Top Personal Loan Misconceptions

A loan is very helpful. It can help you to come out of a tight financial situation with ease. A good number of people have found it easy to make it in life because of acquiring loans on a frequent basis. For example, you can acquire a personal loan and use it to improve your life or settle debts. On the other hand, you can also borrow a business loan that you can use to start a business and generate enough income to sustain the business and pay back the loan. There are also mortgage loans which can be borrowed for purposes of real estate related investments. All these loans make it easy for the borrower to meet their immediate financial needs irrespective of how extensive they may be. But, people have certain misconceptions about loans. Such misconceptions are responsible for preventing such people from borrowing loans even when the need arises. Some of the major examples of misconceptions that people have about loans are highlighted in the passage. Continue reading

Why You Should Avoid Payday Loans

When you are in quick need of cash then you would find payday loans to be the perfect choice for you when you consider them. It only takes minutes and you get approved to receive small loan and all it takes is a direct deposit to transfer your money to your provided checking account inside 24 hours. Apparently, there may not be any other easier way of getting your desired amount of money. However, consumers should beware as payday loans come with some serious drawbacks financially. Here is why one should avoid these. Continue reading

Understanding Your Mortgage

When processing a mortgage loan, it is a good idea to have some sort of checklist in each file. This will enable you to keep track of what documents you have and those that you need to receive.  Most lenders require you to put the documents in what is known as a stacking order. The stacking order helps the loan officers and underwriters look through your file with ease. If the documents are grouped together in a certain order, the speed of your file being underwritten in a timely fashion is increased. Some lenders have their own stacking order, but most will accept a file that is organized neatly by you. Continue reading

Record Low Interest Rates Fail to Boost Credit Spending

Recent figures have shown that the record low interest rates have encouraged more people to take out home loans but have not been successful in stimulating the other areas of the economy.

According to Janu Chan, an economist at St George, there is a possibility that the Reserve Bank of Australia will decide to reduce the cash rate further to counter consumer caution. Chan noted that housing had reacted more than other parts of the economy.

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Zero interest loans

The superannuation industry act of 1993 states that unless the parties are dealing on arm’s length terms, a trustee must not invest.  A trustee can borrow from a member of the SMSF on a term of no arm length or more favorable to any other parties.

Low or no interest loan

The awareness of the zero interest loans is necessary for any superannuation savers with self managed funds.  The zero interest loans are made by the SMSF trustee under a limited recourse borrowing arrangement. Continue reading

Personal loans are a fast and easy source to achieve your goals

The stock market is down and doesn’t appear to be working up. Major companies make fatal and amazing ads each week, and layoffs news media fill. Good news is, there are other alternatives to be on top of the game.

An easy and quick source

Personal loans are a quick and easy source of funding that can get you out of a financial bind. But, you should also keep in mind that some financial solutions can be very expensive, so you have to think through the request and analyze pros and cons of each plan. Continue reading

Tips for Taking Out a Loan

Getting a loan has never been an easy process and the GFC only made loans harder to obtain. If you are looking to be approved for a loan, there are certain ways in which you can improve your appeal to lenders.

Below are some handy tips to help you make the right decision when taking out a loan.

  • Do your research. Before you commit to a lender, check what else is out there. The more research you do, the better off you will be.

  • Once you have found a loan that is applicable to your situation, contact the financing institution and make sure you fit the requirements for loan eligibility. Eligibility can vary between institutions.

  • Don’t over commit. When coming up with a repayment schedule, you need to be confident in the payment structure. It may be tempting to try to pay the loan off as quickly as possible but defaulting on a payment will leave you worse off in the long run than choosing to pay the loan off over a longer period of time.



Personal Loan Vs Credit Card

Credit cards are a convenient way that many people purchase items when their budgets are a little stretched. But is this the best possible option available? According to MSN money, a personal loan can often be a better option that swiping the plastic.

Below are a couple reasons why it would be wiser to opt for a loan over using a credit card:

  • When it comes to credit scores, credit cards will garner you a lower credit rating. This is because credit card debt is viewed as revolving credit and is based on your utilised credit – the amount of credit used in relation to how much credit you have made available to you. A personal loan on the other hand is classed as installment credit and does not affected by utilisation.

  • Personal loans require a payment plan, which means you are being forced pay down the loan each month. Credit cards on the other hand allow people to continually pay off the minimum monthly payment, which means you end up paying off a far greater amount.



How are loans processed?

In today’s age of inflation, nearly all of us have to depend on banks and other financial sources to get some financial aid, when needed. Today, all of us need loans in order to achieve various things in life. It is a simple procedure of applying for a loan in a bank. They will naturally conduct background check and other formalities before processing. Continue reading

How Personal Loans Can Help You?

There are those tough times when people may fall into debt. Even people with very successful ways of saving money could go into debt because of uncalled and detrimental situations such as damages to property or medical bills.  When these times arise, they can sometimes lead to problems. People going through a financial downward slope would need the help of lenders to help them. There are many ways to help get funding for whatever means but getting these loans approved is another story. This brings us to the topic of personal loans. Continue reading