How to Build Corporate Credit Fast

Anyone with any business experience at all will tell you the hardest part of getting a business going is creating, managing, and sustaining cash flow. Businesses fail when their bank accounts go to zero, period. You might have the best product in the world, but if you can’t keep your cash ahead of your expenses, you’re done. That’s why it’s so crucial to build corporate credit as fast as possible. By the end of this article you should have a little better idea of how to establish a high corporate credit rating.

The first reality of becoming a creditworthy corporation is that older corporations have a much easier time getting banks to lend them money than younger entities. That’s pretty logical – if you’ve been in business less than a year that’s a pretty big indicator to a lending institution that you may not be around for the long term to keep payments on business loans current. So, this is the part of building corporate credit that really isn’t possible to short-cut…unless you’ve got plenty of cash on hand. One thing you can do is purchase what’s called an aged or “shelf” corporation that belonged to another business, and therefore has been on record with the state for longer. Essentially you can buy the age of the previous business. The tough part is it takes cash, and if you had a lot of cash you wouldn’t be looking for fast ways to build up your corporate credit rating would you?

The best advice I can give you when it comes to getting your business’s credit rating up is to begin immediately and start applying for small lines of credit under your corporate name, as opposed to your personal name. If you can get even one small credit card in the your corporation’s name you stand a good chance of getting bigger loans within a few months, or possibly a year. Another benefit of applying for lines of credit in your corporate name is that your own negative personal credit rating (if it is, in fact, a negative rating) won’t slow your ability to get your corporate credit score higher.

Visa, American Express, Chase, and Bank of America are just a few of the major lending institutions who are eager to have new business owners establish their corporate credit history with small business credit cards. Check out their corporate websites to learn more about their individual offerings.

In an ideal world you’ll never need to borrow money as you build up your small business. Hopefully you’ll be able to pay yourself and buy some growth just using the business’s own earnings. Unfortunately most businesses hit several major stumbling blocks during their first couple of years, having credit lines might be the thing that saves your business from failing before it ever really starts.

Bad Credit Unsecured Credit Cards

With the state of the economy today, many people have had problems keeping up with bills, and have created a bad credit rating for themselves. They may have made purchases while economical conditions were better, not knowing that they might lose their jobs or be receiving less income for some other reason. It seems that once a person is late in making a payment, late fees are added, interest increases, and the debt just snowballs, making it even harder to pay on time the next month. If this has happened to you, don’t despair! It is possible to build up your credit again after a bad experience, using tools like unsecured credit cards for bad credit.

If you would like to have a credit card, but have been unable to obtain one because of your credit history, there may be a solution. You may have thought there was no way anyone would consider approving a credit card application that you might submit, because of your bad credit. Don’t give up though. Apply for a bad credit unsecured credit card. You may be surprised to find that your application will be accepted and you will receive a credit card. With the new credit card rules in effect now, even if you have been turned down before, apply again and you may be approved this time.

There are many companies competing for your business and you should be able to find one that will accept your application. After you get your new card in the mail, be sure to use it wisely. If possible, use it to purchase only necessary items so that your bill will not be too difficult to pay. Try to pay more than the required minimum payment each month, if at all possible. In that way, you will be able to improve your credit rating. If you keep making payments on time, at least the minimum required each month, you will eventually improve your credit rating.

A credit card is such a convenient financial tool. Whether you want to take a vacation, and would feel safer without carrying enough cash to get you through the trip, want to purchase something on line, or need to buy groceries, gasoline or medicine on Tuesday and won’t get paid until Friday, having a credit card is very helpful. After you have had a credit card for a while, you won’t want to be without one, because of the convenience it offers.

Small Business Loans with Bad Credit

Many small business owners find that attempting to acquire a business loan with bad credit can be rather difficult. After getting a start up loan a new business tends to lose money in the first year, causing late payments that slide down their credit rating. Searching for more loans for expansion and maintenance becomes a complicated task. Some entreprenuers are able to borrow from friends and family, but many do not have that luxury.

Bad credit can keep a small business from getting a loan from a major bank, but may not be such a hindrance when approaching a small loan company or a private lender. Funding amounts through one of these mediums may be somewhat limited, and a bad credit score tends to cause high interest rates, so anyone seeking a loan in this circumstance will need to plan accordingly and be prepared for these pitfalls.

Another alternative for the small business owner would be what is called a business cash advance. The requirements to be approved for one of these are not as strict as they are for a loan. When trying for a business cash advance, the applicant must be able to prove that it accepts credit card payments and meets a small minimum requirement for how much is processed in credit card sales each month. Repayments are done on an automated basis according to how you do business, and there is no collateral or personal guarantee required to obtain a cash advance. Similar to a payday loan for an individual, a small business with bad credit may find this to be the most feasible option when looking for a loan of sorts to make an expansion.It is important when running a small business to keep your personal credit score separate from your business credit score. Using the business’s tax ID number to acquire credit, often starting with a business credit card and using it responsibly, will allow a small business to be able to acquire a loan more easily even if the owner has a low score on their personal credit report.

Even with bad credit, there are a few loan options out there for a small business. The most important thing is thorough research and a careful comparison of the most likely alternatives. And, of course, responsible use of any new loan is vital to helping rebuild credit for a brighter future.

Low Interest Payday Loans for Fast Cash

Payday loan companies have been in business for many years and have helped scores of people with what are dubbed as ‘low interest payday loans’ These short-term loans can be used when unexpected expenses occur, between paydays. A typical payday loan company will require a personal check to be written to them or a debit to be authorized for the amount borrowed plus a flat fee. The check will be deposited on the agreed upon date, which is usually 7-14 days later. However, financial experts agree that payday loans should be avoided at all cost. They also say that low interest payday loans do not exist; it is an oxymoron. Unless, of course, you borrow from a friend or family member!

Payday loan companies have been under a great deal of scrutiny due to their high interest rates and marketing tactics. Recent advertisements have shown customers that appear to be happily receiving low interest payday loans for a weekend getaway or vacation rather than emergency situations. However, when the flat fees are shown as an annual percentage rate (APR), the low interest payday loans are actually loans with APR’s that can reach 1300% or more. Ironically, the shorter the length of the loan, the higher the APR. Payday loan companies have long been accused of targeting the working poor. This is a group of hard-working individuals, that live paycheck to paycheck. When something unexpected occurs, they often go to a payday loan company for a temporary reprieve.

While the payday loan companies stress that the loans are short-term, they offer an extension to a customer who is unable to pay the loan in full on the due date. To extend the loan, the customer need only pay the interest. The principal is held over until the next payday when the principal plus the interest will again be due. For example, a $300 loan received may have a flat fee of $75. The total amount of $375 would be payable in 7-14 days. If the $375 cannot be repaid, a payment of the $75 flat fee will extend the loan for another 7-14 days at which time $375 will again be due. Thus, begins the cycle that can become an extremely expensive series of transactions with companies that market low interest payday loans.

Unsecured Credit Cards for Bad Credit – Do They Exist?

Few individuals realize how important maintaining an excellent credit rating is until it is simply too late. Consumers can fall into the bad credit category for a variety of different reasons, but what’s important is that it is entirely possible to start new relationships with lenders and rebuild one’s history in the process. Revolving lines are perhaps the most difficult to obtain, but there are companies that offer unsecured credit cards for bad credit individuals. There are several things a wise consumer can do to increase the chance of being approved for such an account.

An individual should be well aware of any negative items that are present on their credit report. There are many cases in which mistakes have severely impacted a person’s credit score. If any errors are found in any part of the credit history, they can usually be cleared up fairly easily by disputing the incorrect information with each of the three credit bureaus. It may take awhile to correct such information, so it is strongly advised to repair any problems as quickly as possible and definitely before applying for any new accounts.

Many consumers have excellent pay histories on bills such as rent and utilities. However, contrary to popular belief these accounts do not report to the credit bureaus unless there have been severe delinquencies. Individuals can request a letter of reference from their landlords or their utility companies and this letter should include a brief summary of the pay history. A letter of reference normally must be requested in person, but they typically are provided free of charge. Being able to show a good pay history on regular monthly bills can help a person illustrate their reliability and responsibility.

Honesty is highly regarded by most companies and it is imperative that any applications are filled out truthfully. Individuals that exaggerate income or alter employment history are not only less likely to be approved, but they also could face criminal charges if caught. There often is an opportunity to explain past due balances and previous delinquencies, and a person should take full advantage of the chance to build their case.

There are plenty of lenders who offer bad credit unsecured credit cards, but there is a chance that a consumer will still have a difficult time securing such an account. An individual has a much better chance of being approved if they follow the above best practices. If you find you’re not able to get the credit card you want, other financing – like instant decision unsecured personal loans – may be your only option. Credit cards are not inherently evil and can be a valuable tool for daily money management and financial planning. However, a person should be well aware of their spending habits and level of responsibility. There are many companies willing to give second chances, but very few will offer third chances.

Low Interest Rate Personal Loans: Short-Term Help for a More Secure Future

With today’s economy causing job losses and cut hours, it can be difficult to keep abreast of financial obligations. Mounting credit card debt and missed bill payments can be a slippery financial slope. Even for those of us able to pay our bills, replacing an old sofa, having necessary automobile repairs done or taking that dream vacation can become unattainable goals. One way to acquire some ready cash is to apply for a low interest rate personal loan.

A low interest rate personal loan can also be used to consolidate debt, relieving the worry of juggling multiple payments. Using a credit card may be a tempting alternative, but the interest rates are customarily higher. Teaser interest rates offered by credit card companies often end after a trial period, leaving cardholders with a large balance and a high interest rate.

Low interest rate personal loans are unsecured loans. A secured loan is one for which the borrower has put up collateral such as a house or a vehicle. An unsecured loan is one for which there is no collateral. Lenders are gambling that the borrower will pay back the loan based on their financial history. If a loan is defaulted, the lender has nothing.

Unsecured loans are approved under rather specific conditions. An excellent credit rating will determine not only whether the loan is approved, but also the interest rate of the loan. Lenders will look at the borrower’s payment history, employment record and income. Because low interest rate personal loans are unsecured, they tend to be of smaller amounts, usually only a few thousand dollars – in other words, $25000 personal loans are going to be hard to come by. Low interest personal loans can be recourse for people who do not own a house or a vehicle valuable enough to be considered collateral.

If a person has bad credit, there are several online lenders who claim to approve loans for anyone. Online lenders should be thoroughly researched and their terms carefully evaluated. Caution should be exercised when borrowing from a lender not affiliated with an established institution. Hidden fees and high interest rates can be ugly surprises for the unwary. A safer course is to improve a bad credit rating and apply at a credit union or bank. Choosing an institution familiar with you and your payment habits can help your chances for approval.

Low Interest Mortgage Loans

Mortgage interest rates are mostly determined by two things: the free market and the Fed. That’s pretty common knowledge, but people seeking low interest mortgage loans should be educated about how interest rates can fluctuate in order to time their home closing or their refinance as well as possible. Getting this right could make a difference of tens of thousands of dollars in interest payments over a 30 year period.

So how does the Fed push rates around? It can get pretty complicated, but the Fed is in charge of the federal funds rate. Now, the federal funds rate is the interest rate banks can charge each other if they’re lending money to each other overnight to stay within their federally required cash reserves. The Fed determines that rate, and the banks use it to set rates on the money they lend you and me for things like mortgages, cars, and credit cards. Basically, when the Fed lowers the Federal Funds rate by, say, .75%, there will be an equal drop in things like the Prime interest rate, around which many loan rates is built.

So why does the Fed lower the Federal Funds rate. There are a lot of reasons, but the one mostly commonly seen lately is that the economy is slow, and the government tries to stimulate it so banks will start lending to each other, to prospective home owners, business owners, etc. The idea being that more money will start moving through the economy, which improves the attitude of the public and gets things going in the right direction.

So for those of you looking  to get a mortgage loan with a low interest rate, you should keep track of the financial news – when people start to get scared about the economy, and the Fed wants to improve the outlook, low rates are probably on their way.

Now just because rates are low doesn’t mean you’ll get a low rate yourself. Everything I just talked about takes for granted the fact that you’ll have to be a well-qualified applicant to land a low interest mortgage loan. That means a credit score creeping over 700, having your other debt payments as low as possible (so as not to tip your debt to income ratio past allowed limits), verifiable income, and last but not least – a nice big down payment.

Getting the lowest possible interest rate mortgage loan is a matter of good preparation and good timing. You can’t do much to control the market, but you can control yourself. I heard a great quote once: “Opportunity meets you at the level of your own preparation.” If you’re prepared, you’ll be ready to capitalize.

Poor Credit Unsecured Loans – The Most Common Variety

I think I can offer people out there with bad credit some hope when it comes to getting poor credit unsecured loans. You might be hunting for the loan you need, worried that you won’t be able to get qualified because you’ve really hurt your credit during the last few years.

The reality is that most poor credit unsecured loans are a type of payday loan, and those don’t require any credit at all. Everything I’ve read and researched lately tells me that these lenders who give unsecured poor credit loans are only looking for a few key criteria:

a. Are you employed full-time? Or at least do you have income in excess of $1,000 to $1,500 per month? I’ve found that these lenders aren’t typically concerned with where the money comes from, whether it be income from employment, unemployment, or even social security income. They just don’t want to lend you the money if you don’t have an obvious means of paying it back.

b. Do you have an open bank account, and does the bank allow direct deposits and automatic withdrawals? This is partly an insurance policy for the lender, and partly for convenience in their processes. Many of these lenders operate on the internet, and they don’t want to have to be dealing with paper checks and snail mail, etc. Once you qualify they want to send you the money straight away. That’s why they’re able to approve you at 3pm one day and have the money in your account the following morning.

They need the direct withdrawal system in place so they can automatically deduct your payments from your account without having to invoice you or send you a statement via snail mail. They will email you a statement after they’ve made the withdrawal, but it’s just standard practice to set up an auto pay system to pay these loans back. That’s really in your best interest as well.

If you can meet these simple qualifications, you’re really not going to have a problem getting an unsecured loan with poor credit. Just be sure to use them responsibly and keep enough money in your account to keep the payments current and get the loan paid back on time with no extensions or renewals. That’s where they really get you.

No Credit Check Personal Loans with Options

Personal loans…known by many names, used by millions of people, and much-maligned by the rest of the financial world. These loans get a bad rap from almost everybody, except the people using them. What some don’t realize is that not every personal loan is a payday loan. Borrowers actually have some options when it comes to choosing no credit check personal loans. You’ve got everything from signature loans to a $5000 loan no credit check.

One alternative is the signature loan. It carries some similarities to the payday loan, but most signature loans offer more options and flexibility. I even found one loan provider who runs a program they call ‘signature loans on the honor system.’ It’s a very interesting system, and it’s based on the fact that the lender does take the borrower through an approval process designed to make sure the borrower can be trusted. If the borrower gets approved, the lender actually removes some of the requirements that are nearly universal with payday loans. Specifically with these kinds of loans the borrower doesn’t have to authorize the lender to automatically withdraw payments without notice. The lender sends the borrower a statement that says payment is due, and then the borrower authorizes the withdrawal. Seems much more respectful to me really, and gives the borrower the opportunity to show their ability to manage their own finances.

You might be wondering what kind of approval process is involved; it seems like this kind of loan would have to involve them pulling your credit, but it actually does seem to be a personal loan with no credit check. What they look for in a loan applicant is the ability to prove they’re gainfully employed, or at least earning income through some source, even unemployment or disability income. You do have to maintain an active bank account. As part of the application process the lender may also want to do some checking to see if you have other outstanding loans, and they may even call to visit with you to make sure they trust your willingness to repay the debt.

To me, this kind of no credit check personal loan seems a really good alternative to the traditional payday loan. They’ll let you borrow up to $800, and if you have your application in by a certain time of day they’ll have the money in your account by the following morning.

So, if you have no credit and you need a personal loan, give this kind of service a look. As always, borrow intelligently, keeping your long term financial goals in mind. You don’t want to be searching for this kind of loan once a month, or even once a year if you can possibly help it.

Bad Credit Payday Loans

People hear the term ‘bad credit payday loans’ so often, but I don’t think the average person really understands the payday loan industry. Yes, it is kind of the wild west of lending, but there are regulations and limits in place to protect the borrowers, who do at times seem to need protection from themselves. I want to discuss certain aspects of payday loans so you have a better idea of what they are, and what they are not.

So what exactly is a payday loan?

It’s a short term cash loan from direct lenders to borrowers who need to borrow against their next paycheck. The loans usually vary in size from about $100 to a maximum of $1,500.

How do payday lenders make their money?

Payday loan providers make their money off the comparatively high interest and fees they charge on these short term loans. Fees usually range from $10 per $100 borrowed to $30 per $100 borrowed. While there isn’t a nominal interest rate attached to the loans, there is an effective interest rate that stems from the fact that most lenders will let you extend the repayment period for another fee. This is actually where payday loans get their bad name.

Using a calculator on paydayloaninfo.org, I calculated that a loan that gets renewed eight times (the lower end of the average according to my research) will end up costing the borrower $180 to repay over a 16 week period. That’s an effective APR of 260%.

Are payday loans hard to qualify for?

Fortunately, and unfortunately, no. They’re very easy to qualify for. Nearly anyone with an active bank account into which the loan can be directly deposited can receive a payday loan, even with terrible credit. The only other requirement is a job. This is fortunate for those people that are really desperate for some cash, and unfortunate for those same people. Once you think about the fact that the average borrower renews or extends her loan eight to thirteen times, you realize how people can really ruin themselves with this kind of debt.

You should be extremely cautious if you have to borrow money this way. It might relieve the stress you’d feel for a few days, but it will magnify the stress you have in the weeks and months to come.

Bad Credit Mortgage Refinance Solutions

I suppose I could think of a few reasons a person would be trying to refinance their mortgage after they have bad credit, but I’d guess the biggest reason would generally be that they’re in over their heads and they’re trying to lower their payments.

If this is you – the seeker of the bad credit mortgage refinance – you need to have a few things clear before you start this process. You also need to have very realistic expectations about what the outcome could be.

If you’re looking to refinance because your payments are just too big and you’re starting to fall behind, working with your current lender seems like the wisest choice, but they’re often surprisingly stubborn or just plain unwilling to talk about restructuring your loan so you can keep your credit intact and also keep up on your payments. I knew of a family whose house payment was overwhelming them. When they contacted the bank to see if there were options that would help them avoid foreclosure, the bank said “just make whatever payments you can and we’ll get in touch with you.” They realized the bank wasn’t going to work with them, so they went ahead and just quit making their payments altogether. Sure, they get to skip a few mortgage payments while the bank is processing the foreclosure paperwork, but their credit is ruined.

I’d say it’s much wiser to walk away from that bank if they don’t want to work with you and do whatever you can to save what’s left of your fico score through a refinance mortgage with bad credit.

I’ve heard from people in this situation that it’s usually a good idea to try to work with a local lender when you want this kind of refi. They have a vested interest in the strength of the local real estate market, and they know you’re going to talk with your friends about whether they were willing to help you out or not. Having that kind of leverage will help you when it gets down to the nuts and bolts of whether you’ll qualify.

The first question they ask is going to be “why aren’t you working with your current lender to refinance the house?” I’d just be completely honest with them and say “We’re trying to save our credit and they don’t want to work with us. We need to find a lender who can figure something out with us so we can keep the house and still make our payments.” That kind of honest will actually go a long way.

Yes, you’re going to have to go through the standard underwriting and qualification process from there, and your missed payments are going to hurt you. But if you have some equity and enough income to handle the new payment, you just might be able to pull a bad credit refinance off.

No Credit Check Payday Loans

It just doesn’t make any sense to the average person who has no experience with the world of payday loans how these lenders can offer no credit check payday loans. The whole lending system hinges on people’s credit scores right? If we don’t check their credit we’re going to end up with billions of dollars in defaulted loans. Well, I suppose that’s what has happened with the mortgage industry, but payday loans are actually a different story.

If you look at the qualification process for a payday loan with no credit check, you realize these lenders have figured out what an applicant needs to bring to the table in order to be likely to repay. I did a little checking and found that the four most important things to a payday loan store are:

1. Whether the applicant’s income is set up on direct deposit to their bank. I don’t know if that’s just an indication of financial responsibility, or if the lender could actually  has you sign something that says they can garnish your direct deposit income in the event you don’t pay.

2. Whether you’ve held your current job for at least three months. This is interesting because they aren’t checking a credit score, but they are looking for some kind of stability in your life to feel more confident that you’ll pay back your loan.

3. A bank account in your name, which you’ve had open for at least three months. Again, I think they’re just looking for some stability and financial maturity here.

4. $1,000 per month minimum for your net income (which means after taxes). This goes purely to your ability to pay the loan back. Most payday loan operators won’t lend above $1,000, so they’re basically saying we would never lend someone more than one month’s earnings. And I’d guess in most cases they probably won’t even do that. Since $1,000 is the minimum required income, and $1,000 is the maximum available loan, you’re probably looking at more like 25% to 33% of net income as the maximum loan amount.

If you can meet these criteria, you can probably get the loan you want. I just hope you only need it once.

Qualifying for a Guaranteed Unsecured Personal Loan

The process for getting a guaranteed unsecured personal loan isn’t really all that complicated. It goes something like this:

1. Have a pulse (because almost anybody with a pulse can get one).

2. Be willing to pay high interest rates and high fees (how else are they going to protect their loan without securing it with collateral?).

3. Fill out a quick form online, in a payday loan store, or over the phone, giving all your relevant personal facts (including your social security number).

4. Show some proof of income.

5. Deposit the money in your bank account.

And that really is about it if you want a guaranteed loans for bad credit with no fee, which is a huge mouthful by the way.

Now, the real question is can you afford to be borrowing money like this, and what got you into this situation in the first place?

I know most of us think that your average seeker of unsecured loans no credit check is a semi-scummy low income type, but that’s a completely unfair generalization. I’m sure that every day everybody from soccer moms to surgeons find themselves at the counter of a payday loan operation asking for a short term loan just to get them through to their next paycheck.

What about credit score?

Usually, guaranteed loans for bad credit no fees are intended for people who’ve had some problems in their borrowing history, whether that means late payments, judgments, bankruptcy, or whatever. People with better credit typically have access to more traditional – more appealing – financing tools, like credit cards.

And it really all comes down to money management. If you’re so short on cash that you have to pay outrageous fees and interest rates, you need to go back over the last six months or so of your financial life and ask the question “What got me here?” Be honest with yourself so you can make sure this instant guaranteed personal loan is your last.

Home Equity Loans for People with Bad Credit

It’s often said that your home is your biggest investment and that it represents the largest part of your wealth. If that’s true, why is it so hard to get to the money? In fact the only way to access the ‘wealth’ in your home is to borrow it out through some kind of refinance. If you happen not to have the best credit, the only way you’re getting to that money is through a home equity loan for people with bad credit.

The question is going to be whether you qualify for such a loan. In other words, just how bad is your credit? The nice thing about bad credit home equity loans is your low FICO is less likely to affect you on this application than it would on something like a credit card. At least in this case your home collateralizes the debt, protecting the lender to an extent.

Still, your credit can only be so bad before lenders aren’t going to want to take the chance on you. I’d say if your credit score is below around 600 you’re going to find it very tough to find anyone willing to give one of these lines of credit.

But if you’re not in that situation you have a chance, and there will be two major factors in getting the HELOC you want. Number 1, they’re going to see if you have enough equity to keep your loan to value ratio (LTV) at acceptable levels. These days hardly any bank is going to want to lend past 80% LTV (which means if my home is worth $250,000 I can’t have a total loan balance of more than $200,000 – including my new equity line). And what your home is ‘worth’ can be very fuzzy. I don’t know about most homeowners, but I got a letter from the tax assessor this year saying that my home value has taken a big dive. You’ll have to go through a standard appraisal process, and if the equity line amount you want doesn’t fit inside your appraised value, too bad.

If you do happen to have enough equity in the house, the only other obstacle between you and a home equity loan for bad credit will be your income and your other debts. Stricter lending standards aren’t going to let you go past about 28% on your monthly payments to income ratio. So, take out a calculator and add it all up: your current mortgage payment, your credit card payments, car payment, student loan payments, and any other monthly debt service you might have. Then add the amount of the payment you’ll have if you add a bad credit home equity loan to the mix. If it gets past 28% I’m afraid you’re out of luck.

Home equity lines of credit aren’t something to be taken lightly. You have to ask yourself what you’re going to use the money for. Even if it’s a somewhat worth use, such as updating the house so it will sell more easily, I would advise caution. The home may still not sell, but that monthly payment will come due regardless.

Consolidating Private Student Loans

Every graduating college senior with any educational debt should know that consolidating their student loans is going to be one of the most important things they do after they leave school. No matter how small your student loans are you’ll find a major difference in your total repayment amount if you use a consolidation program to lower your long term interest rate even a couple of percentage points.

What many college seniors may not know is that there’s a big difference between consolidating private student loans and consolidating federal student loans. With federal student loans you’re guaranteed certain benefits by law – things like a fixed and unchanging interest rate, no fees, and an automatic rate reduction if you complete your consolidation during the six month grace period that starts when your full-time student status ends. Private student loans don’t carry any of these guarantees, and that makes them less appealing, which means they’ll have to work harder to convince you to give them your business.

Unfortunately, some private student loan consolidation companies resort to less than ethical marketing practices to get you to hurry up and complete their process. Here are some things to watch out for:

• direct mail pieces and/or websites that use very official looking seals and logos in an attempt to look like an official branch of the government
• gift cards or other bonus incentives designed to entice you to work with a company without having first checked out their credentials and without fully assessing the quality of their consolidation loans
• telemarketers or direct mail pieces that ask for personal information such as your student ID, your social security number, etc in order to ‘pre-qualify’ you. Never give out any such information without knowing very well the trustworthiness of the company you’re communicating with.

There are plenty of legitimate and credible business out there who can help you consolidate private student loans, but you need to be willing to go through a couple of months of due diligence to make sure you’re working with the best one for you. Investigate them thoroughly, and don’t forget to use resources like the Better Business Bureau, and the Consumer Protection Agency in your research.

Unsecured Loans with No Credit Check

I think there are times when a person gets a little stressed due to a personal cash shortage, and due to that stress starts to lose a little of their ability to reason. Such is the case with folks who are looking for unsecured loans with no credit check. Yes, I realize that between 2002 and 2007 (give or take) the entire lending world seems to have lost its mind and started throwing mortgage-sized amounts of money at anyone with a pulse. I think an unfortunate side effect has been that people who have absolutely no business borrowing money have gotten the idea that not only can they borrow money, they can do so without having the lender investigate their ability to repay and without providing the lender with a shred of security.

Folks, this just isn’t very reasonable. From the time you borrowed five bucks from your big brother to go to McDonald’s as kids you learned that a lender wants to have a reasonable expectation that he or she is going to be paid back. In your big brother’s case he happened to live with you and if you didn’t pay up he could thump you (or maybe just have your parents pay him back out of your allowance). In any case, lenders have to check your credit or have some form of security so they know that they’re probably going to be repaid. It’s common sense.

Now, just because I think it’s going to be very hard for you to get no credit check instant unsecured personal loans, doesn’t mean you can’t get any loan at all. You could very well get a secured loan with no credit check, where you actually give the lender some form of collateral they’d be able to sell if you happened to disappear forever with their money. You might also be able to find an unsecured loan with a credit check. After all, they don’t mind lending money without collateral as long as they can get a good look at your credit history and see that you have a track record of making your payments.

So, be reasonable. If you need to borrow some money, do so with the lender in mind as well. If they want to stay in business they need to be careful with their money, and that means either checking your credit or securing some collateral before giving you a loan.

Low Interest Rate Loans

Every tenth of a percentage point on a loan makes a big difference on the amount of interest you pay over the life of the loan. It’s worth the extra time and effort to dig until you can push that rate down as low as possible. Finding low interest rate loans can be hard work, but it’s work that pays pretty darn well. You have to stop thinking about just the avoidance of interest payments, and start thinking about the purchasing power and investing power of the money that stays in your pocket when you manage to find that lower rate. Here’s an illustration:

Let’s say I’m looking for a low interest rate mortgage loan. I need to borrow $250,000 on a 30 year fixed rate loan. My first opportunity is to get the loan at 6.5%. Those terms give me a mortgage payment of $1,580.17. By the time I pay the house off I will have sent the lender right around $319,000 in interest payments. We’ve all seen those numbers a hundred times, but it never ceases to amaze me.

Anyway, let’s say that instead of a 6.5% interest rate I manage to get a 6.25% rate. Now my payment is $1,529.39. So it saves me about $40 per month (lets my husband and I go out to dinner one extra time per month – not bad), but the big payoff is in the interest saved over the life of the loan. By the end of the term I will have paid around $304,000 in interest. $15,000 is a healthy chunk of money, and that’s why it always pays to look for a lower interest rate.

Okay, since we’re on the subject, we might as well talk about how to save even more money on interest on your home loan or any other loan you borrow. Add $100 per month to your payment. You’ll save $70,000 in interest and pay the house off in 25 years instead of 30. I know that’s not completely related to this article, but it’s always worth mentioning that a true ‘low interest loan’ is one that gets paid off early by a disciplined borrower.

Low Interest Car Loans

In a perfect world we would all pay cash for every car we bought. No financing, no payment, no interest, no additional debt. It’s not a perfect world though, is it? No, almost no one has $5,000 to $25,000 to buy a car they can count on, so they have to finance. The best advice I can offer (as obvious as it seems) is to look for low interest car loans.

First of all, there’s something you need to acknowledge before you ever go car shopping, test drive one you like, and fill out a loan application – car loans with low interest are reserved for people with good credit. I know that’s not what you want to hear, and it really can complicate (or severely delay) the purchase of your next ‘ride,’ but it’s a fact you can’t get around. If you want to get a really good rate on your car loan you’ll need to have a credit score in the neighborhood of 700 to 750.

And not only that. All types of lenders are tightening their qualification processes, which means your good credit alone won’t be enough. They’re also going to look carefully at your overall debt profile and decide whether another payment will be too much for your given level of income. If you can’t pass their ratios, it’s going to be no loan for you. And what are those ratios? Any conservative lender will not want your new payment to put your monthly payment to monthly income ratio higher than about 25%. Really aggressive lenders will still only be comfortable with about 33% payments to income ratio.

So here’s a plan for you to be ready to buy the car you want, and still get a good low rate car loan.

1. Get a free copy of your credit report and examine it carefully for two things: blemishes and mistakes. You need to do everything you can to clean up that report if you want a lender to give you a good interest rate. If there are mistakes on your credit report, write a letter to the credit agencies explaining the error.

2. Elimiate other debt. Set up a more strict montly budget for yourself, and make an aggressive plan to pay off credit cards, store credit, and other outstanding balances. Paying off debt will free up money for your new car payment (so your income to payment ratios look better), and it will also improve your credit score. Oh yeah, not to mention that it just feels great to have less debt!

3. Look for ways to increase your income. Ask for a raise, apply for a promotion, or think about starting a small side business. If you could add just an additional $500 per month to your income you’ll have more than enough to make the payment on your new car, and you’ll have the satisfaction of earning more money.

I really hope you’ll follow these steps for the next few months. They’ll make your overall financial situation much stronger, and they’ll make it ten times easier to get a low interest car loan.

No Credit Credit Cards

Like it or not, it’s hard for an adult to function easily in our society without access to some credit. Unless you can pay cash for absolutely everything (and who can?), you’re going to need the credit agencies to crank out reports every month that say you’ve been a good boy or girl when it comes to your use of debt tools.

This reality can be tough for young people trying to get the right start to building their credit. It’s the classic no job, no experience scenario right? You can’t get anyone to extend you credit unless you have some credit history, and you can’t build up your credit history unless someone will agree to give you some credit, any credit. No credit credit cards are probably the easiest door for a young person with no credit to walk through.

Credit card companies are some of the smartest, most patient, and most savvy marketers in the world. Yeah, people think they’re evil, but that’s a debate for a personal finance blog. Credit card providers have the good sense to form a relationship with a young person when they have no experience in the credit world, and kind of nurse them along as they develop themselves as earners and borrowers. My first credit card was given to me by Chase almost ten years ago with a limit of maybe $500. Now the limit on that card is over $8,000 and I have another Chase card with an equally big limit. And all because Chase was willing to give me a credit card with no credit at all.

How can they afford to do it? It’s pretty simple – they’re going to give you one of two kinds of credit cards. They’ll either offer you a secured credit card or a prepaid credit card. Different terms but they mean basically the same thing. In both cases you have to make a deposit equal to the amount of the credit line you’d like to be extended. If you can put in $300 that’s exactly how much credit you’ll have. You might be thinking “that makes no sense at all – why would I want a credit card if I have cash?” Because you need credit history, bucko. That’s why. After you form a relationship with the credit provider they’ll eventually be willing to give you unsecured credit cards, but you have to show them you’re not going to do anything stupid first.

Establishing your credit by using credit cards with no credit can be costly, though. Not only do you have to keep a deposit with the credit provider, they’re going to stick you with some fees to the tune of $50 to $100 per year. As you pay these fees just keep in mind that you’re opening the door to future important purchases – such as cars and homes – that will require you to have a solid credit rating.