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Three Loans that People Consider an Excellent Investment

May 2, 2021 by Leave a Comment

Should you ever get a loan? Why not pay cash for everything? Is that even possible?

Technically the answer is yes, it is possible to pay cash for everything. And it is probably the prudent way to proceed. Why would you go into debt and owe all that money?

People often view loans as a negative thing in the modern world. It is proven that people get into trouble when borrowing money from a bank. You can also get into trouble if you borrow money from friends or family. And of course it matters what you borrow the money for. Some things may be helpful in the long run. Others, not so much. 

There are a lot of different loans on the market that are designed to meet your needs. In fact, some of these loans many people would actually call a good investment. Let’s take a look at several loans that many consider good and one that is a little more iffy. 

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Borrowing Money with Bad Credit

January 22, 2020 by Leave a Comment

If you have made some wrong financial choices in the past, that doesn’t mean that you shouldn’t be given a second chance and a way to get back on your feet. And it doesn’t mean no one is willing to do so.

Conventional lenders such as banks or credit unions might decline candidates with poor credit reports because they don’t consider them trustworthy. Even a secured loan may be out of the question. Direct or online lenders may be more open to approving your application, but their terms won’t always be most favorable.

Here are some options to consider if you have bad credit and are looking to take out a loan.

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Why Online Loan Applications Can Boost Your Financials

December 1, 2018 by Leave a Comment

It doesn’t matter how hardworking and frugal you are, life is going to throw you a sudden curveball. An instance like that can change your financial security immediately. Be it some illness, the need for a vehicle, a house renovation or something else, it is not uncommon for such needs to arise.

Oddly enough, they seem to happen exactly when your bank balance is slim. That can leave you scrambling to figure out how to pay for it. If you don’t have an emergency fund set up, you may not have many other options than to see help elsewhere.

And for decades now, the solution to such problems would be a loan.

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Getting the Best Deal on a Personal Loan

May 1, 2017 by 1 Comment

It’s important to learn a few things about loans and the lending industry before taking out your first loan. Many people think that two loans that provide the same amount of money are completely identical. But this isn’t the case at all.

A lender might lead you to believe that if you can afford a monthly payment then you can afford a loan. In reality, this is only half of the story. You have to look at the big picture to understand if a loan is good for your situation. You may need to do some reading or get some outside advice.

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When to Avoid Zero Percent Financing Offers On Cars

October 5, 2015 by 7 Comments

At some point we’ve all run across an advertisement on TV from a car dealer pitching some form of incentive. Manufacturer incentives are special offers designed to entice you to buy a car. Overall they have been found to be very effective in drawing consumers to car lots.

zero percent financingThese deals usually come in the form of rebates (cash back) or a low annual percentage rate (APR). The APR is the amount of interest on the loan that you will pay during the year. Of course lowering the interest rate reduces your monthly payment. The lowest APR a manufacturer could offer would be zero percent. This means you pay no interest on the car loan.

Zero percent financing on a car sounds like too good a deal to ignore. Who should pass up free money, right? However, you may want to think twice before signing on the dotted line. There are several reasons these deals could be bad for the consumer.

The Story on Zero Percent Financing

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This Is What Happens When You Don’t Pay Back Student Loans

September 14, 2015 by 12 Comments

Student loans have helped many pay for the expenses of a college education. Of course you need to pay back student loans those even if you don’t graduate. Fortunately student loans have what’s known as a grace period – a set time after you graduate, leave school or drop below full-time student status before the loan repayment begins. The grace period gives you time to find a job or deal with a difficult life issue before you have to pay back the student loan.

pay back student loansIf you can’t or choose not to pay back student loans, you risk going into default. To default on a loan means you did not pay it back on schedule according to the terms of the promissory note ­– the legal document you signed when you received the loan.

The good news is you don’t have to panic if you miss one payment. Going into default won’t happen right away. If you miss a few payments your student loan will first be tagged with a delinquent status. It won’t officially go into default until 270 days have passed without a payment.

At that point, you will face some serious consequences. The U.S. Department of Education’s Federal Student Aid office lists these possible actions that may be taken if you default on your student loan:

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3 Tips to Boost Your Credit Score Before Getting a Loan

December 17, 2014 by 13 Comments

Getting a loan soon? In today’s guest post, Certified Financial Adviser Joseph Hogue shares some ways to boost your credit score before you apply for a loan.

The original title of this article was going to be, “3 Tricks to Boost Your Credit Score…,” but then I thought better about giving the impression that your credit score and lenders were something to be tricked into giving you a better interest rate. Like most things in life, there is no quick-and-easy solution to improving your credit score but with a little work and these three tips, you can save yourself thousands in interest over the life of a loan.

The graphic below shows the five credit score factors used by credit bureaus to determine your credit score and on which is based the interest rate you pay on loans. Using ways to manage each one of these will go a long way to boost your credit score and save big money.

boost your credit scoreMore than 5% of credit reports contain errors

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This Debt Relief Practice Was No Scam

April 18, 2014 by 10 Comments

Hidden Nuggets Series #36 – “At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release.” Deuteronomy 15:1-2

letters on small tiles that spell out the words "Debt Relief)How would the world be different if creditors were required to release the debt of individuals every seven years?

This actually happened in the Old Testament of the Bible as you can see from the verses above. God required the Hebrew people to release the debts of the poor every seven years. That’s right…if they still owed money at the seven-year interval, their debt was cancelled.

Sign me up for that program!

If this seems like an odd thing, consider God has always had a special place in his heart for the poor. There are many verses in the Bible related to the proper treatment of those less fortunate. I see this as God’s way of giving them a fresh start and squashing any potential exploitation of the poor at the hands of the wealthy to carry on indefinitely.

Whatever the reason it’s clear God did not want his people staying in a perpetual state of debt.

I’ve often wondered how this practice impacted their feelings about borrowing and lending.

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