Personal Finance Options For People With Bankruptcy and a Bad Credit History

Do you have a bad credit rating, i.e., a credit rating of less than 580? Are you almost bankrupt or have filed for bankruptcy? Do you need personal finance as the payday is a few weeks away? If your answers to these questions are “Yes,” you need not worry. Fortunately, there are several subprime and bad credit lenders who lend money to people with a low credit rating and can help you out.

Subprime and bad credit lenders have a variety of personal finance options available for individuals with past bankruptcies. To begin with, you can check with your local bank or credit union whether it offers bad credit loans. You can also search on the internet for bad credit lending houses that offer loans and personal finance options.

However, do bear in mind that the risk of lending money to people with bad credit ratings is high, and therefore, the interest rate that the loan companies charge for loans is at least 4% higher than the typical prime lending rate of banks.

Here are some things you need to bear in mind if you are looking for a lender to help you out:

1. Consider a number of sources before you sign up for a loan; do not accept the first offer that you get from a subprime lender.

2. Read and understand the entire loan agreement carefully, especially the repayment schedule, as well as check whether you can really afford this loan. The loan details may be wonderful, but if your pay check does not give you the cushion to take the loan, re-consider your decision before you sign the agreement.

3. Further, learn everything about the other “hidden” charges such as transaction fees and application fees that the loan will entail. Ensure that you clarify all the details regarding the loan agreement with the lender. Especially, if there is a certain part that you do not understand, ask your loan agent to explain it in detail.

If your credit history is bad or if you have undergone a bankruptcy, it may become a little difficult for you to obtain a loan. Some lenders and subprime loan providers require additional security and may charge higher interest rates, but they will certainly be able to help you. Just spend some time and effort on conducting a thorough research to find the right personal finance option from a bad credit lender that maximizes your chances of sailing through the bad financial times.

Considerations When Looking For Car Finance by Location

When looking into car finance options it may be confusing as there are so many offers and deals out there. You may want to take what might seem to be the easiest option of walking into a dealership to buy a vehicle and take the finance deal they offer. However, this might not necessarily be the cheapest way of obtaining the finance needed to purchase a car. You may want to compare the cost of interest rates online and there are specialist motoring websites that search for car finance by location for you and allow you to look for a new or used vehicle in your area too.

If you choose the option above to look for a vehicle and car finance by location then of course this may save a great deal of time. Usually you are able to browse through new and used cars in your area and if you find what you are looking for, you are able to compare the best deals on your finance. If you do not understand APR then this may be the ideal choice for you as you may be sure that they find you the best deals possible. When you purchase a vehicle this way, usually everything is taken care of for you and all you do is pick up the car from the dealer.

When looking for a vehicle and car finance by location you then have to decide how much you are able to repay each month. To help keep the loan affordable you may be tempted to stretch out the term of the loan. When considering this you may want to use a loan calculator to work out how much you have to pay in interest and in total. It may help if you are able to pay something towards the cost of the vehicle so if you do have savings you may be able to borrow less and so you pay less in interest. Another bonus to taking a personal loan to finance your car is that the vehicle is yours and providing you keep the repayments up to date, or pay off the loan, you are able to sell or trade in the vehicle whenever you wish.

Of course, if you are going to take the traditional method of buying your car by going into a dealership on foot, the dealer usually offers car finance. When taking finance this way it is called hire purchase. As the name might suggest the vehicle is not yours until the final payment has been made, until then you are just “hiring” the car. You also usually have to put down a deposit on the car. As the vehicle is not yours until you have paid the final installment you are unable to sell the car or trade it in until this time.

Whichever method of car finance by location you choose, reading the terms of the contract is essential so you know exactly how much the vehicle is going to cost in total with added interest.

Real Estate Investments – 4 Common Ways to Raise Finance in the Real Estate Business

There are different types of financial institutions available in the market. These include commercial banks, insurance companies, credit unions, brokers, investment banks and venture capitalists. The method and repayment plans of each of these institutions vary accordingly so it is up to you to decide which one to adopt as best suited to your requirements.

Financing from banks

This is the most common form of raising finance, in this method the bank gives you a loan and then you have to repay the loan in a given amount of time with interest. Usually commercial banks are the ones able to offer you the highest amount of loans but these banks have a very strict policy on who qualifies for their loans therefore resulting in big time delays due to which by the time you get the loan the seller may already have sold the property to someone else also in the current economic climate more and more banks are refusing loans to potential customers due to the increased risk of bad debts.

Venture capitalists

Venture capitalists are people who invest in a business and provide capital for start up or expansion. They are professional investors who manage funds for the sole aim to invest it in whichever business they feel offer the highest returns. Venture capitalists normally charge higher rates of return than traditional institutions, it can be as high as 25 percent the venture capitalist may have no business experience applicable to the industry your company is involved in, and is focused on the potential rate of return your company can provide.

Equity loans

This is another frequently used financing option. Equity loans are loans that you have secured by the equity that you have built up in your homes (equity is the difference between the property’s market value and the amount that you owe on it). These types of loans are generally offered to people who have a good credit history and rating. Normally such loans are carried out by the owner of the property to either repay the previous mortgage or to raise finance to fund a new investment opportunity. These kinds of loans have low interest rates as the banks keep your property as collateral (an option in which if the person defaults then the bank can foreclose the property).

Bridge Loans

This financing technique is usually used by those sellers who want to buy a new property before selling an already owned property but they need the required finance to come from the property that they already own. These types of loans are mostly used in seller markets. These loans are approved fairly quickly by the bank as they do not take a long duration to repay also in such types of loans the banks usually charge a higher rate of interest then in traditional modes of financing.