One of the benefits of a federal student loan is that after graduation you are given a six month grace period before you are expected to make payments. If you graduated or dropped below half-time status this summer your grace period is most likely about to end and your lenders may have contacted you already with repayment information. So why is it important to consolidate your federal student loans before your grace period ends?
For loans taken out prior to July 1, 2006 your interest rate is kept at the lower in-school rate during the grace period, generally .6% lower. When you consolidate your federal student loans your base rate is determined by figuring the weighted average of the current interest rates on all of your federal loans. By consolidating during your grace period you will lock in that lower in-school rate saving. Even just a .6% reduction in the rate can save you thousands over the life of your loan.
You can even retain your grace period if you wish, your consolidation application is completed but is held until just before the grace period ends. This is a good way to plan ahead and make sure you don't miss the lower rates. You don't have to remember when your loan is due, we will do it for you! For further information contact a loan consolidation expert at Federal Education Services 877-222-4727.
by Matthew Kelly
Sir Speedy Cash
Monday, January 29, 2007
Saturday, January 27, 2007
5% Down Vs. 10% Down - A Comparison
It has always been an issue for home buyers to save their down payment. Many people, on advice from various people wait to save 10%, rather than moving into the home sooner with 5% as a down payment This is not always a good idea. Let me explain;
We have 2 young couples, the Jones' and the Smiths. They both have the same amount of money to spend on housing and saving ($1000/month). From that $1000, they are paying their rent of $750/month, and saving the other $250 for their down payment. In fact they're identical people.
The Jones' and the Smiths are both looking to buy a $100,000 property. As such, they will need $5000 as a down payment if they purchase at 5% down, or $10,000 if they wish to have 10% as a down payment.
To date, they have both saved $5000 with which to purchase a property. The Jones' have decided to buy now and accept that they only have 5% as a down payment The Smiths' have decided to wait until they can raise 10%; thus saving themselves some CMHC costs.
What the Smiths' aren't realizing is that while they wait, the cost of the property is increasing... thus incrasing the amount of money they need as a downpayment.
They've also not taken into account that the money they are paying in rent is being thrown away, while they could have been putting that against their mortgage.
Sure, saving the CMHC fees is a good idea. But is it necessarily the right way to go? Not always.
If it takes the Smiths an extra 2 years to save up the extra money, the property could have increased by as much as $15,000 in that time.... meaning that they'd need more of a down payment, as well as having a larger mortgage than if they'd bought earlier.
If you'd like to read this article in full, including graphs showing the difference between the Smith's and the Jones' then go to our website at www.workingtogether.ca and review the article titled "5% Down Vs. 10% Down - A Comparison". You'll get the idea; and possibly save yourself a lot of money!
We have 2 young couples, the Jones' and the Smiths. They both have the same amount of money to spend on housing and saving ($1000/month). From that $1000, they are paying their rent of $750/month, and saving the other $250 for their down payment. In fact they're identical people.
The Jones' and the Smiths are both looking to buy a $100,000 property. As such, they will need $5000 as a down payment if they purchase at 5% down, or $10,000 if they wish to have 10% as a down payment.
To date, they have both saved $5000 with which to purchase a property. The Jones' have decided to buy now and accept that they only have 5% as a down payment The Smiths' have decided to wait until they can raise 10%; thus saving themselves some CMHC costs.
What the Smiths' aren't realizing is that while they wait, the cost of the property is increasing... thus incrasing the amount of money they need as a downpayment.
They've also not taken into account that the money they are paying in rent is being thrown away, while they could have been putting that against their mortgage.
Sure, saving the CMHC fees is a good idea. But is it necessarily the right way to go? Not always.
If it takes the Smiths an extra 2 years to save up the extra money, the property could have increased by as much as $15,000 in that time.... meaning that they'd need more of a down payment, as well as having a larger mortgage than if they'd bought earlier.
If you'd like to read this article in full, including graphs showing the difference between the Smith's and the Jones' then go to our website at www.workingtogether.ca and review the article titled "5% Down Vs. 10% Down - A Comparison". You'll get the idea; and possibly save yourself a lot of money!
Tuesday, January 23, 2007
Alternative Ways to Avoid Payday Loan
If you spend more than you earn on a regular basis, it is a bad practice. To overcome this situation, if you opt for a payday loan, it will be a "risky solution". Payday loan companies often take the advantages of your need and lead you in debt trap.
The most obvious disadvantage of payday loan is High cost. The APR of payday loan varies between 400% to 800%. Think about your investments even on a high interest stock, you can get an annual return of 20% to 30% for investment on a stock although investments on stocks are considered as "high risk".
So, consider about all the possible alternative ways before opting for a payday loan cash advance.
?Payday loan borrowing situation arises due to bad financial planning. I suggest you to prepare a realistic budget at the beginning of each month in order to keep the balance between your earnings and spending. Avoid unnecessary purchases. Also save some money each and every month. Your savings will be counted at the time of crisis. Consider taking help from a consumer credit counseling bureau.
?Ask your creditors to give you a favor by waiting until your next payday. If you can manage them to do so, you need not to borrow the loan and thus you can save 15-30 USD by not paying the loan interest!
?Use your credit card for making urgent payments. Usually credit card loan's interest rate is very low; even you have to pay nothing as interest if you repay the loan within a month. Again you save $15-$30 by not paying the loan interest.
?Ask your banker or a credit union for a short-term loan. The costs of these loans are such that you can easily afford.
?Ask your employer to provide you with a portion of your salary as advance so that you can cope up with your emergency bills.
?Consider in borrowing money from your friends or relatives. Actually for a time lag of 1-2 weeks nobody will prefer not to provide you the money (I strongly believe so!) unless you had a bad credit history with him or her. Thus you will meet your money requirements with no interest charges at all! Also think about the harassments if you can't be able to repay the loan at specific date to the payday lender!!
?Consider in making arrangements with your banker regarding withdrawal facility from your checking A/c in order to protect yourself from making extra charges on bounced checks. This facility costs you as little as $5.Sometimes no fee is needed at all!
?When you shop for credit, check the APR and other official charges of different credit offers. Thus you can avoid higher monthly charges with lower credit cost.
?Many social groups and communities provide urgent assistance either directly or by various social services programmes. For example, I can mention "Federal low income home emergency assistance programme" provides financial assistance to families with lower income.
?There are several loan companies who offer $500 to $100 loan to active in duty & retired military personnel. The APR of these military loans range from 34% to 40% which is 10 to 15 times cheaper than payday loan.
?There are also several Consumer finance companies that provide small consumer loans at a low APR of 60%, which is also cheaper than payday loans.
Do the homework when you are about to borrow a payday loan. Look for low interest payday loan. Gather all the knowledge about payday loan before borrowing it. For more detailed discussions on payday loan alternatives, visit http://www.ampmcash.com/loan-alternative.html. If you have any problem or query regarding payday loan, join our discussion board at http://www.ampmcash.com/talk/
Angelina Rosario is a contributing writer of http://www.ampmcash.com/. You are invited to visit her site for the latest on payday loan news and information.
The most obvious disadvantage of payday loan is High cost. The APR of payday loan varies between 400% to 800%. Think about your investments even on a high interest stock, you can get an annual return of 20% to 30% for investment on a stock although investments on stocks are considered as "high risk".
So, consider about all the possible alternative ways before opting for a payday loan cash advance.
?Payday loan borrowing situation arises due to bad financial planning. I suggest you to prepare a realistic budget at the beginning of each month in order to keep the balance between your earnings and spending. Avoid unnecessary purchases. Also save some money each and every month. Your savings will be counted at the time of crisis. Consider taking help from a consumer credit counseling bureau.
?Ask your creditors to give you a favor by waiting until your next payday. If you can manage them to do so, you need not to borrow the loan and thus you can save 15-30 USD by not paying the loan interest!
?Use your credit card for making urgent payments. Usually credit card loan's interest rate is very low; even you have to pay nothing as interest if you repay the loan within a month. Again you save $15-$30 by not paying the loan interest.
?Ask your banker or a credit union for a short-term loan. The costs of these loans are such that you can easily afford.
?Ask your employer to provide you with a portion of your salary as advance so that you can cope up with your emergency bills.
?Consider in borrowing money from your friends or relatives. Actually for a time lag of 1-2 weeks nobody will prefer not to provide you the money (I strongly believe so!) unless you had a bad credit history with him or her. Thus you will meet your money requirements with no interest charges at all! Also think about the harassments if you can't be able to repay the loan at specific date to the payday lender!!
?Consider in making arrangements with your banker regarding withdrawal facility from your checking A/c in order to protect yourself from making extra charges on bounced checks. This facility costs you as little as $5.Sometimes no fee is needed at all!
?When you shop for credit, check the APR and other official charges of different credit offers. Thus you can avoid higher monthly charges with lower credit cost.
?Many social groups and communities provide urgent assistance either directly or by various social services programmes. For example, I can mention "Federal low income home emergency assistance programme" provides financial assistance to families with lower income.
?There are several loan companies who offer $500 to $100 loan to active in duty & retired military personnel. The APR of these military loans range from 34% to 40% which is 10 to 15 times cheaper than payday loan.
?There are also several Consumer finance companies that provide small consumer loans at a low APR of 60%, which is also cheaper than payday loans.
Do the homework when you are about to borrow a payday loan. Look for low interest payday loan. Gather all the knowledge about payday loan before borrowing it. For more detailed discussions on payday loan alternatives, visit http://www.ampmcash.com/loan-alternative.html. If you have any problem or query regarding payday loan, join our discussion board at http://www.ampmcash.com/talk/
Angelina Rosario is a contributing writer of http://www.ampmcash.com/. You are invited to visit her site for the latest on payday loan news and information.
Friday, January 19, 2007
Getting a Debt Consolidation Loan
Should you find yourself getting in over your head with debt, you might be a prime candidate for a debt consolidation loan. These loans are designed for those with a heavy burden of debt, and are used to consolidate a large number of debts into a single manageable payment. The debt consolidation loan is used to pay off the other debts, leaving only the loan itself in need of repayment.
How much should I borrow?
Considering that a debt consolidation loan is designed to replace other debts, the amount that you borrow should be as much as you need to pay off the total sum of your outstanding debt. If you're unable to get the total amount that you need to pay off all of your debts, then you should at least borrow enough with your debt consolidation loan so that you can pay off your largest debts (and hopefully make headway toward the others.)
How much debt do I need to have before consolidation?
There isn't a set amount of debt that you must have before considering a debt consolidation loan; the loan is simply a way of handling debt that is reasonably beyond your ability to pay it back. Many debt consolidation loan companies offer loans of £50,000 or more, though a growing trend is to offer loans starting at £5,000 as well so as to take care of outstanding debts before they climb as high as the larger loans. Lesser loans can also be used as a debt consolidation loan, though they occasionally have other criteria that must be met (especially in much smaller loans.)
What collateral do I need?
As the bank or finance company will obviously be aware of your debt problem when you apply for a debt consolidation loan, you'll need to be able to supply collateral for the loan (meaning that you'll have to be able to guarantee the loan with some property that the lender could sell should you not repay.) The collateral can vary depending upon the amount of the loan as well as the lender, with the most common forms of collateral being automobile titles and real estate property deeds. As these are usually higher-priced items, using them as collateral allows for a larger debt consolidation loan? not to mention giving a greater incentive for repayment.
A debt consolidation loan can give you a new start if you can't handle all of the various payments you're expected to make that you can't afford. It's also a great way to pay off old debts that may have been turned over to collection agencies, and should be looked at as a viable option before considering more serious actions such as bankruptcy.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
How much should I borrow?
Considering that a debt consolidation loan is designed to replace other debts, the amount that you borrow should be as much as you need to pay off the total sum of your outstanding debt. If you're unable to get the total amount that you need to pay off all of your debts, then you should at least borrow enough with your debt consolidation loan so that you can pay off your largest debts (and hopefully make headway toward the others.)
How much debt do I need to have before consolidation?
There isn't a set amount of debt that you must have before considering a debt consolidation loan; the loan is simply a way of handling debt that is reasonably beyond your ability to pay it back. Many debt consolidation loan companies offer loans of £50,000 or more, though a growing trend is to offer loans starting at £5,000 as well so as to take care of outstanding debts before they climb as high as the larger loans. Lesser loans can also be used as a debt consolidation loan, though they occasionally have other criteria that must be met (especially in much smaller loans.)
What collateral do I need?
As the bank or finance company will obviously be aware of your debt problem when you apply for a debt consolidation loan, you'll need to be able to supply collateral for the loan (meaning that you'll have to be able to guarantee the loan with some property that the lender could sell should you not repay.) The collateral can vary depending upon the amount of the loan as well as the lender, with the most common forms of collateral being automobile titles and real estate property deeds. As these are usually higher-priced items, using them as collateral allows for a larger debt consolidation loan? not to mention giving a greater incentive for repayment.
A debt consolidation loan can give you a new start if you can't handle all of the various payments you're expected to make that you can't afford. It's also a great way to pay off old debts that may have been turned over to collection agencies, and should be looked at as a viable option before considering more serious actions such as bankruptcy.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Tuesday, January 16, 2007
Why Student Loans are Better Than Credit Cards
You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -
-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.
This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-
-Pay your balance each month to avoid interest charges
-Pay your bill on time to avoid late charges
-Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.
This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on how Student loans are better than credit cards at http://www.NextStudent.com .
My goal is to help every student succeed - education is one of hte most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.
http://www.nextstudent.com/
-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.
This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-
-Pay your balance each month to avoid interest charges
-Pay your bill on time to avoid late charges
-Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.
This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on how Student loans are better than credit cards at http://www.NextStudent.com .
My goal is to help every student succeed - education is one of hte most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.
http://www.nextstudent.com/
Sunday, January 14, 2007
125% Equity Home Loans
If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don't despair. A 125 percent equity home loan may be the answer.
A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,0�0 on the mortgage, this loan program would allow you to still borrow up to $25,000.
The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.
When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighborhood.
A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,0�0 on the mortgage, this loan program would allow you to still borrow up to $25,000.
The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.
When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighborhood.
Friday, January 5, 2007
No Credit? - You Will Need a Bad Credit Loan
So you have never taken out a loan? You don't have a credit card and you don't have a mortgage? You always pay cash? You're a student, a recent widow, a divorcee or from an ethnic minority group who have a tendency not to have any lines of credit? If you are any of the above then your credit score will not necessarily reflect your ability to pay as you have little or no credit history whatsoever. This will make it difficult to obtain any form of loan and in these circumstances you may have to take out a bad credit loan.
How prevalent is this?
Fair Isaac estimate that 50 million consumers do not have enough credit information on file to generate a credit score. This means that they are being turned away by lenders for things such as a personal loan.
Why does this happen?
Lenders will conduct a credit check. As there is little or no historic data available to measure the risk in loaning the individual money they will not meet their credit score criteria. More and more often, such consumers have to take out a bad credit loan to finance any large ticket purchases like cars as their credit score limits their financing options.
Is this fair?
It seems ludicrous that this is the case, but you have to look at it from the perspective of the lender. If someone walks into your bank or applies online to a lender for a loan, and their credit score is so low or does not exist, the automatic decision you would make is to reject the client. They appear to be too much of a risk.
Establish your credit history
The only way to remedy this is to start establishing a credit history. There are many specialist lenders who offer bad credit loans and bad credit car loans. They accept clients with little or no credit history far more readily. The bad credit loan will have higher interest rates than a standard consumer loan, but if clients make sure they pay on time and in full this will improve their credit score dramatically. They should just make sure that the lender does file credit reports, as not all of them do! In time, a credit score will be established and they can move on to apply for loans with much more favourable interest rates.
How prevalent is this?
Fair Isaac estimate that 50 million consumers do not have enough credit information on file to generate a credit score. This means that they are being turned away by lenders for things such as a personal loan.
Why does this happen?
Lenders will conduct a credit check. As there is little or no historic data available to measure the risk in loaning the individual money they will not meet their credit score criteria. More and more often, such consumers have to take out a bad credit loan to finance any large ticket purchases like cars as their credit score limits their financing options.
Is this fair?
It seems ludicrous that this is the case, but you have to look at it from the perspective of the lender. If someone walks into your bank or applies online to a lender for a loan, and their credit score is so low or does not exist, the automatic decision you would make is to reject the client. They appear to be too much of a risk.
Establish your credit history
The only way to remedy this is to start establishing a credit history. There are many specialist lenders who offer bad credit loans and bad credit car loans. They accept clients with little or no credit history far more readily. The bad credit loan will have higher interest rates than a standard consumer loan, but if clients make sure they pay on time and in full this will improve their credit score dramatically. They should just make sure that the lender does file credit reports, as not all of them do! In time, a credit score will be established and they can move on to apply for loans with much more favourable interest rates.
Wednesday, January 3, 2007
SBI sets up centre to monitor bad loans
State Bank of India (SBI) has set up a special Stressed Assets Resolution Centre (SARC) in Pune to monitor non-performing loans.
Narayanan Raja, SBI chief general manager for Mumbai local head office, said the bank would transfer all non-performing loans worth Rs 5 crore and below to this centre where they will be scrutinised and followed up by recovery officers.
About 35 branches in Pune and the adjoining Pimpri-Chinchwad will be covered under the SARC, said Arun Agarwal, deputy general manager for Pune.
"The central idea behind SARC is to relieve the branch-level staff from the work of following up with the defaulting units," Raja said.
The bank will get benefits from the centralised banking solution infrastructure it has put in place to monitor the loan assets, he noted. Raja further said the bank is planning to set up a network of processing centres for different operations and the front-end will be handled by the branch staff.
Setting up of SARC is part of this plan, he added. SBI will soon open similar centres in Aurangabad and Nagpur. The bank has already in place a Stress Assets Management Group to look after non-performing loans worth above Rs 5 crore. "With focussed effort, we hope to reduce the overall NPA level," Raja said.
Quoting the November 2006 figures, he said, the Mumbai circle had gross non-performing assets of Rs 900 crore (4.28 per cent) against Rs 25,000 crore of total advances.
The bank is looking at reducing this to 4 per cent by March 2007 and to bring down the net NPA levels from the current 2.28 per cent to 1 per cent by March 2007, he added.
BS Reporter / Pune January 04, 2007
Narayanan Raja, SBI chief general manager for Mumbai local head office, said the bank would transfer all non-performing loans worth Rs 5 crore and below to this centre where they will be scrutinised and followed up by recovery officers.
About 35 branches in Pune and the adjoining Pimpri-Chinchwad will be covered under the SARC, said Arun Agarwal, deputy general manager for Pune.
"The central idea behind SARC is to relieve the branch-level staff from the work of following up with the defaulting units," Raja said.
The bank will get benefits from the centralised banking solution infrastructure it has put in place to monitor the loan assets, he noted. Raja further said the bank is planning to set up a network of processing centres for different operations and the front-end will be handled by the branch staff.
Setting up of SARC is part of this plan, he added. SBI will soon open similar centres in Aurangabad and Nagpur. The bank has already in place a Stress Assets Management Group to look after non-performing loans worth above Rs 5 crore. "With focussed effort, we hope to reduce the overall NPA level," Raja said.
Quoting the November 2006 figures, he said, the Mumbai circle had gross non-performing assets of Rs 900 crore (4.28 per cent) against Rs 25,000 crore of total advances.
The bank is looking at reducing this to 4 per cent by March 2007 and to bring down the net NPA levels from the current 2.28 per cent to 1 per cent by March 2007, he added.
BS Reporter / Pune January 04, 2007
A College Loan will finance your education!
A college loan has given people all over the United States a chance to further their education, even if they are not making a lot of money. Education loans can be a big help in paying for college. You'll find these loans offer a low interest rate and a generous repayment period. Of course, student loans m�st be repaid, usually with interest, although some education loans have provisions for cancellation if the borrower performs a program-related service. If you are looking for a loan, be aware that there are many different types of loans. Try to find the student loan that fits you the best. For example, there is a loan called the Federal Stafford Loan. The Federal Stafford Loan is the most widely used loan in the student education loan program. Federal guidelines limit the maximum interest rate to no more than 8.25% and outline repayment terms of up to 10 years. Remember that if you ever need help or are falling behind on payments, consider a consolidate student loan.
Tips on getting a deferment for your College Loan.
If for some reason you are unable to meet your monthly payments, consider a college loan deferment. A deferment is a suspension of payments for special reasons. Usually, those who borrowed their first Stafford Loans after July 1, 1993, are eligible to defer payments if are enrolled in at least half-time at an eligible school, unemployed, in a graduate fellowship program, in a rehabilitation training program for people with disabilities, or suffering economic hardship. A college education is expensive, but with the right student loan you will be attending class without financial worry in no time!
By Mike Yeager
Tips on getting a deferment for your College Loan.
If for some reason you are unable to meet your monthly payments, consider a college loan deferment. A deferment is a suspension of payments for special reasons. Usually, those who borrowed their first Stafford Loans after July 1, 1993, are eligible to defer payments if are enrolled in at least half-time at an eligible school, unemployed, in a graduate fellowship program, in a rehabilitation training program for people with disabilities, or suffering economic hardship. A college education is expensive, but with the right student loan you will be attending class without financial worry in no time!
By Mike Yeager
Monday, January 1, 2007
When to Apply Personal Loan Rates
The question concerning when to apply personal loan rates may often appear during the course of a workweek. After all, most people who think of a personal loan equate that to an unsecured loan. Is that always the case? When does one need to differentiate between the rate for a secured and unsecured loan?
Distinction Between Interest Rates
Most lenders have a marked difference in interest rates on personal unsecured loans compared to secured loans. In some cases, the difference may be as much as three to four-percent depending on the lender, the amount of the loan, and the credit score of the borrower. On the other hand, some secured loans lack the ability to cover the entire basis of the loan, and raises a question concerning the lender's right to apply personal loan rates to a secured loan. In some cases, the lender may have a valid argument because other than real estate, any other type of collateral depreciates over time, so if you bought a car three years ago, by the time you finish paying for it, you may owe more on the car than it is really worth. What happens in the event that the car is stolen or totalled in an accident? The insurance company is going to pay market value for it regardless of your loan balance, thus leaving the lender holding the bag for the remainder unless there is insurance to cover the deficiency. You're still obligated to pay the balance, but is the lender obligated to still accept secured loan rates on a loan that is no unsecured?
Negotiation of Rate
In some cases, a lender may choose to apply personal loan rates for a secured loan for any number of reasons including the strength of the credit of the borrower. After all, a lender is not obligated to approve any loan as long as he follows company protocol and doesn't discriminate in an unlawful way. Why should he not collect a higher interest rate for some of the high-risk loans or if the collateral that a borrower pledged is not quite as secure as the lender would like it to be? The lender has an obligation to make sure that the money he loans has a good potential of being repaid. If he has any doubt about that, he is certainly within the realm of his jurisdiction to charge a higher interest rate if he doesn't feel comfortable with that and feels that the collateral does not provide him with enough security to cove r the transaction.
Exercise Caution
Of course, sometimes a lender may choose for any unknown reason to apply personal loan rates to a secured loan. In those cases, the borrower is within his rights to question why the lender feels the need to do that. Sometimes it is just an error in judgement, but in some cases, it is just the lender's way of getting more money out of the unsuspecting borrower. Therefore, you must be on your toes so that you know the rate you should be paying based on your credit score and the type of loan. Someone with a high credit score buying a two or thee year old car should certainly not expect for the lender to apply personal loan rates to that contract, so protect yourself and know the facts before you sign the contract.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
by John Mussi
Distinction Between Interest Rates
Most lenders have a marked difference in interest rates on personal unsecured loans compared to secured loans. In some cases, the difference may be as much as three to four-percent depending on the lender, the amount of the loan, and the credit score of the borrower. On the other hand, some secured loans lack the ability to cover the entire basis of the loan, and raises a question concerning the lender's right to apply personal loan rates to a secured loan. In some cases, the lender may have a valid argument because other than real estate, any other type of collateral depreciates over time, so if you bought a car three years ago, by the time you finish paying for it, you may owe more on the car than it is really worth. What happens in the event that the car is stolen or totalled in an accident? The insurance company is going to pay market value for it regardless of your loan balance, thus leaving the lender holding the bag for the remainder unless there is insurance to cover the deficiency. You're still obligated to pay the balance, but is the lender obligated to still accept secured loan rates on a loan that is no unsecured?
Negotiation of Rate
In some cases, a lender may choose to apply personal loan rates for a secured loan for any number of reasons including the strength of the credit of the borrower. After all, a lender is not obligated to approve any loan as long as he follows company protocol and doesn't discriminate in an unlawful way. Why should he not collect a higher interest rate for some of the high-risk loans or if the collateral that a borrower pledged is not quite as secure as the lender would like it to be? The lender has an obligation to make sure that the money he loans has a good potential of being repaid. If he has any doubt about that, he is certainly within the realm of his jurisdiction to charge a higher interest rate if he doesn't feel comfortable with that and feels that the collateral does not provide him with enough security to cove r the transaction.
Exercise Caution
Of course, sometimes a lender may choose for any unknown reason to apply personal loan rates to a secured loan. In those cases, the borrower is within his rights to question why the lender feels the need to do that. Sometimes it is just an error in judgement, but in some cases, it is just the lender's way of getting more money out of the unsuspecting borrower. Therefore, you must be on your toes so that you know the rate you should be paying based on your credit score and the type of loan. Someone with a high credit score buying a two or thee year old car should certainly not expect for the lender to apply personal loan rates to that contract, so protect yourself and know the facts before you sign the contract.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
by John Mussi
Subscribe to:
Posts (Atom)
