Late Payment on your Phone Bill Send Your Credit Card Interest Rate Soaring

Do you know what can happen when you miss a single credit card payment? Well I can tell you it’s not anything good. A missed credit card payment can not only effect the rates and payment amounts on the credit card you were late on but also every other creditor that you have relationships with. Many creditors will have a standard default finance charge paragraph (or two) that says something like:

“Finance Charges for Late Payment or NonPayment:If you do not pay at least the Minimum Monthly Payment by the Payment Due Date one time during the Introductory Period, the Introductory Period will terminate and the Standard Rate stated in the Table of Interest Charges will take effect as of the first day of the billing cycle following your late payment.”

You may also be subject to what’s now known as a “universal default” clause. This little bit of language basically states that if you’re late on ANY payments to ANY CREDITOR it will cause your interest rate on your credit card to jump up to the “penalty rate.” That penalty rate in 2005 was around the 24.43% rate. Definitely not a rate you would wish for and probably not something you would expect to be paying just because you applied for a new loan or were a few days late paying your cellular service bill. This penalty rate can be quite a shock since your creditor is under no obligation to let you know that it has been applied – and you may not have even missed a payment on that particular credit card. That great interest rate of 7.9% that you signed up for isn’t guaranteed and some creditors go out of their way to find a reason to increase it. Some of the events that can trigger this interest rate rise are:

Missed mortgage payment
Missed telephone or utility payment
Decline in your credit score
Applying for a new loan
Getting a new credit card
Bouncing a check
Exceeding your credit limit

Many of the major credit-card companies such as Chase, Citi, American Express and Discover have changed their policies to do away with this universal default clause but you should check your specific credit card terms to make sure that your cards don’t have this program. You can take some basic steps to help avoid a potential late payment trigger by doing things like:

Set up auto-drafts for your monthly bill payments
Don’t forget about the time it takes for your payment to process – it can take a few days for the payment to actually register with your creditor
You can request changes to the payment due date to make it more convenient for you

Just remember that most creditors make their money off of the interest that they charge you – and any reason to increase that interest rate will be taken advantage of. Try to pay for things with cash first – if you cannot then definitely make your payments on time or you may get stuck in a debt spiral of never ending interest payments.

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The Role of a Loan Professional and the Benefit to Mortgage Borrowers

When deciding where to look for mortgage financing you can walk into a local bank, or as many people do, you might contact the bank where you do your personal banking. There is nothing wrong with doing that, but keep the following in mind:

* If you don’t qualify for a loan with the bank you have selected, you may still qualify through a different bank.

* If your bank does not have a loan program most suitable for your needs, it does not mean that another bank cannot help you.

* Your local bank may have a loan application fee of several hundred dollars, whether or not they can get your loan done. In today’s competitive lending environment, it is unnecessary to pay an application fee. For instance, I never charge an application fee, regardless of whether or not I can get your loan done.

* If you go through a mortgage broker/banker rather than directly to the bank, you actually may often get a better deal. Why is that? Wholesale vs. retail.

Mortgage brokerage companies, as a rule, have wholesale relationships with dozens of banks and “wholesale lenders”. A broker has access to wholesale rates that are often not available to the person that walks into the local bank. Why is that? I like to use an analogy from the auto industry to illustrate this point. General Motors, for example, would like to sell a car to anyone they can. However, we don’t all live in the Detroit area. Furthermore, even if we all lived in Michigan, G.M. could not handle the foot traffic if we were all to knock on the factory door. So G.M. and all auto makers have dealerships to help sell their products. The dealerships pay wholesale for the vehicles and sell them at retail, keeping the spread. The lending industry works similarly.

Banks cannot have a presence in every town and on every street corner. In fact, many wholesale lenders have no personal banking operations, and no brick-and-mortar locations that you can walk into. Nonetheless, if you fit their guidelines they want your business. So brokers have the wholesale relationships with the banks/lenders, and in turn, the broker retails the deal to the borrower. For borrowers, the advantage a broker/banker provides are: access to a wide variety of loan programs, flexible lending guidelines, and low interest rates (because the bank might wholesale to me and retail to you).

** As an example, allow me to tell you a quick story. I was working with a gentleman that was 79 years old and retired. He had income from a pension, social security, and annuities. He had plenty of assets and outstanding credit up around 800. He wanted a 15-year fixed rate and was going “full doc”.

This man could basically walk into any bank. And he did. I did not know that when I was working with him, but more power to him. He went directly to some banks to see what they were offering, and he also chose me to look around and see what I could do for him. As it turned out I took his loan to Chase Manhattan because in this particular scenario Chase enabled me to offer my prospective borrower the best combination of low rates and fees. On the morning that I was expecting this gentleman to come to my office to sign his loan documentation he called to ask me which lender I was going through. Of course, to have him call me at that stage of the process was disconcerting to me because it appeared that whereas up to that moment he was fully on board, now he was wavering. I asked if there was some sort of problem, and he replied honestly that he had been doing some shopping and that in addition to my helpfulness I had also shown him the best deal. He just wanted to know the lender so he could determine whether his local bank would be able to do better. I’ll tell you that I didn’t blame this man for his strategy and I appreciated his candor, but I was a bit disturbed that we were this far along into the process and he was still on the fence. Not wanting to waste time or tap dance, I just told him I was taking the loan to Chase Manhattan. He registered some surprise because he had gone to Chase directly and here I was offering him a better deal. At that point, he stopped looking around and we got his loan closed. Through me, the man got a better deal than going directly, and Chase compensated my firm. That’s wholesale vs. retail. Once again, this gentleman was an A+ borrower. So checking with a reputable broker or mortgage banker can’t hurt, even if you are speaking directly with a bank.

It is important to bear in mind that the lending relationships a loan representative (LR) has access to, or even the company that employs him/her, can have little to do with whether the individual is a good LR or a bad LR. In another article I distinguish between ethical and unethical loan representatives, and what a borrower should take into account before choosing an individual and company to work with. Also, as mentioned in another article, mortgage brokers are licensed, whereas loan officers, loan consultants, and loan originators (or, whatever the title) do not have to be licensed. While mortgage brokers can fall into the category of LR, LR’s can only be referred to as brokers if they are licensed.

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How To Reduce Credit Card Interest Rates


Credit cards are nothing new to American consumers. Everywhere you look, Americans are constantly being asked to apply for a new credit card! Now, you probably know what the selling point is with most cars, THE INTEREST RATE! This is because the interest rate or APR on your credit card delegates how much money you will have to pay back over the life of the loan. A lower interest rate means that you are going to pay less back! Due to this commonly known fact, I am asked the same question time and time again, “How do I get lower interest rates on my credit card?” Unfortunately there is not a vague one size fits all answer to this question. The answer really depends on a few key factors. First off, how good is your credit? Also, how many late payments did you make over the last year? Have you experienced a financial hardship? What is your debt to income ratio? Can you even afford your credit card payments?

People in all walks of life want a lower interest rate however, it is hard for me to give one piece of advise and have it fit everybody’s financial situation to the tee! It just doesn’t work that way. What I can do however is give you a few different ways to reduce your credit card interest rates and allow you to pick which one will best fit your unique financial situation!

How Good Is your credit?

When I am asked how one of my clients can reduce their credit card interest rate, one of the first questions I’m going to ask is “How good is your credit?” The better your credit score is, the more options you have to reduce your credit card interest rate. If you have good or excellent credit, one of the best ways you can reduce your interest rate is by getting a balance transfer credit card. Balance transfer credit cards are ones that allow you to use one credit card account to completely pay off the other.

Lets say you are something like a great majority of American consumers and your credit isn’t all that great. This is completely understandable, if you don’t have excellent credit, that doesn’t necessarily mean that you have to deal with a horrible interest rate. There are ways to get a lower interest rate other than using balance transfer credit cards. These include do it yourself interest negotiations, financial hardship programs, debt consolidation, debt settlement, and much more! I’m going to explain to you how to use balance transfer credit cards, negotiate credit card interest rates, apply for a financial hardship, and decide if debt consolidation or settlement is your best option.

Using Balance Transfer Credit Cards To Get A Low Interest Rate

OK, so you have pretty good credit and you seem to make all your payments on time. You’ve never went over your credit limit and you don’t see why your interest rate is so high. You’re starting to get frustrated with the amount of money you are spending in interest and finance charges so you do a little research. You’ve heard a thing or two about balance transfer credit cards but you don’t know exactly how they work or what is the first thing you need to do to get started. That’s OK here is everything you need to know.

First off, when looking for a balance transfer credit card, it is important to remember a few crucial steps to keep your financial information safe. When filling out an application, make sure that the application page is a secure web page. As far as most credit card websites are considered, the whole website won’t be secure because there is no need for it to be. However, never fill out the application if the application page is not secure. This may put your personal information in jeopardy. It is very easy to tell if a web page is secure or not. When you get to the application page, take a look at the address bar at the top of your browser. If the web address starts with http://, this page is not a secure page. However, if the application pages url starts with https:// this is a secure page and your information is safe.

The next thing you want to look at is the introductory interest rate that the credit card offers. Due to huge competition in the credit card industry, most balance transfer credit cards offer you a 0% introductory period for balance transfers that lasts anywhere from 6 to 12 months. Make sure that the balance transfer credit card you decide to use has a 0% introductory APR as well. If not, I’m sure you can find a better offer.

Also, make sure you understand how much money the transfer fee will be. Yes I said transfer fee! Banks don’t do anything for free anymore. In most cases the fee to transfer a balance will be anywhere between 3% and 5% of the amount of the overall transfer. It is important to be aware of this fee but not to let it scare you off. Even though there is a fee for the transfer, if you are receiving a 0% APR for 12 months, you can consider this fee as the interest rate on the account for that first 12 months. In most cases, it will still be less than your current interest rate.

Make sure you pay attention to the standard interest rate on the account. Always remember, although a 0% introductory interest rate looks great, it doesn’t last forever! The standard interest rate will be the interest rate you pay once the introductory period expires. Make sure that the standard interest rate on your new balance transfer credit card is less than what you are currently paying. If not, the transfer may cost you more over the term of the debt and it might not be in your best interest.

Credit Card Interest Rate Negotiations

So you’ve been a pretty good debtor. You were only late once this year, and you haven’t gone over your credit limit. You like the bank you are currently with and you don’t want to have to go through the hassle of transferring balances. You don’t want to close your account and your not quite sure of what you should do but you definitely don’t appreciate your interest rate! Credit card interest negotiations might be your best bet.

Credit card companies just like any mom and pop store, rely heavily on consumers to keep their company strong. Look at it this way, if no one used the credit card companies, there would be no reason for them to be in business. With that said, some credit card companies are willing to reduce your interest rate to retain you as a client. This is a fairly simple process.

The first thing you want to do is call your credit card company. Continuously press 0 until you get to speak with a live representative. When the call does get transferred to a live representative, simply say, “Hi, I was going through my credit card statements and I noticed how high my interest rate was. I love working with you guys, I like my card and the rewards you have to offer me, but, I have many balance transfer opportunities and I don’t see why I should keep my balance with you if I can pay a lower interest rate. Is there anything you can do to help?” That representative is either going to put you on hold or transfer you to the balance retention department!

If transferred to the balance retention department, use the same line “Hi, I was going through my credit card statements and I noticed how high my interest rate was. I love working with you guys, I like my card and the rewards you have to offer me, but, I have many balance transfer opportunities and I don’t see why I should keep my balance with you if I can pay a lower interest rate. Is there anything you can do to help?” They will then put you on hold. In most cases, when the representative gets back on the phone, they will give you two options. Either you can have a very low interest rate for a short period of time or, they will reduce your interest rate by a few points for the term of the debt. I know the extremely low interest rate is always more appealing, however, I would advise taking the minor reduction for the life of the card. This will be the option that saves you the most in the long term.

Setting Up A Credit Card Financial Hardship Program

You’ve tried applying for a balance transfer credit card and you were declined. You called your credit card company to negotiate and they wouldn’t do a thing. You can’t afford your payments too much longer if you keep this high interest rate! Your not sure what you should do, but you know you don’t want to fall behind. In this case, it may be time to apply for a financial hardship program with your credit card company.

Due to the severity of the current financial recession, most large credit card companies such as Chase and Bank of America have created financial hardship departments. In these departments, representatives are trained to take an over financial analysis and make a decision as to whether or not you can afford to make your payments and still live a normal lifestyle. Depending on the severity of your unique financial hardship, the credit card company may be willing to keep the debt in house but still help you by closing your account and reducing your interest rate.

The first thing you will want to do is make a list of all of your household income. If you get rental income, make sure to include it. It is important that you include every dollar of income. Next you will want to make a list of all of your expenses. I mean all of your expenses from mortgages to auto loans to credit cards to gas, food, day care, reoccurring medical expenses, etc. Make sure to include everything. Also, make a note of what has caused your expenses to increase or your income to decrease.

Once you have written all of this information down, call your credit card company. Tell them about your financial hardship and ask if they have a financial specialist you can talk to. You will then be transferred to the financial hardship department. When speaking to the representative make sure to be very polite and very honest. If you are truly in need, once the results of the analysis come back, you will receive a new interest rate and payment plan!

Debt Consolidation

Things are starting to get serious. Your job has cut your hours or you have been out of work for a little while. You are absolutely certain that you can’t afford even your minimum payments anymore and you have no idea how to get assistance or what to do next! In this case, you may want to look into debt consolidation.

There are a few types of debt consolidation. Balance transfers are one type but you already tried and you don’t qualify. You’ve heard a bit about home equity loans and you’re considering taking out one to pay off your credit card debts. DON’T DO THAT! If you don’t pay your credit card companies, the worst thing that can happen is they take you to court and you get a judgment on your credit report. They can’t take you to jail! If you pay your credit cards off using the equity in your home however and you can’t afford the payments, now you’re homeless. The type of consolidation you want is a debt consolidation company.

Debt consolidation companies are companies that have already pre-negotiated low interest rates with most major and even small credit card companies. They will take an analysis of your financial situation and place you in a program that fits your needs. When choosing a debt consolidation company, it is important that you choose the right one. Do your research and make sure you are using a reputable source! Google the name of the company and check the Better Business Bureau to make sure you are dealing with a known company!

Debt Settlement Plans

Now, you are in a serious situation. You feel that your finances are falling apart. Your car is in danger of being repossessed and you don’t know how you are going to make the next payment for any of your loans. You are consistently thinking about bankruptcy but you wish there was one more thing you could try. Debt settlement may just be that thing. Keep in mind however, that debt settlement should be a final resort before bankruptcy. This process will, not can, it will have a detrimental effect on your credit score!

The way debt settlement works is, the company you hire will collect very minimal payments to go towards your debts each month. These payments will go into a sort of savings account until your payments have reached a delegated amount. All this time, the credit card companies are not being paid. Once the credit card companies are at the point where they feel they are going to get nothing back, in most cases they are willing to settle the debt for a minimal amount. This is when the debt settlement negotiations go into effect. The debt settlement company will work on your behalf to make sure to ensure that you get the lowest possible settled amount for your debts.

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Generate Sales Leads That Boost Profit and Increase Conversion Rates

Finding ways to generate sales leads can take up a lot of time that could be better spent on other aspects of your business. All sales people spend far more time than they should chasing up new clients and looking for ways to generate sales leads to help increase their conversion rates.

How much easier would your business be if you had a steady stream of leads coming in without all the leg work? All you’d need to do is work on converting them into sales and then reap the extra profits.

Having a way to generate sales leads whenever you want more business can eliminate the downtime you would otherwise spend hunting for new sources of business, which translates to increased profits for you. Not only could this save you time, but it could also mean increasing sales, boosting profits and raising sales team morale considerably.

Sales people love to sell, but they don’t often enjoy the long phase of hunting down new leads to work with. Far too many promising sales people have left potentially lucrative careers because of a lack of customer inquiry coming into the business and a lack of understanding of how to source new clients.

By generating sales leads for them using systems that guarantee high quality information, this means you can keep your sales staff doing what they do best – selling!

When you’re choosing a lead generation system for you, be sure that you have the opportunity to access good quality leads from lead producers who have been filtered to be sure they’re providing only the best information to suit your specific needs.

You should also have access to a range of extensive filters to ensure you get only the prospects you really want. The options available for filtering your leads into specific segments should include:

• Location – you can apply a filter so you only generate sales leads who live within a specific radius from you, or within a preferred zip code, state or country

• Preferred type of lead – for example, you can request to receive just mortgage loan leads, or you could bid for specific auto insurance leads or even nominate MLM leads. The choice is yours

• Seller’s Quality score – you should be able to see which sellers are scored highly for providing great information and which are scored lower for less reliable leads

• Limit your account by setting specific spending limits to make sure you never spend more than what’s available in your allocated budget

On top of these features, you should be encouraged to outsell leads to other downstream providers. For example, a mortgage lender who buys specific homebuyer leads could sell disqualified leads to a local rent-to-own investor or apartment complex, while a debt settlement provider might sell bankruptcy leads for people who don’t qualify for his or her program. Car dealers can sell a lead to car insurance providers.

This allows you to regain the cost of the lead fast if you’re unable to convert it to a sale in your own line of business and provide a new source of revenue from existing business processes.

Finally, when you generate sales leads, your account should allow you to score the seller as providing information that is legitimate and contactable or not. Always check where the sellers are getting their information. Some of the lead sellers who should be sourcing and generate sales leads for you include internet marketers with access to tens of thousands of opt-in subscriber records, TV and radio channels looking to monetize unsold airtime, and skilled “bird dog” associates who can look for very specific types of leads to suit your specific business needs.

Bonus Tip: When you generate sales leads, your SwiftCRM lead generation account includes real-time incoming lead notification via instant messenger, email, text message, or any combination of the above. You’ll always know when a lead is found that suits your exact requirements. If you’re buying real-time live-transfer exclusive phone leads, this data can help you sound informed, and if it’s a data lead, this can mean the fastest possible response, as you will typically call the lead while they are still on your marketing team’s website.

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Are Land Investments Affected by the Libor Rate-Fixing Scandal?

How does the Libor rate-fixing scandal affect capital growth investments such as land?

Stringent lending practices by banks are blamed for the housing shortage in the UK. Might the LIBOR scandal, uncovered in 2012, play a role in this?

While residential real estate prices in London remain high and climbing, most other parts of the UK have seen a significant drop in home values since the financial crisis of 2008. Economists and pundits alike have pegged this to many factors in the economy, but since the Libor (London Interbank Offered Rate) rate fixing scandal came to light in 2012, some voices are questioning the degree to which this may have then, and since, affected home buyers. Of course by extension, the ability to purchase homes affects the fortunes of strategic land investors and developers.

A Fortune magazine senior editor wrote in late 2012 that because the housing market crash was due to many homeowners being unable to pay their mortgages, that Libor manipulations “added to the borrowers’ hardships,” making it at least a contributing factor.

Other voices argue that the damage of Libor manipulations benefited just as many people as it may have hurt. As much as rates were artificially inflated, just a bit, so too were they pushed down (driven by the bankers found to be responsible for their own reasons). It should not go without notice that about 45 percent of adjustable-rate prime mortgages and 80 percent of adjustable subprime mortgages are set according to the Libor rate. Student and auto loan rates are hitched to Libor as well.

But if there is one outcome of the scandal, it may have been the undermining of trust in the system overall. It certainly shakes investor confidence in the financial markets.

Billion-pound-plus settlements have been reached by those banks found responsible (Barclays, UBS, Royal Bank of Scotland. American banks including Citigroup, JPMorgan Chase and Bank of America have not faced charges). And new regulations in the aftermath are predicted, with some variation between countries and their respective regulatory systems. In the UK, that may follow the Vickers proposals, which the International Center for Financial Regulation says will put ringfences around all UK-based retail and investment banking services.

While the punitive settlements reached between UK regulators and the banks sound hefty, relatively speaking they pale in comparison to the costs borne by borrowers since the fraudulent practices began in the early 1990s. According to the website, small businesses’ and households’ annual mortgages were affected by hundreds of pounds each year due these transgressions. Consider how, says the site, Libor and therefore mortgage rates soared in the lead up to the 2008 financial crisis, particularly its climb around August 2007.

The credit crunch and housing price crash since has slowed investments of all kinds, not the least of which has been home building in England and Wales – despite a continued population increase and pronounced shortage of housing. Would-be new homeowners have difficulty meeting tighter lending standards, which has dulled the interests of most developers in building new homes.

As confidence builds again in the banks, and as lending loosens up, there is growing interest in the pent-up demand for housing that has occurred. In the meantime, to-let housing is becoming more common in the UK and elsewhere, particularly with new construction. The dynamics of banking and business, and the population increase, all suggest that home building has to increase in the future – perhaps this time, with fairer, less-manipulated lending rates. When that does, capital growth for landowners, land investors, and existing built-property owners should benefit as well. On the receiving end, more young people and families will be able to find a place to live – and pensioner parents will reclaim their homes for themselves once again.

For all considered, all market factors must be taken into account. The smart investor will always consult with a qualified personal financial planner to ensure the risk profile of an investment is tolerable and complementary to other assets in his or her portfolio.

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The Benefits Of Getting A Personal Loan

A personal loan is usually not secured. It means collateral does not need to be provided by you when you borrow. The loan is offered to you by the lender on the basis of your credit and qualifiers. You can easily get the approval of loan, if you have a good credit. A lower interest rate can also be offered to you. Visit a financial institution or search online to get a personal loan.

Here is a list of some of the benefits of such a loan.

Lower interest rate – If you have good credit, then personal loans with lower interest rates can be availed by you. Around 15% APR on a credit card balance is paid by the people with lower credit card balance. But if you have good credit, you have to pay only 6% APR. While making a big purchase, it is considered as a big difference.
Use for many purchases – Your cash can be used by you for making any purchase. A loan of this type can be used even for purchasing a vehicle, starting a business or renovating your house. Restrictions may be placed by other types of loans on the usage of fund. But the conditions of using a personal loan are flexible and can be used for any purchase.
Consolidate debt – High interest debt can be consolidated by using a personal loan. Several smaller debts with high interest such as credit cards and student loans can be paid off by using a larger loan. Money on interest can be saved if you consolidate your debt by using this loan. Your debt repayment plan can be managed in a better way by combing several loans in one place.
Smooth your cash flow – Your cash flow can be smoothened by using a personal loan. A personal line of credit can be got by you, by using your personal loans. You have to pay a low interest rate in this alternate way of use. An emergency fund doesn’t need to be raised for future. The borrowed amount can be repaid by accessing your line of credit.
Boost your credit score – Your credit score is counted depending on your different types of accounts. One type of credit is represented by credit cards. In this case, you can use your credit score to handle your loans. Your score can be boosted slightly by adding instalment loans in your credit report.
Thus, save a huge amount on all your purchases by using a personal loan. Always remember to compare different loans before borrowing any sum.

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Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.


No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

· Student Loans

· Secured credit card (includes a down payment amount)

· Being added to a parent’s or spouses good credit: card, car loan, etc.


Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.


Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.


Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.


If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.


If you need a loan now, but are concerned that you might not qualify for a personal line of credit, you can qualify for a No Credit Check Loan. You could be on your way to a better financial future in no time!

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A Latin Impact on the Finance Industry

Financial Institutions are a fantastic business model to learn from when considering ever changing market conditions. Their traditional target markets are stable, but, the needs of an emerging market, the Latino market is extremely underserved. It is certainly not for lack of money. Many Latinos have zero debt and healthy saving habits. The question arises, are financial institutions doing enough to serve this population? Are they adapting to the Latino needs? The answer is complicated.

There are two types of Latinos in the USA. One is the immigrant seeking a better life and wanting the American dream, whether they came through the proper channels or not it is irrelevant. The second, are the Latinos that are born here. These are two very different groups of people with different needs and goals. Most immigrants bring their culture, traditions, and customs with them to the US. Those born here develop a blended culture that is both Latino and American.

Financial Institutions are taking notice and making strides to accommodate this very economically influential population. The main reason is that there is a lot of investment in education and developing trust. An untold detail is that in Latino countries, people do not trust banks and financial institution because of corruption. Everything is paid in cash and there are no debt or traditional credit scores. This means that the Latino community have cash, probably stored under their mattress or in a shoe box. This is very dangerous considering that a house fire could burn an entire life savings. Another scenario is they could become a target for robbery. This is a foreign concept for Americans. What is happening is a huge learning curve, educating them on the process of building credit, saving their money in a financial institution, getting loans (mortgage, car, etc.), and most important having trust in the financial institutions.

The younger generations that are born here learn from their parents and surroundings. There is still a disconnect from the importance of financial products, building credit, and how that process works. Many of these young people are just translating for their parents, explaining financial products, and become an intermediary for conducting business. You will notice an increase in bilingual support at many financial institutions for this reason. There is still a lot of work to do in this regard, and this process will take time.

However, more and more financial institutions are offering products specific to Latinos. Information is becoming available in Spanish and more financial institutions are hiring bilingual and multi-lingual speakers. It will be interesting to see how we as a country adapt to this important demographic. It is truly an untapped market that has an important function in our economy for growth and stability.

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6 Home Loans Tips Before Applying

Applying for home loans could be dreadful, particularly on the off chance that you are a first-time home purchaser. There’s a considerable measure of printed material and indulgent preparing included. Yet at the same time, it is justified regardless of your exertion. This far reaching contract aide will walk you through the way toward securing financing for your home and make you feel that applying for a home loan is not that horrible all things considered.

1. Know about them Lender or Broker?

There are two approaches to apply for a home loan. To start with, you can manage a loan specialist or home loan organization straightforwardly. Second, you can procure a home loan representative who will help you look over an assortment of moneylenders. Most homebuyers think that its less demanding and less expensive to choose a loan specialist, without assistance from the outsider. In addition, with a specific end goal to locate an equipped and solid agent, you should do a really decent research and get references. That is the reason a great many people like to keep it straightforward and manage a bank themself. In a few circumstances, be that as it may, merchants can really work to support you. For instance, if your record of loan repayment is not all that good, an accomplished dealer might be exceptionally useful in shopping and arranging for the most ideal arrangement.

2. Know the True Rates

The publicized rate frequently snatches borrowers’ consideration yet it is really not the one that borrowers ought to depend on. The AAPR or “the genuine rate” is a much better guide, as it checks every one of the expenses and charges that will happen over the term of your loan. In spite of the fact that the AAPR is a stage up from the publicized rate, it is still only a quantitative device. Once you’ve chosen a couple loans in view of their AAPRs, you will at present need to investigate their different elements. Some worldwide think-tanks, for example, CANNEX and AIMS Home Loans can outfit you with some canny data about mortage loans and help you limit down your choices quicker.

3. Know about loans details & terms

When you search for a home loan and read through various home loan terms and conditions, you will go over money related wording that you most likely won’t discover somewhere else. It is critical for you to comprehend those home loan terms with the goal that you can secure the most ideal arrangement. Truth be told, numerous money related foundations and land firms offer free homebuying workshops, which can help you comprehend what individuals are discussing in land business. Here are some fundamental home loan terms that you ought to know:

APR – Yearly rate, expected to mirror the yearly cost of acquiring. It is otherwise called the “promoted rate” or “feature rate”, that ought to make it less demanding for borrowers to think about moneylenders and loan alternatives.

Closing Costs – Shutting costs incorporate “non-repeating shutting costs” and “prepaid things.” Non-repeating shutting expenses are any things to be paid only once as a consequence of purchasing the property or acquiring a loan. Prepaid things are things which repeat after some time, for example, property charges and mortgage holders protection. Normally a moneylender should gauge both the measure of non-repeating shutting costs and prepaid things, then issue them to the borrower inside three days of accepting a home loan application.

Collateral – An insurance is the thing that you use to secure a loan or ensure reimbursement of a loan. In a home loan, the property is the security. The borrower will lose their property if the loan is not reimbursed by assentions of the home loan.

4. Check Your Credit

When you apply for a home loan, your whole record as a consumer will be investigated by your forthcoming moneylender. FICO ratings more than 620 have a decent risk of getting affirmed for a home loan with a decent financing cost. On the off chance that your score is beneath 600, in any case, your application might be denied or you may get affirmed at a much higher loan fee. Whether you have a decent or terrible financial assessment, what you ought to do is check your credit report before your bank does. You can get your credit report from Equifax, Experian and Trans Union. In the event that there are any mistakes, attempt to contact these three organizations and clear them up. This procedure can take a great deal of time, so it is something you ought to do a while before apply for a home loan. Paying down your budgetary commitments, for example, Visa obligation and auto loans, before applying for a home loan is additionally an extraordinary thought.

5. Don’t afraid from your bad credit score

Regardless of the possibility that you have an awful financial record, you ought to in any case glance around for the best arrangement. Don’t simply expect your lone choice is a high-taken a toll loan. On the off chance that your credit issues were created by unavoidable circumstances, for example, ailment or a brief loss of pay, disclose your circumstance to the loan specialist or intermediary. Ask a few banks what you need to do keeping in mind the end goal to get the least conceivable cost.

6. Verify and clarify all the things

A pre-endorsement letter is extremely useful, yet not as awaiting as you may think. When you locate a home you’d like to purchase, and your offer has been endorsed, you will need to do a reversal to the moneylender and submit archives that confirm your monetary data to get a loan. Your benefits will be assessed. The loan specialist will investigate your work history. You ought to have no less than two years of business history in the same profession. On the off chance that you are new to the work power, advanced education may help you get endorsed. In the event that you don’t have a sufficient record as a consumer, you may utilize normal regularly scheduled installments, for example, lease, telephone, or satellite TV to demonstrate the loan specialist that you are a reliable shopper.

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The Role of Islamic Finance in Economic Stability and Social Justice

One of the most distinguishing times for the U.S. Islamic home financing industry began in February 2007. The Federal Home Loan Mortgage Corporation (Freddie Mac) sent out a press release announcing that it would no longer buy the most risky subprime mortgages and mortgage backed securities. Two months after the announcement, a leading subprime mortgage lender filed for Chapter 11 bankruptcy protection. Three months after that bankruptcy filing, nationwide financing entities warned of “difficult conditions” ahead. Manifestations of such difficult conditions appeared on the horizon of the financial market when once well-established mortgage companies suddenly began to file for Chapter 11. Similar circumstances reached the U.K. as the Bank of England cleared an authorization to provide liquidity support to Northern Rock, the country’s fifth largest mortgage lender. Five months later, Treasury of the United Kingdom became the owner of Northern Rock.

Up until that point, the gravity of these “difficult conditions” was not fully understood by most of the populace. Late in 2008, the Federal Reserve Bank of New York was authorized to lend $85 billion to the AIG. This was the beginning of the most serious recession in the United States since the Great Depression. What followed was a chain reaction that led to an unprecedented global financial crisis, as the world suffered from rising unemployment, rampant foreclosures, and severe skepticism of financial instruments.

This led to a renewed spotlight on an unfamiliar market segment that appeared comparatively more stable and, more importantly, far more ethical: the Islamic financing sector. From the financial centers in Malaysia to the Middle East, spanning across over seventy countries, Islamic finance in the U.S. increased from $5 billion in the 1980s to $1 trillion in 2010. This phenomenal growth caught the attention of global investors who were seeking to safeguard their investments through more ethical and reliable financial instruments. When financial sector workers realized that these Shariah-compliant instruments avoided many of the worst effects of the global financial crisis, it became an attractive investment vehicle to support a more diverse portfolio. The Shariah-compliant financial sector has avoided investment in predatory lending businesses and overly leveraged financial instruments due to the strict ethical nature of the Shariah governance system. News and media outlets started to cover this ancient yet unfamiliar industry in hopes of learning from the mistakes of the conventional banking sector.

The concept of the modern Islamic financial services industry is rooted in the principles of Islamic legal jurisprudence that deals with financial transactions, a branch of Islamic jurisprudence called Fiqh Al Muamalat. Fiqh Al Muamalat is a framework under Islamic Law that charts the conduct of Muslims in commercial or economic endeavors. Islamic finance products and rulings are based on specific injunctions from the Quran that prohibit certain features of financial transaction models and related economic activities.

The Quran forbids interest, also called usury or riba. The underlying reasoning is that Islam considers lending to be a charitable act to help another member of the society in his/her time of need – therefore, profiting from someone’s hardship is strictly forbidden. In the conventional banking system, when interest is charged on a loan, the risk of that transaction is transferred to the borrower while the lender gains profit from the interest-based transaction. There is no consideration for the hardships endured by the borrower in the event they undergo any loss from the transaction.

By its nature, Shariah law prohibits unethical financial practices. It also promotes wealth distribution among all people to reduce poverty and inequity. This is manifested in the prohibitions of activities such as excessive speculation, gambling, and investing in products that are harmful for society as deemed by Islamic law (alcohol, pornography, etc). The structure of Islamic financial products and services, especially its prohibition in speculative transactions, has helped the industry escape most of the adverse effects of the global financial crisis. The governance model of Islamic financial institutions has been praised as an ethical alternative by institutions such as the International Monetary Fund and the World Bank. Economic experts have suggested that Islamic financial principles can be leveraged to promote financial inclusion that uplift the quality of life in developing nations. Islamic financial principles can also contribute to financial stability and economic development around the world.

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