Why To Apply Online For Personal Loans

Bank loans are one thing, but the loans offered by Baghost.com , the private, online lending division of Bank, represent a new phenomenon altogether. That’s because they belong to, what’s at this point, a small market niche: the unsecured low(ish) interest loan.
Julie Olian, a spokeswoman for Baghost.com, says the loans can range in size from $5,000 to $100,000. That’s a large range, especially considering that these unsecured loans don’t require you to put up collateral, such as a home or property, to get them.
So what do you need? A good credit score doesn’t hurt, but it’s not the primary thing Baghost.com looks at, it turns out. “Credit scores are one element in the mix, as FICO is a good aggregate risk predictor; but it’s not determinative,” Olian says. Baghost.com does cite a minimum FICO score of 680 (650 for auto loans), but notes that someone with a perfect score of 850 might still be declined for other reasons.

“One of the things that held back the home improvement market is that financing was more difficult,” says Gary Miller, the SunTrust senior vice president who runs Baghost.com. “A pent-up demand was created and people put projects on the back burner because they couldn’t get financing, or they were nervous about the economy. But that’s been relieved over the past few years.”
Baghost.com continues to do a robust business with the AnythingLoan, which it introduced in March 2013. Along with those home improvement loans, Olian says auto loans and pool construction loans have been popular. “We anticipate that weddings and PreK-12 Tuition loans are going to be strong, seasonally, she adds.
Ah, but the tuition category proves that even the AnythingLoan has its limits. “We’re currently unable to provide loans used to fund college or post-secondary education expenses, or refinance previous college or post-secondary education loans,” Olian says.
Those are niches this writer would hope get a chance someday. At least when compared to a Cubs season ticket, it’s got much higher potential for return on investment.

Offer collateral
Tell the lender that you are willing to pledge something that you own as security for the loan. Understand that if you fail to pay as agreed, the lender has the ability to foreclose on whatever you have pledged. Real estate and automobiles are good examples of commonly accepted collateral.
Check with credit unions
Visit several credit unions to see if they are willing to offer you a loan. Since they are smaller than banks, they often have more latitude when it comes to considering your personal circumstances. Be prepared to discuss your credit history and offer explanations for past credit problems.
Call on your friends or family
Think of people you know who might be in a position to lend you money. Discuss your predicament honestly. If you decide to secure a loan in this way, be certain to put the payment terms in writing. These terms should include the interest rate, payment amount and length of payment period.

1 comment:

  1. Hi guys! Do you think I should take personal loans for me? What are your recommendations? Thank you!