Jugging numerous credit cards can be difficult. If there are several small credit cards, or a large balance that can be transferred to another card it may save a great deal of money. For instance, some new credit cards will offer a 0 percent interest rate just to transfer a balance to their card. If the balance transferred to the new card is around $8 thousand dollars and the interest rate is 18 percent, this has the potential to save a credit holder over $1 thousand dollars a year in interest alone. Some view this is a big hassle, but it could be well worth the effort just to make a simple transfer. When transferring to these companies with introductory offers, it is important to remember that the internet rate will not always be 0 percent. In fact, the interest rate could be more than the initial 18 percent that was being paid, so proceed with caution and read all the fine print.
There are many credit card companies to choose from. Some will charge an annual fee while others will not. If a person has good credit, they should be able to find a company that will not charge them anything. Those with poor credit often choose second rate lenders who can charge as much as a few hundred dollars in annual fees. The average annual fee is $50. On top of annual fees, some credit card companies will charge a balance transfer fee, but this fee should never be above $100 .The average balance transfer is three percent.
When the cards offer an introductory interest rate, they will expect the payments to be made on time. Reading the fine print it is often discovered that if a payment is late, the generous interest rate will revert to the original card rate and or a fine. While everybody should try to pay more than the minimum payment, at least paying the minimum will avoid additional charges and penalties
Another reason to transfer a balance is for perks. Those who fly frequently or participate in gas saving can also add up big. With the price of gas and airline flights those perks can spell big savings and be worth the balance transfer fee. Some cards will give a percentage back of the amount of money spent with them, which can add up to gift cards and other nice benefits. Having free gift cards and other benefits can add up big, especially during the holiday season.
The only thing to be weary of when transferring a balance is the debt to ratio. Having too many accounts open and or closing an account can impact the credit score. The FICO is measured on how close to being maxed a credit card is. If a person transfers all their balances to one card it may put that card near the limit. Having even one credit card that is maxed out can means a drop in the credit score. Balance transfers are great options but proceed with caution.
This article was provided as a resource from the lending experts at short term loans, a leading consumer finance website dedicated to helping consumers make sound financial decisions.
These days almost anyone can suddenly be met with financial hardships. Unexpected medical bills, car trouble, an unforeseen unemployment and plenty more factors have led millions of Americans to suddenly find themselves in need of cash with nowhere to turn. And as things get worse so does your credit score, which means opportunities to borrow money get fewer and further between. It’s a vicious cycle that’s hard to break out of and one of the reasons certain less-traditional methods of lending money have become so popular. One of these methods is auto title lending. It is a form of loan, usually with high interest, that uses an existing automotive title as the collateral with which someone can borrow against. That way anyone who owns a car and has the valid title to it in their name can immediately borrow a sum of cash regardless of whether they have bad credit history. To understand how this is possible and why auto title lending is available to borrowers with bad credit scores we must first understand how a traditional loan works.
Normally an American who needs to borrow money in a pinch will turn to traditional bank loans. These require a credit application at which time the bank will assess the credit score, borrowing history, amount desired for the loan and risk of getting it paid back in timely installments. This helps make a decision about whether to finance the loan, offer a lesser amount or a worse interest rate, or turn down the applicant outright. For those with bad credit a traditional bank loan is simply not an option. There is to much risk in a down economy and no lenders will finance loans to someone with a spotty financial history.
However auto title lending is available to borrowers with bad credit because most of the time an auto title loan does not even require a credit check. That’s because the auto title itself is used as the collateral, as in the title is what the applicant is borrowing against. In a bank there is no collateral. The loan is given based on the good faith of the borrower’s past finances. But when an auto title is used there does not have to be good faith or a good credit history, because if the borrower fails to repay as agreed the auto title is taken instead as a backup. While this enables even those with very poor credit scores to get loans in a pinch it also puts them in a bind. If they fail to pay and default on the loan it will be reported to a credit bureau and the score can be affected. But the lender will also legally seize the auto title and have the car repossessed. Combined with the fact that auto title loans typically come with much higher interest rates and less of a maximum amount you can borrow it’s clear they are far less desirable than a standard bank loan. But because of the reasons listed that allow them to be available to those with bad credit they are often the easier, and sometimes only, choice
Don’t let the holiday stress get you down, take advantage of a personal loan with special incentives!
All Americans know the feeling. When the air starts to chill and the car takes an extra turn of the key to get started. That’s right, it is winter, and better yet – it is time for the holidays! The holiday season is a time when every American can get excited. We have Christmas Trees, Thanksgiving turkeys, sledding and football. It is a time to relax and spend with those whom one loves. But, most of all…it is a time to shop!
It all kicks off with Black Friday. This is the biggest retail shopping day of the year. The day after Thanksgiving you will find every mall parking lot in the United States packed beyond capacity. The new holiday way of life in the United States is one of spending. This can cause a great deal of stress on most households across the country. With great expectations and a tough economy it is difficult for any head of household to feel as if he is giving his or her family what they deserve during the holidays. Lenders know that times are tough for many Americans and are here to help families get the money they need in order to enjoy themselves without breaking the bank!
There are many great incentives that lenders are offering for loans this holiday season, and there are many different types of loans that are available. The most common loan special during the holiday season is one which has payments deferred until February 2013. A personal loan, which can be used for travel, home improvement, debt consolidation or even to put gifts under the tree, is a great way to get the cash you need to get through the holidays. With low rates and an easy application process it is a no-brainer to take advantage of the holiday loan special offered.
The best part about the holiday loan is that you do not have to make a payment until 2013! This allows you to take your family on a trip or buy that perfect gift and not have to worry about the payment until the stress of the holidays has long worn off. It will also give you an opportunity to pay down credit cards or get some money back in to the savings account prior to worrying about paying off your holiday loan.
Don’t let the stress of the holidays get you down! Take advantage of the incentives being offered on holiday loans and make sure that you and your family have the holiday that you deserve in 2012!
Although not everyone may opt for emergency loans, they are particularly helpful to a group of consumers who need cash urgently and they do not have other options where they can get the cash. When utilized properly, short term loans can help people in dire need of cash to sort out urgent financial needs. One thing with the emergency loans such as payday loans is that they are easy to obtain and you can get your money in your account within a few hours or in just 24 hours. You can apply these loans online or by phone and this shows the level of convenience.
Below are five good reasons why you should apply for short term cash loans;
Can help maintain good credit score
People at times are faced with financial challenges that can affect their existing loan repayment schedules. Considering the adverse effects, which can result from loan delinquencies or late payments, it is essential that when a person is faced with such uncertainties, an alternative is sort.
Cash advances can help in maintaining a good credit. You can avoid late payments of loans by using cash advance loans. This is important because bad credit affects your ability to borrower in future and this can impact your credit worthiness for many years. Cumulative interest levied on credit card payment can also have adverse effects of a person’s financial stability.
A good option to credit cards
With short term loans such as payday advances or personal loan advance, a person can use these loan facilities to cover the expenses that cannot be met in the normal budget. The cumulative interest rates, which are attacked to credit card expenses, add up to debt accumulation. You can use your cash advance loan to cater for those expenses.
A peace of mind in finances
Financial stress is a common occurrence in many people and this may arise from job loss, mortgage repayment, or increased credit card payment. In order to avoid financial stress within the family, payday cash advances are used to provide instant cash in checking accounts of the borrowers.
Avert overdraft fees
People who use their back accounts to obtain overdraft facilities incur expenses in terms of overdraft fees. When you use payday loans to service your account with more cash, you avoid paying the hefty fees and charges that go along with overdrafts.
You can use emergency loans like payday advances to avoid collections. The payday loans enable you obtain cash easily to be able to repay existing debts. You can avoid the penalties which are levied from late payments as well as the interests on loans and therefore get you out of inconveniences created out of acts of collections.
In essence, these are some of the things which you can avoid when you make use of emergency loans. However, because these loans also attract high interest rates, it is important you make wise decisions before you obtain them. If you are not financing an emergency, these loans may not be the best choice. There are alternatives that can help you finance your pressing financial needs such as borrowing from credit unions.
The Payday Loan industry is one that has been the subject of much scrutiny over the past several years. The media and many financial institutions like to compare it to a legalized form of loan sharking but taking a closer look, you might be surprised to learn that most people take a payday loan out simply to avoid excessive bank overdraft fees.
In fact most financial institutions charge upward of $25-$30 per overdraft item. If you have several come through at once you could wind up paying anywhere from $100-$500 at a given time. Most banks will allow their customers to overdraw simply so that they can collect these excessive fees. This is typical practice and not considered excessive at all.
A payday loan will likely cost you less than those overdraft fees from your bank and will help you find a way to repay it over a few weeks or months. They help you not only in your time of need, but over time as well. Most payday loan companies offer repayment options that are realistic, unlike your bank who will want full payment of all overdraft charges immediately.
GETTING A PAYDAY LOAN IS EASY
Applying for a payday loan is relatively simple. If you have a recent paystub, a check, your most recent bank statement, and your valid photo id you can usually receive cash the same day you apply. Simply contact the payday loan company to find out what you will need to bring in with you or apply online. It is a fast and easy process. They won’t call your workplace or your references. No one will have to know that you applied for a cash advance through a payday loan company.
This method of borrowing is discreet. They won’t even disclose information to your spouse if you don’t want them to. It is your business and they will keep it that way.
Most companies have several repayment options available. At the time you take out the loan you should consult with a customer service representative to find out what these options are. They can help you decide on the repayment method that is best for you.
A payday loan is intended to be a short term loan option for those in emergency financial need. If you know that you are about to bounce checks, then consider this option. While it is a loan with a relatively high interest rate, it will cost you less then paying the overdraft fees at the bank. A payday loan is a cost effective way to get the money you need fast. Don’t let the banks convince you of anything less. A payday loan is a cost effective solution and one that will cost you less then bouncing just a few checks on your checking account.