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Category Archives: Finance

Deal With Liquidity Problems with Unsecured Loans

Unsecured loans basically are loans where one doesn’t have to give a security to hedge the loan with. It means that it will come across as a boon to people who don’t have an asset to declare or a security to assure that they would pay the loans. Generally as a rule these loans are difficult to obtain as it’s the banks risk at which the loan is given and if the borrower defaults the bank would have to suffer immense loss. Thus these loans have a higher rate of interest. Not as high as loans given to people with a bad credit history but higher then loans given on the basis of a security.

Thus as a rule of the thumb, one has to have a good credit standing with the bank to qualify for an unsecured loan. The dealings with the bank, the repayment of previous loans and the payment of taxes all come under the scanner when one applies for unsecured loans. Unsecured loans are generally given to employees who have a good salary package as they are the ones who have the potential to pay back the loans with the interest. One has to be a major, which is above the age of 18 to qualify for a loan.

There are various advantages for unsecured loans, one being that the individual does not have to pledge the security with the bank. Hence, in case of non-payment of interest or principle, the bank can not take over the asset. This saves the individual a lot of headache because in most case for a loan of a particular amount, the bank requires a security of a larger amount. And then when the borrower defaults the security is taken over creating a bigger loss for the borrower. In this way unsecured loans are a smart way out. One has to pay a higher rate of interest on the amount but as long as the interest is within the range of the borrower then this option would be the best one can get.

The procedure for filing for an unsecured loan is that the borrower has to go to the bank with the documents that are required. But before that, he has to do a bit of research on various banks and the interest rate offered by them. Then the borrower also has to see the documents required by the bank and if he can provide them or not.

Commercial Loans Facts

Commercial Loan Approval Can Take Six Months Or More?

This is not necessary true. You may take six months or more to meet the requirements for applying but within less than two weeks, banks or financial institutions can approve commercial loans without further hassles. There is some documentation required that does not vary that much between lenders. Therefore, you should act wisely and find out what you will be asked for prior to actually applying. That way, you will save yourself a lot of time.

Do I Need Business Counseling Before Applying? Is It Costly?

Business counseling is not a prerequisite for a commercial loan approval and even if it were, most lenders provide that service for free. Therefore, you should not worry about this issue. You need to have in hand as much information about your business as possible so when you contact the lenders, they can analyze your situation and come up with a financial solution that suits your commercial needs.

Can I Get Cheaper Rates If My Business Is Small?

There are really no differences or promotions for small businesses as opposed to big ones. Actually, interest rates are negotiable and therefore, chances are that big companies have more negotiating power and skills to get reduced rates. However, since rates are the result of an agreement between the lender and the borrower, other loan terms can be negotiated so as to obtain a lower rate (shorter repayment schedule, co-signing, security, etc. )

Is It Harder To Get Small Amount Commercial Loans?

No. Moreover, the opposite is true: by spreading the overall money lent by a lending institution into many borrowers, the risks are reduced. It is harder for 100 borrowers owing $50,000 to default all at the same time than for a single borrower owing $5,000,000 to default. The overall amount is the same, but the risk is significantly smaller. Therefore, it is a lot easier to get approved for small amount loans because lenders are eager to do business with this kind of commercial loans.

There Are Not Many Commercial Loans Out There. Are They?

Indeed, there are all kinds of commercial loans available like guaranteed loans, loans for veterans, handicapped and all kind of assistance loans for those in need or underprivileged. There are also loans and Lines of Credit for Importing and Exporting, small business loans, constructor loans, etc. There is surely a commercial loan suit for your needs.

Self-certified Loans

By granting the self-employed borrower any amount on a loan, the lender is risking the loan amount and the certainty of it being repaid. The self-certified loan can be granted to a self-employed business owner with no regard as to whether or not he has certified accounts or no proof of income.

Self employed people can not readily produce any documents to support their income totals, so they may not be seen as a favorable recipient of a loan.

Self-certified loans allow or enable you to declare your current or expected level of income without financial documents and they are not combined with any proof of income for the purpose of arranging loans or mortgages. You will just have to make a declaration of your intent to repay the loan on time in a signed statement.

Self-employed borrowers usually have to provide documented proof of their income of two or three years to show that they can repay the loan.

Self-certified loans are specially designed to cater to people who do not have audited income proof because it can be difficult for a self-employed person to provide documented proof. In order to find out if you can afford to borrow the loan, you can receive a free quote before you actually apply for the loan and you can utilize the helpful provision of self-certification of your income to borrow the amount you need.

Self employed borrowers can choose a secured self certified loan as a way to offer more credibility to the lender. The self employed person may have more restrictions on the types of collateral they can use as they are unlikely to be covered for unemployment unless they cease to do business.

A debt consolidation loan can be a useful tool of self employed people to combine their debts together and get rid of their bad debts. A debt consolidation loan can include home improvement loans used to totally redo the home, a new car loan, a get away home or a poor credit loan.

A self certified loan could be available when you are self-employed, and you seem to be having a difficult time proving how much your income is.

You can enjoy the similar benefits in the terms of the loan rate as an employed borrower may, since you can self certify your income. If you have the equity to borrow with a self certified loan, the cash to do whatever you want can be the end result. It may be possible for you to pay off all of your credit card bills and left over utility bills and possibly take a bit of time to take your spouse somewhere special and relax.

The chance to obtain needed cash without providing proof on their income, through the use of the self certified loan is an important option for the self employed business owners.

Wedding Loan

How To Deal With Wedding Expenses

You have at least three possibilities to handle with your wedding expenses. You could use your savings, your credit card, or you could get a weeding loan.

Why To Take A Wedding Loan?

A wedding loan may be the best options to afford your wedding expenses, without leaving your credit card’s limit in red, and without using your whole life’s savings for one day’s purpose. A good idea may be use part of your savings to afford some of the wedding expenses and get a wedding loan to cover the rest of them.

How Much Can I Borrow?

Most of lenders will offer you to borrow up to $25,000. Therefore, this may vary, according to the lender, your credit score and your repayment possibilities.

What Are Wedding Loans Benefits?

Wedding loans are cheaper than other kinds of loans. They are possible to obtain even with bad credit, and you will be able to get terms and repayment conditions according to your needs and possibilities.

Wedding loans can be used to finance almost every wedding expense. Starting with the flowers, passing through the reception, and of course, the wedding dress.

How Are Wedding Loans Offered?

Wedding loans are offered in both, secured and unsecured ways. Taking a secured loan you will be required to place a collateral such as a home, a car or any other item that can cover the loan in case you fail in doing the repayment, as a benefit, these kind of loans will be cheaper. Unsecured wedding loans will not require a collateral, but they can have slightly higher rates.

How Are Wedding Loans Interest Rates?

Wedding loans’ interest rates are offered in two ways, variable or fixed. Fixed interest rates will lock your loan payments, and you will e paying the same amount during the entire repayment period. Variable rates, in the other hand will change within the repayment period, this means that you can start paying a lower amount than you will be paying with fixed rates at the beginning and, after a few months start paying a higher amount until you have fully repaid the loan.

Interest rates on wedding loans are calculated over the chosen loan’s terms, the credit score and incomes of the borrower.

Things You Should and Shouldn’t Do with Loan Modification

First, tell your significant other. Yes, it’s a big blow to your self-esteem, but it will work against you in the long run because you and your spouse are required to negotiate for the modification. It’s better to work together in solving the crisis and learn from your mistakes.

Second, get organized. This means you get out of your chair and start being systematic. Pull out your utility bills, two to three months of pay stubs and bank statements, monthly expenses, current mortgage statement, and etc. These will help your lawyer and advisor in building your case. The quicker you do it, the faster the negotiations begin.

Third, seek professional representation. The truth is, you can do away with it and negotiate with a lender directly. However, a lawyer or loan modification expert can help you represent the case to your lender in such a way that your modified loans become realistic and payable. There are many cases where homeowners who speak for themselves overestimate what they can afford. Consequently, they couldn’t afford to pay their modified loans.

Fourth, have a back up plan. Not everyone can be qualified for a loan modification. Talk to your lawyer for other options.

Fifth, don’t hide. This is the worst thing you can do right now. You should inform your lender or lawyer that you know about your delinquent payments and are taking steps to solve the problem.

Sixth, don’t feel ashamed. You’re not the only one experiencing this — millions do. The way to change this is to take action so things don’t become worse.

Seventh, don’t wait too long. It’s never safe to procrastinate. When you get a notice of foreclosure, it’s a signal for you to stop wallowing in self-pity and call a loan modification adviser or lawyer. Remember: The longer you wait, the more difficult it would be for you to get out of that hole.

And by the way, don’t think it’s too late to take some action. As long as you are living in your house, you still have the chance to save your home.

Tips to Get Approved For A Loan Modification At Any Bank

There were a lot shady and predatory lending practices that banks may have used to get you into a mortgage that has made it very difficult for you to pay it back. When things aren’t sustainable for you, the bank loses and so do you. That means you both have a mutual interest in modifying the bank loan to something that makes you both better off.

There are things that you have to show the bank that you’re doing to really get them to consider your application. They’re not really looking for a sob story about how you can’t pay your bills. That doesn’t really instill confidence in them that you can pay for things into the future. The first thing you want to show them is that you’ve tried every avenue available to make this mortgage workable for you. They have to see that you’re not someone looking for a free ride, but someone that is working to keep their house and are willing to do what is necessary to keep it.

Another thing you can do that will really help the bank out is providing them with a very detailed budget of what you do with your finances. They need to see exactly how much you are working with and where you have to put it. You will also want to include another budget of what how you would expect to pay a cheaper mortgage. Include as much detail as possible, as well as the amount of hours you work to pay the bills. The more information they have, the more serious the consideration will be.

The last part on how to get approved for a loan modification is honesty. It can seem so convenient to just bend the truth or add on a little more expense here and there. You’re not going to get ahead by telling lies. Banks will go through your records, credit history and do every sort of background check available. If you lie, you’re not going to get one. If you get caught lying you won’t get any help and will probably be foreclosed on.

Loan Modification Contract

Everyone needs a place to live, but the cost of living is a great one, especially if your bank gave you an unfair contract that has resulted in you overpaying for your home for months if not years  The credit crisis has really put the crunch of banks to try to find a way to keep their clients paying without driving them into bankruptcy.

The desire of banks to keep a steady cash flow coming in has led them to offer Mortgage Loan Modifications, which is essentially the contractor and the contractee coming together again to modify the original terms of the loan as stated in the original contract.  Obviously, since a contract modification entails going back in to the contract, those seeking to reduced their mortgages and interest rates should be ready to learn some of the technical jargon the banks use in their often daunting contracts.

Yes, they are quite boring to read through, but odds are if you are that desperate to get a mortgage mod than you are probably willing to bite the bullet and look through the contract.  Indeed, it is quite likely that know the terms of your contract because if you weren’t meeting them you would have been foreclosed or possibly imprisoned for fraudulence, but you it would behoove you to look over the contract.  It is especially important to look at your contract or have a lawyer look at your original contract, because there is a very good chance that it was drawn knowing that you wouldn’t not be able to make the payments; this is one of the huge factors that led to the whole housing and credit crisis.

Due to the banks greed, you may be able to now modify the contract to remove these fraudulent additions.  After lowering the premium and the high interest rates on your loan, the hopes are that you will actually be able to pay your loan, putting money back in to the banks and hopefully some money back in to your own pockets.
Maybe after all of this credit crisis is resolved and the recession is reversed, the banks will get the picture and write good contracts from the start so that contract modification isn’t needed.

Car Title Loans

The total loan process can be completed quickly on a title loan, the money is often made available the same day. As long as you pay this loan back on schedule, this is a great borrowing option with less headaches and less paperwork.

A car title loan is a loan that you secure through the value of your paid off vehicle. A title loan will not be granted, as a usual order of business, on a vehicle that is not paid off and it must be granted only to the person who is named on the title document. The resale value of the titled vehicle will be the base amount of cash offered on the title loan. An older less gently used vehicle is going to help you receive a lesser amount on a title loan, but a newer vehicle will bring in a loan amount of greater value.

These types of loans generally carry high interest rates, which do encourage the borrowers to pay them off more quickly and create a larger profit margin for the lender. If you pay back the loan within thirty days, the average time limit of the loan, you will pay one large interest fee; it will seem to be worthwhile if you are in great need of money at the time.When you cannot pay off the loan within the thirty day time period, the loan can be rolled over to the following month for up to six months; each time it is rolled over there will be additional interest fees added on. You may find you are owing a great deal more than you borrowed, because these extra fees can mount up quickly.

If at the end of six months you are not able to pay off your loan, your car is at risk to be repossessed by the lender and sold to recoup their losses.

If your plumbing has gone out and you’re trying to clean up three feet of water in your home, a loan like this may be your answer. If you have unexpected medical expenses, this type of loan can also take care of that. These are examples of how to use this type of loan in a responsible way.

Before you agree to this type of loan, be sure to have a plan for repayment, so you will only pay one finance charge and still have the money in plenty of time for your need.

When used appropriately, a car title loan can save you, from ruin. The money will be there for you if you need it, but careful consideration should be taken before agreeing to any loan plan.

Applying For Unsecured Loans With The Same Lender Benefits

The fact that you already have an outstanding loan with a lender may be negative or positive for your new application according to your repayment record and financial situation. The thing is that both these factors will affect your approval process with other lenders too and thus, there will not be much difference. However, there are several advantages that you can obtain when applying with your already known lender.

Avoiding Long Credit Verification Processes

As an existing customer, your credit score is probably already being monitored by your lender from time to time. Also, your credit worthiness has been established by the lender already as well as your ability to repay the outstanding loan. Thus, there will not be many hassles if you have to go through an approval process with the same lender as compared to what you would have to go through with another lender.

A simple credit pull and income verification may be required and sometimes, if the new amount is not that high, this can also be bypassed. After all, if you have already qualified for a loan with them and your credit and financial situation have not changed that much, there is no reason to doubt your ability to repay the new loan just like you were repaying the existing one in a timely manner.

Single Monthly Payment As Opposed To Multiple Payments

When you apply for an additional unsecured loan with the same lender, you get to make a single monthly payment every month instead of several payments like you would have to make if you took different loans from different lending institutions. This is really an advantage and provides at least two benefits for the borrower we can think of.

For starters, it is definitely cheaper. This is due to the fact that you will only pay for the costs of a single lender instead of two separate ones. Thus, unless you are dealing with an unscrupulous lender, you will only be charged administrative fees, and other costs associated with the lending process once. Also, the fact that you need to remember to pay to a single lender will contribute to avoiding delinquencies and thus keeping your credit clean.

Longer Repayment Program Or Higher Monthly Payments

When you request an additional unsecured loan with the same lender, there are basically two methods that can be used to provide the money. If you want to keep your payments the same so as to obtain the funds but avoid compromising your income any further, the lender can easily extend your repayment program so as to include the new amount keeping your monthly installments unaltered.

If you want to repay your loan sooner and you do not mind raising your monthly payments a bit, the outstanding loan can be fully cancelled and a new loan that includes both the amounts of the previous and the new loan will be assigned. The resulting installments will be a bit higher depending on the loan amount you requested but the repayment program will be shorter.

Favourable Interest rates

Loans have always been a dreaded experience for most people because of the risk and financial pressure attached to it. However, the risk factor has been greatly reduced with the introduction of various new borrowing schemes. For example the unsecured ones, are easily available and also have easy terms and conditions. But the problem lies in the fact that, such borrowings are often rejected for bad credit history of the applicant. Under such condition, where the applicant is repeatedly rejected for unsecured debts, cash can be availed from secured bad credit loan. Such debts have brought about great sigh of relief among a large number of people in UK, who can now depend on it in case of financial requirements.

These debts require something as pledging of security to guarantee the repayment of the borrowed money from banks or financial organisations or any other lender. If the loan is not repayed within a particular period of time, the lender has full right to confiscate the pledged property and sell it to raise the outstanding amount. These bad credit secured loans are designed to provide sufficient finances to those with low or no credit. Additionally, such loans have low interest rates because of the presence of security deposit and so it is also safe for the lenders. Thus, the lenders will be able to recover their money.

The most common types of securities that are pledged under these secured bad credit loan are real estate or automobiles. Infact, it can be anything that is equal or has greater value than the amount that is borrowed. In most cases, security pledges like car or home can be used freely by the borrower as long as the repayment period goes on. The borrower can go on driving the car or continue living in their homes as long as he/she continues to make loan payments without defaults. Some lenders even lend money by keeping securities like jewelry, coins and other collectibles.

Infact, some banks provide bad credit secured loans and has favourable eligibility criteria with almost free or no obligation quotation. The amount that you require is dependent on the value of the security pledged as well as other eligibility criteria. The amount provided under secured loan is from £7,000 to £75,000. However, though it depends on the lender, a higher amount can also be borrowed depending on your ability and capacity to repay the money through monthly installments as well as the value of security pledged. The best way of obtaining secured bad credit loan is through online services, because filing for an application form to each bank is too complicated and time consuming. For online applications, all you need to do is, visit any of the loan websites and apply online without facing unnecessary harassments. It takes lesser time and is also simple. You are not required to go around consulting finance experts. The websites provide you with every details necessary to obtain finances. In fact, it also sometimes, come up with special advises from some of the best experts, who advises you with the best finance sources.