Personal Loans Questions

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Mar, 26, 2012
The reason why inquiries affect borrowers’ credit scores is because lenders see credit inquiries as a sign of potential distress. Borrowers who skirt from lender to lender looking for approval on personal loans (or other types of financing) may be in debt and looking for financial help. Because of this possibility, the algorithm used by credit rating bureaus dings consumers for making multiple inquiries. There’s an obvious problem with this reasoning though: inquiries are required by lenders before consumers find out a lenders offer, and if consumers want the best deal they must solicit offers from multiple lenders.
Money falling into Uncle Sam's hat
Feb, 22, 2012
Not only “can” borrowers be taxed on interest-free loans, they “will” be taxed on them. As unfortunate or nonsensical as that may sound, interest-free loans, whether they be auto, home, or personal loans, are classified by the IRS as cancellation of debt income, or COD income. COD income is essentially an income that an individual shouldn’t have, but wound up receiving through some special agreement. Regardless of the way somebody receives COD income, the IRS expects to taxes from it.  COD Income  
Last will and testament
Feb, 7, 2012
When a relative who had an accumulation of debt passes away, their debts are usually paid by money taken out of their estate. This usually occurs before any heirs receive their cut from the deceased’s will, so the family members usually don’t have to worry about it, but and responsibility for handling this usually falls on representative handling the deceased’s estate. Consequently, this is usually not something the surviving family members need to worry about.
Piggy bank with belt slimming its waist
Feb, 6, 2012
A consolidation loan is a loan structured to help a borrower cover the balance on his or her existing loans. To achieve this goal, this type of financing awards borrowers with a single sum of money those borrowers can use to pay off their outstanding loans, thus granting them a single monthly payment. Because this is a new loan, this consolidation attempt can often be stretched over a longer period of time, resulting in lower and more manageable monthly payments.  
House and car made of money
Feb, 2, 2012
Depending on whether or not a personal loan is secured or unsecured, borrowers may forfeit anything from their credit score and money to a car title or even their home in the event of a default.  
Band aid on a dollar bill
Jan, 12, 2012
Unfortunately consolidating debt does hurt a borrower’s credit score. But credit scores can always be corrected over time, and consolidating debt may be necessary to ensure a healthy financial future. If borrowers are struggling under the weight of their current debt and monthly bills, they shouldn’t hesitate to seek help through debt consolidation simply due to credit score concerns.  
Two hands with wedding rings on
Dec, 23, 2011
The one thing that can kill the mood of those walks on the beach, fantasies of starting a family, and those times of never ending eye locked moments is if one notices a mountain of debt sitting behind their significant other’s back. For many (particularly the young) this is a trivial matter that can be overseen and worked through, but for others, debt serves as a very real and valid concern.   The good news is depending on the state that a couple resides in, the effect their individual debt has on their spouse may be limited.  Community-Property States
Red headed girl with hand on chin pondering
Dec, 13, 2011
Borrowers can use personal loans for just about anything! From getting a small business up and running to funding that special vacation a couple has always wanted to take, personal loans are very versatile forms of financing.   Historically, personal loans were reserved for those looking to make larger, material purchases. These material items included kitchen appliances, refrigerators, washers, and dryers. But people began seeing a lot of untapped potential in these financing tools. As a result, personal loan usage has been diverted from the lower-cost purchases and instead focuses on things of higher cost.  
Hands shielding paper cut-outs of people
Dec, 5, 2011
Established in 1968, the Truth in Lending Act (TILA) was created in an attempt to protect consumers from the confusing world of lending. This act requires lenders to include appropriate disclosures to borrowers depending on the type of loan that they wish to take out. Since 1968, TILA has undergone many amendments, and continues to evolve as new loans and new procedures are created.  
Green glass pouring into red glass
Dec, 1, 2011
One of the great things about personal loans is that the money is yours to do with as you please. As a result, personal loans are great tools for consolidating debt.  Get Out of Debt Traps  

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