Students have many options for financing the cost of college. Loans are just some of those options. However, all avenues for securing scholarships and grants should be pursued before trying to find a loan. This is because scholarships and grants do not have to be paid back, while loans do. There are many different types of loans available for consideration, and many factors of which you should be aware.
First of all, it’s best to get your Free Application for Federal Student Aid (FAFSA) in early. In fact, it should be turned in as soon as you or your parents have mailed in your annual income tax forms. While the federal government uses this information in order to assess your need for aid, state governments also offer grants based on your form. Most of the time these state grants are first come first served, so the earlier you apply the better chance you have of receiving this type of financial aid. Also, this is the method in which you apply for government loans as well.
If you find you did not receive enough aid to cover your expenses, move on to applying for a loan. There are several types of government loans to consider. The first is a Parent Loan for Undergraduate Students (PLUS) which puts the responsibility of repayment on parents, at an interest rate that’s currently 8.5 percent. There is no limit on the funds, and repayment must begin 60 days after disbursement with no grace period. There is a credit check involved. If the parents are denied the loan, the student will have an increased limit when they apply for Stafford loans.
Stafford loans are either disbursed by banks or directly by the federal government. There are subsidized loans, meaning the government pays the interest while you are in school. They are based on need. There are also unsubsidized loans in which you are responsible for the interest which accrues. They are not need based. However, you can elect to defer the interest payments until after graduation. Students are not required to repay these loans until six months after they graduate. Loan caps differ depending upon how far along you are in your schooling. Freshmen can borrow up to $3,500, sophomores up to $4,500, and juniors and seniors $5,000. The limits increase if you are an independent student, your parents were denied a PLUS loan, or if you are a graduate student. These loans currently have a fixed interest rate of 6.8 percent, but some lenders may offer rate reductions based upon your career path, such as for teachers or nurses.
A school based loan, offered with funds provided by the government, is called the Perkins Loan. It is need based, subsidized, and currently has a fixed interest rate of 5 percent. Undergraduates are eligible to receive up to $4,000 per year, while graduate students can receive up to $6,000. Your school’s financial aid office determines if you are eligible to receive this type of loan.
A first time borrower can expect his or her loan funds to be delayed by about a month after those of someone who has borrowed before. This means you should apply for your loan as soon as possible. You will also be required to take an entrance interview in order to receive your payments. You will probably be able to take this interview online. Your financial aid office will assist you in completing the interview.
If you know you are going to need loan money to cover college expenses, check with your school’s financial aid office. Some schools do not accept Stafford loans, so you would need to make other arrangements for a loan or find a school that will accept one. Private loans from banks are an option, but be aware that most of the time you will be required to repay them without a grace period. There are some, such as one offered through U-promise, that can be deferred until after graduation. Also, since they are based upon credit scores, many students may not qualify due to a lack of credit history.
Don’t wait until the last minute. Get your FAFSA filled out, and explore all of your options regarding paying for college. This will ensure a smooth transition and better prepare you for any setbacks that may come along.
How Student Loans Work
Student Loans – A Simple Guide
There are various resources to find money for a college education. Student scholarships, student loans, and grants are available to get a college education. After going through the merits and demerits, the best option may be chosen.
Student loans are different from a student scholarship since they have to be repaid. Student loan schemes are available in two different types. One is a subsidized loan and another is an unsubsidized loan. The interest for the subsidized loan is taken care of by the Federal Government in USA and in other countries the finance ministry provides some sort of assistance, whereas the unsubsidized loans carry a normal percentage of interest. Eligibility for a subsidized loan can be found out by filling in the relevant details online
The students and the parents can become tense at the time of planning how the expenses of a college education will be met.
To finance a college education, a programme called FFELP (Federal family education loan programme) provides the most flexible and affordable student loan options. Using the loan finder web service a student can find all the required information for applying for a federal loan online. Find more info at www.loanresourceonline.info
Additional finances not covered by the federal programme such as education related expenses, overseas study, and housing can be procured through a private student educational loan. When compared to credit cards, these programmes carry a marginally lower interest rate and have very easy payback terms.
Many of the student loan agencies - both government and private - have online submission and processing facilities hence the loans are accepted after a review within a week or sooner. The repayment of the Federal student loan can start six months after the graduation of the applicant.
Student loans can be used not only to pay the fees but also for lab fees, dues for associations and housing. A student can still avail an educational loan even though the tuition is covered by a grant.
A student who is eighteen years or above in age, can apply for a student loan. Most of the student loan is deferred for repayment until the student completes the education or leaves the school.
Private loans for students are not given without a co-signer or a credit report. Credit unions give student loans if a vehicle or a boat is provided as collateral.
During the cumulative credit period, a student has the option of paying or not paying the interest part of the loan. It will become easier if periodical payment is made to cover the interest. If this is done, the capital repayment after completing the studies becomes easier for a student.
Student loans are to be repaid in ten years. Nevertheless, longer repayment facilities are provided to large student educational loans.
Consolidate Private Student Loans - 4 Benefits You Can't Ignore
Consolidate private student loans into one manageable loan. Instead of trying to juggle multiple private student loans, why not lump them together and make it easier to manage each month? When you consolidate your private student loans, you replace all of your outstanding private loans with one large private student loan. Sounds like a lot of work? Not really. In fact it's easy and here are the benefits that you'll enjoy.
The key benefit when you consolidate private student loans is lower monthly payments. Instead of making multiple monthly payments on different loans, you would have only one monthly payment. That one monthly payment will be less than the total amount of payments of all the other loans combined. Frankly, this is the time when you need your money the most - for rent, furniture, buying a house or car, getting married, starting a family...
By lumping your private student loans into one loan, you make repayment much more convenient. You get to deal with only one lender and that reduces the risk of forgetting about or missing payments. There's much less paperwork to worry about and you don't have to juggle a bunch of different due dates.
Consolidating your private student loans provides you the opportunity to get a lower interest rate and that saves you money. Lower interest charges help to offset the cost of lowering your monthly payment. So in the end, you can have lower monthly payments without extending your loan as far as you would have.
One of the added benefits of consolidating your private student loans is you can improve your credit score. When you receive a consolidation loan, the funds are used to pay off all of the loans being consolidated. So, in effect, you have just successfully paid off multiple loans - on time or early. And that goes a long way to improving your credit score.
So how exactly does that benefit you? Remember, the house or car you want to buy? That's going to take a mortgage or car loan. A better credit score means you pay less interest and that saves you money. In the case of a mortgage, it can mean thousands or even tens of thousands of dollars in savings.
If you want to lower your monthly payments, make them more convenient by dealing with only one loan and get a lower interest rate, you should consolidate private student loans. It not only helps keep your money at a time when you need it but it helps you improve your chances of saving more money on future loans.
Secured Home Loans: Provides Guaranteed Low Rate Finance
Nowadays, the use of home is not only limited for dwelling purposes, it is also being used to raise finances to fill the cash void. In fact most of the people who own a home is availing secured home loans to avail bigger amount of finances at a comparatively low interest rate.
These are collateral based loans. To avail these loans, a borrower is needed to attach his valuable home as collateral against the loan amount. The presence of collateral acts as an assurance and the lender can take relief from the fact that in case of non repayment, he can recover the amount by repossessing it. The amount obtained under these loans can be used for a number of purposes such as consolidating debts, purchasing a car, meeting wedding expenses, family vacation, education financing and many more.
The amount approved under these loans is based on the equity value present in the collateral. This means a home with a higher equity will ensure a bigger amount. Usually borrower can avail amount in the range of £5000-£75000 with a repayment duration that last for a period of 5- 25 years. Since the amount is secured against a valuable asset, interest rates are kept very low. With an extendable repayment period and a low interest rate makes it easy for the borrower to repay the entire amount, without any threat towards the asset.
Individual borrowers with a history of bad credit such problems such as IVA, CCJs, etc can avail these loans effortlessly. It is possible because lenders have an asset to bank upon. However the interest rate will be slightly higher.
To obtain favorable terms and conditions on the loans, borrower can use the online mode. The online lenders process the loans without taking any extra fee. Besides by comparing the free quotes, borrower can select lenders which suit their conditions best.
Since its inception in the loan market, secured home loans are proving to be the best loan option to avail finances at optimal rates.
Secured Home Equity Loans – Source Low Cost Finance
When you are looking around for a low cost loan, one of the option that may come catch your attention is secured home equity loan. However, these loans will carry low cost on certain conditions. You must be aware of various aspects of these loans, before approaching a lender.
As is clear from the term, these loans are made available on the basis of the equity in the home. Equity is the amount that you can arrive at by subtracting your outstanding payments towards the home, from its current market value. This will be the amount that the lender will approve.
In other words, through taking out these loans, you are releasing the equity in your home. This extra money can be put to variety of uses like home improvements, paying off the debts, paying for the child’s tuition fee, clearing expenses towards holiday tour or you can use the loan for purchasing a car as well.
The borrowed amount comes against the home, pledged as collateral. This means that you are putting the property at stake, and you will loose it to the lender, if you default on the payment. The advantage is that the borrowed amount comes at low rate of interest because the risks for the lenders are remote.
Because of fewer risks, the lenders, usually, have no hesitation in approving the equity based loans for the people whose credit history has faults like late payments, defaults, arrears and CCJs.
Make sure that you have made an extensive comparison of different lenders, who are in the business of providing secured home equity loans. The comparison will lead you to a suitable offer, which is of lower interest rate. You should compare the additional charges as well. You must repay the loan installments on time for avoiding repossession of your home.
Homeowner Secured Personal Loans: Suitable For Miscellaneous Ends
Homeowner has a special place in the eyes of the lending institutions. The homeowners can now easily borrow lump sum amount of loan to meet their personal demands. The only thing should be done is apply for homeowner secured personal loans. As holds the features of secured form, so applicants should pledge collateral. Applicants can use any asset as collateral like land, car, estate, home, valuable documents that carry monetary value in the market. Pledging of home does not mean that the owner have to move the house. The amount that one can borrow ranges from £ 5,000 to £ 75,000 with repayment period of 10-25 years. This amount can be utilized in executing miscellaneous ends like buying a car, going for holidays, decoration and improvement of the house, meeting expenses the education of children, consolidation of debts are many more.
The benefits of this loan can be subscribed irrespective of poor credit or no credit status. Bad credit issues like defaults, arrears, late-payments, county court judgment, bankruptcy and such can also be dissolved.
As you are ready to provide collateral, so the lenders also offer the amount at cut down charges. It is because of this reason that such loans are available at cheap and low interest rates. If you are interested in more suitable rates then compare the various available loan quotes. While seeking for a reasonable interest figure taking the help of loan calculator is always helpful and rewarding. It gives you an approximate result of the monthly instalment when inserted the loan amount, years and other required information.
The quickest way to approve the loan is by applying through the online application form. It is simple and intelligible. You can apply from anywhere of the world with the aid of e-service. So, you are free from all the shortfalls of the paper-work.
Homeowners can now easily execute their long awaited material desires and the homeowner secured personal loans makes it simple.
Woman business loans: offers easy cash flow
To enhance the spirit of business women in the business, today business loans are offered to the woman so that they don’t get interrupted due to lack of cash. Woman business loans help the women to meet ever rising expenses in the business with easy cash flow.
Woman business loans are designed keeping in mind the basic necessities that business woman comes across in her business. No doubt, capital requirement of the business varies from the type of business i.e. higher if you are starting a new business compared to the seasoned business.
Therefore, woman business loans can be used for varied purposes like buying new machinery, furniture, patent, raw material etc. for the new business. Whereas, in seasoned business, business loan can be used for business upgradation, business expansion, recruitment or day-to day expenses etc.
While availing woman business loan, a woman must know that they can avail either secured or unsecured business loan for smooth cash flow i.e. depending upon the borrower’s financial and credit history.
The secured business loans are taken against the some collateral so that it is placed against the security. Collateral can be borrower’s land, office premises, machinery etc. Therefore, in secured business loans, borrower enjoys the larger amount at cheaper rates and for longer time frame.
On the other hand, unsecured business loans do not require any collateral though interest rate charged is relatively high compared to secured loans. The best part of unsecured business loan is that they are approved within shorter time period as no time is utilized in the collateral evaluation.
Women with adverse credit i.e. poor or bad credit like CCJ’s, IVA, defaults, bankrupts or arrear holders can also access woman business loan. However, proper and diligent repayment can even improve their credit rating.
Woman business loans are easily accessed through banks, financial companies and online lenders. So while opting for the woman business loan don’t rush in making a fast decision as you must compare and contrast the interest rates, repayment option etc for a suitable deal.
So, if you have an innovative idea in your mind for your business doesn’t worry as for you, woman business loans are designed.
Secured Business Loans: Arranges A Good Sum For Your Business
Any business activity is backed by a potential source of finance. Whether you have to start a new one or expand the existing one all this take a good sum for the accomplishment. Often you may find it tough to convert your business plan into a real shape due to lacking on the required fund. At that moment you really need an external help for the finances. Secured business loans can be the best financial tool to generate sufficient fund for your business at that time.
Secured business loans are secured loans that are obtained by pledging any kind of fixed asset against it. This loan can be taken for the any of the utility of your business. A number of business expenses like, covering starting cost, buying machinery and plants, paying salary to the employees, operating cost, buying raw materials, stocks etc can be disbursed with this loan.
You can avail a sufficient amount with secured business loans depending upon your requirements. However, the amount that is allocated to you with this loan depends upon the collateral’s value. The equity value of collateral is considered while allocating for the amount. You can avail an amount equal to the equity value of the collateral. The amount that is available with this loan generally ranges from, £50000 to £250000. You can repay this amount with a flexible term of 25 years.
Secured business loans provide a lower interest rate in the market. Your collateral yield this privilege, as it assures for your repayment to a considerable extent. The factors that can also affect your interest are credit status, amount borrowed, and income level etc. You can find it differed with the lenders. So, you always compare it to bargain the best from among the options. Apart from the traditional lenders, there are several online lenders who can be accessed to avoid a lot of hassles.
Your credit status does not affect much when you are going for secured business loans. Regardless of your bad credit status, you can avail this loan easily. However, you bad credit status can affect the rate of interest and can increase it to some extent.
Your business plans are now reared to grow into a desired shape with the help of secured business loan. This loan helps you getting a cost effective financial help that can be easily repaid with several little installments to meet the feasibility of your cash flow.
Business Loans that Need Guaranty
Businesses will need to borrow a loan during certain periods for its life span, such as to purchase new equipments, expand the operation, to repay another loan, or to acquire another business. To acquire a loan, you usually will go to a bank or loan company for your capital needs. There are a few things you will need to consider like we discuss in this article.
Typically, bankers require a personal guaranty when you are securing a commercial loan, especially if you cannot offer collateral owned by your business. The personal guaranty provides that if your corporation defaults on the note signed by the business, you are personally responsible for the debt. You are right that one of the main advantages of incorporating is to protect your personal assets from the debts of your business. But the personal guaranty could impact this advantage.
Lenders are reluctant and take great caution when lending money to try to protect themselves. They typically require both a primary and a secondary source of repayment to ensure they can collect on a loan. The primary source could be the firm revenue flow and the secondary source the sale of collateral. Seldom will they lend money in the hopes of collecting on the collateral if you default. They want their money back with interest payments, not your property or business.
Also, most bankers will insist on your signing a personal guaranty to make certain that you and your management team have maximum motivation to pay off the loan. They explain that they are testing management faith in the business, and ensuring that you and your managers devote all your efforts to operating the business profitably. There are many useful financial tips at http://www.fidetips.com/finance for you to read.
If you fail to pay, lenders want to ensure that the borrower can repay the debt with secured collateral. If your business is without collateral, the banker will look to the owners. Lenders always will like a form of compensation for their money that they lend to you.
If there are multiple owners, the bank will ask that all of them guaranty the loan, and each will be jointly and severally liable. This means that the owners will be liable for the entire amount. If your co-owners are not as solvent as you, then you will be liable for the entire amount. There for you will need to study and decide how you will like to apply for a loan, especially a loan that will need personal guaranty.
What Are Plus Student Loans?
College expenses are high; there is little argument over that. Students and parents of students often need financial help in order to get into and subsequently get through the years of education that leads to an advanced degree. Thankfully, there is a somewhat new student loan program available that help out with these costs.
The Federal Parent PLUS Loans can help those parents with good credit histories to borrow money. This money can be used to help pay the education expenses of their children. Each student-child must be a dependent undergraduate student enrolled in an approved university or college, for at least half time in order to qualify for the loan.
The most useful benefit of the PLUS Loan is that parents can borrow federally guaranteed, low-interest student loans in order to pay for the child's college education. Unlike many other loans, the PLUS Loan program lets parents borrow the total cost of undergraduate education to include tuition, supplies, room and board, books, lab expenses, and even some travel costs.
Also, unlike many other student loans that are based on "need", these loans are non-need based. Eligibility is dependent on a regular credit check that determines whether the parent has an adverse credit history.
An adverse credit history is defined as being more than 90 days late on any debt or having any Title IV debt (including a debt due to grant overpayment) within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.
The college of choice may require additional loan applications. For this reason, parents should check with your school's financial aid office.
As of July 1, 2006, the interest rate on the PLUS Loan was set at 8.5 percent. The PLUS loans do not require any collateral to be placed by the parents. In addition, the interest that is paid on the loan may be tax deductible. It should be noted that the interest rate on these loans can and will vary over time, so parents should investigate the latest news concerning interest rates before assuming any posted rate is correct.
There are some restrictions on the PLUS loans. For instance, the annual limit on a PLUS Loan is equal to your cost of attendance, minus any other financial aid that is received from other programs. For example, if the annual cost of attendance to a school is $8,000 and the student will receive $5,000 in other financial aid, the parents of the student would be able to borrow up to, but no more than, $3,000.
There are also certain restrictions and requirements concerning the way the funds are to be disbursed. Much of the disbursement rules that apply to a particular loan will be directed by the particular school. In order to get the most recent issues concerning how the money will be sent and to whom it will be sent, parents and students should visit with the financial aid office of the intended university.
Students and parents who wish to learn more about this loan program can visit the PLUS loan website where more detailed information is located.
How Consolidation of Student Loans Works
The consolidation of student loans can be a huge lifesaver. A college education is expensive, and it is almost impossible to get a degree without taking out at least a few student loans. However, these loans do not have to rule your finances for years to come.
Student loans can create a huge debt that hits you from nowhere. It is very easy to forget that you are accumulating debt while attending school. Most loans are made on an academic deferment, not requiring any payment at all until your schooling is complete. Many of these loans also accumulate interest throughout your schooling, even though no payment is required.
Six months after you graduate, or possibly less, the debt becomes a reality. Loans taken out at the beginning of your academic career may have terms of just a few years, with thousands of dollars in interest tacked onto the loan amounts, making for large payments. You must start paying on these loans right away, even if you have not yet found employment in your new occupation.
Masters degrees, doctorates, medical school and law school are some of the most expensive types of education. In these areas, you could easily accumulate hundreds of thousands of dollars in loans and interest by the time you graduate and begin working in your chosen field. In the case of doctors, you will likely be expected to begin payment on your student loans before you finish your residency. Lawyers are also expected to begin paying on loans when they complete law school, even if they have not yet taken the bar examination. In other words, you will likely have to start paying this enormous debt long before you are truly making enough money to do so.
The only way to make this debt manageable is through consolidation. Consolidation of student loans makes your student loan debt much more manageable. The lending institution that consolidates your loans begins by buying all of your educational debt. Essentially, they are paying of the student loans for you. This debt is then handled as one, newer, lump sum loan that you repay in reasonable increments.
Not only does loan consolidation make payments more manageable, it also saves you a lot of money. Many consolidation loans carry lower interest than at least some of the original loans. You also avoid multiple finance charges and late fees that can add up quickly.
No Credit Check Student Loans Explained
No credit student loans are a myth. If you do not have good credit you cannot get funding for college. Without good credit, student loans are impossible. Do any of these statements sound familiar to you? Well don’t believe them!
The truth is that most student loans do not require good credit. In fact, the student loans you receive based on financial need do not require any type of credit check! Other student loans may require a credit check, but only for the purposes of determining your interest rate.
No credit check student loans are more common than anyone believes. These loans are generally provided based on financial need, and credit never comes into play. The government wants you to get an education, and therefore programs are in place to make that dream a reality. This is true for everyone, no matter your credit or your background.
The most common place to find no credit check student loans is through your school. The school you will attend should have their own fully staffed financial aid office. The sole purpose of this department is to help people like you find funding for college.
Most schools will have preferred lenders in which they automatically send your applications and information. Most of these lenders will offer no credit check student loans. Why? Because the schools want money! The more banks they can work with, and the more students they can get funding for, the higher the number of students that can enroll in classes, thus equaling more money in the university's pockets.
Another place you can check for no credit student loans is with private lending institutions. Some of these institutions, especially if you have a previous history with them, will not run a credit check for your student loans. Additionally, you may be able to negotiate a student loan without a credit check.
Negotiation is simply. Lenders appreciate the need for a higher education, and they are more than willing to lend money for college. If you do not have good credit, most institutions will allow you to receive a student loan without a credit check in exchange for agreeing to a higher interest rate. This is really not a bad deal, especially when you consider the refinancing options you may enjoy later in your academic career.
In the end, it doesn’t matter what your credit is like when you get those first student loans. Your credit will raise naturally over the course of your academic career as your student loans provide you with a natural means of credit. You will soon find that additional loans need not be no credit check student loans.
Secured loans – smart borrowing for homeowners
When it comes to borrowing money homeowners have a valuable added advantage over non-homeowners, and this is the ability to borrow against their home. In the past people have been a little nervous about secured loans simply because of their secured nature, but as equity levels have increased over recent years an increasing number of homeowners have realised that a secured loan is actually a smart and effective way to borrow money for those that are lucky enough to have a property with equity in it.
Although homeowners that have good credit ratings will usually find that they are able to take out an unsecured loan rather than a secured loan if they wish, there are actually many benefits to opt for the secured loan over the unsecured one. The fact that the loan is secured means that the lenders is able to offer better value and many secured lenders will also consider those with bad credit, whereas the doors of most unsecured lenders are closed in the face of anyone with bad credit.
One of the main benefits of a secured loan is that the borrower is often able to take out a far larger loan than with an unsecured loan, although the amount that you can borrow will be determined by factors such as your income, your equity levels, and your credit rating. Another benefit for borrowers is that the repayment periods offered are far longer than with an unsecured loan, with repayment terms of up to 25 years available on most secured loans subject to eligibility. This means that you can keep your repayments to a minimum, thus increasing affordability and ensuring that you do not overstretch your monthly finances.
Whatever you need to borrow money for you will find that a secured loan is an effective and affordable way to raise the money that you need. You can use a secured loan for all sorts of purposes, so whether you want to consolidate your higher interest existing debts or whether you want to increase the value of your home by making some home improvements, a secured loan could be the ideal, smart choice.
There are many lenders that hare able to offer competitive secured loans, and all you need to do is compare a range of loans to find one that suits your needs and offers a competitive rate. Alternatively, you can use a specialist broker, who can use your application details to source a number of reputable secured loan providers in order to get the best loan and rate for your needs and circumstances. This can save you the hassle of making individual applications, and can help to ensure that your secured loan is the right one for you.
Homeowner loans – how to value your home
If you are a homeowner and are looking to raise finance for one of a wide range of purposes you may find that a homeowner loan offers the perfect solution for your needs, enabling you to enjoy getting the finance that you need as well as enjoying affordability and greater flexibility. A homeowner loan is a loan that is secured against your property, which is why you must be a homeowner to be considered for this type of finance.
There are a number of benefits to opting for a homeowner loan when looking to raise finance. Firstly, you will find that the repayment periods offered are much longer, which means that you can spread the amount that you borrow over a far longer term thus keeping monthly repayments down. Secondly you can get some very competitive rates of interest, so you won’t have to compromise on affordability. Thirdly, secured lenders will often look at those with poor credit as well as those with good credit, so bad credit consumers have a far greater chance of being accepted for a homeowner loan. And finally these homeowner loans offer far greater borrowing power than unsecured loans.
The exact amount that you can borrow in the form of a homeowner loan will depend on a number of factors, and one of the primary factors will be the level of equity that you have in your home. To work out your equity you need to deduct any outstanding mortgage or secured finance from the market value of your property, and the figure that you are left with is your equity level. In order to be accurate about the level of equity that you have in your home you need to make sure that you get an accurate valuable on your home.
House prices at present can change rapidly, and many people were surprised to see that over the last couple of year the value of their homes was way higher than the last time they had them valued, perhaps four or five years ago. Therefore do not base your valuation on a price you may have been given several years ago, and do not attempt to guess. Instead, get no obligation quotes from local estate agents, who will be able to come out and look over the property in order to give you a more accurate idea of the value.
Also, do bear in mind that the valuation may differ from one estate agent to another, even if it is only by a small amount, and therefore it is well worth getting quotes from at least three local estate agents in order to get a more accurate idea of the property value. Once you have obtained the value of the property you will have this information to hand ready for when you make your homeowner loan application.
Online Mortgage Companies: Providing Affordable Home Loans
When the housing market crashed, people all over the United States were thrown into a state of crisis, many of them at risk of losing their homes, and many more thrown into foreclosure proceedings. For those of us who had their homes financed heavily, the crisis was indeed something terrible to deal with. Good has come of this tragic bubble burst, however, in the form of home prices that we have not seen for perhaps a decade.
People who were not homeowners when the financial bubble started to go were not completely unaffected adversely by the drastic change, however these people may also have found themselves in a position that they did not expect to see themselves in for years to come; these people found themselves with the financial wherewithal to purchase a new home.
As housing prices have dropped through the floor, those who have managed to weather the financial storm were left with their savings intact, and a wide choice of properties from sellers who were desperate to have someone take the properties off their hands. These buyers may have eschewed the traditional mortgage lenders, and for good reason considering their recent track lenders, and may instead have turned to companies that may have had a slightly shadier image in the past.
It is easier to set up a fake or otherwise fraudulent online mortgage company than it would be to create a brick and mortar company with the intention to deceive. It is easy, as most of us know, to be anyone we want to be online. But those companies offering valid mortgages online may have a small advantage over companies that work exclusively out of their mortgage offices.
Lower Overhead for Online Lenders
An online company has significantly lower overhead than a brick and mortar office, with less space needed (since there is little need to entertain and impress customers), fewer staff because of the fewer branch locations, and less physical property, since the actual business of the loan can be conducted online. Every expense that can be spared, from letterhead to business card holders, is more potential profit for the lenders, or less that they have to charge their customers in order to make even an average profit.
The savings of running a business online can be passed down to the people who are looking for a home loan, and mortgages can be found at a lower rate online than a traditional brick and mortar lender might be willing to offer. This means that now is one of the best times in recent history to search online for a home lender and to apply for a mortgage.
Risks of Dealing Online
Although there are many good reasons to go with an online lender, it should also be mentioned that there are still scam artists aplenty who will take your money if you are not careful. A mortgage is a huge loan, and you need to be careful who you are dealing with, and where you send out your information.
Check with the Better Business Bureau to find out if there are any complaints against your online lender, and try to work only with lenders that your family, friends, or co-workers can recommend to you from their own experience. If your lender makes you uncomfortable, address the problem before you move on, or you may regret the experience of choosing them.
Weighing the Options
While it is easy to accuse online lenders of being thieves or cons, the record of the big names in home lending do not have such a shining reputation at this time, either. Some of the biggest names in mortgages have bought and sold trash loans, falsified information to give loans to people who should never have gotten them, and encouraged fraud on many levels, all in the name of profit.
Online lenders are stepping forward to help people get the low rate loans that they deserve and to put people into homes at a bare minimum of expense in this difficult economic time. If you are considering buying a home, look into online lenders, but beware interest only payments, adjustable rate loans, and being asked to slightly alter your financial information for their records. These are the kinds of unscrupulous behavior that put us all at risk in the housing crisis, and the resultant loans can be dangerous for consumers.
For the educated buyer, however, an online home loan at a discounted rate might be the ideal way to move into a new property.
Unsecured Business Loans: Plan The Next Step Of Your Business
Business affairs are risky and puzzling for a common mind. So, whenever this agile mind seeks for loan we try to opt for the safest and risk free deal. And the easiest way of availing a loan in a worry free manner is considering the unsecured business loans. Business persons and venture owners by taking this loan scheme can borrow loan without the use of property as collateral. Persons who are unable and unwilling to pledge collateral can breathe an air of relief.
As the business personas are seeking monetary aid to invest in their commercial activities so a good amount is arranged as aid. The minimum proposed amount is £50,000 and it limits upto £2,00,000 with a short repayment term. Repayment term is scheduled between 2-10 years at best. The loan prop business men to supervise multiple business related activities like purchasing of commercial sites, heavy materials, raw materials, equipments, maintenance of office, wages of employees, buying of shares and stocks and likewise.
Lending amount without any security involves risk which is entirely borne by lenders in this loan. So, with a sole purpose to marginalize the risk they usually release the capital against slightly higher interest rates. By with the coming of numerous banks and private finance lending institutions are eagerly ready to offer the loan at slash rate of interest. Therefore, for your personal benefit just contrast the loan quotes of various lenders and the outcome of such exercise is always rewarding for you.
The loan welcomes even persons struggling with bad credit. If you are having any such bad credit issues like CCJs, defaults, arrears, late payments, bankruptcy and as related even then you can avail the benefits of this loan. And the easiest route to procure the funds is using the online application method. The online enables the applicant to access the loan around the world in a comfortable manner.
So, you can expand your business empire to your expectations in a safe manner with the assistance of unsecured business loans.
Secured Business Loans: Commercial Mortgages
Most people think that business loans are all unsecured loans. However, it is possible to obtain secured business loans that can offer better loan terms than regular business loans with little risk for the borrower and for the lender. Commercial mortgages can provide all the funds your business needs with very reasonable loan conditions.
Secured business loans are becoming more and more common among businessmen as small companies begin to own their own commercial offices and headquarters instead of renting. Thus, they can take advantage of real estate by obtaining finance through secured loans. But, they can also use as security their future sells, thus obtaining finance with alternative forms of collateral.
Real Estate Based Business Loans And Lines of Credit
There are business loans that are secured with real estate properties just like regular mortgage loans and home equity loans. The sole difference is that these properties belong to a company instead of a particular person. Nevertheless the concept is just the same: the property’s value guarantees repayment of the money to the lender and thus reduces the risk of the transaction letting the lender offer lower interest rates and more advantageous loan terms.
There are commercial mortgages (the equivalent to home mortgages), commercial second mortgages (the equivalent to home equity loans) and commercial lines of credit based on equity which are just like home equity lines of credit. Equity is the difference between the value of the property and the amount of money borrowed that the property is already guaranteeing.
However, commerce and companies have other property’s that can be used as collateral for loans. Intellectual property, trade marks, etc. can also be used to guarantee a loan as they are usually of great value. A company has many possessions that can be used to guarantee a line of credit or a loan. You will just need to consult with credit experts at an agency or financial institution since detailed information on this matter exceeds the purpose of this article.
Loans And Lines Of Credit Based On Future Sells
Finally there are also loans and lines of credit that are based on the future sells of the company. These financial products work as follows: The financial institution processes credit card payments for the company that wants to borrow money and thus, knows exactly the average income of the company in terms of credit card payments. Thus, the financial institution will be able to lend money in the form of a loan or line of credit and agree loan installments or minimum payments that will be withdrawn directly from the amount of money the financial institution gathers from the credit card sells.
Thus, the borrower has a cheap source of funds and the lender obtains guaranteed repayment of the money lent. Moreover, the company does not have to worry about repayment as it is automatically deducted from the sells each month. This financial tool is becoming more and more popular as it provides inexpensive financing, higher loan amounts, fast approval and a very easy and hassle free repayment program.
Alternative Secured Loans For Businesses
When you are looking for finance for a business project, resorting to secured loans is definitely the smartest way to go. And though you can always resort to regular secured loans based on real estate and equity, there are other alternative methods of securing a loan that are perfect for running businesses especially when the purpose is to solve a temporary lack of cash problem that may recur.
There are alternative secured loans for businesses that the financial industry has created keeping in mind the needs of the small business niche. These loans instead of using real estate to secure a business loan (which usually small businesses do not have as they often rent their offices), just use certain assets that are within the reach of almost all small businesses.
Alternative Form Of Security
It is possible for businesses that work with credit cards to reach an agreement with certain payment processing institutions that are also financial institutions. These agreements consist on a loan that can be awarded to the businesses for which the institution acts as payment intermediary which is secured with the company’s future credit card sells.
Basically, the lender knows exactly what the company’s income flow is (at least the credit card part of it) and thus can easily provide financing knowing the business payment capacity. Moreover, the amount of the loan’s monthly installments is directly debited from the business’ account since the lender processes the company’s client payments too.
Advantages Of Using This Method Of Financing
This method of financing provides the necessary funds for any business expansion or growing plans without the hassles of applying for other forms of financing that require more bureaucratic paperwork and presenting backing up documentation in order to prove an acceptable income to afford the monthly payments.
These loans instead, are easy to qualify for because the lender already knows the account movements of the borrower and can be sure to be repaid because he just needs to retain a fraction of the funds that arrive with each client payment made using a credit card. Since the lender grants the money but at the same time processes the company client’s payments, it has nothing to worry about and thus can provide very advantageous terms on the loan.
Also, not using equity when you have this other alternative is a smart choice as it remains as an option whenever an emergency situation arises and you do not have other sources of financing that can provide high loan amounts and affordable payments too. It is a way for the borrower to be assured that if anything unexpected happens he will still be able to obtain further financing.
This collateral alternative is becoming increasingly popular as it provides fair amounts of money and competitive interest rates without much paperwork or long credit verification processes. Thus, whenever you need funds for your business and if your business has payments made by clients with the use of credit cards, you can check with the financial institution that provides the payment processor services whether they provide this kind of loans.
UK Financials Ltd introduce Student Debt Consolidation Loans
UK FINANCIALS LTD introduce Student Debt Consolidation Loans: a Convenient Consolidation Option for Students
Get Rid of Multiple Debt Problems
Deficiency of cash compels a student to take loans to complete his/her higher studies. But those loans may have higher rate of interest and also spiraling costs make them higher. Hence, it is ideal for a student to avail student debt consolidation loans. These loans have low rate of interest making repayments easier and comfortable for students, who can now lay more emphasis on studies and achieve the much coveted degree instead of thinking of repayments and increasing costs.
Debt consolidation refers to the process of combining all your loans into a single big loan which you can pay off in easy installments over years. You can opt for either secured debt consolidation where you place some collateral with the consolidation company against the money they spend to takeover your loans. With the sole purpose of consolidation debts of student, the student debt consolidation loan has been planned and introduced by the lending institutions. It does not matter from where you have borrowed money to meet your end, student debt consolidation loans knot all the debts of borrower and repay them in a single amount.
The main purpose behind student debt consolidation loans is to help him out to combine and pay off all his earlier debts through a new single debt which is payable with a single rate of interest. It is obviously a good choice to have single loans instead of multiple ones. The main reason why student gets debt is with the fact that he takes multiple debts the result of which is shown in his multiple debts. So, while evading multiple debts, these loans serve as a true ally.
Under debt consolidation loans, all the loans are added up and a fresh loan is issued in the name of the borrower. The old loans are paid off and only the new loan is continued. It is advantageous for the borrower as the new loan has less rate of interest which makes monthly repayment less than before. It is an advantage for the previous lenders as all the small loans are paid off. As the monthly repayment is less than before, the borrower makes timely repayment which is also beneficial for the current lender.
These loans offer debt consolidation loans to everyone. They are open to both the kinds of people, those who are capable of pledging collateral and those who can not. However, in terms of secured loans serve better facilities like easy terms as well as cheap rates because of the collateral attachment involved. This loan is indeed a better option to deal with debt related issues. The interest rates are kept marginal which help borrower to pay less on monthly installments. It provides a lot of mental relief to the borrower as he is not required to answer the multiple creditors. With a low interest rate, borrower gets to save a lot of interest money which can be maneuvered to fulfill other purposes. Rates of student debt consolidation loans, in fact remain always cheap because of their availability online where they have to be cheap enough because of the high competition prevailing among the lenders. These loans are also fast at an unmatched pace while online.
Debt consolidation loans will be processed quickly and once your loan has been approved your money will be made available as soon as possible so you can get your finances back on track. Talk to a UK Financials Ltd. adviser to discuss your situation and they will help you decide the best option for your situation. Debt consolidation loans will be processed quickly and once your loan has been approved your money will be made available as soon as possible so you can get your finances back on track.
Why Choose UK Financials Ltd.?
• Borrow £1,000 to £100,000
• Borrow over 3 to 25 years
• Simple, fast and straight forward
• Free yourself from unwanted debts
UK FINANCIALS LTD is one of the best online loan arranger; just to fill up it’s a simple application form and within few hours of his applying loan amount credited direct to his account in a very least time span. Ravi Mishra is a senior author in loans, where visitors can get useful information and apply for any type of loans online. For further information about Student Debt Consolidation Loans visit: http://www.ukfinancialsltd.co.uk
UK Financials Ltd,
501, International House,
223 Regent Street, London - W1B 2QD
0203 051 4841
How Student Loans Came To Be
Today student loans are almost a given for college kids heading off to school. Few parents have the financial resources to pay all of the tuition for their children, and so most students fill out a FAFSA and apply for loans. This has not always been the case, however. Student loans are quite a modern invention.
The first recorded student loan program was developed by Harvard University in 1840. These early student loans were private loans that were not funded by the government. In 1935 the state of Indiana's General Assembly passed a law that provided student aid to students who had high test scores on their college entrance exams. This led to the formation of the Indiana State Financial Aid Association, or ISFAA, which was followed by the opening of the first Financial Aid office in Indiana University. Soon other colleges joined the ISFAA, and Indiana students had a new way to pay for school.
On October 4, 1957, Russia launched the first successful satellite into space. This had a huge impact on the history of financial aid in America, because the American government suddenly realized that they were in a race to put the first person in space. They realized that they only way to succeed in this race was to ensure that as many high school graduates as possible attended college, a feat which was out of the financial resources of many. With guidance from the ISFAA, the federal government created a working financial aid program.
After World War II, Congress passed the National Defense Education Act. This act introduced the Perkins Loan, a low-interest student loan that is provided to low-income students and has a 10-year repayment period. This was the first federally backed student loan, and more would soon follow. In 1963 the Health Education Assistance Act provided loans for students pursuing degrees in medical and health fields. This was followed by what is now known as the Federal Work-Study Program, a program that allows the federal government to pay the wages of working students.
By the end of 1965, Most of the student loan programs we use today, such as the Stafford Loan, Work-Study Program, and Perkins Loan, were in place. As the cost of education continued to rise, the government introduced the Parent's PLUS loan program in 1981, a program that allowed higher-income families to get assistance in paying for school. Today, these loan programs allow many students to pursue an education when they would otherwise be unable to, making them a valuable resource to our country as we strive to continue as a global leader.
Avail Loans Against Your Home With Secured Home Loans
By: Pamella Scott
Your home-it’s your abode, your possession, your expectation. But do you know its valuation in loan market? Yes! The worth of your home in the loan market is important indeed. How? Well… if you are a homeowner and want to apply for a loan against your home then you can apply for a secured loan, as secured home loans are available in loan market.
Secured home loan- as the name refers, these loans are secured on the borrower’s home. With these loans, borrowers can borrow the amount ranged from ₤5000- ₤75000 along with a repayment period of 5-25 years.
However, secured home loans are facilitated with following facilities:
• Since the loan amount is secured on borrowers’ home, thus these loans are facilitated with low interest rate facility.
• As security covers the risk of lending money, thus with these loans borrowers can avail relatively high amount that could be 125% of value of your home and the repayment period is longer too.
• The terms and conditions of these loans are flexible and suitable with everyone’s need,
• These loans are also available over the internet.
In this context, it is necessary to mention that secured home loans are available at various rates of interest. These are as follows:
• Secured home loans at fixed rate: In this option, borrowers have to pay a fixed rate during the whole loan period. The most important point of fixed rate of interest is that it is not affected by any changes in loan market. It means if the rate of interest hikes up suddenly, then it will not affect the fixed rate.
• Variable rate of interest: In case of variable interest rate, the rate of interest differs according to the changes in loan market. It means if the rate of interest hikes up then borrowers have to pay more and if it reduces then borrowers have to pay less.
Besides these two, secured home loans are available at balloon rate, capped rate of interest etc. A borrower can choose the rate of interest according to his needs.
Secured home loans are used for various purposes. Some of them are mentioned below:
• Home improvement
• Business purposes
• Paying of debts
• Medical expanses
• And even these loans are available for buying home too.
Secured home loans are secured on home. With these loans borrowers can access money to fulfill various purposes. Even more, these loans are used for buying home as well.
Home Equity Loans – A Walkthrough Guide Of Home Loans
By: Joseph Kenny
As the interest rate on credit cards and other loans continues to increase, many people have turned to home equity loans as a method of borrowing money at a low interest rate. The equity of your house is the difference between the value of your house at any given time and the amount of money you owe on the total balance. A home equity loan is a great tool for consolidating high interest loans and credit cards.
Another Mortgage – Can You Afford That?
Home equity loans are also known as second mortgages, and can provide you with many benefits that don't exist with other types of loans. The interest rates can be much lower than credit cards. It isn't uncommon to see equity loans which have interest rates which are at least 60% lower than credit cards. They are also tax deductible for up to $100,000. This makes them the obvious choice for those who have equity in their homes. Equity loans are flexible, and homeowners can also use a revolving line of credit to borrow money.
Security And Equity Are Required
Unlike many other loans and credit cards, home equity loans are secured. This means that your house is used as collateral. For example, if your house if worth $300,000, and you've paid off $50,000, you still owe $250,000. However, if the value of the house has increased from $300,000 to $350,000, you have $100,000 of equity. You can borrow money against this $100,000 by using a home equity loan. At the same time, it is important to remember that if you default on your payments, your home could be taken as collateral to cover the losses of the bank or mortgage company.
Who Will Lend To Me?
Most banks and mortgages companies enjoy providing home equity loans for their customers. A house tends to be the largest investment a person has, and many banks realize that few people will run the risk of losing it by defaulting on their payments. Because of this, home equity loans are considered to be a safe investment. Many people who have homes tend to have a more established credit history than those who do not.
What Can I Use The Home Loan For?
Many people choose to use home equity loans for remodeling their kitchens or bathrooms. Remodeling a part of your house is a great way to increase its value. It is also easy to get approved for loans which you plan on using for remodeling your home. They tend to have very low interest rates, and the amount you choose to borrow should be dictated by how you plan to remodel the home.
Another common use for home equity loans is higher education. As the cost of education continues to rise, it will become harder for many families to send their children to school. Many parents choose to use a home equity loan to invest in the education of their children. Despite this, many federal student loans have low interest rates as well, and parents will want to weigh all their options carefully before making a decision. Home equity loans which are used for education have many tax benefits.
My Mom Used To Say, ‘Prevention Is Better Than Cure’
Because many Americans don't have health insurance, using equity loans in the event of an illness or injury is a great way to avoid debt. It has become much more difficult for people to file bankruptcy, and because of this it will not be easy to get out of a situation in which you have an unexpected illness. An equity loan could protect you in a situation where you have high medical bills with no health insurance. As the cost of healthcare continues to increase, having a equity loan or line of credit can greatly help you.
Loans For Every Occasion: Home Loans, Payday Loans, Student Loans And More...
By: Michael Talbert
At some point in life, it is almost guaranteed that you will be applying for a loan of some sort. Paying cash for products and services is not only becoming obsolete, it's terribly inconvenient. Today, credit is a way of life, and as more and more people begin to shop online, plastic is the currency accepted everywhere.
The most basic of loans is of course, the credit card. Companies that issue credit cards make money every month that you carry a balance, and they are betting on the fact that you won't pay off the balance every month.
Some loans actually make good business sense. Why would anyone want to shell out $300,000 for a new home when they could get a Home Loan and pay $1,000.00 a month, and then deduct the interest paid from their income taxes? That three hundred grand could be put to work in other investments, and could conceivably earn more for you than you are actually paying for the house! And all that time, if you time it right, your house becomes more and more valuable.
There are also times when for many people things just aren’t going well financially. An unexpected expense occurs and you find yourself just coming up short on your living expenses. Many types of loans exist for this type of situation, both secured and unsecured.
Maybe you just need some quick cash to get through the holidays, and intend to pay the loan off within the next few pay periods. Companies offering short term Payday Loans abound both on the Internet and off. Some with no credit check will transfer up to $1,500 into your bank account within 24 hours.
Student loans, auto loans, small business loans, personal loans, home loans, second mortgages, payday loans, government loans, bad credit loans, loans to consolidate other loans – there is a loan for just about any occasion out there.
The question is how much are you going to pay for your loan? And the answer to that depends in most cases on your credit history.
Your Credit History : Weather or not you get the loan, and how much it will cost you.
It is never too early to start establishing credit, and the best way to do this is with a credit card. If you are finding it difficult to obtain a credit card because you have no history, you can always buy your history by applying for a secured credit card or line of credit. Put down $500 or $1,000 and borrow against it. Make sure the institution you are applying to reports to the major credit bureaus, use the line of credit and pay your bills on time, and voila – you have a credit history! There is nothing wrong with carrying a balance over, just pay the minimum or a bit more, and pay it on time! Creditors like to think they will be making some money off of you.
What Lenders are Looking For
While different institutions have different criteria, there are some generalizations one can make about how they determine the creditworthiness of an applicant. Make no mistake about it; creditors are in the business of making money. If your credit is less than perfect, it doesn’t necessarily mean you won’t get the loan, but you will be paying more for it!
After receiving your application, a lender will then acquire a credit report from one of the three major credit bureaus, Equifax, Trans Union, or Experian. This is your credit history. Taking into account such factors as your income, the balances in your checking and savings accounts, the assets you own, the length of time you have been at your current job and place of residence, the amount you owe other creditors, and how promptly you pay your bills, the potential lender will then make a determination on if you will get the loan, and how much they will charge you for it.
Frequent late payments, bankruptcy, repossessions, legal judgment liens, or accounts being turned over to collection agencies do not bode well for obtaining a loan. That being said, most creditors realize that life happens, and such legitimate circumstances like an unexpected illness, injury, or the loss of your job do not necessarily reflect negatively on your creditworthiness.
When Things Take a Turn for the Worse
If you are in the process of paying on a loan or loans and one of these unforeseen circumstances befall you, talk to your loan officer. Most loan institutions find it in their best interest to work with the lendee, and will often make the necessary arrangements to make it easier for you to make your payments. Just remember, they want their money, and the last thing they want is for you to default on your loan, or heaven forbid, declare bankruptcy!
Alternative Secured Loans For Businesses
When you are looking for finance for a business project, resorting to secured loans is definitely the smartest way to go. And though you can always resort to regular secured loans based on real estate and equity, there are other alternative methods of securing a loan that are perfect for running businesses especially when the purpose is to solve a temporary lack of cash problem that may recur.
There are alternative secured loans for businesses that the financial industry has created keeping in mind the needs of the small business niche. These loans instead of using real estate to secure a business loan (which usually small businesses do not have as they often rent their offices), just use certain assets that are within the reach of almost all small businesses.
Alternative Form Of Security
It is possible for businesses that work with credit cards to reach an agreement with certain payment processing institutions that are also financial institutions. These agreements consist on a loan that can be awarded to the businesses for which the institution acts as payment intermediary which is secured with the company’s future credit card sells.
Basically, the lender knows exactly what the company’s income flow is (at least the credit card part of it) and thus can easily provide financing knowing the business payment capacity. Moreover, the amount of the loan’s monthly installments is directly debited from the business’ account since the lender processes the company’s client payments too.
Advantages Of Using This Method Of Financing
This method of financing provides the necessary funds for any business expansion or growing plans without the hassles of applying for other forms of financing that require more bureaucratic paperwork and presenting backing up documentation in order to prove an acceptable income to afford the monthly payments.
These loans instead, are easy to qualify for because the lender already knows the account movements of the borrower and can be sure to be repaid because he just needs to retain a fraction of the funds that arrive with each client payment made using a credit card. Since the lender grants the money but at the same time processes the company client’s payments, it has nothing to worry about and thus can provide very advantageous terms on the loan.
Also, not using equity when you have this other alternative is a smart choice as it remains as an option whenever an emergency situation arises and you do not have other sources of financing that can provide high loan amounts and affordable payments too. It is a way for the borrower to be assured that if anything unexpected happens he will still be able to obtain further financing.
This collateral alternative is becoming increasingly popular as it provides fair amounts of money and competitive interest rates without much paperwork or long credit verification processes. Thus, whenever you need funds for your business and if your business has payments made by clients with the use of credit cards, you can check with the financial institution that provides the payment processor services whether they provide this kind of loans.
Obama's Small Business Stimulus Loans--Are They Coming Our Way?
As Americans we have experienced the full gamut of emotions after hearing TARP I handed 350 billion to big banks, but no money filtered through to small businesses in the form of loans. In fact, the spicket was turned off completely after receipt of the bailout money. But putting down the front page of our local newspaper for a moment, what is it like in the trenches? Are the banks really denying capital to businesses across the nation? And how are they treating them in this crisis. You'll be saddened to hear it is every bit as foreboding as you have heard, or even worse.
Mrs. Smith is the classic poster child of female entrepreneurial success. Starting as an everyday real estate agent, over the last 24 years, she has built an amazing corporate edifice consisting of several real estate sales branch offices and now employs 170 people. Her thriving business came as the result of untold hours of toil in which she describes herself as a "serial workaholic". As a result, she is considered one of most productive real estate offices in the state. Over the years, she had a strong relationship with a big bank and took out eight loans and lines of credit. All had been payback and were never late a single day. Her credit score is excellent and reports no negatives. Needless to say, as most businesses, she relies upon the line of credit to put her over the hump during times of lower cash flow. What happened next could not have been conjured up in your worst nightmare.
One afternoon on January 30, 2009, she received a call from her bank. In the past, she looked forward to receiving these calls because they were so energized and cooperative. They made her feel special. Her credit rating was so good, that twice she merely called up the bank manager, speaking to him by his first name, and was able to extend the line of credit by a simple verbal request. In those days, the conversations were something like: "Hello Mrs. Smith. I trust everything has been good with your business and family. How is your son John enjoying the college life? Sure--we'll be delighted to extend your credit line again and I will have one of my associates prepare the paperwork and get it over to you as soon as possible. Look to speaking with you soon." Today was different. Her CPA was in the office that afternoon picking up profit and loss sheets when the call came in. It was not the manager. It was someone at the bank she had never met.
"Is this Mrs. Smith? I am Frank Thompson with ABC Bank." He began with a twang that could only be described as consummate arrogance.
"Well hello. How are you today?" Mrs. Smith said cheerfully.
"Fine. Mrs. Smith, I assume you're busy so let me come right to the point. We have reviewed your loan accounts and effective immediately I am notifying you that they are being called and are now due and payable." It came to her in words that were abrupt and stinging. Although her heart skipped a beat, her first reaction was they must be calling the wrong person. She immediately motioned her CPA to get on the line.
"Hi. This is Mr. Evans, Mr. Smith's CPA. Would you be so kind as to repeat what you just told Mrs. Smith?"
Mr. Thompson was clearly agitated in having to repeat himself: "I'm really not accustomed to having to repeat myself, but I will tell you again. Mrs. Smith's $200,000 line of credit is canceled effective immediately and all sums are due and payable. Do I make myself clear?
"I'm sorry, we don't understand. Is there a problem with the account? To my knowledge Mrs. Smith has always paid her monthly installments on time and his current as we speak."
To say Mr. Thompson was rude was an understatement. Now he became even more bothered by the conversation: "It's clear you don't understand. I would suggest that you read the clear language of the loan agreement that gives us the option of doing so at any time with two weeks notice. I am giving you this notice now. Having said this in very simple language, I assume you have the basic intelligence to understand what I just said."
"Sorry, but we're just trying to be able to digest this news. This is very serious. We can't just pull out our checkbooks and a make a full payment on one day's notice . You don't have to be rude to us." Although still in shock, Mrs. Smith tried your best to soften the conversation.
Mr. Thompson was now eager to end the conversation. "Let me make it even clearer. Based on what I just told you, our bank no longer has a business relationship with you. You would be well advised to take steps to pay this account so that legal action is not necessary."
"Please understand that we need some time to think this through . . . I should . . . I mean I need to get a hold of the manager first," she pleaded.
"I'm handling the account now. You are not to talk to anyone else but me." The tone of of his voice was unmistakable and threatening.
At that point the conversation went steadily downhill. She and her CPA spent the rest of the day going over the books and speaking with their attorney.
Sound like something that cannot happen in America to a successful small business? Well, think again. These are exact quotes of the conversation. The big bank is simply stomping out big small businesses to improve their balance sheets. The lifesaver that has thrown to the big banks in the hopes they would pass it to small businesses on Main Street has simply not happened. It is at least understandable if a large bank decides not to make a new loan in this challenge economy. But it's another thing altogether to cancel existing loans with good customers.
Is this an isolated occurrence? Not all. Here is another example. Robert Picou is the President of the California manufacturing company known as California Ribbon and Carbon Co., Inc., with a plant located in Los Angeles. Robert is the epitome of the seasoned business owner, knowledgeable, practical, optimistic, and understandably proud of his company's heritage. After talking to him, you get the uncontrolled urge to get in the car and drive out to his plant. You get the image of a certain industrial vibrancy which is missing in America.
He should be proud. It is a story right out of the movies. In 1939, his father started selling old fashioned manual typewriter ribbons door to door to business owners in the Los Angeles area. But unlike Willy Loman in "Death of a Salesman", he made it into a real success. 70 years later this closely held family corporation has continued to thrive. To manage the ruts along the way, twenty years ago he took out a business credit card with a well known company and secured a large credit line. Needless to say, he has paid it on time ever since. But then he got a sudden and unexpected surprise in the mail. The credit card company unilaterally cut his credit line and froze up this access to working capital.
He wasn't especially daunted by this news because after all, he had a longstanding relationship with his large bank. All we needed to do was call them up and ask for an extension of his line of credit. His bank did get $150,000,000 in TARP money to presumably free up the money. Ten years ago he owed them as much as $1.4 million, but because of the success of his business, was able to pay it down to $88,000. A perfect candidate to receive some of the bailout monies and create an even more positive cash flow for him and the neighboring economy. No problem, right? Wrong again.
With no explanation, his bank turned him down flat. Asking why, he has yet to receive a credible answer. With orders piling in, his company is now on the unenviable position of not being able to fund all the orders received. Not to mention the rippling effect it has on his suppliers and employees, all of which have a tangible stake in our troubled economy. It is apparent that large banks have no intention whatsoever of using bailout monies for the benefit of small businesses.
Now the good news. Smaller community banks are interested in your business through the vehicle know as an SBA guaranteed loan. These institutions are using the incentives given by the SBA guarantee to cut their risk of loss and build up a better portfolio to be sold on the secondary market. You just have to find the right bank. At least someone realizes the foundational strength small businesses give to the overall economy.
Small Business Startup Loans - The Charge Placed on Business Loans
There is no form of loan in which rates of interests are not charged on it. However, the rate which you pay on the loan will vary with the type of loan and the lender providing the loan. Every business owner should be principally concerned about the rates charged on the loan. That is why it is always advisable to go in for loans which the interest can easily be handled or those that will not call for fines. The rate of interest will however be determined by the amount of interest over the sum borrowed. This is what will normally be used to settle on the rate of interests that you will have to pay.
Apart from the above method of settling on the amount of interest, there are also many aspects that will have an effect on what you will finally pay as interests. These will take into account the total sum which you need from the lender, the financial record of your business, the security to guarantee payment of the loan, how you intend to pay pack the loan and your credit score.
How Will These Have A Bearing On The Rates You Pay As Interests?
The principal that you have to borrow:
Every reasonable business owner must know that the total sum which he or she wants to borrow will determine what he or she has to pay as interest on that loan. It is normal that a loan with a high sum will also call for a higher interest rate. This will however depend on the credit score of the borrower or if there has been a favorable financial relationship between the lender and the borrower. In some cases, the lender will also determine your rate of interest by the type of security which you present. If the current or future market situation may pose difficulties in trading off the security in case of failure to repay the loan, the rate of interest will also be high.
What you provide as security and how you are going to repay the loan:
In almost every case, what you provide a guarantee to secure the loan will be used to determine that rate you are liable to pay as interest. You can either take out a secured or an unsecured loan. If you opt for an unsecured loan, you must know that the rates which you will be liable to pay as interest will be higher that that for a secured loan. Remember that it is the duty of care of the lender to take reasonable steps to ensure that the loan is paid back in full. Also remember that the loan can be fixed or variable and this will all depend on the reason for the loan.
The manner in which you propose to pay back the loan will also determine that amount of interest you are going to pay. You should watch out on the manner in which you are going to pay back the loan. In some cases, you may be given just a period to complete the initial sum plus the interests. In another cases, you will be required to make periodic payments. These will all depend on what you intend to use the loan for and how that loan is being managed. Remember that improper management of the loan may cause you to pay fines on the loan.
The credit score of the business will also determine your access to getting the loan and the rate you are going to pay as interest. If you have a positive score in borrowing, handling and paying back on time, you stand a higher chance of getting a loan. Keep in mind that lenders often work in connection with each other and your credit rating will be made available to all of them.
What Customers Should Know About Chase Bank Home Loan Modification
Are you finding it harder and harder each month to make your mortgage payments? Are you worried about losing your house through foreclosure? There is an answer, your loan insurance company in conjunction with you lender determine when and if you can begin to seek a loan modification. A Chase Bank Home Loan Modification may be just what you need.
Before starting any process, you must find out who insures your loan. Lots of homeowners don't know who this is, since they have never needed to know this. You can simply call Chase Bank to find out. If your insurer is Fannie Mae or Freddie Mac, you probably qualify for a government initiative, the President's $75 Million Homeowner Stability Initiative. This program, which works with borrowers and lenders, will reduce your mortgage payment to just 31% of your monthly before tax income.
There are, of course, some conditions:
* You must be an owner-occupant
* Your debt must be no higher than $729,750
* Your mortgage must be initiated prior to 2009
* You have to be paying more than 31% of your gross income
* Your loan cannot have been modified before
If you need some help getting back on your feet financially and you think you might be eligible, consult with a financial counsellor. This President's plan was initiated to help both borrowers and lenders get financial relief. These loan modifications will give borrowers a better rate than the one they are getting through their bank.
If you loan is not insured through Fannie Mae or Freddie Mac, you still have alternatives. Chase Bank offers its own loan modifications. Before accepting foreclosure, investigate this option. Again there are conditions similar to the government program. The only difference is there is no cap on the debt left on your mortgage and your payments may be has high as 40% of your gross income. The monthly payments will be higher since there is no government financing. If you qualify, Chase will request you send a complete application package that includes your tax returns, pay stubs, bank statement and a financial statement along with a hardship letter.
Either way, through the government program or through Chase bank, a loan modification is a much better alternative than a foreclosure since you will be able to keep your house and not damage your credit rating.
Should you be struggling to pay your mortgage, see if you are eligible for the government or Chase Bank home loan modification program.
Home Loan Modification Hardship Assistance - Early Advice is the Key to Home Loan Modifications
Loan modifications are nothing new; they have been available to borrowers for a long time. Recently they have increased in popularity due to the implementation of President Obama's Making Home Affordable Act which outlines the process of streamlining these renegotiations. That is why we hear so much about them these days. If you are interested in investigating a loan modification, read about your options and what can be done to help you.
If you are finding it hard to pay your mortgage bill each month, don't just sit back and wait until you finally default on the loan and foreclosure takes place. Take matters into your own hands and make an appointment with a financial counselor to discuss what you can do about your own unique situation. You can find people who will help you for free and there are some who charge a fee. HUD-approved charity groups offer free counseling. However, given the demand of such services, many loan modification companies have been developed.
However you proceed is your choice, both paid and unpaid advisors have pros and cons. You will also find that some organizations have lawyers with whom they consult and other do not. It is better to pick an organization that has an attorney associated with it so someone is available to work with you to get a loan modification.
When you consult with a for-profit company, be careful. Just like there are many people desperate for financial help these days, there are greedy people willing to use tragic circumstances to line their own pockets. Pick a company with a good reputation, good customer service and good credentials. Check with the Better Business Bureau and only use a company that is in good standing with them.
The first thing you need to do is meet with a counselor. Take with you all necessary financial documents and be ready for a consultation. The counselor will assess your situation and offer you some advice depending on your circumstance.
If the counselor decides that a loan modification is a good option for you, then s/he will help you compose your hardship letter. In this letter you will explain to the lender why a loan modification is needed. Reasons could be layoffs, natural disasters, a death in the family, divorce, or a medical condition. Be concise. Your counselor will assist you in writing this letter and attach the required documentation. It is important that you have an experienced organization working for you and advocating on your behalf since this is a very confusing and detailed process.
If you have lost control of your mortgage, request loan modification hardship assistance. You can get some free advice about selecting and applying for a loan modification company from many sources.
Home Loan Modification Financial Hardship Assistance - Advice For Those in Need
Loan modifications have always been a possible solution for financial problems, but they have become more popular recently due to the passage of President Obama's Making Home Affordable Act. Along with this Act, the process has be simplified and it has become easier to be approved. It is worth the time taken the time to investigate this plan.
If you are experiencing financial problems, don't put off this investigation. Take control of your situation and discuss your circumstances while you still have some options. You can get advice free from a non-profit organization or you can employ an agency. Free service is proved by HUD-approved organizations. Recently many businesses focusing on helping people access a loan modification have been formed in the last while as this option has become more popular.
Both free and for-pay services have pros and cons. Some include legal services and if possible, pick one of these since you may need legal help to get a loan modification.
Remember when you are using a for-pay service, there is the chance you will fall victim to unscrupulous people who are willing to take advantage of people in their lowest hour. Research the company and pick one that has a good reputation and is in good standing with the Better Business Bureau.
Start by making an appointment with a counselor. Bring any important financial documents. The counselor will look at your present circumstances and discuss your options with you, highlighting your best choices.
If a loan modification is the best choice, the counselor will instruct you on writing a loan modification hardship letter. This letter tells your lender why a loan modification is necessary in your circumstances. Some credible reasons for having difficulty are unemployment, natural disasters, death, illness, divorce or other unforeseen negative events. Your letter should be concise and accurate. Your counselor will help you write it, send it along with any other necessary documentation to the lender and advocate on your behalf as well as work you through the process.
If you are finding paying your mortgage bill each month is a source of stress and is taking all the joy out of life, seek Home Loan Modification Hardship Assistance. You can learn more for free here as well as find out how to work with a loan modification service.
Basic Facts on Small Business Loans
Basically, you need to a lot of resources to effectively manage your business. Your main purpose may start from a new idea for a business project or even an old product or service with a new method of introduction. Either way, you must realize that a business calls for a lot of requirements and necessities, most especially in the financial aspect.
Business loans are widely available which can range from government sponsored loans to private loans designed to assist new businesses. Actually there are many other options but it will depend on your preferences. If you want your interest rate to be low, then opt for loans coming from government grants.
If you do not want to venture in this type of loans, you can choose from those that are available in the open market. But these types of loans have a few conditions because these are provided by lenders. Typically, there are two types of loans; the secured and unsecured loans. For the initial process, you are required to come up with a well-drafted business plan or proposal along with your loan application form.
A clear, comprehensive and well-drafted plan will usually make it easier for you to obtain your loan. Usually, a concise assessment is done by lenders to scrutinize if your business plan does deserve a loan approval. This will not take too much time because lenders primarily understand your business needs so they try to minimize the time spent in loan processing.
In the case of secured loans, these kinds of loans will usually require collateral. They are easily available and are also appealing to a lot of people because of its low interest rate. Government loans are secured loans that are given to the business owner who can prove that the business is beneficial to the whole community. In general, the approval of loan from the government is based on the credibility of the applicant.
On the other hand, the unsecured loans do not require collateral and involves a comparatively high interest rate. In choosing between these two types of loans, you should first weigh the advantages and disadvantages of each type before finalizing your decision. In this way, you ca be ensured you are making the better deal.
Business loans are typically processed in all major banks. Rest assured that you will not have a problem with the banks assisting you with the whole process because these institutions are interested in your business as much as you are interested in your loans. You can also have the option of applying for the loan online; however it is advisable to apply for it in person. This is for the reason that your questions about the loan will be readily answered by a bank representative. In this rate, you will be able to minimize the chances of making a mistake and will enable the bank to determine your exact needs for the loan.
So, before you commit to any business venture or pursue your business loan, make sure you have done your advance research to avoid any unwanted circumstances. Once you have prepared enough, your loan transaction will surely be stress-free and a rewarding experience.
Credit Card Services and Business Loans for the Small Business
To achieve financial independence, experts encourage even currently employed individuals to consider entrepreneurship. Setting up your own business, no matter how small, is touted as one of the best ways toward building the foundation for wealth. Those who are concerned about having a safety net need not take the plunge recklessly. One can start setting up a small business even while employed.
Of crucial use to small businesses are credit card services and small business loans. The entrepreneur needs to know how to avail of these tools and how to effectively wield them for maximum business growth.
Credit Card Services
A small business would do well to get reputable credit card services in order to prosper in the current business climate. Availing of credit card services will enable it to accept both credit card and debit card payments. This is true either for brick-and-mortar businesses or internet based online businesses. After all, most consumers nowadays routinely use credit cards or debit cards for payment purposes. It only makes good business sense to be well-equipped for the needs of credit card users and debit card users as well as for the needs of customers who pay in cash.
Merchant services provide credit card services covering a wide range of solutions for the processing of credit cards and debit cards as payment options. These credit card services include traditional terminal equipment at point of sale, where credit cards or debit cards are swiped. It also includes software and high speed IP solutions for both traditional commerce and e-commerce. Credit card and debit card payments can, therefore, be accepted in person or through the internet, by phone or by fax.
Small Business Loans
Any business – whether a small start-up business, a medium-scaled one or a big business company – will be needing an infusion of additional capital sooner or later. Additional capital is always needed for expansion, additional inventory, additional manpower, new systems, new equipment or a new physical layout.
Capital is not always easy to come by, though. The original investors’ personal coffers may have been emptied by the earlier outlays. Prospective investors may not be keen on shelling out funds in times of crisis. Businesses, therefore, have no choice but to seek business loans.
Getting business loans is a difficult process. Even small business loans are not readily approved. Be prepared to present a lot of documentation and paperwork. For small business loans, the proprietor’s personal credit history is taken into account and related references need to be submitted. Of course, the company’s financial statements are just as important in proving the feasibility of the business and its capacity to repay its business loans. Having a detailed business plan will show your business strategies and projections, demonstrating your business acumen.
Unfortunately, even with all the requirements completed, applications for business loans – including small business loans – are, more often than not, disapproved.
Solutions
Some merchant services provide a comprehensive solution for the needs of small businesses in relation to credit card services and small business loans. The set up is elegantly simple. A small business need only avail of the company’s credit card services to be eligible for merchant cash advances. These cash advances are actually small business loans, except that there is no need to go through the complicated application process for business loans. Repayment is made very easy and worry-free, too. A certain small percentage is built into the credit card processing rates to take care of the advances. This way, repayment is actually done automatically in a very affordable manner and according to income flow.
Small business owners would, indeed, be wise to look into these timely business solutions.
