Showing posts with label Loan Articles. Show all posts
Showing posts with label Loan Articles. Show all posts
Thursday, December 16, 2010
Saturday, December 4, 2010
Emergency Cash Loans
Getting a Good Emergency Cash Loan
Emergency cash can come from a variety of places. Ideally, you’ve got an emergency fund built up. If not, you may need an emergency cash loan. This page covers emergency cash loans, and the best places to find them.
A Little Help From Your Friends
Before going into debt for an emergency cash loan, consider talking with your network of friends and family. If you’ve suffered a hardship, they may be willing to help. Of course, don’t be offended if you don’t get any money from them – giving you a loan may be more risk than they can afford to take. Remember, they could end up with their own emergencies any day.
Emergency Cash Loans From the Bank
Depending on how fast you need cash, you can get emergency cash from the bank. This is probably your best bet if you have no other resources.
You can get emergency cash loans from the bank in a variety of ways:
A charge on your credit card
A home equity loan
A home equity line of credit
An unsecured loan (or “signature” loan)
When looking for an emergency cash loan, don’t forget to look at credit unions. These institutions may be more willing to work with you.
Payday Loans:- Dangerous Emergency Cash Loans
Perhaps you’re looking for an emergency cash loan but
you have got no credit. In that case, traditional borrowing may not be an option. You may be considering payday loans to get you through the hard times. If so, be very careful.
You really need to be careful about using payday loans. The problem with them is that they most likely will make your situation worse. A payday loan for emergency cash is like a band-aid – it won’t heal you, and it’ll fall off sooner or later. In addition, it won’t keep you from scraping yourself up in the future. Remember that payday loans can easily cost you several hundred percent APR.
Emergency Cash Loan Alternatives
Ultimately, you need to have an emergency fund. If you don’t have one today, build one for next time.
Next, consider your assets. Can you sell something (or several something) to cover the costs of this emergency? That’s going to be a much better option than taking on debt. Consider the possibilities: you might have a nice TV, auto, or couch that you enjoy. You could either sell the item and get out of the emergency unscathed, or you could end up paying for an emergency cash loan for many years to come. Which choice sounds better?
Emergency cash can come from a variety of places. Ideally, you’ve got an emergency fund built up. If not, you may need an emergency cash loan. This page covers emergency cash loans, and the best places to find them.
A Little Help From Your Friends
Before going into debt for an emergency cash loan, consider talking with your network of friends and family. If you’ve suffered a hardship, they may be willing to help. Of course, don’t be offended if you don’t get any money from them – giving you a loan may be more risk than they can afford to take. Remember, they could end up with their own emergencies any day.
Emergency Cash Loans From the Bank
Depending on how fast you need cash, you can get emergency cash from the bank. This is probably your best bet if you have no other resources.
You can get emergency cash loans from the bank in a variety of ways:
A charge on your credit card
A home equity loan
A home equity line of credit
An unsecured loan (or “signature” loan)
When looking for an emergency cash loan, don’t forget to look at credit unions. These institutions may be more willing to work with you.
Payday Loans:- Dangerous Emergency Cash Loans
Perhaps you’re looking for an emergency cash loan but
you have got no credit. In that case, traditional borrowing may not be an option. You may be considering payday loans to get you through the hard times. If so, be very careful.
You really need to be careful about using payday loans. The problem with them is that they most likely will make your situation worse. A payday loan for emergency cash is like a band-aid – it won’t heal you, and it’ll fall off sooner or later. In addition, it won’t keep you from scraping yourself up in the future. Remember that payday loans can easily cost you several hundred percent APR.
Emergency Cash Loan Alternatives
Ultimately, you need to have an emergency fund. If you don’t have one today, build one for next time.
Next, consider your assets. Can you sell something (or several something) to cover the costs of this emergency? That’s going to be a much better option than taking on debt. Consider the possibilities: you might have a nice TV, auto, or couch that you enjoy. You could either sell the item and get out of the emergency unscathed, or you could end up paying for an emergency cash loan for many years to come. Which choice sounds better?
Payday Loans
What You Need to Know Now About Payday Loans
Payday loans are short term loans you can use to get through a rough spot. Before you use a payday loan, make sure you understand the costs and risks. This page gives you a quick overview of how they work, and ideas on what you can do to avoid using payday loans.
What are Payday Loans?
Payday loans are small loans you can use when you are temporarily out of money. Most often, payday loans are short term loans (two weeks or so) for a modest amount of money (a few hundred bucks). To get a payday loan, you typically write a check for the amount you are borrowing – plus a fee. You might leave the check with the lender, and they cash it once you are ready to repay.
If you can’t repay your payday loan when it comes due, you can “roll it over” so that the loan is extended.
You don’t have to repay it, but fees keep accumulating.
Costs of Payday Loans
In general, payday loans are extremely expensive. You end up paying an annual percentage rate (APR) that may be several hundred percent. For example, you might pay a $20 fee to borrow $100.00 for two weeks. The Consumer Federation of America has some nice calculations comparing payday loans to the alternatives. These show that you would pay about 426% APR on a payday loan.
Payday Loan Pitfalls
The main pitfall with payday loans is that they don’t help you solve the problem at hand. If you’re having financial difficulties, payday loans can only make the problem worse. You’re paying a really high rate of interest which means that your expenses are just going up. As a short term strategy – maybe once or twice – payday loans can make sense. For example, you might need an emergency repair for your car so that you can get to work and keep earning income. As a long-term strategy, payday loans will pull you under.
You can get yourself in trouble if things get out of hand. Bouncing checks that you write to the payday loan establishment can end up on your Check Systems file. Banks and retailers may then be unwilling to work with you.
Alternatives to Payday Loans
Instead of using a payday loan, consider some alternatives:
Build up an emergency fund in your savings account (sometimes easier said than done)
Keep an open credit card for emergency expenses
Get a signature loan (or unsecured loan) from your credit union
Pick up a part time job for extra cash
Set up a payment plan with your lenders
Investigate overdraft protection plans for your checking account
Defending Payday Loans
The payday loan industry is not shy about defending itself. They argue that payday loans can be less expensive than bounced check fees and overdraft protection programs. In addition, they argue that payday loans are the best quick and easy way for some people to get money.
Payday loans are short term loans you can use to get through a rough spot. Before you use a payday loan, make sure you understand the costs and risks. This page gives you a quick overview of how they work, and ideas on what you can do to avoid using payday loans.
What are Payday Loans?
Payday loans are small loans you can use when you are temporarily out of money. Most often, payday loans are short term loans (two weeks or so) for a modest amount of money (a few hundred bucks). To get a payday loan, you typically write a check for the amount you are borrowing – plus a fee. You might leave the check with the lender, and they cash it once you are ready to repay.
If you can’t repay your payday loan when it comes due, you can “roll it over” so that the loan is extended.
You don’t have to repay it, but fees keep accumulating.
Costs of Payday Loans
In general, payday loans are extremely expensive. You end up paying an annual percentage rate (APR) that may be several hundred percent. For example, you might pay a $20 fee to borrow $100.00 for two weeks. The Consumer Federation of America has some nice calculations comparing payday loans to the alternatives. These show that you would pay about 426% APR on a payday loan.
Payday Loan Pitfalls
The main pitfall with payday loans is that they don’t help you solve the problem at hand. If you’re having financial difficulties, payday loans can only make the problem worse. You’re paying a really high rate of interest which means that your expenses are just going up. As a short term strategy – maybe once or twice – payday loans can make sense. For example, you might need an emergency repair for your car so that you can get to work and keep earning income. As a long-term strategy, payday loans will pull you under.
You can get yourself in trouble if things get out of hand. Bouncing checks that you write to the payday loan establishment can end up on your Check Systems file. Banks and retailers may then be unwilling to work with you.
Alternatives to Payday Loans
Instead of using a payday loan, consider some alternatives:
Build up an emergency fund in your savings account (sometimes easier said than done)
Keep an open credit card for emergency expenses
Get a signature loan (or unsecured loan) from your credit union
Pick up a part time job for extra cash
Set up a payment plan with your lenders
Investigate overdraft protection plans for your checking account
Defending Payday Loans
The payday loan industry is not shy about defending itself. They argue that payday loans can be less expensive than bounced check fees and overdraft protection programs. In addition, they argue that payday loans are the best quick and easy way for some people to get money.
What Is Self Employed Loans The Answe
Before coming to the answer to the question, we should be aware of the word self- employment. While talking to a friend, we learnt that the person was hesitant working under someone; in fact, he found his self-esteem being self employed. With a vast majority of UK population being self employed, the lenders find a prospective borrower in them. Self employed loans has opened its door to the class once felt risk laden.
The best way to describe self employed loans will be to check their use during emergencies. An emergency for a human being is inevitable. What happens if a self employed borrower is in need of loans to consolidate his debt, home improvement or for personal or business purposes? Self-employed loan is the answer. It has recognized the self employed as a financially visible class. Self employed individuals may include sole proprietor, partner in a partnership, independent contractor or a consultant. These people are beginning to form the higher income groups of the society.
True self employment is considered bad debt; the only reason behind this is the irregularity in the monthly profit. The profit may be higher on one month and could take a heavy dip the next. Therefore, the lenders are wary of the repayment capacity of the borrower. But as earlier said, exception cannot be rules. Self- employed people have found the roots in the finance market and bad debts are unusual. But this has not managed to decrease the interest rate, which naturally comes with bad credits. Nevertheless, self employed loans have still managed to gain popularity.
Self employed loan are both secured as well as unsecured. Secured self employed loans require collateral, which helps in bringing down the interest rate to minimum.
The guarantee, of course, plays an important role in an increased loan amount and a long repayment period. This makes the borrower risk free.
Unsecured self employed loans are meant for tenants or non-homeowners. This does not require a collateral. In absence of collateral, the borrower does not automatically guarantee repayment. To negate the risk involved, the interest rates are kept a few points higher and the loan amount smaller.
Self employed loans are easily available in the financial market. There are numerous lenders offering loans on various websites. The clever way of negotiating self-employed loans is to compare different lenders and rely on the best. An expert opinion too can be handy.
The best way to describe self employed loans will be to check their use during emergencies. An emergency for a human being is inevitable. What happens if a self employed borrower is in need of loans to consolidate his debt, home improvement or for personal or business purposes? Self-employed loan is the answer. It has recognized the self employed as a financially visible class. Self employed individuals may include sole proprietor, partner in a partnership, independent contractor or a consultant. These people are beginning to form the higher income groups of the society.
True self employment is considered bad debt; the only reason behind this is the irregularity in the monthly profit. The profit may be higher on one month and could take a heavy dip the next. Therefore, the lenders are wary of the repayment capacity of the borrower. But as earlier said, exception cannot be rules. Self- employed people have found the roots in the finance market and bad debts are unusual. But this has not managed to decrease the interest rate, which naturally comes with bad credits. Nevertheless, self employed loans have still managed to gain popularity.
Self employed loan are both secured as well as unsecured. Secured self employed loans require collateral, which helps in bringing down the interest rate to minimum.
The guarantee, of course, plays an important role in an increased loan amount and a long repayment period. This makes the borrower risk free.
Unsecured self employed loans are meant for tenants or non-homeowners. This does not require a collateral. In absence of collateral, the borrower does not automatically guarantee repayment. To negate the risk involved, the interest rates are kept a few points higher and the loan amount smaller.
Self employed loans are easily available in the financial market. There are numerous lenders offering loans on various websites. The clever way of negotiating self-employed loans is to compare different lenders and rely on the best. An expert opinion too can be handy.
Tuesday, November 30, 2010
No Income Verification Home Equity Loan
A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.
The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.
In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.
The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.
In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.
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