Loan Types

Home Loan Type

When it comes to the game of money and homes we are the best at what we do. We do a couple different types of loans, and there are some we stay away from. Below are the ones that we do for sure offer and a little background on each.

VA Loans – This is a loan program that supplies home financing to help eligible veterans to finance homes with no down payments. There are some requirements that have to be met, but it is an excellent option for those service members that qualify.

FHA Insured Loans – These are mortgage loans backed by the Federal Housing Administration and are a type of federal assistance. They are normally for lower income borrowers so th

First Time Home Buyers – There are programs available for those that fit the bill of a first time home buyer. We help navigate the ins and outs to make sure that you get what you qualify for without too many issues.

Stop in and see us to decide what is the best option for you to take in the home buying process.

at people can purchase a home that is not normally within their price range.

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Ask Before You Leap

Loan

Here are a couple things to keep in mind when the thought of owning a home and applying for a loan come to mind. Let try and keep this as simple as possible.

How much do I really need? Do you know what size house you want? Do you know what that size house goes for in your area? Make sure you do your research first.

Can I actually afford this? If you say you are going to stop eating out, get rid of cable, or not have fun to afford this house – you can’t afford the house. You want to be able to comfortably afford the place.

Do I have a stable career? Are you a person who changes jobs all the time? Do you have a long-term history with your current place of employment? Having a job is important, but having 10 jobs in the last year may go against you.

These are just a few of the many we can discuss at a consultation meeting to help you know if you are on the right track for loan approval!

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Get preapproved for a home loan

Find out how becoming preapproved allows you to house shop with confidence. Before you apply for a loan, a lender can “prequalify” you. This means they estimate how much financing you could

After you’ve filled out a loan application and the lender has analyzed your credit more thoroughly, they can provide you with a “preapproval” — a written letter confirming the price of a home you can purchase. Getting preapproved lets you and others see, in writing, that you qualify for a specific home loan amount. With your preapproval in hand, you’re ready to look for your new home. The lender will consider final approval of the loan later on in the process, after you’ve found the home you want to buy.

Being preapproved:

•     Helps you narrow your search to properties in your price range;

•     Gives you confidence that you may be able to secure a home loan for a specific amount;

•     Reassures home sellers that your offer is serious because your financing is already in place; and

•     Helps speed the process of getting a mortgage loan once you’ve found a home to purchase.

Finding your home

An introduction to the homebuying process.

There are lots of steps involved in buying a home. But understanding the basics of the homebuying process can make it go smoothly. In this lesson, we’ll explain how you can work together with a real estate agent to buy the home you want.

A family outside a home that has a sold sticker over the “for sale” sign.

Before you begin house shopping, there are several steps we suggest you take: attend a class for first-time homebuyers, evaluate what you’re looking for and how much you can pay, and get preapproved for a loan. To learn more, see the lesson Before you shop for a house.

Select a real estate agent

Read how a real estate agent can help you.

A good real estate agent can help you define what you want in a home, search for homes in neighborhoods that meet your needs, and provide you with data on recent home sales in the area. Agents can also help answer questions about properties that interest you, for example, tax rates and building code regulations. When you find a home you want, your agent can help you formulate an offer and act as an intermediary between you and the seller, smoothing the negotiating process.

A real estate agent handing over the keys to a newly bought home.

How to find an agent

•     Look for agent names on For Sale signs in neighborhoods that interest you

•     Ask your mortgage lender for suggestions

•     Visit the websites of local realty companies

•     Ask family, friends, or neighbors for referrals

Interview at least 2-3 agents. Tell them what you’re interested in. Find out if they have experience in the area where you hope to buy. Ask if they can provide additional information about a property or neighborhood, then see how well and how quickly they respond to your request.

Search for a house

Searching for a house can be fun, tiring, and stressful

Once you’ve found a reputable real estate agent, you can begin to look at houses — while this may seem like the fun part, keep in mind it can become stressful. Follow these tips to make the process as enjoyable and beneficial as possible:

Instructions: Click each phrase to learn more about searching for a new house.

Location, location, location

•     Research the areas you’ll be living in, or want to live in. Use local resources, your agent, and the Internet to find up-to-date street maps.

•     If possible, visit several neighborhoods to get a feel of the community. Talk to people in local stores and restaurants.

•     Try to get a feel for the traffic you and your family will experience every day. Is rush hour unbearable, or will your neighborhood consists of two-lane streets with limited traffic?

    Learn more about the different school districts in the area. Pull up school’s report cards from the state’s education website and then visit the schools.

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Information On Home Construction Loans

If you have reached that point in your life wherein you have decided to build yourself a home, then you are sure to be in need of financial assistance for the same. By means of new home construction loans, it will be possible for you to build a new home.
 

Now that you can avail construction loans, you will get sufficient funding if you are planning to build a home for yourself. Included in the cost might be the amount of land upon which you plan to build your brand new home. Loans like these set up a line of credit that is expected to pay sub contractors as well as suppliers as far as the building process is concerned.

Workers will be glad as there will be no need for them to wait till the construction of the house is completed, to receive payment for the services which they provide. A new home construction loan can be set up in monthly stages or into stages where certain portions of the building process need completion. You will need a residential mortgage before you proceed to apply for a construction loan. This has to be presented to the lender you have picked prior to beginning the building process.
Residential Mortgage
 

A stated income construction loan refers to a loan in which funding is given to assist you if you are seriously planning on building yourself a dream home. Loans like these do not require you to furnish any proof of your income. By means of a stated income construction loan, you will neither face trouble when you need to verify your income nor if you decide to not hand over information to the lender. Construction loans like this make either scenario possible.

The interest rate of loans like these is expected to be higher in comparison with other home construction loans as a result of the risk involved with borrowers whose income has not been verified. The down payment for a loan like this is likely to be higher in comparison with that of a traditional construction loan. The advantage associated with not verifying the income is that loans like these are approved much faster in comparison with new home construction loans.

Avail loans like these and you will soon be able to turn your dream of having a house of your own into a reality!

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5 Strategies For Home Loans With Bad Credit Rating

If you have a bad credit rating then it becomes more difficult for you to get approval for a home loan in normal rate of interest. That means, borrowing the desired amount gets more expensive along with less repayment options.

However, these days, there is some provision that makes it possible for people with low credit score to get approval on their loan application. Here are the five strategies that may increase your chances, despite of having a bad credit rating -

    Use security or collateral

You can use assets like your home, property, boat or car as collateral to secure your loan. Most of the lenders are ready to offer loan based on the equity or valuation of the collateral.

    Apply for a loan from credit union
A credit union is also a favourable option for many to seek home loan without much hassles. These organisations derive money from investors or individuals and do not have contact with banks. Therefore, the documentation process is not complicated. However, they follow specific criteria to approve bad credit loans, as they do not aim to lose their money.

    Find a co-signer or guarantor

If you have a guarantor or co-signer who has a good credit rating and constant source of income, it will become easy for you to get a quick approval on a home loan. However, in case you are not able to repay the loan amount as per the terms, than your co-signer will pay the loan amount on your behalf. All it takes is to convince your guarantor that you do not have any intentions to put him or her under this sort of compromising situation.

    Declare your savings present in your saving account

Declaring your savings account serve as an assurance that you have sufficient fund in your account, if in case there will be any shortage of fixed or regular income. There is no need to have a huge amount, as even in small savings, you can prove to a moneylender that you are capable of repaying the loan.

    Try to improve your credit score with the help of a financial advisor

Is there any irrelevant details mentioned in your credit report that is affecting your credit rating? It might be possible that a poor credit rating may be due to delays in paying bills that had already been settled. Thus, it is recommended to consult this matter with a financial advisor who help you to improve credit score with their proven tactics.

Visit Here to Best Informasion Home Loans

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Payday Loans Best Solution to your Financial Crisis

Payday loans are very risky for the borrowers

Payday loans are the short term loans that are repaid on the next payday of the borrower. The process of application is simple and the approval is instant and so it seems to be attractive to those who are in need of urgent monetary needs that cannot wait until the next payday. Since there is no need for collateral to get approved for the loan, the demand is high. Credit record is not considered and this is an added advantage. The only assurance for the lender in payday loan is the paycheck of the borrower.

Payday loans are very risky for the borrowers
The applicants need to produce age proof, employment proof and income proof for getting approved for the payday loans. In spite of the benefits, the offer is not recommended by financial experts. The reasons are many. The major disadvantage is the high interest on the unsecured personal loans needcashinstantly. The rates of interest can go up to 200% for one month. The payday loan providers are specific about getting the transactions done through electronic transfer. Through this mode, the lenders can access the bank account of the payday loan borrower. The purpose of applying for payday loans is to get supported during financial crisis. But unfortunately, the offer only aggravates the crisis.

As the term of the loan is very short, you are made to return the money along with the interest within a month and this is sure to be a burden for you. Since the major portion of your income will be spent on the loan you may be in a position to go for a rollover which is undoubtedly a greater risk. You can opt to pay the dues in installments with high penalty charges and multifold rate of interest. The cost of the loan is high due to high interest rates and higher fees charged for the loan. The hidden fees are very high for payday loans.

In some of the states, payday loans are considered to be illegal as the consumers are much affected by this offer. However, unethical lenders exploit the financial situation of the unfortunate borrowers and lend these loans. If the situation is so grave that the consumers are forced to go for this option, they end up with paying more for the loan than the real worth of the offer. Click here and The modes of collection in payday loans are very scary and the lenders are not concerned about the humiliation that is caused to the borrowers who are already in great stress both mentally and financially.

Some of the lending companies harass the borrowers with wage garnishment or prosecution. There is the security risk involved in the dealings as the social security number and security number of the borrower are submitted while applying for the loan. The consumers are warned by the Consumer Federation of America against payday loans and this warning should be considered seriously to avoid causing damage to credit score and financial status. With extremely high rates of interest, hidden charges and harsh and illegal collection practices, the payday loans can never be the solution for your financial struggle.

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Switch Loans Made Available Within An Instant

To pay off your utility bills and to take care of other expenses, other than waiting for your next payday, there is nothing much you can do. Even after getting hold of your monthly income, you will find it tough to balance the expenses. The income is small and the expenses that you have to tackle do seem to be large. Amidst all this confusion, if you are found to have serious credit issues, then even deriving additional monetary assistance in the form of loans appear to be a difficult task. But this is not usually the case, if you do avail the funds in the form of bad credit loans.

A viable option for all conditions

The fact that you are having issues related to bad credit does not really mean that you can never attain the loans. In fact, the lenders do make it a point to approve the funds, without looking much in to the credit history. This in a way then allows you to obtain the funds without having to worry much about other issues. Moreover it also does result in quick and immediate approval of the loans.

Immediate approval and fast pay out

Considering the fact that lenders do approve the funds without asking for any collateral it then paves the way for you to attain the funds with no apparent risk. The only condition that you have to meet to source these loans requires you to be employed for the past few months and that you do need to own an active checking account.  Since the loans are made available for a short term period the borrowed amount along with the interest rates and the lenders fees are deducted from your bank account, once the repayment tenure gets over.The repayment tenure can be extended, but that will also mean rising interest rates and additional charges.

Apply online and ensure timely repayment to improve the credit score.

When you do apply online to source Bad Credit Loans then you do get a chance to save time. The application process is simple and you can in fact apply for the loans at any point of time. On further comparing the quotes of the various lenders you will get as chance to derive the loans against more feasible terms.

Further on ensuring to make timely repayment of the borrowed amount it will assist you to improve the credit score.

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Guaranteed Payday Loans

Guaranteed Payday Loans

It is exceedingly hard to make some plans if you are indecisive with your personal income. However, payday loans can help you to find rest from financial difficulties. You can effortlessly plan trips or purchases as this form of cash advance can be acquired anytime. The main advantage of this service is that it is within reach and the application method is both painless and immediate.

Guaranteed payday loans are very convenient and easy to deal with. The loan direct lenders have made everything straightforward for the applicants. You can have money in your bank account on the day you applied. This type of loan can be arranged from the vast number of lenders existing these days. You can apply for the loan merely by filling an online application form. Make sure that you use the loan carefully and utterly understand the terms and conditions that are stated.

There are various viewpoints about personal loans. Many see them as a financial no-no while others see their benefits only. Several individuals are finding themselves with no money long before the subsequent paycheck is due. Any emergency or life’s interesting surprises can happen. Payday loans are there when you completely need them. Benefits of this kind of loan also include being able to get funds swiftly. The procedure of usual bank loans can take eternal to process no matter how little money you are asking for. Payday loan is handled quickly and in most cases, it is just a matter of hours.

The best part of getting a guaranteed payday loan is that there is low interest and no late fee charges. Once you have paid off your first payday loan, you can easily apply for the second. Another immense advantage of it is that no one gets to know that you have applied for the loan. The entire process of obtaining the loan can be carried out easily on the internet. You need not submit any documentation to apply for a cash advance. If the borrower fails to repay the loan on time, the term can be lengthened by paying a specified fee.

The only constraint of the cash advance is that the applicant must be older than 18 years in order to apply. On the other hand, there is no maximum age restriction for applicants.

Advance loans are easy, convenient, and reachable. You can always think of applying for a payday loan to surmount nuisance such as economic emergency. There are numerous benefits of using these financial tools, and if you suddenly are stuck in a financial crisis, you may find that getting extra cash is just what you need.

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The Solution to Your Debt Problems

What does Finance for Consolidating Debts mean?

Finance for consolidating debts is an option you can consider if you find yourself struggling to make your monthly mortgage payments and also trying to pay off of your debts at the same time. It involves the process of refinancing your current mortgage loan and combining any or all of the following debts into one mortgage. All of these debts have their own repayment terms, interest rates, fees and charges, and differing days of the month to repay the debts:

>> Personal loan

>> Credit card

>> Store card

>> Car loan

>> Leasing arrangements, and

>> Other loans

Are You in this Situation?

Like many consumers you have made your life miserable and stressful by getting yourself into a situation where you have:

>> A number of different loans, and

>> The loans being held with a number of different lenders/credit providers

Is Finance for Consolidating Debts the Right Solution for Me?

If you are currently finding it hard to keep up with your debts and you are struggling to make ends meet, for whatever reason, it is important to act quickly. Look no further because, you can get your finances back on track. Here are some practical reasons why finance for consolidating debts is the right solution for you:

>> You will not have to experience the stress and pain of overdrawn or over the limit credit card balances

>> You will not have to pay the higher credit card interest rates anymore

>> You will effectively manage your personal and household budget as you will not have to use numerous credit cards, etc.

>> You will not have to experience the possibility of missing some repayments on your debts and then having to pay a higher interest rate on the debts outstanding

>> You will improve your cash flow and streamline your payments without compromising your long-term financial outlook

>> You will have a lower interest rate

>> You will make only one repayment

>> You will have lower monthly repayments

>> You will get yourself back in control of your debts much sooner than anticipated

Take Action Straight Away

The first step is to talk to professionally qualified and expert finance brokers and let them know you are experiencing financial hardship. Finance brokers are committed to reducing your financial stress and getting you back on track again. They will assess your financial situation in detail under the responsible lending criteria and they will:

>> Conduct a serviceability test based on your overall financial situation, and devise an individual budget plan for you

>> Analyse your income and expenses and will work with you to present all the available options

>> Help to improve your cash flow and streamline your payments to avoid damaging your credit history

>> Help to lower your overall cost of repayments, to avoid any late repayments and to avoid the possibility of paying a dishonor fee

>> Explain everything to you in simple, easy to understand terms

>> Consolidate your debts, if you are paying a higher interest rate on your liabilities and depending on your financial situation

Obtaining finance for consolidating debts is very easy when you have a finance broker to help you. So, don't worry about your debt problems anymore. Obtain the best finance package to consolidate your debts today.

If you are troubled by your loans and unable to make regular payments, opt for finance to consolidate debts. Singh Finance will get you low rate personal loans and ensure your debt doesn't remain a problem for you. Contact now.

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How to Obtain Your Credit Score and Credit Report for Free As Well As Other Options?

Buying anything on credit almost always requires initial credit report and credit score checks. Even leasing and renting property has seen its share of credit checks. Hence, keeping your credit in top shape is essential to so many people. This is especially so as higher scores and cleaner reports can help keep the interest rates lower and can help you appear more trustworthy and hence are often allowed to pay much lower down payments. There are many ways to obtain your own credit score and credit report. Although getting them for free is an option, many people choose to pay for them to get more benefits. The great thing about this is that when you pull your own credit report, your credit score is not lowered, whereas if a lender was the one checking your credit report, your score might go down by five points. This is true even if the lender does not actually end up giving you any loan.

One Time Fee

If you are interested in pulling your credit or credit score once only, you can do that. There are many online sites that provide this kind of service. The fees usually range from $3 to $20. You can seek to obtain information from one, two, or all three credit agencies. You can also ask for only the credit report or only the credit score or both. In addition, you can have it mailed to you or with online access to print it.

Monthly Options

Many sites encourage people to go for monthly plans. This way, customers can make their own accounts with log in and password for their online access. They can have unlimited times to access their information for a specified duration. Although there are many monthly options, some sites offer quarterly options instead. In addition, many of these sites give free-trial periods for a week or two. However, they ask for a copy of your credit card information so that after the trial period ends, they can automatically withdraw money for the services offered.

Free Option

Everyone is allowed to get their credit report without the credit score once a year for free. This can be obtained online but they also provide a phone number and an address for those who wish to call or mail in the request. Some basic information would be needed, like your phone number, address, social security number and date of birth. They also ask credit history related questions like car payment details. This way is great because your report can show all your information from all three top credit bureaus that other lenders see. However, people often find that the three credit agencies do not match in all details as not all lenders report their activities to all three agencies. If you wish to receive the credit score along with the report, you are asked to pay a small fee for it. The website to look for is http://www.iCashLoans.com/.

Other Options

Whenever any lender denies to give you financing after they pulled your report, they would send a letter in the mail indicating that you have 30 days to obtain your copy of the credit report for free. This is meant to help you review your credit to understand why you were declined financing by lenders. Of course, if there are any items on the credit report that are not familiar, you should contest them. Many people find fraudulent activities on their credit reports and once removed, their credit scores recover within a month or so.

How Do I Find the Vehicle That I Am Searching For?

The fastest way to apply is to fill out the online application. To start, just click to apply, and let the Best Car Search dealers call you with your pre-approval.

If you live around iCashloans and your credit score is not great, there are Indianapolis buy here pay here dealers that can accept you for financing regardless of your credit score. They finance their customers directly and don't check for credit scores. You can easily be pre-approved before you head to the dealership.

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7 Tips:How To Repair Your Credit Score

1) Hire A Credit Specialist To Repair Your Credit Score

Credit specialists can improve your score by correcting inaccurate reporting or by removing negative information in your credit report.

2) Always Pay Your Minimum Payments On Time.

If you cannot pay your minimum payment call the customer service department for the lender or creditor and make a payment arrangement. At least pay them something rather than nothing. Make an arrangement to pay the balance.

By law a lender creditor or collection agency cannot mark your credit if you are under an arrangement to pay. Usually most people make arrangements to pay once their credit is damaged. An easier way is not letting it get to that point. Payment history comprises 35% of your entire credit score!

3) Keep Your Revolving Credit Card Balances Under 30% Of Their Limit

This one is simple. Don't use more than 30% of your available credit. If you have a $10,000 credit card, then treat it like its a $3,000 credit card. If you are using more then 30% of each card pay more than the minimum payment to get it down. Ideally you would like to be at 10% or under but not zero. You want to show your creditors that you are using and not abusing your credit lines. Consumers who do not use over 30% of their credit limits for a few months are considered low risk and have much higher credit scores. Credit utilization comprises 30% of your entire credit score!

4) Pay Your Mortgage Before Other Debts

Mortgage payments are weighted differently then other payments by the bureaus. Make sure you pay at least the minimum payment on time or call to work out an arrangement if you are going to be short or behind. They will work with you if you keep them in the loop. And as long as you have an arrangement they cannot mark your credit. The worst thing you can do is to just ignore it.

5) Dispute All Collection Agency Notices

In the future, regardless of whether a debt is valid or not, dispute all notices from any collection agencies. There are certain rules and laws that these agencies have to abide by. If you read the first notice you get from a collection agency it will say "you have 30 days to dispute the validity of this debt". Send a letter along with a copy of the collection notice within your 30 day dispute period. Make sure the letter states that you "dispute the validity of this debt". It should also state that you are "requesting a cease and desist from all collection attempts via telephone. All communications regarding this debt should be in writing". Send it by certified mail to the collection agency. By law they can still contact you by phone one more time to let you know of their intentions. However, the best part about doing all this is not only will you have to deal with annoying collection agency phone calls, but once a debt is disputed IN WRITING they legally cannot mark your credit!

If a collection agency still attempts to collect by telephone write down the dates, times, who you spoke with and if possible record the message. That collection agency will be in violation of the FDCPA and you can be entitled to funds from fines and damages.

6) Set Up Installment Arrangements

Set up installment arrangements for any future tax debts. We have a clever way of dealing with past tax liens, call us for more information about that. The state and federal government doesn't play around when dealing with tax debts. They are hard to dispute the validity when you or your employer files your taxes with your social security, and birth date, and paperwork that you signed at employment. Don't let it evolve to a judgement or lien, Set up a payment plan that is appropriate for both parties. Again by law they cannot mark your credit as long as you are under a payment arrangement. Set up that arrangement BEFORE you get a lien or judgement on your credit report.

7) Don't Apply For New Credit

Here is very simple tip. Don't apply for credit unless you know you will be approved. Especially if you have been turned down recently. Ask the lender what their qualification for approval are before you apply. Mortgage lenders have very clear qualifications for approval. For instance FHA will require you to have at least a middle score of 620, 4 months of reserve mortgage payments liquid, and they require that you have no judgments, liens or accounts in collections. That's pretty clear cut right? Many auto loan lenders will approve you with low credit if you have a cosigner with good credit. If you don't meet the qualifications, or you don't have the consent of the cosigner, don't apply for the credit line. In the end it's not worth an inquiry on your credit report unless you are going to get the credit line.

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Credit Card Use Tips

Whenever possible, you should always try to pay off your credit balance completely by the end of each month. If you manage to do that, the credit card functions very much as a debit card; but you gain the amenities that credit card companies so often provide to promptly-paying customers.

Of course, this good deed may not be what it seems: it is this very reality that most people don't pay the balance completely each month that keeps the entire credit industry in business (in fact, about 69% of the $163 billion they gather in each year comes directly from this). Obviously, you understand and assent grudgingly to this as part of credit life and the cost of borrowing money.

Hidden - more often than not - in the tomes of credit-card lore, there's a practice that would widen most eyes with surprise. Far too many credit-companies exist that begin charging you interest, not from the moment they actually buy the item you charged from the merchant, but from the moment YOU charged it. This is important because there can be several days' difference between the two.

This means they are slapping you with an interest charge for no defensible reason! After all, interest can't gather on the promise of a charge; only on the charge, itself. Right?!

Why does this matter, you say? Consider: one could argue that there shouldn't be a problem since you bought the merchandise on that date. In truth, however, it isn't really fair, because this means the company has started charging you interest for an item you haven't bought yet!

In the highly automated computer systems of credit card companies, your account reflects the effects of their purchase in the time it takes an electron to fly from one end of the building to another!

If you decided to annul the purchase in the time between when you charged it and they paid the merchant, you wouldn't lose any money; so, why should they charge you interest during this inevitable "grace period"? It's a good thing that only some credit companies do this; thus, it would be wise to find one that doesn't - if you aren't the kind of consumer to rectify your credit-card balances by month's end.

It is important to realize that when dealing with credit companies, there's so much that goes on behind the scenes, it can be hard to keep track of what you need to be paying attention to with so many other daily responsibilities. Another thing to watch out for is changes from the common 25-day interest-free period on purchases.

To buttress the previous point that whereas credit companies often seem to reward customers who settle their balances by the end of the month - and thus avoid carry-over fees - this is mostly just for appearances. They can bait more patrons with this tactic; after all, they're only in business because most credit card-holders don't pay off their balances each term, and their research assures them this will never happen.

Their underlying intentions are shown by an increasingly common habit of lessening the interest-free time-span to 20 days (in many cases, with little warning!). Compounding the underhanded nature of this whole action, the grace period is lessened to about 23 or 20 days solely for those cardholders who settle the monthly balance in full.

It's almost as though they're trying to catch you unawares! Of course, they do take a percentage, and this makes that action lucrative. There is still an option, however; you can actually ask them to get you back on your previous billing cycle. Just keep in mind why credit card companies are in business, and your responsibility to keep them from digging too deeply into your pockets.

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Credit Card Processing: How the System Works

Establishing a merchant account for your business enterprise is the wisest financial decision you will ever make for the growth, expansion and success of your business. Once you've set up a merchant account, you can accept credit and debit cards payments from your clients for your products and / or services. You can also arrange to accept online and mobile banking payments for your products and / or services.

A merchant account opens up new avenues for your business; therefore, giving your business many more opportunities to flourish. But, have you ever understood how the credit card processing system works? Have you tried to perceive the complexities of the players involved in the process and the intricacies of the system?

While it is not entirely essential for you to know the inside and outside of the card processing system because your Merchant Service Provider will do the needful for you; it is good for you to acquaint yourself with the system on a general basis.

The Participants Involved in a Card Transaction

A typical credit or debit card transaction involves the following players:

• The customer
• The merchant
• The payment gateway
• The customer's credit card issuer
• The credit card interchange
• The processor at the acquiring bank
• The merchant's acquiring bank

The Route the Money Takes from the Customer to the Merchant

Let's take an example to understand how the card processing system works.

Suppose that a customer walks into a clothing store and she finds a bag that catches her eye. She immediately proceeds to the payment counter and makes a payment of $100 towards her purchase with her cards.

The cashier at the merchant's store accepts the cards and uses a card swiping machine to set the process into motion.

• The $100 amount makes its first stop at the payment gateway where the payment is first authorized with a minor deduction in the amount.

• Now, $99 travels to the appropriate processor and after a minor deduction is submitted to the card interchange as $98.5.

• Once the transaction gets a clear at the interchange, it moves on to the issuing bank with a further deduction where the issuing bank verifies the availability of funds in the customer's credit / debit card.

If the transaction is declined, it makes its journey back to the customer from here.

• If the transaction is approved, $98 reaches the processor at the acquiring bank, just one step closer to the merchant account.

• Once authorized, $97.5 gets deposited into the merchant's account, which is now at the merchant's disposal.

(The figures and fees involved in card processing are based on the number of players in the process, merchant type, card type and risk factors)

In the present age, quite a number of payments are made electronically, especially with the extensive use of credit and debit cards and online funds transfer. Although typical card processing takes seven participants, the entire transaction amazing takes a maximum of five seconds for approval.

Plastic money has certainly established a place for itself in the industry, and establishing a merchant account to avail of its benefits is beneficial to the growth of your business.

Click links if you like this and want more updates on accepting credit card payments online & Credit card processing services.

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How To Avoid Rejection of Your Personal Loan Application

This article particularly deals with looking into the various issues surrounding the rejection of a personal loan application. Once the application has been logged in, there are several background processes that occur based on which the loan application is approved or rejected.

1) CIBIL Score

Your cibil or credit score should be a minimum of 750 in order to be considered for approval. This is the reason why every individual must purchase a credit information report prior to their application, because if your loan is rejected once, it might take a while before you will be able to apply for a loan again (i.e. after a minimum of 6 months)

2) Documents mismatch / document fabrication

When people are in desperate requirement of money, they tend to lose sight of what's at stake when they fabricate documents such as pay-slips in order to be eligible for a higher loan amount. Apparently, banks are not that easy to fool around with. The moment a documents mismatch is noticed by the bank where you've applied, the information will be passed on to every other bank, there ends your chance of even applying for loans elsewhere, for the rest of your life.

3) Exceed repaying capacity Limit

This happens when the individual applies for a loan, however his ability to pay the emi is a big question. For every individual, only a certain portion of his income can be spent towards paying emis while the remaining is required for living expenses. If the customer is already paying for either a credit card or loan emi, then banks tend to view such cases warily.

4) Customer Profile Score for each loan portfolio presented, the bank rates the profile on various aspects such as the income, residential stability as well as previous financial records. Every bank puts forth a cut off score which needs to be fulfilled by the individual.

5) Even the smallest of details matter, for instance, if there is lack of cooperation during the verification process (office verification, residence status verification so on), or sometimes the details provided by the customers are not 100% correct.

6) Having no loans or credit cards also make lenders wary, in this case the cibil score is usually a -1 or 0. Where -1 indicates no credit history whatsoever and 0 indicates transactions yet to be updated in your report.

Now that you have had a look at the primary reasons behind personal loan application rejection, let's take a look at the solutions or rather best practices tips to help improve your chances of approval:

1) Maintain a positive credit record whether it's your loan or credit cards, ensure that you repay promptly, to have an acceptable credit score. Avoid late payments or credit card settlements as these are some of the most common reasons for your loan application to be rejected.

2) Proper documentation

It is true that minimum paperwork is involved when it comes to personal loans, but even the minimum needs to be absolutely perfect. Apparently, banks are not that easy to fool around with. The moment a document mismatch is noticed by the bank where you've applied, the information will be passed on to every other bank, there ends your chance of even applying for loans elsewhere, for the rest of your life.

3) Never exceed the repaying capacity

It is always a good idea to not be knee deep in the debt pool, never engage in too many loans and then end up not repaying them. Although banks ensure you stay within the FOIR limit, being proactive and wise in your spending habits will definitely give you an advantage.

4) Ensure you co-operate fully throughout the entire loan application process, because it is you who's going to gain or lose at the end of it all.

5) It is always a good idea to maintain credit cards, so as to have a credit history to show while applying for loans in the future.

Applying for personal loans has never been easier, whereas getting an approval has always been a bit tedious. As long as you do what is required of you, your loan will be disbursed before you know it.

Looking for more information? For starters, visit our site http://www.betterloansmutual.com/ you will find a whole lot of details on personal loans and to find out if you are eligible for availing best personal loans.

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How to Check Your Eligibility for the Harp Program

Over 3 Million Americans have already taken advantage of President Obama's Home Affordable Refinance Program (HARP PROGRAM). Thousands of dollars are being saved on a monthly basis because of the program. If your interest rate is in over 5% and you haven't looked into refinancing, now is the time to check your eligibility.

Because of the lack of Inflation and a less than stellar housing recovery, interest rates remain at historically low levels. All indications point to that being the forecast for quite some time. Consumers that are employed and have a credit score of 620 or better are encouraged to apply. There are Millions of homeowners who still have not taken advantage of this government program. The HARP program was established by the Obama administration to help homeowners who have been affected by the downturn in the U.S. Housing Market. Many consumers lost equity due to the crash in the Real Estate Market. The HARP Program was designed to allow homeowners who have little, no or negative equity in their properties to refinance regardless of whether or not they have equity. If there is no mortgage insurance on the loan being refinanced, there is no mortgage insurance on the new loan. Old guidelines dictate that mortgage insurance is required if there is less than 20% equity in the home (amount owed divided by value is over 80% or less).

There are many ways to check your eligibility for the HARP Program. You should select a Mortgage Banker or Broker who specializes in the program. Many consumers have gone to their current lenders and have been turned down. However, what homeowners must realize about the HARP Program is that the Guidelines set forth by Fannie Mae and Freddie Mac are somewhat lenient. Lenders often times put their OWN RESTRICTIONS on top of Fannie Mae and Freddie Mac's. Therefore, if you have applied before and have been turned down, it is imperative that you check your eligibility with a different firm that doesn't have their own restrictions to the program.

The HARP Program will not last forever. Currently, it is set to end at in 2015. However, there are many factors that may change that timetable. It is important that you check to see if you qualify for the program now. Interest rates are very low and now is the time to lock into what may be the lowest interest rate that has ever been available to homeowners in the United States.

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Tips To Get A Good Deal - Home Loans

Buying a home calls for a huge investment. However, buying mortgage of and the interest of a loan often exceeds the house's cost. Hence, a home buyer should try to get a good deal on the mortgage. However, getting a low-interest rate is not an easy job. One should buy a mortgage very smartly. This article offers some effective tips to get a good deal on a home loan.

Wait
Home buyers should wait until the rates of interest on home loans lower down. Interest rates vary to great extents. One can notice fluctuations in interest rates even in a single day. At times, the rates are far lesser than the rates at other times. However, when applying for cash back home loans, buyers should keep in mind that at times during which interest rates are low, prices of houses are often high.

Improve credit
Buyers should make loan payments and other payments on time, especially before the months of his loan application. Negligence in timely payments will lead to a low credit score. The better is the score; the better will be the deal. However, one should remember that improvement in credit takes around two years. One should not close accounts after making payments as credit ability is credit scoring's important part.

Get mortgage first
If multiple monetary obligations are likely to emerge in the future, one should get his mortgage first. Many credit inquiries, like new credit card applications, can lower down a borrower's score. The score will be much affected especially if the borrower files the applications at the time just before his loan review process. Moreover, if one adds new debt expenses just before filing his mortgage application, the loan underwriter will think whether the borrower can pay the loan on time or not. Hence, borrowers should avoid buying expensive things in the time before applying. Home buyers should save a large amount to pay as down payment. When the down payment is big, the buyer has large equity in the home right from the beginning. When the equity is large, the loan poses a low risk to the lender. Buyers making large down payments get a low rate of interest.

Lessen upfront expenses
Points and different other upfront fees can lead to a big increase in the loan cost. Home buyers should consider this when they shop for a mortgage. Points are a great way to get a low rate of interest.

Think small
Buyers should avoid the temptation to buy a large house by applying for a huge loan. At the time of approving loans, lenders think about "payment shock". If one switches over from a low housing payment per month to a very high one, he will end up paying a very big loan or will not qualify at all.

Research well
Mortgage rates vary from one lender to another even for the same borrower. Hence, it is important to shop around and research well to find the best rate. If the borrower has a cordial relation with a bank or belongs to a credit union, he is likely to get the best rates at those places. However, checking around is always a good idea. Borrowers can hire a mortgage broker to find great rates in fixed rate home loans.

With these tips, a home buyer can get a great deal in a home loan. These tips will also help buyers get no deposit loans.

Leaor Willem has written many articles on home loans. In her articles, she offers valuable advice on how to get cash back or fixed rate home loans.

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What Do I Do If My Home Loan Application Is Rejected?

Home Loan Application

Sometimes, when we do not meet the requirements, our friendly lender or home loan agent will politely usher us out of the door. Don't think it is personal. If you had submitted a formal application and got a formal rejection, it is most likely that your appraised loan value is too small with your applied loan or need. Often times, your credit history, total debts, and work history affects the way the lender sees your future payment performance. It is always best to have an honest discussion with your lender about the reasons your application was rejected.

Income and credit guidelines

Each lending and banking institution has its own preset income structure and credit guidelines. If you have declared bankruptcy or had a bad credit history, you need to wait a few years to get a good credit rating again. This means your pocket needs time to be healed. Banks most likely will put you in a quarantine mode until you get cured of poverty. The highest number of years is 7. However, some banks are more forgiving and may extend some loan after 5 years.

Poor credit or late payments

To heal your credit history, you need to pay your credit card bills on time even if you only pay the minimum payment of your bill. Bad credit starts even if you get delayed in paying your credit card for at least 2 weeks. The technique is to pay the minimum on time and then just pay additional when you have more money. It is very important that you pay on or before the due date. If credit repair is not possible in the least number of months, you may want to check out another loan sites or contact a home loan mortgage agent. Payments and late repayments are being recorded by the Credit Bureau and are made available to credit providers. Your past repayment or credit history is an important indicator of future behavior.

Appraised value of property

This is very much related to the location of the property you desire to purchase. The resale value is very much affected by the location and market valuation of your property. Any factors affecting the value of your property may result in loan rejection such as your house sitting on a red district or a dilapidated building. A location that may be affected by a future planning is not likely to get approved.

Financial information and verification of deposit showing inadequate funds

If you have a very low deposit or inadequate funding, the lender or bank may not be confident in extending credit. They may require a guarantor to help with the approval. Another tric k is combined incomes with someone who is working such as your wife or a close relative. The aim is to show the bank that you have the ability to make prompt payments. An insufficient income will give you a hard time qualifying for any loan. You need to update your bank accounts and show enough funds.

We are a Home Loan Mortgage and Home Loan Application consultancy firm offering free expert advice on compare home loan mortgage financing packages using the most advanced loan analysis system.

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