Finance Archive

Can You Get a Loan Even with Bad Credit?

loan flashed on a laptopAbout 30% of Americans have bad credit. It can be a tough situation since it reduces their access to loans. But there are options available, including applying for Utah title loans. This FAQ can help.

What’s bad credit?

Bad credit is a figure that represents your failure in meeting your financial obligations. It may involve late repayments, defaults, and even bankruptcies.

This figure is called a score, and it can differ among lenders. But there’s a consensus. They deem the score of 850 as perfect. It’s also incredibly hard to achieve. The more achievable scores are at least 700.

What’s the effect of bad credit on loans?

A credit score is only one of the many requirements when you apply for a loan from a lender. Its impact, though, is significant. Again, remember that the score is a reflection of how you handle your finances.

Lenders have two objectives when they approve loans. One is to generate an income, and that’s through interest (and other charges including penalties). The other is to recoup the money they gave you. In other words, it’s not enough you can afford to pay the loan. You must be diligent enough to repay it.

A bad credit score, therefore, sends a bad signal to the lenders. It informs them either you don’t have the money to sustain the repayments or you’re an irresponsible borrower.

How can you get a bad credit loan?

Just because you have bad credit doesn’t mean you can no longer access loans. For example, you can apply for Utah title loans. It’s a type of loan you can apply against your vehicle title. This vehicle can be a car, boat, or motorcycle. When you apply for such debt, you give the title to the lender temporarily. You can get it back once you’ve repaid the loan.

This loan offers a couple of benefits. For one, you can apply even when you have bad credit. The most important thing is you have a legitimate vehicle title. Second, you can keep your vehicle. Third, and perhaps the most essential of all, you can use it to help rebuild your credit.

Having access to loans is important. Bad credit should not stop you from getting one. Nevertheless, work on increasing your credit score. This way, you can qualify for other types of debt.

Increase Your Chances of Qualifying for a Mortgage

man wearing a suit sitting in a table showing a mortgage loan contractIf you’re having a hard time qualifying for a mortgage, chances are your income is not much or are carrying too much debt. Such developments make lenders skeptical about your ability to meet your monthly obligations. Luckily, you can overcome these issues by making a few changes in your life.

Cutback on major expenses

In most cases, change is unwelcome. However, if making the change increases the chances of getting the best mortgage rates in Salt Lake City, then it’s worthwhile. For you to achieve great things in your life, American Loans noted that you need to venture out of your comfort zone.

For instance, moving to a cheaper neighborhood might be uncomfortable, but it’s a worthwhile goal. It enables you to save money on rent each month to let you build a sizeable home deposit. Additionally, the savings can let you build an emergency fund that can see you through the difficult times.

Look for a second income

Here’s another good example: Mercy was a middle-level manager in a prestigious tech company. Although she was making decent wages, she was also drowning in debt. After reconciling with her financial situation, she resolved to get a second job. Her second job entailed freelancing at home. She hated every moment of it, but she still put in the hours diligently.

Within a year, she was not only debt free but was on her way to clear the mortgage on her house. The lesson here is that regardless of the source, an extra income can do wonders for your finances. Rather than take a low-paying job that comes your way, leverage the skills that you might have. Thanks to the growing freelance and gig economy models, you can pull in decent wages for your skillset.

The key to successful owning a home is streamlining your finances. In most cases, you either must cut down on your major expenses or look for an extra source of income.

Pointers for Getting a Low Interest Rate on Your Personal Loan

LoanThe need for quick cash comes at the worst of times. There is, however, a perfect solution for you when in need of quick cash. Personal loans are the best choice since they are multipurpose, have minimal documentation, and are available within a short period.

One of the key considerations when getting a personal loan in Salt Lake City is its interest rate. Even with a stellar credit record and seemingly reasonable rate, there are other extra steps that will further lower your loan rate. Here are some:

Choose a short loan term

Personal loans with short repayment periods typically have a lower interest rate compared to those with an extended repayment period. This is because your lender recoups the money within a short period and hence the debt is less risky. If you can afford to make high monthly payments and finish you loan repayment early, this is the best choice for a low interest rate.

Opt for secured loans

A secured personal loan is one guaranteed using the borrower’s assets. Since the lender has a fallback plan if the borrower defaults payments, then he or she gives you a low interest rate compared to unsecured loans. A secured loan is also easily accessible for borrowers with poor credit rating.

Enroll for loan rate discounts programs

Check if your lender has any loan rate discount offers for those who sign up for automatic debit payments. Some lenders might not include this in the rates they advertise so ensure you ask if there are such programs. Though it might look small, the discount offered will go a long way in reducing your monthly repayments.

When shopping for a loan, weigh the various options vis-a-vis your current circumstance. Comparing loan products online gives you a convenient chance to view a broad range of offers. With the knowledge, you can choose the best lender for you.

Top 3 Benefits of Getting Accounts Receivable Financing

Man checking his financesIt’s always a tough decision pulling out a loan, especially when you’re struggling to grow your business in a very competitive environment. When you need a little bit of extra money, however, you really have no choice but to go for it.

Fortunately, there are many options to go for, and among the most beneficial is accounts receivable financing. Here are three of the biggest benefits of this loan option:

There’s no need for collateral.

One of the most difficult things about pulling out a traditional loan is that it’s challenging to find the right kind of collateral. If you set a larger item or piece of property as collateral, you might get a larger loan amount, but you also risk a whole lot more. With accounts receivable, you don’t need bigger collateral, as it is entirely based on existing, unsold inventory.

You keep your business.

Because you don’t risk collateral with accounts receivable financing, you ultimately retain control of your business no matter what happens. All you effectively lose is inventory that you haven’t been able to sell, anyway. The financing company assumes responsibility and ownership of this stock and sells them off to recoup what they lent you. Because of this arrangement, there’s no risk at all to your business.

It’s a quick way to get cash.

Finally, it’s a very quick way to get cash fast. Naturally, the expediency of this arrangement depends on the financing company that you approach. The best companies, however, have faster turnover rates because they have equally fast appraisal times as well. This ultimately becomes faster as you build a relationship with your financier.

Provided you are careful and discerning, this can be a powerfully lucrative means of getting money for your business quickly.

4 Ways Millennials Can Invest Their Money Wisely

A piggy bankMillennials are known for their spontaneity and passion. These attitudes are also what they are when it comes to investing their hard-earned money. With the ever-changing economy, it is important for millennials to know that the investment they are making may benefit their financial standing.

Here are some things millennials should remember when making investments:

Hire an estate agent when investing money

If millennials want to get the best property, they should hire an estate agent. Such professionals have vast experience and knowledge when it comes to real estate investments. For example, reputable estate agents in Penge may recommend the best properties and can help speed up the buying process.

Make a good investment plan

Sit down and plan how you are going to invest. Set your goals and figure out how you are going to achieve them. In addition, anticipate the possible challenges that you will be facing and plan your response or possible solutions.

Invest in good education

If there is something that everyone can agree on, it is that education is the most valuable investment one can ever have. Finishing a college degree is a ticket to employment and business opportunities, and this will bring in a lot of money to the family.

Save for your retirement

You will eventually retire when you get older. Experts recommend saving money for retirement as early as your 20s so that you will have a comfortable life as an elderly.

Investing well is not limited to an older generation. Millennials can make good investments as well. All they have to do is learn about the types of investments they are making and be careful to avoid the pitfalls.

Jewelry Care: Protect Your Investments

jewelry in a boxYou may not need to hire armed guards to protect your jewelry like how Kim Kardashian reportedly have to do, but that doesn’t mean you should not be careful with them. They are, after all, an investment — something you can pass on to your children as heirlooms.

There are several things you can do to keep your jewelry in the best condition for a long time:

Buy Only Quality Jewelry

There’s no use trying to protect low-quality jewelry and imitation stones. If you want your accessories to last a long time, start with pieces that are actually of good quality. Jewelers in Salt Lake City offer various designs for engagement rings, wedding rings, pendants, and necklaces, so there’s no excuse for you to settle for something that’s going to look good today, but will easily tarnish in a year or two.

Clean Before Storage

You already bought the best jewelry pieces your money can buy, and you’re ready to wear them for special occasions. After those occasions, you’ll want to keep them in a safe location — but first, clean them. Use fabric and cleaning solutions designed for the kind of material your jewelry is made of, to avoid accidentally scratching the surface. You wouldn’t want to store your diamonds with some dirt on them if you want to preserve their beauty.

Store Properly

After cleaning each piece, it’s time to finally store them. Now, if you’re planning to invest in different kinds of jewelry, you should start reading up on the hardness levels of the materials you choose. Diamond is up there as one of the hardest minerals, which means storing it with the rest of your jewelry may scratch them. Storing diamonds in a separate pouch should do. After you’ve separated the jewelry to preserve the condition of each one, it’s time to look for a storage space. If you’ve got a safe, you can store your jewelry there. If you don’t have any, a secure yet unpredictable location will have to do.

Caring for jewelry starts with choosing the right pieces to purchase. Then, be informed of proper cleaning and storage to prolong their lifespan.