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Financial Loans Real Estate

Pros and Cons of Automatic Mortgage Payments

Pros and Cons of Automatic Mortgage Payments

When it comes to automatic mortgage payments, there are numerous benefits as well as drawbacks of this feature. Here we have mentioned some common things that you need to know before opting for automatic payments.

Pros of Automatic Payments

Automatic mortgage payments are the most common method people use to manage mortgage loans. Here are some benefits of online payments that encourage people to opt for this approach.

Timeliness

The biggest advantage of using this method is peace of mind, as you don’t need to worry about late payments. Instead of remembering to make monthly payments online, you can let your bank take care of your payments. Besides, automation can help you boost your credit score and develop a record of on-time payments.

Sustainability

If you are one of those who prefer eco-friendly methods, setting up automatic mortgage payments is ideal for you. This is because by using automatic payments you don’t have to use more paper, as you have to write a few checks and buy few stamps. Hence, you will use a paperless billing method that is safe and secure for the earth. Not to mention, you will also contribute to reducing emissions by receiving and sending fewer emails.  

Security

Although some people fear that automatic payment methods are not safe, there are many reputable institutions that use secured methods for payments. These organizations use advanced security measures for online payment mechanisms. In fact, you choose a risky method when you use an unsecured mailbox to send a payment via checks. These paper bill payments also include your financial information, such as your credit card number or account number.

Cons of Automatic Payments

While automation offers many benefits, it also has its drawbacks.  Here are some cons that you need to know about online mortgage payments.

Overdraft Fees

In some cases, payments can fluctuate in amount, and if you don’t notice, you might experience an overdrawn account. Overdraft fees can greatly vary, but the average fess is $34. In this case, it’s important to track your bank account and only leave enough money that can cover your automatic payments.

Unsubscribing Problems

This is the most common problem that people face. If you find the method invaluable and want to unsubscribe it in the future, you may experience several problems. For instance, the institute that offers you an automatic mortgage payment option may not respond to your request. In other cases, the process is too lengthy and complex that it takes days to unsubscribe automatic online payments.

Costly Mistake

Another problem is that automatic payments can do lead to costly mistakes. For instance, your home mortgage company can accidentally withdraw monthly payments twice at the same time. Although these mistakes are rare, they can still happen. You also need to know that recovering this amount can also be a headache for you.

Automatic Payments Bottom Line

So, now you may decide whether you need to opt for automatic mortgage payments. It is important to note that possible problems greatly depend on your chosen organization that makes payments on your behalf.

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Business Career & Education Financial Loans

5 Steps to Getting a Business Loan

5 Steps to Getting a Business Loan

You want to start your own business. That is great news, a huge step, something that should be encouraged and applauded. But it isn’t just as easy as coming up with an idea and making it a reality. There are many hoops to jump through to make your business come to life, including getting a business loan so your company can have the capital to be a huge success, find customers, and make it long into the future.

How is that done? How does someone secure a business loan, especially if it is their first time starting a business? While not all of the steps are easy or short, the process is simple enough to follow. Make sure you follow this necessary procedure and you will stand the best chance to get yourself a business loan and create the company you have always dreamed of.

1.   Are you Eligible?

Before you get too excited about your business, you need to first determine if you are even eligible for a business loan. There is a lot riding on this fact. Actually, everything is riding on it.

How do you decide if you can get a loan? You need to weigh a lot of different factors. For example, what is your credit score? Have you opened any other business? Do you make enough money? All of these things must be figured out before you can land your business loan and open your company.

2.   What Type of Loan Do You Need?

Did you know there are many different types of loans available to you if you decide to start your own business? It’s true, there are more than you think. You need to figure out which type of loan you need. Do you need a personal loan or a business credit card? Maybe you need a government-backed loan or a more traditional loan from a bank? These are the sort of questions you need to ask and answer before moving forward with getting your business loan.

3.   Online Lender? Bank? Who Should You Look To?

In the modern world, there are many different places you can go to to get your small business loan. Do you want to rely on a bank or microlender or online lender when you are looking to get your loan? Weigh your options, see what each has to offer, then move forward by requesting the loan from the supplier of your choice.

4.   Gather your Information

Obviously when you are applying for a loan, you will need a lot of documentation and information to give the possible supplier of your loan. You will need tax returns, bank statements, legal documents, and a legal plan. You need to round all of these up and have them prepared for a sit-down meeting for your loan. Make sure all the ducks are in a row before you take the final step.

5.   Apply for your Loan

Now that you have followed all the other steps you are ready to finally apply for your loan. Make sure you are dressed your best, bring all your documents, and have a solid business plan when you are stating your case for the lender of your choice.

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Financial Loans

What Are The Best Car Loans

best car loans

When purchasing a car, one major obstacle for many people is the cost. Even inexpensive cars can cost thousands of dollars. Many people don’t have thousands of dollars to spend at once, especially if they need a new car as soon as possible. Getting a car loan can help you cover the cost of the car while offering easy ways to repay.

When shopping for a vehicle, one of the steps that shouldn’t be neglected is looking for auto loans. Finding the right loan can help you save money while repaying the loan and negotiating with dealerships. Having a car can help you negotiate a lower rate, or even decrease monthly payments.

PenFed Credit Union

PenFed Credit Union offers low rates for new and used auto loans. They even offer to refinance loans. They offer loans from $500 up to $100,000 so that no car is out of reach. Depending on what kind of loan you are applying for, rates can start as low as 1.39% for a new car. To get a loan from PenFed, you will need to join the credit union, but those standards are easy to meet.

LightStream

LightStream is an auto loan company where the application can be completed entirely online with money often coming in the next day. They offer a variety of loan types, including new and used cars and classic car loans. The loan rates range from 2.49% to 9.49%, with applicants with the best credit getting the lowest rates.

Bank of America

Bank of America is a familiar financial institution to many, making them a welcome choice for many people. They also offer rates as low as 2.59% with a maximum of $7,500 for a loan. They do not give out loans for cars older than ten years or with more than 125,000 miles. Borrowers can choose from a 48, 60, or 72-month long loan after completing the quick application process.

Consumers Credit Union

Consumers Credit Union offers auto loans as low as 2.69% for up to 60 months. They also don’t have a minimum or maximum loan amount, loans are approved based on your credit history and the car report. Borrowers must also be a member of the credit union, which requires a payment of $5.

myAutoLoan

myAutoLoan is the best choice for people with a poor credit score. This is a marketplace option where borrowers can compare multiple offers and choose the loan best for them. The application process is quick and borrowers can compare four lenders. Loans are as low as 2.49% for new, used, and refinancing loan options.

Summary

Buying a car is expensive and many people can struggle to cover the expensive costs. Having a loan will help you buy off the car without a high-interest rate. Even if you have a history of bad or low credit, it is possible to find a lender that will help you. Get the car of your dreams with an auto loan.       

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Credit Financial Loans

Auto Loans for People With Bad Credit

auto loans for bad credit

We’ve all been there at one point or another: you need a new vehicle badly, but your credit history has not been looking the best these past few years. While that may have been a crippling issue just a decade ago, these days there are more and more options for getting auto loans to those with bad credit.

While there are sometimes bad credit loans available from popular lenders, there are some lenders that have specifically entered the market to help those with credit problems and limitations. The downside to these loan programs is that they often require higher interest rates and as a result, higher payments on the loans themselves. But there are still some great benefits to some of these lending programs, take a look:

New Roads Auto Loan

New Roads is a direct lending division of Consumer Portfolio Services Inc. Consumer Portfolio Services Inc. is a general finance company that offers indirect automobile financing to consumers with bad credit. They also can help consumers with low incomes or limited credit histories.

New Roads has loan programs for both new and used vehicles, refinancing, as well as lease buyout options. While they do not require a down payment, financing without one means you finance a larger amount. This can increase the amount you pay over the life of your loan.

They consider applications from consumers who still have a repossession or bankruptcy (open or closed) on their credit reports. They also make allowances for co-buyers as well. One downside is that New Roads is only available in 30 states, so depending on where you live, you may not have access to them.

Capital One Auto Finance

One of the biggest draws to Capital One, in addition to their willingness to work with less-than-stellar credit, is the ability to prequalify for a loan, before having them do a hard pull to confirm. As people trying to rebuild their credit know, a hard inquiry can affect your credit score if you have too many within too short of a time. With Capital One you can get a pre-qualification and can check the estimated terms and payments before deciding if you want to commit to a full application.

They offer loans for all types of vehicles both new and used, and they offer to refinance existing loans from other loan servicers as well. They have a minimum loan amount of $4,000, and the loans can only be used at a participating car dealership, though there are 12,000 of those. In order to apply and qualify, you will need to be 18, have an income of between $1,500 and $1,800 monthly, and live within the lower 48 states.

The maximum loan amount you will be approved for will depend heavily on your income, credit history, and other factors. However, when you are approved, you will be able to use the Auto Navigator tool to find your vehicle of choice.

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Financial Loans

Best Personal Loans for Excellent Credit

personal loans with excellent credit

Introduction

Personal loans come from a bank, online lender, or credit union that you pay back at a fixed rate in installments. This usually spans between 2-7 years, and they are best used for large personal expenses (ex. medical bills, home improvement, weddings, or exceptionally expensive purchases, such as a car or boat) or debt consolidation (lumping several debt payments into one).

They are meant to advance towards financial milestones, not add to debt.To qualify, lenders will look at your credit score, credit report, and DIT (debt-to-income ratio). Borrowers with excellent credit—defined as having a FICO score of at least 690—earn the lowest interest rates, receive the largest amounts, and have the most options when it comes to loan selection.

Important Things to Consider When Picking a Loan

Because you have so many options with excellent credit, you have to do some research to pick the best loan service for your intended purpose. Important things to consider would be:

  • Interest rates (how high and fixed/variable)
  • Repayment options (time period, minimum/maximum amounts)
  • Fees (including prepayment, late, and origination)
  • What you are using the loan for
  • Timeliness (how long is the application process and when do you receive your money after you’ve been approved)

Even with excellent credit, your personal loan can still be denied—do not take it as a given. Sometimes, the lender may be backlogged or have insufficient funds to issue out a loan. This will unfortunately result in denial.

Because of COVID, many banks and lenders have offered new products and lower interest rates, though you need to meet extra criteria to qualify.Some may even offer deferred payments or waived fees.

This Year’s Top Personal Loans for Excellent Credit

There are countless loan companies to choose from, and sometimes it can be difficult to find the one that is right for you. The process is tedious, but do not rush through it—you may end up paying much more than you need to.

A couple of this year’s top personal loans for excellent credit are:

  • SoFi
    • Digital lender that offers many products, including personal, home, student, and insurance loans from $5,000 to $100,000
    • Beyond the loan itself, it offers protection programs (ex. if you lose your job and can’t pay), referral bonuses (if a friend signs up), personalized financial planning, and more
    • To top it all off, the loans are fee-free and there is no minimum annual income
    • Their fixed-rate loans range from 5.99% to 20.69% APR
  • Lightstream
    • Offers loans up to $100,000 for almost anything (including medical bills and education loans)
    • Has generous repayment terms rivaling SoFi at 2-7 years, which means lower monthly payments
    • Does not have fees or prepayment penalties
    • Offers discounted interest rate when you sign up for autopay (your credit card has a set minimum amount it pays each month automatically)
      • With the autopay discount, their APR is slightly lower than SoFi at between 5.99% and 19.99%

Conclusion

When applying for a personal loan with excellent credit, you should put yourself through a rigorous process to assure you make the right decision. Comprehensive research into different loan companies and types of personal loans is the most important. Remember that with excellent credit comes excellent selections—the world is your oyster!