Borrowers with bad credit history have a low credit rating and are usually refused loans from elsewhere. As the repayment ability of the loan seeker is crucial before seeking a loan. Hence, as per the loan seeker's circumstances the loans are available in secured or unsecured options.
In order to further ensure approval on bad credit loans, the loan seeker should pledge home or any property as collateral depending on the borrowed amount. Collateral cuts lender's risks and hence the loan approval comes without credit history hurdle. But people should go for secured loans only for greater amount of loan as you the rate of interest would be very low as compared to unsecured loans. Also you can repayment duration could differ from 5 to 25 years.
In case you are tenant or living in a rented house with bad credit history, then unsecured loans are the only options left, although homeowners also are eligible for the same. Smaller amount would be approved for 5 to 15 years on high interest rates.
Tips to Remember:
1. Ensure that you have made a good comparison between the lenders/banks as each has their own interest rate.
2. Take rate quotes from them for beneficially comparing them.
3. It is advisable to take bad credit loans from online lenders for a competitive rate offer and for less costly loan.
Last but not the least, make sure to repay the loan in time so that your credit score improves substantially and loan availing in future becomes lot easier.
Thursday, December 13, 2007
Monday, November 5, 2007
Glossary on Credit Cards
Below are few of the definition of different kinds of credit cards that we come across:
What is a credit card?
A credit card is plastic money which is used to pay for products and services at over 20 million locations around the world. All you need to do is produce the card and sign a charge slip to pay for your purchases. The institution, which issued the card to you, makes the payment to the outlet on your behalf and would be reimbursed at a later date by you.
What is a debit card?
Debit cards are substitutes for cash or check payments much the same way that credit cards are. However, banks only issue them to you if you hold an account with them. When a debit card is used to make a payment, the total amount charged is instantly reduced from your bank balance. A debit card is accepted only at outlets with electronic swipe-machines that can check and deduct amounts from your bank balance online.
What is a charge card?
A charge card carries all the features of credit cards. However, after using a charge card, you will have to pay off the entire amount billed by the due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.
What is an Amex Card?
Amex stands for American Express and is one of the well-known charge cards. This card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. This card is typically meant for high-income group categories and companies and may not be accepted at many outlets. There is a wide variety of special privileges offered to Amex card holders. For more information, please visit our card browser section.
What are MasterCard and Visa?
MasterCard and Visa are global non-profit organisations dedicated to promote the growth of the card business across the world. They have built a vast network of merchant establishments so that customers worldwide may use their respective credit cards to make various purchases. They also develop various technologies that are required for running the credit card business.
What is a smart card?
A smart card contains an electronic chip, which is used to store cash. This is most useful when you have to pay for small purchases, for example, bus fares and coffee. No identification, signature or payment authorisation is required for using this card. The exact amount of purchase is deducted from the smart card during payment and is collected by the smart card reading machine. No change is given. Currently, this product is available only in very developed countries like the United States and is used only rarely in India.
What is the Diners Club Card?
Diners Club is a branded charge card. There is a wide variety of special privileges offered to the Diners Club cardholder. For instance, as a Diners Club cardholder, you can set your own spending limit. Besides, the card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. However, since this card is typically meant for high-income group categories, it may not be acceptable at many outlets. It would be a good idea to check whether a member establishment accepts the card or not in advance. For more information, please visit our card browser section.
What is a photo card?
If your photograph is imprinted on a card, then you have what is known as a photo card. This helps identify the user of the credit card and is therefore considered safer. Besides, in many cases, your photo card can function as your identity card as well.
What is a global card?
Global cards allow you the flexibility and convenience of using a credit card rather than cash or travellers' cheques while traveling abroad for business or personal reasons.
What is a co-branded card?
Co-branded cards are credit cards issued by card companies, which have tied up with a popular brand for the purpose of offering some exclusive benefits to the consumer. For example, the Citi-Times card gives you all the benefits of a Citibank credit card along with a special discount on Times Music cassettes, free entry to Times Music events, etc.
What is an affinity card?
The card issuer ties up with popular organizations/institutions which are often non-profit organizations (e.g. Citi-WWF card or the StanChart-Cricket cards) to offer an affinity card. When the card is used, a certain percentage is contributed to the organization/institution by the card issuer.
What is an add-on card?
An add-on card allows you to apply for an additional credit card within the overall credit limit in the name of family members who include parents, spouse, siblings and all children above 18 years of age. Your billing statement would reflect the details of purchases made using the add-on card. You are liable to make good all the payments for the purchases made using the add-on card(s).
How many add-on credit cards can a customer get?
Normally, an issuing bank permits two add-on cards per credit card.
Is it possible to control the spending limit on add-on cards?
Yes. Some credit card issuing companies do set a limit for each transaction as well as for the total value of transactions allowed on a particular add-on card every month.
*source: http://www.apnaloan.com/primers/credit-card-india/cardtypefaqs.html
What is a credit card?
A credit card is plastic money which is used to pay for products and services at over 20 million locations around the world. All you need to do is produce the card and sign a charge slip to pay for your purchases. The institution, which issued the card to you, makes the payment to the outlet on your behalf and would be reimbursed at a later date by you.
What is a debit card?
Debit cards are substitutes for cash or check payments much the same way that credit cards are. However, banks only issue them to you if you hold an account with them. When a debit card is used to make a payment, the total amount charged is instantly reduced from your bank balance. A debit card is accepted only at outlets with electronic swipe-machines that can check and deduct amounts from your bank balance online.
What is a charge card?
A charge card carries all the features of credit cards. However, after using a charge card, you will have to pay off the entire amount billed by the due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.
What is an Amex Card?
Amex stands for American Express and is one of the well-known charge cards. This card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. This card is typically meant for high-income group categories and companies and may not be accepted at many outlets. There is a wide variety of special privileges offered to Amex card holders. For more information, please visit our card browser section.
What are MasterCard and Visa?
MasterCard and Visa are global non-profit organisations dedicated to promote the growth of the card business across the world. They have built a vast network of merchant establishments so that customers worldwide may use their respective credit cards to make various purchases. They also develop various technologies that are required for running the credit card business.
What is a smart card?
A smart card contains an electronic chip, which is used to store cash. This is most useful when you have to pay for small purchases, for example, bus fares and coffee. No identification, signature or payment authorisation is required for using this card. The exact amount of purchase is deducted from the smart card during payment and is collected by the smart card reading machine. No change is given. Currently, this product is available only in very developed countries like the United States and is used only rarely in India.
What is the Diners Club Card?
Diners Club is a branded charge card. There is a wide variety of special privileges offered to the Diners Club cardholder. For instance, as a Diners Club cardholder, you can set your own spending limit. Besides, the card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. However, since this card is typically meant for high-income group categories, it may not be acceptable at many outlets. It would be a good idea to check whether a member establishment accepts the card or not in advance. For more information, please visit our card browser section.
What is a photo card?
If your photograph is imprinted on a card, then you have what is known as a photo card. This helps identify the user of the credit card and is therefore considered safer. Besides, in many cases, your photo card can function as your identity card as well.
What is a global card?
Global cards allow you the flexibility and convenience of using a credit card rather than cash or travellers' cheques while traveling abroad for business or personal reasons.
What is a co-branded card?
Co-branded cards are credit cards issued by card companies, which have tied up with a popular brand for the purpose of offering some exclusive benefits to the consumer. For example, the Citi-Times card gives you all the benefits of a Citibank credit card along with a special discount on Times Music cassettes, free entry to Times Music events, etc.
What is an affinity card?
The card issuer ties up with popular organizations/institutions which are often non-profit organizations (e.g. Citi-WWF card or the StanChart-Cricket cards) to offer an affinity card. When the card is used, a certain percentage is contributed to the organization/institution by the card issuer.
What is an add-on card?
An add-on card allows you to apply for an additional credit card within the overall credit limit in the name of family members who include parents, spouse, siblings and all children above 18 years of age. Your billing statement would reflect the details of purchases made using the add-on card. You are liable to make good all the payments for the purchases made using the add-on card(s).
How many add-on credit cards can a customer get?
Normally, an issuing bank permits two add-on cards per credit card.
Is it possible to control the spending limit on add-on cards?
Yes. Some credit card issuing companies do set a limit for each transaction as well as for the total value of transactions allowed on a particular add-on card every month.
*source: http://www.apnaloan.com/primers/credit-card-india/cardtypefaqs.html
Friday, October 26, 2007
Wednesday, October 3, 2007
Education Loan's ROI offered by major banks...
Check the ROI offered by Major Banks in India
http://www.apnaloan.com/education-loan-india/rates.html
http://www.apnaloan.com/education-loan-india/rates.html
Sunday, September 30, 2007
Some Don't to remember while using Credit Cards
Listed below are few don't attached with the use of Credit Cards, if you want to remain happy:
- Never use them for buying Long Term Expenses - Never buy products such as Cars or any loan time product item from your credit card even though it allows it. Do so only in case you have that much of balance in your saving account or if you have taken a car loan.
- Use it within your income limit - If you have a Rs. 25,000 income and your expense is Rs, 35,000, for this short fall never use your credit card for the Rs. 10,000 short falls as it will slowly become a nightmare of debt trap for you.
- Borrow money as little as possible as against your credit card - Withdrawing money as against your credit card is not a smartest thing to do. In case of emergencies like traveling, where you fall short of money and need emergency funds, then you can withdraw maximum of 40% of your credit limit, thats is on Rs. 15,000 limit, withdraw up to Rs. 6,000 as you start paying high interest from the time you start taking funds. Hence the best way is to pay it back as soon as you reach back home so as to avoid going in debt.
Friday, September 28, 2007
Documents required while going in for Car Loans
Following documents you should carry while going in for Car Loans:
- Form 20 or application for new car registration
- Photocopy any proof of your address - Insurance Policy, Driving License, Ration Card, Voter's ID, Invoice of the car.
- Form 23 or Original Sales certificate document, sales tax receipt and Octroi Receipt
- Form 22 or Pollution control certificate
- Form 34 or Copy of your car loan / letter from the financier addressed to the RTO asking them to endorse the lien on your car registration certificate
- Document of your Car Chassis Number
- Photocopy of your PAN number
Monday, September 24, 2007
Saturday, September 22, 2007
Any Questions??
If you have any questions regarding any kind of loan then get in touch with me on surabhee.gupta@gmail.com
Thursday, September 20, 2007
How to get Tax Benefit from education loan???
Another Benefit in line to make get your child in for Higher Studies. Get an education loan and get tax benefit along with reducing the overall cost of the loan.
1. Under Section 80 E it is clearly mentioned that a person having an education loan will get a tax rebate for the interest paid (without any limitation as it used to earlier), and not an the Principal Amount, as the repayment of the loan for the first 8 years. Any loan above that time period will not get tax rebate after 8th year.
2. The tax benefit is given to only those people in whose name the loan has been taken, whether it is the person itself, or for spouse or for your children. It does not take into consideration the loan taken by elder brother or sister for the education of their siblings.
3. The loan taken by financial institutions or banks only give you the flexibility of tax reduction. Loans taken by family members, friends or employer doesn't add value in the tax reduction. Some charitable institution are also approved for the same by Govt. Of India.
4. Part time course loan are not included in tax benefit plan. Full time courses for Graduation or Post Graduation are included in the same.
1. Under Section 80 E it is clearly mentioned that a person having an education loan will get a tax rebate for the interest paid (without any limitation as it used to earlier), and not an the Principal Amount, as the repayment of the loan for the first 8 years. Any loan above that time period will not get tax rebate after 8th year.
2. The tax benefit is given to only those people in whose name the loan has been taken, whether it is the person itself, or for spouse or for your children. It does not take into consideration the loan taken by elder brother or sister for the education of their siblings.
3. The loan taken by financial institutions or banks only give you the flexibility of tax reduction. Loans taken by family members, friends or employer doesn't add value in the tax reduction. Some charitable institution are also approved for the same by Govt. Of India.
4. Part time course loan are not included in tax benefit plan. Full time courses for Graduation or Post Graduation are included in the same.
Tuesday, September 18, 2007
Needs Education Loan - Make sure you have the required docs
Below are the list of the docs that you need to deposit in the bank while taking an education loan along with the complete application form:
1. Mark Sheet of the last qualified examination
2. Proof from the institution of your admission / registration
3. Detail of the expenses and the break-up of the course fee
4. Bank account statements for last six months (if you have any)
5. Income tax assessment order for last 2 years. If you are not an income tax payee then your parent's tax statement would also be good enough
6. A brief analyzed statement of the assets and liabilities of the borrower, again of your parents if you don't owe any.
1. Mark Sheet of the last qualified examination
2. Proof from the institution of your admission / registration
3. Detail of the expenses and the break-up of the course fee
4. Bank account statements for last six months (if you have any)
5. Income tax assessment order for last 2 years. If you are not an income tax payee then your parent's tax statement would also be good enough
6. A brief analyzed statement of the assets and liabilities of the borrower, again of your parents if you don't owe any.
Monday, September 17, 2007
Car Loan or Personal Loan
I recently wanted to buy myself a new car and thought that instead of the total payment at one go I would go in for a car loan instead.
But then when I called up various banks to check the ROI they were offering I was shocked that most of banks told me to go in for a personal loan rather than taking it up as a car loan.
Well well I think the way they were trying to convince me it seems that most of the people have come in their rat trap. Now please don't get into this trap.
Car Loans are always better than personal loans.
On car loans you have to pay a lower EMI and also you get a lot of fringe benefits such as free car accessories and many more.
Also to tell you a secret this is the best time for taking car loans at the best rate as during this time the sales goes low and due to quarterly year ending in September sales people need to complete their target and hence you give the best rates possible with maximum benefits. :)
But then when I called up various banks to check the ROI they were offering I was shocked that most of banks told me to go in for a personal loan rather than taking it up as a car loan.
Well well I think the way they were trying to convince me it seems that most of the people have come in their rat trap. Now please don't get into this trap.
Car Loans are always better than personal loans.
On car loans you have to pay a lower EMI and also you get a lot of fringe benefits such as free car accessories and many more.
Also to tell you a secret this is the best time for taking car loans at the best rate as during this time the sales goes low and due to quarterly year ending in September sales people need to complete their target and hence you give the best rates possible with maximum benefits. :)
Friday, September 14, 2007
Credit Cards - Devil or Angel in Disguise
We should always try to get the best out of the credit cards. They are infact a great gift to us but yes they can become nightmares for us if not used properly....The best thing that I like about Credit Cards are that I can buy anything form them without disturbing my balance (as I can pay them later when my salary comes due to fixed billing date) and also there is no Interest headache even attached to it. Soemtimes if I forget to pay then also I get a reminder from the bank about payment due date on emails or on my mobile.
Also when you doa big shopping through your credit cards banks offer you reward points and redeem them for anything you would like. Or they might also transfer it to your other card if your due date for payment is coming near.
But yes at it is said correctly that nothing in today's world comes for free. hence, for this also to work properly for you, you should have adequate credit limit in your new credit card for the balance to transfer. Some banks even transfer the balance for free for the initial period.
So with so many benefits make your Credit Cards a blessing for you rather than taking loans over loans for paying credit cards bills.
So be alert and HAPPY SHOPPING....
Thursday, August 16, 2007
Zoom out on the favourite car on easy EMIs
Wanting to buy the Car Of Your Choice from long time but it doesnt fit into your salary... So what to do???
Well car loans in any case are fairly quick and convenient today to get as compared to the type of loans if you could fulfill the following parameters:
1. You should be able to put up the down payment (about 10-20%) of the on-road price of the car.
2. Proper paper regarding your identity and income documents will ensure that you get your loan quickly.
3. Another very important point which most people are not aware about is that the no-claim bonus on your car insurance (if this would be your second car) follows you rather the car. So if you have not yet made a claim on the insurance policy on your previous car make sure to get the advantage of the no-claim bonus on the much larger premium payable on your new car.
So Happy Zooming....
Well car loans in any case are fairly quick and convenient today to get as compared to the type of loans if you could fulfill the following parameters:
1. You should be able to put up the down payment (about 10-20%) of the on-road price of the car.
2. Proper paper regarding your identity and income documents will ensure that you get your loan quickly.
3. Another very important point which most people are not aware about is that the no-claim bonus on your car insurance (if this would be your second car) follows you rather the car. So if you have not yet made a claim on the insurance policy on your previous car make sure to get the advantage of the no-claim bonus on the much larger premium payable on your new car.
So Happy Zooming....
Wednesday, August 15, 2007
PSUs OR Private Banks
It is more about getting loans fast with low ROI that matters the most rather than which one go for. There is Chinese saying that says that the colour of the cat does not matter as long as it catches mice.
The same goes for the banks as well. There is no things such as which one to go for or which one is better? Though it is seen that currently PSUs are slightly cheaper with regards to home and car loans but then their norms and procedural formalities are slightly more tight.
But when it comes to personal loans, the PSU banks are not aggressive players at all in this field hence their counterparts, private sector banks, are the only choice left with the consumers.
On credit cards field again the PSU banks are little low (although SBI cannot strictly be classified as a PSU since it is managed by a JV between SBI and GE with regards to credit cards).
The same goes for the banks as well. There is no things such as which one to go for or which one is better? Though it is seen that currently PSUs are slightly cheaper with regards to home and car loans but then their norms and procedural formalities are slightly more tight.
But when it comes to personal loans, the PSU banks are not aggressive players at all in this field hence their counterparts, private sector banks, are the only choice left with the consumers.
On credit cards field again the PSU banks are little low (although SBI cannot strictly be classified as a PSU since it is managed by a JV between SBI and GE with regards to credit cards).
Monday, August 13, 2007
Want an easy home loan? Here are few easy quick tips
The only solution for the same is that get all the proper property documents are with you as in most cases of home loans the problem arises mainly on the property and their document front rather than on credit sanction from the banks.
Anyways it is always advicable to keep all our property papaers, whether onwed or rented, safe with you, no matter if you have enough money and do not wnat to go in for a loan anytime. You never know when you would require them in the future.
Anyways it is always advicable to keep all our property papaers, whether onwed or rented, safe with you, no matter if you have enough money and do not wnat to go in for a loan anytime. You never know when you would require them in the future.
No Permanent Address.... How to get Home Loan???
Living in a rented place for quite sometime now and looking for a permanent house to call your own. Great News congrats... but it would be difficult for you to get a personal home loan without proper proof of residence, thats what the bank policy says before giving loan to people. Don't worry there are ways to deal with the same:
1. If you are staying in a rented accommodation with proper documentation (i.e. a rental agreement, same address on your passport/driving license etc.) then you can possibly get the loan.
2. Also if you are employed with a top 500 company then it may still be possible to get a personal loan based on some certificate from your HR department.
If still facing problem then take the guidance from financial advisors or use the market place guides such as www.apnaloan.com for further help.
1. If you are staying in a rented accommodation with proper documentation (i.e. a rental agreement, same address on your passport/driving license etc.) then you can possibly get the loan.
2. Also if you are employed with a top 500 company then it may still be possible to get a personal loan based on some certificate from your HR department.
If still facing problem then take the guidance from financial advisors or use the market place guides such as www.apnaloan.com for further help.
Saturday, August 11, 2007
General tips on Home Loans
Home Loans are the most confusing of the lot when it comes to getting loans since it involves huge amount or even your property at stake. Hence here are few general tips that need to be kept in mind while looking for home loans from Banks:
1. Since home loans are a long term financial commitment so think and research well before actually taking the decision.
2. Also remember there are other factors such as nature of the rate (fixed or floating, be very careful and read the documents for the floating and fixed rate before signing of the papers) prepayment charges, property eligibility(if you are staking your property for the same) loan eligibility, repayment of the loan, etc that will also determine your choice of the lender.
3. Also there was this case where the person signed in for a fixed rate amount and the bank increased the rate of interest after one year with the increase in the actual market also. Hence as I said before read the documents very carefully, especially the fine prints, before signing.
So All-in-all scout around the finance market before making your choice. For rest I am always there.
1. Since home loans are a long term financial commitment so think and research well before actually taking the decision.
2. Also remember there are other factors such as nature of the rate (fixed or floating, be very careful and read the documents for the floating and fixed rate before signing of the papers) prepayment charges, property eligibility(if you are staking your property for the same) loan eligibility, repayment of the loan, etc that will also determine your choice of the lender.
3. Also there was this case where the person signed in for a fixed rate amount and the bank increased the rate of interest after one year with the increase in the actual market also. Hence as I said before read the documents very carefully, especially the fine prints, before signing.
So All-in-all scout around the finance market before making your choice. For rest I am always there.
Thursday, August 9, 2007
Confusion confusion...!!!!
When it comes to shopping of small things I don't think twice about buying an item no matter what price. But yes finance is an area where everyone would like to think 100 times before investing. Well I think whether it is investing or taking up loans it is always a difficult are to deal in. and definitely requires a lot of thinking and researching is required.
I usually find it strange when people cry over not getting too many options to look forward to. But for me confusion happens when I usually find too many options to choose from and can't get my opinion stick to one thing. At this point of time I keep remembering a chant said by our ancestors, which my mom keeps telling me... Too little or too much of anything is not GOOD...
Being a financial advisor I have had people coming to me day in and day out asking for some guide and advice in their financial matters. The strange thing that I have always encountered while solving their problem is that they are usually scared in dealing with banks. According to them banks are like lions (well I know my associated will not be too happy with this comparison) who are always ready to tear their prey (loan seekers).
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