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Archive for the ‘Loans’ Category

Introduction.

With the stakes being raised at the Climate Change Copenhagen conference, and there seemingly being even more imperative behind us all doing our bit to help ‘save the planet‘; now is that time to think about how you can fund some changes toward reducing your carbon footprint by making your home more energy efficient, and saving money at the same time.

Insulating your home.

If you haven’t already installed wall or roof space insulation - now really is the time to do it. Insulating your home is not only the least expensive thing you can do but it is also the one that you will most quickly be able to recoup your money by making savings on those expensive fuel bills. If you have a cavity, air-gap, wall then special foams can be injected into the gap forming an insulating layer, on single-wall buildings you could externally fit an insulated faux-stone layer or internally insulated rock sheets. In the ceiling space there are loose materials, foams and blanket like materials you can add. With wall insulation costing as little as $1000 and ceiling insulation only a few hundred dollars, you could be seeing the benefit of your lower fuel bills before you’ve even paid off the loan you take out for them.

Alternative power sources.

You’ll need to take out a slightly bigger loan for these options and be prepared to take a longer term approach to the savings you’ll make - but the following will really mark you out as being committed to becoming ‘greener’ when it comes to heating and powering your home. Depending on whereabouts you live in the USA, and how much land you have around you, you could alternatively fit solar panels, wind turbines or even geothermal units to produce ‘clean’ electricity for you and your family to use, without any CO₂ emissions at all. You’ll need to think in terms of a personal loan over $5000, which will take some time to recoup. However, if you’re planning on moving home soon you can add the cost to your selling price, whereas if you’re intent on staying put and not looking for a new mortgage - you can reap the rewards of your clean energy. Finally, don’t forget also that any excess electricity you produce you can sell on to the power utility companies!

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Introduction.

As the run up to Christmas closes in is there really a way that you can make using a credit card pay for you? Unfortunately Santa Claus, or Father Christmas if you prefer, doesn’t include his own brand of special Christmas credit card - but that’s not to say that you can’t find one to match the type of spending power you’re likely to need.

Holding credit card balances.

It’s a fact that the majority of credit card holders keep a balance of some sort on them. Of course this is not an ideal situation to be in as you are always owing at least some money to the credit card company and, if you at least don’t keep up with the minimum repayments, the interest you get charged can start to mount up leaving you with an absolutely huge bill. What you have to remember is that every time you use your credit card you are in effect taking out a small personal loan; so it’s not just the cost of whatever you buy that needs repaying, but that cost plus interest. It is therefore absolutely essential that you apply for a credit card with the lowest APR (interest rate) that you can find. If you have a good credit report, especially when applying for a new credit card, then use that as a bargaining tool with your credit card company to reduce your APR. Alternatively, if you have a high APR credit card, look for a company willing to give you a lower APR one and transfer your outstanding credit card debt.

If you regularly clear your credit card balance.

For those that can afford it the very best way to use a credit card is to buy things with it - but then always clear the balance as soon as the credit card bill comes through. If you are such a customer you should be able to negotiate a great APR, even though you rarely need to worry about it. Also, as a good credit card customer you can expect to pay no, or at least, reduced annual credit card or transfer fees that some of the credit card companies charge for.

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Introduction.

Being in need of a quick loan in the pre-Christmas rush can make some people just a little bit sloppy, about where they’re getting a personal loan from or what interest rates they’re being charged. Quite frankly, December can be one of the worst times to get caught out when looking for some cash to spend on your Christmas preparations, so we hope you’ll find the following couple of things helpful.

Search, think, take!

Whether you’re looking for an online personal loan, applying for one over the phone or even walking into a local finance office - always do some searching around for the loan offers and then have a think about them before you take one out. For example, we all know how easy it is to search for and find an internet loan; however, you should never just accept the first offer that you come across. Always seek one or two other offers to compare it to - to make sure it really is the best deal. The advantage of searching online for a personal loan is that you can take your time searching around, unlike with a phone application or being in an office with a sales-person constantly trying to tell you how marvelous their offer is.

Ask questions.

Whether you opt for an online loan or get one from somewhere else, always ask questions about the deal you’re being offered. Don’t forget that modern day finance companies are simply the Scrooge of today. It is always worth asking if they can lower the repayment interest rates, remember - if you don’t ask, you’ll never find out! If a loans company thinks they can charge you 20% interest they will, but, and especially if you’ve got a good credit report, they’d probably agree to charge you 15% rather than lose your business. Also, an absolutely vital question to ask is, do they have a ‘cooling off period’. This means if you change your mind about taking out the loan within say a day or two, it can be cancelled without you incurring any penalties.

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Introduction.

There seems to be a new craze spreading through all sorts of companies that most of us ‘regular’ folk have financial dealings with - that of charging us for being good customers! If you’re the sort of person that always pays their bills in full, always repays your credit card balance in time, doesn’t have a personal loan from the bank etc; or in other words never owes money to anyone else, then be warned you could be in line for good finance penalties - just so the finance companies can get some money out of you.

They might as well ‘mug’ you.

In what amounts to little more than daylight robbery or being mugged, finance houses, banks and credit card companies are starting to impose ‘low use’ and ‘inactivity’ fees to accounts that are either not used or are very rarely used. Why? Well the answer is surely too simple - simply to boost their profit margins in the recession. The answer to this is, of course, also very simple. If someone tries to penalize you for not using an account, simply apply for a new credit card or loan account elsewhere. Some of the ‘dormancy’ charges being quoted at present are $50 on AMEX card accounts if you don’t use their Platinum cash-back credit card within a period of 12 months. Being charged non-usage fees by telecoms companies if you don’t make a certain amount of calls a month, not to mention stock-brokers slipping in exorbitant fees - even if you don’t ask them to do anything for long periods of time. However, the worst part of all this is that the companies concerned won’t send you a bill for these hidden charges - but will just add a few dollars to a bill here and there; so if you don’t scrutinize your bills for such covert charges you’ll never know you’re paying them!

Avoiding financial penalties for being a good customer.

Always read the small pint of any financial or loan agreements you enter into. Also, always read the small print on your credit card bills and other financial statements. If you only get your bills/statements online - always check them. Forgetting a user id or password is a poor excuse for not checking you’re not getting ripped off! Always read any letters or emails about changes to your account, if you don’t challenge any sudden changes you are in effect compliantly agreeing to them. Finally always remember, if your free credit report says you’re not in debt to them - you have no debt of loyalty to them either.

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Introduction.

Life and debt is becoming every bit as much of a reality for most folk as the inevitability of life and death. No matter whether you’re on one of the lower wages, comfortably off on a middle income or consider yourself to be doing quite well, this recession has hit everyone in one way or another. No matter whether that’s worrying over whether you can pay this months rent or worrying that your pension fund seems to be evaporating before your eyes.

Take control of your debt.

The single most important thing for anyone to do if they’re in debt is to budget. Surprisingly, the more income people have the less inclined they are to budget. Unlike people on a restricted income, they think money isn’t in short supply so why do they need to budget? Their problems can then quickly start to multiply when they suddenly need to access spare cash, having been used to spending it all - there’s none available. A simple budget plan can save you hundreds of dollars a month. Just budgeting to only spend a set amount on food or socializing will not only save you money - but might just get you thinking how wasteful you’ve been in the past. Along with your budget keep a spending diary recording all your expenditure, you can then use that information to refine your monthly budget even further.

Still in debt?

If you still find yourself in debt then you should think about seeking expert advice. You can do some things for yourself like getting your free credit report, so you can check up on exactly how much debt you have. The more debts you have on personal loans, mortgages or credit cards the more money you have to pay out in interest. So you could see what online financial advice you can gain about how to reduce the amount of interest you’re paying, so that you can then concentrate on paying off the capital and clear the debts.

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Introduction.

If ever you needed a reason for getting a free credit report, even if you believe you’ll have a good credit rating - then that time is probably now. Apparently it has been exposed that people who had genuinely good credit reports and credit scores can suddenly find themselves being able to access the best online loan offers.

Why you might need your latest credit report.

Apparently credit companies have been tracking who’s looking for online loans, then if someone repeatedly returns to one particular online loan offer, in order to consider it further or compare it to other online loan offers, when they do eventually apply for the loan they suddenly find they’re being offered a different rate to the one originally advertized. Needless to say the online loan companies are reluctant to discuss the way, or why, they track potential customers IP addresses - but they do and so you might well need proof of your good credit history, from your free credit report, in order to prove to them that you’re worthy of a better loan deal.

Getting a free credit report.

If you don’t already know - everyone is entitled to at least one free credit report a year from each of the major consumer reporting companies - that’s Equifax, Experian and TransUnion. Your credit report lists your credit history and status, by calculating what is known as your FICO score. Basically, the higher your FICO score the more credit worthy you are and the better you should be able to persuade a personal loan company that you will be a good, low risk, customer and get some favorable repayment terms from them. Your free credit report will also include all sorts of other information including your home address, banking details and employment etc, which along with details of all the loans you’ve had can help you to check that you’re not the victim of an identity theft scam.

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Introduction.

This article is intended for both those people who are looking for someone to provide them with financial aid; as well as anyone fortunate enough to have spare funds and capable of providing financial aid to others. If you’re not already aware you don’t actually have to be a bank or licensed finance company to lend money from or apply to borrow money from.

Social lending.

Run an internet search for the term ’social lending’ and you’ll see listed several what are collectively known as social lending clubs through which you can lend or borrow money according to your means. The social lending club itself is registered with the financial authorities and completely above board; of course when selecting a social lending club do satisfy yourself that it is a 100% bona fide one. Unlike a conventional bank or finance house these websites are made up of individuals, and small groups of individuals, who are prepared to invest their money as loans to other people. These financial aid websites work the same way as any other social media website by connecting together people; those with money to lend and those seeking to borrow money.

Online loans.

Whether you’re the lender or the borrower providing or getting an online loan via social lending is simple. Everyone registers with the social lending club website and agrees to have a credit score check. The reasons for this are simple; the social lending club website needs to be sure that lenders have the funds and that borrowers are not habitual loan defaulters. After that the borrowers post how much they want to borrow and why, then the lenders make an offer according to how much they can lend and the rates available. Interets rates and repayment periods can vary according to how much is required and and the borowers credit history. Don’t worry too much if as a borrower you have a poor credit score, there’ll probably still be lenders willing to work with you on a social lending website.

International social lending.

In the news again this week is how the G20 nations are yet again dragging their feet on funding the billions of dollars promised to developing nations. If you have money to invest as loans there’s no reason at all why you can’t use at least some of it to finance overseas loans. The rates of interest and repayment periods are exactly the same as those for USA loans. However, on a dollar-for-dollar basis making an international loan to help get a business venture off the ground in Africa or Asia could be both immensely rewarding and yet be virtually a philanthropic gesture from you.

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Introduction.

No doubt some cynics will say its just another populist move from a President already struggling to maintain his poll ratings; however, for many American women the recent announcement from President Obama to help ‘moms return to school‘ will be very welcomed indeed. This is, of course, a great opportunity for many moms, both young and old, to go back to college and complete their education whether it’s at high school, first degree or post-graduate level.

Your country needs you!

Getting moms to complete their education will benefit the country on two levels. First, by completing their education they’ll be in a stronger position to then compete for well paid jobs as their CVs will show the standards they have reached academically and, second, simply by finishing their courses they will be empowered with greater self-esteem and confidence. These two things coupled with the life skills that they have learned and developed as moms, should help them to assume their places in the world of work as the country comes out of recession.

What about the cost.

Federal financial help is at hand toward the cost of going back to school for moms. The Pell Grant has been increased to $5350 and you can claim the American Opportunity Tax Credit, providing $4000 worth of tax free expenditure on higher education expenses. The tax credit can be used against distance and online learning, which can be an ideal learning opportunity for any one with particularly young children. As well as being able to apply for scholarships and grants you can also apply for a student loan. If you do decide to take out a loan for your studies make sure it is a student or college loan, not a regular personal loan. College loans are specifically designed to meet the needs of students and it will be well worth your while to find a finance company that specializes in them in order to get the best deal possible.

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Introduction.

I was struck this week by an article I read on the internet regarding paying off credit card bills immediately they come through. The article went on to advise people to pay off any loans they owe on their credit cards immediately, so as to avoid falling into debt if they continue to spend on the credit card. As a piece of advice on its own it is, of course, a ‘no brainer’ - if you avoid paying a credit card bill or even just keep paying the minimum amount due to keep the credit card company happy, you will soon end up with unmanageable debt.

So what was wrong with what the article said?

In an extremely convoluted way the article was making the point that it is better to risk a negative credit score by never owing money on your credit card, rather than falling into debt with it, which would again result in a negative feedback on your credit score rating.  According to this article the only way you can use a credit card to improve your credit score is to owe some money on it; then by paying it off regularly credit rating companies acknowledge your commitment to making regular repayments - making you a good risk for future loans.

The flaw in the argument.

 To me the premise for this argument is flawed. Now first of all I am not advocating getting into debt with credit cards, all I am thinking about is what that article said about credit cards and credit scores. It is a simple fact that if you have a poor or low credit score, loans companies will penalize you with higher interest rates and/or shorter loan repayment periods. If you are the sort of person that can immediately pay off any credit card bills/debt, the article suggested within 24 hours of making a purchase, then you don’t really need to use a credit card - do you? For the vast majority of us we use credit cards particularly because we can at least defer payments until our next pay-check comes through and then pay off as much as we can afford. Invariably, as well, we are the people who’ll need an auto loan or personal loan for a new TV etc, so having a good credit score is actually in our own long-term best interests. If that good credit score is generated from our credit card spending patterns - so what!

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Introduction.

With the housing market remaining stagnant and with no sign of any easing in the mortgage borrowing markets, increasing numbers of homeowners are borrowing money to add attic rooms to their properties. It’s quite simple really, if you need to expand the space you’ve go available in your home but can’t add an external extension to your house, then making better use of the roof space should be the proverbial ‘no brainer’.

Why do people add an attic room?

 By far the most common reason for people seeking a money loan to add a room in their attic is to make an extra bedroom as their family increases. Another common use for attic rooms is as a study. Being in the attic there’s less chance of unnecessary interruptions and yet you can have all the necessary communications and IT services at your finger tips. With more people both being able to and choosing to work from home, adding a study into the attic could be an ideal choice. Some people, who have been made redundant in this current recession and got a redundancy package, have made the decision to work for themselves in the future. For them spending a little of their redundancy money to build ‘attic home offices‘ from which they can work, makes eminent sense. Finally, in the absence of being able to move house, some people are simply seeking to maximize the value of their home for when the recession does end and they can afford to move. So, for them taking out a small loan to add an attic room is simply an investment for the future.

Costs for adding an attic room.

Even if you have the land around your property to add an external extension, adding an attic room will cost you much less and free you up from a lot of expensive and time consuming red tape. Depending on the exact specifications you want for the attic room, and if you’re able to do some of the work yourself, one can be added for as little as $20,000 compared to at least $50,000 for an external extension. For most people getting and repaying a money loan of around $20,000 is within their budgets, whereas a larger one might be more problematic for them. If you can afford to take out a bigger loan, then adding a large attic bedroom with an en suite bathroom will really pay dividends in the long run.

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