Personal Finance Tips » Co Signer

Who Gives Business Loans?

admin — Sat, 04 Dec 2010 18:20:01 +0000

The most common type of lender is the commercial bank, credit union, savings and loan companies, or investment companies. These lenders offer business loans, however, often times these loans must be secured. This could mean offering up your personal assets as collateral. Although, the business is yours to do with what you want, these loans are very risky to any un-established business. And that’s assuming you qualify. Unsecured loans, usually less than $100,000, are available to business owners based upon his or her personal credit history. Commercial banks may also request that a business have a co-signer or guarantor. This may mean finding a financial partner or checking into the various types of small business loans available through the federal government. Women and minorities have an even wider selection of entities willing to loan them business capital. Organizations such as the Women’s Business Ownership, Women Entrepreneurship in the 21st Century, and several others cater to lending money to women that wish to start-up a business, still others actually guarantee them business loans. Minority business loan programs are also available. Many businesses and government agencies or organizations allocate special funds to lend to minority business owners. The MBDA or Minority Business Development Agency is a federally funded agency that specializes in fostering minority-owned businesses. This agency can help minorities with personalized assistance and financial planning to secure adequate financing for business ventures.

One type of investor that can loan a business money is called an “Angel Investor.” These are professional investors who invest solely in companies. Angel investors are an excellent source of early stage financing. Often times, angel investors will finance a business loan that may appear a risk to commercial banks, or may appear too small to venture capitalists. One downfall to angel investors, they are often highly involved in the business itself. Many business owners do not want someone else running the show, so to speak, and opt to stay away from angel investors for business loans.

Venture Capitalists are in the business of loaning money to businesses that offer strict investment criteria and specialize in very specific high-growth industries. In return for capital, venture capitalists will acquire stock in the company. Venture capitalists generally look for businesses that can show profit within three to five years, and then they move on. However, during those three to five years, venture capitalists play a very active role in shaping the business. This often leads to a lack of control by the business owner.

Both angel investors and venture capitalists can be found by asking your business lawyer or accountant. Or you can conduct your own search via the Internet.

Many individuals turn to family and friends to acquire a business loan. Others may seek financial assistance through business partners or potential customers. No matter whom you ask to lend you the money you need for your business, having a good business plan or blueprint is the key. No investor, large or small, wants to invest in a business that doesn’t have a good foundation, and that always starts with an excellent blueprint.

Private Loans – The Alternative Education Loan For Students in Need of Additional Financial Aid

admin — Sat, 27 Nov 2010 08:14:12 +0000

One of Uncle Sam’s greatest gifts to the American student is the Federal student loan program which makes it possible for millions of young Americans to pursue higher education. But Federal student loans may not always cover tuition and expenses 100%. That’s why so many parents and students turn to private student loans to fill in the gap.

Private student loans — not just for tuition!

All the talk these days is about the higher costs of college tuition. But what often gets overlooked are all of the other college expenses that can make going to college more financially crushing.

However, that may not be a problem for you since most private loans can cover virtually all college expenses, including: o Room and board o Off-campus housing o Registration fees o Text books o Laptop/Internet access o Travel expenses to get to and from classes

How can you qualify for a private loan?

Because private loans are made by private institutions such as a bank or other private lending institution, your ability to get a loan will be based on merit, specifically good credit, essentially, a high enough credit score. The availability of a co-signer with good credit is even better from the lender’s perspective because taking into account a co-signer’s good credit, your combined probability of repaying the loan is higher. So, the lender can be more likely to approve you for a private loan.

If you think about it, most consumer loans require collateral, such as a house or a car. If a borrower doesn’t repay the loan, then lender can repossess your property, so it can sell it to recoup the money it had loaned out.

In the case of education loans, there really is no collateral; i.e., how can a lender repossess your education? It can’t. That’s why lenders rely on a good credit record, since that is a strong indicator that you and/or your co-signer have a proven track record of repaying on your credit cards or other loans in a timely and responsible manner.

Co-signers with good credit can help you qualify for a private loan, lower your borrowing costs and improve your own credit score!

Because private loans are based on merit, the rate you receive is based on your credit history and income. If you don’t have one or the other or both, having a creditworthy co-signer can be invaluable. In fact, a co-signer with good credit can help you obtain a private loan with a lower interest rate, saving you a ton of money over the life of the loan.

Another added benefit of a creditworthy co-signer is “guilt by association but in a good way.” This means that the timely, responsible repayment of your private loan under a co-signer arrangement will be a positive way to build up your own credit record.

Take advantage of private loan benefits

Of course the primary purpose of obtaining a student loan is to help you obtain a sound education so you can realize your career aspirations. And using credit wisely is important. That’s why you’re encouraged to seek out as much Federal student aid, grants and scholarships first before applying for a private loan.

Private loan application process — get pre-approved in minutes if you qualify!

However, once you determine that a private student loan can be a viable alternative funding source to cover your education finance gap, you could be pre-approved for a private loan within minutes of applying! Many times the application process is very simple and can, with most lenders, even be handled over the phone or online.

Longer pre-payment terms and no pre-payment penalties can help you better manage your cash flow after college

When it comes to paying back your private loans, many lenders give you up to 20 or 25 years to do so. The absence of pre-payment penalties means that as long as you make your minimum monthly payment, you can pay off your loans as fast or as slow as you want within your repayment term.

Interest rate discounts can help lower your cost of private loan borrowing even more!

Many private loan lenders would like to have your business. So be sure to shop around, and make sure to ask each lender about these and other private loan “borrower benefits” such as:

o An interest rate discount for automatic payment from a savings or checking account

o An interest rate discount for simply making on-time payments.

o Little or no origination fees, if you or your co-signer has good credit

Who is eligible for a Private Loan?

Keep in mind that each private loan lender has certain eligibility requirements. For most private student loans, you must meet the following criteria:

- Must be creditworthy applicant or have a creditworthy co-borrower

- Must be a U.S. citizen, U.S. permanent resident, or international student with a qualified U.S. citizen or U.S. Permanent Resident co-signer

- Must be within age of majority by your state of residence (typically 18 years of age)

- May be a full time, half time, or less than half time (including continuing education) student

Types of Private loans

What’s great about private loans is that many lenders have a variety of loans that is tailored to fit your specific course of study. The loan name, minimum and maximum loan amounts, and the loan repayment terms are all tailored around the typical needs of the course of study you have chosen to pursue.

Undergraduate Private Loans – Just as the name implies, apply for an undergraduate private loan if you’re a college undergraduate, or are attending a career, technical, and trade school in the U.S., at least half-time. Continuing Education Private Loans – This private loan is right for you if you are completing a degree, a certification program or taking classes to further your career or for personal development. A continuing education private loan is available to you if you attend an eligible school at least part-time (less than half-time). Graduate/Professional Private loan – If you have decided to pursue an advanced degree at participating colleges and universities, and planning to attend at least half-time, then this private loan can get you the funds you need to achieve your educational goals. K-12 Education Private loan – If you are a parents or other adult sponsor (relative or friend) of children who attend participating non-public elementary schools, many lenders provide these loans to help cover the expenses. Most lenders provide K-12 education private loans for students who attend private, religious, preparatory, and military or special education schools.

Need more money to pay for college? Private loans are here for you!

Now that you’ve learned about an alternative way to pay for your college-related expenses, don’t let anything hold you back from pursuing the dreams of success you want. A great education is a wonderful thing and nothing should ever stand in your way of achieving your goals.

As you start or continue your education, the availability of private loans offers you an option to fund your education when you don’t know where else to turn for the money you need.

Car Loans – How They Work

admin — Mon, 25 Oct 2010 12:54:29 +0000

How do car loans work?

There are a lot of things to consider when obtaining an auto loan. Your credit score, length and amount of credit history, and your source and amount of income. You’ll also want to consider that for many people they’ll need a co-signer on their first auto purchase. This person can be a family member or a friend.

In order to qualify for a car loan you need to find a bank or lending institution and apply (fill out an application). The lender will process the application and either approve or deny your application. Once approved they determine how much money they can lend you, how long they are willing to lend it and what interest rate they will charge you.

In extremely simple terms, when you find the car you want, you apply to the bank (or lending institution) for a loan. If approved, the bank pays the owner (or car dealer) for the car. The owner (or car dealer) is no longer in the picture. Any issues are now between you and the bank. You now owe the bank for the car whether it is a running car or piece of junk unless the previous owner offered a warranty.

Keep in mind that it is possible to be accepted for car loans even if you don’t meet the above requirements (credit history, co-signer, source of income). Obviously, you have to have a source of income, but you can receive a car loan without much credit history. The downside to this is that your monthly payments may be more expensive because the seller is taking a bigger risk on someone with out credit history.

What Are Personal Or Signature Loans

admin — Tue, 19 Oct 2010 03:27:59 +0000

Unsecured loans are debts which do not have collateral in case of bankruptcy. These unsecured loans are not backed up by the assets of the debtor. In other words, the creditor cannot claim cash or properties or other investments remaining with the debtor when he gets bankrupt. Usually, unsecured loans are personal loans or signature loans. These loans are often made by a borrower for an immediate purpose which just needs a small amount of cash. The reason for the small amount cash involved in these loans is that creditors are not willing to take risky ventures without collateral. And of course, these loans are usually offered by creditors with higher interest rates than that of the secured loans.

Personal loans or signature loans are loans where the only collateral of an individual is his name, signature, and his promise to pay. Oftentimes, these loans are also referred to as ‘character’ or ‘good faith’ loans. But of course, as mentioned in the preceding paragraph, these types of unsecured loans are offered with high interest rates which can even go above a credit card’s interest rate. For this reason, you must carefully and cautiously consider when to take these personal or signature loans. You must only make a personal or signature loan for immediate needs. Other than this purpose, it is advised that you look for another type of loan which can impose you a lower interest rate.

If you still opt for these unsecured loans, there are several finance companies and banks which offer a personal or signature loan. You can even search for these finance companies and banks in the internet. You may even be surprised that there are really several of them. Normally, when you are applying for an unsecured loan, finance companies and banks are only going to inspect your credit history. If you pass their certain requirements, then they are going to let you sign documents so they can issue the loan. Sometimes, a co-signer is also required by a finance company or bank. This is particularly required when a creditor is doubtful on your capability to pay for the loan. They need someone to back you up in case you really cannot pay for it.

Car Loans For College Students

admin — Tue, 19 Oct 2010 00:12:02 +0000

Nowadays, it is easier for college students to purchase their own automobile. Many bankers, and even car manufacturers, now specialize in tailor made vehicle loans for college students.

For a college student, especially one who has not yet established a credit record, it is certainly very simple to obtain a car loan if you have a co-signer. By asking a parent or guardian to cosign the loan, you are able to receive the funding much quicker and possibly lower your interest rate, assuming the co-signer has a good credit rating. This is an excellent way to assist your college age child and still give the student the responsibility of making the monthly payment. When your loan is co-signed it means that if you fail to make the payments on time, your co-signer will be held responsible and the lender will ask that person to pay.

If you are a college student with debt and little credit, it will be difficult, but not impossible, to obtain a loan without some type of guarantor or collateral. There are many financial companies with websites that do offer bad credit college student loans, but you will pay a much higher interest rate. However, no matter what your credit might be, if you make your payments in full and on time, in about a year you can apply for car loan refinancing and receive a lower interest rate for your auto loan.

Additionally, try making as much of a down payment as you can afford, at least 20% of the purchase price. Not only will this lessen your monthly payments, but it will show the lender that you are serious about this purchase as you have some of your own money tied up. You may also be able to find some dealers or manufacturers who are offering rebates for students. At the very least you can ask for this and may get some type of discount.

Finally, consider the type of car you are purchasing. I know a sports car is every college students dream, but you have to consider the additional costs involved, over and above the actual purchase price. Insurance is extremely expensive for a brand new hot sports car, and gas is outrageously priced these days. Your best option is to go for a simple, reliable, economical car, as your first purchase. Establish your credit by making your payments on time and when you graduate you will be able to get the car of your dreams.

No Credit Car Loans – Getting Approved with No Credit History

admin — Sun, 10 Oct 2010 12:39:41 +0000

If you have never acquired a credit card or obtained credit in your name, getting a loan for a new or used car can be tricky. When applying for credit, lenders assess your ability to repay the loan. To do this, they will review your consumer credit report. If you have no credit history, lenders may request that you obtain a co-signer, or deny your application. Here are a few tips to help you secure auto loan financing with no credit.

Apply for a Secured or Unsecured Credit Card

Before applying for a new or used auto loan, attempt to obtain a credit card, department store card, etc. Credit is important; however, getting your first credit card is not always easy. Similar to auto loan lenders, most credit card companies prefer applicants to have previous credit accounts.

To solve this problem, consider applying for a secured credit card. Before applying for the card, contact the company and inquire if the account will appear on your credit report as secured. Choose credit card companies that do not reveal that the account is secured. To creditors reviewing your report, it will appear as if you have opened and maintained an unsecured account. This will boost their confidence in your ability to handle credit responsibly.

Once you have obtained a secured or unsecured credit card, carefully monitor your spending. Having too much debt also has a negative effect on your credit. If you keep account balances at the maximum limit, instead of increasing credit score, you will be damaging your score.

Open a Checking or Savings Account

Even without a credit card or credit history, some lenders consider having a verifiable checking or savings account as a plus. Because having a bank account will boost your credibility, you may be able to obtain an auto loan if you have an account in good standing. Good standing means no bounced checks, overdraft fees, etc.

Apply for Auto Loan with a Co-debtor

If you are under 18-years-old, you will need a co-signer to obtain an auto loan. However, if you have zero credit history, having a co-signer is an effective method for acquiring credit in your name. Co-debtors may include any person with a good credit rating such as parents, spouse, siblings, etc. Individuals who agree to serve as a co-debtor should do so with care. If the primary debtor fails to repay the loan, you become accountable for the debt.

Education Loan For Students – Low Rate Finance For Studies

admin — Sat, 21 Aug 2010 01:41:12 +0000

Taking out a loan for higher studies becomes inevitable because of high costs involved on different expenses during the period you are in a collage. Education loans for students are, therefore, seen as part of pursuing your studies.

Students should first explore the possibilities of taking a loan from Federal government. Stafford loans, Perkins loans and PLUS loans are three Federal loans. The government finances these loans, and therefore, rate of interest is kept low. But students can take the loans through financial organization and firms. Of the three loans, first two are meant for undergraduates. PLUS loans are meant for the parents, who can take these loans on behalf of the students. The main advantage of Federal loans is that the rate of interest is kept low, as the government subsidizes the interest payments. But a draw back is that not all are qualified for borrowing the money. Only those are given the loan, whose parents are not in a good financial health to support the collage studies.

If you do not qualify for Federal loans, then you can take education loans from private lenders. They can provide you finance in secured or unsecured option. For low rate of interest on greater borrowed amount, you can avail the secured loan against a property like vehicle or home, on involving your parents in it. You can repay the loan in 5 to 30 years. The unsecured loan can provide smaller amounts for short repayment duration. But interest rate will be little higher because of absence of collateral.

Flexibility with education loan for students is that they can start repaying installments of the loan only after they have finished with collage studies, and get a job. What is more, these loans are given to bad credit borrowers as well, if they can apply along with a co-signer, who has a good credit record. Ensure that you have made a good search for a suitable deal.

Online Short Term Installment Loan: Pecuniary Issues Will be Repudiated Automatically

admin — Tue, 09 Feb 2010 21:10:30 +0000

Now deriving Installment Loans is not tedious process because the agencies of Installment Loans are bestowing a special offer of Online Short Term Installment Loan. For this loan you are to search well over internet for opting a right lender who provides you an online form to fulfill few formalities about yourself such as your address, contact number, occupation, age, account number and so on. Exempt deeds are completed by the lender, and after confirmation the lender transfers the cash into your account by the flexible within few hours on the sameday or the next business. Once in a while pecuniary issues crop up on the amidst month or earlier than your paycheck. In such conditions you find out the way that provides cash between two consecutive paydays then Online Short Term Installment Loan is the right choice for you. Online Short Term Installment Loan offers the amount in ranging from $100 to $1500 for the repayment period of 14-30days. If you have this loan, you can correspond with such needs as pay the medical bill, electric bill, water supply bill, automobile servicing, decorate home on your child’s birthday or coming festival Christmas day, pay off the previous debt, and so on. Online Short Term Installment Loan is also available for those persons who are having bad credit history due to these: defaulted, arrears, late payment, country court judgments mentioned against their name or in their credit. They have a golden opportunity to vary their credit history bad to good, because Online Short Term Installment Loan is provided without checking credit history of the borrowers. As well the borrowers don’t need to co-signer or collateral to place stand for loan, but hearken in mind that due to worst credit history the rate of interest may be somewhat more. Basically, such ramparts of loans carry a bit high rate of interest. If you are in need of bridging cash basis, apply for Online Short Term Installment Loan. For this loan you don’t need to hoard any sort of document to fax in bargaining of loan. These loans are available online, that’s why the lenders of Online Short Term Installment Loan don’t require you to fax the documents. If you are in worries of interest rates, don’t think. At times the interest rates are altered and relied on the borrower’s credit history. If the borrowers have good credit history, rate of interest will be competitive on their amount, and if the borrowers have bad credit history, rate of interest will be boosted slightly.