Posts Tagged ‘APR’

APR Is The Biggest Part Of Any Loan!

Monday, June 15th, 2009

Know what an APR is? Well, if you want to borrow money, you should!

The APR is the Annual Percentage Rate that a lending company is going to charge you, and it should be your first consideration when searching for a loan (it doesn’t matter how desperate your financial situation is currently). Spend some time finding out what the APR is going to be for the company, before asking for a loan. Also, before you accept a deal with a lending company, make sure the interest the firm is asking for is not more than normal (the fair market price). The reason for this: if you are not well informed going in, you may end up paying a much more than usual interest rate for your loan.

Also, before applying for any loan, first make sure that that the lender is credible. Yes, there are now many fraudulent loan providers out there in today’s market, especially on the Internet. You have to be pretty careful when looking for a loan from a borrower, so make sure that you’re dealing with a trusted and transparent lender before you sign any paperwork.

Always know what your APR is going to be - period!

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Cash Back Credit Cards are Great (If Used Responsibly)

Friday, April 3rd, 2009

Credit cards are the most valuable to those who know how to use them. How to use them properly: 1) by never leaving a monthly balance on the card, and 2) by making payments on time. If you can follow these two simple rules, then a cash back credit card is perfect for you.

First, choose a card type that will work to your advantage. Everyone has a certain type of credit card that they can profit from the most. For instance, a gas card will profit those the most that drive a lot of miles each month, and need to maintain a car. This is because the points that are given for your purchases can be used toward your purchases of gas. Some gas cards will even give you points for car maintenance expenses, and possibly the points may even be applied toward buying another car. A card that is selected for your greatest monthly expenses will give you the most benefits.

Also, see how much of a percentage of cash back is given toward your more ordinary purchases like food, medicine, and gas (you’ll want the highest percentage you can get). This feature is especially important if you have balances on other credit cards. You can transfer them to your new cash back credit card and enjoy a 0% APR balance for up to 15 months. This gives you great savings in interest and can help you to reduce those other credit card debts.

Of course, the best thing for you to do is to choose a cash back credit card with a low interest rate, no annual fees, or hidden charges. In addition, remember that by using it right, you also are building up a credit score — one that will allow you to buy the big-ticket items (especially if all of your credit cards aren’t currently maxed out).

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Should You Get A Second Mortgage Loan Through A Mortgage Bank?

Tuesday, March 10th, 2009

Mortgage banks are institutions, which offer loans to borrowers only against their mortgage. These mortgage banks either lend their own money or operate as brokers for lenders who are not physically present. Mortgage banks are either independent or act as parts of other corporations.

The benefits of working with a mortgage bank:

1. If you take the loan from a mortgage bank the transaction is direct and simple.
2. The speed of mortgage transaction is pretty fast.
3. The direct transaction will help you acquire clear answers to any of your questions.
4. If you are dealing with the bank in other areas the bank may offer you a better mortgage deal with lower APR.
5. Banks remain under the direct watchful eye of the Federal government and are guided by strict regulations.

The shortcomings of a mortgage bank:

1. Your choices will be limited because most banks work on some specific set programs and have fewer options.
2. The bank will thoroughly scrutinize your financial condition before deciding on entering a mortgage deal with you.

After knowing the details, it is up to you to decide whether or not a mortgage bank is right for you.

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What to Look for in a Credit Card Company

Wednesday, February 25th, 2009

Choose wisely. When selecting a credit card, you should shop around for the best deal. Compare different cards based on your own situation, and try to look for the following benefits:

• A low annual percentage rate (APR). The lower the rate, the less interest you have to pay.
• The interest calculation method. This affects how much interest you pay, even when the APR is identical.
• Low or no annual fees. If the issuer charges an annual fee, ask them to waive it.
• All other charges (i.e., late payment fees, transaction fees, over the limit fees, etc). These can really add to the total cost of your charges.
• A grace period. Some credit cards charge interest from the day that the charges appear on your account. Other cards offer a grace period for you to pay off your balance before interest charges begin to accrue.
• The credit limit. Keep your credit limit low (about $500 or less) to make sure you don’t get in over your head.
• Wide acceptance. A major credit card is convenient, and easier to manage.
• Services and features, such as cash rebates, frequent flyer miles, extended warrantees, etc. Think carefully about the true cost of these programs when you consider interest and other charges.

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