Entries by Miron Lulic

LoanNow: No Prepayment Penalties

No Good Deed Goes Unpunished

On the other hand, many borrowers are shocked to discover that they’ve been punished for paying more than their designated monthly installments or paying off the entire balance before the final due date. That’s because many lenders assess stiff prepayment penalties. That’s right – a penalty for attempting to settle your debt early.

You may be thinking that such fees don’t make sense. And you’re right.

But for lenders that charge prepayment fees – they make perfect sense. After all, by paying your loan off early, you reduce the amount of interest you’re charged, thereby … Read full article..

How To Build Your Credit Score Fast

Building good credit is super important – someone with a good credit score can save over $100,000 over the lifetime of their mortgage just by having good credit. But building credit can also be a little bit tricky. You need credit to build credit, but without credit, it’s hard to get credit (say that five times fast!). But there are definitely some clear ways to work your way up to an excellent credit score.

What is good credit?

So, what is good credit?

First it is important to understand exactly what “good” credit is. Credit scores range from a low of 300 up to … Read full article..

Bank Overdraft Policy Reform Is Overdue

Quickly – what lending product can charge 10x the average payday loan APR, yet makes up a 4x larger market? Give up? Bank overdraft fees.

That’s right. Nearly five years after federal rules designed to protect consumers went into effect, banks are still raking in the fees. And while strong progress to improve consumer safeguards and combat predatory lending across the board, banks seem to be getting overlooked as the proverbial wolves in sheep’s clothing.

Where Do Overdrafts Come From?

Overdrafts are a relatively new form of short-term credit that is touted by some of the most venerable and respectable … Read full article..

LoanNow Unveils Group-Signing at Finovate Spring 2015

This month we were honored to present at Finovate’s annual event in Silicon Valley.  For those unfamiliar with Finovate, it’s the premier event for showcasing the latest, most innovative developments in financial service technology.  A writer from the Wall Street Journal described it well by saying, “For finance nerds, Finovate is the Super Bowl and World’s Fair rolled into one.”

Start-ups such as Mint, Credit Karma and Prosper as well as industry powerhouses such Visa, Google and PayPal are among the hundreds of companies that have debuted their game-changing innovations at Finovate over the years.

Needless to say, we … Read full article..

LoanNow Launches Group-Signing

We are very excited to formally introduce Group-Signing today. This new feature is the first of many ways we are working hard to save people money on a loan. Group-Signing allows anyone with a LoanNow loan to cut their interest by as much as half – while they’re still paying on the loan.

By recruiting friends and family to pledge as little as $25 in support of your loan, you can prove your creditworthiness. This helps us reduce our risk in lending to you, and we pass that savings and peace of mind along as loan credits for you. Read … Read full article..

10 Tips For Getting Personal Loans For People with Bad Credit

Having bad credit — also know as sub-prime credit — is indeed a substantial, and unfortunately common, barrier to obtaining a personal loan.  But it’s not necessarily an insurmountable hurdle.

Here are a few tips on improving your chances at securing a personal loan despite a poor credit score:

1. Make Sure Your Credit Reports are Accurate & Up-to-Date.

It’s human nature to want to avoid unenjoyable activities, and going over your credit report line-by-line when you have bad credit is about as fun as stepping on a scale after Thanksgiving dinner.

That said, it’s a very import step to … Read full article..

5 Reasons Why A Personal Loan Is Better Than The Alternative

There are so many types of loans to choose from, finding the best type of loan for your needs can be a challenge. Loans are not a one-size-fits-all product and the best loan type for you will depend on personal factors, such as your risk tolerance, income, objectives and your credit history.

When evaluating what type of loan to take out, some people forget to consider personal loans.  This is unfortunate because personal loans offer many advantages, particularly for borrowers with less-than-prime credit scores.  Topping the list of advantages is the fact that they tend to provide a much safer … Read full article..

The Challenges of Building A Payday Loan Alternative

Every year, about $50 billion is funneled into the coffers of payday lenders, according to stats from the Online Lenders Alliance. These lenders provide a life-line to approximately 12 million Americans who would otherwise not have access to credit in times of need. The problem is, these loans perpetuate an expensive cycle of fees that trap many borrowers.

Who are payday loan borrowers?

According to the Federal Deposit Insurance Corp.’s latest National Survey of Unbanked and Underbanked Households released October 2014 [PDF] , roughly 34 million households, representing 68 million adults, had limited or no participation in the … Read full article..

History of Payday Loans

Before the 1980’s, payday loans were very rare within the United States. This is not to say that predatory lenders did not exist. So called loan sharks have been around since the Great Depression. And pawn shops have long been the lender of last resort for many people who have found themselves out of work or otherwise down on their luck.

These days, payday lenders promote their trade on every form of media, including television commercials featuring celebrities and internet ads. For desperate individuals, receiving cash overnight with few questions asked can seem like the answer to their prayers. But … Read full article..

How do payday loans work?

Your car needs a new transmission, or one of your kids is sick and needs to see a doctor. But you’re broke – and payday is more than a week away. If you aren’t able to borrow from family or friends, and you don’t have credit cards from which you can take cash advances, you may wonder where you can obtain cash to deal with emergency situations like these.

No problem. Simply search online for an online payday lender or make the trip to your local payday loan store. Either way, you can obtain the cash you need, either through … Read full article..

Failed to make car loan payments? Here’s what to do.

Meet Joe

Joe was sitting in the passenger seat of his friend’s car August 2, 2013. As they approached a random Montgomery Illinois intersection, they chatted about sports and work. Neither of them had any inclination about what was going to happen next.

Their vehicle buckled from the impact as it swung around 180 degrees. Glass shattered around them as their bodies ricocheted around the car’s interior. A moment after the car came to a halt, Joe realized that they had just been violently t-boned by a pickup truck who ran a red light. He tried to move his legs Read full article..

How To Get A Car Loan For People With Bad Credit

Meet Mary:

Mary is the single mother of three young children who often struggles with everyday financial challenges, and at times wonders how she will put the next meal on the table. This wasn’t always the case though. Her marriage seemed to be a happy one: the house, the kids, the minivan, two dogs, all living in their happy little suburban world. It was the picture perfect definition of today’s successful, middle-class family.

After 14 years of marriage, Mary thought she knew her husband well. But it turned out that her husband had a secret that would turn this happy … Read full article..

How To Detect & Avoid Personal Loan Scams

If you’re strapped for cash, the offer of a personal loan may seem like just the break you need to hold you over, particularly if your credit is not so great. But be careful. Fraudsters use the frustration and desperation of those with cash and credit problems to trick them into sophisticated personal loan scams.

There are a handful of common personal loan frauds to be aware of. Of course, there are some tell-tale signs that separate the scams from the real deal. Below is an overview of some common scams and some red flags that are a dead giveaway.… Read full article..

The Problem With Payday Loans

What exactly is a payday loan? 

A payday loan is a small, short-term (usually 2-4 weeks) unsecured loan with repayment usually linked to a borrower’s payday. Each year over 12 million Americans take out predatory payday loans that have hidden interest rates that are 339% on average, but can exceed 1000%.  These extreme interest rates are often hidden in fees that come along with these loans. For example, a $100 payday loan might carry a $15 fee with a repayment time of ten days. When you do the math, the annual percentage rate is 547.50%.

What are they using their Read full article..