Big Financial Mistakes

How Financial Mistakes You Should Avoid

Most of the financial difficulties are the ultimate results of handling finance in a way it ought not to be. He should do it with the right amount of money, otherwise the ghost may suffer in life

Tips to Correct Your Money Mistakes That People Should Pay Attention To:-

General Negligence of Personal Finance:

When someone organizes his/her finance in proper order, it would become easier to maintain the credit profile. If you owe a debt, you cannot disregard the matter as something insignificant. You should be conscious about the late payments and interest which can proliferate into a huge sum of amount soon.

Ignoring An Emergency Fund:

Unplanned expenditures are inevitable and if you are not prepared financially to meet the situation, you may land in a monetary crisis. Therefore, it is always wise to build the cushion of emergency funds to meet those unavoidable unforeseen expenditures. Emergencies will not pose a giant shadow if you are monetarily equipped to face it anytime.

Relying on Credit Cards:

When you start using a credit card for all your payments, you are prone to utilize it for short term loans Canada like purchasing some household utilities or some other necessities. These payments pile up and turn out to be a huge amount of debts which will drag you along at least for a few years. You must learn to spend from your income and do away with spending more than you receive.

Miscalculating Your Sources:

Mere assumptions sometimes lead to utter financial confusion. You may miscalculate the amount you require to spend on procuring something, maybe a car or a house. When the payments go beyond your plan, you may land up in a damaged financial condition.

Missing Out a Monthly Budget:

Anything done without proper planning ends in a failure. Though it requires time and commitment, a well-tailored budget for the month pays its dividend without a doubt. Planning ahead for the monthly expenditures helps you manage your entire financial status.

Missing Out Your Long-Term Visions:

Always keep your future milestone in mind while going in for a big financial deal. Presume your future requirements of cash whether committing in wedlock or buying a house or retirement plans, keep aside the required amount to be without anxiety and stress.

Long-Time Pledging:

Never commit to mortgage any of your assets to clear the debt before retirement. You may have to pay a huge sum of interest and it will get dragged even after you retire from your job.

Committing In a Joint Loan:

You should be a bit careful when it comes to the question of co-signing a bond because it will have a discouraging image on your credit records.

Read More

House-Hunting Mistakes

Top House-Hunting Mistakes

3 Dangerous House Hunting Mistakes to Avoid

House hunting is an exciting task. You go for a host of house tours and the possibility of finding the perfect house keeps you motivated. Nevertheless, some grave mistakes can make house hunting sour. You may end up buying a house, which is not meant for you. Refrain from committing these 3 mistakes and save yourself the disappointment:

You Mentally Start Living in The House You Have Not Yet Bought 

During house hunting, you may stumble upon a house that is just what you are looking for. With perfectly sized rooms, a beautiful porch, and spacious kitchen, the house envelops your mind. You start imagining living in it already. The reality hits you hard when your realtor mentions the price tag. You can avoid such heartbreaks by touring houses that are at the lowest range of your budget. With affordability guaranteed, it would not hurt you if you fell in love with the house.

You Become Desperate

No one knows how much time you need to spend before you find an affordable house. In case the house hunting is not yielding any positive results, you should drop it for the time being. Let a few months pass and then, begin the search again. If you buy a house just because you did not find anything better, your heart will not be in it, and you may have to consider moving again.

You Think You Can Fix Even The Major Flaws

Your family may appreciate your handyman skills when you fix a faucet or a table. However, you should not overestimate your abilities because you may have to pay dearly for it. Do not agree to purchase a house that requires major mending work. If the flaw is related to the main structure of the house, know not only you will require skills of a professional but also you will need to spend considerably for getting materials for repair.  

What Should Consider Before Opt Refinancing?

Refinancing your mortgage is a good idea, as it allows you to pay lower monthly payments. However, before you opt for it, you need to take into consideration a few points:

How Much is Your Home Equity?

Equity is the difference between amounts that you still owe to the mortgage company and the current value of your home. If your percentage of equity is low then you may not qualify for refinancing. Low equity means you owe your lender more than what the present value of your home is. In such a situation, a lender may not let you refinance, as it could spell a loss for him. Nevertheless, if you still wish to go for refinancing, you should openly discuss it with your lender so that there could be a way out.

What is Your Credit Score?

Your credit score will play a crucial role in this regard. If you have been able to improve your score by making timely payments then your lender may become ready to refinance. Since your credit score has become high, you will qualify for a loan at a lower interest. Hence, refinancing is a brilliant idea in this case. On the other hand, if your credit score has not improved or has dipped further, you may have to pay higher interest if you refinance your loan. 

How Much Will Be Your Refinancing Costs?

Refinancing of a home loan can cost anywhere from 3% to 5% of what you have borrowed. But there are ways of bringing down the cost. Discuss with your lender if the cost can be included in the refinanced loan; it will increase its principal. You may also ask your lender to divide the cost and add to the interest amounts. Once the interest covers the cost, it will come down to what it was originally. Do not hesitate to negotiate to refinance cost with your lender, as it is always possible for him to pay some part of the cost by himself.

Read More

Bad credit personal loans

How to Get a Personal Loan With Bad Credit

What Is A Bad Credit Personal Loan?

We are external financial help borrowed from a bank, credit union or online lender that you will need to pay back in fixed monthly payments or installments typically over two to five years. The rate of interest on our loans varies from lender to lender. Personal loans can be either secured or unsecured. However, most personal loans are unsecured in nature and are not backed by collateral.

How It Work?

Submit The Loan Application

To be approved for a personal loan, you will first need to apply for it. These loans are easily available online from a range of well-known and trusted lenders. All you need to do is fill up a simple online application form with your basic personal details and just click to submit it. It won’t take more than a few minutes to submit the form. You need to read about the terms and conditions of loans carefully before finalizing any decision.

Getting The Funds:- It takes a few business days to get the amount in your bank account. The actual time varies from lender to lender and bank to bank.

What Rates One Can Expect To Get?

Interest rates on personal loans can vary, depending on several factors such as borrower’s credit, income, whether there is a cosigner or not. Also, for the borrowers with solid credit rating, the interest rates will be significantly lower than for those borrowers with a bad credit score.

What Is The Reason Behind Applying For A Personal Loan?

The reason to apply for such loan varies from individual to individual. This may include-

  • To consolidate debt
  • As an alternate to payday loans
  • To finance home renovation work
  • For handling unexpected emergencies
  • To take care of medical expenditure
  • To finance a child’s education
  • For settling wedding expenses
  • To make a big purchase
  • To take a dream vacation

What Are The Characteristics Of Bad Credit Personal Loans?

Personal loans market is huge and big. Everybody wishes to get these loans to accomplish their number of requirements. We are very popular in the Canada market and allow both homeowners as well as tenants to apply for these loans. We are provided for amounts ranging from C$5,000-C$25,000 or more, repaid over a term of 5-10 years. The loan amount depends on the need and financial capability of the borrower.

Eligibility criteria for we loans vary from lender to lender. However, the basic requirements to apply for the loan includes attaining a minimum age of eighteen years, having proof of regular income source, holding a valid healthy bank account in your name that accepts direct deposit and also having permanent Canada citizenship.

Before approving you a loan, lenders will check your credit score. They will do that just to determine your creditworthiness. People with good credit score have the opportunity to get a better rate on our loans as compared to the ones with bad credit tag. With modern lenders and improved financial market, people can easily get bad credit personal loans but at a higher interest rate.

What Are Things To Take Care Before Applying For A Loan?

Different lenders have different loan approval criteria for personal loans. Therefore, different lenders will offer different terms and conditions and different rates. Thus, you must take your time to compare loans from different Canada lenders. A good comparison will provide you with the opportunity to make a better choice. Making comparisons is not at all difficult or hectic. Many loan comparison websites are available online and provide loan calculators that will let you estimate how much one can get and at what cost. You can even collect loan quotes for free from different lenders and compare them carefully to get the most feasible loan deal.

The first and most basic rule that you need to apply ahead of applying for a loan is how much you can get and how much you can afford. You should not borrow more than you earn. It is a constant struggle to pay back the loan. Thus, you must make the right decision at a right time.

What Are The Benefits Of Bad Credit Personal Loans?

There are several benefits attached to we loans. Firstly, they are easy to qualify. Secondly, the process of getting loans is not lengthy. Thirdly, We loans are fixed loan term or a fixed monthly payment. Last but not least the amount borrowed with our loans can be used to meet several purposes. 

What Are The Disadvantages Of Bad Credit Personal Loans?

Despite several benefits attached to personal loan, it is not always a good idea to have them. Drawbacks of personal loans include:

  • Higher rate of interest than other loans
  • Origination fees
  • Prepayment penalties
  • Potential for scams as not all loan offers are legitimate

How To Get A Good Deal On A Bad Credit Personal Loan?

We are several steps that you need to take care to make that you get the best personal loan deal:

  1. Make Sure You Deal With The Legitimate Lender

Just be sure to stay away from a scam. First, you make sure that the lender is registered in your state. You can find this information on the lender’s website. If the lender’s site is not secure and doesn’t contain any street address, then it signifies that the business is fake. Other warning signs include assurance of loan approval without any credit check, asks you to pay the origination fee with a prepaid debit card or pressurize you to apply for a loan by saying it is a limited offer.

  • Don’t Sign Up A Deal Without Making Comparison

It is important to compare personal loans deal from multiple lenders before making any final deal. Check out the rates and terms of the loan, it’s APR and other hidden costs and charges before you actually apply. Consider visiting an online loan comparison website to compare loans at a glance.

  • Ask Yourself If You Can Afford It

When you are taking out a personal loan, just remember you are promising to pay it back on time. Failing to repay back the loan on time will cost you really high. Penalties and late fee charges will be applied that would make your loan even most expensive. So, before you sign on the dotted line, check if you can afford to make the monthly payments.

  • Try To Keep The Loan Term Short

Longer-term seems affordable as they are spread over for a longer time with lower interest rates. However, in most cases, the longer you spent on making payments, the more you will pay in interest altogether. In the long run, it is better taking out a loan with the shortest term to manage payments in a much better way.

  • Check For Prepayment Facility Without Any Penalty

Check whether your loan has a prepayment penalty or not. If not, then you must try hard to pay off your loan faster to save money on interest. You can make extra payments whenever you have spare fake private lenders cash or can add little extra to your loan repayment with every monthly payment. You can also check whether the lender will offer you any discount on early pay off of the loan.

What Are The Alternatives To Bad Credit Personal Loans?

Depending on your financial condition, taking up a personal loan may not be a good option for you. Before considering personal loan as a last resort, check out the alternatives and see if any of them works for you:

Balance Transfers- Check if you can qualify for a credit card with a zero-interest balance transfer offer as it could be a cheaper alternative to a personal loan. You can transfer the debt to the new card and pay it off within the introductory period, you will pay no interest.

Credit Cards- Borrowing money using your credit cards can be a wise option than applying for a personal loan. Check the interest rate on credit card and use a calculator to figure out how long it will take to pay off the debt and how much interest you will need to pay. You can also use a personal loan calculator to check the same. Compare the two numbers and see which loan is cheaper.  

Home Equity Loans- Get a home equity loan instead of a personal loan if you own a property in your name. It is a type of installment loan, allowing you to borrow larger amounts for lower interest rates than that of personal loans. However, you need to pledge collateral for the loan, so if you can’t pay, the lender will seize your home.  

Bottom Line:- Bad Credit personal loans can be a good way to arrange the ideal loan amount for handling some important financial requirements, but they are not the right match for everyone. Every individual is different and so are their requirements. Read carefully about terms and conditions of these loans and if they work in your favour. If applied, make sure to make timely repayment of the loan as they already come up with higher interest charges and can turn even more expensive in extended.

Read More