Ask Oportun: What’s the difference between a secured personal loan and a standard personal loan?
The simple answer: A secured personal loan requires you to provide collateral for your loan, while a standard loan does not. According to the Consumer Financial Protection Bureau, collateral is an asset that secures a loan or other debt. Both standard and secured personal installment loans allow you to repay your loan in multiple payments over a period of time. They both accrue interest and can have a positive impact on your credit score, if reported, when you make your payments on time and in full. How do lenders decide if they need collateral? It’s all about risk. When it...Read more
What is a secured personal loan?
A secured personal loan is a loan backed by something of value that you own, also called collateral. Many types of assets can be used as collateral, such as your car or home. Because of the collateral, lenders take on less risk and can offer better pricing or larger loans. According to the Consumer Financial Protection Bureau, collateral is an asset that secures a loan or other debt. How does that benefit me? There are three major benefits to securing your loan with collateral. Because a secured loan reduces the risk for the lender, many lenders can: Approve you for...Read more
Ask Oportun: What do I need to know about credit reports?
Your credit report is a record of your financial history and is used to calculate your credit score. Whether you realize it or not, credit bureaus start creating a report on you as soon as you have bills under your name. A large portion of your report is based on your loan and credit card payments. But any bills you pay, including things like rent and utilities, are also fair game. Same goes for public records—like the parking ticket you forgot to pay that got sent to collections. Knowing what’s on your credit report can help you figure out how...Read more
Ask Oportun: What is a credit score?
A credit score is a three digit number from 300 to 850 that banks use to help figure out how likely you are to make payments on time. The higher the number, the better your score. When people think of credit scores, they normally think about borrowing money or opening credit cards. You might not realize is that it’s not just banks checking your credit. Property managers, insurance companies, and employers might be checking your credit score to gauge your financial responsibility. Your credit score impacts a lot more than you may think. Why is your credit score important? The...Read more