Products2019-11-01T07:09:51+00:00

Loans

Loans can be really useful for getting out of trouble, making investments, or buying something that won’t be available when you have the money. However, loans aren’t that simple, and they come with many details and aspects that need to be considered.

First of all, there isn’t a single type of loan, and there are many options to choose from. Each of them is designed for different kinds of people with different needs. Furthermore, each lender gives out different variations of loans, and their agreements will carry different terms.

This is why it is crucial to learn more about loans before actually getting one. You need to understand what your options are and make the right choice.

Benefits of Loan Products

A lot of businesses get financed initially through a loan. However, apart from business reasons, there are many other reasons why people get loans. These can include school fees, mortgage payments, and so on. Getting a loan both for long-term and short-term is an option just as long you organize yourself properly and pay it back on time.

No matter what’s your reason for getting a loan, there are certain general benefits you can expect:

Instant Cash Flow

If you need instant cash to buy something, pay for tuition, or start a business, there is no easier way of getting money than borrowing a loan. No matter what kind of projects or assets we are talking about, getting more substantial amounts of capital isn’t that easy.

This is where borrowing a loan comes into play. At the same time, in most cases, the more money a business has at the start, the higher the chances are of it succeeding. This is the appeal of loans; you can instantly get significant capital that you can use for any investment.

Ability to Overcome Obstacles

As we mentioned earlier, loans can come with vast amounts of money. Sadly, in everyone’s life, there is a situation where they are urgently in need of money they don’t have. Let’s get back to starting a business.

For example, if you have a good idea that could make you a lot of money but you don’t have the necessary capital to invest and at the start, then the idea won’t do you any good. A loan can help you get through these kinds of situations without any regrets.

Flexibility

A loan gives you a lot of flexibility. Instead of having to gather a lot of money instantly, you can worry about repaying the loan over a long period in time. If you can, you can even repay it in full earlier and get this worry out of the way.

Of course, loans come with interest, but they are almost non-existent compared to getting the money you need instantly. With a long payment term, you have the time to figure out ways to repay the loan in smaller installments, which is far more convenient.

Types of Loans

Personal (Secured)

These loans can be quite big, and they need a security asset as a part of the contract. They also have lower interest rates due to asset guarantees. Some types of secured loans include mortgage, auto loans, and so on.

Unsecured

These loans aren’t tied with assets, but they are lower and have a higher interest. They are usually used for holidays, renovation projects, or car repairs.

Debt-consolidation

These loans are designed to help you gather all of your debts to a single account. Simply put, this loan pays off all your debts with all the lenders and puts them all into a single debt through which you repay it.

Student

Student loans are strictly reserved for students or their parents. To get these loans, borrowers need to prove that they need them for their education. This is because these loans come at special interest rates.

Products - Loans, Insurance, Credit
PRO Tip
To get a loan, you just need to contact the lender you want to get a loan from and ask them how to submit your application. They will tell you their approval terms and whether you have a chance to get a loan. However, every loan has an interest. Depending on the type of loan and your credit, your interest might be lower or higher. Multiply your annual interest by your total loan to get the total amount of interest you will have to pay. It takes around 3-4 workdays to get approved for a loan with most lenders. If they need more time to give you approval, it’s best to find another lender.

Insurance

Everyone is getting various types of insurance today, but do you know what they actually do? An insurance policy is a very important contract that binds you for a long time. Getting one is an important life step, and you need to make sure that you’re making the right choice when getting one.

Even though insurance policies are designed to protect you from certain things, they come at a price. At the same time, there is a risk factor that also needs to be considered. Let’s discuss a bit more about insurance policies and what they do.

Benefits of Insurance Products

Naturally, there are many different types of insurance policies out there. Each of them brings their advantages. However, there are some general benefits that all insurance policies provide. Here are some of those benefits you can expect:

It Protects Your Money

Your money is probably one of the greatest assets you have. We all know it takes a lot of hard work and time to save up some money. If something unexpected happens to you or your property, it would be unfortunate to see all those savings you worked so hard for suddenly disappear.

No matter what kind of insurance we are talking about, it protects your money. Insurance is designed to cover your expenses in urgent and unexpected situations. It can do this for you or your loved ones, depending on the type of policy.

Gives You Peace of Mind

Any type of insurance brings peace of mind. If you love your car and you are worried if you are going to be able to repair it in case of an accident, auto insurance will give you that valuable peace of mind.

On the other hand, if you are worried about your loved ones and what they’re going to do after you are gone, you can get life insurance to make sure they are taken care of.

It Gives You Stability

Insurance is there to help you go through difficult situations as easy as possible. The insurance covers all the unexpected costs you’ve had and keeps your budget on track.

If you saved money for a long time and you have a car accident you won’t have to spend that money. The insurance will cover it, and your plans won’t be obstructed in any way. Most types of insurance policies work this way.

Types of Insurance

Life Insurance

Life insurance provides payouts to family members or partners of the insured person. When the insured one dies or when the insurance is expired, their loved ones will receive a lump sum.

Personal Liability Insurance

This kind of insurance covers you in situations when someone accuses you of putting their property or well-being in danger. For example, if someone enters your property, slips, and falls, they might want to sue you. This is where personal liability insurance covers you.

Home Insurance

This kind of insurance covers your personal property of any type of direct damages, loss of items within the property, as well as personal liability.

Auto Insurance

This insurance covers your vehicle, damages made to it, repair costs, and any items lost from it.

General Insurance

Some people want to get several insurances packaged into one – general insurance. In most cases, it includes liability and property insurance along with an additional one that is usually flexible.

Other Insurance Products

There are a few other Insurance types that can be purchased. For example – Travel Insurance, Dental Insurance, etc.

PRO Tip
The higher the risk of the insured event happening, the higher the coverage costs will be. However, the risk is not the only thing that affects your payments but also your income, credit, and other factors. In case of property damage, car accident, or another event, the first thing you need to do is contact your insurance company. Call the claims department and tell them about your information. Do this as quickly as possible to ensure your claim is recognized.

Credit

You’ve probably heard about the term credit score at some point, or you’ve read it somewhere on your personal documents. Everyone has a credit score today, and it has become really important. The credit score is a number with three digits, which shortly represents your credit report.

Your credit report is a history of all your financial actions and behavior. Simply put, this means that credit score is a metric that represents your financial or credit health. The credit score is valuable because all lenders rely on this metric to tell them whether they should borrow money to someone.

Not only this, but it can help lenders determine the conditions of their loans, credit, or terms and agreement that they give to an individual.

Benefits of Good Credit

Having bad credit can limit a lot of options and make your life a lot more expensive. There are many benefits to keeping a good credit score, and here are some you can expect.

Lower Interest Rates

No matter what kind of loan or a credit card you’re getting, a good credit score will ensure that you get lower interest rates. In most cases, interest rates are tied directly to the borrower’s credit score. With a good credit score, you not only get better interest rates but also lower charges on loans and balances for your credit card.

Having Better Chances of Getting Loans or Credit Cards Approved

One of the most important factors for lenders when considering someone’s loan or credit card application is the credit score. A good credit score doesn’t guarantee that you will get approved, but it can greatly improve your chances and make up for the other things you’re missing.

Increased Chances of Getting Approved for Renting an Apartment or House

There are more and more landlords that like to do credit checks on their potential new tenants. A poor score can greatly reduce your chances of getting an apartment, especially if it’s caused by having a big rental balance, or an eviction in the past.

Lower Insurance Premiums

A lot of insurance companies say that people who have poor credit scores are the ones who are more likely to make claims. This is why they raise their premiums higher. Simply put, people with different credit scores will pay for the same insurance policies differently.

Credit Scoring Models

Not all credit scoring is done the same way and for the same purpose. This is why credit bureaus use different models. Here are some of the most common ones.

FICO Score

This model has a great track record, which is why it’s most reliable. FICO was started in 1989, and it has been improved multiple times to perfect its scoring and analysis methods. FICO scores are calculated by looking at these factors:

  • New credit
  • Different credit types
  • Credit history
  • Credit utilization
  • Payment history

Vantage Score

This model started in 2006 as a direct competitor to FICO. It was supported by the three largest credit agencies TransUnion, Equifax, and Experian. It takes into account all the familiar data like payments, card balances, credit obligations, assets, and bank accounts to give a final score.

TransRisk Score

This scoring model isn’t used by a lot of lenders, as it’s designed to help see the risk an individual has on new accounts. The whole score is generally lower than FICO, and it’s based on TransUnion data. TransRisk been renamed to TransUnion New Account Score.

PRO Tip
It’s very important to control your credit score regularly and check its current state. Credit agencies can often make mistakes – by checking your score, you can notice them on time and report them before they do any additional damage. To improve your credit score, make sure to:

  • Pay all your bills on time.
  • Keep all your balances low.
  • Pay off all your debts on time.
  • Get new credit accounts only when you need them.
  • Use credit cards responsibly.
  • Report any mistakes in your credit report.

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Market Pro Secure® is an independent payment card comparison service supported by advertisers, a complete list of which can be seen in our Editorial Guidelines. Even though some of these advertisers are financial product providers and credit card issuers, our paid partnerships don't affect card ratings or the Best Card Picks on our website. We don't post any content that is provided or commissioned by any of our partners. However, our paid partnerships may affect how and where products appear on our site, including the order in which they are presented within listing categories. This order may also be affected by our website rules, as well as the likelihood of the applicant’s credit approval. We can't offer any warranty for the accuracy of the credit card information we share on our website, even though we do our best to keep the Terms and Conditions, rates, and other credit card details up-to-date. For more accurate information, click "APPLY NOW" to get transferred to the credit card issuer's official website. Market Pro Secure® doesn't include all available payment cards in the marketplace.

ADVERTISER DISCLOSURE. Market Pro Secure® is an independent payment card comparison service supported by advertisers, a complete list of which can be seen in our Editorial Guidelines. Even though some of these advertisers are financial product providers and credit card issuers, our paid partnerships don’t affect card ratings or the Best Card Picks on our website. We don't post any content that is provided or commissioned by any of our partners. However, our paid partnerships may affect how and where products appear on our site, including the order in which they are presented within listing categories. This order may also be affected by our website rules, as well as the likelihood of the applicant’s credit approval. We can't offer any warranty for the accuracy of the credit card information we share on our website, even though we do our best to keep the Terms and Conditions, rates, and other credit card details up-to-date. For more accurate information, click "APPLY NOW" to get transferred to the credit card issuer's official website. Market Pro Secure® doesn't include all available payment cards in the marketplace.

EDITORIAL DISCLOSURE. Market Pro Secure® doesn't post any content that is provided or commissioned by our advertisers, the majority of which are financial product providers and credit card issuers whose offers we feature on our website. The entirety of our editorial content – including any opinions, analyses, reviews, and evaluations – belongs to the author alone, and has not been reviewed, approved, or otherwise endorsed by our advertisers.