Latest news with #personalloans
Yahoo
4 days ago
- Business
- Yahoo
5 strategies to pay off your loan faster
If you took out a personal loan to cover a big expense or consolidate high-interest debt, you're not alone. Personal loan balances in the U.S. amount to $251 billion, according to TransUnion's most recent Credit Industry Analysis report, up from $167 billion three years prior. Personal loans are a flexible tool to get your finances in order, but taking out a personal loan also means another monthly payment to manage. If you'd prefer to pay off your loan early to save on interest, here's what to know. This embedded content is not available in your region. Paying off a loan early has its benefits, and there are several strategies you can employ to accomplish this goal. But before doing so, read your loan paperwork carefully to ensure that your loan doesn't have any prepayment penalties. This can help you avoid any unpleasant surprises. Whether you only kick in a few dollars or round up to the nearest hundred, paying a little extra on your monthly payments makes a big difference. Not only will you pay off your personal loan early, but you'll also reduce your interest costs over the life of the loan. You can also apply this strategy to other loans, such as your mortgage or credit cards. For instance, if you borrowed a $10,000 personal loan with a five-year term and a 9.5% interest rate, paying $100 extra every month shortens your repayment period by 22 months and saves you more than $1,000 on interest. If you've stumbled into a sudden inheritance or a big bonus at work, put some of that cash toward your personal loan. Just ensure you ask your lender to apply the payment directly to your loan principal, as some lenders don't automatically do this. By reducing the principal balance, the amount you owe in monthly interest costs will decrease too. Before making a lump sum payment, make sure your windfall isn't better used paying down credit card debt or other high-interest debt. Read more: Personal loan vs. credit card Lenders sometimes let you split one monthly payment into two equal biweekly payments. While this doesn't seem like it would help you pay your loan off faster, paying every two weeks instead of once a month actually amounts to one full extra payment each year. This could help you save significantly on interest, especially if you have a personal loan with a longer term. Ask your personal loan lender if biweekly payments are an option for you. Read more: How to choose the right personal loan term length When you're between a rock and a hard place, you take the interest rate you can get instead of the one you want. This often happens if you use a personal loan to cover an emergency expense, such as urgent home repairs. Fortunately, you have some recourse if you have a loan with a high annual percentage rate (APR). If you've improved your credit score since taking out your personal loan, you might be able to refinance for a lower rate. Of course, this also depends on the current interest rate environment — refinancing doesn't make sense if rates are generally higher than when you borrowed initially. Keep an eye on your credit score and credit report, and when the time seems right, compare refinance rates with multiple lenders. Even shaving a point or two off your rate can mean keeping hundreds of dollars in your pocket, as long as the refinancing fees don't eat up all your savings. Be sure to ask prospective lenders about their fees before moving forward with a personal loan refinance. Read more: What credit score do you need for a personal loan? If you have multiple personal loans or are carrying high-interest credit card balances, consider consolidating those debts with a single personal loan. Debt consolidation can streamline your monthly payments, and it could also reduce your interest rates — especially if you have credit card debt. Borrowers often use personal loans to consolidate debt, but as with refinancing options, you'll want to make sure your new loan doesn't have an origination fee or other fees that would erode any potential savings. Ask your lender before moving forward. Read more: How to consolidate credit card debt with a personal loan As a general guideline, paying off your personal loan early will save money because, even though the principal or the original loan amount stays the same, you'll pay less interest. However, you'll want to factor in considerations like prepayment fees and other types of high-interest debt you currently have to decide if paying off your personal loan early is the right financial decision for you. To lower your monthly payment, you could secure a lower interest rate by refinancing the debt or extending your repayment period by consolidating into a new loan. However, if refinancing isn't an option and you're struggling to make payments, contact your lender and see if they can adjust your personal loan terms or temporarily defer your payments. Most personal loans are unsecured, which means you probably didn't have to put up collateral to get it. So while you won't lose any assets if you stop making monthly payments, the entire balance of the loan, including late fees, can go into default and drastically hurt your credit score. If you do have a secured personal loan, the lender can seize your assets if you fail to make loan payments. Read more: What happens if you default on a personal loan? Paying off debt affects financial metrics like your credit utilization, debt-to-income ratio, and credit mix, all of which determine your credit score. While early loan repayment is ultimately a big positive, you might see a temporary dip in your credit score. But don't worry — it typically rebounds within a few months.
CBS News
03-06-2025
- Business
- CBS News
How to qualify for personal loan debt forgiveness
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you want to pursue debt forgiveness for your personal loan debt, it's important to understand how to qualify first. Getty Images Millions of Americans rely on personal loans to get through tough times, whether the money goes to cover medical bills, consolidate credit cards or deal with another type of financial emergency. But when money gets tight, those same loans can become a burden, especially if high interest rates or job loss make it hard to keep up with the payments. In extreme cases, some borrowers may even fall behind or default on what's owed, which can tank credit scores and trigger aggressive collection efforts. It's no surprise, then, that many borrowers who are struggling to keep up with their loan payments start looking for relief, including the possibility of personal loan debt forgiveness. But here's the truth: While there are ways to reduce what you owe, true "forgiveness" isn't as simple or widespread as with student loans or tax debt. Personal loans are unsecured, meaning there's no collateral, which makes lenders less likely to forgive balances outright. That said, there are legitimate programs and strategies that can reduce or eliminate some of your debt under the right circumstances. If you're feeling overwhelmed by your personal loan debt and hoping to find a way out, here's what you should know about qualifying for forgiveness — and what steps to take if you're not eligible. Find out how to get help with your debt problems today. How to qualify for personal loan debt forgiveness If you're buried in personal loan debt and struggling to keep up with payments, debt settlement (which is also referred to as debt forgiveness) might offer a real path forward. It's not exactly forgiveness in the traditional sense — your lender isn't wiping your slate clean for nothing — but it can reduce your total balance, sometimes by a significant amount. In a successful settlement, your lender agrees to accept less than what you owe, usually in exchange for a lump-sum payment. Here's what it takes to qualify: You need to be behind on payments — or close to it. Lenders rarely consider settling a loan that's still in good standing. If you're current or only recently delinquent, they expect you to keep paying in full. Settlement becomes more realistic once your loan is several months past due and the lender starts seeing your debt as a potential loss. That's when they might be more open to cutting a deal to recover something rather than risk getting nothing. Chat with a debt relief expert about your options now. Financial hardship is key. To make your case, you'll need to show that you're genuinely unable to repay the full amount. This might include a job loss, medical emergency, divorce or another serious life disruption. Be prepared to provide documentation, like income statements, medical bills or unemployment records — that demonstrates why your current financial situation makes repayment impossible. You should be ready to make a lump-sum offer. Most lenders prefer settlements that involve a one-time payment. While it doesn't have to be the full amount you owe, you'll typically need to come up with 50% to 70% of the balance to get their attention. If you don't have that kind of cash, some lenders may allow a short-term payment plan, but this usually depends on the age and size of the debt — and their willingness to negotiate. You'll need to be persistent — or get help. Debt settlement negotiations can be drawn-out and stressful. You can try handling it yourself, but some borrowers choose to work with a reputable debt relief company instead, which can result in a better outcome due to the debt relief expert's negotiation experience and relationships with creditors. Just be cautious, as not all companies are legitimate and many charge steep fees. Some companies also have minimum debt requirements as well (a minimum of $7,500 is typical), so make sure you meet those requirements as well if you plan to get professional help. What to do if you don't qualify for personal loan debt forgiveness If you're unable to qualify for personal loan debt forgiveness, here's what else to consider: Look into debt management plans. If you're not eligible for debt forgiveness, a credit counseling agency might be able to help you through a debt management plan. With a debt management plan, the counselor works with your lender to lower your interest rates, reduce or remove fees and consolidate your payments. You still repay the full balance, but often on more manageable terms. Refinance or consolidate your debt. If your credit is still in decent shape, you might qualify for a debt consolidation loan with a lower interest rate to pay off your existing one. This doesn't reduce the amount you owe, but it can make your monthly payments more affordable. Be cautious, though, as refinancing won't help if you can't keep up with payments or if you're already behind. Stay in communication with your lender. Silence can make things worse. If you can't make a full payment, reach out to your lender. Many are willing to work with borrowers who show initiative and good faith — especially if you're proactive about your situation. The bottom line Getting personal loan debt forgiven isn't easy, but it's not impossible, especially if you're dealing with financial hardship and have fallen behind on payments. Debt settlement can offer a way to reduce what you owe, but it requires persistence, documentation and sometimes cash on hand. And if you don't qualify, don't panic. Other solutions like debt management plans or refinancing could help make your debt more manageable, so be sure to explore every option available before your situation gets worse.
Forbes
28-05-2025
- Business
- Forbes
This Week's Personal Loan Rates: May 28, 2025—Rates Decline
Rates on personal loans dropped last week. This means if you're looking to finance a home remodeling project, large purchase or unexpected bills, you can still snag a reasonable rate, as long as you're a qualified applicant. For borrowers with a credit score of at least 720 who prequalified on personal loan marketplace, the average interest rate on a three-year personal loan was 12.99% from May 19 to May 24. According to that's a 1.21 percentage-point drop from the previous week. The average rate on a five-year personal loan rose 0.02 percentage point last week, from 19.70% to 19.72%. The rate you'll actually receive depends on a number of factors, including your credit profile and the loans available through your chosen lender. Borrowers with the highest credit scores are likely to receive rates significantly lower than average. These rates are accurate as of May 24, 2025, and based on the three-year fixed rate. Related: Best Personal Loans Personal loan rates fluctuate frequently, and each lender determines and sets different rates. While your rate isn't guaranteed until you sign your loan agreement, you can get an idea of average lender rates below. The table below compares personal loan rates for three- and five-year terms to help you understand rate trends. Lenders typically consider your loan term and credit history to determine your interest rate. Your credit score plays a major role in the interest rate a lender offers for a personal loan. Lenders use your credit profile and other factors to evaluate your risk as a borrower. In general, the higher your credit score, the lower the interest rate you'll receive. The table below compares average personal loan interest rates by credit score, showing how much your score can affect your rate and how much you could save over time. We recommend using these steps to compare and get the best personal loan rates: Related: 5 Personal Loan Requirements To Know Before Applying We recommend you get a personal loan only when it's necessary. If you're considering a personal loan, these steps can help you understand if it's the right choice: In some cases, getting a personal loan may not be the best decision. For example, we don't recommend a personal loan if you can't afford the monthly payments or if you can wait to save up the money you need. You can find a personal loan online or in person, depending on the institution. With varying lenders offering personal loans, you can find one that works best for you. Lenders offering personal loans include: Once you have your interest rate, loan term and amount borrowed, you can calculate your loan payments. A personal loan calculator can help with this. You can typically repay a personal loan early. However, some lenders charge a prepayment penalty as a percentage of your loan or a flat fee. If you want to pay off your loan early, confirm with your lender whether it charges a fee.
Yahoo
22-05-2025
- Business
- Yahoo
Best Personal Loans for Bad Credit Guaranteed Approval Direct Lenders up to $5000 No Credit Check
DALLAS, May 22, 2025 (GLOBE NEWSWIRE) -- Payday Ventures, a leading provider of online loans, operates platforms offering fast and flexible personal loans for bad credit with guaranteed approval. For millions of Americans with less-than-perfect credit, accessing reliable financing can feel impossible. But in 2025, getting approved is easier than ever thanks to digital lenders that specialize in bad credit loans guaranteed approval. Whether you're facing a medical emergency, car repairs, or simply need extra cash, these trusted platforms provide quick loans for bad credit, emergency loans for bad credit, and installment loans for bad credit with same-day decisions. From auto loans for bad credit to first-time home buyer loans with bad credit and zero down, these solutions are built for real people who need money now—without hard credit checks or long delays. Best US Loans for Bad Credit: Summary of Recommendations Heart Paydays – Best for Emergency Loans for Bad Credit with Instant Payouts Low Credit Finance – Top Choice for Bad Credit Personal Loans with Guaranteed Approval Jungle Finance – Best for Quick Online Loans for Bad Credit with No Hard Credit Checks 50k Loans – Great for Large Personal Loans for Bad Credit up to $50,000 Green Dollar Loans – Fastest Option for Installment Loans for People with Bad Credit Top Factors That Set These Bad Credit Loan Options Apart The featured loan providers were chosen based on key factors such as approval speed, loan flexibility, no credit check options, funding turnaround time, and overall customer support. Each platform specializes in loans for people with bad credit, focusing on income and repayment ability rather than credit score, making them ideal for borrowers seeking guaranteed approval in 2025. Click Here to Apply for Personal Loans for Bad Credit Now >> What Are Bad Credit Loans and How Do They Work? Bad credit loans are personal or installment loans designed specifically for people with low credit scores or limited credit history. Unlike traditional loans, these options focus on your current income and repayment ability rather than your FICO score. Whether you're looking for personal loans with bad credit, online loans for bad credit, or emergency loans for bad credit, many US-based lenders now offer fast approvals without hard credit checks. These loans for bad credit often come with flexible terms, allowing borrowers to manage expenses like car repairs, rent, or medical bills with less stress. In 2025, getting personal loans for bad credit guaranteed approval is easier, faster, and more accessible than ever before. Click Here to Apply for Loans for Bad Credit >> Types of Loans for Bad Credit You Can Access Personal Loans for Bad Credit – Unsecured loans for bad credit with guaranteed approval and flexible use. Installment Loans for Bad Credit – Fixed monthly payments, ideal for managing large expenses over time. Emergency Loans for Bad Credit – Fast, same-day loans for unexpected financial needs. Car Loans for Bad Credit / Bad Credit Auto Loans – Easy approval auto loans for people with bad credit. Payday Loans for Bad Credit – Short-term small loans for bad credit with fast cash access. Online Loans for Bad Credit – Apply 100% online and get bad credit loans with instant decisions. Personal Loans for Bad Credit Instant Approval – Get approved for bad credit loans in minutes. First-Time Home Buyer Loans with Bad Credit and Zero Down – Home loans for bad credit with no down payment. Hardship Loans for Bad Credit – Designed for borrowers facing financial stress or emergencies. Urgent Loans for Bad Credit – Structured bad credit loans with predictable repayment. Tips to Get Personal Loans with Bad Credit Instantly Yes, bad credit loans are available online even with low scores. Focus on platforms that assess income, not just credit. Trusted brands like Heart Paydays, Low Credit Finance, and Green Dollar Loans offer bad credit personal loans guaranteed approval $5,000 or more without unnecessary delays. Name: Mukesh BhardwajEmail: mukesh@ Disclaimer: This announcement contains general information about Payday Ventures loan services and should not be considered financial advice. Loans are available to US residents in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
20-05-2025
- Business
- Forbes
This Week's Personal Loan Rates: May 20, 2025—Rates Inch Down Again
Rates on personal loans declined last week, giving qualified borrowers a chance to secure a reasonable interest rate and finance a project, purchase or even unexpected bills. From May 12 to May 17, the average fixed interest rate on a three-year personal loan was 14.20% for borrowers with a credit score of at least 720 who prequalified on personal loan marketplace. That's down 1.07 percentage points from the previous week, according to The average rate on five-year personal loans fell last week from 20.37% to 19.70%. The rate you'll actually receive depends on several factors, including your credit profile and the loans available through your chosen lender. Borrowers with the highest credit scores are likely to receive rates significantly lower than average. These rates are accurate as of May 17, 2025, and based on the three-year fixed rate. Related: Best Personal Loans Personal loan rates fluctuate frequently, and each lender determines and sets different rates. While your rate isn't guaranteed until you sign your loan agreement, you can get an idea of average lender rates below. The table below compares personal loan rates for three- and five-year terms to help you understand rate trends. Lenders typically consider your loan term and credit history to determine your interest rate. Your credit score plays a major role in the interest rate a lender offers for a personal loan. Lenders use your credit profile and other factors to evaluate your risk as a borrower. In general, the higher your credit score, the lower the interest rate you'll receive. The table below compares average personal loan interest rates by credit score, showing how much your score can affect your rate and how much you could save over time. Since each lender sets its own personal loan rates, use these three simple steps to compare personal loan interest rates: Related: 5 Personal Loan Requirements To Know Before Applying We recommend you get a personal loan only when it's necessary. If you're considering a personal loan, these steps can help you understand if it's the right choice: In some cases, getting a personal loan may not be the best decision. For example, we don't recommend a personal loan if you can't afford the monthly payments or if you can wait to save up the money you need. Personal loans are available through a variety of institutions, which should help you find a lender that meets your needs. Your credit profile and financing needs typically determine the best lender for you. You can get personal loans from: While borrowers with strong credit typically get more favorable interest rates, lenders also rely on current market conditions to set interest rates. If you have good credit but your annual percentage rate (APR) is high, it may mean interest rates are generally high. That said, it can also mean your income isn't high enough to qualify for lower rates or your debt-to-income ratio (DTI) is too high. High personal loan interest rates are a result of current market conditions and/or low credit scores. Lenders set their interest rates based on the economy and your credit profile. If you want to get the lowest rates possible, work on improving your credit score and debt-to-income (DTI) ratio before applying.
