credit score

What are Qualifications for a Business Loan?

February 15, 2016 By Kash Martinez 1 Comment

There are basically three reasons why companies want to get a business loan. First, they want to start a business, but they do not have enough capital to pursue the plan. Second, they do not have any capital at all to start building the business that they want. Lastly, they already put up a business but it is on the verge of bankruptcy.

Business loans are specifically designed to help these types of companies. A business loan is a company’s debt which needs to be repaid in accordance to the loan’s conditions. Experts highly recommend that companies, who plan to get business loans, should have a full understanding of how loans work before approaching a lender. Having a full grasp of the loan’s terms and conditions will prevent unnecessary complications.

Why do companies resort to business loan?

Most companies want to find every possible way to expand their business operations. In order for them to do that, they need more people, facilities, equipments, etc. The only thing that may be stopping them to do all these things is their budget. If so, they will see this as the perfect time to consider getting a loan. Getting a loan seems like a wise plan; the company gets to expand the business without compromising the money intended for the other business’ operation.

Are there requirements and qualifications for a business loan?

If a company have been in the business for quite some time now, then they are already aware that there are certain requirements before successfully getting a business loan. These requirements are set to ensure the lender that the company is capable of returning the money with the agreed interest. Listed below are the said qualifications.

Good credit and business background: This is probably the first thing lenders check when a company applies for a loan. They will check the company’s credit record for security reasons. The company’s attitude towards debt is evaluated and deemed as a reflection of the business itself. This is particularly difficult for small businesses that just started because they still have a weak credit background.Aside from the credit record, they will also check the business. What kind of business does the company have? Is there a great chance for the business to flourish? Lenders see the loan as their own investment. The more potential the business has, the more chances for the loan to be grant.
Reliable Plan: As mentioned earlier, lenders lend huge amount of money to companies in order to gain profit. They are like investors; they do not invest in something if they do not have more than 50% assurance that they can get their money back with the interest. Before approaching a lender, make sure to create a solid business plan presentation. It is crucial to research and study the different facets of the business first to impress the lenders. Don’t give them the wrong impressions. Make them think that not giving the loan is a big loss in their part.
Experience: Because business background is one of the primary requirements, the experience and expertise of the businessman in the field is also considered. Lenders will definitely doubt those companies who have not been in the field long enough to know the twists and turns of the business.

The qualifications for a business loan may change over time, but it is wise to know the fundamental requirements and qualifications beforehand. A business loan is an opportunity for the company to expand their business, and is also beneficial for the lenders. A loan is a good business transaction could give both the lender and the company a win-win result.

Photo: Flickr: Simon Cunningham

About the Author: Kash Martinez understands the intrinsic attributes of making excellent content that suits the needs of every business especially when it comes online financing. She can conceptualize and implement marketing plans, explores profitable B2B opportunities and then absorb Loan services. You can Visit Us for more information.

Mint: An All-in-One Finance App

December 8, 2015 By Amanda Blankenship 2 Comments

There seems to be an app for (just about) everything. Whether it is shopping, managing your finances, transferring money or managing your stocks, there’s an app for it! One app that seems to be underutilized by the general population is Mint.

Mint is an all-in-one kind of app for your smartphone, and you can also visit their website to use their services. You can monitor your spending, budget, bank account, pay your bills and check your credit score all through the same company/service. That seems way better than downloading 100 different apps on your phone just for finance. It also makes seeing all of your bills (in one place) easier.

Personalize your account on Mint

Mint offers personalization for each account. You can create a budget that makes sense for you today and will help you save for tomorrow. The app will also allow you to take a look at your credit card debt up against your bills and your monthly income. Mint will give you a weekly amount of bills due (and which ones are due).

The app also allows you to receive free notifications if there is something strange going on with one of your accounts. For example, if there is an unusual account charge, the Mint app will alert you to it. You can also get customized tips from the app on how to reduce these fees and save money.

Getting your credit score through Mint is a great idea as well. You can receive your score free of charge, and the app will provide you with advice on how to better it. For example, if the app sees your credit score is 650 and the reason is that you have an outstanding balance on your credit card, it will recommend paying the card down. If you decide to take the advice, it will adjust your budget accordingly.

Mint’s App

The app will work for you wherever you go. It is a versatile app that will create a budget that works, and you will be able to see (and manage) your money wherever you go. The app is available on both Apple and Android products. You can also manage your account on desktop or laptop devices as well. On it you will be able to:

View and manage you budget and money
Make adjustments to your money
See all of your bills in one place
Check your credit score
Receive advice

Is it secure?

Starting a Mint account is simple (and free). If you should need help while setting up an account (or during the time you have one), there is always help available through the Mint customer service line.

When it comes to the security of your information, Mint takes it very seriously. “We’re obsessive about security and protect your data with the same 128-bit encryption and physical security that banks use,” the company’s website reads. Mint services come from the makers of TurboTax and Quicken, both of which are trusted by millions of people each year with sensitive data.

With nationally-trusted security, expert advice, free credit checks, budgeting, money management services and bill payments available through Mint, it makes you wonder why you haven’t opened an account with the company sooner. Opening an account is absolutely free, so don’t wait much longer! You can make managing your money easier now.

Millennials are Apathetic About Finance

November 15, 2015 By Amanda Blankenship 3 Comments

Millennials are facing some of the greatest challenges when it comes to personal finance and credit. The generation, although they are saving a great deal, they are not able to get their credit scores higher, nor are they able to really stabilize their finances.

Experian recently announced a survey of more than 1,000 millennials ages 19-34. They surveyed the group about a variety of personal finance topics. Questions ranged from information about their future views, to loan status, to credit knowledge, to use of technology.

How do millennials feel about finance?

Results from the survey showed that Millennials have conflicted feelings about their personal finances. Many of the people surveyed said that they are uncertain about the future of their finances but they lean toward optimism.

Another surprising number from the survey showed a general lack of knowledge about credit amongst millennials or feelings of apathy toward it. A vast majority of the generation have had their credit impacted in some way (positively or negatively) by credit scores, meaning the millennials are being turned down for leases and loans because their scores are so low.

The survey also showed that millennials are quick to try new technology, but they are quick to try new things instead of staying loyal to one company or product.

“Millennials are coming of financial age at a very unique time,” said Guy Abramo, President, Experian Consumer Services. “They’ve experienced a recession and the explosive advancement of personal technology. As a result, they’ve developed different views toward managing money, using credit and how they expect financial services to be delivered. The survey also showed that millennials will abandon loyalty for better products and services, which is something the entire financial services sector should consider; the pressure is on to keep innovating.”

However, the push to continue innovating may be having an impact on the generation’s reality. The generation is rather bad at realizing what their actual financial stance is. The estimate their credit score almost 30 points higher than it is in reality (654 [est.], 623 [actual]). Millennials also estimate there debt to be just higher than $26,000 when in actuality many of them are $52,000 in debt.

The innovative generation

The majority of millennials are using financial mobile apps to manage finances. Many of them have at least three apps on their phones to manage their finances.

Thirty-nine percent of millennials are familiar with non-bank lenders and 13 percent have already used that kind of service. Almost half of millennials surveyed said they would likely use one of those lenders in the future.

Being so innovative and willing to try new things prevents the generation from using traditional services to meet their needs. Loyalty to a specific brand is tough to sell to millennials. About 46 percent of them look for new companies to better suit their needs and 75 percent of the generation said they would switch accounts if it better suited them.

The verdict

After Experian conducted the survey, there are some clear facts surrounding the millennial generation. Many of them have a deficit of knowledge about credit. Many of them do not know their credit score and may even feel apathetic about the score.

The generation seems to have a bit of youthful angst when it comes to settling down with one company, especially if the company isn’t extremely innovative. It seems millennials will be facing the problems that come with new technology and ideas, but they will be facing many of the same old challenges other generations faced.

Credit Karma Targets Consumers with No Credit Score

May 5, 2015 By Jeffrey Strain 2 Comments

Credit Karma ffers information to those with no credit score

There are about 15 million people who don’t have a credit score, and Credit Karma wants them to visit their site as well. Although it may seem somewhat ironic that a website which made its name by giving people free credit scores without having to hand over their credit card number would now want to help people who don’t have a credit score at all, the reality is it makes a lot of sense. Credit Karma has expanded their services to also give out two types of free credit reports and with this expansion, it makes more sense that they would want to help consumers who have what the industry calls “thin files” — those people who don’t have a credit score because there isn’t enough credit history and information to calculate a score.

If someone didn’t have enough information in their file to create a credit score in the past, those trying to use the site would be informed of this, and told they would receive an email when there was enough information for them to have a credit score. That is no longer the case. Those who sign up with Credit Karma will be shown their current credit report even if there isn’t enough information in it to produce a credit score. In addition, they will get information explaining why they currently don’t have a credit score, along with steps they can take to begin creating a credit history to get a credit score.

Credit Karma obviously sees this as an excellent opportunity to beef up their bottom line. Consumers who don’t have a credit history can be quite lucrative to a company like Credit Karma, since it can be easier to convert them on offers the site provides. This means the site can recommend credit cards and other types of loans which can help to build credit, which is how they make money. This gives Credit Karma more opportunities to get consumers to adopt products because thin file consumers don’t have to be convinced to switch from a product they already have.

Credit Karma isn’t the only one who understands that thin file consumers need more access to a score. FICO has a new credit score aimed at those potential borrowers who have thin files by taking into account bill payments that aren’t normally used for credit scores such as mobile phone, cable TV, Internet, and utility payments. The FICO Expansion Score takes into account your bill paying history to form a credit risk score.

For those who don’t have enough information in their credit history to currently warrant a traditional credit score, understanding why they don’t can be an important step toward making a decision of whether it’s worth it for them to get one. Since there are a lot of compelling reasons to have a good credit score rather than none at all, including it allows you to save a lot of money,

The Best Way to Manage Your Finances

December 22, 2014 By Lori Kelley Leave a Comment

We are often tempted to look at the various aspects of our financial lives in isolation, but taking a holistic approach is much more effective. Instead of looking at your credit score, family budget and retirement savings in isolation, consider how everything fits together to create a financial whole.

If you want to save more money and get out of debt, your credit score is an excellent place to start. Your credit score provides a kind of snapshot – a look at how you are doing and what lenders see when they look at your file. If your credit score is among the highest, that is a good indication that your financial life is under control. If your score is on the low end of the spectrum, you may need to reevaluate what you are doing and look for ways to improve your financial life.

A good place to start is a company that specializes in providing accurate credit scores to real consumers. A site like the Top 10 Credit Report website allows you to compare features of the top credit report providers, so you can find the service that best meets your needs. You also have access to reviews, so you can see how others like the service before you sign up.

Knowing your current score gives you a place to start and a goal to shoot for. Your credit score is important, but it is also part of a larger overall picture. To improve your credit score, you will need to look at your relationship with money, from how you earn it to how you spend it.

One of the most effective ways to improve your finances is to pay yourself first and make saving money a priority. If your checkbook is nearly empty at the end of the month, turn things around and fund your savings account first. You will be forced to live on what is left, and that will force you to make smarter spending choices.

Paying yourself first pays off in a number of ways. Perhaps most importantly, it forces you to live on less than you make. Whether you send 1% of your pay to the emergency fund or 10% to your retirement fund, you are forced to make do with what remains of your paycheck. You might think you do not have a penny to spare, but you will probably find that is not true.

The pay-yourself-first strategy is also a great way to build for the future, something you may have had trouble doing. If you have a 401(k) plan at work, you can start with as little as 1% of your paycheck. Since the money comes out on a pre-tax basis, the hit to your take-home pay may be less than you feared. As you get more comfortable with the process, you can ramp up your investments and save even more.

At first glance, you might not think that the pay-yourself-first strategy would have much of an influence on your credit score, but you might be pleasantly surprised. Implementing such a strategy is an excellent way to instill financial discipline, and that can help you stick to your monthly budget. When you know where your money is coming from and where it is going, you will be less likely to pay your bills late or miss paying them altogether.

Since a history of on-time payments is one of the best ways to improve your credit score, getting a handle on your finances is sure to improve your standing. Improving your relationship with money and learning how to handle it wisely will improve all aspects of your financial life, from your ability to buy a first home to saving enough money to retire in style.

Taking a holistic approach to managing your money is not always easy, especially if your short-term goal is to raise your credit score. Some people turn to tricks and questionable tactics to raise their scores, but that will not be effective over the long run. If you truly want to improve your credit score, start with a service that compares the features and services of various credit report providers. Armed with your credit score, you can make the changes necessary to improve your finances and your relationship with money.

How Credit Karma, Credit Sesame and Quizzle Can Help You Save Money

October 27, 2014 By Lori Kelley Leave a Comment

How Credit Karma, Quizzle and Credit Sesame help save money

The fact is that many people don’t pay much attention to their credit scores. In this day and age, the ability to comprehend how your credit score can benefit or hurt you is important to learn. If you don’t have the best credit or even know what your credit score is, you can attain the needed knowledge on how to improve your credit score by visiting sites like Credit Karma, Credit Sesame and Quizzle.

Credit scores can affect your life in many aspects. Primarily, your credit score affects the qualification of whether or not you will be able to get a loan for either a car or a home, but it can have an influence in many other ways as well. Of course, getting the loan is based on other criteria as well, but if you have a poor credit score, then you can be sure you’ll have to pay a lot more in interest for a loan, if you’re even able to get one at all. You might even have to find a suitable co-signer, which may prove to be difficult.

If, on the other hand, your credit score is in good standing, then you’ll be offered better terms, such as lower interest rates from lenders. When you go to purchase a car or home, you won’t have to stress about having to spend more money just because you let your credit go downhill. In fact, because you have great credit, you will be saving money in the long run. With the lower interest rates, it will take you less time (and less money) to pay off this debt potentially saving you thousands, or even tens of thousands, of dollars.

While sites like Credit Karma, Credit Sesame and Quizzle are best known for giving their customers their credit score at no cost, this isn’t the real benefit they have for most people. Yes, knowing your credit score is important, but even more important is learning how the actions you take affect your credit score in a positive and negative way. By gaining a better understanding of how your credit score is calculated, and how the actions you take will affect it, you are in the driver’s seat in determining your future score. All these free websites help educate you to better understand your score, and what steps you need to take to make it better.

In addition, Credit Karma and sites like it offer tools to their users to see how specific actions can help or hurt their credit score. This allows you to input a number of different scenarios, and to see what happens to your score with each. It also allows you to see results even before you take an action so you can make better decisions before the act. This can help you avoid making a financial move that could hurt your score and ultimately cost you more money.

By helping you better understand about how credit scores work and how the actions you take can effect them, the free credit sites help you to save money by helping you improve you credit score.