Jul 17, 2018

6 Dos and Don'ts of Shopping for a Personal Loan

6 Dos and Don'ts of Shopping for a Personal Loan

Your monthly salary typically covers three types of expenses: fixed, variable, and discretionary.  If your monthly earnings can’t pay for all these and some other unexpected expenses, you will need to look for an additional source of funding.

A personal loan can help you pay for all these expenses if you are having a hard time doing so. It can also serve as a cash cushion and as an emergency fund which you can dip into whenever you need to.

Finding the Right Personal Loan

To get a loan that will meet your needs and payment capability, you need to shop around for the best product first.

Here are some dos and don'ts of shopping around for your first personal loan:

Dos

1. Check your credit score

Before you begin your search for the best personal loan, check your credit score first. There are various online tools you can use to be able to do this. If your score is a bit low, certain websites can give you tips on how to improve it.

Make sure you complete this step before you start shopping around for a personal loan provider. Keep in mind that if you have a high score, you will have better chances of getting great deals and lower interest rates.

In case your score is low, consider applying for a loan later until your credit score has improved. A good start is to pay off your credit card balances first.

2. Inquire first at banks and financial institutions you know

Chances are, you already have an account with one or two banks. You can start your search for a suitable product by finding out the different types of personal loans your bank offers.

Ask your bank representative what loan amount you can get and if your credit score can qualify you for a low-interest rate. Check the terms and conditions as well.

You can also ask your credit card provider if they have some personal loan offers, too. You may even be offered the chance to consolidate your credit card debt with the loan which is an option worth considering.

3. Be cautious when shopping for personal loans online

Going online is the easiest and most convenient way to start searching for a good loan product. However, you have to know which banks and lenders offer legitimate deals.

Some online lenders, for instance, target people with poor credit by promising them loans without checking their credit history. Avoid these sites since all loan applicants will undergo a credit check. They may even charge big fees or request loan payments in advance.

Don’ts

1. Apply for personal loans from several different lenders at the same time
When shopping for a personal loan, simply shop. Study the different offers and ask the different providers for additional details. However, do not immediately apply for products that you find interesting.

When you submit your loan application online or at the bank, the lender will immediately check your credit report and history. Your file receives a mark whenever this check is carried out. If you get too many marks from your multiple loan applications, your credit score will go down further. 

Because of this, lenders will see you as more of a credit risk. Your loan application will likely not be approved or you will be offered a higher interest rate. 

2. Get a loan without knowing how much you want to borrow and the right payment term

If you have a good credit score, you can apply for a high loan amount which the best banks will be happy to offer. However, you don’t have to get the highest amount possible.

You need to determine a suitable amount that will cover your current and possible needs in the future. In addition, it should be something that you won’t have difficulties paying for every month.

It is also best to look beyond monthly payment amounts if you’re still shopping around. It is often better to get a two-year loan with a higher monthly payment than a five-year loan with a smaller monthly fee. This is because the longer you take to repay the money you borrowed, the more a loan will cost you in interests overall.

3. Ignore accompanying fees and the loan product fine print

Once you have a list of the best loan products you can qualify for, make sure you know all the fees that come with each.

Take the time look at and calculate the following:

● Annual percentage rate (APR)
● Loan origination fee
● Interest accrued over time
● Early repayment charge

Lastly, before submitting your application, read the document properly. Ensure you understand all the terms and conditions, and that they match the ones that the lender advertised and had been discussed with you by the representative.

If you are unsure about anything, get in touch with a representative of the bank or lending institution to get additional information or a clear explanation.

A personal loan can help you out during your time of need. But do remember that you will have to repay the loan and, as such, you have to be careful in choosing a loan product. You have to be 100% sure that you will get an amount you are comfortable with and won’t have difficulties making monthly payments for in the next few years.

Jul 3, 2018

3 Things You Need to Know Before You Finance a New Home

3 Things You Need to Know Before You Finance a New Home
Financing a home may seem like a daunting prospect when we think about all the paperwork that is sure to be involved. The truth is that while the process is undoubtedly thorough, it need not be intimidating at all. Preparation and readiness can help remove most anxiety about home financing.

Here are three things you should know before you finance a new home

1. Personal finance homework saves time and money

Gather your credit information. All lenders will look at your various documents – savings, taxation, outstanding loans – and decide if you are creditworthy. Make sure all your documents are to hand. Also, ensure that you are up-to-date on payments with any loans you may have including credit card bills.

Next, work out the cost of the home purchase process. The purchase price is one thing but work out all the other expenses as well. Interior work, taxes, stamp duty, repairs, additions, remodeling, furnishing, moving charges, exterior work, all these need to factor into your total cost of home ownership. Once you know this, you have a right ballpark for how much home finance is required.

After that, see how much you have in savings for the deposit. Is it enough to get you financing? How much more do you need? How much time will that take?

One outcome of this is that you might reevaluate the type of home and the location of the house that you wish to buy. This is not a bad thing. Buying a home is not something you have to do today. If you are not prepared, it is better to wait before entering into such a significant financial commitment.

2. Evaluate various home finance options

Work out which home buyer financial aid program that suits you best. In the UK, for example, you can get home buying assistance from the Help to Buy plan wherein the government loans up to 40% (in London) of the property price at a low-interest rate. If you have saved for the 5% deposit, you need home finance for the remainder only. You can even choose the Starter Homes scheme and get 20% discount on the property price after paying the deposit.

When approaching banks/lenders for the housing mortgage, make time to understand what they are offering entirely. Loans have to be repaid over several years. It is a commitment you cannot back out of without losing your home. Get professional help, if need be, to understand which loan scheme is most manageable for your financial status as on date and the change you expect in it in future.

3. Professional help from a trusted real estate agent can save you from heartache

Buying a new house is not just a matter of saving for the deposit, taking a loan and making the purchase. Buying a house involves contracts, negotiations, evaluations, inspections, appraisals, preparation of documents, dealing with local government authorities, ensuring that sellers give the home in the promised condition.

A real estate agent can help you navigate all stages from viewing the house to evaluating finances to getting government aid to getting loans to dealing with contractors. Remember, a seller’s representative does not have to protect your interests since you are the buyer. Buyers are best served when they employ their estate agents. To find a real estate agent that you can trust, a search on the internet will give you a list of real estate agencies.

Find out what you can about the performance of the agencies and their estate agents. You can even give each a call or meet with representatives and choose one with whom you feel comfortable. Remember that it will be a long-term association. Find a real estate agent whom you like and whom you find competent and professional.

A professional real estate agent will keep open lines of communication and will get back to you as quickly as possible about all queries. They will also not dismiss any question as trivial.

A real estate agent is invaluable even before you decide on a house. Take the help of your real estate agent to work out your finances, to understand what is the best home for you and how to get a house that is suitable not just for your life today but the house for your future life.

An estate agent will also help you understand in detail about the available financing options. Financing a home is a multi-year commitment; make a decision using professional help to protect your financial interests.

Financing a new home can seem like a paperwork-filled process. A few simple preliminary steps like understanding your personal finance and evaluating various home finance options can ease the burden by quite a bit. Asking for professional help from real estate agents makes the process even more comfortable.

May 23, 2018

Secure Your Child’s Future with the Best Buying Tips

Child Future with the Best Buying Tips
Child insurance plans are specially designed for growing child so as to meet their increasing costs of education and other financial requirements. It provides risk cover related to the life of child throughout the policy term and during extended term, that is seven years after the expiry of the policy term. As the education cost is growing rapidly, it is essential to have a child insurance plan for the better future of your child. This is the plan that will help you provide your child the best education and ensures the cash flows even at the crucial stage of your child’s life.

May 21, 2018

Best Evergreen Strategies That Drive Successful Entrepreneurship

Business Strategies for Successful Entrepreneurship 2018

Business can never be stagnant, especially when you have so much going on around the market. It is also quite easy for an entrepreneur to get overwhelmed with the challenges revolving around their selected industry. Not one industry is spared from the flexibility! However, to get accustomed to the changes, you have to cool it down and stay focused. That’s the only key towards success. There are some selected and much-needed strategies for entrepreneurship, which might help them to get going with the challenges that might hit their way. These strategies will help them to stay prepared beforehand.

May 15, 2018

5 financial preparation tips for buying a new house in 2018

Tips for buying a new house in 2018
Buying a house is one of the biggest purchases that you will make in your life. Once you decide to buy a house, the next thing is to be well prepared financially. The purchase process seems simple: 1. Like house 2. Put in an offer 3. Offer accepted 4. House owned. In truth, the process of “How to buy a home” involves quite the details. Specifically revolving around finances.

Here are 5 major financial preparation tips to note when buying a house in 2018.

1. Save for the deposit

The minimum requirement for a deposit is 5% of the property value. The higher the deposit you set aside, the better the deal you get when borrowing money from lenders like banks. Home buying tip number 1 is, save for the deposit. Start now.

One of the best ways, for those under 40, is the Lifetime ISA or LISA account. £4,000 a year and when you buy your first home, the government will add a 25% bonus. Which means you have £5,000 (before interest) to use as the deposit.

If you are 40 and above or don’t want to wait for the minimum 12 months that you need to have a LISA, you can use the Help to Buy ISA. You can apply for the government bonus once you have saved £1,600. For full benefit though, even Help to Buy ISA is effective only in the long term.

Understand your requirement and choose accordingly.

May 29, 2017

What Is A Trust?

What Is A Trust? Tax ID
Trusts were traditionally businesses with significant market power. However, this term has gained several new meanings in modern economics. Here is what you need to know:

A Trust Explanation: A trust for a business’s purposes is a legal entity, which can be a company or person that can manage, and administer another company’s assets. The trust company acts as an agent for the other company within the guidelines that are set by both parties. Trusts also exist for individual purposes. For instance, if a minor is set to inherit an estate, he or she would be overseen by a trust- who in this case can be a group or individual who has been given specific instructions on what to do, and not do, while acting in the minor’s best interest.

What do Trusts Actually do?
In addition to simply holding assets, a Trust can help with the investment and asset management. Working with a Trust can be very helpful if you are growing a small business and are looking to break into the larger market.

May 10, 2016

5 Immediate Steps to follow if you have had a Car accident

Are you looking for auto insurance?
It is extremely stressful if you are involved in a car crash. Whether you have caused it or not, is not the question of the moment. If you are involved in a car accident, you should first follow a basic set of rules to ensure that you are in the all-clear, physically as well as mentally. Many people start worrying about insurance the moment they are involved in an accident. Whether you are looking for auto insurance in Garden Grove or Orange County, it doesn’t matter. What matter is that all the parties involved in the accident are fine.

Those who are in such high-stress situations are normally confused and do not know what to do. If you are unsure, always call 911 (in USA) to the scene and seek the assistance you need. Do not try to handle the situation on your own as you might be in shock and will not realize the dearth of the situation.