Categories
Credit Financial Savings

Creating a Budget with a Credit Card

How to Create a Budget with a Credit Card

Introduction

Though credit cards make it easy to overspend, they also make it easy to keep track of and control your spending. If you have a hard time balancing your finances, there are many methods you can use to create a realistic and effective budget with a credit card.

General Tips

Most major credit cards group purchases by category and allow you to search through transactions and get detailed spending reports. This includes:

  • The option of viewing spending reports for any given period of time within your account (ex. for the week or monthly)
  • This allows you to not only devise a budget based off of when you get payed, but also make any necessary adjustments due to unexpected expenses

Establishing and Estimating Your Expenses and Income

Expenses

A good way to do this is by making a note of everything you pay each month, including:

  • Mortgage/rent
  • Insurance payments (auto, health, home, etc.)
  • Utilities
  • Cable, phone, and/or internet
  • Food
  • Non-essential purchases

It is important not to dismiss small purchases, as these can add up quickly. If you are not actively paying your credit card balance off, you must include an additional charge for interest from the card issuer. Try your best to avoid this by paying the account balance off at least once or twice per month.

Income

Calculate exactly how much income you generate each month. This includes your base salary and any extra money you have from other sources. It is a good idea to consider how often you get paid, so that you do not end up with bills you cannot cover before your paycheck.

  • For example, if you know your next paycheck does not come until the end of the month, do not schedule any major expenses on the last week of that month
  • If this happens, you can easily get behind on your bills

Comparing Expenses and Income

The next task is to analyze your income versus your expenses. If your spending is more than your income, it is likely that you will run into debt. However, if your income is greater than your spending, you should end up with money left over.

There are services available that can do this for you and make it easier to see where you are overspending. The difference between the two values will show the excess/inadequacy of your funds. When considering your budget, it is always a good idea to set aside a contingency fund for any unexpected costs that you may incur.

Some of these service capabilities include:

  • Grouping your expenses by category
    • These can include retail shopping, dining out and other food costs, rent, and insurance payments
  • Some of these programs allow you to set a budget per category and may even notify you when you are approaching the set limit

Alternately, you can do it yourself by going through your bank and credit card statements:

  • Group your purchases into your own categories and calculate the total for each month in each category
    • You may want to use the same or similar categories that are generated automatically by credit card services, but you may want to use others instead
  • Compare the values to see where and on what you are spending the most money and make any necessary adjustments, such as wanting to shop online less

Both of these methods have pros and cons. Using services is:

  • Quicker and easier
  • But there is always the chance that programs will make mistakes:
    • They could input incorrect values or group expenses into the wrong category
    • Though these problems are uncommon, it’s not a mistake you want to make

Conversely, doing it yourself has its own pros and cons:

  • It is more thorough because you have the ability to nitpick through your expenses
  • However, it is tedious and takes much longer

Conclusion

The bottom line is that looking at a visual breakdown of your expenses is the most effective way to determine your budgetary status. Your goal, whether you are in debt or have surplus, should always be to save money and cut expenses.

Categories
Legal Social Security Disability

Mental Health Disability Claims

Mental Health Disabilities

The Social Security Administration uses pre-established mental health guidelines to determine which applicants for benefits qualify. These disabling impairments and their criteria are listed in what is referred to as the Blue Book. It lists the exact criteria and conditions that will allow an individual to qualify for and collect Social Security Disability benefits. There are a total of 9 mental health categories covered, and they are:

  • Anxiety Disorders
  • Affective Disorders
  • Autism Spectrum
  • Mental Retardation
  • Organic Disorders
  • Personality Disorders
  • Psychotic Disorders
  • Somatoform Disorders
  • Substance Addiction Disorders

Each category is evaluated with its own criteria, and to qualify for benefits, the applicant will need to show that they meet said criteria. An alternative is to show that the cumulative effect of multiple disabling conditions is equivalent to the accepted criteria.

Anxiety Disorders

To claim SSDI benefits for an anxiety disorder, you must have medical evidence demonstrating at least one of the following:

  • Compulsions and obsessions that result in distress
  • Recurring and unpredictable anxiety or panic attacks weekly
  • Persistent irrational fear
  • Persistent anxiety with symptoms like motor tension

Affective Disorders

The requirements to qualify for SSDI with an affective disorder you will need to demonstrate two years of treatment along with the inability to function outside of a supportive environment or have documentation that acts as evidence showing your condition effectively prevents functioning in any work environment.

Autism Spectrum

You will need to show demonstrably that the condition prevents normal communication, social interaction, and engagement. You must also show that these limitations prevent your ability to work.

Mental Retardation

You, or your ward, will qualify if you can show documentation showing any one of the following:

  • Depending on others for personal care, like bathing, eating, using the bathroom
  • IQ of less than 60
  • IQ less than 70, combined with other physical or mental conditions that preclude working

Organic Disorders

You may qualify for benefits if you can show that you have been receiving treatment for one or more of the following for two years with the persistence of the condition.

  • Time and place confusion
  • Memory disorders
  • Hallucinations
  • Personality changes
  • Mood disturbances
  • Limitations of daily activities
  • Limitations of socialization
  • Loss of 15 IQ points or more

Personality Disorders

You will need to show evidence of your condition causing you to be unable to adapt to a social or work setting. Your disorder will also need to show at least one additional symptom such as seclusion, autistic thinking, hostility, passiveness, odd behavior patterns, impulsive damaging behavior, and more.

Psychotic Disorders

Qualifying for SSDI under this category requires medical documentation showing two years or more of your condition’s impact on your ability to be in a work environment. You may also be able to qualify if you have any symptoms that severely affect your ability to be in a social or work setting, like hallucinations, delusions, incoherence, and more.

Somatoform Disorders

For somatoform disorders, you will need medical evidence showing a history lasting several years of physical symptoms that require drastic lifestyle changes, by the age of 30.

Substance Addiction Disorders

To qualify for SSDI for substance abuse disorders, you must prove with medical documentation that the abuse issues have resulted in a mental disorder, neurological disorder, or digestive disorder.

Categories
Legal Mass Tort

Mass Tort vs. Class Action Lawsuit

Differences between Mass Tort vs. Class Action Lawsuit

Most people have heard of or even been part of, a class-action lawsuit, but it is rarer to find people that are familiar with a mass tort. While each type of action can result in a similar judgment or outcome, they are not interchangeable and are handled differently in court.

It is not uncommon for lawsuits to be brought against a company or organization by multiple individuals seeking to recover compensation for damages. In the case of a mass tort and a class-action lawsuit, the plaintiff is a large group of people who all have the same complaint against the defendant.

This complaint alleges significant harm that was caused by the action or inaction of the defendant. In both scenarios, multiple suits are compiled into a single legal action instead of separate lawsuits for each defendant. The aim of both is to reduce the number of cases in the court system.

Primary Differences Between Mass Tort and Class Action Lawsuits

Mass Tort

They are also usually smaller in scale than class-action suits. Mass tort actions are often comprised of individuals from a similar region or geographic area, which is why they are frequently smaller than class-action suits. Despite plaintiffs in mass torts being grouped together, they are treated as individuals with regard to proof. The means each person must prove the facts of their case, such as injuries, damages, and so on.

Class-Action Lawsuits

In a class-action suit, the plaintiffs are consolidated into a “class”. They are represented by a single person known as the class representative. They will represent the entire class and are will be treated as one singular plaintiff.

How Do I Know Which Case Might Apply To Me?

Mass Tort

A mass tort is frequently used when one or more of the criteria needed to file a class-action suit is not able to be met. This can happen when the plaintiffs each have some degree of variance in their claim or injury. This variance may be too different and can offset the issues more central to the lawsuit.

Class Action Lawsuits

When a class-action lawsuit is initiated, all members of the class must be advised of their inclusion in the suit. They must also have the chance to either use their own attorney or to opt-out entirely. The first step to creating a class-action lawsuit is to find a representative for the class and file a motion declaring their intent to act as the plaintiff on behalf of the class. The following requirements must be met in order to qualify for a class-action:

  • The number of potential plaintiffs in the class makes a joinder or mass tort impractical or impossible.
  • The case contains questions of law that are common to the entire class.
  • The claims made in the lawsuit are the same or highly typical for the entire class.
  • The party designated as the representative will be able to adequately and fairly protect the class’s interests.
Categories
Legal Social Security Disability

What is My Disability Onset Date?

What is My Disability Onset Date?

The short answer is that your disability onset date is when your disability first prevented you from working. Your disability onset date will be important when working with the Social Security Administration. It can affect your pay period and even your overall eligibility for SSDI or SSI benefit payments. Your disability onset date will ultimately be determined by the SSA. They have to first consider your medical records, work history, personal testimony, and so on.

How The Disability Onset Date Is Determined In Most Claims

If the applicant suffers from a disability that is not due to a traumatic event, as are most SSDI and SSI claims, the following factors will be considered by the SSA:

  • The Applicant’s Allegations Or Testimony – This will be your statement regarding your disability and the date on which it began. This will be included with both your application and the Disability Report.
  • Applicant’s Work History – The Social Security Administration office for your district will document the claim with the date on which you stopped working. This is shown on the Work Activity Report SSA form. This will require a different form for employees versus self-employed people.
  • Medical Evidence – Here you should furnish all available and appropriate medical records and submit them for consideration. Some ailments, particularly those that are slowly progressive or have a long latency will prove difficult to determine an exact date for, but the officials at the Social Security Administration will make the best, educated inference possible with the available data.

It is important to note that every case will be different from the next. While the disability onset date may vary in some situations, it cannot be inconsistent with the documented medical evidence.

In some circumstances, it may be inferred or demonstrated that the disability onset occurred before the first medically recorded occasion. In cases such as this, the disability onset date is often dependant on the judgment of the presented facts by a medical advisor.

What happens if the applicant suffers from a disability that is the result of a traumatic event? Then the disability onset date will be the date of the injury, but only if the injury is projected to prevent working for a minimum of 12 continuous months, or if the injuries are severe enough that survival is not expected.

Blindness & Childhood Disability

As stated earlier, each disability case will be different. This means each one will have its challenges as well. This is why people frequently work with disability lawyers. So they can be assured that their disability onset date will be determined correctly. There are two special cases to consider:

  • Blindness – In the case of statutory blindness, the disability onset date is the date on which the evidence shows the impairment met legal requirements.
  • Childhood Disability – With childhood disabilities, it is often not necessary to prove a specific disability onset date, as long as the condition was established in medical records before their 22nd birthday.
Categories
Financial Insurance

How Much Homeowners Insurance Do I Need?

How Much Homeowners Insurance Do I Need?

We wish we could give you a simple answer, but the amount of home insurance coverage that you need varies from that of your neighbors. There are multiple factors that go into calculating your homeowners insurance policy, but with this guide, you can get a better idea of how to figure it out for yourself.

What Do You Need Coverage For?

To start the process, you need to figure out what your homeowners insurance policy will cover. In most cases, you need enough coverage for:

  • Rebuilding Your Home
  • Extended Dwellings and Buildings
  • Replacing the Contents of Your Home
  • Legal and Medical Expenses for Injuries Sustained on Your Property
  • Reimbursing Living Expenses that You Incur After Losing Insured Home/Building

What Kind of Coverage Do You Have?

Most homeowners insurance policies are replacement cost insurance by default, but some companies also offer actual cash value insurance (ACV). ACV insurance comes at a lower premium because you get less coverage. You only get reimbursed for the current value of your home and its contents, which is typically less than replacement cost due to depreciation. If you get replacement cost, you will have a higher deductible, but you won’t have to worry about any out-of-pocket expenses when you build or replace items.

Calculating the Amount of Coverage for Your Buildings

There are so many elements that go into building a home, so it can be difficult to calculate the exact replacement cost. However, you can come up with a close estimate when you: 

  1. Multiply the square footage of your home by local construction costs.
  2. Get a second estimate from a free online calculator.
  3. Hire an independent insurance agent to calculate your replacement cost.

It’s important to remember that these estimates could change based on recent changes in the economy, building codes, or your home. If you remodeled a room or added more living space, don’t forget to include it in your calculations. You should also account for any irreplaceable or hard-to-replace features in your home.

Calculating Personal Property Coverage

Once you know how much structural coverage you require, you need to add the cost of replacing your home’s contents. Your personal property is anything that you keep inside your home or buildings. It could include everything from clothes and antiques to cars and furniture. In order to determine the amount of replacement coverage you’ll need, you should keep a running inventory.  

How to Make a Home Inventory

Though it can be a tedious task at first, an inventory can prevent the shock of being underinsured. To start, you can go around all of the rooms in your house taking pictures of your belongings. From there, you should write down every single item—no matter how big or small—because the costs can quickly add up. Once you have a home inventory, you should update it with every purchase. From there, you’ll be able to quickly determine the value of your personal property.

Extended Coverage for Rare and Expensive Items

Many insurance companies put a limit on rare and expensive items. If you have valuable collectibles, art, instruments, designer clothing, or any other expensive items, you should get extra coverage. While you are making your inventory, it is important to make a list of all of your expensive items so that you can ask your insurance agent whether or not they are covered under your current policy.

Adding Liability Coverage

Liability insurance covers the medical costs and lawsuits you might face if someone gets injured on your property. It’s specifically designed to cover people who don’t live in your home. Most policies carry a minimum of $100,000, but we encourage you to get as much as you can afford. $300,000 to $500,000 is a better start.

Request a Car Insurance Quote

Once you have all of the numbers calculated for your structures, personal property, and liability, you can determine the total amount of homeowners insurance coverage that you’ll need. If you ever need any assistance, a third-party insurance agent can guide you through the process. You can then use your coverage amount to collect a homeowners insurance quote before you decide on a policy!

Categories
Financial Insurance

How Much Does Homeowners Insurance Cost?

How Much Does Homeowners Insurance Cost

The National Association of Insurance Commissioners says that the national average for a homeowners insurance premium is $1,200 per year. However, that cost can differ depending on location, the size of your home, credit history, and so many other factors.

In this guide, you’ll learn more about these factors and how they impact your homeowner insurance premiums. You’ll also learn more about ways you can lower your homeowners insurance rate without compromising on your coverage. 

How Location Impacts Premiums

Not only do homeowners insurance premiums vary from state to state, but they can also vary drastically from city to city. For example, a home in a dense city will have much higher rates than the exact same home placed in a rural setting. If you are planning to move to a new state or city, you should do your research and see how your homeowners insurance will be affected.

Many states fall around the $1000 to $1,300 range. There are some outliers on both ends of the spectrum, though. For example, Oregon, Utah, and Idaho offer average premiums under $700 a year. Their mild weather makes them safer places to live.

Coastal states, such as Louisiana, Texas, and Florida sit on the other end with premiums exceeding $1,900. Oklahoma and Kansas are also expensive because they sit right in Tornado Alley. If your home is more suspectable to damage, theft, or vandalism, there is more risk involved for your insurance company. Therefore, they charge you a higher premium to offset that risk.

How Premiums Vary by Provider

Along with the location, premiums differ from one insurance provider to another. Some insurance companies specialize in high-value homes with personalized service. They tend to market more towards wealthy homeowners. As a result, they have average premiums as high as $6,000 a year.

Some companies also carry different risk. If you choose insurance from a provider that covers homes threatened by natural disasters, you’ll pay a higher rate to help cover their risk. For that reason, we recommend that you don’t choose an insurance company that insures coastal areas if you live in a mild-weather state.

If you have a standard home, a standard insurance company will provide adequate coverage for more affordable rates. Most standard carriers have an average annual premium between $1,100 and $1,400.

Other Factors Influencing Insurance Premiums

There are so many elements that go into building a home, so it can be difficult to calculate the exact replacement cost. However, you can come up with a close estimate when you consider: 

  • Coverage Amount: Much like with any other insurance, a higher coverage amount equals higher premiums. If you have an expensive and personal property, you can expect to pay much more than a neighbor in a less valuable home.
  • Credit History: Insurance companies are allowed to check your credit history in many states. Therefore, you should work on raising your credit score if you want lower rates.
  • Home Age: While beautiful, historic homes have old wires and plumbing, they put you at a greater risk for water damage and fires. As a result, they tend to have higher premiums.
  • Attractive Nuisances: If your home has any extra features that increase your personal liability, you can expect to pay more. Examples of attractive nuisances include trampolines, swimming pools, and playhouses.
  • Deductible Amount: You can lower your premium by raising your deductible, but you should try to find the balance. If you can’t afford to pay your deductible, then the lower premiums won’t have saved you anything.

Homeowners Insurance Discounts

If you’re looking for more ways you can lower your homeowners insurance quote, then we recommend asking your provider about their discounts. You can often bundle your other insurance policies for savings, or you can consider decreasing your risk by:

  • Installing Fire Safety Features
  • Adding Deadbolts to Your Doors
  • Investing in Wind Protection

Find Out Your Homeowners Insurance Cost

If you want to know more about the cost of homeowners insurance in your area, we suggest that you request several quotes from local providers. To start, you may need to calculate your coverage amount. You can check out some of our other homeowners insurance articles to learn more about that process.

Categories
Financial Insurance

How Long Should My Life Insurance Last?

life insurance how long should it last

When shopping for life insurance, you have to make a lot of decisions. One of those decisions is choosing a policy length. Many life insurance providers offer coverage until your death or for a set period. In order to choose the best life insurance policy length for your needs, you must consider three things:

  • The Amount of Coverage You Need
  • Your Budget
  • How Much You Qualify for Based on Age and Income

Life Insurance Lengths

Once you select the amount of coverage you need for your life insurance policy, you must start to consider all of the options you have for the length of coverage. As we mentioned earlier, different companies offer different lengths. You may find one company that offers permanent life insurance, which covers you until death. Some permanent policies max out at 100 years, however.

Other Insurance providers offer term life insurance, which provides you with coverage for a set term. Most of these term policies are good for 10, 20, or 30 years. You may see some that offer other increments of five or 10 years. In fact, some offer up to 35 or 40 years of coverage.

How to Calculate Your Life Insurance Coverage Length

With all of the different term options, it can be difficult to choose a length for your policy. Therefore, it’s important that you remember why you are getting the policy. Life insurance is designed to pay death benefits to your beneficiaries if you die during its term. These death benefits protect your family from financial burdens resulting from your death.

What kind of financial burdens are we talking about?

Mortgages, bills, and every day costs of living don’t stop just because you die. If your income contributed to your household, life insurance makes sure that surviving members of your family can continue to pay for their lifestyle. It also ensures that a roof stays over their heads by paying off a mortgage completely or contributing to monthly payments.

With that in mind, you can better calculate the length of life insurance coverage that you’ll need. New parents may want 20 to 30 years of coverage to cover the length of time that you’ll have children depending on your income. A longer term can also help pay for college!

Homeowners should plan for a policy that covers the length of their mortgage. 30-year terms are the most popular length for that reason. With this coverage, you can have peace of mind knowing that your family won’t lose their home if something happens to you.

Determining Term-Length Eligibility

Even if you decide you need and can afford a certain term length, you don’t have the final say in the matter. Your life insurance provider ultimately determines how long you can be insured. They typically base your eligibility off of your age and income. In most cases, older people have more limits, but there are some companies who are willing to offer their longest term length to older applicants. It’s important that you speak with a life insurance agent to see how many years of coverage you qualify for.

Learn More About Policy Lengths for Life Insurance

Are you interested in learning more about policy lengths and how they affect your life insurance? If so, we recommend that you get in touch with several different providers. Though this guide serves as a basic guideline, they can give you all of the information you need to make an informed decision for you and your family.  

Categories
Family Financial Insurance Senior

Medicare Insurance: What to Know About It

medicare insurance guide

As you start to approach retirement, there’s a lot of things you have to plan for, and your health insurance is one of them. Many Americans enroll in Medicare insurance every year, but few understand it well.

It can be overwhelming when you see all of the different coverage options, but you don’t have to struggle through the decision-making process. With this guide to Medicare insurance, you can learn more about eligibility, coverage options, and costs.

Who is Eligible?

In most cases, you become eligible for Medicare upon turning 65. You can sign up as early as three months before your 65th birthday, or you can sign up any time in the four-month period that follows your birthday.

While Medicare is typically reserved for seniors, there are some exceptions. Younger people with disabilities may be deemed eligible for coverage. It is also available for individuals with End State Renal Disease, which is a permanent kidney failure that requires a transplant or dialysis.  

How Much Does It Cost?

The cost for Medicare depends on several factors, including your income. It can also depend on the plans you enroll in:

  • Part A: In some cases, your Part A coverage may be completely free! If you or your spouse have paid Medicare payroll taxes for ten or more years, you shouldn’t have to pay any premiums. Others who didn’t pay the taxes could pay several hundred dollars for their monthly premium.
  • Part B: Your Part B coverage comes at a standard rate. It is currently $144.60 each month, but it is expected to increase by a few dollars in 2021. You can easily look up the standard rate for your coverage at any time.
  • Part C: This all-in-one plan is offered by private companies, so the cost of your monthly premium depends on the plan you choose. You can find a variety of options to fit any budget.
  • Part D: The cost of part D coverage also depends on which plan you choose. The most basic coverage starts at $30 per month, but you should keep in mind that there are additional costs for copays, deductibles, and out-of-pocket expenses.

What Does it Cover?

Different parts of Medicare offer different coverage options. Part A is more for hospital stays and short-term nursing home stays. Part B is what most people consider a standard health insurance plan. It covers your doctor visits, preventative screenings, flu shots, and more. Part D covers your prescriptions drugs. Part C is also known as Medicare Advantage, and it offers all-in-one coverage.

How to Get Additional Coverage

If you didn’t get a Part C policy, you may find yourself needing to supplement your Part B Insurance with a Medigap plan. These plans are lettered A through N, so there are plenty of different options from which you can choose. We recommend that you speak with an insurance agency to find out which Supplement plans best fit your needs and budget.

Request a Medicare Quote

Whether you are using private or public Medicare insurance, there are many different prices and plans available. The best way to find the policy that best fits your needs is by requesting different Medicare quotes. You can also visit medicare.gov to learn more about Medicare coverage, costs, and supplements.

Categories
Legal Personal Injury

Can I Sue My Employer For Negligence?

Can I Sue My Employer For Negligence?

When it comes to the relationship between an employer and their employee, things are usually great for a while. In the event that things go wrong, however, it is important that you know what your rights are as an employee. The law sees this relationship and does its best to keep all parties involved covered and rights protected.

So, if you are injured at work and your employer is at fault, what are your options? Are you able to file a negligence lawsuit against them? The short answer is no. Let’s take a closer look at what you need to know about your rights and seeking financial repayment for workplace injuries.

Suing Your Employer for Negligence

If you are injured at work and the accident was your employer’s fault, suing your boss for your medical expenses may seem like the logical thing to do, but it isn’t necessarily the right answer. Most states across the country have workers’ compensation laws in place that were made specifically to help employees seek compensation after a workplace injury.

Because of the workers’ compensation system, you cannot sue your lawyer unless the negligence was intentional. Businesses have workers’ comp insurance set up to cover employee injuries and it protects them from having to deal with lawsuits.

Workers’ Compensation

Workers’ compensation was designed to keep the employee and employer protected. In order for an employee’s accident to be covered, there are some strict rules that must be followed. First and foremost, the injury has to occur while the employee was following their company’s rules. However, if not, they may not be eligible for financial help.

If you work in a factory and one of the safety rules is that protective eye gear must be worn at all times, then you need to be sure to wear them. If you aren’t wearing them and a large piece of metal is lodged into your eye socket, then you are on the hook for your own negligence.

When Can You Sue Your Employer for Negligence?

Generally speaking, in most cases, you cannot sue your employer for negligence. However, here are a few circumstances in which you may be able to file that lawsuit:

  • Your employer is without workers’ compensation insurance
  • Your employer hurt you intentionally
  • You are not technically employed by the company

Returning to Work Following an Accident

If you suffered severe injuries at work, returning to work can feel overwhelming. In order to claim worker’s comp benefits, it is important that you return when your doctor releases you. Otherwise, you may miss out on the workers’ compensation benefits.

Workplace injuries that leave you missing shifts are expensive in multiple ways. Not only do you have medical expenses you weren’t expecting but now you are several days short on your paycheck. If you were hurt at work and are in need of assistance with your medical bills and missed wages, a work injury lawyer can help.

Categories
Financial Loans

Best Personal Loans for Excellent Credit

personal loans with excellent credit

Introduction

Personal loans come from a bank, online lender, or credit union that you pay back at a fixed rate in installments. This usually spans between 2-7 years, and they are best used for large personal expenses (ex. medical bills, home improvement, weddings, or exceptionally expensive purchases, such as a car or boat) or debt consolidation (lumping several debt payments into one).

They are meant to advance towards financial milestones, not add to debt.To qualify, lenders will look at your credit score, credit report, and DIT (debt-to-income ratio). Borrowers with excellent credit—defined as having a FICO score of at least 690—earn the lowest interest rates, receive the largest amounts, and have the most options when it comes to loan selection.

Important Things to Consider When Picking a Loan

Because you have so many options with excellent credit, you have to do some research to pick the best loan service for your intended purpose. Important things to consider would be:

  • Interest rates (how high and fixed/variable)
  • Repayment options (time period, minimum/maximum amounts)
  • Fees (including prepayment, late, and origination)
  • What you are using the loan for
  • Timeliness (how long is the application process and when do you receive your money after you’ve been approved)

Even with excellent credit, your personal loan can still be denied—do not take it as a given. Sometimes, the lender may be backlogged or have insufficient funds to issue out a loan. This will unfortunately result in denial.

Because of COVID, many banks and lenders have offered new products and lower interest rates, though you need to meet extra criteria to qualify.Some may even offer deferred payments or waived fees.

This Year’s Top Personal Loans for Excellent Credit

There are countless loan companies to choose from, and sometimes it can be difficult to find the one that is right for you. The process is tedious, but do not rush through it—you may end up paying much more than you need to.

A couple of this year’s top personal loans for excellent credit are:

  • SoFi
    • Digital lender that offers many products, including personal, home, student, and insurance loans from $5,000 to $100,000
    • Beyond the loan itself, it offers protection programs (ex. if you lose your job and can’t pay), referral bonuses (if a friend signs up), personalized financial planning, and more
    • To top it all off, the loans are fee-free and there is no minimum annual income
    • Their fixed-rate loans range from 5.99% to 20.69% APR
  • Lightstream
    • Offers loans up to $100,000 for almost anything (including medical bills and education loans)
    • Has generous repayment terms rivaling SoFi at 2-7 years, which means lower monthly payments
    • Does not have fees or prepayment penalties
    • Offers discounted interest rate when you sign up for autopay (your credit card has a set minimum amount it pays each month automatically)
      • With the autopay discount, their APR is slightly lower than SoFi at between 5.99% and 19.99%

Conclusion

When applying for a personal loan with excellent credit, you should put yourself through a rigorous process to assure you make the right decision. Comprehensive research into different loan companies and types of personal loans is the most important. Remember that with excellent credit comes excellent selections—the world is your oyster!