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How to Apply for a Personal Loan

How to Apply for a Personal Loan

Personal loans are usually taken for personal needs or for an emergency. Since it is a significant amount and time, this can be a big financial decision. So, it is vital to ensure you go to the right organization or financial institute and know the processes beforehand. Here are a few things to keep in mind before you make up your mind, sign any contracts, and start paying your monthly installments.

Calculate everything
Before going to any of the lenders, always make sure that you have run the numbers to get a personal loan and are in the position to pay that money back. Lenders are simply interested in your ability to pay the loan back. So, even though these banks do their due diligence in background checks and calculations, being prepared beforehand goes a long way. Make sure you have understood what amount needs to be put down first and then the monthly installments which you can afford. Some organizations also have a processing fee apart from the interest on the loan, so keep these extra numbers in mind.

Check your credit score
This is one of the most important factors that determine your ability to get a loan. A credit score suggests your financial history with paying loans and bills. So, the better the score, the better chances you have of getting a personal loan. A reasonable or fair credit score lies between 580 and 669; however, if your score is higher than that, you are in the clear and have the best chance of getting a personal loan. What if the credit score is low for some reason? Well, there’s still a chance you get your personal loan but with a higher interest rate and fee. So, check all your options before you give up.

Look for other options
Sometimes, if the credit score is low, the bank or private lender may ask you to co-sign a loan with someone. In case there is no right person to co-sign the loan with you, you can also opt for secured personal loans instead of unsecured options. What this means is that you will have to provide some collateral against the loan amount; it could be your car, house, any other belongings, or even cash in a savings account. If you are unable to pay the loan off, the bank will seize your collateral. Also, getting personal loans from a traditional bank may be challenging if your credit score is terrible, so you can browse through some online lenders in your area who are trustworthy and work with those whose credit score is not up to the mark. Just ensure you do your due diligence to ensure they are not fraudsters.

Choose the right loan type

Debt consolidation loan
This is one of the more common loan types. A debt consolidation loan means getting money to pay off existing debt, but at a potentially revised interest rate and probably fewer monthly payments.
Credit card refinancing loan
A lot of people get personal loans to pay off their credit card debt because the interest rate is much lesser. This can be especially useful if your debt has accumulated and you want to avoid the high-interest rates on it.
Wedding loan
Get personal loans for weddings or even holidays when you cannot pay in one go. These significant events can be costly, and personal loans make it easier to pay off an amount in monthly installments.
Emergency loan
Small medical expenses, home improvement needs, or even expensive car repairs can be covered under an emergency loan.
Home improvement loan
This is specifically for big home improvement projects that require extensive renovation. Getting this personal loan gets you out of the bind without having to take a secured home equity loan which might be more expensive.
Medical loan
Specifically for medical emergencies, this type of loan helps ease the burden of unpredictable medical expenses. You can pay off these personal loans over several years.

Find the best option
Just as you shop around for the best deal on any commodity or service, finding the best option to get a personal loan is also advised. If you think all companies will give you the same offer, you are mistaken. You can find personal loan offers from various entities like traditional banks, online lenders, and credit unions. However, all financial organizations have different processes and procedures. Check all these options and see which fits your needs the best and who is giving you the best chance to pay off the loan in a hassle-free manner.

Fill out the application
Once you have chosen your personal loan lender, you can start the application process. Depending on which entity you have chosen as your lender, you can either finish the whole process online or visit the nearest bank that offers the loan. Since all vendors work differently, they may need various documents, so it is always advisable to meet an executive in person to get a better understanding of the application process. Besides, if you are working with this lender for the first time, it is always better to ensure where their office is located in case of any emergency.

After presenting all the documentation and going through the screening process and background check, you can now get your personal loan for your needs. Make sure to read the fine print and understand all the terms and conditions of your contract. This includes the rate of interest, the years through which you can pay your loan, and your registration fee. To avoid any late payments, you can also set up an auto-debit format that transfers the monthly installment to the lender’s bank account on a particular date every month.

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Top 4 Car Insurance Companies for Seniors

Car insurance is mandatory for all drivers, and while senior citizens may not get behind the wheel as often as they used to, auto insurance for them too is a mandate. Insurance companies offer special discounts, tailored policies, and perks for senior drivers who might not want to use their car often. Mature drivers can compare and choose best priced car insurance plans from insurance companies that offer them. Best car insurance for seniors  These four companies offer the best combination of affordable premiums, senior-specific discounts, and exclusive policies to save money on car insurance. Nationwide® Nationwide® car insurance rates are 21% lower than the national average for drivers over 60. For a cheaper premium, the insurance company pays for all liabilities related to bodily injury, personal injury, property damage, uninsured/underinsured motorist protection, treatments, and comprehensive collision coverage. Nationwide® also ensures quality customer service, a grievance-free claims handling process, and ranks among the top vendors for customer loyalty. One of the company's key highlights is the SmartMiles program beneficial for senior drivers with limited mileage after retirement. The yearly car insurance premiums are calculated based on the total number of miles driven with SmartMiles. This policy, available in 40 states, is suitable for seniors who commute less than 12,000 miles per year and can still afford to pay for car insurance after retirement. Overall, the estimated savings with Nationwide® can go upwards of $400 each year, given seniors meet all the driving criteria specified by the company. GEICO Due to competitively lower rates, GEICO ranks among the popular picks in best car insurance for seniors. Drivers between the ages of 65 and 85 can benefit exclusively from additional discounts. One of the key highlights of the policy is the guaranteed renewal program. Policyholders aged 50 and above qualify for the renewal program and may avail of the Prime Time contract features. For this contract, the company specifies that policyholders cannot have any operators/drivers below 25 for the insured vehicle. They should not have been involved in violations or accidents in the three years prior to application with GEICO. But this contract is currently available in only 30 states. Policies also cover accident forgiveness and feature innovative usage-based insurance for good drivers with a clean driving record. GEICO offers exclusive discounts for careful driving habits, retired government & military personnel, and owners with multiple vehicles using the same policy. State Farm® State Farm® is a more lenient option for commuters who may not have a clean driving record. Key highlights of the insurance include a usage-based policy and decent rates for drivers with DUI (driving under the influence) violations. Senior drivers with prior speeding records or driving offenses can also benefit from better rates for insurance premiums. Policyholders earn exclusive discounts and rewards with the company’s patented Drive Safe & Save™ program. Download the app and let the company actively monitor driving and overall performance. Those who match the criteria can save up to 30% on auto insurance rates for the year. Senior drivers with good credit enjoy excellent policy renewal scores and pay 22%-24% less insurance premiums than the national average. State Farm® operates in all 50 states, making it one of the best car insurance for seniors. Allstate® Seniors can save a lot on the best-priced car insurance policies with Allstate®. The company is the fourth largest auto insurance provider in the business. Allstate® also ranks among the best for customer service and claims handling processes. One of the key highlights is the pay-per-mile insurance policy that allows seniors to get affordable rates as per the number of miles driven in a year. The Drivewise® program monitors daily driving habits and provides the insurance company with on-time updates. Also, seniors with the best driving score and a good driving record can avail of low premiums. Allstate® offers addons, including accident forgiveness that prevents a premium increase and features loan or lease gap insurance. It also has an exclusive app that lets all policyholders review their profile, make payments, and monitor insurance status on the go. How to choose from the best car insurance for seniors Since most insurance companies offer various senior discounts and special deals to lower the premium rates, it can be challenging to make a choice. So here we've listed a few things you can consider to make the right choice and get competitive rates. Update driver status online After retirement, seniors should update their status from regular commuters to driving only for leisure. Insurance companies offer unique low-mileage plans or pay-per-mile policies for seniors who drive a limited number of miles in any given year. This detail can be updated while requesting quotes online. Learn defensive driving Some states, by mandate, require seniors to learn defensive driving. Drivers over the age of 50 can benefit from lowered premium rates and enjoy exclusive discounts on the quotes for qualifying for this eligibility criterion. Seniors can consider courses offered by AAA and AARP and spend no more than $20 for the short refresher course. Maintain a proper driving record The number of traffic violations and even accidents determines how much of an insurance risk seniors pose. Having a clean record with minimal infractions increases the chances of getting affordable premiums. Those who have multiple priors should alternatively consider applying to insurance companies that offer policies for average drivers. Compare multiple insurance companies Seniors must compare premium rates and check available discounts across top insurance providers in the country. It may so happen that a company may offer reasonable rates but no special discounts for seniors. Understand that insurance quotes are subject to changes deemed fit and necessary by the insurance provider. Please check and read all contract terms before giving any consent.

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Reasons to Pick AARP’s Whole Life Insurance Policy

The American Association of Retired Persons or AARP, is a non-profit organization committed to bettering the lives of its members at local, state, and national levels. It offers life insurance policies underwritten by New York Life Insurance Company. AARP provides applicants with fast approval of policies without having to undergo a number of health tests. If you are intrigued, here is more about the whole life insurance policies and more available to AARP members. AARP Whole Life Insurance AARP’s Whole Life Insurance is available for member individuals between the ages of 50 to 80 years and their spouses aged 45 to 80. The policy comes with lifetime coverage of up to $50,000, with the annual premium being level throughout the years. One can get increased coverage if they call New York Life instead of applying online. The exact monthly premium varies depending on the age of the applicant and a few other factors. Once the company has labeled the policy as paid-up (typically when the individual reaches 95 years of age), one does not have to pay any further premium. It is beneficial to policyholders as while the initial rates may be higher in totality for AARP whole life insurance, the rates to be paid in entirety remain fixed. How does it work? AARP’s whole life insurance includes an additional savings component known as cash value. This is in addition to the death benefit included with the plan. The cash value component accrues interest tax-free. After a certain period, the policyholder can apply for fund withdrawal or apply for a loan against the policy in case of unexpected expenses. The death benefits can range from $5000 to $50,000 for policyholders aged 50 to 80 years. This means the coverage provides sufficient cover to manage end-of-life expenses without having to worry. However, if the policyholder has any debts or mortgages under their name, this policy won't help take care of it. Aside from the above benefits, AARP’s whole life insurance policy comes with two riders: Accelerated death benefit Under this rider, the policyholder is eligible to make use of as much as 50% of their death benefit if they are diagnosed with a terminal illness and have a life expectancy of 24 months or less. Premium waiver Policyholders that have to live in an assisted living facility for 180 consecutive days owing to an illness or disability can be exempted from premium payment. The length of the stay, post that, does not matter, and the individual does not have to make any further payments for full coverage.  AARP Guaranteed Acceptance Whole Life Policy Members of the American Association of Retired Persons (AARP) who are 50 to 80 years old, as well as their spouses who are 45 to 80 years old, are eligible for AARP's guaranteed acceptance whole life insurance policy. A guaranteed acceptance is promised to the applicants without a health checkup; however, there are some downsides to note. For starters, coverage for this policy is capped at $25,000. Aside from that, if the policyholder passes away within two years due to natural causes, their beneficiary receives only a part of the death benefits. On the other hand, accidental deaths result in the full benefits being paid out from the first day of coverage. A drawback to most of AARP’s life insurance policies is that their premiums are priced higher than most insurance policies by other providers. But if you are a member of the organization and have pre-existing conditions, then the lack of a health checkup and quick approval and excellent draws to keep in mind. AARP Whole Life Policy for Children The AARP Young Start Program is a whole life policy insurance for children and is a rider for the main whole life insurance plan for members of the organization. The offer is open to AARP members who want to have their children or grandchildren insured. However, they need to be below the age of 18 to qualify. Like seniors looking to take an AARP insurance plan, juniors are not required to undergo any medical tests to get their policy application approved. The coverage provided is at three levels of $10,000, $15,000, and $20,000 and this plan is not included with other AARP programs; it is available as a rider to customize one’s policy. AARP’s Young Start Program mainly ensures that parents and relatives of the child do not have to bear the associated costs if their charge passes away early. Additionally, if the original policy’s applicant passes away, the child or grandchild won’t have to continue paying premiums to maintain coverage till they turn 21. Once they turn 21, premiums will be set according to the initial coverage purchased. The low cost whole life insurance policy for children has a minimal monthly premium ranging from $5 to $10 a month. However, it builds cash value at a very slow pace and is available for the child or grandchild should they choose to access it. It is prudent to note that the above-mentioned policies are only available to AARP members. Membership to the organization can cost upward of $12 on an annual basis. That being said, AARP’s whole life insurance is a great option if one has pre-existing health conditions. Aside from this, and their low cost life insurance for children, people can also choose a term life insurance plan. However, with this policyholders stand the risk of increasing premium costs every few years.

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