There are TONS of credit card sites that allow you to apply online for credit cards. Some of them give good side-by-side comparisons or offer services to unique markets that make them stand out. However, we’ve found another interesting and, from what we have seen, quite useful, approach by a website offering credit cards.
This website includes an in-depth blog as part of their services. The posts that feature particular cards are useful in that they detail all of the information on a particular credit card offer and also explain exactly what kind of applicant would receive the most benefit from a particular offer. There is a notation if the card requires very good credit in order to be approved, saving time for unqualified applicants. Some cards provide special benefits for people living or working in a particular city.
However, we especially enjoyed the blog entries with general credit information. The explanations were easy to understand and the issues covered were those that affect many consumers. For example, does your spouse’s late payment affect your credit? (It can if you have a joint account, otherwise no.) Is it a good idea to have back-up credit cards? (It depends … especially on how you apply for them.) What is piggybacking? What exactly is encoded in that magnetic strip? Can I just keep applying for free initial interest cards and transferring the balances? There were dozens and dozens of informative articles on topics like these in the blog, and we found it to be quite useful and informative.
There is even a bit of humor on the blog (although admittedly we wouldn’t feature how to make a prison shank from a credit card, even if we were joking). However, the main benefit is in the large quantities of information that help with topics such as building a good credit score, managing debt responsibly, and understanding how the credit industry works. Overall, we really enjoying visiting their blog, and can recommend it to our readers.
With the advent of the growing network of cell phone service providers and carriers, there is a new opportunity cropping up for many landowners to easily earn lease income. Cell companies are leasing land (or in some cases, space on top of buildings) on which to erect cell towers, paying the owners a lease fee in consideration. The industry promises to be one involving a lot of flux, however, especially recently as a number of cell service providers merged and so eliminated some newly-redundant towers at the same time as areas under service have grown exponentially, so we have seen some opportunities fizzle while others increase. If you have considered leasing space to a cell service provider, or would like to approach one for the sake of making lease income, first learn all you can about the industry in its current state. You may also want to consider seeking information and/or help from an advocacy group dedicated to cell tower leasing. A number of programs are offered, including rent continuation programs that will continue to pay your lease rentals in the event the lease is terminated without cause.
We’ve talked about payday (cash advance) loans, but there are other options for personal short term loans. Widely available online from a number of companies, there are some important differences between personal unsecured cash loans offered on a short-term basis and traditional payday loans.
One important advantage for your bottom line are the interest rates. While we have discussed some financial crises that may arise in which it can make sense to take out a payday loan, one should still consider the interest rates and seek out all possible options to compare them. According the Wikipedia, the interest rates on payday loans, which typically include a repayment requirement of $115 to $130 per $100 borrowed for a two-week period will translate into an annual percentage rate of 390% to 780%.
Companies offering payday loans state that it isn’t reasonable to list their interest rates as yearly rates, because they do not offer such long-term loans. It is true that it is essentially impossible to roll over these loans into the longer term, but it can be possible to initiate a number of loans back-to-back to essentially create a longer-term loan, if one can afford the additional fees with each new loan. While payday and cash advance loans are not available as year-long loans, the only way to actually compare different loans offered is to figure the interest and fees over a longer term so that you are able to see the real differences between various lenders.
Compare these rates to ThinkCash loans, which are short term personal loans offered from between 25% up to as much as 75% lower on overall interest charges. ThinkCash loans are offered at varying rates, depending upon the amount borrowed, the term of the loan, and the borrower’s credit rating, and range from 87% to 365% APR, which is a significant savings over the typical payday loan rate.
Remember that short term loans of any type will require higher interest rates than long-term loans. They are generally unsecured and processed quickly, both of which will serve to increase the interest rate because of the risk and the expense to the lender, and that is only fair and to be expected.
However, on the other hand, competition among lenders is often keen, because there are so many sources out there vying for business. This is especially apparent online, which opens the door for many lenders to offer services to consumers they would not otherwise be able to reach. Because of this intense competition, rates are lower than they might otherwise have been. The opportunity to select a lender benefits the consumer by making it more likely that they receive the loan they seek, and giving them the opportunity to choose a better interest rate as well.
With all that being said, short term personal loans are still higher in interest than other options that may be available to the consumer. For that reason, just as we have discussed before, we encourage the borrower to explore all options available when a loan must be taken out immediately and choose the best one for their personal situation, taking into account all factors, including interest rate, ability to repay on schedule, ability to secure a loan from that lender, associated fees and penalties, and any other options available.
Of all these factors, the one most important to many consumers is the ability to repay the loan according to the lender’s stipulations without causing further financial difficulty. If taking out a loan puts the consumer in deeper financial trouble, taking out another loan will the the inevitable next result, and adding more fees and interest on top of those already accrued will lead to another loan, until eventually the borrower is unable to repay the loans. For this reason, flexibility in repayment schedules is of greatest importance.
This is one area where payday loans typically offer very few options, and the very feature that causes so many problems for consumers who take out payday loans without making sure of their ability to repay them according to schedule without further compromising their financial position. ThinkCash offers the option of installment payments. A loan such as this can represent a much safer one for the borrower, making repayment according to the agreed-upon terms much easier and more likely, which will help to rebuild credit rather than destroying it.
It is also important to seek a lender that will allow the loan to be repaid early without a penalty if it becomes possible for the borrower to do so. Again, companies such as ThinkCash allow repayment on time or early, according to your own choice at the time, with no extras fees or penalties, giving you more flexibility in handling your finances.
When you are dealing with a financial emergency, it may be tempting to take the first available option. However, if it is at all possible, it is better to research at least a few different kinds of options before making a decision. Protecting your financial future is the goal and reward of careful decision-making.
Ideally, every college applicant would have a fully matured college fund in place to pay for necessary expenses when the time comes, but in reality, that seldom is the case. With the cost of college these days, parents generally need to start saving soon after the birth of their child, and put fairly significant amounts on deposit each month. There are several strategies to develop a strong college fund, but for the time being we are going to address the situation where no fund or an insufficient one exists.
One of the first steps, which should be undertaken during high school, is applying for any potentially available scholarships. Be sure to talk to the financial aid office at schools you are considering for available options. The next source to consider is federal student loans, like Staford or Perkins loans. Parent’s PLUS loans can also be pursued. The next option is private loans, which should include a cosigner if possible if the applicant is a student with no established credit, even if the loan can be approved without one. (Having a cosigner will probably reduce the associated interest rate.) As much of the expenses as possible should be filled from the first options mentioned above, and continue down the list until the need is met.
Another important factor is to keep college costs as low as possible. One way to do this is to attend a local or at least in-state school in order to avoid out-of-state tuition. By seeking a college near the parents’ or some other relative’s home that will allow the student to live there during the college years, a great deal of money can be saved on dorm costs or other room and board. Web resources are available to locate colleges in a certain area, such as schools in St. Louis.
Another way to save money is to purchase used textbooks. Most college bookstores deal in used books as well as new, and many colleges have a used bookstore nearby. It is also worth checking online sources of used books such as Half.com, Alibris, and even eBay.
If it is not possible for the student to live with parents or other family, consider housing that offers only what is needed, like a studio apartment, or perhaps sharing an older home or apartment with several other students. Kitchen facilities are important, however, as the cost of eating out will significantly increase costs. Transportation can be a financial factor as well, so make sure economical transportation is available, and consider the distance from the college.
If necessary, the student may need to consider working in order to finance part of their education, although care should be taken to assure that this will not damage the ability to pursue education effectively. Certain employment is especially well suited to students in that it may not require their full attention, such as some security and caretaking positions, allowing the student more opportunity to study.
A college education makes a big difference in earning potential for an individual, so it makes good financial sense to earn a degree. Even if you have to do without some non-necessities for a while, your earnings in the long run will repay you many times over.
Payday loans are very short-term loans (usually requiring repayment within 2 weeks) that have very loose qualification terms. Generally it is enough that a person is 18 years of age or older, has a job that pays at least every two weeks, and has a bank account. Credit rating is not an issue in most cases, so even individuals with very poor credit can be approved. The interest rates for payday loans are typically much higher than other forms of loans, and can add up very quickly if the payment is not made according to schedule. While these loans would generally be considered unsecured loans, they may require the borrower to sign a check for the repayment post-dated to the due date or an authorization for the lender to automatically debit the borrower’s account for the amount due on the due date.
Because the interest rates and fees make this a costly option, this type of loan is not recommended for every circumstance. It certainly isn’t a loan you should take out in order to buy something you want that you can’t currently afford. Even the decision to use a payday loan to pay something like a utility bill that is due should be carefully weighed. While we don’t recommend habitually being late on your utility bills, it could be in your best interest to simply pay the late fee to the utility company as it will probably be cheaper, although you would then have a strike against your credit rating with the utility company (and likely with credit reporting agencies). The potential damage to your credit is the only reason you might want to consider using a payday loan for this kind of reason. However, the cost often won’t justify this kind of reasoning.
Generally speaking, it is better to attempt to access the necessary cash by some other means, if possible. Private loans are generally offered at better interest rates, as are credit cards. Perhaps you can secure a personal loan from someone you know. Consider if you have any assets that could be used to raise the money.
However, these other options require good credit (in the example of the private loan or credit card), and usually more time to arrange. The major advantages of payday loans are that they are easily available without requiring good credit, and that you can receive the money quickly — usually within 24 hours (or sometimes as little as a few hours in the case of faxless payday loans.)
These advantages make payday loans most appropriate for emergency situations where there is no other way in which to raise the necessary cash in time. Even individuals with good credit might be best served by a payday loan in such an emergency situation.
Situations in which it might make financial sense to use a payday are emergencies such as necessary car or house repairs that come up unexpectedly but must be completed in order to be able to keep driving to work, or to prevent further damage to the home.
Also, some financial situations can be even more costly in the short term than payday loans, such as checking overdraft fees or late payment fees for loans or credit cards. While careful financial planning and management should eliminate the chance for these problems, if they do occur because of an unforeseen event (such as a check deposited by you was returned unpaid and will cause checks you have written to overdraw) it can make sense to cover the amount in the meantime to avoid numerous overdraft charges that will quickly add up, given that the usual fee is about $25 to $30 and may be charged by both the bank as well as the party receiving the check. Add to that the daily fees many banks charge while your account is overdrawn and you can see that the potential for one bad check received in payment to you can quickly run into hundreds, especially if you write a number of small checks. In situations like this, a payday loan can save you a lot of money as well as protect your account from receiving numerous bad check strikes and can be the wisest choice (assuming you can “beat” the checks to the bank).
There is a lot of bad press about payday loans, not because they are not useful in some situations, but because if the borrower takes out a payday loan because they are unable to meet their regular financial obligations, the situation only becomes worse for them because when the loan comes due, they are less even less able to meet their bills than they were before, now that the extra interest costs and fees have been added. Payday loans are not intended to extend credit when the monthly income is too low to pay the bills … rather they should only be used as a tool in emergency situations by persons responsible and financially able enough to repay them in a timely manner. So above all, do NOT indebt yourself to a payday loan that you can’t realistically repay on time. Instead, be wise and handle these loans (along with other kinds of loans) responsibly.
Financial aid for college, university, and grad school students takes a number of forms. Among these are scholarships (which do not have to be repaid), student loans (such as the Stafford Loan), parent loans (such as PLUS loans), private student loans, and consolidation loans.
Most students will need some kind of help to pay for their college expenses. Student loans generally offer low interest rates, don’t require a credit check, and offer some option to defer payment until the student either finishes school, quits, or drops below a set enrollment level. The Stafford Loan is one such loan and is either subsidized, in which case the government pays the interest while the student is in school, or unsubsidized, where the student pays the interest. Interest in this case may be added onto the principal and deferred until after graduation (or dropping below half-time enrollment). The Perkins is another federal student loan designed for students with exceptional financial need. The interest rate is lower and paid by the government while the student is enrolled and there are no origination fees.
The Parent Loan for Undergraduate Students (Parent PLUS Loan) is available to parents of undergraduate students as well as to students themselves who are pursuing a graduate or professional degree (Grad PLUS). The interest rate is higher than for student loans, and the repayment period is not deferred unless offered by the specific lender. An important benefit that should be mentioned here is that the cap on consolidated student loans is lower than that of PLUS loans, so pursuing a student loan consolidation is often in the best interest of the borrower in this case.
Private student loans can vary in their terms. Often offered at higher interest than federal student loans, they nonetheless are less expensive than credit card rates. Applying with a cosigner (even if you qualify on your own) can often reduce your interest rate. Deferment options vary widely, and many students and their parents choose private loans in order to allow deferment for their PLUS loans or to provide funding above what is allowed by federal student loans.
Student loan consolidation is available to students after they leave school, but parents may consolidate at any time. It is possible to consolidate loans owned by the same borrower, but you cannot consolidate loans from two different borrowers. For example, if the parents have a PLUS loan and the student has a private loan, the two different parties are responsible to pay their own loans and these cannot be consolidated. Two married students are also no longer eligible to consolidate their loans due to federal ruling. However, it IS possible to consolidate any kind or number of student loans, or even to consolidate a single loan.
The interest rate on consolidated student loans will be found by taking the interest of the loans to be consolidated and their principles and arriving at a weighted average, which is then rounded up to the nearest 1/8 percent. There is no fee to consolidate student loans (if any lender asks you for an advance fee to apply, do NOT pay it as this may be form of an advance fee loan scam).
The advantages and disadvantages of consolidating will vary. You will have to consider not only the interest rate (which can be an important factor if your loan or loans are above 8.25% cap … it might be a good idea to consolidate loans separately if you have some low interest loans and some which are higher and can be lowered through this cap), but you should also consider the repayment terms, which may seem much more favorable after you graduate and are now having to look at repaying your student loans. This can be one of the primary reasons for consolidating. While most standard loans require repayment on a 10-year schedule, consolidations can be extended from 12 up to as much as 30 years. You may also be offered a variety of payment options such as graduated repayment or repayment terms that are based on your future income. (However, be aware that extending the term of repayment will cost more in the long run, since you are using the lender’s money for a longer period of time.) Another point to consider … if your current loan minimum payments will pay off your loan in less than ten years, consolidating that loan will result in a lower monthly payment since you are in effect extending the term.
In short, there are many factors to consider when selecting a student loan or considering consolidating loans. Some of the main benefits to consolidation that bear looking into are the single monthly payment (if you are consolidating a number of loans), access to a variety of repayment plans if your monthly payments are currently too high for you to manage, and automatically giving a reduced interest rate on certain PLUS loans. One of the main cautions we would offer is, if possible, leave your Perkins loan (if you have one) out of the consolidation because it offers certain benefits that would be lost with consolidation.
If you are still in school, apply for all federal loans you may be eligible for before resorting to private loans. And once you graduation, look into loan consolidation to see if the terms can benefit your personal situation.
Do you find yourself in the position of having poor (or non-existent) credit, but still expecting to need to buy a car in the near future? While the situation can take extra effort (as well as some added expense) it is not impossible to secure bad credit auto loans that still provide the best possible terms for the consumer.
Firstly, if you are considering accepting a bad credit loan from a car dealer, be very cautious. While not every dealer employs such tactics, there are quite a few who specialize in bad credit buyers who will inflate the prices of the vehicles they sell and then offer in-house loans at higher interest than usual. It is always a good idea to check out the full amortization (the cost of the loan paid out over time) including all payments to principal and interest as well as any fees plus the down payment in order to arrive at the total cost paid for the car you are considering. Compare that total to the value of the vehicle itself. You should of course expect to pay more than the actual value, because financing DOES cost money, but unscrupulous dealers are offering “deals” where the buyer will be forced to pay some 3 to 4 times the actual value. In many of these cases, the buyer ends up being forced to default on the loan because it is too high a payment to carry, which will cause the car to be repossessed and further damage the credit rating of the buyer.
In finding a legitimate offer for a bad credit auto loan, the buyer should expect to pay a higher interest rate than would be offered to a consumer with a better credit rating. You should also be prepared to pay a higher initial down payment. Credit rating also affects the amortization schedule offered … while those with better credit may be offered terms ranging up to 5 to 7 years to complete repayment of the loan, bad credit will usually reduce the offered time to repay to around 2 to 4 years. All of these factors are necessary to protect the lender, and will generally result in a higher monthly payment for the borrower than would have been the case if their credit was better. However, there is a good side to all of this … in repaying the loan faithfully and making payments on time, the consumer’s credit rating will improve and rebuilding of a good credit rating can begin.
If you don’t already have a particular car in mind, that can work to your advantage. Using online referral sites that ask for your financial information in order to provide you with an auto loan will generally then do one of two things. If they are associated with a network of dealers, they will then forward your information to a local dealer or dealers who are able to offer you financing. Depending upon the quality of the dealers in the network, you may then be offered better options on cars, financing terms, and prices. If the referral service is affiliated with a lending network, they will likewise forward your information to a number of potential lenders, who then will hopefully compete to offer you the best possible loan for your particular situation. Either of these can produce a winning situation for the buyer, and save time as well.
Above all, and especially if your credit is very poor, you should be willing to remain flexible. Don’t become discouraged if your first attempts fail to result in securing a loan. Be willing to continue trying, and be willing to consider a different vehicle if your first choice cannot be approved. Just be wise, and don’t end up paying far more than you should, or place yourself into a situation that will further damage your credit.
Insurance is becoming increasingly a requirement for driving all over the world. We applaud this trend, because it keeps innocent parties from being potentially financially devastated by the carelessness of someone else. Having car insurance also limits your potential liability in the event that you are charged with an accident. In short, insurance protects both parties in an accident, and if the time comes, you will be glad that you have provided coverage for yourself, your passengers, your vehicle, and other motorists and property owners.
Local law enforcement are also taking steps to ensure that drivers carry insurance, with penalties in place for those who do not comply. Police in the UK are now utilizing ANPR systems (automatic number place recognition) in order to identify those cars that are on the road without appropriate coverage. Possible penalties include fines and vehicle confiscation.
In the US, automotive insurance is required before any vehicle may be registered. The insurance company database is tied to state law enforcement databases and any lapse in coverage will be reported to state agencies, resulting in revocation of auto registration. Driver’s licenses will often also be suspended.
It is much less expensive to pay auto insurance premiums than to pay fines and face the legal punishments incurred when proper insurance is not provided for vehicles on public roads. Oftentimes court appearances are necessary, much paperwork is required, additional fines and fees must be paid before driving privileges can be restored, and in many cases the cost of insurance premiums will increase as a result of the driver’s irresponsibility.
If a collision has occurred while no coverage was in effect, the driver and/or vehicle owner will be held responsible for damages ranging from vehicle repairs or replacement to bodily injury to any persons involved, property damage, and sometimes even lost wages of insured persons, as well as possible legal fees and almost certainly imposed fines and penalties. In some cases, there may even be a jail sentence.
Besides avoiding all of these potential headaches and expenses, the responsible driver will enjoy peace of mind in knowing that any unforeseen accident will be covered, protecting everyone involved.
Life insurance is a way of providing for the financial needs of your family in the event that you are not there to be able to provide for them yourself. As such, it is an act of caring and taking responsibility for those who depend upon you the most. It can also assure that your surviving family won’t have to bear the burdens of costs associated with your final expenses.
Whole life insurance is an asset that acquires value over time, and is generally a much more expensive policy in terms of monthly premiums. Term life insurance allows you to select the length of time you need coverage and purchase insurance covering only that period for much lower premiums. Along with savings on premiums, term life insurance can be an especially good choice for situations where you need a specific length of coverage, such as if you wish for your family to have enough money to pay off the house if necessary while there is still a mortgage, or if you want your children to be provided for until they reach a certain age.
Are you interested in getting life insurance quotes, but would like to gather information and perhaps shop around without having to have an agent contact you in order to get the information? By entering some basic information, such as your date of birth, state of residence, etc. and some general health background information, you can easily receive quotes from a number of insurance companies who offer the type of coverage you desire. This makes it simple to compare quotes from a number of companies, and you don’t have to enter your name, address, phone number, or any personally identifying information or talk to an agent in order to receive the quotes.
A loan is a situation where an individual (the debtor) receives a sum of money from the lender (the creditor) and in return, promises to repay. There is almost always a cost involved in addition to the amount borrowed, which is referred to as interest. Loans are generally (but not always) set up to be repaid in regular amounts over a set period of time. There may or may not be be penalties involved for paying off the debt early in order to save additional interest payments.
A secured loan involves some material property (such as a car, home, land, etc) being promised as a security (collateral) for the loan. Legally, if the debt is not repaid as agreed, the creditor then has the ability to take this property from the debtor. When purchasing a car or home, the car or home is then generally held as collateral on the loan, and may be repossessed by the creditor if payments are not made as arranged. Mortgages on a home are a very common type of secured loan.
An unsecured loan is a loan that is made based only on the promise of the borrower to repay. These take many forms, including credit cards, personal loans, overdraft protections, open lines of credit, etc. Interest rates are typically higher for unsecured loans due to the increased risk taken by the creditor.
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Applying for home loans is not easy. Since pay day loans are not easily available anymore, one may have to resort to applying for a consolidated loan instead. Although the banking loans system state the loan a solution to many a dilemma, the repayment should be managed with care.
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