Is it impossible to get a personal loan with a bad credit?

With the word ‘bad’ comes a negative implication just like an infectious disease that does not leave. If you have a bad credit record it is a bit difficult to get the loans approved. The requests are generally turned on the pretext that you would not be able to make the repayments properly. You may even be charged very high interest rates on the loans even if they are allowed.

Is it really true?

No. This is just one part of the perspective that some borrowers have about getting personal loans with bad credits. The lenders however realize the fact that the bad credit borrowers must have had good credits at some point of time. It is due to the reckless handling of finances at some point of time that has led to a bad credit record. The acts of the past are sure to affect some of the present but they also realise that it is just a matter of time till you get your tarnished credits back on track.

So will they allow you loans?

With inflation affecting all over most of the people are facing problems managing their finances which is finally leading them to bad credit trap. The number is increasing at an alarming rate and with so many people facing the problem you are definitely not alone. The lenders involved with the business of giving loans also realize this fact. So if they decide on not giving loans to bad credit record holder they would have to wrap up the whole business altogether. So you are definitely on the safe side!

Will you have options?

There are also a variety of loan options available to meet your specialized financial needs. The number of options that you get with a good credit are almost equal to the number you can avail with a bad credit.

How can you use your bad credit loans?

The best way to use your bad credit loans is to consolidate your debts and pay them off. This will help in improving your credit record to a great extent. The other uses of bad credit personal loans can be for buying a car, covering travel expenses, meeting financial or medical needs.

How will the presence of collateral affect your loans?

If you have collateral to back you up the idea of bad credit loans will become irrelevant. Having an asset means that the lenders will feel safer and they will be more than happy to lend you. They know that even if you default on your payments the can get back their money by selling off the collateral. With bad credit loans you will not have such advantages. You have to pay the loan amount along with the interest rates to the lenders. If you default it will worsen your credit record.

So what advantage will the lender have in case of bad credit loans?

The primary advantage that the lenders enjoy is that bad credit personal loan comes along with a very high rate of interest. This is because the risks associated with these loans are very high. As explained in the previous paragraph if you default on your loans payment the lenders may suffer a loss. So the lenders charge heavily on these loans along with some inflexible terms of payment. But nevertheless, you can get personal loans anytime you require. It is not an impossible deal to get one and definitely not impossible to pay them off too.

HARP: How it Can Work for Florida Homeowners

With the tough economy, many people are finding it difficult to make their mortgage payment, especially if they are upside on their loan, owing more than their property is currently worth. For Florida residents, there is still hope to help make mortgage payments more affordable so Florida residents can keep their homes and avoid the risk of a foreclosure or having to declare bankruptcy.

The HARP program works wonders in saving home owners hundreds of dollars a month on their home loan, if they qualify. Here are five factors that may influence whether or not someone qualifies for HARP refinancing.

If the Home Loan is Owned by Fannie Mae

Homeowners who now have their home loan owned by Fannie Mae or whose loans have been sold to Fannie Mae before June 1, 2009 may be eligible for HARP refinancing options. Some home owners are not even aware that their loans are with or were sold to Fannie Mae. Those people should contact Fannie Mae to see if their home loan is with them and move forward to then decide if they qualify for HARP refinancing. Once they have determined that their loan is with Fannie Mae, they can then see if they meet the other qualifications of HARP refinancing.

The Home Loan is Owned by Freddie Mac

A home loan owned by Freddie Mac or a home loan that has been sold to Freddie Mac may qualify for HARP. As with home loans with Fannie Mae, home owners should contact Freddie Mac about their mortgages and see if they are eligible for HARP refinancing. The home loan would have to have been sold to Freddie Mac before June 1, 2009 in order to meet eligibility requirements for this great opportunity.

The Home Loan is Current

A home loan must be kept current to qualify for HARP. A steady payment history is important for any loan, but especially important for home loans. Payments must not be paid late more than once in the past 12 months in order to qualify for HARP refinancing. Everyone suffers financial mishaps occasionally, but it’s important to pay the home loan payment on time. Keeping up with the payments and making them on time as scheduled helps make qualifying for the money-saving HARP refinancing easier. Foundation Mortgage is a place where you can ask questions about HARP and get other help from professionals.

No Late Payments Within Six Months of Applying

To be eligible to refinance, there can be no late payments within six months of applying for HARP refinancing. While it may seem difficult for those struggling with making a payment, it is important to set up a good finance budget to see where money is being spent and, if at all possible, ways to save money in order to keep home loan payments current. Establishing a good finance budget not only helps home owners stay current with their mortgage, it also helps them with other finance areas in their life they may be struggling with. Home owners should look carefully at their spending habits to determine what areas they can cut corners on to help them budget their money better. In a situation like this, it’s better to be proactive than reactive, so even if you aren’t having trouble making a payment, you’d be wise to go ahead and cut corners.

The Current Loan-to-Value Ratio Must Be Greater than 80 Percent

The current LTV or loan-to-value ratio must be greater than 80 percent, meaning the homeowner must owe more than their home is currently worth. The loan-to-value ratio is used to compare the amount of money offered in a loan and the actual value of the property. To find out what the current loan-to-value ratio is, home owners should take the amount they borrowed for their loan and divide it by what the property is currently worth. Home owners may be discouraged to see how much the value of their home has dropped since they bought it.  For those who find out their current loan-to-value ratio is in fact greater than 80 percent should move forward in applying for HARP refinancing and getting their finances back on track.

Florida home owners, including those in large cities such as Tampa and Naples, are encouraged to see if they qualify for HARP refinancing. Homeowners should look at their payment history and see if they are current on their loan, establish what their loan-to-value ratio is, and then move forward with applying for HARP refinancing to save them money and help keep their home.

Knowing How Financial Spread Betting and Spread Bets Work!

Spread betting, also called spread trading, is a great way for all those with small capital amounts to involve themselves in financial market trading. In simple words, spread betting lets you trade on whether the price of a specific stock is likely to go up or down. If you bet indicating that the stock price will move up, you will generate profits every time it actually does. Though, spread betting is not as easy as it is said. It comes with its own risks since you would lose money if the price goes down after you bet that it would go up. It may be difficult for beginners to understand the concept of financial spread betting. This article aims at throwing light on how spread betting works.

The Basic Idea behind Spread Betting

A spread bet is traded on the underlying instrument’s potential movement. In simple terms, if you trust that the underlying instrument will move up, you set forth a buy bet and if you trust that the underlying instrument will move down you set forth a sell bet. This is not like the usual share trading as you can gain from rising as well as falling shares or other such financial instruments. You need to spend quality time to figure out how to start trading shares online.

Offer and Bid

For a specific underlying instrument, a spread betting firm will quote 2 prices- a ‘offer’ like in the case of usual equity (price at which you purchase) and a ‘bid’ (price at which you can sell). The difference between these two is called spread.

The underlying instrument’s movement is measured in terms of points. For instance: It is point = 1 pence for equities, 1 point = £1 for indices and you can set forth a bet of any particular value against each point movement.

Closing a Bet

If you wish to close a bet, you just have to set forth an opposite bet on the particular instrument at the same £ per point. If you want to close a buy bet, you need to sell at the present quote and if you want to close a sell bet, you need to purchase the present quote.

As a result, the loss or profit you make is the difference of points between the closing bet and the opening bet multiplied by your bet per point’s value. That is, £1 per point or £10 per point.

Getting Started

Understanding the concept of spread betting and following few good tips from experts in the field can help beginners grow greatly in this field and generate huge profits. If people interested in trading and betting get to know about the benefits of spread betting, they would certainly want to try their hand at it.

Top Benefits 

Few of the benefits are:

  • The ability to work from home,
  • opportunity to involve in stock market with just a small account, and
  • Tax-free earnings since such bets are free from capital gains tax.

All the features and capabilities of spread betting make it a market that is most suitable for individuals with less money to play with.

What are the personal loan problems you should avoid?

Personal loans are often thought of as the safest way of solving an immediate financial crisis. People from all walks of life rely on this extra source of cash whenever they are out of money for meeting a financial need. They are popular due to their easy application process and quicker approvals. You can also get them from regular market lenders or online lenders wherever you get a better deal. The possibility of negotiation with lenders is always an option.

However like everything else personal loans also have certain disadvantages. But you can avoid them by using your personal loans prudently. Here are a few things you should avoid while handling personal loans:

  1. Improper use of personal loans: Personal loans are generally used to resolve immediate financial needs like home repair, medical emergency, credit card debts, car breakage etc. But if you use them just to fulfil some luxuries or overspend on items you don’t need you may face problems repaying your loans.
  2. Taking absence of collateral for granted: You do not requireany collateral for taking personal loans. This means that you can get easy money within a very short time without keeping anything at stake. But this facility does not mean that you should not take the repayments seriously. Though it may sound as an advantage if you are not wise with your spending habits you can get into serious debt problems.
  3. Defaulting in loan repayments: You can avoid suffering the payment of personal loans by having a regular source of income to fall back on. If you have a regular source of income or a valid source from where you can get money every month it will be advantageous. It will help you to avoid any defaults on your loan payments.
  4. Amortization may not be sufficient: To avoid defaulting on loan payments many borrowers look forward to the option of extending their amortization terms with a lower monthly instalments. However this option may not be sufficient to resolve your payment issues as with unsecured loans the extension is very limited. Moreover by extending you may have to pay a higher interest rate on your loans.
  5. Do not expect immediate profits: If you have used your loan into small-scale businesses and are hoping to gain profits immediately, it may not happen. Every business requires a time to get started and return profits. If you are planning to repay your loans with the profits it may not happen. So you need to keep your other options open as well so you do not falter with your payments.
  6. Avoid repaying earlier: Many times repaying earlier can be counted as a violation of rules. You may even have to pay a corresponding fine with the loan if you pay at the wrong time. It is advisable that you enquire about the repayment terms before you think about repaying. If there are no fines attached you should consider paying back earlier else wait for the payment maturity term.