Even though credit seems to be all around us these days, many people still have a difficult time getting their hands on some. Whether you have bad credit, no credit history, or can’t get credit for any other reason, the following tips will help you work the system so you can get the fast loan or credit card you need.
Tactical credit applications
The more times you apply for credit and don’t receive it, the harder it will be to get it at all. This is a downward spiral of credit application, and you can avoid it by using your best judgement about your chances of getting acceptance before you apply. If you know you’re not a good candidate for credit, go for the higher interest loans and credit cards right off the bat to prevent your situation from getting worse.
You may have thought your credit borrowing days were over when you first opened your business, but in many ways expanding your business is similar to those start-up days. If you are looking to grow your business, you may need to borrow money to get more working capital, either to finance additional expenditures or to finance a new building, assets or staff members.
There are a lot of expenses associated with expanding a business, but luckily there are also a lot of credit options that can give you relief. The following are just a few of the options available to you if you’re looking to grow your business on credit.
Medium or small business finance borrowings are there to be used for the operation or acquisition of a business. To get this type of loan, you usually need to secure it by using a residential or commercial property as collateral, but in certain circumstances the lenders may allow you to borrow against the value of the business. How much you can receive, of course, depends on factors like your cash flow, how long your business has been operating, and so forth. The great thing about these types of business loans is that they are also tax deductible.
Having inefficient debt is a huge obstacle that most people face when they are trying to improve their financial position, so it should be eliminated as quickly as possible. One of the best ways to do this is to minimise the amount of interest you have to pay by consolidating your loans.
Generally, people prefer to consolidate their debt into their home loan because it offers the cheapest rates, rather than personal loans and credit card debt that tend to have higher interest rates. If you think this strategy is right for you, the following steps will help you pay off your debts faster through consolidation.
Step 1: Get your debts in order
Go through all your statements and find out how much you owe and to whom. You may have debts such as a mortgage, debt to family members, cash loans, credit cards and so forth. Make sure you have a good understanding of the interest rates of each loan type, and tally the final amount.