Why Collateral Loans Are Utilized to Cover Emergency Expenses?

Negative credit rating can spell problems for those who live with very limited funding. There are times when certain individuals encounter emergency expenses that may arise because of unexpected medical procedures, car repairs, home maintenance, and natural disasters among others.
When these unexpected circumstances arise, those who have negative credit rating may find it difficult to avail loans from banks and conventional lenders. Because some circumstances are unavoidable, it makes it challenging for people to exercise loan options elsewhere, making their financial management procedures a tad difficult.
Collateral Loans
Collateral loans, with very minimal prerequisites and requirements, are tailored for the aid of debt-ridden people and others who have a poor credit rating in the market. One usually needs a high credit score to be able to avail of beneficial loan schemes and programs.
Those who are not familiar with the said loans are encouraged to read the succeeding paragraphs. The following piece of information will surely help you understand the ins and outs of collateral loans in the US better and give you a greater clarity on why and how you can use it.

#1 No credit score requirement

This is the main advantage of collateral loans. In general, the loans that are out on the market require good credit scores. Luckily, lenders of the said loans do not check credit scores. While most loan options and schemes require a standard or decent credit score from applicants, collateral loans have got nothing to do with your poor or high credit score. Therefore, even individuals with negative credit scores can apply and become approved.

#2 Quick cash

Another notable benefit of collateral loans is cash can be released in no time at all. This is not the case with other loans since many of them require countless hours in the application and the documentation stages. Releasing funding is easy in collateral loans because borrowers need to submit very few requirements. Collateral loans are easy to apply for and even easier to manage and track. This makes it easier for borrowers to cash in their funds without having to submit a large list of forms or fulfill never-needing legal requirements. Yes, everything is legal, yet easy for you to apply for such loans and even get the returns in the shortest span of time.

#3 Lifestyle change is unnecessary

Car pawn loan lenders also release instant cash but borrowers need to surrender their vehicle to the lending company. On the other hand, collateral loan lenders allow their borrowers to use their car even if the loan is not yet paid. You can choose your preferred lifestyle and continue to live it without having to give up on anything. There is no concept of either putting up your assets as a mortgage in case you are unable to repay the loan, or having to give up your car in the same case. There will be a stipulated time allotted to you, within which you will have to repay, although such periods are pretty flexible and for long-term use.

#4 Flexible repayment programs

In support of the point above, the repayment scheme of collateral loans is quite longer than conventional loans. For instance, some lending institutions give repayment periods of up to three years. When it comes to bank loans and pawn loans, the repayment schemes are very strict and the probability of losing one’s car is quite high. Compared to collateral loans, it is extremely easy for individuals to manage their finances due to minimal restrictions and elongated repayment periods. You actually have quite a lot of time to repay such loans. Also, collateral loans have a number of flexible repayment options that you can choose from, depending on what fits your financial situation and capabilities the best.

Conclusion:

As mentioned earlier, collateral loans are ideal for those who have a negative credit rating and need of instant cash. On the other hand, it should be remembered that borrowers should make sure that they will repay their loans because not doing so may cause serious financial problems.
Borrowers need to have a concrete repayment strategy and send payments religiously so as to avoid high-interest rates and additional fees. Showing maturity when it comes to repaying loans can help settle emergency expenses and improve credit ratings. Always make sure that you repay all your loans, irrespective of the repayment scheme you have availed and the repayment time-period allotted to you. With timely payments and strict adherence to guidelines, while applying for and repaying collateral or third-party loans, you can maintain the stability of your financial situation and eventually get into a better position to manage your personal finances in the long run.

6 Steps to Follow To Get Your Personal Loan

Are you looking for ways to cover a few expenses such as credit card debts, chase an adoption or move across borders without breaking your savings nest then a personal loan can be the best thing to look for. Although, getting a personal loan approved can be a hassle-free experience for some and a nerve-wracking for others.
personal loans

What is a Personal Loan?

A personal loan is a loan borrowed from a credit union, online lender or a bank that can be paid in fixed instalments over two to five years. In general, the personal loans are unsecured (which simply means loan can be obtained without a collateral unlike for a home or car loan). Also, the loan amount, rates and terms may vary depending on your credit score. Here are the 6 steps to getting your unsecured personal loan:

What’s your credit score?

A credit score is a very important number that shouldn’t be ignored,as it plays a vital role in the entire loan process. Having a strong credit score can get you all the best deals from an easy loan approval to lowest interest rates. The credit score is calculated based on a lot of factors such as credit history, number of credits, timely payments etc.
So, when was the last time you checked your credit score? Here is the free ways to check your credit score.

Do your homework on available loans

It is recommended that you do some homework on the loan options available and look what’s on store for you. You can pick from small local lenders to big financial institutions such as Discover,Citibank etc. You may go for credit union if you’re looking for a small loan amount with a lower interest rate. You can do a pre-check to understand more on the factors influencing your loan process.

How about getting pre-qualified for a loan?

Pre-qualifying for a loan can give you the insight and understanding of your current situation.
The info you need to provide for the pre-qualification process:

  • Salary
  • Date of Birth
  • Social security number
  • Debts
  • Employer details
  • Education
  • Address, phone number, email etc.

But there are chances that you may not pre-qualify for a loan and the reasons may be bad credit score, less salary, little or no work history, debts etc.

Do a comparative study on the various credit options available

Never be satisfied with just the one that crops up first especially when it comes to personal loan options available. Analyse the credit options that are available such as:

  • Are you eligible for a 0% credit card?

Having a good credit score can fetch you a credit card with 0% interest. It can be the best option if you can repay the loan amount on time.

  • Which one should you pick: secured loan or unsecured loan?

If your credit is bad, then secured loan may be a great choice to get better interest rates. All you need is a property as a collateral.

Read the terms and conditions properly

Before you say yes, you need to read every line of the terms and conditions mentioned. You can narrow down your gaze to the following:

  • Automatic Withdrawals: If the lender requires you to set up automatic withdrawals from your account then keep monitoring your account to avoid overdraft fee.
  • Exit fee: See if there’s any fee charged for early closure of loan.
  • Annual Percentage Rate: See if it clearly indicates the total loan amount, origination fees etc.
  • Flexible payment options: waiver on late payments
  • Direct payment to creditors:Can be beneficial for debt consolidation
  • Are the payments reported to credit bureaus? Can be an added advantage to your credit score if on-time payments are reported to credit bureaus.

The final approval processes

After doing your study on the personal loan options, you need to understand the documentation involved. If you’ve found the right lender to match your requirements, then the final loan approval process would require you to produce the following documents:

  • Identification document such as passport, driving license, social security or state ID.
  • Proof of Income such as payslips, bank statements, tax forms.
  • Address proof such as copy of lease, property documents, utility bills.

Once you’ve submitted the above-mentioned documents, the lender would do a credit analysis for credit score, history etc. The final approval would mean getting your funds within a week.

Summing up:

You can get approved for a personal loan easily by following the above-mentioned steps that involves doing a study on the available options to understanding your credit score. Apart from choosing the right sources to get the loan, it is equally important to understand the terms and conditions as well.

Effective Ways to Increase Your Chances of Securing A Small Business Loan

A small business loan is one of the easiest and convenient way to finance your business. May it be financing for expanding, procuring equipment or purchasing inventory. This can give you the means to achieve your business goal, at once.
Securing that loan may seem a daunting task to accomplish, but in reality, all it takes is the right knowledge and strategy. Making the adequate planning and preparation before taking action can make all the difference.
Small Business Loan

Where To Apply For Small Business Loan?

For smaller loan amounts, borrowing from money lenders can be a great option. It is easier and faster to secure than going through the bank.
Moneylenders in Singapore are licensed by the Registry of Moneylenders, on which they are required to abide by the Moneylenders Act and Rules. This ensures that the Registry regulates fees, lending amounts limit, and interest rates.
They are in some ways very similar to banks, in granting loans to select small businesses that have substantial financial needs. Legal or licensed money lender does not harass borrowers when their payments are late. They use the similar legal methods banks used with these issues, like sending notifications or reminders.
The only difference in borrowing from moneylenders instead of banks:

  • Loan Amount

Unlike in banks, moneylenders are providing their services for small business owners who are in need of a considerable small amount to finance their business.

  • Faster Processing

They take less time to process. Loan applications are at times prepared and approved within the same day if you have complete proper documents on hand. This is due entirely because they conduct fewer background checks and complications.

  • Easier Approval

Even with a poor credit rating, moneylenders can still grant you with a loan, only with lesser amount compared to other circumstances. They can give a chance to anyone, as long as you prove that you are capable of repaying the amount.

  • Rates

Money lenders mostly offer higher prices compared to banks. This is the only drawback it seems. But depending on your needs, the small business loan from moneylender can still be an excellent option for you. 

Planning and Preparation

Sufficient planning and preparation can give you the much-needed boost on your chances of securing a small business loan. Staying ahead of your business is as essential as staying ahead of your finances.
Anticipate some delays in the processing of your small business loan. If you have an urgent need of the fund, you are not in good condition to make an intelligent decision. There is no good in rushing into a commitment that you are not ready for.

  1. Take Stock Of Your Business

Look into your business plan. What does your business might need regarding resources and finances in the future? You need to establish your goals and strategies on how are you going to utilize the new fund for your business.
Examine the state of your business. Create a strategy based on financial projections that are well thought-out and logical. Work to demonstrate your credibility to your lender. Show them how sincere you are with your application.
Analyze your cash flow and determine how many loans do you need and how are you going to pay for it. List all the issues and problems with your business.
Include preparations for emergency or worst-case scenarios with your budget. Establish a backup plan on how you are going to sustain your payments when your primary source is diminishing.

  1. Update Your Finances

Prepare to present your balance sheets and income statements for the last couple of months, up to the year. This will show that you have enough resource and capability to pay for new loans in addition to existing ones if you have any.
Make sure that the payments on your existing loans and other expenses are up-to-date. It will help a lot if you have a good credit score. Most of the time, both business and personal credit records are scrutinized.
Money lenders need to ascertain if you are trustworthy and reliable. You need to be in your best shape to secure a new loan for your small business. It is true that you are in need of cash assistance, but you also need to be highly-capable of paying it back.

  1. Prepare All Documents And Requirements

Planning and completing all, if not some of the requirements can help ease and speed up your loan application process.
Some of these documents listed might come in handy for your loan application:

  1. ACRA Business Profile
  2. Profit and Loss Statement
  3. Business Bank Statements
  4. ACRA Income Tax Reporting Summary
  5. Proof of Income Funds
  6. Tenancy Agreement for Place of Business
  7. Title Deeds or other Proof of Assets

Taking Action

Now that you are fully prepared, it is time to start your loan application. There are ways you can increase your chances of securing your small business loan during the application process.
You should learn how to make the calculated moves you can make to tip the scales in your favor.

  1. Start Your Application In Advance

Take the proactive path and start your application ahead of time and not right when you need it. This will give you enough time to make sure that you find the best deal.
The loan application can take some time, depending on your preparation. You need to prepare your requirements and use before the need for the fund arises. You also need to spend more time in shopping for offers that will suit your needs.
Having a deadline hanging over your head will only push you in the wrong direction. Your impulsiveness can just do more harm than good for your business.

  1. Choose A Moneylender

The most important thing is you conduct your business with a licensed money lender. This will ensure that all your transactions are legal and that the law will protect your rights.
You can always check online if they have a license and also read some of the reviews from their customers. It is your responsibility to get to know them as well as they did for you. Trust goes both ways, especially when conducting business.

  1. Get Acquainted

Setup an appointment with your potential creditor. Facilitate a tour of your business to show how well you’re doing. This is also the chance to demonstrate how you can be transparent with your procedures.
Cover all the bases, both good and bad. Tell them about your business issues and problems and how you plan to take care of them. They might appreciate your honesty more than you realize.

  1. Prepare A Backup Plan

You need to have a backup plan. When all else fails, you have to be prepared to have a backup source to pay for your loan. This will help show money lenders how confident you are in repaying them.
This way you can guarantee them that you have the capacity and intent to meet your payments, no matter what happens. This would be a better time to have some savings put away, just in case.

conclusion

In conclusion, devoting enough time to plan and prepare before proceeding to your loan application can significantly increase your chances of securing a small business loan.
If in case you get denied with your application, many other licensed moneylenders in Singapore can help you. Just stick with your plan and give it enough time.

Financial Toolkit- Student Loan Repayment Worksheet

We all know that a financial goal is an intention we plan to save or plan our expenditure. The only way it differs from any other goal is that it is expressed completely based upon money. It varies from person to person for instances retirement planning, debt reduction, credit improvement etc.
Writing your financial goals is essential. Written goals bring transparency to your financial situation and make you focus. By reviewing your goals throughout the year, you will be definitely able to secure your future. A goal in written is a powerful reminder that you can track to achieve greater success in your financial life.
It is always advised you should take the least amount of debt possible so that you can start repaying for the student loan as soon as you get your graduation. Higher debt amount may impact on your credit score.  So is it worth paying it off early? Again your money grows with investments. It will be wise not put all your money towards debt payments. Like many experts, I recommend debt payments should be under 10% of your total monthly income.
student loan repayment plans

Student Loan Repayment Options

# Revised Pay As You Earn (REPAYE)

The REPAYE student loan repayment plan is an up gradation of the formerly called Pay As You Earn (PAYE) plan. The Revised Pay As You Earn plan eliminates certain restrictions with loan repayment in the PAYE plan and includes a number of additional benefits for students to pay off their loans while earning consistent income.
The REPAYE plan cops your monthly payments at 10% of your discretionary income and offers loan forgiveness after 20 years of making qualified payments (for undergraduate loans). The same plan provides forgiveness after 25 years for graduate loans.
Qualifying student loan types under this plan:

  • Federal Direct Loans
  • Stafford
  • Graduate Plus Loan

# Pay As You Earn (PAYE)

The Pay As You Earn (PAYE) plan was passed by President Obama to try and improve the existing restrictions and guidelines of the Income-Based Repayment (IBR) option.
The PAYE plan caps your monthly payments at 10% of your discretionary income and reduces the loan forgiveness term from 25 years (IBR) to 20 years in the PAYE.

# Income-Based Repayment

The Income-Based Repayment is a much older plan and offers lesser benefits as compared to the REPAYE and PAYE plans. Being one of the most popular student loan repayment options available, the IBR plan provides some of the strongest benefits to the borrower.
The IBR plan provides loan forgiveness on the first three years of any unpaid interest from the Income-Based Repayment enrollment time for the subsidized portion of your loan.
Students can take advantage of the IBR option, if and when:

  • You are facing a financial hardship.
  • You qualify for a zero loan payment or payment of less than the monthly interest payment on the loan.
  • You do not see a large shift in your income in the near future.
  • If you can see yourself making zero qualified payments always.

# Standard Repayment

In the standard repayment loan option, the loan payment is calculated just like any other normal loan. The term of the loan is based on the size of the loan and the calculation of the payment is based on both the term and size of the loan taken. The standard repayment option can be used when:

  • If you have less than 30 years left on the term.
  • You wish to pay off your student loan debts as soon as possible.
  • Your loan amount is small, in which case you can continue paying a minimal amount over a shorter period of time than elongating the time period for your payments.

# Graduated Repayment Plan

Very similar to the standard repayment plan, the Graduated Repayment plan works with a small difference. Students under the graduated repayment loan need to pay interest only on the loan, due to which you will have to pay smaller amounts as compared to the standard repayment loan option. For the first three years, you can pay interest only on the loan, after which the payment increases depending on the size and term of your loan. A graduated repayment plan can come to use when:

  • Your income is high enough for you to make the payments.
  • If you don’t qualify for the IBR repayment plan.
  • You want to start with paying minimal amounts initially and increase payments once your income increases in the future.

The biggest drawback of this student loan repayment option is that the total amount that you will have to pay at the end of it all will be much higher than that of a student repayment plan.

# Income Contingent Repayment

The Income Contingent Repayment takes into consideration a number of income-based factors to determine your payment during a student loan repayment. The Income Contingent repayment plan is calculated in two ways – Adjusted Gross Income (AGI that excludes your loan size) and AGI (that includes your loan size and value). You can opt for an Income Contingent repayment plan when:

  • You need financial relief
  • You wish to be legible for student loan forgiveness.
  • You do not see a higher income for yourself in the future.

Conclusion:

By selecting any of the above key student loan repayment plans, you can easily secure your education and have a successful financial situation. Don’t be pressed for money when it comes to your graduation or post-graduation. In cases of excessive confusion, you can contact student debt relief organizations to understand the best loan repayment option for you.

Online Auto Loan: Best Finance Deal Is Waiting for You!

Are you planning to purchase brand new car or used car? There are numerous reasons to avail a brand new car or used car, it all depends upon needs. In this latest trend, you should have at least one vehicle that helps you to travel from one place to another place.

Every year car manufacturer launches a new model to attract more consumers and to buy their brand. Don’t get tempted by such brand new models because to buy such new arrivals, you should have enough finance.

Thanks to internet and advance technology which helps you to avail new car loans. It has changed the way of buying vehicle. Usually, you are moving to your nearest car dealer to acquire new or used vehicle but internet has changed the way of car shopping. There are numerous online sites are available where you find the latest as well as used vehicle, you just need to search for the same and within just few clicks one can avail numerous vehicles with different offers.

Online Auto Loan

By internet purchasing you are able to discover the attention rate that works out the best for you and then once you have chosen the right one as per your budget you are able to get quotations and make evaluations to discover the best deal. By selecting to take your loan from online finance dealer you could be sure that you will avail the most affordable rates for new car.

Online Research to avail great deal on finance:

There are numerous loan companies who provide online financial loans, by taking your loan this way you can make the auto loan procedure faster and simpler. One of the first actions you should take is to do a look for using one of the well-known major search engines like Google as well as other like yahoo & Bing, within few click numerous results will appear, the best way to compare the prices of the loan you require then implementing for the loan is as easy as following a few simple steps.

Ready with your necessary documents:

Before applying for online auto loan, you should have all the information
ready that are mandatory for the loan procedure.  This is the very first step and it is in this step you will get pre-approved for the loan. Once you have applied for the loan, how lengthy you will have to delay is determined by the online lender that you have chosen, in a lot of options your application will be addressed as easily as possible.

If your all the information is as per lender’s requirement, your chances of getting car loan become more faster and lender will contact you soon for the further requirement. This is the most convenient way to get finance when it comes to purchasing a car; however loan eligibility requirement get change from lender to lender. Online car loan application process is simpler than applying offline lenders. It hardly takes few minutes; you just need to be ready with correct information that increases your chances of getting an auto loan.

Manage Your Loans with Personal Financial Management

There are sometimes certain situations in life when you have no other option then to opt for a loan. For example, a sudden hospitalization of a family member or college admission fee of your daughter. But taking a loan is not the problem since there are a number of institutions and organizations that would happily lend you money for any purpose. The problem is repaying the loan in time that creates an issue. If you are able to manage your personal finances well and repay the loan on time, then again there would be no problem at all. But if you cannot manage your personal finances to repay your loan on time, you would have to face the consequences. The very first consequence would be facing the debt collection agencies and then dealing with your credit rating report.

Personal Financial Management

To avoid falling into this trap of loan, the first thing that you can do is save. Every month make it a point to save, even if it is a meager amount. Save on petrol consumption, save on bills, save on grocery shopping and so on. And this bit by bit saving on small things would ensure that you have quite an amount of saving at the end of the month. Thus saving like this would help you in two ways, firstly you might not have to take a loan ever if you can combat a financial crisis with your own saved money and secondly, even if you have to take a loan, you can repay it within the time limit with the help of this saved money. Hence you see saving is a part of good personal financial planning that would not only prove to be a cushion when you are faced with a financial crunch but is also kind of a security against any odd situations.

But even after giving up all your savings, you cannot repay a loan do not worry as there are other ways too. The first thing you should do once you feel you will not be able to repay a loan is to be honest with your lender and discuss about your situation openly. If time is all you need to repay your loan then ask for it. But if you think you will not be able to repay your loan even if you are given extra time then you can go for loan consolidation, if you have more than one loan to repay. By going for loan consolidation you would probably end up paying more money in the long run since the interest would be more but presently the amount of money you need to repay would decrease considerably. Hence plan your loans like you plan your personal finances.

A Short-term Solution for Your Priority Needs

Dealing with your priorities might become a bit critical for you, if you don’t have any plan-b for it as might occur without giving you a prior information. The best way to get out of this critical situation is picking the payday loans. Financial struggles can easily be subsided with this loan.
On the other hand, taking some other loan except the payday loan might not be an easy task. For an example- if you have applied for a loan, the assurance of getting it quickly is very low. Standing in long queues for hours to get the approval can never be an ideal option for a emergency situation. But, when it comes to the payday loans, there is no need for you to get worried about anything as the whole process is quite convenient.
Short-term Solution for Your Priority Needs

What is a Payday Loan?

A Payday Loan is a short term loan, which has been designed to offer a small amount of money, according to the borrower’s need. The loan amount usually stays between $100 to $2,000. Although the required time for repaying the Payday Loans might vary from a month to a year. Despite becoming an expensive way to borrow, this is the best solution for your priority needs.
There is something important about payday loans, which you must know. Check out these following details of the payday loans.

  • The amount of these loans is quite small.
  • The loan must be repaid by you on the day, when you receive your salary.
  • You must provide the lender a post dated cheque, if you are willing to avail the facility.

The Working Procedure of Payday Loans:

The entire process of availing a payday loan is quite hassle free and this is also an easy way for fulfilling your short-term requirements. Unlike the old school process of applying for a loan, you don’t need to fill any form or submit any document. This loan can actually be the ideal option for the people having limited source or not at all eligible for any other popular loans of the market, other than the payday loans.
Here the borrower needs to write a personal check to the lender mentioning the amount he needs along with the fee, which they will pay for the purpose of borrowing. But, the most attractive thing about this loan is that, there is no need for the borrowers faxing their documents to the lender.

Requirements of Getting a Payday Loan:

Anyone can apply for this loan. The primary eligibility for getting this loan is having an open bank account, which is in a good condition. You should also have a steady source of income and some true documents of your identification should also be there in your possession. Generally, the lenders never ask any question to the borrowers about his or her capability of repaying the loan timely.

What payday loans can cost you?

The process of repaying a Payday Loan has changed a lot over the time. In the past, most of the lenders were more prone to charge a limited amount of interest, if the repayment is done within the scheduled time. But, if you are a late re-payer then the amount of interest might hike to a certain extent.
But, the introduction of new rules, regarding the payday loans has changed the whole scenario. In order to save the innocent borrowers from the trap of the lenders, all these rules came into existence.

Applicable Loan Terms for the Payday Loans:

Payday loans are a bit different from the regular loans in their process of working. But, the minimum time a lender can offer you for the repayment never crosses the limit of 16 days. Generally, the terms offered by a lender have a direct connection with your pay structure, for an example- if you are drawing your salary after every fortnight, you have to clear your debts after 15 days. Don’t forget to sign a contract with your lender before you agree with all the terms and conditions.

Opt for Following a Budget Plan:

Availing a payday loan is definitely the best ever solution for your priority needs, but try to seek some other option too. There is a chance of facing some critical financial issues in your life, if you are not following a monthly budget properly. Leading a well planned life should be the main thing, where you need to focus. Think about having a monthly budget for avoiding the reasons of applying for a loan. Just follow these simple tips for creating a well planned and effective budget.

  • Build a clear conception about all your income sources.
  • Create a list of your monthly expenditure and try to stick on that list.
  • Try to cut down the costs, which are not essential.
  • Review your budgets frequently and make all the required changes.

Note: Think twice before applying for a payday loan. As it can act as a savior, when you are in trouble, but you need to be sure about your income sources to before going for this loan. Don’t forget to judge the reputability of a particular lender with the help of his website.

Is It Too Hard To Get An Auto Loan – Oh No, It Isn’t

How many of us have dreamt to own that car someday? Those dream of driving and sharing that happiness and pride with your loved ones has been craved by many. But not every dream comes true. Man is always left dreaming due to the lack of funds. This is where the auto loan kicks in.

Most of us believe that it is impossible to get your auto loan approval passed by creditors today because they have become more judgmental in their choices. But what we don’t understand is the fact that, we don’t seem like the best prospect to the creditors if we are irresponsible in our finance choices. Contrary to the belief, it isn’t too hard to get an auto loan; all you need is some real smart moves and a lot of planning.

auto loan

Stop spending unnecessary money

Spending unnecessary money is a big tip-off when it comes to making a good impression. When you spend money on the things that have clearly no importance for you, is the time when creditors look at it as irresponsible behavior. Stop spending where you don’t need to spend. Make it a habit.

Keep a track on your spending

Keep a close tab on your spending habits. See where you are going wrong and then make sure to correct it. If you are smart in your expenses, then you will have a lot of savings too. Creditors will love this quality of yours. A person who is good on savings will be good enough to pay off any loan.  So, always spend according to a budget and save as much as possible without compromising your lifestyle. Your monthly income should always be more than your expenses.

Paying off your debt

When you are in a comfortable position and incur expenses well within your budget, it is time to consider paying off your debt. Keeping some money aside for emergencies is always warranted but make sure you at least try to pay off some of your debt. It doesn’t matter if the payments are slow, as long as you do it, it shows your commitment.

Being practical is crucial

It is not always possible to buy that dream car without any outside help. Creditors know that you need the money but they must believe in you that you will pay off their loan. You have to look for such reliable creditors who will believe in your ability. And you have to build that ability by following the above mentioned tips. Be practical in your choices. The creditor should be wiling to give you a loan. You have to earn the trust of the creditors. Fulfilling your dream doesn’t come cheap these days.

Most of us don’t understand the importance of the above points and therefore commit mistakes and get rejected by most creditors. If you want to realize that dream of yours then make sure to be practical and follow these steps because in the grand scheme of things, it will surely profit you.

Getting Quick Cash for Home Improvement

Home improvements are notoriously costly, especially when you don’t know the tips and tricks for saving money. But even if you try to do as many DIY projects as possible, find discounts wherever they are offered, and even get good prices on most of the equipment, materials, and services you need, all these things still come at a cost. The home is one of the biggest assets you own, and for that reason, you have to expect to pay a great deal for its upkeep.
Cash for Home Improvement

Payday Advances

Nevertheless, there’s no question that the costs are hard for the average person to afford, and therefore most people have to seek alternative methods for getting the money they need. Payday advances are one of the most popular options among homeowners for financing home improvements, for three reasons:

  • Payday advances are accessible online
  • They offer as much as $1500 in hassle-free money
  • They’re short-term loans, meaning a short-term commitment with an easy repayment plan

If you’re looking for the best ways to finance home improvements, you can do so  through payday advances. There are other loan options out there, but none are as easy to work with and receive as a good payday advance online.
To find these loans, you can simply visit a lender’s website and select one of their options. Payday advances are just one of the many options out there, but they are some of the best. All you have to do is fill out an application and submit it—making sure that the forms are filled out accurately and completely—and then wait for the lender’s response.
You should receive notification of the status of your loan within just a short while of final submission, and if all goes well the money will be sent to your bank account within 24 hours. As long as you met all the requirements to receive the loan, you should have no doubt that you’ll receive approval. An
How do you qualify for a payday advance to finance home improvements?

  • Be employed
  • Have a paycheck coming in within the next two weeks
  • Be at least 18 years old
  • Be a resident of the country where you are applying for the loan

If all these requirements are met, you can expect the money to be in your account within 24 hours. That’s the guarantee a good payday advance lender will offer you.

FHA 203(K) Loan

The FHA 203(K) loan is a special loan from the Federal Housing Administration. Because it’s a federal loan, you need to put down as little as 3.5% as interest. This is a home renovation loan that homeowners can use to redo the kitchen, add a room to the house, finish a basement or attic, change the flooring, and redo the bathroom and more. Another good thing about this home renovation loan is that you can even use the money to repair damages and rebuild a tear-down, provided the original foundation of the house is still intact. However, homeowners cannot use money from this loan for luxury amenities, such as building a pool or adding a fire pit.
How to qualify for FHA 203(k) loan?

  • Homeowners have to provide a bid from an approved contractor.
  • All upgrades and finishing that are required must be clearly stated in the bid, along with the loan paperwork.
  • An appraiser will then review the home as well as the submitted bid.
  • The estimated value of the home post-renovation is appraised, which is then compared with local comps or comparables. If a mismatch is found, the homeowner will have to reduce the bid and scale back the proposed renovations.

After loan approval, the money is then put to use in renovation tasks of the house.
Post-renovation, an inspector will visit the house, usually 6 months after completion. The renovated house is inspected to make sure that all work has been done correctly, after which the money is released to the contractor.

Section 504 Home Repair Program

The Section 504 home repair program is an initiative by the government to help qualified homeowners refurbish their houses, with a difference. Such loans are mostly advanced not to bring about an aesthetic beauty to your home but to make your household safer. You can use this government home renovation loan for:

  • Replacing dangerous electrical components in your home
  • To make the house more energy-efficient, such as repairing the furnace, air ducts, etc.
  • To make the house accessible to the elderly and safer for the disabled, such as adding ramps and bars.

How to qualify for this kind of home renovation loan?

  • You must really be in need of credit or be in a situation where you are unable to obtain a loan elsewhere.
  • Your household income must be below 50% of the area’s median.

For people over the age of 62 years, homeowners can use this loan to add great accessibility features to make their house safer.

Conclusion:

The above are considered some of the best ways to finance home improvements. Getting quick cash to improve the quality and safety of your life in your home isn’t that difficult. You will find lenders who offer great home renovation loans; else you can always opt for government-initiated loans and home improvement programs for some quick cash.

Things You Should Consider Before Applying for a Car Loan

Thinking about buying a car but you don’t have the funds? Or are you simply looking to exchange your old banger for a slightly shinier one? With the many cars for sale online, it has become easy to get yourself some new wheels and almost as easy to make rookie car loan mistakes!

Applying for a Car Loan

Here are a few things you should consider before fill out an Auto Loan Application.

Credit history and eligibility of the loan applicant 

Banks generally look into an applicant’s previous credit history and fulfillment of the eligibility criteria before sanctioning the loan. 

Banks sanction or reject loan application on the basis of monthly income or salary  for salaried professionals, and annual income for business people.

With the number of bank loan defaulters increasing every day, banks nowadays have become very strict when it comes to sanctioning home or car loans. Banks investigate the CIBIL (Credit Information Bureau India Limited) report of the individuals to determine what credit track records the applicants have. While some banks have a universal loan processing charge for all individuals , others ask for it on the basis of the sum of debt and a fixed percent is used to compute the charge.

What’s The Real Price?

You may have found the perfect car with the perfect price tag but remember that this is not all you’ll be paying! Don’t forget to add up all the interest as well as service charges and VAT ( value added tax) and then you’ll get a better idea of the real price of your lovely car.

There are also loan processing fees charged by banks that can have an effect on the final cost of the car that you are looking to purchase. The computation of loan processing fee differs from one bank to another.

Calculate Your Budget

Your loan payments will give you the amount you’re going to need to fork out every 30 days for your car, but can you really afford to pay that each and every month of the year? Plan for holidays, celebrations you’ll be buying gifts for, and the cash you need for a rainy day and make sure you’re not dipping into those funds.

Consider the interest rates

The rate of interest for car loans in banks is something you need to find out because it will have a big impact in the final cost of the car. Check out the interest rates of different banks and ten make your decision cautiously.

Car loan usually has 10-10.5 per cent of interest per annum according to the   present macroeconomic scenario. Many banks provide fixed rate of interest throughout the loan term. For car loans, the floating rate of interest is the best because when the rate of interest decreases you can always reap its benefits.

EMI and loan tenure 

This is the most important thing to consider before applying for a car loan. The down payment varies from one bank to another and that will determine hoe much amount of money as car loan you will need. Your EMI is also influenced by factors such as loan value and loan term. Make sure your loan amount is small and the loan term is short because in that case, the rate of interest will be low.

A Little DIY

If the prospect of talking to a loan company or rolling up to your local car dealership seems daunting, don’t forget just how much of this you can do yourself online, if only to get an idea of what cars are on the market and which loan options are popular. There are many online loan calculators that can help you get an idea of what you’re facing, not to mention the great amount of used car classifieds available online.

Shop Around!

There are hundreds of companies out there ready to give you some money, but at what price? Research auto loan companies and remember that even a difference of 0.5% can make all the difference when you’re paying off that loan. Same goes for your car, there are plenty of second hand cars online and you can browse without the pressure of the car salesman’s magic words.

Insurance can be the key

Many lenders will often advise that you require insurance to acquire the best car loans. In case if anything happens to the lender during the loan tenure having an insurance might not be essential, but it might be beneficial to have the information of any insurance coverage you have accessible.

Whether you’re looking to find a used Ford Focus car online for sale or browsing auto loan companies, take your time, do your calculations and ask around! The beauty of starting this process from the comfort of your computer screen is that you can send a line or two to a friend for advice, and of course not feel pressured into signing anything before you’re figured out the best solution for you!