Tuck Associates Shares Three Questions to Ask When Your Credit Score Drops

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Noticing an unexpected credit score drop can cause someone to temporarily despise the financial system in the U.S. For those who might be working on rebuilding their credit, the feelings of hatred and anger are much stronger. Fortunately, there is always a way to reverse a reduction in someone’s credit score. Not to mention that many of them reverse on their own after a few weeks go by. To determine the best course of action for each situation, people must ask the following three questions.

Did I Use Credit Cards to Pay for Items?

According to the company that specializes in debt consolidation, Tuck Associates, the number one reason for credit score drops is an increase in utilization. When people go from never using their credit cards to suddenly paying with them for everything, their utilization will no longer be zero percent. Due to various spending limits, however, everyone’s new percentage will be different. The higher that the utilization goes, the lower the credit score will be. Fortunately, usage is one of the categories that often fixes itself. When a person starts using their credit cards for the first time, their credit will need some time to adapt to the new debt. If they maintain a consistent pattern of purchases and keep the utilization rate under 30 percent, the credit score will eventually rise.

Did I Forget to Make a Payment?

Late payments on any liability will immediately reduce the credit score. Unlike utilization, bouncing back from a missed deadline may take a long time. The reason why is that there is no “adjustment” period for someone who forgot to pay their bills. Instead, the overall consistency will go down, and it might take a few years to bring the percentage of timely repayments back up. This is why people who have multiple deadlines for their liabilities should remain proactive by covering all of the expenditures long before the due date.

Did I Close Any of My Accounts?

When people close their largest or oldest credit account, they seldom consider the effects on their credit score. In most cases, there will be a noticeable drop in points. While it may sound counterintuitive, two perfectly logical reasons explain why this situation ensues. Closing the oldest account will considerably reduce the average age of someone’s credit. Lower age will translate to a lower credit score. Closing the largest account will have a similar effect as the utilization rate goes up. Consider, for instance, a person that has 5 credit cards with a total spending power of $20,000 and a current debt of $6,000. If their largest account has a spending limit of $10,000, closing that account will increase the overall utilization rate from 30 percent ($6,000 divided by $20,000) to 60 percent ($6,000 divided by $10,000). Even though there is no new spending, the new usage percentage is twice as high, and the credit score subsequently plummets.

In case that none of these questions resolve the mystery, people should check if new collections were filed against them. Circumventing them, however, is borderline impossible because most collection disputes have an unfavorable outcome. Luckily, learning from the aforementioned questions from Tuck Associates can help avoid major credit issues, especially when it comes to large point deductions

What Is Customer Churn?

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According to Forbes Magazine, over three-fourths of the customer service groups that are high-performers have at least an above-average understanding and use of predictive analytics. Medium calls the churn rate one of the most important measures of customer experience. What exactly is customer churn?

Churn Rate Definition

Investopedia defines the churn simply to be when a customer decides to stop doing business with a company. Churn rate can either be measured by customers lost in a given period of time or by customers lost divided by customers gained. The latter is a measure of growth.

How is it Measured?

For online presences, Medium states that churn occurs after a predetermined time period when the customer last used the service or purchased the product. This time period is dependent upon the type of business and the target customer pool.

What is really important is to compare the growth rate to the churn rate. If the churn rate is higher, the company is losing its customer base. Companies with higher growth rates to churn rates are taking on more customers than they are losing, so they are in a period of growth.

Why is Churn Rate Critical?

As reported in Medium:

  • When companies reduce their churn rates by 5 percent, their profits tend to increase by 25 to 125 percent.
  • Each new customer costs, on average, five times more to gain than it does to keep your existing customer base.
  • Churned out customers may give your company negative reviews in social media.
  • When a company’s churn rate is high, it is a sign that either a product or service is failing to provide value or meet expectations or that there is a customer service issue.

Things to Look for in Churn Rate

Are your customers switching to another provider or are they no longer purchasing that product or service at all? This is an important point in your steps to reduce customer churn.

Forbes suggests gathering data to find out why customers leave. This data can be a part of predictive analytics. In turn, that data can be used to carefully identify the customers who are at risk of churning out. Then, messages can be sent to help induce customers to decide to stay.

Other Means of Reducing Churn

Medium suggested a few other means of reducing churn:

  • Give your best customers a larger focus
  • Ensure you are targeting your ideal client
  • Give the best customer service
  • Identify your different market demographic segments and personalize your appeal to each segment
  • Fully and quickly resolve complaints to the customer’s satisfaction
  • Think of ways to get the customers back in the fold and satisfied

Don’t Forget to Upsell and Cross-Sell

Forbes suggests that upselling existing customers and finding new products to meet their needs are also an important part of customer satisfaction and retention.

Customer churn is a critical predictive analytic factor. The more your business knows about not only the churn rate but also about the reasons behind churn, you will be able to find effective means of retaining customers and preventing churn

Keel Associates Shares The Best Books to Read if You’re In Debt

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Being heavily in debt is absolutely frightening. Often, debtors are unaware of their legal rights and feel as though there is nowhere to turn. Sadly, due to the double-digit, credit card interest rates that are common these days, people find it next to impossible to dig their way out of debt. Also, many people are saddled with medical bills and student loan debt. It saps a person’s ability to carry on with a normal life, such as marrying or buying a home.

At Keel Associates, a firm that specializes in helping people overcome debt problems, we realize that people will need our services as well as some good books for both moral support and legal advice. The following are some of our favorites.

“Solve Your Money Troubles: Strategies to Get Out of Debt and Stay That Way” – Seventeenth Edition by Amy Loftsgordon and Cara O’Neill

We are big fans of Nolo Press. They don’t come up much in the New York Times Best Seller List, but they are a company that specializes in showing average people how to defend themselves legally. Their books are often longer and usually are filled with sample letters and legal briefs. Also, you have access to the updated information online when the laws change. This one is no exception.

The book is almost 400 pages in length and includes sample letters to creditors and budgeting worksheets. Online additional information includes podcasts and financial calculators. This book will help you wherever you are in your debt issue, such as:

  • Budgeting
  • Dealing with collectors
  • Prioritizing debts
  • Negotiating with creditors
  • Dealing with foreclosures, garnishments and repossessions
  • Reducing student loan monthly payments
  • Responding to lawsuits by creditors
  • Rebuilding your credit
  • Weighing bankruptcy as an option

The 17th edition has added information about the new student loan payment options, new foreclosure prevention options and updated information on debts and individual states. The book costs less than $20 on Amazon!

“Your Money or Your Life” by Joe Dominguez and Vicki Robin

According to U.S. News, if you are looking for more of an inspirational book, Dominguez and Robin help you change your thinking and really examine if your current spending habits support the life you prefer. The goal of the book is not to turn you into the world’s most severe penny-pincher. Rather, the book is to help you determine if your spending is leading to the lifestyle and goals that really feel nurturing, life enhancing and bring you personal joy.

“The Total Money Makeover” by Dave Ramsey

According to NerdWallet, if you are looking for a book that is both motivational and provides you the all of the steps to move successfully through debt repayment, Ramsey’s book is worth a look.

“Switch” by Chip and Dan Heath

U.S. News suggests that Switch is a good book for someone who has a behavioral issue with impulsive spending. The Heaths help people figure out what portions of their thinking support positive behavioral change and what parts do not. For example, maybe rationally you realize you should not spend so much money at the mall or on Amazon, but spending has been filling an emotional vacuum in your life. The Heaths teach people how to align the emotional and rational thinking into supporting your financial goals.

As you can see, books on debt relief can help you focus upon the legal issues, the psychological issues or the actual steps in paying off debt. At Keel Associates, we are also here to help you with your debt problems. Call us today with any questions you have

A Vaccine for Cat Allergies is Closer than You Think: What’s Next

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Researchers have developed a long awaited cat allergy vaccine. The allergy is known to cause effects like sneezing, eye irritation, nasal congestion, skin rashes, and general unease among cat lovers. The Asthma and Allergy Foundation of America reveals that 10% of Americans are allergic to cats and other furry pets. According to Medical Daily, a firm called Hypocat has developed an allergy vaccine that aims to combat cat allergy.

The Swiss based research company pointed that the new vaccine is different from the commonly used treatments based on immunotherapies. The vaccine is given directly to cats and not humans. News about the breakthrough vaccine was revealed recently by the HypoPet AG Chief Executive Officer, Dr. Gary Jennings. Once administered, the vaccine fights a protein known as Fel d1 that is resident in the cat’s saliva and tears.

When a cat licks itself, it essentially spreads the Fel d1 protein allergen over its fur. The protein then spreads into the air, where it is picked by the human nasal cavity. The Hypocat vaccine produces lots of antibodies that binds and defuses the Fel d1 allergen in cats. Once it finally becomes available, the vaccine will help prevent allergic reactions and associated symptoms like nasal congestion, skin rashes and even asthma.

The test carried out at the HypoPet laboratories involved 50 cats. Each cat was given 3 doses of the vaccine in a trial that lasted 9 weeks. During the analysis, all test animals experienced increased antibody levels and developed an immune response capable of repulsing the causative allergen. The study also noted the presence of low Fel d1 in the vaccinated cat’s saliva and tears. No negative long term effects were recorded during the study.

Away from the laboratory, tests conducted on cats living with people have also shown remarkable results. Following the success of the vaccine, Forbes magazine reports that HypoPet AG is seeking to register the studies and have it tabled before US and European food and drugs regulators for final approval. This means cat owners will wait for a few years before buying or ordering the vaccine.

The complete details of the vaccine are published in the highly respected Journal of Allergy and Clinical Immunology. This is not the first study concerning cat allergy vaccination, but it is one of the most provocative since it’s not administered to humans. Past studies about cat allergies have been published in journals like Immunity, Inflammation and Disease and the Journal of Allergy and Clinical Immunology.

One of the research centers at the forefront of allergy studies and treatment is the Dublin, Ohio based Premier Allergy and Asthma. The center has an experienced team of medical experts and the clinical infrastructure to deal with stubborn allergies. Premier Allergy and Asthma employ about 100 experts in its treatment centers across the US. The experts are committed to its core value of integrity, innovation and service excellence.

For the employees, Premier Allergy ranks as one of the most preferred asthma research, treatment and care centers in Ohio due to factors like favorable work-life balance, job security, attractive compensation and accommodating work culture. For treatment and general information, simply call or visit the treatment center website for immediate assistance

Helpful Advice For Those Going Through a Divorce

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Whether you’ve been married for just a few months or several years, divorce is hard on everyone. When there are children involved, the level of complication only rises exponentially. Regardless of whether there was a major betrayal involved or a couple just simply “grew apart” over the years, divorces can quickly and easily become messy, complicated, highly emotional affairs. No divorce is ever truly easy but there are certainly ways to make things more or less complicated. Here are four tips for those going through a divorce.

1. Consult an attorney early on

Too many couples assume that consulting a divorce lawyer is, in and of itself, the death knell of their marriage. Contrary to popular opinion, however, most divorce lawyers would rather see a marriage repaired than severed. In fact, many couples that consult an attorney end up discovering that fixing their marital problems may, in fact, be a far simpler solution than getting a divorce. The sooner you consult a divorce attorney, the more you know what your options are and the better you can plan the course of action that is right for you.

2. Set good boundaries

Even the most amicable divorces will inevitably pull up a dizzying array of emotions. Going through a divorce is essentially the polar opposite of falling in love. The emotions involved in separating are every bit as strong and confusing, but they are often painful. It can be easy to want to lash out in pain one minute and then think you are making a huge mistake the next. All of which your spouse is going through at the same time. The important thing is to not act on sudden impulses as they come. Setting good boundaries can help you keep from acting impulsively and then regretting it later. As much as possible, any communication during this time should happen between divorce lawyers or other trusted intermediaries or in the presence of adult third parties such as family therapists or parenting coordinators.

3. Take time for self-care

Again, no matter how amicable a divorce may be, it is still a painful ending. As strange as it may seem, eating a healthy diet, getting lots of good exercises and spending time with family and friends will go a long way towards helping you ease the pain and work through painful emotions. Sleep may be difficult at times but doing your best to get plenty of rest will also help carry you through this painful time.

4. Explore your options

There are a wide range of services available to divorcing couples these days, as well as different options for severing your marriage. Parenting coordinators can help couples maintain good boundaries by working as an intermediary to help couples keep from unconsciously making their children pawns in their divorce. A collaborative divorce can also help make the severing of legal ties more amicable. A collaborative divorce is a negotiation process that takes place between the couple. Rather than having the court simply make arbitrary binding decisions, collaborative divorces are more like a custom-made divorce created by the couple. This allows them to create a plan that best meets the unique and individual needs of their family.

The tools you use to sever a marriage will determine how much pain and anguish is involved. If you try and sever it with dull tools like a butter knife, you will simply prolong the agony. Using a sharp saw to sever the tie will result in a faster and more painless procedure. Tampa divorce attorneys can help you sever your legal ties with the least amount of pain and anguish possible

How to Incorporate Philanthropy Into Your Business

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During 2018, corporate philanthropy in the U.S. was responsible for over $20 billion in donations to various charities across the 50 states. That number was noticeably higher than the one in the prior year. It was also one of the highest amounts ever reached in the U.S. When those figures are cross-referenced with historical patterns, it seems fair to expect the donations in 2019 to be even higher. And rightly so. After all, one of the most meaningful ways in which companies can contribute to their communities is by employing philanthropy.

The reason why many businesses fail to help their communities boils down to their inability to find an efficient strategy to do so. This happens when there are disagreements between the senior management and those charged with governance on potential methods of giving back. Fortunately, according to a seasoned and established philanthropist, Rusty Tweed, there are a few easy ways to implement a culture of giving into practically any organization.

Allow On-the-Clock Volunteering

A large number of professional service organizations have recently turned to the on-the-clock volunteering method of philanthropy. The way that it works is based on paying employees for something that has nothing to do with their job. Instead, they are incentivized by compensation to find a volunteering event and participate for a full working day. There are a few important benefits from this strategy and they include higher worker motivation, productivity, and, most importantly, better community relations. The fact that the employees get to pick what type of event they want to attend is also an outstanding way to let them engage with causes that they personally value. After all, not all members of an organization are going to have the same background. Hence why it is not surprising that they may want to participate in different volunteering openings.

Provide Platforms for Workers to Donate

Since people may not have enough time to attend volunteering opportunities, it is crucial to establish a platform where they can submit financial donations. This will act as a direct alternative to anyone who would rather focus their philanthropy on monetary assistance. In most cases, however, companies do not have a formal way to gather funds for their community and simply let their employees donate through external parties. While there is nothing wrong with that approach, having a centralized platform where all donations can be gathered will increase the number of those who give back. That way, the cumulative amount of money gathered for the community will grow and the business will be able to assist more people.

Set Aside a Portion of Profits

Finally, Rusty Tweed stresses that companies should never rely solely on their workers to be philanthropic. They must also lead by example and ensure that they showcase a long-lasting track record of donations to charitable causes. The easiest way to do something like this is to determine what amount of profits can be set aside and given back to the community. Obviously, that percentage will depend on the current state of the economy, revenues, expenses, and similar. Regardless of the actual dollar figure, simply having an approved course of action that lets the business make perpetual donations will be a perfect embodiment of the philanthropic spirit.

Some other ways to incorporate philanthropy into the company include things like formal meetings where employees are introduced to community events, newsletters, and so on. Before getting into these options, however, it is important to consider the ones mentioned above as they have been proved to work very well in every market

Ballast Associates Discusses How to Get a Debt Consolidation Loan With Bad Credit

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Many of us go through financial challenges. Whether it’s finally pursuing that startup, experiencing a medical condition, or being able to purchase a home, there are many reasons why we accumulate debt.

Nobody plans to be stuck in debt. However, the statistics are staggering about debt in the US. A website named Lexington Law stated that the average consumer debt in the US amounts to $ 11,700. For others, it could be even more due to home and auto mortgages, student loans, and other recurring payments. On average, Americans owe 26% of their income to debt.

When debt is left unpaid, interest can accrue over time which may result to even more debt or giving up properties under equity loans.

What is a good solution to get out of debt?

According to Ballast Associates, a well-known financial advising company, debt consolidation is one of the great ways to help pay off your debt in a more manageable way. Debt consolidation is a process wherein a company offers a loan by compiling your total debt and turning it into a single, lower monthly payment.

Although terms under debt consolidation loan are longer than usual, you can be assured with a monthly rate that you can pay with your present income.

Most people may consider having a debt consolidation loan but are worried that they may not be approved due to bad credit. It is still possible to get a debt consolidation loan despite having a bad credit–Ballast Associates provides insight on how to succeed with this.

Ballast Associates Discusses How to Get a Debt Consolidation Loan With Bad Credit

Find a company that accepts poor credit.

The first step in securing a debt consolidation loan despite poor credit is browsing companies who would offer this in the first place. For example, Lending Tree offers debt consolidation or personal loans even for people with bad credit. It is easier to take out loans from private lenders than bigger companies as larger companies would have more qualifications needed for security.

The only caveat with some personal loans, private lenders, and other companies who are willing to provide loans for those with poor credit are the high-interest rates. If you think that you’d rather get approved despite bad credit with an interest rate that’s a little higher, then you can choose this option.

Verify with your credit union.

Another option which can save you money for better interest rates is checking with your credit union. Your credit union may have debt consolidation offers for lower interest rates even under bad credit. Being a member of a credit union for a longer period of time will increase your chances of getting approved.

Credit unions offer both secured and unsecured loans. Federal credit unions are often the most affordable ones, but State credit unions can also have competitive rates. Another benefit of credit unions is that they can be more forgiving if there comes a period that you’re unable to pay. If you often take out loans and would want lower interest rates, you may consider joining a credit union.

Have a co-signer with good credit.

According to Ballast Associates, having a co-signer with good credit can increase your chances of securing a debt consolidation loan. Usually, debt consolidation companies scan applicants by their credit score. A low credit score is often shunned especially if they are only considering a certain range.

However, some companies are more lenient as they offer the option of having a co-signer. They can also look into the co-signer’s credit score, and this will be a guarantee for them that the debt consolidation loan will be paid off.

Although getting a debt consolidation loan with bad credit may be challenging, be assured that you’re one step ahead towards approval with these strategies

Second City Advisors Discusses The Worst Type of Debt to Have in 2019

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There are many worrying and troublesome types of debt in the United States today. Millions of Americans are burdened by credit card or medical debt. They lead to thousands of bankruptcies and countless sleepless nights every year. But one form of debt, student loan debt, maybe the worst of all. This type of debt is often present at high numbers and, most importantly, it has a special status during bankruptcy proceedings.

Student loan debt status in bankruptcy

One of the scariest aspects of student loan debt is the fact that it cannot be discharged in bankruptcy. Almost all other forms of debt are subject to default in a bankruptcy proceeding. Bankruptcy is rarely a positive development and can cause many problems for an individual’s life. But the nature of bankruptcy means that most debts a person incurs can disappear if their finances grow too dire.

Bankruptcy is a safety valve that can bring some sort of peace and security as an individual lives their life and sorts out their finances. Student loan debt, on the other hand, will almost always follow an individual around. It can lead to wage garnishment and the loss of tax refunds. This process makes student loan debt different in kind from other forms of debt. It has the possibility to ruin a person’s life for decades with no end in sight.

Amounts

Another reason why student loan debt is the worst type of debt is that it is often present in high amounts. For many jobs and universities, individuals are required to take out tens or hundreds of thousands of dollars in student loan debt. Some law schools require a quarter of a million dollars to make it through all three years. Amounts are astronomical and are growing every year. They also leave an individual in an unfortunate situation if they do not end up graduating.

For instance, the average job with an undergraduate degree often pays around $48,000 per year. An individual could pay $1,000 per month towards their student loans with some difficulty. People with $200,000 of student loan debt would, therefore, have to pay that $1,000 per month for over 16 years with no intervening money crises. This calculation does not take into account the fees, interest payments, and potential penalties that come along with every student loan.

How to handle it

Anyone who currently has student loan debt needs to first assess their finances. They need to figure out how much debt they have and how paying off that debt would affect their routine finances. Then, they need to make a plan for paying off that debt and see how long it would take them. If they are unsatisfied by their findings, an individual with student loan debt needs to seek out the services of an advisor such as those at Second City Advisors. These advisors will help individuals set a budget and get counseling help to deal with their debt issues.

Conclusion

People with student loan debt should not panic. They do not need to fret about default or never being able to make a payment. Instead, they need to set a plan and find a partner such as Second City Advisors who will help them reach their goals. A competent partner is the main asset that most people who can shake off student loan debt have at one point or another

Kalu Yala Reviews Tips for Doing Long Distance From the Jungle

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Kalu Yala Reviews are here to help you in all parts of life, and today we’d like to discuss how to maintain a long-distance relationship when one of you is spending time in a remote area like the jungle! Kalu Yala Reviews knows that keeping a long-distance relationship going can be difficult, even under the best circumstances, but keeping in touch and involved in each other’s lives while one of you is in a remote area can make it even more difficult. Here Kalu Yala Reviews has included a few tips to help make your long-distance relationship thrive while you are apart.

1. Keep in touch!

The most important thing is, of course, to keep in touch with your loved one. When one of you is in a remote location this can be more difficult, but it’s important to put in the effort to keep in touch no matter what method you must use. There is a kind of charm to writing actual letters instead of emails or text messages. Perhaps your loved one won’t be able to receive calls very often. In that case, sending a quick video message via email or text is a great way to make sure that they can see your face.

2. Stay involved!

It’s important that the two of you stay involved in each other’s lives. Whether this means talking about your job, your classes, your hobbies, and activities or anything else make sure that your special person knows what’s going on with your everyday life!

3. Set ground rules!

It is very important to set clear and manageable expectations at the outset of your time apart. Is it reasonable to think that you’ll be able to speak two or even one time a day? Make sure to take issues like time changes, communication accessibility, and simple hours in the day into consideration when making these ground rules. It might not be possible to speak every day if you both have outside commitments!

4. Enjoy your time apart!

A truly healthy relationship should be able to withstand some time apart. It’s certainly normal to miss each other, but it’s not necessary to do nothing but mope around about your missing partner. Use this time apart as an opportunity to pick up a new hobby, spend time with friends or family, immerse yourself in a big project, volunteer in your community or anything at all!

5. Be honest

Make sure that the two of you are on the same page, and don’t let a small lie become a big problem in your relationship. Some minor jealousy is normal when maintaining a long-distance relationship, but lying is not necessary! Make honesty your policy right from the beginning and you won’t be tempted to sugar-coat the truth just because you feel your partner won’t like to hear about you going out with friends.

All in all, you can make a long-distance relationship work. In fact, long-distance relationships have their own special moments, and remember that it will be all the sweeter when you are back together

Brice Capital Types of Loan

Brice Capital Share the Types of Loans and When to Use Them

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Looking to buy a new home? On the market for a new car? Interested in remodeling your home? Whatever your needs, it’s important to choose the right loan. In order to find the right loan for your needs, you need to determine which one is the best option. This guide will explain the seven most common loans and what you can use them for, according to Brice Capital. 

1. Conventional Loans

These loans are otherwise known as mortgages that come from lending institutions that are not affiliated with the Federal Housing Administration or the U.S. Department of Veteran Affairs. You can apply for a conventional loan through your bank, credit union, or mortgage lender. Other types include government-sponsored conventional loans through Fannie Mae or Freddie Mac. A conventional loan is a good choice for potential home buyers who have good credit and the available funds towards a payment.

2. Conforming Loans

Conforming loans are also mortgages that are offered by Freddie Mac and Fannie Mae. The only difference with this loan is that it comes with a maximum amount that’s established by the Federal Housing Finance Agency. You have to satisfy the requirements for the Fannie Mae or Freddie Mac loan. In order to qualify for a conforming loan, you must have a credit score between 620 and 640. If your credit score is lower, then you could still qualify for an FHA loan. 

4. Non-Conforming Loans

Unlike conforming loans, non-conforming loans don’t follow the guidelines and qualifications set by Fannie Mae and Freddie Mac. If you need a loan that has a larger amount then a conforming loan provides, then you should look into various non-conforming loan options such as jumbo loans. The right jumbo loan can be hard to find since there are limited options. You’re also subject to higher down-payments and more scrutiny cautions Brice Capital.

5. Secured Loans 

A secured personal loan allows you to borrow money towards an expense such as a new vehicle or home repairs. Secured means that it is backed by collateral, such as your home or vehicle. Your property can be seized in the event that you don’t pay back the loan. You can apply for a secured loan at a bank, credit union, or another financial lender. 

6. Unsecured Loans

Unsecured loans aren’t backed by collateral. Instead, it’s based on your credit history and income. You must have an excellent credit score in order to be approved for an unsecured loan, otherwise the interest rates will be much worse. You can use an unsecured loan for going to college, starting a business, consolidating debt, or purchasing an expensive item. Types of unsecured loans include credit cards as loans, a personal line of credit, peer-to-peer loan, and student loans. 

7. Open-Ended Loans 

Open-ended loans come with a fixed limit that you can borrow again once you repay the original amount. Credit cards and home equity loans are two examples of open-ended loans. In this case, the lender will approve you for a certain amount based on your credit history and the balance owed on your loan. This is similar to a line of credit that you can borrow, repay, and borrow again. Homeowners often use open-ended loans to help them pay home improvement projects. 

8. Close-Ended Loans

Close-ended loans cannot be used more than once. Examples of close-ended loans include car loans, mortgages, and student loans. The loan amount will decrease as long as you meet the monthly payments. If you need to borrow more, then you’ll have to reapply for another loan. For example, if you borrowed a loan for a vehicle but you need one for a separate expense then you’ll need to find a different lender. If you only need a certain amount of money, then this is the best option to choose.