High Interest Loans: Costly Yet Helpful
Friday, March 11, 2011
High interest loans are the loans availed at a bit higher interest rate and prove to be generally beneficial to the people who find it difficult to get their loan application approved because some of their bad past financial experiences. For those who have suffered from bad credit history or have certain defaults of payment on their name can go for these loans as they become easily available. Also for those who don't have collateral or don't wish to risk their property can go for unsecured loans which also have a bit higher interest rate. At the first sight the interest rate might bother you but you have to choose it when you can't find a lender for you. In the due course you can improve your financial status using the money you get from this loan.
High Interest Loans: some facts and figures
Under these loans you can borrow anything around £500-£250,000 depending on various factors. The amount that can be borrowed depends on your credit rating, your ability to pay back, certainly on the lender, type of the loan (secured or unsecured) etc. Interest rate can be fixed or variable (APR). Typically high interest rate loans are available at 7.7%APR. However, the interest rate can vary from 5.0%APR to 19.9%APR. If you opt for variable interest rate then make sure that you get the best deal. You must go for the cheapest APR.
Then you need to be careful weather the interest rate has chances to go up or come down. Also you can bank upon the traditional lenders (Banks) in case you get a better deal. Check out all the extra payments included in your APR. Last but not the least; be careful on the repayment tenure. Repayments are the most important part of any loan and you have to make sure that you don't make any defaults in repayment. Find out all the possible parries you can get on repayments. You make overpayment if possible, can get some benefits like holiday repayment, underpayments etc. So, explore all the possibilities and then decide about the offer that suits you the most. In case of defaults you can be deprived of your property that you used as collateral while opting for a secured loan.
High Interest Loan: application process
The process of application is very simple. You need to put your application online and your application will be forwarded to various lenders. You have to just look at the best available offer for you can then cash upon that. High interest loan can be of both kinds: secured and unsecured. People with any kind of credit history can avail high interest loan.
To understand the importance of high interest loan you must not look at the interest rate of these loans. As these loans are basically meant for people with bad credit history or those who want to opt for an unsecured loan there are always some risk with the lender to get back the amount, they compensate for this risk by hiking the interest rate.
Bad Credit Loans from Credit Unions
Thursday, March 10, 2011
Bad credit loans from credit unions assist people who do not want to get stuck with bad credit on their credit files. A clean file is surely the way go to. That is why people who have bad credit find many ways to clean up the mess and get on with their normal lives.
Credit unions are financial institutions that have been formed so as to provide assistance regarding financial matters. Most of them are in the business of helping out rather than gaining profit. And through providing and offering bad credit loans, among the many other services they provide, they are able to assist people one way or the other.
According to a couple of studies done by various organizations, credit unions have been constantly lending a hand to people who are trying to work their way up and clean their financial records as they go along. These credit unions are providing more assistance and more bad credit loans to people who have lower incomes.
Of course, each of the programs has its own set of requirements and specifications. Each has been designed and carefully thought out so as to fit the needs of their clients. There are requirements that one should qualify for, though. The rates are usually much lower compared to other sources of bad credit loans. Repaying the loan is usually planned so as to give the person the chance to be able to pay and at the same time balance the money on hand.
If you are interested in applying for a bad credit loan from a credit union, try to go over each program that the various credit unions offer. You can check and compare which loan will better suit your financial status as well as your ability to pay.
The Truth About No Doc Loans
Wednesday, March 9, 2011
No doc loans are great. I had the pleasure of using them last year and let me tell you they just about saved my business. You see I have my own business, and I have my own office in my home which means that I have no boss, no one to answer to, but also I have no guaranteed pay check. If you do not have a guaranteed pay check or a proof of income every month then it can be hard be get a loan and no doc mortgage loans seem to work.
Basically no doc loans mean that you are not required to provide documents for proof of employment or income, etc. This is great for someone like me who has their own business because I don't have any proof of income, my income changes from month to month. For someone in my situation (because I am my own boss) most banks and other lenders would just show me the door but with no doc loans I can get the money that I need. Most lenders will want to be sure that I will have money coming in every month in order to pay off the loan but because I have no employer in that case then I would be out of luck.
A no doc loan came in handy for me when my delivery van broke down. It was a write off and I needed to buy another one. There was nowhere near enough money in my budget to buy another delivery van but at the same time I needed to have a delivery van, it was essential for my business. So I did some research and found out that for a guy in my case no doc loans was the answer. With these, whether it's no doc mortgage loans or personal loans, you will have to pay a bit of a higher interest rate because really the lender is taking a big risk on you but really what other option do you have right?
The loan saved my business because without a loan I would not have been able to make deliveries to my customers, and once those customers become angry then you are out of business. So you can see that it wasn't a choice for me, I needed a loan and fast. In other words, if no doc mortgage loans didn't exists, then I would have probably been out of business for at least a week or two and I couldn't take the risk of losing my customers. In my business just like many others nowadays you will find that if you cannot deliver on your promises then your customers will go to someone that can.
Loans By Post-Dated Checks
There is no escaping from financial crises. They can lay down the best of us. Being prepared for them does help. But one can never predict when emergencies shall take place. They arrive on the scene just when we least expect them, leaving us in a quandary. And most kinds of emergencies generally take a toll on our income and our savings. Yes, we can try and minimize the damages beforehand by making sure that we save enough every month in case of a rainy day. We can budget our monthly expenses effectively to ensure that none of our hard-earned money goes to waste. We can cut down on our wasteful expenses. Yet, in the case of a serious financial emergency, these steps can only ensure that we do not get crushed under the burden of a cash crunch.
If we are faced with a major financial crunch, there are many things that we can do. We can ask one of our friends or relatives for a loan to tide us over till payday comes around. We can try obtaining a cash advance on our credit card to help pay off the necessary bills. We even have the option of requesting our creditors to extend the time period that is normally given to pay off a certain bill. However, some bills cannot be put off. Sometimes, it is difficult to get a loan from a person that we know. And sometimes, cash advances may not be an option. At such times, if pay day is still far away, it makes sense to go in for a payday loan.
Payday loans provide fast cash to the person in need. They require very little documentation, and can be availed of almost immediately. The payment is made via a postdated check for the loan amount and the fee that is charged by the lender. The good thing about payday loans is that they can be secured at lightning speed. Moreover, there is no need to take a favor from someone that we do not know too well. Only a few formalities stand between applying and getting the loan amount. Moreover, if the financial crisis does not disappear within the period of the loan, the loan can be rolled over for a few more weeks. However, the high interest rates charged by payday loan providers are quite high. Thus, it is advisable to not rollover the loan but to pay it off as soon as possible. After all, even convenience has its price.
