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Personal Loan Works Better than the Credit Card

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Most of us have emergency or other expenses that require quick funds. While many resort to credit cards for these expenses, a better option may exist: the personal loan.

The personal loan is a contract created between a bank, credit union or other lending entity and an individual. It states an amount to be lent to the individual and terms like interest rate and duration of the loan. Because establishing a personal loan requires discussion with a bank or credit union representative, however, many feel intimidated to embark on this kind of funding. This said, the personal loan may be the more financially savvy option in several situations.

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First we want to cover the biggest advantages of using personal loans over credit cards. These include:

1. the personal loan can be “unsecured,” requiring neither collateral (like a credit card) nor a credit card inquiry that can lower credit scores; this said, some personal loans DO require collateral and perform a credit inquiry. Get these items straightened out with a loan agent BEFORE signing the contract;
2. personal loan interest rates are typically lower than credit card rates and negotiation with the loan officer for even lower rates is possible;
3. unlike rates for credit cards, the interest rate stays fixed for the entire repayment period;
4. monthly payments stay even. Credit card payments change as charges accrue.

With the advantages clear, you can determine whether the money you need should be gained through a credit card or personal loan. The following includes the situations that we think make the most sense for a personal loan.

1. Unexpected Income Shortfall
People make errors. Sometimes these fallible people have jobs in payroll and forget to cut checks. The good news is that banks and credit unions issue small personal loans relatively easily, requiring a few pay stubs and the last few months of bank statements. While going to the bank to discuss the situation can be uncomfortable, people in this situation get money within 24 hours when they use convenient online personal loan solutions. Online banking solutions often have lower interest rates and better terms because these alternative lending institutions do not need to satisfy shareholders or spend exorbitant amounts on marketing. As Bill Gates said in the nineties, bricks and mortar banks “dinosaurs.”

People looking to finance an adoption, in vitro fertilization, a cross-country move or other big activity without traditional financing (like a car or RV loan) turn to the personal loan to move life forward at reasonable cost.

2. Consolidating Credit Card Debt to Increase Credit Score
Who wants to pay 19% when they can pay 11%? An 8% difference per year can save the borrower with a $10,000 credit card balance $800 each year or $67 monthly. Fill out our convenient personal loan application. First Financial lenders’ lower loan rates and better terms may surprise you! We have all the security of the big, bricks and mortar banks, namely 128-bit “banking level” security. We have to. The Security and Exchange Commission and other federal institutions demand it.

3. Borrower Prefers or Needs a Fixed Rate and Term
Borrowers (or their parents or spouses) often advocate for the personal loan because it involves making the same payments at the same schedule until the loan is paid off. Credit card rates are variable and could rise several percentage points yearly. Those who make a clear decision about one large purchase appreciate the clarity of paying for it consistently over a limited period of time.

First Financial Personal Loans Provide the Savings only Online Functionality Delivers
First Financial’s lending partners can provide low cost personal loans because of their cost-saving, online structure. Apply for an affordable personal loan here, even if your credit rating is “fair,” “poor” or even “bad.” Our comprehensive application was designed by financial professionals who understand that an applicant’s financial history can be complex, particularly in the post-recession era. Fill out the application in minutes and learn how much you qualify for within 48 hours. Follow First Financial on Facebook to get smart budgeting and saving tips, too!

The Feasibility of Auto Loans: 5 Facts that Reassure Spouses and Parents

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blank If you’ve just heard you can only qualify for a “bad credit” auto loan, know that you are far from alone. More than 50% of Americans today DO NOT fall into the “prime” or “excellent” credit category that wins the best interest rates. Many gasp upon hearing the word “bad” in the description of their only possible auto loan, but rest assured, the bad credit auto loan is simply another category of frequently approved loans.

In fact, in the first quarter of 2014, U.S. banks approved 44% more bad credit auto loans than they did in the same period the previous year. With the economy improving, banks are more willing to take on customers with less cash at hand. (First Financial’s bad credit auto loan has a 93% approval rate.)

With the negative power taken out of the term “bad credit auto loan,” the next step in getting a reliable, attractive car is convincing the spouse or parent who may be co-signing, helping with down payments or monthly payments. We’ve made sure to add all the statistics and links so you can back up your case.

Bad Credit Auto Loan Interest Rates Are Higher But Not Outrageous

. . . and definitely NOT unheard of

Financial talking heads on television or radio can sour your significant other or another important family member on the bad credit auto loans. Sure . . . . those in the prime or “excellent” credit category get the lowest auto loan rates, but paying 7% to 10% or more for an auto loan still keeps reliable, attractive cars affordable.

Further, during some periods of the past 50 years, even those with excellent credit were paying over 10%. Ask a parent or grandparent what they paid for an auto loan at various times. Show them that you have proof that interest rates peaked in 1981 at 16% and only dropped under 10% as recently as 1997.

Getting a Bad Credit Auto Loan Helps You Get to Better Credit

That you make payments on time monthly gets reported to the credit bureau, slowly raising your score over the next months and years. Once your credit inches up into the “fair” category and then even the “good” category, you can consider refinancing at a lower rate.  And all that time you had a reliable car.

More, having reliable transportation to a job is a sure way to get the money needed to be a better bill payer. Many jobs even insist you have your own car. Stress to loved ones that you consider the higher interest bad credit auto loan a temporary fix while you work your way out of a negative credit picture. Maybe landing in the bad credit category taught you some important lessons, mistakes you don’t want to repeat.

Find Out How Much You’re Approved for Fast with First Financial

Banks are now more willing to lend to those whose credit scores dropped below “prime” or excellent . . . 700 or higher at this writing.

Our fast and simple online auto loan application and mobile auto loan application can get you driving within days. Want to get tips on finding the  lowest cost online auto, mortgage, personal loans as well as the loan industry?

Answering: “Why Doesn’t My Bank offer Cash Advances?”

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Question 1:  Why doesn’t my bank offer cash advances?

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Offline, bricks-and-mortar bank don’t see any profit in it. A cash advance is typically for a smaller amount of money: $1,000 or less, for a shorter amount of time: one month or less. By the time you fill out the forms, take the loan officer’s time and absorb the light and heat the bank needs to keep branches open, their profit has dissipated.  Online banks, on the other hand, have automated the process so efficiently, they can stay in business while offering small amounts of money for very short terms. The online banks are now even creating convenient cash advance apps for use on smart phones.

borrower getting cash advance

Question 2:  Does the teller really have a one-time great deal on loans I should consider?

The teller isn’t as interested in what you need as in meeting his or her sales quotas for the month. If you hate the hard-sell, stay out of bank branches at the ends of months or quarters when sales numbers get submitted. All tellers and loan officers are sales people with new account goals set by their managers. They even spend time cold calling in the back office. The tellers get points when they encourage people to apply for a loan with the loan officers waiting in the desks and offices beyond the counters. The loan officers get points for every loan they close. 90% of new teller training is SALES training.

Question 3:  Do I really need all these cards and accounts?

Probably not. Signing up for online bill pay, getting a debit card for a hobby business and setting up free checking all serve to get you more and more entrenched into that bank. In fact, these free/low costs offers are called “sticky.” If you saw a bank offered better rates down the street and wanted to move your account, you may be reluctant because the thought of setting up automatic bill pay, changing the checking to savings instructions on your accounts and getting issued new debit and other cards can feel pretty overwhelming. The more of these “products” tellers get you to accept, the more entangled you are in the bank.

The Smart Financial Consumer

Understanding the motivation behind what your local, brick and mortar bank teller offers can attune you to better offers at alternative financial institutions. Know that you can pick and choose the interest rates, terms and other details from a range of banks depending on what fits into your financial picture at the moment.

3 Ways Online Banks Keep Cash Advances & PayDay Loans Safe & Secure

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blank We bet that, ten years ago, you had at least 3 friends who proudly refused to submit their credit card numbers to online stores like Amazon.com. YOU may have been among them!

We also bet that—today—these same people order all kinds of clothes, books and electronics online. That fact that, back then, they were too careful, too “smart,” to shop with credit online is a distant memory. They may not even admit to being so short-sighted!

These days, people willingly upload all kinds of personal information. The magic of ever-improving “encryption” and other tools enable one consumer to interact with a store on a one-to-one basis, just as if they were standing right at the Macy’s counter. These days, more and more people, too, are turning to cost-effective, convenient online banking for their financial well-being.

Online Banking for Cash Advances and PayDay Loans is Just as Secure as Offline Banking

Because some are still a bit leery of banking over the internet, we’d like to reassure you that even for cash advances and payday loans, banks utilize extensive protections to keep your banking and personal information safe. The following four measures keep critical details private.

Read these to ease your mind about the safety and security of obtaining a cash advance online through your computer or even your smart phone using a cash advance app.

  1. Encryption: turns the written information coming from you (the browser software installed on your computer) into a code that only our online banking technology can crack. The minute you sign on to our financial institution, the software on our end prompts your browser software to establish a “secure session.” Our Cash Advance App uses “banking level encryption” which just means the code is much more difficult to decipher than most. In fact, our 128-bit encryption is at the highest level of security currently allowed by U.S. law.
  2. You stay in control because you can monitor whether or not security measures are working while you’re interacting with the site. Your browser tells you information is being encrypted with either a closed padlock or a key symbol. These symbols generally appear on the bottom of your browser screen.
  3. Online banks have whole teams of internet security professionals running audits to ensure encryption is functioning every hour of the day.

When all you need is a checking account, an email address, an internet connection via smartphone or computer, why not transact your cash advances and payday loans online? Once you are approved, you can handle the details of your cash advance or payday loan from the comfort of your home or office, where you have time to think and review your financial documents if need be.  Online banking is open 24/7, too, making it convenient for you to get cash when you need it and set up the next day for success!

Click, Click, Apply: How to Find Online Car Financing

Click, Click, Apply: How to Find Online Car Financing

Buying a car doesn’t have to be hours of paperwork in a dealership – sometimes you can get online car financing, learn about it here.

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Did you know that you can get online car financing with just a few clicks? Say goodbye to tedious paperwork and a slow approval process with the digital way of getting an auto loan, and drive off in your new set of wheels in no time.

Online financing has made it easy for people to apply for loans. The rates are very competitive, the process is fast, and one of the best thing about such loans is the ability to process bad credit car loans.

In as much as getting a car loan from the comfort of your house sound like a good idea, you need to be careful about who you borrow from. Take your time to find a lender with the best rates, quick approval process, and can accommodate your credit score.

Choosing an Online Auto Finance Company

Just like you took your time to choose the make and model of the car you want, you need to put the same effort when selecting an online auto finance company.

Even though it is possible to apply for an online auto loan with bad credit, you might have to pay a higher interest rate. Make sure you know what you are expected to pay monthly based on your current credit scores, your down payment, loan term, and the much you want to finance.

Here are four tips that you should have in mind:

1. Check for Options

Get quotes from different online lenders. Do not just settle for the first one you come across.

2. Pay Attention to the Fees

Lenders charge many fees that you need to know before settling on one. Be aware of such fees and do not forget to read the fine print so that you do not miss out on anything.

3. How Much Can You Afford?

Stay within your budget. Americans are highly in debt because of auto loans and you do not want to find yourself in this bracket. Therefore, consider all other costs of owning a car such as insurance, maintenance, etc. and factor them in.

Know how much down payment you are required to make and if you can afford it.

4. Your Credit Score

Some lenders do not give bad credit car loans. This means if you have a poor credit score, you need to look for a lender who can be able to accommodate it.

Benefits of Online Car Loans

Getting a car loan from an online lender is a very good option, especially if you have poor credit and need to have a car. There are several benefits of online auto loans:

1. Highly Competitive Interest Rates

Compared to a traditional lender like banks, online auto loans have very competitive rates. This makes it very affordable.

For example, with good credit, the APR on a 60-month car loan can be 2% points higher from a bank than online lenders. It’s a small difference but the interest can add up very fast.

2. Speed and Convenience

The application process for an auto loan is very fast. You can apply for the loan regardless of the time and your location. Some lenders only take 3 minutes to let you know if your application was successful or not.

You can also easily check your auto loan application status online. With this loan, you do not need to go to the dealership to know how much you can afford. You will get to know all that during the application process.

Comparing Online Car Loans

There are so many options to choose from in the market today. However, you want to get a lender who offers not only what you need but also what you can afford.

When comparing online loans, you need to keep in mind that you are going to have a very long relationship with your lender. Therefore, choose to work with a lender that is giving you the best and you are very content with their services.

Here is what you should compare:

Down Payment

Check if the lender can accept a trade-in as part of the down payment. The amount you give as down payment will affect the rates that you will be given and the loan term. Make sure you can afford it.

Application Process

How fast is it? What do they require? A good lender should have a very fast system that can give you an answer in no time.

Documents Needed

Are there any documents that you should send to the lender? Can they be verified online? Remember, online verification saves time, you need a lender who can handle the entire process online.

Total cost

This should be included as the APR. Compare two loans for the same amount given, the fees and interest rates affects the total cost.

Applying for an Online Auto Loan

Even though each lender is different. There are some basic steps that you will need to follow:

  • Find the lender that fits your need
  • Go to their site and select their application page
  • Fill out the application form making sure that you provide all the necessary details
  • Submit your application

Once done, you should be able to get a response within minutes after which. You can check on the loan terms, view the interest rates and any other fees.

You will then sign all the necessary documents and click submit. It is as easy as that. With that, you will be on your way to a dealership, with your financing as your back up and drive off with your new car.

Consider Online Car Financing and Get Your Dream Car Fast

Online car financing is a good option. If you have bad credit, all you need to do is to consider getting a less expensive car. This will make it easy for you to get financing, and manage to pay for the down payment as well as the monthly payments.

We offer online auto loan financing to those who want it irrespective of their credit scores. Check out our website, go to our auto loans page and start the process of applying for your car loan today. We are fast, easy and very professional.

Don’t hesitate to contact us for more information.

6 Advantages of Taking Out a Short-Term Personal Loan with Bad Credit

6 Advantages of Taking Out a Short-Term Personal Loan with Bad Credit

Believe it or not, there are ways that a short-term loan can help improve bad credit. Find out the advantages of taking out short-term personal loan here.

Over 43 million Americans have bad credit.

If you have bad credit, you might think you are stuck in a never-ending cycle. You need good credit to be approved for a loan, but you need to be approved for loans to build your credit.

If you can get approved for a loan, the terms are usually less than favorable.

Fortunately, there are ways to improve your credit quickly and easily. One option is to take out a short-term personal loan.

These types of loans come with many benefits and few disadvantages. They can help build your credit and don’t come with the tradeoffs that bad credit loans usually do.

Keep reading to learn more about the benefits of short-term personal loans.

1. They Improve Bad Credit

Short-term personal loans allow you to have your cake and eat it too.

Most loans that those with less than stellar credit are approved for aren’t worth taking. The cost is often too high to the borrower.

And that’s if you can even get improved.

So if your credit doesn’t qualify you for a loan, how do you build your credit? This is where short-term loans come into play.

Short-term loans are less risky for the lender and the lender can expect to be paid back more quickly than with long-term loans. Short-term personal loans are customizable by the borrower.

This means you can choose a loan that works for you. If you simply want to use this type of loan to improve your credit, you can take out a loan for a few months.

So long as you repay the loan within the agreed-upon time frame, your credit score will improve.

2. You’ll Save on Interest

For the most part, short-term loans will save you money.

When you have a long-term loan, you end up paying more interest. This is simply because you will be paying interest for such a long time.

With short-term loans, you pay back the loan in a much shorter amount of time. This means you’ll pay less interest.

Even if the interest rate for the short-term loan is higher because of your bad credit, the interest paid will be less in the big picture because of the shorter time paying interest.

The loan amount might also be smaller, meaning the interest paid will be less. Short-term personal loans usually have much lower interest rates than credit cards.

3. Ease of Access

If you need a loan quickly, a short-term personal loan is the loan for you.

They are similar to payday loans in the fact that they are usually approved within just hours. Waiting to find out whether you will qualify for a loan can be torture, especially if you aren’t sure if your credit score will measure up.

While it depends on your lender, in most cases you will receive your funds either the same day or the next business day. This offers a level of convenience that is unique to the type of loan.

Short-term personal loans offer convenience and flexibility to the borrower. As mentioned above, the loans can be customized to fit your individual needs.

Most lenders are online and you can access their website 24/7. This means you can apply for a loan at any time and from anywhere.

4. Reduced Stress

Short-term loans are significantly less stressful than long-term ones.

You will avoid the dread of viewing your statements and continuously accruing interest for years at a time. Instead, you’ll see your loan being paid off quickly, boosting your confidence and your credit score.

When you have a long-term loan, the end is often not in sight. It’s easy for the looming loan to cause emotional stress.

Watching the interest accrue month after month and year after year can be downright torture. Even if you are making the minimum payment each month, you are barely making a dent in the principle.

Short-term loans avoid this problem and instead offer satisfaction upon repayment.

5. Less Risk

With short-term personal loans, you’ll know exactly how much you owe each month and for how long you will need to make payments.

These loans are sometimes offered unsecured as well. This means that you won’t have to put up collateral.

Common forms of collateral include personal assets like your home or car. Instead, your credit history and credit score will be enough for your lender.

If you have bad credit, you might be required to put up collateral. However, short-term loans are much easier to manage.

There is less risk of things getting out of control and you not being able to pay back the loan. As mentioned above, it’s easier to keep interest in check with short-term loans.

Therefore, your assets are at less risk. If you do end up going with a secured loan, you will have access to more favorable terms and lower interest rates.

6. Flexibility

Short-term personal loans offer you more time to pay than other fast cash options.

Payday loans, for example, have much shorter payback time frames. With short-term loans, you can set the repayment time frame so that it works with your life’s schedule.

You will also have more flexibility when it comes to choosing the amount of the loan. Borrowing limits are often significantly higher than you could borrow using a credit card.

Apply for a Short-Term Personal Loan Today

If you are looking to secure a loan with bad credit or improve your credit score, considering applying for a short-term personal loan. Your loan will help you establish good financial habits.

Click here to start your application to see if you qualify.

First Financial

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