Great news is that credit ratings can fluctuate, so it means if you are credit score is not in good range, then you can improve it. By improving your credit score, you will be saving thousands of dollars. A good credit score is great for several reasons including better interest rates, higher chance of loan approval, easy to get a new credit card, higher chances of getting hired, and more credit card signup bonuses.

This article highlights the tips you need to improve your credit. Continue reading!

Check Your Credit Report

One of the first things you need to do is check your report frequently. This is because there are several problems that can decrease your credit rating. The most common problem many Canadians have to face is identity fraud. This is why it is recommended to check your credit report regularly, so you can prevent similar credit score killers.

If you have spotted something on your credit report that you are not familiar with, you can contact the credit agency. Additionally, if you want to increase your credit score, you have to identify the areas that you need to improve.

Pay Bills on Time

One of the easiest ways to improve your credit score is by paying your bills on time. Paying bills punctually and steadily, you can give a boost to the credit score. It is advised to be patient as it will take some months before it can start reflecting in your score.

New Lines of Credit

Many people think that opening a new line of credit will help improve their credit score. This is just a misconception as it can have a negative impact on your credit score. It is because the new lines of credit will be perceived as less trustworthy.

However, this doesn’t mean that you can’t open new lines of credit if you need to. You just have to be prepared for a decrease in your credit score. With the passage of time, the adverse effects will go away. Hence, you should try your best not get a new loan until you really need it.

Late Payments

Although you should not, in any case, delay your payments. If due to any reason, you are unable to pay bills on time, you must try not to go past one month. This means you should try to make late payments no later than one month. It is recommended to be a month late on two bills instead of two months late on a bill.

This is because most of the companies don’t inform the credit agencies about one-month late payment. So, if you miss your payment by a few days, there is nothing worry about. This because it will not show on your credit report.

Use Your Credit Card Less

When you have to improve the credit score, you can start by limiting your credit card use. This means that you should not max out your credit card. Though your debt utilization ratio matters more, spending to the maximum limit can have a negative impact on your credit rating. For instance, you have 3 credit cards with the max limit $1,000. It will be better to divide the expenses on all the three cards rather than maxing out one card.

So, you should use your credit card smartly and make regular payments. This will help in showing that you are managing your money and it will lead to an increase in credit limit. All these things will help in giving a boost to your credit score.

Automating Payments

Another wonderful way to improve your credit score is by automating your payments whenever you can. This is extremely useful if you want to make payments punctual. There are numerous companies that will enable you to schedule monthly payments and keep a track of these payments. It is a great way to make budgeting simple and reduce the risk of missing a payment.

Bottom Line

Giving a boost to your credit score is not an easy task, it requires you to put in extra effort and time. However, if you need a loan with bad credit score, a private lender is the best option. This doesn’t mean that you should not improve your credit rating as bad credit score will harm your lifestyle.

The post Tips to Give Your Credit a Boost in 2019 appeared first on Loan Away.

Common examples of small loans are:

Personal Loans

A personal loan is another common example of small loans as they are also given for a smaller value. These are generally short-term loans and can be either secured or unsecured. However, they are generally repaid in form of installments. A fixed payment schedule is decided with the agreement of both the parties, which is signed by them.

Benefits of Small Loans

Have a look at some of the benefits of small loans:

Easily Manageable

Small loans are easy to manage. This is due to the fact that they have a smaller value. Hence, repaying them is not a tough task. Even if an individual has obtained multiple small loans, they can still manage it easily. In case, they have trouble managing them, there are numerous loan management instruments at their disposal that they can use. A debt consolidation loan is a popular instrument among them.

Easy to Apply

Small loans are relatively easier to apply as compared to other types of loans. This is due to the fact that they are low-risk loans. Many lenders provide this convenience to applicants to apply for the loan online. All the information related to loans they offer is also available on their website. Hence, any Canadian resident can apply for a small loan in a hassle-free manner provided they meet the requirements.

Quick Processing

For the processing of long-term loans and loans with a higher value, it generally takes a longer time. The lender needs to be sure that their money is in safe hands. However, with small loans, there is no such issue. They are quickly processed, and the borrower can receive loan amount within a few days. In case of a payday loan, the loan application is approved during the same day.

Low Interest

As compared to high value loans and long-term loans, small loans have a lower rate of interest. This way, the borrower gets saved from spending a huge chunk of their income for paying interest on the loan they have obtained.

Multiple Purposes

A small loan can be obtained for multiple purposes. Whether an urgent expense has cropped up, the due date of an outstanding bill is nearing or you have medical expenses not covered by your insurance company, you can apply for a small loan and meet your financial needs easily.

How to Apply for a Small Loan?

As stated above, the process to apply for a small loan is easy. All you have to do is to select a reliable and reputed lender in Canada and go through the terms and conditions they have set. Apply for the loan online and wait for the lender to contact you. Once they have received your application and reviewed your details, they will let you know whether you are eligible for the loan or not. It will be then followed by other formalities, provided you have proven your eligibility.

The post Small Loans appeared first on Loan Away.

Loan types such as payday loans and personal loans can be obtained easily and have a low processing time. Due to these features, people often tend to apply for a loan for purposes that could have been easily avoided. Furthermore, people have multiple credit cards from different companies as well. Credit card companies, from time to time, announce lucrative offers on the use of cards, which also contributes to overspending and, ultimately, credit building.

All these amounts obtained can prove to be difficult to repay, as a result, loan installments are missed, and credit card bills become outstanding. This position can prove to be extremely daunting as the credit score is affected adversely and payment history is impacted.

A poor credit score can create numerous issues. It limits the chances of loan application approval from banks. There are some lenders who charge a high rate of interest on bad credit loans. Moreover, it also has an effect on the employment opportunities as well since employers tend to check the credit score and history of the candidate during the screening process. If they have a poor credit score, their chances of selection become slim.

How Debt Consolidation Loans Can prove to be Helpful?

If you have landed yourself in such circumstances where you are drowned in multiple loans and credit obligations, you can use loan management tools to tackle the daunting situation. There are numerous such tools available to be used in Canada but it is firmly suggested to opt for a debt consolidation loan.

The top reason why it is recommended it to use is that it doesn’t have a negative effect on the credit score, unlike other loan management instruments. It only adversely affects the credit score if the borrower misses paying debt consolidation loan installment.

What is an Unsecured Debt Consolidation Loan?

An unsecured debt consolidation loan is a way to manage all the loans and credit obligations together. They are combined in a single loan. Therefore, instead of managing multiple loans and making numerous payments in a month, a single installment is required to be made by the borrower. This makes loan repayment much more convenient. The added advantage here is that the rate of interest can also be lowered, which can help you to save money.

Generally, only unsecured loans are combined in debt consolidation loans. This is why it is referred to as an unsecured debt consolidation loan. This type of loan can help to improve your credit score as well but for this to happen, you will have to make all the payments on time.

 Things to Consider Before Getting an Unsecured Debt Consolidation Loan

Here are some of the things you must consider prior to getting this type of loan:

• Make sure there is no other way out. This type of loan is only suitable if you are completely drowned in debt and have no other option at your disposal.
• Talk to your creditors at first. Negotiate the rate of interest or the amount payable before applying for a debt consolidation loan.
• Make sure the loans payable are unsecured ones as a debt consolidation loan won’t cover secured loans.

Final Thoughts

There you have it! Now that you are aware of what an unsecured debt consolidation can do for you, if you ever feel you have no other way out when you are drowned in debts, use this option and bail yourself out from tough circumstances.

The post Unsecured Debt Consolidation Loans Canada appeared first on Loan Away.

What is a Credit Score?

A credit score is a 3 digit score a person is given based on the use and payments of their credit instruments. It forms an integral part of their creditworthiness. Different factors determine the credit score of an individual. These include payment history, credit history, public records, credit used by them and available credit they have, and inquiries made against them etc.

What is a Fair Credit?

A credit score is divided into different categories with particular terms defining the score of an individual. Have a look at these categories and terms used for them:

In Canada, credit score ranges between 300 and 900; the former being the lowest and the latter, the highest. A score between 300 and 500 is considered to be a terrible credit whereas if it lies between 500 and 579, it is called very poor. From 580 to 619, a credit score is called poor while if it falls between 620 and 680, it is average credit.

From 680 to 719 and 720 to 779, the credit score is good and very good respectively. If a person has a credit score of over 780, it is considered an excellent credit score. They can have the best rate of interest and no difficulty whatsoever in getting their loan application approved.

If you have a credit score of 650 or above, it can be called a fair credit score.

Impact on Fair Credit on Personal Loans

A personal loan is typically a small value, short-term loan suitable for people who need quick money. It is to be repaid in form of installments and can be either secured or unsecured. A personal loan, as the name suggests, can be obtained for meeting personal financial needs.

When an individual applies for a personal loan, whether from a bank or a private lender, the first thing that is taken into consideration is their credit score. Banks tend to disapprove the loan application of people who do not have a fair credit score. However, private lenders are willing to offer personal loans but they, generally, offer these loans at a higher rate of interest. This is the major reason it is recommended to have a fair credit score as it can help to get a personal loan easily and on favorable terms and conditions.

If you have a fair credit score, there will be no complications or hassles in getting the type of loan, whether secured or unsecured. Furthermore, you will be in a position to negotiate the terms with the lender as well and make loan repayment more convenient for yourself.

Even if you don’t have a fair credit score, you can find a personal loan at favorable terms but for this, you will have to do ample research to find a reliable private lender. It can prove to be quite a time and effort consuming.

A Key Advice

Simply put, whether or not you require a personal loan, it is advised to take quick measures to improve your credit score at your earliest.

The post Personal Loans With Fair Credit appeared first on Loan Away.

On the other hand, when one lives a life in a fast-paced country, it can become a tad bit expensive at times. One must pay bills, rent, and for the basic necessities of life, which are becoming costly with each passing day.

In such a situation, it is not uncommon to face financial troubles at times. Fortunately, Canada provides multiple financial solutions including loans. Banks, credit unions, mortgage lenders, and direct lenders can be accessed for loans in order to regulate financial issues. Banks are the most common source of loans as they happen to be authentic and reliable financial institutions.

On the other hand, they also offer solutions that come with strict rules and regulations and complicated approval processes. This makes people often apprehensive. It has led to the popularity of private lenders in Canada in recent years. Additionally, the increase in seeking bad credit loans has also been a factor in the popularity of direct lenders.

What is Bad Credit?

When dealing with financial troubles, it is not surprising if one has bad credit. A credit report card is given a rating known as the credit score. This shows the person’s ability and responsibility to pay back borrowed loans. If the credit report has a considerable number of late payments, debts, and collection accounts, the score becomes lower and lower; hence called bad credit score.

Personal Loans with Bad Credit

If one has a bad credit score, it can be a bit difficult to get personal loans. Persona loans can be short-term and long-term as well as large or small in amount depending on the circumstances and needs of the borrower.

These may be acquired for costs such as car maintenance, home repair, funding a wedding, buying an expensive gift, etc. With a bad credit score, lenders are likely to reject personal loan applications as it makes them vulnerable to increased risk.

Acquiring Personal Loans with Bad Credit

Banks and some other private lenders may reject you with a bad credit score but there are certain direct lenders who are willing to accommodate such applications. In fact, they have specifically designed loan options for bad credit scores.

In addition to this, they also offer quick approval processes so one can access the money quickly to resolve financial issues. Such direct lenders can be easily found online and their offers are openly advertised.

Choosing a Direct Lender for Personal Loans with Bad Credit

When you run a search online, you will come across multiple direct lenders willing to offer bad credit loans. You must choose a lender that meets your specific requirements. For example, the type of personal loan required, amount of money, and how quick you want it.

One should also check for the lender’s repute and reliability. This can be accomplished by reading up on their provided website. Learn about lender’s history, policies, number of successful approvals, and testimonials by previous borrowers.

Once you have chosen the lender, you can use their online application form to put in the loan request. Direct lenders transfer money directly to your given account upon agreement of contract from the borrower.

Meanwhile, it is important to boost your credit score. This is not just important for future loans but may come in handy when applying for certain jobs.

The post Personal Loans Bad Credit Canada appeared first on Loan Away.

To obtain this loan in Canada, the borrower is not required to provide any collateral. However, if the borrower fails to pay back or any other problem comes up, they are responsible for returning the money.

This borrowing solution is very popular in Canada as it helps people to get rid of their short-term financial issues. Below are some of the problems that can be solved with loans.

Small Business

If you are new in Canada and you are willing to start a small business, then we would suggest that you should go for micro borrowing. After verifying your application, the borrower will give you a small amount of money. You need to tell the bank or the firm about your startup and they will show you the package that suits you the most

No Collateral

It is common that banks and other companies require something to keep as a collateral. However, this is not the case when it comes to these loans. You are not required to provide any collateral in order to get approved.

When Your Business Is Not Going Well

It can also be helpful for ones with an unfavorable business condition. However, it is important to know that the bank won’t allow you to take another loan if you have not paid your previous dues.

Bad Credit History

If you want to get approved by your bank, make sure you have a good credit score. If you have a low score, chances are that they will end up rejecting your loan application. This is something that you don’t have to face when it comes to micro funds from direct lenders.

Small Amount of Money

Sometimes, borrowing small amounts can be beneficial for you. Even though it could only be $2,000 or $3,000, it would be much more convenient for you to monitor your loan and pay it off. In addition, before borrowing, make sure you clearly understand the purpose of applying.

Emergency Cases

Micro-funds can prove to be beneficial in cases you are dealing with a financial urgency. They are considered to be one of the feasible and easy methods to obtain quick cash in Canada on easy terms.

Monthly Bills

Paying monthly utility bills and rents can burn a hole in your pocket. There comes a time when you have spent all your money on your needs and all of a sudden you remember that there are pending bills. This is where loans can help too.

Be Financially Stable

One of the greatest things about micro borrowing is that it won’t let anyone get on the streets and ask people for money. Do not forget that smaller amounts are easier to manage and pay off.

The post Micro Loans for Micro Problems appeared first on Loan Away.

For all those people who want to get out of debt in Canada, follow the 8 handy tips explained in this article and clear your debts before the due date. Have a look at these effective tips:

1. Get to the Root

The very first step, get to know the problems and reasons that are causing late payments of the debt. Once you have identified the problems, you can move to the next step i.e. finding their solutions.

2. Know How Much Debt It Is

In order to pay your debts, you must first know how much debt you are having. This is an important step. Quite often, people make this mistake that they do not keep the track of how much debt they have paid or how much debt they have to pay. They just keep paying them off by giving a minimum amount every month. This what the banks/credit card/loan companies actually want. They will get a chance to increase the interest rate.

Once the interest rate is raised, it is almost like you have never paid any amount ever. So make sure that before start paying your debt, make a track and follow that. After tracking all your debts, you are going to make a promise to yourself that you will bring that number down.

It is important to know that paying off debts requires a lot of commitment. Avoid making minimum payments as you will be digging a hole for yourself, as we mentioned earlier.

We would recommend you use a debt consolidation loan calculator. There are numerous debt consolidation loan calculators available on the internet. All you have to do is enter your balance type, the amount you own, monthly payment and interest rate. It will generate the result and give the amount you are required to pay in order to be debt free faster.

3. Start from the Bigger Numbers

This is the part where you have set what is important to you. You have to decide where you are going to start. We would recommend you to start with a bigger number. It will help you in paying all your debts faster at lower interest rates.

4. Make a Budget

If you really want to pay all those debts off in a short amount of time then you have to be very organized. Form a budget and check if there is anything unnecessary that you have been doing lately.

Strike them off from your list and use things that you actually need. This will let you save money and you can pay off your debt in a shorter amount of time. Keep a track on what things you are spending your money on.

5. Kill All Your Temptations

In order to pay all your debt, you have to kill all your unnecessary desires and wishes that have no purpose in your life. We know that you feel happy when spending some cash on yourself but this is what will make things better. You have to stop using your credit card and start saving some money. If you can’t do that then give your credit card back to the bank. You can get a new one later when you are all debt free so don’t worry.

6. Try Selling Things Online

Just make a list of things that you think are useless like old furniture, clothes, accessories etc. Estimate their market price and arrange a price that you think reasonable and upload an advertisement for those products on different marketing websites. There are many people who will be willing to buy your things. Use this money to pay off your debts.

7. Make More Money

Once you have decided to pay off all those debts, you need to work hard then. Start doing over time so that you can get some extra cash from your job and use it to pay off all your debts.

8. Debt Consolidation Loan

Another option is to go for a debt consolidation loan. If you are wondering what is a debt consolidation loan? you can find your answer here. It means that you are taking out a new loan in order to pay other debts, usually the ones which are insecure.

How to Get a Debt Consolidation Loan?

You have to go through a procedure for that. At first, you have to apply for this loan from a private lender or a credit union, they will call you for an interview and ask you questions regarding your expenses. The application will be accepted after a thorough evaluation of the information you have provided them.

Debt Consolidation Loan, Canada can be a plan that is easy to access but you are bringing more financial problems to yourself. Make sure that you follow these steps so that you don’t need to face any further problems.

The post 8 Steps to Get Out of Debt appeared first on Loan Away.

Family and finance: Financial experts give their tips for the New Year

Did you make any resolutions for this New Year? Or set any goals? It’s not too late to do so even if the first month of the year is about to end. This applies especially to your family’s finances.

On my blog, TrulyRichandBlessed.com, I always say that our finances are part of our “riches,” i.e. our blessings from the Lord, so we must be good stewards and manage our finances properly. Here are some tips from financial experts that will hopefully get you started on the right path:

Obey the ‘laws of money’

Author, speaker, and Philstar.com columnist Rose Fres Fausto advises us to usethe simple three “Basic laws of money.” “They’re so simple that even young kids can understand, remember, and practice them throughout the year,” she adds.

The “laws” are described in Fausto’s book, “The Retelling of The Richest Man in Babylon,” which can be purchased from major bookstores. These are as follows:

1. “Pay yourself first”

2. “Get only into a business that you understand; and seek advice only from competent people.”

3. “Make your gold work for you. Make an army of golden slaves before you buy luxury.”

Fausto says COL Financial Chairman Edward Lee phrases this in a different way: “1) Save 2) Invest 3) Reinvest.”

Many Filipinos don’t even know about these “laws,” especially the first one: “Pay yourself first,” which basically means that when we receive any income, we should set some aside for our savings first beforewe spend money on anything.

The first law of money: Pay yourself first. www.fqmom.com/Rose Fres Fausto

In our family, we strive to follow this formula: Income less Tithes and Savings = Expenses. This means that we set aside money for tithing (to the Lord via our parish and community) and savings, and whatever is left is what we use for our monthly needs (or expenses). We are not yet 100 percent consistent in doing this but we do our best every month.

Don’t wait

Mon Santiago, a financial literacy crusader and educator of the International Marketing Group or IMG’s Wealth Academy, always shares this bit of financial wisdom to individuals and families in the free financial literacy seminars that he conducts: “Don’t wait. Start to save and invest as much as you can, as soon as you can.”

Financial educator Mon Santiago always emphasizes the importance of saving and investing your income during his free financial literacy seminars. www.fantasticfinancialeducation.wordpress.com

Santiago (who also happens to be my dad!) adds, “Procrastination is the enemy of saving and building wealth. When many people are young, they think they have a lot of time to save. Then they get married, have kids, and buy a house. With a home loan and new expenses, money becomes tight. They tell themselves they will start saving later.

“As they enter mid-life, their children go to college, and tuition takes a big bite out of their budget. Soon they will join the majority of people approaching retirement with little to no savings. They know they must save, but now they say it’s too late.”

So start saving money now. Every single peso counts!

Share your blessings

As I mentioned earlier, our finances are part of our “riches” or blessings from God. So we are not just supposed to use our money for ourselves, but we are also meant to share it with others.

Allan Ngo, founder of the Truly Rich Club Blog, shares how he does this: he created an “automated charity fund.”

“We normally think of money in terms of accumulation, but one of the most powerful impact money can have is through generosity. That’s why I created a charity fund. It’s a separate bank account I set up to which I automatically transfer a certain percentage of the money in my main bank account every month.

“I personally use BPI’s Save-Up account. You can inquire with your own bank for such facilities.”

Ngo says the transfer is automated or automatically done by his bank every month for a purpose.

“Remember, we are taking hard-earned money away from our own personal use, and that can be painful. So making it automated takes that emotion away and enables continuity,” he explains.

“I use this [fund] to support my sponsored children from World Vision, donate to charities when calamities strike, and help out a friend or relative in need. Mentally, since I’ve already earmarked this for helping others, it enables me to quickly help others wholeheartedly. Personally, this fund has made a tremendous impact in my life, and I hope it does the same to you.”

I hope these finance tips will help you and your family to have a great year ahead financially. Remember, it’s not too late to put these tips into action, even if January is almost over—we still have 11 months to go before the next New Year rolls in!

thumbnail courtesy of philstar.com

Only you care about your finances. If you are not looking after it, who will? Personal finance is not difficult and is not very time-consuming. Where do you start? You need to start researching which financial book works best for your needs. A person who wants to pay off their debt quickly will read a different book than someone who wants to invest their money. It can be as simple as searching for “how to save money book”. You will probably come across a list of ten or hundreds of books to choose from. 99% of them will benefit you in some financial way. It can be as little as saving $10 a day by eating out less, debt consolidation, or paying yourself first. Research what works best for you and work on it. Enjoyed this article? Hopefully, you did. If so, let us know on social media about how much you’ve learned reading our articles daily.

The post Financial Tips For 2018 appeared first on Loan Away.

5 all-too-common excuses that will keep you from building wealth

One of the most important numbers you should calculate and track consistently is your net-worth, which is your total assets (those things worth money like your house and any investments) and your total liabilities (what you owe money on like credit card, mortgages, and student loan debt).

Your net worth is how much money you would be worth if you paid off all of your debts: Assets – Liabilities = Net-Worth

Over time as your investments grow and you pay down your debt, you net-worth will go up. This is why it’s so essential to invest while paying back your students loans. Ever since I started my financial journey I’ve been tracking my net worth using free tools like Personal Capital.

Median net worth in the United States

Recently, a friend and I were discussing an interesting statistic from an article about net-worths. The statistic that we were talking about was was from an article in Business Insider from Jim Wang showcasing the average net worth for the different age groups of Americans.

Given that the average savings rate in the United States has fallen to a 7 year low at only 2.9%, it’s not really surprising, but incredibly disconcerting to see that the members of my age group (under 35) have a net worth of less than $6k.

The 35-44 age group isn’t much better with a net-worth of $35,000. That’s crazy considering

• Average price for a car in the United States is a whopping $34,968
• Average student loan debt is $34,144
• Average credit card debt at $16,883
• the higher cost of living

This is a recipe for disaster. All of these numbers paint a bleak picture of Americans and the hole is getting bigger to get out of. It also doesn’t get any prettier for just millennial net worths either based on a more detailed analysis on The College Investor:

The College Investor

My friend asked me why I thought more people in our age group are stuck at a certain net worth or why I thought it was hard for many to change their financial situations. Then he asked, “Was it that hard for you to change your situation?” In a simple answer: yes and no.

Top 5 money excuses holding you back

But after we had some back and forth text messages, I realized there are are a few common excuses people make about money that keeps them from saving and investing. These are the same money excuses that are keeping people from pursuing (and eventually achieving) financial independence.

Send this to any of your family or friends who are making excuses and need to start saving more money. All of our futures depend on it. Let’s get those net worths up!

Excuse #1: I don’t have time to budget and look at my personal finances

Oil Scarff/Getty Images

One of the main excuses I’ve heard among my friends, colleagues, and others is the same old excuse for most things: a lack of time. Sure, pretty much everyone has busy schedules whether it be school, work, family, kids, etc. A majority of people lead extremely busy lives.

Yet, I bet that majority also find time to binge watch Netflix for hours (Hey, me too!), play sports, watch sports, and go shopping, etc.

Americans watch an insane amount of television each week. The average millennial watches television 26 hours a week (3.7 hours a day) and older Americans (35-44) watch it 36 hours a week (5.14 hours a day).

And those things are all fine to do in moderation, but it’s fairly easy to take 20-30 minutes a month to devote to planning and managing your finances. Seriously that not much time. And it actually takes a lot less time than you think.

There are tons of free tools out there like Mint and Personal Capital. Use them.

Excuse #2: Personal finance is too confusing

This was the biggest excuse that personally held me back in my own financial journey. Thinking personal finance was confusing was one of my biggest money mistakes.

The biggest reason people think that personal finance is too complicated is for two primary reasons.

The financial industry is set up so personal finance seems complicated, with its acronyms and fine print, so that some finance companies can make more money and we aren’t taught much about money in school.

The challenge here is, unless you were in accounting or some financial track in school or college, Americans really are not taught a lot about personal finances in the education system. Although “money management” is one of the most requested classes by high school students in the United States and it looks like the trend is starting to shift a little bit.

A vast majority of personal finance you can learn online for free by reading blogs and listening to money podcasts. Or by reading the best money books.

Excuse #3: It’s too hard to get out of debt

Virginia State Parks/Flickr

Whether it’s student loan debt, car debt, credit card debt, personal debt, or mortgage debt, it feels like everyone is swimming in debt these days.

But paying off debt is really a numbers game — always pay down the highest rate interest rate first, then move onto the next one. In almost all cases credit card debt will have the highest interest rate and should be paid off first.

No matter how large your debt is, some people actually have over $1 million in student loans and they were able to pay them off. While I used to have a lot of debt, every year I’m surprised how much more debt I paid off when at first it only seemed like a minimal amount.

The sooner you start crushing it the sooner it will be gone. No one likes having debt, but you need to face it head on instead of the, “I’ll worry about it later.”

Excuse #4: I’ll worry about it later

This is the money excuse that bothers me the most.

I’m guilty of it. Too many of us put off our finances until later. The longer you wait to invest or to save or to pay down debt, the longer you will miss out on potential investment gains.

The first company I worked for after graduating college had a pretty solid 401k, but I knew very little and wasn’t too concerned. “I’ll worry about it later,” I’d say to myself.

All I knew at the time was having a 401k was good to do, so I did sign up, but I only contributed 2% when the company matched at 6%. D’oh! Facepalm. SMH.

Well, then after working at the company for four years, I was let go. During that entire time, I never increased my contribution rate once! I easily missed out on $50,000 — $100,000 in future potential investment gains by not increasing my 401k contribution rate.

Now, of course, I got to keep the money I did save, but I kick myself for not spending the time (man excuse #1 keeps creeping up) and just looking into it.

No matter what financial decision you are putting off making, make it today, like right now. Get it off your plate. As an added bonus, current neuroscience research shows that making decisions makes you happy.

Excuse #5: What if I lose money?

Sarah Jacobs

Who hasn’t heard this money excuse? Seriously.

In my opinion, far too many people think that investing is gambling. They worry that they are either going to win big or lose it all. They see stories like the 20-year-old Florida man who won $450 million in the Powerball lottery and think that’s the way to get rich. The odds of winning that Powerball was 1 in 262 million (aka pretty much impossible).

But in reality getting rich isn’t about betting everything or putting all your eggs in one basket, it’s about coming up with a good investing strategy and keeping at it for the long haul. And taking calculated risks.

The stock market is going to go up and down, but it’s always gone up over the long run. And you’re never going to lose all of your money in the stock market (we’ll if that does happen we will all have much bigger problems like the entire financial system collapsing).

In reality, the stock market will only go up and down a couple percentage points a day — on the worst day the stock market was down was 22.61% on October 19, 1987. Here are the biggest stock market gains and losses in a single day.

So if you invest in a total stock market index fund then that’s about the most money you could lose in one day — and that was the worst day ever! And when you invest in the stock market it should be for the long haul so sure you can lose money investing, but over the long haul, the stock market is always up.

Final thought: Never get too comfortable

Many of us, myself included, often get too comfortable with our money strategy once we get it humming. Maybe your finances aren’t that bad, you have a decent job, some debt, but generally everything is paid on time.

Yet, your saving rate stays stagnant and you do not see much growth year after year. As soon as you feel yourself being too comfortable, that is the time to recognize it and get ready for a change. The time to push the limits.

When it comes to time and saving money, there are plenty of unexpected surprises. Things like health issues, losing a job, and other unexpected costs, but you have to remember it’s a part of everyday life. If you are going through it, someone else is too or even worse, yet you have to fight through it.

I lost my first job during the month of December and did not find a new full-time gig for almost nine months. But I found a way to not only make enough to pay the bills but enhance my career worth as well.

I still have a lot of work to do on my own financial independence journey, but I want to see my friends and as many people as possible succeed with money.

thumbnail courtesy of businessinsider.com

Have you made any of these excuses before? It’s alright, we all have at some point in our lives. We ask the Loan Away employees which excuse they have used the most. The most popular was number 4, “I’ll worry about it later”. This excuse just may be the most popular for the majority of Canadians. If you are paying the bills and feel comfortable, the majority of us are content with just that, being comfortable. That transitions to the final thought of the Business Insider article, never get too comfortable. Imagine if something drastic happened like losing your job or health issues. Are you prepared for that? If not, you should save some money just in case. This is a part of life. Be financially ready for the unknown. Enjoyed this article? Great. Let us know via social media or email us your thought, suggestions, or concerns.

The post Excuses That Will Keep You From Becoming Wealthy appeared first on Loan Away.

The reason why most people get rejected for a personal loan

Whether you’re looking to do home improvements, tackle medical costs, or consolidate debt, you may be tempted to take out a personal loan. These short-term options are unsecured (meaning you don’t have to put up collateral), and can provide an influx of cash when you need it most.

The issue for many Americans is that they can be tough to get.

LendEDU, a marketplace for loans and financial products, just released data showing that 76% of people who apply for a personal loan are declined. One of the main reasons for rejection? A low credit score. The average American has a credit score of 687. Meanwhile, the average FICO credit score of an approved applicant was 741.

Of those who do get approved, LendEDU predicts that just 35% went on to accept the personal loan. It’s unclear why someone would decline a loan they applied for, but the financial site says it could be because they didn’t get the interest rate or loan size they requested.

While some consumers can’t get loans, and others reject them, the fact is more Americans are actually taking out personal loans. Currently, 16 million consumers have an unsecured personal loan. According to a TransUnion, personal lending balances grew a steady 10.8% in the second quarter of 2017, totaling $108 billion.

How to get a loan

The growth of financial technology lenders is one thing helping people gain access to personal loans. These fintech lenders differ from traditional banks because they use technology and algorithms to assess a borrower’s creditworthiness. In some cases, these platforms provide peer-to-peer lending and work as the middleman between borrowers and investors. Back in 2010, fintech only made up 3% of personal loan lenders. In 2015, Transunion says that number jumped to 30%.

If you’re unsure where to find a lender, NerdWallet has a great list where you can compare providers and choose the best personal loan offer based on your credit score and needs.

Popular options include SoFi, a fintech lending site that promises to offer fixed personal loan rates starting as low at 5.49% APR. Applicants can apply for their loan online, and can borrow amounts ranging from $5,000 to $100,000. LendingClub is also a popular peer-to-peer option that has facilitated the borrowing of $31 billion. Applicants on this site can get a personal loan with interest rates starting at 5.99%.

Ultimately, getting approved will come down to your creditworthiness. You may be able to find a lender if your credit score is below 630, but you’ll probably get hit with a higher interest rate of 25% to 30%. In these instances, an online lender wouldn’t be very helpful for consolidating debt because you may face higher interest rates than a credit card. For better results, applicants should have a credit score above 690 to secure a personal loan with a good interest rate.

thumbnail courtesy of finance.yahoo.com

It’s alright, the majority of us have been rejected by a bank before. It happens to the best of us. They only accept people who have an above credit score instead of the average. This means if you missed even a single payment, you may be declined by a bank. This is discouraging, but you have options for getting the loan you want. If you have a credit score that is deemed bad credit, our loans start at 19% which is the same as a credit card. Our rates are much more responsible than what Brittany Jones-Cooper of Yahoo Finance suggest you will have to pay for. Not only does Loan Away has the highest approval rate in Canada, but also some of the most reasonable prices for financial institutions that provide loans for people with bad credit. Our goal is to help as many Canadians as possible get the loan they want. Often, our clients use the loan to better themselves. Most use the loan for debt consolidation, business loans, or personal loans for emergencies. Overall, we are proud to help any Canadian in need of a loan.

The post The Main Reason Why People Get Rejected At Banks appeared first on Loan Away.