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Money Coach

January 2008 - Posts

  • Online Lending

    Online lending has revolutionized the entire lending industry. In 2006, roughly 3.5 million people took out online loans, according to the Online Lenders Alliance, which is pretty astounding considering there was no such thing 10 years ago. But, when you consider all of the advantages of online loans, it’s really no big surprise.

    If you need a loan, but don’t know where to start, or if you never got past “Go” with the bank or credit union where you have your checking account, it’s time to look at an online loan and all they have to offer.

    So much of life is conducted on the internet
    Correspondence, travel plans, jobs, job searching, researching, phone numbers, zip codes, bill paying, real estate shopping, Christmas shopping, grocery shopping, pet shopping, date shopping and mate shopping. If you worked in a bank everyday, applying for a loan while you were there would be a no-brainer. If you’re on the internet everyday, it makes sense to apply for a loan on the internet … and you can do it in your pajamas.

    Personal relationships with lenders are over
    Even if you have accounts in local banks or credit unions, do you ever go inside? Do you ever go beyond the drive thru lane or the ATM? Do you know your lender’s name? Have you ever met him or her face to face?

    Bankers’ hours
    The expression was minted for a reason. In the bad old days, banks were open from 9 to 4. Credit unions were rare, and there was a thing called a savings and loan. Things haven’t really changed that much – just try to take out a loan without taking off work.

    Better rates
    Gartner, an independent research corporation, estimates that online loans cost the lending institution 20 to 30 percent less than traditional loans. That means online lenders can give you a better rate. And with a margin like that, online lenders can be far more lenient and generous with their applicants.

    Six thousand lenders at your fingertips
    If you tried very hard, maybe you could apply for loans with 10 lenders in your hometown in a one month period. There are currently 6,000 lenders online, with a much wider array of products, including car loans, mortgages, student loans, personal loans, home equity loans, home equity lines of credit, payday loans, small business loans, credit cards, secured and unsecured loans. Comparing their offers is a lot easier online. Or, for the ultimate in ease, go to a lender like AmOne and let them find the right lender for you.

    Faster turnaround
    You don’t need to spend a week biting your nails while you wait for a verdict from a bank. In many cases the acceptability of an online loan application is determined by automatic decisioning (basically, a series of if/then statements). So you can get a response in as little as 15 minutes.

    Can you think of any comparable advantages of going to a traditional lender?

    Posted Jan 24 2008, 11:11 AM by admin with no comments
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  • Is A Personal Loan Right For You?

     Life is good. You finally earn enough money to live where you want to live, drive what you want to drive and, generally, live the lifestyle you want. Your job is good. Your credit’s good.

    But what about life’s little extras? The vacation, the new kitchen, the boat … the things you’ve always promised yourself, but don’t really need. Money isn’t really a problem for you anymore, but it would sure be nice to have those extras now.

    For those things, you can take out a personal loan. The beauty of personal loans is you can use them for anything you want. They can pay for some of life’s little extras, or they can cover the other things that could blindside you, say, a leaky roof or a family emergency. The third largest purchase most people make in a lifetime, after a home and car, is a funeral, the average cost of which is $6,500 not including burial. Even if you need business money, a personal loan will cover it.

    Just like anything else you need to research, the first place you should go when looking for a personal loan is to the internet. Not only are there thousands of websites with basic financial information, there are also thousands of lenders who provide online personal loans.

    But with so many to choose from, where do you start? One of the best steps you can take is to let someone else do some of the research for you. Loan consultants have relationships with several different lenders, and can shop your profile around to find the best deal for you. Look closely at these websites, though; some loan consultants specialize in bad credit borrowers, so of course their fees and rates will be higher. With your good credit, you can afford to be choosy about where you get your personal loan.

    A big advantage of getting a personal loan online is the fast turnaround. Companies conducting business online take full advantage of the technologies that can put the money in your hands quickly. They understand that once you’ve applied for your personal loan, you want or need the money quickly. For the same reasons, they’re usually equipped to give you good customer service, available 24/7, unlike the brick and mortar banks that keep traditional bankers’ hours.

    Personal loans can smooth over life’s little bumps, get your home nice and shiny, give you that sun kissed bronze look in the middle of winter, or help you get a new business up and running. Online personal loans can do all of this for you, and do it quickly.

    Posted Jan 24 2008, 10:56 AM by admin with no comments
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