NOT ALL LENDERS ARE EQUAL

VEHICLE TITLE LOANS --  NOT ALL LENDERS ARE EQUAL

Your car is a valuable asset.  Next to your house, it is probably one of your largest financial investments.  And similarly, like your house, you can make the equity in your car work for you when you need to borrow money.

But not all lenders are equal.  So what should you look in a lender for when you go to borrow money?   Basically, the following five things:

1.      Make sure your loan is open so you can pay off early.  Why pay interest on repayment time not needed?

2.      Be sure the lender reports to Equifax regularly so that your payments can help you rebuild your credit score. A solid repayment history on Equifax helps to  restore your credibility as a person who can manage your payments responsibly over a prolonged period of time.

3.      If you are unableto make a payment on time, will you be able to call and hold your payment?  Will there be a charge?  How long can you hold your payment?  Lenders differ on this.  But there are some such as Prudent Financial Services who will allow you to hold your payments free of charge for up to two weeks.  This is rare.  

4.      Ask your lender if he will work with you in the event of an illness, a job loss or any other unforeseen misfortune that could impact on your ability to repay.  Would the lender  restructure the loan payments, for example?

5.      If you default on a loan payment but call up quickly to make arrangements for repayment, ask for reassurance that there will not be repossession of the car.  Most lenders will respond positively if you call promptly.  Some will not.

The relationship between lender and borrower is one of mutual trust.  The borrower is putting his car on the line and the lender is usually putting a good chunk of money at risk.  For the relationship to work, both parties have to be responsible and respectful.  If the borrower defaults on payments without communicating to the lender, he/she may jeopardize the possession of the car.

The onus is on the you, the borrower, to contact your lender as quickly as possible if there is a problem.  Most responsible lenders will work with you as long as they feel you are being honest and open.  This is how the borrower-lender process of Vehicle Title Loans could and should work.

For more financial tips visit www.prudentfinancial.net

Repairing Your Credit after Bankruptcy and Proposal

 

Once you’ve been discharged from a bankruptcy (or completed a consumer proposal), you have the opportunity to make a fresh start financially — to repair your credit and leave behind your previous life of indebtedness.  But while your bad debts may be forgiven, your insolvency is not quickly forgotten.

                                                                                                                                          

Your bankruptcy will appear on your credit report for six years following discharge (even longer if you went bankrupt more than once).  A consumer proposal will appear on your credit report for three years following completion.  This means that if you apply for credit, the lender will learn of your (recent) bankruptcy or proposal. 

 

Even so, there are several steps you can take to gradually restore your creditworthiness.

● Open a bank account. Open a new savings account with a bank that was not one of your creditors when you went bankrupt. No matter what your credit history is, you cannot be denied an account because of it.

● Save as much money as possible. Draw up a weeklybudget and stick to it. Try and save at least 5% of your paycheque.  Spend only on essentials such as rent, groceries, medicine and transportation.  Give up those double lattes and pricey restaurant meals. Take inexpensive vacations.

● Stay up-to-date on your mortgage.  If you were able to hang on to your house despite the bankruptcy and have kept your mortgage payments current, you will likely be able to renew the mortgage without difficulty at any time after your bankruptcy discharge. Maintaining the mortgage with on-time payments will definitely help rebuild your credit rating.

● Correct any ruinous habits.   It’s important to understand what caused your bankruptcy.  If it was due to losing your job or suffering an illness, these were probably factors beyond your control.  But if it was addictive behaviour that got you into your financial bind, you need help in preventing a repetition of such ruinous indebtedness.  

Substance abuse and shopaholic binges are prominent addictions that can result in insolvency, but the Bankruptcy and Insolvency Act specifically cites gambling as a “fact” that bars an automatic discharge. The bankruptcy Court may impose rehabilitative measures as a condition of discharge.  These may include addiction counselling, participation in the Ontario Lottery & Gaming Corp.’s self-exclusion program and not gambling for a period of time,

 

● Obtain a secured credit card.  If you give the credit-card issuer, say, $500, they will keep the $500 as a security deposit, and give you a credit card with a $500 charge limit. Your monthly payments will be reported to the credit bureau, so you are taking a first step in improving your credit score.  But don’t charge more than you are sure you can repay in full each month. Nevercarry a credit card balance that’s over 50% of your credit limit.



● Take out a small loan – Obtain a personal loan so that you have new credit reporting. Make all your payments on time every month.  A late payment will further harm your credit score. Choose a loan company that specializes in repairing credit with open, affordable, same-day loans to discharged bankrupts and even current ones.

● Limit your credit requests.  Be cautious about applying to multiple sources of credit.  If too many potential lenders ask the credit bureaus about your credit during a short period, it may have a negative impact on your credit score.

If you take the above steps, you’ll leave insolvency behind and successfully restore your creditworthiness.

Prudent Financial offers the lowest-cost rates for people with bad credit histories in Toronto and the GTA.  For more information about PRUDENT FINANCIAL SERVICES, visit our web site: http://www.prudentfinancial.net

Here's Some Things You Need to Know about Bad Credit Loans

Sometimes, no matter what you do, you still find yourself in a bind with financial difficulties. Often the only to recover is to apply for bad credit loans. There are many offers on the market today that claim to be there to help you out of your troubles, but you have to always be cautious when you are trying to rebuild your credit. One of the first steps to take is to research all of your options to get the very best interest rate with and the longest repayment period. This will allow you to be able to better manage your current income.

You’ve already checked with your bank. They've indicated your current credit score is a problem. Even though many people believe there would be no way a bank would give them bad credit loan, if they are willing to work closely with the people who already know them, it is often possible to get the lowest cost bad credit personal loans right from the bank they are already doing business with. If nothing else, you can take the information you get from your bank and compare it with other offers you may obtain. It does take time to comparison shop, but it is well worth the investment of time.

If you are looking for bad credit loans to get you out of your current financial bind, be sure to look past the headlines in advertisements. Some lenders may seem to be offering incredible rates to all their customers; you have to remember that these may just be teaser rates to get people in their offices. Once you are there the old bait and switch tactics take over, and you may find the rates for loans after a proposal may be a lot higher than you expected. It is always the best idea to shop around, no matter where you are looking for a loan.

There is something else you must know when getting bad credit loans. When you take out a loan with a long term payback period you will be paying extra in interest and any fees that apply. If you can afford to do so, it would be a good idea to make that payback period as short as possible. Remember you are trying to save money no matter what you are doing. However, if you must keep the monthly payments low, more time to pay the loan may be the best option for you. That way you will be able to make the rent, car payment, and put groceries on the table.

For more valuable information, visit www.prudentcreditrepair.ca

Be Sure to Get all the Information Before Accepting Terms for Bad Credit Loans

As the economy takes more and more people hostage, there seems to be an increasing need for help from bad credit loans. This type of loan is necessary sometimes to help rebuild your credit, but should never be taken lightly as a means to go deeper into debt. For those who are trying with all their might to get back onto the right side of the debt monster with loans after bankruptcy, the last thing you should want to do is get back in over your head with loans you cannot repay. Here are some tips to help you better manage the money you make.

Do your research so that you can find bad credit loans without having to pay more in interest than you have to. After all, it is probably the huge interest rates that got you into trouble in the first place, that and not being able to control your urge to splurge. Interest rates are lower today than they have been in the recent past, so be sure you know what you are looking for when you do your search. Take your time as you do everything you can to rebuild your credit. Don’t forget, it was impatience that got you here to begin with.

Once you have visited with a number of lending institutions, take the quotes you have received and compare them side by side. These quotes may include different interest rates and may also have a variety of types of fees as well, so be sure you know what you are looking at before you sign on the dotted line as you do what you can to rebuild your credit. Remember too that the amount of any bad credit loans will affect the interest rates as well. Most of the time the interest charged will be decrease with larger loan amounts. Just don’t borrow more than you need.

Don’t forget when you are searching for bad credit loans to check to see if you will be penalized for paying your loan off early. Not every financial institution will try to prevent early pay off of loans after bankruptcy, but some still do. It is not that they are trying to make it harder on their customers, but some want to make as much on the interest as they can and this is one measure they take to squeeze every penny out of the transaction as they can. Just be sure to take the time to get all the information you can about what you are agreeing to before accepting the terms.

For more valuable information, visit www.prudentcreditrepair.ca

The effects a payday loan store may have on your community

Most people may think that payday loan stores have only been around for the last 10 years or so. This is because of the boom with these storefronts opening up across the country. Payday loan stores are everywhere, at every corner you turn. With the industry continuing to boom many residents in areas nearby are becoming worrisome of the effect that a store will have to their community.

Residents are not happy that these stores are opening up in their neighbourhood for the following reasons:

Not aesthetically pleasing - Residents will complain that a payday loan store is an eye sore and is not aesthetically pleasing for the neighbourhood. Most people don’t want a tattoo parlour or pawn shop in the area because of the stigma attached to it. A payday loan store is no different in their eyes.

Increase neighbourhood crime – They are concerned that these financial institutions will increase neighbourhood crime. The companies who provide the service and some of the consumers who use the service understand the need for a payday loan for those hard working Canadians who are facing financial hardship with a bad credit score. With that said, it’s hard to ignore that these locations do attract the wrong people to the neighbourhood.

How it affects other businesses in the area – Many will argue that having a cafe or small restaurant next to a payday lender will drive their business away because flashing neon signs stating “Quick cash” doesn’t exactly scream relaxed atmosphere.

The value of their property decreases – If you have several of these stores in your area, the value of your home can decrease. It may also be a lot harder to rent a property or sell a home because as a buyer you will look at all elements and will factor in the area as being a low income neighbourhood.

The impact it will have on families in the community – For customers in need of a quick loan for emergencies, it may be a convenient resource HOWEVER all these loans come with extremely high interest rates and fees and these vulnerable families can easily become trapped in the payday loan spiral causing more hardship than just financial hardship.

Not only can individuals pay a high price from these types of lenders but an entire community, the very community that has struggled to reduce crime can also.

There are alternatives to borrow money for people with bad credit histories. There are lenders, like Prudent Financial Services, that will not only lend you money with a low interest rate but will also help to increase your credit score by reporting all your payments to Equifax.

For more valuable information, please visit http://www.prudentcreditrepair.com/

The importance of fixing credit

Credit is basically borrowed money that you use to purchase products or services and pay for them at a later date. We use credit to buy homes, cars and even businesses. It also allows businesses to grow and expand. All jobs that are created and almost all buildings that are built are built on credit. Credit keeps our economy spinning so credit is a great thing however we need to be careful with our credit. Using credit makes spending money really easy and it’s all too common to lose control and wind up in debt that you can no longer pay. Access to credit does come with a price and the price is high interest rates which will only continually increase the balance of your debt. Once you’re in this position, your credit is tarnished.

Your credit can open up many possibilities for you. It will determine you’re worthiness through the banks, certain employers and to landlords. Having bad credit will only reduce these opportunities so it’s extremely important that you repair your credit.

Rebuilding your credit is a process. Bad credit may have left you with no credit cards and paying high interest rates on loans. The last thing you want is to take out a loan through any payday loan store as they will only charge you obscene amounts of interest rates. Also, if you’re making your payments on time, payday loan stores WILL NOT report your payments to the credit bureau to boost your credit score. They WILL however report your defaulted payments to credit agencies only tarnishing your credit even further so stay clear of all payday loans.

Fortunately you still have options! Prudent Financial Services doesn’t just provide loans to people with bad credit histories , they’ll go several steps further than their competition to help you repair your credit by reporting regularly to Equifax and you’ll earn the highest credit rating which when you pay on time.

Practice makes perfect so get your good credit habits into practice. Your credit will only improve once you show your creditors that you have what it takes to build a good credit score.

Good luck on your goal to good financial health. For more valuable information, visit http://www.prudentcreditrepair.ca/

Getting sucked into the Payday loan spiral

You hear and see the payday loan advertisements everywhere. At every corner and all over the internet you will see” Borrow $500 in 15 minutes, no credit check required!” Sounds convenient and easy right? In reality, it really is that easy HOWEVER it’s easier to get sucked into the payday loan spiral.

The Problem

The problem with a payday loan is that you’ll become trapped in a web that’s impossible to escape. With a payday loan you are borrowing against a future pay. The interest rate is extremely high so when 2 weeks roll around and you can only afford to pay off the interest, you carry the loan forward and then the next pay turns into the next pay and before you know it, you’re not paying off the loan and wasting ALOT of money on interest.

What To Remember

You must remember that a payday loan company is disguised as a beneficial route for you but they are happiest when you’re paying them a good chunk of money on interest rather than paying off your loan. This is how they survive. You must also keep in mind that if and when you default in payments, it will be reported to the credit bureau and your credit score will be tarnished.

What Are My Options

You should avoid taking out any more payday loans, seek other alternative lenders that offer a better interest rate. More traditional lenders will even help rebuild your credit by reporting all payments to the credit bureau.

Since 1984, Prudent Financial Services has been specializing in repairing credit with open, affordable, same day loans to discharged and undischarged bankrupts, people whose proposal is almost paid off, or people with paid off debt who still have bad credit scores.

Save your money, your credit rating and your financial health. For more valuable tips and information, visit our facebook page at www.facebook.com/prudentfinancial

Think smart. Think Prudent.