FREQUENTLY ASKED QUESTIONS
Q: Does UFS loan the money to me?
A: No. UFS is not a lender. Based on several variables such as your debt, income, credit rating, housing status, work status, geographical location, credit history and several other qualifying factors, UFS will match you with the appropriate programs offered by lenders available to you.
Q: What kind of interest rates can I expect?
A: Interest rates are determined by the lender offering your loan and can vary dramatically depending on the Risk Factor your loan represents to the institution.
Q: What is a Risk Factor?
A: A Risk Factor is the level of risk the lender feels they are taking by offering you funding. If a lender feels your loan purpose has a potential for default or failure either through past experience or economic outlook; they will increase your interest rates fittingly. However if your loan purpose is something the lenders feel is secure and has performed well with past borrowers, your rate may be very low.
Q: What do you mean by Loan Purpose?
A: Loan Purpose refers to what you are doing with your funding. This typically plays a large role in your loans Risk Factor. For example if you are opening a new ice cream store in Alaska, chances are the lender will look at that as a high risk, meaning a higher likelihood of failure or default. In contrast, if you are using your funding to send you child through college or repair your home, a lender may look at this as something you have carefully budgeted to repay and thus represent lower risk to them resulting in lower rates and better terms.
Q: What if I am using my loan for many reasons? How do I choose a purpose?
A: Generally these loans do not have stipulations on what they can or can not be used towards. Your loan purpose is really a gauge for the lender to establish their Risk Factor, thus determining your interest rates, terms and loan amount. So if you are looking for a loan to repair your home with most of the funding and take a vacation with the rest, home repairs would be a suitable purpose.
Q: Am I restricted or monitored on the use of my funds?
A: Generally no, there are no restrictions or monitoring on how funds are spent unless specifically declared by your lender. Information like this will be made available in your loan paperwork before you sign or receive funding.
Q: How much can I borrow?
A: Your loan amount depends on many factors similar to the interest rate. When you fill out a prequalification form either online, or call one of our loan consultants they will be able to walk you through the steps and determine a loan amount UFS feels would be available for what youíre looking to accomplish.
Q: Do these loans require documentation?
A: Documentation varies depending on which lender will be handling your loan. Some lenders require little to no documentation such as proof of residence (normally a utility bill) and copy of your identification while others may require full documents including personal (and/or business) tax returns and recent pay stubs or a W2 for proof of income.
Q: What if I do not have provable income? (tax returns, pay stubs, etc.)
A: UFS does work with some lenders whom realize people may receive income from tips or private investments that fluctuate greatly and typically are not realized until full taxes are completed.
For example: if someone worked as a desk clerk in a 5 star hotel and was promoted to concierge, chances are their income from tips would skyrocket. Obviously this income would not be realized on pay stubs and could not be properly calculated until year end. In this case their loan approval would be entirely determined by your responsible credit history and the income they declared on their application only. There would be no supporting documents requested.
Q: My credit score is 825, how much do I qualify for and whatís my rate?
A: We hear this one a lot. While having a great credit score does help your situation slightly; it is one of many variables used to calculate your credit worthiness. Unlike a mortgage or an auto loan, where approval amounts and rates are tiered to your credit score, unsecured loans have many, many more qualifying factors with some being substantially more important than your score. Credit scores can be easily manipulated and the lenders are aware of this.
With unsecured funds, it is not unusual for someone with a 685 credit score to realize much more funding with substantially better rates than someone with an 825 credit score simply because their full credit profile is better qualified. Talk to a loan consultant today about what your credit profile would qualify you for!
Q: Why canít I get all the money I need for my business?
A: The great thing about this type of program is the speed and simplicity of it all. On the downside, without business plans, forecasts, profit loss and financial statements and all the other documents that amount to a mountain of paperwork, the lender cannot realize your vision and can only make a loan determination based on what your business can afford at its current capacity.