Showing posts with label Credit. Show all posts
Showing posts with label Credit. Show all posts

Thursday, September 1, 2022

Need to Buy a New Car? Tips for Qualifying for an Auto Loan

Owning a vehicle is essential for many reasons, such as having transportation to work and ensuring your children have access to school and extracurricular activities, health appointments, and other commitments.

However, when it comes to purchasing a new car, there are some steps you have to overcome, especially if you are not paying with cash and seeking a loan. 

Lenders will consider different factors when approving loan applications, so knowing as much as possible about qualifying is essential.

Maintain Regular Employment

The number of months or years of employment to qualify for an auto loan varies, depending on the lender. In some cases, a few months of a stable income is acceptable, whereas other financial institutions might require at least one full year. 

In addition to current employment, most lenders ask for verification of stable work history, with no excessive gaps between jobs. It would be best to have regular employment before applying for a loan; however, other factors, such as good credit, could increase your odds even with minimal employment history.

Satisfactory Credit

Car loans are approved for all types of credit, from excellent to good, fair, bad, and no history. The score necessary will depend on the vehicle’s cost and the lender’s requirements. 

Your application will likely be approved if you have a satisfactory credit history. However, a bad credit score often shows that you aren’t as reliable with past credit approval, and the uncertainty from a lender may lead to a denial. 

The financial institution could grant your loan, but with stipulations, such as higher interest rates and other fees.

Have a Down Payment

Having a ten or twenty percent down payment could lead to lower borrowing amounts and more equity in the beginning. You could also encounter less interest and lower monthly payments. 

Trading in another vehicle could also increase your odds of approval. To determine the best options, it would be essential to speak with the dealership’s representatives beforehand. 

Professionals like those at On-Trac Auto Sales can help to make your application process as simple, straightforward, and stress-free as possible.


You should never apply for a loan without a driver’s license, passport, or state-issued identification card. These documents are necessary to verify your identity. 

It is also best to apply for loans in your state. Some lenders may allow out-of-state applicants, especially those who have just moved to the state or co-applicants trying to boost the odds of a loved one’s application. 

Most lenders require a utility bill, home loan, lease, or rental document for proof of address.

Regardless of your credit history, do not assume you’re ineligible to buy a new car. These are helpful tips to increase your odds of qualifying for an auto loan and receiving the transportation you need for personal and professional commitments.

Friday, August 12, 2022

How to Avail a Pre-Approved Personal Loan on the Instaloan App in 4 Steps?

The Instaloan app by Fullerton India offers quick and hassle-free personal loan options to salaried individuals at affordable interest rates. Unlike other personal loans, there is no need to visit a lending institution or undergo tedious paperwork to avail of a loan.

If you are salaried, the Instaloan app by Fullerton India can help you avail of loans anytime, anywhere through your phone. It helps you avail of quick cash with interest rates starting from 11.99% per annum, with a maximum loan amount of Rs. 25 lakhs.

Benefits of the Instaloan App:

Personal loans can help you meet immediate needs or unforeseen expenditures. Whether it is your daughter’s wedding, need to fund your vacation, or have a medical emergency, these loans can be the best way to meet your expenses without draining your finances. 

Instaloan is an online loan app that helps you avail of such a loan without much paperwork and in a short time. Here are some of the benefits of the Fullerton India Instaloan App:

Maximum Loan Amount: Unlike other personal loans where the maximum amount is limited, this app helps you avail of a loan of up to Rs. 25 lakhs. If you are a salaried individual with a stable source of income, you can apply for a personal loan and fund your immediate needs and aspirations easily.

Digitized process: You can avail of a personal loan using the instant loan app anytime and anywhere. You do not need to visit our branch to complete the process. You can use this app to easily apply for a loan and access it via Android or iOS. Borrowers generally receive the money within hours of loan approval.

Hassle-free Personal Loan options: Though personal loans might look like they require a lot of paperwork, the Instaloan app is different. The borrowers need to upload some requisite documents. 

These documents include valid identity proof like Aadhaar or PAN, address proof, bank statements, and your salary slips. The requirement for minimal documentation makes it an attractive option.

Easy-to-use Interface: The Instaloan app is known for its user-friendly interface. Borrowers need not be tech-savvy to avail of their loans. Once you install the app, you are automatically guided by instructions that help you apply for a personal loan and complete all other formalities by yourself. 

Based on your documentation, it instantly informs you about your eligibility for the loan. After successful verification, you will receive a loan agreement with all the terms and conditions. 

Once an acknowledgment is received from your end, the loan gets approved. Post approval, the approved amount gets disbursed within a few hours.

Loan Tracking Mechanism: Once you apply for a loan, you can track it on the app. Apart from its status, you can also track the payment due every month. 

Such a feature helps borrowers understand their outstanding amount and the time left to repay the loan. The app also reflects the interest rates and your monthly payment trends.

Fast Loan Disbursal: One of the primary benefits of this online app is its fast loan disbursal mechanism. Unlike traditional loans, you do not have to wait for the loan disbursal. 

The Instaloan app ensures a quick loan disbursal, sometimes as quickly as thirty minutes after the loan application, depending on your eligibility and repayment capacity.

How to use the Instaloan App?

The Instaloan app has a user-friendly interface that helps everybody to use it. Here are some steps borrowers must follow while using an android phone or tablet while applying for a loan using this app.
  1. Go to the Google or Apple Playstore and search for the 'Instaloan app by Fullerton India.'
  2. Once you are directed to the app, click on the 'install' option.
  3. After installing the app on your phone or tablet, enter your basic details, including your name, marital status, gender, address, etc.
  4. Scan and upload the requisite documents
  5. Enter your bank account, employment, and income details
  6. Once you input the above details, click the 'submit' button.


The Instaloan app by Fullerton India is one of the best quick loan apps online. The app offers easy and hassle-free loans to salaried individuals within 30 minutes* of their loan application. 

Thus, borrowers are relieved of the tedious paperwork and lengthy wait time compared to other traditional personal loan application processes. Get your personal loan via the Instaloan app today!

Thursday, March 7, 2019

Is It Good to Fund Your Investment with a Personal Loan?

With the rise of available loans and investment options in India, an increasing number of investors seem to opt for unsecured loans to invest in equity funds and Initial Public Offers to earn a profit and repay the loan. As the equity market stabilizes in the last fiscal quarters and the Sensex reaches an all-time high, people are capitalizing borrowed money to earn a substantial return against their investment.

There are certain things that an investor should look out for before they put borrowed money into investments. They should know about the best short term investments, along with the benchmark index to earn the maximum returns at the end of each year.

Is it right to fund your investment with a loan?

You can fund your investment options in India with a loan if you take care of a few things. For example, you should not put your money into an investment scheme that will mature after your credit is due. You should also consider whether the return on the investment is higher than the sum of credit. If the benchmark index (Nifty) shows returns of at least 13% annually, you will earn approximately 24% on your investment portfolio for the years ahead.

A personal loan is one of the best options if you want to invest the borrowed money. Personal loans come with various features and benefits that can assist you to earn the highest against your investment. Financial institutions offer flexible tenors on this type of unsecured loans, which puts less strain on your finances and eliminates any worries about losing an asset in case you fail to repay in time.

Things to look out for before investing

If you are looking for how to apply for a personal loan to invest the funds, you should check out a few precautions before you invest that money in the market. Let’s take a look.

  • Have an alternate source of income – Financial experts suggest borrowers to have an alternative source of income to pay the EMIs if they plan to invest the funds from such loans into investment options in India. Systematic withdrawal from the market to pay the EMI can prove detrimental if you want to earn a high return.
  • Carefully choosing the investment plans – Ideally, you should invest in the best investment plans for 3 years or 4 years. These often carry stock options that are fundamentally strong, and you also won’t have to pay for short-term capital gains.
  • Check the loan rates – The interest rates on a personal loan play a critical factor to determine you get a substantial return. If you choose an advance with a high rate of interest, you will have to hand over a significant amount of money to the lender when the payment gets due. You will also pay larger EMIs during the repayment tenor.
  • Opt for low interest rate personal loans - To earn the best returns without straining your finances during the loan tenor. You can use a personal loan EMI calculator to determine a preferred monthly installment rate for repayments.
  • Know about additional charges and fees – Along with the interest rates, you should also learn whether a lender asks for any fees and charges. Ideally, you should check it while you look for your personal loan eligibility criteria.

Various financial institutions charge a minimum processing fee and interest rate on personal loans.

  • Know about the investment option – Before you invest in a particular stock or mutual fund, know how it performed since it was introduced to the market. It will help you shortlist the best investment options in India and prevent you from losing money.
  • Understand the risk level – Certain investment schemes come with more risk but higher returns. You should opt for a scheme that you are comfortable with. For example, if you prefer a safer investment with guaranteed returns, you can put the money in fixed or recurring deposits or government debt bonds.

Investments via funds from a personal loan should be a careful and deliberate task with proper planning and strategies. While it is easy to meet a personal loan eligibility, you should consider the pros and cons of the credit along with the investment option itself to ensure a guaranteed gain.

Thursday, January 17, 2019

4 Techniques for Financial Success That Will Surprise You

The secrets to financial success are not actually that secret. They can simply just be difficult to achieve. These four surprising techniques for financial success will put your finances on the right track.


Investing is a very practical skill and how most people with significant amounts of money got rich. Its sheer influence over financial success is what will surprise you. There are many different kinds of investments you will need to understand, including stocks, funds, bonds, and more. Know your risk tolerance. 

Remember that, in most cases, you don’t lose or gain any money until you actually withdraw investments and that values will change over time. To be successful at investing you will have to take the time and learn how it works to make the best possible decisions.

Save for Retirement Early

Many, many people neglect their retirement savings. Would it surprise you to learn that just about every age group has far too little in retirement savings? You will likely not be able to live on social security alone when you retire. 

Take advantage of any employer-sponsored retirement savings accounts from the moment you get your first job. You can also utilize investments, outlined above, to grow your retirement savings so you can enjoy your golden years while having enough money to live on.

Watch Your Credit

Your credit rating and score are essentially a history of your financial reliability. Credit checks are done in a large variety of circumstances, including by landlords, mortgage companies, insurance companies, and employers. 

Odd things such as closing accounts, not utilizing credit, credit reporting errors, and getting parking tickets can affect your credit score. If your credit is poor, there are ways you can improve it, including fast credit repair services, working hard, and budgeting well to get your finances back on track.


Perhaps the single best thing you can do to achieve financial success is to have a budget and stick to it. Doing so means you are less likely to overextend yourself by borrowing more than you can afford. 

It will help you set up good financial habits such as paying all bills on time and putting a little into savings each month. While budgeting is hardly a surprising financial tip, its effectiveness certainly is.

In most cases, financial success comes from using the money you do have wisely. These tips may not be revolutionary but they will surprise you in their effectiveness. Don’t make your financial situation more complicated than it needs to be. With a solid foundation of good practices, you can achieve financial success over the course of your life.

Monday, December 18, 2017

Know About 5 Challenges of Bad Credit Borrowers

No one plans to accumulate debts and invite the credit hassles. But sometimes, personal or financial emergencies cripple your life plans. Be it insufficient income source or excessive expenses, as you struggle to repay loans, missing a loan instalment would hurt your credit score. Besides, living in the state of stalemate is never good for your financial health.

Bad Credit Borrowers

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. 

Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. 

The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

It is better to take charge of your life as early as possible and search for viable funding options such as swift short term loans or debt consolidation loans in UK

The choice would entirely depend on your credit health. Factors such as required loan amount, loan purpose and your credit affordability would help you make a better decision.

Bad Credit Loans

Searching for bad credit loans would not be a cakewalk, and only persistent efforts in the direction would help your cause. 

To make things convenient you may consider using services of an experienced loan broker in the UK. You can contact an FCA authorised broker and avail hassle free access to deals according to your credit situation. 

Most brokers share tailored loan advice free of cost to borrowers and there is no upfront fee involved. You also save a lot of time and headache required for searching a deal.

Now before you contact a loan broker for bad credit loans without guarantor, it is important to understand following points about bad credit borrowing:

1. Cost of bad credit loans

With low credit score, your loan eligibility is low. Your loan application is marked risky and most lenders would cost high interest rate. 

Whether you need instant payday loans or instalment loans for bad credit, you would get expensive loan with higher processing fees. Thus you should be prepared to shell out more from your pocket with poor credit rating.

2. Do not borrow more than what you need

Contacting a loan broker you are likely to get access to available bad credit loans. However before you choose any of the deals made available to you, make sure you restrict yourself to the amount you compulsively need. 

Do not borrow more than what you need. For borrowing more than your requirement could make it difficult for you to manage your repayments later on.

3. Always check the credentials before availing a deal

Also it is important to ensure that you make a transparent deal with a reliable lender. It is recommended to deal with registered loan partners only. 

Herein you must also know that it is illegal to lend in the UK without a license. Check all the credentials and read documents carefully.

4. Have a repayment plan

While choosing the loan for your situation, make sure you pick a loan that has affordable monthly instalment. 

When you borrow according to your repayment capacity, you are more likely to succeed at the loan repayment. You could peacefully repay the loan and build good history.

5. Impact of bad credit loans on score

When you borrow despite poor rating, it certainly brings on red flag on your report. However repaying the loan on time you build good history and improve your credit score. 

In fact, with rightful planning and discipline you can use instalment loans to mend your credit score.

Wednesday, March 8, 2017

What is an Installment Loan and How Does It Work?

When you need to make a large purchase and do not have the cash on hand or a line of credit to do so, an installment loan is a financing option to consider. 

An installment loan may be offered through a credit union, bank or a private lender. Understanding what an installment loan is and how it works can help you to decide if this type of financing is right for your situation.

Fixed Payments

When you take an installment loan, you are agreeing to make fixed payments for a specific period of time. Each of the payments is due on a specific date, such as the first Monday of the month or the 15th day of the month. 

The fixed payment includes the portion of the principal of the loan and the interest that you have accrued on the principal. Each payment that you make on an installment loan reduces the amount that you owe on the principal.

Interest Rates

Interest rates on installment loans are usually fixed at the point in time that you take the loan. Some companies, such as Las Vegas Finance, know that the interest rate that you get may differ from what another applicant would get even on the same principal. 

Your interest rate will be calculated based upon your credit score. If you have a low credit score, you may have a high interest rate.

Secured Versus Unsecured Installment Loans

A secured installment loan is tied to a piece of property as collateral. One example is a mortgage loan. A fixed mortgage is an installment loan that uses the house as the collateral. An unsecured installment loan does not use any collateral. 

These loans are sometimes called personal loans and could be used for a leisure or personal purchase, such as buying a diamond engagement ring.

Benefits of Getting an Installment Loan

An installment loan makes it easy for you to plan your monthly expenses. With excellent credit and property to secure the loan, you may enjoy a low interest rate. 

ome installment loans, such as mortgages, have tax-deductible interest. On-time payments on an installment loan can also help you to build your credit score.

An installment loan provides you with a set amount of debt to repay each month. The predictability of the loan's payments makes this a convenient choice for many people. 

Before signing your name on the dotted line, be sure that you understand all of your obligations as the borrower on an installment loan.

Wednesday, August 19, 2015

What You Need to Know About Managing your Debt

Debt or no debt, it is crucial to maintain control of all your payments. Most of the time, debts develop when you do not keep track of all your payments and bills. Juggling bills while paying off debts is not easy. 

Debt review is a relief process for most debtors as it helps them manage their debt better through making single affordable payments until their debt is complete. The debt review process is quite thorough in terms of addressing financial issues. 

It is facilitated by a debt counselor. The following are some of the things you could learn from your debt counselor in order to avoid landing into crippling debt again:

Keep track of your debt

One sign of being in bad debt is when you do not know whom or how much you owe. Ensure that you always have a list of all your debts and creditors. This list should contain important details such as the amount due, the date that it is due and the kind of monthly payments you need to make. 

This list should be your point of reference when paying your bills at the end of the month so make sure you regularly update it. 

Always pay your bills on time

Late payments attract penalties and disrupt the financial balance that is necessary between income and expenditure. It becomes harder to pay off an amount that is more than a month overdue. 

With the new age of technology, you can use your Smartphone to create a calendar with reminders for when your bills are due.

Make minimum payments

When finances are tight, always try to make minimum payments on your bills. Growing debt arises from bills left unpaid. Minimum payments do not clear your debt but they prevent it from growing. 

Prioritize your debts properly so that you can make minimum payments on the debts much lower on the priority list. 

Financial Freedom Checklist

Start an emergency fund

Every individual should always have an emergency fund from where to can pull out a lump sum of money when needed. Work towards creating an emergency fund of at least $1,000. 

The emergency funds reduce the chances of you tapping into your salary and getting salary advances, which may affect your bill payment schedule.

Create a monthly budget

Spending without a budget can be very dangerous since there is always the risk of overspending. Keeping a monthly budget helps you to know how much your need to spend, save and use to repay your bills. 
A budget will also help you to determine how to spend extra money, which often goes to waste.

Ask for help

In case you have tried all the above but are still suffering financially, it is advisable ask for assistance from professionals such as debt counselors. They can help you to determine your level of debt and plan for repayment as well as budget for your monthly expenditure. 

Debt counselors will also help you to get reduced penalties and interest rates when paying off outstanding debt.


Rachel Johnson is a debt counselor who has worked in debt review for many years. She speaks more on debt review and learning to manage your own debt on her blog. Click here to know about your credit reviews.

Thursday, December 12, 2013

What Retirees Need to Know About Credit Cards

Retirees are generally in a different financial position to those yet to wrap up their working days and spend the rest of their years doing the things they never got around to in the past. As a result, they need to use their finances differently and also avoid incurring debt wherever possible, even short term debt if feasible.

However, certain forms of credit like credit cards are still handy to use in retirement though retirees are encouraged to use their credit cards effectively and without incurring unnecessary debt, and to also focus their attention on the most competitive credit cards on the market, like those offering interest free purchases and terms.

Three mistakes retirees often make with their credit cards:

Failing to choose the right credit card

The biggest mistake retirees often make with their credit cards is applying for and using the wrong card. There are often major differences between credit cards and retirees can avoid financial difficulties by selecting a card that’s suitable for their needs, like GemVisa low interest credit cards. 

What’s more, there’s generally a lot of fine print involved when applying, so it’s often a good idea to bring someone along, like an adult child, to help select a suitable card. 

Using credit cards to supplement income

Many retirees have the tendency to use their credit card for everyday purchases, which is fine, as long they possess the right card and they pay the balance in full each month. However, many use their credit cards to supplement their income and run into problems when they can’t make the repayments in full because the interest accumulates and becomes more difficult to pay off. 

Failing to make a debt plan

If you’re going to incur debt you need to make a plan to pay it off and without incurring more interest than you can afford to pay. Whilst pensions and similar forms of retirement income cannot be accessed by creditors, their retirement savings and nest egg can, so by failing to create a debt plan they’re putting their savings, and therefore their financial livelihood, at risk.

Three credit card strategies retirees should take note of 

Don’t stop using your debit card

This is the first rule of effectively using your credit card as a retiree – only use it when it’s necessary. Credit cards and debit cards are just as convenient as each other, and whether you have your weekly, fortnightly or monthly spending allowance in your debit card account or another from which you transfer money over, you’ll generally find that you can use a debit card instead of a credit card for everyday purchases.

Pay your outstanding credit card balance in full every month

The longer you leave your debts the more interest accrues and the more you’ll need to find a means of repaying. Credit cards are a luxury during retirement, after all, most retirees don’t have a regular income coming in unless they have investments and even then they still shouldn’t incur new debts. 

Avoid using your savings to pay off your credit card balance

You should avoid dipping into your savings or nest egg at all costs, and especially not to pay off your credit card balance at the end of the month. You should have created a budget to live off comfortably and if you’re going to use a credit card make sure that you’re able to pay the balance off using your retirement income – investments, pension, superannuation, etc – not your nest egg.

Enjoy a comfortable, hassle-free retirement by selecting and using your credit cards wisely.

About the Author:
A company that brings to the world the GemVisa low interest credit cards, GE Finance and Insurance is a leading alternative to banks. They are a part of GE Capital and cater to clients from all over New Zealand.

Friday, September 20, 2013

How Having A Good Credit Score Can Help You With Retirement

One of the most important factors of overall financial health is having a good credit score. While most people are fully aware how important it is during their working years, many do not realize how important it is after they retire. There are five important reasons why your credit score will continue to be important, even after you have retired.

Mortgage Refinance

One of the most significant reasons to keep your credit score high is so you have the opportunity to refinance your mortgage in the future. As mortgage interest rates move up and down, there could come a time when you will want to refinance your mortgage to take advantage of lower rates. If you do not have a good score, you will likely not qualify for the lowest possible rates.


Many retired individuals would be great options to co-sign mortgages, auto loans, and student loans for their children and grandchildren. Regardless of the assets that you have accumulated, or the defined income that you have from social security or pensions, you will not be able to co-sign a loan if you have a poor credit score.


During retirement, you will have to continue to maintain auto insurance, homeowners insurance, and maybe even life insurance policies. Insurance companies are continuing to place more of an emphasis on credit scores when determining insurance premiums. Because of this, you could end up spending hundreds of dollars more on insurance over the course of a year.

Senior Living

Another important way that your credit score could be important is if you choose to move into a senior living facility. Many of these facilities confirm credit scores to ensure that you will be reliable to pay rent each month. If you have a poor credit score, you may be denied admissions or will have to pay a higher entrance fee deposit.

Other Debt

During retirement, you may still want to take out some debt to make larger purchases. With a good credit score you will qualify for the lowest rates on auto loans, personal loans, and credit cards. With a low score, you will likely pay much more in interest.

In conclusion, having a good credit score even when you are in retirement will continue to be important. For those that have poor credit scores, it can still be improved through the help of a credit repair service. For more information on the benefits, you should read more testimonials from Lexington Law, which are written by actual clients that have benefits from a credit repair service.

Saturday, August 24, 2013

Financial Loans Even With A Bad Credit History

In this financial world we all are bound with daily expenses. Our job gives us a regular paycheck by which we lead our daily life. But sometimes it becomes difficult to make both ends meet when we require urgent cash in the middle of the month. Urgencies like medical treatment, accidental car repairs, urgent grocery bills and late payment of credit cards do not come planned. 

And thus people fall in a dilemma where they need urgent cash to meet such financial requirements. This leads to borrowing money from various sources such as friends and relatives. But one tries to avoid such financial transactions from relatives. The best option here lies is the source of quick loans available in the market today.

If you have a bad credit history and are worried about getting a loan, you can get a loan easily through no credit check loans available in the market. It helps you to get a loan even if you have a bad credit rating. The eligibility for such a loan is very simple. You just need to be 18 years of age with a regular job and should have an active bank account to show financial transactions. The loan amount borrowed for such loan ranges from £100 to £1,500. The repayment of no credit check loans ranges from 7 to 30 days depending on your next payday. It helps you to make the repayment at your next payday.

No credit check loans can be searched and applied online. You can search for the right lender over the internet and then apply for no credit check loans online by just filling up an online form. Once you submit the online form you receive a verification call for the documents you have submitted. Once they are satisfied the loan is approved and you receive the cash in your given bank account within a day.

No credit check online saves you a lot of money as there is no fees required for processing the loan. The main advantage for such loan is that your credit history is not checked upon for approval of the loan. Also if you have collateral against the loan you can save a lot on the rate of interest. But if you do not have collateral against the loan amount you have to pay higher rate of interest as the lender has to borrow money as his own risk. But always remember to make the repayment on time because if you fail there can be undue circumstances of paying higher interest rates.

Thus if you have a bad credit history and you need cash in the middle of the month, you have the best option to apply for no credit check loans online. It helps a lot to improve your credit rating if you can make the repayment on time and enjoy other financial benefits in future financial market.

Tuesday, August 20, 2013

How Credit Makes the World go Round

Wipe our Debt
Wipe our Debt (Photo credit: Images_of_Money)
Way back before everyone carried little plastic cards in their wallets instead of cash, the saying was money makes the world go around; not so anymore. You and I are not the only ones who seemed to be enslaved by credit. The biggest user of debt is the US Government itself.

How it Works

Just about everybody is aware that our country is trillions of dollars in debt, but not everyone knows how our government keeps functioning under that debt load. Creating more money is not the answer. If our government creates too much money inflation runs rampant. Instead of paying four dollars at the market for a gallon of milk you end up paying 24 dollars instead. Our government keeps working because of their ability to borrow from other countries, primarily China and Japan. 

If not for the trillions of dollars borrowed from these two countries our country would indeed come to a complete halt. We borrow money by issuing US Treasury notes and bonds. China, Japan, and other countries buy these debt instruments for the interest we pay them every few months. When the bonds and notes mature they’re either rolled over into new Treasuries or we pay the principle amount back in cash. Most Treasury Securities mature every 5, 10, 20, or 30 years. In most cases our government strives to roll the debt over into new long term debt so they don’t have to come up with the cash to pay out.

The Cost of Bad Credit

Most people now days are familiar with their credit score and how it impacts your ability to borrow and the interest rate they receive. If you have poor credit the amount you are able to borrow suffers, and the interest rate you can borrow at rises. The same goes for our country. For many decades our countries credit rating has been the very best; AAA. That makes the US just about the safest country in the world to borrow from. Due to our current economic problems our country’s credit rating has suffered. 

Standard and Poor’s, one of the primary credit rating agencies in the world downgraded the United States debt from AAA to AA with a poor outlook. They have since changed the outlook to stable but have kept their rating at AA. So what does that mean for our government? In order to attract enough investors (like China and Japan) our government has to be willing to pay a higher interest rate due to the increased risk of borrowing from a country in financial and economic turmoil.

Just like the average citizen, as their credit score improves or disproves, the interest rate they are able to borrow at rises or falls. The amount of money you can borrow will also go up or down depending on your credit score.

What if You Can’t Borrow

If your credit score falls too low you lose the ability to borrow money at any rate because the risk is considered to be too great. If you can’t borrow what do you do when there is a financial emergency? Fortunately for most people there are finance companies that give payday loans, personal loans, and car title loans, to name a few. Those are all high interest rate ways to borrow money no matter how bad your credit may be. 

Unfortunately for our government it’s not so easy. It is vital to our country’s economy that our government is able to borrow what it needs to keep functioning and hopefully one day someone will come up with a way to significantly reduce our country’s debt.

Smith is a professional blogger that provides financial information on savings and loans. He writes for, a leading title loan lender.

Monday, August 5, 2013

Old Fashioned Solution to a Current Problem

Loans (Photo credit: zingbot)
Mounting debt is an increasingly common issue for people throughout the UK and one of the most effective methods of getting debt back under control is something that has been around for a surprising period of time. Guarantor loans are a different type of loan which involves utilising a third party who guarantees to continue making repayments should the borrower fail to do so. Often, guarantor loans are chosen when an individual has a bad credit history or no credit history at all as they would generally be viewed as high risk by financial institutions.
However this risk is significantly reduced if a guarantor is willing to take the responsibility of repaying the loan in the event that the borrower defaults and often the lender will agree to grant a loan. 

What are Guarantor Loans?

A question that we are often asked is what actually are guarantor loans? Widely regarded to be an innovation in the financial world, it is understandable that people may have doubts or queries regarding how they work but in the details below, we hope to outline exactly what they entail.

When it comes to applying for a guarantor loan from a lender such as UK Credit, the key difference between this type of loan and standard unsecured loans is that the applicant needs to nominate someone who will support their loan application - this person is called the guarantor. The guarantor can literally be anyone including family (not spouse or partner), friends, work colleagues etc who know the borrower well and will be willing to support their loan application.

It is essential that the guarantor satisfies a number of criteria, such as being a homeowner with a regular income of their own and a good credit rating. Assuming these criteria are satisfied, the application looks far more favourable to the lender and this is what makes an application much more likely to succeed when compared to a normal unsecured loan.

If you opt to apply for a guarantor loan, it is important that you discipline yourself. Not only because you were provided with a loan despite your current credit rating but also because defaulting on the repayments could make your credit rating even worse.

You should be disciplined to ensure all of the required monthly repayments are made on time with any type of loan but in the case of guaran
tor loans, you must take into consideration that if you fail to pay the loan, it is your guarantor who will be asked to cough up the money. Although they have been put in place to act as a safety net should things not work out, it is not a good practice to let your guarantor pay for the loan when they offered huge help with your loan application!

Benefits of Guarantor Loans

Contrary to popular belief, although the guarantor loan is an unsecured loan, they are generally available at comparable interest rates to other unsecured loans.

Guarantor loans are great for people who need to improve their credit rating or to get a positive credit score behind them. The applicant must be certain that they can afford to repay the loan to gain the benefits this loan provides and as with any type of loan, it can always prove to be beneficial to shop around for the best deals.

Bio – Amanda Gillam
I work as a blog writer for a finance company called Solution Loans which specialises in Guarantor Loans. I hold a degree in financial management and enjoy writing about a variety of topics including finance, transport, travel, sport and business.

Friday, July 26, 2013

How to Get a Loan with a Poor Credit Rating

Whether it was reckless spending that soon taught us a lesson, mismanagement of our repayments or a genuine inability to pay back what we had borrowed, at some point in our lives many of us will find ourselves with a poor credit rating. 

This however does not necessarily mean we can simply afford to forego borrowing any more money, nor that we would not be able to better manage a loan now and though getting a lender to agree to a deal might not be so easy, there are a number of things you can do to increase your likelihood of getting hold of the cash you need.

Expect rejections

Applying to one bank and then giving up upon rejection will get you nowhere. With a poor credit rating, you are immediately a candidate for refusal and should enter into talks expecting the worst while hoping for the best. 

Rejection from one institution does not mean that nowhere will accept your application; time and patience will be required.

Negotiate interest rates

While you still want to get the best interest rate you can possibly get a lender to agree to, you have to understand that the compromise for being accepted with a bad credit history is paying higher interest rates. 

Seeing you as a risky investment means that banks will want a bigger return on their money and as much as it might sting, you have to be willing to accept this if you want the loan application to be approved. 

Be wary of Payday loans

While you are more likely to be accepted for a payday loan, you are also more likely to find yourself in deeper financial trouble if you accept one. 

These short-term loans for small amounts of money are designed to tide you over between pay cheques but they come with huge interest rates and massive penalties should you not pay it off on time. 

So many consumers have found themselves crippled by such loans that there are even investigations underway as to how unfair they may truly be.

Keep it to a minimum

The more you ask for, the more likely a lender is to decline you if you have a bad credit history. Carefully working out the minimum amount you need to borrow and being sure to decline any extras such as Payment Protection Insurance that would boost payments and the investment will seem less risky to the lender, encouraging them to say yes.

Improve your rating

Perhaps the best way to increase your chance of a successful loan application is to actually improve your rating, 
repair your credit score fast thus making you seem like a safer investment. 

Paying off all other outstanding debts by being punctual and organised with repayments will soon help towards this. Another good tip is to lock away your credit card and try not to use it; as this way you will never exceed your limit or fall behind on payments, allowing your rating to gradually improve without actually doing anything.

Ask elsewhere

Banks may be the traditional source of money but other options are available. Borrowing from family and friends is a great way to get better interest rates and a more lenient repayment schedule. 

Just be sure to write up formal documentation outlining any agreement; the last thing you want is to lose loved ones over squabbles with money if things go wrong.

Monday, May 6, 2013

Credit Counseling Services An Effort to Improve your Finances

Finances are something that need to be often checked. It is vital to keep a close watch on every investment and expenses so that one can control the personal economy of life. 

There are evidence that shows that the financial situation of a family deteriorated because of poor economical planning and unrealistic financial strategy. For instance if you will spent more than your earning, the situation is sure to turn alarming on the fiscal aspect. You will look for loans and other monetary help and in-fact take the money on high interest rate. Later on the interest will also be added in the monthly expenses thus further depreciating your economy.

So, the concern of the discussion is that a loan is never the solution of improving the economy. It is better that we have solid plan of ways to invest the earning and for emergency expenses we should have our savings to rescue. But still talks are secondary; life often takes us to a situation when there is no ways left other than hoping friends, relatives or financial institution to give monetary help. In those entire situations take help from those who offers lowest interest rate. It will allow you to pay back the money on time.

And if you are really disturbed, consider taking help of the agency who will offer you counseling over the loans. These agencies will also negotiate on your half and will help you get a better deal. These agencies are normally nonprofit organizations and you can easily found on Trustee's associated website. The aims of these agencies are to help the people in reduction of interest rates and sometime the full amount of loan in case of emergencies.

Apart they also offer the person options like individual voluntary arrangement. This is a perfect for all those people whose financial condition is downgraded to that extent that they are planning to file bankruptcy. It is a formal proposal made by the individual to all his creditors to repay a certain percentage of loans over a certain period of time-span. In major cases the time period is approx 5-7 years.

This alternative allows 50 to 60% of the principal amount to be waved off. And monthly payments are kept low. This option has really proved helpful for many loan seeker and hence there has been great increase in number of people going for the late alternative. There are many advantages like the debtors are allowed to keep their own assets, there are no effect on professional qualification, also no adverse effects is noticed on social status and credit scoring remains good.

So, with the availability of internet, you can look for various options from where you can hope for financial help. There are online stores that offer personal loans no credit check. Little research at the initial level will surely help you to end with a better deal. After all, it is you who have to pay the amount of the money you took on loan, so choose wisely.

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