While many students hope to get a grant or scholarship that won't be paid back, these types of college funding are not available to everyone. Even if a scholarship is granted, the amount may not be sufficient to cover all expenses such as rent, tuition, supplies, and textbooks. Low interest student loans are an alternative type of college financing.
College loans are different from other types of debt. They can be deferred or paid at a latter date. The loan payment starts after graduation, and there is a grace period of 6 - 9 months. These loans are typically offered with a lower interest rate compared to credit cards, personal loans, and other types of debt. The interest adds up to the principal after graduation. At the same time, low interest is not equal to interest-free. The interest is paid together with the principal and is compounded interest. The student may owe a much larger amount of money than expected.
A good way to find about low interest loan offers is your university's financial aid office. Those who have been admitted already have higher chances of being approved. Depending on the lender, the repayment terms can be based on the borrower's earnings rather than on the amount borrowed. Surplus earnings can be kept in a high-yield deposit account rather than used to pay off the outstanding debt.
Some financial institutions offer extended terms of payment and low initial payments. Many students find these options attractive, but it is wise to abstain from borrowing under these terms. The loan will be more expensive to service in the long run because interest accumulates. Choosing an affordable payment plan is most important because late and missed payments will affect your credit score. If penalties apply, the loan will cost you more.
The Canada Student Loan Program provides affordable loans to students. The federal government provides financing while the provinces can run their own programs, thus providing additional financing. Students may also apply for a commercial loan with their bank of choice. Scotiabank, for example, offers personal lines of credit to students who can provide proof of enrollment. The Bank of Montreal also offers lines of credit to cover tuition, housing, textbooks, and other expenses. University/ postsecondary students can borrow up to $15,000 during their first year in college and up to $45,000 in total. Students pay interest on the amount they have borrowed while in college, plus one more year after graduation. Canadian citizens and landed immigrants can apply for funding if enrolled full-time for a period of 12 or more weeks.
Our loans guide, will assist you in finding more about student loans in Canada.
Monday, June 27, 2011
Wednesday, June 22, 2011
What is a bad credit mortgage
Despite having a bad credit we still require money for buying the essential commodities. In case, people intend to buy a home, they need to apply for mortgage. However, the question is whether an application of a Canadian, with bad credit history will be approved or not There was a time when you could not get a bad credit mortgage in Canada if you fell below particular percentage of credit score. If you had a bad credit score you can't expect any leniency from banks. But, as the real estate business is flourishing with leaps and bounds, bad credit holders won't find any trouble getting a mortgage now.
Poor credit mortgages are specially formulated for people who don't fit the criteria of structured loan terms, have had a bad credit history like bankruptcy or are trying to buy a property that falls out of the mortgage lenders' portfolio. The relaxation of the credits core system have made Canadian banks to reevaluate and provide chances to the bad credit scorers. There is no need to be apprehensive of applying for bad credit mortgages. There are even chances that you get mortgage, however; the interest charges in this situation will be relatively more. It will, nevertheless be in your favor since the loan provider will be more than happy to lend you loan, despite seeing your poor credit score and you also will get a stimulus to pay off your loan earlier.
To secure your loan you will need to consider factors that the lender will already be looking for in your application.
● The loan provider would like to know about your credit record, unpaid or defaulted accounts etc.
● Your monetary standing according to your pay and reserves. The banks would see if you are employed or self-employed to know whether you will be able to payback your loan effectively. In case you are an employer of an illustrious institution, your chances of getting a loan approved is much greater.
● If you ever have been charged of bankruptcy, the lender will evaluate this as well.
● Any order to pay alimony (child support) in case of divorce.
● Family size is also an assessment factor. Since you need to allocate a decent amount of money to cater to your family needs as well, the lender wants to know how extensive your needs are.
● Your debt-to-income ratio will then be observed, lending will be done mostly when the ratio is below a certain CAP. The journal payments must not surpass 50% of your income.
The best part about the whole discussion is that the chances of mortgage applications getting approved, depend upon every person's circumstances. Therefore, you don't need to worry and should take a chance because your dream of owning a home by getting a mortgage may come true.
Poor credit mortgages are specially formulated for people who don't fit the criteria of structured loan terms, have had a bad credit history like bankruptcy or are trying to buy a property that falls out of the mortgage lenders' portfolio. The relaxation of the credits core system have made Canadian banks to reevaluate and provide chances to the bad credit scorers. There is no need to be apprehensive of applying for bad credit mortgages. There are even chances that you get mortgage, however; the interest charges in this situation will be relatively more. It will, nevertheless be in your favor since the loan provider will be more than happy to lend you loan, despite seeing your poor credit score and you also will get a stimulus to pay off your loan earlier.
To secure your loan you will need to consider factors that the lender will already be looking for in your application.
● The loan provider would like to know about your credit record, unpaid or defaulted accounts etc.
● Your monetary standing according to your pay and reserves. The banks would see if you are employed or self-employed to know whether you will be able to payback your loan effectively. In case you are an employer of an illustrious institution, your chances of getting a loan approved is much greater.
● If you ever have been charged of bankruptcy, the lender will evaluate this as well.
● Any order to pay alimony (child support) in case of divorce.
● Family size is also an assessment factor. Since you need to allocate a decent amount of money to cater to your family needs as well, the lender wants to know how extensive your needs are.
● Your debt-to-income ratio will then be observed, lending will be done mostly when the ratio is below a certain CAP. The journal payments must not surpass 50% of your income.
The best part about the whole discussion is that the chances of mortgage applications getting approved, depend upon every person's circumstances. Therefore, you don't need to worry and should take a chance because your dream of owning a home by getting a mortgage may come true.
Wednesday, June 8, 2011
Tips To Use Your Credit Card Smart
Cardholders who want to use their credit cards smart should consider their spending habits, lifestyle, and the purchases charged to the card. For instance, low interest credit cards are recommended to those who carry a balance as to avoid paying high interest charges. Cardholders who travel often may opt for an airline credit card and earn rewards points or frequent flyer miles. Persons who drive frequently can opt for a gas credit card as to benefit from the rebates that go with them, thus saving on fuel.
It is not recommended to carry a balance if you have a high interest credit card because you will pay more in interest. One strategy is to use the balance transfer options offered by various credit card issuers. Some credit cards come with up to ninety interest-free days. Some cards are also featured with very low introductory interest rates in the range 0 - 1.99 percent. Making a balance transfer to such a card is also a good option if you have a high interest credit card.
If you have a rewards cards should redeem the collected points before the expiration date. Interestingly, the majority of cardholders never redeem their rewards points. You may want to check how much points you have accumulated and ask the bank's customers service about the options to redeem them.
It is very important to learn your PIN number and never carry it with you. If you carry the card and PIN number in your purse and it is stolen or lost, someone can take advantage of your credit card. In that case, you should call your issuer immediately.
It is not a good idea to withdraw cash from your card. The card issuer will charge a high fee for that and in some cases, a minimum charge applies regardless of the amount. You can use your debit card or carry some cash with you as to avoid making cash advances.
It is best to pay the full amount each month rather than carry a balance. If you don't have enough money, you may pay the minimum amount, but you should try to pay the balance in full, if possible. Remember that banks charge late payment fees if you miss the payment date. On top of that, your credit rating is likely to suffer. Your application for a car loan, mortgage, or personal loan may be rejected later on. Banks and other crediting institutions favor trustworthy clients who pay on time over those who are unable to manage their personal finances. Finally, don't use multiple credit cards as you may lose track of your spending.
It is not recommended to carry a balance if you have a high interest credit card because you will pay more in interest. One strategy is to use the balance transfer options offered by various credit card issuers. Some credit cards come with up to ninety interest-free days. Some cards are also featured with very low introductory interest rates in the range 0 - 1.99 percent. Making a balance transfer to such a card is also a good option if you have a high interest credit card.
If you have a rewards cards should redeem the collected points before the expiration date. Interestingly, the majority of cardholders never redeem their rewards points. You may want to check how much points you have accumulated and ask the bank's customers service about the options to redeem them.
It is very important to learn your PIN number and never carry it with you. If you carry the card and PIN number in your purse and it is stolen or lost, someone can take advantage of your credit card. In that case, you should call your issuer immediately.
It is not a good idea to withdraw cash from your card. The card issuer will charge a high fee for that and in some cases, a minimum charge applies regardless of the amount. You can use your debit card or carry some cash with you as to avoid making cash advances.
It is best to pay the full amount each month rather than carry a balance. If you don't have enough money, you may pay the minimum amount, but you should try to pay the balance in full, if possible. Remember that banks charge late payment fees if you miss the payment date. On top of that, your credit rating is likely to suffer. Your application for a car loan, mortgage, or personal loan may be rejected later on. Banks and other crediting institutions favor trustworthy clients who pay on time over those who are unable to manage their personal finances. Finally, don't use multiple credit cards as you may lose track of your spending.
Wednesday, June 1, 2011
Car Loans - Quick Overview
It seems cars have become a necessity now and without one, a person feels socially isolated. People would have no qualms with spending hordes of money on petrol instead of saving it all and opting for other means of transport like buses or bikes. Seeing this rising need in the demands for cars, the auto industry began bringing out fabulously designed vehicles, just to attract more customers. Every new model that comes in the official showroom has a higher tag than the previous one. This leads to excessive taking on auto loans. People with average income need to have car loans to afford a car in the short run.
Fortunately, today there are many ways to get car loans; few means are: borrowing from an authorized auto loan center, from a bank offering its auto loan services or from private lenders. Bear in mind, in all cases, that auto loans are a bit complicated than other common loans.
If you borrow from banks or registered institutes, you have to meet their criteria and eligibility demands. If you have a default loan or a history that shows bad credit, then you may not be eligible for a car loan. To top it off, you also need to get insurance quotes over the car you buy, as in Canada, it is compulsory for every motorist to have insurance backup.
It is suggested that you do your homework properly before applying for a car loan. Know well, if you can afford a luxurious car, as more luxurious a car is, the higher is the insurance rate and the loan interest. You should also know if you have the ability to handle loan plus insurance rates at the same time.
Apart from it, you have to consider from whom you want to obtain the car financing. If the bank or private institute is not suitable for you, then a private lender or a car dealer would have to be your choice. A private lender however should be one who is trustworthy. Most private lenders put a high interest rates for customers who are clueless about market rates and you can avoid this by doing your homework beforehand. You should investigate if market rates are similar to your charges and whether they are likely to fluctuate in the near future or not. Finally, compare the interest t rates of companies, individuals and car dealers to get a better idea.
Always look for ways to pay back the loan as soon as you get it; the quicker you pay it the lower your interest rate will be. It is ofcourse worth noting that a car's perceived value in the market decreases within 6 months and if you would take years to repay the loans you would still be in potential loss. Think wisely, choose wisely and pay wisely!
Interested in bad credit car loans, find what you are looking for at loans in Canada.
Fortunately, today there are many ways to get car loans; few means are: borrowing from an authorized auto loan center, from a bank offering its auto loan services or from private lenders. Bear in mind, in all cases, that auto loans are a bit complicated than other common loans.
If you borrow from banks or registered institutes, you have to meet their criteria and eligibility demands. If you have a default loan or a history that shows bad credit, then you may not be eligible for a car loan. To top it off, you also need to get insurance quotes over the car you buy, as in Canada, it is compulsory for every motorist to have insurance backup.
It is suggested that you do your homework properly before applying for a car loan. Know well, if you can afford a luxurious car, as more luxurious a car is, the higher is the insurance rate and the loan interest. You should also know if you have the ability to handle loan plus insurance rates at the same time.
Apart from it, you have to consider from whom you want to obtain the car financing. If the bank or private institute is not suitable for you, then a private lender or a car dealer would have to be your choice. A private lender however should be one who is trustworthy. Most private lenders put a high interest rates for customers who are clueless about market rates and you can avoid this by doing your homework beforehand. You should investigate if market rates are similar to your charges and whether they are likely to fluctuate in the near future or not. Finally, compare the interest t rates of companies, individuals and car dealers to get a better idea.
Always look for ways to pay back the loan as soon as you get it; the quicker you pay it the lower your interest rate will be. It is ofcourse worth noting that a car's perceived value in the market decreases within 6 months and if you would take years to repay the loans you would still be in potential loss. Think wisely, choose wisely and pay wisely!
Interested in bad credit car loans, find what you are looking for at loans in Canada.
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