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The top 5 advantages of hard money loans

September 18th, 2018 Posted in Property Investment
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Hard money loans are offered by private firms and real estate investors. They are usually borrowed against property assets. There are many advantages of these loans, but you should always be careful not to get into the sea of debt. Here are the top five advantages of hard money loans:

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  1. Hard Money Loans Are Approved Faster

Many realtors do not realize that as long as they have their property, they can quickly acquire loans for their urgent projects. These loans are usually approved within 3 to 5 business days. The alternative that most borrowers use is bank funding, and this can take close to a month to be approved. Hard money lenders therefore come in handy to save borrowers from long waiting periods. In some cases, the borrower requires funds as an emergency.

  1. Flexible Payments

Hard money lenders offer flexible repayment plans for their clients. The repayment plan can easily be tailored to suit your circumstances. In situations where you have difficulties repaying loans, you can easily explain your reasons for defaulting and agree on a new deal. When it comes to repayment, companies in Los Angeles try to treat you like a partner and not a client.

  1. Fewer Requirements

Normally, before mainstream loans are approved, a lot of due diligence is conducted. The banks check the client’s credit history thoroughly, and collateral is often needed. The rigidity of banks makes the process complicated, and this means only a few individuals can qualify for their products. However, with hard money lenders, the borrower is only required to have an asset that he can borrow funds against. Well, the fewer requirements for approval come as a savior for most borrowers.

  1. Zero Prepayment Penalty

It is possible to pay a hard money loan before the due date and face zero prepayment penalties. Banks, on the other hand, often subject their borrowers to penalties if they pay off the loan before it matures.

  1. Credit History Is Not a Big Issue

Not everyone has a history with mainstream credit bureaus. This is one reason why hard money lenders only require one to have a property that can be valued against the loan required. An equity stake can also be used to obtain loans from these institutions. Banks, on the other hand, will require you to have a high credit score. Otherwise, your loans will be very expensive. Most people who need loans are denied loans from banks because of their weak credit score.

Conclusion

Hard money loans are very easy to obtain. There are many advantages of these loans, and one of the biggest is the flexible repayment plan. You can even choose to pay the loan before the maturation date and still face zero consequences. Also, these loans are typically approved in very short periods.

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The Road To Good Credit

September 6th, 2018 Posted in Credit and Debt
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One of the things that you don’t necessarily learn at school is how to improve your credit score. Why is this important? The health of your credit score can dictate whether or not you have a difficult time acquiring a loan, a car and even a mortgage. So needless to say, understanding how to look after it is a pretty important life skill.

It’s easy to fall into the trap of thinking that because you’ve never needed to borrow money before then your credit profile must be great but this isn’t always the case. In order to build up good credit you need to be able to show lenders that you’re a responsible borrower and not a risk to lend to. I mean, if someone’s going to let you drive away in a car worth thousands of pounds, they want to make sure that you’re reliable and able to stick to the terms of your contract.

Credit reference agencies will keep a record of your credit information, and this is what lenders will use when assessing whether or not you’re going to get that car or mortgage. Having good credit will also open you up to the best deals and interest rates, so you’ll ultimately save money in the long run.

Likewise, bad credit can mean higher interest rates as you’ll generally be seen as more of a risk. It can be very worthwhile to read up on the subject, such as this guide on Stoneacre, to help you understand the pitfalls of a bad credit profile.

Understanding what can influence your score ensures that you can take the necessary steps to repair it if required. There are some simple steps you can take to make sure you keep a good credit profile, several of which are outlined in this handy infographic below.

 

The road to good credit - infographic image http://credit-n.ru/offers-zaim/zaymer-online-zaymi.html

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Back On Track: Reaching Your Financial Goals ASAP

July 24th, 2018 Posted in goals, Money Tips
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It’s always a great time to reflect on your financial goals and choices to help decide what changes you’d like to make over the months ahead. So much in your life will be dictated by your financial situation, and your decisions will be significantly influenced by your income and expenses. Therefore, it’s always a smart idea to take charge of your money and get a thorough understanding of how you can improve them from month to month. Whether your financial goals are to do with owning property, cutting your interest rates, or finding a better deal on your monthly outgoings; there’s no time like the present to begin making necessary changes and improvements.

Sorting out your money, and having a clear idea of what your future holds will also give you peace of mind throughout the year, meaning that you’ll have a successful and productive time ahead to look forward to. The following are some ideas, inspiration, and advice for those who what to manage their income better and give their finances a boost so that they have more freedom and choice, and will enjoy a fruitful future where they can make their dreams a reality.

Back On Track: Reaching Your Financial Goals ASAP - strategy box image

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It’s time To Start Saving

There are always excuses you can find not to save some money each day, week, or month. However, getting into good saving habits now will be something that you appreciate in the future. There is always a way to put a little (or a lot) aside and cut back on your expenses, so figure out how to do so as soon as possible. Open up a separate savings accounts, and begin making wise financial choices each month so that a portion of your income can automatically end up in your savings pot. If you’re unsure if you really need to buy something, don’t; utilise that cash in the future and put it away so that it can earn some money back for you in the months and years ahead. It’s always worth discussing your situation with your bank or a financial advisor so that you have a clear understanding of what you can achieve, and by when. You’ll have a stash of cash for that rainy day or an important deposit in the future which will be a great way to feel when you’re putting the money aside.

A Better Score

A good credit score can lead to all sorts of opportunities; it can affect your ability to successfully apply for a loan for something vital like a car, to being able to lease a variety of accommodation and rental properties. Therefore, it’s crucial to a happy and straightforward life that you check your credit score regularly. If you haven’t ever taken out any form of credit; this can be just as detrimental to your ability to apply for things as having a poor credit score. If you’re keen to increase your assets, improve your surroundings, or purchase something major; a great credit score could be the key to getting what you need and want, so don’t ignore it, or push it to one side for a later date. Check out ways to improve and better your score so that you’ll have less to worry about and more to look forward to. http://credit-n.ru/zaymyi.html

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Credit Score: What Really Does and (Doesn’t) Matter

January 11th, 2018 Posted in Money Tips
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Credit Score: What Really Does and (Doesn’t) Matter

Your credit score can impact whether you’re approved to open credit cards in your name, or if you can secure student loans, auto financing or home loans at competitive rates. Your credit score may even determine whether you’re approved to rent an apartment or secure a job with certain employers.

Here’s a look at how which factors in your financial life play a role in how your credit score is calculated, and which aspects of it may never play a role in your credit score.

How Your Credit Scores Are Calculated

FICO and VantageScore are two of the most popular credit scores — but since many credit scores are industry-specific, you may have more than 50 possible credit scores. Those scores may vary slightly, but most are based on a few specific pieces of criteria, including:

• Payment history. Hopefully, you will never miss a payment. If you do, pay what you owe as soon as you realize the due date has passed. The longer your payment becomes past due and the more frequently you miss the payments, the more negatively they may impact your credit score. Missed payments could remain on your credit report for several years.

• Balances on your credit accounts. The amounts of your account balances are the second most important factor in your credit score calculation. High credit balances (compared to your available credit line) may cause lenders to believe you are a higher-risk borrower who is financially reliant on credit.

• The length of your credit history. The longer you’ve owned credit in your name, the more beneficial it may be to your credit score. The credit or loan accounts you’ve owned the longest may contribute the most to a positive credit score.

• New credit. If you apply for and/or open too many new accounts in a short period of time, it may negatively impact your credit score. (This is true even if you apply for a new credit card account at a store to receive a store discount, and never intend to use the card).

• Your credit mix. Credit cards are considered revolving credit: You are given a line of credit, and choose how much of it you use. Once you make a payment, you’ll have more available credit (up to your credit line). A car, student or home loan, is an installment account; you don’t have the ability to borrow more just because you’ve made a payment. Your credit score may be positively impacted when you own a mixture of both types of credit.

What Is (Usually) Not Included in Your Credit Score

Your credit score helps lenders, creditors, landlords and some employers see how much risk they might take on by doing business with you, based on how you’ve managed credit. When your credit history and credit scores are positive, you may be offered more competitive rates and terms on loans and credit products.

That said, a creditor or lender must report account information to the credit bureaus in order for it to appear on your credit history (which then factors into your credit score). For that reason, you may have financial accounts that will never show on credit report, including:

• Your debit card activity. A debit card draws funds from your bank account when you make a purchase. It is not a line of credit, and isn’t reported to the credit bureaus or included in your credit score.

• Monthly utility, rent or cellphone bills. Many utility providers or landlords will not report monthly account activity to a credit bureau — unless you don’t pay, and the account is turned over to a collections agency. (In turn, the collections agency may report the unpaid account to the credit bureaus, which could negatively impact your credit score).

• Your income. The income you earn is not included in your credit history, or part of your credit score.

• Your spouse’s credit activity (unless it’s on a shared/joint account). Your credit history (and credit score) is based on your social security number. Even if you get married, you maintain your own credit history and credit score.

Credit scores can be complicated, but when you separate the facts from the myths, you’re empowered to take the necessary steps to build a positive credit score. Use these basic tips to start taking control of your credit — and your financial life.

Author bio: Pamela Coleman is Executive Director of Furniture and Mattresses at Conn’s HomePlus, a 125-year-old consumer goods retailer headquartered in The Woodlands, Texas, with expertise in international and domestic buying, category management, product development and sourcing.

 

External sources:
https://www.credit.com/credit-scores/how-many-credit-scores-are-there/
http://blog.myfico.com/5-factors-determine-fico-score/
http://www.myfico.com/credit-education/improve-your-credit-score/

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Getting Over Credit, Debt, And Other Horror Stories

June 8th, 2017 Posted in learning about money
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When people think of credit and debt, their minds immediately go to the worse case scenarios of them. We’ve all heard ghost stories of how bad credit can drag you down and limit your options and how debt can become a spiral that can truly be very hard to climb out of. But the problem is that a lot of people focus on the negative consequences of these stories that they fail to consider just how helpful credit and debt can be. Here, we’re going to challenge the phobia and help you use credit and debt better.

Getting Over Credit, Debt, And Other Horror Stories - credit card image

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The sooner you come face-to-face with it, the better

There’s a significant portion of adults who have never once checked their credit report. Some of these people might not know to, others have chosen not to because they’re staying well away from credit as much as possible. However, even if your record is immaculate, your report might not be. You might have to repair your credit score by no fault of your own but because there are erroneous accounts on them. For instance, you might be getting bad reports based on accounts that are mistakenly tied to your name but aren’t yours. Or you might be up-to-date with all your payments but your creditors made a mistake in reporting that you missed a payment.

It’s the next step in a better financial life

When used responsibly, credit and debt are the steps you take to make some of the biggest financial decisions in your life. When you get a car, when you buy a house, when you start a business, the chances are you take out a loan for them. With better credit, which is built by taking debts responsibly, you have the chance to get the best discount auto loans and the best mortgages. Having no history of credit isn’t going to help you get better deals. You have no history of being a responsible debtor, after all. Only by building a healthy credit history can you get the best deals.

Credit cards aren’t the devil

Those pieces of plastic might be considered the single most dangerous aspect of credit. Yes, people get themselves into credit card debt they can’t handle by using it to make lifestyle purchases they otherwise couldn’t. But that debt can be used positively to build up your credit so long as you have pre-planned a budget to always keep on top of it. Debt management turns debt from a danger into a simple part of life. You can get rewards cards that turn credit card use into extra purchasing power, whether it’s through air miles or through grocery vouchers.

Wise use of credit and responsibility for debts can be one of the most effective financial tools at your disposal. It can improve your purchasing power and it can help you make some of the biggest financial decisions in your life. In any account, it’s important to come face-to-face with it so you make sure that it’s not marred by errors that could come back to haunt you.

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