Fox Business

Personal loan rates tick up: 3-year loans still lower than same time last year

Mon, 08 Aug 2022 19:47:18 GMT

Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were higher for both 3- and 5-year loans compared to the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender between August 1 and August 7:

Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical bills, take care of a major purchase or fund home improvement projects.

Rates for both 3- and 5-year fixed-rate personal loans rose over the last seven days, with rates for 3-year terms increasing by 0.31%, and rates for 5-year terms rising by 1.35%. Despite the increases, rates for 3-year personal loans are lower than they were a year ago. Borrowers can take advantage of interest savings with a 3-year personal loan right now. However, both loan terms offer interest rates significantly lower than higher-cost borrowing options like credit cards.

Whether a personal loan is right for you often depends on multiple factors, including what rate you can qualify for. Comparing multiple lenders and their rates could help ensure you get the best possible personal loan for your needs.

It's always a good idea to comparison shop on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest trends in personal loan interest rates from the Credible marketplace, updated monthly.

The chart above shows average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender.

For the month of July 2022:

Rates on personal loans vary considerably by credit score and loan term. If you're curious about what kind of personal loan rates you may qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates won't affect your credit score.

All Credible marketplace lenders offer fixed-rate loans at competitive rates. Because lenders use different methods to evaluate borrowers, it’s a good idea to request personal loan rates from multiple lenders so you can compare your options.

In July, the average prequalified rate selected by borrowers was:

Depending on factors such as your credit score, which type of personal loan you’re seeking and the loan repayment term, the interest rate can differ.

As shown in the chart above, a good credit score can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

Many factors influence the interest rate a lender might offer you on a personal loan. But you can take some steps to boost your chances of getting a lower interest rate. Here are some tactics to try.

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help you improve your credit score over time include:

Personal loan repayment terms can vary from one to several years. Generally, shorter terms come with lower interest rates, since the lender’s money is at risk for a shorter period of time.

If your financial situation allows, applying for a shorter term could help you score a lower interest rate. Keep in mind the shorter term doesn’t just benefit the lender – by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

You may be familiar with the concept of a cosigner if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, finding a cosigner with good credit could help you secure a lower interest rate.

Just remember, if you default on the loan, your cosigner will be on the hook to repay it. And cosigning for a loan could also affect their credit score.

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders typically offer the most competitive rates – and can be quicker to disburse your loan than a brick-and-mortar establishment.

But don’t worry, comparing rates and terms doesn’t have to be a time-consuming process.

Credible makes it easy. Just enter how much you want to borrow and you’ll be able to compare multiple lenders to choose the one that makes the most sense for you.

Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options – without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unrivaled customer experience, as reflected by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

Student loan refinance rates tumble for 5-year variable-rate loans

Mon, 08 Aug 2022 18:26:48 GMT

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans rose this week for 10-year fixed-rate loans and fell for 5-year variable-rate loans.

For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender during the week of August 1, 2022:

If you're curious about what kind of student loan refinance rates you may qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates won't affect your credit score.

To provide relief from the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended through at least Aug. 31, 2022. As long as that relief is in place, there’s little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of the low interest rate environment to refinance their education debt at lower rates.

If you qualify to refinance your student loans, the interest rate you may be offered can depend on factors like your FICO score, the type of loan you’re seeking (fixed or variable rate) and the loan repayment term.

The chart above shows that good credit can help you get a lower rate and that rates tend to be higher on loans with fixed interest rates and longer repayment terms. Because each lender has its own method of evaluating borrowers, it’s a good idea to request rates from multiple lenders so you can compare your options. A student loan refinancing calculator can help you estimate how much you might save.

If you want to refinance with bad credit, you may need to apply with a cosigner. Or, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.

You can use Credible to compare rates from multiple private lenders at once without affecting your credit score.

The rates private lenders charge to refinance student loans depend in part on the economy and interest rate environment, but also the loan term, the type of loan (fixed- or variable-rate), the borrower's creditworthiness and the lender's operating costs and profit margin.

Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options – without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unrivaled customer experience, as reflected by over 5,000+ positive Trustpilot reviews and a TrustScore of 4.7/5.

Should you use a personal loan to fund your summer vacation?

Mon, 08 Aug 2022 17:32:51 GMT

Vacations can be expensive, and with the rising costs of airfare and gasoline, they’re only getting costlier. But if you decide some rest and relaxation is worth the cost, you have options to help pay for it all. One common way is a personal loan, sometimes referred to as a vacation loan when you use it to fund your trip.

Here’s how a vacation loan works, and whether taking out such a personal loan is a good idea.

If you’re considering a personal loan to fund your vacation, visit Credible to see your prequalified personal loan rates from various lenders, all in one place.

A vacation loan is a type of unsecured personal loan. You borrow a lump sum of money up front and pay it back with a series of monthly installments over a set period of time, typically two to five years.

Personal loans usually have a fixed interest rate, meaning your payment won’t change for as long as you have the loan. They’re also typically unsecured, so you don’t risk losing your home or other property if you fail to make your payments. However, missing payments can have a devastating effect on your credit score, making it harder to borrow in the future.

Many personal loan companies will include the term "vacation loan" in their marketing. These loans generally aren’t any different from a standard personal loan. You’ll just use the funds to pay for vacation expenses.

Whether a vacation loan is a good idea depends on your unique financial situation.

Vacation loans have several advantages to other options you may be considering to pay for your trip. For example, personal loans generally have much lower interest rates than credit cards. If your vacation expenses will be more than you can comfortably pay off in one billing cycle, charging them on a credit card may end up costing you more in the long run than you’d pay with a personal loan.

As an unsecured loan, a personal loan is also much less risky than paying for a vacation with a home equity loan or home equity line of credit. Both of those loans are secured by your property, meaning you could lose them to foreclosure if you’re unable to make your payments.

If you have good credit and enough room in your budget for another payment, a personal loan can be a good way to pay for a summer vacation. If you have poor credit or your finances are already stretched thin, you may consider another option to get away or spend some time improving your personal loan application.

Before you apply for a personal loan, take stock of your credit and finances. Personal loan lenders set interest rates based primarily on an applicant’s credit score. People with higher scores will pay lower rates, while people with poor credit may face high interest rates and fewer loan options.

Lenders may also look at the amount of debt you already have outstanding. If you have relatively little debt compared with your income, you may be offered better terms on your personal loan. A large amount of debt may make it more difficult to qualify for a personal loan. You should also factor in a future loan payment into your monthly budget, and make sure it fits comfortably before applying for a loan.

Credible makes it easy to compare personal loan rates from various lenders, and it won’t affect your credit score.

Before you apply for a vacation loan, it’s important to consider the benefits and drawbacks:

Pros

Cons

Ideally, you wouldn’t need to take out a loan to pay for your vacation. Paying cash is always the thriftiest way to meet a large expense. You may even have a more relaxing time on your vacation knowing you won’t be paying for it over the next few years. Here are a few tips to help you pay for a vacation without taking out a loan:

1. Set a budget. It can be challenging to meet a financial goal like saving for a vacation without knowing exactly where your money is currently going. Take stock of your income as well as your regular expenses, like your rent or mortgage, utilities, and other debt payments. Also track the amounts you typically spend on groceries, entertainment, and other expenses. This will show you how much money you can save each month and give you ideas on where you can cut back spending, if needed.

2. Examine your emergency fund. A general rule of thumb is that you want to have three to six months’ worth of your regular expenses set aside for emergencies. Your budget will help you determine how much you’ll need. This emergency fund can help you meet unexpected costs, like a car repair or medical bill. Before you start saving for a vacation, make sure your emergency fund is in good shape.

3. Open a dedicated bank account. It may be easier to keep track of how close you are to your savings goal if you open up a new savings account or create a sub-account in your existing savings account to keep your vacation savings. You can set aside a certain amount of money each month to put into your vacation account, or you can put unexpected earnings in there to help you meet your goal.

4. Shop around for good deals. If you can be flexible on your travel arrangements, you may be able to find cheaper flights or hotel stays that are easier on your budget. Use a site like Kayak or Expedia to help you find cheaper airfare, or sign up for a service like Scott’s Cheap Flights to help you find particularly good deals.

Today’s best mortgage deal? 15-year rates are the lowest available | August 8, 2022

Mon, 08 Aug 2022 16:17:41 GMT

Based on data compiled by Credible, three key mortgage refinance rates have risen and one remained unchanged since last Friday.

Rates last updated on August 8, 2022. These rates are based on the assumptions shown here. Actual rates may vary. With 5,000 reviews, Credible maintains an "excellent" Trustpilot score.

What this means: Mortgage refinance rates surged for three key repayment terms today, with 20- and 30-year rates rising by half a percentage point, and rates for 15-year terms edging up a quarter point. Rates for 10- and 15-year repayment terms are still below 5%, meaning homeowners may want to consider refinancing to a shorter term to save on interest. Homeowners looking to refinance may find that 15-year terms offer the best opportunity for a lower interest rate and manageable monthly payment.

Today’s mortgage rates for home purchases

Based on data compiled by Credible, mortgage rates for home purchases have risen across all repayment terms since last Friday.

Rates last updated on August 8, 2022. These rates are based on the assumptions shown here. Actual rates may vary. Credible, a personal finance marketplace, has 5,000+ Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

What this means: Rates for home purchases spiked today, with rates for 30-, 20-, and 10-year terms climbing by half a percentage point. Considering today’s increases, buyers may want to look to shorter repayment terms to take advantage of interest savings. With rates for a 15-year term currently lower than rates for all other repayment terms, borrowers who can afford higher mortgage monthly payments should comparison shop and consider shorter repayment terms to find their best possible rate.

To find great mortgage rates, start by using Credible’s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible’s mortgage calculator to estimate your monthly mortgage payments.

Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac – 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.

The historic drop in interest rates means homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing with one of today’s lower interest rates. When considering a mortgage refinance or purchase, it’s important to take into account closing costs such as appraisal, application, origination and attorney’s fees. These factors, in addition to the interest rate and loan amount, all contribute to the cost of a mortgage.

Are you looking to buy a home? Credible can help you compare current rates from multiple mortgage lenders at once in just a few minutes. Use Credible’s online tools to compare rates and get prequalified today.

Thousands of Trustpilot reviewers rate Credible "excellent."

Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence the movement of mortgage rates. Credible average mortgage rates and mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.

Credible mortgage rates reported here will only give you an idea of current average rates. The rate you actually receive can vary based on a number of factors.

If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote – and an average of $3,000 by comparing five rate quotes.

If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible's free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.

Today’s mortgage refinance rates: 10-year rates stick well below 5% | August 8, 2022

Mon, 08 Aug 2022 15:54:49 GMT

Based on data compiled by Credible, three key mortgage refinance rates have risen and one remained unchanged since last Friday.

Rates last updated on August 8, 2022. These rates are based on the assumptions shown here.

If you’re thinking of doing a cash-out refinance or refinancing your home mortgage to lower your interest rate, consider using Credible. Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.

What this means: Mortgage refinance rates surged for three key repayment terms today, with 20- and 30-year rates rising by half a percentage point, and rates for 15-year terms edging up a quarter point. Rates for 10- and 15-year repayment terms are still below 5%, meaning homeowners may want to consider refinancing to a shorter term to save on interest. At 4.750%, homeowners looking to refinance may find that 15-year terms offer the best opportunity for a lower interest rate and manageable monthly payment.

WHAT IS CASH-OUT REFINANCING AND HOW DOES IT WORK?

Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac — 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.

If you’re ready to take advantage of current mortgage refinance rates that are below average historical lows, you can use Credible to check rates from multiple lenders.

If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance, so you can find the best rate for your situation.

Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac.

Be sure to shop around and compare current mortgage rates from multiple mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible's free online tool and see your prequalified rates in only three minutes.

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

Credible mortgage refinance rates reported here will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

Think it might be the right time to refinance? Be sure to shop around and compare rates with multiple mortgage lenders. You can do this easily with Credible and see your prequalified rates in only three minutes.

Everyone’s situation is different, but generally, it may be a good time to refinance if:

If your home needs significant, costly repairs it might be a good time to refinance in order to withdraw some equity to pay for those repairs. Just be aware that lenders generally limit the amount you can take from your home in a cash-out refinance.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

US service members eligible for PSLF are short on time to apply under new rules, CFPB warns

Mon, 08 Aug 2022 13:24:32 GMT

Tens of thousands of U.S. service members are running out of time to potentially save money on their student loans by applying for the federal government's Public Service Loan Forgiveness (PSLF) program amid its new rules, the Consumer Financial Protection Bureau (CFPB) warned in a recent blog post.

An April 2021 report from the U.S. Government Accountability Office (GAO) showed that as of January 2020, more than 176,000 active-duty service members had federal loans that were eligible for the PSLF program. By that time, only 124 of these borrowers had received loan forgiveness. Additionally, about half of the active-duty service members who have federal student loans have balances of more than $13,000, according to the GAO.

The Department of Education expanded the PSLF program in October 2021 to allow more loans to qualify. But the changes are for a limited time only. Under the new rules, any prior payment made by a borrower eligible for the PSLF program will count as a qualifying payment. That's regardless of the loan type, repayment plan or whether the payment was made on time or in full.

Federal Family Education Loan (FFEL) Program loans, Federal Perkins Loans, or other types of federal student loans that are not Direct Loans must be combined into the Direct Loan program by Oct. 31, 2022 in order to qualify for forgiveness under PSLF. Missing the deadline means borrowers risk losing out on thousands of dollars in potential federal student debt credit.

If you have private student loans, then federal relief doesn't apply to you. If you're looking to lower your monthly payments and ease the burden of student loan debt, then you could consider refinancing your student loans. Visit Credible to find your personalized interest rate without affecting your credit score.

In the blog post, the CFPB urged student loan servicers to take action, saying they are best positioned to help identify military borrowers and ensure they get the credit for their loan payments that they deserve.

"It is possible that tens of thousands of servicemembers could benefit if they get the right paperwork submitted by the deadline," the CFPB wrote. "But in order to do so, servicemembers must receive the information and support they need from their student loan servicer."

The loan servicers also have the added benefit of knowing which of their borrowers are in the military and are already paid to assist them, the CFPB said.

"Managing student loan debt is a serious issue—these are not trivial amounts of money. Many military borrowers have education loans that exceed the average mortgage for a home in America," the CFPB wrote. "For military borrowers, failing to get their PSLF application approved will force them to pay thousands or tens of thousands of extra dollars on their student loans unnecessarily."

If you have private student loans and aren’t eligible for federal forgiveness programs, you could consider refinancing to lower your monthly payments. Visit Credible to compare multiple student lenders at once and choose the one with the best interest rate for you.

Federal student loans are currently in COVID-related forbearance and payments have been paused until Aug. 31. During this time, borrowers are not required to make payments on their loans and interest rates have been set to 0%. The Department of Education has also stopped collections on defaulted loans.

President Joe Biden confirmed that he would decide on student debt by the end of August, although it wasn’t clear if he was referring to widespread student loan forgiveness or an extension to the student loan payment pause. Biden has previously indicated that he's considering canceling some student debt, though not the $50,000 debt reduction that some Democrats have called for.

More than half of Americans (55%) said they would support forgiving up to $10,000 in federal student debt per borrower, according to a recent survey from NPR/Ipsos. Howver, that support wavered when talking about higher amounts of debt forgiveness. Just 47% of Americans said they supported forgiving up to $50,000 in student loans and 41% said they supported forgiving all federal student loan debt.

If you are trying to pay down your private student loans, refinancing could help you lower your interest rate and reduce your monthly payment. To see if this is the right option for you contact Credible to speak to a student loan expert and get all of your questions answered.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

Job growth surged in July, recovering all employment lost during pandemic

Fri, 05 Aug 2022 19:47:35 GMT

Total jobs increased by significantly more than expected in July, sparking debate once again about the current state of the economy and whether it’s in a recession.

Non-farm payroll employment increased by 528,000 in July, according to the latest employment report from the Bureau of Labor Statistics (BLS). During this time, the unemployment rate decreased to 3.5%. The job gains were led by increases in leisure and hospitality, professional and business services and healthcare.

"Today’s number of 528,000 new jobs was impressive," Rusty Vanneman, Orion Advisor Solutions chief investment strategist, said in a statement. "Given the recent rise in jobless claims (the highest since November) and announced layoffs (especially from firms like Amazon and Walmart), plus the recent drop in job openings, it felt like that today’s expected number of 250,000 was going to be too high."

And this job gain recovered all employment lost during the pandemic, according to Dawit Kebede, Credit Union National Association (CUNA) senior economist.

If you are struggling amid today’s economy, consider using a personal loan to help pay down debt. Visit Credible to find your personalized interest rate without affecting your credit score.

FED RAISES INTEREST RATES AGAIN — HERE’S HOW IT AFFECTS YOUR WALLET

Job gains surged in July, leading many economists to begin the debate once again about whether the U.S. is currently in a recession.

Gross domestic product (GDP) decreased 0.9% in the second quarter of this year, marking the second consecutive GDP contraction – the common definition of a recession. Ahead of this second quarter GDP reading, the White House Council of Economic Advisors said that even if the GDP report is negative, it's "unlikely" to indicate a recession. Typically, economists consider a recession to be after two consecutive quarters of negative GDP growth. But the White House said that may not be the case.

Now, as job gains surge, economists are circling back to the talk or a recession.

"If you thought the economy was in a recession, you were wrong," Morning Consult Chief Economist John Leer said in a statement. "Demand for workers skyrocketed in July, far exceeding expectations. Paired with falling gas prices, the economic outlook for the third quarter starts looking better."

If you are looking to save money in today’s economy, consider taking out a mortgage refinance to save on your monthly payments. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.

BANK OF AMERICA SAYS TO EXPECT 'MILD RECESSION' THIS YEAR

Although strong job gains could be good for the economy now, it could mean higher inflation rates in the long term.

This comes as inflation is already at a 40-year high in June, when the Consumer Price Index (CPI) increased 9.1% annually.

"While this number drives at least one spike into the heart of near-term recession fears, in turn, it will throw fuel back on the fire of concerns regarding higher inflation and interest rates," Vanneman said. "For example, wage growth continues to move sharply higher, as average earnings jumped 0.5% last month and is now up 5.2% over the last year. What may be good for the economy near-term, may not be so good for asset prices."

And as inflation continues to surge, the Federal Reserve could continue to raise interest rates in an attempt to bring inflation back down.

"This remains one of the strongest job markets in the past 50 years, no comfort for those hoping for a slowdown which would reduce inflation and lead to a less aggressive path of rate hikes from the Federal Reserve," Mike Fratantoni, Mortgage Bankers Association (MBA) senior vice president and chief economist, said in a statement.

And other economists agreed, saying the federal funds rate could rise from its current range of 2.25% to 2.5% before the end of the year.

"The Federal Reserve will likely stay the course of interest rate hikes announced in its June Federal Open Market Committee projection, 3.4% by year-end, despite recent reports of a slowdown in consumer demand," Kebede said.

If you are interested in lowering your monthly expenses, consider refinancing your student loans to lower your monthly payments. Contact Credible to speak to a student loan expert and get all of your questions answered.

How to get a loan with a bad credit score

Fri, 05 Aug 2022 17:53:15 GMT

Having a strong credit score can really come in handy if you need to borrow money. When you have bad credit, it can be challenging to get a personal loan — especially one with low interest rates and no fees. But some lenders do cater to borrowers with bad credit scores.

Here’s how to get a loan with bad credit and what you need to know about this specific type of credit product.

If you need a personal loan, visit Credible to see your prequalified rates from various lenders, all in one place.

Before you apply for a bad credit loan, it’s a good idea to check both your credit report and credit history to see where you stand. Knowing your credit score can help you determine which types of loans you can qualify for, what lenders to apply with, and which ones to skip if you’re unlikely to meet their requirements.

Reviewing your credit report gives you the opportunity to spot any potential mistakes or fraud and report them to the credit bureau. If certain items on your credit report are found to be errors, the credit bureau can remove them from your report. This can usually improve your credit score, with little effort on your end. You can also review your report to see which areas you can improve so you can qualify for better lending products in the future.

The reason lenders like to see high credit scores is because a low credit score typically stems from negative marks on your credit report, such as making late payments or having debt in collections. A low credit score indicates to a lender that you’re more likely to miss your debt payments or default on the loan, which can be very costly for the lender.

WHAT CREDIT SCORE DO YOU NEED FOR A PERSONAL LOAN?

When you apply for a personal loan, you trigger a hard inquiry on your credit report, which temporarily lowers your credit score. This is unavoidable if you want to get a personal loan, but you can avoid having a hard credit inquiry added to your report unnecessarily.

Before officially applying for a personal loan, prequalify with the lender to get an estimated loan offer. When you prequalify, the lender only runs a soft inquiry of your credit report. So if the lender tells you it won’t be likely to approve your loan application, or presents you with terms you know you won’t want to accept, you can skip applying officially with that lender.

Credible makes it easy to compare personal loan rates from various lenders, and it won’t affect your credit.

Before you prequalify, research which lenders accept your credit score so you don’t waste time and energy on lenders that won’t work with you.

Several lenders offer personal loans for borrowers with lower credit scores. These lenders often take other information into account when considering your application, such as your employment and income. While most lenders tend to require a score of at least 580, some lenders don’t even require a credit check.

It’s important to compare prequalification offers from at least three to five different lenders. This way, you can find a loan that works best for your financial situation.

You don’t necessarily have to apply for a loan targeted at borrowers with bad credit scores. One way to boost your chances of qualifying for a personal loan — and of getting a lower interest rate — is to apply with a cosigner who has a higher credit score than you. This can be a trusted friend or family member.

The cosigner should be careful, though. They’ll be responsible for making the loan payments if you aren’t able to. If both you and your cosigner fail to make payments, or you make your payments late, both your credit scores can suffer.

HOW TO FIND A COSIGNER FOR YOUR STUDENT LOANS

Not sure if taking out a personal loan when you have bad credit is the right move for you? Here are a few factors worth considering:

If you’re ready to apply for a personal loan, head to Credible to quickly and easily compare personal loan rates to find one that best suits your needs.

When does interest resume on federal student loans?

Fri, 05 Aug 2022 16:38:39 GMT

Federal student loan payments have been on hold since March 2020 as a result of the COVID-19 pandemic. The government also sent the interest rate for federal student loans to 0% during the pause. The payment pause only applies to borrowers with federal student loans.

Payments were supposed to resume in April 2022, but President Joe Biden extended the student loan deferment again until Aug. 31. Assuming the deferment isn’t extended further, this will be the first time some federal borrowers have made payments on their federal loans in more than two years.

Federal student loan borrowers will also begin making interest payments once their regular loan payments resume. Unless you consolidated your federal loans during the deferment period, when your payments resume your interest rate will be the same as it was before the deferment period.

You might consider refinancing your student loans after the payment pause ends. By visiting Credible, you can learn more about student loan refinancing and compare rates from multiple private student loan lenders.

Through executive action, President Biden has canceled more than $25 billion in student loan debt for 1.3 million borrowers. The majority of forgiveness has been extended to borrowers who were victims of school closures or have a permanent disability.

For example, the U.S. Department of Education issued $7.9 billion in student loan forgiveness for 690,000 borrowers under the Borrower Defense to Repayment. To qualify for the Borrower Defense, borrowers must be able to show that the school they attended misled them, engaged in misconduct, or violated state law relating to their loans.

The federal government also issued $8.5 billion in loan forgiveness for borrowers who suffer from a permanent disability. And 127,000 borrowers have received forgiveness through Public Service Loan Forgiveness (PSLF), a program that issues loan forgiveness to borrowers that work in public service jobs.

In addition, the U.S. Department of Education has made changes to income-driven repayment (IDR) plans to help more borrowers qualify for student loan forgiveness. And President Biden campaigned on providing $10,000 in blanket forgiveness to all federal student loan borrowers.

However, federal borrowers still haven’t seen widespread student loan forgiveness. Assuming the federal loan deferment ends on Aug. 31, student loan borrowers should be prepared to start repaying their loans, with interest, on Sept. 1.

Once payments resume, you might consider refinancing your student loans. You can easily compare prequalified rates from multiple lenders using Credible.

The current federal student loan deferment is set to end on Aug. 31, but you should start preparing to repay your loans now. Here are some steps you can take before your loan payments resume in September:

Many borrowers may be wondering if the federal student loan deferment will be extended beyond Aug. 31. No one knows for sure at this point, but it does seem possible — President Biden has already extended the deferment four times during his presidency.

U.S. Secretary of Education Miguel Cardona has indicated that another extension is possible.

"I don’t have any information now to share with you about when it would end or what the conversations are about when it’s going to be lifted," he told a Senate subcommittee in June.

"I know we have a date, and it could be that it’s extended. Or it could be that it starts there. But what I will say is that our borrowers will have ample notice."

President Biden has also received pressure from activist groups and top Democrats to extend the student loan deferment and provide more meaningful debt cancellation. So a CARES Act extension seems to be on the table, but it’s unclear whether or not it will happen.

In the meantime, federal borrowers should assume that their student loan payments will resume on Sept. 1 until they learn otherwise.

To get started on refinancing your student loans, visit Credible and compare prequalified rates from multiple lenders.

Still time to save: Today’s 30-year mortgage refinance rates dip further below 5% | August 5, 2022

Fri, 05 Aug 2022 15:07:37 GMT

Based on data compiled by Credible, mortgage refinance rates are mixed since yesterday, with two rates falling, one rising, and a fourth holding steady.

Rates last updated on August 5, 2022. These rates are based on the assumptions shown here.

What this means: Rates for a 30-year refinance edged down today, bringing this popular term further below the 5% mark. Meanwhile, 20-year rates held steady, and 10-year rates surged to hit 4.750%. Homeowners who can manage higher monthly payments may want to consider 15-year rates – at 4.5%, they’re currently the lowest available. With rates for all repayment terms below 5%, homeowners who have been waiting to refinance might consider locking in a rate today. Homeowners who want to make home improvements can save more on interest with a cash-out refinance than they would by funding those improvements with credit cards or personal loans.

WHAT IS CASH-OUT REFINANCING AND HOW DOES IT WORK?

If you’re ready to take advantage of current mortgage refinance rates that are below average historical lows, you can use Credible to check rates from multiple lenders.

Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

Credible mortgage refinance rates reported here will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

Negotiation is often possible in real estate transactions, and you may be able to work with your lender to negotiate a lower refinance rate.

Having a good to excellent credit score, low debt-to-income ratio, and good income may help in negotiations. Being open to compromise may also help. For example, your lender may agree to a lower interest rate if you’re willing to pay mortgage discount points upfront.

The best way to ensure you get the lowest possible interest rate is to compare rates and loans from multiple mortgage lenders.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.