arnest Thompson | First Capital

These are loans that are offered to people irrespective of their credit score. The credit score is used in determining the creditworthiness of a person. Individuals who have a good credit score can easily get loans from banks and other lending institutions. However, it is very difficult to get a home mortgage, car loan or credit if you have a poor credit score.

Bad credit loans have helped many people to put finds in their pockets. Anyone who is interested in applying a bad credit loan should understand the advantages and disadvantages associated with these loans.

Advantages

Borrowers are not worried about their credit history

This is one of the most interesting parts of bad credit loans. Lenders are not bothered at looking the credit reports of their clients or customers. Conventional lenders are known for turning borrowers down even without considering some important changes such as increases in income. This is different from lenders offering poor credit loans. In fact, these lenders are concerned about the future.

Quick loan approval

Sometimes it is very difficult to Getting a conventional loan. They can take a lot of time to get approved. The approval rate for bad credit loans is higher than that of conventional ones. Most of them have an approval rate of about 80 or 90 %.

Can help you in improving your credit

Having a bad credit score is one of the main factors that trouble people when getting loans. These loans can help you in getting positive information. This is the key to improving your credit report. Borrowers are advised to make timely payments to improve their credit score. By so doing, you will have a good chance of building a strong financial standing.

Borrowers can get large amounts of money

With this type of financial arrangement, a borrower can easily get a large amount of money in a short period. However, you should remember that such amounts have high interest rates.

Disadvantages

Borrowers pay high interest rates

These lenders are known for charging high interest loans on their loans. The high interest rates are mainly attributed to the high risks associated with unsecured loans.

There is a possibility of getting hooked up with bad lenders

Just like with the other loans, many scams are out there. This means that you should very careful when applying for these loans. Always make sure that you are dealing with reputable lenders.…

Credit Card Tips for College Students

23 January 2018

arnest Thompson

When you finally get to college, you achieve something big. You gain the power to shift the future. You no longer depend on your parents and other guardians for major life decisions. You have the power to make decisions regarding your finances, and you qualify for credit cards.

It can all be too exciting. Many college students end up making major mistakes about their finances. A recent survey of people over the age of forty struggling with debt noted the following disturbing fact. 58 percent of them said they were struggling because they learned bad habits with their first credit card while in college. Read the following credit card tips for college students to save your future now.

Know the easy credit traps

There are many easy credit traps. For example, when you get some suggestions telling you that you got to have a card, just look the other way. Anything like a freebie should also trigger your alert and cause you to look the other way. Furthermore, do not fall for the promise of canceling your credit card anytime. These are traps to avoid. They get you into the credit card debt cycle, and you realize there is no way of getting out easily. It is better to stay out from the start.

Ask questions before applying for a credit card

Always ask whether you need a credit card. You can manage your money decently without a credit card. Many banks have ATM cards that will act as debit cards. They will allow you to shop online. You only get to spend what you have with the debit card.

Ask yourself whether you can afford a credit card. Think about the hefty annual fees for the privilege of a card. You will be paying a monthly balance, and you will also be buying things on loan.

Another question to ask is where the credit expenditures will go. There should be no need for a credit card when you are not going to get any special order for your items. If you are always going to have the opportunity to pay cash or with a debit card, then there might be no need for getting a credit card.

Find out the credit you need

As a college student, you should know your income and the money you are willing to pay as interest. Remember that credit card interests grow very fast compared to common interests. You can tell how much credit you can afford by looking at the total interest in a year that you end up paying for the amount you overspend on the credit card. The maximum you can afford should automatically become your credit limit. Any more than this will take you straight to financial ruin. It will come fast and easy, but getting out will be a nightmare. You should not place yourself in a position where you borrow money to pay other debts.

Be the smart student and take hold of your credit card habits. If you own a credit card, pay the balance and put it aside, or renegotiate your fees and monthly or annual payment. Let the freebies not deceive you.…

How to Finance Your Business Effectively

14 January 2018

arnest Thompson

When we hear of the term ‘business,’ the very first thing that most of us think of is finances. Which is not a misinterpretation considering business is all about making profits. After having been a crucial and sensitive topic of discussion, business has emerged on top. While employment is also very important, it is good to have something to keep you busy on the side. However, it is not as easy to finance it as it may sometimes seem. This doesn’t mean we should take the back seat and be complacent. It’s time to dig deeper.

Have a reliable source of income

There is nothing as dangerous as running a business without a support system. A source of income is a guarantee that your business will never run dry. As a rule goes, spend money to make money. This is only possible when you are in the right trade. Plan your earnings very wisely in preparation for retirement.

It is so rewarding when you can see your plans finally taking shape. The only thing that’s left is to be consistent in all your financial ventures.

Identify trustworthy partners

As much as you are always better off when you mind your own business, you need help. The idea of putting heads together helps achieve more than you can imagine. This is a sensitive part of the business and must be treated with utmost precision. Avoid mixing business with pleasure as it is the ingredient that has seen most businesses collapse. Don’t work with friends or relatives unless they have potential. You can also consider them only when they have the same aspirations for business.

Avoid unnecessary expenditure

Keep in mind that once your business is on its feet, it should sustain itself. The profit you earn should be invested back into your business. Think about it; this will bring back twice or thrice as much. Unnecessary expenditure is defined when you pluck business money for entertainment purposes. Organizing yourself financially will see to it that you avoid this vice at all costs.

Maintain an inventory

Being focused requires you to be organized. This is only visible when you maintain an inventory. This is one way to ensure that you are keeping track of every penny. Sometimes it might not be easy to do this, but it all depends on your ability to discipline yourself. If you are handling your records directly, this is the only way to avoid unnecessary question marks. If someone else is handling it, ensure that you get a detailed report. After all, it is your right as the owner of the business.

Seek professional advice

When it comes to financing your business, you might get stuck at some point. This is the part where you should identify some viable sources to equip you. You will need all the advice you can get on how to finance your business. This can’t be too difficult because all the sources you need are close to you. The online platform plays the most crucial part in matters such as these. All the more reason for you to take advantage of it and learn as much as you can.…

First Capital

First In The Field Of Finance

Author: arnest Thompson

Pros and Cons of Bad Credit Loans