lender will not tell you right away the specific cost and fees when you ask them, and if they evade your questions, it would be best not to deal with them.

Fast Money with Auto Title Loans

Quite often, we are faced with financial troubles that need fast solutions. It may be an emergency medical bill that we need to cover or pay for the car repair in order to keep driving it and doing our job. Some of the traditional methods for getting money may not work for you because they take too much time or because you have some issues with your credit history that can prevent you for getting a loan.

In such cases, you can count on getting a quick auto title loan using just your vehicle as a collateral. If you have not used this option so far, here are a few details that you need to know.

Why an auto tile loan is a good solution for your unexpected financial problems

A car title loan can help you solve your financial problems especially if they are unexpected. The main advantage of this type of loans is that they are very quick – you need to fill in a few details online and you can get an approval in about 30 minutes.

There are not so many requirements or documents that you need to meet or present in order to get the loan, so it really doesn’t take up too much of your time. As per the law, there is also a minimum amount that you can receive against the title of your car, which in California, for example, is set at $2,600, while the maximum can be up to $50,000 even. It all depends on the condition of your car, its current resale value, etc.

An auto title loan is also the best, and often the only solution, in case you need money but you have a bad credit history. The auto title loan company will not turn you down based on this factor. Quite often the company doesn’t run a check on your credit history at all or even if it does, it is just for information and does not affect the final decision.

How to apply for an auto title loan

If you want to apply for an auto title loan, you need to know that the process is quite simple and straightforward. The most important thing is to have the title of your vehicle on your name and that it is free from any other liens against it. Then all you need to do is fill an online application form and wait about 30 minutes for the result. Some companies also offer the option for the clients to visit them personally – they have locations often at big shopping centers where you will be served also very quickly and professionally.

The other documents that you need in addition to your car title are:

  • Valid ID
  • The car documents such as insurance, registration, etc.
  • Current utility bill as a proof of your residence

Note that it is very important to be resident of the state in which the auto title loan company operates and that you should be 18 years of age.

Most of the companies also require that you have fully repaid your vehicle but some will grant a loan even if you are still repaying the leasing.

The good thing is that even though you use your car as a collateral for the loan you still keep it and can drive it. Another plus is that you can use the title of your motorcycle, RV, or truck as well. Keep in mind, though, that the lender may also require a photo of the vehicle or even a visual inspection in order to determine its condition and hence the amount that you can receive.

As you can see, getting an auto title loan is not difficult and is generally hassle-free. It has many benefits as the fact that it is fast and doesn’t run a credit history check on the person who needs it. One of its main drawbacks is the higher interest rate, however if you repay it on time, that won’t cause you any problems. And remember – don’t be shy when you apply for the loan and make sure to negotiate the best conditions that you can get – that often includes lowering the interest or getting no penalty for pre-payment.

What To Do When You’re About To Default On A Loan

When we think of loans, we very rarely think about what we’re going to do if things go wrong. That is, until they actually do. The truth is that it’s common for borrowers to come across hard times, and when loans are involved, they may go unpaid. If things are getting tough for you financially, and you’re worried about defaulting on your debts, consider the following.

Call Your Lender

When times are getting tough, the last thing you may want to do is talk to your lender. After all, this is the same company that you’re worried about being able to pay. However, these calls are not quite as painful as you think they may be.

At the end of the day, your lender knows that some of their borrowers are going to default, and a smart lender is going to want to do whatever they can to help you avoid that potential outcome. In fact, some big lenders like Chase, Bank of America, Citigroup, Discover, and more offer financial hardship programs that are designed to help reduce payments and avoid penalties for consumers with financial concerns. At the end of the day, the worst thing that can happen is that your lender will not be able to help. The situation will never get worse by the borrower taking proactive steps when times get tough.

Consider Your Options

After speaking with your lender, take a bit of time to explore other options as well. The two most common forms of debt relief that aren’t offered by the lenders directly are debt consolidation and debt settlement. Take a bit of time to research these options. Once you have, consider the option provided by your lender, as well as debt consolidation and debt settlement and how these programs may fit into your unique financial position. Nine times out of ten, after doing your research, you’ll find the program that’s best!

What If I Can’t Pay Anything At All?

The truth of the matter is that not everyone will be able to pay their debts back. Sometimes, financial hardships can be so much to deal with that paying anything towards debts can feel impossible. If this is the case, while times will get stressful, you’re not going to go to jail, nor is it OK for you to be harassed. Believe it or not, debt collectors have rules to follow too. So, if these are some of your concerns, rest assured that none of this will happen. Nonetheless, if this is the case, here’s what you can expect to happen next.

  • Your Lender Will Attempt To Collect – First and foremost, your lender is going to try and get the money that is owed. They will send statements, late payment notices, and will likely even call you to try and get a payment. However, they must follow the rules set forth in the Fair Debt Collection Practices Act when collecting debts. If these rules are broken, you may have legal recourse.
  • Your Lender Will Sell Your Debt – In most cases, once a lender determines that they cannot collect on your debt, they will perform a charge off. That means that they will sell your debt to a debt collector either at pennies on the dollar or in a deal where the collector gets a percentage of the amount of money collected. From there, the debt collector will be in charge of collecting on your debt.
  • You May Be Taken To Court – If a debt collector deems that they will not be paid on a debt, and the debt is worth enough to that collector to sue over it, you may be taken to court. This process generally takes quite a bit of time, but once a judgement is placed, the holder of the debt has further legal recourse when it comes to collecting. Therefore, before letting debts go too far, bankruptcy is an option. However, it should always be a last option.

Do I Have To Deal With Harassment?

NO! The Fair Debt Collection Practices Act (information linked to above), protects you from harassment by lenders. This is done by providing a borrower a way to opt out of phone calls, requiring lenders to only call during certain hours of the day, and limiting the vocabulary these lenders can use to ensure that no threats are made. Debt Consolidation’s informative guide on debt collectors harassments, elaborates what to do if things escalate. For example, if you feel as though you have been harassed by a collector, send a certified letter letting them know that they may no longer contact you. If further contact takes place, call the attorney general of your state and consider hiring a lawyer. You have rights, and debt collectors cannot forget about those rights without legal repercussions.

Final Thoughts

Debt can be overwhelming. However, it may not be as bad as you think it is. The truth of the matter is that while lenders do have some ways to collect, and debt is best if dealt with proactively, you’re not going to go to jail and if you are being harassed, you don’t have to stand by and deal with it. The best thing you can do is take any steps you can do to solve the problem and do your research to know your rights!

 

7 Tips On Maximizing A Title Loan

Whether you need a fast loan to launch a new business, cover some unexpected expenses or any other reason, finding a quick lender is no walk in the park. The process can take weeks or months and cause a ton of stress and work. You have a lot on your plate already that worrying about getting a loan approval quickly should not be the big hassle that it typically is.

To help alleviate some of this stress and get a fast loan, you could look at getting a title loan, instead of a more traditional personal loan.

What Is A Title Loan?

A title loan is a secure lending opportunity where the borrower uses their car title as collateral. In other words, the borrower temporarily gives the ownership of their car to the lender. Once the loan is paid, the title moves back to the borrower’s hands. The upside to car title loans is that they are often easier and faster be approved for, even if you have bad credit.

Naturally, there are some downsides to car title loans as well. You need to really understand how to maximize your title loan and what sort of lender to look for to have the best borrowing experience possible. These 7 tips will help you get the right title loan from the best car title lender in your area and still drive your car.

1: Research the lender and check for borrower complaints

Before you sign or initial any papers (really before you even bother calling or visiting a lending office), you want to be absolutely certain that you’re dealing with a reputable lender. Luckily, a quick Google search can tell you everything you want to know about a lender’s reputation; you’ll even find complaints from past borrowers. The last thing you want is to be roped in with a lender that has a history of issues with customers.

Researching the lender ahead of time will give you all the information you need for a great title loan process.

2: Check your vehicle against the lender’s approved list

Every title loan lender has different parameters on the types of cars they’ll accept. These parameters include things like mileage (some lenders will only accept cars with under 100,000 miles), model year (many lenders will only take new vehicles made in the last ten to fifteen years) and even the make/model of the car.

3: Determine your payment schedule

As with any loan, you should have a clear idea of how long the loan will take you to payback and how much interest you’ll accumulate during your borrowing time. Ideally, you want to pay the loan back as quickly as possible, as you’ll have to pay less interest, but a shorter loan period means bigger monthly payments. You have to find the right balance between a comfortable monthly payment and a short payment period. This will help you pay less on your car title loan.

4: Ask if there are any repayment penalties

While you want to pay the least amount of money on your car title loan, the lender would like to have the opposite happen. Some loan providers have stipulations in place that prevent you from repaying your loan in a short period of time. This helps ensure that you pay them ample interest. They’ll actually penalize you for paying early!

5: Check that your lender can operate in your area

If you’re going the route of an online lender, you want to be absolutely certain that they have the right license to operate in your state. Each state has its own guidelines and regulations regarding title loans, particularly when dealing with online lenders. Getting involved with a lender that doesn’t have the right license(s) for your state could create legal penalties and terrible issues for you and your money.

6: Ensure that you can still drive your vehicle during the loan period

This is the most make-or-break issue when it comes to title loans. Every title loan lender handles this aspect differently. Some lenders will impound your car for the lifespan of the loan. Others will require a tracker be placed in the vehicle to measure mileage and location. If you need the vehicle for work and transportation, then you need a title lender like www.TFCTitleLoans.com that won’t ask you to give up your vehicle during the loan.

7: Ask about refinancing options

Even if you feel 100% certain that you won’t have to refinance your title loan, it’s still a smart idea to ask before about refinancing options before you sign on the dotted line. You never know what the future holds and your financial situation and stability could change dramatically overnight. Some title loans allow for refinancing to occur, others will lock you into your initially agreed upon payment schedule.

Conclusions

A car title loan is a great choice for anyone that needs money quickly, especially individuals with poor credit. To make the most out of your title loan, you’ll want to follow the 7 steps in this guide.

Understanding Personal Loan Options

It’s a common misconception that personal loans with good rates are only available to people with prime credit scores. However, in an era of fierce competition, the market has paved the way for some surprisingly good offers. In fact, you could be one of the many people taking out a small personal loan with no credit check, if you perform due diligence on the lenders offering this.

The Run-Down on Banks as Lending Institutions

When it comes to a personal loan, a bank may be your first thought – given their size and reach. Places such as Capital One, US Bank and Bank of America are well-known for their range of financial services; whether you need an unsecured loan via credit cards, or a mortgage loan for your new property.

The potential problem, however, is that banks often won’t take a second glance at a prospective borrower with a credit score below 660. This, of course, varies a bit, but you should take this as a general guideline of the kind of credit you need in order to qualify.

Benefits of Online Lenders

There are online lenders who specifically target people with bad credit. These consistently go below credit scores of 600 to find a program of payment at the prescribed interest rate that will work for their customer. Oftentimes, the lowered rate is provided as an incentive to consolidate debt – but it can be used for an initial personal loan, too.

There are other benefits to consolidating debt, if that’s the reason you’re in need of a personal loan. The primary one is the new classification of your consolidated debt as a so-called “installment debt,” which actually elevates your credit score. For historical reasons, installment debts are not treated the same way as other types of debt, and so they don’t hurt your FICO score in any way.

How do you obtain an installment debt? The most important thing is your income; then, the amount of debt you actually have. Combining these numbers to obtain your debt-to-income ratio is the money ball, effectively; it is the number that determines whether you’re eligible for the installment debt or not. If you can’t qualify for it on your own, then a cosigner with great credit can help you. The overall benefits are :

  • You are generally eligible for larger loan amounts
  • Your rates tend to be lower
  • Interest savings

No Credit Check Loans

As mentioned above, these are generally online lenders who specialize in loaning money to people who have problems with their credit history. The terms are competitive; but this is of course contingent on you getting a reputable lender. The no credit check option does tend to come with a higher interest rate to cover the risk, but this is often negotiable and represents a breath of fresh air for people who cannot otherwise get a personal loan.
If all else fails and you can’t get an unsecured loan, then you might want to consider going the route of the secured loan. This will require collateral on your part; which can be anything valuable such as a boat, car, family heirloom, house – the higher the loan you want, the more valuable the collateral will have to be. Generally-speaking, however, an unsecured personal loan is the better option. If you pay your current bills on time, you can see a credit score increase in a few months – after which you should try again for an unsecured personal loan at a better interest rate.

Are There Good Auto Loans With Bad Credit

There are a wide variety of reasons why someone can have bad credit, and there are a lot more people in the same situation than you might think. Society has built up this taboo around the subject, and that can be seen in the way lenders treat those who have fallen on hard times. When applying for a loan, interest rates can reach 10% above the national average, making monthly payments skyrocket and paying on time a real challenge.

What is someone in this situation supposed to do other than go along with what the big banks have to offer? Well, there are actually a few ways to secure low rates on a reasonable loan, regardless of how your credit looks. Follow these steps, and you will be able to find that auto loan with bad credit and guaranteed approval no matter how impossible it may seem to be.

?Staying On Top?

Getting your credit back on track takes time, but there’s no better way to stay on top of it than to use a credit monitoring tool. Sites like creditkarma.com will help you monitor your score for free, allowing you to track your progress. This will also help you when it comes time to refinance, as you’ll be able to use your improved score as a bargaining chip for even better rates.

?Knowing Where to Look?

With the internet thriving in today’s modern age, there is a wealth of information available to you with just a little bit of research. Find a site that compares lenders side by side while showing you the rates they offer, and what their pros and cons are. Most of these sites will also point out the reputable lenders who work with individuals that have lower credit scores.

Always double check a lender’s track record with state and federal sites, or how they stand with the Better Business Bureau. This will help you avoid any loan sharks looking to take advantage of your situation. If you are unsure of where to get started, these two companies are a great place to start.

?Capital One?

You might only know them from their commercials, like the ones with Samuel L. Jackson, as a credit card company, but did you know that they are one of the top names in lenders who work with bad credit? They have helped thousands finance both new and used cars, and offer online tools such as loan calculators and FAQs to help buyers during the process. They even have a tool called Auto Navigator that will allow you to compare payments on specific vehicles.

One of the best parts about this company is their acceptance of used cars. Buyers can take out a loan on a vehicle up to 10 years old, as long as it is not from a private seller and has less than 125,000 miles.

?Auto Credit Express?

Even those who have filed for bankruptcy will find help from this company. They have made it their mission to provide anyone with bad credit loan options, and the best rates available. You will not be restricted from applying based on a vehicle’s age and mileage, or the amount of money you need to borrow.

How good are they? They happen to hold an A+ rating with the Better Business Bureau!

?Great Loans?

Don’t allow bad credit to hold you back from securing low rates on a reasonable auto loan. With a little time and research, you’ll be able to avoid the common pitfalls that come with a low score and get your credit back on track in no time.

What To Know About Title Loans in 2017

For consumers in need of immediate financial assistance, title loans have long been one of the most common solutions. In June 2016, the Consumer Financial Protection Bureau (CFPB) proposed several new regulations to make it less likely that consumers would end up trapped in a continually worsening cycle of debt. If you’re considering a title loan, here’s what you need to know about them and what’s new about them as of 2017:

Title Loans: How They Work

The title loan process is simple and quick, which are two of the main reasons these types of loans are so attractive to consumers facing financial hardships. To obtain a title loan, you bring your car to the title loan company’s location, where the lender inspects it. After determining the current market value of your car, the lender can issue you a loan based on that amount (usually anywhere from 30 to 50 percent of your car’s trade-in value). You provide the lender with your car title to obtain the loan.

Many title loan companies offer an online application process where you enter a few basic pieces of information and get preapproval for a title loan. Since the lender needs to examine your car before issuing you the loan, you still need to go in to a title loan company’s office. However, some online applications can provide you with an estimate of how much you could get with a title loan, based on the vehicle information that you provide.

Each title loan has a repayment period specified in the contract. You keep your car throughout the repayment period, and you get your title back when you repay the balance on your loan. Title loans have interest charges and sometimes fees, and if you’re unable to repay the loan in the designated time period, it rolls over and incurs further interest charges and fees. If you default on the loan, the lender can repossess your car.

Title loans don’t require a credit check, making them a popular option among consumers with bad credit. When you repay your title loan on time, you can improve your credit score.

New Regulations

The CFPB’s new regulations impose several restrictions on the title loan industry and the payday loan industry, as both types of loans tend to have high interest rates that can leave consumers facing more and more debt.

Title loan companies must now check whether the borrower has sufficient income to repay the loan within the designated time frame, while also having enough for any other bills and living expenses. One issue for many consumers that are unable to pay is that the title loan company debits their account, and then they get stuck with overdraft fees, in addition to their outstanding title loan debts. Lenders now have to provide consumers with written notice prior to debiting their bank accounts. If the payment fails on two separate occasions, the lender needs the borrower’s written authorization to charge the account again.

The regulations also put a cap on how many short-term loans, including title loans, that borrowers can have. Lenders can’t issue title loans to consumers who already have another short-term loan with an outstanding balance, and they can’t issue title loans to consumers who have spent more than 90 days over the last 12 months in debt for a short-term loan.

Title loans have their supporters and their detractors. The former point out that title loans provide a form of financial assistance for borrowers who are unable to get other types of loans. The latter criticize title loan companies for the high interest rates and fees they charge. Whether or not to apply for a title loan depends entirely on your own financial situation. While interest rates won’t be as low as they would for a bank loan, they’re much easier to get, and can be an excellent option when you need cash right away.