Are You Financially Prepared for the Future?

Regardless if you are making plans for retirement or simply trying to prepare for a better future, financial planning can keep you headed in the right direction. Setting budgets, saving on a regular basis, and reevaluating how you spend your money are each great ways to get started.

What is it you want to do

Any time you are making plans for the future when it comes to money, the first thing you want to establish are your goals. What is it you want to accomplish? Do you want the number to be larger that represents your savings account?

Is retirement a part of the near future? Would you like to move across the country and enjoy the golden years on the coast? Maybe buying a smaller home or simply paying off the one you are currently living in is what you are aiming for?

When making these plans, it helps to have a number in mind when it comes to the age in which you would like the plans to go into effect. Once you have decided on this, you will be able to get a better idea of how much you need to be saving every month. By putting away a specific percentage of your monthly income, it becomes easier to meet the goals you are setting out to accomplish.

There are plenty of options when it comes to investing your money for the future. You will need to spend some time researching which of these resources will provide you with the most value. Maybe it would be worth the risk to put some skin in the game in the stock market. Maybe an IRA or CD at your local bank makes more sense for what you are wanting to do.

Are you in need of life insurance?

For many people, financial planning isn’t about what you want to do as much as it is making sure someone else will be taken care of in the event of an accident .If this is the planning you are doing, than you may want to spend some time deciding which type of life insurance would best suit your needs.

If you are looking for a policy that is easy to understand and won’t cost nearly as much money, a term life policy might be exactly what you are looking for. Keep in mind, these policies always have a an end date, so you will need to decide how long you will need the policy. Terms will usually range from 10, 20, often as many as 30 years.

They are designed solely for paying a beneficiary of your choice in the event of an untimely death. Other than this, the policy has no other value. With most term life policies, both the benefit and the premium will remain the same throughout the duration of the policy.

While term life is only one of several options when it comes to insurance policies, it is often the most sought after because of its simplicity. The most significant thing to keep in mind while making a decision on the type of policy you want is to look around for what makes the most sense for what you are trying to accomplish.

You Can Get an Unsecured Personal Loan Online

There comes a time on the average person’s life when a personal loan is necessary. You can lose your job, your car, or simply need some extra capital because of a delayed paycheck. The secured loan is one option, but it requires you to put up your home, car of valuable item in return. If you can’t pay the loan back, then you lose whatever you put up.

What you really want instead is the unsecured loan. Specifically, a selection of low interest unsecured personal loans online with instant decision. With a bit of research, these aren’t terribly difficult to come by – but always keep in mind that the interest rate is indicative of the risk the lender is undertaking in lending to you. As such, perform due diligence as to how reputable the institution is.

Is a Personal Loan Necessary?

There are quite a few reasons for which you might need a personal loan. For example, if you have high-interest credit card debt, then a personal loan can take the form of a consolidation at a lower rate of interest. Indeed; even if the APR on your credit cards are pretty good, debt consolidation via an unsecured credit card loan is treated differently on your credit history – it’s an installment debt that does not count negatively towards your FICO score. And as we all know, having all your bills in one place sure makes it easier to pay them on time.

What Rates Can You Expect?

This, of course, depends on your credit history and score. If you’re in the good-to-excellent range of 720 and higher, then your risk is deemed very low – lenders see you as eminently trustworthy with credit. You can get rates between about 6% and 10% as a result (for a personal loan). Compare this to credit card rates for the average person, which can have annual percentage rates as of 22% on average.

Being able to shift such your debt from such a high APR to the lower one provided by unsecured personal loan reduces the burden of your financial responsibilities significantly. The following provides you an idea of what each credit score bracket entails for your finances if you borrow $10,000 for a loan term of three years:

  • Poor credit, at an APR of 25%, entails a monthly loan payment of $398
  • Fair credit, at an APR of 10.66%, entails a monthly loan payment of $326
  • Good credit, at an APR of %4.29%, entails a monthly loan payment of $297
  • Excellent credit returns the same as good credit, for many lenders, so the numbers are the around the same.

How to Get the Best Unsecured Personal Loan

Try to pay down your current accounts, If you’ve got a lot of outstanding debt on your various credit cards, then paying these down on time can have a huge effect on your credit score. This factor eats up as much as 35% of the pie that denotes your overall creditworthiness.

The length of time you’ve had a credit history also matters a big deal – around 30% or so. This improves as you continue to pay on time, and avoid opening new accounts that aren’t necessary. Consolidating your debt also contributes positively to this because, as mentioned above, this new type of installment debt lowers the outstanding amount without being counted as a newly opened account.

When and How to Apply for your First Credit Card

Getting the first credit card is tricky because you cannot build credit without credit. Where should you start? Nowadays you need credit for almost everything from renting an apartment to purchasing a cell phone.

Fortunately, the best time to build your credit is when you are still in school. Here are some important facts that you should know before applying for your first credit card:

Get a student credit card

Credit scores are usually made up of several factors, including your credit history. If you have no credit history, you might also lack a credit score because credit bureaus do not have any means of determining your ability to pay bills on time or repay loans. However, the easiest way to build your credit is by applying for and using a credit card responsibly.

Find the best credit card

You should remember that not all cards are the same. Each one comes with different features, rates, fees, and benefits. If you think you can repay your balance in full every month, consider maximizing your rewards by applying for a student rewards card.

With some rewards cards, you can earn your cashback on every purchase. However, you should remember that rewards caps as well as other exclusions exist. Will you carry a balance? If you think that you will, you should look for a low-interest credit card.

Several student credit cards have a 0-percent APR introductory offer that lasts six to eight months. This card will allow you to pay for large purchases over time while avoiding interest rates. Just research all your options to find a card that offers low rates of interest, cash rewards, no annual fee, and a reasonable credit limit.

When applying for a card, be sure to pay attention to the billing cycles if you hope to avoid extra fees. Some students credit cards also offer online tools that can help you to manage and track your spending. To get the best card for you, make sure that you compare student credit card reviews online.

Getting approved for a credit card

You must be at least eighteen years old to apply for a credit card. Are you under the age of 21? If you want to apply for a credit card, you must prove that you have independent assets or income to show that you can repay your debt. If you fail to get approval, you can also become an authorized user on your parent’s account.

Do you have a part-time or fulltime job? You might have enough income to be approved for your own credit card. However, you have to pay the credit card bill on a monthly basis.

Authorized credit card user

Are you an authorized user on another person’s account? You should enjoy the benefits of using it without the responsibility of having to pay back the balance. If your credit history is insufficient, you can build your credit by becoming an authorized user because your account use might be reported.

However, you should ensure that the account owner keeps up with his payments since any negative reporting will appear on your report.

Secured credit card

If you do not qualify for a traditional credit card, you should consider applying for a secured credit card. This card can help you to build your credit history enough so that you can qualify for a traditional credit card. To get a secured credit card, you need to put down a deposit.

When you put down a deposit, the card works like a traditional credit card. However, unlike prepaid credit or debit cards, you can build credit.

 

Peer-to-peer loans: how do they work?

P2P lending is a way of borrowing without going through a credit union or traditional bank. If you need a loan, you should consider P2P lending when shopping for a loan. Do you have good credit? The rates for this loan can be very low for you.

However, if your credit is bad, you can also get an affordable peer-to-peer loan from an online lender.

What is P2P lending?

Investors and individuals instead of banks give P2P loans. Persons who have extra money to lend choose to loan it to others who need it. P2P services such as websites match a lender with a borrower, making the process of borrowing easier for both parties.

Benefits of borrowing from peer-to-peer lenders

Peer-to-peer loans are not always better than credit union or bank loans but they have a few features that make them a great choice:

Low costs

When taking out a P2P loan, you can do it at a relatively low cost. You just need to pay enough interest to keep the lender happy: it goes towards compensating your lender. With credit union and bank loans, the overhead costs for large workforces and branch networks, make loans more expensive.

For this reason, P2P loans are a better option than using credit cards. When taking out this loan, you should expect to pay an origination fee of between 1-5 percent of your total loan amount. Compared to personal bank loans, this fee can be high, but it is much cheaper than that of taking out a second mortgage.

Quick and easy

Shopping for loans is not that easy. After application, you have to wait to hear back from the bank or credit union. P2P borrowing eases some of this pain because the application process is easy and you do not have to wait that long for approval.

Although the actual funding takes a few days longer, at least you will not have to sit around wondering whether your loan was approved.

Blemishes in your credit can be tolerated

In a world where lenders are unwilling to loan money to people with bad credit, P2P lenders are an attractive option. However, your FICO score needs to be good – having a score in the mid 600’s is best. Just remember that the worse your credit is, the more you will have to pay for your loan, as is the case with most loans.

Types of P2P loans

This loan started out as an unsecured, personal loan that you could borrow for any purpose and collateral was not necessary. It is still the most common loan type because of its flexibility: you can use the money to consolidate debt, do home improvements, or buy a new car. Do you want to borrow money to fund higher learning? You need to let the lender know.

Over time, specialized P2P lenders have begun offering loans for particular uses – such as for business startups – and loans that need collateral to secure them.

Popular P2P lenders

The number of P2P lenders is always growing, but Lending Club and Prosper.com popularized this concept. When looking for this loan, you should consider getting a quote from both of these sources. Whatever you do, make sure that you read reviews for top peer to peer business loans for poor credit when looking for business loans.

Only apply to reputable lending services because you will be providing sensitive information that you do not want to get into the wrong hands. If you fail to qualify for P2P loans, you should try your luck with other online lenders who specifically deal with bad credit borrowers.

 

4 Amazing Benefits of Having a Good Credit Score

As you go through your daily errands, you might want to stop and take some time to think about your credit score. Is it good enough or does it portray you as someone that is a bit off the edge?

In real terms, a good credit score will save you a fortune of your money despite the fact that one can still survive with a bad one. To be honest, who wouldn’t want to have privileges when it comes to acquiring a loan in funding your business or even a mortgage on your future house?

According to American statistics carried out by FICO, the majority of Americans have exceptional credit scores which just show you how wise they have become overtime. With this in mind, it’s important to consider the following benefits that come with having a good credit score.

  1. Advantage in negotiating

You may be in a situation where you urgently need a loan but the interest rate given could be ridiculous. However, this shouldn’t alarm you as your good credit score will be your savior! Just by referring to some of your previous offers from other companies that are centered on your credit score.

Fortunately, you might be surprised even to get one of your lowest interest loans ever if you get lucky enough! Regrettably, you might also be in a situation where your credit score is either bad or even worse.

In this case, you should at least try to discover if debt relief programs hurt your credit by checking out the appropriate sites that could be of great help.

  1. Avoid nagging limits

Another point to always keep in mind is that money is always a necessity and it can never be enough. The good thing with having a good credit score is that you can always ask for higher amounts, simply because of having a decent score on your credit.

This is a direct illustration that you are able to not only pay all the amount given but that you are also able to pay the whole amount in a timely manner hence making the process stress -free!

You may still acquire a good loan based on a bad credit score, but the amount will definitely be limited. This is what you should avoid because it eventually limits one’s money power in whatever process you may be involved.

  1. Improved car insurance rates

Insuring your car is essential. In countries such as the United States, insurance rates have always proven to be a nuisance that makes you dig into your pockets.

It is only wise to save more money by having a good credit score which will eventually help you to get convenient car insurance rates that won’t be as hard to pay. In the long run, you might discover that you’re saving a whole lot of money which can be used for many other needs.

  1. Quick authorization on rental houses and apartments

As you’re relocating, landlords will definitely not overlook a bad credit score. You should keep in mind a good one will display the best first impression.

This is mostly dangerous if it’s based on a previous outstanding rental balance and you could find yourself homeless.

It is also important to note that despite the advantages of having a good score, you can still rent on a bad credit score.

In general, having a good credit score will save you a lot of time and energy. There is absolutely no reason to want this even though you can still hack halfway through with a bad one.

 

How to Consolidate Credit Card Debt

Are you deep in debt? You need not worry; many Americans are in the same boat. Debt consolidation refers to the merging of different unsecured debts such as payday loans, medical bills, and personal loans into a single payment. Instead of writing checks to multiple creditors, you only have to write to a single one.

Doing so will help you to avoid mistakes that result in penalties such as late payments. There are three types of debt consolidation: debt settlement, debt management plans, and debt consolidation loans. They offer long-term solutions that will get you out of debt.

What is the best way to consolidate debt?

Depending on how much you owe, there are several ways to consolidate debt. If you have a credit card debt under 30,000, you can transfer it to the 0-percent APR credit card. You should also consider getting a personal loan to repay your balances.

Moreover, you could refinance your mortgage or get a home equity line of credit. You can also consider borrowing against your retirement savings or life insurance policy. If you have a large debt, the best way to handle it without taking out another loan is by enrolling in a debt management plan. Whatever you do, make sure that you enroll in debt consolidation programs that are government approved.

Debt management plan

According to most financial experts, a debt management plan is the best way of consolidating your debt. When you choose this option, you will attend a credit counseling session that will help you to figure out how much you can put towards debt repayment each month. The best debt management plans are run by non-profit agencies, which will help you to get lower rates of interest from creditors.

How does it work? You will send one payment to the agency and it will split it amongst your creditors. This debt consolidation method might affect your score but at the end of it, you will be debt-free and improve your score.

Debt consolidation loans

This loan allows you to make a single payment to one lender instead of sending multiple payments to several creditors. The debt consolidation loan you choose should have a fixed rate of interest – which should be lower than the one you were paying – to reduce your monthly payments. Different types of debt consolidation loans include home equity loans, personal loans, and zero-interest balances on credit cards.

Such loans give you an easier way to track your finances by bundling your bills into one single payment. However, you might end up facing a longer repayment period.

What is bill consolidation?

This is an option for eliminating debts by combining all bills and paying them as a single loan. With this option, you only have to make one payment, which is a good idea for those who have multiple separate payments.

How to get a loan consolidation

Credit unions and banks are good places to enquire about loan consolidation. However, borrowing from online lenders might be better. Before deciding which method you should use, list all the debts that you want to consolidate: medical bills, phone service, and utilities. Moreover, you need to know your credit score.

When you have this info, you need to start comparing the lender’s rates, fees, and payment duration before you decide. A consolidation loan will lower your monthly payments and offer a feasible way to get rid of debt. You can consolidate credit card debt on your own by applying for a 0-percent APR credit card.

This introductory rate lasts for 6-18 months and paying during this period means lower monthly payments.

Exposing Today’s Biggest Credit Repair Myths

If you’ve spent any time at all online researching credit repair, you probably realize that there is a lot more information available than you may have thought.

Unfortunately, some of this information is very misleading. In fact, it can be categorized as misinformation or myth. With that said, let’s now take a look at some of the biggest credit repair myths and expose them for what they are today.

Myth #1: Credit Repair Will Never Work

Some people have unfortunately tried to repair their credit, but since they did not know the art and science needed to make the necessary changes, they automatically assume that it doesn’t work.

Nothing could be further from the truth.

While it certainly isn’t the easiest thing to accomplish, credit repair is certainly possible, and when done correctly you will be able to turn a bad credit score into an acceptable one. And with enough time, patience, and effort, you’ll be able to raise your credit score to the highest levels.

For starters, many credit reports are currently filled with errors. As a matter of fact, it’s estimated that around 80% of American credit reports (four out of five) actually contain errors.

By having these errors removed from the report, you will immediately have a positive impact on your overall score. And that’s just scratching the tip of the iceberg. So, it is certainly possible to improve your credit score. This is a myth that many people unfortunately believe to their own detriment.

According to CreditRepairServices.co, a website dedicated to helping you decide whether you should use a service to repair your credit or not, “To dispute an item on your credit report, you must submit requests in writing to both the reporting agency and the information provider.”

Myth #2: It’s Impossible to Remove Verifiable Negative Information from Your Credit Report

This next statement is almost true some of the time, but it’s definitely not true all the time. And if you take it literally, you are going to be misled.

As an example, let’s say that you have a negative item on your credit report. And let’s assume that this negative item can certainly be verified. Just because it can be verified, doesn’t mean that it actually will be by any stretch of the imagination.

The Fair Credit Reporting Act says that a credit bureau has to investigate and then verify within a reasonable period of time in regards to any item that you have a dispute with on your report.

If information is discovered to be inaccurate, or it’s impossible to verify it, then the reporting agency has to promptly verify the information. Looking at this from the context of the reporting agency and the expected reasonable timeframe, they will literally have 30 days to make the verification.

And if they cannot, then they have to legally remove this negative information from your report altogether.

Myth #3: You’re Going to Get Scammed If You Deal with a Credit Repair Agency

Some people unfortunately have it in their head that each and every credit repair agency is a scam. Unfortunately, this industry gets a bad rap because there are some agencies out there that are willing to scam people. But that doesn’t mean every agency is filled with scammers.

On the contrary, there are plenty of great companies out there that help lots of people repair their credit scores. It all comes down to doing your research to find a great company that will stick with you throughout the credit repair process.

Conclusion

As you can see, there are some serious myths in relation to credit repair. Do your best not to fall for this misinformation any longer.