What Are the Main Differences Between Title Loans and Personal Loans

Title and personal loans are the two most common loan options that people would consider. They are two different types of loans with title loan being a secured loan and personal loan being an unsecured loan. Title loan as it name says requires your car title as collateral. The amount you can borrow will be based on the value of the car in the market.

Since you are already using your car as collateral, the lender will have no need to look at your credit score and you don’t need to produce a payslip for income proof. Since the lender will not perform any background check, you can get approved no matter what type of credit you have. In title loan, the car’s title will be in the possession of the lender until you fully clear of the loan amount. You will still be able to use your car to do your daily chores after the title loan gets approved.

Title loans are short term loans and usually, must be repaid within a one month period. They usually have high-interest rates that can reach up to 300%. Some lenders allow you to extend the loan period to give you more time to pay off the loan at additional fees. Before the title loan can be approved, the lender will come over to your house to appraise the vehicle. The process of the vehicle appraisal usually just takes a few minutes.

Personal loan, on the other hand, requires you to show proof of income and you must have an acceptable credit score to get approved. They want to make sure that your job is bringing in enough income so that you will be able to repay the loan. Nowadays, if you find it hard to get a loan from the bank, you have the alternative of going online to obtain the personal loans.

Online personal loans have much cheaper interest rate and lower credit score requirement. It is even possible for you to get a personal loan if you have a bad credit rating or in a post bankruptcy situation. Unlike title loans, you don’t have to show up in person to the lender. The P2P loan is an example of a personal loan that allows you to apply for a loan anonymously without having to reveal your identity.

A title loan is for those who don’t have income proof and good credit score but have a car that can be used as a security deposit. A personal loan is for those who have a stable income proof for 3 – 6 months as well as a credit score that is good enough for them to get approved by the lender. No matter whether you decide to get a title or personal loan, make sure that you have the funds to pay back before applying.

The Top 3 Lenders Who Offer Personal Loans for Borrowers with Excellent Credit Scores

Keeping your credit report clean with excellent credit score allows you to easily qualify for loans with low interest rates from premium lenders. The low interest rates lightens your burden in making repayment every month and it also allow you to quickly pay off the loan within a short period. The following are the top 3 lenders that offer personal loans for borrowers with excellent credit rating on their credit reports.

1. SoFi
SoFi, also known as Social Finance, offers high limit personal loans for people with excellent credit score. The minimum loan amount that you can apply is $5,000. You can apply for a loan of up to $100,000 at SoFi. SoFi loans are available on a fixed or variable interest rate basis. Fixed loans have an interest rate range in between 5.99% – 12.99% while variable loans features an interest rate in between 4.74% – 14.95%. You can choose from 3 repayment terms including 3, 5 and 7 years. SoFi loans do not have any type of fees including origination, closing and early repayment fees. SoFi loans are opened to residents in 47 states. It features an unemployment protection program that gives you the ability to temporarily suspend the loan payment when you are not under employment.

2. Earnest

Earnest provides affordable loans for borrowers who are financially responsible and have excellent credit score. The APR interest rate of Earnest loans is relatively low starting from 5.25% and capped at 12%. Borrowers can apply for a loan amount of in between $2,000 up to $50,000 with 1 – 3 years repayment terms to choose from. Earnest loans are opened to residents in 36 states in the USA. People in Washington D.C. can also apply for Earnest loans. After the loan is approved, the funds will be released to you in 7 days. Earnest charges a return payment fee of $8 and a stamp tax of 0.35% Florida residents who apply for the loan. No origination or repayment fees are charged.

3. LightStream
Light Stream offers personal loans starting from $5,000 – $100,000 specifically for borrowers that have excellent credit scores. The APR interest rate for LightStream loans ranges from 2.19% – 17.49% and the repayment terms is in between 2 -7 years. LightStream releases the funds faster than P2P lenders and borrowers whose loans have been approved can usually receive the funds in 1 business day. LightStream has strict requirements. To be eligible for LightStream loan, you not only must have excellent credit score and good income but they will also evaluate other aspects of your financial health like assets worth, savings history and debt to income ratio. If you depend on a family member for income, they will require you to apply for a joint loan.

Saving Money On Food and Other Household Items In 2015

We started to discuss ways to save, but the ideas in the first part of this series are just the tip of the ice berg, the appetizer if you will. There are plenty of ways to skin a cat as the old adage goes and this applies to saving money as well. Hat being said here are some more practical tips to help aide and assist you in reaching your savings goals in 2015.

When it comes to food we often over spend. Food is a weakness in America and can wreck havoc on our budgets. Here are some tips to help control our food expenditures and help us save money.

Eat out less:

This month do not change anything. What I need you to do is to put each and every receipt for eating out into an envelope. On the first of next month add all of these up, you may be surprised at how much they add up to. Eating out at a restaurant usually costs between $20 and $30, if you could cut just one of these eating out nights out you could easily about $300 per year, if you cut out eating out 2 times per month could save as much as $600 per year.

Never shop hungry:

When we go to the supermarket hungry our mind plays tricks on us, we see all of this great food and throw it into our carts. Eat before you go shopping to curb impulse spending at the supermarket.

Pack lunches:
if you eat out at work you are throwing away a lot of money every year. If you pack your lunch you can save at least $2.50 per day which means by the end of the year you have saved about $650!

Cappuccino or latte VS coffee:
You can save a ton per year by drinking coffee instead of cappuccino or latte. You can save at least 2 dollars per day by buying coffee instead of the more expensive drinks. This amounts to at least a $730 per year savings.

Grocery Lists:
When you do go food shopping stick to a prepared list of food to buy. Meal planning helps here. When you go shopping with a list you spend less money shopping then those who pick out food on the spur of the moment. Meal planning also helps cut down on food waste, ever go buying vegetables on the fly and a week later find half of them rotted? Your annual savings can range from $500 to $1500 with ease by using a list when shopping.


using coupons can easily save you over $1000 per year. Many people think of coupons as only something for poor people, nothing could be further from the truth. Coupons can be found in your local Sunday paper and in your mail box. You can also search for the brands you use with the word “Coupon” in the search engines and seek out coupons this way, although you will need to print these out. Use black and white ink to print out these coupons,

Comparison shopping or deal hunting:
Brand and store loyalty can be nice but it can hurt your pocket book. Even if you prefer one store over another try and look at the overall picture here, if you are paying $4.50 for organic eggs and $3.50 for a gallon of milk at one store but the store across the street has the same thing for $3.50 and $2.75 you will save money by buying those other items at the second store, Consumers who use 2 to 3 supermarkets to deal hunt can save upwards of $2500 per year.

Tips For Saving Money and Building Wealth in 2015 and Beyond

Saving for a home, car, children, college or retirement
Americans are not saving enough for the future. Just this year, statistics showed that our savings rates are still hovering near historical lows. Not only are we spending more than we earn, our savings rates are at the lowest point since the Great Depression. And we are not alone: this reduced savings trend can also be seen in Australia, Canada, Japan and Italy.

Why is this happening? Some experts point to the availability of affordable credit and the relatively high number of people who have most of their money invested in their homes. Whatever the reason, it is clear that we should be saving more.

The first step is to set up a short term savings account with enough money to cover all your expenses for at least three months. This account will help you handle the day-to-day emergencies and expenses. Online high-yield savings accounts from companies like (WellsFargo, AllyBank, Comerica) can help get you started in their right direction..

Your next step is to think about your long term savings goals.

CNN has a a great website with tons of good article s on personal finance, debt reduction and general financing tips. The website is dedicated to helping you plan for future home, automotive, children, college and retirement expenses. On this website you can use free interactive planning tools, share your story, read articles and access planning calculators. Mint.com also offers easy-to-use calculators to help you evaluate your savings, college planning, monthly spending, cost of raising children and need for disability insurance.

How do your savings measure up? Are you doing enough to prepare for retirement and other long term expenses? Share your feedback and opinion in the comments section below

Keeping Up With Escalating Health Care Costs A Major Challenge in 2015

One of the leading causes cited by consumers filing for bankruptcy is inability to pay expensive medical bills. A recent international survey shows why this may be the case. According to the report published by the Washington Post, Americans patients spend the most for their health care :

Nearly a third of U.S. patients reported spending more than $1,000 in out-of-pocket expenses for their care, far outpacing all other nations. Canadians and Australians came next, with only 14 percent of patients spending that much.

In addition to these expenses, Americans are most likely to refuse medical assistance for financial reasons:
Americans were also much more likely to report forgoing needed treatment because of cost. About half of Americans said they had decided not to fill a prescription, see a doctor when they were sick or get recommended follow-up tests. About 38 percent of patients in New Zealand reported going without care, as did 34 percent in Australia, 28 percent in Germany, 26 percent in Canada and 13 percent in Britain.

The moral to this story? It pays big to be prepared for medical expenses. Even though it can be expensive, medical insurance coverage is much cheaper than the high costs of paying for medical treatment on your own. A simple visit to an emergency room for a broken bone can cost you thousands without insurance. Establishing an emergency savings account and having access to credit cards are two additional preparations everyone should make. You can also consider opening a health savings account that allows you to pay for your medical bills pre-tax.

Natural Disasters Can Create Financial Hardships To Families and Businesses Alike

If you live anywhere that is prone to natural disasters, it is important to know all about the insurance coverage that you maintain, as well as ways to cut the costs. Flooding, wildfires, and even earthquakes can cause irreparable damage to homes if they aren’t insured.

As a general rule, all homeowners should look into flood coverage and even earthquake coverage. These instances are not covered under your basic homeowner’s insurance policy. Find out if your area is susceptible to these disasters and plan and insure your property accordingly.

The USAA has even taken some precautionary steps to eliminate the risk of damage to homes due to wildfires. In the state of California, policyholders that are active in the national Firewise/ USA program can actually receive about a 5 percent discount on their insurance premiums; but only if you have renewed your policy or one has been issued on or after the first of October 2014.

This program was brought to fruition by the National Fire Protection Association, and they have created a five step plan for wildfire safety for homeowners. This discounted price is only available to USAA policyholders who live in the areas that participate in the program, and you can find out if your community is an active member by checking out their website at www.firewise.org.

There are fourteen states that are prone to wildfires, and if you live in one of these states and are a member of USAA, then you will be taken care of when it comes to wildfire safety. The USAA has contracted with the Wildfire Defense Systems to come up with a program that monitors wildfire activity and can help protect the property when an active fire is nearby.

The Wildfire Defense Systems sends firefighters behind the lines of the fire, with the commanders permission of course, and from there they assess the risk and begin to help putting it out. This comes at no extra cost to you, because once you have enrolled in the program, you don’t have to take any further precautions.

Also, hurricanes do plenty of damage to coastal areas each year. If you reside in a coastal area then your property is considered high risk; meaning that insurance companies often will require a hurricane or wind deductible. This does vary from state to state and from company to company, so it is always in your best interest to check with your insurance agent and make sure that you are fully aware of what your policy entails.

When dealing with a disaster on your property, you have to pay an out of pocket fee before the coverage kicks in. This is called a deductible, and if you choose a higher amount deductible than you will pay a lower price for premiums.

Say your property undergoes a fire, your deductible could be anywhere from $500 to $1,000. But because there were previous losses, the deductibles for hurricane and wind coverage are calculated differently and the homeowner is left to foot most of the bill.

Did you know that hurricane and wind deductibles can range as high as 5% of a home’s value? That means if your home is $250,000, you would be paying a $12,500 deductible.
These types of deductibles only come into effect when certain circumstances are met, such as a very strong storm making landfall. These criteria vary by state and company. In a lot of coastal states, insurance companies may offer policyholders the option of paying a higher premium which will then lower the deductible. Actually, due to hurricane deductibles, more private insurance has become available in coastal cities and it has made for a more competitive market.

There are 19 states that currently maintain hurricane deductibles, and these are sponsored solely by the insurance industry. Accompanied by the District of Columbia, the states are Maine, Maryland, Louisiana, Georgia, Hawaii, North Carolina, Alabama, Texas, Rhode Island, Massachusetts, Mississippi, Pennsylvania, South Carolina, Virginia, Connecticut, Delaware, New Jersey, Florida, and New York.