FNTN

Archive for the ‘Loans’ Category

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.

Tweet This Post 

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.

Tweet This Post 

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.

Tweet This Post 

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!

Tweet This Post 

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.

Tweet This Post