For years, online banking personal loan have been easy to find in the US, allowing millions of people to borrower cheap credit score to monthly payment off expensive credit card debt. In the past year, institutions like Lending Club have started to turn off the tap, after Investors revolt in the face of years of unexpected losses. Easy credit report has given way to caution and financial technology startups now target higher-income households, above average credit personal loan rates and a lower debt-to-salary ratio.
The financial loan system in the USA works through a scoring system, the higher the better your credit report. Before you decide to borrow money? It is important to know if you are. You really need a personal loans. When you borrow money, do you? In practice it takes more money than the amount borrower, as it needs to return the principal plus interest rate punctually to the bank. That is why the importance of always researching the interest rate charged and opting for a cheap line.
WHAT IS PERSONAL LOAN?
Personal loans, or personal credit limit, is one of the ways to get payment or money without placing a property or car as a guarantee of payment. The amount received in the current checking account plus interest rate and other amounts will not be deducted directly from the individual’s payroll, but will have to be paid during the loan term negotiated with the financial institution before closing the contract.
REASONS FOR A PERSONAL LOAN
In this period of concern with the advancement of the new coronavirus in Brazil and in the World and the effects resulting from these uncertainties in politics and the economy, it is quite common to worry about what may happen in the short, medium and loan term. It may even be that these fears make some situations difficult, disadvantage some businesses and force some people to seek extra money payment, but besides this atypical situation there are other reasons for someone to suggest you:
“Ask for a loan offer!”
- Unexpected Spend
- Insufficient financial reserve
- Imbalance between earnings and expenses
- Exchanging expensive debt like overdraft or credit card debt
- Attempting to open your own business, invest in it or prevent it from closing
- Unique chance to complete the amount needed to get a dream off the ground
But whatever the reason, it is essential to remember that the money in advance needs to be paid off. And as life goes on, it will be necessary to reconcile the usual expenses with the home and family with the installment loan established by the financial institution.
DOCUMENTS REQUIRED TO APPLY FOR A PERSONAL LOANS
The requirements may vary according to the financial institution in which the negotiation is being carried out, as well as the way of delivering these required items, which can be physically delivered to an agency or with the electronic support of the internet and the transfer of the scanned documents.
It is common for companies to try to see if the person asking for the money is really the person they claim to be. In addition, proof of residency (to ensure where that person is located in case of problems) and documents proving their monthly earnings are also required in the credit analysis.
With this information, institutions are able to assess the risk of not being paid and decide whether the person can take out the loan. In case of a positive answer the final step is to release the money in the indicated current checking account and monitor the loan payment of the installment loan within the previously agreed loan term. In case of refusal, the person needs to resume the research process and knock on the door of another institution to try to be able to release the amount of loan payment they need.
PRECAUTION WHEN TAKING PERSONAL LOAN:
The precaution that must be taken when applying for a credit card and other lines of credit is over-loan application. Some companies do what they call a hard inquiry, which is the type of query made to find out your personal credit history. If the hard inquiry appears often in the personal history it can be a problem, because if a company that is asking for credit score verifies that it has many attempts, that is, many hard inquiries, they can deny the request alleging that there is an excess of attempt, that is, this person is trying “Buy” too much. The hard inquiry takes 2 years to be removed from the credit history. Some finance companies do what they call a soft inquiry, that is, it will appear in the credit history, but will not appear in future consultations. Once the credit is established and how is that done? Always use your credit card, do not make financing too short, full loan payment of the card invoice generates a good credit score.
PERSONAL LOAN ON HOME OWNERSHIP
Lets moving on to the subject of home ownership, some people want to know how a house is financed, for example. A request for financing can be made by the bank where you have an checking account current or saving, or by the finance that system of loan offer a house loan option or even by the US federal government that also loan offer a line of financing for those who are going to buy the first property. In most cases it is necessary to have a Green card to have access to a credit line in order to obtain a relevant value such as a house for example. Although, foreigners who live here on a work visa sometimes get credit lines for home and car purchases. Learn also DEFERRED INCOME TAX
ONE LAST TIP
Here’s a tip: don’t be enchanted with credit limit offers, before doing anything, get informed, read reviews about the chosen company and get informed about contractual clauses in order to avoid unpleasant surprises. Several websites tell you how to obtain a credit line and have specialists who tell you how to manage these resources. The USA is a false paradise for consumers loan because with all the ease that one has to buy, one has to individualize.