We’re living on the Internet; why not borrow there?
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, American Unsecured can help with your online lending needs.
So much of life is conducted on the Internet. Correspondence, travel plans, jobs, job searches, research, looking for phone numbers, bill paying, real estate shopping, Christmas shopping, grocery shopping, pet shopping, date shopping and mate shopping. If you worked in a bank every day, 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 at 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.
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.
See what American Unsecured can do for you today.
Starting a new business? You’ll need more than just a dream
Starting your own small business means you’ll be able to see your ideas through from inception to fruition. Your business plan is promising enough that you’re willing to invest your heart and soul to ensure its success. But heart and soul won’t be enough if you don’t have the money to get your new business running.
Welcome to the world of start up business loans, where small business dreams can become big business realities.
Most small businesses are launched with a combination of personal assets, loans from family and friends and start up business loans from banks or commercial lenders. The start up business loan is usually used to cover the actual expenses of running the business in its very earliest years. Once the business is on solid ground – usually after the second year – many owners will take out a second loan, sometimes called a bridge loan, to pay for expansion, equipment upgrades or a better location.
Applying for a small business startup loan
Before applying for a startup business loan, you’ll need to make a clear-eyed assessment of your debts and assets. Determine as closely as you can how much money you’re going to need, and what assets you can bring to the table to show the lender you’re a committed and responsible borrower.
Most traditional lenders are leery of startup business loans, and will expect to see that you’re willing to put your house or any business-related real estate on the line. You have to ask yourself (and certainly anyone else whose name is on the deed) if you’ve got the stomach for that kind of risk And, even if your answer is “Yes,” be prepared to hear “No” from prospective lenders. On average, the first four applications for a small business start up loan are denied.
An easier way to finance your small business startup
If those terms sound too risky, or you simply don’t have the assets traditional lenders require, you need to look into unsecured startup business loans. Brick and mortar banks that hesitate to lend secured start up funds are even more reluctant to sign off on a small business start up loan without collateral.
Fortunately, there are lenders who specialize in arranging unsecured loans for borrowers with good credit.
American Unsecured is a company of online unsecured loan consultants. If you have good credit, they’ll find the lender that best meets your credit profile and offers the best rates and terms. And, unlike traditional banks and lenders, because they’re an online business they can provide faster service. America One has relationships with many of the nation’s largest banks, and can secure the best rates and terms for you. Interest is typically between 7.99 and 19.99 percent, and terms range from 12 to 84 months. Or, if you prefer a line of credit without a payoff date, they can arrange that for you.
Starting your own company is tough enough. Getting the right small business startup loan can get you up and running sooner … and get you ready sooner for that expansion loan.
Take care of business before it takes care of you
You have bills, student loan, debts, credit cards, and anxiety … lots of anxiety. The last time things were looking this bad you transferred all your maxed-out, high-interest credit card balances to low-interest credit cards. But then you did what you swore you wouldn’t: you maxed out the low-interest cards … except those aren’t exactly low-interest cards anymore now that the teaser rate has expired.
So what are you going to do this time?
The first thing you should do is cut up those credit cards … and the old ones, too, if you haven’t already. The next thing you should do is look at your options for a debt consolidation loan.
Secured consolidation loans
Debt consolidation loans come in two flavors: secured and unsecured. A secured loan is tied to some form of collateral — usually a house – hence the name home equity loan or a home equity line of credit. The biggest appeal of this kind of loan is that it is typically the lowest interest loan available for loan consolidation, and the interest is very likely tax deductible.
The biggest risk here is that you’ll again get into financial trouble and not be able to make the payments. Even if you have cut up all those credit cards and brought your spending under control, tragedies happen. A downturn at work, an illness, an accident – any one of these could all you face to face with the sickening reality of losing your home.
How much anxiety can you stand? If you have a second home – a vacation or rental property – go there for equity first. How about stocks, bonds, certificates of deposit? Any asset will suffice. Only use your house’s equity as a last resort. If you can get by with a consolidation loan for a lesser amount, consider using a car or boat as collateral instead.
Unsecured consolidation loans
In this case the lender is taking a greater risk; you haven’t laid a house or other asset on the line as a trade if you default on the loan. Accordingly, the interest rate will be higher. It’s not going to be as bad as your high-interest credit cards, but not as good as a secured loan. The rate and terms you’re eligible for will depend largely on your debt to income ratio, and whether you’ve been missing payments or just squeaking by with the minimums.
Some final thoughts
Be careful of scams. Are you familiar with the term “predatory lender?” Research. Look for the Better Business Bureau’s stamp of approval on your prospective lender’s Web site. Does their Web site include extensive information about the pre-qualification and application process? Are they sticking you with a bunch of up front fees?
Listen to your gut when dealing with them during the application process. Are they easily accessible and responsive to your questions and concerns? A good place to start your research is with American Unsecured. Since our start up in 1999, we have helped a million people with widely varying credit situations, and are known for our great service.
The next step is to have a real “come to Jesus” meeting with your spending habits. Take control of your financial future now before it is too late.
Loans
There’s a lot to know before applying for consumer loans, and it can be an intimidating process for people who don’t understand the basics. What kind of loans to apply for? How do banks decide who gets loans? What determines the maximum amount of loans? What determines the interest rate of loans?
The basics
Loans are either secured or unsecured, meaning they’re secured with collateral or not. The most common secured loans are auto loans and mortgages. Other common secured loans are boat or motorcycle loans, or retail loans for furniture or other big-ticket items that can be repossessed if loan payments aren’t made in a timely manner.
Unsecured loans go by several names, including personal loans or signature loans. Common uses of unsecured loans include debt consolidation, vacations, weddings or relatively small home renovations. Interest rates for unsecured loans are typically higher than that of secured loans, but lower than credit card rates.
There are three basic determinants of whether loan applications are approved: income, debt and credit history. Income and debt are considered as a ratio—debt to income ratio, or DTI.
Most mortgage lenders require that payments on mortgage loans not exceed 28% or applicants’ gross monthly income. Lenders in general require that applicants’ monthly debt payments (excluding housing) not exceed 36% of gross monthly income.
In order to qualify for a mortgage for which the lender requires a debt-to-income ratio of 28/36:
- Yearly Gross Income = $45,000 / Divided by 12 = $3,750 per month income.
- $3,750 Monthly Income x .28 = $1,050 allowed for housing expense.
- $3,750 Monthly Income x .36 = $1,350 allowed for housing expense plus recurring debt.
The other determinant is credit history. Simply put, applicants with good or excellent credit scores are better able to get loans; applicants with only fair or poor credit scores have a harder time getting loans. That’s not to say that people with tarnished credit records can’t get loans, but they may have to accept lower loan amounts, higher interest rates or secured loans rather than unsecured loans.
Today there are plenty of loan products available to meet most everyone’s needs though, and the market for bad credit loans is now serviced by specialty lenders.
Another factor of credit history is the length of the credit history. Young people whose credit history may be limited to student loans or maybe a maxed-out credit card may have to accept the same sort of terms as people who have extensive but poor payment histories.
Personal loans
Personal loans resolve life’s little crises and allow for life’s sweet indulgences
It seems like time and money are mutually exclusive: You never have both at the same time. Stay at home moms enjoy being able to take care of their families and homes, and being able to respond to emergencies. However, without a full-time salary, vacations, home repairs, new furniture and summer camps may have become out of reach. When the refrigerator dies, what may have once been an inconvenience, can become a crisis.
That’s where personal loans come in. No other loan affords borrowers the flexibility like that of personal loans. Unlike most loans, personal loans can be used for anything from urgent needs to desperately needed vacations.
In the past, many people felt comfortable pulling out a credit card to meet their financial needs. But in the new economy, many credit card issuers have raised interest rates and lowered credit limits. Today, consumers are working hard to pay off their credit card debts and are applying a new restraint on credit card spending. Personal loans, however, are less expensive than high-interest credit cards, and, with a good or excellent credit score, the interest rate can be as low as 6.99%.
The convenience of personal loans makes them an attractive option. Personal loans can be obtained online and deposited into the borrower’s bank account in as little as 24 hours. When the family car breaks down, the roof leaks or the washing machine dies, convenience and a rapid turnaround are a necessity.
The flexibility of personal loans allows for home improvements like landscaping projects, refurbished bathrooms or professional painting – the investments real estate agents encourage homeowner to make for maximum return.
When all the appliances are functional and the house is all spruced up, personal loans can be used for a much-deserved vacation. Using personal loans for travel allows time to plan the ideal trip and take advantage of the best bargains. Studies show that children who travel get better grades and have a better grasp of geography and foreign languages.
Alternatively, personal loans also provide the option of sending the kids off to summer camp while their parents enjoy a relaxing, romantic getaway of their own.
In short, personal loans save money, save grief and allow for the sort of things we all need and deserve.
Is an unsecured personal loan right for you?
Personal loans come in two flavors: secured or unsecured. The difference between them is simple enough—you’ll put up collateral to secure a secured personal loan but not for an unsecured personal loan. The only question is which works best for you.
An unsecured personal loan presents a higher risk for the lender, so requires a higher credit score and income. That risk level also means that an unsecured personal loan comes with a higher interest rate than a secured loan.
So what are the benefits of an unsecured personal loan? Their broad accessibility, for starters. Millions of people—especially city dwellers—don’t own houses or cars, which are commonly used as collateral. And, if they don’t have financial assets like certificates of deposit or annuities to offer as security, an unsecured personal loan might be the only option.
And, now that home values have tanked, millions of homeowners no longer have enough equity in their houses to use them as collateral for an unsecured personal loan. And, frankly, in the new economy a credit score of 725 isn’t as shiny and promising as it used to be the eyes of many lenders.
There are other benefits to an unsecured personal loan, even for those who can offer acceptable collateral. The asset securing the loan will have to be forfeited if financial calamity strikes the borrower. A period of unemployment, a family member’s medical bills or any number of hardships could mean losing a family home or necessary transportation.
For help finding the best personal loans, contact American Unsecured, one of the nation’s largest loan-consulting firms.
What type of business loan is right for your business?
Whether you have a fledgling business or one that’s been long established, at some stage of the game, you’re going to need a business loan.
Needing one and getting one are two different things, though. You can maximize your chances of getting a business loan—any business loan—by knowing what to expect from the lender.
At the very beginning – At this stage of the game you’ll need seed money, but you can’t get it as a business loan from the bank. You’ll have to use your own assets, get a business loan from family or friends, or take out a personal loan. Wherever it comes from, this money will be used to create your business plan—an essential for starting a business and getting a loan later on.
Almost there – This is the time for a startup loan to purchase inventory, and to lease or buy equipment or the location for your business. The importance of a thorough business plan can’t be overstated, but that alone won’t get you a business loan. You’ll need to show the lender that you’ve invested a considerable amount of your own financial assets, and are prepared to contribute more.
When you apply for this first business loan, a big part of the bank’s decision is going to be based on your personal character, reputation and financial history, so be prepared.
Well underway – Get a business line of credit before you need it. There will be times you need to increase inventory, do some additional hiring, replace equipment or respond to a sudden emergency. You’ll need to show the bank you have enough excess revenue to make the loan payments, so don’t wait till you’re in dire straits to apply
Ready for the next stage – Your business plan should be evolving as your business does. When the time is right for expansion, you’ll use that plan and your projections obtain a business loan to help you continue growing your business.
Contact American Unsecured and let one of the nation’s largest loan-consulting firms help you obtain your business loans. Since 1999, their experience and bank partnerships have helped others acquire hundreds of millions of dollars in personal and business loans.
Personal loans for credit card debts?
Credit card issuers have gotten pretty nasty lately. They’ve abruptly closed accounts, lowered limits, increased interest and shortened terms. Suddenly, what were affordable monthly payments have created a real budget squeeze, with payments that be entirely impossible to make in full or on time.
If you’re in this predicament, it’s time to consider personal loans. For many people and many reasons, they provide an attractive option to making—or worse, not making—those monthly credit card payments:
- Personal loans have lower interest rates than many credit cards.
- Personal loans can be paid off with lower monthly payments.
- Personal loans can actually improve credit scores damaged by credit card debts too near their limits.
- Even when personal loans aren’t enough to pay off all credit card debt, they reduce the ratio of available credit to credit balance.
- When personal loans are applied to pay off a significant percentage of a credit card balance, the credit card issuer may agree to a lower interest rate.
- Personal loans can be obtained quickly and easily online.
- Personal loans are typically unsecured loans, meaning they don’t put personal assets such as homes at risk.
- Personal loans are by far a better option than payday loans, which often carry annual interest rates between 300 and 700 percent.
Financial pressures affect quality of life in so many ways; marriages, families, professional opportunities, and physical and mental health all suffer as financial difficulties mount.
Though personal loans might not be a panacea for all of life’s challenges, they are a viable option for millions of people, and might improve your situation, too. Explore your options with American Unsecured.
No Collateral Loan
Collateral: Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default, also called security.
That means if you put up collateral for a loan, your assets can be seized; that is, you can lose your house or car. Another way to think of it: if the lender knows he stands to gain your house or car, he’s got to feel much more secure in lending the money you need.
Now look at unsecured, another way of saying no collateral loan: Read more