Investment – Innovative Words http://innovativewords.com/ Tue, 02 Aug 2022 06:04:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://innovativewords.com/wp-content/uploads/2021/04/default.png Investment – Innovative Words http://innovativewords.com/ 32 32 Student loan refinance rates drop slightly for 10-year fixed rate loans https://innovativewords.com/student-loan-refinance-rates-drop-slightly-for-10-year-fixed-rate-loans/ Mon, 01 Aug 2022 18:47:07 +0000 https://innovativewords.com/student-loan-refinance-rates-drop-slightly-for-10-year-fixed-rate-loans/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest student loan refinance interest rate […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest student loan refinance interest rate trends on the Credible Marketplace, updated weekly. (iStock)

Pricing for Qualified Borrowers using the Credible Marketplace for refinance student loans fell this week for 10-year fixed rate loans and rose for 5-year floating rate loans.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender during the week of July 25, 2022:

  • Rates on 10-year fixed-rate refinance loans averaged 5.43%, down from 5.56% the previous week and 3.52% a year ago. Rates for this term hit their lowest point of 2021 during the week of November 22, when they were at 3.35%.
  • 5-year variable rate refinance loan rates averaged 3.58%, down from 3.40% the previous week and 2.73% a year ago. Rates for this term hit their lowest point of 2021 during the week of November 22, when they were at 2.41%.

Weekly Trends in Student Loan Refinance Rates

If you’re curious about what kind of student loan refinance rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

Current Student Loan Refinance Rates by FICO Score

To ease the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least August 31, 2022. As long as this relief is in place, there is little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of low interest rates to refinance their student debt at lower rates.

If you qualify to refinance your student loans, the interest rate you may be offered may depend on factors such as your FICO score, the type of loan you are seeking (fixed or variable rate), and the repayment term. of the loan.

The chart above shows that good credit can help you get a lower rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms. Since each lender has their own method of evaluating borrowers, it’s a good idea to ask for rates from multiple lenders so you can compare your options. A student loan refinance calculator can help you estimate how much you could save.

If you want refinance with bad credit, you may need to apply with a co-signer. Or, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.

You can use Credible to compare rates from several private lenders at once without affecting your credit score.

How Student Loan Refinance Rates Are Determined

The rates charged by private lenders to refinance student loans depend partly on the economic environment and interest rates, but also on the duration of the loan, the type of loan (fixed or variable rate), creditworthiness the borrower and the lender’s operating costs and profit margin. .

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over Over 5,000 positive reviews on Trustpilot and a TrustScore of 4.7/5.

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Financing for small businesses in 2022 https://innovativewords.com/financing-for-small-businesses-in-2022/ Fri, 29 Jul 2022 22:11:36 +0000 https://innovativewords.com/financing-for-small-businesses-in-2022/ Finding the right small business financing can make all the difference to the success of your business. In 2021, almost 62% of small businesses used personal funds to cover cash shortfalls in their business. Although this practice likely puts a lot of strain on the business owner’s personal assets, securing sufficient financing for the business […]]]>

Finding the right small business financing can make all the difference to the success of your business. In 2021, almost 62% of small businesses used personal funds to cover cash shortfalls in their business. Although this practice likely puts a lot of strain on the business owner’s personal assets, securing sufficient financing for the business can help.

In this article, we explain why small business financing is important, how to determine how much financing you need, and what the best financing options are for your business.

Why is financing important for small businesses?

There are many reasons why small business financing is essential. Many small business owners and entrepreneurs need money to make their idea a reality. So they can’t even get started without the right small business loans. Lenders also often require small businesses to do market research before offering financing, but even market research requires money.

Having sufficient business financing is also often the only way to grow your business or develop new products, both of which are fundamental factors for many successful businesses. It may not be possible to grow your business using just your profits.

Even if you’re not looking to grow your business, the uses for small business financing are virtually endless. Having sufficient business financing can help you stabilize your cash flow during off-season, increase working capital, meet financial obligations, or maintain sufficient inventory to meet customer demand.

Is it difficult to obtain financing for small businesses?

Whether or not it is difficult to obtain financing for a small business depends on the qualifications of your business, the type of financing you request and the amount of the loan. The US Small Business Administration (SBA) has a notoriously difficult application process, but online lenders may have more flexible eligibility requirements. Whether or not you qualify depends on the individual financing option.

Other factors that matter are your business details, such as your personal and professional credit ratings, time spent in business, and annual income. If you need help with your business credit scores, check out Nav’s guide on how to build business credit. Other factors are whether or not you have a solid business plan and how much you are asking for in loan funds.

How can I quickly obtain financing for my business?

Finding quick funding opportunities can seem daunting, but there are plenty of options available to you. Generally, online or alternative lenders can get you business financing faster than traditional banks. Here are some great options that target various business goals:

Many online lenders can get you simple online applications and funding in as fast as a day or two.

However, keep in mind that the interest rates for these business financing options can be significantly higher than for traditional loans. Be sure to review all terms and payment requirements before agreeing to borrow.

How much financing does my business need?

The amount of small business financing your business needs depends on how you will use the money and what you can afford. If you’re looking to start a business, estimate your start-up costs, which will heavily depend on opening a physical site, an e-commerce business, or selling services. On the other hand, if you need financing for a specific purpose (like launching a new product), make sure you don’t borrow too much since you’ll have to pay interest on every dollar you owe.

Before you borrow, you’ll want to calculate the cost of debt so you’re sure how much you’ll owe on all of your business debt. Then you will be able to tell how much money you can really afford to borrow.

Ways to finance a business

There are two main methods of financing a company: going into debt or selling equity to investors. Here we explore the most common financing options for businesses.

1. Take out a bank loan

Term loans are offered by banks and other financial institutions for a specific amount with monthly repayment requirements. You can find many of the same types of financing that online lenders offer, such as invoice financing and lines of credit. Borrowers receive an interest rate based on their business factors, and interest rates are generally low with bank loans. However, traditional loan programs can be difficult to qualify for new businesses or businesses with bad credit.

2. Get financing online

Online lenders may have less stringent requirements for their business applicants, so it may be easier to qualify than with a traditional bank. The application process with this type of lender is often entirely digital, so it can be completed from anywhere and only takes a few minutes. Also, they may be able to send you the money within a day or two of being approved. But, as mentioned, interest rates can be higher with an online lender than with a traditional bank loan, so you’ll want to pay them off quickly.

Here are some great offers from our lending marketplace:

3. Apply for an SBA loan

The federal government backs US Small Business Administration loans, so interest rates are often among the lowest in the market. Low rates make this financing option highly sought after. However, it can be very difficult to qualify for an SBA loan, so review the qualification requirements in detail before applying.

The government also supports Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR), which provides funding to small domestic companies seeking to increase innovation.

4. Get a Small Business Grant

There are many grant programs available for small businesses – and the best part is that you don’t have to pay them back. Small business grants are offered by government, nonprofits, and corporations to help struggling businesses. For federally supported grants, go to Grants.gov.

The Nav Small Business Grant is a quarterly grant open to all small businesses in the United States. Check our website for when applications open next.

5. Use crowdfunding

Crowdfunding is a way to use your community and network to raise funds for businesses. Rewards-based crowdfunding is the type of crowdfunding most people are familiar with: you contribute a specific amount and you get something small in return. You may get a product or early access to a launch, but you know in advance what you’re getting for your donation. Donors don’t expect to be reimbursed for their contributions, so you can avoid paying interest with crowdfunding.

6. Find stock investors

Equity financing is a way to get financing for small businesses without going into debt. You bring in investors in exchange for equity in your business. This type of financing is most often used by startups, but it could also be the right option for you. Just keep in mind that you have to give up some control of your business in exchange for the investments, so make sure you’re comfortable with that.

Financing of salary expenses

Payroll compliance is one of the most important obligations you have as a small business owner. Your employees rely on you to pay them in full and on time. The good news is that if you are short on cash, there are several financing options for your business. You can turn to a payday loan which must be used specifically for payroll. Or you can use flexible small business financing options like business loans, merchant cash advances, or even business credit cards to open up cash flow and payroll.

Financing a business expansion

Expanding your business can be a great prospect, but you need a way to pay for it. Your funding method will depend on how you plan to grow. For example, if you need to purchase real estate for a warehouse or brick-and-mortar location, you can turn to commercial real estate loans. If you plan to increase your inventory after your marketing campaign has brought in new customers, you may want to consider an inventory loan. But many of the same small business financing options are available for expansion.

Your next steps

For training and advice on all small business financing matters, you can consult a Small Business Development Center near you. They offer business programs that help small businesses build and maintain success. And Nav is always there to help. Signing up for a free Nav account gives you instant access to our extensive small business finance marketplace. It’s the easiest way to find the small business financing that’s right for you.

This article was originally written on July 29, 2022.

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Can credit cards help you go back to college and change careers? https://innovativewords.com/can-credit-cards-help-you-go-back-to-college-and-change-careers/ Thu, 28 Jul 2022 11:00:56 +0000 https://innovativewords.com/can-credit-cards-help-you-go-back-to-college-and-change-careers/ If you’re like most people, there comes a time when you want to change careers. Fast business in 2021 investigation found that 52% of American workers have considered changing jobs and 44% have taken steps to make it happen. But it’s one thing to make major life changes when you’re young and have few responsibilities. […]]]>

If you’re like most people, there comes a time when you want to change careers. Fast business in 2021 investigation found that 52% of American workers have considered changing jobs and 44% have taken steps to make it happen.

But it’s one thing to make major life changes when you’re young and have few responsibilities. It’s another when you’re older, have a mortgage, people depend on you for care, or are already retired.

To find out if such a change is right for you, think about what you need to prepare for the next step, as well as the associated costs. This may require additional training or a higher degree to qualify for your next position, or a good start-up credit card if you’re ready to go it alone. If you don’t have the money to pay for the programs, you might even consider charging for what you can’t afford right now.

Why change jobs?

There are plenty of reasons you might want to leave an established profession, says AJ Vollmoeller, a Key West, Fla.-based career coach and author of “How to Not Get Hired.” Chief among them:

  • Boredom: You’re just tired of doing the same thing every day. It is no longer difficult.
  • No room for growth: You wanted to climb the corporate ladder, but in the end, there is no place to go.
  • Your work is unsatisfactory: Maybe you went to school to be an accountant because that was expected of you, but it never made you happy.
  • Your business is failing: Feel layoffs on the horizon? This could be your trigger to go out on purpose, before you have no choice.
  • The industry is changing: If the industry you work in is getting anachronistic, you might want to train for the next best thing.
  • You don’t earn enough: Where you are now may be fine, but the salary is too low.
  • Your work-life balance is out of balance: If you spend too much time working and not enough enjoying life, you may be considering a career that requires fewer hours or is less stressful.

“People used to go to work and stay, love it or hate it,” Vollmoeller says. “It’s okay to explore more opportunities now, at any age. But you need to be sure that changing professions is what you want to do.

“Everyone has a bad day at work and starts thinking about it,” he says. “It’s when you start having these thoughts constantly that you have to take this desire seriously.”

Understand the new career and identify education gaps

Resist the urge to quit before you know exactly what your desired profession requires and what day-to-day tasks really look like, says Vollmoeller. Talk to as many people as you can who are in this industry. Participate in informational interviews (informal meetings with hiring managers) to find out what the job is really about.

If you find you want to make the switch, review not only your own resume, but also those of people in that profession. This way you can find out if you have skills and training that you can highlight and need to acquire.

For example, maybe you have twenty years of experience in marketing, but you are called to social services. You may have a proven track record of working with people and influencing them, so you can highlight that on your resume. What you don’t have is a master’s degree in social work, which many states require. With this information, you can start planning your return to school and consider ways to manage the associated costs.

“Changing careers always requires a plan,” says Vollmoeller. “You know you want to transition, but your mind is spinning.”

Slow down and do your research. Go online and type “certifications and training” for the job you want in the search bar. Next, look at other people’s resumes, which are often available on LinkedIn, and identify patterns around degrees, certifications, and licenses. Learn what others have that you don’t.

Evaluate the cost of education and try to reduce it

Once you know what you need for the job, you’ll need to figure out how to pay for it – and if the price and time are worth it.

For example, if your dream is to become a university professor, you should know that reality usually requires a doctorate. The Education Data Institute reports that an average doctorate costs $98,800 and takes four to eight years to complete. Only you know if it’s worth it.

Other professions do not require such expensive and time-consuming advanced degrees, but do require professional courses and certifications. If it’s not too far from your field, find out if your current employer will cover the cost.

So did Beth Pinsker, personal finance writer and certified financial planner from Brooklyn, New York. The savings can be substantial. According to the American College of Financial Services, total CFP courses tuition costs $4,675.

Do your due diligence when it comes to certification programs, however, warns Vollmoeller. You don’t want to spend money on a program that’s unnecessary or not above board. Credential Enginea non-profit organization dedicated to career training transparency, found that there are thousands of credentialing programs in the United States, many of which were developed when people changed careers during the COVID pandemic -19.

Use loans and credit cards strategically

Once you’re convinced you want to move on, you have the time to get the training, and you know it’s right for you, think about how to pay for it. If your employer isn’t footing the bill and you don’t have cash available, you may want to borrow some money.

Student loans are available for tuition and materials, and are worth pursuing in many circumstances. Federal loans have low, fixed interest rates and you can delay payments until you graduate. Since these loans are generally not dischargeable in bankruptcy, you are usually stuck with them until you pay them in full. Private student loans can also help, but their rates are higher than federal loans.

Credit cards can also be used for your studies. If you use a rewards card to cover costs, you can earn points or cash, which will reduce costs. But be careful.

“You will want to make sure that whatever you put [credit cards] you can repay as soon as possible,” says Pinsker. “Interest rates are rising, so you will have to be very careful with your debts. Instead of using credit cards for tuition, use low-interest loans. Charge your living expenses to your credit cards and pay the bill.

Another option to consider is 0% APR cards. Some of the best 0% interest credit cards offer extra-long introductory periods. The Wells Fargo Reflect℠ card gives you 21 months of interest-free financing, for example, and the US Bank Visa® Platinum card gives you 20 months. If your certification program meets these time constraints and you pay off the debt before the regular account rate kicks in, you can save a lot of money.

And if your next career step is to start your own business, the right accounts will be instrumental in building up your business credit, which will help you maintain and grow your business.

The bottom line

To change course later in life, including if you’re retired and going back to work, consider all the pros and cons. “Not retiring” can affect your Social Security benefits, so understand the impact and plan ahead. If you want to start with a part-time job to test the waters, this is another option.

And if you’re going to make the leap from one profession to another, commit to taking the leap. “Do it 100%,” says Vollmoeller. “Be focused with a defined path and action plan where you know what the first steps will be. This is your life. Everyone once had a job they knew nothing about. You did it then and you can do it again.

If that means borrowing money, do it wisely. Along with loans, credit cards can be a tool that helps you build the next step in your profession. Take the time to find the right card for your next chapter.

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How to pay for community college https://innovativewords.com/how-to-pay-for-community-college/ Tue, 26 Jul 2022 20:18:25 +0000 https://innovativewords.com/how-to-pay-for-community-college/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. You can pay for community college in […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

You can pay for community college in several ways, including federal aid, scholarships, and student loans. Learn more about each option. (Shutterstock)

One of the main advantages of community college is that it tends to be less expensive than a four-year college or university. But you may still need help, such as student loans, to bridge any financing gaps.

Here are four ways to pay for community college.

If you need private student loans, visit Credible for compare private student loan rates from various lenders in minutes.

How to pay for community college

The good news is that you can pay for community college in several ways. Since it is more affordable, sources such as grants, scholarships, and even community colleges student loans can help you stretch your money even further.

How you end up paying for community college will depend on your personal circumstances, but here are some of the best funding options.

1. Consider tuition-free programs

Tuition-free programs, also known as college promise programs, are available in a number of states and are generally for high school students who want to attend a two-year college. Specifically, they are designed to increase enrollment of low-income students by aiming to reduce the costs of higher education.

If you’re looking to save money and live in a state that offers one of these programs, consider whether you might benefit, especially if you can attend the community college of your choice. Be sure to check eligibility requirements, such as meeting the minimum GPA, field of study, and enrollment status.

Here are some examples of tuition-free programs:

2. Use grants and scholarships

Grants and scholarships are also available for students attending community colleges. You’ll find plenty of them out there, so do your research and see which ones you might qualify for. The best part is that you won’t have to pay back the money you receive.

Although grants are available through your state or federal government, they are generally based on financial need.

You can search for scholarship opportunities in places like foundations, charities, and even companies. You may be able to apply for many different programs and cover a decent amount of your tuition. Check with your school’s financial aid office to find other scholarship opportunities you may be eligible for.

Each scholarship may have different requirements, such as submitting an essay or a copy of your high school transcript, so make sure you can meet those before applying.

3. Take out federal student loans

If you can’t afford your community college tuition on your own, or if you’ve exhausted your grant and scholarship opportunities, then consider applying for federal student loans.

You can apply for most federal student loans without a credit check and you don’t need a co-signer. You’ll also enjoy benefits and protections, such as access to income-driven repayment plans, forbearance, and even loan forgiveness.

To apply for a federal student loan, you will need to complete the Free Application for Federal Student Aid. (FAFSA) each academic year. Schools use information from the FAFSA to determine how much federal aid you qualify for. It’s a good idea to submit your FAFSA as soon as the application window opens, as much of the aid is paid out on a first-come, first-served basis.

The amount you can borrow in federal loans will depend on several factors, such as the school you attend, your dependent status, and your year of study. These loans have limits on how much you can borrow, and you may not reach that amount depending on how much your tuition is.

4. Turn to private student loans to fill funding gaps

Private loans are generally considered the last financing option, as they do not offer the advantages offered by federal student loans. But apply for this type of student loan can help fill funding gaps if you have exhausted all your other options.

When determining eligibility for a loan, most private lenders will require their applicants to submit to a credit check and meet other requirements. For this reason, many borrowers, especially those with limited or no credit history, will need to apply for a private student loan with a co-signer.

Keep in mind that each lender sets their own rates and terms, so shop around to find one that suits your needs, even if you have bad credit. Some lenders allow you to be prequalified without affecting your credit score.

When you are ready to submit a complete application, each lender may have a different process, but in general you will need to provide the following:

  • your full name
  • Contact details, such as your address and telephone number
  • Co-signer information if applying with a
  • Your school of attendance and whether you attend part-time or full-time
  • Financial information
  • Agreement for the lender to check your credit history and score

If you decide to obtain private student loans to finance your studies, Credible allows you compare private student loan rates from multiple lenders, all in one place.

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Can you invest in real estate with a low credit score? https://innovativewords.com/can-you-invest-in-real-estate-with-a-low-credit-score/ Sun, 24 Jul 2022 12:45:00 +0000 https://innovativewords.com/can-you-invest-in-real-estate-with-a-low-credit-score/ If you want to buy real estate to diversify your portfolio, you will probably need to take out a mortgage. Unless you have the money to buy outright — and are willing to tie up your money that way — you’ll need to qualify for a loan to make your purchase. This can be a […]]]>

If you want to buy real estate to diversify your portfolio, you will probably need to take out a mortgage. Unless you have the money to buy outright — and are willing to tie up your money that way — you’ll need to qualify for a loan to make your purchase.

This can be a big problem if you have a low credit score. This is because lenders will review your borrowing history to make sure they can trust you will repay a loan.

The good news is that you don’t need stellar credit to add real estate to your investment portfolio. There are other options.

Image source: Getty Images.

You can invest in real estate without buying properties

If you have a low credit score, the big challenge in buying properties will be that you may have difficulty qualifying for a mortgage. Lenders use your credit score to determine if they will give you a loan and what interest rate they will charge you. A low score sends red flags and makes borrowing more expensive and more difficult.

Although there are mortgages available for borrowers with bad credit, you could end up paying a high interest rate, which makes it more difficult to invest in real estate profitably. Avoiding this could mean you have to pay cash for the properties rather than borrow. This would seriously limit your ability to invest, and it would also mean losing one of the greatest benefits of real estate investing – the leverage you get by being able to borrow against an expensive property after making only a small down payment.

The good news, however, is that you don’t need good credit to invest in real estate because you don’t need to personally own properties to gain exposure to this asset class.

Explore your options for investing in real estate without borrowing

If you don’t have good credit and want to invest in real estate, it’s worth considering whether you should buy a real estate investment trust (REIT) instead.

REITs can be traded like stocks. This means that anyone can invest in a REIT, regardless of their credit rating. And you usually won’t need a lot of money to invest in one, as there’s often no minimum investment amount required. This means you don’t have to borrow to invest, so your credit history doesn’t matter.

REITs are companies that pool funds from investors and then use them to buy properties or finance real estate transactions. There are many REITs out there, so you can buy a REIT that has the type of properties you might personally want to buy if you had better credit.

You also have the option of buying any publicly traded REIT of your choice or buying REIT mutual funds or exchange traded funds. This makes it easier to find an investment that fits well into your portfolio.

Once you own a REIT, you can earn regular income from it when it pays dividends. You also have the option of selling the REIT for more than you paid if the price goes up. So if the real estate market is doing well, you’ll get all the benefits of being invested in it without a credit score holding you back.

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What are disability loans and how do they work? – Forbes Advisor https://innovativewords.com/what-are-disability-loans-and-how-do-they-work-forbes-advisor/ Fri, 22 Jul 2022 18:11:51 +0000 https://innovativewords.com/what-are-disability-loans-and-how-do-they-work-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. If you are disabled or applying for disability benefits, you may need to borrow money. The good news is that the Equal Credit Opportunity Act prevents lenders from discriminating against you just […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

If you are disabled or applying for disability benefits, you may need to borrow money. The good news is that the Equal Credit Opportunity Act prevents lenders from discriminating against you just because your income comes from government assistance.

The bad news is that you will still need to qualify for the loan based on your own credit and income, which can be difficult for some people with disabilities. Worse still, in some cases, taking out a loan can impact your eligibility for benefits.

We will review the options available to you and how they will affect your disability benefits. This way you can make the best decision for your situation.

What is a Disability Loan?

There is no official disability loan. The term “disability loan” is generally used to describe a variety of loans and situations.

  • For some people, a disability loan is the one they use to pay for living expenses and get by until they are approved for disability benefits.
  • For others, a disability loan can be used to purchase equipment such as wheelchair ramps or mobility scooters.
  • Yet other people refer to a disability loan as any loan you take out, for any purpose, while you are on disability benefits.

Types of Disability Loans

Any type of loan can be a disability loan, depending on your definition. Here are different types of loans people can get if they have a disability:

  • Personal loan. These can be small or large and secured (backed by an asset like a car or bank account) or unsecured (not tied to an asset that the bank can take over if you fail to repay the loan). You can use personal loans for almost any expense.
  • Mortgage. There are often special programs to help people with disabilities buy a home. For example, veterans disabled due to service-related injuries may qualify for waiver of finance charges on a VA loan.
  • Car loans. Some lenders, such as Bank of America, offer special types of auto loans to purchase vehicles modified for people with disabilities.

How to get a disability loan

If you are already receiving disability benefits, the way you apply for a loan will be no different than anyone else’s. Here’s how it will work:

  1. Shop around for rates. Most lenders will let you check your rate and loan options with them without hurting your credit score. It can also let you know if you are likely to be approved for the loan. If you are disabled, shopping around is especially important as some lenders may have stricter minimum income requirements than others.
  2. Apply for the loan. Once you’ve found a loan option that’s right for you, complete your loan application in person or online.
  3. Receive your funds. Depending on your lender, you may receive the funds by direct deposit or by check.
  4. Repay the loan. A good tip is to set up automatic payment. This way, you won’t have to remember to make the payments yourself each month.

Can I get a loan while waiting to be approved for disability benefits?

In 2021, it took an average of about five months to be approved for disability benefits. It’s a long wait to receive benefits, especially if you’re disabled and earn no other income. Thus, some people opt for loans to help them out.

However, this can be tricky and not a good idea. If you apply for a loan, a lender will judge your application based on your ability to repay now, not in five months. And if you’re currently earning no income, you’re unlikely to be approved for a loan.

Another reason it’s risky to take out a loan at this stage is that, unfortunately, about two-thirds of disability benefit claims are turned down the first time. So, it is possible that you take out a loan that you would not be able to repay immediately anyway.

That doesn’t mean you’re unlucky, though. Instead, check with the Social Security Administration, as they have several programs that can help you financially while you wait for a decision on your loan, such as presumed disability payments. Even better, if you receive benefits through this system and are later denied, you won’t have to repay those funds unless they overpaid you. You won’t have the same luck with a loan.

Loans for disabled people with bad credit

It will be harder to get approved for a loan if you have bad credit and your only income is from a disability. Lenders can’t deny you just because you’re receiving disability benefits, but they can deny you because your credit score may not be high enough and your disability benefits aren’t enough to reach their income thresholds.

Some lenders will allow you to apply for a loan with a co-signer. It is someone who agrees to repay the loan in case you are unable to do so. If you are unable to qualify based on your own credit or income, having a co-signer with a higher income level and/or higher credit score can mean the difference between approval or denial of your loan in certain cases.

But remember, this is not a decision to be taken lightly. If you fail to repay the loan, it will force your co-signer to repay it, which can break their trust. Good relationships are worth more than money, so only use a co-signer if you are sure you can repay the loan.

What is the impact of loans on disability benefits?

The two most popular disability programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), may treat loans differently.

The good news is that loans don’t count as income for either program, which is handy because if you earn too much, you could lose your benefits. If you are on SSI, you must take a means test each month to prove that you have no more than $2,000 in assets ($3,000 for married couples).

If you are on SSI, you need to plan your loan carefully. If you don’t spend all of your loan in the month you receive it, those funds will count toward the $2,000 asset limit. If you are above that, you could lose your benefits for that month. So it’s best to apply for the loan towards the end of the month so that by the time it’s paid off towards the start of the next month, you have more time to spend the money. This will keep your benefits safe.

Alternatives to Disability Loans

It is especially important to know that if you are disabled and need extra money, a loan and/or disability benefits are not your only options. There are many other avenues to seek help, including:

  • ABLE savings accounts. These can help you save more money to increase your financial security, without affecting your eligibility for means-tested benefits like SSI.
  • Housing assistance. There are many federal programs available to help you pay for housing as a disabled person, whether you want to live in an apartment or need help buying and maintaining your own home.
  • Food aid. If you’re on disability benefits, you’re probably eligible for food assistance through the SNAP Program as well.
  • More help. Navigating the maze of potential benefits available to you is confusing. You can get free, anonymous help from a real person in your community by calling 2-1-1 or visiting 211.org. This is a service run by United Way to help community members find the specific help they are looking for.

Compare personal loan rates from top lenders

Compare personal loan rates in 2 minutes with Credible.com

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Homebuyers boycott mortgage payments on stalled housing projects https://innovativewords.com/homebuyers-boycott-mortgage-payments-on-stalled-housing-projects/ Wed, 20 Jul 2022 04:30:00 +0000 https://innovativewords.com/homebuyers-boycott-mortgage-payments-on-stalled-housing-projects/ Over the past few weeks, tens of thousands of Chinese buyers have banded together and refused to continue paying mortgages on unfinished homes. Homebuyers in China frequently purchase “presale” homes long before developers have completed them, with mortgage funds then used to finance their construction. But with an increasing number of residential real estate projects […]]]>

Over the past few weeks, tens of thousands of Chinese buyers have banded together and refused to continue paying mortgages on unfinished homes. Homebuyers in China frequently purchase “presale” homes long before developers have completed them, with mortgage funds then used to finance their construction. But with an increasing number of residential real estate projects delayed or stalled amid a growing housing crisis, homebuyers have used their leverage to avoid paying mortgages on homes they may never occupy or whose values ​​may have plummeted. Nikkei Asia’s Cissy Zhou reported on the context and importance of the payment boycott:

Up to 1.5 trillion yuan ($220 billion) in mortgages are tied to unfinished residential projects, ANZ said in a report.

The movement began in late June among people who bought an Evergrande project in the southeast city of Jingdezhen. It has since spread to other parts of the country with around a third of unfinished projects being built by struggling Evergrande, once the main Chinese developer.

“If tens of thousands of home buyers really stop paying their mortgages, real estate companies will soon collapse as they run out of cash,” said Dan Wang, chief economist at Hang Seng Bank China, at Nikkei Asia. “There are huge risks for banks, especially local banks, whose assets are mainly in the housing market, and there is no way the central bank can save them all,” he said. -she adds. [Source]

Braving the risk of getting bad credit, many homebuyers remained defiant in their boycott. In a group of online homebuyers, after one person worried about how stopping payments might affect their credit rating, another replied: “If you can’t even afford to eat, do you really care about your credit score?” The owners of a real estate project in Zhengzhou declared in a unanimous statement“At a time when we are desperate and struggling to survive, a credit score is just a paper tiger to us, a pair of chains that can be thrown away at any moment. It is the helpless cry of millions of ordinary citizens like us.

Some on social media began using “Camel” Xiangzi, the ambitious but ill-fated protagonist of Lao She’s 1937 serialized novel “Rickshaw Boy,” as a stand-in for duped and frustrated homebuyers. A now-deleted WeChat article (“Xiangzi decided to stop pulling the rickshawarchived by China’s CDT editors) included a poignant comment posted below a Douyin video filmed by a young couple in Zhengzhou, whose joy at buying a house had turned into anxiety about taking on a mortgage costly on a stalled real estate project. The comment, which resonated with many social media users, reads, “Xiangzi believed that if he worked hard to pull the rickshaw, one day he could own his own rickshaw.”

Rebecca Feng and Cao Li of The Wall Street Journal described how many buyers believe that, in order to avoid personal financial ruin, they have no choice but to boycott mortgage payments:

Homeowners who stop paying their mortgages risk being hit by China’s credit reporting system, which could make it harder to secure future loans. Knowing this risk, some people may still choose to default, analysts said.

“Many people involved in the movement come from lower-tier cities. These people have spent all their savings to buy houses…they need to be reassured that the houses will be finished. Otherwise, why wouldn’t they just be “flat”? said Zerlina Zeng, analyst at debt research firm CreditSights. [Source]

Aware of the threat of expanding social and financial unrest, the government has tried to silence talk of mortgage boycotts and prevent homeowners from organizing online. As Bloomberg reported, Chinese censors have deleted online discussions and documents related to mortgage boycotts:

Shared files run on platforms such as China’s equivalent of Quora, Zhihu Inc. and sites such as Kdocs and Wolai have been banned following reports that the number of buyers refusing to pay mortgages increased within days. GitHub, a popular file sharing site for coders, remains a source for users to post documents.

[…] Information shared on the platforms included names of blocked projects and images of letters from buyers stating they refused to pay. The GitHub page on the subject has been bookmarked or bookmarked by over 14,000 users.

Homebuyers have complained that their social media accounts on TikTok’s Chinese cousin, Douyin, and Weibo, which is similar to Twitter, have also been banned. Some buyers who asked not to be named said they were contacted by police.

Posts on WeChat and Weibo containing snapshots of graphs tallying mortgage boycotts or project delays have been removed. Among them, a July 13 analysis by property researcher China Real Estate Information Corp. which showed homebuyers stopped mortgage payments on at least 100 projects in more than 50 cities. [Source]

Chinese buyers are losing confidence in a housing market that has deteriorated in recent years. Home sales have plummeted in the wake of COVID shutdowns and rising unemployment, and investors are wary of financially troubled property developers. Dozens of developers defaulted, including Evergrande, whose $300 billion in debt reverberated through the wider economy after the company collapsed last year. S&P Global Ratings recently predicted that at least a fifth of all rated Chinese developers could eventually become insolventputting $88 billion of their troubled bonds at risk.

The magnitude of the problem prompted the government to intervene. So far, the boycott has affected projects in more than 50 cities and potentially threatens two trillion yuan ($296 billion) in mortgages to stalled projects. The Chinese real estate sector accounts for up to A quarter the country’s economy, and many state banks are exposed to mortgages. Over the weekend, as Reuters reported, Chinese regulators encouraged banks to lend to qualified real estate projects:

The China Banking and Insurance Regulatory Commission (CBIRC) told the official industry gazette on Sunday that banks should meet developers’ financing needs when reasonable.

[…] The rebound in Chinese banking stocks was also aided by news that China will accelerate the issuance of special local government bonds to help supplement the capital of smaller banks, as part of efforts to reduce risk in the sector.

China may also allow landlords to temporarily suspend mortgage payments on stalled real estate projects without incurring penalties, Bloomberg reported after the market closed Monday, citing people familiar with the matter.

[…] In Sunday’s interview, the CBIRC urged banks to “assume their social responsibility” and actively participate in considering plans to bridge the financing gap and support real estate project acquisitions. [Source]

In another intervention, the government is preparing to allow homebuyers to temporarily suspend mortgage payments on stalled residential construction projects. The measure would boost confidence in the market, but it risks backfiring if other homebuyers are encouraged to suspend their mortgage payments, or if buyers of completed homes start asking for debt relief. steady decline in real estate prices.

Translation by Cindy Carter.

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The 5 best tips for refinancing your car loan https://innovativewords.com/the-5-best-tips-for-refinancing-your-car-loan/ Fri, 15 Jul 2022 05:24:05 +0000 https://innovativewords.com/the-5-best-tips-for-refinancing-your-car-loan/ Refinancing your car loan has many advantages. Refinancing lowers your monthly payments and saves you money. Lower payments mean more money in your pocket at the end of the loan term. Refinancing will also reduce your overall interest rate. Here are some tips for refinancing your car loan. Remember that you can get a better […]]]>

Refinancing your car loan has many advantages. Refinancing lowers your monthly payments and saves you money. Lower payments mean more money in your pocket at the end of the loan term. Refinancing will also reduce your overall interest rate. Here are some tips for refinancing your car loan. Remember that you can get a better deal with refinancing than with your current lender.

  1. Credit score:

First and foremost, you can compare rates by checking your credit score. Your credit score will determine the interest rate you will be offered. Although bad credit is not a barrier to refinancing, you may find it difficult to get a good rate. Your credit score and payment history are also important when comparing auto loan rates. Having a high credit score makes it easier to qualify for a lower rate.

  1. Save money:

Refinancing your auto loan can save you money each month on your car payments. But it is important to note that this option is only beneficial in certain situations. For example, refinancing may not make sense if you are about to pay off your car loan. If your credit score is low, refinancing may not be a good idea. When refinancing your car loan, make sure you have the lowest interest rate possible.

  1. Gather the necessary documents:

When applying for a new car loan, be sure to gather the necessary documents. You can also consult RateGenius to get more help. Be sure to gather all necessary documents, including personal information, vehicle VIN number, and previous loan information. Be sure to check everything before signing anything. Finally, don’t forget to follow up with your previous lender. This means that any payments you make are applied to the new loan. The savings you can get over time can be substantial.

  1. Assess your finances:

Refinancing your car loan may be the best option for many consumers, but it’s important to note that not all car owners may qualify. You should carefully assess your finances and check your latest car loan bill for submarine amounts. If you have enough equity in your car to prepay the loan, refinancing may be an option. You should also be aware of prepayment penalties – fees charged to borrowers for prepaying their loans. Although these fees are nominal, they may reduce your overall savings.

As mentioned above, your credit score is one of the most important factors in refinancing an auto loan. Your current lender will base your interest rate on your credit score, which may raise or lower your score. To improve your credit score, try to make your monthly car payments on time. Doing so will increase your credit score by a few points. You may even get a better interest rate by paying off the loan earlier.

  1. Lowest interest rate:

After applying for several auto loans, you must choose one with the lowest interest rate. Then compare interest rates, repayment terms and fees and narrow down your list. Once you have found the one that suits your needs, you can fill out the application form directly with the lender. You can submit the application online or by phone. When submitting the application form, be sure to enter all the information you provided on your previous application.

Conclusion:

Depending on your financial situation, you may be able to save more money by refinancing your car loan. Often this is the easiest option for those with bad credit. In addition to lower monthly payments, refinancing your auto loan can lower your overall interest paid over the life of the loan. However, a refinance auto loan is not for everyone. It all depends on your personal situation, your current financial situation and your goals.

When refinancing your car loan, consider check your credit score. If your credit score has improved, you may be able to get a better rate. If you have a co-signer or co-borrower, this can also help you get a better rate. Refinancing your auto loan should only be done after you have checked your credit and improved it. Otherwise, applying for a loan could negatively impact your credit rating and cost you a higher interest rate.

This article does not necessarily reflect the views of the editors or management of EconoTimes

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“I’m calling about your car warranty” scams continue | News, Sports, Jobs https://innovativewords.com/im-calling-about-your-car-warranty-scams-continue-news-sports-jobs/ Wed, 13 Jul 2022 06:36:42 +0000 https://innovativewords.com/im-calling-about-your-car-warranty-scams-continue-news-sports-jobs/ I’m calling for your car warranty! How annoying these calls are. We get them all. Did you know that scams are big business for those who scam to get our money. The office of State Senator George Borello, the Chautauqua United Senior Council, the Chautauqua County Sheriff’s Office, the Center for Elder Law […]]]>

I’m calling for your car warranty! How annoying these calls are. We get them all. Did you know that scams are big business for those who scam to get our money. The office of State Senator George Borello, the Chautauqua United Senior Council, the Chautauqua County Sheriff’s Office, the Center for Elder Law & Justice and the Chautauqua County Office for Aging Services presents a community meeting on July 15th. This event will be held at the Fluvanna Church community in Jamestown. No registration is necessary, just come from 10 a.m. to noon.

The New York State Attorney’s Office receives complaints of fraud. The Federal Trade Commission lists common scams reported regularly. Many are phone scams, like your car’s extended warranty. This is from their website at https://consumer.ftc.gov/features/scam-alerts

Scams by Imposters: A scammer pretends to be someone you trust: a government agency like the Social Security Administration or the IRS, a family member, a lover, or someone claiming to be there. has a problem with your computer. The scammer may even show a fake name or number on your caller ID to convince you.

Debt Relief and Credit Repair Scams: Scam artists will offer to lower your credit card interest rates, repair your credit, or get your student loan forgiven if you pay first a fee to their business. But you could end up losing your money and ruining your credit.

Business and investment scams: Callers may promise to help you start your own business and provide business coaching, or guarantee big profits on an investment. Don’t take their word for it. Learn about the FTC’s Business Opportunity Rule and learn about investment opportunities from your state securities regulator.

Charity scams: Scammers like to impersonate charities. Scams asking for disaster relief donations are especially common over the phone. Always consult with a charity before donating and don’t feel obligated to donate immediately over the phone before making a donation.

Extended car warranties: Scammers find out what kind of car you drive and when you bought it in order to trick you into buying overpriced or worthless service contracts.

“Free” Trials: A caller may promise a free trial, but then sign up for products (sometimes many products) for which you are billed each month until you cancel.

Loan scams: Loan scams include upfront loan scams, where scammers target people with bad credit histories and secure loans or credit cards for an upfront fee. Legitimate lenders don’t make such guarantees, especially if you have bad credit, no credit, or bankruptcy.

Prize and sweepstakes scams: In a typical scam, the caller will say you’ve won a prize, but then tell you that you have to pay taxes, entry fees, or shipping to get it. But after paying, you find out that there is no price.

Travel scams and timeshare scams: Scammers promise free or low-cost vacations that can end up costing you in hidden fees. And sometimes after paying you find out that there is no vacation. In timeshare resale scams, scammers lie and tell you that they will sell your timeshare – and may even have a buyer lined up – if you pay them first.

People are vulnerable to scams because scammers are adept at praying out their fears or hopes using a bad situation/consequence like an arrest warrant, grandchild needs help in jail, promises of a romantic relationship or a grand prize like winning a lot of money.

The scammers make us believe that there is an emergency, a deadline, and that you must act immediately or something bad will happen to them or you! They rely on your compassion and play on our natural impulse to help. They also don’t want to give you time to think too much about what they’re asking you to do. Often they ask for gift cards, cash, or a cashier’s check to pay for the “costs” which will release your millions but most often they are after your personal information which is the key to all your financial resources.

A key thing to know these days is not to trust the phone number that appears on your caller ID! Scammers have a trick called “identity theft” which allows them to display a phone number that looks like a local phone number. It is always good practice to let a call go to voicemail/answering machine. This way you can listen and decide if it’s someone you need to call back. The Federal Trade Commission (FTC) advises

1) Never pay to collect a prize.

2) Don’t get pushed around.

3) Talk to people you know.

4) Talk to the FTC. Report scams to 1-877-FTC-HELP (1-877-382-4357).

Reading this, you might think I wouldn’t be so gullible, but it happens to ordinary people every day! However, I am here to tell you that scammers are smart! The best way to defend yourself is to get information, keep up to date with the latest scams, and report any fraudulent contacts you receive. This helps stop the scam. Senator Bordello’s office, the Chautauqua County Sheriff’s Office, the Center for Elder Law and Justice, the Chautauqua United Senior Council and the Chautauqua County Office for Aging Services are hosting a community meeting July 15 from 10 a.m. to noon at the Fluvanna Community Church located at 3363 Fluvanna Ave Jamestown NY 14701. No registration is required.

The Chautauqua County NY Connects program can provide information and assistance on scams and get you there to report them to authorities. There are NY Connects programs located with the Office for Aging Services (OFAS) and the Southwestern Independent Living Center (SILC). You can reach NY Connects by phone: 716-753-4582 or 800-342-9871 email: ccnyc@chqgov.com Southwestern Independent Living NY Connects at 716-661-3010 or 716-490-7561. There is an online resource tool called the NY Connects Resource Directory as well as at www.nyconnects.ny.gov. We’re here for you and can put you in touch with support.



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US bank profits will fall on rising bad debt reserves https://innovativewords.com/us-bank-profits-will-fall-on-rising-bad-debt-reserves/ Mon, 11 Jul 2022 10:26:00 +0000 https://innovativewords.com/us-bank-profits-will-fall-on-rising-bad-debt-reserves/ Major lenders will begin reporting second quarter results on Thursday The four biggest banks could record $3.5 billion in provisions for reserve analysts Investors looking for clues on recession prospects NEW YORK, July 11 (Reuters) – Second-quarter profits at major U.S. banks are set to fall sharply from a year earlier on rising loan loss […]]]>
  • Major lenders will begin reporting second quarter results on Thursday
  • The four biggest banks could record $3.5 billion in provisions for reserve analysts
  • Investors looking for clues on recession prospects

NEW YORK, July 11 (Reuters) – Second-quarter profits at major U.S. banks are set to fall sharply from a year earlier on rising loan loss reserves as the pandemic recovery gives way to a possible recession.

Analysts expect JPMorgan Chase & Co to post a 25% drop in profit on Thursday, while Citigroup Inc and Wells Fargo & Co posted a 38% and 42% drop in profit on Friday, respectively, the data showed. from Refinitiv I/B/E/S.

Bank of America Corp, which like its peers has large consumer and business lending franchises, is expected to show a 29% drop in profits when it reports on July 18.

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The fall in profits stemmed from lenders adding to their reserves for expected loan losses, a reversal from the previous year when they benefited from the reduction of such buffers as anticipated pandemic losses did not unfold. have not materialized and the economy has strengthened. Read more

“It’s going to be a fragile quarter for the sector,” said Jason Ware, chief investment officer of Albion Financial Group, which owns shares of JPMorgan and Morgan Stanley (MS.N).

Investors will want to hear executives’ thoughts on the health of the economy and whether borrowers are “more fragile now,” Ware said.

Banks must factor in the economic outlook into loan loss reserves under an accounting standard that came into effect in January 2020.

While Friday’s data showed the US economy added more jobs than expected in June, it could still be on the verge of a recession. Gross domestic product contracted in the first quarter, with consumer spending and manufacturing readings tepid over the past two weeks. Read more

TIME TO BUILD

Last month, JPMorgan CEO Jamie Dimon warned of an economic “hurricane”, while Morgan Stanley CEO James Gorman said there was a 50% chance of a recession. Read more

“Banks are going to have to replenish their reserves,” said Gerard Cassidy, banking analyst at RBC Capital Markets.

JPMorgan, Citi, Wells Fargo and Bank of America, the nation’s four biggest lenders, could record $3.5 billion in loss provisions versus $6.2 billion in profits last year when they released reservations, Cassidy said.

As a result, the banks’ financial results will be worse than their underlying activities. Pre-provision and pre-tax profits for the Big Four will fall just 7%, according to estimates by analysts led by Jason Goldberg at Barclays.

To be sure, banks are also adding to reserves for the additional loans they have made, as businesses have started to borrow more and consumers have once again used credit cards to travel and eat out. And loan losses and actual delinquency rates are still near record highs.

But bank executives said more lending would go wrong. Analysts will pressure banks for clues about when and how much and to what extent they could possibly offset gains in net interest income – the difference between banks’ cost of funds and the interest they receive.

Net interest income growth is the highest in a decade, fueled by loan growth and higher interest rates, Goldberg said. Net interest income rose 14% in the second quarter, on average, for the four largest banks, he estimates.

“You have very strong loan growth and very low loan losses,” he added.

But a severe recession could lead to real loan losses and reverse those gains, Cassidy said.

ERASING WALL STREET

Morgan Stanley, the sixth-largest U.S. bank by assets and a major Wall Street player and investment manager, also reported on Thursday and was expected to post a 17% drop in profits.

The fifth-largest bank, Goldman Sachs Group Inc. (GS.N), is expected to report a 51% drop in profits when it reports on July 18.

Goldman, like Morgan Stanley, makes fewer personal and business loans than the four largest banks and changes to its loan loss provisions are less material to earnings.

But the fees Goldman makes on trades, including underwriting stocks and bonds, are expected to be down sharply, partially offset by higher trading revenue due to heightened volatility. Read more

Mortgage business revenue is expected to decline as rising interest rates dampen demand for mortgages and refinancing. Read more

Banks’ asset management businesses will also see lower revenue due to lower stock and bond prices, Goldberg said.

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Reporting by David Henry in New York. Additional reporting by Megan Davies. Editing by Michelle Price and Deepa Babington

Our standards: The Thomson Reuters Trust Principles.

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