First, know what you’re getting. Most people understand the prepaid debit card as the retail gift card. Others know that such gift cards can be purchased through their local bank. What some consumers don’t know is that those purchased through their bank can come with hefty fees attached, and those fees can come in a myriad of disguises from up-front purchase fees to various administration fees including replacement costs account maintenance fees and fees for checking the balance. Such fees are currently being debated in the courts, but until a fair resolution is offered, it is up to the consumers to be aware of what they are buying.
Second, despite consumer and fair trade concerns, some applications of the prepaid debit card are both innovative and convenient. For example, there are now some tax preparation services offering what is known as the “stored value” card. In other words, in lieu of waiting for your refund to arrive, you can simply tell your tax preparation service that you would like to have your refund loaded onto your prepaid debit card. Once you have your prepaid debit card “loaded” you can make arrangements with your bank to assign it a routing number so that you may use it just like a checking account. Another new use of prepaid debit cards come from the currency exchange companies, better known as remittance services. The usual remittance companies are facing new competition from small companies who are targeting the immigration population by offering speed and convenience in sending money on-line using a bank account, a credit card or a PayPal account. The customer simply electronically “loads” the desired amount onto a Visacard which is then mailed to the beneficiary.
With the help of the internet, the potential to send money via “loaded” cards is without precedent. The ease, speed and convenience of such services are becoming so popular that many companies are aggressively marketing prepaid debit cards to consumers through customization. Visa, for example, has a prepaid debit card marketed exclusively to teens, know as Buxx. American Express has the TravelFunds Card marketing “for people on the go” and MasterCard has its I-Gen MasterCard marketed to those who prefer to either forego traditional checking accounts or keep only a minimum amount while “loading” their card with the cash their budgets dictate they can spend.
Starting the process
If you want to take a loan against property, the first thing you need to do is to shop around for a lender. Use the internet to learn about the eligibility criteria of a LAP and this is likely to vary from one bank to the other. In general, most banks would ask for the following –
- Your income/savings details and also information of the debt obligations that you have
- Cost of the property that you intend to mortgage
- Your credit record
- Repayment track record of loans taken prior to this
- Application: The loan application sets the ball rolling in a LAP. Select your lender and fill up the loan application form with necessary details.
- Processing: After you apply, the bank starts processing your application, whereby the loan procedure starts moving. Your lender can also call you over for a discussion. Carry original documents with you when you go for it. Following this, the bank will conduct a field investigation of the matter and verify the documents presented by you. Documents required are usually income proof, age proof, address proof, identification proof, property papers, and employment details. When you submit your credit documents to the bank, you might have to shell out a processing fee as well, which is 1-2% of the desired loan value. The bank can also ask for an upfront fee for miscellaneous expenses.
- Loan sanction: Once the bank has verified your financial credentials, it will work out a loan eligibility amount for you, which is put up in an offer letter along with terms and conditions and mailed across to you. You can accept the loan if it fits your bill by putting your signature on the acceptance copy.
- Legal check and valuation: The bank will now conduct a legal check on the property that you intend to mortgage and evaluate it. Keep the property papers and No Objection Certificates (NOCs) ready for scrutiny.
- Loan disbursal: If everything is in place and the bank is convinced of your loan repayment capacity, it disburses the loan through a Demand Draft (DD) or a cheque.
When you plan to take a LAP, consider your pay-off capacities very well, as, if you are unable to pay it back in full, you stand at the risk of losing your mortgaged property to the bank.
Not Interested In Your Credit History
If you’ve ever applied for a bank loan, your credit history is considered to be one of the most important background checks made by any loan company. Those with a low credit score will almost certainly be rejected. Applying for a bad credit loan is one of the easiest ways to be scammed online. Once you have applied, your personal details will be sold to third parties and you may well be tracked by fake debt collectors. Thousands of people are scammed and pay money for debts they don’t actually owe. Lenders that claim they are uninterested in your credit history are to be avoided at all costs. It should be noted that payday lenders don’t worry about credit scores either but such loans come with incredibly high interest rates.
Every legitimate lender clearly displays their fees, terms and conditions. They are legally obliged to be as forthcoming with their conditions as possible. All fees are calculated based on the amount you borrow with these fees paid to the lender after the loan is approved and paid. Never sign any contract you don’t understand and carefully read the small print.
This is another sure-fire way to uncover a scam company. Fake companies will call you and promise loans. Nothing unusual about that you might say. However, these scammers will ask you to pay the fees before giving you loan. What kind of an organization asks you to pay money first in order to receive it? Besides, this practice is totally illegal in the United States.
They say that imitation is the sincerest form of flattery. Scam companies are taking this to the next level by trading with names that sound remarkably similar to respected companies, right down to the company logo. Fake companies will also have slick websites that are high on presentation but low on information. Don’t fall for their style; seek cold hard evidence that they are legitimate. If they are ripping off a well known brand name, you can be sure they are fake.
Refinancing your Mortgage. It should be a standard operating procedure to conduct a mortgage health check every five years. There’s a pretty good chance that a more comprehensive and less costly mortgage deal will be available in the market. Using refinance mortgage calculators, you’ll be able to get an estimate of how much you will be able to save when you refinance your existing mortgage.
Get the help and advice of non-banking institutions. Popular non-bank lenders are known for their desire for a bigger market share and lower overheads. Those are some of the reasons why they can offer customers like you interest rates that are significantly lower compared to the variable interest rates offered by standard banks.
Say no to Honeymoon Loans. Honeymoon loans are one of the most popular loan types because they come with low introductory rates. But once the honeymoon rate expires, your interest rates could jump higher than the standard variable rates.
Consolidate your Debts. Repaying your other debts like car loan, credit card debts, personal loan and store credit repayments can choke your family budget, especially when also have a mortgage obligation. One way to lower your expenses would be to consolidate your all your other debts into your mortgage and see how you can cut your monthly repayments in half. Your mortgage’s interest rate will then apply to your other unsecured debts. You may use a debt consolidation mortgage calculator to figure out how you will be able to cut your costs after your debts have all been consolidated.
Instead of the usual monthly payments, make fortnightly payments. Rather than the usual payment mode, you can instead make fortnightly payments. After a year, you’ll be able to make 26 payments instead of the usual 24. With the added payments, you can reduce your loan’s term and save on interest costs.
Try to renegotiate your mortgage. If you find it difficult to manage your mortgage obligations, you should go talk to your mortgage lender and ask if you can renegotiate the terms of your mortgage. Ask them if they can give you a cut in interest rate or provide you with an extension of your mortgage term so as to reduce your monthly repayments. Remember that your lender would rather cooperate with you and get their money back instead of allowing you to default.
A cash advance loan is a short term loan that you can apply for. Getting a cash advance loan is easier than you think. There are many lending companies with websites that give you easy access on cash advance loan information. All you have to do is select the right lending company for you. Fill out the online application form and wait for a few hours to get approved. Once approved, your money will be wired to your account as early as the next business day. These kinds of loans do not require that you have a good credit score. Creditors do not do a credit check which means you don’t have to worry much about your financial background.
Usually, cash advance loans come with a specified amount to be paid by the borrower with the principal amount of the loan. Various states and countries have different policies and laws when it comes to the fees to be paid for cash advances.
Payment is very easily arranged as the lenders deduct a fixed amount on the borrower’s bank account every pay day. No more worries about going to the bank or the lending company to pay your dues. Although lending companies are less strict when it comes to payday loans, you will still need to provide some requirements like your employment details, bank account data and driver’s license. If you understand and accept all the terms of a cash advance loan, then go ahead and apply for one. This will be helpful in getting by your day to day expenses.
Once you have a pretty good record with a lending company, then you may have more privileges when you get your next loan. You can enjoy lower interest rates or higher amounts of cash allowed for you to borrow. Of course, if you stick with one lending company that you trust, you do not have to fill out an application form every time you apply for a loan. Your records are already with the company and they are ready to pull them out once you decide to get another loan. So choose your lender carefully, and get back on track with your budget.
Contact your lender
One of the first steps in successfully avoiding foreclosure is to call your lender. They may have loss mitigation options that they can discuss with you. Keep in mind that lenders are not in the business of owning real estate and it is in their best interest to come up with ways to help you keep your home including loan modification if necessary.
Understand your rights
Consumers often do not understand their rights when it comes to foreclosure. In addition to the written notification of foreclosure, consumers can and should, ask for their original loan documents if they do not have a copy of them. This will help a homeowner better determine what loss mitigation options might be available to them. Lenders are required by law to provide these documents if they are requested.
Create a profit and loss statement
When you are interested in discussing a potential loan modification with your lender, make sure that you gather the necessary documents. These will often include your most recent pay stubs, proof of other income as well as a complete list of all assets and liabilities. Create your profit and loss statement so that you can discuss potential options with your lender to avoid foreclosure.
When lenders are not cooperating
In some cases, the collections department of your mortgage company may not be willing to negotiate with you or, you may feel they are not negotiating in good faith. If this appears to be the case, it may be a good idea to contact a reputable loan modification attorney to assist you. Not only can they assist you in obtaining documents from your lender, but they can also help you with negotiations if they become necessary.
Bridging finance products are a relatively unknown and complicated area of property finance but once understood it can be easy to see that the facility provided has many benefits over traditional forms of finance provided by the high-street banks.
So what are bridging loans? Bridging loans are financial products used mainly by property developers as a short-term facility that can be actioned quickly to raise finance on a property asset. The loan is usually secured as a first or second charge on the asset in question and should only be obtained for a short-time period with a clear cut exit to repay the loan.
Bridging facility products can be far more riskier and cost a lot more to take out than high street finance and most people go down the bridging finance route when their banks simply will not lend on the terms they wish, bad credit situation, or if you want to buy a poor condition below market value property for a property investment for which you would be unable to get a high-street mortgage.
Bridging products are offered as a loan against the value (LTV) of your property, with most companies offering the facility at 85-75% of market value. Most of the largest principle lenders in the UK can provide as low as £25, 000 with a view to lending maximum £25 million for the right project.
Bridging finance is provided from private clients funds usually from principle lenders in the UK, the top firms have vast funds for bridging and are usually backed by large institutions, wealthy high-net individuals or commercial banks.
Most bridging lenders will pick and choose what they will lend against and for how much they are willing to lend. Some lenders will only lend within the prime spots in the area. (major cities and metropolitan centres). So now we know the answer to the question what are bridging loans, we need to find a summary of what can they be used for.
These types of loans offer another advantage: quick closing. In most cases the loan application and approval process takes about fifteen minutes, and often less. Some other types of loans (especially loans from banks) can take days (maybe even weeks!) to get approved, adding to the overall frustration of the loan process.
Low Amount Loans
Many loan companies offer loans in amounts as low as $100; this is unheard of in other types of bank loans, where the minimum loan is $1,000 or more. This is great news for people who need only $200- because they don’t have to add up all that additional interest that comes from the higher monetary value that was loaned. So the end result is that you only borrow the money amount that you need, and are not stuck having to pay interest on money that you don’t want or need. This means more savings for you!
Determining the Collateral Value
During the application process, the lender examines the vehicle, to estimate the value of the vehicle. This means that the better the overall condition that the vehicle is in, the higher the potential of the loan value. Most use the Kelley Blue Book to gauge the worth of the auto. It is often wise to validate that the lender gets all the right information about the vehicle: the year, make, model, even the type of engine in the vehicle is a factor that is used. It is also wise to inquire how the lender intends to determine that value, and if they refuse to reveal their method, run away. They might be trying to pull a scam on you. This is one of those situations where it is better to be safe rather than sorry. The maximum amount of the loan is usually half of the blue book value. This means that the higher the value of the vehicle, the higher the value of the loan. It is important to understand that borrowers who apply for this type of loan must own their vehicles outright; lenders will not accept a financed vehicle as collateral because the borrower does not yet fully own that car. Valid automobile insurance is usually also required; this should not be an obstacle because all road-worthy vehicles in the United States must be insured before they may legally be driven.
From Application to Approval: Fast and Easy
Automobile title loans are an excellent choice for borrowers who own a vehicle and need cash quickly. There are no credit checks, no required lists of character references, and no anxiety-inducing approval process spread out over several days or weeks. Some individuals who take out a loan need some last-minute funds for an important purchase or an emergency medical procedure that cannot be postponed. In many cases, borrowers can apply for the title loan online, and then drive their vehicle to the lender for the inspection. This makes it easier on you. Some title loan companies will even send a representative to the borrower’s home to inspect the car in person.
Anyone can apply for help, however some of the Loans and Grants (Community Care Grants and Budgeting Loans) that are available are only for those who are claiming income related or means tested benefits like Jobseekers Allowance, Income Support or Employment Support Allowance, and who have been claiming these benefits without any breaks for 26 weeks or more.
Crisis Loans are available to anyone who resides in the UK and who has found themselves without income, and without any way to provide form themselves or their family. You can apply for a Crisis loan even if you are working, however you will need to demonstrate that you have no other way of meeting your immediate need, this may include asking for a salary advance or Loan from the Bank.
There are two ways to apply for a Crisis Loan, you can either make a paper application using a SF510 form that is issued by the Department of Work and Pensions and can be collected at your local Job Centre or you can make a telephone application.
A paper application usually takes two weeks to be processed, and is generally recommended if you are applying form help with rent in advance to move to a new property within 3 weeks.
A telephone application can be made on the day of the crisis, and generally takes around 45 minutes. To make a telephone application you need to call a free phone number ( 0800 number that is free from most mobiles) and you will speak to a decision maker who will take the details of your application and complete a form on your behalf. after all of the information relating to your Crisis is taken, you ill be put on hold for up to 5 minutes whilst the decision maker looks at all of the information that you have supplied and also seek to verify anything that they can ( for example your next payday, or amounts paid etc)
One of the most desirable options by homeowners is a loan modification. However, there is much to learn about modifications and some homeowners may not benefit to the extent they think. Although loan modifications are designed to lower payments by reducing principals, lowering interest rates or extending the life of the loan, the modification offered isn’t always significant enough to keep a homeowner out of danger. Lender are often hesitant to approve modifications, especially if the homeowner has already missed a payment or the home is worth less than what is owed. Even if a lender does approve a homeowner, the reduction in payment may not be enough to prevent the risk of default and foreclosure in the long run. For homeowners to benefit from a modification, they need to review how each type of outcome could affect their payment and request the greatest reduction.
As the more preferred option by lenders, refinancing a mortgage can lower the monthly payment for homeowners. However, refinancing isn’t for those who have already missed a payment or at risk of default. Why? Because refinancing a mortgage comes with additional closing costs on the new loan, which are often out of pocket expenses. Anyone already suffering from financial trouble is not likely to be able to afford these expenses. Some lenders now offer refinancing without fees or costs, but there is still one issue to consider. When a loan is refinanced it begins a new loan and extends the life of the loan. Therefore, a refinanced 30 year loan will mean that the payments start at year one all over again, losing any progress the homeowner made towards their previous loan duration. While this isn’t necessarily problematic, it should be considered whether extending the loan another 20 or more years is worth the decrease in payments. In general, refinancing should only be considered if it can lower the interest rate by 2 or more points or change the interest rate from a variable to a fixed rate.
Most homeowners would never choose a short sale over pursuing a modification or refinancing, but they have gained popularity in recent years. Although a short sale requires the homeowner to give up the home after the sale, it does produce an immediate relief from liability over the mortgage debt and protects one’s credit from a foreclosure. Homeowners who cannot afford to maintain their mortgage payments or were unable to secure a modification or refinancing option, may find that short sale is an easier way out of their mortgage debt. However, it should be noted that the sale of the home can take months and the homeowner will be liable for payments until the home is sold. A good rule of thumb for a short sale is to enter the process with patience and the understanding that the lender wants the best offer possible.