Finance Archives - Page 3 of 14

Family Finance: No Matter the Reasons for Your Loan, You Deserve the Best APR Possible

July 6, 2018 by Mandy

A loan may have all the merits to deliver you from a tight financial situation, but a few wrong moves and you can end up in more trouble than you were before. All lending institutions issue loans with the guarantee that an applicant will pay back the money, along with a pre-calculated annual interest over a pre-determined period.

As the borrower, therefore, the interest a lender charges can make all the difference between getting out of your predicament successfully or sinking deeper into the murk.

So, when you need some money, don’t let desperation rush you into making a damaging deal. Below are some tips that will help you get a low annual percentage rate and avoid a good chunk of cost on your debt.

1. Becoming an Ideal Client

Lending money is risky business, and as a result, lenders typically have guidelines that determine who they approve as their client. The fewer boxes you check, the riskier you become, and that means a higher APR. Applicants with excellent credit and a reliable source of income, such as stable employment or a thriving business always find it easier to get low-interest loans than borrowers in a shaky financial situation.

Before applying for a loan, ask yourself if you would make an ideal borrower. Go online and check your credit score with a major credit reporting bureau. And if your credit isn’t as good as you would want, seek out ways to improve it.

Repairing bad credit can take you months or years of responsible financial planning. Therefore, think about how long you can wait before applying for a loan, and if you have time, consider building up your score first.

2. Weighing Your Options

For borrowers looking for low APRs, big, established lending institutions aren’t the only option. If you don’t like the rate your bank quotes to you, start looking into other choices. Local credit unions, for example, often offer the lowest interests since they’re run by their own members.

Online lenders are also known for their ultra-friendly rates. A company like Loan Review HQ provides unsecured personal loans with low APRs to short-term borrowers, even those with bad credit.

3. Getting Better Terms

Most lenders will be willing to offer better rates if you sweeten the deal for them. For instance, securing your loan with a valuable asset like a house or car will almost always get you a low APR, since you will be protecting the lender from loss. Collateral loans are also typically more straightforward to obtain than standard personal loans, especially if your credit history is unfavorable. On the downside, your property will be tied to the loan, and the lender will certainly take it if you don’t pay them back.

Alternatively, consider getting a cosigner on board. Asking a friend or family member with a high credit score to co-sign on your loan will make your application less risky to the lender and will, therefore, result in lower rates. Keep in mind, however, that you will be putting your cosigner’s credit on the line. Before signing up, be sure you can pay back the loan.

Conclusion

A great APR can be a huge money saver down the road but getting one means knowing where to look, and of course, being the client with which the lender would like to do business. Let the pointers above be your guide to landing the best loan rates available for you.

4 Best Ways to Use a Personal Loan

June 28, 2018 by Mandy

Borrowing a loan doesn’t have to be an uncomfortable experience. In many situations, loans are a great way to kickstart the next step in your life. Whether you’re simply building credit or working to get your business off the ground, there are many ways a personal loan can change your life.

Using Personal Loans

Personal loans are an excellent resource for finding funding for your personal projects, businesses, or emergency situations. If you are considering applying for a personal loan but are still curious about the benefits of getting one, keep reading.

Consolidating Debt

Transfer all of your debts into a new loan. This will help you better manage all of your accounts and allow you to have tighter control over your debt. This loan will help pay off the creditors and work to consolidate your debt payments into a single bill.

Additionally, loans generally have a more reasonable interest rate than credit cards, making it a better method for managing debts. In this case, the personal loan is not another new debt–it is simply the amalgamation of your old debt.

Purchase a Home

A personal loan is a great option for those interested in purchasing a home. Generally, the loan is used to cover the down payment, as well as other expenses like closing costs. As you continue to pay your mortgage, you’ll work to build equity. Although your personal loan will affect any future homeowner’s debt-to-income ratio, using a personal loan to purchase a home is still a good investment.

Maintain Your Home

Once you’ve purchased a home, you’ll soon find out all the financial joys that come along with maintaining your property. When the costs of preventative maintenance an repairs start to pile up, you’ll soon find that a person can come in handy in helping to maintain your home as well.

Opting to use lending to help keep your costs down and your home intact is a valid option for any homeowner. While you do have to consider the cost of the loan, using it to keep your house in order will work to increase your home’s equity as well.

Start Your Business

Launching your own company is an expensive business. Whether you’re an online-only company or you actually have a brick and mortar location, it can get pretty pricey keeping your business alive. If you are on a tight budget trying to get your company off the ground, a personal loan may be just what you need. Once your company starts turning a profit, you’ll see the loan was worth it.

The next time you find yourself in a financial bind, consider the option of applying for a personal loan. While this is by no means free or easy money, you’ll find that the benefit outweighs the initial debt. Use these four tips to help you make the most of your personal loan and to help keep you financially stable as well.

5 Gifts To Buy Your Mom In 2018

June 21, 2018 by Mandy

Your mom is and will always be the woman of your life. To better celebrate her, we, the kids, all have been through that hard process usually described as “finding the right present for her”. Now, with all that being said, these are some tips on what to buy her for the next big occasion, without possibly busting the bank.

Flowers And A Nice Message

Nothing really beats this since is a never-ending classic that has both the emotional and the “gift” part. Writing a message on paper for your mom is something that could be a little bit hard to write unless you just want to be that one who just writes “happy birthday”

(that’s a bit sad, isn’t it?). To better celebrate your mom, especially if it’s a very important occasion, it’s important that you let her understand that your gift isn’t just something that you are giving her just for the sake of it.

A Classy Watch

I know, picking jewels and watches for a woman is not an easy task, but at least, if you follow my advice, you only have to limit your research to ladies fashion watches that have a minimalistic design and an overall sense of finesse. When it comes to buying a watch and, in particular, when it comes to buying it as a gift, it’s important to remember the fact that the price and the brand aren’t everything. In fact, nowadays you can buy a great watch, made of high-quality materials, without killing your wallet.

Take Her Out For Dinner

Who said that the best gifts are just tangible things? Taking your mom out for dinner could be a great idea for a relatively easy price (compared to other things you can buy). Not only for that but also because of the fact that this could be a great thing to make her feel appreciated again, especially if your mom is a busy woman, who works a lot and really doesn’t have time for herself anymore.

A Day At The SPA

Similar to the dinner idea, booking a day for her (or for her and your dad) could be another fantastic idea. With plenty of offers at the moment (especially because of the fact that we are in summer now) finding a cheap one won’t be incredibly hard. This could also be a great day if your parents haven’t yet booked any holidays this year.

5 Important Things You Should Know Before Taking Out a Personal Loan

June 8, 2018 by Mandy

Applying for a Loan Approved, Loan application form with a pen on a desk with an approved stamp

Using a personal loan can be a great financial strategy in the right circumstances, but you must understand what you’re getting into and how they work. Here are 5 important things you need to know before taking out a personal loan.

Taking out a personal loan can be a great option for those who want to consolidate their debt, need extra money, or simply pay off a large, unexpected expense. It’s estimated that 24 million Americans take out a personal loan each year, with that number increasing each year as well.

Unless you have specific financial knowledge, you probably have a few questions. But, what exactly is a personal loan? Will taking out a personal loan hurt my credit? How do personal loans work?

We are going to answer all of these questions and more in this article, so keep reading to learn more.

1. What Is a Personal Loan?

A personal loan is a type of loan that is paid back in installments over a set amount of time. The repayment time for personal loans can range from 18 months to 5 years.

2. Unsecured vs. Secured

There are also two different types of personal loans.

The most common type is called an unsecured loan. This means the lender doesn’t take collateral for the loan. They will give the loan based solely on your credit and financial history.

There are also secured loans, which are less common for personal loans. These types of loans are backed by collateral, usually in the form of a savings account. These types of personal loans are usually for people who can’t qualify for a loan based on financial history alone.

Secured loans often have slightly lower interest rates.

3. Risks with Personal Loans

The main risk associated with personal loans has to do with the fixed repayment period. You must pay the full amount of the loan back in a fixed time determined when you take out the loan.

If you fail to do this, you can be sued by the lender. And since most personal loans are unsecured, going to court is almost guaranteed if you fail to repay.

You can also face extra fees if you try to pay the loan off before the repayment period ends.

4. Your Credit Score Makes an Impact

It’s pretty simple: the better your credit, the more affordable the loan will be. Having a high credit score will get you a loan with a much lower interest rate and potentially lower fees.

Those trying to get a loan with questionable credit might face outrageous interest rates that would make the monthly payments extremely high.

5. It Can Impact Your Credit Score

Not only can your credit score impact the loan itself, the loan can also impact your credit score.

If you fail to pay on time or fail to pay in general, your credit score can take a hit.

Also, applying for a personal loan can also lower your credit score a few points because of the multiple credit checks.

Things You Should Know Before Taking Out a Personal Loan: Wrapping Up

Even with all the financial planning and budgeting, sometimes you need a little extra help by way of a loan. A personal loan can provide you with a decent sum of money and a fixed repayment plan.

If you have any other questions about loans or finance, check out our finance articles on our blog.

How to Successfully Save Money for Bigger Goals in Life

May 28, 2018 by Mandy

Most people are so caught up with their short-term goals that they forget about the bigger picture. Do you find yourself saving money to buy the upcoming iPhone or other gadgets? Or how about, saving up this month’s salary so you could buy a very nice bag or shoes next month? Most of the times, it’s always about short-term goals. How about saving up money so you have money for a down payment for a house? It is time to also think about the future.

In this article, we will give you tips to save money for long term goals like buying a house. To be able to be qualified for a home loan, whether fixed rate home loans or variable rate home loans, you must have money for down payment and of course, enough savings for lenders to know that you are eligible to pay.

It is time that you look into your spending and saving habits to get closer to your dream of owning a house. Here are some tips to consider:

List down all your expenses –do you know where your money is going or do you find yourself surprised every month that all your money is gonealmost before the next payday arrives? Well, this is exactly why many people find it difficult to save money. They spend without any plan or direction. They spend their money as long as they have it. Well, it is time to change this habit. It is best to list down all your expenses from rent, credit card bills, phone bills, food, shopping, up to the smallest detail. This is good so you know where you are spending your money and if there’s a way to remove some items from the lists.
Come up with weekly and monthly budget –once you’ve identified all your expenses, it is time to create weekly or monthly budget. You should come up with a reasonable budget plan and then do your best to follow it. Make sure that your expenses are a lot lesser compared to your income so you still have money to save.
Have a separate savings account –it is advisable to have a separate savings account for your bigger goals. Then be sure to put specific percentage of your income to this account every month. Treat this as your obligation so you get closer to your goal of buying a house.
Plan your shopping –it is time to avoid impulsive shopping and instead make sure that your trips to the malls are always planned including the budget. This teaches you to become more responsible in spending your money. You can still buy things that you like but make sure to plan it so you can save money for it without hurting your savings.
Avoid use of credit card –lastly, it is best that you avoid using credit cards and instead, settle for paying cash for your purchases. Credit cards are temptations – they make you believe that you can buy things that you don’t actually afford. And the ending is usually bad – you crying over debts for your purchases.

It is fun to buy new clothes, shoes, bags and gadgets but it is so much more fulfilling to be able to achieve big goals in life like a house. Thus, it is best if you start saving money for real.