Steps to finding the best credit card offers
April 30, 2010 by admin
First time applying for a credit card? Congratulations! You are on your way to building your own credit history, learning to manage your own finances, and become officially part of the modern world. Before you proceed, know that credit cards are not created equally- some are better than others. Although you are new to the use of plastics, you should start it right so that you will not end up exceeding your limit, or worse, not being able to pay your debts.
We will unveil three secrets that will help you get the most out of your credit card. This works for people who have been using these plastics for quite some time now, whether you are applying for a new card or exploring a promotional balance transfer offer.
Secret #1: Compare Credit Cards
The first thing you should do is to compare credit card offers and find the best deals. There are comparison sites that will help you with this so that you do not have to go from one company to another just to know about what they can give you. Simply go to a comparison site and from there you can easily see which company has the lowest rates and fees.
Secret #2: Read Customer Reviews
From your visit to comparison sites, you should pick the top 3 credit cards based on the information you got from them. Then, your next step is to search for what customers have to say about your top 3 choices. Whilst it is common to read reviews of people ranting about how terrible their credit card company is, you can spot the better ones because they have a handful of positive reviews, too. Key words such as “excellent customer service,†“great perks†and “no hidden charges†are clear indicators of a good company. However, be careful not to be fooled by fake reviews. If you didn’t know, some companies actually pay for these just to get more customers. You can determine a genuine from a fake review because the latter type is just full of positive remarks to the point that it would sound as if it is trying to sell the credit card.
Secret #3: Negotiate for Better Interest Rates
Now this is something that not many people are aware of. Yes, you can negotiate with the company. Although not all attempts have proved successful, there are many instances wherein the credit card company agrees to lower their interest rates or give you other perks such as free annual memberships. Give it a try- you’ll never know what they’ll say until you negotiate with them yourself.
FOMC – No rate changes despite signs economy is improving
April 28, 2010 by admin
The Federal Reserve today announced they would be holding short term borrowing rates at their present levels. The decision to keep interest rates (Fed Funds & Fed Discount) at their present levels was a foregone conclusion by most investors and economists. The focus of the announcement was on future signals of policy changes which have yet to be determined according to todays announcement. The FOMC believes that the economy has started to rebound as evidenced with a return to positive job growth, but also realizes that there are a number of issues that could quickly slow down groth. The Federal Reserve is likely going to continue to monitor developments in Europe as the EURO continues to plunge with concerns over debt levels in Portugal, Greece and Spain and it is hard to quantify what impact this could have on the local U.S. economy. Keeping rates at there present levels also allows the Fed to monitor the housing markets which could show signs of a slowdown when the homebuyer tax credit comes to an end at the end of April. Mortgage rates were relatively flat with todays policy news and have gain some traction to move lower following concerns over debts in the world markets, assisting with driving yields on U.S. bonds lower. The U.S. stock market rallied on the news and climbed back over the 11,000 market following Tuesday’s extensive selloff.
April 23, 2010
April 23, 2010 by admin
Strong home sales and financial reform stole the headlines for the market this week as the stock market was able to move past the SEC actions on Goldman Sachs and finish the week in positive territory. The real estate market may be taking its last strong push before the wind leaves the sails and government subsidies come to an end. Two reports this week for the market (existing and new home sales) both showed a strong surge with activity for the month of March, and all indications clearly show that April will also be a strong month for home sales. The governments tax credit incentive expires at the end of the month so the true markets strength will start to show in reports that arrive in June and July this summer.
Mortgage interest rates continue to move higher in April. Fixed rate home loans have surpassed five percent with almost every major national mortgage lender, consumers willing to pay points still can move into the high four percent range or elect for a shorter term fifteen year loan program, where rates are still well in the mid four percent range. Yields on the governments Ten Year Treasury bond finished the week at 3.81% and have pulled back slightly from their charge to the four percent threshold. International markets received some good news when financial loans to the government of Greece were approved this week, helping to ease credit concerns in the secondary marketplace.
The markets could be volatile over the next few weeks as investors gauge the governments financial reform packages. There are three definitive areas that are certain to be under stronger guidelines:
Derivatives
Winding down insolvent Banks
Off balance sheet accounting
It will be interesting to see how much of the Volcker rule makes it through the final package and what extent supermarket banks are restricted from operating as commercial banks and trading banks. Its doubtful the government will have enough momentum to go back to the GlassSeagul act and establish true separation of the financial powerhouses, especially with the millions of dollars in lobbying occurring in Washington over the present proposals. The one certainty is that the more the public learns of the Lehman and Goldman Sach’s scandals, the more Main Street will be pushing for clear guidelines and stricter rules. President Obama is clearly playing on the emotion of Main Street to help push for the legislation to move forward and the rhetoric is likely only to get stronger.
Personal Loan Options Available for Bad Credit
April 21, 2010 by admin
People with low credit scores find it difficult to get a loan. Creditors turn them down because there is that risk of not being able to keep up with monthly payments, or at least repay the loan amount. It is a sad reality, but a reality nonetheless.
If you do not have a very good credit score and you happen to be in need of money at the moment, know that yours is not a hopeless case. Whilst in the past it was almost impossible to get a lender to approve a loan for someone with bad credit, today, lenders have already realized that there is a profitable market for this and thus, there is now more than one option for personal loans offered to people with bad credit.
Let us discuss the most common ones.
1. Payday Loans- these loans are the most popular choice for employed individuals. All it takes is finding a lender that can provide you with this type of loan, provide them with the necessary information such as your full name, address, employment details, and bank details (checking account). You would need to furnish them with a post-dated check, which they will deposit on your payday. These loans are very easy to avail so as long as you meet the requirements.
2. Unsecured Business Loans-usually, people would think that it is very hard to obtain a business loan if they have bad credit- this is not entirely true. Lenders are more than willing to offer loans to entrepreneurs so as long as all the necessary documents are submitted and they have the capability to pay off the loan.
3. Debt Consolidation Loans- many of us want to get a loan in order to pay off our debts. This is especially true for those with large credit card balances because the interest rates for credit cards are very, very high. To be able to cut down on charges, people prefer getting debt consolidation loans. Although not always the case, this type of loan can be considered “unsecured†so no collateral is needed.
4. Loans from Family and Friends- depending on the kind of situation you have, this could either be your first or last option. A personal loan from people you know is recommended because you get minimal or no interest charges, plus you can avail of it without having to secure any requirements at all. Sometimes though it is difficult to loan from family and friends because they probably have no money to spare or it could also be that you are too embarrassed to tell them about your financial problems.
Consider locking in a low rate refinance before rates go higher
April 19, 2010 by admin
Everyone wants to get the lowest interest rate for their mortgage and the best way to do so is through refinancing. An ideal time to do so is before the rates begin to rise. A typical fixed rate for mortgage is usually around 5 percent. This is quite lower than the rate homeowners paid when they bought their homes a decade ago. But we cannot expect the honeymoon to last for long.
The interest rates at this time are low, because the governments programs are made to aid homeowner refinance their mortgage. The housing market though recovering is far from impressive, which is why the interest rates have been reduced to attract the buyers. This means existing homebuyers have a good chance to get a good refinancing deal.
Homeowners who have put off refinancing should act now. While the interest rates are low, they will not lay low forever. In fact, financial experts say that by April 2010, mortgage rates may climb to more than 6 percent. This is definitely a big rise over the current rates, even if it looks a rise of mere 1 percent or so. The small increase translates in the form of an increase by up to thousands of dollars over their loan amount.
The rates on the mortgage may rise due to mortgage lenders and banks getting into a position in the next three months or so. One thing to note is that though the economy is not flattering and the housing market is still bad, the home values have not dropped more than they ought to. This show that the market is down and the only place to go is up. Though the recovery may be slow, there surely will be a revival.
One of the other indications why you should go for refinancing now rather than bask in the glory of low interest rates is because financial trends follow a certain pattern. For instance, during the 1990s, mortgage interest rates on 30 year loans were between 7 to 9 percent. Compared to the interest rates that prevailed during the 70s and 80 where the interest rates were as high as 20 percent, the 90s were quite good for the consumers. The ensuing decade proved to be even more beneficial; during George W. Bush’s presidency, interest rates dipped as low as 3.25 percent in 2008. But they won’t last long as one can find from the times of the 50s. In this period, the interest rates were 3.25 percent but then it rose to 10 percent in the 70s and by the end of President Carter’s time, it topped at 20 percent. So we understand, interest rates follow a cyclical pattern.
Once the housing market gets stability which should be soon, the interest rates will rise up. The mortgage rate and banks will then act self-centric again, putting their profit motive as their first priority and the homeowner’s aspiration second. The time is still good for the homeowner now; the lenders are still looking to play into the home buyer’s hands. Since there are many homeowners at risk of losing their home and plunging the lender into big-time loss, they (mortgage lenders) are still trying to get some profit by helping the homeowner with refinance, rather than risk complete loss and go the foreclosure way.
Quick summary of pros and cons of cash advance loans
April 17, 2010 by admin
If you need to borrow money for whatever reason, you have three choices. First, you can borrow from family members or friends. This is perhaps the best option because you would not have to pay for interest and finance charges but then again, it is not all the time that they can help you. They also have their own bills to pay. So, your second choice would be to borrow money from your bank. The problem is that you would have to prepare all the necessary requirements and they would also need to run a credit check on you; the entire process will take at least a few days- not a good idea if you need money ASAP. This leaves you with the third choice which is to go to lending companies offering cash advance loans.
Cash advance loans are unsecured, short-term loans that can be availed by any employed individual who is in urgent need of money. Its popularity has continued to go up, as more and more states and countries have legalized it over the years.
Now, before you start browsing the Internet to find a website that can offer you cash advance loans, it is important that you know everything there is to know about this service. A good understanding of the pros and cons is highly recommended so that you can make a sound decision when borrowing money.
Pros
• Cash advance loans are very easy to avail. You do not have to provide numerous documents to prove your capacity to repay the loan; most lenders only require you to fill out an application form, indicate your Social Security number, employment information, and bank account information. You would also need to provide a post-dated check which will be deposited on the loan maturity date.
• These loans have very fast turnaround time. Unlike a traditional bank loan, you do not need to wait days and weeks for your loan to get approved (or disapproved). There are lenders that can offer one-hour approval, but mostly, it takes 24-hours to get approved.
• You do not have to visit a lending office just to apply for the loan. You can simply apply over the Internet. You no longer have to wait in long lines or go from one office to another in order to find a lender that will grant your loan. With online lenders, you can simply go to their website, spend a few minutes filling out the application form, and wait for notification from them.
Cons
Without doubt, a cash advance loan is very attractive to borrowers because of the many benefits it can provide. However, there are also disadvantages.
• For one thing, since this type of loan is high risk, the interest rates are higher, 15-30% of the loan amount, on average. Personal loans and credit cards are only about 3-10% per month, while secured loans (with collateral) are much, much lower because these are very low-risk loans.
• Additionally, if a borrower cannot pay off his loan on the maturity date, his post-dated check will bounce and as a result, he will need to pay NSF (non-sufficient fund) charges, the amount of which will depend on the lender’s policies.
• The amount of money you can borrow is limited; you cannot borrow large amounts. On average, lenders grant $100-$1,500 loans only, but this is great for people who do not need large sums.
Other than the abovementioned drawbacks, cash advance loans are still the most ideal choice for people facing emergencies with no other means to secure money fast.
April 14, 2010
April 14, 2010 by admin
Long term mortgage rates are continuing to move higher in the month of April as fixed interest rates have climbed to their highest levels in the last six months. Bond yields have jumped by twenty basis points, rising to 3.86% on Wednesday and they appear destined to surpass four percent in the next thirty days. The pressure for long term rates to move higher is clearly arriving from the shift into equities by investors. The S&P 500 is now at its highest level in the last 18 months, following the DOW surging past 11,000. Investors have been piling into equities and are gaining confidence in the U.S. economy. Most national mortgage lenders are now offering thirty year fixed rate home loans at 5.25% or higher and fifteen year loans are hovering in the high four percent range. If the ten year bond surpassed four percent, long term thirty year loans will likely move into the mid five percent range, their highest levels in the last twelve months.
Today, the stock market jumped following a better than expected retail sales report for March. For the third straight month, retail sales have beat expectations, a signal that shows consumers are gaining confidence and beginning to spend money again. The upbeat retail sales report also could be a signal that the job loss attrition could be on its way to bottoming out and helping consumers to gain trust and resume purchasing.
JP Morgan Chase reported a strong first quarter of earnings today, news that helped drive financial stocks to jump to record 12 month highs. The stock which was driven down to nearly $15 per share last year during the financial crisis, is closing in on $50 per share. Shares of the nations largest banks (JP Morgan, Bank of America, Citigroup) have all recovered and their viability could help to push broader lending to the business markets as the companies balance sheets begin to strengthen. Housing remains a sore point, with lenders pushing back against the government’s desire for principal balance reductions to loan modifications. To date, Bank of America is the only major lender that has begun to aggressively modify principal loan balances to keep homeowners in their properties. The governments plan to modify four million mortgages over the next two years is clearly not going to materialize without a broad change to the process consumers must navigate with lenders and loan servicers.
Ben Bernanke has been informing the markets of the economic recovery at hand, and all indications are that the Fed could begin to raise short term rates as early as the second half of this year. The FOMC clearly believes the recession has reached a turning point, but will be cautious with raising interest rates as to no slow down the growth process moving forward.
Financial options are limited for emergency loans
April 10, 2010 by admin
Want to get cash in a short amount of time, for an emergency or to pay off your expenses? Then you need to get the cash advance loan as borrowing options are much more difficult when you are pressed for time and dont have available credit lines in place. The good thing about a cash advance or payday loan, is that it provides you with money you would not be able to get till the day you get paid. It’s a quick way to get financial help and you can get it easily from your home computer. You can simply retrieve the money even before getting the check from your employer. In most cases you can retrieve the cash within an hour. The money can be essential in paying bills or emergency expenses. You are only required to be above the age of eighteen, be employed and have an account. With all that you can simply apply for the loan to help you till your next payday. You can extend the loans duration depending on your expenses but that increases the interest charges. The interest charge is about 20% of all the cash loaned. The interest is paid in full or by installments depending on how fast you are able to get the cash.
An instant payday loan is a loan that provides you with instant financial aid. It is normally an increase on the amount of money you expect to get at the end of the month. Low-income earners can apply for the loan to solve short team problems like up coming holiday then pay it later. It’s also a good way to deal with the day to day emergences when you don’t have any cash. This loan application is done online and only takes a few minutes to complete filling the contract. It may take at least 24 hours to complete to be able to get the money. You are not required to go to a bank and stand in a long queue because the process is done online. You can simply apply at home and the lender will call you just to verify the information you provided. You are only required to give the lender you age, name, address and your source of income. You can apply for this loan at anytime because these services run for twenty four hours. The money is sent to your checking account when the transaction is over. During paying of the borrowed cash the lender charges 20% of the borrowed money.
When you low on fund and have no immediate source of money the short term loan provides you with instant financial assistants. You can get this loan for fixing your house or car if you have a bad credit rating. This is the fastest way to get cash as no collateral or credit check is required. Just after applying, the money is instantly sent to your bank account. The only requirements are that you should be above the age of 18, have been employed for at least 3 months and should have a checking account. Applying the loan online is easy and without any problems. You can simply apply at the comfort of your home computer with no need of going to the bank.
April 7, 2010
April 7, 2010 by admin
Mortgage rates continuing moving higher in the month of April, despite a pullback in the stock market on Wednesday. Interest rates have climbed over .25% in the past two weeks as bond yields are moving sharply up, news that end up slowing down the real estate recovery. Major media outlets such as MSNBC are now beginning to shed a spotlight on the changes in the mortgage market and the additional media coverage should help to get some potential homebuyers to act with greater urgency to close on a new home in the near future. Yields on the Ten Year Treasury bond have moved up sharply and are closing in on 3.9%, with the possibility of surpassing 4% by the beginning of May. The move higher in bond yields has driven the average rate for a thirty year fixed rate mortgage loan past 5.25% with most national mortgage lenders and is pressuring fifteen year loan terms to the high four percent range.
The stock market has flirted with the 11,000 level as investors are gleaning to upbeat economic news over the past few weeks. Better than expected housing and employment reports have fueled the market rally, but there is likely to be more investors hedging their equity bets as the DOW moves higher, with concerns over the expected rate of growth likely to linger for a while. The FOMC appears to be eyeing opportunities to begin raising short term borrowing rates, but remain cautious in the near term according to the recent minutes from their last meeting. The likelihood for the Fed to begin raising short term rates in the 2nd half of 2010 is still a strong possibility. Consumer credit was short of expectations in a report released today, helping to drive the market lower for the first time in the past six sessions.
Weakness in the dollar and rising oil prices are two factors that could move the market in the upcoming months. The dollar is now at par with the Canadian Looney. Oil continues on a trend upward that makes the possibility of $100 per barrel of oil a distinct possibility in 2010. As oil moves higher, inflationary pressure will be felt throughout the entire marketplace, driving up long term interest rates.
April 2, 2010
April 2, 2010 by admin
The stock market is closed today in observance of Good Friday, however a number of key economic news reports were released that could significantly impact the direction of stocks and mortgage rates early next week. For the first time in the last eighteen months the U.S. economy added jobs for the month of March. The labor department today released a non farm payroll report which showed job growth of 162,000 jobs last month. The number included approximately forty thousand jobs that were created as a result of the Census polling that is now going on. The national unemployment rate remained elevated at 9.7% percent. Key sectors including construction and manufacturing showed growth last month, perhaps the first true signal that the economy has found a footing as it works on a slow recovery out of the recession from 2009.
The better than expected jobs report is going to add pressure to long term mortgage rates. Home loan rates have already risen about .25% over the last month as the bond market has seen a sharp increase in yields on treasury bonds. The better than expected payroll report could further pressure investors to drive more money into equities as well as anticipate inflationary pressure in the future. Both scenarios are likely to push long term rates to move up. Fixed mortgage rates for thirty year home loans are available just above five percent (5.125%) with most national mortgage lenders, and all signs are that they will be moving up from this point. Fifteen year loans are in the mid to upper four percent range and also will likely move north.
Rising interest rates could work against an improvement in housing. The governments tax incentive to purchase is due to expire at the end of the month and home foreclosures continue to be a problem as the government acknowledged they have failed to find a meaningful solution to loan modification assistance to date. Expect additional pressure to mount on banks and lenders to offer principal balance write downs on underwater mortgages.