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Category: Loan

  • 7 Loan Options for People with Bad Credit Ratings

    7 Loan Options for People with Bad Credit Ratings

    Every day, so many people apply and get approved for both personal and business loans, however, a surprisingly large number of them gets rejected, as well. Most commonly, this is due to the bad credit score of the applicant that makes them into an unreliable investment prospect from the standpoint of the credit union. Unfortunately, developing a bad credit is not just something that happens as a result of negligence. A poor judgment, a small lapse in your schedule and even a lack of knowledge on this topic may lead you to develop a worse credit score than you deserve. Nonetheless, even in this scenario, all is not lost. Here are several loan options for people with bad credit ratings.

    1.      Secured loan

    The main reason why a person with a bad credit can’t get approved for a loan is due to the fact that a bank or a credit union doubts that they’ll return the borrowed money. This usually isn’t a problem with secured loans is due to the fact that they require a collateral instead. Getting a secured loan would require you to offer a valuable asset as a guarantee. Most commonly, it’s something like a property or a vehicle, while your investments may also be an option, in some cases. It’s also important mentioning that the repayment period of this loan is somewhat longer, which isn’t necessarily a good thing. A longer term means that you’ll be in debt longer, even though monthly payments will be somewhat lower.

    2.      A consolidation loan

    The next idea that you should consider is applying for a debt consolidation loan. In the introduction, we mentioned the phenomenon of having a bad credit score and this most commonly comes from a multitude of already existent loans. Things might get even worse, due to the fact that you’ll most likely have a problem to keep track of all the payment dates, interest rates and other factors revolving around these loans. Getting a debt consolidation loan can, therefore, resolve your short-term financial issues and help you manage your debt and your finances in a more efficient manner.

    3.      Loan from a personal acquaintance

    This particular idea is quite controversial, seeing as how it has some obvious positive and severely negative sides. On the positive side, a friend or a family member is not going to ask you about your credit score. Second, your previous reliability, in relation to them, might determine their willingness to lend you the money. The best of all is that you have the ultimate flexibility when it comes to agreeing on a payment plan. The problem is that you’re putting a relationship at risk. Aside from this, there’s only so much that your friends and family have to lend you, even with all the best intentions.

    4.      P2P lending

    Another viable option would be for you to go for a P2P (peer-to-peer) lending option. The benefit of this form of lending lies in the fact that there’s much less paperwork, even though some platforms have strict rules and qualification requirements, as well as the fact that your bad credit score won’t be a huge factor. The downside of this method lies in the fact that it might take a while until you receive the funds, while sometimes, you might be in a rush to get the money. Moreover, it’s highly unlikely that you’ll be able to receive all the funds you need from a single source, which means that you’ll have to look for multiple lenders.

    5.      HELOC

    The term HELOC stands for a home equity line of credit, which offers one an option to use the equity in the home that they have as a collateral for a loan. The advantage of this lies in the fact that you don’t have to own an entire home, seeing as how having a share of 20 percent in it may be more than enough. Another perk of going with this option lies in the fact that you get a lower rate (even lower than you would have with a credit card). On the downsides, once you’re done, you have to pay the closing costs and there’s always a small probability that the bank will cancel your line of credit. Most importantly, you’re putting your home on the line, which, although necessary, never feels quite right.

    6.      Bad credit loan

    It goes without saying that not all lenders abide by the same standards. Some companies are willing to be more lenient and grant loans even to those with not-so-shiny credit record. Of course, in this case, the terms under which you’re receiving the loan are not that great either, seeing as how the lender is also taking a greater risk. This usually means a somewhat higher interest rate, amongst other things.

    7.      Boosting your score

    Finally, if you’re not in that big of a rush, you could always set aside some time to boost your credit score. Pay off some of your debts, become more conscientious when it comes to due payments and work your way up towards boosting your rating. As we’ve already mentioned, if time is of the essence, this will not be a valid option, yet, it’s worth considering afterward either way.

    In conclusion

    At the end of the day, even though you do have options even with a bad credit rating, you shouldn’t neglect your credit score for too long. There’s a reason why this matters, seeing as how a future employer might check your score during the vetting process, which means that this will determine whether you get hired or not. Aside from this, your credit score might also play the role in your ability to get better terms for your insurance policy. Moreover, even though you have so many options with bad credit scores, with a decent one, you would have even more of them, which is alone a reason good enough to work a bit on this. Still, it’s more than reassuring knowing that not all is lost.

  • Which 5 Factors Determine Your Personal Loan Eligibility?

    Which 5 Factors Determine Your Personal Loan Eligibility?

    Going into a traditional bank and taking out a loan can feel like every part of your life is under the microscope. That’s because it is. Banks scrutinise every part of your financial history and repayment capabilities.

     

    This is part of the reason many people are rejecting typical forms of personal lending and embracing the increased freedom and flexibility newer forms of personal lending offer. Companies like Quickle offer borrowers a short-term personal loan, with just one application form and one bank statement.

     

    So what information do lenders use to determine your personal loan eligibility? There are the five factors that lending outlets use to decide if your application gets the nod or ends up in the bin.

     

    Credit Score

     

    The first thing a lender will look at is your credit score. This is a reflection of your repayment behaviour. If you have a strong history of paying back money you owe, in full, and on time, then there is a good chance you will do it again.

     

    On the flip side, if there are signs that you don’t usually pay bills on time, then the lender may doubt that you will be a reliable borrower this time around. If you are unsure of your credit score, there are plenty of resources online where you can find out.

     

    You Salary

     

    The higher your salary, the higher the likelihood of your personal loan approval. Most personal loans do not require collateral, as a result, the lender will want to know that your incoming payments are enough to cover your loan repayments.

     

    Your salary is also an indication of your job security. Lenders want to see that you have a reliable source of income, not one that fluctuates wildly each month depending on your professional performance.

     

    Employment History

     

    Just like your salary, employers will look at your employment history to determine your personal loan eligibility. Demonstrating that you have a strong history of employment, with minimal time spent without work, shows that you are a reliable worker and are not in danger of losing your job anytime soon.

     

    Your Employers Reputation

     

    Your employer’s reputation is another factor banks use to decide whether or not to approve your application. They want to know that your employers are not on the cusp of bankruptcy, or having financial problems that could force them to make job cuts in the future.

     

    The ideal borrower will work for a stable company, posting healthy annual profits. Not only will your employer’s reputation affect your approval, it can also affect the interest rate the bank will charge on your personal loan.

     

    Your Relationship with the Lender

     

    If your personal loan application is with an institution you already have a strong relationship with, this will increase your chances of approval.

     

    For the best chances of approval, apply to an institution with which you already have a good financial relationship. This may be a lender you have used before or an institution that you already have an account with.

     

    Knowing how the approval process works before you start your personal loan application will help you maximise your chances of approval.

  • What’s the Best Provider of Small Business Loans?

    What’s the Best Provider of Small Business Loans?

    Do you have a small business, but plan to make it bigger and better? Do you lack the funds to make that big step that will make you even more successful?

    A lot of people have a vision, but often need help to start off, which is why they turn to loan providers. In a lot of cases, those include banks and different financial institutions. Their offers often sound good at first glance. However, after a short while, you start noticing that the process of getting a loan is long, complicated, and includes a ton of paperwork. Not to mention that banks often have very strict criteria, and can even reject your application for the smallest detail that is not to their liking.

    Despite some pretty good perks, the complications that come along with this process can often discourage business owners. This is why so many great ideas never see their realization, while the existing business risk shutting down.

    Introducing Camino Financial

    Camino Financial is a company that has a goal of catalyzing economic growth in communities with low-to-moderate income. They do so by helping small businesses, and empowering them in order to create additional job opportunities and allow these small firms to grow and develop.

    The company thrives in finding a proper business loan for small businesses that need that little extra money in order for their business to reach its full potential. This is the company that understands your struggle and wishes to help you overcome the difficulties of a though period. They will help you learn about your funding options, and select a small business loan that will help you put your firm back on the map.

    Camino Financial allows you to get a small business loan through a quick and easy online process that is perfectly safe and reliable. Getting a loan has never been simpler, and you can get the necessary funds in less than 10 days after signing the loan contract. Best of all, you need no collateral in order to be accepted, and the entire process is done with almost no paperwork involved at all.

    All that really stands between you and your small business loan are your basic financial records and accepting the company’s terms.

    The company’s criteria are far more flexible than those of any traditional bank. Additionally, the terms we mentioned previously are primarily based on your own business’ cash flow, credit score, and the plans for the provided funds. As you can see, the requirements are truly minimal, and this is why Camino Financial is the best firm for getting small business loans.

    How to get a small business loan in only a few steps

    Getting funds in traditional banks is, as we mentioned earlier, a long and troublesome process. With Camino Financial, this process is narrowed down to only a handful of steps.

    The first thing that you need to do is make sure that you meet the necessary requirements. These include some very basic things. The first requirement is that your company needs to be properly registered, and you need to provide proof that your firm is operating for a minimum of 9 months. The second requirement includes your company’s income. To properly qualify for a loan, your business needs to earn at least $30,000 on a yearly basis. Alternatively, it must make $2,500 or more per month.

    The third and final requirement is that you need to be free of past due payments or other debt obligations that are still active. As you can see, the requirements are nothing special, and if you meet all three of them, that is all that you need to apply for a loan. All you need to do in order to get your funding is to follow these steps:

    Step 1: Apply online, and receive the company’s terms

    Applying for a loan with Camino Financial is as easy as it can get. You can do the entire thing online, via mobile-friendly loan application. The process only takes around five to ten minutes, and it requires absolutely no documentation. Simply submit your application without the fear of it impacting your credit score.

    Step 2: Study the terms and authorize the bank activity download

    This step is as simple as the previous one. You will receive pre-approved loan terms within a single business day, and a business loan specialist will soon contact you. Carefully review the terms and make sure that you understand them. After that, all you need to do is authorize the company to download the activity of your bank account in the previous six months.

    That way, the firm can verify your own business’ income, and confirm that you meet the necessary requirements. In case there is something that the company deems unclear, you may be asked to provide additional documentation, so keep that in mind as well.

    Step 3: Sign the contract and get your small business loan

    You are almost done with the entire process, and it only took a day or so by now. All that is left for you to do is to wait for one to eight more business days for your loan application to be properly reviewed. After that, if everything is in order, you will receive official approval. Finally, you will have to sign a mobile-friendly contract regarding the loan, which will arrive via email.

    That’s it! Nothing more is required, and your bank account will receive the funds in a matter of two business days. As you can see, the entire process can be done in no more than 10 days, which is a deal that you likely won’t get from any other bank or financial institution. All that the process takes is about an hour of your time in total.

    Ali Raza

    Ali writes for Camino Financial, an online lender focused on business loans. He is a freelance journalist, with experience in web journalism and marketing. He holds a Master degree in Finance and enjoys writing about cybersecurity, cryptocurrencies, and technology.

  • How to Get the Best Interest Rate on a Loan

    How to Get the Best Interest Rate on a Loan

    Even though the current period of economic uncertainty means making it more difficult for borrowers to get a good loan, it is still possible for lenders to lend, but it means that borrowers have to try hard to get the best loan rate. So, as a borrower, you will have to learn a few things about what affects the interest rate and how to get the best possible loan rate.

    What it actually the “best loan rate”?

    Of course, a loan may not be right for you for a number of reasons, but generally speaking, the best loan rate is the rate with the lowest APR, as you are bound to pay less as the rate loan gets lower. APR stands for Annual Percentage Rate, referring to the amount of money you’ll have to pay on the annual basis. It is based on the interest loan rate plus any potential fees you could be expected to pay upfront.

    How to start

    The first thing to do is to decide how much money you need to borrow and how long it will take you to pay it back. This way, you’ll be able to compare the conditions of different lenders for the same amount of money you need. You can also use a tool on a comparison site to try out different amounts of money and the time you need to pay it back.

    If you’re not satisfied with your credit score, check if there is anything you can do to improve it before you refer to a lender. It’s also highly important not to apply for several loans at once, as it hurts your credit score. So, instead of applying for various loans, it’s wiser to use quotation search (or ‘soft’ search) tools to tell you what products you would probably be accepted for and the great thing about them is that they can’t be seen by lenders.

    Also, be ready to shop around for different offers from lenders. Every lender will make you a unique offer, so don’t rush and accept the first loan that sounds ok – you may stumble upon an even better one, so be patient and do a thorough search.

    Lastly, you should know that different rates of APR depend on the amount of money you want to borrow. Essentially, the more money you want to borrow, the lower APR will be. But it’s possible to find just the right amount of money that will place you into the next APR bracket so that you get a bit more money than you need but with a considerably lower rate.

    1. The best mortgage rate

    The mortgage rate is mostly impacted by the current economy, which means you need to have a proof of your stable income and a verifiable down payment, as well as cash reserves. So, it’s smart to make a larger down payment or to decide to borrow less money, so that the loan rate gets lower.

    Another option is to pay an origination fee upfront or to pay discount points. They are both expressed in a form of a percentage of the whole loan amount and will lower the interest rate, but bear in mind you’ll have to increase the amount of money at the closing.

    2. Best student loan rate

    The government is responsible for setting the interest rates, while private student loans rates are mostly dependable on the prime rate. The good thing about student loan rates is that they are attractive for subsidized loans. Any qualified student can get the loan regardless of the credit score.

    In case you need a private loan, it’s best to get your credit report before you apply to avoid unpleasant surprises. Don’t waste too much time shopping around in that situation; instead, get several quotes as quickly as you can. Do it within a 10-day period because it could look like you are trying to get several loans, which will ultimately lower your credit score.

    3. Best vehicle loan rate

    It is possible to get good vehicle loans of various types if you, as with other lending products, manage to get a high credit score, which is important to lenders as they also use risk-based pricing. The interest rates will probably depend on the prime rate.

    The first thing to do is to correct any inaccurate information on your credit report but also to check websites on vehicle prices before you actually go to the dealer. It’s important to compare offers from various lenders, not just the manufacturer – you could be surprised but the difference in pricing.

    You’ll maybe notice that some vehicle manufacturers offer low-interest or even 0% interest on certain models, but would mean that you need excellent credit to qualify. Also, be aware of the fact that sometimes the advertised rate won’t always be the one you will be offered, but it could easily be a higher one, so don’t rush any decisions.

    4. Best personal loan rate

    Personal loan rates are similar to interest rates for credit cards, which are partially tied to the prime rate. It’s necessary to contact several lenders, both credit unions and traditional lenders. If you are a credit union member, you’ll probably get a more favorable loan rate as they care more about your overall financial situation that solely your FICO score that demonstrates your credit risk.

    In case you’re going for a traditional lender’s loan, it’s possible to get a good rate if you use collateral like home equity or a free-and-clear car title.

    Final comment

    Taking out a loan is a serious and often a long-term commitment. Once you get the money, you could be charged extra fees if you change your mind at some point. That’s why it’s completely necessary to be sure that taking out a loan is the best option for you.

    Once you’re sure of that, it’s important to be informed of all the ways to get the best possible outcome of getting the loan you need.

  • How to Negotiate a better Home Loan Interest Rate

    How to Negotiate a better Home Loan Interest Rate

    Buying a home is one of the most important, and exciting, things you are ever going to do.  Buying a home can also be terrifying.  It could be the first time you are asking the bank for a mortgage and it could be the first time you need to start engaging with home loans.  There are several things you need to do when you negotiate a mortgage, and the first is to make sure you get the cheapest interest rate.  It’s all about communication, confidence and negotiation.

    Here are a few ways to ensure you get the best interest rate when applying for a home loan. 

    Ask for a lower interest rate.

    When you are dealing with a bank or lending institution, ask questions.  Ask exactly how home loans work and ask how to get a lower interest rate.  You are making a big investment in buying a home and you deserve to get the best possible deal.  If you don’t ask, you won’t get it.  Forget your shyness and do not let the bank or lending institution intimidate you.  Studies have shown that almost 40% of people who asked their bank for the cheapest interest rate actually got it.  Don’t be scared!

    It’s a good idea to shop around for your home loan

    When you apply for your home loan, do your research. Apply to the bank or lending institution that makes most sense to you and that appeals to you. It may come on somebody else’s recommendation or it may be someone you know.  Remember, there is no harm in shopping around.  If you are unable to negotiate a decent home loan with your bank, try another bank.  Some banks or loaning institutions specialise in home loans and you may find one is more open to negotiation than another.  If you are having a rough time with the institution you have chosen to work with, tell them you are going to the opposition.  That may be how to get a lower interest rate and they may just make you a better offer immediately.

    Talk about bank fees and monthly charges

    When you take out a home loan you are also going to be subjected to monthly bank fees.  Sometimes these are not discussed.  At the same time as negotiating your mortgage, ask about hidden fees.  The institution must be up-front about bank fees and you can ask them to lower them.  You will find that home loans are always widely advertised by the banks, but the banks never talk about the ‘hidden extras.’  Ask about any other costs that you may not have thought about, ask for a better interest rate, and always ask about monthly charges and bank fees.  Negotiate all of these fees – they all make a difference in the long run.

    Compare home loans online

    It’s important to do your own research on home loans.  You can spend a fair amount of time at the bank or lending institution, but you can also do your research online.  Look at the various options, check interest and lending rates and see who offers the best deals.  Remember, check out the hidden fees too.  If you think you are not getting the cheapest interest rate from your bank, ask another bank.  Compare all your figures before you make a decision.  Remember you deserve to have the better interest rate and there is no harm in asking for it.

    Be sure in your decision

    When you do make a decision about your mortgage, be sure about it.  Switching from one bank or institution to another can be a costly exercise.  You want to make sure you are getting the best possible deal from the beginning.  Spend time doing your research, check on all the fees and charges, know that you are getting the cheapest interest rate, negotiate as much as you can, and then sign on the dotted line. You do not want to have any regret afterwards – it will cost you too much money.  Home loans are big business for the banks and lending institutions and they will want your business.  Make sure they look after you and remember, you are entitled to a better interest rate.

    Communication is key

    Buying a new home is a big deal and applying for a mortgage is a big deal. Unless you are in a huge hurry, take your time with negotiations.  Make a list of all the questions you have for your bank, and tick them off as you get answers.  Do your research and chat to people about the interest rates that they are paying.  Compare interest rates at the different banks.  Ask your bank about all the hidden costs and don’t forget to ask about monthly fees.  Also, ask about changes in interest rates.  You don’t want to sign up for one rate and find out a month later that it has jumped by a few percent.  That is why you want the cheapest interest rate from the very beginning.  Talking, doing your research, asking questions and communicating with your bank is how to get a lower interest rate.  Home loans can be tricky to deal with.  You want a bank, or lending institution, that will guide you all the way.

    Trust your instinct

    Our last point is a salient one.  You want a bank or lending institution that you feel comfortable with. Imagine if you don’t have to beg for the cheapest interest rate! Imagine if you are offered the better interest rate from the very beginning.  That would be the most ideal situation.  Home loans can be stressful and the best bank or institution is the one that helps you, offers you advice and genuinely has your best interests at heart.  Sure, you may still have to negotiate a little, and yes you must always ask for the better interest rate, but go with the money lenders that make you feel good, secure and confident in the decisions you are making.

    Author’s bio:

    Biljana is Digital Marketing Manager for BestFind. BestFind is an Australian comparison website for personal and business financial products. We make it our mission and goal to provide the simple, comprehensive and transparent data for financial products from many of Australia’s financial institutions.

  • Household Money Saving Tips You Need to Know

    Household Money Saving Tips You Need to Know

    Sometimes, it seems almost impossible to make ends meet. When bills start to pile up, and we’re falling behind, that’s the only time we start to think about saving money. But that’s easier said than done, and if you don’t make a conscious effort to save, money disappears quickly.

    Even if you go online to look for money-saving tips but are not willing to make sacrifices, you’ll still have a difficult time making ends meet. So, if you’re tired of stressing about money, there’s no better place to get started than in your own home.

    There are plenty of ways to save money by following these simple hacks you can do around the house. Over time, the money you save can be allocated to making those crucial payments like mortgage, credit cards, student loans, or car loans in Adelaide.

    Always remember that there’s no better time to start saving than the present. The sooner you start saving, the better off you’ll be. Even if you’ve been falling behind your monthly bills, it will be easy for you to catch up. So, check out these household money-saving tips we’ve listed for you.

    Don’t forget to unplug.

    In a typical household, you’ll find lots of electronic devices lying around that are left unplugged. Even they are turned off, many people don’t realise that these appliances are still consuming electricity. The quick solution is to make sure they are both turned off and unplugged when not in use.

    Replace old light bulbs.

    Are you still using those old school incandescent light bulbs around your house? You may want to replace them with a more energy efficient light bulb as those last much longer and can save you as much as80 percent on your electricity bill.

    Another way you can save is by using natural light. That’s right. When it’s bright and sunny outside, just open those windows and tie your drapes and let that warm, natural light inside your home.

    Pack lunch.

    I’m a big fan of bringing my own meal to work. Not only will I save more money, but I can also eat whatever food I want. If you’ve decided to eat healthy food, it’s easy to plan your meals for the week. If you prepare your own meals every day instead of always dining out, both your wallet and waistline will thank you for it.

    Do some minor repairs.

    You don’t have to be an expert handyman to perform basic repairs around the house. But if you learn how to fix simple things, like a leaky faucet or seal up cracks on your roof, you can save literally hundreds of dollars every year on utilities and service fees, instead of hiring a professional to do those repairs for you.

    Reduce your power consumption.

    Do you spend a lot of time watching TV or surfing the Web? If so, you should consider doing other activities like reading a good book. You can go to the nearest library and borrow some good books you’ve always wanted to read but never had the time to do so.

    Another thing you can do is to exercise. That’s right. We’re not saying you should go to the gym and spend money on membership fees. No. You can work up a good sweat by jogging or doing some basic routines, like push ups or sit ups, which don’t require fancy gym equipment.

    Saving money doesn’t have to be hard. With just a few common-sense hacks and dedication, these simple hacks will make a positive impact on your household budget. And if you have your own clever ways to save money in your own home, we’d love to hear from you. Please leave us a comment so that other people may also benefit.