Aaron Harwood – Financial blog to help families find easy ways to save money and make their lives a little easier

California payday financial loan

2021-01-15 Aaron Harwood No Comments

For those searching for a California funds advance, also well-known as a California payday financial loan, there are certain elements and principles mechanics that are necessary to have an understanding of. Payday financial loans California, which incorporate payday financial loans Los Angeles, payday loans Sacramento, CA and payday loans Fresno, CA will need to comply with California legislation, but have liberal allowances which make them simple to attain. Payday financial loans in California are an uncomplicated way to take care of quick-term funds shortages that arise considering that of surprising bills and emergencies.

The Mechanics of a Cash Progress CA

California payday loan, Los Angeles A cash advance California is 1 application available to any personal who has a regularly shelling out occupation that enables him or her to handle when dollars is small. This may well be induced by an unpredicted medical-related monthly bill or auto restore costs, but should be utilised with care. In order to qualify for a hard cash progress in California, just one will need to have a valid kind of identification, an productive checking account, and a occupation that pays the employee at normal intervals. To receive a payday financial loan California, the employee pledges his or her potential earnings as collateral on the financial loan. California payday financial loans are repaid at the time of the employee’s future paycheck, but call for nominal paperwork and are usually authorized in 24 hrs or fewer. In addition, quite a few creditors enable these financial loans to be utilized for, reviewed, and approved completely on-line. The on-line character of this type of financial loan usually means that there is very little useful difference involving a Los Angeles income progress, a San Diego hard cash progress, a money progress San Francisco, a dollars advance Sacramento, or a dollars advance San Jose as lengthy as all California legal guidelines are followed, the unique lieu of the lender is of a lot less consequence.

An unique looking for a Sacramento cash advance or a cash progress Los Angeles can be assured that applying an on line loan provider will produce the same exact outcomes. Though the total that a offered financial institution is eager to advance might differ, and a couple of the details of the technique are distinctive, the total course of action is commonly the exact. There is no credit score examine and no further collateral required to safe the loan the financial loan is produced against the long term earnings of the borrower. In conditions of mechanics, the loan company will often plan equally the transfer to one’s checking account to make the loan, and the transfer out of the account to repay the financial loan at the exact time. This assures the loan provider that the income is repaid at the date of one’s following paycheck.

Issues and Problems to be Knowledgeable of with Payday Loans

No matter if in the kind of expenses or an explicit fascination level, payday financial loans and income advances can be highly-priced relative to regular financial loans or even credit cards. Right before getting a bank loan of this nature, it is essential to area the want for dollars in context relative to the expense and relative to other selections. Knowing that this is an overpriced way to meet one’s small-phrase dollars desires is important so that the trouble that brought on the need for the cash is not exacerbated. With the cost in intellect, there are periods at which this kind of financial loan can make an enormous distinction, protecting not only one’ s expenditures, but also one’s credit score.

Considerations When Getting a Payday Personal loan

For most persons, there are instances when a shorter-expression cash require will arise that is over and above one’s other credit score availability. In instances like these, taking a money advance on one’s paycheck is certainly the ideal conclusion. For instance, 1 requirements to take into consideration the fees involved with doing late payments on one’s credit score cards as effectively as the likely influence that late payments can have on one’s credit score. If you are not able to make payments on several credit cards, the fees of a money advance are speedily eclipsed by the total of all of the late costs merged. In addition to the cost, there is the influence on one’s credit score to retain in mind. Late payments have a adverse result on one’s credit and can have an effect on later requests for credit score. The other issue to consider is that lots of credit card firms have built-in provisions in their credit score agreements that permit them to lessen one’s credit score line on a late payment. This is one other negative effect.

When it is very clear that protecting one’s work or covering important medical-related methods is an apparent time to use a dollars advance, there are several instances the place this program can be helpful. As prolonged as the price is diligently thought to be, this preference is a wonderful alternative when best suited. Learn more at Open Loans CA, Inc., website.…

Before You Refinance..

2020-12-012020-12-09 Aaron Harwood No Comments

Refinance

Before you refinance your mortgage or even consider consolidating your debts, the first step is to consider ‘what’s in it for the person offering me this deal?’ In most cases, when people want to refinance, they call either a mortgage broker or they visit their bank – but there are other people who can (and will) tempt you into considering a refinance or a debt consolidation.

Mortgage Brokers
— If you called a mortgage broker, then you already know that broker gets paid by the lending institution (bank etc) to tell you about certain ‘loan products’. Being paid by a bank is usually a great motivator for selling you something you might not even need. Ask lots of questions – but specifically – ask your broker if each bank/lender pays him the same amount of commission. If you learn that one lender pays higher than another, then you should be wondering if that broker is only offering you deals from that lender in order to get paid more money.

Your Local Bank
— If you went to your local bank branch and asked the teller, then you already know that teller is trained in ways to make that branch more profits. Banks are businesses, too! Knowing that the staff at bank branches have sales targets to meet means that teller might be trying to sell you a loan product you might not need. More importantly, your own bank only has its own products to sell you. They can’t honestly compare their own products to that of other banks.

Debt Consolidation Company
— If you rang a Debt Consolidation Company, they would be happy to tell you exactly how much money you can save by consolidating all of your debts into one easy – and cheaper – monthly payment. In many cases, even though your monthly payment may be reduced, your total cost will increase dramatically, meaning it will take you even longer to get out of debt. Add to this the fact that the debt consolidation company gets paid by helping you to refinance and you are armed with the knowledge that they only care about selling you their consolidation product and getting paid – whether you really need it or not.

Real Estate Agent
— If you spoke to a real estate agent and learned that you could increase the value of your home by adding on a new room and renovating the kitchen. All he says you need to do is refinance your current mortgage. You already know that agent is only after the sale of your home. He’s not even a little bit interested in seeing you pay off your mortgage! Steer clear of people offering advice in areas in which they have no qualifications. As the old saying goes: “The most expensive advice is often free advice”.

Friends and Family
— If your best friend told you about his or her new car and new furniture and a great holiday – all by paying lower monthly payments than she used to on her old mortgage, you might be tempted to look into how she did it! You already know what’s in it for your friend – extra money in her pocket each month. But that doesn’t mean it’s going to help you or your situation – especially if it means paying back even more money over a longer term.

Always remember – your financial situation is never the same as anyone else’s. Why would a loan product that helped your friend necessarily be the right product for your situation? Don’t be tempted to try something just because it worked for someone else.

So… remember to ask: “What’s in it for the person offering me the deal?” If you can answer that question first, you’ll have plenty of ammunition against a slick sales pitch. You’ll also be much less likely to sign away your income for a further 30 years because the sales promise sounded so easy that anyone could…

Every Cent Counts

2020-11-192020-12-09 Aaron Harwood No Comments

mortgage

It stands to reason that the easiest way to pay off any debt is to put more money toward the amount you still owe. The more you pay, the faster the debt will clear. Right?

Right. The problem there is – not many people have huge amounts of left-over available cash to pour into a mortgage each month. Would it make a difference, though, to simply pay a few extra dollars a month on top of the regular payment?

Can your spare change really make a difference to your mortgage? Can spending a couple of minutes going over your original mortgage contract make a difference?

Believe it or not – every cent counts.

Before we begin, we need a base loan amount to use as an example.

Let’s say you have a 30-year mortgage of $120,000 with an interest rate of 7.5%, your minimum monthly payment is: $839.06 per month.

If you paid precisely that amount each month, it would take exactly 360 months (or exactly 30 years) to repay your mortgage. The scary part is NOT the amount of time it takes.

What is really scary is that 360 payments at $839.06 per month = $302,061.60

Now THAT’S scary! It would actually cost you more than $300,000 and take you 30 years to pay off a $120,000 mortgage!

Let’s look at some examples.

Example One:
What if your bank charges a monthly “account” fee on TOP of your regular payment? $5 per month does not sound like a lot of money, but that small change sure does add up quickly. Paying banking fees and charges can eat into the amount you could be paying off your mortgage balance.

$5 per month over the term of a 30 year loan is $1,800. If you put that $5 onto your mortgage balance instead of paying it in banking fees, you could potentially cut your loan term down to 29.3 years and save $4,798 in interest payments.

There are plenty of ways to reduce – or sometimes even cut out – banking fees without the hassle and expense of refinancing. More on those in another article.

Example Two:
Your minimum payment is $839.06 every month. This is what the bank expect you to pay. What would happen if you rounded up the amount to a nice, even figure?

Let’s say $850 per month. That’s only $10.94 per month extra – that’s 0.36 cents per day! Small change, isn’t it?

If you paid that extra small change into your mortgage each month, you could pay off your mortgage in 28.6 years and save $10,104 in interest payments.

Ten thousand dollars is NOT small change any longer!! That’s a substantial saving.

Let’s combine example one with example two: You choose to pay an extra $10.94 on each monthly payment. You also decide to add the $5 per month you save on banking fees to that payment. Now you’re paying $15.94 per month EXTRA (making a total payment of $855 per month)

You could pay off your mortgage in 28 years and save $14,277 in interest payments. And we’re still talking only petty cash!

Example Three:
What if you rounded your minimum payment up to the nearest hundred? Instead of paying $839.06 per month, you pay $900 per month. That’s $60.94 more per month than the minimum payment.

You could see your mortgage paid off in 24 years – that’s 6 years off the total loan term! On top of that, you would save yourself $43,243 in interest payments.

Now we’re starting to talk about serious savings…

You can try some of these examples yourself with any good mortgage calculator. You’ll be surprised at how much petty change can save you.…

Things You Never Knew About Your Credit Score

2020-10-152020-12-09 Aaron Harwood No Comments

Credit Score

Have you ever wondered what your credit score means?

Your credit score (or FICO score) is a numerical summary taken from the information in your credit report, which is calculated using a formula taken from all three credit reporting bureaus.

The formula takes into account various factors, which include:
• your repayment history or credit performance
• your current debt levels
• the types of credit you use
• your length of credit history
• any new credit you’re trying to apply for or have applied for in the past 12 months.

What Does Your Credit Score Mean?

The highest possible credit score a person can receive is 850 with the lowest score being 300 – although the median in America is around 720.

When assessing your suitability for a loan, lenders will look at your credit score. This gives them an idea about your past history with repaying money and helps them to assess your ‘risk factor’.

The way banks see it, the lower your credit score the higher your risk factor in their eyes. A low credit score tells them you have a history of bad repayments with other creditors. Of course if you’re considered a high risk borrower then banks tend to opt for a “rate-for-risk” approach when it comes to determining what interest rates you’ll be charged. If your bank sees you as a high-risk borrower, then you’ll probably receive higher interest charges as a result.

The same is true in reverse too. Those people with high credit scores are likely to be offered the best interest rates. Banks view people with high credit scores as ‘low risk’ as it shows they already have good repayment history. Banks are willing to reward people with a good credit score as they are likely to remain good clients and pay their bills on time.

Factors Affecting Your Credit Score

Most people know your credit score is affected by late payments on bills. Delinquent accounts, payments over 30 days late, any accounts turned over to a credit agency or collection and bankruptcies are shown on your credit report and your credit score is reduced accordingly.

But your score could also be affected negatively if your credit report shows a higher than normal amount of ‘hard’ credit applications in the past 12 months. Hard inquiries are those generated every time a lender or company accesses your credit report for the purpose of extending credit. The more times you apply for credit in a 12 month period, the more negative effect it can have on your overall credit score.

Another thing that can really reduce your score is high levels of available debt. Even if you pay down the balance to zero on all your credit cards each month, just having high limits available is taken into account. Banks will add up the total amount of available credit and this figure is enough to drop your total credit score.

Improving Your Credit Score – Little Things

The first obvious fix would be to have any errors removed. Sometimes information gets mixed up. If your credit report shows any errors, you have the right to dispute these. Companies have 30 days to respond to any challenges you have.

Another easy step you can take is to increase your payment frequency. Divide your monthly payment by 4 and pay that amount weekly. This can help the lender see you’re serious about keeping things on time and they’ll report this to the bureaus. Do this with as many bills as you can. It not only helps you to budget more effectively, but it helps to keep payments on time and regular.

Round up your repayments to the nearest $5. There’s no point paying a bill for $98.12 when you can round it up to the nearest $5 – which would make that payment $100. That extra repayment is not going to break your budget, but it will show a lender that you’re paying more than you need to, helping to improve your score again.

If you have any credit cards with a zero balance, keep one favorite and close out the others. Reduce your available credit limits to only what you might need for emergencies. Remember – banks frown on large credit limits.

Improving Your Credit Score – Big Things

Despite those late-night infomercials telling you how easy it is to fix your credit, there are some things that just can’t be fixed easily.

Be aware that some things can’t be removed until that information is true and correct – and that can take time!

Court judgments, liens and wage garnishments remain on your credit report until you’ve amended that entire overdue balance. Even then, the information may remain on your report for some time after you’ve cleared the account.

A bankruptcy might seem like the easy way out of a situation at the time, but it takes 10 years for a bankruptcy to be removed from your credit report. If you honestly think you won’t need any credit at all for the next 10 years, then go ahead and give this avenue a shot. The truth is bankruptcy really should be a last resort only and there are other things you can do prior to taking this drastic step.

The easiest way out is to avoid bankruptcy if at all possible. Work out alternative solutions with your creditors and find a way through your credit problems. Ring and negotiate a payment plan. Then stick to that plan. It won’t be easy – but it’s a whole lot easier in the long run than a bankruptcy.

You’ll be grateful in the future when your credit is only marginally affected.

The best solution of all is to avoid credit problems in the first place. Don’t be afraid to speak to your lender and make arrangements if you think you’re going to be late with a payment.…