Personal or Unsecured Loans

Personal loans, or ‘unsecured loans’ involve taking a loan or borrowing without any upfront collateral. They usually involve less paperwork compared to secured loans like mortgages but the period of loan is shorter and loan amounts smaller. Because there is no collateral put up or any repossession on default of loan payment, personal loans pose … Continue reading “Personal or Unsecured Loans”

Personal loans, or ‘unsecured loans’ involve taking a loan or borrowing without any upfront collateral. They usually involve less paperwork compared to secured loans like mortgages but the period of loan is shorter and loan amounts smaller. Because there is no collateral put up or any repossession on default of loan payment, personal loans pose considerable risks for lenders due to the risks involved. Hence, the rates may sometimes be higher.

For people with bad credit ratings or scores, it can be quite difficult to obtain a personal loan and the interest rates can be high; however some lenders do arrange a deal if the loan applier has a co-signer to stand guarantee.

These loans can be utilized for almost any purpose from college tuition fees, settling medical bills or to take a vacation. Basically, it provides access to funds for an immediate need. Some of the other uses of a personal loan can be:

• To buy a vehicle,
• For wedding expenses,
• For home refurbishment or improvement,
• To make a down payment on property purchase,
• To meet business expenses, and so on.

Advantages of a personal loan

There are many advantages a personal loan can provide.

• These loans are available to those with good credit scores at low interest rates.
• They offer fixed repayment periods and interest rates
• Consolidating high interest rate credit card payments with low-interest rate personal loans can help save a lot of money. Unlike credit cards, fixed rate loans do not have a ‘default’ clause and penalty payment.
• It is a faster and easier process and can be done even online; the availability of funds can be done in just a few days’ time.

Applying for a unsecured loan

Since this kind of loan is not backed by any collateral, the applicant’s credit history is of prime importance. On completion of necessary application, the applicant has to authorize a credit check and give sufficient documentation to prove that the loan repayment can be made. The lending company or bank completes the underwriting formalities through automated systems or through human verification process and the loan can be approved or declined. If the loan is approved, the money is transferred to the applicant’s bank account or a bank instrument sent to the applicant’s address. Direct bank transfers usually follow an online personal loan application request.

Caution

The single most important requirement for an unsecured or personal loan is good credit; sometimes lenders are willing to provide personal loans to applications with bad credit rating depending on the situation and if guarantee can be provided by a co-signer.

However, there are several instances when people have been duped by shady firms and agencies working on the Internet; they lure people with bad credit by advertising these types of loans without credit checks. They may request the applicant to provide processing fees or even make a couple of monthly installment payments to provide good reference. The money is as good as gone and there will be no evident sign of any loan forthcoming.

Easily Build Your Business Credit Simple Steps

Business Credit is credit that is obtained in a Name. With credit, the business builds its own credit profile and credit score. With an established credit profile and score, the business will then qualify for credit. This credit is in the name and based on the business’s ability to pay. Since the business qualifies for the credit, in some cases there is no personal credit check required from the business owner.

A starts building a brand new credit profile much the same as a consumer does. The starts with no credit profile. The business gets approved for new credit that reports to the business credit reporting agencies. The uses the credit and pays the bill timely. A positive business credit profile is established. As the business continues using the credit and pays bills timely it will qualify for more credit.

A cell or home phone number as your main business line could get you “flagged” as an un-established business that is too high of a risk. DON’T give a personal cell phone or residential phone as the business phone number. You can forward a virtual number to any cell or landline phone number.

Credit providers will research your company on the internet. It is best if they learned everything directly from your company website. Not having a company website will severely hurt their chances of obtaining business credit. There are many places online that offer affordable business websites so you can have an internet presence that displays an overview of your company’s services and contact information.

It is important to get a company email address for your business. It’s not only professional, but greatly helps your chances of getting the thumbs up from a credit provider. Setting up a business email address is just too easy and inexpensive to neglect.

One of the most common mistakes when building credit for your company is non-matching business addresses on your business licenses. Even worse is not having the “required” licenses for your type of business to operate legally. You will need to contact the State, County, and City Government offices to see if there are any required licenses and permits to operate your type of business.

A business credit report can be started much the same as a consumer report commonly is, with small credit cards. The business can be approved for small credit cards to help them build an initial credit profile. These types of initial cards in the business world are commonly referred to as “vendor credit”.

A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 15, 30, 60 or 90” day terms. This means that you can purchase their products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the bill in full. So if you’re set-up on Net 30 terms and were to purchase $300 worth of goods today, then that $300 is due within the next 30 days.

Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it. When your first Net 30 account reports your “tradeline” to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Experian and Equifax.

Useful Facts About Personal Loans and Online Transactions

Personal loans are becoming increasingly easier to avail these days, thanks in great measure to the ease of verification and processing that is done prior to loans being sanctioned. Personal loans fall into two broad categories – secured and unsecured.

Secured loans are usually for higher amounts such as buying a second home, property or vehicle purchase or even educational loans taken against a mortgage that is generally guaranteed against default through ‘secured’ property such as a house etc.

Unsecured loans are personal loans that are given for smaller amounts like payment of medical bills, credit card outstanding or other exigencies that require immediate cash. If you have a good credit rating it is quite easy to acquire a personal loan without any guarantees; the amount of loan depends on take-home salaries and assets that you may possess. Unsecured loans can be processed even online if all requirements are met; the repayment is done in pre-fixed, equated monthly installments with provision for foreclosure depending on the finance company that is sanctioning the loan. The advantage of a personal loan is that unlike credit card payments which are compounded interest and keeps accruing if you do not pay the installments on time, a personal loan is based on low interest rates and can be paid out quite easily. In the event of unforeseen circumstances like a job loss or personal injury resulting in loss of income, you can re-work the outstanding amount and reach a settlement in consultation with your finance company without having to wipe out your entire savings.

Although it is quite convenient to use the Internet for loan processing and installment payouts, you should be careful not to divulge too many personal details. There are many unverified and unethical finance agencies operating online that promise ‘quick loans without verification’ to those who have huge borrowings on credit cards etc. Remember that there is no guarantee that these services are authentic, safe and follow regulatory procedures and if you are not cautious, the resulting experience or loss can prove quite costly.

The first thing that many do when losing money online during a transaction is to blame the bank or financial agency. However, the technology driving the online transactions is more often to blame.

When one loses money during a transaction, one is often quick to blame her/his bank. But most such cases relate to the use of technology in banking. While technology has undoubtedly made life easier, it could prove costly if one isn’t cautious. It is advisable to check and re-check all details while conducting an online transaction because banks are not responsible if you enter wrong data entry or incorrect details. Most banks only use personal account numbers of beneficiaries while transferring funds, not the beneficiary’s name and hence it becomes a valid transaction. At the most, in the event of a wrong transaction, the bank can put you in touch with the ‘unintended beneficiary’. However, banks are quite helpful in helping customers file a complaint with the police and legal authorities and provide assistance in recovering the amount.

Do’s for safe financial transactions

• Do not disclose Debit or Credit Card PIN numbers to anyone

• Do not let others operate Debit Card on your behalf

• While settling bills with Debit Card, ensure that you go to the counter and oversee the entire transaction

• Do not post personal financial details in response to email queries or on public platforms online unless you are convinced that they are authentic and secure

• Do not use public Wi-Fi connections to conduct online transactions

No Credit Auto Loan Offers Multiple Benefits to Young Car Buyers

The Birth of No Credit Auto Loan

Traditionally, young car buyers were considered extremely risky because they had no credit history. Lenders had no information to calculate the credit repaying ability of young buyers and so, they rejected their loan applications.

But, things changed with increasing competition. Lenders and online auto financing companies understood that they were losing a large segment of the market by avoiding people with no credit history. So, they introduced a special program called no credit auto loan.

Benefits of No Credit Auto Loan

If you are a young car buyer with no credit history and looking for a loan, you will have to apply for a no credit auto loan. The loan program is specially designed for car buyers without any substantial credit history. Following are the benefits of applying for the loan program:

You can buy a Car easily

Automobiles have become extremely expensive. A brand new automobile costs more than $30,000. Even a used car is available for more than $15,000. The higher price of cars has made loans indispensable.

Sadly, people with no credit history were not able to buy a car before the introduction of no credit auto loan. Today, the loan program is a boon for young car buyers because it provides them with a golden opportunity for buying the car of their dreams.

No more relying on Public Transport or Parents

No credit auto loan helps you buy the car of your choice. It means you don’t have to spend time in waiting for crowded and unreliable public transport. Moreover, you won’t have to convince your parents to let you drive their car. Total freedom, isn’t it?

You can get Lower Interest Rates

Most young car buyers without any established credit history shy away from no credit auto loan. They believe that the loan program is expensive and out of their reach. But, the reality is different. You can get low-interest rates by making down payment and bringing a co-signer. Down payment reduces the loan amount and manifests your stable financial condition. And, a co-signer ensures the lender of regular payments. Both these things reduce the lender’s risk and will definitely help you in reducing interest rates.

You can build your Credit Score quickly

To get a loan, you need a good credit history. But to build a good credit history, you need a loan.

It is common for lenders to check your credit score before approving your loan application. Previously, young car buyers faced the problem of loan rejection because of their inadequate credit history. But, no credit auto loan has solved this problem. Anyone with no credit history can get an auto loan at affordable rates and build their credit score.

It is a Better Option compared to Leasing

Leasing allows you to rent a car for a specific period of time. At the end of the lease contract, you have two options. You can return the car to the dealer or buy it from him. It means even after paying regularly for several months, you will have no right of ownership.

Such a problem will not occur if you obtain no credit auto loan. Every payment that you make will help you in becoming the owner of your car.

How to Get Started?

Now that you have understood the benefits of no credit auto loan, you must start the process of obtaining the loan program. The loan process is quite easy and can be completed online. You can take help of an online auto financing company and submit your loan application via internet.

All the Best! Hope you find the perfect no credit auto loan program for your perfect car!

Flood Insurance – Protecting Your Home From Flash Floods

7 Quick Facts About Flood Damage and How to Better Protect Your Home and Business.

The massive flood damage around the Birmingham metro area on April 7th, 2014 caught many residence by surprise. Based on the national Weather Service, more than 7 inches of rain was measured in Vestavia Hills, while other locations in the area reported 5 – 6 inches of rain.

The National Flood Insurance Plane (NFIP) was created by the U.S Government to help with the high cost of flood related losses of both buildings and property.

Seven Important Facts About Flood Insurance:

1. No one is safe. – People outside of high-risk areas file nearly 25% of National Flood Insurance claims. In high-risk areas, there is at least a 1 in 4 chance of flooding during a 30-year mortgage. Poor drainage systems, rapid accumulation of rainfall, and broken water mains can all result in flood. Properties on a hillside can be damaged by mudflow, a covered peril under the Standard Flood Insurance Policy.

2. I have Homeowner’s/Renters Insurance policy. – Flood damage is not typically a covered peril by most homeowners/Renters insurance policies sold in the U.S.

3. Can I purchase Flood Policy in Birmingham? – If you live in a community that participates in the NFIP, you can get flood Insurance. Birmingham, Hoover, Vestavia, Homewood, Mountain Brook, Alabaster, Chelsea and many more municipalities are participating in the NFIP.

4. How much coverage is allowed by the NFIP? – Residential homes structure limit is $250,000, and content is limited to $100,000. Business Structure limit is $500,000 and $500,000 limit for business content. Renters Contents limit is $100,000.

5. Does flood insurance cover flood damage caused by storms, rivers, or tidal waters?

Yes, provided that, if confined to your property, the flood water covers at least two acres. A general condition of flood also exists if two properties are affected, one of which is yours.

6. What are Flood Zones? – Flood zones are land areas identified by the FEMA. Each flood zone describes that land area in terms of its risk of flooding. Everyone lives in a flood zone-it’s just a question of whether you live in a low, moderate, or high risk area.

7. What is covered in my basement? – Flood insurance covers your home’s foundation elements and equipment that’s necessary to support the structure (i.e. HVAC, Water Heater, Etc.). Flood Policy does not cover basement improvements, such as finished walls, floors, ceilings or personal belongings that may be kept in a basement.