Loans

Why Is Everyone Crazy About SBI Home Loan?

When you get the cheapest home loan, for sure you will feel crazy. State Bank of India always offers the best products. With best we mean, quality and unbeatable features. A home loan concerns people the most but when SBI home loan is available at low-interest rates, it becomes so pleasing to our pockets.

Currently, almost all lenders have increased their MCLR and thus interest rates linked to a floating rate of interest have also become costlier. Still, SBI home loan is available at the lowest rate out of all the top lenders in India. The bank has waived off processing fees on home loans which makes it even more demanding. To know more about the product and apply for it, read more.

SBI Home Loan Eligibility

The eligibility criteria based on which SBI accepts home loan application is mentioned below:

For Salaried

  • Your age must be between 18-70 years
  • Your net annual income should be at least ₹1,20,000
  • You can get loan amount up to ₹5 lakhs to ₹1 crore
  • The minimum work experience required is 2 years

For Self-employed

  • Your age must be between 21-70 years
  • Your net annual income should be at least ₹2,00,000
  • You can get loan amount up to ₹5 lakhs to ₹2 crores
  • The minimum work experience required is 3 years

Documents Required

The list of documents required for the loan application are as follows:

For Salaried

  • Duly filled loan application
  • 3 recent passport size photographs
  • Identity proof (Voter ID card/Passport/ Driving license/IT PAN Card)
  • Residential proof
  • Proof of business address for non-salaried individuals
  • Bank statement/Pass Book of last three month
  • Signature identification from present bankers
  • Personal Assets and liabilities statements
  • Original salary certificate from employer
  • TDS certificate on Form 16 of IT return for last two financial years

For Self-employed

  • Duly filled loan application
  • 3 recent passport size photographs
  • Identity proof (Voter ID card/Passport/ Driving license/IT PAN Card)
  • Residential proof
  • Proof of business address for non-salaried individuals
  • Bank statement/Pass Book of last three month
  • Signature identification from present bankers
  • Personal Assets and liabilities statements
  • Acknowledged copies of three years IT return/Assessment orders
  • Photocopies of challans evidencing payment of Advance Income Tax

Home Loan Interest Rates SBI

Recently, SBI has increased its 2-year MCLR and thus loans linked to MCLR have become costlier. Right now, SBI home loans are available at low-interest rates starting from 8.65% per annum and go up to 9.20% per annum. On the basis of income and property value, the maximum loan amount and the interest rate is decided by the lender. Those who have the good credit score of at least 700 have more chances of negotiating with the lender to approve lowest possible rate.

On the basis of interest rate, income criteria and types of home loans, you can choose whether home loans make your crazier or not. Jokes apart, you should go through every minute detail and then choose whether or not you find it suitable for you or not.

Why Don’t People Choose Bandhan Bank Personal Loan?

Loans are a debt taken for a particular period of time. The borrowers repay the loan for the chosen tenure and approved rate for the loan amount they have taken. Bandhan Bank is one of the new lenders people have and maybe that is the reason people not so easily apply at this lender.

In this article, we have shared the interest rates offered by top banks including the features of Bandhan Bank personal loan. These details will help you in choosing the best option for yourself and maybe end up with the one best for you.

Bandhan Bank Personal Loan

  • Loan within 2 working days
  • Tenure from 12 to 36 months
  • Low interest rate and processing fees
  • Flexible tenure option

Bandhan Bank Personal Loan Interest Rate

The interest rates available for personal loans vary from 14% to 17.86% per annum.

ICICI Bank Personal Loan Interest rate

ICICI Bank calculates the final interest rate on the basis of MCLR and Base Rate. Presently, the rates are one of the lowest personal loan interest rates in India with the rates from 10.99% per annum onwards.

SBI Bank Personal Loan Interest rate

SBI personal loans are available at floating rate of interest based on 2-year MCLR which is presently 8.10% p.a. The personal loan interest rates are starting from 11.85% per annum.

HDFC Bank Personal Loan Interest rate

If you want to apply for a personal loan at HDFC Bank, you can get the lowest rate of 10.99% per annum. The bank has recently reduced the rate and is offering a higher loan amount as well.

Bajaj Finance Personal Loan Interest rate

You all know that when it comes to personal loans, Bajaj Finserv/Finance is an unbeatable match. The lender offers personal loans to salaried individuals only and is presently offering the loan at the starting rate of 10.99% per annum.

Kotak Mahindra Bank Personal Loan Interest rate

Kotak Mahindra Bank has not only made its way in the market by taking an initiative of Kotak 811 plans (the facility to open an account via mobile app) but is also one of the best personal loan providers in India. At present, the loan is offered at the starting rate of 10.99% per annum with the facility of a higher loan amount.

Personal Loan EMI Calculator

Let us suppose that you have applied for a personal loan at Bandhan Bank and want to check your future so as to be prepared for the payment and manage your finances accordingly. Your loan amount is ₹15 lakhs, the tenure of 5 years and has been offered the interest rate of 15.50% p.a. by Bandhan Bank that is:

  • Loan Amount- ₹15,00,000
  • Tenure-5 years
  • Interest Rate- 15.50% p.a.

The payments from your end will be as follows:

EMI: ₹36,080

Total Interest Outgo- ₹6,64,787

Total Amount (Interest + Principal) – ₹21,64,787

PNB HFL Home Loan EMI Calculator And Interest Rates Information For Your Benefits

PNB offers a low-interest rate with a flexible tenure so that you can grab interesting privileges and fulfill your home sweet home desires. This bank is customer-friendly that means easy to repay of the loan.

Before you can apply for financial support, check online eligibility. PNB divided eligibility criteria into three categories NRI, Unnati, and PMAY scheme. Let’s find below description step by step.

NRI Home Loan Eligibility Factor

  • You should be of Indian origin holding an Indian passport with the status of NRI on employment
  • Before you are applying for a home loan, should have one-year working experience in a foreign country
  • You should not be more than 70 years of age

Eligibility Criteria For A Unnati Home Loan

  • An individual should have professional degree/diploma
  • An individual who is earning a fixed minimum income of Rs 10,000 per month
  • You should not be more than 70 years
  • If you are a salaried, so not more than 65 years

Eligibility Criteria For A PMAY Scheme

  • Your age should be above 18 years
  • Maximum declared income should be Rs 6 lakhs for LIG category, Rs 6.01 lakh to Rs 12 lakh for MIG1, and Rs 12.01 lakh to Rs 18 lakh for MIG2

After that, it would be easy for you to apply and know PNB HFL home loan EMI calculator benefits.

  • Open the official site
  • Fill personal-professional information
  • Upload required KYC
  • And click on submit button

Which KYC We Need To Provide To The Bank For Instant Approval?

You need to submit documents, which provide instant approval. For home loan interest rates and EMI calculation check KYC first.

  • Filled application form with a recent passport size photograph
  • KYC including Aadhar and PAN card
  • Educational qualification
  • Latest salary slip of 3 months

What Is The Procedure Of PNB HFL Home Loan EMI Calculator?

The calculator is the easiest process to calculate payable amount within a second without any error. That’s why PNB HFL home loan EMI calculator is also beneficial for you to know the exact payable amount to the lender.

With the help of EMI calculator, you get to know actual monthly installment which you can pay to the lenders. You need to share amount, tenure and interest rate within a second you know the exact payable amount. It’s flexible, convenient and simple tool, till the time you are not satisfied with the report you can check again an again.

Is It Necessary To Know PNB Home Loan Interest Rates?

The interest rate is a second important thing while knowing EMI for repayment. It can use for you in that way how much they provide an interest rate low or high? If your interest rate is low, then it’s beneficial for you.

The PNB home loan interest rates start from 8.85% to 11.75% with 75% to 90% of the market value for up to 30 years and processing of the bank Rs 10,000 plus GST.

How to Choose the Right Type of Debt Consolidation

You might want to get out in a mountain of debt right now and start spending your money on things you love rather than paying high monthly interest rates. However, it seems like finding the right debt company can be overwhelming.

Many offers are popping all over the internet advertising various debt consolidation companies. The question is ‒ how do you choose the right one?

What is Debt Consolidation?

Debt consolidation is the process of taking on a new loan and using that money to pay off your existing debt. Meaning, it’s one of the quickest ways to become debt-free.

Here are some reasons why it can immensely help your situation:

  • With lower interest rates, it can help you save cash to pay off your existing debts.
  • Repayment period is more extended, meaning it can reduce your monthly payments.
  • A single loan with only a single payment will be much easier to handle than multiple loans.

Despite its advantages, debt consolidation has its potential pitfalls. Every debt consolidation option has its pros and cons and you can either be a good or bad fit for it depending on the circumstance.

In this post, we will discuss the different types of debt consolidation to help you decide what’s the right move for you.

Home equity/HELOCs

Single family house on a pile of money. The concept of real estate.

Home equity loans and home equity lines of credit also known as HELOCs allow you access to the equity you’ve built in your home. It allows you to pay off some, if not all your debt at low-interest rates.

However, there are the potential downsides of a HELOC/home equity loan:

Upfront costs- Watch out for upfront processing fees which can cancel the impact of lowering interest rates.

Long loan terms- Extending your loan term means it can reduce your monthly payments. However, extend it too far, and you would be paying off higher interest rates.

You can potentially lose your home- As your home secures these loans, once you fail to make timely payments, your property can be in jeopardy. As much as interest rates may be lower than other debt consolidation options, there is that added risk of losing your home.

Personal Loans

Personal loans usually have terms ranging from two to seven years. Usually, depending on the amount you will borrow as well as your credit score, interest rates vary from 5 to 36 percent.

You can easily qualify for a personal loan. Even with a credit score as low as 580, you can still become eligible to it. However, if your credit falls below the minimum, you can check the internet as there are websites who offer loans for people with bad credit.

Peer to Peer

One of the newer debt consolidation processes, it allows people to lend money to each other through P2P lending companies. These companies will connect you with the right people with the amount they are willing to invest. The investor gains are an interest rate that’s charged on your debt consolidation loan.

Credit Card Balance Transfer

If you have excellent credit, a credit card balance transfer is one of the cheapest debt consolidation option there is on the market.

In this kind of transaction, you open a new credit card and transfer the balance on your previously existing card to it. You will be charged a small fee for the transfer.

A credit card balance transfer works best for people who have excellent credit. Some offers even have 0 percent interest rates that range anywhere from 12-21 months.

However, it can also have potential downsides:

  • To qualify for the best interest promotional periods, you need to have a credit score of 700 or above.
  • Many cards charge fees as much as 3 to 5 percent of the total amount that you transfer. Thus, it can potentially eat away your savings.
  • If you don’t pay your loan back during the duration of the promotional period, interest rates can soar.
  • Not advisable for people with high levels of debt.

In Summary

Given these options, how can you ensure that you stay out of debt? More importantly, how can you choose the right type of debt consolidation loan that fits your situation? Selecting the right option means it will be easier to pay off your bills, and you’re unlikely going to fall into a mountain of debt in the future.

Therefore, it is best to consider a few key variables first that can influence your decision. Determine how much money you owe, determine your credit score and compare the interest rates from various debt consolidation loans. Don’t forget to address the root of the problem as well.

By understanding the pros and cons of each of these options, you can make an informed choice that can give you financial freedom and help you live a debt-free life.

 

If You’re Applying For Cash Loans, Don’t Do These Things

One of the most practical ways to cope with urgent financial issues is a quick loan or cash loan. This type of loan is fast and always reliable – most especially in solving unforeseen financial burden. In case you don’t have the slightest idea about short-term loans yet, basically, this type of loan involves a financial organization or business lends short-term unsecured money to the borrower that is due to be repaid on his or her next payday. It is not unusual for the lending company to require verification of employment from the borrower; however, there are other companies that do not play by this process.

Even if you are the type of person who invests so much of your time and effort in maintaining savings in your bank, you may still find it difficult to cope with unforeseen or emergency expenses. This being said, you should be able to adapt to financial burdens that require urgent decision and action. The economy of the country is relative as of the moment but this should not assure you of financial security. While you can say that you are currently employed, you can still become subjected to crucial financial problems. Hence, it is a must that you always have a Plan B under your sleeves.

Applying for cash loans is quite popular throughout Australia, but this does not mean everyone is aware of how the system really works. There are many borrowers who fall into more serious financial burden just because they fail to plan beforehand. In this regard, if you wish to explore your options when it comes to quick loans, be mindful of your actions and do your best not to commit these mistakes:

Don’t think that your application won’t be approved if you have a bad credit rating.

The popular notion among would-be instant cash loan borrowers is that the lending company will not approve their loan application if they have bad credit. The truth is, many companies lend borrowers cash advance even if they have bad credit. Hence, if you have bad credit, you don’t have to sweat as your application will still be considered by the lending company.

Don’t think you can’t apply for a loan online.

Before the Internet, Australians apply for short-term instant cash loan through physical establishments and lending stores. While this is still widely practiced throughout the country, online applications are likewise being more in demand and deemed more practical. If you do not have the time to visit a payday loan establishment or there’s none in your area, you can always turn to online payday loans. Applying for a payday loan online will not only save you time but money as well as you don’t have to drive yourself to a lending store. The process is fairly easy, and with just a few clicks and verification procedures, you can already get the money you need.

Don’t consider borrowing from questionable companies.

You should know how to draw the line between questionable lending businesses and reputable ones. Even if you are in dire need of money, do not let your guards down and only transact with companies that have a good track record. This advice should be sought especially if you’re planning to apply for a loan from an online company. While there are numerous legitimate lending businesses operating online, there are also questionable ones. It is good practice to verify the company’s track record first before sealing the deal. This will surely give you the peace of mind that you need.

Never make the mistake of ruining your cash loans experience. The last you need in times of financial burden is to create a new one by failing to compose your decisions beforehand.

ICICI Home Loan Interest Rates and Eligibility For Salaried

A home loan from ICICI Bank may prove to be a good choice for both salaried and self-employed professionals. Salaried, on one hand, have monthly income when it comes to salary and hence find it easier to decide their repayment amount. You know the rate on loans is decides by keeping into account the income/savings of applicants and CIBIL score.

In this article, we have focused on the home loan rates ICICI Bank offers to salaried applicants. Since this loan may continue up to 30 years (if chosen), it is important that you go for the tenure for which you can easily repay without any hassle.

ICICI home loan interest rates

The home loans rates ICICI Bank offers to salaried people ranges from 8.5% to 8.95% per annum. As mentioned above, the rates are approved based on your income and CIBIL Score. So, if you are able to save more than 60% of your income, you are eligible for a higher loan amount and lower rate. Talking about CIBIL score, 650 or above is required.  

Types of ICICI home loans

Below are the types of home loans offered by ICICI Bank:

Pre-approved home loans- The offers are extended to selected existing customers of ICICI Bank wherein you can get concession in the processing fee and the KYC documentation will be smoother.

Step Up Home Loans– Those who earn a minimum monthly income of ₹20,000 can avail the same for a tenure of up to 20 years. The best part is that it comes with a maximum loan amount limit of ₹3 crore along with enhanced eligibility of up to 20%.

Extra Home Loans– This facility allows you to enhance your loan amount by up to 20% along with providing you an option to extend your repayment period by up to 67 years. Applicants living in Surat, Greater Mumbai, National Capital Region, and Bengaluru can avail the same home loan facility. It is designed to meet the needs of middle-aged salaried, self-employed and young salaried customers.

Balance Transfer- If you have a running home loan from another bank, you can transfer your home loan to ICICI Bank and pay much lower EMIs. The interest rate on home loans is starting at 8.45% per annum.

Balance Transfer and Top-Up- You can balance transfer your home loan from other bank and also apply for a Top-Up wherein to get extra loan amount.

Personal loan linked home loan- You can avail a personal loan (top-up) linked to your home loan with ICICI Bank. You can use the funds up to 100% of the originally sanctioned home loan. The maximum tenure for this personal loan is up to 20 years.

Pradhan Mantri Awas Yojana– The first time home borrowers can avail the subsidy benefit of up to 6.5% p.a. In fact, one can also get the upfront subsidy benefit on principal outstanding.

Saral Rural Housing Loan– This housing loan scheme is for women borrowers and the weaker section of the society. The applicants can avail the loan up to 90% of the property value for a tenure of up to 3-20 years. The loan amount offered by the bank ranges between ₹5-15 Lakh.

ICICI home loan eligibility

The home loan eligibility at ICICI Bank is as follows:

  • Salaried and Self-employed individuals with the regular source of income
  • The applicant must be between the age of 21-65 years
  • The minimum age of the applicant should be 18 years

ICICI home loan calculator

A home loan calculator is a tool that is used to calculate the EMI on the loan. For example, if you are taking a home loan of ₹25 lakhs for the tenure of 20 years at the interest rate of 8.45% p.a. Your payment details will be as follows:

EMI- ₹21,617

Total Interest Outgo- ₹26,87,968

Total Amount (Interest+Principal)- ₹51,57,968

You can use loan calculator for different ICICI home loan interest rates till the time you find the combination suitable.

Canara Bank Home Loan Interest Rates, Eligibility Explained Here

Having a savings account at Canara Bank and want to take the relationship further with a home loan to buy a property? Well, before choosing Canara Bank your home finance partner, better be aware of the interest rates the public lender charges, besides the purposes for which it extends a loan. Being aware of these only helps you make a good decision with regards to a home loan that demands a long-term commitment of say 20-30 years. So, get ready to listen to Canara Bank Home Loan in detail here.

Canara Bank Home Loan Interest Rates – Key to a Smooth Repayment

The bank offers you a loan at 8.45%-8.65% per annum for purposes such as purchasing or constructing a house or flat, purchasing a site and constructing a house on the same, repairing, renovating, expanding, upgrading and creating additional amenities, etc. The interest rates you see is benchmarked to 1-year MCLR of 8.40%. The eventual rates are a spread above the MCLR. Even though the MCLR can change every month, the canara bank home loan interest rate will be reset once a year. So the interest rate will be according to the prevailing MCLR at the time of reset.

Canara Bank Home Loan EMI Calculator

Do switch on the calculator to compute the EMI and interest payable on your loan till the expiry of its tenure. The calculation depends on three variables –

Loan Amount

Interest Rate
Tenure

Since it’s a home loan, you can be slightly flexible in choosing a tenure. A longer tenure does lead to a greater payout of interest compared to a shorter one. So, if you are looking to avail a home loan of say 40 lakhs for a period of 25 years. The bank offers you the same at say 8.60% per annum. What will be the EMI and interest outgo on the same? The EMI and interest are going to be 32,479 and 57,43,726, respectively. If you tweak your application by opting a 20-year tenure, the same EMI and interest would be 34,967 and 43,91,962, respectively.

Canara Bank Home Loan Eligibility

Here’s the eligibility to gain approval for Canara Bank Home Loan.

  • All the salaried who are confirmed and have served a minimum of 3 years are eligible
  • Self-employed businessmen/professionals with a minimum of 3-year experience are also eligible
  • While the age of the borrower must not exceed 60 years at the time of loan application, his/her age must be below 70 years at the time of proposed loan maturity

How Much a Home Loan Can You Expect to Receive from Canara Bank?

The maximum loan is contingent upon the gross annual income and the cost of the property. On a general note, the maximum loan can be 4 times the gross annual income as per ITR/ITAO of the immediately previous year (for salaried). On the other hand, self-employed businessmen or professionals can get a loan of up to 4 times the average gross annual income of all the four years. However, the income needs to be supported by a documentary proof. Canara Bank would, however, won’t finance 100%. It would provide finance at 75%-90% of the property cost, with the remaining 10%-25% have to be paid from your end.

Best Loan Options For Your Home Improvement Project

Planning your home improvement can be exciting and overwhelming at the same time. It requires careful planning, tons of preparation and most importantly, budgeting.

For a kitchen alone, average costs for remodeling is at $20,474 with homeowners allotting anywhere from $4,500 for small renovations to as high as $49,000 for high-end styles.

But with many lending companies to choose from, financing isn’t that hard to have. Instant cash loans are now offered alongside some loan products with critical processes and requirements.

Before you look for financing option:

Before deciding on where to get your budget on home improvement, it is more important to determine first the actual money you’ll need. This means setting an appointment with your contractor and finalizing the whole project including its costs. Once you have your total project cost, add an extra budget for contingencies and possible minor upgrades. From here, you can now list options on where to get financing that suits your needs and terms.

Discussed below are six home improvement finance options to choose from:

1.  Home Equity Line of Credit (HELOC)

This is a type of loan in which the lender agrees to lend the borrower a certain maximum amount, usually based on the collateral presented. This is similar to a credit card where interest payments are usually on a monthly basis but the principal is payable when available, but usually within an agreed term of the line. HELOC is often used for major financial needs such as education and home improvements.

2.  Mortgage Refinance

Refinancing is paying off your existing loan using a new loan granted. Refinancing is common to borrowers who wanted to lengthen the loan term, reduce the interest rates, reduce the monthly amortizations, or when additional funds are needed.

The process is the same as the first time you got your home loan. When choosing to refinance, you’ll use the same collateral as your existing loan. The lender will again evaluate how many loans can be approved based on the collateral you submitted.

The difference between the newly approved loan and the existing loan will be the extra funds you can allocate for home improvement.

3.  Personal Loan

If the total cost of your home improvement doesn’t require a huge amount of money and you don’t feel like offering a collateral, then explore personal loans as an option for financing.

A personal loan is one of the fastest ways to obtain funds. The funding does not usually require specific use, so you can use it for home improvement or for purchasing new furniture.

4.  Home Equity Loan

If you are on a major home renovation, then you may be able to obtain a home equity to your advantage.  

The home equity loan is similar to home refinancing, where the difference between the approved loan less your existing loan is your equity loan.

5.  Credit Cards

Credit cards also have some advantages when it comes to financing a home improvement especially when the project includes purchasing some home fixtures. Some credit card companies offer discounts on purchases when the credit card is used. Some even have cashback features when a certain purchase limit was achieved.  

Home improvements can easily be funded by a credit card. Just swipe it.

6.  Save Up Enough Money and Pay Cash

What’s a better source of funding a home improvement aside from using your own savings? Yes, it will consume time and a lot of patience, but saving money little by little until you reached the target amount of money saves you from paying finance charges. It also helps you to stick to your budget.

Best Loan Options For Your Home Improvement Project

 

Choosing the Best Financing Option

We’ve discussed ways on how to finance your home improvement tackling almost all the most common financing options, but how do you decide which one’s the best for you?

Here are some factors you should consider when weighing your options:

How much money do you really need

The core information you need to derive with before settling for anything is the amount of money you really need. Do you need a huge money, or is it just a small home improvement project? For a small financing requirement, cash loans or credit cards are ideal. For a bigger one, personal loans can be an option. For major home improvements, refinancing or equity loan works best.

Know your credit rating

Excellent credit rating opens more doors for better financing options. Personal loans, particularly, requires a high credit standing. Since this mirrors how you deal with loans, bad scores also limit your options.

What will be your repayment period

Evaluate your repayment period based on the level of home improvement you need. You don’t need to pay a 10-year loan for a repainting job that most probably needs another repainting after 5 years. Make sure that you already completed paying the loan before another major renovation needs to be done.

Know the interest rates and costs

Select the best financing options with the most affordable finance costs. This is where you most need to compare selected lenders. Beware of a very attractive package that includes some hidden charges.

Planning a home improvement carries both excitement and thorough planning. Many factors should be considered, and financing is one of the crucial. But just like every endeavor, just take your time, relax, hire an expert to help you, and research more. Most importantly, just relax while accomplishing your dream home improvement.

How Big Banks Can Bankrupt You Overnight

In the time of the Great Depression, many mortgages were written with a provision that allowed banks to call in the loan at any time. As they began to stumble towards failure, they frantically called loans and foreclosed on properties right and left. According to Dave Ramsey, mortgage laws have changed since those days. This was to prevent such a ruinous cascade of events taking out both the lenders and the borrowers in an “every-man-for-himself” race to survive at the expense of everyone else. However, there are still some sub-categories of loans that remain subject to such provisions– albeit in a backdoor fashion.

The Back Door Callable Mortgage

Of most interest to the general public are the terms that can be included in so-called HELOCs, or Home Equity Lines of Credit. These are financial instruments wherein you pledge the remaining value of the house over and above that of your existing mortgage in return for the right to draw upon that sum whenever you like by simply writing a check.

Protecting the Banks

How Big Banks Can Bankrupt You Overnight

There are two major dangers with such a loan. First, it is based upon the value of the home minus the mortgage held against it. In the event of a housing market crash, that difference between the two can be effectively wiped out by a fall in value of the underlying asset (your home) that serves as collateral. Secondly, it is also based upon your ability to repay the note. If you lose your job, or your second-income spouse dies, you may no longer qualify for the line of credit you have already received.

But Not You

In these instances, banks have been known to freeze the line of credit without notice– meaning that you cannot access any more of the funds than you have already drawn out. Next, they may decline to roll the HELOC over once it does come due. This arbitrary power of the banks can create an immediate problem because there are some HELOCs which are written with annual renewal clauses in them. In other words, some types of HELOC’s can be called due at the option of the lender regardless of whether you have been making your payments on time. In most cases, that effectively wipes out the homeowner and leads to the loss of all their accumulated equity.

How Big Banks Can Bankrupt You Overnight

Put simply, if a bank decides that your relationship with them is more of a liability than an asset, they can mess you over very quickly. According to CNBC, 78 percent of full-time workers are living paycheck to paycheck. This means that for a vast majority of us, we’re one cash flow disruption away from financial disaster. This might be why hundreds of thousands of Chapter 13 petitions are filed every year. If you have exposed yourself to these types of risky loans, are highly leveraged, with minimal emergency savings, you could be setting yourself up for some very stressful times in your near future.

Your Best Bet is to Go With a Trusted Credit Union

Unlike big national banks, credit unions are non-profit entities who operate to maximize the value for their members. At a credit union, you are not just a customer; you’re a stakeholder. While credit unions and banks operate under similar federal regulations and provide similar services, a bank’s priority is their bottom line, not necessarily your bottom line. Not every bank is scummy, but on average a credit union is going to work with you more and treat you better.

The best method for finding financial peace is to get out of debt and stay out of debt. 2nd Mortgages, HELOC’s, Title Loans, and unsecured notes are not tools for your prosperity – they’re ticking timebombs. Don’t sabotage your financial future.  Escape debt, build wealth, and use it to make a difference in your community. You can do it!

5 Reasons To Shop Around For Car Financing

Your monthly car payment consists of both the principal on the loan, and the interest paid to a lender. While you may have little control over how much you pay for the car, you do have control over your interest rate. Let’s look a little closer at the best reasons to shop around for a car loan and how to get a better deal on your vehicle.

Look for the Best Rate

Talking to a local lender may make it easier to get the best rate on a loan. Those with bad credit may get better terms from an online lender compared to at a dealership. Coming to a dealer with a loan in hand may also offer you more leverage during negotiations.

Get Leverage Over the Dealership

You don’t have to accept the loan offer you got from a credit union or online bad credit lender. However, it does guarantee you can get the car you want, even if the dealer wants to play hardball. In most cases, you have 30 days to accept financing terms offered by an outside lender.

Know Your Budget Ahead of Time

If a credit union offers you $10,000 for a car, it should be a sign that this is what you can afford to spend on a car. In many cases, car dealers will try to sell you a car based on the affordability of the monthly payment, which rarely reflects the affordability of the car itself.

Check Your Credit Ahead of Time

Your credit score will play a major role in the loan terms that you may be offered. Applying for a loan before going to the dealership gives you an excuse to check your credit ahead of time. Doing this reduces the odds that a dealer tries to tell you that your credit is bad because you will know whether this is true or not.

The Lender May Check the Condition of the Car

A lender may ask for a vehicle history report prior to making the loan. This may help you find out if it has been involved in any car accidents or has other damage. Ultimately, this may also help you make a better decision about your next vehicle purchase.

Shopping around for a car loan can provides a variety of benefits. In addition to getting a lower interest rate, it can also help you determine how much you can afford prior to going to a dealer. This may help you get a good deal regardless of the tactics a salesperson may try to use.