Friday, April 30, 2021

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Title Loans – Why & How to Get One

Posted: 29 Apr 2021 01:28 PM PDT

Summary

  • Title loans are small, short-term loans that don’t require a credit check.
  • Title loans get you money fast, but charge higher than usual interest rates and fees.
  • Failing to pay back a title loan can result in the loss of your vehicle and further financial distress.

Sometimes unexpected things happen and you need money fast. For those with poor credit, you may have trouble finding an institution to loan you money to pay for such an emergency. In such cases, a title loan may be right for you.

But if you’ve never taken out a title loan before, you may be wondering if it’s worth doing. You may even be asking, “What is a title loan?” “Can I get a title loan through a bank?” Fortunately, we can help.

Keep reading below to find out what a title loan is, how to get one, and why it might be worth it. When you’re ready, enter your ZIP code into our free comparison tool above to find affordable title loans from lenders in your area.

What is a title loan?

A title loan is just like any other loan except instead of using your credit score to justify the loan you use your car title as collateral.

You will only be able to take out a loan worth a fraction of the value of your vehicle, which is why title loans are typically for small amounts from as little as $100 to as much as $6,000.

Unlike other loans, title loans don’t require a credit check. This makes them extremely easy to get, especially for those with poor credit who need money fast.

Keep in mind that title loans are short-term loans, usually for 15 to 30 days. Because lenders charge higher than usual fees for these loans, you don’t want to take out a title loan for more than one month.

How do I get a title loan?

In order to get a title loan you have to own your car outright, that is, own the car’s title. If you lease your car or still owe money on it, then you won’t be able to get a title loan.

Your lender may also ask for your driver’s license, a picture of your vehicle, and proof of insurance before they decide to lend to you. They usually won’t run a credit check.

If you’re approved for the loan, then you’ll give your car title to the lender and they’ll hold onto it for the length of the loan. You’ll still be able to use your car, but if you default or fail to make a payment, they could repossess the car on you.

Because the approval process is so simple and you get your money fast, title loans are great if you need money immediately.

Is a title loan worth it?

If you or your family are in need of money to pay an emergency medical bill or some other sudden expense, then a title loan may well be worth it for you.

If you try to get a standard loan on short notice, you may not see the money for weeks. And if you have poor credit, you may not get approved.

However, keep in mind that title loans can be extremely expensive long term. Lenders can charge as much as 25% of the loan amount per month to pay for the loan. That’s a hefty charge for such a small loan.

Because of the high fees and interest rates, it’s important you pay back your title loan as quickly as possible. Otherwise, you could end up paying back far more than the loan was worth or even lose possession of your vehicle.

In fact, according to the Consumer Financial Protection Bureau, one in five auto title loan borrowers have their vehicle seized for failing to repay debt.

Even so, a title loan can be crucial for financial emergencies. You may be tempted to go online and find other ways to get money fast, but never borrow money from strangers online. It’s just not safe.

Now you know the answer to the question, “What is a title loan?” If you need a loan fast, enter your ZIP code into our free comparison tool below to find affordable title loans from lenders in your area.

References:

  1. https://www.consumerfinance.gov/about-us/newsroom/cfpb-finds-one-five-auto-title-loan-borrowers-have-vehicle-seized-failing-repay-debt/

The post Title Loans – Why & How to Get One first appeared on Loans.org.

PPP Loans – Why & How to Get One

Posted: 29 Apr 2021 01:25 PM PDT

Summary

  • The Paycheck Protection Program was established to alleviate the economic distress caused by the coronavirus pandemic.
  • PPP loans are equal to roughly 2.5 times an applicant’s monthly payroll costs.
  • PPP loans may be partially or fully forgiven if the business keeps its employee count and wages stable.

In April 2020, as the coronavirus pandemic ravaged the world economy, the United States government passed the Paycheck Protection Program (PPP) to help small and struggling businesses stay afloat.

As part of this package, the government began offering PPP loans to eligible applicants. The top 10 industries for Paycheck Protection Program assistance received billions of dollars in loans.

But what is a PPP loan and how do you know if you’re eligible? Perhaps you’re wondering if you can receive one of these loans. We’re here to help you navigate this complex business loan process.

Keep reading below to find out more about the Paycheck Protection Program, what a PPP loan is, and how you can get one. But before you do, enter your ZIP code above to find affordable PPP loans from lenders in your area.

What is the Paycheck Protection Program?

As a result of the coronavirus pandemic, the Paycheck Protection Program (PPP) was established in April 2020 to help safeguard the U.S. economy and keep people from losing their jobs.

Under the PPP, $953 billion was set aside for loans to eligible businesses and workers to help cover payroll costs, rent, interest, and utilities.

Some states received more aid than others, largely due to a greater need. Check out the 10 best states for Paycheck Protection Program assistance to see if your state falls into this category.

What is a PPP loan?

So what is a PPP loan? Simply put, a PPP loan is a government loan available to eligible applicants as part of the Paycheck Protection Program.

A PPP loan is a low-interest loan equal to about 2.5 times the applicant’s average monthly payroll costs. Applicants can also receive a second loan roughly equal to the first if they qualify.

Not everyone is eligible for a PPP loan and, as mentioned earlier, the loans can only be used for specific expenses. The loan may be partially or fully forgiven if the recipient keeps their employee count and wages stable.

According to the U.S. Small Business Administration, sole proprietors, independent contractors, self-employed persons, and certain businesses are eligible for PPP loans.

For example, a young woman who runs an Etsy shop out of her apartment may be eligible for a PPP loan. Sound like you? Check out the 10 best states for Paycheck Protection Program assistance for female business owners to see if your state made the list.

How do I get a PPP loan?

So, how do you get a PPP loan? Well, as we mentioned earlier, you have to be a sole proprietor, independent contractor, self-employed person, or a certain kind of business to be eligible.

If you fall into one of those categories, then congratulations! Your next step is to apply for a PPP loan with this form from the U.S. Small Business Administration website. President Biden has recently extended the application deadline to May 31 of 2021, so make sure to take care of this soon.

Once approved, the Small Business Administration is required to fund your loan within 10 calendar days from the date of approval. Then the funds are yours to use.

Now you know the answer to the question, “What is a PPP loan?” If your business needs financial help, enter your ZIP code into our comparison tool below to find affordable loans from lenders in your area.

References:

  1. https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/first-draw-ppp-loan
  2. https://www.sba.gov/document/sba-form-2483-ppp-first-draw-borrower-application-form

The post PPP Loans – Why & How to Get One first appeared on Loans.org.

Farm Loans – Why & How to Get One

Posted: 29 Apr 2021 01:23 PM PDT

Summary

  • Farm loans are provided by the Farm Service Agency (FSA) to help with the costs of owning and operating a farm.
  • Farm loans can be procured directly from the government or through an approved lender with the backing of the FSA.
  • Farm loans can be used for anything from purchasing livestock to improving buildings.

Are you a farmer having trouble repairing your farm after a natural disaster? Are you a new and inexperienced farmer in the process of purchasing your first farm? If you answered yes to either of these questions, you may be considering a farm loan.

Farm loans are government-backed loans provided by the USDA Farm Service Agency (FSA). They’re kind of like SBA business loans, except FSA loans are provided specifically to help new and inexperienced farmers maintain farm operating and ownership costs.

There are several different types of farm loans available and interest rates vary depending on which you go with. Fortunately for you, we’re here to help you navigate the FSA loan process.

Keep reading below to learn all about farm loans, why you might need them, and how to get one. When you’re ready, enter your ZIP code into our free comparison tool above to find affordable farm loans from lenders in your area.

What are FSA farm loans?

As mentioned earlier, FSA farm loans are government-backed loans provided to help farmers and ranchers operate and maintain their farms.

There are four main types of farm loans offered by the FSA:

  • farm operating loans,
  • farm ownership loans,
  • microloans, and;
  • guaranteed farm loans.

Farm operating loans can be taken out specifically for the purchase of livestock, seed, and other farm equipment like tractors and irrigation systems.

Farm ownership loans can be taken out for the purpose of buying new land or expanding an existing farm. They can also be used to fund the construction of new buildings or the improvement of existing ones.

Finally, microloans are used to fund small and beginning farmers or non-traditional operations such as farmers’ markets. FSA loans are available both as direct loans from the government or as guaranteed loans made by approved lenders with the backing of the FSA.

Why do I need a farm loan?

Perhaps you’re wondering why anyone would need farm loans in the first place. Shouldn’t a farm be able to take care of itself financially?

Well, the truth is there are lots of reasons people need to get a farm loan. Even the most profitable and well-run farms experience unexpected natural disasters that can lead to thousands if not millions of dollars in repairs.

That’s why, in addition to operation loans, farm ownership loans, and microloans, the FSA also provides emergency loans to help farmers and ranchers recover from losses due to natural disasters.

How do I qualify for an FSA loan?

As with any government loan program, there are certain eligibility requirements you must satisfy before you can apply for a farm loan.

Primarily, you must have an eligible farm operation. For instance, farms centered around breeding dogs, exotic birds, tropical fish, or racing horses are ineligible.

You must be a U.S. citizen and have a farm management background (through education or hands-on experience), and you may need to be the owner-operator of a farm to close on the loan.

Your credit history should not have a huge effect on your application if you are looking for a direct loan, but if you go with a guaranteed loan through a third-party lender, you may be denied if you have poor credit.

If you’re worried about your credit score, here are five ways to help pay off personal debt.

Now that you know how farm loans work, start searching for a farm loan today. Just enter your ZIP code into our free comparison tool below to find affordable government-backed farm loans from lenders near you.

References:

  1. https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/
  2. https://www.govloans.gov/loans/farm-operating-loans-(direct-and-guaranteed)/

The post Farm Loans – Why & How to Get One first appeared on Loans.org.
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