11 Things You Should Know About Title Loans

Title loans are a cash advance known as a quick-cash loan or a bad-credit loan. It gets its name from the speed of fund delivery and the fact that people with bad credit can qualify for it. If you are considering taking out a title loan, take the time to review some of the most common questions and answers regarding this type of advance.

Title Loans

1. What is a Title Loan?

A title loan is a cash advance that is based on the value of your automobile. In order to receive this type of advance, you must be the vehicle owner and have the title to such vehicle in your hand.

2. How Old Must One Be to Apply for a Title Loan?

You must be at least 18 years of age to apply for a title loan. The lender will require you to sign a legal contract. Minors may not sign legal contracts.

3. Can a Person With Bad Credit Get a Title Loan?

A person with a bad credit score or history may be eligible to receive a title loan. Title loan lenders do not perform credit checks. They base their decision on your ability to make payment.

4. Can I Pay For a Title Loan With my Unemployment Check?

You may make payment for your title loans by whatever means necessary. However, unemployed individuals will not qualify for a title loan. You must have earned income from an employer who you have been employed with for a significant amount of time. The title loan company will verify your place of employment and length of time worked there. They may also ask you to provide a list of references. They will call every one of those references.

5. What if my Car is Financed?

You will not qualify for a title loan if there are any lines on the vehicle. The automobile must belong to you and the title must be available for the lender to attach a lien.

6. How do I apply for a Title Loan?

To apply for a title loan, you will need to go into the lender’s office personally. You must take your vehicle with you. Someone will come out and inspect it to make sure it is in good mechanical condition. They will record the mileage and the value of the car.

7. How Much Can I borrow?

The amount you can borrow depends on the current value of your vehicle. The lender will make an offer to you based on your vehicle’s value. If you are not happy with the loan offer, you have the option to refuse such an agreement.

8. When Will I have to Pay it Back?

Title loans are generally due within 30 days of the loan disbursement.

9. Will They Repossess my car if I do not pay?

You will have an opportunity to ask the lender for an extension on the loan. They have the option to work with you or refuse. If you do not make payment on time, they may repossess your vehicle. A repossession on your credit report can be damaging.

10. How Much is the APR?

The APR for a title loan can be as high as 250%. You may want to review other quick cash options, as this one may be a bit risky with your vehicle as collateral.

11. How Long Does the Process Take?

If you have all of the necessary paperwork and your references answer their phones, you could have the money in your hands in an hour. The time it takes to complete the process varies according to speed of business and such.

How Annuities Can Offer The Best Frugal Living Tips?

Standard of living of the people is getting enhanced day by day. This is what prohibits the individuals to save a percentage of their income for a wise lifestyle. Saving is one of the most important aspects of everyone’s life, irrespective of his or her social status. You may be a farmer or a business tycoon, but you cannot deny the fact that saving money for future use is very essential. It is quite fine if you don’t save for your present because you are young enough work hard and make money whenever you need, but think about your old age. This will be the time when your ability to do physical work or take mental work pressure would deteriorate to a considerable extent. That will be the time when you might regret of not saving money in the past. To live with dignity, frugal living tips should be followed.

Frugal Living Tips
Retirement brings with it many worries, among which financial concerns are the most prominent ones. This is the stage where the schemes of annuity come into focus. With the help of these financial plans, the retirees get a chance to save wisely for a longer term and thereby subject themselves to receive a significant income at regular intervals after retirement. When it comes to saving money for later stages, annuity becomes one of the best plans for the individuals. Through the enrollment into the plan, the individuals get an opportunity to save a particular percentage of their income throughout their service life. When they retire, however, the same turns out to be the significant source of finance for them.  

Frugal living tips and annuity, having the same purpose, can definitely be combined to make the retirees aware of the benefits of the schemes for convenient living during the retirement years. Some of the features of the retirement annuity plans offering frugal living tips to senior citizens include :

* Within the annuity contract, the individuals are allowed to add life insurance and coverage for disability. This provides security to the advanced years of the people.

* For the self-employed individuals, these benefits are best as they also enjoy the same facilities that are offered to the employed people enrolled into the group retirement fund. .

* Retirement savings are never hampered with your change of jobs.

* It is hardly susceptible to the ups and downs in the financial market. Thus, one of the best frugal living tips would be to avail the annuity benefits to the maximum.

What you save for years of your service life becomes the source of finance with which you buy the best annuity plan. As frugal living tips related to annuities, however, you can follow the points below:

* When you retire, withdraw a third of the investment that you make.

* The remaining part of the money should be used to buy an annuity scheme that would offer you a monthly income in the form of your pension till your last breath.

* There are several retirement annuity schemes that are available around. However, following the frugal living tips will convince you to shop properly to crack the best deals for getting utmost benefits out of them.

Internet has become one of the most efficient tools that can help you to know the list of insurance companies that offer these annuity schemes. Searching online will make it sure that you come across the most competitive deals that are available in the financial market in recent times. If you are serious about following the frugal living tips, it is essential to be very careful and wise while searching for the most beneficial schemes.

How to Avoid Getting into Credit Card Debt

It's very easy to end up with an abundance of credit card debt, especially with credit card issuers constantly sending out advertising in email and postal mail. Most people who have had to ask a third party to "fix my credit" will attest to the fact that they were drawn in by these ads. In fact, there was a period of time when many credit card issuers were soliciting college students, offering them lines of credit sometimes without the approval of their parents who were paying the bills. While the intention was to teach the young people responsible spending, the reality was these students were vulnerable and often did not think far enough ahead to realize they would have to pay the money back.

Credit Card Debt
Desperate times require desperate measures and many people in the current economic downturn are asking professionals to tell them "how to fix my credit," and their problems are mainly because of credit card debt. Certainly some people overdo it and buy a home or car they really can't afford, but they (usually) somehow manage to make good on those loans. Most people have a different idea about credit card debt; it's unsecured, so it tends to go to the bottom of the list. Just because you went out and spent $500 on your credit card to buy a new television doesn't mean the credit car company is going to come and repossess it if you don't pay. On the other hand, if you don't make that car payment, the bank is going to come looking for the car.

Is there a way people an afford getting into credit card debt? There are several things people can do to properly manage their debt and not have to contract a credit repair services agency.

• Carefully choose the credit card offers you accept

• Minimize your credit card spending

• Limit yourself to no more than 3-4 cards

• Develop the habit of paying credit card balances in full each month except for major purchases

• Never use your credit cards for daily expenses

Making the right choice in credit card usage will definitely help you avoid credit card debt, but not everyone has that self-control. Stores have sales and people think they just "have to have" those things. They may never use that item, but it was on sale and they "saved money." Credit repair companies are bombarded with clients who really don't know how to avoid credit card debt because the fell for that offer of 0% interest for the first year but overlooked the 22.9% interest after that. Then there are the offers of "low" $15 a month payments that balloon to $25 or more when you charge up to your credit line. These are the types of thing that get people into credit card debt they can't manage: they just don't read all of the fine print. Perhaps it is because they don't take the time or because no one taught them the importance of reading contracts and disclosure statements before agreeing to anything.

Settlement with Credit Card Companies

As more people face layoffs, pay cuts and just the increased expenses of every day living, they are also facing problems making their credit card payments. For many the first thought is bankruptcy but new laws enacted several years ago make that choice impossible for many people, especially those with good jobs and the means to pay. This leaves them with two options: contract with one of the credit card companies or work directly with the creditors.

Credit Card Companies
The question a debtor must first ask himself is, "What am I willing to do in order to fix my credit?" The answer to the question will provide the information a person needs to make the right decision. While working directly with the creditor is a good place to begin, there are several reasons you may want to choose to contact one of the credit repair services companies.

• Many creditors will not even discuss a settlement until your account is at least in the pre-charge off stage

• Prior to the pre-charge off stage creditors usually have specific guidelines they follow that do not usually include settlements but might include an interest rate reduction and/or payment restructuring

• Creditors are less likely to negotiate with debtors especially if they feel the debtor has the ability to pay.

Although credit repair companies charge a fee for their services, they are more likely to obtain a settlement with which the debtor can be happy. Not only that, but they are experienced in negotiations and have the time necessary to work with lenders until they can reach a satisfactory agreement. Quite often debtors become intimidated by their creditors and believe the option they offer is the only one available. When they say, "Tell me how to fix my credit," and the creditor gives them only one option, they have no way of knowing other possibilities are available.

How do you make the decision whether you should negotiate a settlement with your creditor or contract with an outside agency? The answer to that question is an individual one based on individual circumstances. If your account is already charged off, your account is more than likely in the hands of a collection agency. This means they are probably more open to accepting settlements than the primary creditor—sometimes as much as 70 percent off the balance.

For most people there is the need to work with credit repair companies because there is more than one creditor involved, and the need exists to resolve rather substantial credit issues. It is much easier and less time-consuming to work with a credit repair services agency instead of having to contact each individual creditor. Working with an agency will also allow you the opportunity to make one payment each month; the agency will distribute those funds to the individual creditors.

For many people this will solve much of their problem—at least those who defaulted on loans because they lost track of payments and when they were due. Make the decision that is right for you but do it with an open mind and after some careful research.

A guide to effectively ‘fix and flip’ your property investment

Property investment is all about research, if you wish to come out the other end with a decent profit you must be familiar with the ins-and-outs of the process. There are several way to successfully invest in property, one of the most popular is known to the investment community as ‘house flipping’. This involves purchasing a property that is in need of repairs, renovating to raise the market value and then on-selling for a profit.

property investment
Flipping isn’t as straight forward as it seems, and the process is more difficult than it was just 5 years ago due to the recent economy storms.that said, flipping property can still be an effective strategy, but you must make sure you target only the most appropriate and/or attractive properties on which to execute this strategy. So to avoid getting into financial trouble, read the following guide to effective ‘fix and flip’ property investments.

Choosing The Property

When you start looking at properties be sure to take a clipboard to make any important notes about issues you may forget once you have returned home. Take note of everything from house size, layout, finishing, damage and landscape. This way you can gauge an estimation of renovations and forecast the financial side of the investment.

Note if the house has any unusual or odd characteristics. Occasionally there are homes that have poor layouts, for example avoid living areas that don’t receive sufficient sunlight and rooms that can only be reached via another room. These functionality issues occur commonly amongst older homes and today's buyers will take notice as it’s an expensive job to fix. Just as important is the outside structure, look for any extensions that seem to stick out in a way that disrupts the flow of the original structure. If you find any of the above issues, it’s best to keep looking to avoid costly repairs and restructuring.

This doesn't rule out buying a ‘unique’ home - quite the opposite actually! Even if the house is beautiful, you want it to have some unique characteristics that make it stand out from the rest on the street.

Location is one of the biggest considerations when it comes to property investment. Start your search in safe suburban zones. Besides the safety of your property while it sits untenanted, homes in high-crime areas sell for marginal profit and are difficult to get rid of. The worst house in the best street is the way to go - providing the home is structurally sound. Avoid investing in property that sits in busy industrial areas or behind freeways, these areas have a lower market value and can prove difficult to sell. Most will be used as rental or business properties, narrowing the market for resale. Properties that are close to local amenities like shops, doctors and schools reach a large target market.

This brings me to the next major point, target market - what is it? Ideally an investor will want to target starter homes as opposed to, say, 6 bedroom high-end properties. The reason is that you’ll have far more prospective buyers on a starter home compared to something more upscale. The more potential buyers you have interested, the quicker you will sell and make a profit!

Once an investor has found a property that ticks all the boxes, the next step is to have the home inspected. The land and house structure needs to be sound as repairs on this scale will leave you out of pocket with a property investment that has cost you money. Ensure you receive a written evaluation from the inspector to use if anything goes wrong down the track.

The idea of house flipping is to purchase a property that needs minor and quick renovations such as; new bench tops, carpet, paint and landscaping. If the property is purchased cheap enough, new kitchens and bathrooms make a real difference for on-sale too. Use reputable tradesmen for the major jobs and do the small things yourself, this will save money while still ensuring a professional job. Choose neutral, trendy colors and avoid buying expensive fittings.

Once the property has been landscaped and renovated it’s time to get it back on the market, try to do this during a market high if you can. Entrust the help of a good real estate agent, they will get the property advertised and prospective buyers looking immediately. Decide on a price that is slightly above the amount you are wanting so you have room to accept lower offers. All that is left to do now is wait for the buyer to seal the deal!

To sum it up, the best fix and flip properties are those that require simple renovations to achieve the maximum increase in market value - as well as buying for a large target market. By focusing on starter homes in good areas that are not economically obsolete, you can dramatically increase your odds of success. Happy buying!

How could Lenders Cut Costs on Home Loans?

A housing industry slump could effectively bring down home prices. If the property market is weak, it could be the best time to buy. A buyer’s market could even be a very ideal time to apply for and obtain home loans. When interest rates are so low, who could resist the urge to purchase a new house? However, anyone could easily be held back by the rising costs that come with home loans.

Costs on Home Loans
The closing costs make up most of such home loan expenses. Lenders normally charge fees for all services that are required for processing and completing mortgage applications. Unfortunately, such costs are usually passed on to consumers/borrowers.

There could be many other services that could possibly raise home loan closing costs. Thus, such fees may account for a combined 3% to 7% of overall home loan amount. If you would obtain a $400,000 home loan, be prepared to pay between $12,000 and $28,000.

If you are not comfortable with how huge the amount is, you could use your resourcefulness. It is possible to ask your lender to cut its home loan costs. It would help if you would be aware of such options. Here are two ways you could push your loan provider to do so.

Check and challenge each fee

It would be alright if you would check every fee that comes as part of your closing costs. You could actually challenge the inclusion of some if not most of those. Those fees could be fixed or variable. Fixed costs cover services rendered by third parties (like attorney, appraisal, and title fees).

Variable fees usually include credit check and application fees. The good thing about such charges is that those could be possibly lowered or even waived. Get into negotiations with your loan provider. Tell the representatives of the many other alternative options you could take. You could be surprised at how much lenders could be willing to let go just to sign you up.

Make the home seller shoulder the costs

Home sellers could easily agree that it is very difficult to actually sell a house. Sellers may become already desperate to dispose their properties. Some may voluntarily offer to shoulder the home loan costs just to entice potential buyers. In several cases, you may have to push them to do so.

Remind your home seller that shouldering the home loan costs could be an irresistible incentive that would surely convince you to make the purchase immediately. Always ask the seller to include closing costs as part of the home sale. You could be surprised at how sellers could end up being flexible.

If these two ideas do not work, get back to negotiations with your lender. If it is still not willing to lower or waive the home loan costs, it might be the best time to scout the market for many other lenders that would be more than willing to do so. Do not worry because amid the intense competition in the home lending market, there surely would be loan providers that would be more desperate to accommodate you and agree to lower or eliminate those costs.

Personal Financial Planning Even When Money Is Tight

When money is tight it's hard to think about having a plan. In fact, the plan is often how to survive until the next paycheck comes. But there are steps you can take to make life easier both in the short term and the long term. You don't need to hire an expert to help you (although it's not a bad idea), you just need to follow a few simple steps :

1) You need to have an emergency fund. 

This is the first step for anyone - you need to get into the habit of saving money, no matter how hard it is. Even if you can put away $25 or $50 a month, that's a start. You can easily set up a savings account online or through your local bank. Don't worry about the low interest rates, you just need to build up enough money so you use it if your home or car gets damaged, you have an injury, or your refrigerator calls it quits. Not only will you have some extra money when needed, but you will get used to the idea of saving money.

2) You need to be putting away some money for the future

Sure, this might be a bit harder. But after you get a few thousand dollars in your emergency fund, you need to start thinking long term. If your employer offers a retirement plan at work, make use of it. Sometimes they'll even match some of your contribution, so its like getting free money. If you don't have one, set up an IRA at your local bank. Time is your biggest friend when saving money, so the earlier you get started, the more you will save - BUT it is never too late to get started!

3) You need to be reducing your debt as much as possible 

Personal Financial Planning
There are lots of ways to reduce your debt. You've probably heard of most of them - debt consolidation, debt settlement, debt snowball. But the most effective method of all? Stop using your credit cards! Until you do this, the rest won't work. Once you stop using them, you can either try reducing your own debt by using low interest credit cards and balance transfers, or setting up your own plan using the snowball method (paying as much as possible towards the debt with the smallest balance then once that's paid off adding that amount to the next one, and so on). If you can't do it yourself, contact a debt relief or credit counseling company. Make sure to check out the company's Better Business Bureau report and reading the agreement carefully BEFORE you sign up.

4) You need to be protecting your credit 

The easiest way to do that is to pay on time and keep your debt down. But you should also check your credit report periodically to make sure it is accurate, and you don't have any "mystery" accounts on there that you didn't open. You can get a free copy, with no strings attached, at annualcreditreport.com - forget the free credit reports you see on TV, those all require that you sign up for a monthly service.

5) You need to make sure you are protected properly 

I know, nobody wants to spend any more money than necessary on insurance. But it is an important part of any financial plan. If you own a home, homeowners insurance is a must (and if you have a mortgage it is required). But even if you rent, it is worthwhile to have, to protect your belongings in case of disaster. And it really isn't that expensive. And if you are the primary breadwinner, life insurance is a good idea too, so that if anything happens to you, your family will be able to survive financially. So call your local agent and discuss your options.

6) You need to find balance in your life

For some people, this is the hardest one of all. Unless you are rich, or at least very comfortable, then money can cause lots of stress. And it is very easy to get caught up in the stress, or the need to work extra jobs, and forget about the good things in life. At the very least, take some time to relax, do fun things even if it just means going out for ice cream and a movie once a month. Just make sure to do something fun on a regular basis so you don't spend all your time focusing on money!

I know, this isn't easy. And you may not be able to do all 6 at the same time. But if you work at it, you can build a nice financial life for yourself and your family.

How Debt Negotiation Works

If you're in the process of negotiating your debt, there are certain legal proceedings that you should be aware of. Collectors and creditors may threaten to sue you in an effort to scare you into paying your debt, but there are legal steps that they have to take in order to collect any money. Law firms have to notify you that they will be handling your account. Law firms also have to inform you that you have 30 days to dispute the debt claim if you deem it to be money that you don't owe. While the claim is being investigated, all efforts to collect on the debt are put on hiatus. Firms also have to notify you of the debt collector they are working with, and whatever information you give them will only be used in an attempt to collect your debt. Out-of-state law firms may not file a lawsuit against you. If a law firm is licensed to work in multiple states, they may have those states listed on the letterhead of the first letter you receive. Law firms are obligated to alert debtors either with a service processor or a letter if the debtor is to appear in court. 

Debt Negotiation
The letter or processor will also contain what's known as a Complaint. A Complaint contains relevant information such as the sum owed and the reason you are being summoned to court. In most cases, you'll have up to 20 days to file an Answer the debt claim notification. An Answer is simply a formal reply that contains a defense. If an Answer is not received, the debt collector has the right to a ruling stating that they are legally entitled to the full amount of the unpaid debt. Filing an Answer is usually in the debtor's best interest because it will afford them more time to either gather the necessary funds or makes some kind of arrangement with their debt collector, such as a debt reduction. If a creditor wins the claim, they are then allowed to make plans to collect on the debt.

They can collect by taking the money from the debtor's paychecks, through a bank account or they may choose to posses the debtor's automobile or house. While it can be frustrating dealing with law firms and debt collectors, it can be even more so if you aren't aware of your rights and the proper procedure for collecting debt. Do your research and become aware of all options that you can take against debt collectors and the options that they can take against you.

The Credit Score Politics and the Expected Alterations

To Explain More….

Suppose a lender rejects the request of a credit applicant and if the decision is based on the credit bureau report of the applicant, the lender has to inform the consumer that the decision is ruled by the Law of Equal Credit Opportunity Act (BEAC) and Fair Credit Reporting Act (FCRA).

Credit Score Politics
Communication is to be made with mention of the lender's details like address and name, description of the exact adverse actions as well as the particular reasons for taking those adverse actions along with the ECOA notice. It even includes :

• A statement proclaiming that the credit information had been used for taking an adverse action

• The telephone number and address of the credit-report firm

• A statement that the applicant/consumer is entitled to receive a copy of his/her credit report and the right to question/disagree on the accuracy of the data report

• A proclamation that credit bureau is not responsible and is unable to provide an explanation or reason for the said credit decision.

Presently, it is not mandatory upon the lender to disclose credit scores in the notification of the negative action. It will probably change this year.

There has been an amendment to the FCRA by the Dodd-Frank Act. Accordingly, the lender has to offer these information to the consumer:

• The credit score made use of for undertaking the adverse step

• Variety of probable scores with the model

• The reasons that led to a low credit score would be ranked according to order of importance

• The credit-reporting agency name that gave the credit score

• The date of creation of the credit score

The new regulations would probably assist consumers in getting an in-depth analysis of why their credit scores have been low and would help them to work towards improvement of the same. Washington has witnessed a flurry of activities in the recent times with regard to proposing, reviewing, and adopting rules for greater access to consumers to their credit scores - particularly those scores which lenders use during setting loan conditions and on the basis of which, they take a decision to grant or refuse a consumer credit application.

Overall, this is certainly positive news, as consumers will have more transparency in the process of credit assessment, and access to the current credit rating of the lender. They will have a clear-cut understanding of why their credit application has been accepted or refused.

As with every regulation, the rules and details are being decided upon. Additionally, you can get confused with such rules of various government agencies and proposed standards, as proved by the reporting requirements of proposed credit scores that were released a few days back by the FTC and the Federal Reserve. The proposed regulations are related to the credit score disclosure in the adverse action context and notification of price-based risks.

How will the Consumers be Affected by the Regulations

On rejection, the creditor will inform you – the consumer, and submit an explanation/reason of why you were rejected for the loan application or service. You will also get access to a complimentary credit report copy from the specific credit-reporting agency the lenders referred to.