Glossary

Prepayment penalties are generally based on a percentage of your principal loan. Your principal balance is what you owe the lender, and the interest rate is what your lender will charge for allowing you to borrow funds. Some lenders will choose to include a prepayment penalty to protect themselves from a prepayment risk. This simply means the fee will act as a security to the lender, in case there is loss of interest payments with the loan that would have otherwise have been paid over time. If a borrower chooses to refinance their loan early into the loan agreement, that can result in a huge loss for the lender. Prepayment penalties are generally a way for a lender to recoup profit if there is a lower interest rate.

Lenders that choose to incorporate such fees are required to disclose the prepayment penalties before your loan contract is signed. Penalties cannot be included in the loan agreement without the informed consent of the borrower. The Truth in Lending disclosures can help protect borrowers from unfair lending practices. Under federal law, borrowers are protected, and lenders are responsible for making sure that the prepayment penalties are clearly defined in the loan contract. Personal loans, auto loans, and mortgage loans are all types of loans that will usually have a prepayment penalty from a lender.

The prepayment amounts will generally vary by the type of loan you are taking out, as well as the lender you choose. A prepayment penalty will often be based on a percentage of your loan, but they can often vary based upon your lender.

For example, a borrower may try to refinance a loan a year into the loan contract that has a remaining balance of $10,000. The lender may choose to include a prepayment penalty of 4% if the loan is paid early. This means that in order to refinance, an additional fee based on that percentage will need to be paid as a result of the loan terms.

The length of the loan term that you have will affect the prepayment penalties as well. The longer you are into your loan term, the less severe the prepayment penalties can be.

If a prepayment penalty is included in the clauses of your loan, there are a few questions to consider:

1. What are the exact terms of penalty?
2. Does it only apply to full or partial prepayment?
3. How much are the penalties?

Before signing your loan agreement, these are questions that borrowers should consider.

Choosing to have a lender rollover a loan can be advantageous for a few different reasons. A rollover can allow a borrower to avoid defaulting or refinancing their current loan. Rolling over a loan can also prevent a borrower from a late payment that could hurt their credit score in the long run. Choosing to rollover can also allow for a borrower to have more time to gather funds to complete the repayment of the loan, which can help a credit score. Repaying a loan in full will reflect positively on a credit report.

Most lenders will give you a loan period, which is your time to repay the loan in full. Generally, that is anywhere between 30 days to 3 years depending on your lender and the state you reside in. If you are worried you may default on your loan or cannot make the payments by the time the loan period ends, a rollover can be one of your better options to consider. A rollover could potentially mean different loan terms that could be more advantageous for your current financial situation.

While there are advantages to consider with choosing a rollover for your loan, there are disadvantages as well to keep in mind. Some lenders will potentially include a fee to rollover your loan. While not every lender will choose to include a rollover fee, it is something to keep in mind when considering your options. When asking a lender to rollover your loan, consider any additional interest charges that could accrue. Rolling over a loan is a useful tool to help keep your payments on track, but it also means you will be paying more interest in the long run.

When a borrower signs a loan contract, there are specific set terms that define how soon the loan should be repaid. Both parties, the lender and the borrower, sign the agreement. If a borrower is unable to make the loan payments in the agreed upon loan terms, there is the possibility of defaulting. This means missed payments that could result in vehicle repossession if it is a title loan. In this case, a rollover can be the right option to avoid loan default and other additional negative consequences. Choosing the right time to rollover is negotiable, but it can be helpful if the interest has been paid off and there are just a few payments left.

While every state has different laws and lending practices regarding pink slip loans, there are general statements about pink slip loans that can translate across states. Pink slip loans are designed to help borrowers use their car title to obtain fast cash! This is done by allowing a borrower to use the title of their vehicle as collateral for the loan. The collateral will act as a form of security to the lender, so they are able to borrow large amounts of money that they often would otherwise be ineligible for. Pink slip loans can be a way for those with poor credit history to obtain funding. Traditional personal loans from a bank or credit union will often require a borrower to have an excellent credit score to apply. Often, a low credit score will mean they are rejected from a loan, or given a high interest rate that makes it difficult to repay. With a pink slip loan, however, eligibility is not solely based on credit score. Instead, most lenders for pink slip loans will rely on the value of a borrower’s vehicle and their ability to repay the loan. Title loans, or pink slip loans, can be one of the most advantageous type of loan for those from all types of credit histories.

In order for a borrower to be able to use their pink slip as collateral for the loan, it must be in their name. A borrower must also be the sole owner of the vehicle, and some lenders will require that the pink slip be “clear”, with no liens or holds on it. A borrower cannot have more than one pink slip loan per car. In every state, borrowers will need to be at least 18 years of age or older to qualify.

Many borrowers of pink slip loans often have questions about their eligibility, and the status of their car while they repay their loan. With a pink slip loan, as you make timely monthly payments, you will be able to keep driving your vehicle as you normally would. The lender will often hold onto your title as security while you repay the loan. As soon as you repay your loan in full, your title will not have the lender’s name attached to it.

Trying to apply for a title loan without a clear title may seem tricky, but it can be quite simple through the right lender. Many borrowers may not be aware what a clear title is, but once they are, they may wonder if it can inhibit them from applying for a title loan. While some lenders will require borrowers to have a clear title to qualify for a loan, others will not. Instead, some title loan lenders will allow you to have a second lien title loan, which means you can apply for a title loan without a clear, lien free title. This is usually done when a borrower has just a few payments left on the loan balance for their vehicle, but the circumstances may be different for each borrower.

If you are a borrower in need of cash, you may wonder if there is a way to apply for a title loan without a clear title. Some lenders will allow for a second lien title loan, but there are some requirements that a borrower must meet in advance. A lender will look at how much is left to pay with the original lienholder, and how much equity is in the vehicle.

Then, they will choose repayment amounts for the money that is owed on your vehicle, so it can be rolled into a new loan. What this could potentially mean is that your title loan lender will pay off the remaining balance to your vehicle lender, and include that in your new loan contract. Your new loan contract without a clear title will have different interest rates and loan terms than the one with your original lienholder.

However, while a second lienholder is possible, the vehicle title will still need to be in the borrower’s legal name in order to qualify for a title loan. Once a borrower has repaid the title loan in full, the lender they choose will no longer be the lienholder for the loan. This means that the title is now clear! While repaying the loan, responsible borrowers that make on time payments can continue to drive their vehicle as they normally would.

When choosing to take out a title loan, your title loan lender will become your lienholder. This means that your vehicle is collateral for the loan, so a lien will be placed on your title throughout the duration of your loan contract. The lienholder will often hold onto a hard copy of your title as a form of security while you are repaying the loan. While the loan is being paid off, you can continue to drive your vehicle as you normally would, and the lien is removed once it has been paid in full. However, if you default on your payments and fail to communicate with your lienholder, it may result in repossession of your vehicle. While repossession with a lien is a potential consequence of a title loan, many lien holders and lenders will allow you to refinance your loan if defaulting is a possibility.

If you currently have a lien on your title, it may mean you already have a title loan with your vehicle. In most cases, you will not be allowed to have more than one title loan per vehicle. However, if you are currently financing your vehicle and that is why a lien is currently on your title, you may still be able to apply for a second lien to obtain a title loan.

When choosing a title loan option, it is prudent to also choose the right lienholder. Some lienholders will offer high interest rates, or less than ideal loan terms. Choosing the right lienholder can make or break your loan experience! Be mindful of the loan agreement and the potential lienholder. Look for lenders that are reputable, with competitive interest rates, and helpful customer service to ensure you have a positive lending experience.

Most lienholders that are title loan lenders will require a few things from borrowers before they can apply for a title loan. All borrowers will need to be at least 18 years of age or older to apply for a title loan. Additionally, they will require that the borrower have a title in their own name to apply, and they must have some form of proof of income. While it does not need to be a typical 9-5 to qualify, lienholders will require some form of income per month.

Refinancing your vehicle could be as easy as applying for a loan, as the process is similar. To refinance your vehicle, a borrower must choose a lender to work with. Depending on the lender, your refinancing options could vary. Refinancing your vehicle can take just three simple steps, the first being to fill out a simple application with your new lender. Then, a borrower will simply need to submit the right documents concerning their vehicle and personal information. If approved, the new loan will cover your old debt with the lender, and allow you to have completely new loan terms and interest rates.

Not every loan needs to be refinanced, but there are situations where refinancing can be the best option for both parties.

Sometimes a loan payment can become unaffordable due to personal financial issues, or job loss. When this happens, refinancing your car loan can be the best option. In many cases, a borrower will choose to refinance to take advantage of competitive interest rates or to reduce their monthly payment with a longer repayment term.

For example, you may have a lender that has an extremely high APR of 300%. This can make the repayment process difficult, as you will be paying off mostly interest per month instead of paying down your loan. In this case, finding a new lender to refinance with could be the better option, otherwise it will take you years to repay the loan. Choosing to refinance with a new lender that offers more competitive interest rates and manageable loan terms could help save you money in the long run. If you are currently unhappy with your loan terms, refinancing your car loan could be an option for you.

It is possible that a new loan that you acquire to refinance could temporarily hurt your credit report. However, repaying the loan on time, and closing the account once it has been paid off will help your credit in the long run. When choosing to refinance your vehicle, however, it is important to choose the right lender that can benefit your financial situation. There is no point in refinancing your loan if your new loan terms are not more optimal than your previous ones.

If you are a vehicle owner, there are a few different reasons why you might use Kelley Blue Book. If you are looking to purchase a vehicle, checking Kelley Blue Book is an advantage. The site offers a way for vehicle owners to know the market trends and prices of vehicles by using predictive analytics. This can help vehicle owners find the average market price for a used vehicle, as well as any trade in value. This can be useful information to have before selling a vehicle to an individual, as it can be useful leverage with a potential buyer ahead of time.

Vehicle owners can also use Kelley Blue Book to determine the current market value or equity of their own vehicles for title loans. The Kelley Blue Book can help assess a variety of values: dealership retail value, trade-in value, and certified pre-owned (CPO) value.

As a vehicle owner looking to buy or sell a vehicle, Kelley Blue Book can be one of the most helpful tools. As a website that can analyze the current resale value of most used vehicles, Kelley Blue Book can help vehicle owners find the right price to sell or buy their vehicles for. If they are looking to buy, some dealerships will recognize Blue Book value prices and adjust their used car prices accordingly if brought up.

With a trade in, the value is based on the amount a dealer would be willing to offer you. This goes towards the purchase of a new vehicle in exchange for your current one. With Kelley Blue Book, you’ll be able to see the market value of your vehicle, which means the amount it would sell for if it was being sold on the open market.

Whether you are looking to sell your vehicle or find out it’s equity for a title loan, it can be done through Kelley Blue Book. To find out your vehicle’s market value, owners will need to initially submit some basic information. This includes:

1. Vehicle Make, Model, and Year
2. VIN #
3. Any Cosmetic Damages Inside or Outside the Vehicle
4. Any Accidents Reported

These factors could affect the value of your vehicle, and it’s equity if you are planning to sell your vehicle. If you are choosing to get a title loan, you can get an estimate through Kelley Blue Book. Generally, a lender can offer you 25%-50% of your car’s current market value. Kelley Blue Book can be used to have a rough estimate of your potential funding, as other factors will influence your loan amount.

As a general rule of thumb, Kelley Blue Book is an exceptional resource for buyers and individual sellers. When buying or selling a vehicle, it is important to do your homework and research the market. Kelley Blue Book can be the optimal choice for this, as buying or selling from individuals is a bit different when dealerships aren’t involved. If you are buying a used vehicle, Kelley Blue Book can help provide accurate information for vehicles in the past fifteen years. Researching the vehicle’s current selling point, as well as market trends can help both buyers and sellers have a better understanding of how to price or purchase a vehicle. This can avoid overpaying, or selling a vehicle for less than it is worth.

While Kelley Blue Book is used for consumers to figure out their vehicle’s worth, the Black Book instead is generally what dealers will use when trying to figure out how much a used vehicle or trade in is worth. The Black Book is used by dealerships for a variety of things, but typically it is used to lookup pricing information about new, used cars, trucks, and recreational vehicles.

Since the Black Book is almost exclusively used by dealerships, there are elements of the Black Book that are for dealership handling. Similar to the criteria for Kelley Blue Book, the Black Book will look at these criteria when determining a vehicle’s value:

1. Vehicle Condition
2. Car Mileage
3. Vehicle Options
4. Make, Model, Year
5. Accident Reports

All of these factors will influence the value of a vehicle and it’s equity, which will in turn affect their pricing on the market. These trends and collected market information are what the Black Book will use when determining a price point on a vehicle.

The Black Book will analyze a variety of different sources before making an estimate on a vehicle model or make. It is also updated weekly by the MSRP, or the Manufacturers Suggested Retail Price. This can help ensure that both the dealership and the potential buyers or sellers can have accurate information about the vehicle. While Kelley Blue Book is often on the higher side of the price, the Black Book will give both parties an accurate price point to work off of.

Any fee concerning a loan that charges a borrower for borrowing money through a loan that isn’t the interest rate is considered a loan fee. This fee is usually incorporated in the loan and not an “up front” fee you have to pay to get your money. After submitting your loan application, once you receive approval, the loan processing fee will be included in your loan. This is in addition to the interest rates that are included in the loan, and any additional fees that the lender may charge.

Not every lender will charge a loan fee, or a processing fee, but it is something to keep in mind when you are applying for different types of loans.

While not all lenders will use loan fees or processing fees, it does not make them inherently something to avoid. Lenders that specialize in personal loans, mortgages, and title loans will use processing fees when originating a loan for a borrower.

While it can seem like an inconvenience, they are not always something that you can avoid.

Not every lender will include a loan fee, but there are average percentages for what most lenders with processing fees will charge. Typically, loan origination fees may range from 1% to 6%, while some may be as much as 8% on average. This means, if your loan is $1,000, your loan fee could be on average, anywhere from $10-$80. In the long run, with your interest rate included, the processing fee is not as hefty as one might think. On average, most lenders will charge a reasonable percentage for a processing fee.

Your creditworthiness, or credit rating is formed by a few different credit bureaus, the notable ones being Experian or TransUnion. They use a three digit number to determine a borrower’s credit worthiness, which is assessed by lenders that are looking to determine a borrower’s eligibility. Individual credit score is based upon FICO ratings, which is how lenders will view your credit. Credit ratings can also apply to businesses and government agencies, while credit scores are just for consumers. Credit scores are determined by FICO ratings, and credit history that is reported by the credit bureaus like Equifax and TransUnion.

Credit rating will also determine the interest rate for a borrower during the loan approval process, as borrowers with a lower credit rating are more of a risk to lenders. High interest rates because of a low credit rating simply mean that the borrower was more of a risk to the lender. This means that while a borrower may get approved for a loan, if they have a low credit rating it is possible that their interest rates may be too high to be affordable.

Credit ratings are an important part of the lending process, as they help a lender decide whether or not to approve a borrower for a loan. Credit ratings will also determine what lender a borrower can choose, as a borrower with a perfect credit rating will likely be able to choose a different lender than a borrower with a poor rating.

Your credit rating will determine your chances of receiving approval for loans. Since most lenders will require some form of credit check during loan approval, your credit rating will affect your eligibility for the loan. Lenders often depend on credit ratings to determine a borrower’s eligibility.

Some lenders, such as title loan lenders, will often look for other factors in the approval process. While the credit rating is still looked at, the more important factors in the approval process are the borrower’s ability to repay the loan, and the value of the collateral.

Title loans are secured through collateral, (i.e. the title of the vehicle) which means more security for the lender that the loan will be repaid. This means that the lender will have a more flexible approval process that does not solely rely on credit score for approval. While credit ratings can affect the interest rates for some lenders, title loans can be a good option to apply for if a borrower has a less than ideal credit rating.

A car may have a clean title or a bad title, and there are other types of titles based upon the equity or status of the vehicle.

1. Junk Title: A junk title is when a car has been damaged beyond the value it has, and it is sold to a junk dealer to either be destroyed or used for parts.
2. Reconstructed Title: If it is a car that has been damaged significantly but it has been rebuilt correctly, a reconstructed title may be issued by the insurance company. This requires an inspection to pass, as the vehicle must be deemed drivable.
3. Clean Title: If a car has a clean title, it simply means that the car has never been declared a loss or junk title. Cars with clean titles will have higher resale values, and are affected differently by insurance claims and warranty. A clean title could also mean that the vehicle has been paid off, and there is no lien holder on the title, so it is not being financed.
4. Title with a Lien: A title that has a lien is not a clean title, as there is a lienholder attached to the title. This means the vehicle is currently still being financed, or it may have a lender holding onto it through a loan. Title loan lenders will usually hold onto a vehicle title during the repayment process, therefore it becomes a title with a lien until the loan has been paid in full.

If you have a title in your name and a vehicle with equity, you may be able to use your title to obtain funding. Title loans, otherwise known as pink slip loans or auto equity loans will allow you to use the title of your vehicle as collateral for a loan. Generally, title loans can be helpful to those with poor credit history, as a title loan has a much more flexible approval process to help those from all credit backgrounds. By using a title to secure the loan as collateral, the lender has more security that the loan will be repaid.

One thing to remember is that if a borrower defaults on payments and chooses to not refinance, vehicle repossession could be a consequence. The loan amount that most borrowers will have access to once approved is based upon the value of the vehicle, which is known as the equity. More equity could mean a larger funding amount, as a title loan is based upon 25%-50% of the vehicle’s value.

Applying for an auto pawn is as simple as applying for any other loan. There are online lenders available to choose from, or borrowers may also be able to find a lender in person through their car title loan dealer. Borrowers can choose to use a brick and mortar location to find a lender, but often there are stricter guidelines they might have to follow through them. To apply for an auto pawn, the title of the vehicle must be in the borrowers name. The title must not have been used for another loan, and must be clear for most lenders to accept it. Borrowers must also be the legal age to apply, which is at least 18 years old to pawn a vehicle. Lenders will also ask for proof of identification to prevent thieves from pawning vehicles that are not theirs. The vehicle itself must also be in good working condition to qualify for the loan.

Auto pawn loan will generally give a borrower a certain amount of days to repay the loan before it is repossessed to be sold. These terms range on average, but since they are short term loans, it is often only 30 to 90 days. Some lenders will allow you to rollover the loan, but often the auto pawn lender will expect payment in full as soon as the term has ended. There are some cases where a lender can help offer to refinance the loan if there are extenuating circumstances such as a job loss or other situation happening.

A title pawn loan is different from a title loan. With a title loan, a lender will often offer 25% to 50% of the vehicle’s value. This, along with the income that the borrower provides, is what the funding amount is based off of. With an auto pawn, the loan amount will be based upon the vehicle’s used value, and will only be a portion of that for lender security purposes. Pawning a vehicle is one method to obtain funding, but it will often leave you without the use of your vehicle, which is a factor to consider in determining what type of loan to apply for.

There is a broad range of what is deemed valuable to a pawnbroker. While it is different for every shop, some of the most common items that can be used to secure funding at a pawn shop are:

• Jewelry, particularly Gold, Gold Plated, or Diamond Jewelry
• Electronics or Games
• Musical Instruments like Guitars and Pianos
• Rare or Vintage Items with Value
• Power Tools and Machines
• Titles to Vehicles, such as Boats, Motorcycles, or Cars

While all of these items could potentially be used to secure funding, there are some restrictions. First, a pawnbroker will not offer a borrower the entire value of the item for funding. This is in the event that the borrower fails to repay the loan, so the pawnbroker has some security that the loan will be repaid.

The pawnbroker will offer a percentage of the items used value, so they can still make a profit if the loan is not paid off. Second, if the borrower is looking to use their vehicle as collateral for funding, they may be able to receive more than they would through another item. To do this, the borrower would have to either leave the title or the vehicle itself with the pawnbroker until the loan has been repaid in full.

While not every state has the same laws and not every pawn shop is the same, there is an average for pawn shop loan terms. Most pawn shop loans will offer 30-90 days for a borrower to repay the loan. If a borrower fails to meet the payments by the end due date, they could lose their item. Some pawnbrokers will allow a borrower to “roll over” their loan, or take new interest on while they have an extended deadline. Before taking out a pawn shop loan, it is important to consider all of the potential consequences, which could include losing that diamond ring or vehicle. Be sure to research the pawnbroker ahead of time to understand the exact loan terms that will come with your pawn shop loan.

Payday loans can be a popular alternative loan option to those with poor credit histories. Often, payday loan lenders do not require a credit check. For those with bad credit scores or no credit, this can be the ideal loan option. While some payday lenders will run credit checks, other lenders will determine a borrower’s worthiness based upon other factors, such as their ability to repay the loan.

Payday loans, or payday advance loans are short term loans, and are unsecured. This means they do not require collateral for approval, unlike title loans and pawn shop loans. To obtain a payday loan, a borrower will usually write a predated check to the lender. On that date, the borrower is expected to repay the loan in full. This includes any interest that accrues on the loan, which can be high depending on the lender. Any fees, such as a loan origination fee will be expected to be paid as well. If the check bounces, this can affect the borrowers bank statements, and add additional fees to the loan that will need to be repaid. This can be hard on the borrower, who may not be able to meet both the original payment, and the additional fees that are being added to the loan. Some lenders will choose to do an electronic withdrawal instead of a physical check.

Sometimes, payday loans are referred to as cash advances. In order for a borrower to qualify for a payday loan, there needs to be verification of income. Proof of income will usually be paystubs, bank statements, or other criteria depending on the lender. Some lenders without a brick and mortar location will allow borrowers to apply and repay the loan completely online as well.

One of the drawbacks to choosing a payday loan for funding is that they often have high APRS, or annual percentage rates. This means that the interest rate for the loan is often very high, which can make the loan hard to repay. This could create a cycle of debt, which prompted lawmakers to place a cap on annual percentages in some states to help control interest rates and payday lenders. This can help ensure that borrowers can repay their loans without an excess of interest, as most lenders will also charge additional fees. These loan fees are often what lenders charge for borrowing money. Usually, they are something like $10 for every $100 borrowed.

Amortization is a type of installment loan that requires a borrower to make periodic payments that are scheduled. These payments cover both the principal, and the interest amounts towards the loan. As the interest portion of the loan decreases, the principal portion of the loan will increase. Some of the most common types of amortization loans are auto loans, title loans, home loans, and personal loans from a credit union or bank. These loans are all different in purpose, but amortization can be a helpful method for a borrower to use when paying them off.

Amortization in loans is beneficial for both the lender and the borrower. In the beginning of a loan, a borrower will owe the lender more interest, as the loan has not been paid down much at all. When your periodic monthly payment is going towards the interest, and a small amount is going to principle, it is helping pay down the interest rate first. As a borrower continues to pay down the loan and it matures, the higher percentage of the payment will go towards the principal, which helps pay down the loan to reduce the interest. Prepayments towards the loan will help pay down the interest faster, and can also help your credit score! It also helps knock down the interest payments to make it easier to pay off your principal balance. This can shorten the loan term, and make the loan more manageable. However, some lenders will include prepayment penalties, which is something to be mindful of when paying down the loan early.

While amortization can seem complicated, it is just simple math to understand! With an amortized loan, the interest is calculated based upon the balance of the loan, and the interest amount that is owed will decrease as the payments are made. When applying for a loan, the lender will offer a specific interest rate that the borrower will agree to. Any additional payments that are met towards the interest amount reduces the principal balance of the loan, which will then reduce the interest due to the recurring calculation changing.

This means that the current balance of the loan during the loan repayment period is multiplied by the interest rate to find the interest that is due for the period. As the loan is paid off, these numbers will change. The current balance of the loan, minus the amount of the principal that is paid in the past payment, will result in the new balance of the loan. That is how each monthly payment is calculated as the loan is being paid off. Generally, amortization is for long term loans that are paid off over an extended period of time. The payments for an amortized loan are usually equal in size, but a borrower can make more than one payment per payment period.

It is important to note that amortized loans will apply each payment received by the borrower to both the interest and principal of the loan. While initially more is dedicated to the interest, eventually it is paid down and the principal will be left. This can make the repayment process easier, as the borrower is not paying down one or the other, and can focus on their payments. This is in contrast to balloon payments, or balloon loans. These loans are short term, and only a portion of the loan’s principal balance is amortized throughout the loan term, while the remaining balance is the final payment. This means that by the end of the term, the balance is quite high and almost double the usual payment.

An amortization schedule is chosen by the lender based upon the agreed terms and conditions of the loan contract. An amortized loan will simply mean that the borrower must make scheduled and periodic payments on their loan. These payments are applied to both the principal and interest, but the interest is what is paid first in the beginning of the loan to make it more manageable. If the interest was not paid first, it could continue to grow throughout the duration of the loan, which can make it harder to pay off. Once a borrower has finished paying the interest throughout the beginning term of the loan, the rest of the payments go to the principal. These installment loans are very common in the financial world, where the most recognizable amortized loans are student loans, car loans, and mortgage loans.

An amortized loan schedule is mutually beneficial for the lender and the borrower. With an amortized loan, the lender can have scheduled payments that help lower the interest of the loan before the loan is paid off. This makes the repayment process simple and easier for the borrower, which makes the payment process more manageable. Prepayments on an amortized loan can also make the loan get paid faster! Once your loan has matured and the interest is paid off, you can make payments multiple times a month to pay off the loan faster.

Amortization schedules are equal payments that are calculated by percentages. In the beginning of the loan, there is a fixed payment that is partial principal and partial interest. As the loan is paid off, the payment percentage that goes to the interest becomes less and less until the interest is completely paid off. Then, a borrower will only pay towards the principal amount throughout the duration of the loan.

If a borrower has a credit card with an APR of 10%, for every $1,000 that is borrowed, a borrower may pay $100 through the APR. The average APR is hard to determine, as lenders will have various APRs across different states. However, calculating an annual percentage rate is done through a simple formula.

1. Add up the total interest that is paid throughout the duration of the loan, as well as any additional fees.
2. Divide that number by the total amount of the loan.
3. Divide that number again by the total amount of days that are in the loan term.
4. Then, multiple that number by 365 (one year) to find the annual rate.
5. Multiplying this number by 100 causes the number to convert the annual rate into a percentage, which is the APR!

Interest rates are known as the cost of borrowing money from a lender. The interest rate is what it will cost a borrower to pay each year to borrow the money, and it is expressed as a percentage rate. Generally, the interest rate does not include any loan origination fees, or other fees that a lender may charge for the loan, they are just the cost of borrowing the principal balance.

An APR, or annual percentage rate, is always higher than the interest rate, and includes the additional costs associated with borrowing the loan. The APR includes the interest rate, as well as other fees that come with the loan. While the exact fees may change based upon the type of loan, they include fees like closing costs, loan origination, or brokerage fees.

High APR rates can make the repayment process difficult, so it is best to avoid loans that have high rates. A good annual percentage rate for a credit card or loan should be one that is below the current average for the interest rate in the market. This could be difficult to do, as the APR and interest rate can be only available for those that have good credit. Having a higher FICO score could save a borrower from higher APR rates that could be difficult to repay. Choosing the right lender could also play a factor in receiving better APR rates! Paying off the loan early by making more than one payment per month can also be a way to tackle high APRs, as long as there are no prepayment penalties.

When a borrower has a vehicle that has equity, they may be able to use their vehicle’s title to secure funding with an auto equity loan. Equity simply means that the vehicle has a resale value that is worth more than what is owed on it. In order to qualify for an auto equity loan, it must have equity. This is because the loans are secured through collateral, which is the title to the vehicle. Collateral allows the lender to become more flexible in the approval process, as it is the security that the loan will be paid by any means necessary.

Auto equity loans work by the borrower using their title to secure funding. The lender they choose becomes the lienholder for the title, and will be so once the loan has been repaid in full. This ensures that they have a legal right to the vehicle, should the borrower default on their loan. While the loan is being repaid on time, the borrower can continue to drive their vehicle as they normally would.

Auto equity loans are designed to streamline the approval process for a loan, which helps those get funding fast and without much hassle. They are popular among those with poor credit, as auto equity loans are designed to help those from all credit histories obtain funding! Since collateral is used to secure the loan, a borrower’s credit score is not the most important part of the approval process for an auto equity loan.

Instead, a lender will look at a borrower’s ability to repay the loan, such as their income, and the value of their collateral. The higher the collateral is valued, the more a borrower could potentially receive for funding.

All different makes, models, and years of vehicles could potentially be accepted for an auto equity loan. Approval is based upon the equity of the car, which is determined by a few different factors:

1. The current Mileage on the Odometer
2. The Make, Model, or Year of the Vehicle
3. Any Physical, Cosmetic or Surface Damage to the Vehicle
4. Any Accident Reports to the Vehicle
5. The Overall Condition of the Vehicle

In order to receive approval for an auto equity loan, a borrower must have a qualifying vehicle, and a qualifying income. In the loan approval process, a loan representative will review the submitted documents from the borrower. These documents include proof of income, proof of residence, and other necessary documents to deem the borrower qualified. It can take just minutes to do, and the borrower could get their funding in as little as one business day if they qualify.

Your credit score is based upon percentages within your credit report, and it is calculated by three major credit bureaus. Equifax, Experian, and TransUnion are the three major credit bureaus that will use your credit report to determine your credit score. These percentages that your score is determined by can be categorized into five different groups:

1. Payment History: 35% of your credit score is affected by your payment history. This means that your payments are on time, or you are paying more than the minimum payment. Borrowers that pay more than once a month will often see their credit score go up as a result. Be mindful to always keep your bills on autopay to avoid late payments, as they can negatively impact your credit score. Since it is the most important part of your FICO score calculation, it is important to keep all of your open accounts in good standing.
2. Credit Utilization: When you have an available line of credit, there is a certain amount you are allowed to borrow before you have reached your limit. Utilizing all of your credit will reflect negatively on your score, as high utilization marks a borrower that is overextended financially. Be mindful of where your percentage is at. If you have used over 50% of your available credit, this could be hurting your credit score in the long run. 30% of your credit score is affected by your credit utilization.
3. Length of Your Credit History: Generally, a longer credit history will reflect positively on your credit report. 15% of your credit score is determined by your length of time as a borrower, but even those that are relatively new borrowers could still have decent FICO scores. The length of your credit accounts, as well as their age, and how long ago you have used the account will play into your score calculation.
4. Credit Diversity: Believe it or not, diversifying your credit accounts can help your score. 10% of your score is calculated by the diversity of your credit history, as it proved you as a borrower can handle different types of loans. This includes credit cards, mortgage loans, retail accounts, or installment loans.
5. New Credit Accounts: Opening a few or several credit accounts in a short period of time could hurt your credit in the long run, as it shows desperation. 10% of your score is affected by this!

Be sure to make your payments on time! That is the easiest way to improve your bad credit score. Make more than one payment a month, and pay more than the minimum due each time. This can help gradually increase your score as you pay off your credit, and decrease your utilization.

Providing customers with a brick and mortar location can offer many different advantages. Face to face communication and customer service allows for a personal touch when discussing financial matters or taking out a loan. Many customers may prefer to discuss or obtain a loan in person as opposed to online, which is something a branch can help with. A branch can allow a financial institution like a bank to expand their customer base outside of the home location, and divide into smaller storefront locations that are accessible to the public. At a branch location, borrowers and customers have a unique access to customer service from financial institutions.

Branch banking was simply created to help customers achieve accessibility and convenience with their banking services. Having a financial institution with a branch location can help provide multiple different types of financial services in one location! This includes offering different types of financial products in one place, such as investments or insurance products. At one branch location, it could be possible to deposit a check into your savings, and apply for a mortgage!

The convenience of branch locations and their accessibility is how they stay a staple of so many financial institutions. While online banking and mobile internet banking also exist, branch banking offers a different personal access to customer service. 73% of Americans will usually access their bank accounts through mobile banking apps and online platforms, but will still visit branch offices for some financial services such as applying for a loan.

Unit banking is the alternative to branch banking, as a unit bank will only have one location and is generally a very small bank for a local community. Generally, unit banks are very small and only operate with one branch independently. Depending on a customer’s preferences, they may prefer choosing their home town unit bank versus a branch location that may not be the customer service they are looking for.

Bank branches can be the right spot for any customer seeking to open up a new savings or checking account. Whether you are choosing a branch location or a unit bank location, there are things to keep in mind. Choose a bank that can offer the best options for your financial needs. If you are looking for a high yield savings account, search for a bank that can offer those needs. But, if you are looking for a checking account that does not require a minimum, that is also something to consider in your search. Different branches, or banks, may offer better options depending on your financial situation.

When buying or selling a used vehicle, the resale value is based upon a number of factors. Some of them include the market value of the vehicle, and how it is reselling in the market as a whole. But, there are other factors that will affect your resale value. A vehicle’s details, as well as the condition of the vehicle will also play an important role in the resale value. Other factors that will affect your vehicle’s market value include:

1. The Vehicle’s Details: This includes the vehicle’s make, model and year. This is the most important part of the vehicle history, as it will determine how much the vehicle can really sell for. The make, model, and year of the car are the most defining features that a buyer will search for, and base the price off of. The year that the vehicle was made is perhaps the most important predictor of the resale value, as the older the vehicle is, the more it has potentially depreciated in value.
2. The Repair History: Another big factor in the car’s condition is the repair history on the vehicle. Vehicle sites like CARFAX and AutoCheck can help indicate the history of reported services and maintenance records of the registered vehicle. This is important information to know if a vehicle has been well maintained throughout the course of it’s life. While it may not seem like a big deal, many buyers and sellers will look for a well maintained car, as it will mean less issues in the future. A well maintained car is less likely to have repeated issues. The report can also indicate any repeating issues that exist with the vehicle currently, such as bad breaks or a faulty piece of equipment in the car.
3. Any Cosmetic or Surface Damages: Many buyers will look for cosmetic and surface damage as a way to bring down the vehicle’s price, as cosmetic damage both outside and inside the vehicle will affect the vehicle’s condition. Dents, paint chips, or inside damage to the vehicle are all evidence of cosmetic or surface damage in the car details.
4. Accident Reports: Another factor that will affect the car’s details and condition are the accident reports. Like the repair history, a vehicle’s VIN # will also show the accidents that a vehicle has been in. Significant accidents that required repair or a junk title will affect your vehicle’s resale value, as it could mean potential issues or damages that the buyer will have to deal with in the future. Many borrowers want to find a vehicle that has little to no accident history.

As long as you have the title to your vehicle, you have proof that you own the vehicle. Without it, you are not able to prove that you are the sole or partial owner of the car, which can lead to trouble. A title to a car could be a physical document, or an electronic document. In some states, car titles are referred to as pink slips.

A car title may also include the weight of the vehicle, as well as the title number, and the engine number. Some titles also include the type of fuel for the vehicle, as well as the number of cylinders in the engine and the license plate number issued with the vehicle. All titles must be officiated by the state officials and the Department of Motor Vehicles. If you happen to misplace or lose your title, you may be able to obtain a duplicate title or copy. This will cost a fee, and it is wise to keep your title out of the vehicle and in a safe place until it is needed.

A car title is a means of documentation in the event of a sale, crime, or other means of identification and registration. Since the car title is able to verify possession of the vehicle or ownership, it is legally helpful in many cases. It also acts as a means of identification to dealerships or other interested parties in a sale. If the vehicle is being financed or has a lienholder, it is more than likely kept with the lienholder until the debt is paid off.

In the event of a sale of the vehicle, the title must be transferred to the new owner. A buyer and seller must have identification in order to do this. It can be done locally at the Department of Motor Vehicles, and will change the ownership of the car by transferring the title to the other party’s name. Both parties will need to provide their full information, which includes their home address and the purchasing information. The purchasing information will cover the price, the date of purchase, and other necessary information that the legal document requires. In some states, the vehicle title must be notarized in order to be transferred to the buyer. When the vehicle title is transferred, the bill of sale must also be recorded. The bill of sale will include the date and location of the sale, as well as the description of the vehicle in case of fraud.

While it is not wise to keep the vehicle’s title in your car due to theft or misplacement, an owner will need to have the certificate of the title with them to sell the vehicle. When buying or selling a vehicle, the certificate of the title will need to be present. In some states during the sale of a vehicle a title must be notarized in order for the title to be transferred. This is during a private sale with a private buyer, as a dealership will take care of the red tape.

The certificate of the title will record the necessary information about the vehicle. This includes the engine make and model, as well as the type of fuel the vehicle needs. It will also include the vehicle’s make, model, and year, as well as the origination of the vehicle. This simply means the factory that it was manufactured in, and other small details that may not be relevant to the sale. In some cases, the recorded odometer will also be included in the certificate of the title. The certificate title will also include the vehicle’s VIN number, which is a special identification number for the vehicle. It will include important information such as the airbag type, and the model year. Generally, the VIN number will also indicate the vehicle type and the plant name that the engine or vehicle was manufactured in.

If a vehicle owner is selling a vehicle to a private buyer, the vehicle title must be transferred legally to prove the new ownership. Both parties will need to disclose their personal information, which includes the buyer and seller’s address, as well as the purchasing information. The purchasing information includes the price that the vehicle is selling for, as well as the time, date, and location of the sale. Often, a notary is required to document this transfer to ensure the legality. Title transfers for the certificate of the title can also be done at the local DMV, or Department of Motor Vehicles. While there may be a small fee to transfer a title, it is not much of a hassle as it may seem. Both parties will include the required information, and the bill of sale will be generated. The bill of sale will cover the information about the sale, including the price and the date or location of the sale.

A clean title is referring to the vehicle’s condition. This means that the vehicle has never been in a significant accident that would deem the vehicle as totaled. If a vehicle has been totaled, it is either a junk title, or salvaged title. To be considered a totaled car, an insurance company would deem that the vehicle had acquired so much damage it is not worth fixing. The vehicle would cost more to fix than the vehicle is actually worth, so it would be deemed totalled. This makes the car a junk title unless it is salvaged and inspected again. A clean title, on the other hand, has a vehicle that has not experienced any devastating condition that would require intensive repair. Generally, clean titles are worth more than junk or salvage titles in terms of the market resale value.

A clear title is one that has no liens against the vehicle, and the owner is not currently financing the vehicle or paying off a loan on it. This means that the owner of the vehicle owns it free, and clear of any liens. With a clear title, there are no liens from creditors, title loan lenders, or other parties that could have partial ownership of the vehicle through a lien. If you are unsure of whether or not your title is clear, it can be easily checked if you have the VIN # to your vehicle. By going on your state DMV’s website, enter the VIN # and check the title to confirm the status. Any liens, or claims to the title will generally be present through checking the VIN #.

If you already have a title loan out with your vehicle, you will not be able to use it to obtain a second title loan. However, if you are financing your vehicle, it is possible to obtain a title loan. If you are financing a vehicle that has just a few payments left or is somewhat close to being paid off, you could still be eligible for a title loan. What some title loan lenders will choose to do is to cover the rest of your payments with the financier, and then include that in the portion of your title loan. This will come with it’s own interest rates that you will need to pay off as a borrower, but it is still possible to obtain a title loan without a clear title. If your title is not damaged and is clean and clear, that is the easiest way to obtain a title loan.

There are many different types of collateral loans that exist. Some of the most popular types of collateral loans are mortgage loans, car loans, and title loans. All of these loans require a form of collateral or collateral agreement to be secured. For a mortgage loan, the home is the asset for the collateral. For car loans and title loans, the vehicle will be the collateral for the loan.

Other assets could be used to secure a loan, such as a savings account or some types of investment accounts. Generally, the more valued the asset is, the more a borrower could potentially receive through a loan. This is in the case of a title loan, where the value of the asset is often what the loan amount is based off of. While state laws may regulate the loan amount, generally, a lender will use the value of the collateral to determine the funding amount.

Any lender will need a sense of security before issuing a loan that the borrower has the ability to repay the loan in full. Lenders prefer borrowers with excellent credit history, and little to no marks on their credit reports. Since perfect credit is not always attainable for some borrowers, collateral loans can be a form of security for those that do not have perfect credit to obtain a loan. Collateral loans help minimize the financial risk of lending to a borrower with less than ideal credit, and helps a borrower obtain funding.

Since collateral loans have a form of security for the lender, they generally can offer lower interest rates in comparison to unsecured loans. When a borrower is using a collateral loan to obtain funding, the asset that is being used will have a lien on it. This simply means that the lender will have a legal right to this asset in the event that the borrower fails their financial obligation to repay the loan. For collateral loans, failure to satisfy your debt obligations could mean losing your vehicle or home. Repossession usually happens only after a borrower is more than 30 days behind a payment. With some lenders, over 120 days means repossession, but lenders will often contact the borrower to find another way to help the borrower repay. If a borrower is concerned about defaulting on their loan, they should try to refinance, or work out a rollover agreement with their lender.

Lending money comes with the risk that the loan could potentially not be repaid. This is why creditors will charge interest, as it is the cost of loaning money to a borrower. Interest rates can vary depending on several factors, including the borrower’s credit history, and the type of loan the borrower is applying for. A borrower with a high creditworthiness will receive more optimal interest rates than those with a poor credit rating. Being a responsible borrower could potentially save money when it comes to loans!

Without interest, the creditor will not make a profit, and takes on the risk of lending a borrower money. Secured loans will generally have more competitive interest rates in comparison to creditors that offer unsecured loans, as it means less risk for the creditor if there is collateral involved.

With the use of a creditor comes the risk of loan default. To default on a loan with your creditor means that you have forgone payment for at least 30 days or more. If a creditor is not receiving payments, they may choose to repossess assets if it was a collateral loan.

If the borrower is declaring bankruptcy, some of the borrower’s assets could be sold to repay the debt. Generally, the assets must be non-essential. During a bankruptcy declaration, a trustee will prioritize the creditors that the borrower is in debt to, and make sure that the sold assets can cover partial payments towards the obligations. If the loan is unsecured, they are prioritized last in the cases of bankruptcy. Some creditors will take a borrower to court, which can result in lost wages, or other actions that the court may seem fit. If a loan was secured through collateral, the creditor can often repossess the item and use it to pay off the remaining debt. For cases like title loans, the creditor will often repossess the collateral and sell it at an auction.

Some creditors will choose to help the borrower refinance their loan if they default, however. Refinancing with your creditor could potentially mean more optimal loan terms, especially if your financial situation has changed during your loan term. When refinancing with a creditor, a new loan contract is signed, with new interest rates and additional terms or fees. While it may cost more in terms of interest to refinance when you are defaulting on a loan, it could potentially be worth it to avoid a bad mark on your credit report.

A borrower’s credit history will show their account details for all of their credit accounts. This includes closed accounts, and the type of credit account, as well as how long it has been open and how much is owed. Credit histories will also detail how much available credit is used, the recent inquiries on their credit, and the borrowers repayment history. Paying on time is one of the most important pieces of information to a creditor, and it holds the most weight in the credit report.

A credit history will also include information about the borrower’s history with bankruptcy if applicable, as well as liens, or any collections. These are factors that will influence the creditors when approving or denying them, and can affect their credit score.

Every individual that uses financial institutions to establish credit or obtain funds will have a credit history. Credit histories are used by financial institutions to establish creditworthiness and credit scores. When credit bureaus are determining a borrower’s credit score, they will look for credit utilization, payment history, credit diversity, and other means to calculate their credit.

When a creditor or lender is looking at a borrower’s credit history to determine creditworthiness, they will look at:

1. The borrower’s recent credit activity, and any new accounts could affect their creditworthiness.
2. Their repayment history, and if they have been on time, as well as if they have made more than the minimum payments each month.
3. The length of time that their credit accounts have been active, and the diversity of the accounts. More diverse credit accounts signify a well rounded credit portfolio.

A borrower’s credit history and report will affect multiple areas of their life. Poor credit history can prevent a borrower from being accepted for a mortgage, or a vehicle. In some cases, an employer may also look for an applicant’s credit history to see their responsibility as a borrower, as those skills may translate to the job.

Borrowers with no credit history, such as college students or young adults may experience a lot of difficulty being approved for loans without a reputable co-signer. In this case, it can be helpful to apply for a credit card and only use it for gas, and pay it immediately to establish a strong credit history.

While bad marks on a credit history can hurt the borrower’s credit, it doesn’t stay there forever. In seven to ten years, items will disappear from a borrower’s credit report. Some credit repair companies could potentially speed up this process, but it can be costly.

A borrower’s creditworthiness is dependent on several factors in their credit history. The most important factors are a borrower’s repayment history, and credit score. Your credit history will show how much debt utilization you have, and what balances your credit accounts are at. It also shows your recent credit inquiries, and if you make your payments on time. On time payments, low credit utilization and no recent inquiries on your credit indicate to a lender that you are a trustworthy borrower that is responsible when it comes to debt obligations.

A credit history will show a detailed outline of your credit report and credit score, which indicates your creditworthiness to a lender.

There are a few things that a borrower can do to improve their creditworthiness. Creditworthiness is important, as it can determine whether or not a borrower is approved for a car loan, mortgage, or new credit card. The more creditworthiness that a borrower has, the better interest rates they are offered and the less fees they will receive when applying for a loan. Better loan conditions or credit card interest can save a borrower a lot of money in the long run!

To improve creditworthiness, a borrower must improve their credit report and score. This can be done first and foremost by on time payments on their credit accounts, and more than one payment per month. This improves the repayment history portion of the credit report, which is one of the most important pieces of information when the credit bureaus are determining credit score. A borrower’s payment history will account for at least 35% of their credit score, which makes it the most important factor in creditworthiness! Additionally, borrowers need to lower their credit utilization, and not open up any new credit accounts.

Lowering credit utilization simply means that each of your credit accounts are not maxed out, or used entirely. For example, your credit card might have a credit limit of $1,000. If you have spent $800 with your credit card, you have 80% utilization on that account. To improve your creditworthiness as a borrower, you will need to pay down that account to 30%-50% utilization. This shows lenders and creditors that you repay your debts responsibly, and don’t hold onto debt. Using these methods to help your creditworthiness will also potentially help your credit score! High credit scores mean more creditworthiness! Having a high credit score can help you as a borrower in many different avenues financially besides credit worthiness. Higher credit scores could mean better interest rates, and better car insurance rates in some cases! Both can help a borrower save money in the long run.

When it comes to credit scores, there is no grey area for what is considered good and bad. An excellent score is above 800. A very good score is between 740 and 799, while a good score is 670-739. A fair score is 580 to 669, and a poor score is 300-579, as they are considered less desirable borrowers. A good or excellent score can help a borrower save money in the long run, as it will help them obtain better interest rates, as well as better car insurance. A credit score is directly tied to a borrower’s creditworthiness, as lenders and creditors will use it to approve or reject them from a loan. Good or excellent credit will help a borrower obtain loan approval, as well as more competitive interest rates and less loan fees. Credit scores can also determine what mortgage company they use, as well as what vehicle they will drive if they are financing.

If you are a borrower that does not have a score that falls into the good or excellent range, you may want to consider improving your credit score. The quickest way for a borrower to improve their credit score is to make on time payments, and pay more than the minimum due with their loans and credit cards. On time payments, and lowering the credit utilization are the quickest ways for a borrower to improve their credit report! While it may take time to completely pay off the loans you may have, it is worth it in the long run to improve your credit score.

There are three major credit bureaus that calculate credit scores. The credit score model is known as the FICO score model, and it is used by most financial institutions when looking at a borrower’s credit report. When a borrower is applying for a loan, or looking to finance a vehicle, the financial institution will most likely use the borrower’s FICO credit score as a means to approve or reject them.

Experian, Equifax, and TransUnion all have a hand in determining a borrower’s credit score. There is some differing information between the three bureaus, but they are all in charge of updated, reporting, and storing consumers credit histories.

A borrower’s credit score is determined by percentages that are based off of their credit report and histories. Each factor that determines a borrower’s credit score is split up by importance in these percentages:

1. Payment History: Payment history indicates a borrower’s trustworthiness and responsibility as a borrower. On time payments, multiple payments per month, and paying more than the minimum will help a borrower have a higher credit score. Payment history makes up 35% of how a borrower’s credit score is calculated, and holds the most weight out of the entire credit report. Borrowers that make more than one payment a month will often see their FICO score rise!
2. Credit Diversity: Having multiple types of credit is to a borrower’s advantage. Diverse credit accounts show that a borrower is well rounded financially, especially if they have mortgage loans, credit cards, or other types of credit.
3. Credit Utilization: As a borrower, there is a certain amount you are allowed to borrow before you have reached your credit limit. This is called your credit utilization, and the more you borrow, the higher your utilization will be. Utilizing all of your credit will increase the percentage used, which can reflect negatively on your score. High utilization usually indicates on the credit report that a borrower is overextended financially, and not paying down their debts. The way to fix this is to be aware of how much utilization you carry. If you have used over half of your available credit and now have 50% utilization, it can hurt your credit score and your credit report! 30% of your credit score is calculated by your credit utilization.
4. Length of Your Credit History: A longer credit history will help your credit score, as it shows lenders you are an experienced borrower. 15% of your credit score is determined by your length of time with a credit score and credit history. However, it is still possible that new borrowers could still have a good FICO score. The age of your accounts, and the length of time you have had them will affect your score calculation.
5. New Credit Accounts: Opening many different credit accounts in a short period of time will potentially hurt your credit score, as it shows a lender you are in a bad spot financially. 10% of your score is affected by new credit accounts! If you are a borrower hoping to apply for a loan or a mortgage, it is best to not open any new accounts ahead of time to keep your score in top shape.

If you have open credit accounts that are current, they are the biggest factors in determining your credit score. With those current accounts is a credit limit for each of them. This credit limit will show how much of the credit you have used, and how much is left. This is known as the credit utilization. The percentage of utilization that a borrower has will impact their score significantly! This is based off of the current accounts that are open that a borrower may have. The more accounts that are open, the more they will have leverage on a borrower’s score.

Borrowers that have new and current credit accounts will also find that their accounts affect their score in other ways. By opening a new account and then another within a small time frame, it can negatively impact the borrowers credit score. Opening multiple accounts when a borrower has any open current accounts will show desperation, or lack of financial stability to creditors. While this portion of the credit report will only affect the borrower;s score by 10%, it is enough to impact the score. To avoid damaging your credit score, be mindful of how many accounts you are opening at once. Many new credit cards being opened will definitely be a red flag for creditors and lending institutions.

Every time you open a credit account, it will lead to a credit inquiry that affects your credit score. It can negatively affect your score, but this is usually temporary. With more credit accounts available on your credit report, it changes your utilization ratio, just as asking for a higher credit limit would.

Your current credit accounts will dictate a large percentage of your credit report each month. To improve your credit report and your score, it’s best to pay off your credit utilization so it is less than 50%. Ideally, borrowers should have no more than 30% utilization on their current credit accounts. Paying down your balance should be a top priority if you are looking to optimize your credit score for a loan, or other means.

There are three different types of current accounts that will contribute towards your score. Revolving, open, and installment credit accounts will affect your score. The most common current account that most borrowers have is a credit account that is revolving, meaning that you can freely borrow from it while there is a cap. The cap is known as the credit limit for that current account, although it can change as a borrower has a lengthy history with that account. They can opt to increase or decrease a limit to reflect a good or bad credit history.

Loans are considered default when a borrower is unable to, or will not make timely payments. Or, missed payments, and stopping payments makes the loan go into default. While it can vary by state, a loan is first delinquent in the 30-90 days past its due date. Once it is delinquent, the major credit bureaus will report it, and it will affect your credit score tremendously. On time payments make up 35% of how your credit score is calculated!

After a loan is delinquent, a loan is in default. Defaulting on a loan results in serious consequences, including a dive in your credit score. Since payment history makes up the biggest percentage for how your credit score is calculated, not making a payment on time or avoiding your payments will make it take a serious hit on your credit report. Defaulting on a loan could also result in reduced loan options in the future, and higher interest rates on any existing debt you may have. When defaulting on a loan, a lender or creditor may choose to include late fees in addition to your monthly payment.

The type of loan that you are defaulting on matters. If it is a student loan, there are some options such as forbearance or other means to help you meet your payment obligations. With a secured loan, the consequences of default are different. Depending on the state you reside in and the terms of your loan contract, defaulting on a secured loan could result in the repossession of the collateral. With a secured loan such as a title loan, the vehicle’s title is used as collateral to secure the loan. However, this also means that if the borrower defaults on the loan and makes no effort to repay the loan, the vehicle could be repossessed.

When defaulting on an unsecured loan, such as a credit card or medical debt, there is nothing to repossess because there was no asset in the loan contract. While nothing can get repossessed, a credit card provider could potentially sue a borrower for defaulted loan payments. Most credit card companies choose to put a loan into default when a payment hasn’t been made for at least six months. Then, the debt goes to a collection agency.

If defaulting on a loan is a possibility, there are some options. Many lenders could offer the option of refinancing your loan, which could offer more affordable loan terms. If loan refinancing isn’t an option, what you may be able to do is to consolidate your debt, and find more affordable interest rates and loan terms.

If you have ever signed a loan or will sign a loan agreement, there are disclosure pages that every lender or creditor is required to provide. These disclosures are found in mortgage loans, title loans, and just about every loan that a borrower could take out. The lender is required by law to include all financial disclosures and aspects of your loan. This includes interest rates, loan origination fees, and other aspects of the loan. Disclosures are done to protect and inform the borrower, as well as protect the lender.

When applying for a loan, the lender will provide an applicant with initial loan disclosures before the loan is signed. Disclosures help provide the necessary financial information that the borrower will need to make a decision about their loan.

There are many different aspects of the loan agreement, but the most important are the disclosures. When taking out a loan, a lender is required to provide the borrower with every aspect of the loan. This includes installment loans, collateral loans, and mortgage loans. In the disclosures, it will include information about your loan terms, your projected monthly payments and their schedule, as well as any other fees and costs that are associated with your loan.

A lender must provide this information up front, and clearly articulate it to you as the borrower. With some loans, there can be fees like lenders fees, or application fees that need to be discussed prior to the borrower signing the loan agreement.

Before signing your loan agreement, be proactive and read all of the information and disclosures. It will let you know what your loan schedule is, and what your interest rates will be. If you are paying off the principal, or the interest first, that is important to know ahead of time! Any fees that are included in the disclosures will be lined out in the agreement for your loan. This includes loan origination fees, loan starter fees, late fees, interest fees, and anything else you will need to pay on top of the principal balance of your loan. Understanding all of the loan disclosures before signing your loan agreement can help save you money in the long run, especially if the disclosures are giving you information that you were not aware of before.

If the loan is for a home or a large purchase that affects your financial stability, it can be helpful to read the disclosures and loan agreement with your lender and a third financial party that could interpret the agreement for you. Not everyone has extensive financial knowledge, and having another party involved could be helpful for deciphering all of the aspects of your loan.

The DMV offers a multitude of services, including:

1. Vehicle Registration: This document connects you to your vehicle, and proves you are the owner of the car. Each state will require you to register your vehicle and prove you are the lawful owner.
2. Safety and Emissions Testing and Inspections: This test and inspection will show the level of air pollutants that your vehicle emits from the exhaust. Many states will require regular inspections and tests for emissions each year, particularly for certain vehicles. These tests and inspections must be completed at the Department of Motor Vehicles. If your vehicle is diesel, a smog inspection is required for certain makes and models. 
3. Driver’s License Renewal and Issuing: After completing your drivers tests at the DMV, a driver’s license will be issued to you. Once the license is issued, it will need to be renewed periodically at the DMV. 
4. Identification Cards: Since the United States does not require a national identification card, some use their driver’s license as a form of identification. Other forms of identification from the state could be issued at the DMV as well.
5. Providing and Storing Driving Records: The DMV is responsible for keeping and storing the records of driver’s within their state. This is done for legal and safety purposes. 
6. Title Transfers: If you are hoping to sell your vehicle, or transfer ownership, this can be done through the DMV. There are often fees to do this, and the seller and buyer will often need to both be present to do so. This is usually occurring when a bill of sale is created, and both parties will need to provide their information. 
7. Selling Personalized License Plates: If you want your vehicle to stand out with a personalized plate, the Department of Motor Vehicles is the place to do so! 
8. Bills of Sale for a Vehicle: When a bill of sale is created, the location and time of the sale is marked by the Department of Motor Vehicles. The buyer and seller will need to include their information as well to have the bill of sale created.

If you drive a vehicle, or will drive a vehicle, it is impossible to avoid the DMV! Since the United States has no national identification card, many choose to use their driver’s license as a form of identification. Driver’s licenses are required by law to operate a motor vehicle, and must be renewed on time on a regular basis. This renewal can only be done only, and only by visiting your local Department of Motor Vehicles. Many other services are provided by the DMV for your convenience and are easily accessible.

To have positive equity in your vehicle, you must have paid off more than you owe on your vehicle. This means your car is worth more than what you owe, and has value in the market. If your car is worth less than the amount you owe on it, then the vehicle has negative equity. This is not the norm, but this can happen from accidents, high mileage, or potentially theft of the vehicle. High mileage, accidents, or other damage to the vehicle can significantly lower the resale value of the car.

If you are looking to sell your vehicle, or take out a title loan, it is important to know the worth your car has. First, if you are financing the vehicle, find out how much you owe on it. This can be done by simply calling your financial institution or auto lender. Or, check the website that you make payments on, and see how far you have gotten. It will let you know the amount you owe, what you have paid, and the number of payments you have left.

It can be tough to find out your car’s value, as your vehicle’s worth will depreciate over time. Some vehicle models will sell more than others, and some will hold more value than others over time if they were recorded as a model that held up over time. Some of the factors that contribute to determining your vehicle’s equity are:

1. The Make, Model, and Year of the Vehicle
2. Any Cosmetic or Surface Damage
3. The Miles on the Odometer
4. Any Accident Reports

All of these factors will contribute to the value of the vehicle, and affect the resale value. Some accidents will result in your vehicle being worth nothing, but this happens when the car has been totaled and would cost more to repair it than the vehicle is worth. If you are having trouble finding the equity in your vehicle, one of your options can be to check Kelley Blue Book online. This website is an excellent resource for car owners that are looking to buy or sell used vehicles. This is because Kelley Blue Book can analyze market trends, and what your vehicle is selling for on the market.

If your vehicle does not have any equity, or has negative equity, there are not many ways you will be able to utilize it. However, if you are considering selling your vehicle, you can use its equity to trade it in at a dealership and receive a better deal on a different vehicle. Or, as a car owner, you have the option to obtain an auto title loan with your vehicle.

Your FICO score is formulated from an algorithm, and it is not random or by chance. The FICO score has five categories that it will base your score on, and they each weigh differently on your score.

1. Payment History: This is the most important part of your credit report, and will hold the most weight on calculating your credit score. Payment history makes up 35% of your FICO score! This means a borrower is making on time payments, or paying more than once a month, and paying more than just the minimum payment. Paying on time for each bill is the most important thing you can do for your credit score. Any late payments or defaults will impact your FICO score severely.
2. Your Credit Utilization: On your credit report, there will be a percentage of credit utilization. This is your balance to limit ratio, meaning you are spending a portion of your credit limit, and the balance becomes the credit utilization percentage. For example, if you have a $1000 credit limit and you have $500 on your credit balance spent, you have 50% credit utilization on that credit account. Ideally, you never want your balance to be above 30%, and you should try to pay your balances in full each month.
3. Length of Credit History: Your time spent as someone with a credit history matters! The longer you have had a history, the more positively it could affect your FICO score. While this is only 15% of your credit history, a longer history could increase your credit score.
4. New Credit Accounts or Current Accounts: If you are opening up multiple new accounts in a short period of time, it could negatively affect your FICO score. This is because it shows financial desperation to the credit bureaus and lenders! Recent credit is not just about inquiries, and your account status will matter as well. This means paying off accounts, or the status of your credit accounts will affect your score.
5. Credit Diversity: The types of credit that you choose will also affect your credit. A well rounded credit report with different types of accounts and loans will show credit bureaus that you are well rounded financially. This will help your credit score, and it accounts for 10% of your FICO score calculation. Ideally, your credit report should have multiple accounts, such as credit card accounts, installment loans, or mortgage loans. This can help improve your credit report, and help your credit score in the long run!

Depending on the type of GPS installation, the price may change.However, the average price for a GPS tracker is $20-$50. For the more expensive grade GPS devices, $100 is an average price. A mount GPS for your vehicle could also be installed for the same price, and it is meant to help driver’s get from point A to point B while they drive safely. However, some driver’s aren’t interested solely in directions when thinking of getting a GPS! There are GPS location plans per month that start at $20-50. This means that an agency is monitoring your vehicle, and keeping track of your location for various reasons.

Regardless of the reason, GPS installation does not need to be expensive to be effective. While there are payment options available for those that want to get GPS plans, there are smaller devices that could be installed at GPS installation centers that can also be effective. Some devices could even be ordered off of Amazon and installed yourself in a pinch! While GPS installation centers are the safer option that guarantee effectiveness, the DIY route is always an option if you are hoping to save money.

There are many different reasons why a car owner would choose to have their vehicle with GPS Installation. GPS installation provides real time tracking on a vehicle, which is useful for a few different reasons. Some choose to install GPS for work reasons, as they may need to track a company car and where it goes to make sure the employee is not abusing privileges. Work cars are often installed with GPS for safety reasons as well.

Some choose to get their GPS installed in case of car theft, or a kidnapping. With the case of a car theft, the vehicle owner can call the GPS monitoring system, or track it online and find their vehicle with the help of police. If a kidnapping happens, the GPS installation could potentially save a victim’s life! GPS installation could also be done simple for safety and prevention.

If you are looking to get a GPS for road safety, that is also an option. With a visual GPS device installed onto your car’s dashboard, it can safely provide you directions while getting you from point A to point B. Some GPS installation centers could also install a GPS that is voice activated, so you can get the directions without even touching the device!

A grace period will allow a borrower to have a little bit of time to make a loan payment, even if there is a little delay. While the exact time of the grace period is up to the lender to decide, the grace period is helpful for both the borrower and the lender! The borrower has a few days to make their payment and not default on the loan, and the lender will still get what they are owed. With a grace period, the delayed payment without penalty usually means no extra fees or interest is added to the payment. Since no late fees are charged during the grace period, this delayed payment will not result in the loan being defaulted. Defaulting on a loan payment can significantly hurt a borrower’s credit score, and be very detrimental to their financial stability. With a grace period, the worry of defaulting on the loan is removed.

A grace period on your loan is often written into your loan contract. This means that in most cases, in order for borrowers to have a grace period, it must be written ahead of time. While there are some exceptions, this is the majority, and not all grace periods are the same. While some lenders will put in the loan contract that no interest is to be paid during the grace period, others will not. Some lenders will institute small interest fees or other smaller fees during this period that are added to your loan, and you will pay off eventually. Before signing any loan, it is important to understand the terms and conditions of the loan contract, which includes the grace period information.

While a loan grace period is the most common type of grace period, there are other kinds to consider. The most notable would be the credit card grace period. With a credit card grace period, a consumer will make a purchase. In this grace period, there is a period of time before interest is charged on the purchase. Generally, this is around 21 days, and is often to protect consumers from being charged for a purchase they might return, or before the monthly payment is due.

If you are unable to make payments during the designated grace period, it could result in late fees, penalties, or defaulting on your loan. If your loan is a collateral loan and you default on your payments, it could result in repossession of the asset. While many lenders will try and work a solution before this happens, it is best to not allow multiple missed payments and risk repossession.

While hidden fees are most often talked about in terms of loans and loan contracts, there are other types of hidden fees. As a consumer, you may have come across these fees in your cable bill, phone bill, or even a night’s stay at a hotel! If you’ve ever received a bill with a contract and it was higher than what you previously discussed, it may be a result of hidden fees in your contract.

Some types of hidden fees in loan contracts are only added at the end of your agreement, and you may not know what they are for. Loan origination fees, loan interest fees, and other types of hidden fees could be included in your loan without you fully understanding what they are. While these undisclosed fees may be a one time charge to your bill or loan, they often appear in the fine print of a contract. Hidden fees can often be deceptive, and can be found in hotel industries, airlines, and other types of consumer industries as well as with loan agreements.

You may come across a few different types of hidden fees. For example, you may stay a night in a hotel. The original advertised cost of a hotel room may be $100 per night. However, when you get your bill in the morning, you may see $120 instead of just $100. Some hotels or resorts will include hidden fees like amenities fees, which include using the pool, wifi, or gym while you are at the hotel. Others will charge for parking, and fees associated with the hotel.

For a loan such as a payday loan, the hidden fees will have specific names that you may be able to watch out for. Fees like loan origination fees, late payment fees, prepayment penalties, or service fees are all examples of fees that could be hidden. When securing a loan contract, these are all things to look out for! Prepayment penalties are if you have the means to pay off your loan early, you will be penalized for doing so financially. This means a fee will be mandatory if you choose to pay off your loan before the loan term is finished.

Late payment fees can be avoided if you make your payment on time, but other hidden fees such as loan origination fees cannot be avoided! While not all lenders will include these fees, they are something to watch out for when choosing a lender.

Installment loans are repaid by the borrower with regularly scheduled installment payments. There is a schedule that is agreed upon by the borrower and the lender, and it details the amount per month, and what is being paid off. For most installment loans, the borrower will start off repaying a portion of the principal borrowed and the interest on the loan. As the loan term goes on, and the borrower has made consistent payments, the interest on the loan decreases. This means the borrower is repaying the interest due, and will eventually just pay the principal until the loan is paid off in full.

This is done on a schedule that is decided upon by both the lender and the borrower. By choosing installment loans, often the borrower will have access to more optimal interest rates, and better loan terms in comparison to other loans. The regular and scheduled payment that occurs monthly throughout the loan term can also make it easier for the borrower to budget. This is because the payment stays the same until the loan has been paid off!

There are two types of installment loans. One is obtained through collateral, and one is not. While mortgage and auto loans are collateralized loans, personal installment loans are unsecured and have no collateral. This makes them non-collateralized loans, which means they are obtained through the borrower’s credit score rather than a borrower’s asset and income. While each type of installment loan has pros and cons, a non-collateralized loan is more likely to be harder to obtain unless your credit score is perfect. If you are a borrower with less than ideal credit, installment loans that are collateralized may be the best option for your finances.

Collateralized loans are secure, which offers more competitive interest rates, but could also result in repossession if there is a loan default. Personal loans offer a higher risk to the lender, so they will not often have ideal interest rates, but there is no chance of repossession of an asset. Depending on your financial situation, one may be more preferable over the other.

Interest can often be calculated by an annual rate, which is known as the annual percentage rate. (APR) Interest is charged on top of the principal balance of the loan, so you will be repaying more than your principal balance in the end. Generally, if you have a decent to excellent credit score, you are less of a risk to the lender. This means that you will often receive lower interest rates, while high risk borrowers will receive higher interest rates. Having a poor credit score will cost you when you are searching for a loan! Credit score is how many lenders choose risk assessment, and will base your interest rate upon your credit report. Interest rate is the cost of borrowing money from a lender, and it acts as a means of profit for the lender.

If you are borrowing money or an asset in a transaction, there will often be an interest rate applied. Borrowers use money to purchase vehicles, homes, fund businesses or ventures, or even pay for school. The money you borrow is often repaid with installment loans, or a lump sum. Installment loans can often be the most optimal way to repay a loan with interest, as they will equally distribute your monthly payments to pay down both the interest and principal until it is repaid in full.

While it can seem difficult to have to pay to borrow money, it is because lenders require compensation for the money you are being lent, and the losses they may acquire during your loan period. Your original loan and total repayment amount will have a difference, and that is the interest that will be charged and applied to the principal.

For example, if you take out a loan of $10,000 from a credit union, they may offer you a loan agreement with 10% interest. This means that you will need to repay the principal amount of $10,000 + ($10,000 x 10%) = $10,000 + $1000 = 11,000.

While you initially borrowed $10,000, you will need to repay $11,000 in total with interest charged. This is an example of simple interest rate calculation, which is the principal balance multiplied by the interest rate. While simple interest is often used with loans, there are compound interest methods for loans which will have the borrower paying more interest. Instead, compounded interest will be charged monthly to a payment, which has the interest accrued from the previous months in the loan agreement. Compounded interest can be often more costly to a borrower than a simple interest plan for their loan.

Repossession simply means to reclaim an asset or ownership with something that has not been fully paid off, but retains value. For most repossession instances, it is usually a vehicle, house, or asset that will be repossessed to repay the loan. While home foreclosure is a type of repossession, most cases that involve repossession are a result of a defaulted title or auto loan.

With a title loan or an auto loan, the lender is the lienholder on the title while the loan is being repaid. If the borrower misses or defaults on their payments, the asset or the vehicle could be repossessed to repay the debt. Usually, the vehicle is sold in an auction to recoup some of the loss the lender may face.

As soon as your payment becomes delinquent, the possibility of repossession is there. After delinquent payments or defaulted payments, the lender has a legal right to claim the asset, or repossess it. If they are the lienholder, as soon as a payment is missed they could repossess the vehicle without giving you notice. Often, the lender will hire a repossession company to claim the asset, and they will not need a court order to be on your property in most cases. Once the property has been repossessed, it can be difficult to negotiate with the lender. In some cases, the lender will go after the borrower if the asset does not cover the entire debt that was owed.

The best way to avoid repossession is to put all of your loans on autopay. This way, you are not going to miss a payment due to accident or negligence. If you are concerned that you may default on your loan, some lenders will agree to a payment arrangement instead. This way, you pay a partial payment, so the loan will not become delinquent. Often, the lender would rather agree to a payment arrangement than repossess the vehicle.

Besides losing your asset or vehicle, the consequences of repossession can be severe. In most cases of repossession, it occurred because the borrower defaulted on a payment. Defaulting on any loan in itself will cost a borrower to lose many points on their credit score. Payment history makes up 35% of how a credit score is calculated, and failure to make payments will significantly decrease your credit score. A repossession on your credit report will also hurt your score, and could result in lenders choosing to not accept you for future loans. Repossessions could stay on your credit report for up to seven years, and will impact your score tremendously. Repossession could also result in you being sued by the lender, or having your wages garnished in extreme situations.

While late payments can happen, they will not affect your credit report until they have remained unpaid for at least 30 days. This is protected by federal law to help consumers financially, and a late payment before 30 days will not be reported to the credit bureaus or included in your credit report.

If it is beyond the 30 days, however, it is no longer an overlooked bill and it becomes delinquent. Delayed payments, or defaulted bills will significantly impact your credit score, and hurt your credit report in the long run.

A credit score is calculated by your credit report. Your credit report will show when late payments are delinquent, and it will be accounted for when your score is calculated. Payment history makes up 35% of how your credit score is calculated, so late payments will hurt your score. Depending on the type of loan and the amount of time that has passed, it could impact your score as much as 100 points!

The type of loan a borrower chooses will affect the amount of funding that they could receive. Personal loans are loans where the eligibility is based upon a borrower’s income, as well as their credit score. A larger income, and a higher credit score will yield a larger funding amount for the borrower. Without a stable and decent revenue, as well as a good credit score, a borrower will likely not receive a large loan amount. Or, they may not even be approved for the loan!

With a title loan, however, the loan amount is based upon different factors. Instead of a borrower’s credit being the main criteria for approval, other factors will be more important. A borrower’s equity in their vehicle, as well as their income will help determine their eligibility and loan amount. The more equity in the vehicle, the more a borrower may be able to borrow. A luxury vehicle with a low odometer and equity will likely get a borrower a larger loan amount. Title loans may also be easier to apply for and receive approval in comparison to other loans. If a borrower needs a higher loan amount and they do not have perfect credit, title loans can be a great option for them to receive funding. Or, home equity loans are another loan with collateral that could result in a higher loan amount. If you are in need of a larger loan amount for a home project or remodeling, many homeowners will choose to take out a home equity loan to complete their project. Often, remodeling can be expensive, but it will improve the quality of the home and raise the value. With a home equity loan, the loan amount is based upon the value of the home.

After receiving approval for a loan and looking at the loan amount you are eligible for, you may wonder how to calculate your loan payments for a simple loan. If you choose an amortized loan, your payments will be equal, periodic payments. Each payment is going towards both the interest and the principal of the loan, so they are being paid off consistently, and the interest is not accruing as the loan is paid off. With an amortization schedule, you will take the loan amount total and multiple it by the interest rate in the loan agreement. Then, divide by 12 to get your monthly interest. After that, subtract your interest from the total monthly payment, and the leftover amount is what you are paying towards the principal each month. This is an effective example of how to calculate your loan payments with your offered loan amount.

There are three main types of loans that you may be looking to apply for, and you can choose to calculate your loan based upon the type of loan you applied to.

1. Amortized loans: This type of loan is the most common, and it involves paying both the interest and the principal periodically over time. Often, these are most commonly seen in auto loans.
2. Credit Card Advances: With a credit card advance, your loan amount is your available credit line. While you will be given the option to pay the minimum amount, more interest will accrue, and it will cost you more money if you delay on repaying it.
3. Interest Only or Compound Interest Loans: Initially, your loan payments will not go towards the principal, but just towards the interest. After the interest has been paid, then the principal will be paid off. If the loan is compounded interest, the interest from previous payments on the loan could accumulate, and this could be daily or annually.

Amortized loans can be calculated with a formula. When approved for a loan, you will be able to take your total loan amount (principal balance) and periodic interest rate to get your monthly payment. To calculate the interest, all you will need to do is take the annual rate divided by the number of payment periods and total number of payment periods.

Formula: A/{[(1+r)^n]-1}/{r(1+r)^n]=p

A= The loan amount
r= the annual rate of interest divided by 12 payments per year
n= The 12 payments per year times how many years you’ll have the loan

Calculating interest loans is less complicated than amortized loans. Simply multiply the amount that you are borrowing(a) by the annual interest rate(r). Then, divide that number by the number of payments per year(n). The formula should look like this:

A x (r/n)

A credit card monthly payment from an advance could change, especially if you are not repaying the full balance each month. Your credit card provider will often use a specific formula to calculate your monthly payment for just the minimum due. Generally, a provider will have you pay a percentage of your total amount owed each month. You should avoid paying just the minimum per month, as it will cost you more in the long run.

Since your credit card interest will change per month, your balance will change each month, which affects what the minimum payment is. If you choose to only make the minimum payment, you will likely be only paying the interest, and not even all of it that is accruing! The formula for a credit card advance is based upon your personal credit card contract, and the fees and interest your provider is charging. With those in mind, the formula is:

Your owed monthly interest = ((the amount you have borrowed x (Your APR/1000)) /365 +fees.

As a borrower applying for a loan, you will often be asked to provide proof of income. There are a few different reasons why this is necessary, but the most obvious is that a lender must make sure that you are able to afford it. With your income and your expenses per month understood, a lender could make the judgement that you are not fit to take on another financial obligation. You may have other bills and debt you are struggling with, and your proof of income will show that you are not able to take on any more debt with your current financial situation.

Proof of income, as well as an applicant’s credit report, will often be what lenders use to approve or reject your application for a loan. A borrower’s proof of income will show a lender or credit provider if they have the ability to take on more debt. A credit report will also show this, as they will provide a lender with their current credit utilization percentage, which shows how much debt to income they have.

Not every person works a 9-5 job, but that does not mean that they are unemployed! Different types of income can count as proof of income for lenders. Some of the most commonly accepted types of alternative income are:

1. Social Security or Disability Payments: While a borrower may not be working, these payments to a borrower could be considered proof of income to some lenders. Since these are continuous monthly payments, they are often considered their income.
2. Annuity Payments, or Retirement Payments: If you are retired, you likely receive your retirement payments per month. These payments, especially scheduled annuity payments to you, could count as proof of income to a lender.
3. Self Employment or Small Business Ownership: If you are a small business owner or you are self employed, you do have an income! Many lenders will consider self employment or small business owners to have proof of income. Often, providing bank statements or tax returns could count as proof of income.

While it is not the norm to obtain a loan without proof of income, it is possible to obtain a “no-income” loan. However, you will need to provide proof of some alternative form of income or proof of financial ability to repay the loan. Even with these types of loans, lenders will often look to see what your credit history is like, as well as what your bank account is like.

The loan to value ratio works with percentages. For example, if you are offering your title for a loan, you are using the title of your vehicle as collateral. This means that the market value of the vehicle is what your loan will be based on, but the lender will not lend you the full value of the vehicle for your loan amount.

This is done to protect the lender in the event that you default on your loan, and they are forced to repossess your vehicle and sell it to earn back the money you borrowed. If your vehicle is worth $10,000, they may loan you half the value of the asset, which is $5,000. For a title loan, a lender will often lend you anywhere from 25%-50% of the vehicle’s value. If the lender loans you half of what the vehicle is worth, the loan to value ratio is 50%. You may not always receive up to 50% of your vehicle’s value, however. Some lenders will only allow you to borrow 25%, and approval for a loan amount will be based upon your income. If you cannot afford a loan payment that comes with a 50% loan, then a lender will not offer you a loan.

Calculating the loan to value ratio is simple. To find out the loan to value ratio, simply divide the loan amount by the market value of the collateral. Then, multiple by 100 to make it a percentage.

The formula for calculating loan to value ratio is: LTV= (Loan Amount Owed ÷ market value of the asset) x 100.

The loan to value ratio is affected by the market, which will affect interest rates. Lenders are subjected to risk when they lend loans, and those that are deemed more of a risk to the lender will receive higher interest rates as a result. If you are less of a risk to a lender and you demonstrate the ability to keep financial obligations, you are likely to receive a lower interest rate from the lender as a result. A higher loan to value ratio will result in the lender deeming the loan to be higher risk, since the collateral is not as valued in the market. This will mean that the lender would assume the risk, even if collateral is involved. The result will be high interest rates offered by the lender.

Where you will often hear the term market value is with vehicles. There are many different websites dedicated to tracking and calculating the market value of vehicles, particularly used vehicles for buying or selling. The fair market value of a vehicle is simply what the vehicle would fetch on the open market. There are a few different but important factors that will determine the value of your vehicle in the market:

1. Odometer: The mileage on your car is one of the most important factors that lead to the value of your vehicle. More mileage on your vehicle means that the vehicle will have less value. Less mileage on your vehicle indicates that the engine has not had a lot of wear or tear, which is a positive. The average mileage per year for a vehicle is 12,000-15,000.
2. Age of the Vehicle: The older the vehicle is, the less market value the vehicle will have. As soon as a vehicle is purchased from a dealership, it will begin to depreciate in value. As the vehicle ages, the mechanics of the vehicle will begin to wear down and need repair, so it will be worth less in the market.
3. Condition of the Vehicle: If the vehicle has any cosmetic damages or interior damages, this could affect the market value of the vehicle. Rust, chips, and dents to the vehicle indicate damage, which could result in the market value dropping.
4. Any Accidents: If the car is a junk title or it has been in a significant accident before, this will certainly affect the value of the vehicle. Accident reports can be easily found through any VIN number if you are planning to purchase a vehicle. If the vehicle was previously totaled but has been salvaged or repaired professionally, it will be worth less but could still have value.
5. Maintenance: Believe it or not, the regular maintenance of a vehicle could also affect the value. Vehicles that have been regularly maintained and well kept will often have higher market value than those that were not. Regular maintenance on a vehicle is important, especially oil changes and tune ups. Without these, the vehicle’s mechanics could start to deteriorate or wear down faster than they should.

If you are looking to find the market value of your vehicle, one of the best places to start is through Kelley Blue Book online. They keep records of market trends, and help borrowers or sellers find out the value of their vehicles online. If you are looking to purchase a vehicle without a dealership, be mindful and get the VIN # first. Find out the odometer reading, and be mindful to check the accident reports online first. Any accidents or junk titles will appear on the report, and will affect the market value of the vehicle.

MoneyGram is most known for money orders, checks, and official checks. MoneyGram is known for being the second largest money order supplier in the world! Many lenders or financial institutions can use MoneyGram to help borrowers receive their funds, if they chose not to deposit them directly into their bank account or receive a check.

MoneyGram also allows individuals to send money directly to their or someone’s bank account, or mobile wallet if available. Individuals can also send money directly online through MoneyGram! Sending money online through MoneyGram is as easy as:

1. Create an online account with MoneyGram, and then establish a profile.
2. Go to the Sending option on the website, and select a receiver. Tell MoneyGram who you are sending the money to, how they are choosing to receive it, and how much you are planning on sending.
3. Select a payment method then! You can choose to pay by your debit or credit card, or pay directly from your bank account.
4. Wait for the recipient to access the money, and then you are done! It can take just minutes to complete.

If you are performing wire money transfers, or money orders, there is often a fee attached. This fee will change based upon the amount of money, and the type of services. Keep in mind, that if you are sending to other parts of the world, the currency exchange rate will affect the money. If you are transferring funds from your bank account to a credit or debit card, you may send them to a cash pickup location. This fee is usually $49.99 for every $1,000 transferred. If you are sending the same amount from a MoneyGram location instead of a bank account, however, the fee is just $20 for every $1000.

If you have been sent cash through MoneyGram, it can be picked up at any MoneyGram location. Usually, the money is ready to be picked up as early as 10 minutes after the transfer was submitted! This is usually subject to operating hours, and compliance however. MoneyGram is available in all countries, and locations can be found all over the world. If you are sending or receiving money through MoneyGram, you can choose to send it online, and choose what you want your recipient to receive. MoneyGram is a convenient money transferring service that can be accessed worldwide for anyone!

In order to use MoneyGram services, you will need to provide your full legal name, your recipient’s full legal name, and their bank account number. You will also need their bank name, and any other additional information that may arise. Sending or receiving money through MoneyGram is easy, however, and it can be done online or in person conveniently!

As a borrower, taking out a loan means accepting the responsibility of a debt obligation. You receive the funds, and you will be expected to repay the total amount borrowed. In addition to this amount, you will be expected to repay interest over a period of time. Interest could be incorporated into the monthly payment, especially if you have an amortized loan. This means that your payment schedule will show that both the interest and the principal loan amount are being paid down at the same time. As you pay off both the interest and the principal throughout the duration of the loan, you will be slowly paying off the interest first. Then, you are left to pay just the principal amount. While this is only the case for amortized loans, it is a helpful way for borrowers to repay their loan amount. Since all of the payments are the same each month, they are helpful to budget for. The interest gets paid off steadily first, which can be helpful for saving money!

Without an amortized schedule on your loan, you could be paying off more interest, which will be more costly in the long run.

As you are repaying your loan, you are in the process of debt repayment. This means you are periodically returning your funds to the lender each month. With your monthly payment, you are paying off both interest and the principal amount each month. Your monthly payment is decided when you sign your loan agreement. In this agreement, often you will be able to see how your monthly payment is constructed, and how much interest you will be paying throughout the duration of the loan.

When looking at your monthly payment in the agreement, some lenders will also allow you to choose the day of the month you repay the loan. In some cases, the lender will also agree to a grace period. Grace periods will help in the event you accidentally forget to pay your monthly payment, or you simply need a few days to make the payment. Many lenders understand that financial situations can change, and an unexpected expense may have arisen during the month. A grace period for your monthly payment is often 5 days to two weeks, and then the loan payment is expected to be paid off.

The odometer will count your wheel rotations, and then it will use that to calculate the distance you have traveled through the number of wheel rotations with a formula. The circumference of the tire will be included in the formula, and it helps the instrument stay accurate when determining the amount of miles your vehicle has gone.

The odometer is an instrument that is attached to the wheel of your vehicle, and it measures the distance your vehicle has travelled. It is installed in the dashboard panel, and is attached to the speedometer to show the car owner the mileage numbers.

The mileage of your vehicle is the total distance in miles that your vehicle has traveled. The average car owner will travel anywhere from 10,000 to 15,000 miles per year. This means the average ten year old car will have around 100,000 to 150,000 miles on it!

A driver can use the odometer for many different things. First, the driver can use the odometer to determine the mileage on the vehicle. This can help a driver determine when to take the vehicle in for scheduled maintenance, as mileage will create normal wear and tear to the vehicle. The most common instance of this is using the odometer’s reading to determine when to bring your vehicle in for an oil change. As the mileage on your vehicle increases, the more likely your vehicle will need a regularly scheduled oil change.

The odometer also helps determine how the car is consuming fuel. As your fuel is consumed, you will be able to track how many miles you can travel with the amount of fuel you have in your tank. If there is an issue with your fuel consumption in your vehicle, the odometer is one of the tools you may be able to use to solve that. The odometer can also track your mileage from one location to another, which may be important if you are someone that needs to track your miles for work. Or, there are some tax write offs if you can accurately estimate your mileage if you are self employed and use your vehicle for work purposes.

Another reason that the odometer is so important is when determining the market value, or equity in your vehicle. The lower the mileage of your vehicle, the more likely it is to have more equity. More mileage on a vehicle means that the vehicle has a likelihood of needing more mechanical maintenance, or parts replaced. When a vehicle owner is looking to buy a used car, they will look for the vehicle that has the least amount of mileage on it. Vehicles will low mileage and age mean they have not needed much maintenance yet, and they may be a better investment.

Online title loans allow you to apply for funding online without a brick and mortar location. While many online lenders also have storefront locations, it can often be more convenient to apply for online. Title loans are when a borrower will use the title of their vehicle as collateral for the loan. Title loans are secured loans through collateral, which means they are less of a risk to the lender. Many secured loans like title loans can offer more competitive interest rates because they are less of a risk for the lender.

Title loans are easy to apply for if you have a vehicle with equity. Since title loans must be secured with collateral, they can be easier to obtain approval for. The value of the vehicle and the borrower’s income will mean more than their credit score, so those from all credit histories could potentially receive loan approval. In order to be eligible for an online title loan, you as a borrower must be at least 18 years of age to apply. Additionally, borrowers will need to have equity in their vehicle. For a title loan, the title to your vehicle is collateral, meaning that if you fail to make payments your vehicle will be repossessed. To qualify, your vehicle must be worth something if it were to be sold by the lender after repossession. While repossession is a last resort for missed payments, lending money is a risk for the lender, and it is a possibility if you default on your loan.

The entire process for a title loan can be completed online, often in just three simple steps. Borrowers will need to:

1. Submit a Loan Inquiry Online: Many lenders will have online submission forms, where a borrower can input their information about their vehicle and finances. Most inquiry forms for a title loan will have questions about the borrower’s make, model, and year of the vehicle as well as the mileage on it. Additionally, borrowers placing a loan inquiry may also need to answer questions about their financial situation.
2. Submitting Documents: This step can also be done online! Through email or fax, borrowers will be required to submit a few basic documents for a loan application. These often include the title of their vehicle, proof of residence, and proof of income. Some lenders will also require a borrower to send a copy of their vehicle insurance and photo ID.
3. Receiving Funds: If a borrower is approved, they will then need to sign the loan contract and choose how to receive their funds. Borrowers that apply online could potentially choose to receive their funds through a check in the mail, or a direct deposit to their bank account. Some lenders will even work with MoneyGram or other money transferring services to help you receive your cash conveniently!

Applying for a title loan online can be simple, and easy.

If you reside in the state of California, you are able to apply for a paperless title. A paperless title is an alternative to a physical copy of the title, and can be transferred during a sale. Whether you are using the REG 227 to request a duplicate or replacement title, or you are looking to transfer it to a private seller, it does not require notarization. To transfer a paperless title, a seller will need to release ownership of the car by signing the title. The applications to transfer a title could be completed online, and submitted to the DMV for approval. From there, the buyer will be able to transfer the title and assume ownership of the vehicle. Both the buyer and seller will need to provide their personal information at the time of sale/transfer.

For a paperless title application, the applicant must be at least 18 years of age, and own a vehicle in their own name. Some states do not offer a paperless title option, but residents in California will be able to apply for a duplicate or paperless title. The applicant will need to fill out a complete application with the DMV, but there is a separate application if there is a lien or lienholder on the title. If the paperless title is being transferred, there is a separate application that the new owner must fill out as well. Additionally, if there is a sale being made in addition to a title transfer, the new owner must fill out a bill of sale and any additional forms.

There are a few reasons why a vehicle owner may need a duplicate or paperless title. Car owners may have misplaced the title, or they may have simply lost the title. In some cases, the vehicle owners may have even had the title stolen from them, or damaged in a way that the title is now illegible. When this happens, they may be eligible to apply for a paperless or duplicate title to replace their damaged/ lost one. While this may not be an option for every car owner that has misplaced their title or lost it, it can be a helpful and convenient method to use.

While many loans are unsecured, like credit cards and personal loans, there are a lot of secured loans you will recognize.

1. Mortgage Loans: The most recognizable secured loan is a mortgage loan. With a mortgage loan, your home or property is the asset secured by the lender. If you fail to make payments, you could potentially have your home foreclosed.
2. HELOC Loans: HELOC, otherwise known as home equity line of credit will give you access to the equity in your home. This is a form of a credit line, just like a credit card would work. You can take out funds as you go, and while you have a limit, you can choose how much to access. With a HELOC loan, however, your home is still the collateral.
3. Business Loans: Business loans can be utilized to buy services or equipment for the business, as well as pay wages or invest in related projects. With a business loan, there are different types of assets that can be used as collateral. Equipment, land, or inventory are all acceptable forms of collateral for the loan.
4. Auto Loans: If you are financing your vehicle and not purchasing it outright, you will have an auto loan with a lender. If you do not make your monthly payments on time or you default on them, the lender can legally repossess your vehicle.
5. Title Loans: Some borrowers will choose to obtain funding by using their vehicle’s title as collateral. To do this, they often must have a lien free title, and the title must be in their own name to obtain funding. Additionally, the vehicle must have value or some equity to qualify. Similarly to auto loans, if a borrower fails to make payments to the lender they could lose their vehicle and the lender could sell it to satisfy the debt.

While there is a risk to secured loans, there are advantages that borrowers can access. Many secured loans will offer competitive or better interest rates. This is due to the fact that the borrower is less of a risk to the lender if the loan is secured. The lender has reassurance through collateral that the debt will be repaid one way or another, so the interest rate does not need to be as high.

Secured loans are often easier to receive approval for. While personal loans and other unsecured loans require excellent credit for approval, secured loans can be more flexible. Since collateral is used to secure the loan, the lender can often offer more leniency in the loan approval process.

The total payoff is different from the principal balance of your loan. When signing a loan contract, your lender will often show your payment schedule, and how you will be paying off your loan. They will also include the time your loan will be paid off, and how much you will be paying off as the total payoff amount.

This is because there are often other costs associated with the loan besides just the principal balance of the loan. While you may have originally borrowed $10,000, the total payoff amount of your loan could be much higher than that. This is due in part to loan fees, compounded interest, simple interest, or other factors. Some loans will include additional fees that are laid out in your loan agreement, which you will need to have signed in order to obtain funding.

If you pay off your loan early, you may have to pay a prepayment penalty. Depending on your lender, you may be able to request a total payoff amount, and then pay the penalty. Often, prepayment penalties are only a percentage of your loan, or a small fee. Depending on your loan type and lender, you may be able to pay off your loan before the specified date as long as you can access your total payoff amount.

Depending on your lender and your loan type, you could request your payoff amount from your lender. This is called a payoff statement, and it is a quote offered by your lender to prematurely end your loan contract. A payoff statement will consider items like interest, how long your loan contract is, and how much you have paid. Your payoff statement will change based upon how many months you are into your loan contract, and what type of interest you are receiving. For example, compounded interest will have a different payoff statement in comparison to simple interest, because the interest is paid differently during the loan terms.

Amortized loans can potentially be easier to payoff, as they will allow a borrower to repay the interest at the beginning of the loan term. Other types of loans will often expect the interest to be paid throughout the entire duration of the loan contract, which is why a borrower will pay more than just the principal if they request a payoff statement. If you can afford a payoff statement and do not want to wait, it may be beneficial for your finances in the long run to end your loan contract early. Consider your lender, as well as any consequences before doing so.

While not all lenders will have processing fees included in the loan, they can be common. Processing fees were created to cover the cost of processing the documents you submit during your loan application. These documents can include items such as your income statements, proof of residence, or other documents that may take some time to process or read. These fees will vary depending on your lender, but often they are anywhere from $200-$1500. Generally, larger loan processing fees are more common with mortgage applications, as they are often larger loans to process.

Some lenders will often charge for origination, which means a fee for preparing the loan and the documents. It is usually a percentage of the loan amount, but it can often change based upon your loan amount and lender. Other fees, such as commitment fees and application fees can often be avoided by borrowers in many cases. While some lenders will choose an application fee to solidify the loan contract, others will not and applying is free.

The simple answer is yes, you can avoid paying processing fees if you do your due diligence and choose a lender that does not include those in your loan application or contract. However, processing fees are very common, and often can mean other things for your loan. If a processing fee is not included, it may just be a fee under another name, such as a service charge. Processing fees can be hard to avoid, especially if they are the standard for the type of loan you are applying for. For example, home loans or mortgage loans often have processing fees, and they are almost impossible to avoid. While some lenders will negotiate fees or other costs associated with the loan, most will not.

Processing fees are often attributed to the cost of labor, or processing your information. Each loan applicant is unique, and will submit different pertinent information to be deemed qualified for a loan. This included a loan employee reading many different submitted documents, as well as information pertaining to the applicant.

While fees may seem like a nuisance to pay, they are a common part of the lending process. When a lender lends money to a borrower, they are assuming the risk that the borrower may not pay the loan back. This is the case even for loans with collateral! The fees that a lender may charge are often a way for them to make money or cover costs in the event that the borrower ends up defaulting on their loan.

While there is no way to avoid loan fees entirely, the charges for a loan will be paid in your loan somehow. This is done through either a higher interest rate, or sometimes with your loan amount increasing. Other types of loan fees that could be included in your loan are:

1. Application Fees
2. Loan Origination Fees
3. Loan Fees
4. Processing Fees
5. Loan Charge Fees

Credit scores are represented by a three digit number that ranges on a scale from 300-850. An 850 credit score is a perfect score, and a less than desirable score is any score under 670. A bad credit score is anything under 579.

Poor or bad credit scores will indicate to a lender that you are an irresponsible borrower, and you do not meet your debt obligations. In some cases, a poor credit score could also impact your ability to get a job. What some employers will do is a soft pull on your credit score before hiring to determine your financial situation, as well as your financial responsibility.

Poor credit scores can come from a variety of factors. The most common way that people find themselves with a poor credit score is through late payments, or defaulted payments. Payment history makes up 35% of how your credit score is calculated, and when you do not make your payments consistently on time, it can drop your score significantly. If you default on a loan, this could affect your credit score as much as 100 points.

If you have maxed out credit lines or credit accounts, this will also negatively impact your score and could be why you have a poor credit score. High utilization of credit, or using all of your available credit will impact your credit score significantly. What some borrowers will do is ask for an increase in credit line or availability and not use it in order to decrease their appearance of utilization. This can temporarily boost your credit score, and help you work on paying off your high utilization.

Filing for bankruptcy, or not paying your loans at all will also result in a poor credit score, and a mark on your credit report.

Even if your score is not where you would like it to be, you can still fix a poor credit score. The first step to improving your credit is to make all of your payments on time, and make a few different payments on the same account each month. While they do not need to exceed the minimum payment, more than one payment to an account each month will help your score.

Start by identifying the issue with your credit. There are free ways to look up your credit report online, and you’ll be able to analyze your credit issues. If you have too high of utilization, you can request a larger credit line for now. Then, dedicate your budget and finances to paying that high bill. While it may take time, getting your credit score back to where it needs to be can happen!

A statement of pre-approval is not a commitment from the lender or a loan contract. It is not a guarantee that you will receive approval for a loan contract, but it is simply the lender sending you pre-approval for a loan amount. You can still get denied for a loan contract even if you received pre approval for it. With a pre approval amount, the lender will take a quick look at your financial situation and make a decision to pre approve you. This quick look does not include every aspect of your finances, which may end up deterring a lender from giving you loan approval.

The initial inquiries for pre-approval from a lender will not hurt your credit score. These pre-approval offers that you may receive in the mail will not affect your credit score unless you act on them. Acting on them means you follow through by applying, and from there a lender will do a hard pull on your credit instead of a soft pull.

Pre-approval for a loan can last anywhere from 60 days to 90 days depending on the lender, and once you receive it, you may consider the ways your financial situation could change. When receiving a pre-approval for a loan, it is a good sign that your credit is in the right place. If you do decide to apply for the loan, it is best to act quickly before anything on your credit report changes. Lower credit could potentially mean higher interest rates than what you were initially approved for from the lender. High interest rates will mean you are paying more than what you originally intended in the long run.

If you received a specific loan amount from a lender in the mail, you may be thinking to apply for the loan. If you are looking for a larger funding amount, you may be able to get more than what you were initially pre-approved for. However, it will depend on your eligibility, meaning that your finances and credit must be deemed eligible for the larger funding amount. You may be able to get a significantly larger funding amount than what you were pre-approved for if you have the right background that the lender is looking for!

When signing your loan agreement, you are agreeing to repay the principal plus interest and fees. This means that your initial principal balance will be repaid, but not necessarily first.

Usually, your monthly loan payment will first go towards any fees that are due. These fees could be late fees, or any processing/ loan origination fees that you may not have paid yet. In the case of some loans, you will also be paying interest first, including any past interest charges if applicable. Then, the remaining will go towards the principal.

Before signing your loan agreement, it can be helpful to check to see how your loan will be repaid first. In your agreement, you will be able to see your interest rates, and whether or not it is compounded interest that you will be paying back. This can differentiate how much interest you will pay in the long run, and determine how your monthly payments are allocated towards the principal balance.

The amount of interest you will pay on your loan will depend on the principal amount, as well as your income and credit history. Interest is the cost of borrowing the initial principal, and acts as a means to mitigate the risk of lending you money. With interest, a lender is making a profit off of lending you money, and essentially paying themselves for being able to lend a borrower a large sum.

But, your interest rate that is offered will depend on how much you borrow, and what your credit history is like. While borrowing a larger sum of funds will often lead to more interest you will repay, a lower credit score will often guarantee higher interest rates. This is because a lower credit score will pose a risk to a lender, while a higher credit score will not. Lower credit scores show less responsibility as a borrower, and could mean that you will end up defaulting on your loan. Defaulting on your loan will cost the lender more money, so higher interest rates will be charged.

With a higher interest rate, you will be paying more in the long run besides just the principal balance. As a borrower, you will repay the principal, and the additional interest charges that come with your higher interest rate. To avoid paying higher interest, be mindful of the lender you choose, and your credit history.

Proof of residency is not one specific document. Since a lender will need to verify your address to approve you for a loan, there are a few different options that you can submit or bring when you apply for a loan. Proof of residency in documentation could be a utility bill, or any other business correspondence with your address. This must have been received recently in order to be eligible, as bills from years ago will not count as proof.

Other documentation that counts as proof of residency are bank statements that are not older than three months. They must contain your full name and current address in order to qualify. Your current vehicle registration, or current rental document receipt may also qualify as proof of residency as well.

Additionally, your mortgage or lease agreement could also verify your address to a lender.

When applying for a loan, a lender will ask for many different types of documentation. While the specific documentation may vary based upon the lender you choose, they are often very similar. Most lenders will ask for items such as proof of income, proof of residency, and proof of identification. Proof of income can often be proved by bank statements, or pay stubs from your employer. If you are self employed, often what small business owners and self employed individuals will do is show tax returns or other bank documentation that proves their employment. If you are retired, your retirement accounts or income can also verify your proof of income.

Proof of identification is required by the lender to have a way to prove your identity. Often, what most lenders will look for is a driver’s license issued by the state you reside in, or the one it was issued in. Otherwise, some items such as a FOID card, or passport could verify your identity to a lender.

While most lenders have a brick and mortar location and expect you to bring documents with you, others will not. Many online lenders will allow you to submit your documents online, whether it be through email or through a scan! This can be the most convenient way to apply for a loan, and allows you to apply from the comfort of your home. Simply take your documents and scan them to upload online, or submit a picture via email.

Regardless of the reason that a borrower is refinancing, it acts the same. Refinancing simply means to replace your current loan with a new one. Refinancing your loan will often mean more optimal loan terms, or better interest rates for your financial situation. Often, borrowers will refinance their loan when their credit score is better, as it will mean better loan terms for them than when they first applied.

Typically, the most loans that are refinanced are mortgage loans, student loans, or title loans. They are financed to change their loan program, adjust their interest rate, or to simply get a lower monthly payment that is more accommodating to their financial situation. Since refinancing means starting a new loan, you are essentially starting from scratch. You will receive new loan terms, new interest rates, and a new repayment plan. When a borrower refinances, they will have a new principal amount as well.

Refinancing has pros as cons, as aspects of most things in the financial world have. Refinancing is only beneficial to the borrower if the loan terms that change are different, or more optimal than their previous ones.

Many borrowers chose to refinance when they are afraid of their loan defaulting. Missed payments, or defaulting on your loan payment due to your financial situation changing can happen. When it does, it is important to let your lender know, and discuss your refinancing options. Often, you will be able to refinance your loan to achieve a much more manageable monthly payment, and potentially better loan terms. Refinancing a loan can also help you consolidate your debt in some cases, and can help increase the terms of the loan to extend. This can give you lower monthly payments, and more time to repay your funds.

There are a few different instances where you should consider refinancing your loan. If you are concerned you will default on your payments or you cannot afford the current monthly payment, refinancing should be something that you should consider. Be mindful that you do not have to stick with your current lender, and you may be able to refinance with a different lender to find better loan terms.

As a borrower, you should also consider refinancing when your credit score has gone up significantly. A higher credit score can often mean a lender will offer you more optimal loan terms, and you could save a lot of money with a lower interest rate. A lower interest rate will mean you will pay less in the long run, although you may be paying longer if your loan terms are changing.

As the name would suggest, a registration service center is a collective agency that offers services to vehicle owners and residents of the state. The services may range depending on the registration service center that you visit, but often they will include items like:

1. Vehicle Registration: Every vehicle owner is required by law to register their vehicle if they plan on driving it. The registration service center can connect the car to the owner by this registration document, which is required in each state to be registered. This document provides identification details that include the date of registration, the manufacturers of the vehicle, and the owner’s name.
2. Title Registration/ Certificate of the Title: A car’s title registration is separate from the vehicle registration. Title registration will establish the vehicle owner as the current owner and will register them to the vehicle, while vehicle registration will allow the vehicle to be driven safely on public roads. While vehicle registration must be done every 2 years, title registration is only one time unless the vehicle has new ownership.
3. Registration Renewal: As a vehicle owner, the registration service center can offer the registration renewal you may need. While the timeline for registration renewal may differ depending on the state you reside in, the registration service center can be accommodating.
4. Third Party Registration Services: Some registration service centers are third party agencies, and can provide title transfer services, as well as plate renewal services for residents within the state. Some third party registration services can also provide custom plates and plate design services for vehicle owners. While custom plate options can vary state by state, they are a fun way to decorate your vehicle in a legal way.
5. Emissions Testing and Smog Testing: Some registration service centers can help test for required testing by the state. This includes emission and smog testing, which are required if you live in areas that are close to the city. These tests help prevent poor air quality in the city, as some vehicles will emit too much smog. While the DMV (Department of Motor Vehicles) can often provide this service, other third party registration service centers can provide it as well. If you reside in an area that requires you to pass an emissions test, failure to do so may result in a fine. Some fines are an upwards of $300 depending on the state laws!

Registration service centers can be easily found by either searching online, or looking up brick and mortar locations through your local directories. When choosing a registration service center, be mindful to pick one that offers the type of services you are specifically looking for.

Generally, retail value is the highest price that you could potentially receive for a used car. This is because the dealership will take the trade in value of your vehicle, and take into consideration the overhead costs that come with selling your vehicle. Dealerships before selling a vehicle will often recondition it, meaning they deal with the repairs, and pay their salesperson to sell it. Dealerships will also take on the advertising costs for the vehicle, as well as the administrative costs associated with selling them. Dealerships will separately deal with administrative and financial issues such as appraisal value and market value behind the scenes as well.

While retail value is found through a dealership and dealership appraisal, private party value is different. Private party value is found from seller to buyer, often with no dealership involved. This is through websites that often sell vehicles, and buyers will advertise on their own online. This means that you, not the dealership, will assume responsibility for the advertising, the paperwork, and negotiating the price. You will also be responsible for all communications, and test drives that could occur with potential buyers. All of the paperwork details, such as vehicle title transfers will be for you to set up and establish.

While selling with private party value may often get you the most money, it does require that you put in a lot of work by yourself. Additionally, if you do sell on your own and not to a dealership, it may take significantly longer to make a sale. Your vehicle may not be advertised correctly, or it could not be reaching the right buyers. With retail value, a dealership will give you the funds for your vehicle or offer to trade it in. This can take just a day, and there is no wait time. Private party selling can definitely be a hassle, while retail value may be a bit more convenient.

Choosing which method to sell your vehicle will come to personal preference, and your vehicle model or make. If your vehicle is newer, or in high demand in the market, it may sell quickly and take little time or effort. Every vehicle and situation is unique, but with private party selling, there are often additional costs. You may need to constantly get car washes, and get maintenance or repairs done to the vehicle before selling. If there is any cosmetic damage, you may also need to get it detailed. These costs are often covered when you choose to sell it at a dealership with retail value instead of private party value.

Salvage titles are formed from a vehicle being in a significant accident, and obtaining total or almost complete wreckage. For a salvage title, the cost to repair the vehicle is greater than the vehicle’s retail value. This means that the insurance will declare the vehicle a total loss to them, and often reclaim it. In some cases, the insurance company will seek to reclaim their monetary loss by reselling the vehicle to an auto repair company. This is where the company can rebuild the vehicle, or even repair it if possible.

However, in most states, a vehicle that is rebuilt or repaired in this way is considered a salvage title. This lets future buyers know that the vehicle has been damaged before, and it will affect the value of the car.

A vehicle is often considered damaged beyond repair or value when it has been under these conditions:

1. If a vehicle has obtained extensive fire damage.
2. If a vehicle was involved in an accident or collision and sustained serious damage.
3. If a vehicle experienced water or flooding damage.
4. If a vehicle was stolen or partially stolen, meaning parts of the mechanics or vehicle are missing and damage resulted.

While buying a salvage title can be an excellent way to save money, there could be some disadvantages.

1. Unknown Repair Costs and History: Down the line, there may be some damage to the vehicle that was not present when you purchased it. It may become unstable, or need costly repairs in the future.
2. Financing: Many banks may choose to not finance a vehicle with a salvage value. This is because they are often too risky to finance, as they could break down.
3. No Guarantee or Warranty: Dealerships will not issue a warranty if the vehicle has a salvage title. This is because the dealership cannot guarantee the safety of the vehicle, or the repairs it may need in the future.
4. Low Trade-In Value: Additionally, a vehicle with a salvage title could face issues, and auto dealers will not often accept a salvage title car for a trade in.

While not all of these issues could happen to you or your vehicle, it is something to keep in mind when making your vehicle purchase. Buying a car with a salvage title could save you money now, but in the future it may cost you extra. It can be safer to just buy a vehicle from a dealership, and avoid the mess or uncertainty. The vehicle may be completely repaired if it was rebuilt, but the history is often unknown!

While they are different for every lender, and borrower, they are general guidelines for term lengths. Personal loans are often anywhere from 12-60 months, and mortgages are often 15 years to 30 years. The loan terms can vary based upon the lender you choose, and your own personal financial situation.

For loans like title loans or pawn loans, the range for term lengths can be anywhere from 30 days to 3 years. Some loans will allow for a roll-over, which means the loan is extended beyond the term length, and there is an additional interest charge.

The time that it takes to eliminate your debt is your term length. Your lender will set a required monthly payment when you take out a loan, which is based upon the length of time that you will have to repay that loan. The payment is calculated off of interest, time, and other factors gradually over the term length. For example, if you have a loan that is set to be repaid in 3 years, your last payment will cover exactly what you owe in the end of those three years. This process of paying down your debt periodically and equally is amortization, which is not the case for every loan, but it is common.

The term lengths will also affect factors like your interest costs. Long term lengths indicate that you’ll often be paying higher interest rates, unless you choose to repay the loan early.

It is a possibility to repay your loan before the loan term length is through. If you have a 3 year loan, and you have the means to repay the loan 2 years into your loan contract, it is possible that you may do so. If you do choose to pay off your loan early before the term length is over, there are some challenges that you might face.

First, some lenders will charge a fee, known as a prepayment penalty. This is to protect them from a loss in the event that they lose profit with you paying early. The prepayment penalty is laid out in the loan contract, so borrowers will know exactly what they need to pay ahead of time. Before paying off your loan early, consider the pros and cons of the potential fees, versus what you will potentially save on interest charges. If there is no risk to you and it will help your wallet, it is a good plan for your financial situation to end the loan before the term length is over.

When you are looking to consolidate your debt obligations, one of the ways you can do so is through a third party letter by choosing a new lender. In order to obtain a new lender and to have them send the payoff letter, there are a few stipulations.

First, you must be able to qualify for a new loan, or qualify for their debt consolidation plan for you. The payoff amount quote that you recieve from a new lender often has an expiration date, and you will only be able to make a decision for a few weeks. If you do request a new lender, make sure you have the means to do so!

The new lender, or third party that you choose for the payoff will issue your current lender a letter, and request a payoff amount statement. This helps the lender incorporate the amount into your new loan and consolidation plan. Generally, most borrowers that want to consolidate their debt choose a new lender because they have more optimal loan terms. This means better interest rates, lower monthly payments, or even better customer service options.

If you are currently looking to consolidate your debt and find a better lender, it may be time to consider a third party payoff or refinancing your loan. Sometimes, financial situations can change and your current loan situation may be unmanageable. A payoff statement can often be a result of a collection agency for defaulted payments, but it doesn’t have to be. By choosing the right third party lender to perform the payoff, it could potentially result in more optimal loan terms for your financial situation.

Consolidation loans with a third party payoff will be a way for a borrower to reorganize their debt, and find more optimal loan terms in the process. Usually, a lower interest rate and consolidation can help a borrower make payments. Easier loan terms can help them reach their debt obligations, and consolidate their constant financial stress.

Title loans operate by allowing a borrower to access the equity in their vehicle, and obtain funding through collateral. A title loan is simply an alternative way for a borrower to obtain funding. Typically, car title loans are short term loans, with the term length ranging anywhere from 30 days to 3 years. A title loan lender will often allow a borrower to access 25%-50% of their vehicle’s market value. As your title is collateral for the loan, the approval process is much faster than a traditional loan.

Since collateral is used to secure the loan, the borrower’s credit history is not as important as the value of the vehicle. Collateral allows the approval process to be more flexible, which can appeal to those who have poor credit and may not be able to qualify for other types of funding. With a title loan, even borrowers with poor credit history could potentially be approved for a loan if they have a vehicle with equity and a constant income.

If a borrower fails to repay the loan, however, there are some consequences. Defaulted payments could result in losing the collateral used to secure the loan. If a borrower fails to make payments on time or stops paying altogether, often what will happen is the lender can legally repossess the vehicle. While this is a last resort used, it is a possibility if collateral is involved in the loan.

The first requirement for a title loan is that the borrower must be at least 18 years of age or older. Additionally, borrower must meet these basic requirements in order to be eligible for a loan:

1. Borrowers must have proof of income, or alternative forms of income such as retirement income or self employment.
2. Borrowers must have the title to their vehicle in their name.
3. Borrowers must have equity in their vehicle, meaning it has value if it were to be sold.

While the application process for a title loan will change depending on the lender you choose, often it can be done online, or in person. For an online title loan, you will be required to fill out a short inquiry form. This form will help a loan representative obtain information about you, your finances, and your vehicle in order to pre qualify you for a loan.

If you and your vehicle are prequalified, all that is left to do is submit a few documents, either online or through email. The most important document that you will need is the title to your vehicle, as it will be the collateral for the loan. The lender will now become your lienholder once you are approved! This means they have a legal right to your vehicle while you are repaying the loan.

The trade in value of your vehicle will depend on a few different factors. Not only will the make, model, and year of your vehicle affect the trade in value, but there are other factors to consider. The price that you are offered will depend on the condition of the vehicle, as well as other local market factors.

The market will determine how the vehicle is selling, and how much consumers are willing to pay for it. This will also affect the price that you are offered from the dealership, and in turn will affect the trade in value of the vehicle. Generally, trade in values are less than what you could sell for as a private seller. This is because the dealership will take on the hassle of advertising the vehicle, as well as the cost it takes to sell it. These costs include administrative costs, as well as any mechanical costs or cosmetic issues that will arise. While selling your vehicle through online platforms could yield you more money, it can be a hassle. As a private seller, you will need to arrange the bill of sale, title transfer, and other inconveniences that come with selling a car.

Before you take your vehicle into the dealership, be sure to assess its condition. If there are things you can do at home, such as fixing the paint or making sure it is clean, do that first. It could potentially affect your vehicle’s price!

Trading in your vehicle instead of selling it can often be more convenient than selling it on your own. Private selling requires time, and availability. There is also no guarantee when the vehicle will sell, so if you need money in a pinch you are at the mercy of the buyer! With a trade-in at a dealership, they will give you the funds to trade in the car and obtain a new one. This allows you to take the burden of selling the vehicle off of yourself, and obtain a new vehicle at a fraction of the cost potentially. Private selling will have you doing your own advertising, and your own test drives with people you may not know. Additionally, some buyers will try to haggle the price with you, which can be frustrating to deal with.

Before considering a private sell route, visit the dealership and see what your options are. While you will not need to decide on trading in right away, it can give you an idea of what kind of vehicle you could obtain as well as how much money you could receive. Trading in your vehicle can streamline the selling process, and take the hassle out of finding a new vehicle!