Some of the Biggest Mistakes When Looking For a Motorcycle Loan

The Essentials in deciding On Motorcycle Loan.

Sometimes the necessity or excitement of owning a motorcycle cast a bad spell on our buying decisions, especially when the purchase form is a loan. So, before making that impulsive mistake only to regret later consider these essential factors when deciding to apply for a motorcycle loan.

Interest Rates:

The moment you think of a loan, the interest rate coupled with it should ring a bell. Most often attract interest rates over shadow the risk factors involved. Always begin with good amount of research and comparison of interest rates. You do not want the burden of high interest rates steal the joy of riding your new bike!

Smart negotiation:

When you are about to make a purchase decision, do not merely focus on the form of payment and negotiate on how you intend to go about it. A smart negotiation effort would include, negotiating on the payment. Payment always precedes the payment method!

Loan Inclusions:

Discuss with the lender all the accessories that the loan is inclusive off. You do not want to pay additional bills besides paying off your loan. The wiser discussion and decision would be to know about the inclusions and the exclusions of the loan you have applied for.

Loan security:

Always consider what is at stake should you face difficulty in paying off your loan. Some lenders hold the purchased motorcycle as the security, failing to pay will mean ceasing your bike. Some other lenders may consider other collaterals as security. Unsecured loan plans are other alternatives but comes with a high cost of increased interest rates. So, your loan security should be well thought through deliberate decisions considering all the risks involved. You do not want to risk something in vain!

Loan penalties:

Pause before you sign your loan agreement. Although knowing the details of the penalties tailed to your loan amount can be cumbersome and you want to skip through it, it may not be the best of your decision. At best, avoid signing loan agreements that come with stringent penalties. A decision in time, saves you from a future disaster!

Easy loan termination:

Most lenders allow early clearance of your loan and some do not. It is best for you to verify the termination policies before you sign that loan agreement. You do not want to pay with interest rates, while you own the money to clear a credit.

Owning a motorcycle is useful as well as exciting, but what is more important is sustaining both while using it. Using the right loan tailored to your needs is worth every effort.

A Financial Boon Of The 21st Century: Credit Card

The 21st century is wildly known as the technological era. We are in the second decade of the century but the changes and growth in technology is mesmerizing. It has touched nearly every other field in the world and has made concrete changes in their development. The technological advancements in the financial sector have made many financial tasks easy and accessible. Though the technology of online banking and transactions were introduced in 1990s, 2000′s witnessed the drastic increase in the usage of this technology worldwide. In the same way, credit cards were introduced in the late 1950s but their usage increased as the world saw more technological advancements in the field. People were very skeptical in the usage of these cards and they were mainly used for international travels and to buy heavy expensive goods. But as banks started offering extra security measures and additional benefits on their usage from the beginning of the 21st century, more and more people are using this type of plastic money.

Credit cards are now considered as a boon. Their easy availability and hassle free use are changing its status from luxury to necessity. One can use them online or in person, in any part of the world. They have succeeded to bring the world closer and accessible in financial terms. Banks around the globe offer various types of credit cards as per their customers’ needs, financial background and credit report. Borrowers have to provide minimum documentation to get a credit card and these cards are approved as quickly as within a day.

Banks offer credit to its customers to purchase or to pay for their desired products. It’s like borrowing money from bank to pay for goods and paying it later in one go or by monthly installments i.e. EMIs. Banks charge minimum interest rate and processing fees on these cards. Some banks also charge card renovation fees every year. By having a credit card, you can pay for goods and services even if you don’t have enough funds in your bank account at the time of transaction. You just pay the total billing amount later when you have funds. If you pay your card bills on time, it will increase your credit score drastically, which will eventually help you in future if you decide to take a bigger loan. Timely payment of credit card bills showcase your ability to pay off your debts on time and it works as a major trust factor in borrowing heavy sums of loan from a bank.

As mentioned earlier, banks offer different types of credit cards as per the financial profile of the borrower. Banks decide the credit limit on your card by analyzing your financial history, credit report, current financial obligations, employment status and ability to pay off the future credit debt. The credit limit is basically a number of amounts which is regarded as the spending limit. Each card has its amount limit for expenditure and the borrower is not supposed to exceed that amount. The credit limit changes as per the usage of the card. These cards also come with a large structure of reward points, discounts and cash back etc. Various e-commerce websites, restaurants, shopping outlets and salons get into agreements with leading banks to offer discounts and reward points to their customers upon purchasing goods or services from them. This helps them to increase their business and customers by offering them discounts.

All the banks which offer credit cards to its customers have come up with comprehensive security systems to protect the account information of their card users. These card comes with a special magnetic chip on its back, which protects the secret numeric information of the card holder. Also, if one uses such a card to purchase goods and services, the money isn’t deducted from their account quickly. This way if someone misuses your card, you can inform the bank to block the card and would not have to pay for the wrongful transactions done on the card.

Having a credit card is a responsibility along with being a luxury and necessity. Though these cards are easy to use, one should always be careful not to misuse it. You should always pay your card bills on time to avoid late payment charges levied by banks. Also, you should always maintain your credit utilization ratio. That means you should not exceed your credit limit on the card. Also, you should not keep it unused. Not using your given credit can also prove to be harmful for your credit report. Credit cards can be used to withdraw cash from ATMs just like debit cards. But banks charge transaction fees of ATM withdrawals done on these cards. So unless it’s really necessary, you should avoid withdrawing cash from ATMs using these cards. Many people fear that having a credit card may turn them into a shopaholic. But you have to control yourself to avoid spending more than you will be able to pay back. You should avoid going on unnecessary and uncalled for shopping sprees.

Credit cards come with many benefits like reward points, cash back offer and discounts. You should use these benefits, neatly. Know where you can use these benefits and how it will prove profitable to you. Do not forget to check your monthly credit card bill. This will help your to keep a track of your expenditure. It will also help you with your monthly financial planning.

7 Things to Consider When Applying for a Payday Loan

If you are going through tough circumstances, payday loans may sound a tempting option to you. But if you are not an experienced person, we suggest that you consider this option after a lot of thinking. Since these loans feature a very high interest rate, they shouldn’t be taken unless you have no other option. Below are 7 tips that may help you make an informed decision.

Financial charges

The amount of loan you will get is a lot lower than what is written on the check. The reason is that finance charges are deducted from the amount, so you will need to write a check plus these charges. Not doing so will result in a higher rate of financial charges that you will have to pay. Most people get into even bigger trouble when they fail to pay the principal amount along with interest. So, make sure you know how much you are getting and how much you will need to pay back down the road.

Paying back

If you don’t have enough funds in your account to pay back the loan, you may try other options. For instance, you may renew the loan amount or consider taking out another payday loan. But keep in mind that this new loan will have its own financial charges and extra fees. And the extra fees are actually incur because of late payment of the amount of loan.

State Regulations

In each state, regulations are different for payday loans. Usually, the term limit is not more than 30 days. The problem is that lenders often issue loans that feature a longer term limit. In this case, you are at the lender’s mercy, which is a situation you may not be willing to go through.

Cash crunches

As said earlier, the purpose of a payday loan is to deal with a temporary financial crisis, and we have to pay back the loan as soon as we are out of the financial trouble to avoid high interest and fees.

So, it is not a good idea to be tempted by the “roll over” trend or you may have to pay a huge sum at the end.

Financial position

Usually, these loans are for borrowers with lower incomes as they can’t afford to borrow from other sources. Here, it is important to keep in mind that lenders don’t usually take into account the financial position of those who are applying for the loan. So, you have to think harder before opting for this option.

Automatic rollover

You need to be aware that there are some loan sites that tend to rollover the loan amount automatically. And then there are sites that have some contractual agreements that state that you, the borrower, do not have any right to file for bankruptcy or file a lawsuit against the lender.

Approval

A great characteristic of payday loans is that they are easy to get, meaning the approval process is quite easier than other types of loans. So, most borrowers find them quite tempting, but you should be careful and only opt for this option if you have no other choice left.

You may say that opting for a payday loan is a good idea to deal with a temporary financial crisis, but a hasty decision may get you in a bigger trouble. If you don’t be careful enough, you may end up in a vicious circle of debt. Therefore, it’s better to pay back the loan as soon as you get your hands on some extra cash. Hopefully, keeping these tips in mind, you will take this decision.