4 Ways to Get a Loan If You are Self-Employed

Get a Loan
Get a Loan

Self-employed individuals usually find it much more difficult, if not impossible, to get an approval for any significant loan. This should not surprise as most loan providers aim to avoid or lower exposure to risks. But it could be possible for such borrowers to actually be approved for any loan.

One logical requirement to get a loan if you are self employed is to generate or maintain a high credit score. Good credit rating could be a good start. That indicates your level of financial responsibility. Other than that, it helps to have a great bank account or a number of liquid assets. Here are four recommended and effective ways to surely obtain loan approvals even if you are self employed.

1. Keep your financial records precise and detailed. Make it a point to maintain your tax forms, receipts, bank statements, and business accounting records. Most loan providers avoid possible exposure to risk. As a self-employed individual, you have to convince your lenders that you are actually a good risk even if you are working on your own. There may be no other way to do that than to present documentary evidences that you indeed could take and meet financial obligations like loans. Present more proofs of your steady flow of regular income from any business or investment.

2. Select an appropriate loan type. How about a no documentation loan? The loan provider will not require and verify any income information. This type of financing product is best for self-employed individuals who do not possess enough documentary evidences of steady income flow. It is also for entrepreneurs who are having startups or having ventures that make low profits. However, expect to incur additional charges and higher interest rates because lenders would logically compensate for their risk exposure.

3. Offer a security. As mentioned, lenders do not want to get exposure to high risks. Employed borrowers with fixed income would be easily preferred. But if you are self employed, you may choose secured loans or those that require collaterals, usually a property or other qualified forms of assets. The idea is to assure loan providers that even if you fall into default, they would not stand to lose their capital. You would have to agree that in case you fail to pay the loan amount plus charges and interests in a specified duration, your collateral would have to be repossessed by the lender. Thus, you may also enjoy faster loan processing and lower interest rates.

4. Shoulder down payment. If you are taking a significant loan like a home or car loan, it would be wise to take those options that come with required down payment. You may opt to make a larger than required down payment. This way, you could bolster your chance of getting an approval. You can also reduce the principal amount, which may lead to lower regular amortisations and shorter term of the loan. You may have to save up a little amount of money before applying for and taking a huge loan to ensure faster approval.

Andrew has been writing about personal finance for over 4 years. Andrew has published numerous articles and provided numerous advice on various forums. Andrew’s favourite topics include bad credit, self employed personal loans and debt management solutions. When he is not writing, Andrew enjoys spending time with his family and friends.

4 Ways to Get a Loan If You are Self-Employed

Finding Unsecured Loans with Bad Credit

Unsecured Loans with Bad Credit
Unsecured Loans with Bad Credit

It truly is normally thought that unsecured loans are virtually difficult get approval on in the event the applicant incorporates a bad credit historical past. The truth is the fact implementing for unsecured loans with bad credit can close in approval, so long as some careful thing to consider is put into your course of action. Frequently, those that have noticed their application rejected are guilty of looking for a loan that they want somewhat than the usual realistic loan for their position. It is because unsecured loans with bad credit are authorized only if the financial institution is convinced that repayments can be built and not using a hitch.

The problem is usually that men and women are likely to seek loans which might be way too large. For such loans, acceptance without any safety and bad credit is unlikely. Obviously, recognizing the best loan is a difficult detail. A handsome sum like $100,000 would make our monetary troubles vanish, but lenders are effortlessly cautious when assessing even smaller unsecured loans with very poor credit. By way of example, the income is demonstrated to become easily in the repayment needs, the loan sum will not be exorbitant as well as the term with the loan is for a longer time to facilitate a reduced month to month reimbursement.

In the meantime, the danger of long run economic woes, whether or not not connected into the loan alone, dictates that a buffering sum from an income really should keep on being, so there are at the least several hundred pounds in reserve to manage sudden expenditures.  If the credit heritage of the applicant is bad, then it’s a great idea to obtain a cosigner on board. This essentially gives a guarantee that repayments will be manufactured; therefore the danger affiliated with unsecured loans with inadequate credit is notably diminished.

The purpose of your cosigner should be to take obligation with the unsecured loan in case the borrower is struggling to make repayments. Technically, the cosigner is providing security. Search for Lender and be Adaptable. For instance, if $40,000 is necessary, but your status can make acquiring that sum unlikely, then having out 4 unique $10,000 unsecured loans with bad credit will increase $40,000. On the internet lenders tend to offer the most beneficial deals with unsecured loans with bad credit a specialty for many lending businesses there.

 

Finding Unsecured Loans with Bad Credit

Deciding How Much Debt Your Small Business Can Take On

Debt Analysis
Debt Analysis

All businesses have some debt, and this can be good for a business as it offers growth and increased operational capacity. Debt produced by loans of any type give a business the ability to expand, increase production or provides the needed capital for marketing. However, if you get into too much debt, you could place your company on the brink of disaster.

Let’s Define Business

Debt includes any secured loan like a mortgage or bank loan, but also includes unsecured loans like credit card debt or suppliers extended credit for purchases you make.

What is Debt Capacity

This is your ability to take on debt and pay it back. To determine your debt capacity, a lender will use your debt to equity ratio to come up with your debt capacity and your credit worthiness. While influencing factors for a larger company may include facilities, real estate owned and the value of equipment, for smaller companies this is simply the amount of debt you can afford to pay back.

Debt Analysis

When deciding on whether you can take on a certain amount of debt you must calculate the repayment amount, including the interest you pay on the debt and any other service charge. For example, if you take on a loan that has a $1,000 a month payment with a five-year term, with a fixed interest rate, then you will pay approximately the same amount every month, but if your interest rate is variable, you may start with smaller payments during the initial phase of the loan, and these will steadily grow throughout the term of your loan. Additionally, if you ever miss a payment or run late on a payment your repayment amounts will increase.

To accurately calculate your debt capacity with regards to a specific loan you’ll need to know all the facets of the loan, meaning you must read all the contract clauses to see what the penalties, service charges, interest rates and final repayment service charges are.

Determine the Benefits

Before taking on any loan you should accurately determine your ability to repay it based on all the terms of the loan, then once you know what your monthly payment amount is, you should also calculate the benefits of the loan. For instance, should you take on a loan that generates a $1,000 a month payment, will this loan amount increase your profits and by how much? Will it give you a substantially higher monthly profit than the amount of the loan repayment? If the answer is yes to these questions, then taking on the debt may be beneficial for the company.

However, you may want to more carefully consider a loan that only helps you keep your business operational during a bad spell. In this case, the monthly payment may be higher than the income you generate. In this case, your economic situation needs to be more carefully considered and analyzed. If you have the capacity to pay off the loan while remaining operational, the loan may be the right option. In this case, the debt capacity analysis of your business can tell you how long you can continue to operate before you run into debt repayment issues.

This guest post was contributed by Darren Bechard, a freelance writer with a longstanding career in the finance industry. He mainly writes about business finance and enjoys sharing his tips and insights on numerous blogs. Visit Wonga Business for more finance options.

Deciding How Much Debt Your Small Business Can Take On

Mis sold PPI

Mis sold PPI
Mis sold PPI

Sales of payment protection insurance or PPI have been under attack recently because of poor sale tactics. Uninformed people do not realize the negative effects of a mis-sold payment protection insurance. See, this insurance comes at a steep price and in effect, it may put one in a bigger debt problem than they realize.  People also don’t know the many limitations of the payment protection insurance. For example, history of late payments and hitting close to the credit card limit will lessen the probability of qualifying for a payment protection plan. It is important to study and do research before buying this insurance. However, if you already bought it, read the following information below and check if you have been mis-sold a payment protection insurance policy.

You have been mis-sold a PPI if you were told that it was compulsory. This is absolutely untrue. These plans are inflexible and costly. Although it is supposed to protect the policyholder in cases of unemployment, many are left out in the dark because of policy exclusion clauses. You should always be given a choice in purchasing a payment protection insurance. If you were not given that benefit, it is time to make that claim. Also, a payment protection insurance can be brought from a separate insurance enterprise. Those who just want to get a commission will tell you that you cannot get it elsewhere.

You also cannot qualify for a payment protection insurance if you were not working full-time during the time you availed of the policy. The self-employed, unemployed, and seasonal workers also do not qualify for this insurance because they are financially less stable as compared to those who are fully employed. Some lenders and banks still sell to the unqualified individuals so be sure to check if you fall in any of these criteria before buying a policy.

If your payment protection insurance was sold to you with out your knowledge leading you to see soaring high bank and loan statements, then it is time to make that claim. Remember, PPI lenders and sellers have to give you the full details of the policy, including the costs.

If you think that you have been mis-sold a payment protection insurance and you are clueless as to what steps to take, dont think twice about consulting a claims company that will fight for you on your behalf. Visit www.ppiclaimsmanagement.co  for more information.

 

Mis sold PPI

Best Credit Cards and Reducing the Monthly Budget

Best Credit Cards and Reducing the Monthly Budget
Best Credit Cards and Reducing the Monthly Budget

Finding the best credit cards on the market today can help with reducing the family monthly budget. Due to a weak economy, many people are trying to find different ways to cut their expenses. Some of the most common ways to reduce expenses can include various solutions like eating more meals inside of the home instead of eating out, allotting less money for new clothes and shopping around for better car insurance premium rates. In fact, many people are becoming very creative when it comes to reducing expenses.

One of the biggest culprits in reducing expenses in the family budget is the credit card. It is a variable expense that can affect the budget substantially, especially when the person charges a large amount without paying it off before the interest is added to the cost of the purchase.

Problems with the Budget and High Interest Rates and Fees

Most people who get into trouble with credit cards have too many cards in their wallets. On the other hand, the other sector that experiences a great deal of trouble with their credit card spending may only carry a few cards. However, some of the main reasons for their trouble are normally due to high interest rates, fees and other charges. Which means, the expenses in the budget can be reduced even further if the person shops around for the best credit cards on the market today.

Best Credit Features

Paying for a dress on credit is very convenient and it is also costly if the amount charged is not paid before the end of the month. Unfortunately, most cardholders do not pay the totally amount each month, which means additional expenses will be incurred. To keep the interest (expenses) down, the cardholder should evaluate each credit card by reviewing the features included. For instance, the card holder should review both interest rates and incentives to find the best cards (i.e. low interest rates, cash back, reward points, low late fee rates, 0% APRs and low over limit fees).

Finding the Best Credit Cards and Companies

In the past, searching for the best credit card was more time consuming and difficult to do, since the person would have to compare one paper credit application terms to another. Finding the best credit cards today has been made much easier, since the person can search online for sites that provide their interest rates and other terms online. While some sites will only provide the rates that they offer, there are other sites that provide numerous types of credit cards at one time. These sites will also make it easy for an individual to evaluate, compare plans, and see what incentives and rewards are being offered. Some sites will also rank the cards by the best or the top 10 best cards on the market. Secured and unsecured cards are listed and available to those who can qualify. Also, as soon as the person selects the card that they prefer, they can apply and receive a response within minutes.

Author’s Bio: John Harris is a proficient author on credit cards and related topics. His articles have catered to the use of many readers. He suggests a visit to Bestcreditcards.com for further information.

Best Credit Cards and Reducing the Monthly Budget

Deal With Debts, No Matter How Small

 

Deal With Debts - No Matter How Small
Deal With Debts – No Matter How Small

In today’s society, you’re lucky to find someone that’s not got some form of debt, whether its loans, mortgage, credit cards or online store accounts. Many of these people are able to manage their debts, and continue to meet their repayments on a regular basis.

However there are also many people that can’t manage their debt, and are struggling to cope with the ever increasing interest payments and late fees. Small debt amounts will grow into bigger debts if they’re ignored, and choosing to bury your head in the sand is nothing short of crazy when it comes to facing the problem.

Small Debts, Big Problems

Smalls debts are just as important as big debts, and some consumers believe that credit providers won’t bother collecting small sums – this couldn’t be further from the truth.

Leaving small debt amounts that you believe will go unnoticed will actually end up costing you more. Credit providers are allowed to recall the debt at any time, and can also slap on huge amounts of interest and late fees if they’re believe you’re not able to pay it back.

Furthermore, once a credit company hands over a late payment or unpaid loan case to debt collectors, the collectors will also add a variety of costs, fees and charges to make the collection worthwhile, no matter how small.

For example, these costs can include charges to ‘open the case’ and determine the next course of action, tracer fees (finding the debtor), the drafting of the legal documents and letters, phone calls and texts sent to the debtor.

Interest will also accumulate on all of these debt collection charges, and added together will all the previous fees, a small, unpaid debt can turn into a mighty financial problem.

Credit Rating and Repossession

Although debt may be hard to acknowledge, especially to family and friends, the problem won’t go away, especially if you don’t confront it. The longer a debt is left unsettled, the harder it will be to pay back – there is no other way about it.

Not paying back your debts can have an extremely negative impact on your credit rating too. By hiding away from your debts and missing repayments, your credit rating will decrease very quickly.

This means that lenders will refuse to give you a loan or any other form of credit in the future. Credit agencies share information, so your credit rating will be open for all to see, especially banks if you’re looking to get a mortgage.

Not paying back your debts can also have a direct effect on your family and loved ones. If you fail to get your finances in order, then the problem may escalate to repossession of assets. This means any property in your name can be repossessed in order to meet the repayment of the debt. This also includes cars, saving accounts and any other asset that can wipe off large portions of your debt.

In comparison to the previous quarter, the number of accounts in financial danger has topped 17 million, according to the National Credit Regulator’s latest statistics.

Post provided by Tony, a UK finance blogger on behalf of IVA expert, who offer IVA help & advice.

Deal With Debts, No Matter How Small

 

A Success Story of Paying Off a Credit Card Debt

Paying Off a Credit Card Debt
Paying Off a Credit Card Debt

 

Who loves success stories? My wife does as she is passionate in reading her Cosmopolitan pages. I do love stories of success as well (no Cosmopolitan reading though). This time I will tell you the one where a personal-finance blogger finally got rid of her debt “slavery” and eliminated her monstrous debt.

Three years ago, this blogger had a card balance of almost $40,000 (!) to start with and now she has announced that she managed to exterminate her credit card debt and get so long-desired $0.00 balance of her card. So these three years she put all of her powers and implemented multiple strategies to make this terrible debt disappear.

So here are some of the topic-related tips – ones I found through personal year experience, and some came with the specifics of the story told above.

You can pay the debt yourself

Even if you accumulated a lot of debt, you still can succeed – take steps to manage it in a right way. The internet keeps a wealth of similar blogger stories as receipts and testaments on debt elimination. As an example, you can use some free budgeting tools. Mint.com and Wesabe would do the trick. Both are personal-finance management websites being a free tool that carefully analyzes your financial data and gives you the best advice on managing and saving your money.

Another option (more comfortable) could be a usage of a budgeting software like YNAB (You Need a Budget). It aims to take a control of your debt and expenses. Probably, YNAB would be one of the most rated software programs in this market as Amazon reviews claim.

Have your goals set

From our personal promises to “kill” a debt we transfer to concrete steps.  Setting a certain date when we are planning to reach our goals would be a specific roadmap to estimate our progress.  Setting goals is a great tool to keep ourselves going in the right direction and focus on our debt liquidation program.

Some bloggers would offer you a web help again – online tools like DebtGoal, which help you to create a debt reduction plan. Though having a free week trial it then turns into a fee-payment solution (on monthly basis).

Create a debt elimination plan

Broke a leg? Then stop running not to make it worse! To get out of your debt you should stop incurring more. Some strategies will make it easier for you to discover my point.

You can consolidate or refinance your debt in some cases (but beware the possible effect on your score), or go my way and address your debt successfully by using balance transfer credit cards.

You could speed up your debt reduction process by transferring the debt from a high interest rate card to lower interest ones. You’ll be paying less interest with a this kind of  transfer, but applying for a new card has a short-term effect on your credit score and can cause the balance transfer fee payment. Furthermore, pay big attention to rates changing after the promotional rates expire.

In the past, that scheme worked for me. I eliminated my debt in this way, but had to make the commitment of paying it off during 0% introductory rate period.

Nothing but eliminating the debt

Resist any temptations to party with your money. Stick to your debt elimination plan. As for me,  when I finally retired my debt, I swore to never get a going forward balance for my credit card.  Like a never-marry-again vow which I should stick J Anyway, I don’t buy things that I won’t be able to pay for in the end of the month. For emergencies ever occurred I keep a special fund which replaces the need for using a credit card.

Watch your track record

When you start your debt elimination program, keep track of how your credit is doing. It could be wise, in fact, to get your credit standing snapshot – before, during, and after you’ve done some things on debt reducing. This will make your progress charted and measure the success of your debt/credit management efforts.

Furthermore, you can visit AnnualCreditReport.com and get your free credit reports or consider some commercial products from Equifax. They can give you the access to your FICO score.

Keep the champagne for your victories

Indeed, even small successes bring us positive feelings. My point is that dealing with debt you should not be too restrictive to yourself. Get a break! Treat yourself to simpler rewards when you reach your debt-elimination goals one by one.

Increase your profits

Cutting back is not the only cure. Try to earn more in order to strike your debt with multiple “weapons.” At least, you can get an extra income by finding yourself a second job or starting a side business. It will accelerate your debt payment, provided this business has a strong saving strategy.

Have accountability

You can share your stories with other people by writing blogs or using forums. This is how you can have a side support and encouragement, as well as psychological incitement to handle your financial issues. Personally, I believe in blog’s cheering nature as you can also get a tip from someone who has the same experience or found a solution.

If you are not a blogging person, you can help yourself by only keeping a diary or a journal. Writing in the tabs on your progress, notes and ideas will help you to stay on track.

So we are back again to the story from the beginning. Remember that personal-finance  blogger who paid off her debt in three years? Congratulations to Tricia who managed to eliminate a debt of $37,614 in thirty eight months! You CAN do it! As well as to write your own success story.

 

Written by Alexander Treston on behalf of Alexander Collins and Forexeasystems Forex robots.

Furthermore, if you are interested in Forex trading, you can download some sophisticated Forex trading tools on Pipburner blog or read the latest article on how to disable MetaTrader 4 updates.

A Success Story of Paying Off a Credit Card Debt

 

Eliminate Credit Card Debt With Credit Card Consolidation

Eliminate credit card debt with credit card consolidation

 

Eliminate Credit Card Debt
Eliminate Credit Card Debt

Almost all individuals in the U.S. are infected with the habit of making the indiscreet use of credit cards that eventually incur them an overwhelming credit card debt. If you are also finding yourself falling into exiting credit card debt, consider consolidating your credit cardsCredit card consolidation is a process that allows you to consolidate all the balances on your cards onto a new manageable account.

A few important tips to follow:

  • First and foremost, assess your fiscal situation. Accumulate all your credit cards and credit card documents, and compile a list of the balances owed on the cards. Also, make a list of the interest rate that you have been paying on your credit cards. Knowing this information will help you decide the best way of credit card consolidation.
  • After you accumulate the information, look for a new credit card that offers lower rate of interest. There are many credit options available to people who have good credit score and decent flow of income. But before signing up for one, do an extensive homework and compare all the credit options available. Evaluate if any of the credit options offer you lower interest rate than what you are paying currently. However, before you choose one, read out all the fine print and know the hidden terms and conditions.
  • You may also consolidate your credit card debt using savings. Chances are more that you are paying much higher interest rate on your credit card than what you are getting in interest on your savings account.
  • Another significant method of consolidating credit card is to obtain a home equity line of credit. If you own a house, use the equity built in your house to consolidate the credit cards. Often, equity loans provide you lower interest rates than credit cards and also the former is tax deductible. Therefore, consolidating credit cards with home equity line of credit is a significant option.
  • Close out all your credit accounts and cut up the cards that carry high rate of interest. Only keep one account open for emergency purposes. There is actually no need to have numerous credit cards in your possession.

In conclusion, eliminate your credit card debt by consolidating all your credit cards, following afore mentioned tips.

Eliminate Credit Card Debt With Credit Card Consolidation

 

How Loan Payments Can Reduce Your Debt

How Loan Payments Can Reduce Your Debt
How Loan Payments Can Reduce Your Debt

 

It is never too late to figure out what to do to cut down on debts using loan payments whenever it feels like they are becoming unbearable. Debt is good, if it is utilized in the right way and in the right amounts but it can easily run amok and cripple someone’s financial agenda if it is neglected. If someone neglects loan payments, he stands to get a low credit rating and furthermore, he risks adverse situations like repossession of goods, auctions and in many desperate cases, leaving town! Nobody should allow himself to be a slave to debt. Reduce your debt by first of all controlling what the credit card statements read.

Figure out how much money is earned monthly and start allocating the money into the right channels. There are basic needs which must be met no matter what. These include food and shelter. For example, someone cannot starve himself simply because he wants to finish making loan payments. A good level of debt is that one which loan payments can be made without hurting the family’s food budget. It would be insane to make the kids miss out on important funds for their upkeep. What this means is that luxury spending should be forfeited and the money channeled back to servicing debt.

A good example of the luxury spending is the money people spend on gambling or in casinos. Always think twice and figure out if that end of year unplanned getaway is worth it. Realize that it is important to allocate sizeable amounts of loan payments instead of listening to that overly-convincing commercial about an overseas  holiday. Reduce your debt by cutting down on the phone bills, which means that the late night gossips and conference calling with friends have to take a back seat. Keep the recurring bills at manageable levels.

Reduce your debt by avoiding high interest lenders

Even when someone needs to take a loan, he should stick to lenders who offer low interest rates. This means that they need to read the fine print about how interest payments are charged and whether there are some fees involved. A wet blanket when it comes to loan payments is when someone is paying low interest but there are fees which keep the total cost of the loan above the ceiling. Hidden fees and fines spell doom to the efforts to reduce your debt.

Impulse spending slows down loan payments

A secret that works for many people is consolidating all the existing debt into one figure. There are companies that do refinancing, to that effect buying all the existing debt and entering a whole new repayment schedule with a client. This works well since loan payments can be done at low interest. The fight to reduce your debt is half won whenever someone resolves to fight the impulse spending culture. Financial freedom gets closer as soon as someone realizes that the secret to less cumbersome loan payment schedules begin with proper financial discipline and spending.

 

How Loan Payments Can Reduce Your Debt