Loans

Before you get a personal loan from an online lender, make sure you know about the pros and cons. Getting a personal loan used to be a more complicated process. Applicants had to look up lenders, visit their offices in person with the required documents, and fill out a paper application. Nowadays, it has gotten much simpler thanks to online …

What Is the Debt-to-Income (DTI) Ratio? The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk. KEY TAKEAWAYS The debt-to-income (DTI) ratio measures the amount of income a person or organization generates in order to service a debt. A DTI …

If you have a 401(k) plan through your employer and are in need of funds, you may be able to take a 401(k) loan. Borrowing from your 401(k) could provide a path to financial assistance without having to contact other lenders. However, there are also complex 401(k) loan rules and potential drawbacks to consider. To take out a 401(k) loan, you’ll want …

Consumers who checked their credit reports last year apparently found plenty that looked wrong. Complaints to the Consumer Financial Protection Bureau about credit reporting nearly doubled in 2022 from 2021, according to a report by the U.S. Public Interest Research Group, an advocacy organization. Issues with your credit report can hurt your credit score, which affects your ability to qualify for …

You may take out a loan, fully intending to pay it back, but then the unexpected happens: You default, failing to repay your debt. Even responsible borrowers can default on loans. Job loss, lost wages and other blows can lead to loan defaults, as can unexpected events, such as the coronavirus pandemic. The COVID-19 crisis caused financial hardship, and many homeowners …

Payday and emergency loans are often predatory lending methods that allow you to get the cash you need quickly. While this almost-instant cash flow can seem enticing, they often come with exorbitant interest rates that can leave you trapped in a debt-cycle for years. There are safer options to borrow the money you need. Before signing on the dotted line, research every …

Student loan refinancing is when you take out a new private student loan to repay one or more existing student loans. Borrowers may choose to refinance student loan debt in order to lower the interest rate, reduce their monthly payments or pay off debt faster. Refinancing student loans can save you money during repayment, but it’s not a good strategy …

Payday loans are generally short-term loans for small amounts of money in which the payment is due on your next payday. In the U.S. 37 states regulate payday loans. Legal maximums, in states that enforce them, typically range from $500 to $1,000. Payday loans are marketed as a bridge between paychecks. But they come with high fees that translate to …

Debt consolidation can help you save money on interest and get out of debt faster, but it doesn’t always work as planned. In a recent U.S. News survey of consumers who have borrowed a debt consolidation loan, more than a third regret doing so. Nearly as many say their finances haven’t improved since they consolidated their debt. Here are some of the …

A foreclosure can mar your credit report for seven years from the date of your first missed payment. During that time, it can affect your credit score and the way other lenders view your creditworthiness in the future. If you’re struggling with your mortgage payments, it’s important to understand the foreclosure process, steps you can take to avoid it and what …