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Category Archives: Finance

Useful Tips to Get Personal Loan

First, you must be familiar with what is in your credit report. The lenders of personal loans want to know if you are paying close attention to what your own credit report says about you, because it identifies you as someone who is financially responsible. A person who is financially irresponsible does not care much about what is in their credit report. You will score higher with lenders, however, if you are familiar with and can explain everthing in your credit report.

If possible, try to improve your credit by settling some old debts. Be prepared to show statements on all of the debts you have paid off. If you show the lenders that you can responsibly handle your financial obligations, you will increase your chances of getting a personal loan.

If you are serious about taking out a personal loan, you have to carefully decide how much money truly need and how much you can afford to repay.

You must know exactly why you are borrowing the money and what special use you have for it. This is also to let your interested lenders know that you are in charge of your life and responsible for your finances.

Do not just get a personal loan for the sake of getting some extra cash.

Loans are not just free money, they must be repaid; often at the end of the loan period it is more than what you borrowed. One of the major criteria for getting a personal loan is the ability of the borrower to pay back the loan and lenders will always evaluate this carefully. The lender needs to be shown that you are reliable and able to pay the loan back. Lenders, as a general rule, are not crazy, they do not tend to lend money to those they think will not pay them back.

Your credit report and current financial status can only show so much; the lender will also want to see that you have stable employment.

It is necessary for you to provide income statements or show an accurate record of your earnings for a period of time. If you have a good employment history, show it to the lender and if you’re currently self-employed, show them your business plan and potential earnings.

Pay attention to your credit report and be sure you can explain everything that is in it in order to increase your chances of getting a personal loan.

Show that you have a specific purpose for requesting the loan; ask for only what you need, show the lender that you’re able to pay back your loan, and show valid income statements or record of earnings.

 

Myths vs. Facts about Title Loans

Myth 1: A title loans cause unnecessary debt and bad credit issues.

Fact: Like any loan, if the borrower does not make repay it in time, his credit will suffer. Therefore, title loans should not be singled out for bad credit ratings. Since your car is a prized possession, title loans should be availed only when necessary and if you are sure of paying off the loan within the payment period.

Myth 2: You can avail of a title loan from any lender that you come across.

Fact: All lenders may not work on the same conditions so it is sensible to explore the market and gather information before coming to a decision. Unscrupulous lenders may induce you to borrow without actually being precise about the repercussions of defaulting on your loan, which could spell disaster for you.

Myth 3: A title loans has a low interest rate.

Fact: The rate of interest charged on title loans offered by companies varies depending on their location. Consumers should decide to avail of such loans only after calculating the yearly rate. Most lenders quote monthly rates that appear low and therefore attractive. The annual percentage rate (APR) on interest may range from 36 to as high as 600. Lenders may also charge additional fees.

The most important fact before you opt for a title loan is to consider the risks involved before diving for it. Auto title loans come with high interest rates, which may further escalate in case of rollover payments. You may have to pay an even heavier penalty in the form of your car if you fail to pay.

 

Pros and Cons Payday Cash Advances

Pros Of Payday Cash Advances

• For emergency cash needs, cash advances provide the quickest and easiest assistance. No matter what your monetary need is – emergency hospital bills, mounting bills of utilities, unexpected vehicle maintenance bills or credit card bills. All these can be tackled with just one loan.

• In order to have a perfect credit report, payday cash loans can help you pay pending bills on time in severe financial situations.

• The application process is quite simple and you do not need to fax any documents.

• Now with easily available online payday loans, you can get instant cash without leaving your home.

• There are no credit checks done.

• People with bad credit or people who have filed for bankruptcy can also get approved for quick cash advances.

Cons Of Fast Payday Loans

• The payday cash advances provide very short term loans of small amount. You can get maximum of $1500 that too for a period of 14 to 20 days. Some states have a maximum limit of just $400 for instant cash loans.

• The interest charges are quite high compared to traditional loans which make these loans quite expensive. If you fail to payback the entire amount on the due date, the interest charges get almost doubled. Hence, if you need a larger loan or if you are not sure of paying back the payday cash advances on time, these loans are not meant for you.

• Sometimes the loan provider gives very unclear terms and conditions that you fail to understand and end up paying a lot in terms of financial charges.

Payday cash advances are actually your monthly salary in advance. It has become quite simple to apply for a cash advance today. Fast payday loans are a simple, quick and instant way to tide over your financial crunch.

 

Know more about Faxless Payday Loans

Faxless payday loans are an excellent option for all those in desperate need of some money. These loans are different from other loans as they do not require any papers or documents to be faxed to the lender. Here the lender does not ask for any information for which he requires written proof. He grants the loan solely based on the information filled up in the application form. Online payday loans are a quick and simple solution for all those who fall short of cash in between their paydays. The cash amount is quickly approved and deposited into the applicant’s bank within 24 hours of approval. So what are you waiting for? If your attic needs some urgent repair work or you need to pay for your son’s school fees and you are short of cash, apply for a payday loan.

Application Procedure

Applying for faxless payday loans is not a problem. All you have to do is locate a reliable lender and apply online. Here however you are advised to go through the terms and conditions put up by the lender so that you do not face any problem later on. Also keep in mind that the interest rates offered by the payday lenders vary greatly. Do remember to compare the rates offered by a few lenders before you sign the deal.

Once you have found the lender you wish to deal with, your next step would be to ask for an online application form. Filling up the form is a 10 minute job which once done can be submitted for approval. The processing of the form would not take more than a couple of minutes and you would be informed about the status of your application within a short span of time. If approved your loan amount would get deposited into your bank account within the next 24 working hours.

Eligibility Requisites

Let us now go through the eligibility criteria of the payday loan lenders.

• You need to be 18 years of age or older.

• You have to be a citizen of US and should apply from the state that you reside in.

• You have to produce a proof of income to the lender. Lenders prefer individuals whose monthly salary is at least $1500 per month. Your loan sanction amount too would depend on how much you earn every month.

• You would have to submit your valid checking account details and a post-dated check of the loan amount.

• Some lenders ask for a proof of residence stating that the borrower has been staying in the same house for the past 6 months or more.

The above is a general list of the eligibility criteria set up by most faxless payday loans lenders. Ensure that you go through the entire list of requirements set up by your lender before you sign the dotted line.

 

How to Getting A Secured Loan?

Personal loans are a good way to get over your present financial crisis, and could be availed as unsecured or secured loans. The quickest way to finance your requirement is to avail a secured personal loan, where a collateral security would ensure the immediate disbursement of the loan. A secured loan would mean that you could negotiate a much lower interest rate on financing your immediate expenditures, and you may get an opportunity for a longer pay-back period.

As for unsecured loan, you may have to pay a higher interest rate, and may have to go through credit checks and other verifications before the loan is made available to you. You may surprisingly find that the interest rate charged is higher than the interest rate you are already paying for the debt that you have. In order to qualify for personal financing, at the very first instance you have to be employed at the same place for at least six months. Your pay stubs may be required when you apply for a unsecured personal loan for verification of your income and residential address. More-over, the loan amount would depend on how much your earnings are.

When you take out a secured personal loan to finance your immediate expenses, it is generally secured against your asset, such as your property. This acts as a security to the lender, where the money loaned to you is secured against the value of the property, which is generally your home. This type of personal financing, where you keep your property as security with the lender, is often termed as house owner’s loan. If you are looking for large personal financing, which you may require for some renovations done to your home, secured loans are ideal personal financing schemes for such large loan amounts. Secured loans are also a solution for home owners where unsecured personal financing has been refused.

Personal finance, secured against the assets of the borrower, carry a much lower interest rate than unsecured loan. Further, the interest rate could be negotiated, with low monthly re-payments. The amount of loan given would depend on the lender, but would essentially be determined against the value of your property. The lender may decide to have your property valued before deciding on the loan amount.

With secured personal loan, you will find the lenders are patient with you if you should default on your payments. The collateral security against the loan provides the lenders with the confidence that the money is very much secured against your assets. In case you cannot pay back the loan, your lenders will have the right to sell your property and recover the amount.

When taking out personal loan to finance your needs, you need to pay special attention to the annual percentage rate (APR) that is being charged for the loan. This is one of the important of all the other components in taking out a personal loan. You would need to negotiate and get as much advantage as you can, simply because you are providing a guarantee of payment in form of the collateral security that you are providing. The other point is that, sign over your collateral when you sign the loan documents, and make sure that everything appears in the document an nothing remains verbal.

 

How to Aiding Credit Improvement With Fresh Start Loans?

Optimizing The Use Of The Funds For Credit Improvement

Fresh start loans can provide a fair amount of money that can be used for repaying outstanding debt. This reduces the debt exposure and thus, improves the credit rating. However, if you choose correctly the debt that is damaging your credit the most, you can optimize the use of the funds to repay as much of that debt as possible.

But, which debt causes more damage to your credit? Well, there are two variables that you need to take into account. On one hand you need to analyze the interest rate. Higher interest rate debt should be repaid sooner. This is especially true with high interest rate credit card balances that are responsible for most of the debt accumulation problems of the average American.

The other variable is the debt spreading. Debt concentration is also a great problem. You may have a low interest rate debt but it can be concentrated on a few upcoming years which reduces your available income significantly and thus affects your credit negatively. To avoid this situation you need to use the funds from your fresh start loan to repay your debt in such a way that your remaining debt is left equally distributed along the years.

Making Sure Timely Payments Get Recorded Into Your Credit Report

The continued payments of your fresh start loan will contribute to credit recovery. This is due to the fact that the last six months of your credit history are the most important ones and if you avoid late payments and missed payments you can repair your credit in a short period of time. Moreover, each payment on your new loan gets recorded into your credit report as a positive input, thus improving your credit score.

Another thing you can do in order to enhance your credit recovery process with fresh start loans is to make sure that the lender you have chosen reports to the biggest credit bureaus. That way, your timely monthly payments will be recorded into your credit report improving your credit score and history. Just make sure that you pay all your bills and debts on time from now on. Also, make sure to check your credit report from time to time so as to be certain that your credit score is improving and no inconsistent information is being reported to the credit bureaus.

 

Tips to Get Great Auto Loan Interest Rates

The loans offered can be classified into two types depending upon the interest rate, namely, fixed interest rate and the variable interest rate. A fixed interest rate is the one that does not change throughout the span of the loan which is more convenient and safer, if it is does not contain any hidden fees.

On the other hand, a variable interest rate is the one that fluctuates over the span of the loan. This would be convenient for those who would be in a position to fluctuate or better the monthly payments so that the loan can be cleared off faster. This can be decided by the borrower or the lender.

The most common mentality of the borrowers who are in an urge to own a vehicle is to brush aside or just ignore with least regard, the interest rates which will be charged on the loan. This may be due to ignorance or the difficulty in understanding the implications of the interest rates that would be charged and the overall effect it would have on the payments, even if the rates differ marginally.

Hence, it is wise to compare the various interest rates offered by the lenders considering into account every possible fee and charge that would be included into the loan. The other factors that influence the interest rates of auto loan are the period of repayment of the loan -the longer the period of repayment, the higher will be the interest rate.

Also, the fact that the loan is secured or unsecured plays an important role in determining the interest rate. Certainly, unsecured auto loan carries a heavy interest as compared to the secured loan. The credit history of the borrower also influences the interest rate. So, it is better to set right the credit score before applying for an auto loan, to get the minimum interest possible. A credit score that is above 750 is considered to be good.

Another hidden fact is that the interest rates for auto loans tend to be low towards the end of the month because lenders would like to increase the sales towards the end of the month. In addition, if the borrower can afford to make a considerable amount of down payment, it increases the chances of getting a lower interest rate since down payment is an indication of the repaying capacity of the borrower and the lender would be convinced to demand a lower interest rate.

So, a lender should be smart enough to put down his cards that are in his favor one by one to strike the best deal while opting for an auto loan.

 

What Is An Interest Only Home Loan?

This type of loan is a sub-group belonging to the mortgage loan group. But it has a major difference that makes it unique. When applying for this type of loan, the borrower will only pay the interest of the property for a specified period of time (usually lasting 5 to 10 years). In other words, during the first 5 to 10 years of the loan, the borrower will only be paying the interest rate on the loan and the principal will remain untouched. If the consumer wants, he will also be able to pay more than just interests, but it is up to each borrower. Another available option is for the borrower to pay interest only for the first years and then repay the loan in full when this period is due.

Here is an example: in a interest only loan of $100,000 at 7% lasting 30 years, the borrower would be able to pay $583 each month for the first 5 to 10 years. This payment consists only of interest. A borrower with the same deal on a regular mortgage would be making a monthly payment of $860.

Who Would Benefit From This Type Of Loan?

It is plain to see that this type for loan is not for everyone. The initial lower monthly payments might be attractive, but the true nature of interest only home loans goes beyond that. You should beware of lenders trying to force this type of loan on you because chances are, they are just trying to make a sale. Following is a list of the types of borrowers who might benefit from this very interesting option.

Case # 1: you have a job which pays wells, but this income is in the form of irregular commissions and infrequent bonuses.

Case # 2: if you are a consummated investor who is planning on investing the savings obtained during the first five years of the loan.

Case # 3: you have a decent income but you are sure you will be earning more in the years to come.

As you can see, this type of loan is not for everybody. If your objective is to purchase a property to live in, and you have a fairly good salary which would allow you to pay both the interest and the principal, chances are you will benefit more from a traditional mortgage loan.

 

Home Loan Qualification Factors

1) Credit history – One of the first steps in approving a loan is pulling the potential borrower’s credit record. This history shows not only the bad things (such as foreclosures or bankruptcies), but also the good (such as attempts of repaying debt). Using this record, loan processors try to determine how reliable you’ll be for paying back the loan that you’re asking for.

2) Liquid assets – Loan processors also want to see how much money you have sitting in checking and savings accounts. They’re not looking specifically for large sums, but rather they want to see that you generally keep enough money in your account to cover unexpected emergencies. If you’re literally living off what you make each month, lenders may assume that it’s only a matter of time before you miss a payment due to inadequate funds.

3) Debt to income – Lenders look at the ratio of money you owe to the money that you make. They generally calculate in the costs you’ll incur from the current loan that you’re requesting. So, putting in this requested home loan with previous loans (from credit cards, school, car, etc.), they’ll establish a debt to income ratio. The lower this ratio, the better.

4) Income – In order to establish this debt to income ratio, the lender will need to consider your current monthly income. The lender will ask for previous pay stubs and income tax forms in order to see that you have a stable job with stable income.

5) Loan to value – This ratio is also called LTV. Lenders calculate this number by taking the loan amount you’re asking for and dividing that number by the home’s appraisal’s value. The more money that you’ll put in the down payment, the lower this loan to value ratio is (and the better off you’ll be in the loan approval process). Lenders specifically look at this ratio because statistics show that the more money you have invested in a property, the less likely you’ll default on the loan.

6) Appraisal – Your lender will require that the home is appraised before they sign a loan over to you. This step is to ensure that the home is actually worth what you’re lending to pay for it.

 

Inexpensive Unsecured Personal Loans

When it comes down to choosing a lending company to borrow from, we just don’t look one up and borrow from them, we do a little detective work first. There may be some creditors who can offer cheaper loan rates and terms, even though the first loan offer you get seems to have the best rates and terms.

So as a smart and thrifty consumer, you’re gonna have to stick with the best one you stumble upon. Here’s a little tip you could use to narrow down the search for such a service; check out the web for online lenders. The online lenders can offer the cheaper personal loans because the have lower operational expenses and the added competition for your business is more lively.

To be competitive, some lenders cut down their loan interest rates and offer more flexible loan terms. The process for getting an online loan can be one that is “cut-throat” in nature because those lending companies are willing to do almost anything to add to their client list. The other online lenders will notice that they have lowered their rates and bent their terms, so they go with the flow and do the same, so they won’t be left behind.

Lenders who operate online sometimes will not be able to satisfy all their applicant’s needs. When your loan has been approved by an online lender, the processing and approval for their services will go much faster.

One of your easiest and best ways to get a more affordable loan is to avail yourself a cheap secured personal loan. You will be placing a certain asset as collateral, and this will in turn, lower the rates and grant you a longer payback period for this loan. But default in payment, means you may lose the collateral you put up, so being sure that you’re capable of paying all back, in the first place, is absolutely important. A cheap, unsecured personal loan, which does not require any collateral, can be obtained if you are not up for taking the risk involved with a secured loan.

A couple of the biggest problems you have to face here are higher interest rates and a payback period that is shorter and much less flexible.

You can do whatever you legally are able to do with the money, when you obtain a personal loan for yourself, whether the loan is secured by some type of collateral or if it is one that is not secured.