The Cathford Group Credit Inc.: 5 Tips when applying for a personal loan

We’ve all been there — wanting to fund that overseas vacation since forever but can’t seem to find the money for it. Here’s where a personal loan comes in handy. Taking a personal loan could be a good option since it does not require you to have any collateral (e.g. car, house, etc.) that can be lost in case you default. But precisely because of that, lenders will charge a higher interest rate as a sort of guarantee.

To guide you in applying for a personal loan, here are five basic tips from The Cathford Group Credit Inc.:

Know your credit report. A primary factor in determining if your loan would get approved is your credit score. All lenders would definitely consult your credit report when deciding if you’re worthy to borrow, and how much interest rate to charge you if so. It will benefit you to get an idea of your credit standing so you should request for your credit report and make sure it has accurate and complete information. This will prevent all kinds of hassles in the future and will also let you know just how much interest rate you can be eligible for.

Decide how much you need. Your chances of getting approved are higher if you apply for as little amount as possible (based on your income). For instance, if the amount you ask is significantly lower than your current income, your lender might be willing to make considerations even with a low credit score.

Decide how much you can pay. You should decide early on just how much you can afford as monthly payment once the loan goes through. When you’ve calculated this, ask your lender for a payment plan where you can return the money in as little time as possible using the monthly budget you’ve determined.

The Cathford Group Credit Inc. warns that you should be aware of repayment penalties that might be included in your deal. Some lenders could have this penalty fee for when a client pays off the loan early so make sure the loan you’re getting doesn’t have this.

Be honest. When a lender tells you they do not require papers as evidence of your actual income, there’s a big tendency for you to overreport. It is not only advisable to be honest in reporting your income, it is imperative. Claiming an income which you cannot support with valid documents is a sure-fire way to get your loan denied and has the potential to land you in jail. Always make sure you provide all the necessary documents, even when you think it won’t improve your chances of getting approved.

Don’t push your luck. Sometimes, people would apply for a personal loan that they’re aware they won’t get approved for — you know, just to try it. Aside from the fact that there’s a lot of effort involved betting on this wishful thinking, it can also make things difficult for you when you apply for a loan for real. See, every single time you apply for a loan, it gets included in your credit report. But things won’t get bad until an application gets rejected — your future lender will ask all kinds of questions regarding that and will make them see your credit standing in a bad light.

The Cathford Group Credit Inc: Tips on buying foreclosed homes

RealtyTrace has released a new report last week saying that around 7 million US homeowners who lost their houses are now in a good position to buy again.

Short sales and foreclosures have increased exponentially 7 years ago after the so-called Great Recession and the years of financial crisis. Now, with the economy finally getting its momentum and employment rate increasing, homeowners who got foreclosures could have a good chance in the market again.

According to analysts from The Cathford Group Credit Inc., although the modest estimate of rebuilding a decent credit score  is 7 years, it is possible for  homeowners to recover from their foreclosures in as soon as 3 years. This is good news for owners who lost their properties during the financial crisis of 2007 as they should be able to qualify now for a new loan.

So if you’re one of those, here are a few tips to guide you in purchasing a foreclosed house:

Go online and search for REO (real estate owned by a bank) property listings in your chosen area. The REO tag means that the house has been foreclosed and that it is now put on the market by the lender.

A foreclosed house come “as is”, which means that the buyer will have to shoulder costs for any repairs on the house that might be involved. And there is very little room for negotiation so don’t keep your hopes up for any discount.

Secure a pre-approval letter from your lender even before you start making offers. Oftentimes, buyers would remember to engage a real estate broker first thing, and then forget the all important factor of how to get financing. Keep in mind that banks will almost always require proof of financial capability so this letter is essential — unless of course you’re paying in cash.

The letter should state just how much money you’re qualified to borrow depending on your income and credit score, as per the analysis of your lender. This has an added benefit of showing your real estate agent that you’re really serious about making a purchase — an important factor for the agent to choose who to prioritize among his several clients.

Check recent prices of comparable properties in the area of your choice.

The Cathford Group Credit Inc. was able to determine a number of markets which are expected to have the most number of prospective buyers.  Areas like Las Vegas that are hit the most during the crisis will now have house prices significantly cheaper for average buyers to afford. But because it is expected that the majority of the market consists of the Baby Boomers and Generation X, areas like Minneapolis, Chicago or Florida will top the lists.

The Cathford Group Credit Inc. Financing and Loan: Doing it now

With the global financial crunch still wagging its massive tail in many parts of the world, it is essential to know the fundamental principles in monetary management, whether for business purposes or for personal reasons. Taking out a loan nowadays is an open and viable option for anyone who has the basic skills to utilize such funds for whatever reason it may be.

What if the purpose is to invest funds in a money-making venture? What are the risks involved? What steps must one take to ensure that one does not end up losing one’s pants?

Here are some general tips to consider when considering taking out a loan for a business venture:

  1. Interest rates are at an all-time low; so, take out a loan now

Now is the best time to go get that capital for your business expansion or to start up a small business you have always wanted to put up. Considering that even government housing loans are only about 11%, down from the previous 16% level it was a year back, things point toward lower rates in other sectors. No question about the value of borrowing at much lower rates and today is the right time to do it.

  1. Small loans are a-plenty; so, start at your level

Most microcredit facilities today allow individuals with no steady source of income, have no collateral to put up and no credit history to get small financing to alleviate poverty and for small business capital. Repayments schedules are not as stringent as commercial loans since a borrower individual can pay according to how much he or she can afford on a daily or weekly basis from the proceeds of the small business.

  1. Borrowing to put up a savings account

People are often encouraged by banks and government officials to save up. However, in many countries, the percentage of people who have savings is very low as their income is generally used for prime needs such as food, shelter and transportation. After all those items are paid for, nothing is left and many even borrow to cover the deficit they inevitably experience, leading them to pile up their debt.

So, why not borrow in order to put up a savings account? If you can borrow at a low rate and put it in a bank even at a lower interest rate, that might end up being better than the loan shark’s rate or having to borrow constantly. With a buffer in your bank you can turn to for a couple of months or more, the stress and the inconvenience might end up being much less for the entire family or the individual.

  1. Borrowing to augment a necessary expense

If one rents a home or plans to put up a new one, borrowing can take a big chunk off your regular monthly budget. Or if one plans to purchase an appliance, say a washing machine or a ref, and one does not have the cash to buy one, borrowing even a portion of the cost for a down-payment or to augment whatever savings one has, will answer the need. One does not need to borrow all the money needed for an expense. Saving part of the money then borrowing the rest will do the trick. The same thing goes with renovating a house or fixing a car or even expanding a small business.

Many people fear borrowing is tying one’s neck to someone or something that will end up having total control over one’s life and future. That is basically a mental trap that most people cannot avoid because of certain experiences they have had. But we can turn around that attitude into one where we will have more control over one’s finances and expenses. A sufficient amount of knowledge and monetary discipline will go a long way toward gaining good experience in financing and acquiring loan.

The Cathford Group Credit Inc: 5 Tips For Getting Your Bank Loan Approved

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Getting a bank loan approved is not the easiest process. In light of recent economic troubles across the nation, lenders are looking for a lot more in a loan applicant and are more strict. While there are several key areas lenders will be focusing on, it is important that you are ready to present the perfect, complete package for review if you hope to get approved.

Here are 5 important steps you need to follow to ensure you bank loan can be processed without problems:

  1. Understand your preferences

Before heading to your bank, check out loan packages online and see what competitors are offering. You need to be aware of what kind of loan you are looking for, the terms you can reasonably afford, and your goal for paying off the loan as fast as possible. If you are looking for a specific type of loan (auto, mortgage, personal) make sure you find the best deal for you. There may be many loan offers arriving in your mailbox, but check out the fine print before going further.

  1. Ask questions

When you find the loan package you are most interested in, contact the bank directly to find out upfront what the requirements are for loan eligibility. You may need to make an appointment in person to discuss the necessary materials, documents, and timelines you will need to get started on the approval process. Banks have different requirements and it will be important to know what they are upfront so you can be prepared.

  1. Know your limitations

If you are pursuing a loan, you should already be aware of your credit history and current score. The bank should tell you the range of credit scores required for loan approval. Plan ahead and request a copy of your history and score several weeks prior to your application. Review your credit history for accuracy and give yourself time to correct any errors in your history report. Lenders today will rely heavily on your past usage of credit. If there are mistakes on your report, you may end up with a lower score which can hurt your chances of loan approval. Consider your financial limitations when planning for a loan. Apply for the loan based on your financial ability to make repayments you can afford.

  1. Create a checklist

Based on the information from the bank, it’s wise to create a checklist of the appropriate documentation needed for the loan application. It can take some time to secure the documents you need from creditors, your employer, and other financial resources. Incomplete applications can be cause for loan denial.

  1. Have the right expectations

Again, applying for a loan when you’re in a hurry is never a good idea. Loan officers have a certain protocol for approving a loan and getting you the money. During the process, make sure to discuss the sequence of events so you’ll have an idea of when to expect an answer. While some loans can be pre-approved upfront, the specifics may not be known until a few weeks have passed. Ask the loan officers for advice on following up. Your goal will be to secure a loan you have the means to repay. You may also need to outline the reasoning behind the loan. If it’s a personal loan, the lender might want to know how you plan to use the cash, for example, you may need it for home improvements or debt reduction. The loan process can be a frustrating one and if the loan you applied for is not approved, the lender may provide the specific reasoning behind the denial. It can be dangerous to your credit to continually apply for just any loan you think you may be able to get. Too many loan applications can ruin your credit and obliterate your chances of securing one in the near future.

The Cathford Group Credit Inc Personal Loans Guide

Why make it personal? There are times in your life when despite your best efforts you fall short of the funds you need to achieve what you desire. Personal loans can provide a way of achieving what you need in the present by allowing you to pay it off in the future.

Whether you are trying to consolidate your debts, booking an overseas trip or need the money to set up a nursery, we will show you what type of personal loans are available so you can feel comfortable choosing the right one, at the right price.

What to consider when choosing a personal loan

1. The benefits of a personal loan

2. Types of personal loans

3. How to get the best deal on your personal loan

4. Personal loan application Checklist

5. Star Ratings

  1. The benefits of a personal loan

What’s the difference between a credit card and a personal loan, which both give you access to money you don’t have? The main benefit of a personal loan and what attracts many people to this option compared to a credit card, is that their interest rates are usually lower and you have an allocated time frame in which to pay the loan back. This means that it’s often easier to pay off and you could save you a lot of money in interest.

  1. Types of personal loans

Secured, unsecured, variable, fixed? With lots of options can sometimes come confusion but it’s important to do your research and pick a loan type that is going to suit your personal needs. A few minutes of reading here could save you a few bucks too.

We have broken it down for you so that you can quickly, and hopefully easily, identify which person loan type is going to meet all your requirements.

– Secured

– Unsecured

– Variable

– Fixed

– Overdraft

– Line of credit

  1. How to get the best deal on your personal loan

Identifying the need, doing your research and shopping around will ultimately pay in dividends and lead you to uncovering the best personal loan for you.

If you have a loan amount in mind and have identified what type of loan you require then it’s time to get serious and start comparing. Comparing home loans doesn’t mean hours of leg work, instead kick your feet up and start comparing some of Australia’s best personal loans online. To use the RateCity personal loans comparison tool just visit our personal loans page, select which option you would like to search for, whether it’s just compare, low interest, or debt consolidation, then simply enter in the required information so that we can filter the search results to you.

  1. Personal loan application Checklist

– Work out the amount you want to borrow.

– Calculate how much you can afford to make in repayments.

– Work out how long it will take to pay off, and how often you want to make the repayments (weekly, fortnightly or monthly.)

– Decide whether you will require a secured (if buying an asset such as a car) or unsecured loan.

– Will a fixed or variable rate personal loan suit you?

– Compare personal loans online, look for one with a lower interest rate and lower fees.

– Organise any documentation and paperwork that is required to support you application and have this ready.

– That’s it! You are now ready to apply online.

  1. Star Ratings

CANSTAR star ratings are a consumer-friendly benchmark that help you compare financial products based on their rates and features. We evaluate literally thousands of products from hundreds of finance institutions. Products offering superior value are awarded five stars.

 

The Cathford Group Credit Inc: Should You Get a Personal Loan? Tips to Find a Cheap Unsecured Loan

If you need money to meet basic expenses, fund your wedding or take a vacation, you’ve probably considered getting a personal loan – a loan where you don’t put up any collateral, such as your house or your car, that the lender can repossess if you default. Because the lender has no guarantee for the loan other than your own reputation, you’ll have a higher interest rate than you would with a collateralized loan.

Personal loans are rife with pitfalls. Used correctly, they can save a significant amount compared to payday loans, overdrafts and pawnshops. However, there are many unscrupulous lenders who may try to bleed you with fees and high interest rates. Here’s how to find the best personal loans without paying too much.

What’s my credit score?

Since you aren’t putting up any collateral, the loan terms will be based on your creditworthiness – your credit history, your income and what other debts you have. Be sure to check your credit history and score for any inaccuracies before applying.

Pro tip: If you don’t know your credit score, check it for free by signing up for a credit monitoring service and cancelling during the grace period.

If you have good credit, you can probably get a personal loan at a decent rate with your current bank. If you have less-than-perfect credit, don’t be tempted by “no credit check” offers. Payday lenders often charge exorbitant rates and can often be avoided.

Where should I get a personal loan?

You can get personal loans from any number of institutions:

  • Credit unions
  • Payday lenders
  • Peer-to-peer lenders
  • Credit building groups

Your best bet is probably your local credit union. Because they’re not-for-profit, they can charge lower rates than for-profit banks; federally chartered credit unions have limits on the rates they’re allowed to charge. Even if you have less-than-perfect credit, credit unions can help: many have payday loan alternative programs that provide loans at the lowest price to people who’d otherwise be denied.

Another good option is peer-to-peer lending groups like LendingClub and Prosper. While the rates might be a bit higher than those at credit unions, you may find it easier to qualify. Remember that these companies are for-profit, compared to not-for-profit credit unions. If you’re really in dire straights, consider a credit building nonprofit that will get your finances back on track. The Credit Builders Alliance can help you find a program in your state.

Pretty much all personal loans require income verification (such as a W2 or pay stub) and identification (such as a passport or driver’s license); some ask for bank statements or tax returns.

Finding the lowest rates

Here are a few tips to finding the best loan.

Compare your options. Is a personal loan cheaper than a low-interest credit card? If you have good credit and can pay off the loan in 12-18 months, you can probably get a credit card that has 0% interest on purchases for a year or longer. Take a look at credit unions, too, before going with banks.

If you have bad credit, find a co-signer. Having a co-signer with good credit allows you to piggyback off of their creditworthiness and potentially get better rates. However, use this option only if you trust the co-signer completely, as any mismanagement goes on your record as well as his.

Consider a secured loan instead. If you have a house, consider using it as collateral in order to get lower rates. A home equity loan or home equity line of credit can often be cheaper than a straight-up, unsecured personal loan. Keep in mind that using your home as collateral means that if you default, you could lose your home.

Pay off as much of your credit card balance as you can before you apply. The outstanding balance on your credit card – even if you pay it off at the end of the month and never pay interest – counts against you when a lender runs a credit check.

Borrower beware: What to watch out for with personal loans

Unsecured lending can attract unsavory players, but even with the squeaky-cleanest of lenders, it pays to keep an eye out for gotchas.

Prepayment penalties. When a lender tries to estimate how much money they’ll make off your loan, they usually assume that you’ll pay interest until a certain date. Paying off the loan too soon – and therefore limiting the interest you pay – screws up their calculations. In order to keep their numbers straight and pockets lined, some charge a fee for paying off the loan before a certain date. Such fees are called prepayment penalties or exit fees. Be sure to look for the words “no prepayment penalty” on your loan term when you apply.

 “Optional assistance” and other fees. If you grant the lender permission to withdraw from your checking account, they might take out so-called “optional” fees that you never heard of. The lender can automatically deduct them from your account, potentially causing your checking account balance to go negative.

Accidental overdrafts. Again, if you link your loan to your checking account for automatic payments, you might be in danger of an overdraft. Overdraft fees can run $35 a pop, and they can quickly add up. It’s harder to know that you have a low balance in your checking account if the lender deducts your payment behind the scenes. To avoid this, consider:

  • Opting out of automatic payments
  • Setting up a low balance alert with your bank
  • Signing up for a third-party service like Mint that offers low balance alerts

Scam artists. Though many lenders are honest and goodhearted, a look through literature will show that usury has been around since man walked upright. Payday loans, in particular, tend to attract the bottom of the humanity barrel. Before you sign up for any loan, particularly online, check out the Better Business Bureau and Federal Trade Commission to make sure the organization is legit.

 

The Cathford Group Credit Inc : Lending Money to Family Members – Is it Ever a Good Idea?

It’s harder than ever for young adults to save and get ahead in our current economy. Modest incomes and college loans make it tough to assemble enough cash to purchase a car or make a down payment on a house. It doesn’t help that credit standards have tightened, putting bank loans out of reach for those without a strong credit history.

It’s no wonder people are looking to family members for some financial help, and while you may want to help, lending to a family member isn’t always the best idea. I am not saying it can’t work, I actually borrowed from my dad when I was right out of college. Here are a few reasons why you may want to think long and hard before you make that loan to a family member:

Tricky to negotiate

When family is involved, people tend to think with their hearts rather than their brains. Settling on terms that are agreeable to both people involved is easier said than done. One person may view the loan as more of a favor or obligation than a business transaction, setting the stage for misunderstanding. And when opinions differ about the size of a loan and the terms of repayment, it can be difficult to find common ground.

Lack of enforcement

A conventional loan has built-in rules that help keep borrowers on track. In contrast, there’s often a nebulous framework surrounding a family loan. If there’s no consequence for a late payment, there’s little incentive to make payments on-time. As a result, a loan to a family member can stretch from months to years to decades, simply because it can.

Altered relationship

Money has a way of driving a wedge between the best of relationships. A family loan changes the dynamics between even the most well-intentioned family members. A loan tips the balance of power, and one or both parties may find themselves feeling resentful once money has changed hands. Suddenly the lender has the upper hand, and the borrower may feel angry at the lender’s scrutiny of spending habits. Similarly, the lender may feel entitled to be more involved in the borrower’s personal life, creating unpleasant friction.

Ripple effect

A loan within the family can cause problems beyond the borrower and lender. Other family members may frown on the loan. Siblings or cousins may be jealous. Grandparents may feel protective; parents may want to intervene. Aunts and uncles may take sides. As more people and emotions are dragged into the fray, the stickier it can be.

High potential for default

Individuals who borrow money from family members often do so because their credit is shaky, which likely means the risk of default under these circumstances will be higher than average. The takeaway? Make sure you can live without the money before you part with it.

Poor rate of return

Lending money to a family member is rarely a good investment if you’re weighing your return in hard dollars. You may never see a dime of principal, let alone interest. If you’re satisfied knowing your money helped someone you care about, then you may be okay with a low rate of return.

No going back

Once you’ve extended a family loan, it’s hard to undo. The money is out there, with uncertain promise of return. Feelings can be easily hurt and difficult to repair. If you can’t afford the risks that come with loaning money to a family member, you’re well within your rights to say no. But if you do decide to provide a financial loan to a family member, do yourself a favor and consult an expert. Meet with your financial advisor to determine how a loan will impact your overall net worth and what steps you can take to make up the deficit. It’s also a good idea to draw up an agreement with terms of the loan, including clear expectations for repayment.

By Byron Ellis (Financial Columnist)