Warning Signs of Personal Loan Scams

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Interest in personal loans is rising this year, industry experts say. 

Unfortunately, potential scams are rising too.

Amid record-breaking unemployment rates and a staggering economy, consumers are seeking personal loans for two primary purposes: to consolidate credit card debt or simply to get by, says Brian Walsh, CFP and senior manager of financial planning at SoFi, a national personal finance and lending company. 

“This is a way to help get them through until they get back to normal,” says Walsh.

Scammers have taken notice. In the first four months of 2020, the Federal Trade Commission (FTC) reported more than 18,000 accounts and more than $13.4 million

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What to Do if You Can’t Pay Your Personal Loan

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A woman leaning over a man's shoulder as he sits in front of a laptop with his head resting in his hand and holds up a piece of paper.

Image source: Getty Images

If you find yourself in financial straits and cannot pay your personal loan, you need a plan of action. Here are the steps you should take to address the problem.

Call your lender

Before you miss a payment, call your lender. It may be the last thing you want to do, but it’s essential. Only your lender can tell you about any available options. For example, they may be willing to defer payments for a few months. They may accept a partial payment, forgive the fees, or offer another program to help you get caught up. If your lender does suggest a solution, stick with any deal you make.

Although the call may be uncomfortable, it can salvage your credit score. Missing a single personal loan payment will drop your score. How much depends on your credit history and how you are managing other debt. If

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How to find the best personal loan for your needs

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Make smart choices when choosing the right personal loan to save money. (iStock)

Personal loans can have a lot of financial benefits if you find the right loan with the right lender. The right personal loan can help you pay off a big-ticket loan or even reduce high-interest credit card debt. When used correctly, a personal loan can be a powerful personal finance tool.

There are many reasons people seek personal loans. Some of the most common uses of a personal loan include:

  • Debt consolidation
  • Home renovations
  • Medical expenses
  • Wedding expenses
  • Vacation
  • Moving expenses
  • Large purchases
  • Funeral expenses
  • Funding a small business
  • Investment

While you can take out a personal loan to fund educational needs or to purchase a vehicle, it may not be the most affordable way. Student loans and car loans often have much lower interest rates.

Personal loans offer flexibility. Unlike auto loans, mortgages and

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Citibank Quick Cash Loan Review (2020)

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Cheapest loan for 12-month loan tenures for new-to-bank customers.

Citi Quick Cash lives up to its naming. It is possible that in just a minute, you’ll be able to convert your credit limit into a personal loan to be deposited into your account. This could prove to be highly useful for those who might be facing emergency expenses, such as those of a medical or business nature; although you have the option to repay your loan for a tenure of up to five years, 12-month loans will let you enjoy 0% interest rate. 

What the Citibank Quick Cash Loan can do for you

Citibank Quick Cash Loan product summary:

  • Interest rate: From 3.99% p.a (EIR 7.5% p.a), or 0% p.a (EIR 7.85% p.a) for 12-month tenures
  • Loan tenures: Choice of 1 to 5 years
  • Max. credit limit: Up to 4X of monthly salary
  • Min. loan amount:
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You Don’t Need Perfect Credit to Get a Personal Loan

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A low credit score doesn’t have to stand in your way if you want to get a personal loan to cover an emergency or consolidate your debts.

Borrowers with bad credit, which is a FICO score below 630, may need to put in some extra work to qualify for a personal loan. But taking these steps can not only help you get approved, they could also get you a cheaper interest rate.

Clean up your credit, shrink your debt

Before you apply for a personal loan, get a copy of your credit report to see what the lender will see on it, says Adrienne Ross, a Washington-based certified financial planner. You can get one free copy of your report from all three major credit bureaus at annualcreditreport.com.

The details on your credit report can show you why your score is low and signal how to address the issues before a

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This Is the Average Personal Loan Balance. How Does Yours Compare?

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A worried-looking woman reading a letter in her home.

Image source: Getty Images

Personal loans are an affordable way to borrow money, and during the COVID-19 pandemic, they’ve no doubt been a lifeline to the millions of Americans grappling with income loss.

The upside of a personal loan is that you’re not limited in how you spend it. When you take out a mortgage, you must use that loan to buy a home. With an auto loan, you’re financing a car. A personal loan lets you borrow for any reason you want. Credit cards do the same, but personal loans tend to charge much less interest, and don’t drop your credit score unless you fall behind on payments.

If you have a personal loan, you may wonder how your balance compares to that of the average borrower. According to new research by The Ascent, the average new personal loan balance is $6,825. But whether your balance is higher, lower,

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How to Get a Loan With Bad Credit| NextAdvisor with TIME

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We want to help you make more informed decisions. Some links on our site — clearly marked — will take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Gaining access to credit, like a loan or a new credit card, has become more difficult this year. And if you’ve got a credit score that lenders have deemed “bad,” it’s even harder.

Reacting to economic uncertainty, banks have tightened lending standards for households across all major categories in 2020, including mortgage, credit card, auto, and consumer loans, according to Federal Reserve data.

Lenders and creditors use your credit score and the details on your credit report to determine your creditworthiness, or the risk that they might take on by lending you money. If you have a bad credit score, lenders may view you as more

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Personal loan lender RateSetter becomes ‘Plenti’

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*The Comparison Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

**Representative example figures and monthly repayment figures are estimates only, based on the advertised rate, mandatory fees, loan amount

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Read this before you apply for a personal loan

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A personal loan can help cover the gap during times of financial stress. (iStock)

Personal loans are often used to consolidate high-interest debt or finance large, one-time purchases. But they can also be handy for managing day-to-day expenses during an emergency when your income has dropped or you don’t have cash savings to rely on. But there are a few things to know before applying for a personal loan to make sure it’s the right move.

Is getting a personal loan during a financial crisis a good idea?

There are some pros and cons associated with getting a personal loan during a financial emergency.

On the pro side, it may be cheaper to get a personal loan than charging expenses to a credit card. If you can lock in a low, fixed-interest rate on a personal loan, that may be preferable to the higher variable interest rate that

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8 questions to ask before taking out a personal loan

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Ask yourself these questions before applying for a personal loan. (iStock)

When finances are tight, it’s tempting to turn to a personal loan. Borrowers use personal loans for a variety of reasons, including debt consolidation, moving expenses, vacation, and to cover lost income. While personal loans offer flexibility and can provide much-needed relief when things get tight, it’s essential that you thoroughly research your options to avoid finding yourself in a loan with unreasonable terms.

Before you apply for a personal loan, here are a few commonly asked questions that could help you decide if it’s the right fit for your finances:

1. When is a personal loan a good idea?

A personal loan may be a good idea if you can afford to make monthly payments, and you qualify for a fair interest rate. Use online marketplace Credible’s free online tools to see what kind of loan

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