Entries from December 2010 ↓

Same day cash loans are also popularly known as payday loans. They are even continuously gaining in popularity and widespread all over the world. But are they really famous or they are just as infamous as regular loans from banks which make people suffer financially? In this post, we are going to discuss payday loans advantages and disadvantages.
Advantages Of Payday Cash Loans

1. Helps cover urgent needs and emergency situations because they come in handy in times of financial difficulties.
2. Available in most places whether in local shops or online sources.
3. They are easily applied for and taken out. When you choose to apply from local lenders, you can get the money right in your hand within the same day. If you choose to apply online, you can expect a more convenient and quicker loan application, processing and approval of your loan. Usually you can expect to get the money in an instant or within a couple of hours.
4. Payday lenders ask for minimal requirements. They would not ask you for so many things aside from your bank checking account and to qualify, you only will need to be 18 at least 18 years old, employed and receiving a monthly compensation.
5. No credit check is required. When you have to undergo strict credit check in banks and other loan companies, payday lenders will not care about your credit history so you can be approved of the loan even if you have had the worst credit situation before for as long as you have the capacity to pay today.

Disadvantages

1. High interest rates. Payday loans generally come in extremely high interest rates so they are only good to be taken during financial emergencies. They are not ideal to be taken out several times in a year and when taking out large amounts of loans.
2. Short repayment terms. Usually, they are due in 14 days which is approximately two weeks from the day you got the money from them or on your next paycheck, whichever comes first. The loan amount including the interest rate and the fees will be deducted from your account if you allow them, especially if you have applied online or you must fund the check that you have issued them on your due date.

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When you have bad credit including a low credit score, you know how difficult it can be to borrow money from a lending institution during an emergency. Bad credit can hurt you in every aspect of your life, and prevent you from obtain certain things that you may want in the future like a home, or a new car.

That’s why this article you’re reading will provide you with three important steps to rebuild your credit to good standing(between 720-790 credit score). This is very important because certain jobs look at an individuals credit profile, which could prevent you from getting a the job that you applied for.

Now before we start, our ultimate goal if at all possible should be to pay everything off immediately and not use credit at all. But sometimes credit is a necessary evil.

So here are the three debt elimination steps you must do to rebuild your credit.

Pay your bills on time– If you I had to choose one out the three steps, it would be this one. Better yet, pay your credit card bills a week early so that you are sure they will arrive before or on the due date. If you need don’t have the money to pay on time, then you need to find another job that pays more, or a part time job,  or cut back on some you variable expenses. The last resort would be to contact the credit card company and negotiate a payment you can afford.

Establish Credit– Obtain a secured credit card, put some money on it to get a credit limit, and use that credit card to make some necessary purchases. By doing that, it will start re-establishing your credit. Start charging very small amounts and then pay them off. You can carry a very small balance if you want – $20 or $25 – but NEVER make your monthly payment late. After a year of doing this, you will see your credit score rising a little bit, and you will also be able to apply for an unsecured credit card. card.

Debt-Equity Ratio– The lower your debt to equity ratio is the higher your credit score will be. Most credit card debt elimination counselors recommend that  you should exceed thirty percent of your credit limit on each account. For example, if you have a credit card with a $5000 credit limit, then there should not be more than $1500 of purchases on that one account.

Hopefully these three steps this article has provided to you will help you rebuild your credit, and get you out of debt.

Debt consolidation is the best method for a borrower of multiple loans to transfer all of the balances of those loans into one loan of another lender to pay off all of the debt. Let’s say that a borrower has 4 separate loans such as a car loan, two different credit cards, and a home improvement loan. The interest rates on those loans are 10%, 22%, 18%, and 12% respectively, with an average of 15.5% for the loans. Using the Best Online Debt Consolidation Technique, these four loans can be paid off all at once by using another single loan.

This new single loan can be acquired by applying for it to an online lender that provides debt consolidation loans. Online debt consolidation loans offer benefits that may not be possible with the other forms of debt consolidations. Below is a list of benefits borrowers have by applying online:

• Online debt consolidation can be cheaper than other forms of consolidation as borrowers can negotiate lower interest rates and it is generally lower than the average that the borrower had been paying.

• The borrower’s personal information remains confidential which helps many borrowers, especially those with poor credit history. For people with poor credit history it offers an opportunity to improve their credit score by properly following the repayment schedule.

• When you’re online, borrowers can use features like debt calculators, loan calculators and get expert advice on issues that the borrowers may have.

• An online debt consolidation option provides many more options to borrowers than the other methods of debt consolidation.

With so many advantages, it is clear that only Online Debt Consolidation would be a much better option than any other form of debt consolidation.

For the benefit of borrowers who intend to apply for online debt consolidation, they may require a couple of documents to apply for a loan.

• Proof of income

• Proof of residency

• Your Age

• Any documentation showing that the borrower has recurring revenue.

• In case of a secured loan, a document showing the collateral that will be provided as such.

• In case of borrowers with poor credit histories, they may be asked to give a statement of their credit score.

When all documents are in order, the borrower can apply for online debt consolidation by following the respected links. Once this is done the loan will be approved in a few days for you to use.

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For those who are seriously looking into debt consolidation as a way to eliminate their debts, you need first to compare debt consolidation quotes from different companies. Getting free debt consolidation quote is easy because many companies are now offering this for their potential clients and customers.

When it comes to debt management and finance handling, it is very easy to let go of your money especially if you know that you are expecting some in return. However, it is because of that same thinking that many people are facing debts. They are very complacent with their credit card use that there are certain instances wherein they forget that the day will come that their creditors will demand for their payment.

Where to get quote?

Debt reduction is made easier with the introduction of different agencies that are willing to help customers out. These companies specialize in making payment plans so that people will not find a hard time looking for ways on how to reduce their debts. There are several benefits of getting the assistance of financial companies. One, they can customize a payment program that you can follow which will allow you to pay for your debts in a more flexible manner. Second, they can talk to your creditors in temporarily waiving or giving you a discounted interest rate charges so that you will not accumulate more debts.

If you are also looking for debt consolidation quotes, these companies will offer it to you for free. Many of them are willing to give customers a comprehensive list of their services and the amount that you have to pay.

Tips in selecting which quote to choose

Once you received a lot of quotations, it can be very difficult to select which one to consider. Thus, here are some things that you have to take into account so that you are ensured that you are making the right choice:

1. Payment terms. There are some companies who will claim that they will not charge you added fees for their services but you will not know about that because they are offsetting it to other fees and listing them. Thus, read carefully and do not hesitate to ask if you have questions.
2. Low interest rate. This is the top priority that you should consider in choosing a free debt consolidation quote. Check if the interest rate is lower than what your creditor charges you for.

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If you are worrying about the debts that you have, now is the time to think of a good debt reduction plan that will help you say goodbye to your credit card bills. You have to settle your debts if you do not want your creditors or debt collectors running after you because it is against the law if you are going to run away from your obligations as a lender.

Debt management can be quite tricky, especially if you do not have any financial background to help you decide which debt reduction plans you should consider. For those who are having problems, here is a simple guide to help you with three strategies to reduce debts.

Making time for yourself and your debts

There are many ways that you can do to help lessen your debts. Simple acts like saving your change and bills can go a long way. Some of the practical money saving tips and tricks that you may want to try include the following:

1. Have a budget and carefully allot your salary based on your household’s needs. For example, divide them into percentages like 25 percent for groceries and shopping, 20 percent to be used to pay for your bills and other utilities, and 10 percent for your credit card bills, and so on and so forth. By having a budget, you will prevent yourself from spending money on unnecessary things that you do not really need.
2. Live frugally and save money on all aspects of your life. The trick to good money management is to know when to save and when to splurge. If you are tightening your belts, opt to save money first like taking the train to work instead of riding a taxi. Simple saving efforts like this can go a long way.
3. When your credit card bills arrive, pay more than the required minimum payment.

Get professional help as soon as possible

For those who are still overwhelmed by the responsibility that they have to face in eliminating their debts, you can also get the services of debt help companies that will enable you to talk to your creditors into giving you discounted interest rates and more.

Go to your creditors and compromise on terms

This is the best debt reduction plan that you may want to consider. There is nothing wrong with going to your creditors and asking for their assistance. As a matter of fact, they are most willing to help you out provided that you will be cooperative.

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To effectively manage your credit scores you need to know and understand that factors that are considered in calculating these scores. Without this knowledge you will be operating blindly and you could easily find your credit score suffering simply due to lack of knowledge on these factors. There are five factors on how to improve your credit score and we shall look at them in order of weighting since some of them have a greater influence than other.

Repayment History
This is the most critical factor in the calculation of your credit scores and constitutes 35% of your score. You need to ensure that you make timely payments and should you fall behind it is critical that you quickly get you payments back on track. Make a commitment to meet your financial obligations or it could negatively impact your scores.

Outstanding Balance
This next factor contributes 30% of the total credit score. To earn this 30% you must make sure that your credit cards are not almost or already maxed out. Leave some amount of reasonable balance on your cards. Having a higher amount of credit available to you gives you more marks while having the bare minimum balance shows you may be having financial problems and you may lose good track of your financial planning goals.

Length of Credit History
This is where you get the next 15% from. Here there is not much you can do except give it time. It is however a fair approach since those with greater financial experience stand a better chance of handling credit well.

Types of Credit
Having a variety of credit lines accounts for 10% of your total score. You should however be careful about rushing to sign up for many cards or accounts since you may loose points for having too many applications in a short span of time.

New Credit
The final consideration in calculating your credit score is new credit which accounts for the final 10% of your scores. All applications that you submit and get approval for new lines of credit earn you points. However when you apply and get rejected you loose points and it is better to try and work with the existing lines of credit and only apply for new ones when you can afford and when you know your chances of approval are high.

Having the above information will help you in financial planning and budgeting as you will know where to lay emphasis and which are the more important considerations when making your financial decisions.