I have always emphasized the importance of financial education and learning finance. One of the things that came to my attention is how ignorant people are when dealing with the finance. One of my clients was looking to take up a boat loan. Well he could get a boat loan, not an issue, there are so many banks and other financial institutions ready to give loans for exactly this purpose, buying a boat. But that person almost never made his past payments on time and even had a defaulted on a loan just because he did nt want to pay back. So what he needed actually was bad credit boat loans.
What he did nt understand was the credit history. He did nt actually know the concept of credit history of an individual, this is one of the most important aspect related to an individual’s credibility. As with boat loan or any other loan or mortgage, a lender always makes a check of the borrower’s credit history, whether the borrower has the capability to pay beck the loan on time, whether he has been paying his past payments on time. A good credit history can mean that you qualify for a loan easily and can get a better deal than others on your loan if you can negotiate on it. A bad credit history means it can be tough for you to qualify for a loan or if you qualify it would be expensive to get a loan. The interest rate would be higher as the lender has more risk on giving you a loan. Bad credit boat loans is also possible, there are not too many lenders giving bad credit boat loans but still there are some who specialize in such loans.
read more »
Personal loans are one of the most common of the credit given by the financial institutions. This is way to get funds when you are in need and you can put the money to any use you want, it could be a necessity of it may be for other purposes. If you have a bad credit the more problems you will have getting a personal loan. Infact you will be approved for a secured loan because of the high risk assocated with the bad credit report. It can be secured by putting any asset as a collateral which can cover the payment incase of a default.
There could be many reasons for a bad credit, one of the reason could be bad handling of the funds or mismanagement of money. Other reasons can be death of the earning member in the family, layoffs or even medical emergencies which are expensive but can not be avoided. Layoffs are very common when the economy is down and the foreclosures are also on a high so it is a tough financial situation for a lot of people.
There are many lenders which specialize in giving loans to anyone with bad credit as it can happen to anyone even the responsible people. Most likely the interest rate would be a little high because of the high risk involved. Getting a personal loan and paying it back will also help you rebuild your credit again. You should try and make the payments on time as this is a good way of building up your credit in future.
However you should be a little cautious while applying for a personal loan especially if you are doing it online. Never agree to pay any processing fee for personal loan as it is also against the law for a lender to ask for processing fee. Most of the lenders know that a person who wants a loan on bad credit is in great need and they can turn it into their interest so be careful and if you are suspicious don’t apply for a loan with that lender.
read more »
A very important factor to run a business is the capital. You need the finance or money as the capital to start or expand a business. A lack of funds or liquidity can seriously affect the business efficiency in almost every respect. Now not all people or entrepreneurs have good amount of funds to back their business. Then arises the need of arranging it from the money market in other words getting a loan or a business loan. There are a lot of options to get loans you can get a loan for everything you need. Business loans and home loans are most common of them.
Small business loan or finance can be secured or an unsecured one. A secured loan will be a loan with some asset of the borrower as the collateral which means lesser risk for the lender in case of a default. So the terms of the loan would be favorable to the buyer in this case. The unsecured loan is just the opposite when there is no security kept by the borrower, so the risk is entirely upto the lender and more the risk of the lender, the expensive the loan would be in terms of rate of interest.
read more »
I strongly believe that learning is a lifelong process, the day you will stop learning will be the day you will stop growing. Learning becomes all the more essential when it is about finance. Everyone should know the meaning of financial terms and know how money works. Loans mortgages are just the financial tools which you can use to your advantage once you know how to work them out in the right way. Most people would see a loan as a liability, that’s true because you have to pay it back it does cost you but still it is a money tool and you can use it to your advantage.
If a person does not know about the finance part of his life, the people and the situations he comes in touch will always take unfair benefit out of him or make him pay for his ignorance. And this ignorance cost can be really high. I always tell everyone to go for the best education they can afford. That is one of the best investments they can make for their children, this is one thing that will empower them for a lifetime.
read more »