When a lender receives a secured loan application form he only has two areas on which to base his decision - you and the property. If he can put a tick in both of these boxes then you will get your loan at a good rate.
However, it is possible to still get your loan if either you or the property are not A1.
This is one of the good things about secured loans, they allow you to obtain a loan when other sources of finance may not be available.
Secured loans - You
Unfortunately, most things in this day and age are broken down and put into boxes and that includes you when you apply for a secured loan.
Your boxes will be:
o Your employment/ self employment
o How many outstanding loans you have
o Your usable (free) monthly income
o Your credit rating
o How you have treated your current (and previous if less than 12/ 24 mths) mortgage company
Secured loans - how to improve "you" in the eyes of the secured loan lender
Most applications for secured loans are made through a broker as most lenders do not like to gather all the information needed to process a secured loan. There is also a lot of overhead in this process which they prefer the broker to pay for.
Secured loans - rule 1
Make sure you find yourself a good secured loan broker. The secured loan lenders are not going to like me saying this but all brokers are not equal in the eyes of the lender. The better ones earn more money per application and get more secured loans paid out, as a percentage, than others.
These both directly effect you as the more the lender pays the broker the less of a fee he will need to charge you and the other reason is that you are more likely to get you loan paid out (and at possibly a lower rate) by using a well established secured loan broker.
Secured loans - rule 2
Work with you broker - not against him. I know it is a pain to keep having to produce paperwork but the more you have, the less pain you will receive when your full loan application reaches the secured loan lender.
Secured loans - rule 3
Go through your available income with your broker and get him to explain how the lender, he is putting you with, is working out your available income calculation. You might find you get a better rate if you do a bit of debt consolidation.
If you are self employed but have regular contractual work that you can prove goes back a few years, then you may be able to argue for a better rate. Self employed applicants for secured loans are usually penalised with the rate as they are considered a high risk.
Secured loans - rule 4
Your credit rating is nowhere near as important for secured loans as it is for personal loans (unsecured). However, it is still important if you want a good rate. Lenders of Secured loans (like most lenders) don't like to see arrears on a credit report. A credit report will show the lender how you have paid your credit cards and loans over the last 12 months. It will also show any defaults or county court judgements.
Most secured loan lenders will ignore one months arrears on most loans as this can be argued that it is just a late payment. When you start to get to two months or more then you need a good (preferably provable) explanation or your rate will start to go north.
One thing secured loan lenders hate is current arrears when you apply to them for a secured loan. So, if you can, make sure your current commitments are up to date when you apply and this will keep your rate down.
Secured loans - rule 5
How you have paid your mortgage is sometimes more important than your credit report as the secured loans lenders see themselves as an extension of your mortgage and the best way they can see if you are going to pay them is to see how you have paid your current mortgage.
So, if you can, make sure your mortgage is up to date when you apply and if you have had any arrears then you will need a good explanation to keep your rate down.
To speed up you application you could get proof of your last 12 months payments from you mortgage lender and proof of the outstanding balance.
Secured loans - your property
Your property is the security that the secured loan lender has. If all goes wrong and you stop paying and communicating with the secured loan lender then eventually he will reposes your property (although he will not want to as it is creates another set of problems for them).
So, putting the above cautionary note aside, you are putting up your property as security for the loan. You are only doing this because it benefits you and you probably fall into one of the following categories:
o A lower rate than other unsecured loans offer
o A larger loan than is available through other financial sources
o You want a loan but your employment is questionable or you are self employed
o You have missed a few payments on some credit and the loan rates you are being offered from other sources are unpalatable
o Your credit is poor and you need to put up security to get a loan
It only makes sense that if you are putting your property up as security for your secured loan then you may as well maximize its value and get a lower rate.
The secured loan LTV (loan to value) is one of the major calculations that will effect the rate you are offered. It is simple to work out: you take your current outstanding mortgage, add to that the secured loan you are applying for and divide it by the current value of your property. The lower the percentage the better rate you should get.
So, if you want a lower rate then maximizing the properties value is one of the best ways to go about it. It might take a little bit of time but you could be paying for the secured loan for anything from 5 years to 25 years so the extra bit of effort could save you a lot of money in the long term.
Secured loans - property rule 1
You will almost certainly have a valuer come round to have a look at your property towards the end of your secured loan application.
Valuing property is not a science but an opinion and in this case the the persons whose opinion counts is the valuers that you have coming round. You don't know if he has spent most of the day sitting in a traffic jam, had an argument with his children or forgotten his anniversary and what is more you can't do a thing about it.
What you can do is be friendly and offer him a cup of coffee and make sure you have allocated time for him. Go round the property and point out any improvements you have made and are going to make.
Valuers like to be told that the property is going to be improved as it lessens their risk of getting sued by the secured loan lender in case they value the property wrongly.
Secured loans - property rule 2
Before the valuer gets to your property make sure it is looking its best. A small bit of effort will add thousands to your valuation if the property looks well kept rather than run down.
First impressions count so make sure the front and entrance hall is spotless, try and put any junk away to make the rooms look bigger and also try to finish those jobs that were half started and never quite completed.
Secured loans - property rule 3
As previously stated, the property value is an opinion so you need to make sure that the valuers opinion is the correct one. All valuers will contact local estate agents to see what is selling in the market near your property.
It would be to your benefit if you contacted the estate agents and got comparable properties that are on the market and recent sales. You can then decide which of your collection you wish to give the valuer (or you can send them on to your broker but this is not quite as good as giving them to the valuer).
Human nature being what it is, your comparables will probably end up in the valuers file and he will take these into account when valuing your property.
For advice on the best way to apply for all types of loans including secured loans, home loans, personal loans, payday loans, pawn broker loans, credit cards and mortgages please visit http://www.loan.co.uk
http://Loan.co.uk can also arrange any type of loan at the best rates available.
By: Marc Bertola
Thursday, August 30, 2018
Friday, August 10, 2018
Low Interest Auto Loans
Car buyers know the benefit of a loan. A loan can help you get a vehicle you want at a monthly payment that fits their budget. What you may not know is that in the case of an auto loan, you can avoid travel and apply for the car loan from your computer! The availability of online auto loans comes from the emergence of online financial institutions. Banks and several other businesses have become comfortable operating online, with some banks even performing loan interviews over the internet. In the case of online auto loans, banks and other financial aids can operate via online lenders to help people receive their loans through online transactions.
One of the benefits of applying for a car loan online is that the car loan application takes no time at all to finish. Whereas you would have to commute to the bank and then the dealership to fill out the paperwork involved with applying for a loan, you will not have to leave the house to fill out an online auto loan application! The streamlined service involved in applying for an online auto loan comes from the plethora of online loan lenders that will work with you quickly and efficiently to find the best loan that you need.
A simple search will reveal thousands of sites and lending services ready to help you on the spot and the applications are stress free. As with all loans, whether they are for a car or house, when applying for a loan online, research it! The online loan rates can differ wildly depending on what bank, company, or business the online lender works with. In order to find the best APR on a loan, I would recommend searching various lender web pages, such as Up2drive.com or Myautoloan.com. These sites have APR estimates on the main web page and can give you a rough idea of what you are looking at paying for your monthly bill.
As with all loans, the APR is extremely important to take into account when looking at repaying your loan. The APR, or annual percentage rate, is the interest returned on your borrowed loan from the bank or financial service. These institutions can help settle your financial matters through a fixed APR, meaning an interest rate that cannot change, regardless of the bank's situation. A non-fixed APR means that the interest rate on the loan from the bank or in some cases, the dealership itself, would fluctuate at the end of a year. At the beginning of the New Year, the bank can either decrease or increase your APR, and although they are rare, a decreased APR could be obtained under the precedent that your financial institution is working with you to help you repay your loan.
This could stem from a financial hardship or simply not having enough money at the time to repay your loan. To counteract bad credit, a bad credit auto loan can be applied for. These loaning situations are for those that have a credit score of 600 or lower. When applying for loans, if your score is below 600, it's very likely that a loan corporation or business will simply pass you over. However, applying further for loans will actually hurt your credit score more, so to counter this you could visit Myautoloan.com. This site helps you connect with high risk lenders and nearby car dealers that can help you finance your new car.
An online auto loan holds many benefits to the average consumer. In one example, an online auto loan will typically beat out a dealer's overall APR. As well as being cheaper overall, an online auto loan application does not incur fees, such as one may be subject to at a dealer's. Many car dealers tack on application fees to squeeze that extra bit of cash out of the customer beforehand. In another example of why an online auto loan is more beneficial than an in-person one, you may find that the online application is considerably easier to fill out, since you do have the internet at your fingertips. Besides having the information needed to properly fill out an app online, you will also be able to work at your own pace to fill the application out. Lastly, the best part about an online auto loan would be that with most online auto loans, there is no down payment involved. Unlike at a dealership's, an online auto loan steps around any down payments by working directly with the lender, as opposed to working through the dealer to find financing.
The availability of online auto loans comes from the emergence of online banking and financial institutions. Banks and several other businesses have become comfortable operating online, with some banks even performing loan interviews over the internet. In the case of online auto loans, banks and other financial aids can operate via online lenders to help people receive their loans through online transactions.
One of the benefits of applying for a car loan online is that the car loan application takes no time at all to finish. Whereas you would have to commute to the bank and then the dealership to fill out the paperwork involved with applying for a loan, you will not have to leave the house to fill out an online auto loan application!
The streamlined service involved in applying for an online auto loan comes from the plethora of online loan lenders that will work with you quickly and efficiently to find the best loan that you need. A simple search will reveal thousands of sites and lending services ready to help you on the spot and the applications are stress free.
As with all loans, whether they are for a car or house, when applying for a loan online, research it! The online loan rates can differ wildly depending on what bank, company, or business the online lender works with. In order to find the best APR on a loan, I would recommend searching various lender web pages, such as Up2drive.com or Myautoloan.com. These sites have APR estimates on the main web page and can give you a rough idea of what you are looking at paying for your monthly bill.
As with all loans, the APR is extremely important to take into account when looking at repaying your loan. The APR, or annual percentage rate, is the interest returned on your borrowed loan from the bank or financial service. These institutions can help settle your financial matters through a fixed APR, meaning an interest rate that cannot change, regardless of the bank's situation.
A non-fixed APR means that the interest rate on the loan from the bank or in some cases, the dealership itself, would fluctuate at the end of a year. At the beginning of each year, the bank can either decrease or increase your APR, and although they are rare, a decreased APR could be requested and obtained under the premise that your financial institution is working with you to repay your loan. This could stem from a financial hardship or simply not having enough money at the time to repay your loan.
For car buyers with bad or no credit there are special bad credit auto loans available. These loans are for those that have a credit score of 600 or lower. When applying for loans, if your score is below 600, it's very likely that a loan corporation or business will simply pass you over. However, applying further for loans will actually hurt your credit score more, so to counter this you could visit Myautoloan.com. This site helps you connect with high risk lenders and nearby car dealers that can help you finance your new car.
An online auto loan holds many benefits for the average car buyer. In one example, an online auto loan will typically beat out a dealer's overall APR. As well as being cheaper overall, an online auto loan application does not incur fees, such as one may be subject to at a dealer's. Many car dealers tack on application fees to squeeze that extra bit of cash out of the customer beforehand.
Another example of why an online auto loan is superior to a traditional in-person one, you will find that the online application is considerably easier to fill out. Besides having the information needed to properly fill out an app online, you will also be able to work at your own pace to fill the application out.
Lastly, the best part about an online auto loan would be that with most online auto loans, there is no down payment involved. Unlike financing at a car dealership, an online auto loan steps around any down payments by working directly with the lender, it also lowers your cost and rate and removes dealer mark ups.
Author and publisher since 1999. Articles, stories and commentary have appeared in national magazines and are published on the internet. Mr. Fabiano has also been a featured speaker at online publishing and affiliate marketing conferences in the US, Canada and Europe. I author the following consumer finance related sites and communities: Payday Loans [http://www.payday-loans-professor.com]
Credit Cards [http://www.creditcardsprofessor.com]
By: Louis Fabiano
One of the benefits of applying for a car loan online is that the car loan application takes no time at all to finish. Whereas you would have to commute to the bank and then the dealership to fill out the paperwork involved with applying for a loan, you will not have to leave the house to fill out an online auto loan application! The streamlined service involved in applying for an online auto loan comes from the plethora of online loan lenders that will work with you quickly and efficiently to find the best loan that you need.
A simple search will reveal thousands of sites and lending services ready to help you on the spot and the applications are stress free. As with all loans, whether they are for a car or house, when applying for a loan online, research it! The online loan rates can differ wildly depending on what bank, company, or business the online lender works with. In order to find the best APR on a loan, I would recommend searching various lender web pages, such as Up2drive.com or Myautoloan.com. These sites have APR estimates on the main web page and can give you a rough idea of what you are looking at paying for your monthly bill.
As with all loans, the APR is extremely important to take into account when looking at repaying your loan. The APR, or annual percentage rate, is the interest returned on your borrowed loan from the bank or financial service. These institutions can help settle your financial matters through a fixed APR, meaning an interest rate that cannot change, regardless of the bank's situation. A non-fixed APR means that the interest rate on the loan from the bank or in some cases, the dealership itself, would fluctuate at the end of a year. At the beginning of the New Year, the bank can either decrease or increase your APR, and although they are rare, a decreased APR could be obtained under the precedent that your financial institution is working with you to help you repay your loan.
This could stem from a financial hardship or simply not having enough money at the time to repay your loan. To counteract bad credit, a bad credit auto loan can be applied for. These loaning situations are for those that have a credit score of 600 or lower. When applying for loans, if your score is below 600, it's very likely that a loan corporation or business will simply pass you over. However, applying further for loans will actually hurt your credit score more, so to counter this you could visit Myautoloan.com. This site helps you connect with high risk lenders and nearby car dealers that can help you finance your new car.
An online auto loan holds many benefits to the average consumer. In one example, an online auto loan will typically beat out a dealer's overall APR. As well as being cheaper overall, an online auto loan application does not incur fees, such as one may be subject to at a dealer's. Many car dealers tack on application fees to squeeze that extra bit of cash out of the customer beforehand. In another example of why an online auto loan is more beneficial than an in-person one, you may find that the online application is considerably easier to fill out, since you do have the internet at your fingertips. Besides having the information needed to properly fill out an app online, you will also be able to work at your own pace to fill the application out. Lastly, the best part about an online auto loan would be that with most online auto loans, there is no down payment involved. Unlike at a dealership's, an online auto loan steps around any down payments by working directly with the lender, as opposed to working through the dealer to find financing.
The availability of online auto loans comes from the emergence of online banking and financial institutions. Banks and several other businesses have become comfortable operating online, with some banks even performing loan interviews over the internet. In the case of online auto loans, banks and other financial aids can operate via online lenders to help people receive their loans through online transactions.
One of the benefits of applying for a car loan online is that the car loan application takes no time at all to finish. Whereas you would have to commute to the bank and then the dealership to fill out the paperwork involved with applying for a loan, you will not have to leave the house to fill out an online auto loan application!
The streamlined service involved in applying for an online auto loan comes from the plethora of online loan lenders that will work with you quickly and efficiently to find the best loan that you need. A simple search will reveal thousands of sites and lending services ready to help you on the spot and the applications are stress free.
As with all loans, whether they are for a car or house, when applying for a loan online, research it! The online loan rates can differ wildly depending on what bank, company, or business the online lender works with. In order to find the best APR on a loan, I would recommend searching various lender web pages, such as Up2drive.com or Myautoloan.com. These sites have APR estimates on the main web page and can give you a rough idea of what you are looking at paying for your monthly bill.
As with all loans, the APR is extremely important to take into account when looking at repaying your loan. The APR, or annual percentage rate, is the interest returned on your borrowed loan from the bank or financial service. These institutions can help settle your financial matters through a fixed APR, meaning an interest rate that cannot change, regardless of the bank's situation.
A non-fixed APR means that the interest rate on the loan from the bank or in some cases, the dealership itself, would fluctuate at the end of a year. At the beginning of each year, the bank can either decrease or increase your APR, and although they are rare, a decreased APR could be requested and obtained under the premise that your financial institution is working with you to repay your loan. This could stem from a financial hardship or simply not having enough money at the time to repay your loan.
For car buyers with bad or no credit there are special bad credit auto loans available. These loans are for those that have a credit score of 600 or lower. When applying for loans, if your score is below 600, it's very likely that a loan corporation or business will simply pass you over. However, applying further for loans will actually hurt your credit score more, so to counter this you could visit Myautoloan.com. This site helps you connect with high risk lenders and nearby car dealers that can help you finance your new car.
An online auto loan holds many benefits for the average car buyer. In one example, an online auto loan will typically beat out a dealer's overall APR. As well as being cheaper overall, an online auto loan application does not incur fees, such as one may be subject to at a dealer's. Many car dealers tack on application fees to squeeze that extra bit of cash out of the customer beforehand.
Another example of why an online auto loan is superior to a traditional in-person one, you will find that the online application is considerably easier to fill out. Besides having the information needed to properly fill out an app online, you will also be able to work at your own pace to fill the application out.
Lastly, the best part about an online auto loan would be that with most online auto loans, there is no down payment involved. Unlike financing at a car dealership, an online auto loan steps around any down payments by working directly with the lender, it also lowers your cost and rate and removes dealer mark ups.
Author and publisher since 1999. Articles, stories and commentary have appeared in national magazines and are published on the internet. Mr. Fabiano has also been a featured speaker at online publishing and affiliate marketing conferences in the US, Canada and Europe. I author the following consumer finance related sites and communities: Payday Loans [http://www.payday-loans-professor.com]
Credit Cards [http://www.creditcardsprofessor.com]
By: Louis Fabiano
Tuesday, August 7, 2018
Student Loan Repayment Tips - 8 Tips to Keep Your Loan Under Control
The very best way to manage debt is to be debt-free, yet that is easier said than done in today's economy. However, when it comes to paying for your college education, acquiring debt or student loans to afford the tuition cannot be avoided for many students.
In planning for the successful repayment of your student loan many things must be taken into consideration. To get ahead of the game you should plan to repay the loan before you sign the first promissory note. In a perfect world this might be the case, quite the contrary most student do not consider repayment until after they have graduated from college and land their first job.
Here are some suggested tips to help you make plans to deal with your student loan effectively to ensure repayment success.
Tip #1: You Do the Leg Work
All loans are not equally created. Some loans offer repayment incentives while you are still attending college; this bonus in some cases can be extended even after you have graduated. On the other hand, there are loans that provide no such stipend and the loans are due shortly after you have graduated college. For example, the Federal Family Education Loan Program (FFELP) loan charges a 3% loan origination fee; one stimulus is the proposal to pay this fee for students. The student in-turn has more money to off-set the cost for books, school supplies and living expenses.
An example of the incentive after graduation would be the fact that you could qualify for reduced interest rates. Also, should a student want to repay the loan through an automatic withdrawal system, like payroll deduction, for example, the probability of receiving this incentive is even greater? As you can see, there are notable differences in each student loan; that is why it is necessary to ensure that you have a thorough understanding of what each loan offer; and choose the one that provides the best incentives.
Tip #2: Read Your Mail
Typically, student borrowers get tons of information concerning the student loan. The student receives mail, normally, immediately prior to, throughout and following graduation from college. Consequently, it is crucial that you read through the entire stack of mail carefully. Therefore, if you have concerns, or there is information you do not understand; by knowing what is going on now you can get the problem resolved right away. Remember, it is necessary to ask if things are not clear, don't ignore the mail or you might miss out on a critical deadline or important information you need to act on concerning the loans.
Tip #3: Organize that Mountain of Paperwork
Save all of your student loan paperwork and correspondences, as soon as you get it in the mail in the mail. That way, you are going to know exactly what you agreed to, what is expected from you at loan repayment, and also to remind you how much you have borrowed, which is extremely important. It is interesting how signing the promissory note for your loan is so exciting, repaying the loan seems far away, but only for a while. Four years of college pass by quicker than you think. Before you know it, you are graduating, and the student loan repayment is glaring you in the face.
Organization and having the ability to put your fingertips on the loan paperwork will assist in alleviating a lot of the panic. To make things easy for you, begin by establishing a good, easy to use, record-keeping system in which you are able to keep your student loan paperwork and correspondence. The bookstores and libraries have books and software products on personal finance and organization that will help you get going. No matter what filing system you choose, whether document folders, binders, portfolios, or envelopes, create one file for each loan or account you have, and keep your items categorized appropriately. Additionally, while organizing your record-keeping system, make sure that it is safe. The record-keeping system should be kept free from thieves or fire. A number of professionals also recommend that you need to keep your student loan documents and correspondences until they are all totally paid off. This is what you need to keep a record of.
*Essential paperwork like your college student loan applications, promissory notes, disbursement and disclosure statements, and also loan transfer notices. * Copies of all correspondences concerning your student loan company and/or servicing company, such as your school's financial aid office. * Contact and phone number of the loan provider.
Tip #4: Be Present at all Required Entrance and Exit Sessions
When you take out a student loan, you will have to complete the student loan counseling sessions. Some schools give this on-line and the sessions will not require a considerable amount of your time. They will give you a significant amount of information concerning your rights as well as your obligations as a student borrower.
Tip #5: Budget Finances Like a Pro
The adage when you live to impress when you are in school, you might live like a pauper when you have completed your degree. Quite simply, it is essential that you learn the best way to manage your hard earned money when you are going to school. Frugality can help you reduce the amount of the loan you apply for; as well as reduce the total amount you are going to be responsible for paying back. Here are a few sensible techniques worth taking into consideration:
* Prepare realistic budgets while you are going to school and even after you graduate. This will probably enable you to borrow only what you need, providing you an excellent opportunity to pay back the loans. * Learn how to live as inexpensively as possible. Bear in mind you are only a college student. You can enjoy a much more trouble-free life if you graduate with little to no financial debt. Many excellent tips on how to be cash conscious include finding a roommate, renting a video rather than going to the theater, and taking your lunch from home rather than going out to restaurants.
Thriftiness is the name of the game, so be as thrifty as you possibly can. * For virtually any credit card debts you receive, try to pay off the total amount due. * Set up a financial budget for yourself and stick to it. As long as you are in college, it will be beneficial to see how you can avoid the desire of using credit cards or your student loan money to purchase items that are not contained in your spending budget. Never simply purchase unneeded items. * If at all possible, check out work-study or other part-time job. Finding a part-time job will give you the chance to gain useful specialized experience, as well as providing additional income to cover expenses.
Tip #6: Retain at least Half-Time Enrollment
If you are thinking about half-time enrollment, it is essential to ensure that you are eligible for an in-school deferment. The part-time enrollment usually takes six credit hours. Check with you educational institution requirements concerning the prerequisites for half-time standing.
Tip #7: Make the most of Tax Cost savings
A number of college students who take out student education loans qualify for tax breaks. To determine your status, seek advice from your tax consultant. The breaks are now determined by your qualified college tuition repayments, and in addition, they will help decrease how much Federal tax you have to pay. If you are paying interest on a student loan, it is possible to receive a deduction on your individual Federal tax return for all interest payments. When, you get the advantage of the tax credit as well as the deductions, use the extra tax reimbursement to pay down your student loan, or to take care of the educational expenses.
Tip # 8: Show Me the Money
College graduations is now behind you and your new careers looms just ahead, but guess what; it is now time to repay those student loans. Some loans come due soon after college graduation while other loans allow a bit of time before repayment is due. The bottom line is the loan will have to be paid. Here are some recommendations when you enter the repayment period:
* Submit the loan payment as soon as it is due each month for the full payment amount or even more. This should be done no matter whether you receive a monthly bill or not. *Understand the pay off alternatives offered by your student loan lenders. One option allow you to decrease the loan by making larger monthly payments, and other option allow you reduce your initial monthly bills by making it easier to repay the loan early in your career.
*Contact your lender and inform them immediately of any change in your name or address; if you have questions about your college bill; making payments on time is a problem; loan deferment or forbearance might be needed to help you through a financial crisis. *Make sure you clearly comprehend all mail you receive from your student loan lender and respond immediately when notified. For Further Information concerning your student loans, always remember that the financial-aid office at your school should be your first point of contact. Additionally, there are a number of publications from the Federal and state governments, lenders and college admissions office, libraries and your local bookstore.
Here's to your success!
For me to admit that I am still paying off student loans this late in my life is a source of embarrassment. I refuse to reveal my age but believe me I am too old to still be paying off student loans. Oh, as I recall, President Obama and first lady Mitchell Obama paid off their student loans only a few years ago, so maybe I should not feel too bad. With that said, student loans are, and will continue to be an albatross around the necks of thousands of students and the numbers are growing each and every year. What can be done to waylay this dilemma? Unless you are born into a wealthy family, have parents who set up an annuity to cover the cost of your college education, brilliant enough to win a full scholarship, then student loans [http://www.squidoo.com/private-student-loan-consolidation] will be the way most students will have to go to complete his/her college education.
The loan will be even larger if the students choose to pursue a graduate degree or higher, thus adding to the cost that will have to be repaid. However, because you have to take out student loans to support your education, there is no reason why the loans should not be managed properly! So, student loans yes, inappropriate managing the loans is a definite no, no. Be sure to be frugal and find out the very best way to manage your student loans while still in college. There are ways to ward against the inevitable debt, make the best use of it.
By: Gee Gee Gladden
In planning for the successful repayment of your student loan many things must be taken into consideration. To get ahead of the game you should plan to repay the loan before you sign the first promissory note. In a perfect world this might be the case, quite the contrary most student do not consider repayment until after they have graduated from college and land their first job.
Here are some suggested tips to help you make plans to deal with your student loan effectively to ensure repayment success.
Tip #1: You Do the Leg Work
All loans are not equally created. Some loans offer repayment incentives while you are still attending college; this bonus in some cases can be extended even after you have graduated. On the other hand, there are loans that provide no such stipend and the loans are due shortly after you have graduated college. For example, the Federal Family Education Loan Program (FFELP) loan charges a 3% loan origination fee; one stimulus is the proposal to pay this fee for students. The student in-turn has more money to off-set the cost for books, school supplies and living expenses.
An example of the incentive after graduation would be the fact that you could qualify for reduced interest rates. Also, should a student want to repay the loan through an automatic withdrawal system, like payroll deduction, for example, the probability of receiving this incentive is even greater? As you can see, there are notable differences in each student loan; that is why it is necessary to ensure that you have a thorough understanding of what each loan offer; and choose the one that provides the best incentives.
Tip #2: Read Your Mail
Typically, student borrowers get tons of information concerning the student loan. The student receives mail, normally, immediately prior to, throughout and following graduation from college. Consequently, it is crucial that you read through the entire stack of mail carefully. Therefore, if you have concerns, or there is information you do not understand; by knowing what is going on now you can get the problem resolved right away. Remember, it is necessary to ask if things are not clear, don't ignore the mail or you might miss out on a critical deadline or important information you need to act on concerning the loans.
Tip #3: Organize that Mountain of Paperwork
Save all of your student loan paperwork and correspondences, as soon as you get it in the mail in the mail. That way, you are going to know exactly what you agreed to, what is expected from you at loan repayment, and also to remind you how much you have borrowed, which is extremely important. It is interesting how signing the promissory note for your loan is so exciting, repaying the loan seems far away, but only for a while. Four years of college pass by quicker than you think. Before you know it, you are graduating, and the student loan repayment is glaring you in the face.
Organization and having the ability to put your fingertips on the loan paperwork will assist in alleviating a lot of the panic. To make things easy for you, begin by establishing a good, easy to use, record-keeping system in which you are able to keep your student loan paperwork and correspondence. The bookstores and libraries have books and software products on personal finance and organization that will help you get going. No matter what filing system you choose, whether document folders, binders, portfolios, or envelopes, create one file for each loan or account you have, and keep your items categorized appropriately. Additionally, while organizing your record-keeping system, make sure that it is safe. The record-keeping system should be kept free from thieves or fire. A number of professionals also recommend that you need to keep your student loan documents and correspondences until they are all totally paid off. This is what you need to keep a record of.
*Essential paperwork like your college student loan applications, promissory notes, disbursement and disclosure statements, and also loan transfer notices. * Copies of all correspondences concerning your student loan company and/or servicing company, such as your school's financial aid office. * Contact and phone number of the loan provider.
Tip #4: Be Present at all Required Entrance and Exit Sessions
When you take out a student loan, you will have to complete the student loan counseling sessions. Some schools give this on-line and the sessions will not require a considerable amount of your time. They will give you a significant amount of information concerning your rights as well as your obligations as a student borrower.
Tip #5: Budget Finances Like a Pro
The adage when you live to impress when you are in school, you might live like a pauper when you have completed your degree. Quite simply, it is essential that you learn the best way to manage your hard earned money when you are going to school. Frugality can help you reduce the amount of the loan you apply for; as well as reduce the total amount you are going to be responsible for paying back. Here are a few sensible techniques worth taking into consideration:
* Prepare realistic budgets while you are going to school and even after you graduate. This will probably enable you to borrow only what you need, providing you an excellent opportunity to pay back the loans. * Learn how to live as inexpensively as possible. Bear in mind you are only a college student. You can enjoy a much more trouble-free life if you graduate with little to no financial debt. Many excellent tips on how to be cash conscious include finding a roommate, renting a video rather than going to the theater, and taking your lunch from home rather than going out to restaurants.
Thriftiness is the name of the game, so be as thrifty as you possibly can. * For virtually any credit card debts you receive, try to pay off the total amount due. * Set up a financial budget for yourself and stick to it. As long as you are in college, it will be beneficial to see how you can avoid the desire of using credit cards or your student loan money to purchase items that are not contained in your spending budget. Never simply purchase unneeded items. * If at all possible, check out work-study or other part-time job. Finding a part-time job will give you the chance to gain useful specialized experience, as well as providing additional income to cover expenses.
Tip #6: Retain at least Half-Time Enrollment
If you are thinking about half-time enrollment, it is essential to ensure that you are eligible for an in-school deferment. The part-time enrollment usually takes six credit hours. Check with you educational institution requirements concerning the prerequisites for half-time standing.
Tip #7: Make the most of Tax Cost savings
A number of college students who take out student education loans qualify for tax breaks. To determine your status, seek advice from your tax consultant. The breaks are now determined by your qualified college tuition repayments, and in addition, they will help decrease how much Federal tax you have to pay. If you are paying interest on a student loan, it is possible to receive a deduction on your individual Federal tax return for all interest payments. When, you get the advantage of the tax credit as well as the deductions, use the extra tax reimbursement to pay down your student loan, or to take care of the educational expenses.
Tip # 8: Show Me the Money
College graduations is now behind you and your new careers looms just ahead, but guess what; it is now time to repay those student loans. Some loans come due soon after college graduation while other loans allow a bit of time before repayment is due. The bottom line is the loan will have to be paid. Here are some recommendations when you enter the repayment period:
* Submit the loan payment as soon as it is due each month for the full payment amount or even more. This should be done no matter whether you receive a monthly bill or not. *Understand the pay off alternatives offered by your student loan lenders. One option allow you to decrease the loan by making larger monthly payments, and other option allow you reduce your initial monthly bills by making it easier to repay the loan early in your career.
*Contact your lender and inform them immediately of any change in your name or address; if you have questions about your college bill; making payments on time is a problem; loan deferment or forbearance might be needed to help you through a financial crisis. *Make sure you clearly comprehend all mail you receive from your student loan lender and respond immediately when notified. For Further Information concerning your student loans, always remember that the financial-aid office at your school should be your first point of contact. Additionally, there are a number of publications from the Federal and state governments, lenders and college admissions office, libraries and your local bookstore.
Here's to your success!
For me to admit that I am still paying off student loans this late in my life is a source of embarrassment. I refuse to reveal my age but believe me I am too old to still be paying off student loans. Oh, as I recall, President Obama and first lady Mitchell Obama paid off their student loans only a few years ago, so maybe I should not feel too bad. With that said, student loans are, and will continue to be an albatross around the necks of thousands of students and the numbers are growing each and every year. What can be done to waylay this dilemma? Unless you are born into a wealthy family, have parents who set up an annuity to cover the cost of your college education, brilliant enough to win a full scholarship, then student loans [http://www.squidoo.com/private-student-loan-consolidation] will be the way most students will have to go to complete his/her college education.
The loan will be even larger if the students choose to pursue a graduate degree or higher, thus adding to the cost that will have to be repaid. However, because you have to take out student loans to support your education, there is no reason why the loans should not be managed properly! So, student loans yes, inappropriate managing the loans is a definite no, no. Be sure to be frugal and find out the very best way to manage your student loans while still in college. There are ways to ward against the inevitable debt, make the best use of it.
By: Gee Gee Gladden
Sunday, August 5, 2018
Should You Co-Sign on Someone's Student Loans?
Unlike other forms of consumer debt, student loans receive special protections under current laws ranging from collection to bankruptcy. This special status applies not only to the primary borrower (the student) but also to any co-signer on the loan.
Student loans are one of the hardest types of debt to shake. Current U.S. bankruptcy law allows a court to discharge these loans in bankruptcy only in the narrowest circumstances. In fact, the legal requirements for discharging education loans are so formidable to meet that most bankruptcy attorneys avoid student loan cases altogether.
Since so few loan borrowers qualify for bankruptcy discharge under the law, the vast majority of loan debt is carried until the borrower repays the loan or dies -- although some non-federal student loans even survive death, passing the debt on to the borrower's co-signer.
Co-Signer Requirements of Student Loans
Most government-issued student loans don't require a co-signer. Federal Stafford student loans and Perkins student loans are awarded to students without a credit check or co-signer. The one exception would be federal Grad PLUS loans, which are credit-based graduate loans.
Federal PLUS loans for parents are also credit-based and may, in certain cases, require a co-signer for the parents to be able to take out the loan. However, the credit requirements for federal PLUS parent loans and for federal Grad PLUS student loans are much less stringent than the credit requirements for non-federal private student loans.
Private student loans are credit-based loans issued by private lenders or banks. Under current credit criteria, most students, who typically have little or no established credit history, will require a co-signer in order to qualify for a private student loan.
Typically, a co-signer is a relative who agrees to pay the balance of any co-signed loans if the student fails to repay the loan, although a family relationship is not a requirement. A student may have an unrelated co-signer.
Federal Student Loans vs. Private Student Loans
Government-backed federal student loans come with certain payment-deferment and loan-forgiveness benefits. Borrowers who are having difficulty making their monthly loan payments may be eligible for up to three years of payment deferment due to economic hardship, along with an additional three years of forbearance, during which interest continues to accrue, but no payments would be due.
For borrowers who are on the government's income-based repayment plan, any outstanding federal college loans can be discharged prior to full repayment if the borrower has made her or his monthly loan payments for 25 years. Borrowers who go to work for the government or the public sector can have their federal college loans forgiven after 10 years.
Federal college loans can also be forgiven in the event the borrower dies or becomes permanently disabled.
Non-federal private student loans, on the other hand, aren't required to offer any of these payment-deferment or discharge provisions. It is at the lender's discretion whether to offer a struggling borrower deferred or lower monthly loan payments and even whether to discharge the private student loan upon the borrower's death or permanent disability.
Without any special dispensations from the lender, private student loans will generally remain in repayment until the note is satisfied or charged off as a default, no matter how long the repayment process takes.
The Legal Implications of Co-Signing on Student Loans
A loan co-signer has all the same legal responsibilities as the primary loan borrower and has a legal obligation to repay the loan debt under the same terms as the primary borrower. The co-signer is really a co-borrower and is equally responsible for repaying the co-signed loans.
Unfortunately, too many co-borrowers realize this truth very late in the game.
If you've co-signed on someone's loans and your primary borrower makes all of her or his payments on the loan on time and as planned, you may never hear from the lender. If your primary borrower starts missing payments or payment due dates, however, the lender will contact you.
Normally, by the time the lender is contacting you, the loan you've co-signed is already past due, and your credit rating may have already taken a hit.
Keep in mind, too, that any legal remedies a lender has at its disposal for pursuing a loan debt can also be applied to the co-signer. These legal remedies include assignment of the delinquent loan account to a debt collection service and a possible court action. For delinquent federal education loans, the government may seek to garnish your wages or seize any income tax refunds you have coming your way.
In addition, delinquencies or a default on any loans on which you've co-signed will appear on your own credit report with all the same adverse effects as on the primary borrower's credit report. The debt from any co-signed loans will also remain on your credit report as an open obligation until the debt is repaid (or written off in the event of a default).
4 Tips for Protecting Yourself as a Co-Signer on a Student Loan
So should you co-sign on a student loan? You can never predict the future, and unfortunate circumstances can derail even the best-intentioned and responsible student borrower.
If you do decide to co-sign on a loan (or any other loan, for that matter), make sure you clearly understand what your responsibilities are and under what circumstances you would be expected to take over the note:
1) Have a firm understanding with your primary borrower about the repayment plan -- you may even want to consider putting a signed, written agreement in place between the two of you -- and stay in contact with the lender to make sure that the monthly loan payments are being received on time and as agreed. If your primary borrower misses a payment date, contact her or him immediately to discuss the problem.
2) Work with the lender to ensure that you receive duplicate copies of monthly statements, and periodically check your credit report to make sure your credit is still in good standing. Also, bear in mind that being a co-signer on an outstanding loan may reduce your overall creditworthiness since the loan debt will be viewed as a liability.
3) If your primary borrower communicates to you that s/he is having difficulty making the monthly loan payments, contact the lender immediately. For federal college loans, ask about your loan deferment and forbearance options. Private student loans generally don't offer the same deferment and forbearance benefits as federal student loans, but some private student loan lenders may be willing to discuss a deferred payment arrangement or alternative payment plan.
4) If your primary borrower misses a payment or stops making payments altogether, you'll be expected to take over the loan payments. You may have legal recourses with regard to the borrower, but those are separate from the legal obligations of the loan itself. The lender will be looking to you, as a co-signer, to make the monthly loan payments until the primary borrower can resume responsibility for making the payments her or himself.
College Loans: [http://www.nextstudent.com/private-loans/private-loans.asp]
[http://www.nextstudent.com/]
By: Jeffrey Mictabor
Student loans are one of the hardest types of debt to shake. Current U.S. bankruptcy law allows a court to discharge these loans in bankruptcy only in the narrowest circumstances. In fact, the legal requirements for discharging education loans are so formidable to meet that most bankruptcy attorneys avoid student loan cases altogether.
Since so few loan borrowers qualify for bankruptcy discharge under the law, the vast majority of loan debt is carried until the borrower repays the loan or dies -- although some non-federal student loans even survive death, passing the debt on to the borrower's co-signer.
Co-Signer Requirements of Student Loans
Most government-issued student loans don't require a co-signer. Federal Stafford student loans and Perkins student loans are awarded to students without a credit check or co-signer. The one exception would be federal Grad PLUS loans, which are credit-based graduate loans.
Federal PLUS loans for parents are also credit-based and may, in certain cases, require a co-signer for the parents to be able to take out the loan. However, the credit requirements for federal PLUS parent loans and for federal Grad PLUS student loans are much less stringent than the credit requirements for non-federal private student loans.
Private student loans are credit-based loans issued by private lenders or banks. Under current credit criteria, most students, who typically have little or no established credit history, will require a co-signer in order to qualify for a private student loan.
Typically, a co-signer is a relative who agrees to pay the balance of any co-signed loans if the student fails to repay the loan, although a family relationship is not a requirement. A student may have an unrelated co-signer.
Federal Student Loans vs. Private Student Loans
Government-backed federal student loans come with certain payment-deferment and loan-forgiveness benefits. Borrowers who are having difficulty making their monthly loan payments may be eligible for up to three years of payment deferment due to economic hardship, along with an additional three years of forbearance, during which interest continues to accrue, but no payments would be due.
For borrowers who are on the government's income-based repayment plan, any outstanding federal college loans can be discharged prior to full repayment if the borrower has made her or his monthly loan payments for 25 years. Borrowers who go to work for the government or the public sector can have their federal college loans forgiven after 10 years.
Federal college loans can also be forgiven in the event the borrower dies or becomes permanently disabled.
Non-federal private student loans, on the other hand, aren't required to offer any of these payment-deferment or discharge provisions. It is at the lender's discretion whether to offer a struggling borrower deferred or lower monthly loan payments and even whether to discharge the private student loan upon the borrower's death or permanent disability.
Without any special dispensations from the lender, private student loans will generally remain in repayment until the note is satisfied or charged off as a default, no matter how long the repayment process takes.
The Legal Implications of Co-Signing on Student Loans
A loan co-signer has all the same legal responsibilities as the primary loan borrower and has a legal obligation to repay the loan debt under the same terms as the primary borrower. The co-signer is really a co-borrower and is equally responsible for repaying the co-signed loans.
Unfortunately, too many co-borrowers realize this truth very late in the game.
If you've co-signed on someone's loans and your primary borrower makes all of her or his payments on the loan on time and as planned, you may never hear from the lender. If your primary borrower starts missing payments or payment due dates, however, the lender will contact you.
Normally, by the time the lender is contacting you, the loan you've co-signed is already past due, and your credit rating may have already taken a hit.
Keep in mind, too, that any legal remedies a lender has at its disposal for pursuing a loan debt can also be applied to the co-signer. These legal remedies include assignment of the delinquent loan account to a debt collection service and a possible court action. For delinquent federal education loans, the government may seek to garnish your wages or seize any income tax refunds you have coming your way.
In addition, delinquencies or a default on any loans on which you've co-signed will appear on your own credit report with all the same adverse effects as on the primary borrower's credit report. The debt from any co-signed loans will also remain on your credit report as an open obligation until the debt is repaid (or written off in the event of a default).
4 Tips for Protecting Yourself as a Co-Signer on a Student Loan
So should you co-sign on a student loan? You can never predict the future, and unfortunate circumstances can derail even the best-intentioned and responsible student borrower.
If you do decide to co-sign on a loan (or any other loan, for that matter), make sure you clearly understand what your responsibilities are and under what circumstances you would be expected to take over the note:
1) Have a firm understanding with your primary borrower about the repayment plan -- you may even want to consider putting a signed, written agreement in place between the two of you -- and stay in contact with the lender to make sure that the monthly loan payments are being received on time and as agreed. If your primary borrower misses a payment date, contact her or him immediately to discuss the problem.
2) Work with the lender to ensure that you receive duplicate copies of monthly statements, and periodically check your credit report to make sure your credit is still in good standing. Also, bear in mind that being a co-signer on an outstanding loan may reduce your overall creditworthiness since the loan debt will be viewed as a liability.
3) If your primary borrower communicates to you that s/he is having difficulty making the monthly loan payments, contact the lender immediately. For federal college loans, ask about your loan deferment and forbearance options. Private student loans generally don't offer the same deferment and forbearance benefits as federal student loans, but some private student loan lenders may be willing to discuss a deferred payment arrangement or alternative payment plan.
4) If your primary borrower misses a payment or stops making payments altogether, you'll be expected to take over the loan payments. You may have legal recourses with regard to the borrower, but those are separate from the legal obligations of the loan itself. The lender will be looking to you, as a co-signer, to make the monthly loan payments until the primary borrower can resume responsibility for making the payments her or himself.
College Loans: [http://www.nextstudent.com/private-loans/private-loans.asp]
[http://www.nextstudent.com/]
By: Jeffrey Mictabor
Unsecured And Secured Loans: What Are They?
Terms such as unsecured and secured loans rings a bell to people who have been in search of a loan. Do you realize the difference? Do you realize which type of mortgage loan that you need? Are a person aware of the loan you'd qualify for?
It's difficult many times for that average customer to sort through each of the terminology where you can real concept of what they need. It may be possible to break collateralized and loans into straightforward terms to your understanding.
Guaranteed and Short term loans: What are they?
Loans do not need to become secured through anything, for instance your home. With these financing options, the lender feels that you will be able to repay the borrowed funds amount since promised. Unsecured financial products are not difficult to come by, but you do have to have a favorable credit history, the lowest debt to be able to income proportion, and you should be able to present your fiscal stability.
There are various types of loans such as personal loans, student loans, personal lines of credit, and also some do it yourself loans.
Nevertheless, Secured loans ask you to secure the loan with one thing, such as your own home or your car or truck, to the loan company. What this means is that you simply are providing collateral to the lender, which means should you not pay they have rights to this object. Secured financial products are more common as many people don't have the credit or funds to have an unsecured loan and then for many these financing options are more attractive because they attribute lower rates.
Lenders feel assured with these type of financial products because they get security in because you will repay. Some examples of secured personal loans are hel-home equity loans, home collateral line of breaks, auto loans, motorboat loans, home improvement loans, and recreational vehicle loans.
The most suitable bank loan for you is determined by your requirements while hunting for a single. If you just need a personal unsecured loan for a couple?500 to repay a couple health care bills you could possibly do easy if you have a considerable credit history along with a low debts to income ratio.
Attached loan will be the correct loan if you are looking to acquire a home. This does not imply that you need to offered collateral to acquire the home, a home is the equity. What this means is when you don't pay out on the bank loan than an individual lose the house.
Same applies to a car loan, for any new automobile or truck. When you buy the car while using loan you are securing the loan with the automobile, agreeing when you don't give the loan you will possess the car given back to the loan provider.
Secured as well as unsecured loans are usually flexible in that they loan themselves to different things. In most cases those existence changing purchases such as residences and automobiles are attached and anything else may come under unsecured if you have the credit history to back it up. Naturally, there are pros and cons to the two types of loans. Its a person who needs to choose the best suited to you.
Unsecured loans have simple processing, in order that they ensure rapid money relieve. If you are a UK citizen wanting some quick bucks, after that an unsecured loan UK will be a great option. A personal unsecured loan UK is really a loan for which you do need to present collateral. Ultimately, the forms of the mortgage becomes less and also you receive the money within a small amount of time.
The absence of equity not only makes simpler the running of unguaranteed loan British isles but also keeps you out involving risk. The actual collateral performs as a to protect the loan. The financial institution is legally entitled to acquire possession of your premises that you offer you as equity if you fail to repay the loan. While you offer no collateral for an unsecured bank loan UK, you have no risk regarding losing the house. Undoubtedly, this is a great benefit made available from unsecured loan UK.
In addition to this, an unsecured loan UK will save you the outlay related to residence assessment. Nevertheless, it generally carries higher rate of interest compared to a guaranteed loan. Since the lender doesn't have any assurance of getting his money back, he makes up by trekking a high curiosity. However, the loan comes with brief repayment expression. This means you spend interest for a short period. So, in the long run you will end up having to pay fewer amounts in the form of interest.
There is another way to avoid paying large interest. With the, you have to approach the online creditors and check out the market extensively through the Net. It will absolutely help you to find out the lender who'll offer you the loan at competing rate.
For more information about getting a loan to buy the things you desire check out Unsecured Loans UK [http://aboutunsecuredloansuk.co.uk/loans/unsecured-loans-uk] today Unsecured Personal Loans UK [http://aboutunsecuredloansuk.co.uk/loans/unsecured-loans-uk]
By: Sandra Pilkintosns
It's difficult many times for that average customer to sort through each of the terminology where you can real concept of what they need. It may be possible to break collateralized and loans into straightforward terms to your understanding.
Guaranteed and Short term loans: What are they?
Loans do not need to become secured through anything, for instance your home. With these financing options, the lender feels that you will be able to repay the borrowed funds amount since promised. Unsecured financial products are not difficult to come by, but you do have to have a favorable credit history, the lowest debt to be able to income proportion, and you should be able to present your fiscal stability.
There are various types of loans such as personal loans, student loans, personal lines of credit, and also some do it yourself loans.
Nevertheless, Secured loans ask you to secure the loan with one thing, such as your own home or your car or truck, to the loan company. What this means is that you simply are providing collateral to the lender, which means should you not pay they have rights to this object. Secured financial products are more common as many people don't have the credit or funds to have an unsecured loan and then for many these financing options are more attractive because they attribute lower rates.
Lenders feel assured with these type of financial products because they get security in because you will repay. Some examples of secured personal loans are hel-home equity loans, home collateral line of breaks, auto loans, motorboat loans, home improvement loans, and recreational vehicle loans.
The most suitable bank loan for you is determined by your requirements while hunting for a single. If you just need a personal unsecured loan for a couple?500 to repay a couple health care bills you could possibly do easy if you have a considerable credit history along with a low debts to income ratio.
Attached loan will be the correct loan if you are looking to acquire a home. This does not imply that you need to offered collateral to acquire the home, a home is the equity. What this means is when you don't pay out on the bank loan than an individual lose the house.
Same applies to a car loan, for any new automobile or truck. When you buy the car while using loan you are securing the loan with the automobile, agreeing when you don't give the loan you will possess the car given back to the loan provider.
Secured as well as unsecured loans are usually flexible in that they loan themselves to different things. In most cases those existence changing purchases such as residences and automobiles are attached and anything else may come under unsecured if you have the credit history to back it up. Naturally, there are pros and cons to the two types of loans. Its a person who needs to choose the best suited to you.
Unsecured loans have simple processing, in order that they ensure rapid money relieve. If you are a UK citizen wanting some quick bucks, after that an unsecured loan UK will be a great option. A personal unsecured loan UK is really a loan for which you do need to present collateral. Ultimately, the forms of the mortgage becomes less and also you receive the money within a small amount of time.
The absence of equity not only makes simpler the running of unguaranteed loan British isles but also keeps you out involving risk. The actual collateral performs as a to protect the loan. The financial institution is legally entitled to acquire possession of your premises that you offer you as equity if you fail to repay the loan. While you offer no collateral for an unsecured bank loan UK, you have no risk regarding losing the house. Undoubtedly, this is a great benefit made available from unsecured loan UK.
In addition to this, an unsecured loan UK will save you the outlay related to residence assessment. Nevertheless, it generally carries higher rate of interest compared to a guaranteed loan. Since the lender doesn't have any assurance of getting his money back, he makes up by trekking a high curiosity. However, the loan comes with brief repayment expression. This means you spend interest for a short period. So, in the long run you will end up having to pay fewer amounts in the form of interest.
There is another way to avoid paying large interest. With the, you have to approach the online creditors and check out the market extensively through the Net. It will absolutely help you to find out the lender who'll offer you the loan at competing rate.
For more information about getting a loan to buy the things you desire check out Unsecured Loans UK [http://aboutunsecuredloansuk.co.uk/loans/unsecured-loans-uk] today Unsecured Personal Loans UK [http://aboutunsecuredloansuk.co.uk/loans/unsecured-loans-uk]
By: Sandra Pilkintosns
Saturday, August 4, 2018
Secured And Unsecured Loans In Bankruptcy
When it comes to taking out a loan, you should know they are not all the same. There are many types of loans and the terms and conditions of a loan can vary greatly. Different types of loans each have their own benefits and risks. The terms of a secured loan can be stricter than an unsecured loan. One of the main differences between these two types of loans is how debt collection efforts are handled in the event you default on your loan payments. Your debt repayment options may be managed differently in a secured loan than an unsecured loan. In the event of an extended financial hardship, you may not be eligible to have certain types of loans eliminated through bankruptcy.
Secured Loans
Most major loan purchases, such as your home or car, are called secured loans. They are called secured loans because the debts acquired under this type of loan are secured against collateral. A mortgage loan is considered a secured loan. In a mortgage loan, the lender has the right to repossess the home if you default on your payments. Defaulting on a mortgage loan can lead to foreclosure, whereby the lender takes over the rights to the home and may sell the home in order to satisfy the debts owed. Loans for car purchases are also secured loans. The lender can repossess your car and sell it to recover the loan amount. If the sale of the asset does not satisfy the full amount of the debt that is owed, you may still be held liable for repaying the remaining amount owed on the debt.
A personal secured loan is one in which you are using your home or car as collateral, but the money received in the loan is used to purchase other items. An example of a personal secured loan is a payday loan, in which you put the title to your car as collateral against the loan. Even though the loan is not used for the purchase of the car, the lender has the right to repossess the car if you default on repaying the loan. If your car is repossessed during a payday loan, you are still liable for any debts still owed on your car loan through the originating lender. This can lead to further financial trouble and more debt.
Secured Loans And Bankruptcy
Secured loans can be more difficult to manage when if you find yourself in financial trouble. A secured loan may not be eligible for elimination if you file for bankruptcy. In some cases, a Chapter 7 bankruptcy can eliminate the debt owed on a secured loan, but you may risk losing the property to the lender. Legally, lenders are allowed to seize and liquidate some of your assets in order to fulfill the debt payments of a secured loan. However, there are many states whose bankruptcy laws may offer exemptions for some of your assets. Bankruptcy exemptions may allow for your home and car can be protected from liquidation during bankruptcy. A Chapter 13 bankruptcy can protect your assets from liquidation through a Chapter 13 repayment plan. The repayment plan allows for you to keep your assets while you make payments towards the loan over the course of 3 to 5 years. Once you complete the repayment plan, you will be relieved of your loan debt and own the rights to the property.
The most important thing to remember about defaulting on a secured loan, is that time is crucial for protecting your assets. Once you realize you may not be able to make your payment, contact your lender and discuss negotiating a modified repayment plan. Many lenders prefer to modify a repayment plan that better suits your budget, than risk losing money through selling the property through foreclosure or repossession. If your lender is not willing to negotiate, seek counsel from a qualified bankruptcy attorney.
Unsecured Loans
Unsecured loans are loans that do not have any collateral used against the loan. The loan is unsecured because it is based on your promise to repay the debt. In an unsecured loan, the lender is not given any rights to seize or liquidate a specific asset. If you default on the loan, the lender may make debt collection efforts but are not afforded the right to reclaim any of your property.
The most common type of unsecured loan is a credit card. Defaulting on a credit card may lead to collection efforts, but creditors cannot take your assets to pay for the debt. Some personal loans are considered unsecured loans if you did not put up any of your property as collateral for the loan. Defaulting on unsecured loan payments can lead to negative consequences such as damage to your credit, harsh collection attempts and legal action. Another example of an unsecured loan is a student loan. Generally, student loans are treated seriously by the lending institution and defaulting on such loans can lead to significant consequences. Federal bankruptcy laws do not protect borrowers that default on a student loan payment and you risk having your wages garnished for purposes of paying the debt owed.
Unsecured Loans And Bankruptcy
Unsecured loans are much easier to have discharged through bankruptcy than a secured loan. A Chapter 7 bankruptcy can eliminate most of your unsecured debt. In some cases, the bankruptcy court may decide to allow for some of your assets to be liquidated to fulfill debt payments. However, bankruptcy laws offer exemptions to protect most of your assets in bankruptcy. As in a secured loan, a Chapter 13 bankruptcy will protect your assets as you make payments towards the debt.
Your debts are your responsibility, whether they are secured or unsecured loan debts. Although bankruptcy allows for debt relief when experiencing financial hardships, this assistance should not be abused. It is always best to repay your debts in full to prevent any further damage to your credit history and to maintain a good financial standing. However, good people may experience tough times. Bankruptcy can provide relief from your debts and protect your assets, but it is best to be properly advised about your financial situation before you decide to pursue bankruptcy. A qualified bankruptcy attorney can review your options and help you make the decision to put you on the path to financial stability.
The Lee Law Firm aims to provide local residents with high quality legal representation at affordable rates. Their attorneys specialize in all aspects of Chapter 7 and Chapter 13 Bankruptcy. As Dallas bankruptcy [http://leebankruptcy.com/bankruptcy-attorney-profiles/] lawyers, the Lee Law Firm attorneys understand the pressures their clients face as the battle a financial hardship.
By: Christopher M
Secured Loans
Most major loan purchases, such as your home or car, are called secured loans. They are called secured loans because the debts acquired under this type of loan are secured against collateral. A mortgage loan is considered a secured loan. In a mortgage loan, the lender has the right to repossess the home if you default on your payments. Defaulting on a mortgage loan can lead to foreclosure, whereby the lender takes over the rights to the home and may sell the home in order to satisfy the debts owed. Loans for car purchases are also secured loans. The lender can repossess your car and sell it to recover the loan amount. If the sale of the asset does not satisfy the full amount of the debt that is owed, you may still be held liable for repaying the remaining amount owed on the debt.
A personal secured loan is one in which you are using your home or car as collateral, but the money received in the loan is used to purchase other items. An example of a personal secured loan is a payday loan, in which you put the title to your car as collateral against the loan. Even though the loan is not used for the purchase of the car, the lender has the right to repossess the car if you default on repaying the loan. If your car is repossessed during a payday loan, you are still liable for any debts still owed on your car loan through the originating lender. This can lead to further financial trouble and more debt.
Secured Loans And Bankruptcy
Secured loans can be more difficult to manage when if you find yourself in financial trouble. A secured loan may not be eligible for elimination if you file for bankruptcy. In some cases, a Chapter 7 bankruptcy can eliminate the debt owed on a secured loan, but you may risk losing the property to the lender. Legally, lenders are allowed to seize and liquidate some of your assets in order to fulfill the debt payments of a secured loan. However, there are many states whose bankruptcy laws may offer exemptions for some of your assets. Bankruptcy exemptions may allow for your home and car can be protected from liquidation during bankruptcy. A Chapter 13 bankruptcy can protect your assets from liquidation through a Chapter 13 repayment plan. The repayment plan allows for you to keep your assets while you make payments towards the loan over the course of 3 to 5 years. Once you complete the repayment plan, you will be relieved of your loan debt and own the rights to the property.
The most important thing to remember about defaulting on a secured loan, is that time is crucial for protecting your assets. Once you realize you may not be able to make your payment, contact your lender and discuss negotiating a modified repayment plan. Many lenders prefer to modify a repayment plan that better suits your budget, than risk losing money through selling the property through foreclosure or repossession. If your lender is not willing to negotiate, seek counsel from a qualified bankruptcy attorney.
Unsecured Loans
Unsecured loans are loans that do not have any collateral used against the loan. The loan is unsecured because it is based on your promise to repay the debt. In an unsecured loan, the lender is not given any rights to seize or liquidate a specific asset. If you default on the loan, the lender may make debt collection efforts but are not afforded the right to reclaim any of your property.
The most common type of unsecured loan is a credit card. Defaulting on a credit card may lead to collection efforts, but creditors cannot take your assets to pay for the debt. Some personal loans are considered unsecured loans if you did not put up any of your property as collateral for the loan. Defaulting on unsecured loan payments can lead to negative consequences such as damage to your credit, harsh collection attempts and legal action. Another example of an unsecured loan is a student loan. Generally, student loans are treated seriously by the lending institution and defaulting on such loans can lead to significant consequences. Federal bankruptcy laws do not protect borrowers that default on a student loan payment and you risk having your wages garnished for purposes of paying the debt owed.
Unsecured Loans And Bankruptcy
Unsecured loans are much easier to have discharged through bankruptcy than a secured loan. A Chapter 7 bankruptcy can eliminate most of your unsecured debt. In some cases, the bankruptcy court may decide to allow for some of your assets to be liquidated to fulfill debt payments. However, bankruptcy laws offer exemptions to protect most of your assets in bankruptcy. As in a secured loan, a Chapter 13 bankruptcy will protect your assets as you make payments towards the debt.
Your debts are your responsibility, whether they are secured or unsecured loan debts. Although bankruptcy allows for debt relief when experiencing financial hardships, this assistance should not be abused. It is always best to repay your debts in full to prevent any further damage to your credit history and to maintain a good financial standing. However, good people may experience tough times. Bankruptcy can provide relief from your debts and protect your assets, but it is best to be properly advised about your financial situation before you decide to pursue bankruptcy. A qualified bankruptcy attorney can review your options and help you make the decision to put you on the path to financial stability.
The Lee Law Firm aims to provide local residents with high quality legal representation at affordable rates. Their attorneys specialize in all aspects of Chapter 7 and Chapter 13 Bankruptcy. As Dallas bankruptcy [http://leebankruptcy.com/bankruptcy-attorney-profiles/] lawyers, the Lee Law Firm attorneys understand the pressures their clients face as the battle a financial hardship.
By: Christopher M
Friday, August 3, 2018
An Outline of Personal and Business Loan Categories and Their Uses
The number of loan products have increased over the past 20 years as economic necessity and a demanding public in need of specialization to solve financial circumstances. From personal loans, educational loans, business loans and even municipal loans. The entities that took part in the creation of the various financial products are actuaries, risk management professionals, "information and informatics engineers" and Wall Street amongst others. It was necessary to create, enhance or break down for better or for worse loan services and products to keep money fluid in a diverse marketplace that required funds to address niche demographics.
Personal Loans
Signature Loans - A signature loan is just as it sounds. One applies for a loan and gives a signature on a promissory note to repay the loan in a certain amount of time. That amount of time is called a "loan term " and may be from six months to five years. Signature loans usually require good credit and the criteria for loan approval are mostly based on the borrower's credit and and to a lesser degree on assets. Not all signature loans have the same parameters for qualifications. Some loans may require the borrower even with good credit to account for assets to show the lending institution for underwriting purposes. The institution may or may not place a lien on the assets but nevertheless wants to have documentation proving that there are indeed financial or physical assets owned by the borrower. Signature loans usually come with lower interest rates than other types of consumer loans like payday loans, credit card advances, title loans and some car loans. More on these topics later. Who are the lenders in signature loans? They range from large subsidiaries of auto manufacturers to banks, savings and loan institutions, finance companies and payday loan companies.
Credit Card Loans - Credit Card loans or cash advances from credit cards are another form of personal loans. These quick loans are more readily available to the general public and does not require a credit check. To obtain the initial card more than likely required a credit check or at least the process of identification for secured credit cards. Credit card loans or advances usually come with higher interest rates and also other fees for having access to the cash. Various entities allow access to the credit card cash advances from bank tellers, check cashing facilities and automated teller machines (ATMs). The fees vary based on source used to access the funds. To lower the fees for cash advances some use check cashing facilities to have the card charged and receive cash back in turn for not having to incur the fees of ATM machines as cards are assessed a fee twice; first by the ATM company and also their bank. The interest rates on credit card loans or advances are usually higher than signature loans. There are some states that have usury laws that have lower interest rates on credit cards. The loan or advance on a credit card is not a "term loan" as with most signature loans. It is more or less a line of credit the borrower has access to when they need it as long as there are funds available on the credit card. Interest on consumer loans are no longer tax deductible as in previous years. They were designed for short term borrowing needs but many have come to use their credit cards as a regular source of funds in tight economic times or between paychecks.
Wedding Loans - A relatively new form of loan to carve out a niche for the lending industry and meet the needs of the increasing costs of weddings is the Wedding Loan. Because of the expense of weddings which can range into six figures, it sometimes requires a personal loan or even a business loan of the families involved to provide a proper wedding. Wedding loans can be secured (using assets for collateral) or unsecured (signature loans) to obtain funds for the ever growing need to pay for the escalating wedding costs and all the various services and products that a successful matrimonial ceremony would need. The credit criteria and the term may vary based on the amount needed and financial status of the people involved.
Payday or Cash Advance Loans is a fast growing market because it usually requires the least of credit criteria used for loan approvals. One can have bad credit for a quick and instant loan. Just having proof of income, proof of identity and a checking account is all that is necessary to secure funds. Even today many have checking accounts without checks one can still obtain a cash advance by asking their bank to produce a one time check to give to the payday loan agency. Many payday loan companies and stores can get approval with no faxing of documents as they utilize other means for proof of income. Although payday loans come with very high annualized interest rates they sometimes are the only source of emergency cash loans for those in need.
Automotive, Motorcycle, RV (recreational vehicle) and Boat Loans - These personal consumer loans are usually not signature only loans but asset based loans. In other words a financial lien is placed against the asset to secure a loan to purchase or refinance the car, boat et al. These consumer loans may sometimes require a down payment of five to twenty-five percent to secure enjoyment and use of ownership. Because these are not funds that are already available as with credit cards they come with a "loan term" from one to six years depending on the choices of the consumer, the marketplace and the credit status. The interest rates can range from very low usually offered by manufacturers of cars, motorcycles, RV's (recreational vehicles) and boats to very high if the borrower uses a credit card, a finance company or a "buy here - pay here" lender - or the car dealer who finances the purchase of the car by giving the borrower a term of months and years to pay the balance of the loan off.
Business Loans
SBA (Small Business Administration) Loans are loans that are given to small businesses which are not able to qualify for a loan from a financial institution for various reasons from lack of business history, lack of collateral to "secure" the loan or not having an adequate credit history. The SBA is not a direct lender but acts as an underwriter on behalf of the bank that funds the loan for the business entity. If the borrower defaults on the loan the SBA will pay the bank a percentage of the balance for taking the financial risk to loan the funds to the business. There are various types of SBA loans which will not be covered in this article but a future article will explain in more detail.
Conventional Business Loans are loans that are either unsecured meaning no asset is used to approve the loan or secured and called "asset based loans" where assets from inventory, equipment, accounts receivable or real estate are used for underwriting for loan approval. Conventional business loans are given to business entities that have great banking relationships, established business credit history with trade lines with other businesses they do business with and good standing with various credit reporting entities like Dun & Bradstreet. There are short term loans with interest only payments with the balance due at the end of the loan usually referred to as a "Balloon Loan". There are also longer term loans that are fully amortized (principal and interest in each payment) paid over one to five years or more.
Equipment Leasing is a financial instrument which technically is not a loan. Meaning based on tax ramifications and who owns the equipment - leasing is just that - leasing an asset owned by another entity. Leases are usually from large corporations or a bank. The lease term can vary from one to five years or more and there usually are tax benefits to the business entity in leasing new or used equipment.
Equipment Sale Leaseback is a transaction to use equipment that is already owned by the business or municipal entity to secure funds for the present need for operations. The term can vary from one to five years and the amount of funds can vary based on credit history and a percentage of the fair market value of the equipment. The company then in turn leases the equipment back in usually a monthly payment. The company or the lessee normally has different choices on what they want to do with the equipment at the end of the term. They can roll the lease transaction into newer more updated equipment or software. They can buy the equipment for one dollar or ten percent of the fair market value of the equipment.More and more companies are leasing today as opposed to paying cash or using bank lines or loans.
Merchant Cash Advance is used by businesses that need fast cash and can't qualify or don't want to go through the process of getting bank approval for needed funds. A Merchant Cash Advance is also not a loan product but it is the selling of assets or credit card receipts at a discount. In other words the Merchant Cash Advance company buys the credit card receipts and then attaches a fee usually every time the business "batches", settles or closes the day's or week's sales until the funds advanced are paid off. There is no term with merchant cash advances as it is not a loan so there is no set payment amount or period. The paying off of the advanced funds vary based on a the credit and debit card transactions of the day or week.
Factoring Accounts Receivable Invoices enables a business entity that normally has to wait 30 days or longer to be paid by other businesses or governmental entities. Again factoring is not technically a loan but a selling of invoices at a discount for cash now. In a typical transaction the company applies with a Factoring Company and the company looks primarily at the credit of the other business or governmental entity that the company is doing business with. Based on that as long as the client of the company is a solvent business or government agency the invoices are bought and funds are dispensed to the business usually within three days of due diligence on the company they are transacting business with. In other words the funds are dispensed after there is a credit check and processing of the other company. The dollar amount that is advanced can vary from fifty percent of the invoice to eighty or ninety percent depending on various factors such as the size of the invoice to the credit criteria of the other company or governmental entity whether it is a city, county, state or federal agency.
Medical Factoring is a financial transaction that benefits medical entities like hospitals, clinics and various health care professionals that have to wait to receive funds for services performed on patients. Like Factoring and Merchant Cash Advances Medical Factoring is the selling of assets in this case invoices for cash now. In many instances the health care industry receives payment from third party entities like insurance companies, Medicaid and Medicare and state entities that provide funds for those in need of medical procedures. The medical facility or professional in turns sells the invoice(s) on a on going basis or one time for cash now. Once there is an interest is selling the receivables then a Factor steps into analyze the billing so that funds can be advanced. This process can vary in length but is usually shorter in length than the process of getting bank financing.
Contract and Purchase Order Funding allows companies to bid on large projects for governmental agencies, hospitals, universities, prison systems and municipalities or also to sell to larger corporations even if the business does not have the credit or bank approval or the wherewithal to service or fulfill a large contract order. Similar to Factoring which works hand in hand with Purchase Order Funding it is not a loan but a simultaneous transaction that involves advancing funds based on the credit of the governmental agency or larger company and the size of the contract. The funds that are advanced are for the cost in completing the order of products or performing services. So the profit that will be gained is not advanced but the costs as in raw and finished material, transportation, production, labor, expertise and any other costs involved in completing the contract. Once the contract is completed or once an invoice is ready to be sent to the client a factoring company which is sometimes owned by the same company buys the invoice at a discount and the funds that would normally be advanced to the company are usually used to settle the amount advanced for the material and other services that were needed to complete the order. Contract and Purchase Order Funding usually requires large transaction amounts as opposed to factoring that can be utilized for invoices as small as one hundred dollars. With the use of Contract and Purchase Order Funding companies that were locked out of the process of bidding on large contract s may become players in multi-million dollar deals.
Commercial Real Estate Sale Leasebacks are similar to Equipment Sale Leasebacks featured in this article. Instead of utilizing owned equipment to secure cash when bank borrowing is not wanted or not available the commercial real estate is used to access funds now. This can vary from office buildings, medical buildings, retail franchises, industrial buildings and manufacturing to large utility plants. This frees up cash "locked" away in real estate. Many entities find that at the present time the business they are in whether it is retail, manufacturing or another field that the holding of commercial real estate is not in their best financial interest for now. They prefer to put to use funds for their industry. So a retailer selling retails goods decides to focus on the retail operations and to lease the space because that real estate when factored into a myriad of calculations does not fit their financial goals during the present time. Yes the ownership of commercial real estate is an asset and can be used as a security for a loan but may also be viewed as a fixed non-performing entity that does not meet the needs of the business, organization, group or individual that owns the building. Commercial Real Estate Sale Leasebacks are another form of getting access to funds and has increased over the years.
Fast Easy Bad Credit No Credit Check Payday Loans Offers local loans with lenders in most states including but not limited to the following cities: Los Angeles, Pasadena, Long Beach, Orange County San Diego Fresno Riverside Las Vegas Henderson, Reno, Boulder City Houston, Huntsville, Anchorage Miami Beach, Orlando, Jacksonville Phoenix, Tucson, Flagstaff, New Orleans, Leesville, Baton Rouge, Shreveport Detroit, Lansing, Flint, Houston, Dallas, El Paso Amarillo, Galveston, Beaumont, Austin, Denton, San Marcos Tyler, Jasper Corpus Christi, Milwaukee, Madison, Green Bay, Racine, Eau Claire, Appleton, Kenosha, Shorewood and More!.
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By: Ralph Bellamy Jr
Personal Loans
Signature Loans - A signature loan is just as it sounds. One applies for a loan and gives a signature on a promissory note to repay the loan in a certain amount of time. That amount of time is called a "loan term " and may be from six months to five years. Signature loans usually require good credit and the criteria for loan approval are mostly based on the borrower's credit and and to a lesser degree on assets. Not all signature loans have the same parameters for qualifications. Some loans may require the borrower even with good credit to account for assets to show the lending institution for underwriting purposes. The institution may or may not place a lien on the assets but nevertheless wants to have documentation proving that there are indeed financial or physical assets owned by the borrower. Signature loans usually come with lower interest rates than other types of consumer loans like payday loans, credit card advances, title loans and some car loans. More on these topics later. Who are the lenders in signature loans? They range from large subsidiaries of auto manufacturers to banks, savings and loan institutions, finance companies and payday loan companies.
Credit Card Loans - Credit Card loans or cash advances from credit cards are another form of personal loans. These quick loans are more readily available to the general public and does not require a credit check. To obtain the initial card more than likely required a credit check or at least the process of identification for secured credit cards. Credit card loans or advances usually come with higher interest rates and also other fees for having access to the cash. Various entities allow access to the credit card cash advances from bank tellers, check cashing facilities and automated teller machines (ATMs). The fees vary based on source used to access the funds. To lower the fees for cash advances some use check cashing facilities to have the card charged and receive cash back in turn for not having to incur the fees of ATM machines as cards are assessed a fee twice; first by the ATM company and also their bank. The interest rates on credit card loans or advances are usually higher than signature loans. There are some states that have usury laws that have lower interest rates on credit cards. The loan or advance on a credit card is not a "term loan" as with most signature loans. It is more or less a line of credit the borrower has access to when they need it as long as there are funds available on the credit card. Interest on consumer loans are no longer tax deductible as in previous years. They were designed for short term borrowing needs but many have come to use their credit cards as a regular source of funds in tight economic times or between paychecks.
Wedding Loans - A relatively new form of loan to carve out a niche for the lending industry and meet the needs of the increasing costs of weddings is the Wedding Loan. Because of the expense of weddings which can range into six figures, it sometimes requires a personal loan or even a business loan of the families involved to provide a proper wedding. Wedding loans can be secured (using assets for collateral) or unsecured (signature loans) to obtain funds for the ever growing need to pay for the escalating wedding costs and all the various services and products that a successful matrimonial ceremony would need. The credit criteria and the term may vary based on the amount needed and financial status of the people involved.
Payday or Cash Advance Loans is a fast growing market because it usually requires the least of credit criteria used for loan approvals. One can have bad credit for a quick and instant loan. Just having proof of income, proof of identity and a checking account is all that is necessary to secure funds. Even today many have checking accounts without checks one can still obtain a cash advance by asking their bank to produce a one time check to give to the payday loan agency. Many payday loan companies and stores can get approval with no faxing of documents as they utilize other means for proof of income. Although payday loans come with very high annualized interest rates they sometimes are the only source of emergency cash loans for those in need.
Automotive, Motorcycle, RV (recreational vehicle) and Boat Loans - These personal consumer loans are usually not signature only loans but asset based loans. In other words a financial lien is placed against the asset to secure a loan to purchase or refinance the car, boat et al. These consumer loans may sometimes require a down payment of five to twenty-five percent to secure enjoyment and use of ownership. Because these are not funds that are already available as with credit cards they come with a "loan term" from one to six years depending on the choices of the consumer, the marketplace and the credit status. The interest rates can range from very low usually offered by manufacturers of cars, motorcycles, RV's (recreational vehicles) and boats to very high if the borrower uses a credit card, a finance company or a "buy here - pay here" lender - or the car dealer who finances the purchase of the car by giving the borrower a term of months and years to pay the balance of the loan off.
Business Loans
SBA (Small Business Administration) Loans are loans that are given to small businesses which are not able to qualify for a loan from a financial institution for various reasons from lack of business history, lack of collateral to "secure" the loan or not having an adequate credit history. The SBA is not a direct lender but acts as an underwriter on behalf of the bank that funds the loan for the business entity. If the borrower defaults on the loan the SBA will pay the bank a percentage of the balance for taking the financial risk to loan the funds to the business. There are various types of SBA loans which will not be covered in this article but a future article will explain in more detail.
Conventional Business Loans are loans that are either unsecured meaning no asset is used to approve the loan or secured and called "asset based loans" where assets from inventory, equipment, accounts receivable or real estate are used for underwriting for loan approval. Conventional business loans are given to business entities that have great banking relationships, established business credit history with trade lines with other businesses they do business with and good standing with various credit reporting entities like Dun & Bradstreet. There are short term loans with interest only payments with the balance due at the end of the loan usually referred to as a "Balloon Loan". There are also longer term loans that are fully amortized (principal and interest in each payment) paid over one to five years or more.
Equipment Leasing is a financial instrument which technically is not a loan. Meaning based on tax ramifications and who owns the equipment - leasing is just that - leasing an asset owned by another entity. Leases are usually from large corporations or a bank. The lease term can vary from one to five years or more and there usually are tax benefits to the business entity in leasing new or used equipment.
Equipment Sale Leaseback is a transaction to use equipment that is already owned by the business or municipal entity to secure funds for the present need for operations. The term can vary from one to five years and the amount of funds can vary based on credit history and a percentage of the fair market value of the equipment. The company then in turn leases the equipment back in usually a monthly payment. The company or the lessee normally has different choices on what they want to do with the equipment at the end of the term. They can roll the lease transaction into newer more updated equipment or software. They can buy the equipment for one dollar or ten percent of the fair market value of the equipment.More and more companies are leasing today as opposed to paying cash or using bank lines or loans.
Merchant Cash Advance is used by businesses that need fast cash and can't qualify or don't want to go through the process of getting bank approval for needed funds. A Merchant Cash Advance is also not a loan product but it is the selling of assets or credit card receipts at a discount. In other words the Merchant Cash Advance company buys the credit card receipts and then attaches a fee usually every time the business "batches", settles or closes the day's or week's sales until the funds advanced are paid off. There is no term with merchant cash advances as it is not a loan so there is no set payment amount or period. The paying off of the advanced funds vary based on a the credit and debit card transactions of the day or week.
Factoring Accounts Receivable Invoices enables a business entity that normally has to wait 30 days or longer to be paid by other businesses or governmental entities. Again factoring is not technically a loan but a selling of invoices at a discount for cash now. In a typical transaction the company applies with a Factoring Company and the company looks primarily at the credit of the other business or governmental entity that the company is doing business with. Based on that as long as the client of the company is a solvent business or government agency the invoices are bought and funds are dispensed to the business usually within three days of due diligence on the company they are transacting business with. In other words the funds are dispensed after there is a credit check and processing of the other company. The dollar amount that is advanced can vary from fifty percent of the invoice to eighty or ninety percent depending on various factors such as the size of the invoice to the credit criteria of the other company or governmental entity whether it is a city, county, state or federal agency.
Medical Factoring is a financial transaction that benefits medical entities like hospitals, clinics and various health care professionals that have to wait to receive funds for services performed on patients. Like Factoring and Merchant Cash Advances Medical Factoring is the selling of assets in this case invoices for cash now. In many instances the health care industry receives payment from third party entities like insurance companies, Medicaid and Medicare and state entities that provide funds for those in need of medical procedures. The medical facility or professional in turns sells the invoice(s) on a on going basis or one time for cash now. Once there is an interest is selling the receivables then a Factor steps into analyze the billing so that funds can be advanced. This process can vary in length but is usually shorter in length than the process of getting bank financing.
Contract and Purchase Order Funding allows companies to bid on large projects for governmental agencies, hospitals, universities, prison systems and municipalities or also to sell to larger corporations even if the business does not have the credit or bank approval or the wherewithal to service or fulfill a large contract order. Similar to Factoring which works hand in hand with Purchase Order Funding it is not a loan but a simultaneous transaction that involves advancing funds based on the credit of the governmental agency or larger company and the size of the contract. The funds that are advanced are for the cost in completing the order of products or performing services. So the profit that will be gained is not advanced but the costs as in raw and finished material, transportation, production, labor, expertise and any other costs involved in completing the contract. Once the contract is completed or once an invoice is ready to be sent to the client a factoring company which is sometimes owned by the same company buys the invoice at a discount and the funds that would normally be advanced to the company are usually used to settle the amount advanced for the material and other services that were needed to complete the order. Contract and Purchase Order Funding usually requires large transaction amounts as opposed to factoring that can be utilized for invoices as small as one hundred dollars. With the use of Contract and Purchase Order Funding companies that were locked out of the process of bidding on large contract s may become players in multi-million dollar deals.
Commercial Real Estate Sale Leasebacks are similar to Equipment Sale Leasebacks featured in this article. Instead of utilizing owned equipment to secure cash when bank borrowing is not wanted or not available the commercial real estate is used to access funds now. This can vary from office buildings, medical buildings, retail franchises, industrial buildings and manufacturing to large utility plants. This frees up cash "locked" away in real estate. Many entities find that at the present time the business they are in whether it is retail, manufacturing or another field that the holding of commercial real estate is not in their best financial interest for now. They prefer to put to use funds for their industry. So a retailer selling retails goods decides to focus on the retail operations and to lease the space because that real estate when factored into a myriad of calculations does not fit their financial goals during the present time. Yes the ownership of commercial real estate is an asset and can be used as a security for a loan but may also be viewed as a fixed non-performing entity that does not meet the needs of the business, organization, group or individual that owns the building. Commercial Real Estate Sale Leasebacks are another form of getting access to funds and has increased over the years.
Fast Easy Bad Credit No Credit Check Payday Loans Offers local loans with lenders in most states including but not limited to the following cities: Los Angeles, Pasadena, Long Beach, Orange County San Diego Fresno Riverside Las Vegas Henderson, Reno, Boulder City Houston, Huntsville, Anchorage Miami Beach, Orlando, Jacksonville Phoenix, Tucson, Flagstaff, New Orleans, Leesville, Baton Rouge, Shreveport Detroit, Lansing, Flint, Houston, Dallas, El Paso Amarillo, Galveston, Beaumont, Austin, Denton, San Marcos Tyler, Jasper Corpus Christi, Milwaukee, Madison, Green Bay, Racine, Eau Claire, Appleton, Kenosha, Shorewood and More!.
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By: Ralph Bellamy Jr
Thursday, August 2, 2018
High Risk Loans - 8 Things You Should Know About High Risk Loans
Every day, more people are losing their jobs and finding themselves in tough financial times. If you have ever been among these unlucky people, you may have damaged your credit rating and feel like you may not be able to get a loan. While it may be tough to find them, loans exist that are designed for people in just this situation. While it is sad that so many are struggling, it means that there is more demand for high risk personal loans, especially unsecured personal loans, and these loans are more available to people who might not have qualified for loans in the past. Bearing this in mind, here are the 8 things you should know about high risk loans:
1. Payday Loans are Expensive
You probably already know that payday loans should really only be a last resort. Unless you are absolutely sure you can repay them in full, they will typically cost you far more than they are worth. When extended for a full year, a $100 payday loan can have almost an 800% APR. That is astronomical compared to the rates that banks and even credit cards charge.
2. Payday Loans are Easy To Get
You are a grown-up, and only you can decide if it makes sense to get a payday loan. If you decide to apply for a payday loan, you will usually need to bring your ID, proof of income, a bank statement, and the date of your next pay day at a minimum. Some places also require you to have a certain level of income before they will give you a pay day loan. The good news about pay day loans is that you can get them the same or next day in most cases and there is typically no credit check, so your credit doesn't have to be good to qualify for one.
3. Payday Loans do not Improve Credit Scores
You would think that a loan paid off in a timely fashion would help you build your credit. This is not always the case. Since these loans are not usually reported to the major credit bureaus, they do not have a bearing on your credit score.
4. You Can Get a Loan Online
One of the best places to find a high risk personal loan is online, and you can get an online loan from the comfort of your home. If you have a poor credit rating, it can be embarrassing to apply for a loan in person only to be turned down. Going online for your application, ensures that you do not have to put yourself in this position. Online Loans usually have low limits on the amount of money you can borrow, which might prevent you from taking on more than you can handle financially.
5. Tax Return Loans are Available
Known as Return Anticipation Loans (RALs), these loans are extended based on the anticipated amount of your tax return. Basically, they are cash advances with interest rates ranging from about 50% to over 500% APR. Keep in mind that if you file your taxes early, you can generally have your return within 8-10 days if you file electronically and use direct deposit. This is almost always a better option than a Return Anticipation Loan, but it is good to know that they exist.
6. Your Car Can be Used as Collateral
Known as Car Title Loans, these are secured loans that use the title of your car as collateral. Often, the loan is for less than the car itself is worth, so it is essential that you are able to pay back the loan because the lender can take possession of your car if you are unable to pay in a timely manner. You are going to need your car, right? So, be very careful if you decide to go this route. The one positive is that secured loans such as this often have lower interest rates than payday loans.
7. There are High Risk Loan Stores
You can sometimes qualify for high risk personal loans of thousands of dollars or more if you go to one of the personal loan stores that are available in some states. With the credit crunch in the United States, there are fewer of these stores than there used to be, but a few still exist. High risk personal loan stores specialize in giving loans to people with bad credit. These are not pay day loans that you pay back in a couple of weeks. These are genuine, non-collateral, unsecured personal loans that you pay back over several years. Sometimes, you can get a lump sum loan, and other times you may qualify for a line of credit where you free up more money to spend as you pay off your loan(it's like revolving credit). The interest rate is typically high, but you have longer to pay it off, and it looks good on your credit report to have a higher loan awarded to you. These will probably take some work to find, but may be one of your best options.
8. Lenders Take a Risk, Too
Because these types of loans are really high risk to lenders, the fees and interest rates are typically higher for online unsecured personal loan options than they are for traditional loans. As such, you will probably have to pay more just to acquire one. Keep in mind that these are high risk personal loans to individuals whose credit doesn't warrant better terms, but better terms are often available to those with better credit scores or some sort of collateral.
Other Things to Keep in Mind About High Risk Personal Loans
One more thing that may make the process of searching for a high risk personal loan simpler is to search in your state first. The regulations for high risk loans are different in many locations and lenders may be more apt to loan to people located closer to them. Having said that, there are many financial products online and available anytime, and it will just take a little of your time and patience for you to find the right one.
Once you've decided which option is best, make sure that you do some research first and compare the interest rates of each lender. This will keep you from taking a loan that could cost you more money than you realized it would.
For more information regarding high risk loans [http://www.highriskloans.info/], Please visit [http://www.highriskloans.info/].
By: John R Beard
1. Payday Loans are Expensive
You probably already know that payday loans should really only be a last resort. Unless you are absolutely sure you can repay them in full, they will typically cost you far more than they are worth. When extended for a full year, a $100 payday loan can have almost an 800% APR. That is astronomical compared to the rates that banks and even credit cards charge.
2. Payday Loans are Easy To Get
You are a grown-up, and only you can decide if it makes sense to get a payday loan. If you decide to apply for a payday loan, you will usually need to bring your ID, proof of income, a bank statement, and the date of your next pay day at a minimum. Some places also require you to have a certain level of income before they will give you a pay day loan. The good news about pay day loans is that you can get them the same or next day in most cases and there is typically no credit check, so your credit doesn't have to be good to qualify for one.
3. Payday Loans do not Improve Credit Scores
You would think that a loan paid off in a timely fashion would help you build your credit. This is not always the case. Since these loans are not usually reported to the major credit bureaus, they do not have a bearing on your credit score.
4. You Can Get a Loan Online
One of the best places to find a high risk personal loan is online, and you can get an online loan from the comfort of your home. If you have a poor credit rating, it can be embarrassing to apply for a loan in person only to be turned down. Going online for your application, ensures that you do not have to put yourself in this position. Online Loans usually have low limits on the amount of money you can borrow, which might prevent you from taking on more than you can handle financially.
5. Tax Return Loans are Available
Known as Return Anticipation Loans (RALs), these loans are extended based on the anticipated amount of your tax return. Basically, they are cash advances with interest rates ranging from about 50% to over 500% APR. Keep in mind that if you file your taxes early, you can generally have your return within 8-10 days if you file electronically and use direct deposit. This is almost always a better option than a Return Anticipation Loan, but it is good to know that they exist.
6. Your Car Can be Used as Collateral
Known as Car Title Loans, these are secured loans that use the title of your car as collateral. Often, the loan is for less than the car itself is worth, so it is essential that you are able to pay back the loan because the lender can take possession of your car if you are unable to pay in a timely manner. You are going to need your car, right? So, be very careful if you decide to go this route. The one positive is that secured loans such as this often have lower interest rates than payday loans.
7. There are High Risk Loan Stores
You can sometimes qualify for high risk personal loans of thousands of dollars or more if you go to one of the personal loan stores that are available in some states. With the credit crunch in the United States, there are fewer of these stores than there used to be, but a few still exist. High risk personal loan stores specialize in giving loans to people with bad credit. These are not pay day loans that you pay back in a couple of weeks. These are genuine, non-collateral, unsecured personal loans that you pay back over several years. Sometimes, you can get a lump sum loan, and other times you may qualify for a line of credit where you free up more money to spend as you pay off your loan(it's like revolving credit). The interest rate is typically high, but you have longer to pay it off, and it looks good on your credit report to have a higher loan awarded to you. These will probably take some work to find, but may be one of your best options.
8. Lenders Take a Risk, Too
Because these types of loans are really high risk to lenders, the fees and interest rates are typically higher for online unsecured personal loan options than they are for traditional loans. As such, you will probably have to pay more just to acquire one. Keep in mind that these are high risk personal loans to individuals whose credit doesn't warrant better terms, but better terms are often available to those with better credit scores or some sort of collateral.
Other Things to Keep in Mind About High Risk Personal Loans
One more thing that may make the process of searching for a high risk personal loan simpler is to search in your state first. The regulations for high risk loans are different in many locations and lenders may be more apt to loan to people located closer to them. Having said that, there are many financial products online and available anytime, and it will just take a little of your time and patience for you to find the right one.
Once you've decided which option is best, make sure that you do some research first and compare the interest rates of each lender. This will keep you from taking a loan that could cost you more money than you realized it would.
For more information regarding high risk loans [http://www.highriskloans.info/], Please visit [http://www.highriskloans.info/].
By: John R Beard
Wednesday, August 1, 2018
Loans Guide
Many people are confused by the different types of loans available. Here is a helpful loans guide of the most common loans available today.
Bad Credit Personal Loan
A Bad Credit Personal Loan is a loan designed for the many people with a bad credit rating. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal. If you are a home owner with equity in your property, a Bad Credit Personal Loan can bring that normality back to your life. Secured on your home, a Bad Credit Personal Loan can give you the freedom, for example, to do the home improvements or buy the new car you really wanted. With a Bad Credit Personal Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.
Bridging Loan
A bridging loan as the name implies is a loan used to "bridge" the financial gap between monies required for your new property completion prior to your existing property having been sold. Bridging loans are short term loans arranged when you need to purchase a house but are unable to arrange the mortgage for some reason, such as there is a delay in selling your existing property.
The beauty of bridging loans is that a bridging loan can be used to cover the financial gap when buying one property before the existing one is sold. A bridging loan can also be used to raise capital pending the sale of a property. Bridging loans can be arranged for any sum between £25000 to a few million pounds and can be borrowed for periods from a week to up to six months.
A bridging loan is similar to a mortgage where the amount borrowed is secured on your home but the advantage of a mortgage is that it attracts a much lower interest rate. While bridging loans are convenient the interest rates can be very high.
Business Loan
A business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Business loans are generally available from £50,000 to £1,000,000 at highly competitive interest rates from leading commercial loan lenders. They can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term.
They are normally offered on Freehold and long Leasehold properties with Bricks and Mortar valuations required. Legal and valuation fees are payable by the client. A business loan can be secured by all types of UK business property, commercial and residential properties.
Car Loan
The main types of car loans available are Hire Purchase and Manufacturer's schemes. Hire purchase car finance is arranged by car dealerships, and effectively means that you are hiring the car from the dealer until the final payment on the loan has been paid, when ownership of the vehicle is transferred to you.
A Manufacturers' scheme is a type of loan that is put together and advertised by the car manufacturer and can be arranged directly with them or through a local car dealership. You will not be the owner of the vehicle until you have repaid the loan in full, and the car will be repossessed if you default on repayments.
Cash Loan
Cash Loans also known as Payday Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.
A Cash Loan can assist you in this situation with short term loans of between £80 and £400.
Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a Cash Loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.
Debt Consolidation Loan
Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
Secured on your home debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment - one calculated to be well within your means. With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.
Home Loan
A Home Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home loan.
The loan can be used for any purpose, and is available to anyone who owns their home. Home loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation.
With a Home Loan you can borrow from £5,000 to £75,000.
Home Improvement Loan
A Home Improvement Loan is a low interest loan secured on your property. With a Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and the amount of equity in the property that is to provide the security for the loan.
A Home Improvement Loan can help you with a new kitchen, bathroom, extension, loft conversion, conservatory, landscaping your garden or new furniture. You can even use it on non-house expenditure like a new car or repaying credit card or other debts.
Home Owner Loan
A Home Owner Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home Owner loan. The loan can be used for any purpose, and is available to anyone who owns their home. Home owner loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation. With a Home Owner Loan you can borrow from £5,000 to £75,000.
Payday Loan
Payday Loans also known as Cash Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.
A Payday Loan can assist you in this situation with short term loans of between £80 and £400.
Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.
Personal Loan
There are two categories of personal loans: secured personal loans and unsecured personal loans - See individual titles below. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan.
Remortgage Loan
A remortgage is changing your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender thereby saving money. A remortgage can also be used to raise additional finances by releasing equity in your property. You can borrow from £25,000 up to £500,000. Rates are variable, depending on status.
Secured Loan
A secured loan is simply a loan that uses your home as security against the loan. Secured loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years. You simply select a monthly payment that fits in your current circumstances.
Secured Personal Loan
A Secured Personal Loan is simply a loan that is secured against property. Secured personal loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured personal loan; or, have a poor credit history. Lenders can be more flexible when it comes to Secured personal loans, making a Secured personal loan possible when you may have been turned down for an unsecured personal loan. Secured personal loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years.
Student Loan
A student loan is way of borrowing money to help with the cost of your higher education. Applications are made through your Local Education Authority. A student loan is a way of receiving money to help with your living costs when you're in higher education. You start paying back the loan once you have finished studying, provided your income has reached a certain level.
Tenant Loan
A tenant loan is an unsecured loan granted to those that do not own their own property. A tenant loan is always unsecured because in most cases, if you are renting your accommodation, you do not have an asset against which you can secure your loan. Tenants sometimes find that some loan companies will only lend money to homeowners. If you are a tenant you need to look for a company, bank or building society willing to give you an unsecured loan.
Unsecured Loan
An unsecured loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. The amount you are able to borrow can start from as little as £500 and go up to £25,000. Because you not securing the money you are borrowing, lenders tend to limit the value of unsecured loans to £25,000.
The repayment period will range from anywhere between six months and ten years. Unsecured loans are offered by traditional financial institutions like building societies and banks but also recently by the larger supermarkets chains. An unsecured loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.
Unsecured Personal Loan
An Unsecured personal loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments.
The amount you are able to borrow can start from as little as £500 and go up to £25,000. The repayment period will range from anywhere between six months and ten years. An Unsecured personal loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.
Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk [http://www.directonlineloans.co.uk/] website.
By: Bill Stone
Bad Credit Personal Loan
A Bad Credit Personal Loan is a loan designed for the many people with a bad credit rating. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal. If you are a home owner with equity in your property, a Bad Credit Personal Loan can bring that normality back to your life. Secured on your home, a Bad Credit Personal Loan can give you the freedom, for example, to do the home improvements or buy the new car you really wanted. With a Bad Credit Personal Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.
Bridging Loan
A bridging loan as the name implies is a loan used to "bridge" the financial gap between monies required for your new property completion prior to your existing property having been sold. Bridging loans are short term loans arranged when you need to purchase a house but are unable to arrange the mortgage for some reason, such as there is a delay in selling your existing property.
The beauty of bridging loans is that a bridging loan can be used to cover the financial gap when buying one property before the existing one is sold. A bridging loan can also be used to raise capital pending the sale of a property. Bridging loans can be arranged for any sum between £25000 to a few million pounds and can be borrowed for periods from a week to up to six months.
A bridging loan is similar to a mortgage where the amount borrowed is secured on your home but the advantage of a mortgage is that it attracts a much lower interest rate. While bridging loans are convenient the interest rates can be very high.
Business Loan
A business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Business loans are generally available from £50,000 to £1,000,000 at highly competitive interest rates from leading commercial loan lenders. They can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term.
They are normally offered on Freehold and long Leasehold properties with Bricks and Mortar valuations required. Legal and valuation fees are payable by the client. A business loan can be secured by all types of UK business property, commercial and residential properties.
Car Loan
The main types of car loans available are Hire Purchase and Manufacturer's schemes. Hire purchase car finance is arranged by car dealerships, and effectively means that you are hiring the car from the dealer until the final payment on the loan has been paid, when ownership of the vehicle is transferred to you.
A Manufacturers' scheme is a type of loan that is put together and advertised by the car manufacturer and can be arranged directly with them or through a local car dealership. You will not be the owner of the vehicle until you have repaid the loan in full, and the car will be repossessed if you default on repayments.
Cash Loan
Cash Loans also known as Payday Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.
A Cash Loan can assist you in this situation with short term loans of between £80 and £400.
Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a Cash Loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.
Debt Consolidation Loan
Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
Secured on your home debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment - one calculated to be well within your means. With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.
Home Loan
A Home Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home loan.
The loan can be used for any purpose, and is available to anyone who owns their home. Home loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation.
With a Home Loan you can borrow from £5,000 to £75,000.
Home Improvement Loan
A Home Improvement Loan is a low interest loan secured on your property. With a Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and the amount of equity in the property that is to provide the security for the loan.
A Home Improvement Loan can help you with a new kitchen, bathroom, extension, loft conversion, conservatory, landscaping your garden or new furniture. You can even use it on non-house expenditure like a new car or repaying credit card or other debts.
Home Owner Loan
A Home Owner Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home Owner loan. The loan can be used for any purpose, and is available to anyone who owns their home. Home owner loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation. With a Home Owner Loan you can borrow from £5,000 to £75,000.
Payday Loan
Payday Loans also known as Cash Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.
A Payday Loan can assist you in this situation with short term loans of between £80 and £400.
Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.
Personal Loan
There are two categories of personal loans: secured personal loans and unsecured personal loans - See individual titles below. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan.
Remortgage Loan
A remortgage is changing your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender thereby saving money. A remortgage can also be used to raise additional finances by releasing equity in your property. You can borrow from £25,000 up to £500,000. Rates are variable, depending on status.
Secured Loan
A secured loan is simply a loan that uses your home as security against the loan. Secured loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years. You simply select a monthly payment that fits in your current circumstances.
Secured Personal Loan
A Secured Personal Loan is simply a loan that is secured against property. Secured personal loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured personal loan; or, have a poor credit history. Lenders can be more flexible when it comes to Secured personal loans, making a Secured personal loan possible when you may have been turned down for an unsecured personal loan. Secured personal loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years.
Student Loan
A student loan is way of borrowing money to help with the cost of your higher education. Applications are made through your Local Education Authority. A student loan is a way of receiving money to help with your living costs when you're in higher education. You start paying back the loan once you have finished studying, provided your income has reached a certain level.
Tenant Loan
A tenant loan is an unsecured loan granted to those that do not own their own property. A tenant loan is always unsecured because in most cases, if you are renting your accommodation, you do not have an asset against which you can secure your loan. Tenants sometimes find that some loan companies will only lend money to homeowners. If you are a tenant you need to look for a company, bank or building society willing to give you an unsecured loan.
Unsecured Loan
An unsecured loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. The amount you are able to borrow can start from as little as £500 and go up to £25,000. Because you not securing the money you are borrowing, lenders tend to limit the value of unsecured loans to £25,000.
The repayment period will range from anywhere between six months and ten years. Unsecured loans are offered by traditional financial institutions like building societies and banks but also recently by the larger supermarkets chains. An unsecured loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.
Unsecured Personal Loan
An Unsecured personal loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments.
The amount you are able to borrow can start from as little as £500 and go up to £25,000. The repayment period will range from anywhere between six months and ten years. An Unsecured personal loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.
Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk [http://www.directonlineloans.co.uk/] website.
By: Bill Stone
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