Bad Credit Business Loans For Small Business Owners

Getting a business loan is hard enough. Just imagine how much more difficult and complicated it can become if you had poor credit ratings. Not because you are not able to pay off your debts but because you have recently started a small business and you still have not started building your own credit history. This is often the case with women who have decided to run their own small business. There will come a point that they will need additional capital but they cannot seem to have it that easily simply because they do not have the kind of credit history that creditors wants to see.

It is a good thing that these days, financial firms are already offering bad credit business loans. Some even extend their services to “disadvantaged” business owners and offer packages like small business loans for women with bad credit. These loans are like any traditional loan that you know of. The only difference is they are not big on good credit ratings. There is still a need to file a loan application but the borrower need not provide proof that he or she has good credit history. This works well for small business owners, especially women.

Aside from bad credit business loans or small business loans for women with bad credit, there are several other alternatives that small business owners can turn to for additional capital. These other options also do not require good credit history but many of them require small businesses to accept credit card payments. This is because approval of the funds borrowed and the payment of which depend on the average monthly credit card sales volume of the business. The required minimum average monthly credit card sales volume might vary but it is generally easier to get approved for additional funding than with traditional small business loans.

These additional options include business lines of credit that work like revolving funds. There are also cash advances that are quite similar to small business loans. Then there is credit card factoring that most financial services offer nowadays.

It can help to learn more about these other options so small business owners will not have to say goodbye to their business should they be unable to get additional funding through traditional small business loans. Keep in mind that bad credit business loans can come in quite handy during the time of great need.

Getting A Bad Credit Cell Phone – A How To Guide

For people with good credit, the easiest, fastest and most affordable way to get a cell phone is to subscribe to mobile phone plans offered by many cellular providers. But to people with bad credit or no credit, getting a phone and a plan is a little cumbersome. However with a little patience and know – how, you will surely find a no credit check cell phone.

How To Get A Cell Phone With Bad Credit Or No Credit

Look and shop around from local cellular shops or online. Check popular mobile phone providers like Sprint, Cricket, Verizon, and T – Mobile. These companies are big and they have a wide variety of services offered like cell phone plans for bad credit and all you have to do is to apply for one. However, most of these companies will ask you to place a deposit before you can get a particular phone and a plan. Also, the amount of deposit depends on the several factors such as the phone type, model, and cost, plan available, and your credit situation. If you have a very bad credit or you have no credit at all, then you will be a risk to their business so most probably, you will be getting a more expensive deposit rate. However, placing a deposit should not be an issue because you can normally refund it after 12 months of on – time payments or you can choose to have it credited into your account so that you will not pay for your cell phone bill for several months. The problem arises when you will be able to mess on your monthly bills because if this happens, you will not be able to use or refund the money you have deposited. It is the policy of these companies to forfeit deposits in case you miss payments or upon default. Another way is to get a co – signer for the plan. This will somehow reduce the rate of the deposit and this can also possibly allow you great deals on bad credit cell phones.


Mistakes To Avoid When Trying To Get Out Of Debt


If you are trying to work your way out of debt and are not succeeding, it may be that you are making some of the most common mistakes. Even one simple mistake with your strategy to get out of debt can hold you back.

Here are the most common reasons why some people struggle to get out of debt and never seem to make any headway.

1. Lack of patience

In most cases it is going to take some time to get out of debt. It probably took you years to get into this situation and it may take some time to get out of debt. Patience is the key to your fight against debt. Once you realize that there is going to be sometime involved, you’ll be better off and can commit to getting out of debt for the long haul.

2. Goals not established

It is really hard to reach the goal of being debt-free if it has not been firmly established. The way to do this is to set pen to paper and write it down. There is something about writing down your goals that makes them more fixed, real and attainable. If you prefer to write them down on your computer, that will work as well. The idea is to just get it written down somewhere to make it more of a commitment.

The goal needs to have a deadline. Crunch some numbers and see when it would be possible to get your debt paid off. Don’t worry if it will take a while, the important thing is to get it done.

3. Not understanding credit card companies

A lot of people have the misguided notion that credit card companies will help them out if they have a problem paying off the balance. It would be nice if this was true, but the banks are only interested in their profits. Credit card companies are not going to offer you a hand if you have a hard time paying your bill. You have gotten into the situation on your own and you will have to take full responsibility for getting out of it.

4. Spending habits remain the same

If you really think about it, the problem that you are having with debt right now has come about due to poor spending habits. If you are not going to change these habits, how can you really expect to get out of debt? This is one of the first things that needs to be addressed when you’re having a problem with credit card debt.

If you are a shopaholic you will have to put your credit card away and not use it for any future spending. Using cash is a good way to stop debt and it is easy to get into the habit of using a debit card or money in your pocket to pay for items.

5. Getting rid of credit cards

It’s time to destroy your credit cards if you cannot handle them responsibly. This is a very common problem for a lot of people, so you don’t have to feel alone. There is a lot of temptation to spend and it can be very difficult to walk away from a good sale if you have a credit card available.

If you don’t want to get rid of your card but just want to put it away for a while, ask one of your friends or family members to hold onto it for you. That way, you won’t have instant access to your card and will only be able to use it in emergencies. Just make sure that you tell the person that is holding onto the card for you that you don’t want them to hand it over unless an emergency arises and you don’t have the funds to cover it.

Although these are all simple mistakes, they are quite often the major reasons why people remain in debt. Sometimes it just takes a simple reminder to get you back on track to becoming debt-free in the future.

Timothy Ng is an experienced personal finance writer, specialising in credit card comparison. Check out his guide to best credit cards where he will step you through the process of finding the best credit card.

10 Tips to Diminish Your Consumer Debt

transforming debt into wealth

Credit cards have many misconceptions associated with them. Most people fail to realize that a credit card is not extra money they get for free. It is rather a debt that you take from the bank and you will have to repay it later.  Unfortunately most people regard a credit card as money won in lottery. They keep on spending until someone knocks on the door and hands over notices from the bank.

According to the numbers, the average consumer debt of an individual in the US is $8400. The use of credit cards for purchases is 112% higher than payments made in cash. Surprisingly, more than 40% of US families spend more than they earn.

23% of Americans in consumer debt think that their debt is unmanageable for them and they will never be able to pay it. However, with timely and proper measures, diminishing your consumer debt is quite possible. Here we share 10 valuable tips to help you diminish your consumer debt.

Stop Increasing the Debt – As soon as you realize that you are in a dangerous debt situation, stop making any more purchases. Chop up all your cards, shred them, burn them, do any thing you need to keep your hands off them. If you are not among the obsessive compulsive ones, you can save at least one of the cards for emergencies.

Transfer your balance – We have already told you to keep one of your cards safe. Let it not be a random choice. Rather, choose the one with lowest interest rates and charges. Remember, even if you are not making any credit card purchases, the debt may still increase due to interest rates. Therefore, it is wise to transfer all your balance in a low-interest credit card.

Consolidation loans – Consolidation is like a helping hand that many banks are offering to the victims of consumer debt. Also, the federal government tries to encourage people to pay their loans by offering debt relief programs. Debt relief programs can cut down the amount of your debt so that you are able to pay it back more easily.

Snowballing – Snowballing your debt means tackling with it one at a time. It is better to start with smaller ones which you can pay them off completely and easily. This will bring relief and encouragement to pay off all the debt eventually.

Pay twice a month – What many people don’t know is the fact that interest is calculated on a daily basis.  The more you wait to pay the next installment, the more interest you will have to pay. By dividing the monthly minimum in half and paying after every two weeks, you will keep reducing the debt balance and interest rate more quickly.

Negotiate Your Debt – Banks and creditors are more willing to see you pay your debt rather than seeing you going bankrupt. You can negotiate to lower interest rates and the chances are that they will agree as long as you promise to pay them back.

Get rid of higher interest first – Despite snowballing, balance transfer and negotiation, there may be some debt with relatively higher interest rate. It is irrational to keep that interest amount increasing. Try to pay off such high interest debt first.

Snowflaking – Snowflakes refer to micro payments. By making micro payments whenever possible, you will substantially reduce the amount of interest. This will bring your debt is somewhat static condition. So, you won’t find it increasing at a faster pace than your payments.

Change Your Lifestyle – To pay off your debt, you will require a reasonable amount every month. The best way is to cut down on your expenses. For instance, if you are used to eating out, try cooking at home for a few months.

Find an extra source of Income – There are numerous home based work option these days. A little extra money can work wonders for you. But beware; you have to dedicate the entire amount to your creditors for few months.

Albert Harris, contributing writer at CreditDonkey wants all of us to reduce our debt.  Find 0% balance transfer credit cards to help reduce your interest payments. Read credit card reviews to select the best credit cards while managing your personal finance.