Category Archives: Uncategorized

Will Student Loans Become More Expensive Under President Trump Administration

Many consumers have launched opposition to the proposal by Betsy DeVos to cancel the reform on student loans collections in Obama administration because they say it will make it harder for students to make repayment on the loans. This will eventually cause many students to fall into defaults. Last year, it is estimated that over 1 millions students has ended up in default over student loans. The move suggested by Betsy DeVos, the education secretary, aims to help student loan service companies to win the federal contracts that will expire in 2019.

Navient is a student loan servicer that fell victim to the Consumer Financial Protection Bureau (CFPB) because of being accused of committing a variety of abuses on the consumers. Navient is one of the finalists for the federal contract that expire in 2019. The lawsuit claims that Navient deliberately charge high interest and fees on borrowers who are making repayment. It claims that Navient allows borrowers to postpone repayment at a high cost instead of offering a complete restructure on the loans. It states that Navient did not reveal options that allow borrowers to avoid default. If the move proposed by Betsy DeVos comes through, Navient and other student loan service companies will become winners and they will no longer be subjected to the guidelines established in Obama administration.

According to Bergeron, servicers refused to direct borrowers to more affordable loans because it will increase their costs for having to hire more representatives to spend time on the phones. Bergeron said that these servicers are making money by trying to cut down cost on the student loan services. He argued that Trump’s administration puts more interests on profits rather than taking into account the welfare of the consumers.

New guidelines was submitted to the FSA office by the education officials last year. The FSA is responsible of awarding contracts to student loan servicers. On Tuesday of last week, DeVos send a memo to the chief operating officer of FSA that claim the process is flawed because of inconsistencies in the setting of deadlines and the frequent changes in the requirement that need to be fulfilled. She emphasizes that it is important for student loan servicing companies to provide good customer service and be upfront on all the lending terms to the borrowers.

The National Council of Higher Education Resources is currently requesting lawmakers to perform an evaluation on the servicing contracts and remove the extra requirements that are giving student loan servicing companies a hard time. The Education Department has rescinded a rule under the Obama administration that do not allow student loan collection companies to charge fees on borrowers who opted for a 60 days repayment agreement.

What Type of Installment Loans are Tied to Your Bank Account or Assets

Normally, you need to have a checking account when applying for a traditional bank loan. It is very easy to apply for a bank account but there are some people who do not yet have a bank account. It could be because they have to use up all their income to meet the monthly expenses and cannot come up with the minimum deposit to open a bank account. You don’t have to worry about cannot get a loan if you don’t have a bank account. Nowadays, there are a lot of alternative loans that do not require a checking account. Most of these alternative loans that do not require checking accounts are secured loans.

An example is payday loan which does not list checking accounts as a necessary option. If you don’t have a bank account, you can go to the payday loan shop to collect the funds. Some payday loans shops will charge extra fees if you want to collect the funds at their shops instead of having it wired to your bank account. Payday loans is ideal when you don’t have any money on hand to meet the emergency expenses for example home improvement. When you get the payday check next week, you can submit the repayment for the loan.

Car title loan is a type of small secured loan that allows you to borrow against the value of your vehicles such as cars, trucks and motorcycles. With a car title loan, you can borrow up to 25%-50% of the value of your vehicle. You can be eligible for a car title loan if you have a lien free car title. There is a small fee that you have to pay when you apply for a car title loan. The loan term is usually 30 days and failure to pay by the due date will cause your car to be repossessed. They will send people over to your place to evaluate the car before approving the car title loan. The process can take as little as 30 minutes for them to evaluate the car and release the funds to you.

If you search for no checking account loans or similar keywords on the web, you will find that there are a lot of websites that offer loans for people that do not have any checking account. Your income proof is the only thing that they want to see. The monthly salary that you are receiving must be more than the amount that you are borrowing. They will not be performing any background check or look at your credit report to determine whether you are qualified for the loans. Besides, you also have to be a US citizen and be at least 18 years old to qualify for the loan.

How short term lenders evaluate borrowers besides just their credit score

Getting a loan is not easy as you have to convince the bank that you are capable of paying off your loan. They will be reviewing your loan applications by taking into account many factors as they want to minimize as much risks as possible before approving your new loan. Some lenders will scrutinize your credit score, job status, assets and overall credit worthiness. Depending on the lender and your risk, there are other variables that are often considered. The following are some areas that installment loans network, a short term loan comparison website indicated most lenders scrutinize when reviewing your loan application.

Length of Time on the Job
Having a stable job is important as it is the proof that you can manage the monthly repayment. Many banks have minimum requirements that you must be employed for the past 6 months. If you frequently change jobs, your application may get rejected because they will see you as a borrower in the high risk category. If you just started on a new job, you might want to wait until 6 months before applying for the loan.

Working with a large company that give you paycheck every month can increase your chances of getting approved for the loan.
If you receive cash instead of paycheck for salary, it may be difficult for you to get a loan approval because you cannot come up with any proof to prove you have adequate salary to make repayment every month. Therefore, if you are planning to get a loan, make sure the job you do will pay you the salary in a way that can be recorded for example direct deposit into your bank account or paycheck.

While age itself is not a factor, being able to document your income in many situations will be a variable. Most retired borrowers survive on fixed income but your loan can be rejected if the fixed income is much lower than what you used to earn. Young borrowers in their 20s should have no problem in getting a loan approval if they can prove that they have enough of a monthly to cover for the repayments any of their current debts.

Owning a Home
Taking a loan or mortgage can cause your credit score to drop slightly but this should not be something to worry about. As long as you make the repayment on time, you will be able to build up your credit rating in as little as 6 months. Getting a loan can help you to achieve a good credit score if you are responsible and always pay back on time.

In conclusion, you must have the capability to meet all the requirements prior to applying for a loan. You must remember to always spend time shopping around and compare the interest rates from different creditors before submitting the loan application.

Take Advantage of 50,000 Bonus Miles From Citibank

Do you hold a CitiBank AAdvantage Platinum Mastercard? How would you like to earn 50,000 AAdvantage Miles? CitiBank is now offering up a hefty bonus, worth about $600 to anyone who has the CitiBank AAdvantage Platinum Mastercard and is willing to open up a Citigold checking account, as well as meeting other requirements. None of the requirements are hard to meet.

To apply for this sweet bonus, visit There you will see an entry box to input an invite code, here is where you enter in special offer code 42ERCWNQU6. This offer only holds up until December 31st, 2015, so if you are interested, do not wait to long, or this offer may disappear. The offer has a few requirements, but nothing to steep. For starters you must use $1000 on the debit card with in 60 days of opening it, and you must also do a bill pay for 2 consecutive months.

Now the dirty details. For one this account, the Citigold checking account has one of the highest bank fees I have ever seen, it carries a $30 monthly fee, though this fee is waived for the first two months. Now you can totally escape this fee and still walk with 50,000 AAdvantage Miles. Simply perform all the needed steps to obtain your bonus points. Once you have completed all the steps involved, simply downgrade to a basic checking account, which does not have this fee, though you will be required to do direct deposit and also to make use of bill pay. You can also opt to close down the account after you make use of your 50,000 AAdvantage Miles.


If you are worried about not having enough cash on hand to fund opening the account you do have options. CitiBank allows you to fund your checking account with a Visa Or a Mastercard, upwards of $100K. In order to make this happen you must fax or snail mail to them an authorization form. You can use any Bank Of America, Barclay, or Citi card to fund this without it being considered a cash advance, any other card will likely be considered a cash advance.

You likely will receive a 1099, since Citi cuts a 1099 on any bonus exceeding $600. that 50,000 miles may trigger a 1099, but it is not yet clear how much Value CitiBank places on those 50,000 miles. Just be prepared in case there are any tax ramifications involved with this offer, as you do not need trouble with the IRS.

All in all this is a rock solid offer. They do not require you to do too much to receive that 50,000 miles. Yes the checking account comes with a hefty fee, but that fee is waived for 2 months, so you should be able to complete the offer, then simply downgrade the account or close the account out. There are no tricky loans that you need to apply for in conjunction with the card offer and it is meant as a great way to get a ton of free bonus mile. In essence, its pure profit, easy terms to meet. This could go a long way towards offsetting holiday expenses once you cash in your miles. You could also opt to use those miles for yourself.

Reviewing Multiple Lending Offers That Most Banks Offer

Banks offer several different types of lending products, each with their own perks, pros and cons. Understanding each loan product, when they are best used, and their potential drawbacks is critical if you ever need to borrow money from the bank. You want a loan product that best suits your lifestyle and unique financial situation. We will discuss the various lending products offered by banks and go over when they are best utilized.

Personal Loan

Banks have started to offer these once again. These loans work best if you do not own a home or other asset that you are willing to borrow against or use as collateral. All these loans require is your signature in most cases, although there are options for some of these loans to secure them with collateral in return for a lower interest rate.

You can use a personal loan for anything, with no restrictions, unlike many other loan products. You can use these for home repairs, car repairs or even that trip to Jamaica you have been wanting to go on. Repayments have a set payment amount and a set period of time to repay the debt. You should aim for a fixed interest rate versus a variable interest rate, or else you risk an ever compounding interest debt.

If you want the best possible deal go with a credit union if at all possible. Since credit unions are not for profit, they can afford to give borrowers better rates. In fact they tend to offer rates 2 percent below what banks offer. It used to be harder to join a credit union, but today the rules have been loosened to join, and membership with a credit union is well worth having.

Home-Equity Loan

If you own your own home and have some equity built up, and you need to make a major purchase, a home-equity loan might be your best option. These loan products are very similar to HELOCs, except in two major aspects. The first being that you can borrow a large lump sum of money immediately. Secondly you can obtain a fixed interest rate for the lifetime of the loan. The benefit of this type of loan is that you will know exactly what you owe, exactly what you monthly payments will be, and the assurance that your rate will never go up. The drawback is that your house is used as collateral, if you fail to repay the loan you could lose your home. Obviously if you are confident of your ability to repay the loan this should be of no real consequence.

One of the major drawbacks is that you cannot pay of these loans early without facing a penalty. This is known as a prepayment penalty and home-equity loans are famous for imposing these. Banks also only offer loans for less than 50 percent of the equity you have in your home, to protect their bottom line and investment.

Home Equity Line of Credit

This type of loan is available if you own your own home, have some equity, and want to use that equity for a quick cash injection for purchases whenever you need it. These are known as HELOCs or home equity lines of credit. The benefit of this type of loan is that you do not need to take out all the money at once, instead it acts as a stand by line of credit that you can tap into on a moments notice, such as in the case of an emergency. Once you have your HELOC you are able to use it right away or keep it as a safety cushion. These loan products come in handy for contractors, freelancers and others who have variable incomes and need to tap into a quick cash injection on a moments notice. You can use checks or debit cards to utilize your line of credit. The drawback is that the interest rates are always variable, there is no such thing as a fixed interest HELOC. To counter this drawback however, any interest you pay on a HELOC is a tax deduction, for balances of up to $100,000.

Tax season brings increased identity theft risks

Depending on where you live, you have a little over one month left to file your taxes. For many people tax season is a great relief as in coincides with some extra cash for your budget. For others, it is a difficult period of time as they have to scramble to make extra money. In this final tax countdown it can be easy to lose sight of important security measures. Here are a few tips for keeping your identity safe during tax season:
• Keep all your tax preparation documents in a locked drawer or file cabinet when you are not at home. Leaving these documents out opens you up for identity theft by a burglar or in-home employee.
• Track your mail carefully when you are sending or receiving tax documents. Check to make sure that these sensitive documents are received properly.
Safeguard tax documents at your workplace or office. Don’t leave W-2 records out where a co-worker or thief could access them.
• Ask your tax preparer about their security policies. How do they store your tax records? Do they share your records with a third party?
• Keep old tax return records in a safe place. Instead of a box in the attic, try a locking cabinet or safe deposit box.
• Avoid tax related scams and frauds. Identity thieves and con artists love to prey on consumers during tax season. Read about common scams online here.
• Investigate suspicious changes in your taxes or notices from the IRS. Identity thieves can file using you personal information or can claim your children as their own dependents.
Shred! Securely destroy any unneeded copies of tax documents by using a cross-cutting shredder before throwing them away.

Do you have more tips for a happy and safe tax season? Share your suggestion and feedback in the comments section below! We are on a mission to bring the best financial and money saving tips to the market to help consumers get lower loan rates, pay off their debts, review credit card offers and save money for their rainy day funds!

The Return Of Interest Only Mortgage Loans in 2015

Interest Only Mortgages…good idea or disaster waiting to happen

Following the 2008 housing crisis, it is likely that by now most people have heard of interest only mortgages. This type of mortgage is somewhat controversial because none of your payment goes against the principal amount of your loan. This means that if you borrow $300,000 to buy a house, even after you make your monthly payment…you will still owe $300,000. You haven’t paid down the balance at all.


If you have an interest only loan locked in for 1,3,5 or 7 years then you’ll still owe $300,000 after years of making payments.

So, the million dollar question is “are interest only loans a good idea or a disaster waiting to happen?”
What’s wrong with making payments that don’t lower your principal? Most people only live in their house for 5 years or so. After making payments that include principal for even 5 full years will only reduce the principal amount by a very small amount. So, in my example above you may still owe the bank $297,000 out of the $300,000. Not worth it in my opinion.

If after 5 years you sold the same house and netted (after the real estate agents ripped you off to the tune of 5% or so) $320,000 then you still walked away with a $20,000 tax free profit. So, what would have been the value of paying a much higher monthly payment just so you could pay down your loan a few thousand dollars…which you’d get back when you sold the house anyway.

Most of what you’ll make on your investment you’ll make in appreciation…not principal balance reduction. So, the smart play is to get in the house for as little as you can and allow it to appreciate.

And yes, your house is an investment. Never EVER get emotionally attached to your house. In fact, if you live in an area that has steady real estate appreciation the best investment you can make is to buy a fixer upper, fix it up, live in it for two years and then sell it by yourself (no real estate agents). Your profit is 100% tax free. If you never get emotionally attached to your house and you don’t mind moving every two years then you will make big bucks. So big, in fact, that after you do this 5 or 6 times you should be able to pay cash for your next house.
Back to my subject, interest only mortgages.
Let’s plug in some numbers…

Say I borrow $300,000 interest only at 6%. Multiply $300,000 by 6% and you get $18,000. Divide that by 12 and you get $1500. That’s your monthly interest payment. That’s much less than you would pay if you had to pay principal as well.

What’s the drawback? My father and I had a discussion about interest only mortgages and his argument is “you never own any part of it.” Good point…but who cares. After 5 years you’re still only going to own the toilets and maybe some of the windows. Who lives in a house for 30 years and makes their 360 payments? Even my father has refinanced his mortgage several times over the past 10 years and guess what…every time he refinances he starts over again…he still owes someone 360 payments.

Here’s the only drawback I see…

Some people will use an interest only mortgage to get into a house that is way too expensive and which they could have never purchased with a conventional principal and interest mortgage. They think that just because you can qualify for $300,000 that you have to borrow $300,000.

What if you lost your job or were unable to refinance the interest only mortgage and buy more years of lower payments? Eventually your interest only loan will have to be refinanced, paid in full or allowed to convert to a loan which requires principal payments. In the last case your payment will shoot through the roof and you might default on the loan…aka foreclosure.

If you are disciplined enough to NOT borrow the max on an interest only loan you should be just fine.

Ohio Banks and Credit Unions are Top Rated for Personal Loans

Finding reliable places for personal loans in post financial crisis America is scary at best. With so many big banks caught up in the loan scandals that sunk the economy in 2008, whom can you trust to give you the best rates with the safest guarantees? Short term payday lenders are a risk that everyone should steer clear of, but what other options than big international banks and predatory lenders are there? Local Ohio banks and credit unions are a good solution. Not only are they a part of the local community, but credit unions are owned by their members, not faceless stockholders, so as a member, you know your credit union is looking out for you.

Ohio banks and credit unions are directly involved with the communities they serve. It’s in their best interest to see that they thrive. That’s why credit unions and banks in Ohio are top rated when it comes to personal loans. They’re invested in making sure they do right by their customers and communities. 76% of Ohio banks have been ranked as superior or excellent by Bauer Financial of Florida with only 6% rated at the level of troubled, or problematic. Ohio credit unions have a superior or excellent ranking of 67% with only 1.7% of credit unions receiving bottom ratings. This puts Ohio banks and credit unions above the national average. The Bauer Financial of Florida rankings are determined by such factors as capital, profits, liquidity, the status of any delinquent loans and losses from those loans, ratings of community reinvestment and issues regarding regulations.

Strong ratings make a difference to individuals looking for personal loans. Banks with weaker ratings may feel pressure to cut expenses. This can take a toll on the quality of customer service it provides and can result in a string of bad business practices that leave banks with outdated technology and a lack of focusing on their customers’ needs.
Banks with superior or excellent ratings have a greater opportunity to offer personal loans at more competitive rates. By their being in good standing they will also have the staff to ensure that their customers need and wishes for their financial future can be met, while making sure their banking technology keeps pace with the latest improvements to provide the smoothest financial transaction experience all around.
It’s hard to know which banks to trust in the post sub-prime marketplace. But thanks to the outstanding ranking of Ohio’s local banks and credit unions, you know that when you bank with them, you’ll be getting the best possible and most secure rates on personal loans.

Financial Freedom By Eliminating Your Credit Card Debts With A Mortgage Refinance

Many millions of Americans have credit cards and often generate debt beyond the resources they have available to repay. The ability to eliminate credit card debt is a goal that may seem hard to reach as the burden of debt can be enormous. One reason credit card debt grows for many people is they use credit for all types of spending when cash is tight. Homeowners are in a unique position as they can consider refinancing their home to pay off credit card debt.

The Basics

Refinancing to pay off debts accumulated by using credit cards is a form of consolidation. This is used as a tool to not only pay off credit card debts, but to save money. One thing to keep in mind is the rates for mortgages still remain at low levels. The ability to refinance into a low rate is the key to being able to have a low payment that does not break the bank.

Eliminate Credit Cards

Many consumers who accumulate credit card debt pay a finance charge each month. This is a payment that is added to the amount that has already been charged on a credit card. A consumer who carries any type of balance will be paying a finance charge each month. Transferring existing credit card debt over to a refinanced mortgage will eliminate monthly interest charges. Another benefit is not having to keep track of monthly due dates.

Lower Interest Rates

The interest rates for a mortgage are generally lower than interest rates for credit cards. Refinancing of an existing mortgage may result in a lower interest rate. One way to determine if you are able to save a significant amount of money is to add together the interest charges from all your credit cards. You then need to compare this amount with the current interest for your monthly mortgage payment. Eliminating the interest assessed by credit cards is an automatic savings.

Improved Credit Scores

One of the biggest factors that is used when calculating a person’s credit score is debt. Eliminating debt from your credit report will result in an increase in your credit score. A person’s credit score will take a big hit when they have credit cards that are maxed out. Another aspect to keep in mind is paying off all your credit cards will eliminate any over limit blemishes and late payments.

The most important thing to keep in mind when refinancing to eliminate credit card debt is to keep any future charges to a minimum and pay off balances each month. Refinancing a mortgage will also allow you to pay off your debts over a longer period of time. This means determining if you should refinance with a 15-year mortgage or a 30-year mortgage.

Consumers who do not qualify to refinance a mortgage to eliminate debts, may consider other options, like credit card balance transfers, personal or unsecured loans from a bank or credit union, peer to peer lenders and other alternative loan options. When looking at options to consolidate it is important to look at the long term ramifications as well as the short term benefits, the improvement to cash flow and the lifestyle that led to the debts in the first place.

Loans Can Help Consolidate All Your Debts to Get Rid of Poor Credit

Any sound minded individual would not want to be buried in debt. Credit card interest rates can go as high as 36%, which will basically eat up our finances, and if we do not do anything about it now, we will simply continue to pay a ridiculous amount month after month without end. If you have outstanding credit card balances, the smart thing to do would be to get a personal loan in order to pay it off in full once and for all.

What options do you have?

Understand that a regular debt consolidation loan may not be the best answer to your financial woes. Although this may not be true for all, many so-called debt consolidators promise to put an end to your problems and yet later on, you would find yourself still buried in it. Promises of lowered interest rates and easily approved applications entice people to give it a try only to find themselves getting declined because of their poor credit standing, or in some cases, they get the green signal but end up paying more than what they used to.

What you can do is to take out a personal loan to pay off your debts. Apparently, because you are considered a credit risk due to poor rating, you cannot expect most lending companies to grant you a loan but there are those who can and who will.

There are short-term loans referred to as payday loans for cash advance loans but most likely, getting this would not be enough to pay off your credit card because you can only get as much as $1500.

Your best option is an unsecure personal loan that will enable you to borrow bigger sums, between $3,000-$100,00, payable up to five years. The amount would depend on your capacity to pay, reason for getting a loan, and credit worthiness. For those with poor credit, you should not expect to be granted a very large amount.  Although this is still going to charge you high rates- 11% on average, this is definitely much lower than what credit card companies charge.

Check with your bank to see if they can grant you a personal loan. Or you may look for lenders online that can give you instant quotes. Compare rates and choose the one, which you think, will give you the best deal. When you are able to consolidate all your debts, you can work your way towards building a good credit.