Finance

6 steps to getting a car loan quote

Looking for a new car and do not have enough finances? You can always look for a car loan but before that, it is important to know whether you qualify for a car loan. Here are some important steps to take to get approved for a Car Loan:

  • Start with credit score: when you know your credit score, you know how the lender has calculated the factors. Without getting your credit score, there are chances of being blindsided into taking a lesser deal that will cast a heavy burden on the payee. Hence, check your credit score to know if you qualify for a car loan.
  • When going in without having a detailed report on your credit history, there may be some discrepancies that you have overlooked as a result of which you may not get the loan. So when you start out, if there are any essential red flags on the credit report, then take the time to resolve it (it is essential or you might not qualify for a car loan) and then approach the lender after a short interval to get the best and expected loan quote.
  • Once you are sure about qualifying for the car loan, don’t just stop with one lender who is ready to sanction the loan. Take time to reach out to other prospective banks or financial institutions so that you have a detailed list to choose a car loan from, based on your affordability.
  • Step out and take an interview with the lender. While searching online may provide enough information, all the terms of the loan cannot be stated or clarified online. Going in person to meet the lender and then taking time to fill out paperwork and getting a written loan quote will be helpful to understand your options. Also, make sure that you give enough time between the appointments so that you have time to weigh the factors and ask better and important questions to clarify all your doubts before getting another loan quote.
  • Carry all your documents. When setting out to check about a loan and get a quote, make sure to carry all documents that may be required to check your eligibility so that you can show the lender you are prepared and they go the extra length to get you the best offer.

Once you have got the quotes, shortlist the options, do one more round of clarifications and pick the loan quote you are sure about.

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Finance

How to Choose the Right Car Loan

If you are considering to choose a car loan for the next vehicle, some important things should not be missed about loan quotes. However, taking extra caution in researching and then picking the best auto loan may help you to save thousands of dollars that could otherwise be lost in the loan transaction in the form of car loan interest rate, hidden costs, etc. To start with, check out these essential tips that can help you choose right loan quotes to save yourself the hassle of losing money:

  • Set a Budget: Fixing the budget within your means is essential because when you choose a car loan, you will not just be repaying the loan amount borrowed but also the interest and extras. So, when you are out to choose a car loan quote, mention only the overall cost and keep your budget plans to yourself. Let the financial institution give you their best terms and then you can play it up for negotiation. Don’t reveal your cards, but drop them when you have got the best out.
  • Calculate Your Repayments: Before you choose a car loan, you should calculate your repayments. There are quite a few online forums that help you calculate the prospective amount to be paid and the method of calculation. However, these forums also reveal what lengths the lender could go up to. Through these online calculators, you can evaluate the various interest rates that would be feasible for your repayment.
  • Check Your Credit Score: It is important to check your credit score before choosing a car loan because the rate of interest depends on your score eligibility. Having a high score would mean that you could get to negotiate certain terms of the loan.
  • Old Car Rate: If you have decided to trade-in your old car along with a car loan, then it is essential to know the rate at which the trade-in is being done. This amount will help you to finalize the total loan amount and also provide leverage for higher deals in case of an even pricier car.
  • Do Your Research: Research the lender’s car loan interest rates online and then take them up on giving detailed loan quotes. This will ensure that you get to pick the best deal for you.

 

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Finance

Ways to get student loan forgiveness

Student loans pose as a huge burden for most Americans pursuing their higher education. You can obtain relief from this financial stress if you can qualify for a federal student loan forgiveness. You can choose four programs to rule out or diminish your federal student loan balance based on the job or repayment plan that you choose. These are listed below.

Teacher Loan Forgiveness

In the case of teacher Loan Forgiveness, your loan balance can be canceled or reduced in just five years. If you have a long term teaching career plan, you can use both the Public Service Loan Forgiveness and Teacher Loan forgiveness for 15 years. Only direct loans and Stafford loans are eligible. Your chances of qualifying for the Teacher Loan Forgiveness is heightened if you have taught or plan to teach full time for five years in low-income public schools with a loan balance of $17500 or less. However, this is valid only for teachers who have taken a loan post-October 1st, 1998.

Public Service Loan Forgiveness

Your direct federal loans can be forgiven if you have worked or plan to work for the government or non-profit organizations for a minimum period of 10 years. You will be eligible for a Public Service Loan Forgiveness if you have repaid the full monthly loan installment on-time using an income-driven repayment plan. This program was kick-started in October 20017 and hence only those who have made all the 120 repayments since the date can qualify for a Public Service Loan Forgiveness.

Perkins Loan Cancellation

Up to 100% of a borrower’s Federal Perkins Loans are forgiven if they work or have worked in a public service job for at least five years. Public school teachers, police offers, nurses, firefighters are individuals who regularly qualify for this student loan forgiveness.

Income-driven repayment

You are eligible for a student loan forgiveness if you adopt an income-driven repayment plan such as Pay As You Earn (PAYE) or Revised Pay As You Earn.

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Finance

Valuable tips on Public Service Loan Forgiveness

If you get a student loan forgiveness, then you can end up saving thousands of dollars from student loans. If you take up a job in public services, then you may qualify for a Public Service Loan Forgiveness. Here are some important tips you need to know about Public Service Loan Forgiveness.

  • Public Service Loan Forgiveness is primarily a federal program that essentially forgives federal loans of student borrowers who work full-time in a federal, state or local public service job and make at least 120 on-time payments (this roughly equates to 120 months of student loan payments made on-time)
  • This program is eligible only for payments made after October 1st, 2007. Any payments carried out before this day will not add up to the 120 payments.
  • As a borrower, you can make the 10-year student loan repayment using any of the following repayment options: standard repayment, Pay As You Earn Repayment (PAYE), Income-Contingent Repayment (ICR), Income-Based Repayment (IBR). You can improve your chances of being eligible for a Public Service Loan forgiveness by making most of your 120 rebates using an income-driven plan. The direct loans that are eligible include Federal Direct Subsidized Stafford/Direct Loans, Federal Direct Unsubsidized Stafford/Direct Loan, Federal Direct PLUS Loans (for parents and graduate and professional students), Federal Direct Consolidation Loans
  • Only two types of student loans, namely: direct loans and Federal Direct Consolidation Loans are eligible for a Public Service Loan Forgiveness. The federal government must only approve the direct loans for you to qualify.
  • Note that if you have taken a private student loan, Federal Perkins Loans or Federal Family Educational Loans, you will not be eligible for the Public Service Loan Forgiveness program.
  • Keep in mind that as long as you are employed in public service, you qualify for the Public Service Loan Forgiveness. Your eligibility will not be affected if you have worked under different public service employers during the 10-year period.
  • With the Public Service Loan Forgiveness, 100% of your federal student loans are forgiven.

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Finance

Reasons to seek for student loans

A student loan is a loan offered to students to be able to pay off expenses relating to education. The expenses may include tuition fee, accommodation costs, school supply expense, etc. Here are a few reasons why you seek for the top 5 student loans:

You need it: The fundamental reason to get a student loan is that you need it. The world can only progress when everyone gets a good education and applies this knowledge in the working of the world. To be educated, one needs to go to a good college. It is a known fact that attaining an excellent education at a great college can be very expensive. Sometimes, one may not have enough to pay for college tuition and their parents too may not be able to afford it. In such cases, it works out to take a student loan.

It’s easy: This may not be a valid enough reason to take a student loan, but it is very true that it is easy to get a student loan. The authorities know that student loans are usually repaid by students, who while in college may not be able to provide sufficient funds to pay back the loan. Thus, the rates of interest on student loans are low and hence can be easily dealt with.

It’s usually a good idea to find an alternative to borrowing. Here are a few alternatives to borrowing:

Grants and scholarships: Grants and scholarships provide you with free money. These do not need to be repaid and work out to be enough to pay a large chunk of your tuition amount.

Work during school: This might be a difficult task, but it helps to save up enough funds to cover some part of college fees. Getting a part time job takes away the little free time you may have, but in the long run, it’s totally worth it.

Less expensive colleges: This may seem like the last option on your list, but it cannot be ruled out because if you are low on funds, you may have to make a compromise on where you study.

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Finance

How to get a student loans without a cosigner

A cosigner can be defined as a joint signer of another person’s debt which will become the cosigner’s liability shall the borrower default. Here are a few ways to procure top student loans without a cosigner:

Federal student loans: The government of the United States of America offers various loan opportunities, some of which do not require any credit history or cosigner backup. Opting for a federal loan is a good idea when one does not want to involve a cosigner. Federal loans are usually allowed at a low-interest rate and the amount that one has to pay while in school can be subsidized.

Private student loans: Private lenders comprise of online lenders and any other companies or organizations that provide loans to students. It is a challenging task to get a private student loan without a cosigner. However, if you have a good credit history, you can apply for this loan and avail it without a cosigner. Student loans with a bad or weak credit history will not be eligible to apply for these loans without a cosigner.

Building up of credit: It’s not the most feasible option and also involves a lot of waiting time. You can build up your credit over a period, till it’s stable enough to get you a loan without a cosigner. You need to plan and organize everything to build up your credit. More than anything else, you need to be patient.

Collateral: You can use anything you own as collateral to get a loan, but through this method, your loan will not be categorized as a ‘student loan’ anymore. If you own a car, you can use it to attain this loan. This way you may not be able to get a loan worth the entire college tuition amount, but it will provide a good sum of money. Collateral loans are usually expensive to pay off, and they are a riskier option when compared to student loans, but if you do not want a cosigner and if no other method works, then you may have to take the plunge.

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Finance

Advantages and disadvantages of merchant cash advances

Merchant cash advance (MCA) is an easy and convenient means of small-dollar funding for small businesses. They come with several advantages and disadvantages, as mentioned below.

Benefits of merchant cash advances

  • Merchant cash advances are quick and easy to obtain. In most cases, the money is deposited into the borrower’s account within a week and without requiring extensive paperwork. MCA providers just look at a business’ credit card receipts to assess if they can repay the advance.
  • Merchant cash advances don’t require a small business to place a collateral in exchange for money. Thus, being beneficial for business owners, as their assets are not at stake even if their revenues and credit card receipts suffer due to slow business. However, most MCA providers ask borrowers for a personal guarantee, a legally binding document that holds them responsible for making the repayment.
  • If the repayment method agreed upon is based on a fixed percentage of credit card sales, repayments will vary depending on how your business is performing.

Disadvantages of merchant cash advances

  • Your annual percentage rate (APR) of the fees, as well as interest, could run into three digit numbers, ranging from 40% to 350%. Turning out to be a lot for expensive than the APRs on traditional bank loans, which are usually 10% or less.
  • The ease of availability of merchant cash advances can throw small businesses into the vicious cycle of debt. This is especially true for borrowers who have a bad credit score and don’t have any other means of financing. Borrowers may be forced to take another cash advance immediately after taking the first one because of high costs and the regular MCA repayments. Thereby, immensely affecting the cash flow of a small business.
  • Since merchant cash advances are organized as commercial transactions as opposed to loans, they are not governed by federal regulations. They are regulated by the Uniform Commercial Code in every state and not the banking laws.

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Finance

How to get a merchant cash advance?

A merchant cash advance is the best option when a small business requires a little capital urgently. It is most suitable for firms that largely obtain revenue from credit and debit card sales. These companies include restaurants, cafes and retail outlets. A merchant cash advance is technically a commercial transaction as opposed to a loan, and a borrower receives a lump sum amount in exchange for a percentage of their sales.

Repayments of merchant cash advances can are made in two ways. First, you can receive a particular sum of advance in exchange for a percentage of your future credit card sales. Second, you can get a lump sum amount that has to be repaid by transferring a fixed daily or through weekly debit from your bank account to the MCA provider. A MCA must be considered by a small business only when it needs immediate access to capital. For instance, when it wants to purchase the stock at a discounted price or invest in machinery. It can also be a convenient option for businesses that do most of its transactions via credit cards. However, businesses must express caution while taking a MCA as it can quickly put them through a vicious cycle of borrowing. If you are a small business, looking to get a MCA, here’s how you can apply.

Step 1: Fill the MCA application with your business tax ID, Social Security number, and other vital information.

Step 2: Provide documentations such as monthly bank statements, credit card receipts, proof of citizenship and a copy of the lease for your business premises.

Step 3: Get the approval for the MCA within 24 hours.

Step 4: Set up the credit card processing.

Step 5: Make the final agreement on the details of the merchant cash advance.

Step 6: Once the deal is finalized, the advance amount will be deposited into your account. The repayment through the merchant account will activate almost immediately. Typically, it takes about two days for the advance to be deposited into the business’ account after approval has been made.

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Finance

2 things to consider while getting a payday loan

Payday loans are short-term loans that help you get through an emergency financial requirement. They ensure that you remain cash rich even in the event of an unexpected occurrence or expenditure. According to the Consumer Federation of America, payday loan agreements are permissible in 41 states. Although there are several disadvantages associated with taking payday loans, several individuals resort to it in times of need. Before you take a payday loan, exercise caution and keep the following aspects in mind.

Why do you need a payday loan?

Payday loans come with exorbitant interest rates. There have been instances when borrowers have paid up to 400% interest on a two-week payday loan amounting to $100. Such high-interest rates can inevitably put the borrowers in the trap of repeated borrowing. If you are taking payday loans repeatedly, to take cover from the reduced cash flow, then there are high chances that you will incur consumer debts. On the other hand, if you are taking a payday loan cash advance for a one-off expenditure, you will not get yourself into more financial trouble.

Before taking a payday loan, determine what you need it for. Do you need it to for a one-off purchase, an unexpected expenditure or for gaining short-term relief from a financial crisis? Or do you need them for settling monthly bills and covering living expenses? There is a high risk of defaulting and incurring bad debts if you choose to take payday loans for the latter purpose.

Can you afford the interest rates levied on payday loans?

Several payday lenders create traps by charging extortionate interest rates. Although, several states have introduced a cap on the loan amounts and the amount repayable, there are no specific guidelines regulating payday loans. As a result, the interest rates can fluctuate inconsistently. It is therefore pertinent that you give special attention to the loan amount and the amount that is to be repaid before signing the loan agreement.

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Finance

Know the advantages and disadvantages of payday loans

Payday loans are usually sought after by people who have low credit worthiness and need emergency cash. It offers a convenient and quick means to borrow a small amount of money for a short period. Any individual above the age of eighteen, receiving a steady salary with a checking account is eligible to get a payday loan. If you are considering taking this short-term personal loan, it is vital that you are aware of the advantages and disadvantages that come with it. Read below to know more about the pros and cons of taking a payday loan.

Advantages of Payday loans

Payday loans are a convenient and easy source of cash in case of an emergency. For instance, if you have fallen short of your rent money or you need to do some house repairs, payday loans are a go-to-option because of their ease of availability.

A payday loan cash advance does not require you to undergo a credit check to be eligible. Irrespective of your credit ratings, you can avail a payday loan with ease.

Payday loans, if taken occasionally, don’t pose a detrimental effect on your credit score. Even if you take a payday loan to get through a difficult financial situation, it will not cast a negative mark on your credit worthiness.

Disadvantages of payday loans

Since payday loans are short term loans and are given out with no credit checks, they tend to charge higher interest rates.

Payday loans are given out only for a short period. You will have to look at other options if you need a long term loan with no credit check.

Payday loan amounts are generally small. They range from $100 to $2000 and are suitable only if you require emergency cash.

Payday loans may not be given to people who are unemployed, not receiving a steady income or are receiving social assistance. Payday loan companies give out loans only to employed individuals with a checking account.

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