Business loan requirements and applications are not standardized. However, lenders tend to look at certain metrics when deciding if your business is performing well enough to receive a business loan. Business loans tend to have a low approval rate. Big banks only approved 14.2 percent of small business loan requests in February 2023, according to Biz2Credit. But you may help your odds by knowing what you will …
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What Is a Fair Credit Score?
In the eyes of lenders, your creditworthiness is measured by your credit score. Lenders use this three-digit score to determine how likely you are to repay your debts, and therefore, how risky a borrower you are. Those with higher credit scores reap the rewards, like a low or zero-percent interest rate, higher credit limits and lower monthly payments. But what …
Read More »What Is Mortgage Forbearance?
Mortgage forbearance allows homeowners facing financial hardship to put their payments on pause for a set period of time. Here’s what you should know about mortgage forbearance, in case you need to weather a future financial crisis. What Is Mortgage Forbearance? Mortgage forbearance is when a lender allows a borrower to temporarily stop making payments. When you’re approved for a …
Read More »What Is an Annual Percentage Rate on a Personal Loan?
The term “annual percentage rate” is commonly used for lending products such as mortgages, credit cards and personal loans. The APR for a personal loan is the combined total of the interest rate plus the origination fee, calculated on a yearly basis and expressed as a percentage. If there are no fees, the APR equals the interest rate. How does …
Read More »What Is Loan Modification?
Loan modifications are most common for secured loans, such as mortgages, but you may also be able to modify other types of loans. That could include personal loans or student loans. A loan modification can relieve some of the financial pressure you feel by lowering your monthly payments and stopping collection activity. But loan modifications are not foolproof. They could …
Read More »What Is A Loan?
A loan takes place when a lender, like a traditional bank or online lender, extends a set amount of cash to a borrower. In exchange, the borrower agrees to repay the loan at a specified interest rate over the course of a set loan term. Whether you’re considering a small personal loan or a larger loan to purchase a home or vehicle, …
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