Those who are lucky enough to own their own homes may not realize how much of a better deal they can get on a loan by using that home as an asset for collateral. Alpine Credit can work out a deal like this with you that will more than likely get you some of the best rates you’ll find anywhere. You can borrow money from them even if you have poor credit. Like most things that almost sound too good to be true, though, there’s a potential catch that you should know about before you borrow. We’ll get into the details further below.
Borrowing Basics For This Company
Aside from the stipulation that you must be a homeowner to apply for their secured loans, the loans offered by Alpine Credit are very similar to what a standard lender would offer. You can borrow sums of anywhere between $500 and $35,000 depending on your needs and the details of your case. You will be asked to pay that sum back in as many as 24 months, although not all borrowers will get such a long period of time to pay. It won’t take long for you to get your money, though; they advertise that they can typically have the funds in your hands in 24 hours, although this is not a hard guarantee due to the complexity of verifying some of the information involved with these loans. This is not the type of loan you want to be done carelessly, though, so try to be patient if you do experience a slight hold-up. It’s in everyone’s best interest that everything is properly investigated and accounted for.
Most readers will probably be more interested in learning about the interest rates they charge, though. The rates that Alpine Credit provides can be dramatically different from one case to the next (the lowest they offer are just 3%, but they can rise as high as 47%), so there’s no use in trying to project what the rate you will be offered will be until you’ve actually submitted an application. However, it’s reasonable to expect that you will be able to secure an interest rate that is lower than what you would be able to get from a lender that does not factor the value of assets into their applications. The whole point of involving your home in all of this is to get a deal on the loan you’ll be offered, so if you can qualify for one, a loan like this will almost always be your least expensive and most generous option. Keep in mind, though, that there may also be closing fees to deal with depending on the size of your loan. If so, you should see that indicated on your loan agreement papers, so be sure to read those carefully before you sign them.
How Home Equity Loans Work
As we pointed out in the breakdown above, Alpine Credit loans are home equity loans. Not everyone knows exactly what those are, though, and that’s an important thing to be clear on before you take out a loan with this particular company. To that end, we think it might be a good idea to go over this type of product quickly so that our readers are clear about what we are discussing here. It’s a unique proposition with some requirements and risks that should be fully understood by anyone who is seriously considering it for themselves.
When you apply for one of these loans, you must first have your property assessed for value. You can generally use your property tax forms for this purpose, but in some cases, a more thorough inspection may be conducted. The value of your asset is determined using its current market value, so if you bought your home a long time ago or inherited it from a family member, it may now count as a much more valuable piece of property than it would have when you had first acquired it. No matter which way the pendulum swings, however, this reflects the real market value of your home and cannot be changed, so you’ll have to make your peace with that before you can go ahead and borrow.
Once you and your lender are clear on what your property is worth, you’ll have the chance to agree to sign over temporary legal control of it in order to secure your loan. Doing this will have no impact on your daily life – you can still continue to live in your home, perform maintenance on it, and do all the things you usually do. However, if you fall behind on your loan payments and it becomes clear to your lender that you are either unable or unwilling to pay in full, they may use their legal power to sell your house in order to get their money back. This will mean that you have lost your home and the portion of the proceeds for it that you owed the lender. Obviously, this isn’t the ideal outcome. If you make your payments as you’re supposed to and generally exhibit ideal credit behaviour, you won’t have anything to worry about.
Cause For Concern?
Given what you now know about home equity loans like this, you might be wondering whether or not you should be worried about borrowing from this lender. The truth is that home equity loans can indeed be very risky, mainly due to the immense consequences that you can suffer if you happen to mess up. It can take a family years to recover from the loss of their home, and many never do get over it completely. While this is not a guarantee, it can in some cases lead to homelessness and poverty that lasts a while. Those kinds of experiences leave marks on you financially and emotionally that is extremely difficult to shake, later on, so you want to avoid them as much as possible.
This isn’t just our opinion either. The Financial Consumer Agency of Canada actually takes the time to explain the whole idea of a home equity loan on their website, signaling that they think it is important that consumers fully understand what these products are and what the repercussions of choosing them might be. They can be great products when they’re used by responsible, prepared people to get a better deal or to circumvent the effects of bad credit, but they’re too heavy a responsibility to take on casually. They may well be the best options for you in your particular circumstances, but do not make that judgment without first giving the matter some significant consideration.
Understanding Alpine Credit’s Reputation
Although Alpine Credit isn’t always mentioned in the best light, it’s only fair to remember that a lot of the criticism they face is due to people becoming unhappy with the final results of their loan. As we’ve stated, there is always a chance that this type of loan will go wrong, and if you do, you may lose your house. That is a risk that Alpine makes perfectly clear when you apply for their products, and it’s one that any person who still chooses to do business with them accepts as part of the agreement. Therefore, it’s hard to hold those outcomes against the company itself. There was no deception involved and the unfortunate final results had more to do with their customers’ choices than anything that Alpine did themselves, so it shouldn’t factor into your thoughts about this lender.
That issue aside, indications regarding what people think of this lender are pretty good overall. They have a pretty good reputation on their Facebook page, at least, and an active community there to back up that rating. These things are probably more indicative of the kind of experience you could have if you chose to borrow from them, provided you understood what you were getting into. We’ve already given you the information you need to do so, so there’s no need to worry on that count; just think about what we’ve told you and come to your own conclusions.
Can Alpine Credit Help You?
For obvious reasons, you shouldn’t even be thinking about borrowing from Alpine Credit if you don’t have a home to put up as collateral – they simply will not work with you in that case. Those who do meet that criteria should take the chance to give the matter a little more thought, given the potential risks involved. If you’re really committed to the idea of getting a home equity loan, though, Alpine Credit is a perfectly viable choice for this kind of product. They’re an established lender that has been doing this type of lending for several decades now and can be counted on to uphold their end of the bargain at all times. Just be sure that the bargain is one you really want to take before you go ahead with anything.