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Personal Loans

Peerform Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Peerform
APR

5.99%
To
29.99%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.00% - 5.00%

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on LendingTree’s secure website

Even with a credit score of 600, you still might be able to secure a loan through Peerform. ... Read More

Peerform personal loan details
 

Fees and penalties

  • Terms: 36 or 60 months.
  • APR range: Loan APRs range from 5.99% to 29.99%.
  • Loan amounts: You can borrow anywhere from $4,000 to $25,000.
  • Time to funding: Up to 14 days
  • Origination fee: 1.00% - 5.00%, depending on the “grade” Peerform gives your application. The fee is subtracted from the loan total. Example: If you request a loan of $2,000 and are charged a 5% origination fee, you’ll get $1,900.
  • Prepayment fee: None
  • Late payment fee: After 15 days, you’ll be charged 5% of the monthly installment or $15, whichever is greater.
  • Other fees: If you pay by check, Peerform charges a $15 fee per payment. A returned payment also incurs a fee of up to $15, depending on state laws.

Many people like the idea of bypassing the traditional banks in favor of a P2P lender like Peerform. Borrowers use the money for things like debt consolidation, unexpected home or personal expenses or to fund small businesses. But these loans are not for everyone — and a Peerform loan can’t be used for certain items.

For example, Peerform prohibits borrowers from using personal loans to pay college tuition or other postsecondary expenses, or for “illegal activity.”

Eligibility requirements

Even though Peerform lends to borrowers with poor credit, applicants will still need to show that their debt-to-income ratio is below 40% and proof of having (or having had) at least one revolving account such as a credit card. Your credit history must not contain any current delinquencies or a recent bankruptcy, court judgments, tax liens or non-medical-based collections opened in the past 12 months.

Applicants must be at least 18 years old (19 if you’re a resident of Nebraska or Alabama), and a U.S. citizen or permanent resident. You’ll also need a Social Security number, a valid email address and a bank account.

Applying for a personal loan from Peerform

The online-only process is straightforward: Register at Peerform with your name, contact information and salary. To verify your identity, you’ll need to upload or e-mail some form of photo identification: driver’s license, passport or state or federal ID. In some cases, additional paperwork – Social Security card, utility bills, credit cards or bank statements – may be requested.

You also have to show proof of employment by uploading or e-mailing two pay stubs. Those who are self-employed will need to show a recent tax return plus two recent bank statements.

The Loan Analyzer then determines whether you’re eligible for a loan, and at which rates and terms. Once you select the best loan match, potential investors have up to 14 days to review it.

Peerform cannot guarantee that your loan will be completely funded by the end of the two-week period. If investors provide less than 60% but at least $4,000 of your requested amount within that time frame, you can decline this partially-funded loan. However, if at least $4,000 and more than 60% of your request is approved, then the loan is considered funded.

Once the request is funded and the loan completed with the lender, Cross River Bank, the money will arrive in your bank account via direct deposit.

Pros and cons of a Peerform personal loan

Pros:

Cons:

  • The 600 minimum credit score means borrowers with less-than-stellar credit may still qualify for a loan.
  • Peerform offers some flexibility regarding repayment. If cash flow is a problem, you can delay a payment for up to 14 days without paying a late fee.
  • You can opt to accept or decline a partially-funded loan.
  • There’s no prepayment penalty.
  • Those with lower Peerform Loan Analyzer scores face higher APRs up to 29.99% and origination fees up to 5%.
  • The only available term is 36 or 60.
  • No joint applications or cosigners are allowed.
  • It could take up to two weeks to find out whether you get the money, which is a problem if you need the cash right away.

Who’s the best fit for a Peerform personal loan?

Those with lower credit scores who have been rejected elsewhere may still qualify at Peerform. Those with good credit scores can qualify for decent interest rates, with an APR as low as 5.99%.

Borrowers who are able to pay off their loans relatively quickly should find the three-year term manageable, but the cash-strapped may prefer competitors’ longer five-year terms.

Alternative personal loan options

Peerform is just one of several peer-to-peer lenders, including those who offer loans to subprime borrowers. Here are a few alternatives to consider:

LendingClub

APR

6.95%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

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on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 600.... Read More

LendingClub offers loans between $1,000 and $40,000 with 36 or 60 month terms. Like Peerform, it accepts applicants with credit scores as low as 600. The APR range is 6.95% to 35.89%. LendingClub is not available in West Virginia or Iowa.

OneMain Financial

APR

16.05%
To
35.99%

Credit Req.

Varies

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

Varies

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on LendingTree’s secure website

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If you have a credit score below 600, OneMain Financial is one of the few lenders that you can use to get a personal loan.... Read More


Loan approval and actual loan terms depend on your ability to meet our standard credit criteria (including credit history, income and debts) and the availability of collateral. Loan amounts subject to state specific minimum or maximum size restrictions. Collateral offered must meet our criteria. Active duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral. CA minimum loan amount is $3,000. GA minimum loan amount is $1,500 for present customers and $3,100 for others.

This P2P lender is unique in that it sets no minimum credit score for applicants. However, it has the highest minimum APR among the lenders mentioned here, starting at 16.05% and going up to 35.99%. You can borrow between $1,500 and $30,000 for two, three, four or five years. OneMain Financial does not operate in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island or Vermont.

Prosper

APR

6.95%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

2.41% - 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. ... Read More


For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Prosper offers loans from $2,000 to $40,000 for 36 or 60 months. Its current APR ranges from 6.95% to 35.99%. Of the three alternative subprime lenders mentioned in this article, it requires the highest minimum credit score: 640. Prosper does not operate in Alabama, Arizona, Arkansas, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Vermont and West Virginia.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Donna Freedman
Donna Freedman |

Donna Freedman is a writer at MagnifyMoney. You can email Donna here

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How to Finally Pay Off Your Medical Debt

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Millions of people struggle to pay off medical bills every day. According to a 2016 survey from the Kaiser Family Foundation and The New York Times, 26 percent of U.S. residents – both insured and uninsured – face serious financial challenges due to medical bills.

Thanks to deductibles, copays and other costs, even those who had insurance were forced to:

  • Spend less on food, basic household items and clothing (75 percent)
  • Use up most or all of their savings (63 percent)
  • Take on more hours or work a second job (42 percent)
  • Add to credit card debt (38 percent)

Unpaid medical bills are generally sent to collection agencies — some after only 30 to 60 days of nonpayment.

Beginning in September 2017, the three major credit agencies (Equifax, Experian, TransUnion) made some changes with regard to the reporting of medical debt. Chief among them: instituting a 180-day waiting period before including medical debt in credit reports.

The idea was to give consumers sufficient time to deal with insurance payment delays and other issues.

Despite this change, it’s still unwise to sit back for half a year, hoping your own medical debt will somehow resolve itself. Should it eventually wind up on your credit report, it could stay there for up to seven years and hurt your credit score, making it harder to qualify for credit in the future. You could also be sued and maybe even have your wages garnished, in a worst case scenario.

Here are some steps you can take to finally start tackling your medical debt.

Catch errors early

If the debt was recently incurred, your initial medical bill(s) might include the phrase “insurance pending.” Don’t make any payments until all benefits have been applied.

For new and older bills alike, make sure you’re being charged correctly. For example, some offices still mistakenly bill for preventive care that should be fully covered under the Affordable Care Act.

Other mistakes are the result of human error, such as entering an incorrect billing code. If you’re being charged for a service or treatment you don’t think you received, contact the billing department for an explanation. If any errors are determined, ask for a new itemized statement.

To the average consumer a billing error might be invisible, such as being charged for individual services vs. “bundled” ones. If your healthcare debt is extensive, consider hiring a medical billing advocate. This person understands the nuances of medical costs and can also help you work out a solution with the healthcare provider, such as writing off a portion of the debt (more on that below).

Medical billing advocates can be found through organizations like the Alliance of Claims Assistance Professionals or the Alliance of Professional Health Advocates. Some charge an hourly fee and others receive a percentage of the money they save their clients.

The power of negotiating

Suppose you and/or the medical billing advocate have fixed any errors but you still can’t afford the remainder. Most hospitals have programs to reduce some (or even most) of the costs for patients who have trouble paying.

Contact the billing department and ask to talk with a supervisor, says Martin Lynch, a certified credit counselor and Director of Education and Compliance Manager at the nonprofit Cambridge Credit Counseling in Agawam, Mass.

Tell that person that you “want to pay to the best of my ability,” and be honest about your finances. For example, you might say “I have $5,000 worth of medical debt and another $20,000 in student loans, but right now I earn only $12 an hour.”

Then suggest one of these solutions:

  • You are willing to pay 25 percent of the balance and get the rest written off. The representative will likely reject this idea, but it’s a starting point for negotiations. (If you’d be able to pay your share all at once or fairly quickly, say so.)
  • You will pay a lump sum upfront (as much as you can afford without destroying your budget) and then arrange a monthly payment plan.
  • Either plan would be contingent on having the interest waived and any late fees or other charges removed from the balance.

The point isn’t to dodge your obligation, but to be realistic about what you can afford.

“Don’t low-ball, thinking you can get a great deal. They provided services in good faith and need to be repaid in some fashion,” Lynch says.

Use a 0% credit card

Suppose you’ve negotiated down your medical debt, but the billing department won’t waive the monthly interest. If you believe the balance is repayable within 12 to 15 months, consider getting a credit card with a 0% promo APR to take care of it.

Before you do that, create an ironclad plan to pay the card off – and make sure the plan works with your current budget. Once that promo period ends, regular APR charges will apply.

Take out a personal loan

Can’t negotiate away the interest on your unpaid medical debt? Compare it to the interest rate on a personal loan.

If you qualify for a loan with a better rate, take it and pay off your medical debt. After that, make it a priority to repay the personal loan. Think of the debt as an enemy.

“Attack it,” says Donna Skeels Cygan, a certified financial planner in Albuquerque and the author of The Joy of Financial Security. “That might mean getting a second job, or eating a lot of peanut butter and jelly for six months. Say, ‘I am going to make these changes – that are not going to be fun – to pay this off.’ Make a commitment.”

Find extra cash for medical bills

Look for that second job. Babysit, scoop a dog owner’s yard (their waste is your gain!), deliver pizza, become a virtual assistant. Put it out in the universe that you’re looking for a side hustle, or look for gigs at sites like TaskRabbit, Freelancer.com, Upwork and Care.com.

Turn your current spending plan into a debt-dumping budget. Get ruthless about non-essentials for a while. Not good at trimming the fat? The National Foundation for Credit Counseling and the Financial Counseling Association of America can connect you with a counselor skilled at finding “extra” money in budgets. These services are offered at low to no cost, and you can’t be turned away due to an inability to pay for them.

Look for better deals on insurance and phone/Internet, and throw the savings at your debt.

Do a “spending freeze.” Choose to do without one or two things for a set period of time. For example, you might give up a month’s worth of Friday night happy hour meet-ups with friends in favor of Netflix and snacks at home.

Make lunch and/or coffee. Wait until you see what a brown bag and travel mug can save you in a month’s time.

Every extra dollar you put toward the balance is a victory in that financial battle. People who take charge “realize they are in control and can make this change very quickly,” Skeels says.

Learn More

Can Medicaid help?

Those who meet certain eligibility requirements, including income and residency, could qualify for Medicaid. This joint state and federal program may provide retroactive benefits for up to three months prior to the date you apply for coverage.

If your medical debt is relatively recent, use the link above to find out if you are eligible for retroactive coverage.

Should you crowdfund your debt?

While some medical debtors have decent success on sites like GoFundMe and IndieGoGo, you shouldn’t count on it. A study from the University of Washington found that 90 percent of GoFundMe medical campaigns don’t hit their targets; some don’t get anything at all.

If you do go this route, strong marketing and social media skills will improve your chances.

The Internal Revenue Service has not issued specific tax guidelines on crowdfunding. According to the Block Advisors tax preparation company, crowdfunded donations for medical bills and other “life event” causes are likely to be considered gifts, rather than income, and possibly not taxable.

The bottom line

Your medical debt is more than a heavy psychological burden. If you don’t do something about it, you’ll pay a lot of unnecessary interest and wind up with a lower credit score and, maybe, a lawsuit.

No doubt about it: Debt stinks. Get proactive about vanquishing it. Take a positive attitude toward the process, Cygan says: “I am in control of my money and my future financial security.”

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Donna Freedman
Donna Freedman |

Donna Freedman is a writer at MagnifyMoney. You can email Donna here

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Auto Loan

How to Finally Pay Off Your Car This Year

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

iStock

A car is the second-most expensive thing most of us will ever buy. And it’s getting pricier: The average loan amount for a new vehicle is $30,621 and U.S. residents owe more than $1 trillion in car debt, according to Experian’s 2017 “State of the Automotive Finance Market” report.

We’re also getting deeper into auto debt over longer periods of time. The number of people borrowing longer-term loans (73 to 84 months) increased by 10% since the previous year’s report. Not only do these extended loans mean more interest paid, they also eat up consumer income for too long.

“You can handle $400 a month today, but what happens if you lose your job or have to move?” said Sonya Smith-Valentine, a former consumer protection lawyer and accountant who now offers financial wellness training in the Washington, D.C. area.

“Seven years is too much time to be tied into a car loan.”

The obvious alternative to getting stuck with a big auto loan is to pay cash, but not everyone can afford that. Another option is to buy a reliable used car or a less-expensive new car, and finance those loans for shorter periods.

“The more that you end up paying in interest, the less you have in cash flow over your life. That cash flow is what’s going to build your wealth,” said Tara Falcone, a certified financial planner in Princeton, N.J. “If you’re in your 20s or 30s, that (interest) invested over time could be a significant amount of money in the future, when you need it to live off.”

How to finally pay off your auto loan

Paying a loan off early may sound impossible to those whose budgets already feel tight. The following information can reveal options you didn’t know you had.

To make an early payoff game plan, you need to know:

  • The term of your loan and its interest rate
  • Whether the loan agreement includes a prepayment penalty
  • How much you still owe (call the lender for this)
  • The current value of your vehicle (find it on sites like Kelley Blue Book)
  • Your credit score, which will greatly impact your ability to qualify for a loan with better terms

From there, there are a few ways to manage your loan:

Option 1: Refinancing

MagnifyMoney

If you’re stuck with a high-interest auto loan, you might consider refinancing for a new auto loan with better terms. Banks, credit unions and online financial institutions may be able to get you a new loan with terms more favorable than the original one.

Ideally, the new loan term will be shorter than the current one. The point is to pay off the car note as quickly as possible, in order to pay as little interest as possible.

Depending on your original rate, however, a longer-term loan might still mean less interest paid overall. Falcone knows of a Navy enlistee who financed a car at a dealer for a whopping 24%. Fortunately, she was able to refinance at 7%.

Run your own numbers through an auto loan refinance calculator like this one from LendingTree, the parent company of MagnifyMoney. If your original agreement includes a prepayment penalty or if the new loan would carry an origination fee, you’ll need to factor those into your calculation as well.

If you can refinance at a lower interest rate, early payoff will become easier.

Option 2: The rapid repayment route

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The faster you retire a loan, the less interest you’ll pay. One simple tactic to pay off a loan quickly is to make biweekly payments instead of monthly payments.

If you owe $430 per month, for example, you’d make half that payment every two weeks. Paying $215 every other week (or 26 times per year) rather than the full amount 12 times a year would add up to $5,590 instead of $5,160.

You could also continue to make monthly payments, but pay more than the required amount. An easy way to start is by rounding up. For example, if you owe $389 per month, you could make the payment $400 (or more, if you can).

Where to find the extra money? These tactics can help:

Sell stuff. A game system, designer purse, mountain bike or other rarely used items could bring in decent dollars through eBay, Craigslist or consignment websites.

Write down what you spend. Small, unnoticed expenses can add up fast, says Brian Hanks, a certified financial planner who practices in Salt Lake City. He advises clients to keep track of all expenditures for a month (on paper or with an app). Often, they’re startled to discover how much the things they “don’t get real value out of” are costing them each month – money that could be applied to their loans.

“Once they realize it, behavior can change,” said Hanks.

Get a side hustle. Petsitting, driving for Lyft, a weekend waitressing gig – whatever fits your ability and personality. Or use your professional skill set to become a consultant, looking for work you can do on weekends.

Contribute windfalls. You got a tax refund. Grandma sent you $50 for your birthday. Vacationing neighbors paid you to pick up their mail. Any time additional money shows up, throw it toward your payment.

Ask for a loan. A relative or friend might be willing to help. Draw up an agreement specifying how you’ll repay (weekly? monthly? by cash, check or PayPal?) and then keep to the terms.

Spending freeze. Colorado-based certified financial planner Dan Andrews suggests clients drop one expensive habit (shopping, eating meals out) for 30 days.

“Prove that you have the savings gusto in you for a month,” he said. Then, put the money saved toward the next payment. Often, the spending freeze “reframes what they thought was a ‘need’ into a ‘want,’” said Andrews, who specializes in working with millennials. This means more money for the loan every month.

Before you start making extra payments, talk to the lender. You need to make absolutely sure that the additional money goes against the principal of the loan.

Option 3: Selling and starting over

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Want to get out from under a loan entirely? Let someone else pay it off.

Compare the Kelley Blue Book value to the amount you still owe. If there’s a positive balance – say, you owe $10,000 and it’s worth $11,000 – then put the car up for sale.

Once you have a buyer, ask the lender for the payoff amount: What it will take to pay in full and get the vehicle’s lien released. Smith-Valentine suggests creating a written agreement stating that the third-party buyer will pay the lender directly, and you will sign over the title once you receive it.

You’ll want to have another mode of transportation lined up, of course. Having to carpool or take public transit for a while might be preferable to being deeply in debt. Continue to make your “car payment,” though: Set aside that amount every month for a replacement vehicle. Figure out what you’re not paying for car insurance and add to the car fund, too.

If the agreed-upon sale price doesn’t cover the payoff amount, be prepared to make up the difference. Should you be lucky enough to sell the car for more than it’s worth, use the balance as seed money for a replacement car.

A word of caution about auto trade-ins: You may have seen ads for auto dealers who offer to pay off your previous loan if you’ll trade in the vehicle for a new one. The Federal Trade Commission advises consumers to be cautious about such deals, especially if they have negative equity (aka they’re “underwater” on their loans).

Some of those dealers find ways to include the money owed that in the new agreement – which means you would be financing that negative equity along with the cost of the replacement vehicle. Read the contract very carefully, and ask for an explanation of how any negative equity was handled.

What if you’re underwater on your auto loan?

MagnifyMoney

Owing more than a vehicle is worth makes it tougher to sell but not necessarily impossible.

If you have savings, make up the difference between what a buyer will pay for the car and what will be left on the auto loan afterward. No ready cash? Look into taking out a small personal loan to pay off the remaining balance. It may be better to owe some money than to be stuck with a large loan for a vehicle that continues to depreciate.

Another possibility: Make extra payments against the principal until the loan balance matches the car’s value, and then put it up for sale. Before you do, check to see if at that point you’ll be eligible for refinancing at a better rate – if you want to keep the car, that is – and if you’ll be able to swing the lower payments.

Should you give back the car?

Suppose you’re underwater, can’t refinance, have no savings and are disgusted with the thought of making payments for years. It can be tempting to just give the car back to the dealer.

Don’t do it. A “voluntary repossession” reduces costs only for the creditor, and will hurt you in the long run.

The now-used car will probably sell for less than the loan balance, and you are required to pay the difference. For example, if you still owe $12,000 and the vehicle sells for $9,000, then you’ll have to come up with the “deficiency” of $3,000. You’ll also be on the hook for other funds, such as fees associated with the repossession, including storage and legal fees.

The lender can sue you for a “deficiency judgment,” which shows up on your credit report. If the account gets turned over to a collections agency, you’ll be hounded nonstop – and the judgment will remain on your credit report until it’s paid. The repossession will also stay on your report for up to seven years, which wreaks havoc on your credit score.

Instead of giving the car back, use the rapid repayment tactics noted above to bring the loan balance closer to the vehicle’s current value. At that point, try selling or refinancing. If you’re financially stressed, Smith-Valentine suggests a longer finance term in order to get a lower monthly payment. That will mean more interest in the long run, but will give you some breathing room right now.

“I’m not a proponent of long car loans. But that’s still better than a repossession,” she said.

Bottom line

Ideally, you’ll be able to pay off your loan quickly, or at least refinance it at a more favorable rate that allows you to put more money toward the principal balance.

Imagine not having a car payment. What could that extra few hundred dollars a month do for the bottom line? Make this the year that it happens.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Donna Freedman
Donna Freedman |

Donna Freedman is a writer at MagnifyMoney. You can email Donna here

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