Bad Credit Signature Loan in Fort Lauderdale, FL amount $3000 — My name is Betty J. and I work as a Database Admin in Ft Lauderdale.
I’m shopping online for a personal that I can get quickly and without some sort of hassle with credit checking like Experian, Equifax, and TransUnion. I know lots of people that would lend my the money, and I’ve had a few offers from guy friends to lend me the money for nothing, but I don’t want to owe any guy money – you know what I mean right. There’s ALWAYS strings attached. ;-(
I’ve been researching online and the only loan that sounds to be like the kind I am looking for is a so-called signature loan, or small consumer loan. I’m trying to get this 3K at the lowest APR possible of course. Just hoping you might know a lender that would approve me on this deal.
My request (or question really), is there any lenders, banks, credit unions, and/or private lenders that will approve and fund a loan like this?
Is a signature loan even real. Is a signature loan mean that I am basically just signing my signature, and that’s it?? Confused – your help is appreciated!
Loan Officer’s Notes:
We are going to delve into this loan application from this young woman living in Fort Lauderdale. She is relatively young in age, and is asking for $3000 at a low fixed APR, and for a short term period. She has already had other offers from young men who want to lend her the cash (for obvious reasons we presume), but she is smart enough to take the money (Mom and Dad must have taught her something).
We are going to attempt to answer some of these questions for the applicant, and we are going to give her some free advice as well, so she can avoid any of the usual pitfalls that people make when trying to borrow some fast cash.
What Is A Signature Loan
Let us get this whole “signature loan” myth out of the way. A signature loan is yet another way to describe an unsecured bank note. Meaning loan without any appreciable security. These kinds of loans are almost ALWAYS granted to repeat customers who have a fairly credit history with a lending institution, and a superb rating as well. So in this case, the young lady will not be approved for an unsecured loan, so that is out of the way here.
Applicant’s Location and Lenders’ Location – Ft Lauderdale, Florida
As mentioned above, Betty lives resides Fort Lauderdale and the bank’s she will be applying to are as follows;
- Citibank
- Wells Fargo
- Bank of America
Applicant’s Employment
As Betty mentioned in her pre-application, she works in the I.T. department for a law firm operating in Ft Lauderdale, Florida. She reported an income (and has the bank statement and recent pay stub to prove it) of $3700 per month, and she is paid biweekly from her employer. We didn’t bother mentioning the actual firm she is working for in order to protect her privacy, and the privacy of the company that employers her.
Applicant’s DTI
Betty’s debt to income ratio (DTI) is very good, and her bank (BOA – Bank of America) statements and paycheck stubs show this in graphic detail. The lender calculates how money coming into her account(s) and how much money is leaving her account(s) on a three month basis – some loan officers calculate over a one month basis, but that is extremely rare. We have figured out her DTI ratio below. We are using a gross income for the DTI calculations. Lenders generally use slightly different math, but use gross income as well - for our purposes this is very close.
- Gross Monthly Income = $3,700
- Out-Going Montly Costs = $1,700 (Rent, Prius Payment, Personal Loan, Cell Bill, Utilities, 401k)
Money Left Over at End of Month = $1000
DTI = (Divide Expenses by Gross Income for this part) 1700 ÷ 3700 = .459
this is usually an acceptable DTI for most lenders – with some variance, depending on the type product you’re talking about.
Applicant’s Bad Credit Rating
She was upfront about her credit rating and even mentioned that she had her FICO score checked out with the three major credit bureaus. As it turned out, we don’t know how she had her scores checked, but there was misinformation on her Equifax data that had to be removed. Her FICO score total ended up being 670 – not a disastrous FICO by any measure.
Loan Agreement and Approval BOA
So as per the loan agreement Betty has with Bank of America, she ended up agreeing to pay a 11% interest rate on the three thousand dollars, and she has to pay it all back within 8 months in term length. She has agreed to pay biweekly on this loan as well. So with this information we can calculate her total monthly payments.
Loan Payment Calculations
Loan Amount = $3000
APR = 11%
Installment Schedule = Biweekly (14 days)
Length of Term = 6 months
—————————————————
Total to be paid: $3,088.85
Total amount of interest: $88.85
Payments: $236.95 every two weeks – rounded to $237 x 2 (weeks) = $474 per month
Don’t forget about closing and opening fees, administration fees, etc, etc. The banks love to add these little costs to your lending.
Whenever you need to borrow between $3000-$5000 dollars you may find it difficult to find conventional banks that will approve notes this low. In the end, the bank doesn’t make as much money with small amounts like this and at low APRs. There are now banks that have created divisions for small consumer loans ranging between 2K and 10K – they charge APR levels much higher than this example of 11%. [LL Cite] [Time-Stamped September 23. 2011 - 11:41:27]
Disclaimer: The views expressed by this author don't necessarily reflect the opinions of Lazerloan.com, it's owners, or it's affliates.
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