Should I Refinance My Student Loans?

Should I refinance my student loans? It depends on your situation. But a common reason for people to refinance their student loans is that they want to pay less interest. Even a small decrease in the rate could save you a lot of money over the life of the loan and ultimately help you pay off your student loans faster.

Another reason could be that you want to change the loan type (i.e., switching from a fixed rate to a variable rate or vice versa).

Whatever your reasons for wanting to refinance your student loans may be, you should always compare your student loan rate with other rates on the market. Some lenders always update their rates to make sure they are competitive on the market. So the chance is high that you could get a better deal with another lender.

The best way to compare student loan rates is through LendKey. LendKey’s rate starts as low as at 1.9%. And they have 5, 7, 10, 15 & 20 year loan terms. The great thing about LendKey is that checking your rates will NOT affect your credit score.

CHECK YOUR RATE

What does refinancing your student loans mean?

In simple terms, when you refinance your student loans, you’re essentially taking out a brand new loan in order to pay off your existing student loan. This can get you a better deal and save you money in the long term. The trick is to figure out if it makes sense to refinance.

Should I refinance my student loans? Does it make sense to do so?

When it makes sense to refinance your student loans:

  • Lower interest rates are available.
  • You have other large debts, such as credit card debts and personal loans, and you want to consolidate all of your loans.
  • A major change in your life has happened recently.
  • You want to switch to a fixed rate.

When it doesn’t make sense to refinance your student loans

  • Your credit score is low and you are less likely to get a good rate.
  • You’re no longer have a stable job, and your income is not reliable.
  • Your current loan is at a fixed rate.

To decide whether you should refinance your student loans, you should have a reason why you want to refinance. Is it because you want to pay a lower interest rate? Do you want to consolidate all of your loans?

Wanting a lower interest rate on your student loans should not be your only consideration when wanting to refinance. The life of the loan should also be considered, and not just the interest rate. That means, will it be variable interest rate or fixed interest rate. This is important as it can impact your long term financial obligations.

You should also consider the cost of switching to another lender. There are fees, such as application fees and ongoing charges associated with switching to another lender.

Is now the right time to refinance your student loans?

A better interest rate is not the only factor to consider when thinking of refinancing your student loans.

The stability of your job should also be considered. How stable is your job? Can you manage to make monthly payments on your income? If you’ve recently gone part-time, or gone freelancing, now is probably not a good time to refinance your student loans.

Likewise, if you have just switched to a more stable, full time job, you may need to wait for like 6 months or even a year before a bank can consider your loan application.

This is where a financial advisor can be handy, as they can help you make the right financial decision.

It’s also a good idea to talk to existing student loans provider when considering refinancing. Some lenders, in order to keep your business, might try to lower your interest rates or waive some fees for you. They’d be very willing to do that especially if you always make your payments on time and have been with them for a long time.

If you decide to go with another lender, make sure your financial situation is in shape. That means that you don’t have that much outstanding debts such as credit card debts, and that you have always paid your bills on time. This is important not only to get qualified, but also to get a better rate.

When refinancing your student loans make sense

There can be several reasons to refinance your student loans. Perhaps you have a better job, making more money. Or perhaps your current student loan rate is not competitive anymore.

Even if you don’t have any specific reason, it’s always a good idea to know what’s available to you. There might be great deals out there.

Every once in a while, you might want to reassess your student loan rate and compare it to other student loan rate on the market.

One easy way to reassess your options is with LendKey. LendKey is an online platform that allows you to browse multiple low-interest loans from almost 300 community banks and credit unions, instead of big banks.

LendKey allows for more flexibility and lower interest rates. It can help you find the right student loan for you without visiting dozen bank branches.

Plus applying to a dozen of student loans will not HURT your credit score. LendKey does a soft check on you, so you can compare student loans from multiple lenders before you actually apply for one.

Click here to check your rates through LendKey.

Indeed, a lower interest rate and lower repayments are some of the more common reasons to refinance your student loans. Even a slight decrease on your interest rate might make a big difference on your monthly student loan payments.

Indeed any student loan refinance calculator out there can tell you how much you can save.

Another common reason to refinance your student loans might be to consolidate all of your debts and have one monthly repayment. Debt consolidation is when you combine all of your debts so you have one big repayment, instead of several.

If you have other debts such as personal loans, car loan, credit card debts, home loan, then it makes sense to roll these debts together with your student loan. The advantage is that your student loan rate is typically lower.

When refinancing your student loans doesn’t make sense.

There are times when refinancing doesn’t make sense.

For example, if you have built a good relationship with your lender, it might not be a good idea to switch to another lender simply to get a lower interest rate. The new lender might raise your rate once you switch, but you’ve just ruined your good relationship with your old lender.

Another reason you should not refinance your student loans is if you you have been paying for a long time already. Refinancing to a longer term might reduce your monthly payments, but will cost you many more years and more money. So if your current balance is already low, it’s not very beneficial to refinance.

You should also not refinance your student loans if your interest rate on your current student loan is low. There is no real benefit to be had from refinancing an already low interest rate. In fact, you may end up incurring more costs and fees when switching.

Your credit score is low

Refinancing your student loans may not be a good idea if your credit score is low.

While you can apply with a co-signer if you have a low credit score, but it can be hard to find someone to co-sign for you.

So, at a minimum, make sure your credit score is at least 650. If it’s not where is supposed to be, take steps to raise your credit score.

Don’t know your credit score, get a free credit score with Credit Sesame.

Bottom line

If you’re asking yourself: “should I refinance my student loans?” The answer is: it depends on your unique situation. But there are great benefits to refinancing your student loans. To reiterate, it can save you thousands of dollars over the life of the loan; it can reduce your loan payments significantly. However, before deciding to take the plunge you have to make sure you’re getting a better deal.

After you have checked your rates, you should definitely refinance your student loans. Not only will you get a reduced interest rate, you will also get a lower monthly payment and pay less over the life of your loan.

Plus when you’re approved for a loan you applied through Lendkey, you’ll get a $100 bonus after the loan is disbursed.

Read More:

  • 5 Tips To Pay Off Your Student Loans Faster
  • How Much Should You Save A Month?
  • Buying A Home For The First Time? Avoid These Mistakes

Work with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post Should I Refinance My Student Loans? appeared first on GrowthRapidly.

Source: growthrapidly.com

How to Know If an Investment Is Too Risky

If a business is too small, too new, or has had major issues such as bankruptcy or lawsuits, it might be too risky.If a business is too small, too new, or has had major issues such as bankruptcy or lawsuits, it might be too risky.

The post How to Know If an Investment Is Too Risky appeared first on Dough Roller.

Source: doughroller.net

Motley Fool vs. Zacks vs. Morningstar

Investors seeking advice may turn to a premium subscription service such as The Motley Fool, Zacks, or Morningstar. Here’s how they compare.Investors seeking advice may turn to a premium subscription service such as The Motley Fool, Zacks, or Morningstar. Here’s how they compare.

The post Motley Fool vs. Zacks vs. Morningstar appeared first on Dough Roller.

Source: doughroller.net

Do IPO Investors Usually Beat the Market?

What is the right strategy when it comes to investing in IPOs? Should you get in right away, wait or skip it altogether?What is the right strategy when it comes to investing in IPOs? Should you get in right away, wait or skip it altogether?

The post Do IPO Investors Usually Beat the Market? appeared first on Dough Roller.

Source: doughroller.net

5 Best Personal Loans for Fair Credit for 2020

Are you wondering if there are personal loans for fair credit out there?

If you are, then the answer is a resounding “Yes.” There are, indeed, personal loans for fair credit available to you.

If you have fair credit, expect your credit history to be under the microscope by lenders when applying for a personal loan. But that shouldn’t stop you from getting a personal loan.

So, how do you get a personal loan when you have a fair or average credit?

While you may have fewer options, the best way to know for sure what’s available to you is to shop around and compare.

In other words, there are lenders that are willing to get you a personal loan even if your credit is simply average. You just have to know where to look.

A simple internet search of “personal loans for fair credit” can return thousands of results. That can be overwhelming to go through everything.

But don’t worry.

This guide will provide you a selection of the best personal loans for fair credit. It will also show you ways to fix a fair credit score to a good or excellent credit score.

What is a fair credit score for purposes of getting a personal loan?

Before we offer you a list of personal loans for fair credit, you need to know what a fair credit score is.

A fair credit score, according to Credit Sesame, is a credit score within the range of 640 and 680. It sits “between bad and good credit.”

With an average credit score in the mid 600’s, you more likely to get a personal loan than those who have a poor or bad credit score (which usually ranges between 300 to 600).

But you will not enjoy the same interest rate that someone with an excellent credit score would.

Great interest rates are reserved for people with excellent credit score.

What is a personal loan and what can it be used for?

A personal loan is a lump sum of money you borrow from an institution, and then repay that amount (with interest) over a set period of time.

There are two types of personal loans: secured and unsecured. For example, if you’re taking a personal loan to pay off credit card debts or to go on a vacation, that loan is an unsecured debt.

On the other hand, if you’re taking a personal loan to finance a car, you’ve taken a secured loan that is guaranteed by collateral, which is the car your purchase. 

Unsecured loans have more risks for lenders, because there is no collateral. So, they have to rely solely on your credit history and other aspects of your financial life. That’s why it may be harder to get qualified for an unsecured personal loan with bad or fair credit.

Can I get a personal loan with a fair credit?

The answer is “yes.”

While there are plenty of personal loans for fair credit out there, it’s not always the best idea to apply. One reason is that you’ll often be charged a higher interest rate than someone with a good or excellent credit score. 

In that case, it could be worth raising your credit score first before applying for a personal loan.

So while there are lenders who are willing to offer personal loans to people with fair credit if you’re struggling to get approved for a personal loan with a fair credit, you may want to consider improving your credit score first.

Click to get approved for a personal loan now

5 Best Personal Loans for Fair Credit

The better your credit score, generally the higher your chance is for getting approved for a personal loan.

If you’ve got an average credit, you may still get a loan but you will get a high interest rate.

Check out the list below to see some personal loans you may be eligible for.

1. LendingTree

Part of your search for the best personal loans for fair credit should start with LendingTree.

That is because LendingTree is not a direct lender of personal loans, but instead it’s an online marketplace that matches borrowers to lenders based on your individual qualifications.

It saves you time. Instead of applying to several lenders, with LendingTree you can shop around and compare the best personal loans on one website. It’s an all-in-one platform.

It just connects you with multiple lenders, you can get a personal loan with even a 600 credit score. 

2. Avant

Avant targets people with bad and fair credit. So, that means even if you have a credit score as low as 580, you may still get qualified for a personal loan. The loan amount ranges from $2,000 to $35,000.

Plus, Avant provides quick funding for personal loans.

3. BadCreditLoans.com

Just like Lendingtree.com, BadCreditLoans.com is another online lending network that connects you to a huge selection of lenders.

These lenders specialize in lending personal loans to people with bad or fair credit. You can get a personal loan from up to $5,000.

4. Payoff

Payoff provides loans to borrowers who have a tons of credit card debts. If you have high interest credit card debts, a Payoff loan can help you consolidate them.

While you can get a Payoff personal loan with fair credit, the minimum credit score is around 640, which is on the higher end of a fair credit score.

So if you have a less-than-stellar credit, you may postpone your personal loan application.

5. Prosper

Another peer-to-peer lender to get a personal loan with fair credit is Prosper. With Prosper, not only can you get loan approval the same day, you can also get funding the same day.

But the main downside is that Prosper requires a minimum credit score of 640, which is on the higher end of a fair credit score range.

Other ways to find personal loans for fair credit

When you’re applying for a personal loan, don’t underestimate banks. The options above are online lenders. But banks and credit unions do provide personal loans to people with an average credit.

Banks.

This includes all the major banks, such as Chase, Wells Fargo, Citibank, Bank of America, plus other small banks.

The main benefit of visiting a bank when applying for a personal loan, especially with a fair credit, is that you get to speak with a human being and has the opportunity to explain your financial situation.

For example, you might be able to explain that the reason for an average credit score is due to an unexpected medical bill.

That is not possible with online lenders where it is an automated system that’s reviewing your finances.

It’s even better to get approved for a personal loan even with a fair credit if you have an account with that bank. They can see your transaction history.

The disadvantage, however, is that a bank may not offer the most competitive personal loan rate, especially with a fair credit.

Credit Unions

Part of your search for a personal loan with fair credit should also include credit unions.

Credit unions are not for profit organizations and are more willing to approve you.

But to get access to the best rate, you’ll have to become a member.

Peer-to-peer (P2P) Lenders

Another alternative to banks and credit unions, P2P lenders can provide you with a personal loan even if your credit is average.

For example, LendingClub, a popular P2P, can get you a personal loan with a credit score as low as 600 — which is considered fair credit.

However, your rate may not be as competitive.

Tips to fix a fair credit if you can’t get a personal loan

Holding off applying for a personal loan to improve your fair credit to an excellent one is a good idea.

Not only will you get qualified, but you’ll also get a better interest rate.

Follow these tips to improve your credit score.

1. Get a copy of your credit report

The first step is to obtain a copy of your credit report.

The three main ones to get it from are Transunion, Equifax, and Experian.

By law, you can request a credit report once every 12 months.

But if you want to do so more frequently, you can request it from free credit monitoring services such as Credit Sesame or Credit Karma.

2. Make sure there aren’t any mistakes

Once you get a free copy of your report, make sure there aren’t any inaccurate information or listings.

If you find something that you’re not familiar with, dispute it immediately.

Sometimes it can be a harmless mistake such as a misspelling or an issue that has already been resolved. Some other times, it can be something more serious such as a credit card or a loan taking out in your name.

So it’s important to always check so you’re not a victim of identity fraud.

3. Pay off any credit card debts

Some debts like student loans (as long as you’re not in default) may not have an impact on your credit score.

But if you have outstanding credit card debts, make it a priority to pay them off.

Or at the very least, pay them down until your balance is at or below 30%. That’s called “credit utilization rate,” which is a big factor in calculating your credit score.

4. Pay your bills on time

Nothing will tarnish your credit score like late payments. That is because payment history accounts for 35% of your total credit score.

Before a lender can provide you with a personal loan, (whether you have fair credit or not) they look at your entire credit history.

A late payment history does not look good. It tells them that you’re not responsible with your money. 

So make an effort to pay your bill on time, even if you can only make the minimum payment.

5. Don’t apply for new credit

When you’re improving a fair credit to good credit in order to get a personal loan, the last thing you want to do is to apply for new credit.

That’s because each time you do, you rack up what’s called a “hard inquiry.” Each hard inquiry is recorded on your report. And hard inquiry accounts for 30% of your credit score.

One hard inquiry is nothing to worry about. But when you make several within a short amount of time, you’ll hurt your credit score. It also tells lenders that you are desperate for credit.

Consider a co-signer

While it makes sense to raise your credit score before applying for a personal loan, sometimes you just need the money right away. 

If that’s the case and can’t get approved on your own, then you will need to use a co-signer with good credit.

With a fair credit, using a co-signer should be able to get you qualified for a personal loan.

But, bear in mind that this is a big financial burden you’re putting on them. By accepting to co-sign a loan, they are also responsible to pay off the loan if you cannot. So don’t take it personal if they say “no.”

Summary

Can I get a personal loan with fair credit? The answer is “yes.”  Personal loans for fair credit are available. And the list above have the best personal loans if you have fair credit.While there are several personal loans for fair credit, it’s not always the best idea as you will often charged a higher interest rate and fees. In this case, it makes sense to improve your credit score first before applying.

Click to get approved for a personal loan now

Work with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you save 100k (whether you need it to pay off debt, to invest, to buy a house, or plan for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post 5 Best Personal Loans for Fair Credit for 2020 appeared first on GrowthRapidly.

Source: growthrapidly.com

7 Important Stock Market Lessons to Remember in 2021

No one can predict what the market will do, and 2020 was an excellent example of that. That said, there are some valuable lessons 2020 taught us about investing. Here’s why you should stay the course.No one can predict what the market will do, and 2020 was an excellent example of that. That said, there are some valuable lessons 2020 taught us about investing. Here’s why you should stay the course.

The post 7 Important Stock Market Lessons to Remember in 2021 appeared first on Dough Roller.

Source: doughroller.net

What Is “Accessible Income” on a Credit Card Application?

If you’re applying for a credit card, you might stumble upon this term “accessible income.” In fact, that’s the only situation in which you will come across the term: on a credit card application. So, you need to know what it is.

Accessible income is not just income you earn from your regular job. Rather, it includes much more than that. It includes income from a wide variety of sources, like retirement savings accounts, social security payments, trust funds, just to name a few.

Accessible income can work in your favor because not only you can list income from your job, but also all types of other money you receive in a given year. This in turn will increase your chance of getting approved for the credit card, simply because you can list a higher income.

It also can get you approved for a higher credit limit, which in turn can help your credit score and allow you more spending freedom. In this article, I will explain what accessible income is and the types of income you need to include in your credit card application. Before you start applying for too many credit cards, consult with a financial advisor who can help you develop a plan.

What is accessible income?

Accessible income means all of the money that you have accessed to if you are 21 years old or older. According to the Credit Card Accountability Responsibility and Disclosure Act, lenders are required to offer you credit if you are able to pay your bill. If you do not make enough money and do not receive enough income from other sources and cannot make payments, they can reject your application. That is why they ask for your accessible income.

If you are between the age of 18 and 20, your accessible income is limited to income for your job, scholarships, grants and money from your parents or other people.

However, if you are 21 and older, your accessible income involves way more than that. It includes income from the following sources:

  • Income paychecks
  • Tips
  • Bank checking accounts
  • Savings accounts
  • Income of a spouse
  • Grants, scholarships, and other forms of financial aid
  • Investments income
  • Retirement funds
  • Trust funds
  • Passive income
  • Checks from child support and spousal maintenance
  • Allowances from your parents or grandparents
  • Social security payments or SSI Disability payments

To report that accessible income, just add them all up to arrive at a total and submit it. The credit card companies will not ask you to provide the specific source of each income

What does not count as accessible income

Loans including personal loans, mortgage, auto loans do not count as accessible income simply because they are borrowed money. So, do not list them when submitting your credit card application.

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Accessible income on the credit card application

Accessible income is only associated with credit card applications. In other words, you’re only asked that when you’re applying for credit cards. When applying for a credit card, you should take advantage of all sources of income and not just the income from your job.

So, you should make sure to gather all of the money you have accessed to that year. Not doing so means that you’re leaving other income that is just as important. As mentioned above, you should not include loans or any borrowed money.

When reporting your accessible income, be as accurate and truthful as possible. While some credit card companies may take your word for it, others may ask you to verify your income. In that case, you will need to provide hard proof like pay stubs, bank statements, statement from your investments accounts, etc…

Why providing accessible income important?

Your credit score is the most important factor credit card companies rely on to decide whether to offer you a credit card. However, your income is also important. The higher your income, the better.

A high income means that you’re able to cover debt that you may accumulate on your credit card. And the higher your chance is that they will approve you. The opposite is true. If you have a low income, some credit card companies may not approve you even if you have a good credit score. So, in order to increase your chance, you should take advantage of accessible income.

The bottom line

The only situation where you will find “accessible income” is on a credit card application. Accessible income is all income you have access to in any given year. That includes much more than your paychecks from your regular jobs.

But it also includes all types of money including checks from child support or alimony, allowances from your parents or grandparents, money in your retirement and investment accounts, etc. So, you should take advantage of it when applying for a credit card.

Speak with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post What Is “Accessible Income” on a Credit Card Application? appeared first on GrowthRapidly.

Source: growthrapidly.com