Personal Loan and Its Different Advantages

A personal loan is an unsecured loan which is offered to a consumer for catering their various personal needs such as the renovation of a house, marriage, home appliances, buy vehicle amid others. This is offered after verifying one’s ability of paying especially the income source and also according to their credit history. A nominal processing fee will be charged and the sum as per a person’s paying ability will get credited to their account. In fact the loan payment is made via fixed installments which also includes interest and for fixed time periods. The icing on the cake is these days personal loans are a smart choice as one do not require going through a lot of formalities and tedious paperwork. Most of the financial institutions and banks offer personal loans today and the rate of interest is also quite reasonable.

Discover the different benefits

• Available easily- to get a personal loan is no longer a challenging affair. It is offered by almost all financial institutions and banks at a reasonable rate of interest. Compared to other loans it is convenient and easy to get

• No middleman or agent involved- for availing a personal loan one will not require taking the help of an agent or a middleman. This will avoid unnecessary expenses and delays. A person can approach the financial institution or bank for the purpose directly

• Unsecured loan- this is indeed an unsecured loan. Here no collateral security is needed for availing the loan. In fact, all that is needed is one’s ability of paying back the money.

• Less processing time- because it is accessible devoid of any guarantee or security the processing time needed to get this is naturally less compared to other loans

• All purpose loans- in this form of loan it is not compulsory for a person in specifying the reason for which they will be using the money.

• Minimum paperwork- to get a loan will not need any asset verification or other forms of certificates and proofs which include ample paperwork as none of one’s property is mortgaged

• Offers and schemes- different financial institutions and banks keep announcing offers and special schemes on personal loans, especially for the professionals such as architects, doctors, chartered accountants and the like

• Amount and tenure- these loans generally are provided varying from Rs 15000 to Rs 20 lakhs differing from one bank to another. The repayment can be made through EMIs

The bottom line is, rather than borrowing money from a credit card it is always better to choose a personal loan as the rate of interest is comparatively lower. So reap its utmost benefits.

Applying for a Personal Loan With Subpar Credit – What to Know

Anyone that finds themselves with multiple balances on credit cards that have high interest may consider looking for a personal loan with bad credit. This allows them to transfer those balances and take advantage of a lower interest rate to pay off their cards. Sadly, many banks will turn them down due to their credit. Thankfully, there are ways to get a loan that will help them save money, even with that low credit score.

Whether due to financial issues, job loss, or just striving to build a good credit score as a first time user it is difficult to get a loan. The way credit reports work is always changing and there are many factors that affect a person’s credit. It’s important to stay in the know about how to build it, and what your options are. There are likely more options than they think. Here are some ways to apply for and get a personal loan with bad credit.

How to Get a Loan with Bad Credit

Having zero credit or poor credit is a major issue when looking to secure a loan, because that person is viewed as a high risk customer who may default. It’s important to accept that until the credit score is raised, one won’t be able to enjoy the standard lending guidelines offered by big banks.

For anyone that’s been turned down for a loan or who doesn’t want to pay monstrous rates, here are some options:

Consider a Home Equity Line of Credit

If there is enough equity in owned property, it’s possible to secure a tax-deductible, low-interest loan or line of credit that can be used in any way. The only downfall is that many don’t want to tap into their home equity as it puts the property in jeopardy if they can’t repay it. However, with a steady income and a bit of discipline then this can be paid off and is a less pricey option no matter what the credit score!

Try and Apply to Credit Unions

Credit unions are so much better than a regular bank. That’s because they are member-owned. Usually they are founded by people who have something in common whether it be living in the same area, or working in the same profession. They are nonprofit and have a sole purpose of helping members. They offer great customer service and low fees.

Borrow from a Friend

Consider what’s called P2P or peer-to-peer lending. There are even sites online that let a person borrow from someone directly rather than a bank. This form of lending is getting very popular and is quite simple. It’s a winning situation for both investors who want to earn interest and borrowers who enjoy paying lower rates. It’s the perfect solution when looking to apply for a personal loan with bad credit. Current rates with P2P lending are as low as 6%. That’s far lower than most credit cards.

Family Loans

If an online peer doesn’t pick up a loan request, there’s always a chance a family member might. However, it’s more than important to treat a loan from someone in the family just as a professional loan. It should be documented and recorded. A written agreement should show the interest rate, terms of repayment and collateral that’s going against the loan. It should also lay out all the actions to be taken if the borrower does not repay.

What About a Co-signer?

If one is searching for a personal loan with bad credit and they don’t have a family member or a friend that is available to offer the loan, maybe they would consider co-signing. This is when someone who trusts that the borrower can repay the debt would take a chance on them and be a back up to repay the loan should that person default.

Banking Salaries Going Up in 2011!

Bankers’ compensation should go up by almost five percent in 2011 for several important reasons. Before I go on here, it should be pointed out that not all banking salaries are headed north. There is a segment of banking generically referred to as “retail banking” (which is best described as what goes on when you walk into the local branch of your bank) that will actually decline a bit. The reason for that decline is twofold; a continuing pattern of making many of those jobs part time (and, hence hourly pay with no benefits) and growth of on-line and electronic banking.

What I reference here are salaries pertaining more to the type of banking that is extended to businesses and the professional bankers who handle the financial, lending, credit and investment functions for that part of our economy. The salaries of these professionals are going up!

Elevator going up

First, financial salaries across the board have been in a holding pattern since 2008 and everyone is willing to tighten their belts… for a while…but it will be hard to keep bankers’ belts tight when banks are scoring higher profits: According to FDIC Chairman Sheila Bair recently “the majority of banks are faring well and about 63% of institutions reported improvements in their net income”. In short, there is a positive expectancy that goes something like “the bank is doing better so I should be too”.

Baby Boomers going down

Second, few economists seem to be taking note of the fact that Americans are retiring at an increasing rate; the boomers are dropping out. The Social Security Administration reports that by 2015, the age 65 group of Americans will be our fastest growing segment.

“Wait a minute”, you say, ” I have been reading about baby boomers hanging in there beyond age 65″. I read the same articles and can’t find a lot of hard facts but I do find a lot of supposition based on two premises; first, that Americans are living longer and second, that they are poorer now than they were a few years ago and, hence, will continue to soldier on to rebuild their savings, etc. It may be that people in a certain income class have to work at their existing jobs longer but that may have always been the case. And, just because you are going to live longer, does that mean you want to work longer?

At any rate, I find, in the executive search work we do with banks, that the skilled professionals are departing their jobs at a rate faster than can be replaced and, hence, banks will have to pay more to keep the ones they do have. When the supply goes down, the price goes up… I think that’s what we were all taught in Economics 101.

Jobs becoming more technical and/or complicated

About fifteen years ago, I recall attending a symposium on the American economy and listening to a very well known economist tell the audience that there will be a “tremendous dumbing down of jobs” in the finance sector; that is, his view was that jobs will be made simpler. The theory was that computers would take over more and more of the decision making. My answer is nope, ain’t seen it yet! How about you… is your job easier/simpler that it was, say, even five years ago? Ask the average Chief Credit Officer if his job is easier today than it was five years ago and he will laugh you out of his office.

Let’s take a look at what many feel is the least technical job in commercial banking, the business development lending officer. This is the person who goes out and brings in new business loans to the bank. Not to insult anyone here; this is a tremendously important job in that business loans are the economic heart (or at least liver!) for all banks but the skills needed have probably remained unchanged in the last century. Yet, a recent interview with a VP of Commercial Lending went something like this: “My bank just installed its second prospecting management system in three years and I was still trying to learn the first one.” “We also have been attending seminars on our new portfolio risk assessment reporting system to keep ahead of the FDIC and, once it is up and running, I will be spending about a half day a week writing exception explanations on my accounts.” “I still can’t connect our email system to my cell phone and, hopefully, the IT guy will come over this week to help me”. “We’re short two credit analysts in our group because the bank dropped its credit training program a while ago so we all have to do our own credit write-ups now and this is much harder now than in the old days when we didn’t have to do an environmental impact report.” And so it goes. The computer making things simpler? I don’t really think so.

Mortgage banking yawning (if not waking up!)

Everyone knows about the great mortgage banking genocide that has taken place over the last few years. Underwriters, funders, shippers, securitization analysts, originators and the like have been swept from the face of the earth. At the same time, a mountain of new restrictions, laws and regulations have been dumped onto the backs of the remaining workers Right now the mortgage market is somnolent but with a few waking yawns here and there across the country. When it wakes up again (and it will!), the tremendous sucking sound you will hear will be commercial bankers pulled over into the mortgage sector. Historically, when mortgage banking begins to pull people from the commercial banks, the magnet is higher salaries. As this begins to occur, watch for higher economic retention incentives and counter offers to raise the ante for our friends in commercial banking.

Ok, so why five percent?

Five percent is a nice round number and human resource people (and economists) like the pretense of precision… so they will say something like 3.7 percent but, remember, no one ever audits their numbers after the fact. There is a lot of negotiating savvy in quoting a low percent increase and then offering you something over and above the average. The ultra simple logic of five percent goes something like this; two percent covering the ice age of 2008- 2010 and three percent for 2011. Is it enough? I am not sure but one thing you can count on is that salaries are going up!

Carl Russell Miller is CEO of Russell Stephens, LLC, an executive search firm specializing in financial institution search and selection. Mr. Miller received his MBA in finance from Michigan State University, and holds a BBA in accounting from Eastern Michigan University. He is a CPA and a member of the California Society of CPAs, and the AICPA. Carl served as an Army Officer before having begun his career with Arthur Andersen & Co. where he was a Senior-in-Charge. His career includes having been an Account Executive with a computer service firm, a Deal Maker with an investment banking firm, and he invested over ten years as a Managing Partner of one of the largest financial placement firms. Mr. Miller has been featured in numerous business publications and is a frequent guest lecturer at professional societies.

The 10 Best Careers — By Starting Salary, Best Benefits, Job Satisfaction & More

Whether you’re a soon-to-be college grad or a seasoned veteran, knowing the “bests” and the “worsts” of the career world will give you a leg up in deciding where to start out, where to stay or where to move on to.

10 Best Starting Salaries

Software design & development $53,729
Consulting $49,781
Design/construction engineering $47,058
Financial/treasury analysis $45,596
Accounting (private) $44,564
Accounting (public) $41,039
Registered nurse $38,775
Sales $37,130
Management trainee $35,811
Teaching $29,733

10 Best Companies to Work For

(Based on employees’ responses to the “Great Place to Work Trust Index,” a proprietary employee survey developed by the Great Place to Work Institute.)

Wegmans Food Markets
W. L. Gore
Republic Bancorp
J. M. Smucker
S. C. Johnson & Son
Griffin Hospital
Alston & Bird
Vision Service Place

10 Most Satisfying Jobs

(Based 35 percent on potential for job growth, 35 percent on salary growth potential, 20 percent on how many in the field hold a college degree, and 10 percent on freedom to be innovative and creative.)

Personal finance adviser
Medical scientist
Computer software engineer
Environmental engineer
Biochemist and biophysicist
Sales manager
Computer system analyst

10 Fastest Growing Fields

(These will add the largest percentage of positions through 2012.)

Network systems & communications analysts 57.0%
Physician assistants 48.9%
Software engineers 45.5%
Physical therapist assistants 44.6%
Fitness trainers 44.5%
Database administrators 44.2%
Dental hygienists 43.1%
Hazardous material removal workers 43.1%
Computer systems analysts 39.4%
Environmental engineers 38.2%

10 Hottest Jobs

(These will have the most net gains through 2012 (in thousands)).

Teachers (K-12) 724,000
Registered nurses 623,000
Post-secondary teachers 603,000
Customer service reps 458,000
Computer support 420,000
General operations managers 376,000
Sales representatives 356,000
Truck drivers 337,000
Software engineers 307,000
Accountants and auditors 205,000

10 Companies With the Best Benefits

(Based on retirement plans, strong medical coverage, premium subsidies by employers, disability options, group life insurance, accidental death and dismemberment coverage, medical and retirement packages for part-time employees, and effective communication methods to enable workers to capitalize on those benefits.)

Flexible Steel Lacing Company, Downers Grove, IL
American Council of Life Insurers, Washington, D.C.
American Lung Association, New York, NY
GuideOne Insurance, West Des Moines, LA
Campus USA Credit Union, Gainesville, FL
The Washington Trust Company, Westerly, RI
Southwest Power Pool, Inc., Little Rock, AR
Glatfelter Insurance Group, York, PA
Moran Towing Corporation, New Canaan, CT
Fremont Co-operative Produce Company, Fremont, MI

10 Most Dangerous Jobs

(Based on fatality rate.)

Logging workers
Aircraft pilots
Fishers and fishing workers
Structural iron and steel workers
Refuse and recyclable material collectors
Farmers and ranchers
Electrical power line installers/repairers
Driver/sales workers and truck drivers
Taxi drivers and chauffeurs

Bad Credit Auto Loan: A Way to Repair Your Credit Score

Having a car has become a necessity in today’s fast growing world. But to obtain a car you need a good credit score. What do you do when you know that it is not as good as it should be and you find yourself in a tight spot financially? The first thought that comes to your mind is whether you will qualify for an auto loan. And, why would a lender approve loan application of an individual who has a spotty credit score? But the good news is that you can get a bad credit auto loan.

What is a Bad Credit Auto Loan?

The simplest definition is that you can get money for buying a car with a bad credit score. A credit score depends on your ‘creditworthiness’. So when you have a bad credit score, getting an auto loan becomes difficult because a lender thinks that you are unable to repay your debts. Today, owing to online services many lenders offer attractive interest rates on a bad credit auto loan providing the borrower a sigh of relief!

It’s no Picnic!

Getting an approval for a bad credit auto loan is no picnic. It means that when your credit score is not in your favor, it becomes difficult to get approval. But, with the following guidelines, approval becomes easy:

· When your credit score is in question, don’t assume that it must be bad. The wise way is to check it yourself.

· It is the best time to shop around for a bad credit auto loan. Many lenders see borrowers with credit issues in a positive light. So it is important to shop around in order to make the right decision.

· Go online! Various loan options are available online which not only suits your needs but also offer you best interest rates.

· Consider a co-signer. A co-signer provides the security which lenders are looking for in a loan application. Your co-signer’s financial condition should be good in order to compensate for your low score.

Different Lenders have Different Viewpoints

Something that is multifaceted can be looked at from many points of view, with each point of view showing something new.

· You don’t have to worry about your credit score since the lenders are not going to looking at it. Instead, the lenders will look at how likely you will pay off the loan in future.

· The approval rate for a bad credit auto loan is higher than other conventional loans.

· It gives you an opportunity to improve your reputation. If you make timely payments, it can provide you with a chance to build a stronger financial standing.

On the approval of a bad credit auto loan, you will now have the money to buy a new car. You will have fixed interest rate and monthly payments. So now when you make the payments on time, it will not only repair your credit score but also build a good reputation with the lender.

When your credit score is not good, Online bad credit auto financing is the perfect way to buy a car. Apply with EZ Auto Finance and the online loan expert will help you to become a proud owner of your favorite car. Also, it will enable you to obtain no down payment auto loans.

How Can I Buy a Car With Bad Credit?

According to an article in consumers affairs;

In general, it is better to go with a bank or an auto financing lender rather than the car dealership down the street that is offering a “buy here, pay here” deal. If you do wind up with a high interest rate on your car, work on rebuilding your credit score so that you can eventually refinance.

If you suddenly find yourself without a car you might be asking, “How can I buy a car with bad credit?”, well, You DON’T! I know not having a ride can be a problem, like how do you get to work, or what if you want to go out? Well as far as getting to work goes, see if a work colleague lives near you and chip in on some gas for a ride. As far as getting out from time to time, there’s always Uber.

You want to give yourself a few months to save up some money and pay cash for a vehicle until you can get your credit to a point where you can get a 6% or less interest rate. Your choice of vehicle will be better and the total cost for the vehicle will be a lot less.

Another problem with buying a car with bad credit that most people forget is car insurance. Your insurance premiums unfortunately are also based on your credit score. The combined monthly cost of your car and insurance could be challenging. Again, waiting until you have a good credit score will save you on insurance as well.

Here is an example based on $35,000.00 vehicle purchase at 20% versus 6% on a 5-year loan.

$35,000.00 at 20% interest you will pay over $15,000.00 in interest at 6% you will pay approximately $5,000.00 in interest. Quite a difference.

Your total cost for the vehicle is about $15,000.00 less in interest at 6%, and your monthly payment is approximately $250.00 less per month!

OK let’s play a little game, what if you took that $250.00 per month that you’re NOT paying in interest and invested it each month over the same 5-year time period with a 6% return?

Well you end up EARNING $3000.00 instead of PAYING $15000.00. I’d say that’s a pretty good argument for doing everything you can to avoid a high interest car loan.

Instead, put ALL your resources into getting your credit fixed. This will put you in to position to buy at a good interest rate with minimum money down. This will save you a ton of money and you won’t regret it!

Buy a new car or even a used car is never a good investment, but one you can’t avoid. Buy a car with bad credit, as you can see, is yet a worse scenario. Make sure you do whatever it takes to avoid this costly mistake.

If you considering purchasing a car in the near future and have some credit challenges be sure to check with one of our Credit Experts to see how you can improve your credit for the best interest rates and no money down options.

Adverse Credit Mortgage – Know Your Stuff, Part 2

In the previous article ‘Bad Credit Mortgage – Know Your Stuff’ Part 1, we looked at what a bad credit mortgage is and briefly looked at the differences between a ‘normal mortgage’ and a ‘bad credit mortgage’, in this article we are going to look at what could cause someone to have bad credit.

There are a plenty of reasons why adverse credit comes about and why someone with adverse credit would want to mortgage, and there are a huge number of lenders wanting to lend and specialist brokers able to offer excellent advice with their client’s best interest at heart, any broker who has spent more than a few years in the sub prime market will be familiar with the examples below of how bad credit comes about.

In no particular order:

Forced redundancy or drop in salary I come across this more than I would like to, through no fault of the borrower their income has been reduced, less money coming in means less money to service bills which can result in payments being missed, thankfully a lot of the people I speak to who have experienced this have managed to increase their income, but the damage to their credit has already been done.
Death or major illness in the family This is not as common but we have come across it, understandably everything else takes a back seat including paying the bills.
Separation or divorce Obvious to see why this would have a major impact on finances resulting in credit problems, especially if there are joint bank accounts, joint loans etc.
Self employment Being self employed can seem like a dream come true for many, the reality is that most people underestimate the work involved and the time it takes to generate sustainable income streams, the early months or years can often see peoples credit suffering whilst a new business is getting off the ground.
People simply take on too much debt Whilst this is a legitimate reason, I have found that most people were able to service the debts when they took them out, but something happened, hence they took on too much (in hindsight they probably wouldn’t have). There are obviously people who just keep stacking up debt after debt after debt and to hell with the consequences until they get to the point that they can no longer service the repayments and, whilst I understand the reasoning behind the sayings ‘they just kept approving my loans and credit cards’ or ‘the lender pushed it on me’, I would suggest that common sense be brought into the equation, I am all for a sympathetic ear but sorry folks, we have to draw the line somewhere.
You may be classed as a ‘non-standard credit risk’ According to Datamonitor, the independent market analyst, at least one in five adults in the UK are said to be non-standard. They may include the self-employed, unable to provide sufficient proof of income or people who have an outstanding county court judgment (CCJ) against them or have had their homes repossessed for non-payment of mortgage or some other form of bad credit.

From my experience the above would cover the main reasons someone may have credit problems. Looking at it deeper, such as the individual types of bad credit (defaults, CCJ’s etc) would take away from what we are trying to do here; whilst one or two of the situations may be familiar to you its blatantly obvious that no one article can cover all occurrences, however you may benefit from reading the article to follow which focuses on how your credit problems may be viewed by the lender and how the ‘credit crunch’ has generally effected the adverse credit mortgage products throughout the UK, we will briefly be covering the different types of impaired credit and how they may restrict any borrowing for mortgage purposes.