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Monthly Archives: September 2017

About Cash Advance Loan

Sometimes people wonder if there is a way around this issue. Is there? Of course there is, it is all a matter of wisely managing ones finances, balancing the ins and outs of money and keeping track of your expenses. Easier said than done? Not quite. Payday loans can really save your neck when you find yourself in a predicament, but using them regularly as a means of getting money when you are low on it is not a good idea. Read on to find out why.

Quick Cash Loans And The Fast Approval Topic

People are drawn to this type of loan because they are easy to obtain. No other loan is obtained as fast as this one. Usually, getting approved for a loan of this sort is very easy. Specially if you are applying online. The only requirements are to be of age, to be an American citizen and to show proof of income. Following some simple and fast steps, it is very frequent to get approval in a matter of hours. The needed money will be wired to your account in less than 24 hours after approval.

This is very convenient in case of an emergency. Sometimes, unpredictable events get in our way and we find ourselves unable to economically face those situations. What do I refer to when I speak of an emergency? It all depends on each person, a car breakdown might not be of relevance for a person who has two cars, but for someone who uses the vehicle to go back and forth from work, it can really be a big deal.

Quick Cash Loans And The Interest Rate Issue

With a cash advance loan, you will be able to obtain from $700 to $2100, depending on the lender. It might not be a lot of money, but it will be enough for a pricy medical bill you cannot afford two weeks before payday or for any other unexpected expense you are not able to afford. These loans last approximately two weeks and they are meant to be repaid on the next pay day, hence the name of the loan.

What concerns most users is the high interest rate this loan carries. This rate ranges between and annual 350 percent and 700 percent, which might seems monstrously high compared to the rate charged on a regular personal loan. The problem arises when the borrower finds himself unable to repay the loan after it is due, such a high rate over a two week loan might not seem too much, but what happens when it is not repaid timely? Interest rate will begin to pile up, becoming a financial nightmare.

My best piece of advice: use cash advance loans cautiously and the will always be of help.

Learn More About Auto Title Loan

Car Title Loans

This type of loan is, as stated before on this article, a secured loan. You borrow a sum of money by pledging your car as a security for the loan. The amount of money you can apply for ranges between $1100 and $3000 more or less. As you can see, this loan can be compared to a secured form of a payday loan. It is also a short-term loan, usually lasting between 15 and 30 days at most. If you fail to repay it at the end of the loan, you will be able to “roll it over”. If “rolled” over, the interest rate on the loan will accumulate.

The tricky thing about this loan type is that if for some reason you fail to repay it after it has been “flipped” the maximum amount of times (by law, 6 times), you may have your car repossessed.

The interest rate on car title loans, just like in payday loans, is very high. Perhaps even higher than on a cash advance loan. The normal rate is about 25%, or a 300% annual rate.

Vehicle title loans are meant to be used only in an emergency, otherwise, if used regularly for common purchases, they constitute a very bad deal for the consumer.

Auto Title Lenders

These are the lenders offering auto title loans. They make an awful high amount of profit from the interest rate they charge on the loan, and sometimes will do anything to entice you to apply for one of their loans. They will focus on bad credit and elderly people. If you are going through a rough patch and you are in need of money, applying for a title loan involving your car probably will not be the best idea. Try and find other sources of finance because in the end, the interest rate will end up eating up for debt, and you will not benefit from this at all.

Often, these lenders call themselves 601 lenders. Why is that? Because they can only charge high interest rates if the loan is above $800.

Vehicle Title Loan Requirements

Qualifying for this type of loan is very easy. It might be a bit harder than qualifying for a cash advance loan, but easy nonetheless. The first and most important requirement is a car. You must be a car owner (which must be free from liens against it) and be in possession of the title. You must also be employed and be an American citizen with at least 6 months of residence in your current home.


About Small Business Loans

Let’s Cough It Up

Since government grants are so limiting and relatively difficult to get, the only possible solution is to apply for a loan to get the necessary cash with which to start off. Nothing is really free in this world, so you must give something to be able to receive something, right?

What Do You Give, Anyway?

Well, in order to receive credit, you must give a security. This is done by “pinning” your property or car to the loan, until you have finished paying for it. This is similar, of course, to any other type of loan, so why even mention it? You see, the great difference is that you will not be using the money for leisure or pleasure, but for working your eyes out in order to get your daily bread.

This fact alone will mean a big difference regarding the amount you get and the payback conditions. So, to do things right and make them look even better, make sure you write down a detailed plan of whatever your business needs to start working: What your expenses will be, fixed cost, profit, target market, inventory, cash flow and a projection of the evolution of the business for the first five years.

If You Look Great, You Will Also Feel Great

Prepare your business plan and have some copies printed, so you can present it in a neat folder to the banker or the lender when you finally start searching for the loan. The fact that you’ve gone into all the trouble of designing a business plan will make you feel great, giving a good image to your lenders, temporary “partners” of your business.

Be Prepared

The last thing you want to do is to go to a lender empty-handed and ask for a handful of bucks. They’ll ask you a lot of questions to which you will have answers, if you take a well-designed business plan. Let me mention something that is one of Aristotle Onassis’ favorite sayings. “Know as much as you can about the person you will be speaking to and about his business”.

This means, don’t venture into a negotiation until you know the answers to all the questions you will be asked, or at least, as many as you possibly can. If you are going to ask for a loan, then you have to know what the current rates are, the conditions, the requirements and any little catch that might get you a better deal.

The Little Millionaire

Onassis was a rather short guy and not very handsome, but he had the gift of making millions. His personal assistant used to say that he would spend the whole night pacing about his cabin on the “Cristina”, speaking out loud, and thinking up all the possible questions he would be asked the following day, and obviously, all the answers.

It is a good thing to imitate the healthy, the wealthy and the wise, even if it is only to be prepared for what you are about to initiate and being capable of designing a dream and fulfilling it. Your small business will be grateful and before you know where you really are, it may be even bigger than you had planned.

Understand What Your Lender Is Saying

Mortgage Or Home Loan Concepts

Mortgage loans have a jargon of their own and also share concepts with other loan types. That’s why we will start with this loan type. The PRINCIPAL is the amount of debt that you owe to the lender. This amount does not include the INTERESTS (cost of the loan) that are generated over time when the INTEREST RATE (which is a percentage that indicates the price of the transaction) is applied to the principal.

A FIXED RATE is an interest percentage that does not change over time and remains the same throughout the whole life of the loan whereas a VARIABLE RATE is an interest percentage that changes according to market variations thus increasing or reducing the amount of the monthly payments. The fixed rate provides more predictability while a variable rate is always lower than the fixed rate if considered at the same time.

Usually a loan transaction has two parts: the lender and the borrower. When it comes to mortgage loans, the lender is called the MORTGAGEE and the borrower is referred to as the MORTGAGOR.

The property used as collateral or being bought with a mortgage loan has a certain value that needs to be known in order to process a loan of this kind. In order to do this, a realtor specialist will calculate this value based on many factors known due to his profession. This process is called APPRAISAL and implies an approximate calculation of the property’s market value.

The lack of payment of several mortgage loan installments implies a DEFAULT. The consequences of a default if the repayment is not restarted are very serious. The gravest one is FORECLOSURE which is a legal process by which the property guaranteeing the loan is sold compulsory in order for the lender to collect the money owed from the amount produced by the transaction.

Refinancing And Home Equity

REFINANCING is the process by which a previous mortgage loan is replaced with a new one. This can be done either to save money by obtaining a lower interest rate or by reducing the length of the loan or to make the loan more affordable by extending the repayment program. When refinancing a home loan one needs to check that PREPAYMENT PENALTY FEES (if present) do not turn refinancing the home loan into an expensive decision. These fees are often charged by lenders that want to make sure that the borrower remains paying the loan installments if you repay the loan sooner than agreed.

HOME EQUITY is the difference between the amount of debt guaranteed by a property and the market value of the asset at any given time. The available equity on a property lets the owner obtain further financing by securing an additional loan with the equity. These loans are known as HOME EQUITY LOANS and also as SECOND MORTGAGES.