Tag Archives: APR

Home Financing Loans

There are many home financing loans, so choosing the right one is important. Educating yourself is the wisest investment you can make. So, be sure to fully educate yourself on home financing loans. You should learn: what APR means, what “fixed” means as opposed to “variable,” the different types of loans, the loans for which you qualify, the current rates, how many years you want to pay off your house and the total cost to move into your home.

Home is what you make it, and so are home financing loans. Before you apply for a mortgage, obtain your credit report. This information is very important for the application process. First, you will need to decide on a lender and sign a purchase contract. Next, you get a credit approval which verifies your income, your ability to pay the loan and any liabilities you may have. Then, present all proof of income, assets, and debts to the lender. This information is essential for the application process. You may be charged an application fee. Inquire about this before your appointment with the lender. The total application process can take between one and eight weeks.

The market fluctuates so much that interest rates can go up or down within a day and even within an hour. You have the option to lock in your interest rate. Make sure that the lock-in period will not expire before you close on escrow. Most often, you can lock in this rate on home financing loans between 30 and 60 days. Be sure to ask whether there is a fee for this option and whether it is refundable.

Home financing loans vary, but they are either fixed or adjustable. A fixed rate means that the rate does not change. Conversely, an adjustable rate does change. Adjustable rates are typically lower, but these types of loans are more risky because the rate can drastically increase.

The APR is the annual percentage rate. The APR and the interest rate are not the same. The APR takes into account the cost of the loan on a yearly basis, which includes interest, any origination fees, and insurance. For example, as of the date of this article, a 30 Year Fixed Rate for the market is at 3.75% for the interest rate and 3.88% for the APR.

It is possible to “buy down” your interest rate. You pay in points. A point is 1 percent of the loan amount. For example, one point on a loan of $100,000 is $1,000. Naturally, whether this is a good investment depends on how long you intend to live in your home. The longer you live there, the more financial sense it makes to choose this option.

Ask your lender specific questions. Find out the interest rate of the loan. Ask whether you will have to pay any points to “buy down” your interest rate. Find out what costs you will have to pay for, e.g. the closing costs. Ask whether there is a prepayment penalty.

Car Loan Advice That Can Help You Get the Best Deal

If you want to get a new car but don’t have any capital then there are a number of credit finance options available. It is important to research these carefully to ensure you get a finance deal that can offer you the capital you need at a competitive rate of interest.

Credit Rating

Every consumer has a credit rating and this will determine what finance deals they will be eligible for. It is a good idea to check your credit rating so that you will know what types of deals to apply for. You could be wasting your time applying for the low APR deals if you have a bad credit rating. This is because lenders will not offer low APR deals to high risk customers with bad credit histories, so you will most likely have your applications refused. If you are having trouble getting a good finance deal you may have to work on your credit rating first before you apply for any more deals. You can do this by making sure you have cleared any outstanding debts and meet your existing repayments consistently each month.

Internet Research

You can quickly and easily compare many different finance options online from lenders. You may also be able to find some great deals that are only available online. You do need to know how much you want to borrow and also the repayment period you would prefer (two to five years for example) before you start looking for finance deals. This will help you narrow down your search.

Personal Loans

You could finance your new car with a personal loan. There are a number of personal loans available from banks, building societies and other lenders so make sure you take the time to compare deals and find the one that suits you best. Personal loans can be secured or unsecured. Secured loans will be backed by an asset and in this case it would be the car you are purchasing. If you do not keep up with your repayments you could lose your car and still need up owning the lender money. Unsecured loans are not backed by assets, but these can be more difficult to get if you have bad credit.

Dealer Finance

Many dealers offer finance and this can be a practical choice. The majority of personal loans have increased in APR following recent financial upheaval in the banking world. This means that many of the finance packages offered by dealers have now become very competitive and could save you money in the long run. Dealers can also offer some very attractive manufacturer financing options that not only offer low APR but also come with extended warranties and other great bonuses.

Payday loan: A Complete overview

From different surveys, it is seen that the number of customers taking payday loan as well as payday lending companies are increasing frequently. If you are a person taking the payday loan for the first time or want to gather information regarding payday loan, then this article will be of great help to you.

Definition of payday loan:-

Payday loan is a very short term loan. Usually the term is 1-2 weeks. There are other names of payday loan like – “Cash Advance”, “Paycheck loan”, “Check loans”, and “Payroll advance loans”. After you get your paycheck, the loan is to be repaid. If you can not repay the loan amount plus lender’s charges for payday loan on your payday, you can rollover the loan amount by paying extra fees to the lender plus you have to pay the interest along with for the rollover period. So, payday loan can be termed a “Loan Sharking”.

Necessity of payday loan:-

By the end of the month, you may face some problems in maintaining some urgent family expenses like paying off your Medical Bills, Phone Bills, and Electric Bills, House Rent or some other utility bills. These things usually happen when you fail to maintain a proper budget at the time of getting your paychecks or not keeping your expenses up to your income limit. Hence in order to meet such urgent expenses you need a payday loan.

Payday loan companies:-

There are so many companies who are promoting check cashing facilities online. Besides some banks and other financial institutions also provides you with a payday loan. You can apply online for a payday loan or you can visit physically to an institution to avail a payday loan.

Conditions to be satisfied to get an instant payday loan:-

The criterions of different payday loan companies are-

1. You must have a job or there should be a regular source of income.

2. You should have a Checking A/c in a bank.

3. You should be an US citizen.

4. You should be at least 18 years of age.

5. Your monthly income should be at least $1000 Per Month.

Best application time of payday loan:-
If you apply for the loan from Monday to Thursday, you will get the loan on the next working day, i.e. Tuesday to Friday. If you apply for the loan on Friday, then you will get the loan on the next Monday, and if you apply on Saturday or Sunday, you will get the loan on Tuesday.
So the best time to apply for the loan is Monday to Thursday.

When will you get the money?
As the process is very simple to get the loan amount, in general you will get your loan amount within 24 hours of application. Company will check your documents and verify your data with an automated system named as VPN Based software, and then approve your loan. The entire process of verification of your identity and depositing the money to your Checking A/c takes 24 hours of time. There are some companies who will deposit the loan amount in less than 24 hours.

Costs of payday loan:-
Usually a payday loan company charges 15 to 30 USD per $100 borrowed. So, if you borrow $100, you will have to pay 115 to 130 USD on the very next payday. The APR of payday loan cash advance interest boosts up to 391%.

Maximum limit of payday loan:-
If you are taking a payday loan for the first time, you may get up to $500 for the first time. After you repay back your first loan amount in time, you can avail more than $500 when you revisit the company for another payday loan.

Think before taking a payday loan:-
1. You should keep in mind the APR factor of the loan before taking it. You should find the company which is charging a lower APR than its competitors.
2. You should take care about the privacy of your document and information. So, if the tendency of the company is to process applicant’s information in an encrypted page, you should think that your information will not be licked out, and then you can proceed on.
3. You should read the company policy and legal matters complied with before submitting an application form to them.

Repayment of payday loan:-
The lender company will take the money off from your checking A/c on the date of your payday. You should be ready and aware about your payday and the amount to be repaid. If you fail to repay the loan on the scheduled date then you may have to ask the lender to rollover your loan amount.

Alternatives to payday loan:-
1. In order to avoid taking such high interest loan like payday loan cash advance, you should make an appropriate budget which is according to your income.
2. You may also save certain amount of money from your paycheck every time you get it.
3. Before taking a payday loan cash advance, you should be looking for a loan from a friend or relative as they will not take any interest for lending the money to you. Another thing is also involved here that if you not be able to repay the money in future, you may not have to run away from your creditors.

Get the Facts Before You Borrow: Payday Loan 101

In the current economic climate, alternative means of obtaining money to make ends meet are becoming increasingly necessary. Some alternatives include borrowing money from friends/relatives; cash advances from employers; pawning personal effects and payday loans. Also known as a check/cash advance loan or deferred deposit check loan, the payday loan is the most popular among these. As payday loans grown in popularity, more and more people want to know just what a payday loan is, and if it is the right solution for their situation.

SO, WHAT IS A PAYDAY LOAN?

A payday loan is an unsecured, short-term loan of anywhere from a few hundred dollars to as much as fifteen hundred dollars in some instances. A borrower generally secures the loan by post-dating a personal check for a specific amount of money to be posted against their account on their next pay period. Payday loans are designed to help out in situations when you need quick cash to cover an unexpected bill or an emergency situation until your cash comes through or is made available.

A payday loan is NOT a revolving line of credit. It is short-term and that is a key factor in this type of loan. The idea is to take out the loan to cover a small bump in the road or to smooth out any rough financial edges until your next payday. If you are thinking of the payday loan as way to repair a much bigger financial problem, the advice is to STOP! A payday loan can create bigger problems down the road when used as part of an overall troubled cash flow situation.

SO, WHAT IS A PAYDAY LOAN?

The most important thing to remember about payday loans is that they must be repaid on time in order to avoid paying insane fees that could potentially equal or surpass the amount of the loan itself! It is the renewing of the loan and failing to repay it on time that can create a major financial dilemma for the borrower.

Most loans have a repayment period of four to eighteen days depending upon the terms negotiated with the lender. The repayment schedule and the method of repayment is arranged at the time the loan is disbursed. More often than not, the borrower will agree to pay the loan in full with cash on or before the due date. Additionally, some lenders may opt to collect on the loan by depositing the borrower’s post-dated check against his/her bank account on a mutually agreed upon date.

With payday loans, there is a fixed rate fee calculated into repayment on each loan disbursed. The average rate is $15.00 to $20.00 dollars per $100.00 dollars borrowed. Due to the nature of the quick turn-around time of payday loans, the annual percentage rate or (APR) is generally very high. It is not uncommon for the (APR) to be 100%, 200% or even as high as 400% in some cases.

If a borrower is unable to repay a loan at the scheduled time, the lending institution may agree to rollover the loan allowing more time for repayment. The drawback to rolling a loan over is that additional fees are added to your account. For example, if the fee to borrow $100.00 is $15.00 and the borrower rolled over the loan three times, then the new fee would be $60.00. That is the original $15.00 fee plus three times that fee itself added to each $100.00 borrowed.

WHAT ARE THE REQUIREMENTS FOR A PAYDAY LOAN?

Generally, the only major requirement for a payday loan is that you have a job. Your job is your assurance that you will be able to repay the loan. It is expected that you will be receiving a paycheck, and therefore, the money to cover the loan. Good credit isn’t necessary or even required for the payday loan to be approved. The lending institution only wants to see that you are employed and have a steady income. In essence, your job is your collateral

Getting a payday loan is actually a simple procedure. You apply, and if approved, sign paperwork that indicates your promise to repay the loan on the lender’s terms. Be sure to take the time to carefully read the terms of the loan and do not be afraid to ask questions about what those terms mean. Often, these kinds of contracts are written in a legalized, financial jargon that is not easily understood by the average consumer.

BORROWER BEWARE!

If you feel the lender’s representative is not able to fully answer your questions, please say so! If the terms of the loan are not clear to you, do not take the loan until you fully understand them. Teachers always say that the only stupid question is the one you don’t ask. This is true! Again, if you do not understand all the terms of the loan, do not sign paperwork until those terms have been fully explained to you. Otherwise, you are legally bound by those terms that could prove disastrous for you if you fail to act in accordance with the terms of the loan. We would like to think that everyone is above board, but not all lenders are. Unfortunately, there are unscrupulous lenders out there who intend to make a profit at your expense.

It has been noted by the NAACP and the Department of Defense that payday loan offices have strategically opened offices near military bases and in socio-economically disenfranchised areas where the demographic is largely African American and Hispanic. Many reputable financial institutions, consumer groups, and civil organizations are doing all they can to shut down payday loan offices, but their efforts to date have been largely unsuccessful.

BORROW IF YOU NEED TO, BUT BE SMART ABOUT IT!

With the often strict guidelines used by reputable lenders, many people are getting caught up in the cycle of payday loans because of their immediate benefits. When emergencies occur and cash is needed, payday loan companies offer fast, hassle free cash. More often than not, most have no minimum credit requirements and do not perform background checks. In most cases, all that is needed to secure a payday loan is a recent pay stub and proof of a checking account. In these regards, payday loans and cash advances do offer consumers financial options in emergencies. On the other hand, more and more people are getting caught up in this vicious cycle of borrowing which can lead to financial ruin. This is not good, especially considering that the loan was probably taken out to avert a financial disaster in the first place. With pros and cons like these, it would seem that the best advice would be to borrow if you absolutely must, but do so with extreme caution.

Being proactive is probably the best strategy or, as conventional wisdom holds, “an ounce of prevention is better than a pound of cure”. Take an honest look at your family finances and come up with creative ways to not have to borrow. Consider trimming the fat out of your budget, pledging to save a little money from each paycheck, and reducing credit card and revolving debt.

A little effort on your part can make a huge difference not only in your financial situation, but in your quality of life as well. Nevertheless, if you must take out a payday loan, remember the following key points:

– Payday loans are NOT revolving lines of credit

– Repay your loan on time!

– Do not plan on rolling your loan over. Plan, instead, to pay it off

– The only “stupid” question is the one you don’t ask

– Payday loans have terms & conditions of repayment. Know and abide by them

– Payday loans can ruin your finances and jeopardize your job if you are not careful

– An ounce of prevention is better than a pound of cure

Loans UK- Loans to Suit Every Pocket

Human desires are unlimited but the finance that one acquires always seems to be scarce. Thanks to the diversity of loans available in the UK finance market which helps in fulfilling the desires and dreams of millions of the UK residents.

UK loan market at present is swamped with infinite number of loan options. Different loans have been designed keeping in mind the diverse needs and expectations of people in the UK. If you are an individual looking for a loan to buy a car, a personal loan can be a perfect option for you. Now, here also lenders can offer you the option to go for a secured or an unsecured loan. Does these words sound new to you? Let me explain it to you.

A secured personal loan is a secured loan offered to meet personal needs of the UK residents. To avail this loan a borrower needs to put collateral against the loan. Your car, home or even a saving bank account can work as collateral. Secured loan helps borrowers in making the best use of the equity stored in his or her property that helps him in borrowing a larger amount of loan and that too for a longer loan term.

Unsecured personal loan UK does not require a borrower to put any collateral against the loan. Tenants who do not own a home can enjoy the benefits of unsecured loans. Not only tenants, homeowners who do not want to keep their property at risk can also apply for an unsecured loan.

Personal loans UK were introduced to serve personal purpose of the borrower. Personal loans are classified as secured and unsecured loan on the basis of security attached to the loan. They can also be classified on the basis of usage – Business loan, home improvement loan, debt consolidation loan, car loans, holiday loan, wedding loan and many more.

Different personal loans serve different needs. A business loan can be the perfect solution for an entrepreneur who needs funds to expand his business. An individual who is caught in the midst of debt trap can take a debt consolidation loan, to reduce the debt burden and become debt free in the future by paying the existing debts. A debt consolidation loan can also be used to improve the credit score and enjoy the benefits of loans arranged at low APR in future.

Other loans offered by the lenders in the UK are – Payday loans are available to provide instant cash to the borrowers until the next paycheque arrives. Bridging loans can be used to fill in the cash shortfall existing in a property transaction and many more. Each loan has different features; you can find the loan you are looking for from the vast number of loans offered by lenders.

The loan service is not confined to a group of people. Lenders in the UK aim to cater to the needs of each and every individual. A good score will help you get a loan at better loan terms. Even if you have a bad credit score there is nothing to worry. There are lenders in the UK who can arrange loan for you and that too at a lower rate of interest.

Only a few years’ back traditional lenders ruled the UK loan market. The loan process was lengthy and full of hassles. Borrowers had to wait for months to find whether they will be getting the loan or not. A borrower had to approach each lender personally and submit his or her loan application form.

The entry of online lenders has revolutionized the whole loan market in the UK. Now, a borrower can access infinite number of lenders at one time without even moving from one place to another. What you need to have is a computer equipped with Internet, that’s it.

Applying for loan online is easy, fast and convenient. The online phenomenon aims to save your precious time as well as invaluable money. You can browse through various lending websites and can apply for the loan by filling up the online loan application form that hardly takes 2 to 5 minutes. Most of the lenders provide you with the loan decision within 24 hours. You can also apply for a loan quote that are offered for free or for nominal fees by majority of the lenders. Gathering loan quotes from various lenders and comparing them will help you find the best loan option and lender.

If you dare to dream, lenders in the UK can help you fulfill your dreams with the loans UK. Growing desires among the lenders in the UK has given rise to the increasing number of loan options in the UK. Whatever may be the need, just a little bit of research will help you get the loan of your choice.

Small Business Credit Cards Advantages

A lot of people associate credit cards with just personal credit card which an individual posses and uses for shopping etc. However, there is another category of credit cards and that is called small business credit cards. As suggested by the name itself, the small business credit cards are meant for small businesses or people running small businesses.So how does the small business credit card differ from the other credit cards in general?The very obvious difference is that small business credit cards have the credit account in the name of the small business and not any individual, though the benefits indirectly accrue to the business owner. Continue reading

All About Vehicle Financing

The cost of new vehicle has gone up to £20,000 and the best option is to finance a part of the cost from the leading banks or financers. You will find a number of financers or banks at your doorstep ready to finance your vehicles perhaps you have a good credit report. These financers or bank may charge different interest rate and therefore you should be cautious while selecting a particular bank or financer through your dealership for your vehicle financing.

You should carry out a little calculation and should get the best option of vehicle financing. All the banks and financers provide you rate or monthly installment for your loan for the vehicle and thus you can get a fair idea. Although all the dealership has finance and insurance department to deal your finance and insurance at the same shop, even then a rate idea will give you better opportunity to understand the financial terms offered by dealership. Continue reading

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Personal Loans Are Here To Finance Your Dreams

Do you find it tough to decide which loan option can meet your personal needs and desires to the best? Here is the answer. Personal loans can bring the perfect solution to all your personal desires.

Different people have different personal reasons to borrow money. Some of you may want to buy a newly launched Mercedes or a home with a landscaped garden or want to fulfill any other desire. Personal loans can finance all your personal desires it could be small or big.

Personal loans are tailored for the UK residents who wish to transform their dreams into reality. You can use the loan money to buy a luxurious car, to pay for a holiday trip, to make home improvements, to start up a new business or consolidate the debts to secure a debt free life. Whatever may be the reason, it solely depends on you what you wish to do with it. Continue reading

Instant Loans – Fast Financial Assistance

Certain expenses are such that we cannot keep them waiting for fulfillment. Expenses on food, house rent, electricity bills, etc. are some of the expenses that constitute the class. Though normally the provision for payment of these expenses is made through ones salary; at times the equation alters, like how these expenses are to be paid when monthly salary has already been consumed. Instant loans play an important part in enabling people financially to expend on such small expenditure heads.

Instant loans are known by different names as payday loans, cash advance loans, no fax payday loans etc. Payday loan however is the most popular name. The chief characteristic of these loans is that loan proceeds are made available in the fastest possible time. Therefore, instant loans best befit the expenses discussed above. Instant loans are approved within 24 hours. When borrower checks his bank account on the next working day, he will find an additional credit with the instant loan proceeds. Continue reading

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