Showing posts with label Bridge Loan. Show all posts
Showing posts with label Bridge Loan. Show all posts

Tuesday, October 7, 2014

Bad Credit will not Stand in the Way of Getting a Loan!

Almost all the people would like to obtain a loan. It may be for a house mortgage or buying a latest model car, or anything else. There is an assumption that one cannot get a loan if he has a bad credit. Nothing can be far from truth! It is agreed that getting a loan, with bad credit, may pose a few problems; but it cannot be said that possibilities of getting a loan with bad credit are completely ruled out. If you indulge in self-retrospection, you will realize the causes which led to your having bad credit. When you go in for a loan, you should be prepared to explain this, in clear terms, to the lender.

When you contact the prospective realistic loans lender, apart from giving a complete picture of your present financial status and affordability, you should make it a point to mention specifically that your credit was otherwise good. Not all lenders are alike in their approach. There are a few who are practical and lenient towards such borrowers; they may be inclined to favor you with a loan. While accepting the loan, knowing your affordability, you should take a loan only for the amount that is actually needed. You have to keep a note of the interest rate, which will be higher compared to loans with normal credit. Since the loan offers differ from one lender to another, you can gather complete details of loan offers of various lenders, for the purpose of taking a decision in the matter. 

There are some lenders who are known as ‘predatory lenders.’ They charge rather highly prohibitive rates of interest. They have certain provisions, to safeguard their interest, in the event of any default by the borrower. Though these provisions may seem unreasonable, you cannot complain. You have to only at a distance from such lenders. After analyzing the details connected with the loan offers from different lenders, you can come to a conclusion as to which offer is reasonable and acceptable to you. Please ensure that there are no hidden clauses in the offer. All said, it is better you go through every detail mentioned in the offer minutely before signing the application for loan. 

You have bad credit; banks are not favorably disposed towards your loan application. Still, you need not worry. The world is not lost! The world is big and there are other sources from where you may be able to get a loan, even with bad credit. There is one good option, i.e. an online loan. It is quite easy to have access to many of the online lenders. Processing is done quickly and without any hassle. The online lenders would only need complete details relating to you. There will be form available online and if you just fill it up, giving all the details as required, and submit it online, that is enough. The lenders will process your application immediately and approve the loan in no time. 

Though a few lenders ask for collateral, others give loans without collateral. They may charge slightly higher rate of interest and there may also be some fees payable by the borrower. It is for you to distinguish between a reasonable and an unreasonable lender. Since the lenders, in general, make it a point to check the credit score of the borrower, you should take some efforts to keep the credit score at an acceptable level. You could make things easy by spotting lenders who are least bothered to check the credit score of the prospective borrowers and try to have negotiations with such lenders. Such lenders do mention in their offers that they are not interested in having any check of credit scores. After selecting one such lender and after satisfying yourself with all other terms and conditions, you can obtain the loan, without any fear or worry.

Friday, September 12, 2014

Pay Off Your Loans for Car Title with Quicker Strategies

Getting loans for car title can be quick and easy. While banks may require you to go through a lengthy process, obtaining a car title loan can get you fast cash in hand. This type of loan makes it easy for people who are already in debt. Car title loan companies do not need to check a borrower’s credit history to lend out money. All they require you to do is to put your car under a lien. 

Once the company determines the value (which should be a little bit more worthy than the amount you are asking for) of your car, you are given access to the loan within twenty-four hours. You get to keep your car to yourself and use it. However, making an early repayment can help you to focus on other goals. 

A Quicker Way to Repay My Loan

The only way, to free you from it is by making quicker repayments. If you are already underwater, by doing this you can improve your credit score and your overall financial history. The additional benefits for freeing up your loan are- you get to concentrate on other goals like saving money for your kid’s education or buying a new home. Hence, getting your loan paid down through some simple and clever strategies can get you off your loans for car title faster.
  • Pay One Extra a Year
One of the best ways is to make an extra payment per year. Making one extra payment may seem overwhelming. So, consider spreading out the extra payment over one year’s time. If your auto payment per month is $300 per month, then divide the amount with 12. You will get $25. Add this $25 to the $300 you pay every month. It will be $325. If you follow this method, you will notice making one full extra payment throughout the entire year. 

This saves you from feeling the pinch of making an extra payment. So make headway on the principle. You will be able to save some Dollars when it comes to interest payment.
  • Repay For Every Two Weeks
You could also pay off your debt by making ‘bi-weekly’ repayments. If you have to make a payment of $300 per month, then try paying $150 for every two weeks. You will gain extra payments for months having five weeks. This will enable you to make one and one half payments. Notice your loan balance going down while your credit score going up.
  • Round Up Your Figures
Try to make your payments in round figures. Suppose, if your payment per month is $367.22, then round it to $400. You will find up that after twelve months, you are able to add up an extra of $393.36. It’s plain maths:
$400 - $367.22 = 32.78X12 (mths) = $393.36
By following this calculation, you can progress with slow and easy steps to becoming free of your car title loan debts.
  • How About Refinancing Your Loan?
Most local bank communities and credit companies offer low interest rates. Shop around, at some of these places to verify if you can refinance the car loan to a much better interest rate. This can be one of the quickest ways by which you could lower your payment and simultaneously save money on the interest. 

A savings of more than 1% is worth any closing cost and additional fees. Knock out your car title loan faster, while you keep paying the same amount.
  • J. Money’s ‘Gigs and Goals’ Strategy
The ‘Gigs for goals’ strategy was invented by J. Money. He runs a blog on budgets. According to his theory, you could quickly repay your loans by raising funds through extra work and projects. Get hold of a weekend job or some freelance work. The income, which you will earn, could be used for paying off your car title debts. 

While these are some of the simple and easy ways to clear off your debts fast, not all loans for car title could be paid off easily. Make sure you are not breaching the rule of your company by making faster repayments. Some ethical companies do not penalize the borrower for making fast payments.

Stay Ahead Of Your Deadline

Always try to stay ahead of loan repayment deadline. This will help you to build up a good reputation for yourself and provide an opportunity to opt for another loan in future when needed. 

Author Bio: Cayla Silverstone writes for reputed financial blogging sites that publishes trustworthy articles related to loans of car title industries. In this article she is discussing about some quicker strategies to pay off your loans for car title

Friday, August 29, 2014

How to Clear Your Debts With Auto Title Loans

Every borrower looks for a credit score hike while borrowing loans. The fun side of borrowing an auto title loan is that, the borrower gains a win-win situation. While the lending company does not consider the borrower’s credit score when lending the money, the borrower can utilize this opportunity to raise his/her credit score.

Clear Your Debts With Auto Title Loans

A Credit Score

In a general sense, a credit score is basically a three digit number, generated from a mathematical algorithm and calculated based on your credit history. The main purpose of a credit score is that it is used to predict risk. The risk of a sense of irresponsibility arising from your part during repayment.

So, the better the score, the better will be your credit limit. Probably you must be knowing that anything lower than a score of 550 will get you to the rejection list. You will be permanently rejected when you are seeking to qualify for any type of financial or credit loan. Credit scores are time taking to score. However, an auto title loan will help you to solve the problem and pay off your debts.

Solving With Auto Title Loan

Firstly, when saying that an auto title lending company does not look at your credit score. It means that they look at your car’s value.The value of your car determines the amount that they are going to lend to you. Your car becomes an asset that puts you through in the direction of the credit line. This is a great way to borrow credit in case if you are facing bankruptcy. The company does not consider your credit history to see whether you are eligible or not.

Your Asset

Using your car as a lien against your loan means that if you are unable to repay the amount borrowed, then the company takes away your car as a repayment. What is great in case of this is that, you get good options to repay your loans. Your monthly income will be your base on which your repayment option will be made.

Credit Your Limit

When you take out a title loan, you will expect two things –
  1. Low Monthly Payment, and
  2. Low Rate of Interest.
You can easily pay off those debts which are of high interest rates. By this you can easily do away with your credit rates. That is, by refinancing your credit limit with a title loan.
So if you are looking for a way to obtain a high credit score, then auto title loan is a great step to go ahead. It makes things hassle free especially if you have a large amount of debt that needs to be partly cleared off. It is very simple. Just walk up to any local auto title lending company or simply give them a call to apply for. It will hardly take you twenty minutes to get your loan.

Credit Points To Consider

However before consider going ahead for the loan, it is always advisable to consider the legal terms and conditions that you are committing to.
  • Always check how the interest rate is being calculated. You should also check the time period during which the rate of interest is considered. Suppose if you are told by the company that you will be charged an interest of 3%, at first it might seem okay to you. However, once you start reading their paper work, you will find a different meaning altogether. You might find that an interest of 3% per month will annually turn up to be 36% per year.
  • Keep in mind that auto title lending companies belong to a category different from credit card companies or banks. Hence, you will be subject to an interest of higher rates.
  • Make sure you have got all your doubts cleared before signing on the consent paper. Ask specifically about the additional penalties for late payment.
The potential risk here is losing your car to them. Concluding that your credit limits were the least to worry about. Remember these factors and enjoy clearing your debts.

Author Bio: Cayla Silverstone is as a Financial Analyst by profession. She lives in the United States and had worked with some of the leading auto title loan lending companies. She is also very passionate about cars and in her free time she enjoys giving advice to people regarding auto title loan.

Friday, December 27, 2013

Car Loans Versus EMI Schemes

Asset financing is one of the fastest growing products in the finance sectors of most countries. The purchase of cars is one of the aspects that are driving the trends of asset finance. Car loans and Equated Monthly Installments (EMI) are among of the products available in acquisition of cars. The provision of these products varies with the options customized to favor particular clients depending on their cash flows. In addition, the products have been developed as a marketing and customer retention strategy by the financial institutions.

Car Loans

The Equated Monthly Installment (EMI) is a payment plan that requires fixed monthly payments from the borrower to the lender. The payments are to be made at a specified date of the calendar month. The payment pays off both the interest and principal of the loan in monthly intervals over a specified period until the loan is paid in full. Purchase of car through EMI requires that the car’s value and interest be paid off in regular monthly installments. The borrower is not expected to pay in excess of the agreed monthly installment.

Car loan involves borrowing of money to purchase a car. The sum borrowed amounts to the value of the car and allows the borrower to pay for the car in full. Interest is levied on the sum borrowed and an agreed time within which the principal and the interest is to be paid in full is made. The lender expects that within the stipulated time, the borrower will have cleared his or her debt in full. Car loans do not have strict rules controlling the payment plan. The borrower may make varied amount in monthly payment provided the minimum value is exceeded.

Unlike ordinary payment plans, EMI plans do not allow the borrowers to pay in excess of the agreed fixed monthly payment. The process of acquiring an EMI car payment plan involves identifying whether the monthly installment will be made in advance or in arrears. EMI in advance requires that a prior installment be made to the bank by deducting the amount from the loan disbursed to the car dealer. On the other hand, EMI in arrears does not require an advance payment to the bank thus the principal and interest are higher. Once the choice is made one-time charges and associated fees are paid then the sum is disbursed to the car dealer.

The main advantage of EMI is that it works on a fixed amount of money to be paid once a month. The scheme is convenient for budgeting. However, what does not meet the eye about the scheme is that it is expensive. Compared to car loan, EMI is expensive and is insensitive to economic fluctuations. The scheme is also punitive because it holds the borrower in a prolonged financial relationship with the bank that prevents the borrower from accessing other financial opportunities. The fact that the loan repayment cannot be expedited makes the borrower obliged to loan over the specified period. Meanwhile, you can acquire your car and a provisional driving licence.

Wednesday, May 8, 2013

Why You Should Avoid Log Book Loans

In these tough recession times, many of us find ourselves short of cash sometimes. An annual bill comes through, or something breaks and needs to be repaired. If your monthly pay only covers you normal outgoings with little left over it can be difficult to manage these unexpected expenses.


In recent years we’ve seen the market flooded with so called payday lenders offering people fast cash with few questions asked. The risks are well publicised and regulators are starting to take notice of these companies (just this morning an ad has been removed from UK TV for suggesting that payday loans are a good way to fund a better lifestyle).

However a less publicised but equally risky source of instant cash is increasing in popularity and it’s good for you to understand what it is and why you should avoid it.

A log book loan is a short term loan which is secured against your car. You hand over the log book to the lender in return for cash, so they effectively own the car while you’re making repayments. You can still drive the vehicle but as you don’t have the log book in your possession you are exposed to risks.

As you have handed ownership over to the lender you are in a vulnerable position. If you are involved in a crash, or if the car is stolen, the lender will still expect you to repay the money they’ve lent to you, even though you no longer have a car. And because they hold the log book it could be difficult for you to claim insurance.

Additionally, many lenders are not very sympathetic or ethical when it comes to repossessions. The car is effectively their property so they can repossess when they like. There have been stories of people missing one repayment and having their car taken away.

It is the repayments themselves, though, which are one of the biggest problems with log book loans. Like with payday loans, you will most likely find yourself being charged a very high rate of interest. It might seem like a good deal to suddenly get a couple of grand in cash and repay around £60 a week, but you will end up paying maybe triple what you originally borrowed, or more. Also, if you miss even one payment you will quickly find the interest spiralling out of control.

Log book loans are not covered by the same levels of protection as other types of credit so if things go wrong you don’t have many rights. The contracts are often deliberately confusing, so what might seem like a straightforward loan is actually quite complicated and designed to get the most money possible out of you.

When it comes to cars and finance you need to be careful because you could have your means of transport taken away from you, and still have repayments to make, leaving you in debt and with no car.

Sunday, April 7, 2013

The Purpose of A Bridging Loan

There are plenty of people out there who are in need of money for buying a property and when it comes to this, it seems that most of the times the best way of getting their hands on the much needed money is to consider a bridging loan. Bridging Loans are very useful for individuals who want to buy a new property, but need money for the down payment, until their primary home will be sold. This can be ether an investment property or a home. Not only regular people, but also businesses will use such loans in order to purchase commercial properties, warehouses and for buying new office locations. If necessary, some businesses may also use a bridging loan in order to buy out the other partner.

Bridge Loan

How Does a Bridge Loan Work?

Before you will apply for a bridging loan, you will need to first of all ensure you have the financial power to pay it back, especially in the case your property will not be sold right away. The good news is that with the majority of lenders, you will not need to make the payment for the first few months, but in this time, you will still need to pay up the interest rate, which will accrue. You may look at these loans in the same manner that you would with a short term loan and in general, after a year, you will need to have to money to pay it back.

You will secure the loan with your own home which will be used as the down payment for the new home you have purchased. Given the fact that this is a short term loan, you will have to calculate the exact amount of money you will need to pay for your mortgage every month and see whether or not the mortgage is affordable for your budget. Don't forget to also check the fees associated with your mortgage.

Pros and Cons of a Bridge Loan

The most amazing thing about bridging loans is that you will be able to buy another business property or home without actually selling your main office or home first. This is an amazing option to have, especially in today's real estate market where many properties are sold very fast. A bridging loan is going to be very useful mostly in situations where you find a home that has as great price and you don't want to miss out on such a deal.

Now, when it comes to the cons, this is a slow market, so you will need to make two mortgage payments, while on the third the interest rate will accrue. Then, if you will not manage to sell your main property, you will need to start payment for the bridging loan as well. With that being said, you need to be absolutely certain of your financial capability of handling such situations. Now that you know what a bridging loan is, you will be able to take out the best one by researching lenders properly and only then taking a final decision!