How financially stable are you?

The only way to keep yourself from borrowing money from lending institution is to set up a system by which you can make yourself and your family financially stable. This is perhaps where you say “this is easier said than done” everything in life is never easy and keeping yourself financially stable is really hard but not impossible. All you have to do is a lot of discipline and having a good set of rules in handling your income and expenses. People who have lots of money don’t mean that they can easily make money. It is how they manage and control their funds that make them financially stable. The following are things that we can learn from people with stable finances.

 

Don’t Spend on Things that you don’t need

 

People who are financially disciplined do not spend impulsively. When we have extra money there is always something that will urge us to spend. This is something that you should avoid. Instead of spending your extra cash, sue it to put up a savings account. Teaching yourself to control the urge of spending impulsively is the first step to financial stability.

 

Know When to Save Money

 

When you have extra cash, save instead of spending it. Financially stable people know the secret of spending and this is simply to spend less than what you earn. Learn to spend on important and necessary things only and you will surely end up with financial surpluses.

 

Learn to Budget Effectively

 

People whose finances are stable are wizards in tracking what they spend. They know how to track and budget their income efficiently. To track and budget expenses will help find ways and means to cut down on some expense leaving you with some surplus to put aside.

They Pay Their Liabilities on Time

 

Financially stable people pay their liabilities on time. This will prevent the buildup of debt and gives the opportunity for the individual to fully analyze where his finances are going. Build up of debt is the main reason why people end up with financial problems thus giving them no choice but to use their credit privileges.

Ways of Getting your Personal Loan Approved

If you are faced with a financial problem but do not need that much cash to resolve the same, your best bet is to apply for the lowest interest personal loan singapore. Personal loans are mostly unsecured thereby limiting the risk of BORROWING in the event of a default. However, if you plan to apply for unsecured personal loan, make sure that you have a good credit history and rating because this is the first thing that the low interest money lender would check. There are actually two major things that a lender would look at prior to processing your loan. The first is whether you have a good credit standing which to them is a guarantee you will make good on your loan. The other is your income. Traditional or alternative lender, it is common for both to follow some kind of protocol and loan guidelines prior to processing your loan.

 

The Importance of a Good Credit Rating

 

Your credit rating and history plays a big part on personal loan approval. It is a must therefore that you have proof of a good credit score. Since personal loan is unsecured, your credit status plays a big part on whether or not you get a loan. Even your income resources is secondary to lenders when applying for personal loan because to them it is only your credit score that will guarantee repayment of the debt. It is important therefore that you should have a very good credit history and standing to have a good chance of landing a loan. In the event that you are denied, there is another way of getting that loan and that is applying for a secured personal loan. Secured personal loan will require you to put up collaterals that are in the form of an asset (property, car, and/or any other form of asset that has a relatively high value) whose assessment should be at par or higher than the loan amount. This may be a better solution since putting up collateral will be advantageous to you in terms of interest that you will have to pay.

 

Understanding “No Credit Check” Personal Loan

There is on the credit market today a type of personal loan known “no credit check” loan. However this type of loan only has a maturity date of 15 to 30 days. This is easily accessible to people who are in immediate need of cash. The interest rates for this can go as high as four times the regular rate. There are three types of loan usually referred to “no credit check” loans and these are payday loan, Title loan and Personal installment loan. Payday loan normally requires the borrower to write a post dated check for the amount of the loan. The check amount contains the principle amount plus the fee (which is actually the interest). The maturity date is usually no longer than 30 days else the borrower will need to extend by filing for another payday loan. The repayment term is for the borrower to redeem the post dated check with cash or to allow the lender to just cash in the check or deposit it. Title loan on the other hand is a loan where the borrower need to put his car or any other titled assets as collateral. Title loans allow borrower to apply for a higher loan amount but should not be at par or more than the value of the collateral. Maturity date for this loan is also 30 days. If payment is not made within the said date there’s a good chance the borrower will lose the collateral he had placed on the loan. Personal online installment loan is a little more manageable because it allows you to pay the debt on a weekly or monthly basis. Your monthly amortization can be for the interest only and make a balloon payment at the end of the loan term.

 

Is this a Worthwhile Loan?

 

For those who are in dire need of cash, this may be his only recourse. There is only one advantage for this type of loan and that is you can easily get one at a moment’s notice. However, you should take into consideration the very high interest rate that you have to pay and the very limited time that you have to pay off the loan.

Knowing the Various Types of Personal Loans

People may be surprised to know that there are different types of personal loan that is being made available by most traditional and alternative MONEY LENDER. It is necessary you get to know some of these types from money lender review so you can correctly select the type of personal loan that would suit your financial needs. The following are a brief description of these different types of personal loan and perhaps after understanding the basic principle on how they work, you will be able to select the right option for you.

 

Convertible loans; Fixed Rate Loans & Installment loans

 

Convertible loans are more adapted to businesses because this type of loan gives the lender a different kind of payment option. Under the agreement the lender can convert the loan amount into equity into the borrower’s company. This means that they can be part owner of the business if they choose to convert the loan into equity. Fixed rate loans are loans whose interest rate will remain the same all throughout the life of the loan. This type is usually preferred by people who are purchasing properties. Installment loan on the other hand is when the borrowed money is required to be paid at regular intervals usually monthly and with a fixed amount of amortization.

 

Payday loan, Signature Loan & Single Payment Loans

 

Payday loan also known as cash advance loan is a short term loan usually provided by PAYDAY LENDER. The problem with this kind of loan is it charges a very high rate of interest. Signature loan on the other hand is a type of a loan whose only guarantee of payment is your signature. The lender however will only allow this kind of loan if your credit score is way above average. Also this type of loan demands a very high interest rate. Finally, we have the single payment loans. Also known as bridge or interim loan, this loan is short term and the usual demand for repayment is lump sum at the maturity date of the loan. The lump sum amount is the principle loan plus interest. A PAYDAY LOAN can also be considered as single payment loans.

Understanding Cash Flow Loans

If you are a small business entrepreneur, BORROWING money from traditional and alternative MONEY LENDER to assist the business cash flow is always a part of your operation. Some of the reason for business loan is for expansion, to pay off miscellaneous expenses, to pay additional inventory orders or to purchase or repair business equipment. For all of these purposes, a cash flow loan can be a suitable answer for your financial needs. Cash flow loan is an alternative loan system. They are not like the traditional loans offered by banking institutions. Bank loans approval are normally based on several factors such as your credit history and rating, amount of investment you’ve placed on the business, the collateral you can offer for the loan, and the ratio of your businesses income and expenses. Basically, these factors are used to determine your capability to pay back the loan. Cash flow loan was perceived to give borrowers a little more leeway when applying for a loan. The general difference is that cash flow loans have lesser factors that lenders use to determine the feasibility of your loan.

 

How Does Cash Flow Loan Work

 

As the term connotes, the main factor of the loan approval is the analysis of what your future sales would be like and the lender will make his decision based on the sales projection that you will present to them. The lender will of course also consider your businesses past sales performances. These lenders usually used some kind of software algorithms where they feed in all the necessary sales data and come up with projected future sales. If the result is a convincing factor, then in all probability, your loan will be approved.

 

`Repayment Terms

 

Repayment terms for this kind of loan usually vary. With some, the loan is paid back via the businesses percentage of the sales until the balance is paid off. Other requires the borrower to pay back the loan via installment within a pre-determined number of months or years, depending on the loan agreement. The only drawback (again) for this type of loan is the very high interest it incurs.