Money Management

Don’t Make Payday Loans a Scapegoat

Payday loans are the fastest way to get cash before your payday and the best way to get financially ruined in no time. People often forget that any money borrowed from a payday lender will generate high interest rates that summed up to an already existent debt, make payday loans a heavy load to pay off.

If you are already trapped in a debt circle resulting from credit cards, mortgages or another type of loans, you do not really need to add a payday loan to this circle, but find suitable alternatives for your imminent money need. There are at least four alternatives to a payday loan that might be the answer to you are looking for, so simply analyze them and decide yourself which is the best in your particular case.

Negotiating

The most viable way is talking to your creditors and asks the possibility to extend your due date. Okay, you need money, not refinancing or similar thing, but this way you can take the money that you reserve to repay your debt, assuming that you have this money available in a savings account or somewhere at home. There are two possibilities here; on the one hand that you really need the payday loan to repay other debt. In this case, a creditor can extend the due date without reporting to the bureau or charging a penalty for late payments, thus removing the need to get cash advance. On the other hand, you might have never thought to put aside any money to repay your debt, living on a paycheck to paycheck basis.

Credit Cards

However there is a second alternative here, as long as you need the money to buy something or that your credit card grants you access to cash advance. Yes, using your credit card to pay for items is cheaper that borrowing money from a payday loan. However getting a cash advance from a credit card (when allowed) is costly than paying for goods at the time of purchase, although both of these solutions into one financial instrumental will always be cheaper than a payday loan, and some banks give a few days grace period to repay cash advances before interest rates apply.

Family or Friends

The third alternative to payday loans is not always suitable and not always impossible; which is to borrow money from a family member, friend or even your neighbor. Perhaps this last thing will only give you nothing more than a few bucks, but sometimes a few bucks can make a difference. However family members or friends may have your money solutions in their hands and it is about daring to ask them. The main advantage is that they may lend with no interest rates, but there is a risk factor involved here. Money is often responsible for broken relationships, so if you are unsure of your financial capability to repay their money in a timely manner, you will do better select another alternative. Be honest about your financial situation when talking to them and never promise without having the certainty on what you are saying.

Reevaluate Expenses

Perhaps the fourth alternative is the best of all of these; cut down on your bills. Depending on how much money you need, you can cut out some services that you do not need, or you can delay the payment without being reported to bureau if your delay does not exceed past 30 days. If you cannot live without paying your carrier the extra module that enables you to text your friends beyond the limit of you cell phone plan, for instance, then try to cut out the amount of beers that you drink. Tighten your belt for a month or two will not hurt and can give you the extra cash that you need, or can be an “extra” income if you keep reducing expenses consistently.

There are several other alternatives to payday loans, but these are some of the easiest solutions that you can find.

Author Bio: Noel Finlay works for FastCash.org a company that provides information on quick loans. 

Debt Management

Can Bad Credit Credit Cards Really Improve My Score?

This guest post was written by Jason Bushey. Jason is a personal finance consultant and blogger. 

If you’re looking to improve your bad credit score, odds are applying for a new credit card isn’t the first solution you came up with. After all, it was likely those very same credit cards that got you into the issue of poor credit in the first place. 

But did you know applying for and receiving a bad credit credit card is one of the easiest and most important things you can do in the journey back from bad credit? 

Here’s how it works. 

For starters, you should know what makes up your FICO scores – the ones being reported by the three major credit bureaus: Equifax, Experian and TransUnion. While there are several factors, the biggies are (in the following order): 

  • Payment History (35%)

  • Amounts Owed (30%)

  • Length of Credit History (15%)

  • New Credit (10%)

  • Types of Credit Used (10%) 

You’ll notice that these all relate in some regard to applying for and receiving a new credit card. For starters, a credit card for bad credit can give you a new credit line to make on-time (and in full) payments each month, thus boosting that most important credit score factor, Payment History

Second and nearly as important is Amounts Owed. This factors in your credit utilization ratio, which is the amounts you owe in relation to the amount of credit available to you (your credit line). It’s important to report to the credit bureaus that you’re using less than 30% of your available credit, and it’s ideal to report less than 10%. So if you have an available total credit line of $1,000, ideally you want to report that you’re using less than $100 of that credit to the CRA’s (Credit Reporting Agencies). 

If you have a poor credit score, odds are you’re reporting more than 30% usage to the CRA’s and – quite possibly – a whole lot more. So by adding a credit line, right away you’re going to lower your credit utilization. And since you’ve started making on-time payments with your new credit card, you’re also continuing to lower that utilization ratio while improving your payment history. That’s a win/win. 

And finally, you’ll notice that credit history and new credit make up a combined 25% of your credit score. Obviously, a new credit card will count as “new” credit, and a new account and consistent on-time payments will work to enhance your credit history. So overall, adding a bad credit credit card and using it responsibly can go a long way towards improving your credit score. 

There’s only one small catch: by and large, credit cards for poor credit are not the most amazing credit cards on the market… 

But what did you expect? The best credit cards are reserved for the consumers that earned it, and vice versa. However, the good news is that there are some strong options available for people hoping to rebuild credit. The Capital One® Secured Mastercard®, for example, is one such credit card that, while on the surface isn’t the best card around, is simply one of the best options available if you have bad credit. 

First, it’s secured, so it does require a deposit guaranteeing your credit line. However, the security deposit is fully refundable and the minimum deposit required is one of the lowest on the market today. ($49 or more based on credit-worthiness.) Once a consumer is approved and their deposit secured, a consumer will be given a credit line somewhere close to 70% of their security deposit. 

OK, so why is this card – and secured credit cards in general – good for improving bad credit? 

For starters, secured credit cards have lower ongoing interest fees than unsecured credit cards. And in the case of this Capital One® card, the small annual fee attached to the card includes credit monitoring tools so that consumers can watch their credit score improve. (That’s the idea, anyways.) 

Plus, after several months of responsible usage and on-time payments, Capital One® may consider members for a new unsecured card. Consider a secured card a credit-builder and a “gateway” card to improved credit, all at once. 

When it comes down to it, there are a lot of things one can do to improve their credit score, but one of the easiest things to do is apply for a credit card for bad credit. This is the first and most simple step one can take on the road to improved credit.

Business

What To Do When You Want To Change Your Career?

There are many moments in life when we realize the fact that we want to do something else. While in the past it was quite impossible to change careers, nowadays everything is a lot simpler. There are various education options that are available and in the event that you do not actually know what to do and you want to change your current career path, here are some things you should consider.

What Jobs Are Available Now?

This is a question you have to ask yourself. It is useless to get education if you cannot actually find the job where you live. Sites like Xpat Careers aid you to see what is currently in demand and can be a great starting point for your research. It is not the only option that is available but it is something that you have to consider. Make a list of the different opportunities available and always take your personal wishes into account.

Necessary Education

Based on the career path that you want to take, there may be some alternative education options that can be considered to make the switch faster. For instance, if you consider becoming a plumber, you can go through an apprentice program instead of actually following formal education. In the event that you do not have enough time to go through the necessary education, you may want to consider other alternatives. You want to be really good at the new job that you will do.

The Financial Aspect

This is the most difficult thing about changing your career. In the event that you make a switch and you already went through some raises in the past, you can find yourself in the unwanted situation in which the new career will not make you enough money to sustain your current lifestyle. Never dismiss this fact since it will have a huge impact on your life.

On the whole, changing a career is not at all difficult. You need to make a list of all the options you should consider and then, eventually, choose one new career path. Make sure that you take your time and that you understand all the pros and cons of the options that you are considering! Remember that you can make many mistakes when changing your career.

Financial Freedom

Do What You Want

How awesome would it be if you could do what you want every day? How amazing would it be to make money doing what you love?

You wouldn’t have to:

  • Leave your family everyday
  • Drive to work
  • Stay up late being stressed about life

So what’s stopping you?

Nothing!

That life can be yours and I’m going to show you how.

To help you get there I created the Do What You Want eCourse. It’s a free 12 day course about figuring out what you want to do and turning that into a money making venture.

I’m going to show you from start to finish how I make money on the internet doing what I love and how you can do it too.

I know you’re probably thinking you can’t….well you can and I’m going to show you that it’s not as hard as you think.

Don’t say you don’t have enough money because I’ll show you how to start doing what you want with very little.

This eCourse is free so all you have to lose is….NOTHING!

Do it and kiss your old life gone.

It’s time to Do What You Want!

 

Home Ownership

5 Easy Tips to Follow for Getting a Home Loan

There are some simple but effective tips that can help you to get the best possible deal on the home loan you want. The worst thing you can do is to rush into getting this type of loan because you will almost certainly end up regretting it. You will need to take your time and do the necessary research so that you don’t end up spending more than you have to.

As long as you make a point of following the tips outlined in this article, you should be able to get a home loan while saving yourself quite a bit of money.

1.      Look for a Reputable Lender

It is absolutely imperative that you find a highly reputable lender to borrow from, otherwise, you are just setting yourself up for lots of aggravation later on. Banks like BB&T offer all kinds of loans, including mortgages, for which they provide contact details for a professional mortgage expert. Make sure that you spend an adequate amount of time finding out what sort of reputation each bank you look into has, so you can select the right one before even applying.

2.      Compare Rates Online

One of the best ways to save yourself money on a BB&T home loan is by comparing interest rates online. The more time you spend doing this, the more likely it will be that you’ll save a substantial amount on your home loan. Make sure that you also compare the terms of each loan so that you can pick the best option overall.

3.      Get a Co-Signer

If you are having issues with getting approved for a home loan due to poor credit, it might be a good idea to get a co-signer. This is someone who will sign onto your loan and agree to take over payments if you are unable to pay yourself at any point, for whatever reason. Most banks are much more willing to approve someone who has a co-signer. Just make sure you choose the right person to sign onto your loan in this capacity.

4.      Check Your Credit

Since your credit is going to play an important role in how easy it is for you to get approved, you will need to make a point of looking at your credit report and score. Make sure that there aren’t any negative items on your report that shouldn’t be there because mistakes do sometimes happen.

5.      Get Pre-Approved

Another way of increasing your chances of getting the offer you put down accepted is getting pre-approved. The pre-approval process doesn’t take very long at all and it can make it a lot easier to get your new house with minimal hassle. Take the time to learn about how to get pre-approved before getting started.

Anyone who wants to get a loan to buy a new house will need to first make some important considerations. This is probably the biggest purchase you will ever make in your life, so you want to take all the time necessary to sort everything out.