Credit Cards: How To Use Them
August 31, 2007
Credit cards can be a very quick way of getting into even more debt if you do not know how to use them properly. UK debt is now at an all time high and, excluding mortgages, Credit Cards are one of the main contributors.
It’s a lot easier to get a credit card than it is to get a mortgage or a loan. So it makes sense that more people own a credit card. With interest rates that are quite high in relation to loans and mortgages you can see why the debt can get out of hand.
In order to get the best value for money out of your credit card you need to be disciplined in the way you manage your debt.
Make sure you make the payments every month:
If you cannot pay off the whole amount every month make sure you pay at least more than the minimum required. This will help you pay more of the capital off every month. Make sure you take advantage of the interest free periods in this case.
Don’t abuse your credit limit:
Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying
August 30, 2007
Do you know what it takes to qualify for mortgage and refinance loans? There are several factors involved with qualifying for a purchase, refinance or equity line of credit, and having an in-depth understanding of these could make the difference in you being accepted or turned down by a bank loan officer.
Here are some things loan underwriters use in seeing if you qualify for a loan: your credit rating; your income; the amount you wish to borrow vs. the value of the property, this is known as loan to value or LTV; your assets; cash on reserve to cover down payments and reserve funds to cover a few months worth of mortgage payments, in the event you can’t pay for an indefinite period of time; your employment history.
Most people worry about credit, even people who have excellent credit. Credit is such an unknown. Put your mind at ease. You can purchase a house with poor or no credit at all. In fact, with a poor credit rating and only 3 percent for a down payment, you can get an FHA loan. FHA is not a credit score driven program, so you can qualify this way if you have to do so.
Im Broke, How Can I Afford…
August 29, 2007
I’m still amazed every time someone comes to me complaining that they don’t have any money to put into their business and that they’re broke.
I mean what have you been doing with your money man?!?
Plain Truth: If you don’t have any money you won’t make it my friend? it’s that simple. You have to at least have some money. Say $200-$500. I don’t care what the self-styled slick gurus tell you. If you’re flat out of cash your dead in the water before you can even start.
Now let me tell you another thing?. I DO NOT BELIEVE THAT YOU ARE BROKE! You’re a liar and a self deluded one at that if you think you are.
I mean how many Starbucks or soda do you drink a day?
How many beers a week do you drink?
How many cigarettes do you smoke?
How much meat do you eat?
How many new clothes have you bought in the last month?
How many "gifts" have you just had to buy?
How many magazines or newspapers have you bought this month?
How many CD’s?
How many snacks?
Credit Card Balance Transfers Can Help You Stop Putting Money Down The Drain
August 28, 2007
As you probably know, interest rates are at all time low right now and if you aren’t getting the best deal from your credit card company then they owe it to you to either lower your rate, or you owe it to yourself to find a better deal. You see, credit card companies need your business in order to succeed and if you refuse to pay a penny more than you have to then you’ll be doing yourself and others a big favour indeed. By doing this, you’ll avoid paying more than you should and the companies will stop treating its clients inappropriately.
Now that this is clear, we will talk about the essentials of balance transfers, how they work and how you can ensure that you get the absolute best possible deal.
1. First and foremost, understand what a balance transfer is. A balance transfer is when you transfer the balance from one card to another in order to get a better interest rate than the one that you are currently getting.
Parent Loans or Student Loans ? What is Going to be Best for My Child?
August 28, 2007
Parent Loans or Student Loans ? what is going to be best for my child?
At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option ? student loans or parent loans? Each has distinct advantages and uses.
Federal student loans
Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.
Federal parent loans
What You Dont Know About The Real Estate Process, Some Inside Secrets
August 27, 2007
Some people in the real estate industry have a terrible reputation. Why, because they deserve it. A lot of hard earned money trades hands and if things go wrong that leaves a very bitter taste in the injured parties mouths.
In real estate most people stay in the house for a long time. If they don’t, many times they sell the house themselves or quite often deal with different professionals the next time around. This doesn’t always mean they were dissatisfied the first time. Sometimes a new agent sells him or herself. Believe it or not sometimes the property will be listed and a seller and buyer meet. Then when the listing expires, guess what.
The mortgage company is usually the one that profits most from the transaction. Sometimes the seller makes a pretty nice profit. In my opinion agents and brokers usually make too much money for the service they are supposed to provide. For example a broker can make $18,000 or more on a $300,000 house which is no more work, in fact usually it is less work than a $50,000 property. The other professionals, excluding the mortgage company, charge a very small set fee. An appraiser only gets $300 to $400 which is regulated by VA (for VA loans) and the market. The attorneys, surveyors and inspectors get even less. If they charge more, most agents will use someone else.
Mortgage-Refinance Treachery: Avoid Mortgage Bankers and Brokers Biggest Trick — The Sales Pitch
August 26, 2007
What the average homeowner or home buyer fails to realize is that bankers, loan officers, mortgage brokers, or whatever your lenders call themselves, are salesmen. Certainly, if you purchased your home from a realtor and used her lender, you most likely got a feeling of trust in that person, because the realtor referred him. Beware of this potentially dangerous water. “This guy will help you complete your loan,” the realtor will tell a prospective buyer. “He’ll help us close quickly, and you’ll be in your new home in less than a month.”
Suddenly, the banker is a guy who will help you. Now, he’s your friend. The intention here is not to scare you into thinking that everyone in the mortgage business is a bad person, looking to rip you off, but don’t trust this guy, just because a realtor sends you to him. Remember, they work together.
The realtor needs the sale, and the banker needs to make loans. They are both salesmen, and salesmen are people who make commissions, based on a particular price. This goes for loan officers, just the same as it goes for a realtor or a car salesman. That used car salesman makes more if you pay more, and the mortgage banker makes more, based on how high your interest rate is.
Learn How to Improve Your Credit Score
August 25, 2007
Having a damaging credit record can hurt you in many ways. It may prohibit you from making an important purchase such as a home, car, computer or vacation. Without a healthy credit report you are severely limiting yourself from possible lenders. If you do find a lender you will undoubtedly be charge exorbitant interest rates far exceeding what recipients would receive if their credit history is in good standing. So how can you fix your credit score if you’ve been less than diligent with repayments to creditors? Well contrary to what many advertising scams will tell you, you can’t fix your credit overnight. In most instances it takes 7 years for a payment infraction to be deleted from your credit report. If you were to file bankruptcy it would take 10 years. Obviously fixing the problem before taking such drastic measures is desired. Bankruptcy must be used only as a last case scenario and the implications must be fully understood before proceeding with such severe measure. Besides bankruptcy staying on your credit history for 10 years and posing large problems if you decide to seek out a financial lender, it can also impact other areas of your life. For instance you may be rejected from certain jobs, prohibited from taking on certain responsibilities and positions within your own company if you are a business owner and you will still be in the bad books of the people who you may require to lend you money.
Financial Aid for College Students - Grants
August 24, 2007
The bad news about attending college is that it costs more than ever to attend. The College Board estimates the average four-year public college costs almost $5,000 per year to attend and a two-year public college is almost $2000. And that’s not counting the skyrocketing cost of textbooks or other class fees. The good news is there is more than $105 billion dollars available in student financial aid. Some of this money is available for free?in the form of college grants.
While there are many options to consider financing your college education, this article will discuss specifically grants for college.
The most common form of Federal grant money is the Pell Grant. The amount awarded is based on your financial need and it is for undergraduate study only. Pell Grants can be awarded to part-time students. The maximum amount of a Pell Grant is $3000 per year and it can be combined with other grants or financial aid.
Another common federal grant is the Federal Supplemental Educational Opportunity Grant or SEOG. Like the Pell Grant, the SEOG is awarded based on financial need and is for undergraduate study. This grant can be combined with other school grants or financial aid, but the cap is $1000 per year.
Mortgage-Refinance Loan Measurment 101 — Evaluate Your Own Ability to Pay
August 23, 2007
We live in a society where people are losing their homes at an alarmingly high rate. There are several reasons for this, but one could certainly be avoided — buying a house that creates a loan that is too large for you to handle. This article will examine how to decide your loan size — whether you are purchasing or refinancing. We’ll look at this issue from the point of view of lenders and from the standpoint of what is actually best for you.
In a conventional, conforming loan — one in which you have good credit and good job history — a lender will look at what he calls “debt-to-income ratio.” Many mortgage brokers refer to it as DR (debt ratio). They also break it into two categories — front end ratio and back end ratio. A front end debt ratio calculates your gross monthly income against your new house payment. Conventional lenders want this number to be at 28 percent or less. So, if you make $3,500 each month in gross income (before taxes and other withdrawals), just take this number and divide by 28 percent. This new number is $980.00, which is the number the lender will use as your front end ratio. So in the lender’s mind, you can afford a house payment of $980.00 or less.
