How to secure a short term loan but avoid high APR charges

Secure a Short Term Loan and Avoid High APR Charges

Understanding how to secure the right loan is one of the most important things that a person can do in order to secure their own financial well being, both now and in the future. When trying to secure an installment loan or some other type of short-term loan, one of the biggest concerns is the APR, or annual percentage rate. A high APR means that a person has to pay back more money in order to pay off the loan while a lower APR means that they are charged far less in finance charges. This in turn can have a dramatic impact on the cost of the overall loan. As a result, it is important to consider how to secure a short term loan without paying a high APR.

Have Good Credit

This is one of the most important things that a person can do to secure any type of loan, including a short term loan, without paying a high APR. Most lenders will check you consumer fico score, which is derived from transuion, experian and equifax and now many will use a formula called the 9fico which helps them understand your payments and credit histories. Many times, the amount of finance charges that a person pays are tied specifically to that particular loan. However, a person that has less than stellar credit may only qualify for those types of loans that are available with outrageous APRs. Many times the APR on loan of this type can be as much as 300%, meaning that a person will pay all of the money that they borrowed back and then pay that same amount three more times before the loan is completely paid off. On the other hand, a person with good credit qualifies for a wide range of loans and this means they may pay an APR of less than 20%.

Research Loan Options

This is also tied to the APR that is associated with the specific type of loan. It is important to research all of the options that are available and choose the loan that is available from the lender that will charge the lowest APR while still meeting the needs of the individual that is applying for the loan. If a loan is available that has a lower APR than another loan that is being considered and everything else is similar, it is important to choose the loan with the lowest APR. This is true even if that means that the payment might be moved up by a week or two when choosing a particular loan.

Pay the Loan Back as Quickly as Possible

Many loans can be paid back in full without any penalty whatsoever. If that is the case, paying back the loan as quickly as possible can go a long way toward reducing the finance charges that are associated with it. This can save an individual several hundred dollars when all things are said and done. Of course, it is important to make sure that there are no penalties for paying the loan off early before actually doing so.

Following these tips will help keep finance charges to a minimum, even on short term loans. It is important to do so because there is simply no need to pay more money than necessary to pay a loan back in full.

Understanding How To Leverage A Balance Transfer To Your Maximum Benefit

Credit card balance transfers can be an extremely useful tool to help you manage credit card debt. This allows you to transfer any outstanding credit debt, be it from one card or several cards, usually cards with a high interest rate to a card that has a much lower interest rate. Balance transfers are like the refinance of the credit card world. This tactic works best by taking advantage of a balance transfer credit card offer that has a 0% APR on balance transfers for a set period of time, with the best current balance transfer offers giving you 18 months of no interest on balance transfers, giving you time to pay the balance off in full and avoid interest charges. While balance transfers are relatively simple to do, there are some things you should know about, before you do a transfer, during as well as afterwards.

You want to keep current with all of your credit card payments before you even consider doing a balance transfer. The reason is the best offers require good credit or better. If you slip on payments this can effect which offers you qualify for. maintaining your credit will allow you to qualify for the best possible offer on the market and potentially save you a lot of money. The new offer could be a brand new card, or it could even be from a card you are already using via a promotional financing offer.

The next thing you need to do is to read the fine print of any offer you are considering before you even click submit on the application. many balance transfer offers have hidden fees. Some offer 0% APR for a set period of time, but if you are late on a payment by even one day you lose the 0% intro APR or worse yet get hit with interest from the date you did the balance transfer. You need to know your cards credit limit, the interest rate you will pay after any promotional period ends. Most of these offers have whats called the balance transfer fee, in fact all but one offer I know of has a balance transfer fee. balance transfer fees are usually set at 3% of the total amount transferred, but a few cards go as high as 5%.

Once you have selected a card offer to do the transfer with, you need to make a solid plan of action to pay off the balance in full or as close to full as you can while the promotional financing offer is active. When you complete the transfers, keep the old accounts open to avoid harming your credit score. By keeping the old accounts open you help to maintain a low credit utilization ratio, which helps to boost your credit score.

Next contact the credit card you are making the transfers to and provide them with the account information needed to make the transfers. Try to make over the minimum payment per billing cycle, remember your goal is to catch up on the debts, not post phone the debts for a few months. When you have repaid the entire debt do get a statement saying so, and keep it for seven years, as there have been mistakes with files where the old credit card company sends an account to collections even after it has been balance transferred. Remember good record keeping is your friend. You also want to avoid making any purchases on the card your transferring your old debt to, if the reason for the balance transfers was to pay down your debts, adding to your debt will foil that plan in most cases.

Other facts about balance transfers:

• Your other credit cards cannot deny you a balance transfer, in fact all they will see is the payment made on your behalf.

• Balance transfers by themselves do not harm your credit score, however each time you open a new credit card, your credit score may take a temporary hit that can last from 3 to 6 months.

• Some cards allow you to transfer non credit card debt, this includes mortgages, auto loans, small business loans, and student loans, HELOC, small business loan, and payday loans.

• You cannot do a transfer between accounts with the same company, for example if you have an American Express platinum you cannot do a balance transfer to an Amex EveryDaySM Credit Card.

• It takes 10 days from the date you open a new account to finalize any balance transfer, due to the Dodd-Frank Wall Street Reform and Consumer Protection Act, Regulation Z. This is to give consumers time to review terms, fine print, and other conditions of any balance transfer.

• Some credit cards will offer rewards on balances that are transferred, allowing you to get a nice bonus while saving you money thanks to any 0% APR intro offer you may be taking advantage of.

Additional Resources
2014 Best Cards Reviewed

Signature Lenders Now Offering Loans Over $1000 Online Up To 36 Months

What are Signature Loans

Signature loans are personal loans offered by banks or financial institutions with borrower’s signature as collateral. It can be used for any purpose and purchase the borrower chooses and the interest rates are normally higher due to the lack of real things to pledge.

Signature loans are commonly referred to as ‘character loan’ or ‘good faith loan’. These loans come handy if you are a first-time borrower, have problem with credit, can’t document other assets or need money for an urgent purchase or an emergency situation. The lender will ask for a source of income or credit history before issuing this loan. In some cases, a co-signer may be required to sign a promissory note. There are many signature loan lenders in the current market. For example, Patelco credit union offers signature loans to its customers for an amount up to $25,000 with a fixed rate and terms varying from 12 months to 60 months. NIH federal credit union offers low interest signature loans for specific professionals, such as doctors, nurses and caregivers.

Why Stay With Online Lenders

There are plenty of lenders that provide a loan over $1000 with a 36 month term, so finding them is not so hard. In fact, there’s so much to choose from, you hardly know where to start. Financial advisers and brokers know all the lenders that offer signature loans. Their job and yours, is to shop the market and find you a suitable loan at a favorable rate. Getting a signature loan through local banks with physical address should cost exactly the same as on the internet but some of them overcharge in ways you don’t suspect. For example, they might steer you into higher rate by telling you that it’s the best package for poor credit. Other times, they may tell you that the market changed and hence the higher rate or say they are charging you one point and offer a loan with a hidden extra point. To be sure you are dealing with an honest lender, see what you get. Online is the best way to document all your dealings, so you have the proof of all emails exchanged between you and the lender. Certain financial institutions offer this type of loan online for low interest rate and fees. After an initial conversation with such institutions, you will be able to get the best rate for your needs. Once the loan closes, the bank will probably sell it to an investor virtually, so you get particular advantage from borrowing the loan online.

Capital One Quick Silver Highlights List Of Top Credit Cards For January Of 2014

January 1, 2014 – Dateline Chicago, Illinois

Welcome to 2014, the editorial staff from has been hard at work reviewing hundreds of credit cards over the past month in anticipation of the New Year. The start of 2014 brings optimism for consumers in the market for a new credit card as many of the top issuers have improved and enhanced some of the top card offers from last yearas they cultivate marketing offers geared towards attracting consumers in an improved economy. This is great news for current card holders and customers seeking new credit cards as the offers will likely include larger rewards, more cash back, longer periods of zero percent and new perks such as credit score monitoring.

The Quick Silver by Capital One was selected as the top overall credit card available in the market out of hundreds of credit cards. The card falls under the category of cash back/rewards cards one of the most sought after categories for consumers. What makes the card unique is that it offers 1.5% cash back on all purchases which is the highest percentage of all cash back credit cards. The Quick Silver Card also comes with a zero percent interest rate for purchases and balance transfers for the first 12 months, taking you into 2015. As an added incentive their is an opportunity to earn a $100 bonus if you accumulate over $500 in purchases during the first 90 days the card is use. Rounding out the top 5 credit cards identified as the top offers for January include: DiscoverIT (1% cash back, zero percent interest for 14 months), Bank America Travel Rewards (1.5 points for each $1 in spending), Slate from Chase (top choice for balance transfers), Capital One Venture Rewards (2 points for each $1 in spending on travel).

Consumers searching for the best card in 2014 should start by idenifying their spending habits and financial goals. With hundreds of cards to review and choose from finding the best card is really a unique proposition relative to your own goals. Whether you are searching for a balance transfer, travel rewards, student or zero percent credit card you will find dozens of credit card offers worth considering. The good news is that each category is reviewed and sorted at making the process of finding the right card super easy.

Steven Moore

Key mistakes to avoid with holiday financing and credit purchases

With the holidays approaching quickly it may be tempting to take unnecessary financial risks to ensure that everyone has a happy holiday. There are, however, a few key mistakes that you should avoid at all possible costs. Everyone, at one point or another, has felt the post-holiday debt blues. It can be quite a let down from the joy and excitement of the holidays. By following a few guidelines you can make those post-holiday blues a little brighter. And save your credit score in the process.

First and foremost don’t spend too much money. You should make a holiday budget and stick to it. Take your time and make sure you include all expenses for the upcoming holiday. It is easy to get caught up in the holiday spirit and spend way more than you meant to. It may be necessary to make a list and keep up with how much you have spent to make sure that you do not go over budget while you are shopping. This way, no matter who you are shopping for, you won’t be as easily tempted to buy “just one more thing” for a person that you have already finished shopping for. A list can also help you avoid forgetting to buy for someone.

These days, every retailer around seems to offer a store credit card with an initial percentage off of your first purchase. If you are shopping at several stores and they offer you this, it may be tempting to accept at each store. The initial savings are great, but your credit score can suffer if you open up too many revolving accounts in a short period of time. The other pitfall is these cards often times have high interest rates that can eat up those initial savings quickly. Many people don’t think that several new store credit card payments coming in at the same time of the month can quickly ruin your regular monthly budget, perhaps forcing you to seek a loan or other finance avenue which could put you further behind the eight ball with your money going into 2014. Try to use the cards that you currently have and forgo the temptation of enjoying the initial savings offered by store cards.

Another mistake people often make around the holidays is running their balances up too high. If you can keep your balance under thirty percent of your credit limit it really helps your credit score. If you must go over that portion of your available balance, try contacting your credit card company before maxing out your limits and getting a limit increase. If you have been a good customer, this should not be hard to attain. A quick phone call asking to raise your limit for holiday shopping can literally save your credit score from getting dinged unnecessarily.

Guide to finding the best credit card offers for 2014

In today’s modern society, it may seem like it is necessary to have a credit card on hand at all times. While you might occasionally shy away from using a credit card, this item is going to help you build your credit and make sure you are always able to purchase what you need. Of course, not all credit cards are created equal, which is why you need to have a guide to finding the best credit card offers for 2014.

Current Bank and Credit Union

The first area to consider is your current bank and credit union. These facilities already have all of your financial information and you don’t have to usually provide additional content in order to apply for a card. Also, it makes paying for the card easier and it is going to often drop your interest rate. Because of this, you need to look into what your bank offers you. Often times, this are just basic credit cards, so if that is alright with you, you are going to find that it should be just fine for applying for the card. However, if you want a credit card with perks, travel points or other benefits, you need to look elsewhere.

Travel Cards

If you love to travel and are looking for a travel card, you need to consider different travel companies you work with a lot, as this is going to give you the most potential use for the travel points. If you typically stay, for example, at a Hilton hotel, or if you always fly with Delta, you can go to their websites, as these website are going to offer you credit cards that help you earn points directly towards stays and flights, which is exceptionally helpful. These are going to prove to be the most beneficial travel cards available to you, although you can go directly to the major credit providers (Visa, American Express, MasterCard, etc.) and see what are directly offered to you. American Express often provides exceptional benefits and points, although it is not going to be accepted in as many locations, and you might have to pay a higher yearly fee.

Credit Fees

With your bank credit cards, these are usually going to come with lower interest rates and, with the general cards, there is almost never a yearly fee. The yearly fess is something you need to look out for. There are many perk-based cards that charge you a fee every year. Credit cards with these larger fees need to be looked at carefully, and you need to determine if you can afford it and if the perks are worth the extra fees. All of this must be in your mind when looking at different credit cards that you are interested in. Often times, you can find a similar credit card that does not have any yearly fees when compared to another that does.

Online Finance Companies Make Unsecured Loans Easy, But Avoid These Pitfalls

An unsecured loan is now easier to get than ever, but with that emanates the need to look closer for the pitfalls. Finding an online finance company is only a click away using your computer or phone. Finance companies sometimes label these loans as Installment loans, Payday loans, Signature loans or Personal loans. The results yield quick cash for a fixed term. Their application process is convenient, easy to fill out, and the expectation for a great credit record isn’t a stipulation, in fact, there are usually no credit checks.

The application guidelines for an unsecured loan are simpler and the results are faster. They will not inquire why you need the loan, so you will be able to spend this money for whatever you’d like. You‘ll find that most banks and finance companies that offer unsecured loans are quite amiable and happy to assist you.

Unlike a secured loan, the finance company of the unsecured loan will not expect collateral for this loan. As a borrower of this loan, you’ll not be asked for collateral such as land, a home, or an automobile for this loan. Not asking for collateral for an unsecured loan, the finance company recovers its expenses by charging higher interest rates and fees. If the borrower cannot make payments on an unsecured loan, the lender can just take legal actions for repayment of the loan. Nonpayment of an unsecured loan will lower your credit score. Paying off your loan on time is an excellent way to boost your credit scores.

Depending on the lender, there can be a considerable amount of fees associated with your loan, which adds the final amount of the loan. As you read your contract, you may find additional fees beside the interest fees. You need to be aware of these fees because they add up quickly. You may see charges for 1) Application processing fees, 2) late payment fees, 3) fees for extending loan, and 4) penalty fees for paying the loan off early.

Your credit rating drives how high your loan’s interest rate fee will be. If you have good credit, the finance company will be willing to offer you a lower rate. These loans usually have very short payback periods, which make the interest at first seem reasonable. You’ll find a major pitfall of an unsecured loan if you fail to pay the loan off on time, or need an extension on the loan.

Finance companies make their money from the high interest on these loans when people can’t make their payment. It’s in your best interest to pay the loan back at the required time. On a 2-week loan, 15% doesn’t seem too harsh to pay. As you extend over a year with this type of loan, you’re just throwing your money away on interest fees. The interest fee for an unsecured loan over a longer period of time can be excruciating. In addition, keep in mind that interest paid on an unsecured loan cannot be taken off on your income taxes like a secured loan.

Learn to be diligent when discussing the terms of your loan. Setting up a comfortable payment and schedule plan that you can manage will save you grief, and the expense of additional interest and bank fees. A simple loan can become a nightmare, if you underestimate your ability to make your payments. Be honest and let the lender know what you are capable of handling.

The most important pitfall is when people don’t have a comprehensive understanding of the terms of their loan contract. You cannot take the loan contract for granted. Online finance companies will not request a massive amount of information or securities from you for this type of loan. Realize though, you are responsible for the terms of the loan. Reading and understanding the lender’s requirements is important, if you don’t, it will get you into serious financial trouble. Learn what will be required of you and what the terms of the loan are before you sign. Falling behind on payments can be costly and you will end up owing much more than you borrowed.

Responsibility for the additional fees, and interest rates that contribute to the final amount borrowed fall to you. Each finance company has their set of policies that you will be obliged to fulfill in a loan process. When you sign for an unsecured loan, it’s considered a legal contract with that lender, even if you are using an online signature. You will be legally obligated to respect the conditions that you sign for on this loan. If you fail to undertake the terms of the contract you signed, the finance company can take legal actions against you. You can help yourself by knowing the terms of your unsecured loan and avoiding the pitfalls.

Credit Unions: Who regulates them?

A credit union is considered as an organized financial institution that is owned and operated by a board of volunteer members, who are also one of the account holders in that specific credit union. The World Council of Credit Unions has defined credit unions as cooperative, not for profit institutions. It functions to serve its customers by promoting savings, extending loans at favorable rates, and providing different kinds of financial products and benefits. Credit union systems differ in functions, size, and overall assets as per the country of location.

Who can join credit unions?

The membership of varied credit unions is determined by the unions’ common bonds. Such a bond can be the workplace or the residence of the members, or their membership to an association like schools, trade unions, and churches, etc.
State chartered credit unions

The different states in America regulate their respective state chartered credit unions. The affairs and management of such credit unions are overseen by volunteers and private members. As per ‘Financial Markets and Institutions’ over 72 percent of the funds in these credit unions consist of draft accounts and member savings. State chartered credit unions provide different kinds of accounts such as share certificates, share draft accounts, money market accounts, and share accounts. A state employee credit union is an apt example of a state chartered credit union.

Corporate credit unions

Also referred to as central credit unions, corporate credit unions offer investment opportunities, financial services, and loans to its consumer member credit unions. The National Credit Union Administration (NCUA) or some other state body charters and manages corporate credit unions. One of the best examples of a corporate credit union is the U.S. Central Credit Union. It was founded in 1974 so as to provide credit services to different credit unions. It extends an array of payment solutions to over 7,900 customer credit unions, as of April 2010. Domestic wires, electronic bill payments, automated clearing house, and international services are some of the facilities offered by corporate credit unions. The available investment opportunities consist of loans and lines of credit, reporting and brokerage services, term investments, investment advice, and network security safekeeping program or NSSP. It is used for safekeeping all corporate and credit union securities. The NCUA has stated that thirty two federally insured corporate credit unions are located in the United States.

Federally chartered credit unions

Federally chartered credit unions are not for profit credit unions which have been chartered by the union government. ‘Private Wealth Management’ has stated that federal credit unions are regulated by the National Credit Administration. These unions are decentralized. Investment, loans, credits, and other financial services are managed by its members. The board of volunteer members who govern and manage a federal credit union are also elected by the members. The chartering of the federal system of credit unions was established in the year 1934 after the passage of the Federal Credit Union Act by the Congress. Before this act, a majority of credit unions were state chartered credit unions.

Online Loans Allow Consumers Privacy and Convenience, But What Do You Need To Watch Out For

When it comes down to loans the burrowers don’t always want the world to know their business. Technology has made it incredibly easy to conduct business transactions like online loans with the utmost amount of privacy. These loans are also convenient because there are fewer stipulations involved to actually receive the money. The reality, however, is that not all online loan processes are good. Some are downright dangerous. It is wise for people that are seeking online loans to be very watchful of the following concepts.

Identity Theft

There are a lot of companies that send postal mail and advertise websites that may sound too good to be true. There may be no credit checks or anything of that nature. Somehow these companies that require so little are waiting for eager customers to sign up for a loan for thousands of dollars.

It isn’t wise to be so naive with giving away information to these types of organizations. This could easily be a scam in the making. It is much better to get access to some information that verifies that the company is legit. So many people sign up for money and lose more money as a result of an identity scam. Companies that charge fees and require debit or credit card information upfront are sure signs of fraud and possible identity theft scenarios.

Higher Interest Rates

The people that have bad credit are accustomed to high interest rates, but sometimes the rates can be abnormally high. What people have to remember is that every organization that offers loans is not regulated by the FDIC. This means that these organizations can charge much higher rates than the traditional banks. Many times companies that have these payday loans with have unheard of rates on interest that are high as 30%. People that are signing up for loans must look at the fine print.

It is very common for people to go through websites for online loans without paying any attention to the terms and agreements. In many cases the terms are not listed on the sign up page. There will be a hyperlink with a pop-up box that discusses interest rates and any fees associated with the loan. The problem is that people can simply check a box to say that they have read the terms and agreements without truly reading these things. Smart burrowers do not want to do this. A person that is trying to make the best possible decision will want to read as much as possible about the rates before making the commitment.

The Payback Timeline

People that are interested in the online loans should be aware of the payback timeline. So many people get anxious to get the loans, but many individuals fail to see when the payback period comes into effect. It is good to know this because it can prevent unnecessary charges.

Online loans are convenient, but burrowers have to do their homework. Individuals need to know all the details of the loan upfront.

As Economy Improve Bad Credit Loan Financing Gets Easier

Why should you opt for bad credit loans?

The credit market of United States has seen its worst during the last decade. Several mortgage companies have shut shop and the share market tumbled doing great damage to the US economy. This in turn has led to many other factors, one of which was unemployment. Several thousands of executives have lost their elite jobs which had further worsened the already ruined credit market resulting in more defaulters of the loans. It is during this phase that many people have lost their credit scores as they were not able to pay their monthly mortgage or any other loan installments on time. Once the credit score of the borrower goes below the recommended level, it becomes difficult for him to get loans from banks or financial institutions. To help them to get loans, many financial institutions have come out with a plan called as bad credit loans. Bad credit loans are easily available online and have many advantages.

Benefits of bad credit loans

There are different varieties of bad credit loans available online. The loan amounts ranges from as low as $100 to a no maximum limit (the maximum amount differs from one lender to another, however, it is generally $10,000 approx). The amounts are good enough to meet your emergency needs. The processing time of the applications and the APR increases with the amount; however, due to risk involved; the amount offered as loan is much lower. The user gets the same day loans, cash advances and installment loans with very less processing time and with the facility of same day credit. There are many websites available where the users can compare the loans offered by several companies and finish the application online.

What makes bad credit loans quite sought-after ?

Bad credit online loans are different from the payday loans which are mainly been targeted to the salaried individuals who receive regular paychecks from the employers and the borrower is asked to repay the entire loan amount before the next payday. Contrastingly, the bad credit personal loans are open to everybody and they can be repaid for a longer time. However, the online companies which offer bad credit loans have some general eligibility requirements which a person is required to meet. First, the borrower should have a repaying capacity; he may be employed, self-employed, receiving social security, etc. Repaying capacity decides the amount of loans. Second, he should be a citizen of United States and must be above 18 years with a bank account.

Online loans are also offered very quickly. Some of the online companies give an instant approval of the loans applied through a one minute process and the amount being credited in the borrower’s bank account within an hour. This can prove to be highly beneficial for those who need money to meet their emergency expenses such as paying bills or avoiding penalties. Since loans are available online, the borrowers can apply for the credit anytime anywhere.

Credit is the necessity of life and people would require loans to meet their urgent requirements. Online loan companies understand that the bad credit score of your previous loans should not be a hurdle for you to devoid of fair lending.