Have you found your dream house but feel that you don’t have the cash to buy a property right now? One option you can do is to apply for a mortgage. Mortgages are means of making the purchase of a property more affordable to most people. Mortgages help you pay the price of a property at a staggered price rather than paying for the property’s full price at one time. The staggered payments are made through amortizations that is spread across a long loan period, usually over 10 years. If you are considering to apply for a mortgage, here are a few tips you might find helpful.
Know your credit score.
Your credit score matters with regard to loan you are getting. Credit scores affect the rate of interest which will be applied to your mortgage and the period of which you can pay the loan. In other cases where your credit score may not be as good, your application may be rejected.
Understand your financial status before you make a loan.
The starting point for applying for a mortgage is your current financial capability. First you will need to know and have a plan on how you will manage your mortgage amortizations. This is an obligation you will have to fulfill for a long period of time. Understanding your current financial status will give you an overview of your capacity to pay.
Make sure that you don’t have existing debt.
When applying for a mortgage, it is best to make sure that you are clear from loans and any outstanding credit card debts. The last thing that a mortgage lender would want to see is an obligation you may have with someone else that needs to be paid. It will only give them an idea that they need to compete with those existing debts to get paid.
Put out a big amount to lessen your loan amount.
If you have the cash, try to shell out a bigger chunk than what the required minimum amount is. If you put a larger down payment, it will cause you to have a loan which is smaller and in effect a lower interest amount being paid.
So you’ve got your first job and now you’re wondering how you are getting all those credit card offers that claim you have been pre-approved for a credit card. The question is are you taking these offers and do you really need a credit card right now?
Credit cards nowadays are starting to become more of a necessity rather than a want. Credit cards are now being used in almost any platform of purchase and can even be efficiently assist you in your online transactions. Some websites even require a credit card for you to register as a member. Here are 4 things you need to consider when you decide on getting a credit card.
Check the interest rates.
Always remember that any form of credit and loan entails a cost of borrowing the money which is represented by an interest rate. If you miss out payments and roll over your outstanding balance, these interest rates are the amount you pay for the amount that is borrowed. Remember to compute for the APR for each card offer you get or the credit card issuer you are planning to get from. Also learn about the fees that come with the use of your card.
Learn about the loyalty points and bonuses.
Most credit cards now offer loyalty points and bonuses for the use of the card. Learn how they are used and how you can take advantage from them. They can help you purchase a need at a discounted price or even for free. While the points add up while you are using your card, make sure you are also planning on where to use them.
Make sure you understand how charges work.
Credit card issuers have their own set of terms and conditions. Most terms are common across banks but certain terms and conditions such as charges differ. Charges may also be different between different types of cards issued by the same bank.
Check the minimum payment due.
If you cannot help but roll over your credit, you will need to pay a minimum amount due. Know how much your minimum payment should be to make sure you choose a card with the lowest minimum amount percentage due.
Credit cards are a breakthrough in the financial industry. Ask anyone who is involved in markets and financials, they would agree. Credit cards have been used for decades and as time goes by, the service being provided by banks and credit card issuers have become more better and advantageous to the user. But there is always the risk of getting buried deep into debt that is why managing your credit card is very important. Here are four things you should keep in mind in using your credit card.
Make sure that you avoid rolling over your credit unless it is necessary.
Rolling over your credit will only increase your principal amount to which interest rates are being charged from month after month. Always try to clear up your credit balance when you use your credit card to avoid any interest rates that can cause your total amount due to increase.
Use your cards that offer rebates and promotional offers.
Credit card issuers and banks often offer promos and rebates when using it for purchase. These rebates and points being earned can actually accumulate to allow you to purchase other needs such as fuel or airfare at a discounted price or possibly for free. But of course, always make sure that charging your card should be paid off within the same period.
Get and maintain one credit card. Two at most.
Getting a credit card sometimes becomes out of hand because of the different offers that each bank and credit card issuer attaches to the card. Some people often get a card for the promotional offer it contains rather than for how it should be used. Because of this, those who have more than two cards often end up accumulating debt for each card and ends up with a cumulative debt that is quite hard to manage. Get one card. Two with a different bank network to make sure you have a back-up in case the other one doesn’t work.
Use the installment feature.
Most cards contain an installment feature for high value purchases. Use them instead of rolling over your credit as it will be a lot cheaper in the long run. Rolling over your credit is never good and having the option to put it in installment is the best course of action you can take for high value purchases.
When you have that bright idea that you think would be great in business, it’s not always the only thing you need to get started. Most of the time, starting up or running a good business requires fuel to keep it going especially at times that operations is slow. The great fuel that runs a business is funding and one good way to get funding is by applying for a business loan. It is not always that a business loan is the only option to get funding. But if this is your option, then here are a few tips you can use before applying for one.
Prepare yourself and your business in applying for a loan.
Now a business loan is one of the loans that undergo a meticulous process. It requires a lot of documentation that would support the loan. Remember that it takes time to process and prepare a loan especially if the loan is high in value. Make sure you prepare yourself and your business ahead of time so that you don’t delay on your objectives.
Be sure you have an emergency fund before making your loan.
This is critical. Most business owners fail to make sure that there is an emergency fund prior to making a loan. The emergency fund can serve as your source for business loan payments when income is not going well. This will help you fuel your operations when business is not earning as much on a certain period. When a business avails of a business loan where they lack or have insufficient savings, they often have no other recourse but to close down when everything is not going well. Sometimes they go for another loan which only creates a bigger debt that needs to be repaid.
Always go back to your financial plan and project feasibility.
Remember that your business plan is your guide for any concerns that you come across while operating your business? It holds true even during execution of your objectives from your business loan. Looking and going back to your plans will help you make decisions and act based on your goals. This will allow you to minimize the risk involved in operating your business.
When you decide to go all out for your business, whether it is a startup or an existing business, you will definitely need funding that will help you execute actions for your business. These funding may come from equity investments where you will source investors who are interested to put money in the business in exchange for profit and possibly part ownership. Another source can be done by raising cash through business loans. But before you consider in getting a business loan, here are 3 things you may want to look into before making that decision.
Know your credit score.
Even if your business is the one that is putting up a loan, your credit score is the one that gets affected. Be mindful of paying your obligations on a timely, consistent and responsible manner as it will contribute to the proprietor’s credit score. When applying for a business loan, the bank or financing institution will still review your credit score and determine if you and your business are fit to be granted a business loan. In addition, the interest rate that may apply can be based on your credit score too.
Understand options from which you can get a business loan.
Getting a business loan can be done through an old fashioned way of applying through banks. Know what banks can offer and other financial institutions that can offer them. Other ways of getting a business loan is through the rise of financing institutions who grant loans. They do not act and operate like a bank. They grant loans at a higher interest rate but often process and grant loans at a shorter period.
Identify a goal.
It is important that you identify a goal for your business loan. The goal must be in line with the business plan that you have initially drafted to ensure that your business is operating according to your goals and plans that you have initially set up. If your goals are slowly moving away from your original objectives, it would be best to rewrite your business plan to ensure that your future actions and decisions are in line with what you want your business to achieve.