1. What is a settlement loan?
A settlement loan is money that you borrow to consolidate or settle your debts. With this type of loan you can consolidate all your monthly payments into one that is often lower than the total of all the payments. The benefit is that you have more money left at the end of the month when you pay all your bills.
2. Can I get a settlement loan with bad credit?
Lenders are very willing to approve a settlement loan for you to help you improve your credit rating. They see this as a favourable move because it shows that you are trying to correct any mistakes that you made in the past by mot making your monthly payments.
3. How can I get a settlement loan?
All banks and lenders will approve settlement loans. You can also apply online and with the loan calculators provided on many of the sites, it is very easy to do the Math and see how much you can save by taking out one of these loans to help clear up your debts.
4. What is the APR for settlement loans?
The APR (Annual Percentage Rate) that you pay on your settlement loan depends on several factors. The first is the current market conditions for the interest rate at the time. The interest rate you have to pay also depends on whether you apply for a secured loan, an unsecured loan or a mortgage. It will also depend on whether or not you have good credit.
5. How can a settlement loan help my bad credit?
Getting a settlement loan will help you clear up any debts that are hanging over your head. You can actually have the lender pay these off in full for you so you don’t have to bother with that. These them show up as positive items on your credit report and as long as you keep making the monthly payments on this loan, your credit score will start to rise.
6. How can a settlement loan help me avoid bankruptcy?
A settlement loan is basically taking out a loan to help you get out of debt faster. Although this may not sound right, it is absolutely correct. It helps you consolidate your debts into one payment that is easier for you to manage each month and you no longer have to decide which payment to miss each month.
7. Can I get a settlement loan with no collateral?
The most common settlement loan with no collateral is a credit card settlement loan. The way to do this is to transfer all your debts to one credit card and cut up the others so that you won’t use them. This way you don’t have to apply for a loan and you can take charge of your own finances.
8. Are there any fees associated with a settlement loan?
Most lenders will not tell you about the fees that you have to pay when you take out a settlement loan. These fees are for the paperwork involved, for contacting your creditors and for getting a copy of your credit report. In addition, if you find that you can pay the loan off before it is due, you may have to pay a penalty.
9. How does the lender pay my creditors when I get a settlement loan?
You do have to be careful when you ask the lender to pay off your creditors. Some lenders actually negotiate with your creditors to take a lower amount than you actually owe so that they actually make money over and above what you are paying in interest charges on the loan.
10. Can I get a settlement loan for student loans?
Yes, if you have several student loans, you can combine them all into one with a settlement loan. However, you should wait until they become due because with student loans, you don’t have to start paying them back until six months after you graduate. Combining them before that could mean you are making payments you don’t have to.