Archive for the ‘Loans’ Category

Check Out The Types Of Loans

Sunday, August 21st, 2016

various types of loansTypes of loans vary from one to another, the reason behind that is that each loan is designed to have a different intention and different use. Types of loans differ from the rate of interest or they also differ from length of the time of loan or even by the fact when the payment is due and many such other reasons. It depends upon your need and your ability to repay as to which type of loans you should opt for. Before checking out the types of loans, first of all you need to decide the reason for which you want to take a loan and then check the related options for the types of loans. Here are some of the types of loans you can opt for.

  • Student loans

Student loans are such types of loans which are offered to the college students and even to their family members so that they can cover the higher education costs of theirs. There are basically two main types of loans private student loans and federal student loans. When compared both of them federally funded student loans are better as they usually have lower rate of interest and they also have borrower friendly terms and conditions to be followed.

  • Mortgage

Mortgages are also types of loans only and such types of loans are distributed by the banks. These types of loans are usually taken for buying homes and it is taken by those customers who cannot pay whole amount of the home up front. Mortgage is given on your home only. You have to mortgage your home and then only you will get the mortgage amount. Here if you fail to give the mortgage amount then your home will be taken back from you. As compared to all types of loans, mortgage has the lowest rate of interest and hence if you want to buy a home, you must go for mortgage and buy your home with lower rate of interest.

  • Auto loans

Auto loans are also similar to that of mortgage only. Here you have to put your vehicle as a security. Thus if you fail to pay the installments of your auto loans then you will have you lose your car or any other vehicle mortgaged. Such types of loans are offered either by the banks you can also get it from the car dealer. Usually loan from the car dealer is more favorable as the banks offer higher rate of interest and the overall cost would also be more. Hence if you are considering taking a car loan then try and take it from the car dealer only.

  • Personal loans

Such types of loans can be taken for any of the purpose. It can be either paying your bills or taking any new appliance or your homes renovation. Thus if you have any minor or major purpose or need of finance then you can opt for personal loans. Such types of loans are offered depending upon your credit history.

What happens to the student loan if the borrower dies?

Saturday, November 16th, 2013

student loanIf you act as a co -signer on a loan, you are responsible for making loan recompenses when the borrower is not capable to do so. If the borrower dies , you may have to continue making payments , although the phrases of the loan accord will determine whether there is any continuing obligations on behalf of the co -signer . Talk to a lawyer if you need legal advice about your rights and obligations as a cosigner. Co -signers; When you co – sign a loan, tells the lender that you will pay for the loan if the borrower fails to make payments. You also agree to have the loan that appears on your credit report, but usually does not get to use the product or the benefits of the loan. Every time I co – sign a loan, it is important that you read the terms of the background. The loan certificates should address what occurs in the event that the borrower or guarantor dies. In a few situations, for instance, the loan agreement may decide that the guarantor is liable to pay the remaining amount in case of death of the lender. In other situations, such as student loans, a creditor may agree to meet the loan in case of death of the borrower, while others do not.

What you should know before signing or guaranteeing a loan

The credit is a legal contract. While each contract is different, they all contain specific requirements for the amounts payable, interest rates, due dates and penalties for late payments. Commonly , credit contracts require that you either own , pay taxes and maintain insurance on an item (such as a car or home ) that may have been used to obtain a secured loan. By meeting the exact terms of the account, adds value to your credit history. Each month , lenders report to the credit reporting companies on account balances , accounts that were paid on time , accounts that were paid late and the bills that were not paid at all. If you fall behind on your payments, your credit will suffer, probably pay late fees and in the future will cost much more to get new credit. Even if you catch up on your payments, late payments continue inquiring as part of your credit history. The lender also has the right to sell the collateral if you default on the loan payments. In some cases, sell the collateral does not generate enough money to pay your debt. In this instance, you may be required to continue paying the loan even if you do not own the article.

Payday Loans: A Brief Discussion

Friday, August 23rd, 2013

Payday Loans, loansMoney is one of the most important factors in our lives. Practically, almost everything is based on money. We earn, we save, we spend, and we desperately try and keep enough to save up for emergency-situations as well. However, there is nothing wrong if you face a cash crunch at some point in your life. It is something very common and almost everyone on this planet has faced a cash crunch once or even more than once at least at some time in his or her lives. It’s natural and understandable. It’s not always possible to have money ready at hand every month or on some day. You might be a little low on cash, especially if you are a student or if you have just started working. The key is to do the right thing and manage the situation in a mature manner to get through such a tough time.

The first thought, which will come to your head, is borrowing money. You can ask friends or family to lend you some cash until you get through this time and then you can pay them back. Nevertheless, if this is not an option and you don’t have enough saved up in your account and your payday is far away, then you can go for a payday loan.

If you need some cash for any kind of emergency like a rent payment or bill payment or for medical emergencies or any other monetary emergency, payday loan is your safest bet. It’s legal in most states and there is a limited amount of money, which you can borrow from the company or payday lender.

There are two major advantages of payday loans. One is that you will get the money within 24 hours or less and also there is no interest rate involved, the money will be directly taken out form your salary account on your next payday.

Loan Options for Senior Citizens

Wednesday, October 24th, 2012

senior citizen loanIf you are a senior citizen, then the best loan option which you have is reverse mortgage loan. This is the safest loan option which you can choose and it benefits senior citizens more specifically because of the form and type of loan here. There are many advantages of reverse mortgage and you should know all about it before actually taking out a reverse mortgage. With the help of reverse mortgage, you can have a monthly steady financial support while keeping your home as collateral.

The interest rates can be negotiated and reduced in most loan agencies and it’s a completely stable loan type which sits retired people the best. The returns are excellent and with the help of that you can even invest as all this is tax free return. But before keeping home or property as mortgage, make sure you select a suitable time period for your benefit.

Restriction Against Payday Loans In Various States

Friday, October 12th, 2012

Payday loans, loansThe payday loans are the short term loans which are granted without any credit checking and within 24 hours of the application- hence the name payday loans. However, it’s to mention here that the payday loan restrictions vary in different states and here is a brief on some of them.

First of all, in California, the payday loan seeker is allowed to borrow the advance for up till 31 days yet when it comes to the loan amount your advance value cannot exceed over $300. The interest rate would be the 15 percent of the loan taken. Then, in Delaware, the loan seeker is approved f a 2 month deadline to repay his payday loan and the loan amount is stated to be within $500.

On the other hand, Georgia allows you to ask a loan value under 3,000 USD. In case of Missouri, the interest rates are extremely higher and would be around 75 percent of the loan granted.

Advantages of bridging loans

Tuesday, September 25th, 2012

bridging loans, loansThese days bridging loans are growing in popularity and people are going for it by the bulk. Bridging loans have definite advantages and here are some of the following:

• When you are applying for bridging loan, there is no need to produce any proof of income.
• Various discount rates are available. You can avail these discounts at ease.
• There are various credit card repair products available.
• Bridging loans help in the acquisition of property and houses, especially those that are bought and sold within a short span of time.
• These loans can be used to take care of bankruptcies and other credit problems.
• Bridging loans are the best options if you are looking for fast and convenient loans that do not involve much running about.
• These loans are perfect if you are looking for cash to make business acquisitions and increase your stock.

Things you need if you want to apply for a small business loans

Friday, September 21st, 2012

Small business loan, business loansWhen you apply for a business loan, you should plan it all out properly. Taking a loan is a big responsibility so you should know why you need the loan and exactly how much you take so that you can pay it back in time to avoid debts. Sometimes when someone starts out in the line of business they start on smaller ventures to stay on the safe side. Loans are taken in order to back up the start up money for that venture.

You should review your credit score first before you take out the loan. Always remember that if you are unable to pay your debts then your credit score will be affected badly. This could cause several problems for your financially for a long time so make sure that your financial status can handle the debt. Figure out your business plan properly so that you can understand how much loan you need. If you have any borrowing options consider those as well.

Business credit options for entrepreneurs

Saturday, August 11th, 2012

Business credit, business loansThe need of a start up capital cannot be denied when a person is trying to set up or expand a business. Not all of us are lucky enough to have plenty of cash at the very beginning. Therefore, it is very important that you acquire cash from the various organizations that offer monetary aid in return of interest.
One of the most common ways of acquiring loan for your business is the apply to banks. They are the safest option.

However, you will have to go through a number of steps in order to get these loans. You will have to have a good credit report. You will have to submit a proper application which should have the description of the proposal. It is important that your proposal is convincing. There are a number of private organizations that may offer you credit and they may or may not ask for collateral.

An Account On Guarantor Loans

Saturday, June 30th, 2012

Guarantor loans, loansGuarantor loans are accessible and inexpensive mode of borrowing. People with insufficient credit rating can get credit by way of guarantor loans. In today’s global economical condition it is very tough to avail credit especially for people do not have great assets to offer as collateral security. The basic idea behind guarantor loans is that the person applying for the credit does not have a brilliant credit rating needs only a bank account, an identity proof, and a relative or friend who shall sign the application as the guarantor.

This ensures that if the primary applicant is unable to pay the debts than the guarantor shall be liable to pay it of. For this purpose the guarantor should have a sound credit rating. There are certain disadvantages related. Not everybody finds someone to pay their debts in case they fail to do so and someone who has a good credit rating.

When to Choose Cash and When to Go For Credit

Monday, June 18th, 2012

Credit card, credit systemWhether to go for cash or credit? This is a very common question and there is obviously no doubt that credit is more portable and handy.

Credit card system refers to a system when you are in debt to the bank. Every time your card is swapped on a machine, you are in debt. Then why and when should you use a credit card? A credit card is very portable and easy to use. If you need to carry a lot of money at a time, then the card is more convenient as your purse is not designed to carry a large sum of money. If your purse is of the size of handbag then it is a different issue. If you lose your card by mistake then you can file a lost credit card report and immediately your credit card will be reduced to a piece of plastic. Now imagine if you lose your cash, what will you do? Credit card is much more easy and safe to use. But if you are going to buy any commodity of lower rates then you can use cash. Credit cards also give you a chance to win points which can help you to maintain a good credit record.