Having bad credit can limit a person's options when it comes to seeking financial assistance from banks and lenders. Many banks and commercial lending companies have very strict credit requirements and borrowers with unimpressive credit scores can easily be dismissed.
The good news is that there are lenders who are more forgiving and are willing to provide personal loans for borrowers with credit. While some lenders may judge credit worthiness based on a high credit score, bad credit personal loan lenders especially cater to the bad credit market. Thus, even though people with low credit score may have limited options, they can still have the opportunity to acquire personal loans and use them for various purposes.
Secured and Unsecured Bad Credit Personal Loans Personal loans for bad credit are categorized as either secured or unsecured. Just like regular loans, the difference between these two types of bad credit loans is the requirement. As the name implies, secured bad credit loans are guarantee by collateral. The collateral can be any valuable asset or property owned by the borrower. In the event that the borrower fails to continue with the repayment of the loan, the lender can use the collateral submitted as repayment for the debt. On the other hand, unsecured bad credit loans are guaranteed by any form of security. Truly, unsecured bad credit loan lenders take a greater risk in providing this type of financing to borrowers with questionable credit history. To make up for the risk, these lenders may impose higher rate of interest to ensure that their business will profit.
Should you take out a bad credit personal loan? If you need financial assistance but with bad credit you may consider applying for a bad credit personal loan. However, you need to be more cautious in evaluating your choices. Keep in mind that not all offers in the market are fair and legitimate.
Some lenders might take advantage of borrowers with bad credit by imposing excessive rates and hidden fees. Then there are also illegal lending companies who try to make money from unsuspecting consumers. These lenders do not comply with lending laws that govern your State and they do not have a license to operate.
Prepare to Apply for a Bad Credit Loan Even though you are applying for a bad credit personal loan, it is still recommended that you check your credit report before submitting your application. Why? Although lenders will not base their approval on your credit history, they will be calculating the interest rate based on how low your score is. Obviously, the lower your credit score is, the higher the interest rate of your loan is most likely to be.
Any improvement you can make on your personal credit score can make a big difference in the interest rate you will get. By checking your credit report in advance, you can have the chance to correct errors (if applicable) which could be pulling down your score. Checking your report will also enable you to evaluate your accounts so you can create an effective repayment plan.
Thursday, April 18, 2013
Wednesday, April 17, 2013
Debt Consolidation for Renters or Homeowners with Poor credit or No Equity
Debt consolidation reduction Programs
Debt consolidation reduction programs will require your entire high interest debts which you owe and consolidate them into one payment per month, with a lower rate of interest. Your monthly payment for your one loan should also be a substantially lower payment for you monthly. The issue for many consumers with this loan plan's that they can have to have collateral just like a home or other good assets to acquire the loan.
With collateral you can obtain a lower payment per month, but missing a payment just isn't an option. Should you miss a payment, plus you've got placed your property up as collateral, you take the chance of losing your home. Another problem with investing in this type of home loan is lots of people end up repeating their same bad habits and increases more credit card debt. This is their explanation hold the loan to settle, and new credit cards to cover. You have to be well disciplined with ourselves and not remove any more charge cards until your loan pays off entirely. If you can do that, a debt consolidation loan program having a lower interest may fit your situation.
Consumer credit counseling
Bankruptcy is on the minds of many people since they don't know very well what else to complete. They ought to seek the help of the credit guidance service to check if they can repair their credit. Professional counseling can instruct you on your particular financial situation.
Once you have established an association using a credit counselor you'll sit down and look at all of your income and debts. Your counselor will have to understand specifically what your credit card debt is, and the other debts your debt, so that you can set up an agenda which fits your life-style. All income getting into the house is going to be totaled up as well as your debts will probably be totaled to find out what usable income you might have to repay your creditors. Your counselor could probably speak to your creditors and acquire some of your financial troubles reduced or get you lower rates of interest on your debts.
Your counselor will set up a debt repayment plan and manage the master plan to suit your needs along with your creditors. You'll pay the counselor one monthly payment, as well as the counselor pays off your creditors. You will have payment plan you have to keep up with for 3 to 5 years, before your creditors are paid off in full. Professional credit counseling just isn't free each agency charges differently. Some possess a flat fee that you will pay while some use your first payments for their fees.
Debt settlement
Debts settlements companies will tell you to avoid paying your credit card issuers and pay right into a fund monthly until you have enough to repay one of the creditors. A counselor doing work for the debt settlement company will get hold of your creditors and acquire lower settlement agreements for your benefit. You in turn will give the debt settlement company every month. Funds will build up until one of the creditors need what exactly is inside your fund like a full payment of the debt. Your counselor will pay that creditor and you may still pay in to the fund to work off the next creditor. Payments to those companies differ from one company to the next as well as their fees could possibly get costly. One trouble with this kind of situation would be that the creditors can still give you bills, and require to the court for your full amount.
Debt consolidation reduction programs will require your entire high interest debts which you owe and consolidate them into one payment per month, with a lower rate of interest. Your monthly payment for your one loan should also be a substantially lower payment for you monthly. The issue for many consumers with this loan plan's that they can have to have collateral just like a home or other good assets to acquire the loan.
With collateral you can obtain a lower payment per month, but missing a payment just isn't an option. Should you miss a payment, plus you've got placed your property up as collateral, you take the chance of losing your home. Another problem with investing in this type of home loan is lots of people end up repeating their same bad habits and increases more credit card debt. This is their explanation hold the loan to settle, and new credit cards to cover. You have to be well disciplined with ourselves and not remove any more charge cards until your loan pays off entirely. If you can do that, a debt consolidation loan program having a lower interest may fit your situation.
Consumer credit counseling
Bankruptcy is on the minds of many people since they don't know very well what else to complete. They ought to seek the help of the credit guidance service to check if they can repair their credit. Professional counseling can instruct you on your particular financial situation.
Once you have established an association using a credit counselor you'll sit down and look at all of your income and debts. Your counselor will have to understand specifically what your credit card debt is, and the other debts your debt, so that you can set up an agenda which fits your life-style. All income getting into the house is going to be totaled up as well as your debts will probably be totaled to find out what usable income you might have to repay your creditors. Your counselor could probably speak to your creditors and acquire some of your financial troubles reduced or get you lower rates of interest on your debts.
Your counselor will set up a debt repayment plan and manage the master plan to suit your needs along with your creditors. You'll pay the counselor one monthly payment, as well as the counselor pays off your creditors. You will have payment plan you have to keep up with for 3 to 5 years, before your creditors are paid off in full. Professional credit counseling just isn't free each agency charges differently. Some possess a flat fee that you will pay while some use your first payments for their fees.
Debt settlement
Debts settlements companies will tell you to avoid paying your credit card issuers and pay right into a fund monthly until you have enough to repay one of the creditors. A counselor doing work for the debt settlement company will get hold of your creditors and acquire lower settlement agreements for your benefit. You in turn will give the debt settlement company every month. Funds will build up until one of the creditors need what exactly is inside your fund like a full payment of the debt. Your counselor will pay that creditor and you may still pay in to the fund to work off the next creditor. Payments to those companies differ from one company to the next as well as their fees could possibly get costly. One trouble with this kind of situation would be that the creditors can still give you bills, and require to the court for your full amount.
Monday, April 15, 2013
Cash Flows . Timing Is Everything When It Comes To Financing Business Cash Flow And Capital Management
Working Capital is an area of business that requires solutions that revolve around timing. Timing is everything when it comes to the fundamental problem of managing and solving the cash flow conundrum!Let's examine some of those solutions using the example of a company trying to grow... which is what it's all about is it not?!
This is when what we could call your ' cash flow cycle ' needs to be both understood... and addressed. That's because the concept of timing has just kicked in ... your have produced your goods or provided your services and a specific amount of time has lapsed as you now generate revenues via invoicing... and wait for payment. It's no secret that that whole cycle varies between each company and industry. But whether your cycle is 30 days or 120 days the effects of that timing require certain activities to be financed.
The timing around this cycle, as well as the solutions that your bring to bear makes or breaks your overall liquidity and solvency - aka ' Survival'!Example of the need to finance that cycle are should be quite clear - your firm must buy supplies or inventory, at the same time taking on payables. Wages and salaries must be covered and then you're in the waiting game when it comes to delivery and acceptance of your goods and services, as well as final payment from your clients based on your credit terms. It's therefore no secret to the business owner to see that using our example it can easily take those 30-120 days for a dollar to in effect flow through your company.
Again... it's ' timing'!When you look at your balance sheet you see that the ratios of current assets and liabilities have also changed dramatically. You're unfortunately less liquid and this can only be solved by financing the shortages you have carried. Of course your customer could pre pay you in advance for orders, or pay you ' cash on delivery ' but that's not the perfect world we dream about.Financing business cash flow is all about monetizing and managing your assets.
Solutions in Canada include:
Receivable financing
Commercial bank lines of credit
Asset based lines of credit
Sale lease backs
Tax credit monetization
Purchase Order and Supply Chain financing
Utilize one or a combination of solutions to manage the ' patterns' of financing that your business needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.
This is when what we could call your ' cash flow cycle ' needs to be both understood... and addressed. That's because the concept of timing has just kicked in ... your have produced your goods or provided your services and a specific amount of time has lapsed as you now generate revenues via invoicing... and wait for payment. It's no secret that that whole cycle varies between each company and industry. But whether your cycle is 30 days or 120 days the effects of that timing require certain activities to be financed.
The timing around this cycle, as well as the solutions that your bring to bear makes or breaks your overall liquidity and solvency - aka ' Survival'!Example of the need to finance that cycle are should be quite clear - your firm must buy supplies or inventory, at the same time taking on payables. Wages and salaries must be covered and then you're in the waiting game when it comes to delivery and acceptance of your goods and services, as well as final payment from your clients based on your credit terms. It's therefore no secret to the business owner to see that using our example it can easily take those 30-120 days for a dollar to in effect flow through your company.
Again... it's ' timing'!When you look at your balance sheet you see that the ratios of current assets and liabilities have also changed dramatically. You're unfortunately less liquid and this can only be solved by financing the shortages you have carried. Of course your customer could pre pay you in advance for orders, or pay you ' cash on delivery ' but that's not the perfect world we dream about.Financing business cash flow is all about monetizing and managing your assets.
Solutions in Canada include:
Receivable financing
Commercial bank lines of credit
Asset based lines of credit
Sale lease backs
Tax credit monetization
Purchase Order and Supply Chain financing
Utilize one or a combination of solutions to manage the ' patterns' of financing that your business needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.
Saturday, April 13, 2013
Why Are Online Degrees Still Subordinate To Classroom-based Learning?
Imagine you are sixteen again. Imagine you've just left school. Imagine you are thinking about whether you should go to university or start a career. Then imagine that you are living in the current economic environment.
At a time when fees for attending university are rising and accommodation costs are already the highest they've ever been, it comes as a surprise to find that university applications are only 8.7% down on last year. Consider this, along with the fact that there is b in outstanding federal student loans and a further b in outstanding provincial student loans and you start to understand that completing a degree is no longer a guarantee for future success. Indeed, in many ways, it could be the start of a downward spiral where debt obligations become overwhelming and, due to a miserable labor market, there is no guarantee that you will get a job after completing your degree.
Despite this, online courses still refuse to appeal to prospective students when they start contemplating whether to go to university. It seems that the options are either go to a campus-based university or get a job. Perhaps this is due to the fact that a recent survey carried out by the Society for Human Resource Management indicated that only 49% of HR staff felt that online courses were equally credible to degrees from traditional schools.
Could It Be Changing?
It should be noted that in the same survey HR staff indicated that online degrees were now viewed in a more favorable light than they were five years ago. This therefore suggests that there is a change underway, albeit, a very slow one. The main issue seems to be accreditation. If an online degree is accredited then it should be considered in the same light as a traditional degree, however, 45% of HR managers said that graduates with a traditional degree still have a better chance of being employed over someone possessing an online degree.
Choose Your Course Wisely
It has been argued that the course subject is central to gaining an online degree that has significant weight with employers. If a prospective student is considering a Bachelor of Psychology or a Bachelor of Criminal Justice degree, they may have more success than if they had completed a degree that would normally have a large practical element such as engineering or construction. Although it may be possible to study such degrees online many employers would still consider the graduate to be short of actual experience and would need time to get used to the working environment.
Demand From Employers
It would appear that the reason why online courses are still not being accepted as real degrees resides not so much in a lack of demand for them among those looking for a degree but among those who are forced to value potential job candidates. If there is no demand among the employers, then this filters through to individuals looking for the qualifications that will enable them to succeed in getting a job. This obviously includes the institution that the prospective job candidate attended.
It seems that until employers remove their focus on traditional degrees and embrace the new virtual educational environment, demand for online degrees is not going to outstrip traditional courses. This is despite online degrees being the preferred choice among prospective students and, in most cases, the best alternative for companies. Indeed, companies would be able to employ someone who is carrying out their studying part-time and would be willing to work for less until they are qualified. Someone would say that is for the benefit of all parties involved.
At a time when fees for attending university are rising and accommodation costs are already the highest they've ever been, it comes as a surprise to find that university applications are only 8.7% down on last year. Consider this, along with the fact that there is b in outstanding federal student loans and a further b in outstanding provincial student loans and you start to understand that completing a degree is no longer a guarantee for future success. Indeed, in many ways, it could be the start of a downward spiral where debt obligations become overwhelming and, due to a miserable labor market, there is no guarantee that you will get a job after completing your degree.
Despite this, online courses still refuse to appeal to prospective students when they start contemplating whether to go to university. It seems that the options are either go to a campus-based university or get a job. Perhaps this is due to the fact that a recent survey carried out by the Society for Human Resource Management indicated that only 49% of HR staff felt that online courses were equally credible to degrees from traditional schools.
Could It Be Changing?
It should be noted that in the same survey HR staff indicated that online degrees were now viewed in a more favorable light than they were five years ago. This therefore suggests that there is a change underway, albeit, a very slow one. The main issue seems to be accreditation. If an online degree is accredited then it should be considered in the same light as a traditional degree, however, 45% of HR managers said that graduates with a traditional degree still have a better chance of being employed over someone possessing an online degree.
Choose Your Course Wisely
It has been argued that the course subject is central to gaining an online degree that has significant weight with employers. If a prospective student is considering a Bachelor of Psychology or a Bachelor of Criminal Justice degree, they may have more success than if they had completed a degree that would normally have a large practical element such as engineering or construction. Although it may be possible to study such degrees online many employers would still consider the graduate to be short of actual experience and would need time to get used to the working environment.
Demand From Employers
It would appear that the reason why online courses are still not being accepted as real degrees resides not so much in a lack of demand for them among those looking for a degree but among those who are forced to value potential job candidates. If there is no demand among the employers, then this filters through to individuals looking for the qualifications that will enable them to succeed in getting a job. This obviously includes the institution that the prospective job candidate attended.
It seems that until employers remove their focus on traditional degrees and embrace the new virtual educational environment, demand for online degrees is not going to outstrip traditional courses. This is despite online degrees being the preferred choice among prospective students and, in most cases, the best alternative for companies. Indeed, companies would be able to employ someone who is carrying out their studying part-time and would be willing to work for less until they are qualified. Someone would say that is for the benefit of all parties involved.
Thursday, April 11, 2013
Choosing your First Home And Deciding A Home Loan
If you are ready to move out of your apartment, there is no time better than now. Beginning to search for your first home is an important step to having the ability to build better finances and to live in a place that is comfortable. If you are considering a new home, there are specific things that you will want to know before jumping in with both feet.
Before you even begin to look at homes, make sure that you conduct your own investigation. This will mean that you should find the going rates, how much other owners are paying every month, and what you can or can't afford. You will also want to see what types of houses are going and what they are going for. If you know the basics of what is available, it will be easier for you to get exactly what you want. You should also consider things such as your credit rating and your pay check. You don't want to walk into something that is over your head or start to look for something, only to find out that you won't be able to move in.
From here, it is all a matter of getting involved with the right people. One of the most important decisions that you can make is to find the right real estate agent. This will make a large difference in the type of deal that you get as well as what type of home and mortgage you end up with. Real estate agents have the ability to do investigations for you and find something that is best for you. You will also want to make sure that there are connections with home inspectors and the right lenders. Without the right people set in place, there will be problems with getting the best deal with your new home.
After you begin to look with your real estate agent, make sure that you begin to understand the terms that are being given to you. Loan terms, terms about the market, and other real estate jargon. will often times be spoken about. If you don't know what something is, look it up right away or ask. Getting into a first home is a large step from an apartment, making it important that you understand what you are getting into.
The process of finding a new home can be challenging and fun. Making sure that you open the front door instead of having to crawl through the back can help you to get exactly what you want. By learning the ropes from the very beginning, you can be certain to get what you want, only to move up from there.
Deciding on the home Loan To Get
It isn't always easy to decide which type of loan will benefit you the most. All of the possibilities that are opened to you are different and will provide you with various benefits. Before jumping into a loan, you want to make sure that you have evaluated your individual needs. The main idea behind a loan is to help you financially in more than one way.
The first consideration to make for a loan is by determining how long you plan to stay in a particular area. If you plan to move after a few years, you want your records from your loan to show that you have invested in the property. If this is your plan, then getting a loan that allows you to pay unlimited principle while you are there will help to show the benefits. If you want to stay for a longer term and pay off the home, then finding something like an interest first loan will work better. With any type of loan, timing is everything.
The second evaluation that you will need to make with the loan options available to you is with how much you are able to pay each month. If it is a larger amount, then you might want something that is fixed or more stable. At the same time, if you are not in a financial position to pay a lot now, but know you will later, you can get something that will increase by percentage rate over time. If you are in the situation where you expect increased income, you can also consider a balloon, which will have you pay a large amount during the closing of your home. Determining what is best for you and your financial situation is important when deciding on a loan.
Of course, a lender will always be available to help you with your concerns and to answer your questions. Keeping yourself open to options, understanding your financial positioning and evaluating your individual needs can help you to invest your money the right way. By doing this, you can build your own investments into larger profits over a period of time.
Before you even begin to look at homes, make sure that you conduct your own investigation. This will mean that you should find the going rates, how much other owners are paying every month, and what you can or can't afford. You will also want to see what types of houses are going and what they are going for. If you know the basics of what is available, it will be easier for you to get exactly what you want. You should also consider things such as your credit rating and your pay check. You don't want to walk into something that is over your head or start to look for something, only to find out that you won't be able to move in.
From here, it is all a matter of getting involved with the right people. One of the most important decisions that you can make is to find the right real estate agent. This will make a large difference in the type of deal that you get as well as what type of home and mortgage you end up with. Real estate agents have the ability to do investigations for you and find something that is best for you. You will also want to make sure that there are connections with home inspectors and the right lenders. Without the right people set in place, there will be problems with getting the best deal with your new home.
After you begin to look with your real estate agent, make sure that you begin to understand the terms that are being given to you. Loan terms, terms about the market, and other real estate jargon. will often times be spoken about. If you don't know what something is, look it up right away or ask. Getting into a first home is a large step from an apartment, making it important that you understand what you are getting into.
The process of finding a new home can be challenging and fun. Making sure that you open the front door instead of having to crawl through the back can help you to get exactly what you want. By learning the ropes from the very beginning, you can be certain to get what you want, only to move up from there.
Deciding on the home Loan To Get
It isn't always easy to decide which type of loan will benefit you the most. All of the possibilities that are opened to you are different and will provide you with various benefits. Before jumping into a loan, you want to make sure that you have evaluated your individual needs. The main idea behind a loan is to help you financially in more than one way.
The first consideration to make for a loan is by determining how long you plan to stay in a particular area. If you plan to move after a few years, you want your records from your loan to show that you have invested in the property. If this is your plan, then getting a loan that allows you to pay unlimited principle while you are there will help to show the benefits. If you want to stay for a longer term and pay off the home, then finding something like an interest first loan will work better. With any type of loan, timing is everything.
The second evaluation that you will need to make with the loan options available to you is with how much you are able to pay each month. If it is a larger amount, then you might want something that is fixed or more stable. At the same time, if you are not in a financial position to pay a lot now, but know you will later, you can get something that will increase by percentage rate over time. If you are in the situation where you expect increased income, you can also consider a balloon, which will have you pay a large amount during the closing of your home. Determining what is best for you and your financial situation is important when deciding on a loan.
Of course, a lender will always be available to help you with your concerns and to answer your questions. Keeping yourself open to options, understanding your financial positioning and evaluating your individual needs can help you to invest your money the right way. By doing this, you can build your own investments into larger profits over a period of time.
Sunday, April 7, 2013
$50,000 Unsecured Personal Loan For Bad Credit Borrowers: Secrets Of Approval
Bad credit borrowers often rule out their chances of getting large loans based on their expectation that lenders have too strict a lending policy to grant them. It is a fair assessment, especially when no collateral is offered to improve matters. But in fact, a ,000 unsecured personal loan, for bad credit borrowers, is possible.
Lenders are actually quite straightforward in their policies, and always look for a set of indicators before approving or rejecting an application. It is all about ticking the right boxes, and once they are, then securing large loan approval is the result. Satisfying the set criteria, convinces lenders to give the green light.
Of course, this is not to say that lending policies do not exist, and while approving large unsecured personal loans is always possible, the risks involved mean that one the strongest applications can be expected to reap success.
The Significance of the Credit Score
The idea that a credit score will kill a loan application is not accurate. There are too many other aspects with greater influence over the process. What is really important is the affordability of the loan, and how easily the borrower can repay it. A ,000 unsecured personal loan for bad credit borrowers is not affordable to everyone with low credit scores.
The credit score might not be the key behind approval, but it has an influence over the interest rate charged on the loan. What this means is that securing large loan approval can be hindered if the interest charged results in high monthly repayments.
Very poor scores (say, 450) ensures that the interest is very high, making the loan too expensive. So, proving the income is large enough to cover repayments on the unsecured personal loan can be the difference between approval and rejection.
Check the Loan Term
Even when the loan repayments are high, it is possible to secure approval. By lengthening the loan term, the repayments are lowered and therefore making the loan affordable. This is good to know when seeking a large loan, like a ,000 unsecured personal loan for bad credit.
Simply explained, the longer the loan term, the more months are divided into the loan principal - for example, 5 years means 60 monthly repayments, but 10 years means 120 repayments. This means a smaller share is to be repaid each month. Thus, securing large loan approval is made easier.
Of course, this also means that the amount of interest paid overall is increased by quite a bit, but when getting the unsecured personal loan is the core point, then this kind of compromise is acceptable.
Choose the Lender Carefully
When seeking a ,000 unsecured personal loan for bad credit management, it is as important to choose the right lender as it is to choose the right loan terms. In fact, both are closely linked, with the terms set by lenders and which may include hidden charges and penalties. So, reading the small print is essential.
Online lenders are the best option, since they are experts in lending to bad credit borrowers. That niche is risky but they charge more competitive interest rates and offer more flexible repayment conditions. What is more, securing large loan approval is much more likely with online lenders.
But be sure to check the reputation or any unfamiliar lenders before taking on an unsecured personal loan with them. So visit the BBB website, or the Verify1st site to see how trustworthy they are.
Lenders are actually quite straightforward in their policies, and always look for a set of indicators before approving or rejecting an application. It is all about ticking the right boxes, and once they are, then securing large loan approval is the result. Satisfying the set criteria, convinces lenders to give the green light.
Of course, this is not to say that lending policies do not exist, and while approving large unsecured personal loans is always possible, the risks involved mean that one the strongest applications can be expected to reap success.
The Significance of the Credit Score
The idea that a credit score will kill a loan application is not accurate. There are too many other aspects with greater influence over the process. What is really important is the affordability of the loan, and how easily the borrower can repay it. A ,000 unsecured personal loan for bad credit borrowers is not affordable to everyone with low credit scores.
The credit score might not be the key behind approval, but it has an influence over the interest rate charged on the loan. What this means is that securing large loan approval can be hindered if the interest charged results in high monthly repayments.
Very poor scores (say, 450) ensures that the interest is very high, making the loan too expensive. So, proving the income is large enough to cover repayments on the unsecured personal loan can be the difference between approval and rejection.
Check the Loan Term
Even when the loan repayments are high, it is possible to secure approval. By lengthening the loan term, the repayments are lowered and therefore making the loan affordable. This is good to know when seeking a large loan, like a ,000 unsecured personal loan for bad credit.
Simply explained, the longer the loan term, the more months are divided into the loan principal - for example, 5 years means 60 monthly repayments, but 10 years means 120 repayments. This means a smaller share is to be repaid each month. Thus, securing large loan approval is made easier.
Of course, this also means that the amount of interest paid overall is increased by quite a bit, but when getting the unsecured personal loan is the core point, then this kind of compromise is acceptable.
Choose the Lender Carefully
When seeking a ,000 unsecured personal loan for bad credit management, it is as important to choose the right lender as it is to choose the right loan terms. In fact, both are closely linked, with the terms set by lenders and which may include hidden charges and penalties. So, reading the small print is essential.
Online lenders are the best option, since they are experts in lending to bad credit borrowers. That niche is risky but they charge more competitive interest rates and offer more flexible repayment conditions. What is more, securing large loan approval is much more likely with online lenders.
But be sure to check the reputation or any unfamiliar lenders before taking on an unsecured personal loan with them. So visit the BBB website, or the Verify1st site to see how trustworthy they are.
Friday, April 5, 2013
Legal Loopholes In Credit Card Debt, Do They Exist?
Credit card debt loopholes, do they really exist?
This article is based on my experience of the credit industry in the UK. It may or may not be relevant to those living outside the UK that should make entertaining reading all the same.
There is much talk of loopholes in the Consumer Credit Act which allegedly allows a person to get out of paying their credit card debt without paying. Many companies have sprung up offering, for a fee, to analyse your credit card agreements and where appropriate applied to have your debt quashed.
Since many of these companies charge upfront fee it makes no difference to them whether or not they are successful. The question is, is it true that a person can get out of debt without paying?
The answer is yes.
I write from personal experience, a long time ago prior to the Internet revolution huge, well-known finance companies, made a very risky decision in that they chose not to comply with the specific terms of the consumer credit act. They did this because they thought the legal jargon that was required to be added to for example, a credit card application form, would scare people off.
What they didn't realise was, with the advent of the Internet, the sharing of knowledge, would bring about a revolution. Today thousands of people are successfully challenging the legality of their credit card and other unsecured debt agreements.
This is because many of the agreements and lack essential legal terms and the consumer credit act specifically states that no judge is allowed to find in favour of the creditor should the case come to court.
If you have ever received a small slip of paper tucked into your newspaper telling you to sign here for a credit card or loan, you will know the type of inadmissible consumer credit agreement I am talking about.
The reason consumer credit agreements need to contain specific information is because they are an important legally binding document and the person signing it needs to be made aware of their contractual obligations.
I personally was in debt by more than 50,000 and by sending a series of letters and challenging debt collectors, solicitors, finance and credit card companies I was able to bring about a situation whereby for almost 2 years now I've not made a single payment not received a single letter, no court summons, no solicitors letters, no contact from debt collectors and no phone calls. The method used is completely legal and it is also possible to maintain a clean credit record in many cases.
The laws I called upon included the Consumer Credit Act the Protection from Harassment Act, the Fraud Act and the Limitations Act amongst others.
I can assure you that it is entirely possible to get out of debt without paying in a huge number of cases, especially if you're agreements dated prior to 2007.
For more information on this subject search any major search engine for the term credit card debt loopholes'
This article is based on my experience of the credit industry in the UK. It may or may not be relevant to those living outside the UK that should make entertaining reading all the same.
There is much talk of loopholes in the Consumer Credit Act which allegedly allows a person to get out of paying their credit card debt without paying. Many companies have sprung up offering, for a fee, to analyse your credit card agreements and where appropriate applied to have your debt quashed.
Since many of these companies charge upfront fee it makes no difference to them whether or not they are successful. The question is, is it true that a person can get out of debt without paying?
The answer is yes.
I write from personal experience, a long time ago prior to the Internet revolution huge, well-known finance companies, made a very risky decision in that they chose not to comply with the specific terms of the consumer credit act. They did this because they thought the legal jargon that was required to be added to for example, a credit card application form, would scare people off.
What they didn't realise was, with the advent of the Internet, the sharing of knowledge, would bring about a revolution. Today thousands of people are successfully challenging the legality of their credit card and other unsecured debt agreements.
This is because many of the agreements and lack essential legal terms and the consumer credit act specifically states that no judge is allowed to find in favour of the creditor should the case come to court.
If you have ever received a small slip of paper tucked into your newspaper telling you to sign here for a credit card or loan, you will know the type of inadmissible consumer credit agreement I am talking about.
The reason consumer credit agreements need to contain specific information is because they are an important legally binding document and the person signing it needs to be made aware of their contractual obligations.
I personally was in debt by more than 50,000 and by sending a series of letters and challenging debt collectors, solicitors, finance and credit card companies I was able to bring about a situation whereby for almost 2 years now I've not made a single payment not received a single letter, no court summons, no solicitors letters, no contact from debt collectors and no phone calls. The method used is completely legal and it is also possible to maintain a clean credit record in many cases.
The laws I called upon included the Consumer Credit Act the Protection from Harassment Act, the Fraud Act and the Limitations Act amongst others.
I can assure you that it is entirely possible to get out of debt without paying in a huge number of cases, especially if you're agreements dated prior to 2007.
For more information on this subject search any major search engine for the term credit card debt loopholes'
Friday, March 22, 2013
Home Loans With Bad Credit: What Can Improve Your Chances Of Approval
Exactly how bad having bad credit is these day is debatable. For many, it is sufficient reason to panic, believing their financial reputation is ruined and no lender will ever touch them again. Others, however, are better informed and know that even when looking to buy property, getting home loans with bad credit is still possible.
The attitude that lenders have towards poor credit scores is not as strict as it once was, and the growth of online lenders means there are far more borrowing options available. All that is needed when getting home loan approval with bad credit is to meet the required criteria, and know these options.
Also, the fact that economic hardship has brought difficult times to even the most responsible borrowers means that a low credit score is no longer so accurate as a risk indicator. So, for applicants with a good history, regardless of their score, getting bad credit home loans approved is now easier.
The Reality of Bad Credit
Of course, despite the softer attitude towards a low credit score, there are still penalties that borrowers face even if a home loan with bad credit is approved. The most obvious is that the interest rate applied to the loan is higher than normal. Just how much higher depends on the credit score and on the lender, but it does mean that the monthly repayments are slightly higher.
A second consequence of getting home loan approval with bad credit is the extra fees and penalties sometimes charged. Some lenders will charge strict penalties if there is any delay in making repayments, while extra fees can sometimes be applied for processing your application.
For this reasons, it is always a good idea to check the small print, and enquire if any extra fees and charges exist. If this is not done, then getting bad credit home loans approved might not turn out to be such a good thing after all.
Further Advice
Some more good advice is to ensure a down payment is available when applying for a home loan with bad credit. The reason is two-fold. Firstly, by saving perhaps 10% of the property price as a down payment, the lender sees the commitment the applicant has to buying a home. It is not easy to save what might be ,000, without considerable financial discipline.
Also, a ,000 down payment makes getting home loan approval with bad credit easier because it means the required loan is reduced. So, a home worth 0,000, with require a mortgage of 0,000, immediately lowering the debt.
Another piece of sound advice is to consider all options before making a decision. It might seem that having a bad credit home loan approved by your local mortgage provider is a great move (and might be) but there may also be better deals out there - especially online.
Online Lenders
In fact, it is online that the best terms and conditions are generally found when seeking a home loan with bad credit. It really comes down to the fact that lenders are in a highly competitive business, so for online lenders to survive, they focus on lending to those who traditional banks are set to reject. So, getting home loan approval with bad credit is more likely online.
The terms tend to include more competitive interest rates and higher loan limits, but before having a bad credit home loan approved, check out the small print. Also, be sure to check out the lender on the Better Business Bureau site, to ensure a home loan with bad credit agreement does not turn out to be a major disaster.
The attitude that lenders have towards poor credit scores is not as strict as it once was, and the growth of online lenders means there are far more borrowing options available. All that is needed when getting home loan approval with bad credit is to meet the required criteria, and know these options.
Also, the fact that economic hardship has brought difficult times to even the most responsible borrowers means that a low credit score is no longer so accurate as a risk indicator. So, for applicants with a good history, regardless of their score, getting bad credit home loans approved is now easier.
The Reality of Bad Credit
Of course, despite the softer attitude towards a low credit score, there are still penalties that borrowers face even if a home loan with bad credit is approved. The most obvious is that the interest rate applied to the loan is higher than normal. Just how much higher depends on the credit score and on the lender, but it does mean that the monthly repayments are slightly higher.
A second consequence of getting home loan approval with bad credit is the extra fees and penalties sometimes charged. Some lenders will charge strict penalties if there is any delay in making repayments, while extra fees can sometimes be applied for processing your application.
For this reasons, it is always a good idea to check the small print, and enquire if any extra fees and charges exist. If this is not done, then getting bad credit home loans approved might not turn out to be such a good thing after all.
Further Advice
Some more good advice is to ensure a down payment is available when applying for a home loan with bad credit. The reason is two-fold. Firstly, by saving perhaps 10% of the property price as a down payment, the lender sees the commitment the applicant has to buying a home. It is not easy to save what might be ,000, without considerable financial discipline.
Also, a ,000 down payment makes getting home loan approval with bad credit easier because it means the required loan is reduced. So, a home worth 0,000, with require a mortgage of 0,000, immediately lowering the debt.
Another piece of sound advice is to consider all options before making a decision. It might seem that having a bad credit home loan approved by your local mortgage provider is a great move (and might be) but there may also be better deals out there - especially online.
Online Lenders
In fact, it is online that the best terms and conditions are generally found when seeking a home loan with bad credit. It really comes down to the fact that lenders are in a highly competitive business, so for online lenders to survive, they focus on lending to those who traditional banks are set to reject. So, getting home loan approval with bad credit is more likely online.
The terms tend to include more competitive interest rates and higher loan limits, but before having a bad credit home loan approved, check out the small print. Also, be sure to check out the lender on the Better Business Bureau site, to ensure a home loan with bad credit agreement does not turn out to be a major disaster.
Tuesday, March 12, 2013
Bad Credit Home Loan Refinancing Can Save You From Drowning In Your Current Mortgage
The major housing bust of the last decade has left a lasting impression on many home owners' credit reports. Due to the nasty increases in adjustable rate mortgages, housing payments have gotten out of control and home loans are falling into default. If you are in such a situation and are watching your bad credit become worse, the option of refinancing your home loan could be the last available in order to avoid foreclosure.
What Is a Home Loan Refinance?
When you opt to refinance your current home loan, you essentially take the old loan and its immense burden out of the equation and off of your credit report through repayment with a new loan. This will help you to save your home because the process of home loan refinancing will decrease your monthly payment to make it more manageable given your current income and associated financial condition.
Even with bad credit, home loan refinancing can be an option since many lenders have seen an increase in defaults and cannot handle one more empty home on their books. As a borrower in trouble, you should take advantage of these special offers to both save your home and salvage your bad credit.
Home Loan Prep Work
Before you start the process of finding a refinance loan for your mortgage, there are certain steps you can take to improve your chances of getting a good deal. First, order a copy of your credit report from one of the three major credit reporting agencies: Equifax, Trans Union, or Experian. Look over this report thoroughly and double check that there are not accounts or statements on there that are false. Having inaccuracies on your credit report can needlessly lower your overall score.
Next, make sure that you review all of the paperwork that will be required to apply for refinance loans. Generally, this will include current information on your existing mortgage, income information, and other documents that prove your identity, residence, etc. By having all of this information together beforehand, you eliminate needless waiting periods once the loans application process has begun.
Finding a Bad Credit Lender
Though looking towards a traditional financial institution such as a local bank or credit union is a great option in some cases, for bad credit home loan refinancing, you really need to stick with a lender who specializes in loans to those with less-than-perfect FICO scores. Generally speaking, these lenders operate online and can be accessed easily through either web-based applications or telephone.
One important tip to keep in mind is to be sure to do a background check on any lender you are considering. Though many of the lenders you speak to will be legitimate, the internet is still rife with scam artists who will use your bad credit as an excuse to take advantage of you.
You Can Get Relief with Refinancing
If you feel like you are treading water with your home mortgage and there is little hope of relief, finding the right opportunity to refinance could be your lifesaver. Bad credit can certainly be a problem, but with the right preparation, it can be overcome and the home loan refinancing process can save you from drowning.
What Is a Home Loan Refinance?
When you opt to refinance your current home loan, you essentially take the old loan and its immense burden out of the equation and off of your credit report through repayment with a new loan. This will help you to save your home because the process of home loan refinancing will decrease your monthly payment to make it more manageable given your current income and associated financial condition.
Even with bad credit, home loan refinancing can be an option since many lenders have seen an increase in defaults and cannot handle one more empty home on their books. As a borrower in trouble, you should take advantage of these special offers to both save your home and salvage your bad credit.
Home Loan Prep Work
Before you start the process of finding a refinance loan for your mortgage, there are certain steps you can take to improve your chances of getting a good deal. First, order a copy of your credit report from one of the three major credit reporting agencies: Equifax, Trans Union, or Experian. Look over this report thoroughly and double check that there are not accounts or statements on there that are false. Having inaccuracies on your credit report can needlessly lower your overall score.
Next, make sure that you review all of the paperwork that will be required to apply for refinance loans. Generally, this will include current information on your existing mortgage, income information, and other documents that prove your identity, residence, etc. By having all of this information together beforehand, you eliminate needless waiting periods once the loans application process has begun.
Finding a Bad Credit Lender
Though looking towards a traditional financial institution such as a local bank or credit union is a great option in some cases, for bad credit home loan refinancing, you really need to stick with a lender who specializes in loans to those with less-than-perfect FICO scores. Generally speaking, these lenders operate online and can be accessed easily through either web-based applications or telephone.
One important tip to keep in mind is to be sure to do a background check on any lender you are considering. Though many of the lenders you speak to will be legitimate, the internet is still rife with scam artists who will use your bad credit as an excuse to take advantage of you.
You Can Get Relief with Refinancing
If you feel like you are treading water with your home mortgage and there is little hope of relief, finding the right opportunity to refinance could be your lifesaver. Bad credit can certainly be a problem, but with the right preparation, it can be overcome and the home loan refinancing process can save you from drowning.
Thursday, February 28, 2013
Credit Score Advising Regarding Mortgage Loan Help
Nonprofit credit score counseling services can support consumers in many different techniques, 1 of which being home loan assistance, as these companies can support home owners either find ways to create their home loan a lot more reasonably priced or, in the past, some mortgage counselors have helped home owners by way of the modification processes and also have allowed them to enter right into a foreclosure prevention plan. Obviously, some home owners have required assistance with regards to making their way by way of the Generating Residence Reasonably priced Plan, but others may well have benefited from credit score counseling basically since their counselor was in a position to assist them formulate a spending budget which permitted them to meet their mortgage payments far more affordably.
Since these counseling companies have been useful for some home owners, there have been grants awarded to housing counseling organizations which may perhaps help when it comes to offering extra assistance to homeowners in require. These grants awarded to housing counselors are also not only benefitting property owners when it comes to foreclosure prevention, but also these organizations can assist renters along with a homebuyers in the buy of a brand new property.
Obviously, these credit counseling organizations which offer housing counseling are normally deemed as trustworthy organizations as a result of the reality that they are reviewed by the Division of Housing and Urban Improvement. Around the previous months, there have been homeowners who had been taken advantage of by fraudulent housing counselors or debt relief companies, which have put them within a even worse position regarding their home loan.
Scams related to home loan modifications also arose and, in some areas, are nonetheless a difficulty, so property owners who are in a challenging monetary position and are seeking counseling for their home loan scenario have already been advised to be both consult HUD-approved housing counselors or basically research a credit score counseling organization possibly on-line or from sources such as the Much better Enterprise Bureau.
It needs to be understood that property owners who look for out housing counseling from these organizations aren't guaranteed to keep their residence or obtain affordability in their monthly mortgage payment, as you'll find some individuals who are just in a position exactly where there's small that can be done. Having said that, when it comes to looking for advice within the modification plan or with common home loan economic issues, these institutions have helped home owners in excess of the past months and, it is advised that home owners who wish to speak with a counselor, achieve this just before their financial position becomes to dire and beneficial options may well be unavailable.
30 yr rates on mortgages greater to four.93 percent the week ending December 24, 2010, up through the previous week's typical 30 year charge of 4.84 percent says the Home loan Bankers Association. The average contract charge on 30 12 months mortgages for that week ending December 31, 2010, decreased to four.82 percent. The typical contract charge on 15 year mortgages remained unchanged at four.22 percent for your week ending December 24, 2010. For your week ending December 31, 2010 rates on 15 12 months mortgages increased to 4.23 %.
The amount of individuals applying for a mortgage loan application to purchase a house increased three.1% for your week ending December 24, 2010 and decreased 0.8 % the following week. Mortgage applications for refinancing a mortgage loan decreased 7.two % the week ending December 24, 2010 and elevated 3.9 percent the week right after.
Since these counseling companies have been useful for some home owners, there have been grants awarded to housing counseling organizations which may perhaps help when it comes to offering extra assistance to homeowners in require. These grants awarded to housing counselors are also not only benefitting property owners when it comes to foreclosure prevention, but also these organizations can assist renters along with a homebuyers in the buy of a brand new property.
Obviously, these credit counseling organizations which offer housing counseling are normally deemed as trustworthy organizations as a result of the reality that they are reviewed by the Division of Housing and Urban Improvement. Around the previous months, there have been homeowners who had been taken advantage of by fraudulent housing counselors or debt relief companies, which have put them within a even worse position regarding their home loan.
Scams related to home loan modifications also arose and, in some areas, are nonetheless a difficulty, so property owners who are in a challenging monetary position and are seeking counseling for their home loan scenario have already been advised to be both consult HUD-approved housing counselors or basically research a credit score counseling organization possibly on-line or from sources such as the Much better Enterprise Bureau.
It needs to be understood that property owners who look for out housing counseling from these organizations aren't guaranteed to keep their residence or obtain affordability in their monthly mortgage payment, as you'll find some individuals who are just in a position exactly where there's small that can be done. Having said that, when it comes to looking for advice within the modification plan or with common home loan economic issues, these institutions have helped home owners in excess of the past months and, it is advised that home owners who wish to speak with a counselor, achieve this just before their financial position becomes to dire and beneficial options may well be unavailable.
30 yr rates on mortgages greater to four.93 percent the week ending December 24, 2010, up through the previous week's typical 30 year charge of 4.84 percent says the Home loan Bankers Association. The average contract charge on 30 12 months mortgages for that week ending December 31, 2010, decreased to four.82 percent. The typical contract charge on 15 year mortgages remained unchanged at four.22 percent for your week ending December 24, 2010. For your week ending December 31, 2010 rates on 15 12 months mortgages increased to 4.23 %.
The amount of individuals applying for a mortgage loan application to purchase a house increased three.1% for your week ending December 24, 2010 and decreased 0.8 % the following week. Mortgage applications for refinancing a mortgage loan decreased 7.two % the week ending December 24, 2010 and elevated 3.9 percent the week right after.
Tuesday, February 26, 2013
Deciphering The Murphy Bed Mechanism Market
Have you decided to have a Murphy bed in your home? Then getting a quality Murphy bed is a difficult task. The Murphy bed which you have made up your mind to buy should be full of specialties such as the right mechanism bed. Mechanism plays a crucial role in the making of a Murphy bed. Mechanism dictates all the facets of the structure of bed. There are several manufacturers who make the Murphy bed for each type. The two main mechanisms by which Murphy beds are made include spring mechanism and piston mechanism.
Spring Mechanisms
Spring mechanisms are considered to be a division of the traditional Murphy bed system. The spring system employs a heavy duty compresses steel spring system that is either hidden or not hidden within the frame of the Murphy bed.
The spring mechanism requires specialized cabinetry like bi-fold doors or cabinets that hinder the use of storage pieces adjacent to the Murphy bed in case of concealed frame work of Murphy bed.
Adjusting/Sagging
It is easy to lower and lift your Murphy bed made of spring mechanism. This is because they are counter balanced. The springs of the bed may require adjustment after it is used for several years because the springs fatigue and stretch over time. The Murphy bed may start sag if the springs are not adjusted.
Piston Mechanisms
Murphy bed systems employ this mechanism which is known as piston mechanism. The functioning of these pistons depends upon either gas or air pressure. The piston generally provides support when the bed is raised or lowered.
Locks
There is a benefit of choosing a Murphy bed operated with a piston mechanism and that is a locking device. These locks help in keeping the Murphy bed securely inside the cabinet when they are not in use. The product has a greater life because there is very less possibility of fatigue and sagging in case of piston mechanism operated beds.
Zero-Adjustment
The beds operated by piston mechanism require no adjustment. They are concealed within the frame of Murphy bed. As pistons cannot be adjusted therefore it is necessary o install the beds properly. This promotes the longevity of the mechanism.
It is advisable to take time and explore all possibilities before making the right decision to purchase a bed.
Spring Mechanisms
Spring mechanisms are considered to be a division of the traditional Murphy bed system. The spring system employs a heavy duty compresses steel spring system that is either hidden or not hidden within the frame of the Murphy bed.
The spring mechanism requires specialized cabinetry like bi-fold doors or cabinets that hinder the use of storage pieces adjacent to the Murphy bed in case of concealed frame work of Murphy bed.
Adjusting/Sagging
It is easy to lower and lift your Murphy bed made of spring mechanism. This is because they are counter balanced. The springs of the bed may require adjustment after it is used for several years because the springs fatigue and stretch over time. The Murphy bed may start sag if the springs are not adjusted.
Piston Mechanisms
Murphy bed systems employ this mechanism which is known as piston mechanism. The functioning of these pistons depends upon either gas or air pressure. The piston generally provides support when the bed is raised or lowered.
Locks
There is a benefit of choosing a Murphy bed operated with a piston mechanism and that is a locking device. These locks help in keeping the Murphy bed securely inside the cabinet when they are not in use. The product has a greater life because there is very less possibility of fatigue and sagging in case of piston mechanism operated beds.
Zero-Adjustment
The beds operated by piston mechanism require no adjustment. They are concealed within the frame of Murphy bed. As pistons cannot be adjusted therefore it is necessary o install the beds properly. This promotes the longevity of the mechanism.
It is advisable to take time and explore all possibilities before making the right decision to purchase a bed.
Saturday, February 23, 2013
Military Members With Bad Credit Can Receive Special Auto Loans From Private Lenders
Military members who are either on active duty or retired are able to take advantage of special auto loans. These loans are provided by private lenders, but especially reserved for military members who need help financing a vehicle purchase due to credit problems. Some people may also know these as auto loans for military members with bad credit. This article will familiarize you with this lending option and help you decide if it is the right choice for your next vehicle purchase.
Guaranteed Approval for Military Service Members
The design of these auto loans is such that military members receive automatic or guaranteed approval. This is because, unlike traditional auto loans that are given based on a credit history, military auto loans are given based on secure military (i.e. government) income. Therefore, retired military members who collect a regular pension are also entitled to military auto loan benefits.
The nature of these loans means that having bad credit, or no credit, is not a problem for members of the military. Private military lenders will work with you despite your credit problems to get you the vehicle you need as a means to say thank you for your service.
Bonus: Flexible Repayment
Another bonus for military members who take auto loans from private lenders is the repayment schedules that they offer. Unlike traditional auto loans that are usually only offered in three or five year terms, auto loans for military members with bad credit can be designed to accommodate your pay scale specifically with a range of repayment period options.
The interest rates on these guaranteed loans is relatively fixed, meaning that you can determine how long you need to repay the loan based on its principle amount. Looking at your monthly budget and income, have a solid figure that you can afford to pay each month and then base your loan term on that figure.
Internet Applications Make the Process Easy
One final benefit to auto financing through auto loans for military member with bad credit is the ability to use the internet to find the best loan for you. Through private online lenders, military members can compare rates and terms across several loans before they even go shopping for a car. This way, the negotiation of price in terms of loan application is negated at the auto dealership, allowing the buyer to focus on getting the car or truck he or she wants at the best price.
In order to conduct and online search for an auto loan for military members with bad credit, it is first necessary to identify several lenders who offer this option. Then, you can simply fill out a short form to see how much money they will offer, at what interest rate and at what term. Calling individual lenders to negotiate is another way to guarantee the best deal. Once you have decided on a lender, you are ready to get a car.
Taking Time to Research
As a member of the military, you are intimately familiar with the many dangers that lurk out in the world and the internet is no different. That is why taking the time to research the online lenders you contact can be worth it in the long run. Make sure that the lender is legitimate and has good ratings as a business. Also, do not let him pressure you into making a purchase that is larger than your budget can support.
Private lenders offer excellent packages to military members with bad credit. Auto loans are guaranteed with these lenders and by doing a little research a member of the military is entitled to a great deal for a new car or truck.
Guaranteed Approval for Military Service Members
The design of these auto loans is such that military members receive automatic or guaranteed approval. This is because, unlike traditional auto loans that are given based on a credit history, military auto loans are given based on secure military (i.e. government) income. Therefore, retired military members who collect a regular pension are also entitled to military auto loan benefits.
The nature of these loans means that having bad credit, or no credit, is not a problem for members of the military. Private military lenders will work with you despite your credit problems to get you the vehicle you need as a means to say thank you for your service.
Bonus: Flexible Repayment
Another bonus for military members who take auto loans from private lenders is the repayment schedules that they offer. Unlike traditional auto loans that are usually only offered in three or five year terms, auto loans for military members with bad credit can be designed to accommodate your pay scale specifically with a range of repayment period options.
The interest rates on these guaranteed loans is relatively fixed, meaning that you can determine how long you need to repay the loan based on its principle amount. Looking at your monthly budget and income, have a solid figure that you can afford to pay each month and then base your loan term on that figure.
Internet Applications Make the Process Easy
One final benefit to auto financing through auto loans for military member with bad credit is the ability to use the internet to find the best loan for you. Through private online lenders, military members can compare rates and terms across several loans before they even go shopping for a car. This way, the negotiation of price in terms of loan application is negated at the auto dealership, allowing the buyer to focus on getting the car or truck he or she wants at the best price.
In order to conduct and online search for an auto loan for military members with bad credit, it is first necessary to identify several lenders who offer this option. Then, you can simply fill out a short form to see how much money they will offer, at what interest rate and at what term. Calling individual lenders to negotiate is another way to guarantee the best deal. Once you have decided on a lender, you are ready to get a car.
Taking Time to Research
As a member of the military, you are intimately familiar with the many dangers that lurk out in the world and the internet is no different. That is why taking the time to research the online lenders you contact can be worth it in the long run. Make sure that the lender is legitimate and has good ratings as a business. Also, do not let him pressure you into making a purchase that is larger than your budget can support.
Private lenders offer excellent packages to military members with bad credit. Auto loans are guaranteed with these lenders and by doing a little research a member of the military is entitled to a great deal for a new car or truck.
Getting Home Loans With Bad Credit: What Factors To Consider
There was a time when seeking a home loan with bad credit was considered a waste of effort. But times have changed with the variety of mortgage options available to give even bad credit borrowers a chance to secure the funds they need. There are factors that need to be considered too, though.
The challenge for all of us is to convince lenders that their investment will be repaid in full. But finding the right lender is where the real challenge lies, one that is willing to take a different view of credit history or low credit scores. This is where non-conforming lenders come into play.
It is essential to accept that normal criteria need to be met too before any application can be considered. But the good news is that there are always home loan lending options to consider.
Why Loans Are Declined
It might not seem fair that lenders are so willing to turn down loan applications, and on the face of it, that is true. But when it comes to applying for home loans with bad credit, it is only logical that the chances of getting approval should be affected. Banks and traditional lenders have strict lending policies, and this is well known.
For the lender, the risk of losing on their investment drives them towards setting high interest rates and strict rules. So,if the credit score for two or more applicants is the same, then the application outcome will be the same too. This is where non-conforming lenders becomes such a good idea.
These lenders approach the loan application differently, and are not likely to condemn an application due to past mistakes. So, even for an applicant who had been declared bankrupt some years earlier, the opportunity to get a home loan is not completely lost.
What Is the Non-Conformist Option?
Generally, the best place to get a home loan with bad credit is from a specialist mortgage broker, not through an established bank. This is because a broker has a network of contacts that is usually wider than the banks, because the banks set themselves difficult terms.
A key element of this network is non-conforming lenders, who are experts in dealing with bad credit borrowers. They assess applications based on the Rate-at-Risk value of the application. It means that applications are never rejected. The terms are set according to the degree of risk associated with the deal, and it is up to the borrower to accept them or not.
Of course, this is where your mortgage broker earns their money, with your application presented in the best manner possible so as to ensure getting the lowest interest rate and best repayment schedule possible. And is it comes to a time to get the home loan, the repayments are therefore as reasonable as possible.
What Options Are There?
There are always options available, even when the idea of getting a home loan with bad credit seems impossible. The first step is to get a copy of your credit report from one of the credit agencies to see where exactly the weaknesses lie in your application.
The loan strategy can vary depending on the information contained in your credit report. However, if there are any defaults or late payments on your record, set about clearing them first. It may be true that non-conforming lenders look at applications slightly differently, but it is still necessary to do something to improve the credit score.
Also, consider taking out a consolidation loan to deal with all of the unsecured debts, and lower the monthly repayments that exist. This improves the debt-to-income ratio as well as the credit score. So, when it comes to applying for a home loan, the terms are better with the interest rates charged much lower.
The challenge for all of us is to convince lenders that their investment will be repaid in full. But finding the right lender is where the real challenge lies, one that is willing to take a different view of credit history or low credit scores. This is where non-conforming lenders come into play.
It is essential to accept that normal criteria need to be met too before any application can be considered. But the good news is that there are always home loan lending options to consider.
Why Loans Are Declined
It might not seem fair that lenders are so willing to turn down loan applications, and on the face of it, that is true. But when it comes to applying for home loans with bad credit, it is only logical that the chances of getting approval should be affected. Banks and traditional lenders have strict lending policies, and this is well known.
For the lender, the risk of losing on their investment drives them towards setting high interest rates and strict rules. So,if the credit score for two or more applicants is the same, then the application outcome will be the same too. This is where non-conforming lenders becomes such a good idea.
These lenders approach the loan application differently, and are not likely to condemn an application due to past mistakes. So, even for an applicant who had been declared bankrupt some years earlier, the opportunity to get a home loan is not completely lost.
What Is the Non-Conformist Option?
Generally, the best place to get a home loan with bad credit is from a specialist mortgage broker, not through an established bank. This is because a broker has a network of contacts that is usually wider than the banks, because the banks set themselves difficult terms.
A key element of this network is non-conforming lenders, who are experts in dealing with bad credit borrowers. They assess applications based on the Rate-at-Risk value of the application. It means that applications are never rejected. The terms are set according to the degree of risk associated with the deal, and it is up to the borrower to accept them or not.
Of course, this is where your mortgage broker earns their money, with your application presented in the best manner possible so as to ensure getting the lowest interest rate and best repayment schedule possible. And is it comes to a time to get the home loan, the repayments are therefore as reasonable as possible.
What Options Are There?
There are always options available, even when the idea of getting a home loan with bad credit seems impossible. The first step is to get a copy of your credit report from one of the credit agencies to see where exactly the weaknesses lie in your application.
The loan strategy can vary depending on the information contained in your credit report. However, if there are any defaults or late payments on your record, set about clearing them first. It may be true that non-conforming lenders look at applications slightly differently, but it is still necessary to do something to improve the credit score.
Also, consider taking out a consolidation loan to deal with all of the unsecured debts, and lower the monthly repayments that exist. This improves the debt-to-income ratio as well as the credit score. So, when it comes to applying for a home loan, the terms are better with the interest rates charged much lower.
Thursday, February 21, 2013
High Mileage Car Leasing - A Good Option?
Yes, but do you have reservations because of the high mileage you drive? Well that's fair enough, high mileage leases do cost more than low mileage leases. This is simply because cars that have down more miles depreciate more quickly - but this is so whether you lease or buy. Working out the true cost of a car is important. Used cars have depreciated more than ever in the past year. With leasing you don't have any of the risk of what the car will be worth with say 90,000 miles on the clock in 3 years.
Issues with buying in today's market
- Finance is more costly and difficult to arrange to purchase a car
- High mileage vehicles can be very difficult to sell. Would you buy a car out of warranty with a high mileage?
Benefits of leasing
- You pay a fixed cost each month which allows you to budget accurately
- You get to drive a brand new car with very little initial outlay
- You can opt for a maintenance package - Great for high mileage drivers as maintenance bills are likely to be higher. You also eliminate any costly and unexpected servicing bills
- You have the reassurance that the car is under warranty (If leasing for 3 years or less)
Vehicle leasing expert Jane Ramsey says 'Leasing offers good value for money when compared to the true cost of running a car - particularly if you are used to the hassle free experience of a company car scheme.'
We recommend contacting a few leasing companies - as those that are the cheapest at 10,000 miles may not be the cheapest at 30,000.
Issues with buying in today's market
- Finance is more costly and difficult to arrange to purchase a car
- High mileage vehicles can be very difficult to sell. Would you buy a car out of warranty with a high mileage?
Benefits of leasing
- You pay a fixed cost each month which allows you to budget accurately
- You get to drive a brand new car with very little initial outlay
- You can opt for a maintenance package - Great for high mileage drivers as maintenance bills are likely to be higher. You also eliminate any costly and unexpected servicing bills
- You have the reassurance that the car is under warranty (If leasing for 3 years or less)
Vehicle leasing expert Jane Ramsey says 'Leasing offers good value for money when compared to the true cost of running a car - particularly if you are used to the hassle free experience of a company car scheme.'
We recommend contacting a few leasing companies - as those that are the cheapest at 10,000 miles may not be the cheapest at 30,000.
Wednesday, February 20, 2013
$25,000 Unsecured Personal Loan: 3 Keys To Approval With Bad Credit
Bad credit scores are traditionally seen as a stumbling block for loan applications. So, with no security to offer, a ,000 unsecured personal loan was a virtual impossibility. But that is not an accurate reflection of the state of affairs. There are lenders willing to lend to bad credit borrowers, if the criteria are satisfied first.
Bad credit is not the killer blow to loan applications that so many people claim it to be. Affordability is the most important factor when seeking loan approval with bad credit, and affordability has more to do with income and existing debt than anything else.
So personal loan approval is possible, even with credit histories taken onboard, as long as the applicant has the ability to repay. All that we really need to know is what the lenders look at when they assess an application. Here are three key ones.
1. How Big is the Loan?
Simple mathematics can work out whether a loan is affordable or not. For example, getting a ,000 unsecured personal loan is not going to be a major problem if the monthly repayments are comfortably lower than the size of the monthly income.
But there is more to it than that, with high earners not always qualifying for loans that medium earners do. The reason? Debt-to-income ratio. This measures whether there is sufficient excess income to cover a loan repayment once existing debts are accounted for. With a limit of 40% afforded to repaying debts, getting loan approval with bad credit is dependent on new loan repayments not exceeding that limit.
With small personal loans of between ,000 and ,000, this is not a major factor in the approval process, but with larger sums it plays a much more significant role.
2. The Interest Rate Bracket
Credit scores do have an influence on the affordability of a loan as they dictate the interest rate the borrower will be charged. The lower the score, the higher in interest rate, so bad credit borrowers may have to pay as much as 1% more in interest on a ,000 unsecured personal loan, than someone with an excellent credit score.
Of course, what this translates to is a higher monthly repayment sum, with perhaps as much as per month depending on the term and size of the loan. This factor has a definite effect on affordability, so getting loan approval with bad credit can be difficult, if the existing debt-to-income ratio is already close to the 40% limit.
A way around this problem is to reduce the size of the existing debt before applying for the personal loan. A small consolidation loan, which could replace some of the debt with a single low-cost loan would make the difference.
3. The Loan Term
Lenders also take a careful look at the loan term an applicant is seeking. The longer the term, the lower the monthly repayments, and that can be significant when seeking a ,000 unsecured personal loan. If this loan were repaid over 5 years, the monthly repayments would be around 0. But if the term were lengthened to 10 years, the repayments would fall to half that figure. And with a longer term, the chances of getting loan approval with bad credit is much greater.
Lenders do take a look at some other factors, such as the job security of the applicant with a preference for the long-term employed than the self-employed. However, even with bad credit scores to their name, applicants can get personal loans without the benefit of collateral, if the application has everything they want to see.
Bad credit is not the killer blow to loan applications that so many people claim it to be. Affordability is the most important factor when seeking loan approval with bad credit, and affordability has more to do with income and existing debt than anything else.
So personal loan approval is possible, even with credit histories taken onboard, as long as the applicant has the ability to repay. All that we really need to know is what the lenders look at when they assess an application. Here are three key ones.
1. How Big is the Loan?
Simple mathematics can work out whether a loan is affordable or not. For example, getting a ,000 unsecured personal loan is not going to be a major problem if the monthly repayments are comfortably lower than the size of the monthly income.
But there is more to it than that, with high earners not always qualifying for loans that medium earners do. The reason? Debt-to-income ratio. This measures whether there is sufficient excess income to cover a loan repayment once existing debts are accounted for. With a limit of 40% afforded to repaying debts, getting loan approval with bad credit is dependent on new loan repayments not exceeding that limit.
With small personal loans of between ,000 and ,000, this is not a major factor in the approval process, but with larger sums it plays a much more significant role.
2. The Interest Rate Bracket
Credit scores do have an influence on the affordability of a loan as they dictate the interest rate the borrower will be charged. The lower the score, the higher in interest rate, so bad credit borrowers may have to pay as much as 1% more in interest on a ,000 unsecured personal loan, than someone with an excellent credit score.
Of course, what this translates to is a higher monthly repayment sum, with perhaps as much as per month depending on the term and size of the loan. This factor has a definite effect on affordability, so getting loan approval with bad credit can be difficult, if the existing debt-to-income ratio is already close to the 40% limit.
A way around this problem is to reduce the size of the existing debt before applying for the personal loan. A small consolidation loan, which could replace some of the debt with a single low-cost loan would make the difference.
3. The Loan Term
Lenders also take a careful look at the loan term an applicant is seeking. The longer the term, the lower the monthly repayments, and that can be significant when seeking a ,000 unsecured personal loan. If this loan were repaid over 5 years, the monthly repayments would be around 0. But if the term were lengthened to 10 years, the repayments would fall to half that figure. And with a longer term, the chances of getting loan approval with bad credit is much greater.
Lenders do take a look at some other factors, such as the job security of the applicant with a preference for the long-term employed than the self-employed. However, even with bad credit scores to their name, applicants can get personal loans without the benefit of collateral, if the application has everything they want to see.
Albanian Translation And Bosnian Translation: Languages Of Poverty And Struggle
The Albanian language is a predominantly Latin based mostly language, although it additionally has some loan phrases from its neighbour Greece, has present a necessity for Albanian translation. The very best place on this very poor European country to get an unique Albanian translation is likely the capital, Tirana. The Latin affect in the language is due to the Roman supremacy across the 2nd Century and moderately them asking for an Albanian translation they forced Latin upon the Albanians. Different influences which have the language for what it's proper now are Greek and Turkish, as well as Macedonian.
Albania is among the poorest nations in Europe and lots of Albanians tried to go away their country to find work elsewhere. It is due to this fact that you will be able to get an Albanian translation native speakers nowadays dwelling in Italy or the Netherlands. Still at present, Albanians attempt to leave the poverty by attempting to cross the Adriatic See in depressing and often not seaworthy boats. The Italians try to keep away from this yearly invasion by sending them back, often accompanied by a letter of rationalization which is finished in an Albanian translation.
One way of creating work in Albania could be tourism. With archaeological leftovers of instances long gone there is sufficient to be seen and guides may help the tourists by offering an Albanian translation of their wishes, questions to the native shop and lodge owners. Tour operators and travel businesses will certainly need an Albanian translation otherwise doing enterprise with this nation is perhaps difficult.
If you're in the possession of an English-Albanian dictionary, then you may attempt to do an Albanian translation your self, by forming phrases and small sentences in outlets and restaurants. You will make mates forever.
Bosnian is the language of the nation Bosnia Herzegovina, which is shared with Croatia.
After the First World Warfare Bosnia grew to become part of Yugoslavia. A horrendous civil in the ninety's affected the nation in a foul way. Mines and companies acquired closed and nonetheless till at this time agriculture is hardly attainable due to the presence of land mines. Unique Bosnia is now split into 2 governing entities: Bosniak or Bosnia Herzegovina and the Republic Sprska, the place primarily Bosnian Serbs are found.
Now that the Bosnians are rebuilding their nation, they want a lot of help of foreign international locations however on account of the fact that hardly anybody speaks English a Bosnian translation is required for everything.
International support is withdrawn and the nation tries arduous to do most of the rebuilding themselves.
One of the methods to do the construct up is focussing on tourism. This means a number of work for natives who are in a position to speak an overseas language and who will act as an intermediary between locals and the vacationer, guaranteeing an ideal Bosnian translation of the wants, requests and questions of the international tourists. Medieval buildings, monasteries and bridges don't need a Bosnian translation and details about the sights is normally in English. Hiking in the old mountains is an alternative choice and except you just talk to yourself, you would possibly want a Bosnian translation from your guide once you wish to get contact with the local population. Since shortly after the country is a member of NATO, which means that they must begin speaking in English so it implies that a Bosnian translation is now not wanted for everything.
Albania is among the poorest nations in Europe and lots of Albanians tried to go away their country to find work elsewhere. It is due to this fact that you will be able to get an Albanian translation native speakers nowadays dwelling in Italy or the Netherlands. Still at present, Albanians attempt to leave the poverty by attempting to cross the Adriatic See in depressing and often not seaworthy boats. The Italians try to keep away from this yearly invasion by sending them back, often accompanied by a letter of rationalization which is finished in an Albanian translation.
One way of creating work in Albania could be tourism. With archaeological leftovers of instances long gone there is sufficient to be seen and guides may help the tourists by offering an Albanian translation of their wishes, questions to the native shop and lodge owners. Tour operators and travel businesses will certainly need an Albanian translation otherwise doing enterprise with this nation is perhaps difficult.
If you're in the possession of an English-Albanian dictionary, then you may attempt to do an Albanian translation your self, by forming phrases and small sentences in outlets and restaurants. You will make mates forever.
Bosnian is the language of the nation Bosnia Herzegovina, which is shared with Croatia.
After the First World Warfare Bosnia grew to become part of Yugoslavia. A horrendous civil in the ninety's affected the nation in a foul way. Mines and companies acquired closed and nonetheless till at this time agriculture is hardly attainable due to the presence of land mines. Unique Bosnia is now split into 2 governing entities: Bosniak or Bosnia Herzegovina and the Republic Sprska, the place primarily Bosnian Serbs are found.
Now that the Bosnians are rebuilding their nation, they want a lot of help of foreign international locations however on account of the fact that hardly anybody speaks English a Bosnian translation is required for everything.
International support is withdrawn and the nation tries arduous to do most of the rebuilding themselves.
One of the methods to do the construct up is focussing on tourism. This means a number of work for natives who are in a position to speak an overseas language and who will act as an intermediary between locals and the vacationer, guaranteeing an ideal Bosnian translation of the wants, requests and questions of the international tourists. Medieval buildings, monasteries and bridges don't need a Bosnian translation and details about the sights is normally in English. Hiking in the old mountains is an alternative choice and except you just talk to yourself, you would possibly want a Bosnian translation from your guide once you wish to get contact with the local population. Since shortly after the country is a member of NATO, which means that they must begin speaking in English so it implies that a Bosnian translation is now not wanted for everything.
Tuesday, February 19, 2013
Women Business Loans: Best Funding Aid for Women Business Holders
There is nothing in this world which women cannot do. In today's world a woman is not only a perfect home maker but she can also is capable of running a business successfully. For all those women business holders who are in need of finance for expanding their business can anytime go for the perfect financial provision of women business loans. These loans are mainly framed for all those women who wish to fulfill their dream of running a successful business into reality.
With the help of these loans you can procure suitable financial support that allows you to fulfill your many important business related requirements in an effective way. You just have to show your business projects and record of your financial transactions of the lenders. In this way, Small Business Loans For Women help you to arrange finance for your business in an easy way without facing any trouble.
Women business loans can be entailed in both secured as well as unsecured ways. The secured women business loans are bound with placement of collateral against the loan. Under these loans you may able to procure huge finance for a longer time period. There is lower interest rate charge on these loans, because of the presence of collateral.
On the other side, the unsecured women business loans are not bound with any requirement to put any collateral against the loan. These loans help you to borrow suitable finance for the flexible time duration. There are comparatively higher rates of interest charged on these loans, because of the absence of any collateral against the loan.
Consider the highly popular and efficient online medium to apply for these loans in a hassle free and reliable way. By collecting and then comparing online lenders different loan quotes in a careful way you may able to pick the most convenient loan deal at modest rates without doing much struggle. Now you have the facility to choose right financial deal for you suiting your needs and budget easily while just sitting at the comfort of your home or office.
Use the funds accessed with Business Loans For Women to satisfy all your important business purposes like buying raw material, purchasing machinery and other essential equipments for business, pay out remuneration to the staff, buy a land for office and many more.
With the help of these loans you can procure suitable financial support that allows you to fulfill your many important business related requirements in an effective way. You just have to show your business projects and record of your financial transactions of the lenders. In this way, Small Business Loans For Women help you to arrange finance for your business in an easy way without facing any trouble.
Women business loans can be entailed in both secured as well as unsecured ways. The secured women business loans are bound with placement of collateral against the loan. Under these loans you may able to procure huge finance for a longer time period. There is lower interest rate charge on these loans, because of the presence of collateral.
On the other side, the unsecured women business loans are not bound with any requirement to put any collateral against the loan. These loans help you to borrow suitable finance for the flexible time duration. There are comparatively higher rates of interest charged on these loans, because of the absence of any collateral against the loan.
Consider the highly popular and efficient online medium to apply for these loans in a hassle free and reliable way. By collecting and then comparing online lenders different loan quotes in a careful way you may able to pick the most convenient loan deal at modest rates without doing much struggle. Now you have the facility to choose right financial deal for you suiting your needs and budget easily while just sitting at the comfort of your home or office.
Use the funds accessed with Business Loans For Women to satisfy all your important business purposes like buying raw material, purchasing machinery and other essential equipments for business, pay out remuneration to the staff, buy a land for office and many more.
Monday, February 18, 2013
ACS Student Loans
An ACS student loan is a loan that is serviced by the Affiliated Computer Services, Inc. It is a company known for outsourcing technology and business solutions. Universities across the country use the ACS student loan services because of the company's reputation for using technology to effectively handle some of the more difficult aspects of loan services.
ACS student loans allow students to make payments online, instantly be able to see the status of an account, make changes to personal details such as name and address, and also to be able to receive email notifications when a payment has been processed.
Many different programs for financial aid fall under the heading of an ACS student loan. One of the major ACS student loan groups is the Campus Based Student Loan Program (CBSL), which includes Federal Perkins Loans, Nursing Student Loans (NSL), and Institutional Loan Programs, among others. Another major group of educational loans handled by ACS is the Federal Family Education Loan Program (FFEL), which includes the Stafford (GSL) Loans, PLUS loans to parents of students, and loan consolidation services. ACS also has the ability to handle many other groups of educational loans donated by a variety of private companies.
For those who do not already have an ACS student loan, applications and guidelines for different financial aid options are available online. The ACS website gives a clear example of how to fill out a Free Application for Federal Student Aid (FAFSA) form, and demonstrates what the results mean in terms of your eligibility for financial aid. Furthermore, applications for both Stafford and PLUS loans for parents can be found on the ACS website, and can be completed and sent in online.
If you are the holder of an ACS student loan already, you may be interested in knowing about the benefits of student loan consolidation. The ACS website provides information and application forms that could help you lock in a lower rate and reduce your monthly payment amount.
Some other tools that can help you with your ACS student loan are a repayment calculator, guidelines from the IRS about how to use your student loans for tax relief, and a glossary of important student loan-related terms.
All in all, an ACS student loan is one that will give the borrower plenty of ease and flexibility when it comes to loan servicing from application to repayment and consolidation. ACS works with a number of universities across the United States, including the University of Pittsburgh and the University of Vermont. Even if your specific university does not offer student loans handled by ACS, their website is a treasure trove of helpful tools and information, and well worth a look.
ACS student loans allow students to make payments online, instantly be able to see the status of an account, make changes to personal details such as name and address, and also to be able to receive email notifications when a payment has been processed.
Many different programs for financial aid fall under the heading of an ACS student loan. One of the major ACS student loan groups is the Campus Based Student Loan Program (CBSL), which includes Federal Perkins Loans, Nursing Student Loans (NSL), and Institutional Loan Programs, among others. Another major group of educational loans handled by ACS is the Federal Family Education Loan Program (FFEL), which includes the Stafford (GSL) Loans, PLUS loans to parents of students, and loan consolidation services. ACS also has the ability to handle many other groups of educational loans donated by a variety of private companies.
For those who do not already have an ACS student loan, applications and guidelines for different financial aid options are available online. The ACS website gives a clear example of how to fill out a Free Application for Federal Student Aid (FAFSA) form, and demonstrates what the results mean in terms of your eligibility for financial aid. Furthermore, applications for both Stafford and PLUS loans for parents can be found on the ACS website, and can be completed and sent in online.
If you are the holder of an ACS student loan already, you may be interested in knowing about the benefits of student loan consolidation. The ACS website provides information and application forms that could help you lock in a lower rate and reduce your monthly payment amount.
Some other tools that can help you with your ACS student loan are a repayment calculator, guidelines from the IRS about how to use your student loans for tax relief, and a glossary of important student loan-related terms.
All in all, an ACS student loan is one that will give the borrower plenty of ease and flexibility when it comes to loan servicing from application to repayment and consolidation. ACS works with a number of universities across the United States, including the University of Pittsburgh and the University of Vermont. Even if your specific university does not offer student loans handled by ACS, their website is a treasure trove of helpful tools and information, and well worth a look.
Sunday, February 17, 2013
How Auto Loans With Bad Credit Are So Accessible For Everyone
When seeking a loan, applicants with poor credit histories usually fret over the chances of getting the thumbs up. But even a rock bottom credit score is not enough to see an application rejected. The reason why it is possible to get auto loans with bad credit scores is that credit histories are now often ignored completely.
The development of no credit check approval processes now means that even an applicant with a score of 350 can be approved, as long as the other key elements are in order. Bad credit usually means the interest rates are raised, and perhaps the size of the loan is reduced.
However, the important thing is that approval of the auto loan is made almost certain, thus ensuring a route towards much-needed finances to purchase your new car.
The Advantages of No Credit Checks
The availability of loans through no credit check procedures benefits practically everyone. As far as the borrower is concerned, the stress that can come with seeking an auto loan with bad credit can be by-passed. As long as their income and debt-to-income ratio are in order, approval is practically assured, so there are no sleepless nights.
As far as the lender is concerned, no credit check approval is a route to greater profits, with the risk from waiving their right to check entitling them to charge higher rates of interest. Of course, there is also the higher chance of loan default, but by and large, borrowers stick to their repayment schedule to help improve their own credit ratings anyway.
And in any case, the greater the number of auto loans approved by the lender, the greater the number of sources of income there are from which to increase revenue. So, from both perspectives, there are benefits to be enjoyed.
Loans to Consider
The two main types of loans available on the market are secured and unsecured loans. It is no secret that unsecured loans are generally harder to get approval on. The good news is that in applying for an auto loan with bad credit, there is already collateral provided in the form of the car being purchased.
This security makes the loan safe to a certain extent, and explains why, even with no credit check, approval is still forthcoming from lenders. They have something with which to be compensated in the event that the borrower defaults on the loan.
However, there is still the need to prove that repayments on the auto loan are affordable, and that the source of income can be relied upon. These two factors override the car as collateral, since lenders are happier to receive repayments on schedule rather than have to convert collateral into cash.
Finding the Best Loan
The fact that the best loan deals are available online is no great secret to anyone, so applying for an auto loan with bad credit online makes perfect sense. The range of loan options is actually quite extensive, ensuring there are terms to suit every financial situation. Comparison websites make the task of sifting through the multitude of offers simple and quick.
But that is not to say that traditional lenders should be ignored. If your relationship with your bank is good, then they may be able to provide a special deal. However, a no credit check approval process is not common. The advantage is that your bank already knows your financial situation and character already.
And remember, when securing a loan of any type online, not just an auto loan, it is important to check out the reputation of the lender on the Better Business Bureau website before agreeing to anything.
The development of no credit check approval processes now means that even an applicant with a score of 350 can be approved, as long as the other key elements are in order. Bad credit usually means the interest rates are raised, and perhaps the size of the loan is reduced.
However, the important thing is that approval of the auto loan is made almost certain, thus ensuring a route towards much-needed finances to purchase your new car.
The Advantages of No Credit Checks
The availability of loans through no credit check procedures benefits practically everyone. As far as the borrower is concerned, the stress that can come with seeking an auto loan with bad credit can be by-passed. As long as their income and debt-to-income ratio are in order, approval is practically assured, so there are no sleepless nights.
As far as the lender is concerned, no credit check approval is a route to greater profits, with the risk from waiving their right to check entitling them to charge higher rates of interest. Of course, there is also the higher chance of loan default, but by and large, borrowers stick to their repayment schedule to help improve their own credit ratings anyway.
And in any case, the greater the number of auto loans approved by the lender, the greater the number of sources of income there are from which to increase revenue. So, from both perspectives, there are benefits to be enjoyed.
Loans to Consider
The two main types of loans available on the market are secured and unsecured loans. It is no secret that unsecured loans are generally harder to get approval on. The good news is that in applying for an auto loan with bad credit, there is already collateral provided in the form of the car being purchased.
This security makes the loan safe to a certain extent, and explains why, even with no credit check, approval is still forthcoming from lenders. They have something with which to be compensated in the event that the borrower defaults on the loan.
However, there is still the need to prove that repayments on the auto loan are affordable, and that the source of income can be relied upon. These two factors override the car as collateral, since lenders are happier to receive repayments on schedule rather than have to convert collateral into cash.
Finding the Best Loan
The fact that the best loan deals are available online is no great secret to anyone, so applying for an auto loan with bad credit online makes perfect sense. The range of loan options is actually quite extensive, ensuring there are terms to suit every financial situation. Comparison websites make the task of sifting through the multitude of offers simple and quick.
But that is not to say that traditional lenders should be ignored. If your relationship with your bank is good, then they may be able to provide a special deal. However, a no credit check approval process is not common. The advantage is that your bank already knows your financial situation and character already.
And remember, when securing a loan of any type online, not just an auto loan, it is important to check out the reputation of the lender on the Better Business Bureau website before agreeing to anything.
Saturday, February 16, 2013
Middle East Finance by the Best Investment Banks in Dubai & UAE
The choice of the investment bank for putting aside the capital is a serious resolution. There are copious numbers of investment banks in Dubai and the Middle East to select from, and when you are finally selecting the one, there are several things which you have to think about prior to taking the final resolution. There are foreign as well as local banks in the Middle East which are all set to take care of your capital, or let you temporarily use the finances. The Middle East finance is on the boosting stage and there are always opportunities to make private equity in Middle East so that your finance can not only stay saved, but also they start enhancing as well.
The Middle East is the paradise for the investors who want to have their money increased twice or thrice as you get useful guidelines from the official personnel of the investments banks and you can see the investment banks in almost every state or country of the Middle East.
The National Bank of Egypt proposes sale able promissory notes such as deposits, loan, credit cards, investment in real estate, etc. The National Bank of Qatar offer marketable Islamic bank actions like asset administration actions like riches management, account administration, portfolio management along with almost the items available in the National Bank of Egypt.
In the same way, the National Bank of Dubai offers investing promissory notes which includes investment advice-giving, life and commodity insurances, etc. The National Bank of Oman presents the marketable services which take in the deposits, loan and mortgage, credit cards, investment suggestions, accounts and asset management, brokerage and some others.
A brokerage company is a monetary organization that works as a stock agent. Brokerage companies serve the customers who are interested in making the investment in trade public stocks. In Kuwait, the largest brokerage company is Arab Financial Brokers which is world renowned. This company gives Forex trading, micro trading, Islamic investment and online brokerage to the clients globally. The purpose of establishing this company was to handle the growing number of currency and potential trading needs in the Middle East region and AFB has proven itself to the best of the expectations with unparalleled service and viable terms and conditions, and this is the reason why AFB has built up a strong association with its clients which his rising with the passage of time. AFB's administration staff has totally changed the face of brokerage companies.
As you can see the presence of the investment banks all around the Middle East like Egypt, Qatar, Dubai, Oman, Kuwait and others, so finding and making the Middle East finance profitable is quite easy and you just need to make a good research for this purpose. Dubai is certainly a jewel of the crown for the UAE and the Middle East and the investment banks in Dubai really so wonders for their clientele with the best services and helps them build the private equity in Middle East with an easy and money making process.
The Middle East is the paradise for the investors who want to have their money increased twice or thrice as you get useful guidelines from the official personnel of the investments banks and you can see the investment banks in almost every state or country of the Middle East.
The National Bank of Egypt proposes sale able promissory notes such as deposits, loan, credit cards, investment in real estate, etc. The National Bank of Qatar offer marketable Islamic bank actions like asset administration actions like riches management, account administration, portfolio management along with almost the items available in the National Bank of Egypt.
In the same way, the National Bank of Dubai offers investing promissory notes which includes investment advice-giving, life and commodity insurances, etc. The National Bank of Oman presents the marketable services which take in the deposits, loan and mortgage, credit cards, investment suggestions, accounts and asset management, brokerage and some others.
A brokerage company is a monetary organization that works as a stock agent. Brokerage companies serve the customers who are interested in making the investment in trade public stocks. In Kuwait, the largest brokerage company is Arab Financial Brokers which is world renowned. This company gives Forex trading, micro trading, Islamic investment and online brokerage to the clients globally. The purpose of establishing this company was to handle the growing number of currency and potential trading needs in the Middle East region and AFB has proven itself to the best of the expectations with unparalleled service and viable terms and conditions, and this is the reason why AFB has built up a strong association with its clients which his rising with the passage of time. AFB's administration staff has totally changed the face of brokerage companies.
As you can see the presence of the investment banks all around the Middle East like Egypt, Qatar, Dubai, Oman, Kuwait and others, so finding and making the Middle East finance profitable is quite easy and you just need to make a good research for this purpose. Dubai is certainly a jewel of the crown for the UAE and the Middle East and the investment banks in Dubai really so wonders for their clientele with the best services and helps them build the private equity in Middle East with an easy and money making process.
Friday, February 15, 2013
Small Business Credit: Your D&b Number Explained
When growing your small business, you'll face many operational challenges: a bigger space, more employees, higher revenue, and greater cash flow. You will also need business credit. When you apply to a bank or other lender for your first company credit card or loan, you'll be asked for your company's DUNS number.
What's a DUNS number? In 1963, the Dun & Bradstreet Corporationtoday known as the D&B Corporationintroduced the Data Universal Numbering System, or D-U-N-S Number, as a way to identify businesses numerically for data-processing purposes. A DUNS number is a unique nine-digit sequence that is recognized as the universal standard for identifying and evaluating the financial and credit performance of over 100 million businesses worldwide.
What is the D&B Corporation? The company was founded in New York City in 1841 as the Mercantile Agency. It was the world's first business information provider. The Mercantile Agency evolved into the R.G. Dun & Company, which merged with the rival John M. Bradstreet Company in 1933. The current D&B Corporation was formed upon the separation of Moody's Corporation on September 30, 2000.
D&B is the world's number one provider of business credit information. Other providers include Experianwhose databases hold information about the credit status of about 35 million businesses around the worldEquifax, and TransUnion. As it grows, your company will almost certainly be represented in their databases.
Who uses DUNS numbers? The number is how lenders identify your business and access your business credit profile. The U.S. government and many major corporations require their suppliers and contractors to have a DUNS number.
How do you get a DUNS number? It's free, and you get one by completing the online DUNS application. It takes approximately one week before the information is reflected in the D&B website. The information you provide to get your DUNS number includes:
Organization name, address, and name of the CEO or owner.
Legal structure of the organization (corporation, partnership, proprietorship).
Year the organization was founded.
Type of business.
Total number of employees (full and part time).
What type of credit ratings does D&B provide? Once your company is on the D&B radar screen, it will be given a variety of ratings. They include:
D&B Rating. This is a scale that assigns your company to a category based on revenues, and provides a composite credit appraisal number of one (high) to four (limited, meaning not good).
D&B PAYDEX Score. This 100-point scale rates your company based on how quickly you pay your bills.
Financial Stress Score. This score predicts the possibility that your company will cease business without paying all creditors in full, reorganize, or obtain relief from creditors under state/federal law during the next twelve months.
U.S. Commercial Credit Score. This predicts the likelihood that your company will pay in a delinquent manner (over 90 days past terms) during the next twelve months. The highest score is 670, putting you in credit score class #1. The lowest score is 101, which is credit score class #5. D&B also provides the Incidence of Delinquent Payment, which shows the percentage of firms that paid in a delinquent manner (over 90 days past terms) over the past year.
Can you check your D&B credit ratings? Yes. You can manage your D&B profile online, and you should check your profile periodically. Your good credit is an asset to your business, and it's important to challenge and correct any erroneous information as quickly as possible. It's also important to make sure that your good credit activitypaying vendors and lenders on timeis included in your credit record.
2008 Thomas Hauck Communications Services
What's a DUNS number? In 1963, the Dun & Bradstreet Corporationtoday known as the D&B Corporationintroduced the Data Universal Numbering System, or D-U-N-S Number, as a way to identify businesses numerically for data-processing purposes. A DUNS number is a unique nine-digit sequence that is recognized as the universal standard for identifying and evaluating the financial and credit performance of over 100 million businesses worldwide.
What is the D&B Corporation? The company was founded in New York City in 1841 as the Mercantile Agency. It was the world's first business information provider. The Mercantile Agency evolved into the R.G. Dun & Company, which merged with the rival John M. Bradstreet Company in 1933. The current D&B Corporation was formed upon the separation of Moody's Corporation on September 30, 2000.
D&B is the world's number one provider of business credit information. Other providers include Experianwhose databases hold information about the credit status of about 35 million businesses around the worldEquifax, and TransUnion. As it grows, your company will almost certainly be represented in their databases.
Who uses DUNS numbers? The number is how lenders identify your business and access your business credit profile. The U.S. government and many major corporations require their suppliers and contractors to have a DUNS number.
How do you get a DUNS number? It's free, and you get one by completing the online DUNS application. It takes approximately one week before the information is reflected in the D&B website. The information you provide to get your DUNS number includes:
Organization name, address, and name of the CEO or owner.
Legal structure of the organization (corporation, partnership, proprietorship).
Year the organization was founded.
Type of business.
Total number of employees (full and part time).
What type of credit ratings does D&B provide? Once your company is on the D&B radar screen, it will be given a variety of ratings. They include:
D&B Rating. This is a scale that assigns your company to a category based on revenues, and provides a composite credit appraisal number of one (high) to four (limited, meaning not good).
D&B PAYDEX Score. This 100-point scale rates your company based on how quickly you pay your bills.
Financial Stress Score. This score predicts the possibility that your company will cease business without paying all creditors in full, reorganize, or obtain relief from creditors under state/federal law during the next twelve months.
U.S. Commercial Credit Score. This predicts the likelihood that your company will pay in a delinquent manner (over 90 days past terms) during the next twelve months. The highest score is 670, putting you in credit score class #1. The lowest score is 101, which is credit score class #5. D&B also provides the Incidence of Delinquent Payment, which shows the percentage of firms that paid in a delinquent manner (over 90 days past terms) over the past year.
Can you check your D&B credit ratings? Yes. You can manage your D&B profile online, and you should check your profile periodically. Your good credit is an asset to your business, and it's important to challenge and correct any erroneous information as quickly as possible. It's also important to make sure that your good credit activitypaying vendors and lenders on timeis included in your credit record.
2008 Thomas Hauck Communications Services
Thursday, February 14, 2013
Difference Between Innocent Spouse Relief And Injured Spouse Relief
There are several primary differences between innocent spouse relief and injured spouse relief. An innocent spouse can get relief from the IRS when their spouse makes errors and false reports on a join tax return. On the other hand, an injured spouse is able to receive relief when the IRS holds a joint refund as a way of satisfying debts of their spouse. There are definite benefits to be aware of. While you may not qualify for one, there is a good chance that you could take full advantage of the other.
Injured Spouse Relief
If you believe that you qualify for injured spouse relief you need to follow the steps outlined by the IRS.
1. Make sure that you actually filed a joint return. If you did not, you are unable to use injured spouse relief as a way of bettering your situation.
2. Find out of the IRS has withheld a tax refund in the past, or plans to do so in the future, because your spouse has missed payments on items such as student loans or child support. If you are unsure of where you stand, do not hesitate to contact the IRS for further information on your account.
3. Download Form 8379 from the IRS website. This is the form that you need if you are going to apply for injured spouse relief.
4. On part two of the form, you will need to allocate all income, deductions, and credits between you and your spouse. This is the information that the IRS needs in order to give you the portion of the refund that you deserve.
5. Send the completed form to the IRS. You can send this along with your completed return, or separately if you have already filed.
Innocent Spouse Relief
Those who are requesting innocent spouse relief should follow these steps.
1. Did you file a joint return? This is the number one qualifier. If you didn't, you are unable to request innocent spouse relief.
2. Make sure that your spouse improperly and inaccurately reported items, which in turn led to an understatement.
3. Did you know that your spouse was including erroneous information when you signed the return? If so, you are not going to qualify for innocent spouse relief. Only those who were not aware of these intentional errors are eligible.
4. Download Form 8857 from the IRS website. This form needs to be completed and forwarded to the IRS immediately. Make sure you include honest, accurate information.
Hire a Professional
Even though it may seem cut and dry, there are times when you may be confused about whether you should file for innocent spouse relief or injured spouse relief. Rather than guess and hope you are right, hire a tax professional to answer your questions and guide you through the process.
All in all, there are several key differences between innocent spouse relief and injured spouse relief. Are you in position to take advantage of either one of these relief options?
Injured Spouse Relief
If you believe that you qualify for injured spouse relief you need to follow the steps outlined by the IRS.
1. Make sure that you actually filed a joint return. If you did not, you are unable to use injured spouse relief as a way of bettering your situation.
2. Find out of the IRS has withheld a tax refund in the past, or plans to do so in the future, because your spouse has missed payments on items such as student loans or child support. If you are unsure of where you stand, do not hesitate to contact the IRS for further information on your account.
3. Download Form 8379 from the IRS website. This is the form that you need if you are going to apply for injured spouse relief.
4. On part two of the form, you will need to allocate all income, deductions, and credits between you and your spouse. This is the information that the IRS needs in order to give you the portion of the refund that you deserve.
5. Send the completed form to the IRS. You can send this along with your completed return, or separately if you have already filed.
Innocent Spouse Relief
Those who are requesting innocent spouse relief should follow these steps.
1. Did you file a joint return? This is the number one qualifier. If you didn't, you are unable to request innocent spouse relief.
2. Make sure that your spouse improperly and inaccurately reported items, which in turn led to an understatement.
3. Did you know that your spouse was including erroneous information when you signed the return? If so, you are not going to qualify for innocent spouse relief. Only those who were not aware of these intentional errors are eligible.
4. Download Form 8857 from the IRS website. This form needs to be completed and forwarded to the IRS immediately. Make sure you include honest, accurate information.
Hire a Professional
Even though it may seem cut and dry, there are times when you may be confused about whether you should file for innocent spouse relief or injured spouse relief. Rather than guess and hope you are right, hire a tax professional to answer your questions and guide you through the process.
All in all, there are several key differences between innocent spouse relief and injured spouse relief. Are you in position to take advantage of either one of these relief options?
Stock Investment In Nigeria: Its Process And Benefits
Introduction
Securities are created and issued by corporate bodies and governments, which are in need of funds to finance expansion or development projects. For instance, Wazobia Plc, a manufacturing concern needs to expand its facilities to accommodate present and anticipated consumer demand as well as replace aging or obsolete equipments. It is however, short of internally generated funds (retained earnings) to undertake the projects require long gestation and payback periods, money market facilities which have short tenure would be inappropriate funding sources. The company would be left with one possible option, that is, to access the capital market if it meets the requirements for entry. This could be done by issuing shares and/or debt instruments. (Securities and Exchange Commission, 1999). Thus, capital market is a segment of financial market that is responsible for mobilizing and channelling long term funds into productive investment such as fixed assets. The investments in capital market are at longer period of time, which are held for a minimum of five years.
Moreover, the term securities consist of stocks and bonds. It is not possible in
this paper to digest all aspect of securities. Therefore, this paper shall limit itself to stocks only (i.e. shares).
Theoretical Framework
Fischer and Jordan (2005) see investment as a commitment of funds made in the expectation of some positive rate of return. If the investment is properly undertaken, the return will be commensurate with the risk the investor assumes.
Similarly, an investment is the current commitment of money or other resources in the expectation of reaping future benefits. For example, an individual might purchase shares of stock anticipating that the future proceeds from the shares
will justify both the time that her money is tied up as well as the risk of the investment. You sacrifice something of value now, expecting to benefit from that sacrifice later. (Bodie, Kane, and Marcus, 1998, p. 2).
Distinction between real assets and financial assets
According to Bodie, Kane, & Marcus (1998) real assets are assets used to produce goods and services. In contrast to such real assets are financial assets, such as stocks and bonds. Such securities are no more than sheets of paper (or entries in a computer) Financial assets are claims to the income generated by real assets (or claims on income from the government). If we cannot own our own auto plant, we can still buy shares in General Motors or Toyota and, thereby, share in the income derived from the production of automobiles.
Definition of Stock
In simple terms shares is ownership in share of a corporation. According to Ahmed (2008) securities as stocks and bonds. According to him, a stock represents a share, or percentage, in a corporation's profits and assets. By purchasing stock an investor is buying a percentage of ownership in a company.
Different Types of Stock
There are two main types of stock or shares, namely; ordinary shares and preference shares. Ordinary shares according to Nwiwu, Ya'u, Ezeocha, Ezima and Uzoigwe (2007) this form that part of capital structure of the business contributed by the common stock holders .For a new company it is called venture capital but in the old companies it is called equity share capital.
Ordinary or equity shareholders ordinarily own the business, so all reserves belong to them. They have the right to votes in the company. The shares are non- redeemable even though transferable. However, they have no fixed rate of dividend since rate depends on the level of profitability, company liquidity and management discretion. On the other hand, Preference shares are the hybrid or bat of financing because they exhibit the tendencies of both equity and debt at the same time. They have a fixed percentage dividend before any dividend is paid to the ordinary shareholders.
Share Certificate
Nwaiwu (2004) when shares are allotted to the investor a note will be sent indicating the number of shares allotted. After some period a share certificate will be issued. This certificate is a security, a proof of ownership of the shares in the company. If in future the shareholder wishes to sell the shares, the share certificate must be surrendered to a stockbroker who will forward it to the company's registrar. Nigerian Investments and Securities Law Reports (2004) pointed out that securities in the market are available in either of the following two (2) forms:
i. In certificate form; and
ii. In dematerialized form
When a security is presented in a certificate form, the selling agent needs to verify the signature of the holder and the validity of the presented certificate(s) with the Registrar to the company, after which it could be deposited for sale or any other form of transfer in dematerialized form into the account of the beneficial owner held with the CSCS. Consequently, any subsequent sale or transfer of these securities can validly be undertaken without any need to revert to the Registrar. It therefore follows that securities held in the CSCS account of any holder are deemed to have undergone the necessary verification and confirmation with the Registrars and therefore the holder is rightfully accepted as the true beneficial owner of the securities reflected in his account with CSCS. Thereafter, the only proof of ownership of the said securities that is available to the beneficial owner is the CSCS statement of account issued to him.
Benefits of Investing in Shares
According to Kofa (2004) there are numerous benefits accruing to a shareholder who invests in shares. Such benefits include:
i) Return on investment by way of dividend payment (share of profit by the company on each share owned by the shareholder. This of course depends on the number of shares held by the shareholder. The dividend declared by the company's Directors must however be approved at the company's Annual General Meeting (AGM).
ii) Bonus issue, this is an additional share given to shareholders based on the number of shares owned by each shareholder free of charge at a ratio approved by the Board of Directors/Management and ratified at the company's AGM.
iii) Capital appreciation; this is an increase of share price over time. The value of company share increases due to performance and demand/supply factors. That is, for example, unit price of share purchased today at N10.00 could be N20.00 one year after, due to market forces.
iv) It can be used for security/collateral for loan purposes. Share certificates or statements are acceptable as good collateral for loans by banks and other financial institutions.
v) Pressing immediate needs could be met without seeking any bank/individual financial assistance by disposition of shares.
Risks associated with stock investment
Elakama (2004) emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing.
Similarly, Securities and Exchange Commission (1999) like other forms of investments, there are risk/cost associated with investing in the capital market. There are also obligations on issuers of securities. The risk to investors includes possible unfavourable rate of return owing to depreciation in market value and/or nonpayment of dividends. It could also involve possible loss of investment should a company go burst.
Nature of capital market
At this point, it is important to recognise the nature of capital market. Sulaiman (1999) defines capital market as a network of interrelated institutions governed by operational guidelines which permit the sale of equity and long term debt
Elements of the capital market
There are three identifiable features of a capital market. These are: the instruments; the market place; and the participants.
a) Financial instruments
Financial instruments are the investment products, created to ensure the smooth and easy transfer of funds in the capital market. These instruments, generally known as securities are financial assets, which represent either debt or ownership. The instruments have various features depending on their type between the primary and secondary markets is the fact that proceeds of sale of primary securities go to the issuer (company or government) whereas in the secondary market, proceeds go to the investor.
b) The market place
Securities and Exchange Commission (1999) the capital market is divided into two separate but closely-related segments known as the primary and secondary markets. Primary Market a forum where new shares are offered to both existing shareholders and general public for purchase. Primary market offers can either be made directly by the company to increase its paid-up capital or through privatization of Government holdings, technically called divestment of government shares. On the other hand, Secondary Market is a market where existing shares are traded (sold and bought). Trading of shares at secondary market takes place on the floor of The Nigerian stock exchange. The Stockbrokers buy and sell shares on behalf of their respective clients. Essentially, the Stockbrokers are the dealing member firms licensed by both the Nigeria Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) to deal on shares and offer other services to the investing public. (Kofa, 2004, p.28).
c) Participants in the Market
Securities and Exchange Commission (1999) to facilitate the saving and investment process in any economy, financial intermediaries must exist and in good number. The financial intermediary is essentially a middleman who pools funds form savers and passes on such funds to those in need of them. An intermediary is a specialist) professional) in his line of business and thus, heavily relied upon by his clients to make good investment judgement on their behalf or provide professional advisory services to them. The capital market has a wide array of intermediaries performing various intermediation functions. They include:
i) Issuing Houses: These are institutions which assist corporate bodies and governments to raise long-term funds by packaging security issues for subscription on their behalf. The issuing house by this function plays a central role in the issuance process, and in industrial development. The issuing house as the principal agent of and adviser to the issuer has the responsibility of advising its clients on the most appropriate instrument and method of sourcing the required capital. It also has the responsibility of assembling and coordination all other specialists required in the issue process, ensuring that statutory and all other requirements are met, and that the issue is properly packaged and successfully concluded. Packaging would include pricing of the securities, preparation of the prospectus and other documents, as well as marketing and distribution of the securities.
ii) Stockbrokers/dealers: These are major players in the secondary market. Stockbrokers are the only persons permitted to transact business on the floor of a stock exchange or on the over-the-counter market. A stockbroker, therefore, stands between the seller and buyer of registered securities, making it possible for both parties to realize their desire to buy or sell securities. To act as an agent of the public or deal in his own account, a stockbroker/dealer must be registered by the statutory regulatory agency (Securities and Exchange Commission) and licensed by the stock exchange. As an agent of his client, the stockbroker is under obligations to transact business for him at the best price obtainable in the market.
iii) Investment Advisers: These are institutions/persons registered by the statutory regulatory agency to provide investment advisory services to their client for a fee. Investment advisory services are incidental to stock broking and issuing house business.
iv) Portfolio Managers: These are institutions registered by the statutory regulatory agency to manage the portfolio of clients. Portfolio management entails the receipt of funds, sometimes very large sums, to be invested by the portfolio manager. Most often, the choice of investments are left to the manger who however must send periodic investment statements, to his client. In exercising his discretion, the manager must at all times, consider the best interest of his clients. Both investments advisory and portfolio management services require extensive economic/market analyses to guide investment decisions and advice to clients.
v) Registrars: These are institutions employed by companies to keep comprehensive registers of their members (shareholders) and creditors. In addition, they arrange annual general and extra-ordinary meetings for their clients; distribute stock/share certificates, annual reports, dividend warrants and notices of shareholders' meetings. In cases of issue oversubscription, registrars dispatch surplus monies to subscribers.
vi) Trustees: These are important participants in debt issues and collective investment schemes such as unit trust. The trustee protects the interest of investors in debt instruments by monitoring and ensuring the fulfillment of the term of the trust deed.
vii) Receiving Agents: These are banks and stockbroking firms appointed by the issuing house to serve as centers for the distribution of offer applications forms, as well as for the receipt of subscriptions monies on behalf of the issuing house, for a fee.
viii) Receiving Bankers: These are banks designated by an issuer to receive proceeds of an issue on its behalf.
ix) Solicitors: These are law firms which either represent the issue or the issuer. In practice, two solicitors are required in a public issue of securities. These are the solicitor to the company (issuer) and the solicitor to the issue. The solicitor to the company among other things ensures that the memorandum and articles of association of the company are in consonance with legal requirements of a public company, and effect amendments where necessary. The solicitor would examine issue relating to the authorized capital, ensuring that it can accommodate the issue being proposed. Where a debenture stock is to be floated, the solicitor would make sure that the company has the borrowing power to do so. Generally, it is the duty of the solicitor to the company to ensure that the company complies with the provisions of the corporate law of the country (e.g. the Companies and Allied Matters Decree 1990 in Nigeria).
x) Auditors: These are the existing auditors of the company. In their capacity as the auditors, they provide historical perspective on the accounts of the company for inclusion in the prospectus.
xi) Reporting Accountants: These are firms of accountants which provide independent assessment of the accounts of the company. They review management forecast and examine the reasonableness or otherwise of such forecast. Based on their findings, the reporting accountants can recommend adjustments to the management forecast. They also prepare statement of indebtedness of the company, among other things.
Prerequisites to successful investing in stock
a) Selecting a Broker
According to Fischer and Jordan (2005) the investor's first step in establishing a satisfactory relationship with a broker is to choose a firm that is suitable for his needs and to select a representative of the firm with whom he can work. In practice separating the two choices is hard, for if one has chosen a satisfactory firm but is unhappy with the representative, it is embarrassing to shift one's account to another representative within the same firm. The brokerage firm should be a well-known and long-established institution. In selecting a firm an investor can ask for recommendations from his bank or from friends whose opinions he trusts.
b) Opening a Brokerage Account
This is an investment account, which is opened with the CSCS through a stockbroker. When this account is opened a client is issued with two numbers. The first number is called 'CSCS No.'. It is computer-generated numbers allocated to a new shareholder. It is unique to each stock-broking firm. Although a shareholder can have as many accounts as the number of stockbroking firms he uses. Furthermore, CSCS No is alphanumeric which is used if you have to fill in public offers if you desire shares allotted to you to be credited to your account.
Investors Account No. is numeric which is used internally on the floor for trading. In other word, investor's No. is the CHN represents the Clearing House Number assigned to every shareholder at the first point of entry into the CSCS system. He/She must have completed the CSCS -- R005 Shareholders Particulars Form. They are to provide the same CHN to all subsequent stockbroking firms they may have transactions with for ease of reference.
Other Prerequisites to successful investing in stock include opening a Bank Account, access to Post office Box (P. O. Box), access to Phone and active E-mail Address.
Process of acquiring shares
According to Nigerian Investments and Securities Law Report [NISLR] (2004) shares could be acquired by six (6) main modes;
1) Public offer;
2) Rights offer;
3) Bonus;
4) Nominal transfer; i.e. Transfer of share by way of gift.
5) Transmission from a dead relation or friends or collective investments or investments previously held under a corporate name for a beneficiary; and lastly
6) By purchase on the secondary market.
In general, a prospective investor who wishes to purchase shares on the secondary market is expected to approach a stockbroker such as Newdevco with a request to purchase or to invest in shares at a secondary market. In response, the stockbroker asks the prospective client which stock/shares he/she intends to purchase. Where the client has a selected stock in mind, the stockbroker executes the order according to the expressed need or interest of the client/customer. (Kofa, 2004).
Kofa (2004) added that in a situation where a client does not know which stock/share to buy, the stockbroker explains and advises the client accordingly in detail the shares to invest in. Consequently the stockbroker gives the client the necessary share transfer forms and Central Security Clearing System (CSCS) (particulars of shareholder) for completion. These documents are used to lodge the shares at Registrars Department of the company and also to open the new CSCS account for the client. The shares requested by client to be purchased are normally paid for by Bank Draft or physical clash to a stockbroker, who will in turn given an official receipt for the draft value or cash collected. Thereafter, the stockbroker purchases the shares as requested by client. Whenever the transactions are fully consummated, the stockbroker shall forward the CSCS statement of stock position to the client as evidence of ownership of such shares.
Benefits of Central Security Clearing System (CSCS)
Nigerian Stock Exchange (2008) states the benefits of CSCS to the operation of the Nigerian Stock Exchange as follows:
a) To Investors
Investors statements of stock position are issued every quarter free of charge or on demand for =N=100.00.
Use of stock position as collateral for loan facility after T + 3 settlement cycle i.e. 4 working days. In effect, a statement of stock position is obtainable from CSCS 4 days after transaction.
Investors can speculate more and take advantage of capital appreciation in their investment because of the T+3 settlement cycle.
Reduced risk of loss of certificates.
b) Quoted Companies
Huge cost associated with the production of share certificates for transaction through the secondary market has been significantly reduced.
Before CSCS, a single transaction on a certificate led to the cancellation of the certificate and the issuance of as many as ten (10) certificates depending on allotments made. This is no longer so since few shareholders request for certificates.
Indeed, of the 400,000 shareholders who use CSCS system now, only 2,200 shareholders have requested for certificates to date.
Amalgamation/consolidation of several accounts for a shareholder on the register leading to reduction of cost to the company.
c) Stockbroking Firms
Prompt Inter-member money and stock-settlement are assured.
The problems associated with delivery of shares are minimize
Increased efficiency and profit
Reduction in operational cost.
Disposal of Shares
According to Kofa (2004) a shareholder who wishes to dispose his/her shares is expected to go to a licensed stockbroker only. A Stockbroker is seen as the authorized agent approved by the government to deal in shares, especially in the purchase or sale of shares on behalf of an individual, group or company. The original hare certificates or CSCS statement will be tendered to a Stockbroker who will issue the relevant forms for completion by the shareholder and then forwarded to company Registrars for signature verification. That is, confirm the ownership of the shares in the case of share certificate. However, in the case of CSCS statement, the stockbroker verifies his client's signature. After the confirmation of signature, the share is taken to the floor of, say, the Nigerian Stock Exchange for appropriate disposal. After the disposal contract, a note shall be raised appropriately and the net proceeds is remitted to the shareholder after commissions and statutory charges are deducted as approved by the Nigerian Stock Exchange.
Recent Development in the Nigerian Capital Market
There are two recent developments in the Nigerian Capital Market. First, is the launching the e-dividend payment system which would subsequently solve the problem of unclaimed dividends by the Securities and Exchange Commission (SEC).
According to Olamijulo (2008) the e-dividends payment system refers to the payment of dividend due to shareholders through electronic means into the shareholders' nominated bank accounts. It implies same day clearance for dividend payment. He added that the system would enable shareholders receive their dividends on the same day, thereafter a confirmation letter of the dividend payment would be dispatched by the registrar. The e-dividend payment system would minimise cases of unclaimed dividends, eliminate dividend loss in transit, the forfeiture of dividends in the future and enhance the ability of shareholders to immediately access and utilize the proceeds of their investments.
Secondly, is the launching of e-allotment which will be fully operational from January 1, 2009. Ahmed, (2008) reported that the system is aimed at enabling the achievement of a certificate-less system in the Nigeria capital market.
E-allotment of shares as it is known is a process of direct credit of approved allotment on offers to the CSCS account of shareholders, as against the conventional issuance of share certificates. It is a process which will aid the achievement of certificateless transaction in the Nigerian capital market. (UBA Registrars, 2008)
The e-allotment is introduced as a result of postal services delays, and "the need to reduce costs in printing and dispatch of share certificates as well as to enable all investors in public offers speedily allotted shares."
Conclusions and Recommendations
It can be concluded that in Nigeria, the only obstacle to stock investment is the low level of investors' enlightenment on the benefits of the entire system, which has greatly affected the acceptance level negatively. Therefore, it is recommended that the regulatory agencies like the Nigerian Stock Exchange and Securities and Exchange Commission should continue to enlighten Nigerian especially, using major Nigerian languages on the gains of stock investment.
Securities are created and issued by corporate bodies and governments, which are in need of funds to finance expansion or development projects. For instance, Wazobia Plc, a manufacturing concern needs to expand its facilities to accommodate present and anticipated consumer demand as well as replace aging or obsolete equipments. It is however, short of internally generated funds (retained earnings) to undertake the projects require long gestation and payback periods, money market facilities which have short tenure would be inappropriate funding sources. The company would be left with one possible option, that is, to access the capital market if it meets the requirements for entry. This could be done by issuing shares and/or debt instruments. (Securities and Exchange Commission, 1999). Thus, capital market is a segment of financial market that is responsible for mobilizing and channelling long term funds into productive investment such as fixed assets. The investments in capital market are at longer period of time, which are held for a minimum of five years.
Moreover, the term securities consist of stocks and bonds. It is not possible in
this paper to digest all aspect of securities. Therefore, this paper shall limit itself to stocks only (i.e. shares).
Theoretical Framework
Fischer and Jordan (2005) see investment as a commitment of funds made in the expectation of some positive rate of return. If the investment is properly undertaken, the return will be commensurate with the risk the investor assumes.
Similarly, an investment is the current commitment of money or other resources in the expectation of reaping future benefits. For example, an individual might purchase shares of stock anticipating that the future proceeds from the shares
will justify both the time that her money is tied up as well as the risk of the investment. You sacrifice something of value now, expecting to benefit from that sacrifice later. (Bodie, Kane, and Marcus, 1998, p. 2).
Distinction between real assets and financial assets
According to Bodie, Kane, & Marcus (1998) real assets are assets used to produce goods and services. In contrast to such real assets are financial assets, such as stocks and bonds. Such securities are no more than sheets of paper (or entries in a computer) Financial assets are claims to the income generated by real assets (or claims on income from the government). If we cannot own our own auto plant, we can still buy shares in General Motors or Toyota and, thereby, share in the income derived from the production of automobiles.
Definition of Stock
In simple terms shares is ownership in share of a corporation. According to Ahmed (2008) securities as stocks and bonds. According to him, a stock represents a share, or percentage, in a corporation's profits and assets. By purchasing stock an investor is buying a percentage of ownership in a company.
Different Types of Stock
There are two main types of stock or shares, namely; ordinary shares and preference shares. Ordinary shares according to Nwiwu, Ya'u, Ezeocha, Ezima and Uzoigwe (2007) this form that part of capital structure of the business contributed by the common stock holders .For a new company it is called venture capital but in the old companies it is called equity share capital.
Ordinary or equity shareholders ordinarily own the business, so all reserves belong to them. They have the right to votes in the company. The shares are non- redeemable even though transferable. However, they have no fixed rate of dividend since rate depends on the level of profitability, company liquidity and management discretion. On the other hand, Preference shares are the hybrid or bat of financing because they exhibit the tendencies of both equity and debt at the same time. They have a fixed percentage dividend before any dividend is paid to the ordinary shareholders.
Share Certificate
Nwaiwu (2004) when shares are allotted to the investor a note will be sent indicating the number of shares allotted. After some period a share certificate will be issued. This certificate is a security, a proof of ownership of the shares in the company. If in future the shareholder wishes to sell the shares, the share certificate must be surrendered to a stockbroker who will forward it to the company's registrar. Nigerian Investments and Securities Law Reports (2004) pointed out that securities in the market are available in either of the following two (2) forms:
i. In certificate form; and
ii. In dematerialized form
When a security is presented in a certificate form, the selling agent needs to verify the signature of the holder and the validity of the presented certificate(s) with the Registrar to the company, after which it could be deposited for sale or any other form of transfer in dematerialized form into the account of the beneficial owner held with the CSCS. Consequently, any subsequent sale or transfer of these securities can validly be undertaken without any need to revert to the Registrar. It therefore follows that securities held in the CSCS account of any holder are deemed to have undergone the necessary verification and confirmation with the Registrars and therefore the holder is rightfully accepted as the true beneficial owner of the securities reflected in his account with CSCS. Thereafter, the only proof of ownership of the said securities that is available to the beneficial owner is the CSCS statement of account issued to him.
Benefits of Investing in Shares
According to Kofa (2004) there are numerous benefits accruing to a shareholder who invests in shares. Such benefits include:
i) Return on investment by way of dividend payment (share of profit by the company on each share owned by the shareholder. This of course depends on the number of shares held by the shareholder. The dividend declared by the company's Directors must however be approved at the company's Annual General Meeting (AGM).
ii) Bonus issue, this is an additional share given to shareholders based on the number of shares owned by each shareholder free of charge at a ratio approved by the Board of Directors/Management and ratified at the company's AGM.
iii) Capital appreciation; this is an increase of share price over time. The value of company share increases due to performance and demand/supply factors. That is, for example, unit price of share purchased today at N10.00 could be N20.00 one year after, due to market forces.
iv) It can be used for security/collateral for loan purposes. Share certificates or statements are acceptable as good collateral for loans by banks and other financial institutions.
v) Pressing immediate needs could be met without seeking any bank/individual financial assistance by disposition of shares.
Risks associated with stock investment
Elakama (2004) emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing.
Similarly, Securities and Exchange Commission (1999) like other forms of investments, there are risk/cost associated with investing in the capital market. There are also obligations on issuers of securities. The risk to investors includes possible unfavourable rate of return owing to depreciation in market value and/or nonpayment of dividends. It could also involve possible loss of investment should a company go burst.
Nature of capital market
At this point, it is important to recognise the nature of capital market. Sulaiman (1999) defines capital market as a network of interrelated institutions governed by operational guidelines which permit the sale of equity and long term debt
Elements of the capital market
There are three identifiable features of a capital market. These are: the instruments; the market place; and the participants.
a) Financial instruments
Financial instruments are the investment products, created to ensure the smooth and easy transfer of funds in the capital market. These instruments, generally known as securities are financial assets, which represent either debt or ownership. The instruments have various features depending on their type between the primary and secondary markets is the fact that proceeds of sale of primary securities go to the issuer (company or government) whereas in the secondary market, proceeds go to the investor.
b) The market place
Securities and Exchange Commission (1999) the capital market is divided into two separate but closely-related segments known as the primary and secondary markets. Primary Market a forum where new shares are offered to both existing shareholders and general public for purchase. Primary market offers can either be made directly by the company to increase its paid-up capital or through privatization of Government holdings, technically called divestment of government shares. On the other hand, Secondary Market is a market where existing shares are traded (sold and bought). Trading of shares at secondary market takes place on the floor of The Nigerian stock exchange. The Stockbrokers buy and sell shares on behalf of their respective clients. Essentially, the Stockbrokers are the dealing member firms licensed by both the Nigeria Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) to deal on shares and offer other services to the investing public. (Kofa, 2004, p.28).
c) Participants in the Market
Securities and Exchange Commission (1999) to facilitate the saving and investment process in any economy, financial intermediaries must exist and in good number. The financial intermediary is essentially a middleman who pools funds form savers and passes on such funds to those in need of them. An intermediary is a specialist) professional) in his line of business and thus, heavily relied upon by his clients to make good investment judgement on their behalf or provide professional advisory services to them. The capital market has a wide array of intermediaries performing various intermediation functions. They include:
i) Issuing Houses: These are institutions which assist corporate bodies and governments to raise long-term funds by packaging security issues for subscription on their behalf. The issuing house by this function plays a central role in the issuance process, and in industrial development. The issuing house as the principal agent of and adviser to the issuer has the responsibility of advising its clients on the most appropriate instrument and method of sourcing the required capital. It also has the responsibility of assembling and coordination all other specialists required in the issue process, ensuring that statutory and all other requirements are met, and that the issue is properly packaged and successfully concluded. Packaging would include pricing of the securities, preparation of the prospectus and other documents, as well as marketing and distribution of the securities.
ii) Stockbrokers/dealers: These are major players in the secondary market. Stockbrokers are the only persons permitted to transact business on the floor of a stock exchange or on the over-the-counter market. A stockbroker, therefore, stands between the seller and buyer of registered securities, making it possible for both parties to realize their desire to buy or sell securities. To act as an agent of the public or deal in his own account, a stockbroker/dealer must be registered by the statutory regulatory agency (Securities and Exchange Commission) and licensed by the stock exchange. As an agent of his client, the stockbroker is under obligations to transact business for him at the best price obtainable in the market.
iii) Investment Advisers: These are institutions/persons registered by the statutory regulatory agency to provide investment advisory services to their client for a fee. Investment advisory services are incidental to stock broking and issuing house business.
iv) Portfolio Managers: These are institutions registered by the statutory regulatory agency to manage the portfolio of clients. Portfolio management entails the receipt of funds, sometimes very large sums, to be invested by the portfolio manager. Most often, the choice of investments are left to the manger who however must send periodic investment statements, to his client. In exercising his discretion, the manager must at all times, consider the best interest of his clients. Both investments advisory and portfolio management services require extensive economic/market analyses to guide investment decisions and advice to clients.
v) Registrars: These are institutions employed by companies to keep comprehensive registers of their members (shareholders) and creditors. In addition, they arrange annual general and extra-ordinary meetings for their clients; distribute stock/share certificates, annual reports, dividend warrants and notices of shareholders' meetings. In cases of issue oversubscription, registrars dispatch surplus monies to subscribers.
vi) Trustees: These are important participants in debt issues and collective investment schemes such as unit trust. The trustee protects the interest of investors in debt instruments by monitoring and ensuring the fulfillment of the term of the trust deed.
vii) Receiving Agents: These are banks and stockbroking firms appointed by the issuing house to serve as centers for the distribution of offer applications forms, as well as for the receipt of subscriptions monies on behalf of the issuing house, for a fee.
viii) Receiving Bankers: These are banks designated by an issuer to receive proceeds of an issue on its behalf.
ix) Solicitors: These are law firms which either represent the issue or the issuer. In practice, two solicitors are required in a public issue of securities. These are the solicitor to the company (issuer) and the solicitor to the issue. The solicitor to the company among other things ensures that the memorandum and articles of association of the company are in consonance with legal requirements of a public company, and effect amendments where necessary. The solicitor would examine issue relating to the authorized capital, ensuring that it can accommodate the issue being proposed. Where a debenture stock is to be floated, the solicitor would make sure that the company has the borrowing power to do so. Generally, it is the duty of the solicitor to the company to ensure that the company complies with the provisions of the corporate law of the country (e.g. the Companies and Allied Matters Decree 1990 in Nigeria).
x) Auditors: These are the existing auditors of the company. In their capacity as the auditors, they provide historical perspective on the accounts of the company for inclusion in the prospectus.
xi) Reporting Accountants: These are firms of accountants which provide independent assessment of the accounts of the company. They review management forecast and examine the reasonableness or otherwise of such forecast. Based on their findings, the reporting accountants can recommend adjustments to the management forecast. They also prepare statement of indebtedness of the company, among other things.
Prerequisites to successful investing in stock
a) Selecting a Broker
According to Fischer and Jordan (2005) the investor's first step in establishing a satisfactory relationship with a broker is to choose a firm that is suitable for his needs and to select a representative of the firm with whom he can work. In practice separating the two choices is hard, for if one has chosen a satisfactory firm but is unhappy with the representative, it is embarrassing to shift one's account to another representative within the same firm. The brokerage firm should be a well-known and long-established institution. In selecting a firm an investor can ask for recommendations from his bank or from friends whose opinions he trusts.
b) Opening a Brokerage Account
This is an investment account, which is opened with the CSCS through a stockbroker. When this account is opened a client is issued with two numbers. The first number is called 'CSCS No.'. It is computer-generated numbers allocated to a new shareholder. It is unique to each stock-broking firm. Although a shareholder can have as many accounts as the number of stockbroking firms he uses. Furthermore, CSCS No is alphanumeric which is used if you have to fill in public offers if you desire shares allotted to you to be credited to your account.
Investors Account No. is numeric which is used internally on the floor for trading. In other word, investor's No. is the CHN represents the Clearing House Number assigned to every shareholder at the first point of entry into the CSCS system. He/She must have completed the CSCS -- R005 Shareholders Particulars Form. They are to provide the same CHN to all subsequent stockbroking firms they may have transactions with for ease of reference.
Other Prerequisites to successful investing in stock include opening a Bank Account, access to Post office Box (P. O. Box), access to Phone and active E-mail Address.
Process of acquiring shares
According to Nigerian Investments and Securities Law Report [NISLR] (2004) shares could be acquired by six (6) main modes;
1) Public offer;
2) Rights offer;
3) Bonus;
4) Nominal transfer; i.e. Transfer of share by way of gift.
5) Transmission from a dead relation or friends or collective investments or investments previously held under a corporate name for a beneficiary; and lastly
6) By purchase on the secondary market.
In general, a prospective investor who wishes to purchase shares on the secondary market is expected to approach a stockbroker such as Newdevco with a request to purchase or to invest in shares at a secondary market. In response, the stockbroker asks the prospective client which stock/shares he/she intends to purchase. Where the client has a selected stock in mind, the stockbroker executes the order according to the expressed need or interest of the client/customer. (Kofa, 2004).
Kofa (2004) added that in a situation where a client does not know which stock/share to buy, the stockbroker explains and advises the client accordingly in detail the shares to invest in. Consequently the stockbroker gives the client the necessary share transfer forms and Central Security Clearing System (CSCS) (particulars of shareholder) for completion. These documents are used to lodge the shares at Registrars Department of the company and also to open the new CSCS account for the client. The shares requested by client to be purchased are normally paid for by Bank Draft or physical clash to a stockbroker, who will in turn given an official receipt for the draft value or cash collected. Thereafter, the stockbroker purchases the shares as requested by client. Whenever the transactions are fully consummated, the stockbroker shall forward the CSCS statement of stock position to the client as evidence of ownership of such shares.
Benefits of Central Security Clearing System (CSCS)
Nigerian Stock Exchange (2008) states the benefits of CSCS to the operation of the Nigerian Stock Exchange as follows:
a) To Investors
Investors statements of stock position are issued every quarter free of charge or on demand for =N=100.00.
Use of stock position as collateral for loan facility after T + 3 settlement cycle i.e. 4 working days. In effect, a statement of stock position is obtainable from CSCS 4 days after transaction.
Investors can speculate more and take advantage of capital appreciation in their investment because of the T+3 settlement cycle.
Reduced risk of loss of certificates.
b) Quoted Companies
Huge cost associated with the production of share certificates for transaction through the secondary market has been significantly reduced.
Before CSCS, a single transaction on a certificate led to the cancellation of the certificate and the issuance of as many as ten (10) certificates depending on allotments made. This is no longer so since few shareholders request for certificates.
Indeed, of the 400,000 shareholders who use CSCS system now, only 2,200 shareholders have requested for certificates to date.
Amalgamation/consolidation of several accounts for a shareholder on the register leading to reduction of cost to the company.
c) Stockbroking Firms
Prompt Inter-member money and stock-settlement are assured.
The problems associated with delivery of shares are minimize
Increased efficiency and profit
Reduction in operational cost.
Disposal of Shares
According to Kofa (2004) a shareholder who wishes to dispose his/her shares is expected to go to a licensed stockbroker only. A Stockbroker is seen as the authorized agent approved by the government to deal in shares, especially in the purchase or sale of shares on behalf of an individual, group or company. The original hare certificates or CSCS statement will be tendered to a Stockbroker who will issue the relevant forms for completion by the shareholder and then forwarded to company Registrars for signature verification. That is, confirm the ownership of the shares in the case of share certificate. However, in the case of CSCS statement, the stockbroker verifies his client's signature. After the confirmation of signature, the share is taken to the floor of, say, the Nigerian Stock Exchange for appropriate disposal. After the disposal contract, a note shall be raised appropriately and the net proceeds is remitted to the shareholder after commissions and statutory charges are deducted as approved by the Nigerian Stock Exchange.
Recent Development in the Nigerian Capital Market
There are two recent developments in the Nigerian Capital Market. First, is the launching the e-dividend payment system which would subsequently solve the problem of unclaimed dividends by the Securities and Exchange Commission (SEC).
According to Olamijulo (2008) the e-dividends payment system refers to the payment of dividend due to shareholders through electronic means into the shareholders' nominated bank accounts. It implies same day clearance for dividend payment. He added that the system would enable shareholders receive their dividends on the same day, thereafter a confirmation letter of the dividend payment would be dispatched by the registrar. The e-dividend payment system would minimise cases of unclaimed dividends, eliminate dividend loss in transit, the forfeiture of dividends in the future and enhance the ability of shareholders to immediately access and utilize the proceeds of their investments.
Secondly, is the launching of e-allotment which will be fully operational from January 1, 2009. Ahmed, (2008) reported that the system is aimed at enabling the achievement of a certificate-less system in the Nigeria capital market.
E-allotment of shares as it is known is a process of direct credit of approved allotment on offers to the CSCS account of shareholders, as against the conventional issuance of share certificates. It is a process which will aid the achievement of certificateless transaction in the Nigerian capital market. (UBA Registrars, 2008)
The e-allotment is introduced as a result of postal services delays, and "the need to reduce costs in printing and dispatch of share certificates as well as to enable all investors in public offers speedily allotted shares."
Conclusions and Recommendations
It can be concluded that in Nigeria, the only obstacle to stock investment is the low level of investors' enlightenment on the benefits of the entire system, which has greatly affected the acceptance level negatively. Therefore, it is recommended that the regulatory agencies like the Nigerian Stock Exchange and Securities and Exchange Commission should continue to enlighten Nigerian especially, using major Nigerian languages on the gains of stock investment.
Wednesday, February 13, 2013
Download Credit Card Bin Numbers List
The credit card bin is a number formed by the first six digits on any credit or debit card. While the codifications of the thousands of banks in the world might be a little complicated, you will not need to know them in order to check the security of the transactions issued by your customers. Al you need is a credit card bin numbers database offered by a specialized site, and once you introduce the data in the system, you will find out important details about your potential clients.
A site of this kind is a great method to reduce the number of chargebacks and frauds on your site. In fact, the internet pirates and scammers are aware about the power of the credit card bin numbers lookup feature, so by stating the fact that you use this service with your site, you will be able to discourage them from trying any illegal operation on your site. For those hackers that are confident in their powers and that are not scared about this feature, the credit card bin numbers search feature will surely be a burden. With this tool, you will be able to expose tem, and you might even think about reporting those illegal transactions to the authorities.
Different packages offered by the credit card bin sites
The majority of sites offering this service will give you a simple credit card bin numbers free list for the start. With this list, you will be able to check the cards issued in your country, but if you have an international site with transactions issued by clients from all over the world, you will need an enhanced version of the credit card bin numbers download. Let us see if you should pay the money for this advanced credit card bin version.
The advanced credit card bin numbers list
The advanced lists if BIN numbers will give you the option to validate the brand of the card, the bank that issued the respective card, and most important, the country where the card was issued. A transaction issued from Ghana with a card of a Dutch cardholder is surely suspicious, but you cannot refuse it from the start. Call the respective client and the bank that issued the card and certify the transaction. If you do not want to bother your client with annoying questions that might offend him, you should check the advanced credit card bin numbers MasterCard and Visa lists offered by the BIN sites.
The credit card bin numbers check service will allow you to check the type of the card also (debit or credit), and the manufacturer (Amex, Cyrus, MasterCard or Visa). The credit card bin numbers checker must also give you details about a certain type of card. For example, even if the program certifies the legitimacy of a transaction, it might be issued by a bank that is not trusted. The credit card bin must give you details about the reasons why this bank is placed on the blacklist of the international banks, so you could decide if you want to allow the transaction or not.
A site of this kind is a great method to reduce the number of chargebacks and frauds on your site. In fact, the internet pirates and scammers are aware about the power of the credit card bin numbers lookup feature, so by stating the fact that you use this service with your site, you will be able to discourage them from trying any illegal operation on your site. For those hackers that are confident in their powers and that are not scared about this feature, the credit card bin numbers search feature will surely be a burden. With this tool, you will be able to expose tem, and you might even think about reporting those illegal transactions to the authorities.
Different packages offered by the credit card bin sites
The majority of sites offering this service will give you a simple credit card bin numbers free list for the start. With this list, you will be able to check the cards issued in your country, but if you have an international site with transactions issued by clients from all over the world, you will need an enhanced version of the credit card bin numbers download. Let us see if you should pay the money for this advanced credit card bin version.
The advanced credit card bin numbers list
The advanced lists if BIN numbers will give you the option to validate the brand of the card, the bank that issued the respective card, and most important, the country where the card was issued. A transaction issued from Ghana with a card of a Dutch cardholder is surely suspicious, but you cannot refuse it from the start. Call the respective client and the bank that issued the card and certify the transaction. If you do not want to bother your client with annoying questions that might offend him, you should check the advanced credit card bin numbers MasterCard and Visa lists offered by the BIN sites.
The credit card bin numbers check service will allow you to check the type of the card also (debit or credit), and the manufacturer (Amex, Cyrus, MasterCard or Visa). The credit card bin numbers checker must also give you details about a certain type of card. For example, even if the program certifies the legitimacy of a transaction, it might be issued by a bank that is not trusted. The credit card bin must give you details about the reasons why this bank is placed on the blacklist of the international banks, so you could decide if you want to allow the transaction or not.
Monday, February 11, 2013
Is It Better To Buy Or Lease A Car After Bankruptcy?
If you want to get approved at the best possible terms when buying a car, it's important you know a car lender's credit guidelines before you apply for credit...especially if you're bankrupt.It will save you time and frustrationbut more importantly, it will help you avoid credit inquiries that may lower your FICO credit scores up to 12 points per inquiry.Step 1 in making a lease or buy decision is to determine a lender's credit guidelines. You start by asking if they lend to people with a bankruptcy. If so, on what terms?That's right. You have to be upfront that you've filed bankruptcy. Don't hide it. We have to face the fact that some dealers just won't work with people who've filed bankruptcy. So our job is to find the ones that do.Some lenders will only lease to people with a bankruptcy. Others will only offer purchase financing. Yet still others will only lend using a hybrid of the twothis is especially common in Texas.Ask the finance director at the dealership to direct you as to what structure the manufacturer prefers.And here's a quick tip for you: if your bankruptcy doesn't appear on the credit report your lender pullsthen, in the eyes of the lender, you're not bankrupt.The only lenders I would consider using are: - First choice: Captive lenders (car manufacturers) - Second choice: Banks (not finance companies) - Third choice: Credit unionsNinety-nine percent of the cars I've leased over the years have been with captive lenders. Just one was leased by a bank.That particular deal came from a conversation I had with Amy, the finance manager at the local Land Rover dealership here in Indianapolis. I told her I was open to her financing recommendations, but I preferred financing through the car manufacturer.I told her my current FICO scores. She immediately said that with my scores she could do better through a local bank. I signed a credit application and told her to go for it.The next day I signed a lease agreement with that local bank. Being open to her advice literally saved me hundreds of dollars a month on that car.So be flexible...but be careful. It seems most car dealers call all of their funding sources banks. When in reality some are banks, some are credit unions, and most are sub-prime finance companies.Here is a list of some of the most commonly used sub-prime auto finance companies: 1. HSBC Automotive 2. Capital One 3. AmeriCredit 4. WFS FinancialYou want to pass on the sub-prime finance companiesunless you have exhausted all other options. Sub-prime lenders should be your last resort.And only use credit unions if they report to all three national credit reporting agencies. How do you find out if a credit union reports to all three credit reporting agencies?Simpleyou ask. Ask the branch manager at the credit union if they report. And after you get the loan, check all three of your credit reports and make sure their trade line appears on each one.The three worst luxury captive lenders to lease or purchase from after bankruptcy are: 1. BMW 2. Mercedes 3. PorscheThe three worst mainstream captive lenders are: 1. Honda 2. Kia/Subaru 3. ToyotaWhat makes these the worst?Once these lenders see that you've filed bankruptcy, they are less likely to work with you. However, if they are willing to work with you, they'll want you to be at least several years from discharge and have perfect credit during that time.Now that I told you how bad the above six lenders arethere are times where they may offer you good deals. For example, if one of the above happens to be the biggest dealer in your area, they may be able to offer you special deals that a smaller dealer can't.Of course, things change all the time with captive auto lenders. They change their credit guidelines on a whim to meet their own financial goals. So, it's always a good idea to at least research these dealershipsjust don't get your hopes up too high.OK, so you've done your research and narrowed down your choice to one or two car manufacturers.Step 2 in making a lease or buy decision is to purchase your FICO credit scores. It's important you have your most recent scores when you talk to car dealers (just like I did with Amy). It puts you in charge.When you enter a dealership with your FICO scores, the dealer will know you're a more informed consumer and cannot be taken advantage of. Just know that the FICO credit scores auto dealers use are a little different than what we see as consumers. The scores the dealers review are called FICO Auto Industry Option Scores. The good news...these FICO scores may be higher than your normal FICO scores if you paid all previous auto loans as agreed.Some car dealers have told me that if your FICO scores are higher than the scores the dealer reviewsthey may even use your scores to get a better deal. You can buy your scores from myFICO.com.Step 3 is to interview the remaining car dealers on a deeper level. Start by asking them these questions: - Which credit reporting agency do you use to make a lending decision? - What is your minimum credit score requirement to get approved? - What credit score is needed to get the best interest rate? - Do your lenders prefer offering lease or purchase financing to a bankrupt debtor? - What incentives are there to lease or purchase right now?At this point it's important to remain open to either leasing or purchasing. Evaluate your options and incentives. Remember, you're buying the financing. In other words, the most important factor is the willingness of the lender to loan you money.I personally view the lease versus buy decision in three ways:1. If you're recently recovering from bankruptcy, the only thing that matters is if you can get approved at an interest rate you can afford through a lender that reports to all three national credit reporting agencies. So you should only consider lenders that are bankruptcy friendly.2. Once your credit scores begin to increase, you can start selecting cars based on which credit reporting agency the lender uses to determine if you qualify. Obviously, you should choose the lender who uses your highest FICO credit score to make a lending decision.3. When your scores are high enough...or two years have passed after your bankruptcy...or your bankruptcy doesn't appear on the credit report the lender uses, then you can choose almost any car you like. But make sure you still do your research and use your credit scores to help you compare interest rates, terms and incentives.
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