In an industry where everything is fastly becoming, and every aspect moves as quick as a snap, it becomes very important for everyone especially the Millenials, to know how things work and how to adapt on these things to make their time more efficient and relevant.
Acquiring Financial Literacy The Easy Way
One of the many things to consider and have today is financial literacy, this is a very essential part of knowledge that makes a person wiser on financial values, industry, and how to go about in saving and future investments. There was a time when people who have this are those that have finished studies already and are getting into the more “adult” part of life, but today, even a 6th grader should acquire at least the basics of the financial aspect.
In making this possible and working, technology and how it works in our everyday lives plays a huge role. Since technology can cater to everyone, and almost everybody has access to it, it is very wise to use this in our advantage in teaching ourselves regarding financial literacy like topics under bad credit business loans by FORA Financial.
With technology comes the birth of applications that cater to online banking and financing making this strenuous process easier with visual guidelines that assist beginners on how to do certain things, which can be very confusing for first-timers who will be doing it personally on physical banks. Also, e-books about finance already exist, and some are even free so getting basic knowledge and financial techniques become easier than ever.
Lastly, applications that guide and help you to do the simple saving is up on platforms, reminding you to save, teaching you how to make saving easy, and making sure that you have a long-term goal for the money you are saving up.
Are you feeling hopeless because your lender says you are not qualified for a personal loan? If you are going to stop trying when you are refused for a personal loan, don’t give up. While it may appear that all hope is lost, the truth is that there are other loan companies willing to offer you a loan.
Listed below are essential steps to follow if rejected for a traditional personal loan.
Find out the reasons why you are declined of a loan
When a lender rejects your loan application, know that the Fair Credit Reporting Act requires that the lending company inform the borrower of the reasons for the rejection through snail mail or email. The correspondence should explain the reasons why you ended up declined. Reasons for refusal may include the following:
• credit rating doesn’t match the lender’s requirements.
• credit track record is limited – Should you have lower than 3 years of credit history, it can be tough for several loan companies to give you a financial loan.
• too high debt-to-income ratio – When a good portion of your cash flow is linked with having to pay other loan products, your application to borrow money could be refused.
• late payments – If another lender reports you of late payments, lending companies may unlikely offer you a loan.
Whatever the reason you are denied a loan, the data you get could be among your best resources. You could start dealing with them prior to obtaining your future personal loan. This allows you to strengthen your weak points such as your credit history or debt-income ratio.
Subscribe to credit tracking programs
When a loan company provides a certain reason for the loan rejection, it is strongly advised to ensure there are no other problems with your credit rating or history of credit that may become worse when you are applying for a loan again. A credit monitoring program can assist you on this. They are going to browse through your credit track record from the point of view of the lender. They are going to clarify what you need to do to improve and when you can apply for the loan again.
Develop a plan
Once you know what issues you need to tackle, create a plan to determine what you need to do and how to do it. There is no precise way to do this because your plan will depend on the issues you need to address and your overall financial situation.
Knowing the condition you need to fix, plan on the actions you need make, when to do it and how to implement it. There isn’t any conclusive approach to get this done as your plan is determined by the condition you have to fix along with your general financial circumstances.
With respect to the credit concerns you are facing, it may take some considerable time to fix everything that’s off on your credit standing. So you ought not to make unrealistic targets and also have high anticipations as repairing credit is not a quick fix scheme.
Give yourself sufficient time to develop a very good credit file, monitor your credit rating on a regular basis to find out how your steps affect your rating.
Look for other alternative lending institutions
As soon as you reach the stage where you are feeling comfortable about applying for a loan again, look around for other personal loan offers to determine your chances of getting an approval. Assess the fees, discount rates, as well as other charges every single lender presents. The majority of loan companies will let you have a look at their fees, rates and soft assessment whether you qualify.
If you follow the steps above, you will improve your chances of getting approved for any personal loan, from quick cash loans to long-term loans. You’ll also increase your options of getting approved for other credit at reasonable rates, which can save you money on interest.
You will get to improve your credit standing and qualify for the next loan if you follow the tips outlined above. So if you were denied a loan today, it’s not really the end of the world. There is hope and the information you get is your tool to help you improve.
Technology is the biggest trend influencing every industry today. In the world of financing, financial technology or fintech is among the biggest evidence of this generation’s technological revolution. Financial technology is beginning to revolutionize the financial industry, the same as the impact of the Internet in almost every industry. Need Money Now is just among the Financial Technology made available to small businesses.
What is FinTech?
FinTech (Financial technology) generally refers to any business that uses contemporary software and technological know-how to apply its groundbreaking work to financial services. Contrary to general knowledge, financial technology has been in development for 65 years, leading to the continued success of the industry in financial technology. Following the establishment of credit cards in the 50s, the industry began to hold a genuine part in the financial industry, and since then, the advancement of the fintech industry has improved rather quickly.
In 2008, although financial technology played an important part in our society, the financial crisis at that time was hugely attributed to the vast and intense expansion of the industry. Since the financial crisis, a large number of Americans have become angry with the banking system, creating doubt for banks in just about any country. Distrust on banks has eventually become worse when banks stopped lending following the recession. As a result, many people in the business arena and in practically all sectors were considering alternative and private lending institutions.
As the economy has at last rebounded, consumers are however cautious about binding financial institutions. Today, the financial technology industry is more trusted as a reliable source of funds and other services due to the urgent need to seek technology alternatives.
Today, more advances in the financial technology have taken place with the introduction of bitcoins or what has been known as cryptocurrency.
Financial Technology Loan Options
FinTech Mid Prime Loans
The most recognizable form of FinTech form of financing for small businesses is medium loans or mid prime lending. The price offered by FinTech’s medium-term loans is viable with a classic bank and SBA loans, however with less of the hassle that’s commonly linked with each kind of financial loan. Online FinTech lenders do not need to contact banks and provide a wide range of personal and business financial documents, but they can easily qualify applications in a matter of minutes and can provide funding very quickly (within a few days after an application had been approved). All this can be achieved with the least amount of documents that are traditionally required by the banks.
Invoice Factoring via FinTech
Financial technology invoice financing can be described as a means for small businesses to work with their 30-90 days unpaid invoices to get funding. The factoring company forwards a small amount of the invoice to a certain percentage of the invoice value less the fees after which forwards the final figure to the borrower after the invoice is settled.
Cash Advance Via FinTech
Cash advances through Fintech are not loans. However, it is the future earnings of a company sold to FinTech lenders in return for upfront funding. These future earnings are sold at a discounted price to the funder. Lenders associated with Fintech evaluate the cash flow of a company by taking a look at bank statements which includes credit card statements. This is for them to figure out the total deposits as well as the consistency of deposits.
After the FinTech funding company determines the maximum amount that a small business can easily manage, they are going to compute the amount of money the business could get depending on the repayment structure in 4 to 21 months. Following the financing of a small business, FinTech’s prepaid cash lender will receive a repayment every business day but some will collect weekly by means of ACH through the bank account of the small business or the percentage of daily credit card processing trades accumulated every day.
SBA loans are not generally linked to financial technology, but as a result advancements in many sectors of our society, specifically the financing industry, lenders can now qualify applications for SBA loans in just minutes and fund SBA loans at the quickest possible time, approximately 7-10 business days.
Technology has streamlined the SBA loan processes which allowed business owners to obtain bank financing within a time frame in line with competitive alternative lenders and actual investors. There are many forms of Fintech SBA loans. This includes lines of credit and term loans. Fintech SBA loans can be used as working capital, purchase of real estate investments, debt consolidation, business expansion, and much more.