Latest news with #personalloan
The Sun
5 days ago
- Business
- The Sun
Post Office set to relaunch big banking service after axing it in all branches in 2023
THE Post Office is bringing back a key banking service, two years after it was discontinued, The Sun can reveal. Customers will soon be able to apply for a Post Office personal loan once again. 1 It has teamed up with Lendable, a UK fintech company, to offer loans that promise quick approvals and competitive rates. The postal service stopped offering personal loans through its partnership with the Bank of Ireland in 2023 but continues to provide savings accounts. Now, new loans will be available online only, allowing people to borrow between £1,000 and £25,000, with interest rates starting at 8.1% APR. Borrowers will be able to choose repayment terms of one to five years. As an example, borrowing £5,000 over two years would mean paying £226.38 per month, with £433.12 worth of added interest. Personal loans are unsecured, meaning you don't need to offer up assets like your home or car as collateral. They're often a safer and cheaper way to borrow compared to using a credit card, an overdraft, or payday loans, which can charge interest rates of up 1,250%. consolidating debts. A good credit score helps you get the best interest rates, but the Post Office's partnership with Lendable will use AI to look beyond this metric, making it easier for more people to qualify for better rates. If approved for a new Post Office loan, most borrowers will get their money in under a minute. Ross Borkett, Post Office banking director, said: "We are delighted to launch our online personal loans offering with Lendable and give our customers the ability to take out a loan that covers their needs in minutes. "By developing our commercial offering, we will generate income to be shared with postmasters and help sustain their presence in communities nationwide." The loans will be available directly through the Post Office website and on comparison websites. What is a personal loan? A PERSONAL unsecured loan is a type of borrowing where you receive a lump sum from a lender and agree to repay it in instalments, along with interest. Unlike secured loans, it doesn't require any collateral, such as a house or car. Approval is based on your creditworthiness, income, and existing debts, making it a riskier option for lenders and potentially more expensive for borrowers. Despite this, personal loans can be cheaper than credit cards and overdrafts, but it's not always guaranteed. While personal loans often have lower interest rates, especially if you have a good credit score, the overall cost depends on several factors like the loan term, fees, and your individual circumstances. Credit cards and overdrafts can be more expensive due to high interest rates and fees, especially if you only make minimum payments or exceed your overdraft limit. It's essential to compare the total cost of borrowing, including all fees and interest, before making a decision. How does it compare? Rachel Springall, Finance Expert at said: "Borrowers might like to choose the Post Office for ease and due to trust, but it is always essential to shop around for a low-rate loan and not just take the first quote they get, even if it feels like a hassle to look elsewhere. One of the lowest advertised loan rates on the market is 5.9% APR, such as with M&S Bank, Santander and TSB. However, Rachel said: "Borrowers do need to keep in mind that these are advertised rates and, out of all successful applicants, a minimum of 51% are offered this rate." Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, suggests considering credit unions when comparing options. Their interest rates are capped, making them a cost-effective alternative to payday loans, credit cards, or overdrafts. Rates range from 12.7% APR (1% monthly) to a maximum of 42.6% APR (3.5% monthly), and some even offer same-day funding. If you're thinking about using a personal loan to consolidate debts, it's important to address overspending habits first - otherwise, you could end up in a worse financial situation later. Sarah said: "This type of loan can be great for those who need money urgently, but borrowers must think carefully before taking on debt. "Consider whether you need to borrow, whether you can afford repayments, and whether it's the best option for your circumstances." To find the best rates visit price comparison websites including and How to get free debt help There are several groups which can help you with your problem debts for free. Citizens Advice - 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange - 0800138 1111 National Debtline - 0808 808 4000 Debt Advice Foundation - 0800 043 4050 You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting or Speak to one of these organisations - don't be tempted to use a claims management firm. They say they can write off lots of your debt in return for a large upfront fee. But there are other options where you don't need to pay.
CBS News
7 days ago
- Business
- CBS News
$100,000 home equity loan vs. $100,000 personal loan: Which is cheaper this July?
When you need to borrow a substantial sum of money, like $100,000, the financing options available to you can dramatically impact your wallet over both the short- and long-term. After all, the interest rate you secure on a loan today will determine what you pay for interest charges on your future payments. In this inflationary environment, though, borrowing costs are elevated across the board, so it can be tough to find an affordable option. For example, the average credit card rate is sitting at nearly 22%, so if you're borrowing without paying off the balance in full each month, you may find yourself saddled with more debt than you can afford. If you're a homeowner who needs to borrow money, however, there may be an attractive path to low-cost borrowing via a home equity loan. These types of loans allow you to borrow against the equity you've built in your home, and they have become an increasingly popular option in today's borrowing landscape, as borrowers can use them to access large amounts of money at an affordable rate. The funds can also be used for nearly any purpose. That makes them a good alternative to personal loans, which also come with lower-than-average rates in today's landscape. But if you're borrowing $100,000, is a personal loan or a home equity loan the more affordable option? Below, we'll break down the numbers to see which option truly comes out ahead this July. Find out how affordable your home equity borrowing options could be here. In general, rates on both home equity loans and personal loans are fixed. That means the rate you lock in when you take out the loan is the rate of interest you'll pay over the life of the loan unless you choose to refinance in the future. That can be a big benefit in an uncertain rate environment, like the one we're facing today, as your borrowing costs won't be impacted if rates climb in the future. And, right now, home equity loans come with fixed average rates ranging from 8.28% to 8.43%, depending on the loan term length. On the other hand, the average personal loan rate is currently 12.65%. Here's how the costs of a $100,000 loan would compare between the two if you were to borrow at today's average rates: The monthly savings alone tell a compelling story. Even with the shortest-term home equity loan, you'd save about $216 every month compared to a personal loan, which tallies up to nearly $2,600 per year. Over the full five-year term, you'd save almost $13,000 in total interest by choosing the home equity route. Were you to opt for a 10-year home equity loan route, you would save about $236 each month compared to a personal loan with the same loan term. That equates to annual savings of about $2,832 each year. Over the full loan term, your savings would be over $28,000. But the real eye-opener comes when you consider longer repayment terms. Opting for a 15-year home equity loan over a 15-year personal loan would allow you to save about $265 each month. That equates to annual savings of about $3,180 each year — and a total savings of about $47,700 over the 15-year loan term. Compare your home equity borrowing options and lock in a rate today. For homeowners with adequate home equity, the choice between a $100,000 home equity loan and a $100,000 personal loan is financially straightforward: The home equity option delivers substantial savings both monthly and over the life of the loan. However, the decision between these two loan options involves more than just numbers. You should also consider whether you're comfortable with the risks that come with using your home as collateral as well as your need for flexible repayment terms and whether you meet the borrowing requirements for each option. If you're confident in your ability to repay and want to minimize borrowing costs, though, the home equity loan represents a clear winner in today's rate environment.
Yahoo
18-07-2025
- Business
- Yahoo
5 Reasons First-Time Homebuyers Should Consider a Personal Loan
Buying a first home is exciting yet daunting. Many people conduct thorough research and prepare in advance; they save enough for the down payment, determine their budget and even narrow down their preferred location. But when it comes to the mortgage, people often think that's the only option to finance their home. Read Next: Find Out: While a mortgage will still cover the bulk of your home purchase, a personal loan could help fill the gaps most first-time buyers don't anticipate. Here are five overlooked reasons first-time buyers could consider a personal loan, including what it can provide as they prepare for a thrilling new chapter. Cover Unexpected or Underestimated Costs It might not be your first thought, but a personal loan can offer helpful flexibility in covering closing costs, inspection fees, moving expenses and even initial utility setup costs. These are often overlooked during first-time home budgeting, but with a personal loan, you could have access to funds to use just for these must-haves. Ultimately, buyers could prevent financial stress and protect their emergency savings. Be Aware: Strengthen an Offer in a Competitive Housing Market Having a personal loan can provide fast access to funds for related homebuying expenses, allowing buyers to act quickly in a fast-paced housing market. This flexibility could help with things like larger earnest money deposits or pre-move-in repairs, which can strengthen buyers' position without them having to touch their savings. Avoid Draining Long-Term Savings There's nothing worse than having to dip into funds that are saved for other purposes. Using retirement funds or large portions of savings can create long-term financial strain and put first-time buyers in a tough spot. That's why a personal loan could be beneficial. Buyers could preserve their financial safety net and still cover the necessary upfront expenses with ease. Fund Immediate Repairs or Renovations Want to make some alterations to the home? Have some repairs that can't wait? With a personal loan, buyers could handle repairs that a seller typically wouldn't cover, or they can easily make updates before moving in. Unlike home equity loans, personal loans don't require existing equity or a home appraisal, so first-time buyers could get enough money to make their new home just as they'd like before bringing in their belongings and furniture. Improve Credit Profile Before Mortgage Application For those eager to get a mortgage, personal loans could help consolidate high-interest credit card debt, improving the debt-to-income ratio and credit mix. This may boost mortgage approval odds, but it's crucial to time it right and speak with a financial advisor before taking on new debt. Smart, Flexible Support for Your First Home Purchase Personal loans might not be for everyone, but they can be a smart, flexible option for first-time homebuyers who face cash flow gaps that prevent them from getting a home. Before settling on a personal loan, buyers should be sure to do their research, compare lenders, check their credit score and make sure their potential loan fits into a realistic, well-planned budget. More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 5 Reasons First-Time Homebuyers Should Consider a Personal Loan Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
1 Big Reason Upstart Could Be a 10X Stock Within a Decade
Key Points There's a lot to like about Upstart's core personal loan business. Even in an unfavorable interest rate environment, the company is set to achieve $1 billion in annual revenue for the first time. Upstart's newer growth verticals, especially HELOC loans, could be an even more exciting opportunity. 10 stocks we like better than Upstart › After a few years of plunging loan volume and a lack of profitability, Upstart (NASDAQ: UPST) has done an excellent job of turning things around. The lending technology company is now in full growth mode once again, and management expects to exceed $1 billion in revenue in 2025 for the first time ever. To be sure, Upstart's core personal loan business is impressive. The company continues to add bank partners and now plays a role in originating a double-digit percentage of U.S. personal loan volume. Plus, now that it's a more established company and has been through a bear market and economic turbulence, there is now some great data that indicates Upstart's methodology does indeed do a better job of predicting risk than the traditional FICO model alone. Upstart's personal loan vertical certainly still has serious growth potential. That's apparent in the recent numbers. Plus, if interest rates fall over the next couple of years like most experts predict, it could cause overall personal loan volume to surge. However, Upstart's personal loan business might not be the most exciting part of the company's future growth story. Its newer growth verticals, auto loans and home equity lines of credit (HELOCs), are small parts of the business now, but are growing rapidly and are much bigger opportunities. And one could be a potential 10x catalyst for this business. Upstart's sleeper growth vertical First, both of Upstart's new verticals are gaining serious traction. Auto loan originations grew by 42% sequentially in the first quarter of 2025 and more than 5x compared to year-ago levels. And with a $677 billion market size and just $61 million in origination volume last quarter, this is a vertical with lots of growth potential. HELOCs are the newer of the two verticals to Upstart's ecosystem and are seeing impressive traction already. The company originated $41 million in HELOC borrowing capacity in the first quarter, 52% sequential growth. And although this is the smallest of the three loan types today, it's the one I'm most excited to watch. Here's why the HELOC vertical has so much potential. After a boom in cash-out refinancing and HELOCs in the 2020-2021 time frame, when mortgage rates were in the 3% range, popularity of tapping into one's home equity plunged, and has remained extremely low. In short, even if you have hundreds of thousands of dollars of equity in your home, it simply isn't as attractive to use it if you're paying 7%+ interest rates to do it. Because relatively few homeowners have been tapping into their equity, and home prices have continued to rise, there's more home equity in the United States than every before. In fact, U.S. homeowners are currently sitting on about $35 trillion in home equity -- the highest level ever. Of course, not all of this could be borrowed against, as most lenders only let borrowers take out equity up to 80% of their home's value. And even if interest rates fell to an absurdly low level like they did in 2021 (which isn't very likely), not every borrower will decide to take advantage. Having said that, the median expectation priced into financial markets is for two full percentage points of Federal Reserve rate cuts by the end of 2026. This could definitely cause mortgage rates to move substantially lower and create a surge in HELOC volume that is in the trillions of dollars. If Upstart can even get a few percentage points of this flowing through its lending methodology, it could be a massive catalyst for the company's fee revenue. It's still very early In the most recent quarter, Upstart's auto and HELOC origination volume combined made up less than 1% of the company's total loan volume. But both are growing rapidly, and now that Upstart has shown the effectiveness of its lending methodology, it could help accelerate adoption of its newer verticals. And if mortgage rates trend lower over the next couple of years, HELOC volume could soar and even send the stock up 10 times in price. Should you invest $1,000 in Upstart right now? Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Upstart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Matt Frankel has positions in Upstart and has the following options: short December 2025 $95 calls on Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. 1 Big Reason Upstart Could Be a 10X Stock Within a Decade was originally published by The Motley Fool
Yahoo
17-07-2025
- Business
- Yahoo
A Missourian Asks For The Best Way To Tackle Three Debts: 'I Make $26,000 A Year After Taxes'
A Missourian earns $26,000 per year after taxes and needs help with navigating three debts. The first debt is a personal loan that has a $1,760 balance. The second debt is one to an internet provider that is around $300. However, this charge is incorrect, and the Missourian has deferred it to another debt collector. The final debt is a $10,000 auto loan with a three-year plan. The Missourian admits to making mistakes in the past and turned to Reddit for advice on managing the loans. These were some of the suggestions Redditors offered. Don't Miss: $100k+ in investable assets? – no cost, no obligation. Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Work On Your Income Although it is important to pay off debt and create a plan, you can only get so far with a low income. Penny pinching eventually reaches its limits, and that's why multiple Redditors suggested that the Missourian boost their income. A side hustle or part-time job can go a long way in helping the Missourian out of debt. The extra work will eat up more time on their schedule, but having more control over long-term finances is worth the short-term sacrifice. The Missourian may also pursue a higher-paying career after exploring new income streams. Staying at the same job with the same pay isn't a winning strategy in the long run. Looking for ways to increase income is the best long-term solution for the Missourian. Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Start With The Smallest Debt Some Redditors suggested the debt snowball strategy to pay off debt. After paying off the internet provider, the Missourian can prioritize the personal loan and wrap up by paying the auto loan. Knocking out the $300 debt will give the Missourian a small win that can compound into something greater. Paying off this debt also frees the Missourian from the debt collector's phone calls. The Missourian still has to make minimum monthly payments on the personal loan and the auto loan. However, tackling smaller balances can help the Missourian feel like they are getting on the right track. Given that the Missourian admitted to making financial mistakes, the debt snowball method seems more appropriate than the debt avalanche Making Bad Financial Decisions It's good that the Missourian acknowledged past mistakes. Some people refuse to admit or address the mistakes that got them into debt. It can also result in a financial recovery. Paying off debt and saving money can put the individual on a better path toward long-term financial goals. Unfortunately, some people rebound financially only to fall back into bad habits. Some people pay off credit card debt only to blow through the money all over again. Other people make matters worse. These types of people may take out home equity loans to consolidate credit card debt and then proceed to get deeper into credit card debt. It's important to acknowledge and correct the bad financial habits that put you in an unfavorable position. That way, when you apply good financial habits and recover, you can preserve your success instead of falling back into bad habits. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article A Missourian Asks For The Best Way To Tackle Three Debts: 'I Make $26,000 A Year After Taxes' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
