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Long-Term Loans: How Long Is Too Long?

If you need plenty of time to repay your loan, you'll find many options that could work for your needs. Whether you need two years or 10 years to repay your loan, lenders are ready and waiting to make your loan possible.

While a loan with a longer term does take more time to pay off, it may offer a lower monthly payment that works well with your existing budget. And if the amount of your loan is rather large, you may need the extra time to repay while still enjoying a payment you can afford.

Like all loans, however, you should check to see whether your long-term loan comes with a prepayment penalty. With a long-term loan especially, it's important to know you can repay your loan early without paying a fee for the privilege.

High Credit Equals Low Interest Loans

To qualify for the payday loans, it pays to have a great credit score and a solid credit file. Lenders will conduct a credit check and take a look at your credit score as part of the application process.

If you haven't already ordered your free annual credit report from AnnualCreditReport.com, do so before applying for a payday loan. Review the details of your credit report carefully, paying special attention to the sections on payment history, debt usage, credit age, and inquiries. Showing you have a good history of making payments in full and on time, reasonable debt usage and have few inquiries (many credit inquiries could suggest you're a habitual credit seeker – not a good thing) may help you qualify for a lower interest rate on a payday loan.

Present a Solid Employment History

In addition to showing you have a good payment history and are responsible for paying back money you borrow, presenting a solid history of employment may also improve your chances of qualifying for payday loans because it shows commitment and responsibility. Your lender will likely ask for your employer's name and address, and how long you've been there. If you're self-employed, be prepared to verify your income via your personal tax returns.

What is a Secured Loan?

A secured loan is a loan backed by collateral, which is property of sufficient enough value to cover the principal of the loan should the borrower fail to repay.

Some types of secured loans are very common. With mortgages and car loans for example, you agree that the property you are buying will act as collateral to secure the loan.

However, the collateral does not always have to be the property the loan is being used to purchase. You may already have property you can use as security for a loan - often, this is property like a long-term investment portfolio or an art collection that you don't want to liquidate to simply make a purchase in cash. Instead, you would like to keep that property intact but use its value to borrow against for your new purchase.

From the lender's point of view, having that property as collateral makes them more confident in lending money. As a result, they should be more likely to make the loan, and to offer more favorable terms.

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ZocaLoans

You can get a loan of anywhere between $100 and $3,000 for any reason, whether it be to pay for a vehicle repair, home improvement expense, or even a vacation.

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