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Teller Raises $7M Led by Blockchain Capital to Bring Unsecured Lending to DeFi

tellera decentralized finance protocol designed to enable lending and borrowing of blockchain assets, announced today that it has raised $6.8 million in new funds to expand its integrations with third-party providers to launch lending marketplaces.

Led by Blockchain Capital, Franklin Templeton, Toyota Ventures, Bessemer Venture Partners, Upstart, Signum Capital and others joined the round.

Decentralized finance is an emerging technology based on blockchain and cryptocurrencies that eliminates the need for intermediaries like traditional banking in financial transactions and is primarily powered by programmable smart contracts. DeFi protocols today account for more than $200 billion in total locked value, mostly from collateralized lending and trading applications.

Teller’s protocol would allow users to borrow and lend cryptocurrency tokens without requiring collateral, similar to credit cards and personal loans. That would open up a whole new market within the DeFi industry, said Ryan Berkun, founder and CEO of Teller.

“Teller is paving the way for a traditional financial primitive to break into the DeFi space: data-driven, unsecured crypto asset lending and borrowing,” said Berkun. “The ability to attach off-chain data to a loan request will transform how individuals and lenders interact with DeFi and unlock lending opportunities currently only available in traditional financial markets.”

The Teller protocol authorizes unsecured loans by allowing users to connect their bank accounts and evaluate the borrower’s banking history. This is used by potential lenders as a measure of the borrower’s creditworthiness. Certain borrowers can get interest rates as low as 0%, depending on how risky the loan is.

Teller is also able to provide secured loans that require a minimum amount of collateral. Borrowers can also connect their bank accounts to reduce their interest rates based on credit ratings and banking history.

“Unsecured lending is a thorny issue in the pseudonymous on-chain world and one of the biggest opportunities for DeFi,” said Bart Stephens, co-founder and managing partner of Blockchain Capital. “The Teller protocol allows traditional and crypto-native lenders to use the best possible credit scoring techniques while maintaining privacy.”

DeFi lending has been an evolving part of the market, with numerous different protocols emerging to support lenders and borrowers. include examples aave, cream finances and linkall of which are DeFi protocols, decentralized software-driven apps that offer lending services.

This all comes at a time when centralized services like cryptocurrency exchange Coinbase Inc. and BlockFi Lending LLC have drawn the attention of the US Securities and Exchange Commission for their activities. BlockFi recently settled $100 million in penalties with the SEC and agreed to register its crypto lending product.

Photo: Pixabay

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If you’re in deep debt, shouldn’t “severance loans” help? Not necessarily, experts say

Dubai: It is often seen as a last resort for a heavily indebted person to settle their debt by negotiating with the creditor and agreeing to accept less than the amount owed in full.

As you get deeper into debt, you’ve also often been contacted by collection agencies asking for a timeline for paying off your outstanding dues.

If you don’t want them to keep chasing you over the overdue money and don’t want to worry about being sued over the debt, “debt settlement loans,” also called “debt cancellation” or “debt adjustment,” can help.

What does “debt settlement” or “debt negotiation” mean?

Debt settlement, also known as debt negotiation, is the process of paying off a debt by paying a portion of it in one lump sum.

What does a “debt settlement” entail for the borrower and the lender?

How does the borrower benefit from such a deal? A debt settlement agreement can provide financial relief to the debtor and put him or her on the path to rebuilding a damaged credit history.

Meanwhile, a debt settlement loan agreement allows creditors to receive at least some of the money owed, rather than no money at all.

In addition, it can mean that the borrower can avoid filing for bankruptcy. However, according to some credit experts, filing for bankruptcy may be a better alternative in some cases.

What does a “debt settlement” entail for the borrower and the lender?

While it sounds like a good deal, paying off debt can be risky as such loan deals can damage your credit rating beyond repair.

In addition, it can take a long time to reach an agreement, often between two and four years. It can be costly when you hire a debt settlement company as you pay fees. So it’s a last resort.

How much does a debt settlement agreement cost you?

Once you have decided on a debt settlement company, find out how much it will cost you to pay off your debt with a loan agreement. Be transparent, however, and make sure the company doesn’t shy away from your cost questions.

Debt service companies typically charge a 15 to 25 percent fee to service your debt. This can be a percentage of the original amount of your debt or a percentage of the amount you have agreed to pay.

Let’s say you owe Dh100,000 and settle for 50 percent or Dh50,000. In addition to the Dh50,000, you could be asked to pay an additional Dh7,500 to Dh12,500 in fees to the Debt Service Agency – which, while significant, is well worth it for those desperate to complete their exorbitant loans.

The risks of paying off debt outweigh the benefits

While paying off a debt through a debt settlement company can lower the amount you owe, take creditors and collection agencies off your back, and even help you avoid bankruptcy, there are risks that can easily outweigh the benefits.

If you’re heavily in debt and trying to pay off your loans, one major risk you don’t consider is that your creditors may not agree to negotiate or settle with your debt settlement company.

This means that there is no guarantee that the debt settlement company can successfully achieve settlement for all of your debts. In addition, there have been several reports that some creditors are even refusing to deal with debt service companies.

Can my debt management company charge me even if all of my debt is unpaid?

If you stop making payments on a debt, you may end up paying arrears or interest. So while it takes your debt-repayment company a longer time to negotiate a lower debt with your creditor, there are fines for late payments — not to mention countless calls from collection agencies.

Keep in mind that debt settlement companies cannot charge a fee until they have reached a settlement agreement, you have consented to the settlement, and you have made at least one payment to the creditor or collection agency as a result of consent.

But you could still pay part of the debt-redemption agency’s full fees on the remainder of your unpaid debt, experts say. If you have five or six creditors and the company pays off one of those debts, it can start charging a fee as soon as it gets a result.

If a debt settlement company has paid off a portion of your total debts that have signed up for their program, they may charge you that same portion of their total fee. Let’s say your total debt is Dh 100,000 and Dh 50,000 of the total amount has been settled, then you may be charged 50 percent of the total agreed fee.


Can my debt management company charge me even if all of my debt is unpaid?

Another key risk: Any delay in negotiating a debt settlement can negatively impact your credit score

A debt settlement company can encourage you to stop making payments on your debt while saving money for a lump sum payment.

But at this point, your creditors may not have settled anything, which means all those payments you miss can end up on your credit reports as overdue accounts.

Your creditworthiness could be affected as a result of arrears, and the creditor could also send your account for collection or sue you for the debt.

Therefore, entering into a debt settlement loan agreement with a firm that specializes in negotiating it should essentially be a last resort. One should always look for alternatives to pay off debt.

The central theses

Before contacting a debt settlement firm, credit experts advise that you should first try to negotiate settlements yourself with credit card companies or other creditors. Offer an amount that you can pay immediately, even if it’s less than what you owe.

If you have credit card debt, consider a balance transfer. A balance transfer is when you move debt from one credit card to another, usually to take advantage of an introductory offer of zero percent on the new card.

Funds transfer cards offer introductory pricing of zero percent for a period of time and may charge a fixed fee or a percentage of the amount you transfer. However, check whether you are paying more money for the interest payments on your current card than the cost of any transfer fees.

secondary debts:

Before contacting a debt settlement firm, credit experts advise that you should first try to negotiate settlements yourself with credit card companies or other creditors.

And you should also try to cash out the balance before the card’s promotional period expires to avoid interest on your balance. There are other debt relief and management options if you can’t get a large lump sum to pay off the debt or the credit card company can’t negotiate a settlement.

You can also seek debt counseling to address this situation. Talking to a credit advisor can help you explore your options. However, if you choose such settlement services, the debt management programs are structured to reduce the debt burden of the borrower.

(The debt burden ratio is the ratio of a person’s total monthly payments or obligations on credit cards, loans, or other committed monthly repayments to their total income.)

Additionally, the negotiation skills of a debt settlement company’s experienced mediators definitely provide an added benefit.

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Do Personal Loans Build Credit?

Our goal here at Credible Operations, Inc., NMLS number 1681276, hereinafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote products from our partner lenders that reward us for our services, all opinions are our own.

A personal loan is one way to build credit, but it’s not your only option. (Shutterstock)

Taking out a personal loan can help you build credit—if you do a good job of paying off the loan. On-time monthly payments can boost your credit score.

However, if you miss payments or are late, those negative marks can linger on your credit report for years, potentially making it difficult to qualify for other types of financing, such as a car or home loan.

How to build credit with a personal loan

If you’re neck-deep in credit card debt, you might want to consider a debt consolidation personal loan. This type of loan consolidates your current debt into one loan with one monthly installment, preferably at a lower interest rate and on better terms.

Personal loan interest rates are generally lower than most credit cards, and you have a predictable payment each month. If you apply, your credit may be temporarily affected, but if you make all your payments on time, A debt consolidation loan can help build your credit score.

Factors affecting your credit score

When reviewing your application for a personal loan, lenders will check your creditworthiness. But that’s not the only thing they consider. You can also look at your employment history, debt to income ratio, and whether you have a co-signer or collateral.

The three major credit bureaus use these five factors to determine your credit score:

  • payment history – Your payment history is the most important factor in determining your creditworthiness. If you consistently make timely payments on your personal loan, your credit score is likely to improve over time. But if you make late payments or miss payments, it can affect your credit score and stay on your reports for up to seven years.
  • Amounts owed — When deciding whether to give you a loan, lenders look at how many of your accounts have balances and how much you owe on each. So, repaying or repaying a personal loan can have a beneficial impact on your credit score.
  • Credit History Length — The credit history takes into account all new accounts, the age of your oldest accounts, and the average age of all your accounts. When you repay a personal loan, it can stay on your credit report for up to 10 years. During this time, it can still help improve your overall score.
  • credit mix — A mix of different types of credit—credit cards and loans—can improve your credit score. If you have credit cards and take out a personal loan and manage it well, you can improve your credit score over time.
  • New Credit — Taking out a personal loan can lower the age of your accounts but also improve your credit score by increasing your available balance.

Potential Disadvantages of Using a Personal Loan to Build Credit

Along with all the benefits of Using a Personal Loan to Build Credit, you must also consider the potential risks:

  • Monthly payments – Depending on the rate and terms of the personal loan, you may find yourself overstretching your budget just to make your monthly payments. When that happens and you default on your loan, your credit score suffers. Before agreeing to a personal loan, make sure the monthly payment fits your budget.
  • High interest rates — For people with good credit Interest on personal loans can be much lower than many credit cards. However, if you have bad credit or a poor credit history, you may get higher interest rates, which means you pay more interest over the life of the loan.
  • Fees and Penalties — Some personal loans have an origination or processing fee that ranges from 1% to 8% of the loan amount, depending on your credit rating. Lenders may also charge prepayment penalties for prepaying your loan, so it’s best to check the terms of your personal loan beforehand.
  • Can Increase Your Debt Burden – A personal loan can help pay off or pay off high-interest debt. But if you start accumulating more credit card debt once you’ve paid it off, it will increase your debt burden and defeat the purpose of taking out a personal loan.

Personal loan alternatives for the construction loan

If you want to build credit but a personal loan isn’t right for you, consider these alternatives.

construction loan

A construction loan is designed for people with no or bad credit. A traditional personal loan allows you to borrow money up front and pay it back over time. But with a credit-building loan, the lender transfers the loan amount — typically $300 to $1,000 — into a blocked escrow account.

You pay in installments, usually over six to 24 months, into a special savings account. Your payments will show up on your credit reports, which can help build credit over time. And at the end of the term, you get back the amount in your savings account, minus interest and fees.

Personal Line of Credit

Personal lines of credit are unsecured revolving credit accounts. Similar to a credit card, you can withdraw money up to a limit when you need it. When you withdraw money, your available balance decreases. When you pay back the borrowed amount, your available balance will be restored.

A downside to personal lines of credit is the potentially higher interest rate on the amount borrowed than some credit cards or personal loans. Also, some accounts charge overdraft and annual fees, and there’s always a risk of overspending.

Home equity loan or line of credit

If you have equity in your home, a home equity loan or line of credit can be a good alternative to a personal loan. These loans are secured by your home, so you can often qualify for a lower APR than a personal loan. Plus, you can use the credit for almost anything. However, remember that if you are unable to repay the loan, you risk foreclosure since your home is being used as collateral.

0% Intro APR Credit Card or Secured Credit Card

Although many credit cards come with relatively high interest rates, they can be a good credit-building option if you can find a card that includes an introductory offer of 0% APR for a period of time. As long as you withdraw your credit card balance before the end of the promotion period, you will not pay any interest on the amount. Just make sure you can pay the balance in full before the promotion ends, otherwise interest will accrue at the card’s regular rate.

If you have bad credit, it can be difficult to qualify for a 0% APR card. Instead of this, You may qualify for a secured credit card this helps you build credit over time. As your credit improves, you may be able to upgrade to an unsecured card.

Why good credit is important

If you’ve ever applied for a car loan, rented an apartment, or asked to lower your credit card interest rate, you know why good credit is so important. In addition to lower interest rates and better conditions, a good credit rating is crucial for your financial future.

If you need credit to start a new business, don’t want to pay a large down payment if you’re using utilities, or want to pay lower insurance rates for an auto policy, good credit can open up opportunities. Remember that building good credit doesn’t happen overnight. It takes time and commitment.

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Lendah warns consumers to avoid the dangerous financial trend of turning unsecured debt into secured assets

BEVERLY, mass., January 20, 2022 /PRNewswire-PRWeb/ — lendah, one Boston-based financial services company, today urged caution in this new year as more consumers make the mistake of turning to their secured assets to pay off unsecured credit card debt.

“Americans have benefited from incredibly low mortgage rates in recent years, and these rates are wonderful for home ownership or refinancing, especially for first-time buyers,” he said John Caron, lendah co-founder. “There’s a dangerous side to these attractive interest rates, and that’s a person risking their secured assets for credit card debt that’s spiraling out of control,” Caron added.

The US Federal Reserve reported that US household debt rose to a new record of between July and September $15.24 trillion, up 1.9%, and $286 billion, from the second quarter of the year. Equally worrisome, Federal Reserve data showed that credit card delinquencies — late payments of 90 days or more — were also up sequentially.

Credit card spending has skyrocketed 17 billion dollars in the third quarter of 2021, and the number of loan applications over the past six months — an indicator of consumer credit demand — was 122 million, up 1.3% quarter-on-quarter.

Refinancing involves jeopardizing a property’s equity or down payment for an interest rate that is significantly lower than rates found on credit cards, personal loans, or other expensive options.

However, there can be pitfalls when using this type of loan.

The monthly mortgage payment increases with these loans, and if a borrower cannot make the payments, they risk default and foreclosure. While a default on your credit card or personal loan can damage your credit score, a borrower is unlikely to lose their home.

Another potentially detrimental and often underestimated element of this type of transaction is the closing cost, or fees, of the loan, which can either be paid up front or built into the loan.

“Depending on the fees incurred during these refinances, a borrower may pay interest on these fees for the life of the loan, and the value of this credit card debt rescue refinance could decline sharply over time,” Caron said. “Most importantly, turning that unsecured debt into secured debt means very little to a person’s overall financial condition if they continue with their bad spending habits and begin to re-leverage their credit cards.”

Those facing extreme credit debt should pay off their debt as soon as possible. For those who only pay the minimum, they could end up paying two to three times more than the amount originally borrowed. If you are looking for help, please stop by

About Lendah

lendah is a specialty financial services company focused on helping consumers restructure and pay off their credit card and revolving debt. Since our inception, we’ve helped thousands of consumers find loans and options to consolidate their debt. We’re a regular bunch of smart Bostonians dedicated to finding a personal lending solution that’s right for consumers. We focus on a lending solution, not a lending company. Lendah offers a one-to-one loan matching service to help consumers get the best loan terms and results. Learn more at

John Caron
Email: [email protected]
Phone: 833-453-6324


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I&M Bank Kenya launches unsecured lending solution

NAIROBI, Kenya, January 18 – I&M Bank Kenya has launched an unsecured lending solution that makes it more convenient and faster for its customers to access unsecured loans through an automated platform.

The automated unsecured loan solution aims to enable faster and more efficient loan application and renewal processes for unsecured loans.

According to Kihara Maina, CEO of I&M Bank, eligible customers can apply for and receive loans within a day in most cases.

“We believe that access to unsecured loans and credit cards is critical for our customers. We will continue to invest in digital technologies to provide innovative financial solutions that are timely and relevant,” he said

The platform through which unsecured loans are delivered supports loan applications and decisions with credit scoring capabilities previously unavailable in the traditional bank loan application process.

Under the plan, customers can conveniently purchase credit facilities from a minimum of Shh 50,000 up to a maximum of Shh 3 million without posting any security or guarantor as security, payable over a period of up to five years.

You’ll also benefit from competitive interest rates and loan processing fees, with no minimum deposit balance required for personal loan requests.

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Payday Loans vs Personal Loans: What’s the Difference?

If you need money for an emergency, you can borrow it in a number of ways.

One is a payday loan. This type of loan is easy to apply for but can be very risky. Payday loans charge high interest rates and often have hidden fees. This very easily gets you into a debt trap where it becomes very difficult to repay your loan, even if you only borrowed a small amount to begin with.

Another option is a personal loan. These loans are a bit more complicated to apply for, but have much lower interest rates than payday loans. Because of this, personal loans are commonly used for debt consolidation and are a far safer way to get credit.

Here’s what you need to know about the differences between these loans and how to decide which one is best for you.

The central theses

  • If you need money for an emergency, you can borrow it in a number of ways. One is a payday loan. This type of loan is easy to apply for but can be very risky. Another option is a personal loan. These loans are a bit more complicated to apply for, but have much lower interest rates than payday loans.
  • With a simple online personal loan calculator, you can determine what type of payment amount and interest rate best suits your budget.
  • Payday loans are almost always more expensive to borrow than personal loans, and also riskier. If you’re eligible for a personal loan, this option lets you borrow more money, pay it back longer, and charge less interest.

Payday Loans vs. Personal Loans: An Overview

Payday loans and personal loans have some similarities. With both loans, you borrow money that must be repaid with interest at a later date. Both loans can be used to cover emergencies and to cover unexpected bills or other financial obligations.

These loans can vary significantly. Payday loans are generally used to borrow small amounts of money until the next paycheck and are very easy to arrange. These loans do not require collateral and can be very expensive. For this reason, they are often viewed as predatory lending as they have extremely high interest rates, do not consider a borrower’s ability to repay, and contain hidden provisions that charge the borrower additional fees.

Personal loans are a much broader category. This loan is usually offered by a bank, credit union, or online personal lender, and you usually have to show them proof that you can eventually repay the loan. Personal loans are usually for much larger amounts of money than payday loans, but you have much more time to repay that money. The interest rates and fees on a personal loan are much lower than a payday loan, so the overall cost of borrowing is likely to be much lower.


Payday loans can charge high interest rates – up to 400% – and hit you with hidden fees.

How payday loans work

It is usually very easy to get a payday loan. You can walk into a payday lender’s office and walk out with a loan. You don’t have to give the lender anything to secure the loan like you would at a pawn shop. Instead, the lender will usually ask you for permission to electronically withdraw funds from your bank, credit union, or prepaid card account. Sometimes the lender may ask you to write one
Check the repayment amount that the lender will collect when the loan matures.

Payday loans can get expensive. Payday lenders charge very high interest rates: up to 780% of the annual percentage rate (APR), with an average loan being close to 400%. Most states have usury laws that limit interest charges to between 5% and 30%. However, payday lenders fall under exceptions that take into account their high interest rates. Sixteen states — Arizona, Arkansas, Colorado, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, Montana, New Hampshire, New York, North Carolina, Pennsylvania, South Dakota, Vermont, and West Virginia, and the District of Columbia — have outright bans for extremely expensive payday loans. Seven states – Maine, New Mexico, Ohio, Oklahoma, Oregon, Virginia and Washington – have introduced measures such as term limits, fee caps or the number of loans per borrower that offer some protection to consumers.

Payday loans say their high interest rates are misleading because if you pay off your payday loan on time, you will not be charged high interest. That may be true in some cases, but according to the Consumer Financial Protection Bureau (CFPB), 80% of payday loans are rolled over multiple times, indicating that the majority of these loans are not repaid on time.

consolidate debt

You can use a personal loan to consolidate debt. With good credit, you can often take out a personal loan at a lower interest rate than you would pay with your credit card.

How personal loans work

To get a personal loan, you need to contact a lender. Again, this could be a bank, credit union, or online personal lender. As a rule, you first fill out an application. The lender reviews it and decides whether to approve or reject it. If approved, you will be presented with the loan terms, which you can accept or decline. If you agree to them, the next step is to complete your loan documents.

When that’s done, the lender funds the loan, which means they pay you the proceeds. Depending on the lender, these may come through a direct deposit into your bank account or by check. After the loan is funded, you can use the money as you see fit.

Personal loans can be secured or unsecured. A secured personal loan is a loan that requires some form of security as a condition of borrowing. For example, you can secure a personal loan with cash such as a savings account or a certificate of deposit (CD), or with a physical asset such as your car or boat. If you default on the loan, the lender can keep your collateral to pay off the debt.

You can also find personal loans online. Many lenders offer personal loans through their websites. You can apply electronically, receive a decision in minutes and, in some cases, receive funding within 24 to 48 hours of loan approval. With a simple online personal loan calculator, you can determine what type of payment amount and interest rate best suits your budget.

Lenders may have different requirements when it comes to the creditworthiness, income, and debt-to-income ratio that are acceptable for personal loan approval. This can help you narrow down the loans that best fit your credit and financial profile.

main differences

There are several key differences between payday loans and personal loans when it comes to covering emergency expenses:

  • costs. Payday loans generally have much higher interest rates than personal loans and can hit you with hidden fees and charges.
  • Accessibility. Payday loans can be easier to arrange, especially for people with limited credit histories and other financial challenges. With some payday lenders, you can even get an unbanked loan as long as you have a prepaid card account.
  • Impact on your credit score. Most payday lenders do not report to the credit bureaus. This means that only personal loans will appear on your credit report. Taking out a personal loan and paying it on time will increase your credit score, which will help you qualify for better loans and interest rates in the future.

In almost every situation, a payday loan will be more expensive than a personal loan. If you need emergency money, it’s best to apply for a personal loan if you can qualify. If you don’t qualify then you can look at other options. Even then, it may be better to spend money on your credit card, ask your employer for overtime, or borrow money from family and friends.

Is a Personal Loan a Better Alternative to a Payday Loan?

In general, a personal loan is cheaper than a payday loan. Lower personal loans give a borrower more time to repay a loan than a payday loan, and most credit unions offer APR personal loans that are comparable to credit cards, which still charge lower interest rates than payday loans.

Are Payday Loans Hard Or Easy To Repay?

Payday loans are sometimes more difficult to repay than a traditional loan because the lender has not verified your ability to repay before lending you money. Payday lenders generally don’t evaluate your debt-to-income ratio or consider your other debts before making a loan to you.

Do Payday Loans Help Your Credit Score?

Probably not. Payday loans are generally not reported to the big three national credit bureaus, so they are unlikely to affect your credit score. Unless you don’t repay the loan on time and are referred to a collection agency: that will damage your credit rating.

The final result

Payday loans are almost always more expensive to borrow than personal loans, and also riskier. If you are able to qualify for a personal loan, this option allows you to borrow more money, give you more time to pay back, and charge you a lower interest rate. If you need some emergency cash, the first thing you should do is apply for a personal loan.

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Axis Bank: Axis Bank is turning to unsecured credit as growth resumes

Mumbai: Axis Bank plans to gradually increase its unsecured retail loan portfolio as it seeks higher returns if economic activity is expected to recover.

Personal lending director Sumit Bali said the proportion of unsecured loans will rise to 22% to 24% in the near future as the bank increases its focus on credit cards, personal loans and small business loans.

“The effects of Covid have now subsided and risk appetite is returning. We plan to gradually increase our exposure to unsecured short-term loans,” Bali said.

Retail loans of ₹ 3.5 lakh crore account for 56% of the bank’s net loans, 80% of which was secured at the end of September 2021. Bali said that ratio will go down as the bank tries to improve profitability.

Secured loans are led by home loans, auto loans, and collateral-linked loans to small businesses, and Loans Against Real Estate (LAP). Bali said the bank’s risk management and underwriting skills are now tried and tested, allowing it to tap into riskier segments of credit.

Unsecured loans usually have higher margins. For example, personal loans have a 7 to 8 percentage point higher margin than the 1 to 1.25% margin for home loans, while unsecured small business loans could be 9 to 10 percentage points higher, Bali said.

Home loans make up 37% of the bank’s retail loans, followed by land, auto, personal loans, and LAP.

Axis also offers the self-employed a business installment loan with a ticket size of less than ₹ 10 lakh. Bali said it expects credit demand from this segment when economic activity picks up. “The pandemic has changed consumer attitudes to buying. Although some segments such as travel or restaurants are affected, we see positive indicators in terms of retail spending supported by the hybrid work model.”

At the end of September, Axis had an 8.5% share of credit card spending, led by retailers. It relies on partnerships with companies like Flipkart to increase emissions and spend.

The bank is also in the running for Citibank’s retail franchise in India, which launched in April. “Everyone knows that we are one of the bidders. It is a mix of retail assets, liabilities and wealth management that are good segments and we are interested,” said Bali.

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Secured vs. Unsecured Online Loans For Bad Credit

LOS ANGELES – December 29, 2021 – (

iQuanti: Loans are available to borrowers with poor credit ratings and categorized into two broad categories: secured and unsecured loans. Many of these loans offer online applications so that you can apply from the comfort of your home. So secured and unsecured Online Loans For Bad Credit Work out some of the differences between them and how bad credit borrowers can choose the right loan for their situation.

What are secured loans?

With secured loans, you need to leave something of value that you own as collateral, such as a security deposit. B. your car or your house. If the borrower defaults, the lender can take possession of the collateral to cover his loss. In principle, the security must be at least equal to the loan amount. Some common secured loans are:

  • Title Loans
  • Mortgages
  • Home loan
  • Secured credit cards

Because secured loans require collateral, they are considered less risky for lenders. This means that borrowers with poor and fair creditworthiness can still be approved.

What are Unsecured Loans?

Unsecured loans do not require the borrower to place any item as collateral. These loans are usually associated with simple applications and quick approval decisions. Some common types of unsecured loans are:

  • Installment Loans
  • Cash withdrawals
  • Credit lines
  • Student Loans

Although unsecured loans can be difficult to find without a credit check, there are many lenders who have less stringent loan requirements and consider additional factors such as your income and professional background when deciding on an approval. Hence, you may not need a good credit score to be approved for an unsecured loan.

Differences Between Secured and Unsecured Loans

Secured and unsecured loans have several differences:


As mentioned earlier, with secured loans, you need to provide collateral – an item of value that the lender can take if you default on the loan. Unsecured loans, on the other hand, do not require any collateral.

Prices and conditions

Secured loans can offer larger amounts, better interest rates, and more favorable terms as the collateral reduces some of the lender’s risk. Unsecured loans can have higher interest rates and lower amounts because you don’t have to risk a valuable item in exchange for a loan.

Paperwork and documentation

Secured loans can require a little more paperwork than unsecured loans as the borrower must demonstrate the value of their collateral.

The bottom line

Both secured and unsecured online loans can be good choices for low credit borrowers, but will depend on their situation and flexibility in the loan terms they want. Low credit, lower income borrowers who want better interest rates can opt for a secured loan. The collateral offsets the lender’s risk and enables him to offer the borrower larger amounts and more favorable loan terms.

On the flip side, borrowers who don’t want to risk losing their collateral may want to get an unsecured loan. There are many unsecured loan options for borrowers with poor and fair credit scores, but keep in mind that you may have to pay higher interest rates. Ultimately, you should evaluate your circumstances and finances in order to make the right choice for your needs. If your repayment schedule isn’t met, the chances are the lender could initiate a debt collection, file negative information on your credit report, or file a lawsuit against you.

Note: The information in this article is provided for informational purposes only. Check with your financial advisor about your financial situation.

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Original source:

Secured vs. Unsecured Online Loans For Bad Credit

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Kotak bullish on credit cards, unsecured loans

Mumbai: In a change of course, Kotak Bank has announced that it will expand its unsecured loans, including credit cards, at full speed. During the early stages of the pandemic, private lenders withdrew unsecured loans and were cautious about this segment.
“At the beginning of Covid, when we were dealing with a lot of unknown strangers, we wanted to see how the pandemic developed. Unsecured is now a very central business for us. The unsecured part of our balance sheet is very small, which gives us enormous scope for growth. We are extremely optimistic and are taking several initiatives to increase both unsecured credit and unsecured credit cards, ”said Ambuj Chandna, President of Kotak Mahindra Bank (Consumer Assets).
“We have 25 lakh cards, of which we issued more than one lakh in October alone,” said Chandna. He spoke to Indigo about the launch of a new co-branded credit card. Chandna said quarter-over-quarter growth was around 13% for the three months ended September.
Speaking at the event, William Boulter, IndiGo’s chief commercial officer, said domestic traffic had fallen back to 98% of pre-pandemic levels, while international tourist traffic was half what it was before. “We are inexpensive, but not cheap. The introduction of the credit card shows that we are trying to appeal to customers across the board and not just those who fly economy, ”said Boulter.
The partners have launched two new cards – the Kotak IndiGo Rewards 6E Ka-ching and a premium version of the same card. The basic card has a fee of 700 rupees, which is more than covered when customers take advantage of the 1,500 rupee welcome offer for an IndiGo ticket. The basic cards generate 3 reward points for every Rs 100 spent on IndiGo, while the premium version generates 6 reward points. The awards can be used for airline tickets. The Premium Card has a fee of Rs 2,500 (Rs 1,500 introductory offer) against which customers receive Rs 3,000 for a welcome ticket.
Chandna said there are signs that the pandemic is headed towards endemic and that the credit card business is likely to grow similarly to air travel in India. “We believe maps will go the way of aviation. We believe the credit card business in India is at this turning point, ”said Chandna. The bank had previously partnered with PVR for a co-branded card.

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93% of payday loan borrowers regret taking out their loans, a survey found

Payday loans can be a debt trap for borrowers who cannot afford to make payments. This allows you to repay your payday loan before it is sent to debt collection agencies. (iStock)

Payday lenders hunt down bad credit borrowers in dire need of cash and trap them in a cycle of high-yield debt that is difficult to repay.

The vast majority (93%) of borrowers regret taking out their payday loan, according to a new survey by Debt hammer. Only 1% of respondents said their financial situation improved after taking out a payday loan, while 84% said they were worse off.

Payday loans provide consumers with the option to borrow small, short-term cash advances without a credit check. But the typical repayment period is only two weeks, which results in 4 out of 5 borrowers taking out a new payday loan to repay their current debts Consumer Protection Office (CFPB) reports.

It is possible to get out of payday loan debt without extending your loan and incurring additional fees. Read on to learn how to break the borrowing cycle with payday loans such as: B. Debt consolidation with a personal loan. You can compare debt consolidation loan interest rates on Credible for free without affecting your creditworthiness.


3 Ways To Get Out Of A Payday Loan

The average cost of a payday loan is close to 400% APR – in other words, borrowers who continually renew their payday loan could pay four times the amount originally borrowed over the course of a year.

Payday lenders may make you think that extending your loan is the only way to pay off your debt, but it is not. Here are some alternative ways to break the payday loan cycle:

  1. Debt Consolidation Loans
  2. Advanced payment plans
  3. Credit counseling

Read more about each repayment plan in the following sections.

3 things you should never do with your emergency fund

1. Debt Consolidation Loans

Personal loans are flat-rate loans that are widely used to consolidate high-yield debt, such as: B. Payday Loans. They come with fixed rates and repayment terms, which means your monthly payments stay the same while you pay off your debt.

These debt consolidation loans are usually unsecured, which means that you do not need to pledge an asset as collateral. Since they are unsecured, lenders will determine your interest rate and eligibility based on your creditworthiness and debt-to-income ratio.

Well qualified borrowers can qualify for a low interest rate on a debt consolidation loan. The personal loan rates are near all-time lows according to the Federal Reserve averaged 9.39% in the third quarter of 2021.

Some credit unions also offer Small Alternative Payday Loans (PALs) that allow members to borrow up to $ 2,000 with an interest cap of 28%. However, these loans can be difficult to find as only a small fraction of the credit unions offer PALs.

One way to determine whether you qualify for a debt consolidation loan on Credible is to use a soft credit inquiry that will not affect your credit score. Use a personal loan calculator to estimate your monthly payments to see if this option can help you get out of payday loan debt.


2. Advanced payment plans

An Extended Payment Plan (EPP) allows payday loan borrowers to repay their debts over a longer period than the typical two week repayment period. Many states require that payday lenders offer EPPs, so you will need to research your state’s laws to determine if you are eligible.

Some payday lenders can offer EPPs regardless of whether they are required by law to do so. Lender of the Community Financial Services Association of America (CFSA) are required to offer EPPs to borrowers, but other financial institutions may not offer this option.


3. Credit counseling

Nonprofit credit counseling agencies offer free or low-cost services to borrowers who are struggling to manage their debts. One of these services involves adding payday loan borrowers to a debt management plan (DMP).

As part of a DMP, a loan advisor will help you create a budget and debt settlement plan. Credit counselors may be able to help you negotiate with payday lenders to set a lower interest rate or reduce the loan amount.

For a full list of certified nonprofit credit counselors, visit the Ministry of Justice Website. If you still have questions about payday loan debt relief, learn more about debt consolidation by contacting a. turn around knowledgeable loan officer on Credible.


Do you have a question about finance but don’t know who to contact? Send an email to the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert section.

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Upgrade Personal Loans Review 2021

Personal Finance Insider writes on products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners like American Express, but our reporting and recommendations are always independent and objective. The conditions apply to the offers listed on this page. Read our editorial standards.

Appreciate loan amounts and interest rates

When upgraded, personal loan amounts range from $ 1,000 to $ 50,000 and can be repaid over two to seven years, depending on what best suits your repayment needs. There are no early repayment penalties for early repayment of the loan.

While you need good credit to qualify for the lowest interest rate, the 5.94% upgrade minimum interest rate is competitive when compared to similar lenders. For example, the minimum APR for Payoff and Best Egg is 5.99%. You can apply to a fellow borrower with good credit to potentially get a better price upgrade.

On the other hand, if your balance is in worse shape, upgrading may not be a great option for you. The upgrade’s maximum APR is 35.97%, significantly higher than Best Egg’s rate of 29.99% or Payoff’s rate of 24.99%.

Advantages and disadvantages

This is how the upgrade works

Upgrade offers unsecured personal loans through its credit partners Cross River Bank (member FDIC) and Blue Ridge Bank (member FDIC). You don’t have to put on collateral like a house or a car to get an unsecured personal loan. You can get a personal loan for various purposes.

You cannot obtain a personal loan in all 50 states with Upgrade because the lender does not serve borrowers in Iowa or West Virginia.

After applying and approving your loan, you should receive your funds within one business day. With an upgrade loan, you do not pay a prepayment penalty, but you do pay a commitment fee of between 2.90% and 8%. You will also be charged a late fee of up to $ 10 if the lender does not receive your payment in full within 15 days of the payment due date.

Depending on what you need help with, you can send an email to the company’s customer support account. You can also call 6:00 AM to 6:00 PM PT Monday through Friday or 6:00 AM to 5:00 PM PT on the weekend.

Upgrade lists common reasons for taking out a personal loan on its homepage, such as: B. the refinancing of credit cards, home improvement, or major purchases Debt consolidation.

You must meet the following requirements to apply:

  • Be a US citizen or permanent resident, or live in the US on a valid visa
  • Be at least 18 years old (19 years old in Alabama)
  • Have a verifiable bank account
  • Please provide a valid email address

What creditworthiness do you need?

If you upgrade, you will need a minimum credit score of 620 to qualify for a loan. This minimum is similar to that of other personal lenders who have similar interest rates and loan terms. For comparison, the lowest credit score Best Egg and Payoff accepts is 640.

When you need access to your credit report, it can be obtained for free from any of the three major credit reporting agencies weekly through April 20, 2022. This report provides information about your payment and credit history, but not your credit history. By reviewing your credit report, you can spot mistakes and find room for improvement.

You can see your score on your credit card statement or online account for free. You can also buy it from a credit bureau.

The upgrade does two soft credit requests – which won’t affect your creditworthiness – once you check your price and again accept your offer and submit your bank account information.

Once your loan is funded, the lender will run a tough loan application that will likely affect your credit score. A hard query gives a lender a full view of your credit history, but it can negatively affect your credit score.

Is Upgrade Trustworthy?

Upgrade is a Better Business Bureau accredited company, and the BBB, a not-for-profit organization focused on consumer protection and trust, is giving Upgrade one A + rating. The BBB rates companies by reviewing company responses to consumer complaints, honesty in advertising, and clarity about business practices.

Remember, a great BBB rating does not guarantee an excellent relationship with Upgrade. So be sure to read the reviews and ask friends and family about their experience with the company.

Upgrade has no current controversy. Its clean history and great BBB rating make you comfortable using Upgrade as your personal lender.

Comparison of upgrade

Although the interest rates depend on your individual situation, the interest rates of Upgrade are comparable to those offered by similar lenders. This is how Upgrade compares to the competition:

Upgrade has a lower credit score than Best Egg, but it comes at the price of a higher APR if your credit isn’t in the best shape.

However, you may be able to get a slightly lower APR with Upgrade than Best Egg. Since companies have similar APR ranges, it is likely in your best interest to obtain your rates from lenders to compare your options.

When upgrading, you pay a processing fee of between 2.90% and 8% of your total loan amount, and this fee will be included in your total APR of the loan. At Best Egg you can pay a slightly lower origination fee as the range is between 0.99% and 5.99%.

You will likely get your money in roughly the same time with both companies within one business day of approval.

Upgrade has a maximum term of seven years, while Best Egg has a maximum term of five years. If you want to spread your payments over a longer period of time, upgrade might be a better choice for you.

Upgrade and Payoff have relatively similar minimum credit requirements, but a significant difference in the maximum APR. Payoff’s highest interest rate is 24.99%, which is over 10% lower than Upgrade’s maximum APR.

Repayment personal loans are designed to help borrowers pay off high-interest credit card debt. This means that you have limited options in using your loan – you can opt to upgrade if you are not trying to consolidate credit card debt.

The upgrade will likely send you your funds faster than the withdrawal. Upgrade typically sends funds within a day of approval, while Payoff takes at least three business days.

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According to a new study, small dollar loans are up to 24x cheaper with Oportun

Released one day ago

Submitted by Oportun

SAN CARLOS, Calif., Nov. 2, 2021 / CSRwire / – Today, Oportun (Nasdaq: OPRT), an AI-powered fintech that brings hard-working people access to responsible and affordable credit, released results from the Real cost of a credit analysisconducted by the Financial Health Network. This new report shows the need for less expensive US dollar small loans. One solution is the type of AI-powered underwriting offered by Oportun, which could dramatically reduce the cost of small loans for hard-working people.

The study’s conclusions include that an online installment loan of $ 500 could cost someone with poor or no credit worth more than $ 2,400 in interest and fees over the life of a loan. In comparison, a responsibly structured loan taken out using artificial intelligence (AI) and machine learning would cost only $ 102 in interest and fees, a savings of more than 24x.

The analysis, conducted by the Financial Health Network and commissioned by Oportun, provides an independent look at the lifetime cost of the various small dollar loan options that are most easily available to people with poor credit or no credit history. Importantly, these comparisons are typically not available to consumers looking for credit options and affordability.

“The reality is that the people in need of affordable credit most often pay the highest rates and fees,” said Matt Jenkins, COO and general manager of personal loans at Oportun. “This rigorous examination of realistic credit options for these households shows that credit structure and the use of advanced technology in underwriting are important. We hope these results inspire other vendors to adopt product design and AI best practices to maximize affordability and impact for hardworking individuals. “

In a separate study, the FinHealth Spend Report 2021 found that low- and middle-income families are spending $ 127 billion in interest and fees on alternatives that include the four products used in the True Cost of a Loan analysis: Credit cards, installment loans, payday, and rent. The True Cost of a Loan study used a proprietary model developed by the Financial Health Network to analyze state price data and household incomes to determine how much a typical Oportun customer would pay for $ 500, $ 1,500, and $ 3,500 loans would.

Other important findings are:

  • Online-only installment and payday loans, as well as traditional payday loans, add over $ 3,000 for a $ 1,500 loan, while credit cards and oportun loans are less than $ 500 each.
  • A typical $ 3,500 payday loan is the most expensive at $ 10,775 in interest and fees, while an Oportun loan is the cheapest at $ 1,645.
  • On average, oportun loans were six times cheaper than alternative loans of the same amount.

“Consumers can find it difficult to estimate the cost of credit because credit products vary widely in structure and fees,” said Marisa Walster, VP of Financial Services Solutions, Financial Health Network. “This rigorous analysis shows that responsible credit management combined with competitive interest rates can deliver significant savings for consumers.”

Oportun uses advanced data analytics, proprietary risk assessment, AI, and 15+ year old consumer insights to help low- and middle-income consumers responsibly, affordably, and on a large scale. Unique, this technology enables Oportun to rate 100% of loan applicants with a high level of accuracy.

Oportun’s core product is an easy-to-understand, affordable, unsecured, fully amortizing personal installment loan with fixed rates and fixed rates throughout the life of the loan. Oportun loans have no prepayment penalties or balloon payments, are priced less than 36% APR, and range from $ 300 to $ 10,000 with terms of 12 to 48 months.

Since its inception, Oportun has successfully extended more than 4.3 million loans and $ 10.5 billion in loans, mostly in the form of small loans, saving its customers more than $ 1.9 billion in interest and fees become history when compared to other options that are normally available to people with little or no credit. By reporting repayment performance to major credit bureaus, the company has also helped more than 925,000 people compile a credit history.

Click here to download the report.

About Oportun
Oportun (Nasdaq: OPRT) is a financial services company using its digital platform to provide responsible consumer credit to hardworking people. Using AI-powered models built on 15 years of proprietary customer insights and billions of unique data points, Oportun has extended more than 4 million loans and over $ 10 billion in affordable credit, offering its customers alternatives to payday and auto title loans. Recognizing its responsibly designed products that help consumers build their creditworthiness, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.

Media contact
George Gonzalez
[email protected]



Oportun (Nasdaq: OPRT) is a financial services company using its digital platform to provide responsible consumer credit to hardworking people. Using AI-powered models built on 15 years of proprietary customer insights and billions of unique data points, Oportun has extended more than 4 million loans and over $ 10 billion in affordable credit, offering its customers alternatives to payday and auto loans. Recognizing its responsibly designed products that help consumers build their creditworthiness, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.

More of Oportun

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Best Personal Loans For Fair Loans In October 2021 – Forbes Advisor

Launched in 2017, Upgrade offers accessible online and mobile credit and banking services in all states except Iowa, Vermont, and West Virginia. Since then, the platform has provided more than $ 3 billion in loans to more than 10 million applicants and continues to expand its online and mobile services. Although the maximum APR are on the high end compared to other online lenders, Upgrade does make loans available for those with poor credit ratings.

Loan amounts that start at just $ 1,000 are flexible but capped at $ 35,000 – lower than lenders who focus on more creditworthy borrowers. Three and five year loan periods are available. Upgrade will charge a commitment fee of between 2.9% and 8% of the loan, and borrowers will pay a $ 10 fee if their payment is delayed or missed by more than 15 days; there are no discounts for autopay. However, upgrade borrowers are not subject to prepayment penalties, so if you can prepay it early, you can reduce the total cost of the loan.

In addition to offering accessible personal loans, Upgrade is optimizing the lending process with a mobile app that borrowers can use to view their account balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy for you to keep track of your credit history over the life of your loan.

Eligibility to participate: Prospective borrowers should have a minimum score of 580 to qualify for an upgrade personal loan (the average borrower score is 697), making it an accessible option for those with fair credit. In addition, the lender does not require applicants to meet a minimum income, although borrowers make an average of $ 95,000 per year. Applicants should have a maximum pre-loan debt to income ratio of 45%, excluding their mortgage.

The lender also takes into account each applicant’s free cash flow, which shows their likely ability to make consistent loan payments on time. Ideally, applicants should have a minimum monthly cash flow of $ 800.

Upgrade increases the accessibility of the loan by also allowing co-applicants.

Credit used: As with most other personal loans, Upgrade Loans must be used to pay off credit cards, consolidate other debts, do home improvement, or pay for other large purchases. However, Upgrade stands out from some lenders by allowing borrowers to use personal loan funds to cover business expenses. Additionally, Upgrade pays out third-party lenders directly, making debt consolidation more convenient than some competing lenders.

Apart from the legally prescribed prohibitions on the use of upgrade loans, there are no special prohibitions.

Change of page: Once an upgrade loan is approved, it typically takes up to four business days for a borrower to receive the funds. However, if Upgrade is paying off a borrower’s loan directly to an outside lender, it can take up to two weeks for the funds to clear.

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The Best Low Interest Personal Loans In November 2021 – Forbes Advisor

A US bank personal loan gives you quick access to funds for your one-time financing needs, whether it’s to consolidate your debt or to cover large expenses. US Bank offers existing US bank customers unsecured personal loans between $ 1,000 and $ 25,000. The loan terms are between 12 and 60 months.

The US Bank’s loans have low interest rates of 5.99% to 16.49%, depending on their creditworthiness, which include an autopay discount of 0.50%. Higher credit borrowers are more likely to qualify for interest rates on the lower end of the spectrum. Similar to other top providers, the US Bank does not charge any commitment fees and there is no prepayment penalty, so you can always make loan payments before they are due.

Applying for a US bank loan is easy and can be done online. However, you must be a current US bank customer. Some customers may need to visit a US bank branch if additional information or documentation is required.

Eligibility to participate: The US bank requires applicants to be existing US bank customers. If you’re a current customer, you can qualify for a personal loan with a credit score of at least 680. However, those with a credit score of 680 will not benefit from the lowest interest rates available.

Since you may need to go to a branch to take out your loan, you need to live near a physical location. US Bank has offices in 26 states: Arkansas, Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oregon , South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming.

Credit used: US Bank personal loans can be used for any purchase or product other than residential or educational expenses. For example, they can cover vacation expenses, home renovations, medical bills, or help consolidate debts like credit cards.

Change of page: An applicant will typically know their loan approval status in less than a minute. If you qualify for the personal loan, you can finance your loan online; However, you may need to visit a branch if a US bank representative needs more information. Once your loan has been completed, the funds will be available to you within one working day.

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Why you shouldn’t be in default on credit

Due to Covid-19, retail lenders faced several challenges. On the one hand, the demand for small loans has risen as lockdowns affect livelihoods; on the other hand, the recovery rate has slowed. As a result, the rise in loan defaults has lowered the creditworthiness of borrowers.

“The creamy layer or low-risk borrowers saw their creditworthiness drop by around 5 percent from March 2020 to March 2021,” said Subhrangshu Chattopadhyay, national sales head, CRIF High Mark, a credit bureau recognized by the RBI. A credit score shows your creditworthiness. Because of this, lenders have tightened their credit guidelines. Most loans are only granted to existing customers with good credit ratings. A CIBIL score of 750 or higher is ideal for taking out loans. If your score is below 750, you will find it difficult to get loans from banks and NBFCs. If it’s near 750, you can get loans but at a higher interest rate.

While the trend of increasing loan defaults affects lenders, defaults have serious consequences for borrowers as well. First, it can affect his ability to get a loan in the future. Second, even if such a person is able to take out a loan, it will come at much higher interest rates. A failure that is declared “willful” can also lead to criminal proceedings. Here are the facts about the consequences of a loan default for borrowers.

Trend reversal: small is big

Travel, weddings, home renovations, down payments on a home, used cars, educating children, and paying back loans with higher interest rates were some of the main reasons people took out loans before Covid-19. After the outbreak of Covid-19, the trend shifted towards consumption-related and essential expenses. “Borrowing related to travel has slowed down. People are now borrowing for home renovations, paying off high-interest debt and paying home down payments, ”said Gaurav Chopra, founder of IndiaLends, an online loan aggregator.

According to the RBI’s Financial Stability Report, the industrial sector’s share of bank credit has decreased in recent years, while the share of personal credit has increased. In 2014, personal loans accounted for 16.2 percent of total loan volume. This rose to 26.3 percent in 2021. The share of smaller loans is also increasing. A report by TransUnion CIBIL and Google shows a 23-fold increase in loans to up to Rs 25,000 between 2017 and 2020. The proportion of ‘

The trend is also reflected in the credit card numbers of banks. According to RBI data, the value of transactions via credit cards at ATMs and point-of-sale terminals increased by 23 percent from March 2020 to June this year.

Adhil Shetty, CEO and co-founder of, says easing KYC norms has made it easier for credit card issuers to serve customers in Tier II and Tier III cities. “As a consequence, the demand for credit cards from non-metros continues to peak. The proportion of non-metros in total applications rose to 35 percent in FY21, compared to 24.8 percent in FY20, ”he adds.

Increase in retail NPAs

The downside of the increasing popularity of retail lending has been an increase in non-performing assets (NPAs) at most of the major banks. ICICI Bank, the country’s second largest private lender, added Rs 6.773 billion gross NPAs from retail and commercial banking portfolios in the first quarter of FY22, compared to Rs 4.355 billion in the fourth quarter of FY21. Axis Bank reported Rs 6,518 crore gross slippages compared to Rs 5,285 crore in the fourth quarter of last year. “Axis’ slip-ups were dominated by retail credit,” said a report by ICICI Securities.

Credit Bureau CRIF High Mark Agrees Credit Defaults Have Risen During Covid. The credit platforms have become cautious as a result. A recent report by PwC Equifax says that over 70 percent of credit managers have changed their standards, especially for those with poor credit histories, in an attempt to preserve asset quality. Online lenders are rejecting 45-50 percent loan applications after the pandemic. This is mainly because they are now factoring in additional parameters for underwriting such as recession, unemployment and insurance claims.

As people become more comfortable taking on debt and new lenders increase both online and offline, both borrowers and lenders need to act responsibly to avoid problems later on. Lenders, says Chopra of IndiaLends, have already become cautious when it comes to underwriting. Likewise, borrowers should be responsible and do their best to repay the loan. Failure to do so could result in serious consequences.

Consequences of default

Credit history takes a punch: The lender informs Schufa of the payment status monthly or when the loan installment is due. While a few days delay can be ignored, any payment that is delayed beyond 30 days will be reported to the credit bureau. This can have some impact on the person’s credit profile. However, a delay of 30-60 days will definitely tarnish the borrower’s credit history, while a delay of more than 60 days can severely affect creditworthiness.

A low credit score reduces a person’s ability to borrow in the future. “Today you might have borrowed a phone or a two-wheeler, but next time you will most likely have a bigger need or an emergency. You may be denied the loan due to bad credit, ”says Chopra of IndiaLends.

Online loan platforms that grant small loans are even more conservative. Even a single day late, says Bhavin Patel, co-founder and CEO of LenDenClub, can put the borrower on the list of defaulters. “A defaulting borrower will no longer be able to take out a loan in the future unless he pays back the older loan on our platform.”

Higher interest rate: Lenders today link the interest rate to your creditworthiness. Bad credit increases your borrowing costs and reduces your long-term savings.’s Shetty explains. “On a home loan of Rs 50 lakh for 20 years at a low interest rate of 6.8 percent, the total interest paid would be Rs 41.60 lakh. But if your credit was bad and you had to pay 8.5 percent on the same loan, your interest payment would be Rs 54.13 lakh. So you pay almost 12.53 lakh Rs more. “

For secured credit categories like home loans, the difference will be smaller – 10-200 basis points in most cases. For example, two very large home financiers have a 70 basis point and 125 basis point difference, respectively, between their lowest and highest interest rates, Shetty says. With unsecured categories like personal loans, the difference can be much bigger. “A private bank pays interest on personal loans between 10.5 percent and 19 percent.” You can save this money for other life goals such as investing in retirement or financing your child’s education.

Fintech loan platforms are one step ahead. Their algorithms adjust the interest rates according to the current default rate in order to minimize the impact on your portfolio. For example, in the first quarter of 2020, IndiaLends increased its lending rates by 0.8 percent as the default rate on its platform rose by one percentage point.

Legal implications: Loan defaults are a civil offense. However, the lender may attempt to cash blank checks from the borrower, says Shetty of Failure to cash a check for lack of money is a criminal offense.

If a customer does not pay within 90 days, the case is usually referred to legal action. The lender may, after 180 days of default, bring proceedings against the borrower under Section 138 of the Negotiable Instruments Act of 1881. If the borrower does not pay despite the ability to do so, the RBI can declare him to be “willful default in payment”. However, if he is unable to pay for valid reasons, he can reach an agreement with the lender that gives him more flexibility to pay.

However, to date, most fintech lenders disbursing small loans have not faced such cases. “These are tough and high-level steps. We have not yet seen a case like this. In most cases, when the customer reaches the court, they offer to settle the loan, ”says Bhavin Patel from LenDenClub.

Real estate auction: In the case of secured loans such as a home loan, the lender has the right to auction the property through the judicial process. Likewise, the lender can confiscate the vehicle in the case of car loans. Lenders can also auction the borrower’s gold if the borrower does not repay the loan against the yellow metal. However, it must give the borrower 30 days before taking such a step.

Job loss: Most companies do not hire people to be involved in criminal activities. For certain senior positions, especially in industries like financial services, companies review the candidate’s credit history to see if he or she is trustworthy. “A bad credit history will make it difficult for a defaulting borrower to get a good job,” says Chopra of IndiaLends. Criminal proceedings also have a negative impact on the defaulting person’s passport.

Should you take out one loan to repay another loan?

“If it saves money, it definitely does,” says Chopra. For example, a credit card can have a very high interest rate of around 3.5 percent a month or 42 percent annually. “Taking out a personal loan that starts at 10-12 percent to pay back the credit card debt would be a good strategy,” he says. Most people can get a personal loan at an annual rate of 14-15 percent.

“Even if the intent is to refinance a home loan because it will save the borrower many rupees over the life of the loan, it is a good idea,” says BankBazaar’s Shetty. But if the person’s credit habits stay bad, refinancing may not help, he adds.

The second loan is to be used to repay existing high-interest loans. It shouldn’t add to the debt burden, experts say. Credit must be used wisely. The generally recommended rule is to use 30 percent of your credit limit. “The more you use your credit limit, the greater the impact will be on your score,” says Shetty.

Borrower Rights

First and foremost, borrowers have the right to be treated fairly and politely. “No lender can harass or intimidate borrowers,” says Shetty. Lenders should send notices, messages and emails to the borrower in the event of default. If the loan has become an NPA due to 90 days late payment, the bank or financial institution must issue a 60-day period to repay the contributions.

The defaulting party is also entitled to the difference earned by the lender (through the sale of the confiscated asset) beyond the due date, Shetty says.

The defaulting person is also given the right to due process, which can include a moratorium, restructuring or even a one-off settlement.


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Car Repair Loan: What You Need To Know, And Where To Find One

Our goal here at Credible Operations, Inc., NMLS Number 1681276, hereinafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote products from our partner lenders who reward us for our services, all opinions are our own.

Do you need cash to pay for unexpected vehicle repairs? A car repair loan can be a solution to get you back on the road. (iStock)

If you own a car, at some point you will come across a car repair that is not covered by your vehicle warranty or insurance. That could mean a big bill or be stranded with no wheels.

Without enough savings to spend on repairs, you will have to raise the funds to get your vehicle back on the road. A car repair loan is a solution to getting your vehicle repaired and running again. Here you will find everything you need to know about this financial product.

What is a car repair loan?

A car repair loan is any type of loan that can be used to pay for car repairs – this is usually an installment-based personal loan.

With a car repair loan, you borrow a lump sum that you can use to cover your car repair bills. You are responsible for the monthly repayment of the loan for a specified period of time including interest at the agreed rate.

You can Compare personal loan rates from different lenders in minutes with Credible.

How do auto repair loans work?

When you take out a car repair loan, you can expect it to work just like any other personal loan. Once approved, your lender will offer personalized loan terms. These dictate how long do you have to repay the loanwhat your fixed monthly payments are, what the interest is, and whether you can repay the loan early without any prepayment penalties.

Personal loans are usually unsecured. This means that borrowers do not have to guarantee the loan with existing assets – also known as collateral. However, borrowers typically need to have good credit ratings and a stable source of income to qualify.

Benefits of Car Repair Loans

When faced with a heavy bill from your mechanic, there are a few advantages to taking out a car repair loan:

  • No collateral is required. Unlike many other loan products, car repair personal loans are unsecured. You do not have to do not deposit any collateral – like the title of your car, home equity, or savings account – to take out the loan.
  • You receive the loan in a one-off payment. Your lender will provide you with the entire loan amount at once so you can pay for your repair shop and get started.
  • Funding is generally pretty quick. Depending on which lender you choose, you might be able to get your car repair loan as early as the next business day.
  • The interest rates are often lower than other products. The interest rates on personal loans are usually lower than credit cards or payday loans. Your actual interest rate will depend on your creditworthiness, income, and loan terms.

How to apply for a car repair loan

Borrowing money to pay for car repairs can be a simple process. Depending on your individual situation and financial history, it can also happen relatively quickly.

1. Determine how much you will need to cover your repair costs. Take into account things like parts, labor, and any towing fees incurred.

2. Shop around a lender. Apply for a car repair loan from multiple lenders or shop through a platform like Credible for multiple quotes in one place. This not only saves you time and you can do without it Affecting your creditworthinessbut also tells you how much you can qualify for and offers you the best deals possible.

3. Choose your loan. Choose your lender based on the best loan terms they are offered (e.g. repayment duration, monthly payments and interest rate) and even how quickly you can get your loan funds.

4. Apply. Submit a loan application includes a tough credit check, which temporarily lowers your score by at least a few points.

5. Get your money. Your lender will deposit your loan money into the account you specified. Depending on which lender you choose, you might get your money the same or the next business day.

Where can I find a car repair loan

Most banks, credit unions, and online lenders offer personal loans for car repairs.

If you already have a relationship with a bank or credit union, you may want to see what loan terms and rates they offer. Otherwise, shopping online can be a great way to get multiple quotes at once without sacrificing your credit score.

Credibility makes it easy Compare personal loan rates from multiple lenders.

15 Lenders You Should Consider For Car Repair Loans

If you are in need of a car repair loan, you should consider these 15 credible affiliate lenders.


  • Loan Amounts: $ 2,000 to $ 35,000
  • Minimum creditworthiness: 550
  • Financing time: The next working day


  • Loan Amounts: $ 5,000 to $ 35,000
  • Minimum creditworthiness: 740
  • Financing time: The next working day

Best egg

  • Loan Amounts: $ 2,000 to $ 50,000
  • Minimum creditworthiness: 600
  • Financing time: Just one to three working days after successful verification


  • Loan Amounts: $ 2,500 to $ 35,000
  • Minimum creditworthiness: 660
  • Financing time: The next working day after acceptance

Freedom plus

  • Loan Amounts: $ 10,000 to $ 35,000
  • Minimum creditworthiness: Does not disclose
  • Financing time: After just two working days

Lending Club

  • Loan Amounts: $ 1,000 to $ 40,000
  • Minimum creditworthiness: 600
  • Financing time: After just two working days


  • Loan Amounts: $ 2,000 to $ 36,000
  • Minimum creditworthiness: 580
  • Financing time: The next working day


  • Loan Amounts: $ 5,000 to $ 100,000
  • Minimum creditworthiness: 660
  • Financing time: Already on the same working day

Marcus from Goldman Sachs

  • Loan Amounts: $ 3,500- $ 40,000
  • Minimum creditworthiness: 660
  • Financing time: Usually three working days

OneMain Financial

  • Loan Amounts: $ 1,500 to $ 20,000
  • Minimum creditworthiness: None
  • Financing time: On the same working day (but usually requires a visit to a branch)


  • Loan Amounts: $ 600 to $ 50,000 (depending on the loan period)
  • Minimum creditworthiness: 670
  • Financing time: Just two to four working days after verification


  • Loan Amounts: $ 2,000 to $ 40,000
  • Minimum creditworthiness: 640
  • Financing time: Already on a working day


  • Loan Amounts: $ 5,000 to $ 100,000
  • Minimum creditworthiness: Does not disclose
  • Financing time: Three working days


  • Loan Amounts: $ 1,000 to $ 50,000
  • Minimum creditworthiness: 560
  • Financing time: Within one working day after approval of the necessary checks


  • Loan Amounts: $ 1,000 to $ 50,000
  • Minimum creditworthiness: 580
  • Financing time: Already on a working day

When you’re ready to apply for a car repair loan, use Credible to Compare personal loan rates in minutes.

3 Car Repair Financing Options That You Should Avoid

If you have to pay for a car repair and can’t (or don’t want to) take out a personal loan, you have a few other funding options. However, they can be costly and should only be considered as a last resort.

Payday loan

  • Short credit periods, often around two weeks
  • Very high fees that correspond to an APR of 390% to 780%
  • Low credit limits (anywhere between $ 100 and $ 1,000, depending on government regulations)

Car loan

  • Loans are usually limited to 25 to 50% of the vehicle’s value
  • The title of your vehicle is kept as a security
  • Average financing fees that correspond to an APR of around 300%
  • Usually, the repayment has to be made in just 15 to 30 days

Cash advance by credit card

  • Usually have higher financing fees than normal credit card purchases
  • May also charge transaction fees
  • If you do not pay the remaining amount in full, the interest will be topped up with the next billing cycle

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The Best Wedding Loans In October 2021 – Forbes Advisor

Launched in 2017, Upgrade offers accessible online and mobile credit and banking services in all states except Iowa, Vermont, and West Virginia. Although the APR are on the high end compared to other online lenders, Upgrade does make loans available to those with poor credit history – with a score of just 580.

Wedding loan amounts that start at just $ 1,000 are flexible but have a cap of $ 50,000 – less than lenders who focus on lower risk borrowers. Three and five year loan periods are available. Upgrade charges a commitment fee of between 2.9% and 8% of the loan, and borrowers pay a $ 10 fee if their payment is delayed or missed by more than 15 days. There are no discounts for Autopay.

However, upgrade borrowers are not subject to prepayment penalties, so if you can prepay it early, you can reduce the total cost of the loan.

In addition to offering accessible personal loans, Upgrade is optimizing the lending process with a mobile app that borrowers can use to view their account balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy for you to keep track of your creditworthiness over the life of your loan.

Eligibility to participate: Prospective borrowers should have a minimum score of 580 to qualify for an upgrade wedding loan (the average borrower score is 697), making it an accessible option for those with fair credit. In addition, the lender does not require applicants to meet a minimum income, although borrowers make an average of $ 95,000 per year. Applicants should have a maximum Debt to Income Ratio (DTI) of 45% prior to the loan, excluding their mortgage.

The lender also takes into account each applicant’s free cash flow, which shows their likely ability to make consistent loan payments on time. Ideally, applicants should have a minimum monthly cash flow of $ 1,000. Your free cash flow is the amount of money you will have left after paying all of your financial obligations.

Upgrade increases the accessibility of the loan by also allowing co-applicants.

Credit used: In addition to covering wedding expenses, Upgrade loans can also be used to pay off credit cards, consolidate other debts, do home improvement, or pay for other major purchases. Unlike most other lenders, Upgrade allows borrowers to use personal loan funds to cover business expenses. Additionally, Upgrade pays out third-party lenders directly, making debt consolidation more convenient than some competing lenders.

Apart from the legally prescribed usage bans for upgrade loans, there are no special bans.

Change of page: Once an upgrade loan is approved, it typically takes up to four business days for a borrower to receive the funds. However, if Upgrade is paying off a borrower’s loan directly to an outside lender, it can take up to two weeks for the funds to clear.

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Deciphering 10 Myths Around Personal Loans – Forbes Advisor INDIA

Personal loans are a credit tool that can be used to finance most major purchases and expenses, from engagement rings to home repairs, often at a lower interest rate than paying with a credit card. Unlike credit cards, personal loans provide borrowers with a one-time cash flow. Then the borrowers pay back this amount, the so-called principal amount, together with the interest in regular monthly installments over the term of the loan, the so-called term.

Due to the advancement of technology, it takes less than ten minutes to apply for a personal loan on the internet, where digital lenders offer various types of personal loans. The entire process from application to payout takes less than a day and the loans are often customized to suit your needs.

As with any other financial decision, getting a personal loan involves several questions, such as:

  • Which Lender to Choose?
  • What type of personal loan to choose?
  • How do I get a personal loan?

While answering these questions is important, it is equally important to break the myths surrounding personal loans first, as they can tarnish judgment as they seek answers.

Myths Related to Personal Loans

If you are a first time borrower, you may be nervous about taking out a loan. Obtaining a personal loan can be expected to be a time consuming process or involve high interest rates or collateral on your loan. There are numerous myths surrounding personal loans that often discourage individuals from getting a loan when they really need access to finance. Here is a list of ten personal loan myths.

1. Personal loans are only offered by banks

The most common misconception about personal loans is that banks are the only financial institutions that offer personal loans. While banks are a part of the financial institutions that offer credit, there are several Non-Bank Financial Firms (NBFCs) that offer personal credit.

In several instances where banks can refuse an applicant’s loan application due to rigid norms, NBFCs and other digital lenders often accept these borrowers’ applications at similar interest rates and with more customization.

2. Personal loans have a long processing time

Borrowers often forego applying for a personal loan, as this involves a relatively longer processing time and a cumbersome approval process. This may have been the case in the past, but it isn’t entirely true in 2021.

The entire process from applying for the loan to be paid out in your account can now be completed within 24-48 hours. One has to fill out the application online and upload the required documents, which takes just a handheld device and less than a few minutes.

3. Low credit means credit rejection

A low credit score can affect the outcome of your loan application, but it does not guarantee a rejection. While it is an important criterion for approval, lenders also take into account other factors such as: age, income, authenticity of documents, fixed obligation to income ratio, etc.

Credit policies and eligibility criteria may vary from lender to lender, but the main assessment for loan approval is your ability and intent to repay.

4. Personal loans cannot be used if you already have an existing loan

Several loan applicants believe that if they are already paying back an existing loan, they cannot get a personal loan. It does not, and the same criteria apply to sanctioning a second personal loan as the first.

You can apply regardless of whether you already have credit or not. Your lender will review your repayment eligibility application taking into account your income, cash flow, and existing liabilities.

5. Personal loans require a security

Personal loans are unsecured loans and do not require collateral and therefore require minimal documentation. This is also one of the decisive factors why processing a personal loan is quick and easy.

6. Only employees can apply for personal loans

It is a popular belief that only employees with a steady flow of income are eligible to apply for a personal loan. However, individuals and entrepreneurs can also take advantage of personal loans.

The credit decision is not determined by the profession, but by the individual’s ability to accept credit and the ability to service the loan on a regular basis.

7. Personal loans always have high interest rates

Because personal loans do not require collateral, they are believed to come with very high interest rates. In reality, the interest rate differs from lender to lender and often depends on your credit profile.

The interest rates are usually between 16% and 24% per year and are therefore significantly lower than available with credit cards. Additionally, you are not required to pledge any security or freeze any asset, which makes it a better deal if the exchange rate is a few hundred rupees.

8. Personal loans have no prepayment option

Another myth about personal loans is that the borrower cannot repay the loan amount before the loan term expires. Just because personal loans have shorter terms doesn’t mean that personal loans don’t have prepayment options.

While banks may charge a small prepayment fee, these days digital lenders typically only have a minimum term for which individuals must make the monthly installment payments (EMI). After the minimum term of three to six months, for example, borrowers can cancel their loan at no additional cost.

9. Taking out a personal loan will only increase your debt burden

This seems logical, because taking out a personal loan when you are already in debt only adds to your burden. However, you can refinance all of your debts including multiple loans, credit card debt through one personal loan, thereby consolidating all of your debts and paying only one monthly fixed rate installment that matches your cash flows.

10. It is difficult and complex to apply for a personal loan

Compared to a car loan or a home loan, getting a personal loan can be a much easier process. Applying for a personal loan these days is as easy as filling out an application online and waiting from a few minutes to a few hours for approval.

The process is so simple that you don’t need any help, but even if you do, you can contact a digital lender’s customer service team and get help right away.

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Best secured cards that get too unsecured

Citi is an advertising partner.

Do you need to fix an ailing credit score? Alternatively, do you need to keep a credit history so you can even qualify for a three-digit FICO credit score? If you apply for a secure credit card and make your monthly payments on time, you can achieve both of these goals. You can even qualify for a secured credit card that will automatically upgrade to a traditional card after you’ve made enough on-time payments.

Here’s a look at the best secured credit cards, which are evolving into traditional, unsecured cards over time, and how these cards can help you resolve your credit history and creditworthiness issues.

What is a secured credit card?

Secured credit cards work much like traditional cards: you use these cards to make purchases throughout the month and then withdraw at least some of those purchases on or before your card’s due date. If you settle your balance in full, you will not owe any interest. If you pay out less than your full balance, your credit card provider will charge you interest on the remaining balance.

With secured cards, however, you make an initial deposit at the bank that provides the card. This deposit usually becomes your credit limit. If you apply for a secured card, you can deposit $ 600 at your bank. Your credit limit for this card will then be $ 600 and you will not be able to raise any charges equal to that amount.

This limits the amount you can spend and makes it easier for those with damaged or limited credit histories to qualify for secured cards. By setting this limit, card providers take a lower risk; If you fail to pay your credit card bill, the bank can simply deduct the amount owed from your deposit.

For this reason, secured cards are a great choice for consumers who have low credit scores or who don’t have a credit history long enough to get good credit (or a notch at all). As long as you make your monthly payments on time with your secured credit card, you will gradually build a strong credit history and solid credit history. If your score is high enough, you can apply for traditional, unsecured credit cards.

Some secured credit cards automatically become traditional cards after you make enough timely monthly payments. The number of payments varies by card issuer, but many secured cards become unsecured versions if you make at least nine to 12 on-time payments in a row.

How do secured cards differ from unsecured credit cards?

You may be wondering, “What is an unsecured credit card?” The main difference between secured and unsecured credit cards is the security deposit required with secured cards. Traditional, unsecured credit cards do not require cardholders to make deposits with their issuers.

The credit limits for unsecured cards are not tied to a deposit, but are determined by the credit of the cardholder. Cardholders with a higher credit score qualify for higher credit limits. It’s not uncommon for consumers with the highest FICO credit scores – usually 740 or higher – to qualify for credit limits of $ 20,000 or more with their unsecured credit cards.

Unsecured credit cards also usually come with more generous rewards programs. Many traditional credit cards allow cardholders to accumulate award points, free miles, or cashback bonuses, while few secured cards offer award programs. This benefit, along with higher credit limits, is why most consumers prefer unsecured credit cards.

Best secured cards that get too unsecured

Which secured cards are automatically updated to unsecured? Here’s a look at some of Bankrate’s top picks.

Discover it® Secured Credit Card

The Discover it Secured Credit Card is one of the few secured cards that comes with a rewards program. Get 2 percent cashback at gas stations and restaurants on combined purchases of up to $ 1,000 per quarter. You will also receive unlimited 1 percent cashback on all other purchases.

The card has no annual fee and allows you to open an account with a deposit of just $ 200. After eight months, Discover will review your payment history and credit history to see if you can switch to an unsecured Discover credit card.

BankAmericard® secured credit card

While it’s a fairly simple card, the BankAmericard Secured Credit Card has some nice perks. There is no annual fee and all you need is a $ 300 deposit to open an account. In addition, this card allows you to deposit up to $ 4,900 – a high maximum deposit compared to other secured cards.

On their website, Bank of America says they will regularly check your account to see if you can upgrade to an unsecured Bank of America credit card.

Capital One Platinum Secured Credit Card

You don’t need a lot of cash to open an account with the Capital One Platinum Secured Toll Free Credit Card. In fact, Capital One requires a deposit of just $ 49. Keep in mind that your initial credit limit can also be low – just $ 200 more specifically. After six months, Capital One will begin reviewing your payment and account history to see if you qualify for a higher credit limit or an unsecured Capital One credit card.

Citi® Secured Mastercard®

Although you need a minimum deposit of $ 200 to qualify for the Citi Secured Mastercard, you are flexible. Depending on how much you deposit, you can qualify for a line of credit up to $ 2,500. Like other cards on this list, the Citi Secured Mastercard does not charge an annual fee. After 18 months of card ownership, Citi will review your account to see if you are eligible for a refund of your deposit and may upgrade to an unsecured Citi credit card.

How to update if your secured card doesn’t do it automatically

Some secured credit cards are never upgraded to an unsecured version. In these cases you will have to switch to a conventional credit card yourself.

First, you need to have a good enough credit rating to qualify for a traditional card. You typically need a FICO score of 680 or higher to qualify for traditional credit cards that also offer rewards programs. Fortunately, getting this score isn’t complicated.

The most important step is to pay your bills on time. For example, paying your mortgage, credit card bills, or student loan overdue for 30 days or more can drop your FICO credit score by 100 points or more. On the flip side, paying bills on time can help keep your score steadily growing.

Also, make sure that your credit card debt is low or nonexistent. If you have too much debt month to month, your credit score can go down. Always try to withdraw as much as you can on each due date, knowing that it is best to withdraw all of your balance on or before the due date. Not only does this help your credit score, but it also ensures that you don’t have to pay extra interest on your credit card debt.

Once your score is high enough, apply for a traditional credit card. Depending on your score and other factors such as B. Your monthly income, you can qualify for an unsecured card that comes with a higher credit limit and a rewards program.

You’ll need to decide whether to close your secured card or leave the account open, but be aware that closing your card could affect your creditworthiness. Closing an active credit card account will leave you with fewer funds – which in turn may increase your credit utilization.

This does not mean that you should always leave your secured credit card account open. If you feel that you might be tempted to pile up debts on the card and not pay it off in full, it may make more sense to close the account and remove the temptation.

This will increase your chances of qualifying for an unsecured credit card

The best way to qualify for an unsecured credit card is to practice good spending and payment habits. If you pay your bills on time each month – including paying your secured card – you will continually build a credit score or improve a poor one. You will also improve your credit score by paying off existing debts.

How long it takes to build a credit rating high enough to qualify for an unsecured card varies. If your score is low, it can take months to make payments on time to get your score up to the 680+ range likely to be required to qualify for an unsecured credit card.

The bottom line

Secured credit cards are a smart way to build your credit history so you can qualify for an unsecured credit card in the future – one that comes with a higher credit limit and valuable rewards. The key is to make your monthly payments on time and keep your debt low so that one day your secured card will be converted to an unsecured version.

All information about the BankAmericard® Secured Credit Card has been collected independently by Bankrate and has not been reviewed or approved by the issuer.

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Global Consumer Financing Markets (Secured Consumer Financing, Unsecured Consumer Financing), 2016-2020 & 2021-2026 –

DUBLIN – (BUSINESS WIRE)–The Global Consumer Financing Market, By Type (Secured Consumer Financing, Unsecured Consumer Financing), By Secured Consumer Financing Product Type, By Unsecured Consumer Financing Product Type, By Region, Competition, Forecast, And Opportunities, 2026 “ Report was added to to offer.

The global consumer finance market is forecast to grow by a CAGR of 5% to over $ 1,306.10 billion by 2026

Consumer finance refers to the decisions households make over time about saving, borrowing, and investing. The global consumer finance market is growing steadily due to increasing disposable income and high economic growth. New entrants are rapidly expanding into this market, including large peer-to-peer lenders and all-digital players.

The consumer finance market is driven by the fact that consumer lives and financial situations are changing rapidly. No wonder, the consumer finance industry is one of the most synchronized and well-developed sectors in the world, among other sectors. Due to the continuous population growth and economic development, the production of consumer finance has experienced continuous growth.

In addition, the ready availability of various loans such as home loans, auto loans, and education loans from various public and private banks or financial services providers, as well as the rapid processing of loan applications, are expected to fuel the global consumer finance market growth.

The global consumer finance market can be divided into type, secured consumer finance product type, unsecured consumer finance product type, regions, and company. The global consumer finance market is divided into two broad segments: secured consumer finance and unsecured consumer finance.

Among these, the secured consumer finance market is the dominant segment compared to the unsecured consumer finance market, which accounted for more than 65% of the global consumer finance market in 2020. Due to the driving factors such as lower interest rates, higher credit limits, longer repayment periods, lower financial risk for the lender, etc.

The global consumer secured finance market has been further divided into home loans, auto loans, mortgage loans, and others. In 2020, home loans made up the bulk of the market share in the global consumer finance market due to factors such as continuously increasing demand, real estate affordability, affordable interest rates, etc. However, a car loan is expected to increase over the forecast period.

Based on the type of unsecured consumer finance product, the global consumer finance market is divided into permanent consumer finance, personal loans, credit cards, home finance loans, education loans, and others. The global consumer finance industry is experiencing profitable growth as a result of lifestyle changes and increased spending on consumer durables.

Better availability of credit information, continued subsidies from manufacturers, and increasing penetration of consumer durables are some of the factors that have supported the growth of consumer durable finance in the global consumer finance market.

The aim of the study:

  • To analyze the historical growth of the market size of the global consumer finance market from 2016 to 2020.

  • Estimation and forecast of the market size of the global consumer finance market from 2021 to 2026, and the growth rate to 2026.

  • Classification and forecast of the global consumer finance market by type, by type of secured consumer finance product, by type of unsecured consumer finance product, by region, and by company.

  • To identify a dominant region or segment in the global consumer finance market.

  • Identification of drivers and challenges for the global consumer finance market.

  • Studying competitive developments such as expansions, new product launches, mergers and acquisitions, etc. in the global consumer finance market.

  • Identify and analyze the profile of leading players in the global consumer finance market.

  • Identify the key sustainable strategies being followed by market participants in the global Consumer Finance Market.

Competitive landscape

The companies develop advanced technologies and introduce new services to stay competitive in the market. Other competitive strategies include mergers and acquisitions and new service developments.

Some of the leading players in the global consumer finance market are

  • JPMorgan Chase & Co.

  • Citigroup, Inc.

  • Wells Fargo & Company

  • BNP Paribas

  • American Express company

  • HSBC Holdings plc

  • TD Bank, NA

  • Berkshire Hathaway Inc.

  • Bank of America Corporation

  • Industrial and Commercial Bank of China

Report scope:

Years considered for this report:

  • Historic years: 2016-2019

  • Base year: 2020

  • Estimated year: 2021

  • Forecast period: 2022-2026

Global Consumer Finance Market By Type:

  • Secured consumer finance

  • Unsecured consumer finance

  • Global Secured Consumer Financing Market Size by Product Type:

  • Home loan

  • Car loan

  • Mortgage loan

  • Other

Global Unsecured Consumer Financing Market Size, by Product Type:

  • Permanent financing for consumers

  • Private loan

  • Credit card

  • Home improvement loans

  • Education loan

  • Other

Global Consumer Finance Market By Region:

  • North America

  • United States of America

  • Canada

  • Mexico

  • Europe

  • Germany

  • France

  • United Kingdom

  • Italy

  • Spain

  • Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • South America

  • Brazil

  • Argentina

  • Colombia

  • Middle East and Africa

  • Saudi Arabia

  • United Arab Emirates

  • South Africa

  • Kuwait

For more information on this report, see

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Eatery Business

ICICI Bank Launches ‘Festive Bonanza’; announces home and car loan offers

The ICICI Bank announced on Friday the introduction of a festive bonanza, which offers private and business customers attractive advantages in various banking products and services. The offers are available from October 1, 2021 on various dates in the coming Christmas season.

The ICICI Bank offers in the loan suite:

Home Loans: The bank’s customers benefit from an attractive interest rate (repo rate linked) from 6.70% and a processing fee ₹1,100 for new home loans and balance transfer of home loans from other banks.

Car Loans: The ICICI Bank offers EMIs from ₹799 per ₹1 lakh. Customers can also take out loans for a term of up to 8 years. Customers receive attractive interest rates for the used car loan from 10.5% and can also use a top-up loan for their existing car loan

Two-wheeler loans: EMI as low as ₹29 per ₹1,000 for a term of 48 months. Processing fee of ₹Only 1,499

Instant loans for private individuals: The interest rate from 10.25% and processing fee of ₹1999

Corporate Loan – Insta OD: Use unsecured OD up to ₹50 Lakh and non-ICCICI bank customers can avail up to ₹15 lakh. Pay interest on the amount drawn with no foreclosure costs

ICICI Bank customers can take advantage of attractive discounts in all categories with debit / credit cards, internet banking and cardless EMI:

Offers on e-commerce platforms: 10% discount on online shopping at major e-commerce players such as Flipkart, Amazon, Myntra, Tata Cliq and Paytm Mall

Travel: Up to 25% off leading travel websites like MakeMyTrip, Yatra, EaseMyTrip and Paytm Flights among others

Mobile phones: Receive attractive discount and cashback offers on phones from Samsung, MI, OnePlus, Realme, Oppo and Vivo

Electronics & Devices: Up to 10% cashback for leading electronics brands such as LG, Bosch, Carrier, Dell, Eureka Forbes, Godrej Appliances, Haier, Panasonic, Sony, Siemens, Voltas, Whirlpool and many more. Customers can also take advantage of attractive discounts at Reliance Digital, Croma, Vijay Sales, Pai International, Kohinoor Electronics, Sargam Electronics, Hariom Electronics, Electronic Paradise, Arcee Electronics, Great Eastern Trading, Sales India, Big C, LOT Mobiles and B NEW Mobiles

Introducing Mr. Anup Bagchi, Executive Director of ICICI Bank, said: “To support this demand and general economic growth over the upcoming Christmas season, we are offering our customers a comprehensive range of offers, discounts and cashbacks – across several leading brands and e- Commerce platforms. The offers apply to the use of debit / credit cards from ICICI Bank, Internet banking and Cardless EMI “.

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BNPL vs. Credit Cards vs. Personal Loans: Which One Is Right For You?

Credit cards score points for universal acceptance over BNPL, as the latter are still limited to partner merchants, although service providers regularly add hundreds of partners.

Consumers, especially Millennials and Generation Z, are now looking for simplified microcredit solutions to better manage their recurring and occasional purchases that are easy to apply for and seamless to avail. All of these factors have led to the massive popularization of Buy Now Pay Later or BNPL services in India in recent years.

With over 30 focused startups, some e-commerce giants, and even leading banks and NBFCs joining the bandwagon now, BNPL services in India are making rapid strides in customer onboarding, trading partnerships and attracting investment.

According to Bankbazaar, BNPL services have been part of the global digital lending ecosystem for over 15 years. But the pandemic has been a stimulus for its massive popularity in the recent past coupled with the surge in e-commerce, the deepening of mobile internet penetration, and the increasing redundancy of cash transactions, particularly in countries like China, the US, Australia, and India.

What is BNPL?

A BNPL service allows customers to make eligible purchases that can be split into simple installments or paid back at a later date (within the repayment cycle) with zero to low interest fees. BNPL service providers offer short-term microcredit to customers for specific purchases, typically starting from Rs 2,000 and up to Rs 1 lakh in credit limits, with repayment cycles ranging from 14 days to 30 days (up to 90 days, in some cases) depending of the service provider’s terms and conditions.

However, late payments (and in some cases interest fees) could be charged for repayments beyond the due dates, while BNPL providers may report late payments to credit bureaus that could affect the creditworthiness of these users.

The BNPL service providers often use new-age mechanisms to assess the creditworthiness of customers and the entire process of customer onboarding and credit limit sanction is usually completed digitally within minutes with minimal documentation. Some players also offer pre-approved BNPL credit limits to select customers, according to the Bankbazaar study.

BNPLs can currently be enjoyed on a growing number of e-commerce, food ordering, ridesharing, travel booking, online grocery and service websites, and even on edu-tech portals among hundreds of other merchant platforms. Transactions can be carried out seamlessly during checkout in a safe and secure manner with a tap of a finger without the need to enter card details or OTPs.

Some BNPL service providers also offer their customers additional incentives in the form of additional discounts or cashback for the use of their facilities, timely repayments or for certain transactions. These consumer buying instant fund offering platforms generally make money through merchant commissions and late fees, not interest fees.

How does BNPL compare to personal loans and credit cards?


Credit cards score points for universal acceptance over BNPL, as the latter are still limited to partner merchants, although service providers regularly add hundreds of partners. Credit cards also offer perks and privileges that help users save more and achieve higher living standards through their transactions. Cards might offer higher spending limits, although they might be more difficult to come by in comparison due to the stricter drawing norms. BNPLs have no annual, processing, or renewal fees like cards sometimes do. The key differentiator, however, is the interest fees, which are typically not charged for BNPL services – users have to pay a non-cumulative late payment fee unlike credit cards, although some cards now also offer interest-free EMIs.


Personal loans are large volume, universal, unsecured funding facilities with credit limits much higher than BNPL services. In contrast to BNPL, however, there are higher fees. Another key differentiator is Revolving Loans – BNPLs offer this, while Personal Loans do not, as they are one-off loans. In addition, a customer’s age, income, credit history, occupation, etc. are checked by the lenders to determine the creditworthiness, although the application process and loan disbursement for pre-approved loans is fast. BNPLs, on the other hand, often use new age mechanisms to determine the creditworthiness of the borrower, which usually only takes a few minutes.


Credit cards could offer a wider range of benefits, a higher credit limit, and universal acceptance, but with cumulative interest charges for late payments. BNPL services are smaller but simpler credit facilities for consumer purchases at partner retailers that often result in EMIs that do not incur interest charges, but in most cases only incur a one-time fee. They can also be easier to register compared to credit cards that have not been pre-approved. These factors make them very well suited for users looking for short term micro credit facilities, especially those that are not credit card friendly.

Personal loans are intended for large funding needs, often during an emergency cash crunch, and are not recommended for smaller discretionary purchases due to the interest burden associated with them.

BNPLs, credit cards, and personal loans are all different types of credit, but they all require very disciplined use. Users must not become over-indebted and minimize their use to finance lifestyle and consumption. You need to read the fine print carefully, understand fees, and make sure your fees are always paid on time, says Bankbazaar.

Credit cards and personal loans charge interest on late payments. BNPLs impose a penalty. Reckless use and late payments with any of these facilities can jeopardize the user’s creditworthiness and reduce their chances of getting the best deals if they apply for other loans in the future.

As for BNPLs, they are pioneering in providing seamless microcredit solutions to millions of customers. As with any other loan product, however, knowledgeable usage and the highest level of financial discipline are key to maximizing the mortgage lending value.

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The difference between credit cards, personal loans, and a personal line of credit

Image for article titled The Difference Between Credit Cards, Personal Loans, and a Personal Line of Credit

photo: Africa studio (Shutterstock)

Most people know how credit cards work, and they may also be familiar with personal loans – but what about one? personal line of creditT? All of these options are similar, but they have subtle differences that can affect which option you can choose when you need to borrow money. This is where you can see when you would use a line of credit versus a credit card or personal loan.

What is a personal loan?

Personal lines of credit are perpetual loans that allow a borrower to withdraw funds as needed over a set period of time, up to limits of $ 1,000 to $ 100,000. Unlike a personal loan, this type of loan allows multiple access to the money instead of receiving the money in advance as a lump sum. Interest accrues as soon as funds are withdrawn, with borrowers making minimum monthly payments like a credit card.

Personal lines of credit are usually available unsecured (which means your property is not used as collateral) and have a variable annual percentage rate (APR) based on your credit score (again like credit cards). While the interest rates on both lines of credit and personal loans can be in the range of 6-35%, Lines of credit tend to have slightly higher interest rates. Another difference is that personal loans are typically Fixed priceswhile lines of credit tend to be variable rates. However, both options offer interest rates that are cheaper than what you would get with credit cards 16% APR on average.

Why should you use a personal line of credit?

For flexibility. Lines of credit are perpetual as personal loans and are typically used for ongoing needs where you don’t have fixed costs in mind. Personal loans, on the other hand, offer a fixed amount upfront, and to qualify you often need to specify exactly what the loan is for, be it a home renovation or car repairs.

The flexibility that a personal loan offers naturally makes them potential debt traps. This is why a solid repayment plan is recommended. Some common scenarios where a line of credit could be used include:

  • Home renovations where cost overruns could be an issue
  • Short term medical expenses
  • As a financial bridge for irregular or seasonal work

Credit cards offer cashback rewards and tend to have higher interest rates compared to personal loans or lines of credit, making them better for daily purchases that can be paid off quickly. If you’re looking to fund expensive, long-term projects that you want to pay off later, avoid credit cards and stick to personal loans or lines of credit.

Otherwise, avoid borrowing when you cannot afford the repayment. And if you are already struggling to pay off debts, consider all of your options before applying for another loan (This Lifehacker post has you covered).

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Study shows that loans that buy now and pay later expand the overall credit market

A relatively new type of small loan created by fintechs and offered by retailers is expanding the credit market, especially among young consumers, according to a study published Thursday.

TransUnion, the Chicago-based credit bureau, analyzed the credit history of millions of people applying for instant purchase loans – or point of sale (PoS) loans – and compared them to other loan seekers who did not PoS -Apply for loans.

Some have feared that these short-term loans could put consumers into debt more than they can handle. Or, from the point of view of some lenders, that consumers would borrow more for these store plans and reduce their balance on their credit cards or other consumer debt.

Liz Pagel, SVP for consumer credit at TransUnion, said the TransUnion survey refutes these concerns.

“They don’t seem to cannibalize any other type of credit,” she said. “It’s an extension of the entire credit market.”

A survey of PoS applicants found that the most common reason they looked for a buy-it-later loan was to purchase an item that was within their budget. While they tended to hold more credit cards and other types of consumer credit, their default rates were comparable to other borrowers in terms of age and risk group.

Pagel said credit unions may want to consider those consumers who are borrowing or applying for buy-it-later-credit.

“They are customers of credit unions; they are customers of banks, ”she said. “These consumers could be in the credit market.”

Buy-now-pay-later loans have been around as long as electronics stores have been selling refrigerators. And the category technically includes indirect car loans with dealers and financing for solar panels or other home improvement sold by contractors.

Pagel excluded larger loans such as financing solar panels sold by contractors from their study to focus on equipment-scale loans and the new type offered by retailers through fintechs for small routine purchases – usually under $ 500 -Dollar.

The fintechs typically charge retailers 2 to 7% of the price and sell their loans to secondary markets that may buy unsecured personal loans.

The small loans are often paid out every two weeks for eight to twelve weeks with the first payment when the purchase is made. Buyers do not pay interest on the small loans, while the interest costs are shared across larger, more traditional buy-it-later loans, which typically have a term of one to two years.

In some cases, the fintechs operate the loans more like the PoS systems used by car dealerships, with banks and credit unions on a list of potential car buyers lenders.

These loans started online, but now many retailers allow their customers to use them for in-store purchases.

Chart showing the reasons given by consumers for applying for a point of sale credit.

Pagel said many lenders’ concern has been that these loans from fintechs like Afterpay Limited, Affirm and Klarna are eating up purchases on their credit cards and unsecured personal loans. They wanted to know if this new lending was a threat to defend against or an opportunity to get started.

“It started as a fintech movement and now more traditional lenders are interested in playing this game,” said Pagel.

Big players from Amazon to Square Inc. have decided to join.

Square Inc., founded in San Francisco in 2009, announced on Aug. 1 that it plans to buy Afterpay Limited of Australia in a $ 29 billion deal that is expected to close in the first quarter of 2022.

Afterpay was founded in 2014 and claims to serve more than 16 million consumers and nearly 100,000 merchants worldwide, including large retailers of fashion, housewares, beauty and sporting goods.

The homepage of her website shows a young woman looking at her cell phone and bears the words: “Shop now. Pay over 6 weeks. Never pay interest. “

TransUnion decided that these new buy-now-pay-later fintechs are worth a closer look.

TransUnion analyzed the borrowing habits of 4.5 million consumers who made a point of sale inquiry and tracked them over six months. The tracked inquiries started on October 1, 2019 and ended on December 31, 2020. The last six months of action were in June 2021.

Each action taken by PoS applicants was compared to a general borrower population within the same risk segment and age group. The study group consisted of consumers with a hard or soft PoS request from October 1, 2019 to March 31, 2021. Their results were compared with other active borrowers at the same risk level. The results presented in the study relate to consumers who have a credit rating of 601 to 660 in the VantageScore range of 300 to 850. Other risk levels showed similar patterns, according to Pagel.

TransUnion found:

  • 54% of applicants for PoS funding reduced their bank card balances in the six months following their application, compared to 60% of individuals in the total credit population.
  • PoS applicants applied for a loan at a higher interest rate than others in their risk level.
  • PoS applicants had a significantly higher proportion of bank cards, customer cards, installment loans and car loans. They had slightly lower mortgages.
  • While 50% of active near-prime borrowers were 50 years or younger, 78% of PoS applicants were under 50.
  • Six months after a PoS application, 3.2% of applicants were 60 days or more behind with their bank credit cards, compared to 2.7% of the general credit population. However, the unsecured personal loan default rate among PoS applicants was 3.7%, compared with 4.8% for the general population.

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Consumers with point of sale credit typically use different ones

CHICAGO, Sep 23, 2021 (GLOBE NEWSWIRE) – A new study by TransUnion (NYSE: TRU) found that consumers who buy now, pay later (BNPL) and seek point-of-sale (POS) finance, too Actively using traditional financing credit – contrary to the assumption that these new credit offers are taking market share away from credit card issuers and other lenders.

The study, Understand the evolving point of sale industryWas unveiled at the virtual TransUnion Financial Services Summit 2021, Smarter Decisions: Emerging for Growth, attended by executives from the financial services sector from across the country.

BNPL and POS financing have emerged as a popular offering among younger consumers, with Generation Z and younger millennials (ages 18-30) making up the largest population of consumers who applied for POS financing during the study period (32 %). Bridge Millennials (ages 31 to 40) and the younger Generation X (ages 41 to 50) were also more likely to favor BNPL / POS, with 78% of all POS funding applicants between 18 and 50 years old.

BNPL and POS offers did not appear to have much of an impact on consumer use of other forms of credit. In fact, BNPL / POS applicants generally used other forms of credit more than the rest of the population.

“Consumers who can take advantage of point-of-sale finance are not doing so at the expense of traditional credit. We saw consumers applying for POS funding to build up credit on bank and retail cards and applying for new loans at a higher rate than the general loan population. These new forms of financing are growing the credit pie – and opening up more options for both consumers and lenders, ”said Liz Pagel, senior vice president of consumer lending at TransUnion. “Consumers are looking for new ways to finance purchases, and the convenience and budgeting of POS offers are driving them to fund more and larger purchases.”

The ease of use and predictable payment schedules allow consumers to spread smaller payments over time in order to be able to afford larger ticket items. A TransUnion survey of nearly 1,000 BNPL users found that the majority of consumers cited a timing distribution of payments (29%) and a simple application process (13%) as the main reasons for using POS funding. In contrast, lack of access to credit was not cited as a major concern for many consumers.

Consumers applying for POS funding are an attractive segment for acquisition growth

The study examined the credit profiles of over 6 million POS funding applicants (defined as consumers with a request for the TransUnion file from a POS lender) to better understand consumers interested in this type of product. The study created a profile of these consumers and examined their wallets and credit behavior.

The results showed that POS funding applicants have more credit products, such as credit cards, loyalty cards, and installment loans, in their wallets than the general credit-active population. Credit cards were the most popular among POS funding applicants (89%), followed by retail cards (75%) and car loans (73%).

POS funding applicants also were more likely to have larger numbers of cards in their wallets compared to the general lending population. However, card usage was very similar across risk levels, with most consumers having open cards on their cards. This suggests that consumers are actively looking for POS funding even if they could have put the purchase on a card.

Consumers applying for POS funding are also more likely to build or maintain credit card balances in the months following their request than the general credit active population – invalidating the assumption that BNPL / POS is driving down card balances.

Bank card Retail card
percentage POS financing
General credit
active population
POS financing
General credit
active population
46% 40% 36% 28%
54% 60% 64% 72%

However, consumers using BNPL / POS funding are still doing well and on par with the general lending population in terms of defaults. The study found that POS funding applicants, while performing slightly worse on credit cards, outperformed the non-POS segment on unsecured personal loans. The high failure rate of POS funding applicants makes these consumers an attractive segment for acquisition growth.

“As more consumers participate in POS funding, these consumers still experience high defaults on traditional products and are heavily involved in the credit market,” said Pagel. “This underscores the opportunity for both traditional and POS lenders to offer this attractive segment more diverse credit solutions.”

For more information on TransUnion’s study, please download the Insight Guide Understanding the Evolving Point-of-Sale Industry.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that enables trust in the modern economy. We do this by providing a comprehensive picture of each person so that they are reliably and securely represented in the market. This enables businesses and consumers to do business and achieve great things with confidence. We call this Information for Good.®

As a leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create business opportunity, great experiences and personal empowerment for hundreds of millions of people.

Contact Dave Blumberg
E-mail [email protected]
phone 312-972-6646

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Poll: Americans with unsecured debt are primarily to blame for credit cards

A US News & World Report poll in late August 2021 shows that among Americans carrying unsecured debt, more …

End of August 2021 opinion poll by US News & World Report shows that of Americans who carry unsecured debt, over 53% say it is mostly credit cards.

Credit card debts are taken into account unsecured debtwhich means it is not tied to an asset like a house or a car. Respondents were asked what types of debt make up the bulk of their unsecured debt, and in addition to credit cards, they name:

Personal Loans, at almost 21%.

– Medical debt, 12%.

Payday loan, more than 5%.

About 52% of respondents say they have between $ 10,000 and just under $ 40,000 in unsecured debt.

[Read: Best Balance Transfer Credit Cards.]

What interest do you pay?

Almost 8% of respondents say they don’t know what their highest interest rate is, which is worrying. Among those who know their prices, here are the results:

– Around 35% indicate an interest rate of 10% or less.

– More than 20% have a quota between 11% and 15%.

– More than 19% have a rate between 16% and 20%.

– Almost 16% have a rate between 21% and 25%.

– Almost 7% have a rate between 26% and 30%.

– Almost 4% have a rate over 30%.

Her interest rate depends on the type of debt you have and your credit rating. With debt comes interest expense. Some types of unsecured debt, such as credit cards and payday loans, charge compound interest.

This means that you are paying interest on a balance that includes the previous month’s interest. With compound interest, your debt can grow quickly. Once you get caught in this dangerous spiral, it is difficult to get out.

Why Americans Are Struggling to Get Out of Debt

Almost 42% of respondents say they have more unsecured debt than they did a year ago. When asked about the biggest challenges in paying off debt, around 20% said it was an unexpected expense.

Further findings:

– Around 19% have problems paying bills on time.

– More than 15% have problems budgeting payments.

– More than 15% cite inconsistent income as the culprit.

– About 13% say rising interest charges are an important factor.

– More than 7% have problems keeping track of multiple accounts.

How to Pay Off Your Debt

The first step is to find out what is preventing you from dealing with your debt. And if you find that you have room for improvement in several areas, that’s fine too. Be honest about your situation and then you can focus on one or more of these solutions:

– Automate your finances.

– Get a debt consolidation loan.

– Apply for a credit card for credit transfer.

– Build up an emergency fund.

– Get a loan counseling.

Automate your finances

Almost one in five respondents stated that they did not pay bills on time. If the problem is that you don’t have the money when the bill is due, you need to contact your lender and explain your situation. Depending on the lender it is possible to get into one Hardness program while you catch up on bills.

If the issue is timing, see if you can change the invoice due date. Postpone it to a week when you have cash flow to cover the expenses.

But what if it’s all about forgetfulness? The simple solution is to automate your payments for as many bills as possible. When you set up automatic payments with your bank or credit card, your lender will deduct your debt from your authorized bank account.

But make sure you have the money in your bank account to cover the amount. Once you’ve found a rhythm and paying your bills on time, you can start looking for solutions that will help you pay less interest on your debt.

[Read: Best Debt Consolidation Loans.]

Get a Debt Consolidation Loan

When asked how to pay off debts, around a quarter of respondents choose a debt consolidation loan as the most attractive option. With this type of loan you will consolidate your debts and thus reduce your number of creditors. And hopefully you get a lower interest rate and lower monthly payment.

You need to do some online comparison purchases. Compare prices and make sure you are getting the best terms that you can qualify for.

It is important to note that it is not a good idea to consolidate medical debt. It can add interest expense to an already unwieldy debt. Consolidating medical debt also removes the consumer protection that applies to medical debt.

However, for other types of unsecured debt, a debt consolidation loan is a great option for those who don’t have one excellent credit scores. However, if you have a large bankroll, consider using a prepaid credit card.

Apply for a prepaid credit card

If you have an excellent credit rating, you should qualify for a credit transfer credit card. These cards are often offered with an introductory annual rate of 0% for a period of e.g. B. delivered 12 to 18 months.

This gives you the opportunity to withdraw (or at least reduce) the balance during the interest-free period. By going this route, you will find out what your monthly payment needs to be in order for you to have a zero balance before your regular APR comes on.

[Read: Best Low-Interest Credit Cards.]

Build an emergency fund

If their debts were paid off, nearly 23% of respondents say they would use the extra money to top up their debt Emergency fundwhich is an excellent choice. An emergency fund will help you weather a sudden financial crisis.

Even if you are in debt, try to put some money in your emergency fund every now and then. A little helps too.

Get credit counseling

If you feel that your debt is insurmountable, get help. No matter how bad your situation is, there is a solution. It may take a long time to fix, but starting today is the right step.

You can contact National Foundation for Credit Advice Find a reputable credit counseling agency.

More from US news

What is a late credit card account?

Can I get a personal loan with bad credit?

What is a maxed-out credit card?

Poll: Americans with unsecured debt are primarily to blame for credit cards originally appeared on

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Secured vs. Unsecured Lines of Credit

Secured vs. Unsecured Credit Lines: An Overview

A Credit Line (LOC) is a revolving loan which can be used for any purpose. The borrower can access the credit line at any time, repay it and borrow again up to a maximum limit set by the lender.

Lines of credit can be secured or unsecured, and there are significant differences between the two, such as: B. the interest rate paid by the borrower.

The central theses

  • A secured line of credit is guaranteed by collateral such as a home.
  • An unsecured line of credit is not guaranteed by any asset; One example is a credit card.
  • Unsecured loans always come with higher interest rates as they are riskier for lenders.

What is a secured line of credit?

When a loan is secured, the lender has one Lien against an asset owned by the borrower. This asset becomes collateral and can be used by the lender in the Failure. A common example is a Home mortgage or a car loan. The bank undertakes to lend the money while receiving collateral in the form of the house or the car.

Likewise, a company or individual can obtain a secured line of credit using assets as collateral. If the borrower defaults on payment, the bank may seize the collateral and sell it to make up for the loss. Since the bank is sure of getting their money back, a secured line of credit usually comes with a higher credit line and a significantly lower credit line interest rate as an unsecured line of credit.

A common version of a secured LOC is the Home Equity Line of Credit (HELOC). At a HELOC, money is borrowed against them equity capital in the house.

Both secured and unsecured lines of credit can have a huge impact on your business credit-worthiness. In general, if you use more than 30% of the credit limit, your credit score will go down.

What is an Unsecured Line of Credit?

A lender takes a higher risk in providing an unsecured line of credit. No assets of the borrower will be attached in the event of late payment. Unsurprisingly, unsecured lines of credit are harder to come by for both businesses and individuals.

For example, a company might want to open a line of credit to fund its expansion. The funds are to be repaid from future business income. Such loans are only eligible if the company is well established and has an excellent reputation. Even then, lenders compensate for the increased risk by capping the loan amount and charging higher interest rates.

Credit cards are essentially unsecured lines of credit. That’s one reason the interest rates are so high on it. If the cardholder defaults on payment, the credit card issuer cannot demand any compensation.

Secured credit line vs. unsecured credit line
Secured LOC Unsecured LOC
Guaranteed by collateral Not guaranteed by an asset
Lower interest rates than unsecured loans Riskier for lenders, so the interest rates are higher
If a borrower defaults, the lender can seize collateral Harder to get approved by lenders

Should I choose a secured or unsecured line of credit?

Whether or not you opt for a secured or unsecured line of credit depends in large part on why you are using it. For everyday purchases, an unsecured line of credit like a credit card can make the most sense.

An unsecured line of credit is usually not the best option when you need to borrow a lot of money. As mentioned earlier, unsecured loans are riskier for lenders and usually come with higher interest rates. Secured loans, on the other hand, are easier and cheaper to get.

The bottom line

Both secured and unsecured credit lines have advantages over other types of credit. They can be used flexibly and multiple times (or not used), with low minimum payments and without full payment claims, as long as the payments are current.

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UK lenders expect record increases in access to unsecured credit

British five pound banknotes can be seen in this illustration dated November 14, 2017. REUTERS / Benoit Tessier / illustration / file photo

LONDON, July 15 (Reuters) – UK lenders expect a record spike in the availability of unsecured credit for households over the next three months as the country’s economy recovers from its lockdown slump, a Bank of England survey found Thursday .

Lenders also expect the availability of new mortgages to increase – although demand would likely fall – while the supply of credit to businesses remained unchanged.

The numbers come from a quarterly survey of UK banks and building societies, which was carried out on Jan.

UK consumer borrowing collapsed during the lockdowns as people had fewer options to spend and vacation benefits for millions of workers who would otherwise have been unemployed.

Previously released BoE data for May showed the first net increase in consumer borrowing since August, although separate June figures released Thursday by the Bureau of National Statistics showed the first monthly decline in credit and debit card spending since January. Continue reading

The expected increase in the availability of unsecured credit to households over the next three months was the largest since the survey began in 2007.

Demand for credit card loans and other types of unsecured debt with longer interest-free periods on credit cards to attract borrowers has increased.

Unsecured loan default rates have decreased over the past three months but are likely to rise again.

Reporting by David Milliken; Adaptation by Kate Holton and William Schomberg

Our standards: The Thomson Reuters Trust Principles.

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Rwanda: I&M Bank raises limit for unsecured loans

Access to credit in Rwanda has long been characterized by strict processes and requirements that have been found frustrating for many.

As a local financial institution, I&M Bank is trying to change the trend.

The bank has revamped its Éclair loan product, where it will borrow up to 17.5 times salary with no collateral.

The bank says the move to increase unsecured loans from 12 times salary to 17.5 times is responsive to market demand and consumer needs.

Faustin Byishimo, Executive Director of I&M Bank Rwanda, said that the move will also be supported by her many years of experience and the adjustment of the regulatory framework.

The efficiency of the credit bureau, he said, has seen the availability of more reliable data that gives them confidence in their move.

“There have also been changes in the local framework that have increased our confidence. For example, the credit bureau cannot simply divert one’s salaries without due process. The data is cleaner and the reliability is much higher,” he said.

To meet market demands, Byishimo said they have noticed a surge in credit demand, especially as the middle class expands.

As the middle class expands, there is a demand for credit as this group wants to acquire assets and make investments for personal growth.

“Salaries don’t always go up, but the demand for money has grown, people might want to invest or make acquisitions and buy more things. There is a demand,” he said.

In addition to raising the credit limit, the lender has also reviewed features and requirements to facilitate access to credit.

The bank reduced the requirements from 10 documents to 3 documents and cut the approval time by 50 percent to 48 hours. This is aimed at further improving the customer experience with access to credit.

In order to guarantee the payment processing and to relieve the customers, one may not use more than 50 percent of the monthly salary to ensure that they still have an available income during the loan repayment.

In addition to employees, the product is also aimed at professionals such as lawyers, doctors and architects who are not employed but have a regular income.

In the case of mortgages, the lender has increased the duration from 20 to 25 years in order to be among those with the longest repayment period.

The extension of the repayment deadline, Byishimo said, is intended to allow more people to take out mortgages as the repayment deadline often got in the way of large numbers of potential homeowners. The development also enables more people to own their “dream home”.

By extending the term to 25 years for the repayment of the mortgage, Byishimo said it was a vote of confidence in the economy and industries involved in the process such as insurance and construction.

The bank’s confidence in extending the repayment period from 20 to 25 years is based, among other things, on the efficiency of framework conditions such as land register proceedings, foreclosure proceedings, etc.

In addition, the bank has extensive experience with mortgages, which enables them to access market demand and trends.

“We are way ahead of the market with a 20-year mortgage that has been in place since 2007, we took a risk then, we have extended it in 25 years now. We were among the first to have long-term mortgages and others are follow suit, ”he said.

The lender also has decentralized access to most of their services such as access to credit cards, overdrafts, and others.

The lender is also in the process of automating and digitizing its systems and training its employees.

The bank posted a profit of Rs 7.5 billion after tax in 2018 compared to Rs 6.5 billion in 2017.

I&M Bank, which is listed locally on the Rwanda Stock Exchange, paid its shareholders Rwf 2.99 billion as a dividend in May.

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What is an Unsecured Loan?

Unsecured loans are loans that are not covered by an asset such as a car or a house. they include Student Loans, personal loans and revolving loans like Credit cards. Find out more about unsecured loans and how they work.

What is an Unsecured Loan?

Unsecured loans are loans that do not require collateral. They are also known as signature loans because one signature is enough if you meet the lender’s credit requirements. Because lenders run a higher risk when loans are not backed by collateral, they can charge higher interest rates and require good or excellent credit.

If a borrower stops making payments and defaults on the unsecured loan, the lender cannot take collateral to collect the outstanding debt.

For example, let’s say a borrower becomes unemployed and unable to repay their unsecured personal loan and credit card debt. If the credit accounts default, the borrower’s creditworthiness will be affected. In this situation, lenders may choose to bear the financial loss. They can also pursue the repayment of the debt through a court ruling, but they cannot seize a debtor’s assets without going through the judicial process.

Benefits of Unsecured Loans

  • No collateral required.
  • Quick access to funds.
  • No risk of losing assets.
  • Less borrowing restrictions.
  • Competitive rates for those with strong credit.

Disadvantages of Unsecured Loans

  • Risk of loss of assets.
  • There may be lower credit limits for those with low credit scores.
  • Might have higher interest rates for those with low credit ratings.
  • Harder to get approved.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy and doesn’t affect your credit score.

Unsecured Loans vs. Secured Loans

Secured loans differ from unsecured loans in that secured loans always require collateral. If a borrower is unwilling to provide an asset as insurance, the lender will not approve a secured loan.

This type of loan is available for a variety of financing options, including mortgages, auto loans, home equity lines, and some types of personal loans. Borrowers are unlikely to come across unsecured mortgages or auto loans as the home or vehicle is always used as collateral for these types of loans.

Approval for a secured loan can be easier than an unsecured loan because secured loans pose less financial risk to lenders. Since they require collateral, they usually have more competitive interest rates than unsecured loans.

How do unsecured loans work?

Unsecured loans can be either unsecured Installment Loanssuch as unsecured personal loans or unsecured revolving lines of credit, such as unsecured credit cards. When you apply, the lender will check your creditworthiness and consider factors such as income, savings, and debt to determine if you are eligible.

Although unsecured loans and lines of credit are only guaranteed by your promise to pay, the lender still has recourse if you fail to make payments. The lender can transfer your account to a debt collection company, take you to court for seizure of your wages, and report your late payment to the credit bureaus. These actions will cause your credit score to drop

Who should take out an unsecured loan?

Whether an unsecured loan is the right option depends on the borrower’s financial situation and the purpose of the funds. Borrowers who need money but are uncomfortable about pledging collateral to secure a loan may consider unsecured loan if:

  • Schedule a big purchase. Taking on debt can be a drain on your finances, but when you need cash for a large upcoming issue, an unsecured loan can help.
  • You have good credit. A high credit rating enables cheaper unsecured loan terms and interest rates.
  • You have a reliable income. Although collateral is not required for an unsecured loan, you will need a steady income to repay the debt and avoid loan default. Unpaid secured loans can negatively affect your credit score.
  • Consolidate Debt. Unsecured loans are useful as well Debt consolidation Tools that can make debt repayment easier. This strategy can also help borrowers save money if they qualify for lower interest rates.

Requirements for an Unsecured Loan

To limit their risk, lenders want to be reasonably sure that you can pay back the loan. Lenders measure this risk by reviewing a few factors. As such, when you apply for an unsecured loan, they may ask for the following information (and adjust the loan terms based on your answers):

Your credit

Lender Check your credit reports to see how you’ve managed loans and credit cards in the past. In general, they are looking for a history of responsible credit use (usually one or more years), timely payments, low credit card balances and a Mix of account types. They will check yours too Credit scorescalculated based on the information in your credit reports. Consumers with a credit score of around 700 or higher usually qualify for the best interest rates.

Your income

Knowing that you have the funds to meet your financial obligations, including loan payments, reduces the lender’s risk. The lender may request proof of stable, adequate income, such as a recent pay slip.

Your debt-to-income ratio

To calculate yours Debt-Income Ratio (DTI), add up all of your monthly debt payments and divide this total by your gross monthly income. For example, if you have $ 500 worth of monthly debt payments and gross income of $ 2,000, your DTI is $ 500 / $ 2,000 = 0.25, or 25 percent.

Lenders use this number to measure your ability to repay a loan. The lower the ratio, the better. Each lender has different requirements for your DTI, but the maximum is usually no more than 43 percent.

financial assets

Although collateral is not required for unsecured loans, the lender may want to know that you have savings. They know that you are less likely to miss out on loan payments when you are ready to cover financial emergencies.

How To Apply For An Unsecured Loan

If an unsecured loan is right for you, there are several easy steps to apply for:

  1. Determine how much you will need. Only borrow what you need, even if the lender approves you for a larger amount.
  2. Research Top Lenders. Unsecured loans can be found at national and local banks, credit unions, and online lenders.
  3. Compare unsecured loan offers. Some lenders offer prequalification for you See what loans you might qualify for before you apply. Take a look at the interest rates, fees, loan terms and amounts, and the specifics of each lender.
  4. Submit an application. After you’ve reviewed the preliminary quotes and selected your preferred lender, complete a formal loan application. This can be done online or in person through most lenders.
  5. Provide documentation. If the lender requires additional documentation, submit them in a timely manner. For example, this can happen if you don’t have a strong credit rating.
  6. Accept credit funds. If you are approved, the lender will tell you how to get the loan funds. If it is an installment loan, you will receive the money as a lump sum. In the case of revolving loans, such as For example, a credit card, the lender will issue you a credit card to withdraw funds from your account when necessary.

If you take out an unsecured loan, you should pay it back on time to avoid any deterioration in your creditworthiness.

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Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy and doesn’t affect your credit score.
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Eatery Business

Should You Use Vacation Loans For Your Travel? – Forbes advisor

Editor’s Note: Forbes Advisor may earn a commission on sales made through affiliate links on this page, but this does not affect the opinions or ratings of our editors.

When the Covid-19 vaccines are introduced and people are more comfortable traveling, you may be dreaming of a family vacation or a weekend getaway with friends. Vacation loans can help cover everything from transportation costs to room and board. But the truth about these loans is more sobering. In addition to potentially high interest rates and fees, vacation loans can require monthly payments long after your trip.

We’ll guide you through the reality of vacation loans so you can make an informed decision as you plan and pay for your next trip.

connected: Should you take out a vacation loan for travel expenses to Covid?

What is a vacation loan?

A vacation loan is an is private loan You can pay for the trip. Even if a lender doesn’t advertise a personal loan as a vacation loan, you can use the proceeds of most personal loans to pay for transportation, hotels, rental cars, and other travel-related expenses. Vacation loans tend to be unsecured, so you don’t have to pledge anything security. However, this means that the interest rates may be higher and the terms less favorable than alternatives such as 0% credit cards.

How do vacation loans work?

Most vacation loans work like other personal loans, even if the lender doesn’t offer vacation-specific loans. The loan amounts can range from $ 1,000 to $ 100,000 depending on the lender. The terms typically range between two and seven years, but lenders can offer shorter or longer repayment periods.

Likewise, interest rates vary by lender, but are largely dependent on your creditworthiness, income, and other factors. Prices generally range from 5% to 36%, with the lowest rates reserved for the most creditworthy applicants. This means that vacation loan interest rates can be lower than credit cards but higher than secured loans.

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For whom are vacation loans suitable?

Vacation loans can be used to finance travel and pay for travel over time. However, this means that you will have to pay interest over the life of the loan, which will add to the total cost of the trip. Taking out a vacation loan can also have a negative impact on your creditworthiness and make future borrowing difficult if you default on payments. For these reasons, it is usually not worth going into debt for a vacation trip.

However, a loan may be your only option if you are faced with a business or emergency trip and need cash to cover transportation, accommodation, or other expenses. Some people also find a vacation loan useful when they have the opportunity to go on the trip of a lifetime. You should carefully consider whether it is worth going into debt – and whether you have the discipline and leeway in your budget to make payments on time.

How to get a vacation loan

If you think vacation funding is the best option, follow these steps to research and apply for a personal loan:

  1. Check your credit history. Start by checking your credit history through an online loan service or yours Credit card provider. Borrowers with an excellent FICO score of at least 720 are more likely to have access to the most competitive interest rates, which can lower the overall cost of borrowing for a trip. If you have a score below 690 you should take steps to Improve your score before applying for a vacation loan.
  2. Research lender. Take the time to compare the interest rates, loan terms, and qualifications of multiple lenders to find a loan that suits your needs. First, contact your current bank or credit union and do some research online for lenders.
  3. Classify beforehand. Some lenders give prospective borrowers the opportunity to pre-qualify for a personal loan with only a gentle credit check. That way, you can see what rate you are likely to qualify for without affecting your creditworthiness. Use this feature when shopping for a lender to assess whether a vacation is worth the likely interest payments.
  4. Make a formal application. Once you’ve selected a lender – and ideally pre-qualified – submit an application. This process varies depending on the lender, but usually involves submitting personal information as well as documents such as proof of income. Depending on the lender, you may also need to go to a branch or discuss your application over the phone.
  5. Receive money and make payments. After the vacation loan money is paid out, it is time to make regular, timely payments. Make sure you understand your due date and have access to the online payment gateway or other payment methods. Registering with automatic payment is a surefire way to avoid missing a payment.

Benefits of Using a Vacation Loan

  • Fixed monthly payments: Personal loans allow borrowers to access cash when needed and then make fixed payments over time. This means that instead of having to pay your vacation expenses in advance, you have to repay the loan with interest.
  • Potential for lower interest rates: Credit card holders pay an average of around 18% for new offers and 15% for existing accounts. Depending on your creditworthiness and other factors, a vacation loan can allow you to borrow money at a lower interest rate.
  • Can help fund emergency travel: Ideally, you will have the opportunity to plan your travel expenses in advance. But if you’re in need and need to book travel accommodation at the last minute, a loan can make it happen.
  • Offers flexibility: With a vacation loan you benefit from the cheapest travel prices – even if you don’t have any cash on hand. However, for this to make business sense, the discounts you get at lower rates must be greater than you would pay on your loan in interest and fees. For example, let’s say you could save $ 500 by lowering travel prices. Your interest and fees must be less than $ 500.

Disadvantages of using a vacation loan

  • Interest increases travel expenses: Borrowers must repay the loan amount plus interest. That makes a vacation more expensive than paying in cash. For example, a $ 10,000 vacation loan with a 12% interest rate and a 36 month term would cost the borrower $ 1,957.15 in interest over the life of the loan, according to Forbes advisor Ad Personal loan calculator shows.
  • Fees can increase the cost of borrowing: In addition to interest, many lenders charge personal loan fees. These fees, which add to the total cost of borrowing, can include: Development fees and even Prepayment penalties.
  • Monthly payments add to the stress: Holidays should reduce stress and offer a break from hectic everyday life. Unfortunately, financing a vacation with a loan can add stress due to the realities of loan repayment.
  • Can have a negative impact on your creditworthiness: Applying for a personal loan can have a negative impact on your credit score if the tough request shows up on your credit report. Once the money is paid off, vacation funding can also lower your credit score if it increases your loan utilization rate or if you don’t pay on time.

Alternatives to the vacation loan

Vacation loans can come with high interest rates and fees, and can affect a person’s ability to borrow across the board. Fortunately, there are a number of alternatives that can help finance travel while avoiding the financial realities of taking out a personal loan:

  • Create travel budget: When planning your vacation, first create a travel budget that is aligned with your personal finances. Ideally, you can plan a trip that can be funded with cash reserves or other sources such as credit card balance.
  • Save to pay for your vacation in cash: The best way to pay for a vacation is with cash (outside of your) Emergency fund, Naturally). You can accomplish this in a number of ways, but reducing your expenses is the most effective way to make savings. There are also a number of online platforms that make it easy to Automate savings.
  • Benefit from an interest-free finance credit card: A 0% APR credit card allows borrowers access to a line of credit with an introductory interest period of 0% – usually between six months and two years. Keep in mind, however, that any outstanding balance will accrue at the end of the introductory phase, so you should pay off the card as soon as possible.
  • Use any outstanding award credits: Travel rewards credit cards and other reward programs can reduce the overall cost of a vacation. Some travelers can even cover all of their transportation and accommodations with credit card reward points. When considering a vacation loan, take an inventory of any outstanding premium balances to see if they are covering travel expenses.
  • Shop around for the best discounts. The cost of flights, hotel stays, amusement park tickets, and other vacation expenses vary throughout the year. Resorts and airlines also offer special rates that can help you save on travel. If the timing of your vacation is flexible, be sure to wait for the best prices for you to do so travel more opportunistically.
  • Choose to stay. When you need a break but don’t have room in your budget for a traditional vacation, opt for a home stay. Take the opportunity to explore parks, museums, restaurants, and other attractions near your home – or explore cities just a short drive away.

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Eatery Business

Best Personal Loans For Veterans and Military Members July 2021 – Forbes Advisor

Launched in 2017, Upgrade offers accessible online and mobile credit and banking services in all states except Iowa, Vermont, and West Virginia. Since then, the platform has provided more than $ 3 billion in loans to more than 10 million applicants and continues to expand its online and mobile services. Although the maximum APR are on the high end compared to other online lenders, Upgrade does make loans available for those with poor credit ratings.

Loan amounts that start at just $ 1,000 are flexible, but capped at $ 35,000 – lower than other lenders who focus on lower risk borrowers. Three and five year loan periods are available. Upgrade will charge a commitment fee of between 2.9% and 8% of the loan, and borrowers will pay a $ 10 fee if their payment is delayed or missed by more than 15 days; there are no discounts for autopay. However, upgrade borrowers are not subject to prepayment penalties, so if you can prepay it early, you can reduce the total cost of the loan.

In addition to offering accessible personal loans, Upgrade is optimizing the lending process with a mobile app that allows borrowers to view their account balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy for you to keep track of your creditworthiness over the life of your loan.

Eligibility to participate: Prospective borrowers should have a minimum score of 580 to qualify for an upgrade personal loan (the average borrower score is 697), making it an accessible option for those with fair credit. In addition, the lender does not require applicants to meet a minimum income, although borrowers make an average of $ 95,000 per year. Applicants should have a maximum pre-loan debt to income ratio of 45%, excluding their mortgage.

The lender also takes into account each applicant’s free cash flow, which shows their likely ability to make consistent loan payments on time. Ideally, applicants should have a minimum monthly cash flow of $ 800.

Upgrade increases the accessibility of the loan by also allowing co-applicants.

Credit used: As with most other personal loans, Upgrade Loans must be used to pay off credit cards, consolidate other debts, do home improvement, or pay for other large purchases. However, Upgrade stands out from some lenders in that it allows borrowers to use personal loan funds to cover business expenses. Additionally, Upgrade pays out third-party lenders directly, making debt consolidation more convenient than some competing lenders.

Apart from the legally prescribed usage bans for upgrade loans, there are no special bans.

Change of page: Once an upgrade loan is approved, it typically takes up to four business days for a borrower to receive the funds. However, if Upgrade is paying off a borrower’s loan directly to an outside lender, it can take up to two weeks for the funds to clear.

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Shaggy’s Restaurant Owners Announce New Home Buyers Program That Includes Cash Help for Down Payments

Chris Romano, market chairman of BancorpSouth, brought in a contingent of representatives specializing in second chance checks, secured credit cards, savings, car loans and home loans. They explained the different programs available to help Shaggy’s team achieve their financial and life goals.

When the question was asked, “Do you want to raise your hand if you want to buy a house but cannot currently qualify”, almost 30 people raised their hands!

“We want everyone to understand that if you want to buy a new house or a new car and have the commitment, Rimmer and I Will get there,“Ladner said, addressing his staff.” We recognize that for most of you the biggest hurdle is the upfront payment. But we want you to know that we are ready to provide 100% of your deposit in cash …whatever it takes to make this happen. To have hope!”

Covington added, “Every situation will be different, some of you will need credit counseling… and we will provide it to you; some of you will have to pay fees, and we will help you pay them; and we will provide that too. “

Ladner and Covington are committed to supporting their employees throughout the underwriting process, including a commitment to their own personal credibility, to ensure that all Shaggy employees have a chance. In many cases, a “second chance” that they cannot get by simply walking into a local bank branch. “We stand behind our employees,” says Covington. “We intend to provide guarantees to help make them more credible in the eyes of bankers.”

Speaking to the group, Romano said, “Shaggy’s is a very strong and solid company. We have a lot of trust and respect for Ron and Rimmer and the operations of Shaggy’s and we’ve been banking them for ten years. We also trust each of you because you are part of what makes Shaggy’s so successful. “

In 2020, Ladner and Covington made a bold move to raise the internal minimum wage to $ 15 per hour and increase the base tip rate to an average of $ 7-8 per hour, plus they pay for full health / dental / vision benefits for all full-time employees. The average non-managerial employee at Shaggy’s earns between $ 35,000$ 55,000 per year.

“We want to give our employees more than a job,” Ladner says. “We want to give them ‘a life’, hope, a future not only for themselves, but for their entire family.”

Covington adds, “We are creating real careers for people and making long term dreams come true! “

For more information on Shaggy’s, visit

Media contact:
Collin caranna
[email protected]

SOURCE Shaggy’s

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