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
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