Alpine Credit offers its applicants a way to get a loan even in less-than-ideal circumstances, allowing them to use the value of their homes as collateral to lock down offers with relatively good rates. It’s a great offer in theory, even if things are slightly less rosy in practice. There are some caveats that it makes sense to be aware of before you contract any home equity products like this.
The Details of Alpine Credit Loans
For most people, their home is their single most valuable asset and always will be. There’s a lot of money tied up in it that you could be putting to use right now, except that doing that would require you to put your home on the market. When it’s your only available shelter, it’s hard to justify making such a drastic move. You have to live somewhere, so you’d just have to funnel that money back into
With Alpine Credit, you can access some of the stored value of your home without having to sell it – instead, it will be the collateral used to guarantee you a fairly large loan at a rate that few other lenders will be able to compete with. You can often do a little better by going straight to your bank, but then you’ll face far more requirements that make it hard to be certain if you’ll be approved. Alpine advertises that they are willing to look past huge factors like age, credit and even income if you own a property that is worth enough.
You don’t need to own your house outright to be eligible for this kind of loan, but you do have to have a significant chunk of it paid off already. If you subtract the amount you currently owe on your mortgage from the value of your home, you’ll have your current home equity. This number should be higher than the loan amount you are planning to seek, and the higher it is in general, the better your approval chances and the terms you are extended will be.
What sort of loan will this get you? It’s hard to say for sure, since the factors that go into determining decisions in this case can vary so drastically. The example rate that they give on some of their documentation is 15.60% APR, so it can be assumed that this is within the ballpark of the rates they offer most of their customers. You should be prepared to pay at least that or possibly a little more if you are seriously considering this lender. It’s also hard to pin down the exact repayment schedule you’ll be expected to adhere to, but as a general rule, you’ll have longer to make your payments if your loan is larger as compared to a smaller one.
Applying and Getting Approved
Getting a loan from Alpine Credit is far from difficult, even if there are different procedures required than you might expect from any other lender. You can apply online in a few short minutes through an easy-to-navigate web-based form that removes all the confusing parts of applying for a loan – it’s as simple as can be. Once you submit that, you can then expect to hear back from the company in under 24 hours regarding your approval. After that, you’ll need to submit some documents to back up your claims regarding your income and home valuation. Due to the verification process needed to ensure that your information is correct, however, actually getting the money could take a bit longer – up to a week in some cases.
Before you accept any offer that this lender makes you, though, you should remember what we said above about how hard it is to forecast the costs you’ll be paying when you sign up for these loans. There is no way to avoid this, but it’s still a recipe for disaster if you just sign the agreement papers without taking too close of a look at what they say. Be sure you understand exactly what interest rate you’ve been offered and take the time to calculate what that means in terms on monthly payments. It might add up to more than you anticipated, and the time to find that out is now, not later. Once you’ve checked all of that, though, feel free to accept. All told, the whole process should still be over and done with by the time you see your next paycheck.
Problems To Watch Out For
You might be on board with everything you’ve heard about Alpine Credit so far, but you should know that there is a little more to the story. Even though this lender’s openness to working with people with poor credit and low incomes is admirable and even a necessary contribution to the lending space (poorer people have financial emergencies too!), it should still be viewed with some suspicion. It’s not always in your best interest to be extended a loan, and you may not realize that until it’s too late.
By choosing to take these loans, you’ve given Alpine Credit a share in your home equity. As a result, they effectively take ownership of a part of your home, and if you aren’t making your payments, they can and will liquidate it in order to get their money from you. This is presumably not a common occurrence, but it has definitely happened. One man featured on the news took out a home equity loan with this lender in order to fund a business idea he had been waiting to put into action for quite a while. At first all went well, but when he had a sudden downturn in income and couldn’t make his payments, he lost his house due to foreclosure.
He stated that the company did not mislead him in any way and that he was at fault for using the products the way he did – essentially, that his own foolhardiness was what caused his later financial distress. That may be true, but he would probably not have had the opportunity to cause so much damage if he had not had access to the loan in the first place. While it is not Alpine Credit’s responsibility to judge the long-term prognosis of his business plan, the way they allow nearly anyone with real estate equity to take out a loan can sometimes backfire on the unsuspecting borrower. That’s why these loans take a little more consideration than your average financial product, even if they look appealing based on just what you see on paper.
Real Users’ Experiences With Alpine Credit
Alpine Credit understands the heavy influence that hearing others’ thoughts about their products can have on the decision-making of prospective customers, so they’ve taken pre-emptive action to make sure that you don’t have to go looking for user reviews yourself. They display a selection of them right on the front page of their website, although the names have been changed to protect people’s identities. This set of reviews indicates that the lender is very easy to work with, and provides satisfactorily low rates – all of which seems to be entirely accurate given the basic information we already covered above.
However, it’s important not to take those accounts at face value, as they have been cherry-picked by the company to provide a positive spin for promotional purposes. Always remember stories like that of the man described above; they may be uncommon, but the fact that they exist at all speaks to the need for extra care when using this product. There are risks with any financial product, but when your home is on the line, you have even more reason to be on the lookout for danger. Whether you come out a happy user or a complaining one might come down to how wisely you approached this opportunity.
Should You Use Alpine Credit?
If nothing else, Alpine Credit is a near-surefire source for loaned money if you own any real estate. Aside from that, they also offer fairly good rates in comprison to what you would get from unsecured loans from similar lenders who do not deal in home equity credit. You can still get better from banks and lenders who insist on applicants having very good credit, but for some, Alpine will definitely be their best bet for an affordable loan.
The only trouble is the dangers that come with it. There is no excuse for taking a loan like this without doing all your homework first and making sure you never fall behind on your payments. If you can do all that, though, you’ll have nothing to lose by taking this company up on their offer. That way, you’ll get to take advantage of all of the many benefits that are offered by Alpine Credit while minimizing the risk of harm to you.