Credit card borrowers have a few watershed moments on the path to significant credit card debt. The first sign of impending trouble is the month when you don't pay one of your balances in full. Then comes the month when you can't make any payments in full. Finally, the month arrives when you quit trying to pay extra and just resign yourself to making minimums.
The impact on your finances can be dramatic. We're often told to consider the real cost of buying on credit and shown how much interest you'll pay on that purchase. But the assumption that you eventually pay off the credit card debt is too simplistic for people with chronic credit card debt. Because you never pay off the debt and keep revolving it, the cost is essentially infinite.
In this situation, continuing down a path of credit card spending when you have debt is flirting with danger. You can't use credit cards as a way out of the problem if credit card debt is your problem. To use an old clich: if you want to get out of the credit card pit, quit digging.
Would you play a game if you knew the cards were stacked against you? Probably not. But in the credit game, the cards are definitely stacked against you. Here are a few examples:
You pay more for items when you buy with credit. Studies by Dunn & Bradstreet, MIT, and USA Technologies show people will spend 15-100% more for an item with credit.
You buy more per shopping event. McDonalds found that the average order increased by 55% when they started accepting credit.
By splitting the purchasing and payment events, credit card companies and merchants have stacked the cards against you in ways that are nearly impossible to control. They know you'll buy more because you don't have the same visual cues that you have when you pay with cash or debit. The only way you can win is not to play.
So how can you stop? Here are a few tried-and-true techniques that have worked for others:
Destroy all of your cards but the lowest APR card. The safest way to not use them is to simply destroy them. Cut them up or burn them. Use your creativity and vent your frustration on plastic.
Put your lowest-APR card in a safe place for use in emergencies:
o Put it on ice! Freeze your card in a bowl of ice and leave them in the freezer.
o Put it in a safe deposit box. Out of sight, out of mind.
o Put it in a plastic bag or a can and bury it in the ground.
o Give it to someone a family member or friend for safekeeping. Chances are the undesirable experience of explaining to them why you want your cards back will overrule your urge to spend.
o Wrap it in duct tape to make it hard to use in a store.
QuickStart Action:
Come to terms with the real cost of spending and recognize that the costs of relying on credit cards outweighs the convenience, rewards, or any other argument in favor.
Set up a separate checking or prepaid account with a debit card for spending. Fund this from your paycheck or primary checking account or limit your discretionary spending to this account.
Destroy all your cards but one
Put one card away for emergencies
Define what an emergency is for you. Deciding, in advance, what is an emergency and what is not can keep you from reaching for the plastic when the time comes.
Friday, August 31, 2012
Wednesday, August 29, 2012
What Type Of Loan Is An Auto-loan?
There are essentially two types of loans, loans based around a predefined number of monthly payments and those in which repayment is scheduled around some other factor (such as revenue, profits, payment in full, etc). An auto-loan is typically a loan that is based around a predetermined number of payments. These loans are referred to as installment loans.
So, what makes one auto-loan different from the next? How do you decide what kind you want? You may have noticed that often a loan with fewer payments also has a lower interest rate. So perhaps a 36 month loan will cost 5.5% interest per year, whereas a 60 month loan may cost 6%. Why the difference in interest rate and how does it effect you? The reason shorter loans have lower interest is because you are paying them back faster. The quicker the bank is repaid the less likely you are to default on the loan, and if you do default the higher the percentage of payments you've already made.
They try to encourage you to pay back the amount owed faster by offering a slightly lower interest rate. But that is not the only thing that saves you money. If the total amount owed is paid back more quickly, there is less interest applied to each payment. The less interest you pay the less you pay in total for the loan. This can save you thousands of dollars over borrowing for say 60 months instead of 36. Definitely something you should consider next time you consider buying a vehicle.
So, what makes one auto-loan different from the next? How do you decide what kind you want? You may have noticed that often a loan with fewer payments also has a lower interest rate. So perhaps a 36 month loan will cost 5.5% interest per year, whereas a 60 month loan may cost 6%. Why the difference in interest rate and how does it effect you? The reason shorter loans have lower interest is because you are paying them back faster. The quicker the bank is repaid the less likely you are to default on the loan, and if you do default the higher the percentage of payments you've already made.
They try to encourage you to pay back the amount owed faster by offering a slightly lower interest rate. But that is not the only thing that saves you money. If the total amount owed is paid back more quickly, there is less interest applied to each payment. The less interest you pay the less you pay in total for the loan. This can save you thousands of dollars over borrowing for say 60 months instead of 36. Definitely something you should consider next time you consider buying a vehicle.
Friday, August 24, 2012
Capital One Buys Orchard Bank and HSBC Credit Cards - Orchard Bank Future In Doubt
In recent news Capital One Bank purchased the Orchard Bank Credit Card and all of the US credit cards issued by HSBC bank. The details and exact amounts of this purchase are currently unclear but we are confident that Capital One paid a hefty price.
Orchard bank has a trusted leader and brand in the bad credit credit card market for years. Additionally they have a huge customer base and many current card holders. It is arguably one of the biggest sub prime lending acquisitions.
We believe the acquisition of the Orchard Bank Credit Card is a subsequent result of the mortgage collapse and banking crisis in our country. Just like many local banks were forced to merge with larger banks and thus consolidated our choices of banks to use, we believe the credit card industry is going through the same process.
It is rumored that Capital One is actually going to shut down the Orchard Bank Credit Card. We believe that Capital One has made an aggressive attempt to target individuals with a less-than-perfect credit rating by rolling out a prepaid credit card, secured credit card, and an unsecured credit card for fair credit. This way we think Capital One intends to shrink the market and their brand will fill the void.
One of the most unique features about the Orchard Bank Credit Card was its application process. When you provided your information and your application was processed Orchard Bank would return to you and offer you all the credit cards that you qualified for which included: an unsecured MasterCard, a secured MasterCard, prepaid MasterCard… And then you would choose which credit card was right for your needs.
It certainly appears that Capital One could provide this option to applicants, we hope they do because we have heard many consumers say they appreciate this upfront process. Another concern we have is what alternatives will be left for consumers as the orchard bank secured credit card was one of the most competitive price and best secured credit card offers on the market.
It would report to all three major credit bureaus, charged you a 9.9% APR, and an annual fee of . This compared to unsecured credit cards before the mortgage collapse was a very low priced credit card that would still give you an opportunity to build positive credit. However today we have seen some partially secured credit card offers that we would not recommend to our worst enemies!
These partially secured credit cards require an upfront deposit, the most popular offer we have seen charges an outrageous 36% APR, roughly in upfront fees, and then another in annual fees. Thus, it will be interesting to see what comes of Capital One purchasing the HSBC Orchard Bank Credit Card and if there will continue to be competitively priced secured bad credit card offers available.
As of today and according to both websites it doesn't appear that Orchard Bank or HSBC Credit Cards will continue to be offered. With that said we are by no means executives with Capital One and have no way of knowing for sure, one way or another. Currently at the Orchard Bank website you can still apply for a credit card but from insider information, we have heard Orchard bank is going to stop accepting applications around the end of May.
Orchard bank has a trusted leader and brand in the bad credit credit card market for years. Additionally they have a huge customer base and many current card holders. It is arguably one of the biggest sub prime lending acquisitions.
We believe the acquisition of the Orchard Bank Credit Card is a subsequent result of the mortgage collapse and banking crisis in our country. Just like many local banks were forced to merge with larger banks and thus consolidated our choices of banks to use, we believe the credit card industry is going through the same process.
It is rumored that Capital One is actually going to shut down the Orchard Bank Credit Card. We believe that Capital One has made an aggressive attempt to target individuals with a less-than-perfect credit rating by rolling out a prepaid credit card, secured credit card, and an unsecured credit card for fair credit. This way we think Capital One intends to shrink the market and their brand will fill the void.
One of the most unique features about the Orchard Bank Credit Card was its application process. When you provided your information and your application was processed Orchard Bank would return to you and offer you all the credit cards that you qualified for which included: an unsecured MasterCard, a secured MasterCard, prepaid MasterCard… And then you would choose which credit card was right for your needs.
It certainly appears that Capital One could provide this option to applicants, we hope they do because we have heard many consumers say they appreciate this upfront process. Another concern we have is what alternatives will be left for consumers as the orchard bank secured credit card was one of the most competitive price and best secured credit card offers on the market.
It would report to all three major credit bureaus, charged you a 9.9% APR, and an annual fee of . This compared to unsecured credit cards before the mortgage collapse was a very low priced credit card that would still give you an opportunity to build positive credit. However today we have seen some partially secured credit card offers that we would not recommend to our worst enemies!
These partially secured credit cards require an upfront deposit, the most popular offer we have seen charges an outrageous 36% APR, roughly in upfront fees, and then another in annual fees. Thus, it will be interesting to see what comes of Capital One purchasing the HSBC Orchard Bank Credit Card and if there will continue to be competitively priced secured bad credit card offers available.
As of today and according to both websites it doesn't appear that Orchard Bank or HSBC Credit Cards will continue to be offered. With that said we are by no means executives with Capital One and have no way of knowing for sure, one way or another. Currently at the Orchard Bank website you can still apply for a credit card but from insider information, we have heard Orchard bank is going to stop accepting applications around the end of May.
Wednesday, August 22, 2012
Checking Out A Merchant Cash Advance Agent
A Merchant Cash advance is a little utilized financial method that gives necessary working capital to business owners via their credit card processor. business owners realize that they have this option and go directly to family or a bank when they need money to pay for expansions, repairs or upgrades of their stock and equipment. If you are a business in need of money immediately, you should look into factoring as well.
The thought behind factoring is a bit like selling futures. You, as the business owner, agree to sell future credit card revenues at a lesser price to the factoring company. The money is received now in exchange for anticipated sales in the next several months.
These agreements are usually for the near term, rarely more than 1 year, and are a great way for a business with a verifiable credit card sales track record to obtain necessary money.
Unlike a conventional loan, where the repayment schedule is set for the life of the loan, a factoring arrangement takes into consideration the truth that in almost every business there are excellent months and bad ones. Your payment is directly tied to your credit card sales, as a portion, not a set fee.
If you have chosen to pay a ten percent daily capture and you receive ,000 one month, your payment that month comes out to 800 dollars. In following month you may take in 10,000 dollars and pay ,000. This flexibility is a great option for a growing company.
An extra benefit of a merchant cash advance is the speed in which the cash turns up in your hand. While a bank may take several months of decision making and tell you how you use the cash when and if they give it to you, with a factoring agreement, you will have the money in about a few working days, and you can apply it to whatever you see fit.
The thought behind factoring is a bit like selling futures. You, as the business owner, agree to sell future credit card revenues at a lesser price to the factoring company. The money is received now in exchange for anticipated sales in the next several months.
These agreements are usually for the near term, rarely more than 1 year, and are a great way for a business with a verifiable credit card sales track record to obtain necessary money.
Unlike a conventional loan, where the repayment schedule is set for the life of the loan, a factoring arrangement takes into consideration the truth that in almost every business there are excellent months and bad ones. Your payment is directly tied to your credit card sales, as a portion, not a set fee.
If you have chosen to pay a ten percent daily capture and you receive ,000 one month, your payment that month comes out to 800 dollars. In following month you may take in 10,000 dollars and pay ,000. This flexibility is a great option for a growing company.
An extra benefit of a merchant cash advance is the speed in which the cash turns up in your hand. While a bank may take several months of decision making and tell you how you use the cash when and if they give it to you, with a factoring agreement, you will have the money in about a few working days, and you can apply it to whatever you see fit.
Tuesday, August 21, 2012
Payday Loans VS Logbook Loans
The two fairly new sorts of credit, the pay day and logbook loans available nowadays give a large number of individuals the opportunity to get a fast cash loan, with out the credit checks.. Which means that these loan varieties are a possibility for those who might not have had the opportunity to acquire other 'high street' loans. The amount you could borrow with a pay day loan depends upon the amount you are paid, whilst logbook loans are guaranteed against the car or another vehicle.
Both types of loan work in various ways though and possess different benefits and drawbacks. This document will look into either side of the story to assist you to work out which choice is right for you.
Advantages Of Logbook Loans
One of the biggest benefits of selecting a logbook loan, is the fact that you're able to sign up for larger amounts of money. It all depends on how much the car may be worth, but you could potentially get as much as ?50,000, which could pay for greater costs like a deposit. This is obviously a lot bigger than you may have the capacity to get with a payday loan - which is normally up to around ?1250.
Logbook Loans - Disadvantages
The main drawback to getting a logbook loan, is that you must be the owner of car. This is because the loan is secured on your vehicle. This is also an additional downside as there is the risk that your car could be taken if your loan isn't paid back. When securing the cash against your vehicle, you will also need to hand over your logbook until it is repaid. You'll still have the capacity to drive the car around normally though.
Advantages Of Payday Loans
The greatest benefit of obtaining an online payday loan is just how fast and simple these are to get. The only needs to qualify for a payday loan is that you have to be over 18, have an UK bank account (with debit card) and be employed earning over ?500 a month. In comparison with the logbook loan, you will not have to be a vehicle owner to get one. Also, these loans are paid back faster since they are typically only borrowed for a month (and paid back on your next pay day). Because of this they are better for temporary financial troubles.
Pay Day Loans - Disadvantages
These financing options are not beneficial if you need a large amount of cash as you can only get small loans. Another disadvantage is that men and women can be deterred by the high interest rates of APR connected with payday loans. In this case, it is usually advisable to focus on the repayments charts of the loan provider, to determine the amount you'll have to pay off.
So, Which Is Best?
Both of these loans will appeal to different selection of people, depending on their situation. If you are the owner of a car or other vehicle and you will like to get a larger amount of cash, then a logbook loan would be best. If you do not own a car and/or you would like use of a smaller quick loan, then payday would be better for your circumstances.
Whatever loan choice you go for, it is wise to make certain you have the cash to make the repayments. It's also advisable to research prices to make sure that you obtain the very best deals for ones situation.
Both types of loan work in various ways though and possess different benefits and drawbacks. This document will look into either side of the story to assist you to work out which choice is right for you.
Advantages Of Logbook Loans
One of the biggest benefits of selecting a logbook loan, is the fact that you're able to sign up for larger amounts of money. It all depends on how much the car may be worth, but you could potentially get as much as ?50,000, which could pay for greater costs like a deposit. This is obviously a lot bigger than you may have the capacity to get with a payday loan - which is normally up to around ?1250.
Logbook Loans - Disadvantages
The main drawback to getting a logbook loan, is that you must be the owner of car. This is because the loan is secured on your vehicle. This is also an additional downside as there is the risk that your car could be taken if your loan isn't paid back. When securing the cash against your vehicle, you will also need to hand over your logbook until it is repaid. You'll still have the capacity to drive the car around normally though.
Advantages Of Payday Loans
The greatest benefit of obtaining an online payday loan is just how fast and simple these are to get. The only needs to qualify for a payday loan is that you have to be over 18, have an UK bank account (with debit card) and be employed earning over ?500 a month. In comparison with the logbook loan, you will not have to be a vehicle owner to get one. Also, these loans are paid back faster since they are typically only borrowed for a month (and paid back on your next pay day). Because of this they are better for temporary financial troubles.
Pay Day Loans - Disadvantages
These financing options are not beneficial if you need a large amount of cash as you can only get small loans. Another disadvantage is that men and women can be deterred by the high interest rates of APR connected with payday loans. In this case, it is usually advisable to focus on the repayments charts of the loan provider, to determine the amount you'll have to pay off.
So, Which Is Best?
Both of these loans will appeal to different selection of people, depending on their situation. If you are the owner of a car or other vehicle and you will like to get a larger amount of cash, then a logbook loan would be best. If you do not own a car and/or you would like use of a smaller quick loan, then payday would be better for your circumstances.
Whatever loan choice you go for, it is wise to make certain you have the cash to make the repayments. It's also advisable to research prices to make sure that you obtain the very best deals for ones situation.
Wednesday, August 15, 2012
Mastering Affiliate Marketing In Just 5 Days!
Many affiliates are not making any money with the programs they promote because they are simply making a lot of mistakes, which prevent them from bringing their affiliate marketing business to the next level.
The right affiliate strategy can help you make your first sale in one week, or more. It will depend on how much effort you put into the battle.
Follow these seven days to affiliate marketing profit and you should do well, and see your first affiliate sale very soon. When I saw that blueprint for the first time, I was skeptical; but when I saw commissions in my affiliate account, I knew that the process was working perfectly.
The problem is not in the process but with the affiliate marketer who didn't set a clear goal with a plan and didn't take action to achieve the success that many other super affiliates are enjoying.
So here is the plan that you must follow if you want to make your first commission in affiliate marketing...next week:
Day 1: Find a profitable market
Finding a profitable market is where most affiliates fail and then give up. It's not their fault, but nobody takes the time to explain that.
When you are starting, it is better to start with a huge market that is already profitable, like golf, weight loss, finance, self-help, beauty, sports, fitness...
Start by researching what those people want, what they are searching for on the Internet. For that, you will need a keyword research tool like Goodkeywords.com or Yahoo search marketing tool.
Day 2: Find an affiliate product for this market
Before finding the product, try to identify the needs of your targeted market. Your chosen product must be excellent; and you want to have a good commission that will reward you, motivate you and cover your affiliate campaign costs. You can start with clickbank.com or cj.com.
You must verify the sales page to see if it will convert your visitors into sales.
Day 3: Know and understand your product
Know that the goal of the affiliate is to pre-sell and not to sell. The merchant must sell his product, not you.
You should pre-sell (capture and warm up) your product to your subscriber. For that, you need to know the benefits of the product for your subscribers, and the best way to do that is to own the product.
Day 4: Prepare your advertising plan
Prepare your material: ads, articles, where you will advertise this affiliate program: Start with articles and pay-per-click traffic via Google Adwords.
Day 5: Prepare yourself to capture your prospects
You must not send your visitor to the merchant page, but you must capture his name and email address first, to secure your future affiliate commissions.
Day 6: Write your killer follow-up material
After capturing his email address, the pre-written message in your autoresponder will do the work for you and close the sale.
Day 7: Drive tons of traffic to your lead capture page
When everything is ready, start to advertise your affiliate program. Actually, you will show your lead capture (also called opt-in or squeeze page) page to the world, and take your future buyer's email address. One of the most effective ways to advertise it is to write articles.
Remember: the affiliate marketing process works, and it is perfect. But it will not work without you. So take action, and when you start to see your affiliate commissions, you will know that it is working; and you will be able to master the affiliate marketing game and become a super affiliate.
The right affiliate strategy can help you make your first sale in one week, or more. It will depend on how much effort you put into the battle.
Follow these seven days to affiliate marketing profit and you should do well, and see your first affiliate sale very soon. When I saw that blueprint for the first time, I was skeptical; but when I saw commissions in my affiliate account, I knew that the process was working perfectly.
The problem is not in the process but with the affiliate marketer who didn't set a clear goal with a plan and didn't take action to achieve the success that many other super affiliates are enjoying.
So here is the plan that you must follow if you want to make your first commission in affiliate marketing...next week:
Day 1: Find a profitable market
Finding a profitable market is where most affiliates fail and then give up. It's not their fault, but nobody takes the time to explain that.
When you are starting, it is better to start with a huge market that is already profitable, like golf, weight loss, finance, self-help, beauty, sports, fitness...
Start by researching what those people want, what they are searching for on the Internet. For that, you will need a keyword research tool like Goodkeywords.com or Yahoo search marketing tool.
Day 2: Find an affiliate product for this market
Before finding the product, try to identify the needs of your targeted market. Your chosen product must be excellent; and you want to have a good commission that will reward you, motivate you and cover your affiliate campaign costs. You can start with clickbank.com or cj.com.
You must verify the sales page to see if it will convert your visitors into sales.
Day 3: Know and understand your product
Know that the goal of the affiliate is to pre-sell and not to sell. The merchant must sell his product, not you.
You should pre-sell (capture and warm up) your product to your subscriber. For that, you need to know the benefits of the product for your subscribers, and the best way to do that is to own the product.
Day 4: Prepare your advertising plan
Prepare your material: ads, articles, where you will advertise this affiliate program: Start with articles and pay-per-click traffic via Google Adwords.
Day 5: Prepare yourself to capture your prospects
You must not send your visitor to the merchant page, but you must capture his name and email address first, to secure your future affiliate commissions.
Day 6: Write your killer follow-up material
After capturing his email address, the pre-written message in your autoresponder will do the work for you and close the sale.
Day 7: Drive tons of traffic to your lead capture page
When everything is ready, start to advertise your affiliate program. Actually, you will show your lead capture (also called opt-in or squeeze page) page to the world, and take your future buyer's email address. One of the most effective ways to advertise it is to write articles.
Remember: the affiliate marketing process works, and it is perfect. But it will not work without you. So take action, and when you start to see your affiliate commissions, you will know that it is working; and you will be able to master the affiliate marketing game and become a super affiliate.
Saturday, August 11, 2012
Getting Home Loan With Bad Credit: The Key To Application Success
When bad credit borrowers are looking to buy a new home, the chances of getting the mortgage they need are much lower than for good credit applicants. That is only to be expected, but the good news is that getting home loans with bad credit is far from being an impossibility. While perfect terms can be ruled out, the opportunity for funding is welcome.
It is common knowledge that securing mortgage approval from traditional lenders, like banks, is difficult but with so many online lenders to choose from, a competitive alternative can be easily sourced. They are also more affordable, with interest rates that are more competitive and more flexible repayment terms.
The fact is that low credit rating is not the deciding factor in any loan application, so getting a home loan comes down to other factors. If these are in good order, then the chances of approval are improved greatly.
What are the Key Areas?
With bad credit ruled out, the areas that are key to the success of an application for a home loan with bad credit are the budget of the applicant, whether a down payment can be made (and how large it is), and the specific terms of the mortgage deal being offered.
Working out the budget is the first step for any applicant, since it will reveal what repayments are affordable, which in turn, directly affects the size of the mortgage affordable. So, securing mortgage approval effectively starts by calculating the size of the existing debt, and comparing it to income.
Once the amount of the excess income is known, an affordable repayment can be calculated, thus revealing the size of the home loan most likely to be secure. What is more, if existing debts are high, there is time to reduce them by before submitting an application.
The Role of the Down Payment
Few people stop to think that a down payment is more significant to a mortgage deal than simply being used to formalize the sale agreement. The fact is that the size of a down payment directly affects the size of the mortgage required. So, if it is large enough then getting a home loan with bad credit is easier.
Basically, if a 5% down payment is made on a home costing 0,000, the size of the required mortgage falls to 2,500, but with a 10% payment just 5,000 is needed. The resulting difference in monthly repayments may only be or so, but that alone can make securing mortgage approval easier. After all, over 30 years, that saving amounts to ,000.
Lenders also like the idea of applicants pledging larger down payments because the financial discipline requires to save that cash is high. That kind of commitment is impressive when it comes to considering granting a home loan.
Get the Right Lender
Finally, the significance of the lender is huge when applying for a home loan with bad credit. This is because the specific terms, fees and late penalties can make the mortgage deal less affordable than was first thought. In fact, the policies set by the lenders often are what swings the deal, so getting the right one is very important.
To that end, approaching online lenders is usually the best way of securing mortgage approval, and the fact they are known to charge more competitive interest rates means they offer the most affordable home loan options - as long as the criteria and conditions are met, of course.
Still, always check the reputation of an online lender in the Better Business Bureau website before signing any loan contract.
It is common knowledge that securing mortgage approval from traditional lenders, like banks, is difficult but with so many online lenders to choose from, a competitive alternative can be easily sourced. They are also more affordable, with interest rates that are more competitive and more flexible repayment terms.
The fact is that low credit rating is not the deciding factor in any loan application, so getting a home loan comes down to other factors. If these are in good order, then the chances of approval are improved greatly.
What are the Key Areas?
With bad credit ruled out, the areas that are key to the success of an application for a home loan with bad credit are the budget of the applicant, whether a down payment can be made (and how large it is), and the specific terms of the mortgage deal being offered.
Working out the budget is the first step for any applicant, since it will reveal what repayments are affordable, which in turn, directly affects the size of the mortgage affordable. So, securing mortgage approval effectively starts by calculating the size of the existing debt, and comparing it to income.
Once the amount of the excess income is known, an affordable repayment can be calculated, thus revealing the size of the home loan most likely to be secure. What is more, if existing debts are high, there is time to reduce them by before submitting an application.
The Role of the Down Payment
Few people stop to think that a down payment is more significant to a mortgage deal than simply being used to formalize the sale agreement. The fact is that the size of a down payment directly affects the size of the mortgage required. So, if it is large enough then getting a home loan with bad credit is easier.
Basically, if a 5% down payment is made on a home costing 0,000, the size of the required mortgage falls to 2,500, but with a 10% payment just 5,000 is needed. The resulting difference in monthly repayments may only be or so, but that alone can make securing mortgage approval easier. After all, over 30 years, that saving amounts to ,000.
Lenders also like the idea of applicants pledging larger down payments because the financial discipline requires to save that cash is high. That kind of commitment is impressive when it comes to considering granting a home loan.
Get the Right Lender
Finally, the significance of the lender is huge when applying for a home loan with bad credit. This is because the specific terms, fees and late penalties can make the mortgage deal less affordable than was first thought. In fact, the policies set by the lenders often are what swings the deal, so getting the right one is very important.
To that end, approaching online lenders is usually the best way of securing mortgage approval, and the fact they are known to charge more competitive interest rates means they offer the most affordable home loan options - as long as the criteria and conditions are met, of course.
Still, always check the reputation of an online lender in the Better Business Bureau website before signing any loan contract.
Thursday, August 9, 2012
PO Funding is the Perfect Financing Alternative to Commercial Loans
What is purchase order funding and why is it a perfect alternative to commercial loans? We will discuss that briefly in this article.
When businesses and/or companies have received a large order and is under capitalized or when their cost of goods exceeds their current line of credit, they need a reputable factoring company to fund them. Yes, commercial loans are a famous financing alternative. However, commercial loans have too many requirements and take so long to process. Let's compare and weigh the benefits of purchase order funding to that of a commercial loan.
1. Purchase order funding makes closing big sales so easy! In addition, it will be able to finance the large-scale orders of your customers. As for commercial loans, you get no chance to proceed with taking and doing your clients' orders unless you obtain your loan approval. A commercial loan is taxing your business by the possibility of losing your clients!
2. Purchase order funding does not evaluate you through your corporate accomplishment (equity, tax returns, etc.). Even startup and young but promising companies can run to a factoring company when they need immediate cash. In a commercial loan set-up, your company will have to accomplish numerous forms so that the lending company could proceed with evaluation. It does not end there; they also turn you down if you're just a small company. They look at your corporate size as a risk. In short, they fear you would not pay!
3. Purchase order funding can support and financially provide for the demands of your local and/or foreign suppliers. This is because your purchase order is treated as collateral. Hence, the factoring company is certain that everything will fall into place and that your business is worth supporting. Commercial loans do not pay your suppliers. If you get your loan application approved, you can pay your suppliers. The question is will the loan approval be as swift as that provided by a factoring company? We don't think so.
4. The factoring company will help you make sure that your sales will increase because of purchase order funding. They do not bombard you with big interest rates than lending companies do. A factoring company has minimal service fees.
5. Purchase order funding is swift! If you noticed, the previous paragraphs keep reiterating the tedious paperwork and waiting you go through when you seek loan from a lending investor. Commercial loans take your patience to the core that you now feel unsure of the growth of your business. The process of PO funding will take hours, not days.
When businesses and/or companies have received a large order and is under capitalized or when their cost of goods exceeds their current line of credit, they need a reputable factoring company to fund them. Yes, commercial loans are a famous financing alternative. However, commercial loans have too many requirements and take so long to process. Let's compare and weigh the benefits of purchase order funding to that of a commercial loan.
1. Purchase order funding makes closing big sales so easy! In addition, it will be able to finance the large-scale orders of your customers. As for commercial loans, you get no chance to proceed with taking and doing your clients' orders unless you obtain your loan approval. A commercial loan is taxing your business by the possibility of losing your clients!
2. Purchase order funding does not evaluate you through your corporate accomplishment (equity, tax returns, etc.). Even startup and young but promising companies can run to a factoring company when they need immediate cash. In a commercial loan set-up, your company will have to accomplish numerous forms so that the lending company could proceed with evaluation. It does not end there; they also turn you down if you're just a small company. They look at your corporate size as a risk. In short, they fear you would not pay!
3. Purchase order funding can support and financially provide for the demands of your local and/or foreign suppliers. This is because your purchase order is treated as collateral. Hence, the factoring company is certain that everything will fall into place and that your business is worth supporting. Commercial loans do not pay your suppliers. If you get your loan application approved, you can pay your suppliers. The question is will the loan approval be as swift as that provided by a factoring company? We don't think so.
4. The factoring company will help you make sure that your sales will increase because of purchase order funding. They do not bombard you with big interest rates than lending companies do. A factoring company has minimal service fees.
5. Purchase order funding is swift! If you noticed, the previous paragraphs keep reiterating the tedious paperwork and waiting you go through when you seek loan from a lending investor. Commercial loans take your patience to the core that you now feel unsure of the growth of your business. The process of PO funding will take hours, not days.
Tuesday, August 7, 2012
Barrie Real Estate Investor's Buying Barrie Real Estate
Spring Presents Great Time to Start Investing in Real Estate
With the warmth of spring creeping back and the last of the snow melting, there is a renewed energy and positive mood in the air. The return of spring also means an influx of houses, condos, townhomes, and more to the real estate market. Investing in real estate is often a very safe way of investing your hard earned money, either as a first time home buyer, or looking for a second property to rent. Let's look into each situation as each provides a different type of investment strategy.
Investing in Real Estate as a First Time Home Buyer
You've been paying rent for the last couple of years and while you enjoy the house or apartment you are renting; how much return on that money have you seen? Zero, maybe a small increase on your tax refund, all in all not a whole lot. An average basement apartment in Barrie rents out for between 0 to 00 per month; while an average house rents for 00 to 00 per month, plus your own utilities. That's a lot of money that you'll never see again.
Typically, when paying rent you are paying down your landlord's mortgage on the property and covering the cost of the home insurance on the property; and possibly even putting a little extra cash directly into the landlord's pocket. Seems like a pretty one-sided deal. Why not invest in a home of your own, so you pay down your own mortgage and build equity. That equity can help you do a lot of things, such as providing a down payment on the next house once your family grows out of this one or can help you pay off other debts when you refinance at the end of your term.
A mortgage is often going to be less per month than you would pay in rent, of course that is dependent on purchasing a similar house to what you are renting. Another great reason to look at investing in a home is mortgage rates are still very low, meaning you can get a great rate and be able to pay down the principle of your mortgage even faster.
If you're worried that your credit score or lack of a down payment may hinder you from being approved for a mortgage there is always options available such as co-signers, rent-to-own, and zero-down mortgages. Don't give up on the dream of investing in a home before you've even explored all of your options.
There's also the plus of being able to do renovations to the house that will help increase the property value, eventually putting money back in your pocket when you go to sell, but also turn the house into a home while you are living there.
Investing in Real Estate for Renting
You've already made the smart move of investing in your home but now want to look at real estate as another investing tool to help you make the most of your money. Purchasing a second property to rent can be a solid investment strategy if done right. The first thing you should consider is location of the property and will renters find this a positive area to be in? The obvious choice to purchase a second property in Barrie is around Georgian College or a property in close proximity to Base Borden. These two areas have high turnover rates due to the nature of being a student or in the military. You might have to put in a bit of extra work renting it out every year or two, but the number of renters looking will be much higher.
Once you've found the property, it's time to establish a rental rate. The goal here whether you choose to rent the entire property or rent out rooms individually is to make sure you charge enough to cover your mortgage and home insurance for the property. It's also good to look into landlord insurance as added protection. If you do decide to charge more than the mortgage and home insurance to put some quick cash in your pocket, make sure to set some of it into a savings account for when repairs are needed at the property. Don't forget general repairs are your responsibility to fix as the landlord.
So what's the value of a second property? Well once you look past your responsibilities as a landlord, you have somebody else paying down your mortgage for you. This means you are growing your equity with someone else's money, sounds good doesn't it? The key to investing in a second property is to make sure that you be a great landlord. Renter satisfaction increases if they have a landlord who is responsive and helpful when needed but is not intrusive. Also do your research and make sure your tenants will be respectful of your property while they live there. If your property isn't taken care of you're not helping the tenants or yourself in the long run.
Flipping Properties
Investing in a property to flip and sell is a risky venture and far less stable than investing in a property to rent. There are no guarantees that you will be able to flip the property quickly and you may be stuck holding onto a property you can't afford. There's also the high investment level of cash that is needed to improve the property quickly. Even if you plan on renovating yourself it will still be expensive and time consuming.
If you want to start flipping properties, do your research and invest wisely. Never try this method of investing in a property on a whim, it will never end well. With that said if done well you can sometimes, the keyword is sometimes, turn a quick profit from a property.
Quick Recap of Items to Consider When Using Real Estate for Investing
Carrying a mortgage is often less than what you'll pay for rent
Options like rent-to-own, zero down mortgage options can help you achieve home ownership faster
Find the right location for a second property that will consistently be able to find new renters
Be a good landlord and you'll get good renters
Flipping properties is risky but profitable, only try this after doing your research and making a plan
Mark Turcotte
Sales Representative
Sutton Group Incentive Realty
Office:705-739-1300
Cell:705-309-5300
Fax:705-739-1330
Email:
SeeItOnTheWeb.ca/MarkTurcotte.asp
With the warmth of spring creeping back and the last of the snow melting, there is a renewed energy and positive mood in the air. The return of spring also means an influx of houses, condos, townhomes, and more to the real estate market. Investing in real estate is often a very safe way of investing your hard earned money, either as a first time home buyer, or looking for a second property to rent. Let's look into each situation as each provides a different type of investment strategy.
Investing in Real Estate as a First Time Home Buyer
You've been paying rent for the last couple of years and while you enjoy the house or apartment you are renting; how much return on that money have you seen? Zero, maybe a small increase on your tax refund, all in all not a whole lot. An average basement apartment in Barrie rents out for between 0 to 00 per month; while an average house rents for 00 to 00 per month, plus your own utilities. That's a lot of money that you'll never see again.
Typically, when paying rent you are paying down your landlord's mortgage on the property and covering the cost of the home insurance on the property; and possibly even putting a little extra cash directly into the landlord's pocket. Seems like a pretty one-sided deal. Why not invest in a home of your own, so you pay down your own mortgage and build equity. That equity can help you do a lot of things, such as providing a down payment on the next house once your family grows out of this one or can help you pay off other debts when you refinance at the end of your term.
A mortgage is often going to be less per month than you would pay in rent, of course that is dependent on purchasing a similar house to what you are renting. Another great reason to look at investing in a home is mortgage rates are still very low, meaning you can get a great rate and be able to pay down the principle of your mortgage even faster.
If you're worried that your credit score or lack of a down payment may hinder you from being approved for a mortgage there is always options available such as co-signers, rent-to-own, and zero-down mortgages. Don't give up on the dream of investing in a home before you've even explored all of your options.
There's also the plus of being able to do renovations to the house that will help increase the property value, eventually putting money back in your pocket when you go to sell, but also turn the house into a home while you are living there.
Investing in Real Estate for Renting
You've already made the smart move of investing in your home but now want to look at real estate as another investing tool to help you make the most of your money. Purchasing a second property to rent can be a solid investment strategy if done right. The first thing you should consider is location of the property and will renters find this a positive area to be in? The obvious choice to purchase a second property in Barrie is around Georgian College or a property in close proximity to Base Borden. These two areas have high turnover rates due to the nature of being a student or in the military. You might have to put in a bit of extra work renting it out every year or two, but the number of renters looking will be much higher.
Once you've found the property, it's time to establish a rental rate. The goal here whether you choose to rent the entire property or rent out rooms individually is to make sure you charge enough to cover your mortgage and home insurance for the property. It's also good to look into landlord insurance as added protection. If you do decide to charge more than the mortgage and home insurance to put some quick cash in your pocket, make sure to set some of it into a savings account for when repairs are needed at the property. Don't forget general repairs are your responsibility to fix as the landlord.
So what's the value of a second property? Well once you look past your responsibilities as a landlord, you have somebody else paying down your mortgage for you. This means you are growing your equity with someone else's money, sounds good doesn't it? The key to investing in a second property is to make sure that you be a great landlord. Renter satisfaction increases if they have a landlord who is responsive and helpful when needed but is not intrusive. Also do your research and make sure your tenants will be respectful of your property while they live there. If your property isn't taken care of you're not helping the tenants or yourself in the long run.
Flipping Properties
Investing in a property to flip and sell is a risky venture and far less stable than investing in a property to rent. There are no guarantees that you will be able to flip the property quickly and you may be stuck holding onto a property you can't afford. There's also the high investment level of cash that is needed to improve the property quickly. Even if you plan on renovating yourself it will still be expensive and time consuming.
If you want to start flipping properties, do your research and invest wisely. Never try this method of investing in a property on a whim, it will never end well. With that said if done well you can sometimes, the keyword is sometimes, turn a quick profit from a property.
Quick Recap of Items to Consider When Using Real Estate for Investing
Carrying a mortgage is often less than what you'll pay for rent
Options like rent-to-own, zero down mortgage options can help you achieve home ownership faster
Find the right location for a second property that will consistently be able to find new renters
Be a good landlord and you'll get good renters
Flipping properties is risky but profitable, only try this after doing your research and making a plan
Mark Turcotte
Sales Representative
Sutton Group Incentive Realty
Office:705-739-1300
Cell:705-309-5300
Fax:705-739-1330
Email:
SeeItOnTheWeb.ca/MarkTurcotte.asp
Sunday, August 5, 2012
How to Find Health Insurance
Do you need private health insurance? Perhaps your government or employer-sponsored plan doesn't provide adequate coverage. Or maybe you recently retired, lost your job, became self employed or graduated from college (and left your parents' plan). Whatever your situation, there are a number of resources you can use to locate the right type of health insurance for your budget and needs.
Local Agents
A key step to finding health insurance is to research agents that are right in your own backyard. Insurance agents are typically listed in your local phone book, which makes them quite easy to find. For instance, you can peruse the "insurance" category of your traditional printed Yellow Pages and discover a wide variety of providers. The insurance companies will typically be listed alphabetically, and some will have descriptive ads that spell out the type of insurance products they offer. However, most simply list an address and a phone number you can contact for more information. You can also use the white pages of the local telephone book to search for specific agentsif you already know their individual names. Or if your prefer, you can take advantage of yellowpages.ca to conduct a quick online search for insurance providers.
Online Resources
There are myriad Websites with information about health insurance companies. A popular option is Yahoo! Directory Canada. The database displays numerous listings for Canadian insurance brokerages under the Health Insurance Providers section. The listings are arranged alphabetically and offer a brief description of the types of insurance products available. Yahoo! Directory Canada provides quick click access to the providers' Websites, as well as their contact phone number.
Another extensive online source for health insurance information is InsuranceCanada.ca. This comprehensive site offers a wealth of information, as well as a directory of providers that deliver online health quotes. The directory section of the site features a range of organizations that offer Web-based information and online quoting for some or all of their health and related products. Many of the products can be purchased online or face-to-face through local representatives, depending on your comfort level. The secure Website allows visitors to shop online for employee, individual (personal/family), or student health insurance all from the convenience of home.
Canadian Insurance Directory also features a broad selection of insurance agents and brokers. The site has nearly 9,500 brokers representing nearly every Canadian province and territory.
Important Things to Keep in Mind
When searching for health insurance, it's important to keep in mind that some agents sell insurance exclusively for one company. Others act as independent brokers who promote a variety of insurance products from various organizations. Whether agents sell insurance for a single company or multiple providers, you can call them to receive a free rate quote over the phone. Or you can opt to visit their office for a personal consultation.
Prior to contacting an agent or broker, you should evaluate your situation and identify your specific health insurance needs. Be prepared to shop around to ensure you obtain the most appropriate health coverage for you and your family. Steer clear of plans that don't offer insurance coverage, but provide discounts on the cost of health care services. Here are some other factors to consider as you explore different insurance options:
Make sure you understand exactly what medical services are covered and whether the policy fits your requirements.
Know your deductible, the amount you are responsible for before insurance begins paying for services. Likewise, determine what amounts you will be required to pay after you meet the deductible.
Find out if the plan covers health problems you already have.
Know which doctors are covered in the provider's network and how much extra you would have to pay to visit physicians that are not included.
Finding the right health insurance can be a daunting task, but capitalizing on local and online resources can make the job much easier.
Local Agents
A key step to finding health insurance is to research agents that are right in your own backyard. Insurance agents are typically listed in your local phone book, which makes them quite easy to find. For instance, you can peruse the "insurance" category of your traditional printed Yellow Pages and discover a wide variety of providers. The insurance companies will typically be listed alphabetically, and some will have descriptive ads that spell out the type of insurance products they offer. However, most simply list an address and a phone number you can contact for more information. You can also use the white pages of the local telephone book to search for specific agentsif you already know their individual names. Or if your prefer, you can take advantage of yellowpages.ca to conduct a quick online search for insurance providers.
Online Resources
There are myriad Websites with information about health insurance companies. A popular option is Yahoo! Directory Canada. The database displays numerous listings for Canadian insurance brokerages under the Health Insurance Providers section. The listings are arranged alphabetically and offer a brief description of the types of insurance products available. Yahoo! Directory Canada provides quick click access to the providers' Websites, as well as their contact phone number.
Another extensive online source for health insurance information is InsuranceCanada.ca. This comprehensive site offers a wealth of information, as well as a directory of providers that deliver online health quotes. The directory section of the site features a range of organizations that offer Web-based information and online quoting for some or all of their health and related products. Many of the products can be purchased online or face-to-face through local representatives, depending on your comfort level. The secure Website allows visitors to shop online for employee, individual (personal/family), or student health insurance all from the convenience of home.
Canadian Insurance Directory also features a broad selection of insurance agents and brokers. The site has nearly 9,500 brokers representing nearly every Canadian province and territory.
Important Things to Keep in Mind
When searching for health insurance, it's important to keep in mind that some agents sell insurance exclusively for one company. Others act as independent brokers who promote a variety of insurance products from various organizations. Whether agents sell insurance for a single company or multiple providers, you can call them to receive a free rate quote over the phone. Or you can opt to visit their office for a personal consultation.
Prior to contacting an agent or broker, you should evaluate your situation and identify your specific health insurance needs. Be prepared to shop around to ensure you obtain the most appropriate health coverage for you and your family. Steer clear of plans that don't offer insurance coverage, but provide discounts on the cost of health care services. Here are some other factors to consider as you explore different insurance options:
Make sure you understand exactly what medical services are covered and whether the policy fits your requirements.
Know your deductible, the amount you are responsible for before insurance begins paying for services. Likewise, determine what amounts you will be required to pay after you meet the deductible.
Find out if the plan covers health problems you already have.
Know which doctors are covered in the provider's network and how much extra you would have to pay to visit physicians that are not included.
Finding the right health insurance can be a daunting task, but capitalizing on local and online resources can make the job much easier.
Friday, August 3, 2012
Companies Offering Cheap Car Loans In Melbourne At Your Disposal
From being a luxury, it has now become a diehard necessity and life without automobiles is almost impossible to imagine. That is the reason why most of the people already have cars and the rest of them; keep the wish to own a car, an utmost priority in their lives. But with the hike in prices, it becomes difficult to even think about financing a car on your own.
And that is why there is existence of companies which offer car loans on much less interest as compared to banks. They would be paying the amount which is left after you have paid according to your affordability. In big cities like Sydney, Melbourne, etc. there is a great need of a personal vehicle so there are many companies which have come up offering cheap car loans in Melbourne or Sydney. But there are a few things which should be kept in mind before applying for a car loan. A couple of key points are discussed below:
- At the end of the day, you have to pay it all. Though the companies would take it on monthly basis and the installments can be of lesser money, but then even they ask for it. So a person should apply for a car loan only when he is capable of repaying it to the company. And for that matter, before approving for a loan, companies get background check weather you have a permanent job which is good enough to pay for the installments or not.
- There would be many companies which are capable of providing car finance in Melbourne, but you need to pick the right one. The mode of payment should be flexible and they should provide you ample time to repay the loan.
- You can go for an online company for the same. There are many online companies which exclusively work for people in and around Melbourne and provide car loans in Melbourne in a convenient and hassle free manner. But then, you should make sure that the company is not a sham and they are not after making money out of innocent people.
With all the above mentioned points in mind, you can apply for a car loan. The trend of choosing an online company around the place has increased in recent years and there is a reason behind it. It saves your time and effort to do the research for the same. Company would be publishing all the required information on the website and all you need is to open it and check for the desired piece of information. You can also compare the two or more companies and go with the one which is offering car finance in Melbourne at a lower interest. The sole aim of these companies is to lend a helping hand in fulfilling your dream of owning a car. So go for it as soon as possible!
And that is why there is existence of companies which offer car loans on much less interest as compared to banks. They would be paying the amount which is left after you have paid according to your affordability. In big cities like Sydney, Melbourne, etc. there is a great need of a personal vehicle so there are many companies which have come up offering cheap car loans in Melbourne or Sydney. But there are a few things which should be kept in mind before applying for a car loan. A couple of key points are discussed below:
- At the end of the day, you have to pay it all. Though the companies would take it on monthly basis and the installments can be of lesser money, but then even they ask for it. So a person should apply for a car loan only when he is capable of repaying it to the company. And for that matter, before approving for a loan, companies get background check weather you have a permanent job which is good enough to pay for the installments or not.
- There would be many companies which are capable of providing car finance in Melbourne, but you need to pick the right one. The mode of payment should be flexible and they should provide you ample time to repay the loan.
- You can go for an online company for the same. There are many online companies which exclusively work for people in and around Melbourne and provide car loans in Melbourne in a convenient and hassle free manner. But then, you should make sure that the company is not a sham and they are not after making money out of innocent people.
With all the above mentioned points in mind, you can apply for a car loan. The trend of choosing an online company around the place has increased in recent years and there is a reason behind it. It saves your time and effort to do the research for the same. Company would be publishing all the required information on the website and all you need is to open it and check for the desired piece of information. You can also compare the two or more companies and go with the one which is offering car finance in Melbourne at a lower interest. The sole aim of these companies is to lend a helping hand in fulfilling your dream of owning a car. So go for it as soon as possible!
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