Ohio banks and credit unions are directly involved with the communities they serve. It’s in their best interest to see that they thrive. That’s why credit unions and banks in Ohio are top rated when it comes to personal loans. They’re invested in making sure they do right by their customers and communities. 76% of Ohio banks have been ranked as superior or excellent by Bauer Financial of Florida with only 6% rated at the level of troubled, or problematic. Ohio credit unions have a superior or excellent ranking of 67% with only 1.7% of credit unions receiving bottom ratings. This puts Ohio banks and credit unions above the national average. The Bauer Financial of Florida rankings are determined by such factors as capital, profits, liquidity, the status of any delinquent loans and losses from those loans, ratings of community reinvestment and issues regarding regulations.
Many millions of Americans have credit cards and often generate debt beyond the resources they have available to repay. The ability to eliminate credit card debt is a goal that may seem hard to reach as the burden of debt can be enormous. One reason credit card debt grows for many people is they use credit for all types of spending when cash is tight. Homeowners are in a unique position as they can consider refinancing their home to pay off credit card debt.
Refinancing to pay off debts accumulated by using credit cards is a form of consolidation. This is used as a tool to not only pay off credit card debts, but to save money. One thing to keep in mind is the rates for mortgages still remain at low levels. The ability to refinance into a low rate is the key to being able to have a low payment that does not break the bank.
Eliminate Credit Cards
Many consumers who accumulate credit card debt pay a finance charge each month. This is a payment that is added to the amount that has already been charged on a credit card. A consumer who carries any type of balance will be paying a finance charge each month. Transferring existing credit card debt over to a refinanced mortgage will eliminate monthly interest charges. Another benefit is not having to keep track of monthly due dates.
Lower Interest Rates
The interest rates for a mortgage are generally lower than interest rates for credit cards. Refinancing of an existing mortgage may result in a lower interest rate. One way to determine if you are able to save a significant amount of money is to add together the interest charges from all your credit cards. You then need to compare this amount with the current interest for your monthly mortgage payment. Eliminating the interest assessed by credit cards is an automatic savings.
Improved Credit Scores
One of the biggest factors that is used when calculating a person’s credit score is debt. Eliminating debt from your credit report will result in an increase in your credit score. A person’s credit score will take a big hit when they have credit cards that are maxed out. Another aspect to keep in mind is paying off all your credit cards will eliminate any over limit blemishes and late payments.
The most important thing to keep in mind when refinancing to eliminate credit card debt is to keep any future charges to a minimum and pay off balances each month. Refinancing a mortgage will also allow you to pay off your debts over a longer period of time. This means determining if you should refinance with a 15-year mortgage or a 30-year mortgage.
Consumers who do not qualify to refinance a mortgage to eliminate debts, may consider other options, like credit card balance transfers, personal or unsecured loans from a bank or credit union, peer to peer lenders and other alternative loan options. When looking at options to consolidate it is important to look at the long term ramifications as well as the short term benefits, the improvement to cash flow and the lifestyle that led to the debts in the first place.
Any sound minded individual would not want to be buried in debt. Credit card interest rates can go as high as 36%, which will basically eat up our finances, and if we do not do anything about it now, we will simply continue to pay a ridiculous amount month after month without end. If you have outstanding credit card balances, the smart thing to do would be to get a personal loan in order to pay it off in full once and for all.
What options do you have?
Understand that a regular debt consolidation loan may not be the best answer to your financial woes. Although this may not be true for all, many so-called debt consolidators promise to put an end to your problems and yet later on, you would find yourself still buried in it. Promises of lowered interest rates and easily approved applications entice people to give it a try only to find themselves getting declined because of their poor credit standing, or in some cases, they get the green signal but end up paying more than what they used to.
What you can do is to take out a personal loan to pay off your debts. Apparently, because you are considered a credit risk due to poor rating, you cannot expect most lending companies to grant you a loan but there are those who can and who will.
There are short-term loans referred to as payday loans for cash advance loans but most likely, getting this would not be enough to pay off your credit card because you can only get as much as $1500.
Your best option is an unsecure personal loan that will enable you to borrow bigger sums, between $3,000-$100,00, payable up to five years. The amount would depend on your capacity to pay, reason for getting a loan, and credit worthiness. For those with poor credit, you should not expect to be granted a very large amount. Although this is still going to charge you high rates- 11% on average, this is definitely much lower than what credit card companies charge.
Check with your bank to see if they can grant you a personal loan. Or you may look for lenders online that can give you instant quotes. Compare rates and choose the one, which you think, will give you the best deal. When you are able to consolidate all your debts, you can work your way towards building a good credit.
With Mortgage Rates Low in 2011, what’s in Store of the Home Buyer?
Low Rates = Low Payments = No Need For Cash Advance Loans 🙂
We are witnessing one of the historic lows in mortgage rates since the past November which was the lowest in four decades. So, if you are buying a house over a 30 year period on fixed mortgage, you can expect a rate as low as 4.63 percent while if you are buying a 15 year mortgage, it can be as low as just 3. 82 percent.
In spite of mortgage rates being low, the general mood among people is low because they believe that the rate may go down further. Also things like the credit crunch situation, the state of economy, the erratic job market, foreclosures and higher down payment requirements are threatening to play spoilsport as well.
Many first time buyers are still not really interested in the lows mortgage rates for two reasons: one, because they believe that the mortgage rate should still go down in the next few months and the second, not being able to qualify for the mortgage. Freddie Mac and Fannie Mae, who are government-run mortgage buyers, back 90 percent of new loans. Their condition is that the credit rating of a person who wants to buy a house should be 760, forty points more than what it was in 2007. Less than 50 percent of adult Americans barely manage to touch 760.
Banks also ask for higher down payments, the median rate rose to 22 percent in 2010 across 9 major cities in the US, which is 4 percent more than 2006. In short, if you have a higher financial reserve, banks are like to hand out loans or they do not really welcome buyers. In a pressurized economical situation that the country is going through, there are not enough buyers who can come up with a 20-25 percent down payment.
Ten years ago, home ownership was looked upon as a safe investment by about 83 percent of the populace but now only 66.66 percent people feel that way. The main dilemma now is that people are wondering if the mortgage rates will go down further. For instance, there were speculations in the beginning that the mortgage rates will rise but the opposite came true. So, those who can afford to buy still are passing it, thinking that the rates should plummet. As you know, even a fraction of a few percentage points can make a lot of difference to the rate at which house can be bought.
So what do we make of all this? The Mortgage Bankers Association (MBA) has said that the mortgage rates may rise to 6 percent in 2012. By the end of 2010, the rates moved out of 4 percent range and went to slightly above 5 percent. Historically speaking a 5 percent mortgage is still considered historically low. So, if the rate is 4. 63 percent for a 30 year fixed mortgage, it is better to avail of it. The rest is up to your personal inclination as to what time you’d like to buy a house.
Credit card debt can truly limit your financial security. Credit cards are revolving lines of credit available to individuals the typically charge a significant interest rate. If you are unable to pay your balance in whole each month the interest on your credit card can accumulate and cause long term financial difficulties. This is because credit cards require minimum monthly payments calculated to cover your interest costs and a small portion of the outstanding principal balance. By repaying a credit card balance with monthly minimum payments it will take a significant amount of time to repay the outstanding balance and the ultimate amount of interest that you pay will be very large.
Repaying a credit card balance is easy with discipline. Most people start by reducing their current expenditures and using any excess income to reduce the balance. While getting your current finances in order is a necessary step towards repaying your outstanding credit card balance, the repayment of the balance will often take a significant amount of time using this method. This is because interest will accrue on your outstanding credit card balance. Given the onerous rate of interest charged by credit cards, you may ultimately repay a significant amount before you are able to reduce your balance fully.
Some individuals try to transfer their credit card balances to other credit cards that offer introductory periods of no interest charged. While this is one way of avoiding interest on your credit card balance, there are often balance transfer fees associated with doing so. As such, you will have a larger principal balance owed even though you will save on interest charged on the balance.
Another option is using an personal or installment type of loan to repay your credit card balance. While borrowing more money to repay money you owe may not seem to be a good course of action, you can often save significant amounts by doing so. An installment loan is a loan that requires predetermined payments for a set period of time. Unlike a credit card, an installment loan is not a revolving line of credit and you can therefore not borrow additional amounts of money on an installment loan if you need it. However, installment loans typically have lower rates of interest than credit cards do. Furthermore, an installment loan provides borrowers with a structured way of repaying a loan. Some individuals need this structure more than the temptations associated with credit cards and prefer to use an installment loan to repay outstanding debt. Borrowers can also consolidate many credit cards into one larger installment loan that will limit the number of payments that have to be made each month and may therefore reduce the possibility of late payments on their balance.
Installment loans offer borrowers who are currently bogged down in credit card payments a structured way of repaying their credit card debt. Start by consolidating all of your outstanding credit card balances into an installment loan with a lower rate of interest and reduce your current expenditures so that you do not borrow additional amounts on your credit cards. Use your excess income over expenses to repay your outstanding balances and get the debt off of your back. Financial flexibility will often be the reward.
If you have a credit card and need cash really fast, it’s easy to get a cash advance at an ATM machine. In fact, if you have an available balance, you can get cash instantly from your credit card. But, using a credit card has long term effects that can make getting cash really expensive.
When you need money quickly, you need a cash advance. It literally just takes a few minutes of your time to complete the application and you can be approved within just minutes. And, in some instances, you can have the money within a matter of hours. It’s really that easy and that fast!
A credit card can be very convenient and it can be a good source of money when you have a financial crisis. But, there are several reasons why borrowing money on your credit card isn’t a good choice. And, many reasons why taking advantage of a cash advance loan is the best choice.
The main reason relying on a credit card for those times when you need money is a bad choice is the high interest rates. While it might seem like a good solution at the time, you could end up paying back twice as much as you borrowed. And, most credit card companies charge higher rates of interest on cash advances than they do on regular purchases.
The high rates of interest on credit cards and other fees they charge could mean that you would literally still be paying on a cash advance for months or years to come. When you get a cash advance loan, you simply re-pay the entire amount from your next payday.
When you choose a cash advance loan you will never have to pay any interest charges. The lender will impose a small fee for their services, but you will know exactly how much the fee will be before you accept the loan. There’s no surprises and no recurring fees that can add up to a lot of money.
There are only two basic requirements to get approved for a cash advance loan, a minimum monthly income and a checking account. The required monthly income can vary between lenders, but generally you need to make at least $1,000 a month to qualify.
Whether it’s a cash advance or purchases, credit cards lead to a financial cycle that never seems to end. With very little of your minimum monthly payment being credited towards your balance, you could be paying on a credit card cash advance for many years to come.
If you find yourself needing a short term loan, there’s no better option than a cash advance loan. They’re perfect for financial emergencies when you need money quickly. But, they’re also a great way to get some extra money when you just want to treat yourself with a night out on the town, or a weekend getaway.
Sometimes it can seem as though everyone is out to make a quick buck. There’s nothing wrong with that, except when they turn to fleecing innocent people of their hard earned dollars. One of the most vulnerable groups is those who are in need of quick cash to cover the bills until the next pay check comes in. To these people, ac cash advance loan can seem like a godsend in their time of need. Many times though it’s actually some unscrupulous person waiting to get what they can from you and never be heard of again.
That’s not to say that there aren’t legitimate cash advance businesses out there. There are, because they can make their money off of the interest they charge and it is a lucrative business. The problem can come in when you’re trying to distinguish a bogus enterprise from the real deal. There are a few pointers that you can follow that should be able to help with this.
First of all, a legitimate money lender will recognize that you’re strapped for cash. Why else would you go to them when you can pay less interest taking out a bank loan? You need money now because you don’t have any. Therefore, if cash advance service were to ask you for a down payment up front that should start sending off some warning signals. Money lenders typically require you to submit a bank account number where they can deposit the sum asked for and withdraw their loan payments. Unless this is a typical arrangement that they make with clients, you should have to send any money.
Also, be wary of any unsolicited emails. This is called spam and no legitimate business would allow themselves to get mixed up in it since the United States has very strict laws against it. These types of scammers often make promises that seem too good to be true, because they are. Sometime unsolicited offers may take the form of phone calls. No matter what the terms they’re offering, proceed with caution. A respectable money lender won’t contact you unless you’ve expressed some interest in their service.
Reputable cash advance lenders provide a valuable service for those who have found themselves in a temporary financial bind, but there are always those willing to prey on those less fortunate. It may seem like desperate times but don’t make the mistake of getting involved in a scheme that’s going to end up costing you much more in the long run.
Personal loans are only one of the many kinds of loan. Each kind of loan has its specific use, and it is designed for a specific purpose. To illustrate, car loans are not made for mortgages, especially since real estate property often appreciates in value while cars generally depreciate. It is important to know what kind of loan is designed for what type of need, and confusing purpose and need is equivalent to getting deeper in debt rather than getting out of it. Personal loans are the easiest to get, making it even more important to be thoroughly informed about this kind of loan.
What is a Personal Loan?
A personal loan used to be known as a character loan or a good faith loan. In making this type of loan, you are telling the lender or the lending institution that you value your character, your person and your signature far more than the amount of money you are borrowing. All it takes is a promise to pay at a certain date, with no collateral whatsoever, and the lender loans you the money. It is that simple a transaction, and if the lender does his homework and you hold on to your promise, business is concluded as soon as the money plus a slightly higher rate of interest is received.
When Do You Need a Personal Loan?
Knowing when to apply for a personal loan is a different matter altogether. Definitely, personal loans are best taken when you are short of cash, since it is easy to get them. But it still depends on other variables, such as your cash flow, your other debt commitments, and the like.
Think of personal loans as the jar you are supposed to put money in for the rainy days just like your mother taught you to do – only that you don’t have the jar or the money. You know how slowly that jar would fill up if you were the one filling it up, and only you would know when to use the money if you did have the jar.
Financial experts recommend using personal loans only for emergencies such as medical expenses. Personal loans are made not to pay off other debts or to buy that gadget you’ve had your eye on for a while now. Personal loans are for rainy days, and if it isn’t raining cats and dogs, then it is best not to take out a personal loan.
Why Make a Personal Loan?
No matter how well you plan your life, problems do arise. Your checking account might always be balanced to the thousandth of a cent, your credit score as good as you can make it, but there will be always something that messes things up. When life cooperates with your plans, all is well and good, and there is no need to apply for a personal loan. But when things suddenly make a turn for the worse, it never hurt anyone to have a backup plan. And with regard to your finances, personal loans are exactly that.
As the present US economy is getting tougher, most people are falling short of money when it comes to paying off your financial obligations. A payday loan may help you initially but such loans usually affect your finances in the long run. If you’ve accumulated a huge amount of payday loan debts, its better that you settle it and pay them off than keep accumulating and hurt your credit score. Payday loans are often considered as the easiest way to borrow money and meet your immediate financial needs. Therefore, experts often recommend that debt negotiation would be the best choice for settling your payday loan debts.
What is payday loan settlement?
Just as you settle your credit card debts, payday loan settlement is a very similar process. As you enroll yourself with a debt negotiation company, they will assess your finances. The debt consultants will help you get rid of the lump sum amount of payday loan debts by negotiating with your creditors. If you’re not being able to make steady and regular payments on your payday loan debts, debt negotiation would perhaps be the best option for you. You can avoid all kind of lawsuits and harassment’s of creditors by settling your payday loan debts.
What are the benefits of negotiating your payday loan debts?
1. You can lower the high APRs on your payday loans: While you’ve taken a large number of payday loans, you must be aware that the APR on a payday loan is excessively high. Therefore you can easily get help from a debt negotiation company and lower the APR on your payday loans. You can easily come out of your payday loan mire by seeking the help of debt settlement.
2. Debts are repaid at once: As you settle your debts, the principal amount is immediately reduced and becomes much more affordable than what it was. Therefore, it becomes easier for you to repay the loan at once with ease, without putting much strain on your wallet. You become debt free sooner.
3. Reduces the principal amount: No other debt relief service can reduce your principal amount to the extent of a debt negotiation company. If the company effectively settles your debt amount, you can go through a drastic principal reduction. This makes it smoother for you to repay.
4. Helps you avoid filing bankruptcy: By settling your payday loan debts, you can easily pay off your financial obligations. As you can satisfy your payday loan lenders, you need to file bankruptcy and hurt your credit score tremendously.
Before you select a debt negotiation company, make sure you check its authenticity by seeing whether or not the company is registered with the BBB. This will help you avoid any kind of scam companies and value your dollars.
Consumers with bruised credit histories are finding the market for lending to loosen up and credit restrictions to thaw out a bit, more lenders are approving borrower loans for bruised and slow pay histories, from auto loans, to personal, payday and even some home loans.
Finally, there seems to be a plethora of opportunities for the average consumer to get access to new car loans without worrying about their less than impressive credit score. This is due to the move by various banks and financial organizations to lower the credit scores as a prerequisite for qualification. This implies that car dealers and manufacturers can be optimistic about increasing sales in the near future. However, there are also questions about whether we are really on the right track as an economy because according to some experts, these lenders by encouraging credit easily, are taking the country back to the times that led to the recession in the first place.
The sales manager at Taylor Chevrolet echoes the sentiments of the market, “There are a lot of lenders now that are into the subprime business. What used to be a good score at a 650 or 700; now 550 is a good score.” The Equifax National Consumer Credit Trends Report shows that the total US car loans reached $52.5 billion which is 49 percent higher than the same period in 2009, which was the lowest point of the recession. Buyers are also benefitting from stretching their payment tenure for a longer period. There are estimates that there will be close to 15 million vehicles sold in US in 2012, a good 30 percent higher than 2009. In other words, car and truck sales are seeing new highs, never witnessed before in these four years.
The representatives at Experian believe that though the auto loan lending scenario is similar to what was prevalent before recession; it is not still the same. Melinda Zabritski, director of Automotive Credit at Experian says, “I think you’ll still see the loans themselves a little more conservative.” As the interest rates are less and since the rate at which banks are lending money to another is close to zero percent, there has been a rise in subprime auto lending.
Who falls into the bracket of subprime consumers?
Those with the credit scores of 640 and below generally fall in the bracket of subprime consumers. Credit scores range between 300 and 850 and the ones below 720 get better credit, because they have a better credit history. The Experian Automotive analysis shows that the average credit score for people who are looking for an auto loan for a new vehicle remained high in the first quarter but for the ones who were seeking these loans for old vehicles, the credit score dropped by six points to 760.
Though subprime lending is approved for auto loans easily these days, they get them at higher interest rates. The consumer still has a choice, which he does not exercise to the fullest. There is always an option for refinancing if there is a problem of high interest rate. There have been examples of people with less than impressive credit scores getting approved for auto loans but at high interest rates, with a sizeable monthly payment to pay. In such cases, non-profit credit unions have come to the rescue by offering refinance options and lowering the monthly payments.