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Who is Loyal Lending Review Gets Five Star Rating?
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Loyal Lending Review Gets Five Star Rating Reviews How the End of the Pandemic Affects Your Chance of Securing a New Loan?
Loyal Lending understands that life happens, and that sometimes, debt is inevitable. You can avoid high daily compounding interest and save money for your future and family by consolidating your debt with Loyal Lending.
With a Loyal Lending debt consolidation loan, you can take control of your finances and save thousands throughout your loan. That money goes into your pockets – not to your lenders or credit card companies.
Loyal Lending Review: What is the possibility of securing a new loan when the economy seems on the verge of bottoming out?
With COVID-19 at the forefront of people’s minds and inevitable comparisons with the Great Depression being drawn, does that make it impossible to consolidate credit card debt?
Well, if you’re still gainfully employed and have good credit, you might still get a new loan, even given the current economic climate.
Here’s a look at the main types of finance and your likelihood of being accepted or rejected as the post-pandemic economy unfolds.
Loyal Lending Mortgage: Maybe
In reality, getting a home loan is challenging for many people, with interest rates on the rise.
That said, it’s not impossible, especially if you have strong credit and cash to use as a down payment.
Home buying is still happening despite adverse reports to the contrary; it’s just that the borrowing climate is predictably more brutal.
So, lending restrictions are tightening. Recently, JPMorgan Chase raised the minimum acceptable credit score from 600s to 700. While Chase offers a Dreamaker grant for lower-income and moderate-income buyers, the minimum score for all other home loans has climbed. Also, unless you qualify for the Dreamaker assistance, you’ll need a 20% minimum down payment rather than just 3.5%.
While a 20% down payment has been standard for many years, consumers have become accustomed to much lower requirements. Many lenders are returning to a much higher requirement for down payments.
Home Equity Loan: Improbable
Although it’s possible to get a home equity loan right now, it’s unlikely to be straightforward.
Many banks have already raised the minimum credit score you need to qualify for a home equity loan. At Bank of America, the minimum has increased from 660 to 720 for this type of borrowing. Wells Fargo has hiked its credit score minimum to 720, while JPMorgan Chase has completely stopped offering home equity loans.
Auto Loans: Likely
You’ll find plenty of decent deals if your credit is very good. Some auto dealers offer loans at 0% APR over 84 months, while others promise deep cash discounts. Lenders are also offering deferred initial payments. While this might sound tempting, remember that interest will accrue.
If you have bad credit, what can you do?
If you’re still employed, some car dealerships will still find a way to help you secure the finances you need. Whether this will be an attractive loan at the terms you would like is another story.
Small Business Loan: Depends on the Loan Type
Some small business owners benefited from the first rollout of the Payment Protection Plan, while others found the process disastrous.
With some banks sluggish to release these loans and many more giant corporations sucking up loans intended for smaller businesses, things got worse when funding ran dry.
General business loans
How about available business loans?
As with all lending, the climate is significantly less than ideal.
For business owners, though, the same general rules still apply…
If you’re making money and have a good credit history, you’re likely to secure a loan. Conversely, lenders looking at a struggling business will perceive your company as a risk. This means you’ll likely need to shop around, and you’re unlikely to get attractive interest rates.
Student Loans: Extremely High
The federal government is allowing student loan borrowers forbearance on student debt until September 30. This means you won’t be penalized if you don’t make payments during this period.
If you keep making payments, money goes to the principal rather than the interest, so it pays to keep meeting payments if you can.
Applying for new student loans, however, could be awkward.
First, complete the FAFSA (Free Application for Federal Student Aid). This allows you to determine what federal grants or loans you are eligible for. You can then start applying for loans.
Parents might have some initial trouble with the Parent PLUS Loan. Some financial aid offices at colleges have staved off applications until May.
There have nevertheless been no reports of people being rejected en masse for student loans. Also, the emergency cut in interest rates imposed by the Federal Reserve on March 15 brings about the lowest-ever rates for student borrowing.
If you were wondering if you could get a loan post-pandemic, the answer is “Yes.” However, whether you can find finance with the terms you would like is another matter.