Big Question – Can A Credit Union Help Build Or Rebuild Your Credit?

The most important way of upgrading or reconstructing your credit is establishing a new credit history. And, an excellent place to go for assistance is a Credit Union because they live by the philosophy of “People Helping People”. They are dedicated to their local communities and focus on improving the quality of life for their members.

They offer financial tools designed to reconstruct blemished credit scores. Credit Unions understand that having “less than perfect” credit makes it difficult to obtain a loan; so they want to help guide their members with get back on track” loan programs. Here are some ways that some credit unions nurture your finances back to health:

Loyalty Loan Programs: These loans will help with immediate needs and also help rebuild your credit. These loans reward the members with on-time payments with a lower interest rate and loan payment over the life of the loan.

• Ability to borrow with an unhealthy credit score

• Flexible qualifying guidelines

• Incentives to lower your loan interest rate and monthly payment

• Improves your overall credit rating and credit score

Credit Builder Loans: These loans are usually made by Credit Unions to help members build or rebuild their scores. This type of loan is approved for a small amount, normally not much more than $1,000. Instead of the member getting the loan amount like they would with a conventional loan, the money is placed into an interest-bearing account. The member makes payments monthly, and after a year or two, the loan is paid off and the money, plus interest is given to the member.

• No qualifications necessary, except a reliable source of income.

• Usually a 12-month term

• Member’s repayment behaviors are reported to the credit bureau

Free Credit Counseling: Many Credit Unions offer free financial counseling. Members that take advantage of this program eventually see increases in their scores which helps create a more financially healthy member.

Repair your credit with a secured credit card: A secured credit card can be a creditworthy tool for people with less than perfect histories. Most of the time, a savings account is used as collateral for the secured card. Secured credit cards are the first step for members who can’t qualify for a regular unsecured credit card. Just be aware that most credit unions don’t promote their unsecured card options, so make sure you ask.

The quickest way to build up a satisfactory score is to borrow and pay back the loan on time. It isn’t difficult, it just takes some discipline. Locate a Credit Union near you and check out what options they have to offer. Rebuilding or establishing new credit is easier with a Credit Union so start constructing a healthier credit history today!

Smart Way To Choose A Factoring Company

The success of any business relies on cash flow. As your business grows, you will find a need to speed up cash flow and this could mean getting some sort of financing. Banks have for the longest time being the saviors for most businesses, but the may not always fully accommodate the financial needs of your company. Account receivable factoring is the better alternative for your business financing. With the help of a factoring company, you will be able to obtain the capital that you need for the business.

Factoring is invoice financing that concentrates more on the business growth rather that cash flow challenge. The creditworthiness of the clients you have is what the factoring professionals focus on. By establishing solid payment history with your customers, factoring companies pay up front for invoice amounts. At a small factoring fee, you will receive the balance when the client has fully settled the invoice. There are so many advantages of factoring but to enjoy them you must start by choosing the best factoring company to work with.

Tip 1 – Think about service. The factoring company should offer professional friendly service. You should not only get guidance in setting up a process, but you should also have all your questions answered so you are able to make a good decision.

Tip 2 – Check out the terms of the service. The terms you get from your factoring company should actually be tailored to meet your specific needs. Make sure you are aware of contract length, fees, notice period and concentration among other important factoring elements. The least you can do is to make sure that you are most comfortable with the terms of service.

Tip 3 – Understand the factoring services and products the company has for you. They may vary from one factor to another. Depending on the company that you settle for you could get bad credit protection, funding options, credit control, dedicated client manager, customer credit checks and online account management. Find out what services and products your company has to offer and how important they are to your business and the process to make a good decision. It is best that you make comparisons between the best factoring companies before making a final decision so you choose the best one for you.

Tip 4 – Think about concentration. It is very important to remember that there are factoring companies that restrict the funding level they provide against your customers. Before signing the agreement, therefore always check to confirm that your customers will be able to access appropriate funding levels as needed.

Tip 5 – Check out the factoring fees. Most companies charge a monthly fee depending the funding option that you settle for. In most cases the percentage will be determined by the invoices that have been submitted for funding during that month. Some may have a monthly minimum and this is an option that may not work for you if you run a business that goes with seasonal patterns.

This Are Best Solutions for Those With Poor Credit

Those searching for a personal loan for poor credit have a few options to explore. Three of the most popular are credit cards, home equity loans and personal loans for poor credit. The obtained monies can be used for many reasons to include purchasing jewelry or upgrading a business. The type that’s best will depend on the intentions for use and personal financial state.

Here’s a bit about each type to help anyone make an informed decision when they decide to pursue a personal loan for poor credit.

Personal Loans

One can get a personal loan from most banks. As stated before, they can be used for most anything and are based on the ability to present proof of income as well as assets. Those assets have to bet worth the amount the person is borrowing. It’s a quick process for application when these things are present and accounted for and the applicant will find out within a few days tops if they are approved.

The main downfall is that interest rates are typically high around an average of 12%. The time limit for repayment varies but they’re usually no more than two years. Due to this, any very large amounts are not recommended to be financed this way as many have trouble paying them back in two years.

Credit Cards

Credit cards are another option when consumers are searching for a type of personal loan for poor credit. They are the same thing as securing a loan as they are also repaid later. The cards are easy to use because they are widely accepted for payment on most everything.

They are simple to apply for and can be upwards of $10,000. The application is reviewed fast, usually no more than two weeks. There are also those that are reviewed over the phone and approved in only minutes. It all depends on the card company. Terms vary greatly, so it’s important for whomever is applying to really look over all the fine print.

Within this print, there will be many things to take note of. At the top of the list are interest rate, yearly fees, overage fees and more. It’s been proven that debts pile up more quickly using credit cards than other types of loans because they are so available and easy to swipe at any retailer. For someone looking to a personal loan for bad credit, this may be an unwise decision and end up hurting credit not repair it.

Home Equity Line

The home equity line of credit is a smart decision. It allows homeowners the ability to borrow against the value of their home. It’s easy to figure how much someone can get. All they have to do is take the home’s market value against what is still owed on it. Many choose to not do this if they are planning on selling in the near future. However, if they are planning on staying there for the long haul it’s a great option.

Like other personal loans for poor credit the money can be utilized for whatever they please. Often they’re used for home improvements, consolidating debt and so much more. The interest rates are low to average and can be repaid over the course of up to 20 years in some circumstances. There aren’t many downsides to a home equity loan of credit; in some cases the interest is a tax deduction. That’s hard to beat!

The main negative to this type of personal loan for poor credit is that the person taking it on can sometimes get in a worse situation in regards to their mortgage. If there are two sources of income and they are well above the bills being paid each month the individual can probably repay the loan with ease. Otherwise, it may not be of any benefit. Especially of the consumer ends up losing a job or suddenly is unable to work. Plus, rates sometimes fluctuate.