COVID-19: Loan Options and Payment Relief

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COVID-19 The Loan Options and the Payment Relief
As the COVID-19 crisis continues, lenders are re-evaluating their hardship plans.


Updated on December 7 December 7, 2020

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The COVID-19 crisis is sparing nearly everyone in the financial realm. Although a second relief package offered by Congress may help to bridge the gap in financial resources caused by unemployment and other hardships however, some people may have to resort to loans. In the event that you have an individual loan, you may require help with your monthly payments.
While many private loan lenders have tightened approval criteria, other lenders have launched low-rate small-dollar loans to consumers dealing with financial hardships. The lenders that had previously had catchall hardship plans to help customers affected by COVID-19 have changed to a more individual approach.
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If you are in need of borrowing cash, it is best to do so.
It is worth contacting local nonprofits, charities or credit unions to get access to low-cost emergency funds. There are also the lenders you can call if you need to borrow short-term cash.
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Capital Good Fund
It is offering a crisis relief Loan to people in the six states where the program operates: Delaware, Florida, Illinois, Massachusetts, Rhode Island and Texas. The low-dollar loans are offered at the lowest annual percentage rate and deferred payments for the first three months.
The loan amount is $300 up to $1,500.
APR: 5% for all approved borrowers.
Term: 15 months, with payments starting after the first 3 months. Payouts are deferred for a further time should the COVID-19 crises persist beyond. The interest will accrue over the 90-day deferment period, says Chief Executive Officer Andy Posner.
The lender prioritizes banking history in its underwriting process. Instead of using the borrower's current income and expenses, Posner says Capital Good Fund will look to determine if an applicant can afford the loan according to their current income and if not the lender will look at whether the applicant could have gotten the loan before the financial crisis.
The loans do not charge application, closing or prepayment fees and do not require collateral. Borrowers can expect a decision two days after submitting an application, and Posner says applications for the Crisis Relief Loan will be given priority ahead of other applicants.
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Salary Finance
Salary Finance provides loans through employers, and also works with Equifax to provide companies with insights into their the financial health of employees. The partnership was in the working stages prior to the COVID-19 crisis was announced, says Salary Finance CEO Dan Macklin, and its offering isn't contingent on the pandemic's influence on the economy.
With the help of the agreement, companies can get a view of anonymized worker credit information, Macklin says. Companies can use the data for no cost to determine which groups are experiencing the most financial stress and then address the issue.
Salary Finance is typically provided through human resource departments as an incentive for employees, Macklin says. Salary Finance loans are paid back. Salary Finance loans are reported to the three credit bureaus.
The loan amount is $1,000 up to $5,000, or up to 20% of an employee's pay.
APR: 5.9% to 19.9%.
Term: 6 to 36 months.
Other borrowing options
The not-for-profit institutions provide some of the most consumer-friendly loans. A credit union loan typically comes with lower interest rates as well as more flexible conditions than one from banks or online lenders.
Creditors with fair or bad credit (629 or lower FICO) could have a greater likelihood of receiving approval from a credit union because the underwriting procedures tend to include more than just credit information.
Some credit unions also offer these loans, which are less risky than high-interest short-term payday loans. These loans can have an APR of 28%.
Online lenders: Online lenders could be a fast option for . You'll probably need good credit and a steady income to qualify in today's economic climate. If you're uncertain whether you'll qualify, or what rate you'd get, you can with NerdWallet. Pre-qualifying doesn't affect your credit score.
If you're concerned about making payments
Some lenders are offering help such as deferred payment and the waiver of late fees to those facing financial difficulties. If you are in need of assistance, however, you don't find your lender listed , you can look into other options for .
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Best Egg
Encourages borrowers to log into the account and see the options available.
Customers could choose from payment deferrals, adjusted payments or a debt management plan which can cut monthly payments across all debts, as per an official spokesperson from the company.
Discover
previously made a one-month deferral available. A spokesperson for the company confirmed that the program has since ended, and the company encourages the borrowers to reach out for assistance with the loan instead.
Customers needing help for longer than one month may call 866-248-1255, or use the company's mobile app to connect with a Discover representative.
HSBC
If you're having trouble paying an expense, you can apply for the assistance of a hardship plan by calling 800-524-9686. The company offers different hardship plans for its products but doesn't say what changes are available to personal loan customers. The spokesperson didn't respond to numerous inquiries for clarification.
LendingClub
It is still allowing those affected by COVID-19 to defer payments and only pay interest for deferrals, according to a spokeswoman.
The lender updates its website its website, and has a phone number to handle hardship requests (877-644-4446). The company says it takes approximately 10 days to complete hardship requests.
The company launched its new service in May. LendingClub introduced a service for existing personal loan customers dubbed Member Center, according to the news release. In addition to options for payment that can help borrowers get back to their regular payments, the Member Center has a tool called Credit Profile that helps customers manage their finances to improve their credit. The tool provides members with a comprehensive picture of their financial life, including information like their ratio of debt-to-income as well as credit utilization and credit score.
A spokeswoman for the company says that the tool will remain available to customers even after the COVID-19 crisis has passed.
LightStream
may allow customers who are affected by the pandemic or any other disaster or natural catastrophe to delay loan payments. Contact us to receive a telephone number that can provide you with a person who can talk about your financial hardship. You can't defer a payment when you're within two days of a scheduled automatic payment.
Deferments are reported to credit bureaus as a deferment caused by a natural catastrophe and won't negatively affect your credit score, according to the company. The payments are added to the end of your loan and, in turn, they will incur interest when your payments are delayed.
The borrower can log in and go to their Account Services page to request a deferment, or email with questions.
OneMain
will work with borrowers struggling to make payments. The lender's program for assisting borrowers, which was part of the loan prior to the outbreak will allow borrowers to receive lower or deferred monthly payments, according to an official spokesperson.
Oportun
Customers can avail reduced or deferred payments. The company claims it will not report skipped payment as being late the credit bureaus when you make arrangements beforehand. Customers can reach the company via email or at 650-419-5779.
OppLoans
It is providing 30 days for missed payment with "no questions asked" for those who have been affected by COVID-19. the CEO Jared Kaplan. After that, customers are able to avail a 90-day hardship program that cuts payments by half. The company says that these arrangements won't negatively affect credit scores.
PenFed
The company is offering to allow borrowers who are eligible to skip a payment. Find out whether you're eligible for this, choose "Financial Assistance for Members Affected by COVID-19."
PenFed also has a , where customers can apply for a short-term emergency program (less than six months) or a permanent programme for hardship (more than 6 months).
PNC
says it may offer postponed or reduced payment options for loan clients who just now experiencing a hardship or who are close to expiring. For the majority of customers, the company says it can confirm that they are eligible for assistance as soon as possible. To apply, visit PNC's page and select "Apply to be a Customer Loan Help with Hardship."
Customers need to sign up for online banking to access the .
Possible Finance
has a forbearance plan which allows customers to push payments out. The lender hasn't released much information on the plan since publishing an article on its blog in March. However, customers are able to contact customer service via its .
Upstart
has loan modification options available to certain customers who are who are affected by COVID-19, such as an extended loan term or forbearance according to one Upstart spokesperson. Previously, customers could defer up to two months worth of payments without interest or penalties.
Contact Upstart via email
Wells Fargo
The deferred monthly payment will be available for three consecutive billing cycles for qualified customers with personal loan customers. If you already have assistance may still apply for more. Connect to your account online to see the options available.
To speak with an Wells Fargo customer service representative contact 877-269-6056.



About the author: Annie Millerbernd is a personal loans writer. Her writing has been featured in The Associated Press and USA Today.







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