Welcome to 1st Personal Loans

We were established in 2003 and continue to help people with issues related to bad credit. We have compiled several articles designed to help you get out of debt or locate signature loans, home loans, and debt consolidation services you need. Sometimes it is difficult to know what options are available to you, especially if you suffer from poor credit problems.

• Loan Considerations
• How to Consolidate Debt
• Credit Cards

• Stop Foreclosure
• Virginia mortgage home loans
• Do you Really Need a Credit Card?

A loan is either secured or unsecured: Secured loans have collateral; Unsecured loans do not have collateral.

Unsecured Personal loans and lines of credit: Personal loans and lines of credit are usually unsecured loans. These are also called signature loans if the loans are not backed by collateral. Typically, interest rates are lower than rates for credit cards. Personal loans are commonly used for small to moderate purchases and loan consolidation. When larger purchases are involved, you can get better interest rates by posting collateral. Credit lines are often used for emergencies or in lieu of credit cards

Remember: You are entitled to a free credit report annually. If you begin analyzing your credit file today, and making efforts to fix any errors, you can significantly increase your credit score over time.

Mortgage Loan and Refinance Loans: Mortgages are loans designed to fund the purchase of a home. The amount you are borrowing frequently dictates what type of loan you need. Such is the case with most mortgages. Most home buyers need a 15- to 30-year repayment period when buying a home. Additionally, most buyers prefer the lower interest rates available when applying for a loan secured by real estate. As we mentioned earlier, now may be the best time to purchase a new home or refinance your current one at today's low and competitive interest rates.

Tip: If you decide to obtain mortgage refinancing or a home equity loan, comparison shop! Comparing terms and plans will help you land better deal. Pay very close attention to lender fees such as application or loan processing fees, underwriting fees,appraisal fees, general broker fees, and document preparation fees. If other fees or points are added, you’ll pay more to finance them over the life of the loan. Most importantly, negotiate with several lenders. When lenders compete for your business, you will be able to make a better financial decision and save yourself a lot of money in the long run.

Home improvement loans: When you wish to make improvements or repairs to your house, you may want to consider using your home equity as a source of funds for home improvements. Generally, terms are favorable and interest rates are reasonable. Further, there may be favorable income tax treatment. However, you are not required to fund such projects with a home improvement loan. Such projects, either wisely or not, are frequently funded with credit cards, personal loans, and personal lines of credit. Your choice may depend upon the amount you are borrowing and how fast you need the funds.

Home equity loans and line of credit: Home equity loans and lines of credit are an effective way to get cash out of your home. You can use the equity in your home as collateral and receive cash. Although you put your home at risk, you benefit from reasonable interest rates, attractive terms, and favorable income tax treatment. Lines of credit are frequently used as a source of emergency funds, as well as to fund college education expenses. They can also be used to pay off other personal indebtedness effectively converting nondeductible interest into deductible interest.

Do Credit Applications Hurt my Credit Rating? If you are aware that you have poor credit scores, and have been denied for one or more unsecured credit lines, we advise that you NOT continue applying for other similar cards with the misguided hope that you will be magically granted an unsecured credit line. All banks follow similar lending criteria and you will likely be denied over and over again as long as the credit problems causing your low scores exist on the history. The problem is,with each credit application you fill out, a new credit report is accessed by the lender with whom you applied. EACH time your credit file is pulled because of an application you filled out, a credit request inquiry is stored for up to two years with the bureau from which the report was retrieved. A certain number of these inquires is considered normal (probably fewer than 6 requests in a 12 month period). Too many credit inquiries will have a negative affect your credit score and will only set you back further. Don't keep applying only to be slapped with "Sorry, your application has been denied". Try to apply only for the things that are vital, and don't apply too frequently. Denial after denial will likely only get frustrated and further hurt your credit rating because of those blasted credit inquiries.

What About Credit Requests and Inquiries that Appear on my Credit File Without my Knowledge? Inquiries initiated by lenders to send credit offers in the mail, lenders you have accounts with who might view your credit score for credit limit increase considerations (not initiated by yourself), or inquiries that are recorded when you request your own personal copy of your credit file are NOT held against you in credit scoring. Be aware that the concept of credit inquiries applies to all forms of credit applications, including loans, home mortgage, equity and refinance, debt consolidation, apartment leasing or renting, etc. Credit reports are typically not pulled for day loans. So, just be cautious when filling out credit applications Don't over do it in a very short period of time. When you think about it, people who are filling out a ton of applications for credit appear desperate for credit thus making them a possible high credit risk to the lender in question. That is why inquiries are used in the scoring calculations.

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