you can use a Household Expenses loan to cover a plumbing emergency, pay for landscaping work, or for taking care of the maintenance and treatment of a swimming pool. A Household Expenses loan can also cover costs, such as waterproofing a basement, patching a roof, cleaning a chimney or gutter, or retaining home maintenance services, such as a furnace or A/C checks, repairing foundation cracks, or fixing a broken fence.
What Is a Household Expenses Loan?
A Household Expenses loan allows you to maintain your home and obtain emergency repairs with less hassle and stress. A Household Expenses loan can help you take care of the emergency costs associated with a broken pipe or an electrical problem or outage. It can also be used to repair or maintain various areas inside and outside the home.
For example, you can use the loan to repair a faulty A/C unit or direct the money to replace a thermostat that will not work anymore. You can also use a Household Expenses personal loan to treat a mold problem or to concrete a drive or walkway. Take the proceeds of your Household Expenses loan and direct them toward anything that needs a maintenance upgrade and repair.
Here are some of the ways you can use your Household Expenses loan proceeds. They just don’t cover repairs and maintenance. They also cover the direct expenses involved with homeownership, such as the following:
- Payments for mortgage insurance
- Payments for utilities
- Property tax costs
- Homeowner’s Association (HOA) dues
Therefore, with a Household Expenses personal loan, you can keep on top of your home’s maintenance and repairs as well as keep current with your homeownership expenses.
Household Expenses Loan – How to Get Started
To apply for a Household Expenses personal loan, you will need to take the following steps.
- Check Your Credit Score. When you apply for any type of personal loan online, you need to review your credit score first through the 3 credit bureaus. Because your Household Expenses personal loan is primarily based on your credit score, knowing the score will help to determine the APR you will be charged.
- Select Your Loan Type. Some companies specialize in Household Expenses funding so it is better to go through them if you want the best rates for this loan type.
- Get Prequalified for Household Expenses loan financing. When you choose several lending providers you like, you will need to get prequalified for your Household Expenses loan next. Doing so will give you the repayment details and terms for your Household Expenses online personal loan. If you agree to shorter loan terms, you can also get a lower fixed APR.
- Compare the Lenders. After you have had a chance to get prequalified through different Household Expenses loan funders, you can review their loan terms and APRs, and see which one fits best with your lending or personal finance requirements. For a Household Expenses personal loan, go with a lender that offers the lowest APR and features the lowest fees over the term of the loan.
- Supply the Necessary Info and Documents. When you choose a lender, you will need to provide the required loan paperwork and information for Household Expenses loan funding. In this case, you need to supply the following details and documents:
- Personal Identification (Social security card, passport, or driver’s license)
- Proof of earnings or income (W-2s, paystubs, or filed tax returns)
- Employer information (Name of company, manager’s name, and phone number and address)
- Proof of residence (utility bill with your name and address or a lease agreement)
- Apply for the Loan and Start Making Payments. After you apply for your Household Expenses personal loan and start making payments, you might add some extra money to your payment each month to repay the loan faster. Doing so will make the loan repayment faster and simpler.
Household Expenses Loan Financing – What You Need to Know
To take out a Household Expenses personal loan, you should be aware of the following terms:
- Annual Percentage Rate (APR) – The rate of interest charged on a Household Expenses personal loan, expressed at an annual rate.
- Application Fee – The amount a lender charges for processing a Household Expenses loan application and the related documents. These fees are usually non-refundable and may or may not be included in processing a personal loan.
- Debt-to-Available Credit Ratio – When considering you for a Household Expenses loan, a lender may look at your debt-to-available credit details. This represents the money you owe compared to the credit available through credit lines and credit cards. Therefore, the debt-to-available credit ratio shows how much available credit you are using. The higher this percentage, the riskier you appear to a lender.
- Debt-to-Income Ratio – The percent of your monthly pre-tax income that is being used to pay off debts, such as auto loans, credit cards, and student loans. Lenders assess 2 key ratios. The first ratio is a front-end ratio or the percent of monthly pretax earnings spent on your house payment. The second percent is a back-end ratio or the other debts that are factored into the house payments.
- Late fee – A fee charged customers who take out a Household Expenses loan who pay a payment late or pay less than the required monthly amount.
- Late Payment – A delinquent payment or a failure to pay on a Household Expenses loan before the agreed due date. A late payment can hurt your credit score for as long as 7 years.
- Household Expenses Lender – The financial institution that provides a Household Expenses loan for paying home-related repair, maintenance, and ownership costs.
- Net Income – Your income after taxes have been deducted. It is also called your take-home pay. This is the amount considered by a lender when assessing your ability to repay a loan amount.
- Prepayment Penalty – A fee charged by a lender when a borrower pays off a loan before its scheduled term. Usually, prepayment penalties are not applied by standard lenders. If you are taking out a subprime Household Expenses loan, you need to read the loan terms carefully, as this fee may be applied.
- Principal – The amount of money owed on a loan, excluding the charged interest or APR.
- Risk Score – Another name for a credit score.
- Subprime Borrower – Some people who request funding for a Household Expenses loan may be subprime borrowers. A subprime borrower usually has a poor credit score because of late payments or collection accounts. Lenders evaluate and grade subprime borrowers on the degree of past collection problems – A to D, or lower. Subprime borrowers can qualify for Household Expenses loan but at a higher interest rate.
- Utilization Ratio – A ratio that shows a lender how much available credit you are using.
- Unsecured Loan – Most personal loans online, or Household Expenses loans, are not collateralized. Therefore, they are not secured with a form of collateral, such as a house or car. The lender assesses the borrower’s ability to pay primarily on their credit score.
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