Top 10 Personal Loan Terminologies Used in Finance World

Top 10 Personal Loan Terminologies Used in Finance World

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Millions of Americans use loans to cover unexpected expenses, home improvements, debt consolidation and much more. It seems the basics are quite straightforward like the one that avails student loans for higher studies, the one for a loan to buy a car, a mortgage loan to purchase a house and so on and so forth. To add to the list these days there is one more loan type that is gaining rapid fame as it is flexible, easy to apply for, usually offers low interest rates (if your credit score is good) and the loan amount is smaller when compared to other loan types. By now you should have guessed it right, as it is called a personal loan. Make https://www.achievefinance.com your finance partner and apply online today!

Recent developments in loans can be attributed partly to the financial crisis, to the historical regularities taking into account the severity of the past recession and the loan supply factors exerting a considerable descending pressure on loans growth since the beginning of the financial tensions that started around a decade ago. As a result these days lending options are many like- banks, p2p lending, credit unions and the latest -online lenders. Online lenders are introducing new types of loans to make it easier for customers to avail and utilize. Any loan sanctions are generally based on a combination of the borrower's income, the credit history and the loan terms.

So if you have thoughts about taking a loan for any reason, it is good to know a few prevailing loan terminologies before jumping the bandwagon. Here are the top ten:

1. Annual Percentage Rate

  • APR stands for Annual Percentage Rate and in a simple language it is the numeric representation of your interests rate expressed as a percentage depicting the actual yearly cost of your funds over the period of a loan.
  • It can be fixed or variable.
  • Types of APR include purchase APR, cash advance APR, promotional APR and penalty APR.
  • According to the division of finance in Missouri, the APR=FEE (Origination fee + Interest) ÷ Amount Financed ÷ Number of days in loan × 365 × 100

2. Credit History

  • It is basically a record of consumers. From that, one could check the borrower's ability to repay debts and acts as a demonstration of a responsible debt repayment over a period of time.
  • It is represented through a credit report sourced by banks, credit card companies, collection agencies, governments and it includes the details of the consumer's credit account like when it was opened, the account balance, transactions history and other information.
  • One can call the Annual Credit Report at 1-877-322-8228 and follow the instructions to check their credit history.

3. Collateral

  • According to Investopedia, a collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower fails to make promised loan payments, the lender can seize the collateral to recover its losses.
  • Loans backed by collaterals typically have lower interest rates compared to unsecured loans.
  • House or home equity, cars, your investments and savings can be assets that could help you qualify when borrowing with collateral loans.

4. Debt-to-income ratio(DTI)

  • DTI or debt-to-income is calculated by dividing total recurring monthly debt by the gross monthly income, and expressed as a percentage.
  • It is a method to measure an individual's ability to manage monthly payments and debts.
  • Low DTI means you are less risky to lenders.

5. Debt-Consolidation

  • It simply means taking out a single loan to pay off a number of other loans/ debts.
  • Helps to pay off a number of liabilities and mostly unsecured consumer debts.
  • Multiple debts are combined into a larger piece of debt with favorable payoff terms like a lower interest rate or lower monthly payment or both.

6. Lien

  • It is a legal claim or the right for the lender to take possession of a property /an asset if the debt repayment doesn't happen as agreed.
  • In legal terms it is a formal document signed by the party to whom money is owed and sometimes by the debtor who agrees to the amount due.

7. Principal

  • It is the total amount owed on a loan excluding interest or the money that you originally agreed to pay back.
  • We all are aware of the simple interest calculation formula [A=P (1+RT)] which implies the cost of borrowing based on the principal amount.
  • Any payment made on a loan will be applied first to any fees that are due for example, late fees then the rest of your payment will be applied to the principal balance of the loan.

8. Installment

  • It is defined as a sum of amount payable as one of several equal payments for something, spread over a contracted duration that may be months or years.
  • Having a loan of a specific amount that is paid back according to a set schedule.
  • It can also be single payment.

9. Repayment Term

  • It is the amount of time or the duration within you need to repay the loan.
  • The longer the loan the lower your payments but higher are the overall interest charges.
  • Periodic payments include part principal plus interest.
  • Can be monthly, semi-annual or annual for long term loans.

10. Prepayment Penalty

  • Some lenders impose charge/fees on a borrower who opts to pay off part or whole of the loan in advance. This is known as prepayment penalty.
  • Lenders do this to mitigate prepayment risk because if the borrower pays the loan off early lender loses future interest on the loan payments.

Your rate on loans may vary substantially based on the lender you choose. Several new lenders have entered the market and for a while, American consumers did not have that option. With the rapid growth of online lending, consumers finally have a choice and now that you are well-known with popular loan terminologies, hope you are ready to apply.

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Summer In College Is For More Than Just Working

No, you're never to hold to have fun in the summer.

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There should never be an age where you stop having fun in the summer. The weather is nice, there are always things to do, and everyone is just naturally happier. So, regardless of whether you're 7 or 21, I'm talking to you.

During the year it can be hard to find a routine unless you are a very put together person. Sadly, I am not. Even when I tell myself I'm going to eat healthily, work out, and stop procrastinating, I usually don't follow through with that. At school, I find myself in somewhat of a constant catch-up mode. When I feel like I'm ahead on my homework or studying, that usually means I'm behind on being healthy in other aspects of my life. That is why I love summer. It's a chance to reset the clock for a second and catch your breath.

I get that having an internship or working is important for your post-graduation life, but having fun is important for your college years too. When you get a job in the real world, summer is going to look a lot different for you. That is why it's best to take advantage of the time now. This doesn't mean turning down that work experience, it means doing things other than just working.

First things first is finding a hobby you enjoy that you don't do at school. Pick it up for a little over the summer. Why not? For me, this is yoga. For whatever reason, I find myself too nervous to attend yoga classes at school. I have absolutely no reason to be anxious about doing something I like, but I am so I take the time to attend a few classes a week in the summer.

Secondly, try reading. Before you make that look of disgust on your face, think about the last time you read a book of your choosing. If it was recently, then kudos to you for managing your time well enough to do that. If you are not that person, then hello! I am talking to you. I am not a fan of reading because I usually associate it with homework. However, I find that when I have the time to browse the book section of a store for a few seconds, I find multiple books that jump out at me. During the summer I take the opportunity to read a little here and there. The nice part of leisure reading over school reading is that there's no deadline. You can read what you want when you want to.

Finally, learn something new. Again I usually associate learning with things that I am required to learn for my major. Learning something new that interests you is a different kind of rush. When I'm bored in class, I make bucket lists of little things I want to learn about. They can be big or small. One time I wanted to learn how to knit. Don't ask me why my 19-year-old self thought it would be sweet to sit on my porch in the summer knitting, but I did, and I'm kind of sad I didn't pursue that interest. When might I ever have time to learn how to knit again?

These might sound like quirky things to do, but you're young. Make a bucket list and try to cross one thing off each weekend. If you're like me, then you're a little scared of growing up. Scared you won't be able to accomplish all the things you want to. But, the fact of the matter is no one is going to make you accomplish them but you. So, take some initiative and do them. Summer is for more than just working; it's time to live a little and reset the clock.

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How you can Enhance your Marketing Campaign with the the help of proper Content Marketing

Hey SEO Friends,

I am pretty sure that you are familiar with the concept of Content Marketing. But most of you probably never really went in-depth into this topic. I think you are missing out on something.

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From our own experience we can tell you that content is the most underrated factor in a marketing campaign.

Most people worry about unnecessary factors while they should take a look at their content. Think about it: If you have significantly good content (no matter if it´s written, audio or video), people will naturally talk about you.

That´s the truth. And while you still have to take the time to distribute your content, I can tell you that you will have a much easier time to get attention to your content.

You may wonder why producing the best content out there will work?Because Marketing and Content is like Ying and Yang - It synergizes perfectly.

The process will look like this:

  • -You create awesome content
  • -You distibute the content
  • -People will see your content
  • -If your content stands out, visitors will remember it and talk about it with their friends (Viral Cycle Time)
  • -More people will see your content
  • -You don´t need to distribute it anymore
  • -It will automatically turn into a viral loop

All of this is only possible if you produce significantly better content than your competitors. People want to remember you as the expert. If you can show that you know what you are talking about then other people will grasp on that and think of you as the main person in your field!

We are pretty sure that you can at least DOUBLE your marketing results with proper content marketing. Do your own testing right now but we can assure you that no matter what you do (SEO, SMM, PPC, etc...) - Content will always remain the Foundation of a successful Marketing Campaign.

If you want to read more about this topic, and learn how you can use content marketing as a gateaway for a more successful marketing campaign, then make sure to take a look at our most recent blog post:

https://marketinghope.net/2018/05/20/content-creation-for-better-marketing-results/

So now our question to you: Do you feel like you currently focus enough about your content creation? If not then why?

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