Terms & Conditions
In this edition of the blog, we will look at some common terminology associated with the loans process, personal financial planning, and UrLoan’s business model. If you’ve ever been not exactly clear about what a certain concept or phrase refers to in the process of applying to borrow from us, now is the time that your questions may be answered! Of course, for any further clarification on the process, your options and the way we can help you find the financial solution that best fits you, call us anytime at 1 (855) 723-5626.
The combining of several unsecured debts into a single, new loan that is more favorable. Debt consolidation involves taking out a new loan to pay off a number of other debts. The new loan may result in a lower interest rate, lower monthly payment or both. Consumers can use debt consolidation as a tool to make it easier to get out of student loan debt, credit card debt and other types of debt that aren’t tied to an asset.
APR means “annual percentage rate” and if a loan charges interest, it has one. APR is the industry standard for expressing an interest rate charged, so that consumers may make fair comparisons between personal finance products, services and lenders. While many payday lenders can typically charge an APR interest rate in excess of hundreds of percent, urLoan interest rates are between 29-46.95%, which is a competitive rate to other unsecured term loan companies.
The Five C’s Of Credit
This method of evaluating a borrower incorporates both qualitative and quantitative measures. The first factor is character, which refers to a borrower’s reputation. Capacity measures a borrower’s ability to repay a loan by comparing income against recurring debts. The lender will consider any capital the borrower puts toward a potential investment, because a large contribution by the borrower will lessen the chance of default. Collateral, such as property or large assets, helps to secure the loan. Finally, the conditions of the loan, such as the interest rate and amount of principal, will influence the lender’s desire to finance the borrower.
With One Exception…
UrLoan offers an unsecured loan product, which eliminates the fourth “C” as noted above. What’s an unsecured loan? loan that is issued and supported only by the borrower’s creditworthiness, rather than by a type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan. An unsecured loan may have a fixed interest rate and be due at the end of a specified term, or it can exist as a revolving line of credit with a variable interest rate.