Car emissions – Taxis 4 Smart Cities http://taxis4smartcities.org/ Fri, 23 Sep 2022 16:00:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://taxis4smartcities.org/wp-content/uploads/2021/07/icon-2021-07-05T160153.519.png Car emissions – Taxis 4 Smart Cities http://taxis4smartcities.org/ 32 32 Money Guru: Is your loan GOOD or BAD? Experts decode https://taxis4smartcities.org/money-guru-is-your-loan-good-or-bad-experts-decode/ Fri, 23 Sep 2022 16:00:39 +0000 https://taxis4smartcities.org/money-guru-is-your-loan-good-or-bad-experts-decode/ In this edition of “Money Guru”, Zee Business delves into the conundrum around loans and their intricacies. News anchor Swati Raina talks with Col. (Retired) Sanjeev Govila, Managing Director of Hum Fauji Initiatives and Viral Bhatt, Founder of Money Mantra to understand which loans could be considered good and which are bad. What should be […]]]>

In this edition of “Money Guru”, Zee Business delves into the conundrum around loans and their intricacies. News anchor Swati Raina talks with Col. (Retired) Sanjeev Govila, Managing Director of Hum Fauji Initiatives and Viral Bhatt, Founder of Money Mantra to understand which loans could be considered good and which are bad.

What should be kept in mind when considering taking out a loan?

What are the disadvantages of not repaying the loan on time?

What is the difference between a good and a bad loan?

Is your loan good or bad?

What is a good loan?

A loan is good if it increases your net worth.

It is able to create net worth over time

He should be able to create an additional asset

The return should exceed the interest on it

What are good loans?

– Study loan

– Commercial loan

– Real estate loan

Which loans are considered bad debts?

Loans where one has to pay more than is paid as interest
When the lender and the customer face a loss
Failure to pay on time could lead to difficulty in taking out loans in the future
Bad debt interest rates are significantly high

Bad loans:

– Automatic loan

-Personal loan

– Loan on credit card

– Consumable loan

Understand this before taking a loan

– How much loan can be taken?

– What is the importance of taking out a loan?

– Save first, then buy

– All debts must be paid one day

– How much is the good loan?

Always keep the income to debt ratio in mind when taking out a loan

Loan debt to income ratio should not exceed 40%

Priority is given to people with a low income to debt ratio

Debt to income ratio should ideally be below 30%

Benefits of a good credit rating

Possibilities of loans with lower interest rates

People with good credit scores are likely to get a higher loan amount

Banks clear loans quickly

They also enjoy the benefits of a low repayment period

What’s your score?

– Score

Very low – less than 600

Low – 600-649

Ok – 650-699

Good – 700-749

Very good – 750-900

How is credit score messed up?

Not paying EMIs on time

The score has a negative impact on the EMI defect

Take much needed credit card loans

Higher income to debt ratio

Increase credit card limit from time to time

How to improve credit score?

The credit is calculated by CIBIL

Improving credit rating is in the hands of the consumer

Focus on reducing payment fees on credit cards

Pay IMEs on time

Avoid taking too many unsecured loans

Don’t over-apply for loans

Credit card

Impact of unreasonable expenses

This could lead to high interest rates and one could end up in a debt trap

This has a negative impact on CIBILscore

One could be liable to legal action in case of misuse and defects

This could lead to stress and have a psychological, emotional and physical impact

This could lead to long-term losses

How to use a credit card appropriately?

Only use the credit card when necessary

Never use a credit card for regular consumption needs

Pay bills on time

Check the statements from time to time

Know the terms and conditions before you start using

Do not share password or PIN with others

Make a budget before using and stick to it

Don’t stick to many credit cards

What is the loan amount?

Do not borrow more than necessary

2-3 loans are acceptable

EMI should not be more than 35% of income

Which loan to pay first?

Pay off the loan with the highest interest rate first

Personal loan, credit card loans are granted at high interest rates

Pay the credit card loan first

Interest rate on credit card loans could reach 40%

On a personal loan, the interest rate can be 20%

Interest rate and penalty on secured loan

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Indian banks see bad loans fall to 4% at decade low by end of FY24 https://taxis4smartcities.org/indian-banks-see-bad-loans-fall-to-4-at-decade-low-by-end-of-fy24/ Wed, 21 Sep 2022 07:33:00 +0000 https://taxis4smartcities.org/indian-banks-see-bad-loans-fall-to-4-at-decade-low-by-end-of-fy24/ Commuters walk past a bank sign along a road in New Delhi, India November 25, 2015. REUTERS/Anindito Mukherjee/File Photo Join now for FREE unlimited access to Reuters.com Register MUMBAI, Sept 21 (Reuters) – Indian banks are expected to see a 90 basis point drop in gross non-performing assets (NPA) to 5% in this fiscal year […]]]>

Commuters walk past a bank sign along a road in New Delhi, India November 25, 2015. REUTERS/Anindito Mukherjee/File Photo

Join now for FREE unlimited access to Reuters.com

MUMBAI, Sept 21 (Reuters) – Indian banks are expected to see a 90 basis point drop in gross non-performing assets (NPA) to 5% in this fiscal year to March and further improvement to 4% by at the end of March 2024, note the Crisil agency said on Wednesday.

The key indicator of banks’ asset quality is expected to improve, “thanks to the post-pandemic economic recovery and higher credit growth,” the agency said in a statement.

Loans (INLOAN=ECI) from Indian banks jumped 15.5% in the two weeks to August 26 from a year earlier, while deposits (INDEP=ECI) rose 9.5% , according to the latest data from the Reserve Bank of India.

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The banking sector’s asset quality will also benefit from the proposed sale of the NPAs to the National Asset Reconstruction Company Ltd (NARCL), the agency said.

“The steady improvement in corporate asset quality is clearly reflected in leading indicators such as the credit quality of bank exposures,” said Krishnan Sitaraman, direct and deputy head of ratings at Crisil Ratings.

A study of large bank exposures, constituting more than half of corporate advances, showed that the share of high-security exposures rose from 59% in March 2017 to 77% in March 2022, while those to quality corporates lower than over halved to 7% from 17%, Crisil noted.

The improvement in asset quality in the corporate segment follows a major cleaning up of the banking books in recent years and a strengthening of risk management and underwriting.

Meanwhile, the retail segment has remained resilient and gross NPAs are expected to remain in the 1.8-2.0% range over the medium term, Crisil pointed out.

“While the impact of rising interest rates and inflationary pressures on the cash flows of individual borrowers will need to be monitored, nearly half of retail loans are home loans, where borrowers have different profiles. relatively better credit,” he said.

“Over the medium term, to avoid a repeat of past asset quality problems, it is important that banks do not relax their credit underwriting standards while focusing on faster growth,” he added. .

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Reporting by Swati Bhat; Editing by Dhanya Ann Thoppil

Our standards: The Thomson Reuters Trust Principles.

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The Dark and Secret World of New Zealand Credit Scoring https://taxis4smartcities.org/the-dark-and-secret-world-of-new-zealand-credit-scoring/ Sat, 17 Sep 2022 17:00:00 +0000 https://taxis4smartcities.org/the-dark-and-secret-world-of-new-zealand-credit-scoring/ Rob Stock is a Stuff business journalist specializing in money and consumer issues. ANALYSIS: In July, I met a woman who had recently come out of an abusive relationship. This meeting launched me on a frustrated and disappointing journey to understand how the zero to 1000 credit scores assigned to each of us actually worked. […]]]>

Rob Stock is a Stuff business journalist specializing in money and consumer issues.

ANALYSIS: In July, I met a woman who had recently come out of an abusive relationship.

This meeting launched me on a frustrated and disappointing journey to understand how the zero to 1000 credit scores assigned to each of us actually worked.

After the relationship ended, a loan company sued her for the entirety of a car loan her former partner had used to buy a car.

Charity Good Shepherd managed to persuade Aotea Finance to split the loan and only sue her for half, but it destroyed her credit rating.

READ MORE:
* Lessons on debt from a young woman who drowned in debt
* Loans program for low income people helps beat loan sharks
* BNZ clients get refund due to errors in loan documents

Banks, including the Bank of New Zealand, are canceling some loans taken out by victims of domestic violence, but are reluctant to talk about it openly, fearing a series of misrepresentations.

Prior to the abusive relationship, the woman was good with money, but now had a credit score of around 200.

Credit Simple, owned by credit reporting company Illion, says your credit score shows how creditworthy you are and a good score is over 500.

good shepherd

Good Shepherd Chair Diana Crossan asks Fincap policy adviser Jake Lilley and BNZ managing director of customer care Martin King about the policy of lenders who write off debt for women forced into debt loans by abusive partners.

Those with good scores get better offers from banks, telecom operators, insurance companies and electricity companies. A bad score can make it harder to get a rental, and sometimes even a job.

And yet, this woman’s score did not reflect her ability with money, but her past abusive relationship. It would take several years of good payment behavior to repair its score.

A bank told me that when it canceled loans to victims of domestic violence, it also helped them clean up their credit reports.

For every escapee from an abusive relationship who receives this help, how many do not? This was the first of many questions that I have yet to get an answer to.

The credit reporting system is an extensive financial monitoring system.

When we register with a bank, insurer, obtain a loan or open a feeding account, we “consent” to their passing information to the three credit reporting companies: Illion, Equifax and local company Centrix.

They compile credit reports on each of us and calculate credit scores.

The system helps trade, we are told. It allows lenders to decide who to lend to and at what price. It helps power companies decide who should pay up front for their electricity.

In the United States, scholars have accused the credit reporting system of being racist, as well as entrenching poverty and privilege.

The credit score is an American invention.  It was created in the 1980s and hailed as enabling more people to qualify for loans.  Critics say the system is unfair and entrenches poverty, especially among ethnic minorities.

PA

The credit score is an American invention. It was created in the 1980s and hailed as enabling more people to qualify for loans. Critics say the system is unfair and entrenches poverty, especially among ethnic minorities.

That’s because, like the abuse victim I met, people with lower credit scores find life harder and more expensive.

In New Zealand, studies of the sector do not seem to have been done, including whether the system is biased and whether it is used for legitimate purposes.

A senior property manager told me that after two decades in the business, he felt the scores had no predictive value for whether tenants would pay their rent on time.

A credit score and credit information is only useful if it has predictive value.

After meeting the abused woman, I had a second credit score shock when I applied for a $15,000 loan from Latitude for a story verifying the lender’s advertisement that it offered loans “from 8 .99%”.

I had a credit score of 984 out of 1000 on my Credit Simple credit report, yet I was offered a 20.99% loan.

Latitude said there was an error in the information given to it by Equifax.

Equifax gave me a credit score of 832.

I still had two questions: how can I have two scores out of 1000 so different, and how often do people get offered overpriced credit because of mistakes?

I checked my score at Centrix. It was 866.

What explains the differences?

Centrix chief executive Keith McLaughlin said part of the variation was due to not all credit reporting companies having the same information.

Centrix chief executive Keith McLaughlin says a low credit score makes someone's life harder because it means more expensive credit.

Abigail Dougherty / Stuff

Centrix chief executive Keith McLaughlin says a low credit score makes someone’s life harder because it means more expensive credit.

“We have a lot more comprehensive data in our systems than others,” McLaughlin said.

“It allows us to be much more precise and much more precise.”

Could this mean that the cost of a loan could partly be based on the choice of credit bureau by lenders? How would that be fair?

If my three credit scores accurately reflect my creditworthiness, then my three scores of 832, 985, and 866 should all represent the same risk of me defaulting on a loan.

I can’t tell you if that’s the case because while the three credit reporting companies provide analytical reports to their customers (like banks, power companies) they don’t share them with the public. .

I asked for help understanding the scores, but foreign companies Illion and Equifax refused my requests, prompting this reaction from McLaughlin: “I’m quite surprised, because credit scores are very important in the life.”

Centrix was more open. Its credit ratings represent the risk that a person will default on their payment obligations over the next 12 months, if the trends of the past 12 months repeat.

If a lender gives loans to five people with a score of 559, they can expect one of the loans to have missed payments.

A score of 192 means the lender can expect only 0.17 good accounts for every bad one. A score of 781 means he should get 27 good counts for one bad.

Centrix credit scores range from zero to 1000. We all have one, and they indicate how creditworthy we are.  Source: Centrix

screenshot

Centrix credit scores range from zero to 1000. We all have one, and they indicate how creditworthy we are. Source: Centrix

My Equifax credit file contained a “relative risk” score of 19.32. His call center didn’t know what that meant.

Eventually, I received a short email from a public relations person at Equifax saying, “A relative risk of 2.5 means the candidate is 2.5 times better than the population average.”

So I’m 19.2 times less likely to default on an account than the average person?

To complicate all this, banks and property managers decide how to use the scores.

After several frustrating weeks, I have a growing list of questions about the accuracy and fairness aspects of the credit reporting system.

It works for people like me, mostly it seems, but does it let others down and entrench iniquity?

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Where to get a loan for your small business https://taxis4smartcities.org/where-to-get-a-loan-for-your-small-business/ Thu, 15 Sep 2022 13:00:29 +0000 https://taxis4smartcities.org/where-to-get-a-loan-for-your-small-business/ If you buy something through our links, we may earn money through our affiliate partners. Learn more. Need a loan for your small business but don’t know where to start? You’re not alone. Many small business owners often struggle to obtain loan funds from traditional lenders. But don’t despair, there are plenty of other financing […]]]>

If you buy something through our links, we may earn money through our affiliate partners. Learn more.

Need a loan for your small business but don’t know where to start? You’re not alone. Many small business owners often struggle to obtain loan funds from traditional lenders. But don’t despair, there are plenty of other financing options to explore. In this article, you’ll learn where to get a loan for your small business quickly and easily.



How to Choose the Best Small Business Loans

If you Google “where to get a loan” you will get many small business financing options, making it difficult to decide which is the best business term loan (or any other type of loan) to apply for.

Here are some tips to help you choose the best small business loan:

  • Know your financial health (credit score, profit and loss account, etc.) to assess where you are financially
  • Get detailed information on how small business loans work (different types of loans, interest rates, repayment terms, application fees, etc.)
  • Compare your options to finalize the three best lenders
  • Apply for a loan. Once your application is approved, carefully read the terms and conditions of the loan agreement

Small business loans generally do not charge prepayment fees. But you should always check with your lender. Even some lenders offer discounts if you repay the loan early.

Where to get a small business loan

We have prepared a list of the best business lenders to help you choose the right option for getting a business loan.

Let’s dive in:

1. Foundation

Fundera is not a lender itself, but a marketplace. Small business owners can choose from a wide range of SBA loans, business loans, and lines of credit. With Fundera, you can compare multiple small business financing options in one place.

  • Best for: SBA loans
  • Terms: up to 25 years
  • Loan amounts: up to $5 million
  • Rates: From 6%
  • Minimum Credit Score: Depends on individual lender
  • Fees: zero

The specifics above apply only to SBA loans. For details of any other loan program, visit the company’s website.

2. Small Business Administration

Small Business Administration (SBA) loans, partially guaranteed by the SBA, allow you to borrow money to meet unexpected expenses, purchase equipment, refinance debt, purchase commercial real estate, etc

To apply for an SBA loan, you will need to contact the SBA approved lender in your area.

  • Best for: All small business owners
  • Terms: up to 25 years
  • Loan amounts: up to $5.5 million
  • Rate: up to 13%, depending on the type of loan
  • Minimum credit score: depends on the lender
  • Fees: Varies

Due to low interest rates and long repayment terms, SBA loans are the most sought-after loans on the market.

3. Blue Vine

If your business experiences a shortage of working capital for a few months out of the year, a line of credit from Bluevine may be ideal for securing business financing during these difficult times.

You must have $10,000 in monthly income to apply for a line of credit.

Here are the main features of the Bluevine line of credit

  • Ideal for: Line of credit
  • Terms: 6 or 12 months
  • Loan amounts: $250,000
  • Rate: 4.8%
  • Minimum credit score: 625
  • Fees: No prepayment or prepayment fees

4. Cabbage

If you are looking for a business line of credit, Kabbage is a suitable option. You will pay monthly interest on the loan amount you use from your credit limit.

  • Best for: Line of credit with flexible payment options
  • Terms: 6 to 18 months
  • Loan amounts: between $1,000 and $150,000
  • Rate: 0.25% to 2.50% for a period of 18 months
  • Minimum credit score: 640
  • Fees: No hidden loan fees or prepayment penalties

5.Kiva

Small businesses looking for crowdfunding loans will find the right funding partner in Kiva.

The business community has so far repaid around $1.6 billion in loans.

  • Best for: Financially excluded business owners
  • Terms: 12 to 36 months
  • Loan amounts: up to $15,000
  • Rates: 0%
  • Minimum Credit Score: No information on website
  • Fees: 0%

6. Credible

Credibly is a leading financial institution providing working capital loans, merchant cash advances, long-term business loans, business lines of credit and other business owner lending solutions.

Being one of the leading online lenders, Credibly offers prepayment incentives.

Here are details about business expansion loans gathered from trusted sources:

  • Best for: Businesses looking to grow
  • Terms: 18-24 months
  • Loan amounts: up to $250,000
  • Rate: as low as 9.99%
  • Minimum Credit Score: Over 500
  • Fees: Not available

7. Domestic Funding

National Funding offers a variety of loans and financing options for small business owners, including small business loans, working capital loans, short-term business loans, equipment financing and leasing, and more .

The best thing about National Funding loans is that you can get a discount if you pay off the debt in full sooner.

Here are National Funding gear details collected from credible resources on the web:

  • Best for: Companies that can pay early
  • Terms: 2-5 years
  • Loan amounts: up to $150,000
  • Prices: From 1.10
  • Minimum credit score: 600
  • Fees: Varies

8. On the bridge

OnDeck offers different loan solutions that business owners can avail, depending on their credit history.

A term loan from OnDeck is a great option for dealing with unexpected business expenses.

Here are the key details for applying for term loans:

  • Best for: Easy Approval Loan Approval
  • Terms: Up to 24 months
  • Loan amounts: up to $250,000
  • Rate: 29.9% annual percentage rate of charge (APR)
  • Minimum credit score: 600
  • Fees: setup fee 0% to 5%

9. Quick Bridge

QuickBridge offers a wide range of loans, including small business loans, short-term loans, working capital loans, and unsecured loans.

Even if you have bad credit, you can get a loan from the company.

There isn’t much information on Quick Bridge’s website about its loan products.

The following details have been gathered from reputable online resources:

  • Best for: Working capital lending
  • Conditions: 4-24 months
  • Loan amounts: up to $500,000
  • Prices: Not available
  • Minimum credit score: 500
  • Fees: Set-up fee amount not disclosed

10. Happy Money

As a small business owner, if you want to pay off your credit card bill, a repayable loan from Happy Money may be the perfect solution.

  • Best for: Personal loans to clear credit card loans
  • Terms: 2-5 years
  • Loan amounts: up to $40,000
  • Rate: Up to 24.99% APR
  • Minimum credit score: 600
  • Fees: 0% to 5% setup fee

11. Checkout

Fundbox is known for offering a line of credit with flexible repayment terms.

In addition to this, Fundbox has recently added Fundbox Term Loan, Fundbox Flex Pay and Fundbox Plus to its portfolio.

Here are the specifics of the Fundbox line of credit loan:

  • Ideal for: Line of credit
  • Conditions: 12 weeks to 24 weeks
  • Loan amounts: up to $150,000
  • Rate: from 4.66%
  • Minimum credit score: 600
  • Fees: None

12. Lendio

As a leading marketplace for various loan products, Lendio can offer you the right commercial debt solution based on your credit history.

The company offers trade lines of credit, short-term loans, merchant cash advances, equipment financing, SBA loans and start-up business loans from partner financial institutions.

  • Best for: Start-up business owners
  • Conditions: depends on the type of loan
  • Loan amounts: depends on the type of loan
  • Prices: Not available
  • Minimum credit score: depends on the lender
  • Fees: Not available

A single Lendio loan application will allow you to reach over 75 lenders.

Small Business Loan FAQs

How much money do you need to get a loan for a business?

You might need $3,500 to $12,000 (or more) in monthly income to get a business loan. The exact amount of income varies depending on the lender and the type of loan.

In some cases, you may need to make a down payment of 5% or less to get a loan.

Is it hard to get small business loans?

With a poor personal credit history and no proof of stable income, it can be difficult to get a traditional business loan.

However, many alternative small business lenders can offer you a business loan by reviewing your business plan, cash flow statement, profit and loss statement, and a few other documents.

What are the easiest loans to get?

Small business microloans are the easiest to obtain.

To get a small business microloan, you may need to submit your small business loan application, business and personal credit profile, financial statements, and a few other documents, depending on the lender.

What are other ways to finance a small business?

Some alternative ways to fund a small business are business credit cards, small business grants, crowdfunding, venture capital, personal business loans, merchant advances, and loans from friends or family members. family.

What to do if you are denied a small business loan?

You usually have six months from the date your application was declined to reapply for a traditional bank loan.

If small business lenders have also declined your application for a commercial term loan, you can explore other financing options, such as accounts receivable financing or invoice factoring.

Conclusion

Now you know where to get a small business loan if you have been denied a traditional business loan due to a lack of personal assets/business assets for collateral or an excellent credit history.

Most small business loans offered by the lenders mentioned above do not require a personal guarantee. And you’ll have a flexible way to pay interest in weekly or monthly installments, depending on the lender and the type of loan you apply for.

Get the best small business loan that complements your business operation and start growing your business.

Image: Envato Elements


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myFICO: how to create a loan | New https://taxis4smartcities.org/myfico-how-to-create-a-loan-new/ Tue, 13 Sep 2022 16:34:33 +0000 https://taxis4smartcities.org/myfico-how-to-create-a-loan-new/ SAN JOSE, Calif.–(BUSINESS WIRE)–Sept. 13, 2022– Whether you are looking for a mortgage, taking out a loan or renting a new apartment, you should know how essential it is to have a good credit rating. For many people, building credit starts with timely payment of a student loan or credit card. However, to qualify for […]]]>

SAN JOSE, Calif.–(BUSINESS WIRE)–Sept. 13, 2022–

Whether you are looking for a mortgage, taking out a loan or renting a new apartment, you should know how essential it is to have a good credit rating. For many people, building credit starts with timely payment of a student loan or credit card. However, to qualify for a credit card or loan, you often need to have a good credit history. This creates a difficult “chicken and egg” scenario where you need credit to build credit.

In this article, myFICO gives you the information you need to build your credit from scratch:

First, we’ll look at what goes into your credit and your FICO® score. Next, we’ll give you some ways to build credit from scratch.

For more information on loans and credit, visit myFICO’s credit resources: https://www.myfico.com/credit-education/

What factors affect your credit rating?

The industry standard credit score is the FICO® score, used by 90% of major lenders to make decisions about credit approvals, terms and interest rates. Although the criteria for other credit scores vary, your FICO scores are calculated based on five categories of information gathered entirely from your credit report. Each category represents a percentage of your FICO score. These categories include:

  • Payment history (35%) How you paid your bills in the past
  • Amounts owed (30%) How much of your available credit you are using
  • Length of credit history (15%) How long your credit accounts have been established
  • Composition of credit (10%) Types of credit accounts used or reported, including credit cards, retail accounts, installment loans and mortgages
  • New credit (10%) How many new accounts have you recently opened and whether you have sought to assess a single loan or applied for multiple new lines of credit

How long does it take to establish a credit history?

Now that we have a better understanding of what credit is, it’s important to start thinking about how to build a credit history.

In order to receive a valid FICO® score, the credit report must have:

  • At least one account opened for six months or more
  • At least one account that has been reported to the credit bureau in the last six months
  • No indication of death on credit report (Please note that if you share an account with another person, it may affect you if the other account holder is declared deceased)

The minimum scoring criteria can be met by a single account or by multiple accounts on a credit file. So, if you are approved for new credit that is actively used and reported to the credit bureau, you should meet the minimum scoring criteria in six months.

Building credit from scratch

When you first make the decision to start building credit from scratch, it can seem paradoxically difficult to get a credit card or loan without having a credit history. However, there are several options that could help you start your credit-building journey.

Consider a credit card

Credit cards make it easy and convenient to pay for things like goods, services, bills and more. Unlike a debit card, which takes funds directly from your bank account, credit cards essentially act as an ongoing loan from the credit card issuer. When you open a new credit card account, the card issuer sets a credit limit that you can use. Available credit is the amount of money you have left on the card when you load it. Then, before the due date, you simply reimburse the credit card company for what you spent.

Open your first card account with a bank or credit union

If you have an existing relationship with a bank or credit union, they probably already like your business and that relationship could help you qualify for a credit card. Other credit card companies offer cards specifically designed for new credit builders.

Start as an authorized user

Becoming an authorized user on a family member’s credit card account can be a way to start building credit from scratch. Indeed, it can allow you to enjoy the benefits of their good credit history, even if you never use their credit card. The process for this is relatively simple; the primary account holder only needs to add your name to their credit card account.

However, this method does not have such a big impact on your own credit score, nor does it offer all the privileges of being a primary account holder. To start building your own credit score, you’ll probably need your own credit card account. For many people, their first credit card is a secured card.

Consider a secured credit card

Secured credit cards are a type of credit card that requires you to put down a security deposit to open an account. Typically, this amount then becomes your credit limit, protecting the card issuer if you are unable to make your payments. However, you cannot use this money to pay your balance or make other purchases. Secured cards are often used by new card owners or those looking for credit repair because they are generally easier to obtain and are usually reported to credit bureaus as an unsecured credit card.

Unsecured cards, on the other hand, are what you might think of as a traditional “credit card”. This basically means you don’t have to pay a security deposit to be approved, however, qualification can be exclusive to a specific range of credit scores.

Loans, rents and payments from service providers

There are other options for establishing a good credit history without using credit cards.

Student loans: For many people, the first loans they receive are for college or university tuition. By repaying these installment loans at regular intervals over a pre-determined period, you can start building a credit history. Student loans are also added to your credit mix, which can improve your credit score.

Co-signed loans: If you’re having trouble getting loan approval, you can ask a loved one to co-sign. This means both parties share equal responsibility for the debt and the loan shows up on both credit reports. As long as you don’t miss any payments, this can be a great way to build up a good credit history.

Service providers: Utilities, cable, cell service, and internet all require you to sign contracts knowing that you will pay for their services each month. Many modern credit scoring systems take these payments into account when generating your credit score.

Rent payments: Sometimes landlords report your rental history to the credit bureau. Although this is not common practice, it may be worth asking your property managers if they do this or if they can get started.

How to get a good credit rating

Achieving a higher credit rating takes time, patience and financial responsibility. While you can’t get a perfect 850 overnight, you can focus on the behaviors and practices that creditors look for in a borrower. We hope this will form a habit that will help you maintain good credit over the long term. Here are some educational tips that can help you start building your credit now and in the future:

Paying your bills on time is the most important rule of thumb when it comes to building good credit. Your payment history accounts for 35% of your total credit score, so it’s best to avoid making a late payment. A few other considerations:

  • Spending well below your credit limit is considered best practice, as creditors generally view high spending as risky behavior.
  • Read the terms and conditions of each credit card before applying. Not only do you want to make sure it’s the right card for you, but you also want to know if you’ll qualify. If you apply and are turned down, the investigation may lower your credit score by a few points.
  • Maintain a healthy mix of credit cards and loans to show creditors that you have experience handling different types of debt. However, remember not to open too many lines of credit in a short time, as this can be considered risky behavior.
  • Finally, try not to close a credit account; only apply the credit cards you intend to keep and create a history with that account.

The importance of monitoring your credit score

Credit scores are an essential part of your overall financial well-being. Creditors use these scores to determine the approval of new lines of credit, interest rates and fees and even utility deposits, so a bad credit score can have lasting financial repercussions in many areas of your life. Knowing your credit score and credit history can help you better understand your current credit standing before applying for a new account. This way you know what you need to work on before applying for a loan or card.

How to check your credit report and credit score

Under the Fair Credit Reporting Act, each of the three major credit bureaus must provide consumers with a free credit report at least once a year. However, free credit reports do not include your credit score. This means you must go through an approved FICO® Score retailer, such as myFICO or Experian, to check your credit score.

About myFICO

myFICO makes it easy to understand your credit with FICO ® scores, credit reports, and 3-bureau alerts. myFICO is the consumer division of FICO – get your FICO scores from the people who do FICO scores. For more information, visit https://www.myfico.com/

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220913005213/en/

CONTACT: myFICO Contact:

Elizabeth Warren

ElizabethWarren@fico.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

KEYWORD INDUSTRY: OTHER CONSUMERS PERSONAL FINANCE CONSTRUCTION & REAL ESTATE WOMEN’S FINANCE BANKING MEN PROFESSIONAL SERVICES CONSUMERS OTHER CONSTRUCTION & REAL ESTATE

SOURCE: myFICO

Copyright BusinessWire 2022.

PUBLISHED: 09/13/2022 12:34 PM / DISK: 09/13/2022 12:34 PM

http://www.businesswire.com/news/home/20220913005213/en

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How to buy a house with bad credit | Houses https://taxis4smartcities.org/how-to-buy-a-house-with-bad-credit-houses/ Sun, 11 Sep 2022 07:30:00 +0000 https://taxis4smartcities.org/how-to-buy-a-house-with-bad-credit-houses/ Buying a home is an integral part of the “American dream,” but it’s increasingly out of reach for many hard-working adults. The real estate market has been very competitive over the past year as the supply of housing has shrunk considerably. Now, many adults have given up owning a home and expect to rent for […]]]>

Buying a home is an integral part of the “American dream,” but it’s increasingly out of reach for many hard-working adults.

The real estate market has been very competitive over the past year as the supply of housing has shrunk considerably. Now, many adults have given up owning a home and expect to rent for the rest of their lives. While most older generations will have their own home until retirement, less than half of the largest group in the workforce – Millennials – think they will have the same luxury.

Despite their pessimism, a competitive market doesn’t mean it’s impossible to own a home, even if you have bad credit.

But what is a bad credit rating?

Credit scores are generally based on the FICO scoring system, and different credit bureaus may rate scores differently. Here’s how Experian classifies them:

  • Poor: 300-579
  • Fair: 580-669
  • Good: 670-739
  • Very good: 740-799
  • Exceptional: 800-850

About a third of consumers have a poor or fair credit score. If you fall into this category, don’t give up on home ownership. Some loans are specifically for Americans with low scores.

Mortgage options

A traditional mortgage is usually a fixed rate loan, so the interest rate never changes. Although this is the type of loan people usually think of, it is only ideal for people with a credit score above 620.

In contrast, an adjustable rate mortgage (ARM) typically has a fixed interest rate for the first three to seven years, but then fluctuates with the market thereafter. ARMs are best suited for people with a credit score of 600 or higher. This difference between 600 and 620 may seem small, but it can help someone who needs it.

When market rates are lower, the interest on your loan will also be lower. The downside, however, is that if the rates are high, you’ll pay more too. You’re at the mercy of the economy — you could save money on the interest rate or lose it.

If you have a score as low as 500, you may qualify for a loan from the Federal Housing Administration (FHA). FHA loans will cover about 97% of your home’s value, so you’ll need to put down at least 3% down. and until you pay off 20% of the value of your home, you will have to pay for private mortgage insurance. This covers your lender in case you default on the loan.

Since this is a government-backed program, you will need to go to an FHA-approved lender.

Now that you know the different loan options, it’s time to take a look at the steps to get there.

Step-by-step guide to buying a home with poor credit

With so many loans and interest options, the best thing to do is talk to a professional who can review your situation and find the best path for you.

Step One: Get Your Free Credit Report

The last thing you want is to have your credit score misreported. Go to annualcreditreport.com — you can get a free copy of your credit report each year. Review all the information provided. Is your social security number correct? Are your addresses up to date? What debts and transactions cause you to lose points?

If anything seems incorrect, contact your lender. It can be something as simple as a paperwork error or as serious as identity theft. Work with your lender to obtain documentation proving the error and contact the credit reporting agency with the evidence. The Federal Trade Commission even offers a sample letter you can use to dispute any errors.

Step Two: Do ​​What You Can to Increase Your Score

Unless you’re in a rush to buy a home right away, take the time to improve your credit score as much as possible. Five factors determine your score. From most to least critical are your payment history, your outstanding debts, the length of your credit history (how long you’ve had your cards), the types of credit you’ve used, and the amount of new credit.

You can sign up for a credit monitoring service to help you track all of this. An app called SmartCredit offers a paid service and is one of the most useful options. You can also use free tools, although they are not as in-depth. One example is credit karma. It can point out the credit factors that are hurting or helping you the most, but it won’t give you detailed advice on how to fix those issues.

Step Three: Talk to a Professional

The best person to talk to is a Housing Counselor licensed by the Department of Housing and Urban Development (HUD). The government trains these advisers, in particular the Ministry of Housing and Urban Planning. Their job is to help you find affordable, quality housing. They will get to know you and your situation, so they can find local options that suit your situation.

Step Four: Register for a Workshop for Homebuyers

If you can take a course locally, it should be free. You can also do it online at your own pace. However, there will likely be a charge for this. Upon completion of the course, you will receive a certificate which you can use when applying for funding. The HUD advisor should be able to help you with this.

Fifth step: search for Fha loans

As mentioned earlier, Federal Housing Administration (FHA) loans are the best option for someone with poor credit. The loan will not come directly from the FHA but through an approved private lender. Your local HUD office should be able to find the best option in your area. Make sure you have enough funds to cover the down payment and mortgage insurance costs.

Step Six: Try to get pre-approved

Like any other mortgage, you can get pre-approved for an FHA loan. Pre-approval can help you save time and narrow your search when looking for a home. Like a licensed advisor, this will help you understand what you can and can’t afford so you can look within your price range.

Getting a pre-approved mortgage also makes you a much more attractive buyer to whoever is selling the home. It’s a great boost, especially in a competitive market like the one we know today. Once approved, do not spend money on furniture or other expensive items. Banks will monitor your activity, so be sure to stick to your budget.

Keep three main goals in mind as you go through your house hunting journey: save for a down payment, track your credit, and work with a professional.

This allows you to find a mortgage option that suits you despite your low credit score.

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How to Use a Personal Loan to Pay Off Debt https://taxis4smartcities.org/how-to-use-a-personal-loan-to-pay-off-debt/ Fri, 09 Sep 2022 19:29:27 +0000 https://taxis4smartcities.org/how-to-use-a-personal-loan-to-pay-off-debt/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Debt consolidation can save you money and […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Debt consolidation can save you money and help you pay off your debts faster. Learn how to use a personal loan to pay off debt. (Shutterstock)

Uncontrollable debt can strain your budget and leave you with little money after paying your monthly bills. If you manage multiple balances, a personal loan can be a valuable tool to help pay off your debt.

Consolidating high-interest debt with a personal loan can help you save money on interest and simplify your finances since you only have one payment to follow. Understand how personal loans can help you decide if it’s a good idea to use one to consolidate your debt.

Credible, it’s easy to view your prequalified personal loan rates from various lenders, all in one place.

What is debt consolidation?

Debt consolidation consolidates several debts into a single personal loan or credit card. Depending on your credit, you could pay less interest and lower your monthly payments while making it easier to manage your debt.

Generally, a debt consolidation loan is an installment loan with a fixed interest rate and a monthly payment. Most personal loans are unsecured, so you won’t have to provide collateral. Your eligibility will depend on your credit history, income, and debt-to-equity ratio, among other factors.

How to Use a Personal Loan to Pay Off Debt

To save money, you should only consider taking out a personal loan if the interest rate is lower than the rates on your existing debts.

You can take out a personal loan through a bank, credit union or online lender. When you apply to an online lender, they streamline the loan process so you can receive funds quickly, often the same or next business day. Loan amounts vary by lender, but generally range from $1,000 to $100,000.

When you apply for a personal loan, the lender may ask you to specify what you plan to do with the loan funds. Most lenders allow you to use a personal loan to consolidate your debts, but it is essential that you understand the terms of the loan, as some lenders may restrict how you can use the money.

If the lender approves your personal loan, financing is usually done in two ways if you are using the loan for debt consolidation:

  • Lump sum payment — You will receive a lump sum as a direct deposit into your bank account which you can use as needed. You can then use the funds to pay off all your existing debts.
  • The lender pays your creditors — Some lenders send direct payments to your creditors on your behalf.

If you are repaying the debts yourself, submit the repayment amount, not the minimum amount due or the statement amount. You will want to make sure that you bring your balance down to zero. You will then begin to repay the new personal loan with a fixed monthly payment.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit.

Advantages of taking out a personal loan for debt consolidation

Here are some benefits of using a personal loan to reduce your debt:

  • Potentially save money — With good credit, you may qualify for a personal loan with lower interest rate than what you pay on your credit card debt. The average interest rate on a 24-month personal loan in May 2022 was 8.73%, according to data from the Federal Reserve. This is significantly less than the average interest rate of 16.65% for credit cards during the same period.
  • Can pay off debt sooner — Depending on how much you owe, it could take years or even decades to pay off your card balance. But personal loans have fixed repayment terms with a specific repayment date, so you’ll know exactly when your balance will hit zero.
  • Simplify your payments — Managing your debt is much easier when you only have one payment to make rather than trying to meet multiple deadlines for all of your accounts.

Disadvantages of taking out a personal loan for debt consolidation

As with any credit product, it’s wise to consider its downsides before making a decision. Personal loans have a few disadvantages, including:

  • May not qualify for a lower interest rate — Although personal loans generally offer lower interest rates than credit cards, you may not receive a lower interest rate if you have bad credit.
  • Come with fee — Check the terms of your loan for fees that could reduce your savings due to a lower interest rate. Additional charges may include loan origination fees, late payments, and insufficient funds.
  • Potential for more debt — Debt consolidation can provide long-term benefits to your finances by paying off multiple credit card and other debt accounts. But if you rack up debt on those accounts again, you could end up with more than your original debt.

Other debt repayment strategies to consider

If a personal loan isn’t right for you, you can still pay off your loan principal faster—and save on interest charges—by making more than the minimum payments in your accounts. Also consider using these other debt repayment strategies:

  • Debt Avalanche Method — The debt avalanche strategy focuses on paying off debt accounts with the highest interest rates first. By prioritizing your payments to eliminate high-interest debt first, you could save more in interest.
  • Debt Snowball Method — This strategy involves paying off credit accounts with the lowest balances first to enjoy quick wins that build momentum and motivation.
  • 0% APR Balance Transfer Card — Transferring your debt to a balance transfer credit card with a 0% APR introductory period between six and 21 months is an effective way to pay off debt. Without the interest charges dragging you down, all of your payments during the promotional period will go directly to paying off your debt, minus the fees. Remember that if you still have a balance at the end of the promotional period, you will start earning interest at the card’s regular rate, which may be higher than a personal loan.

Whether it’s through a debt consolidation loan, a repayment strategy, or a balance transfer credit card, getting rid of your debt has its benefits. Living debt-free can leave you with less stress, more freedom, and the ability to focus more on savings and wealth.

If you want to apply for a debt consolidation loan, Credible allows you to quickly and easily compare personal loan rates to find one that meets your needs.

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20 financing options for small businesses https://taxis4smartcities.org/20-financing-options-for-small-businesses/ Wed, 07 Sep 2022 16:00:26 +0000 https://taxis4smartcities.org/20-financing-options-for-small-businesses/ If you’re like most small business owners, you’re always on the lookout for new small business financing options. In this article, we’ll explore 20 different financing options for small businesses, such as traditional bank loans. Whether you’re just starting out or looking for something new, read on to find the perfect financing option for your […]]]>

If you’re like most small business owners, you’re always on the lookout for new small business financing options. In this article, we’ll explore 20 different financing options for small businesses, such as traditional bank loans. Whether you’re just starting out or looking for something new, read on to find the perfect financing option for your small business.



What is business financing?

Business financing is the process of obtaining financing for business-related costs. This can include short and long term loans, as well as equity financing. A business owner will often seek financing to cover the cost of start-up expenses, expand their business, or cover the cost of unexpected expenses. Business financing repayment terms may vary by loan type and lender. However, repayment terms generally range from one to five years.

Three Main Types of Financing for Businesses

In the business world, three types of financing are available:

  • Debt financing. This is the most common type of small business financing. This includes taking out a loan, which must be repaid in monthly installments with interest.
  • Equity financing. This business financing option occurs when a business owner sells part of their business in exchange for financing. The investor will then own a percentage of the business and be entitled to a portion of the profits.
  • Mezzanine financing. This type of business financing is a combination of debt and equity financing. In this case, the lender will receive a portion of the business in addition to the interest payments on the loan.

20 best financing options for small businesses

Every business needs financing at some point to start, grow or maintain operations. To help you make the best decision for your business, we’ve compiled a list of 20 different financing options, including getting a business loan from a traditional financial institution and SBA loan programs.

1. Business credit cards

Business credit cards can be used to fund a variety of business-related costs, such as office supplies, travel, and marketing expenses. You can get up to $25,000, but your personal credit score will be taken into account.

2. Cash Advances to Merchants

A merchant cash advance is a type of short-term financing that is repaid by a portion of your daily credit card sales. A small business owner can receive an advance of up to $250,000, which must be repaid within 12 months.

3. Online loans

If you are looking to borrow money from online lenders, you can get up to $500,000. The repayment terms and interest rates on these small business loans vary by lender.

4. Traditional bank loan

Bank loans are a good option for businesses that have a strong credit history and can offer collateral to secure the loan. Traditional lenders like banks offer lines of credit and business loans of $250,000 or more.

5. Crowdfunding

Crowdfunding is an alternative funding option available to business owners. In this type of fundraising, companies solicit donations from the general public in exchange for shares or rewards.

6. Small Business Grants

If you have a business with bad credit, you have several options. One such option is the Small Business Development Center (SBDC), which helps you find grants and other funding opportunities.

7. Invoice financing

Invoice financing is short-term financing that allows businesses to borrow against unpaid invoices. This can be a good option for businesses that are waiting for payments from customers.

8. Small Business Administration (SBA) Loans

SBA loans are a type of business financing provided by the federal government. These loans are available to businesses that meet the SBA’s eligibility criteria. Three loan programs available through the SBA include:

SBA loan program (7A)

These loans are often used for working capital, the purchase of equipment or real estate. Most 7(a) loans offer a loan maximum of $5 million, however, loans for equipment and real estate can extend up to a repayment term of 25 years.

SBA 504 Loan Program

This SBA loan program provides small businesses with fixed-rate, long-term financing of up to $5 million that can be used to acquire capital assets for modernization or expansion.

SBA Express Loan Program

These are loans of up to $500,000 with faster approvals. These loans can be used for working capital and for the same purposes as 7(a) loans.

9. Microcredits

Microloans can reach $50,000 and can be used for working capital, inventory, or equipment. These loans have a shorter repayment term than traditional loans.

10. Term Loans

These loans are typically used for the purchase of equipment or to finance business expansion, can be secured or unsecured, and have repayment periods of up to 25 years.

11. Angel Investors

Small business owners can also seek funding from angel investors. It is usually wealthy individuals who invest in companies in exchange for equity.

12. Venture capital companies

Venture capitalist are companies that also invest in companies in exchange for equity. These companies tend to invest in companies with high growth potential.

13. SBA Economic Disaster Loans (EIDL)

Although these loans are no longer available for reasons related to COVID-19, affected businesses can still apply for government assistance under certain conditions.

14. Credit Unions

Credit unions are another financing option available to business owners. They generally offer lower interest rates than banks and other traditional lenders.

15. Equity financing

Equity financing occurs when companies sell a portion of their equity in exchange for financing. This can be a good option for businesses that don’t have the collateral to get a loan or have a strong credit history.

16. Trade Credit

Trade credit is when companies extend terms to their suppliers in order to pay for goods or services over time. It can be a good option for companies that need to save money.

17. Cash Loans

Cash loans are loans granted based on a company’s cash flow forecast. These loans can be up to $100,000 and can be used as working capital or to finance the purchase of inventory.

18. Commercial real estate loans

These loans are used to finance the purchase or renovation of commercial real estate, such as offices or shops. These loans generally have a repayment period of up to 25 years.

19. Business line of credit

Lines of credit are loans that can be used as needed and repaid over time. This can be a good option for companies that need flexibility in their financing.

20. Equipment financing

Equipment financing is a type of loan used to finance the purchase of equipment. These loans usually have a repayment period of up to 10 years.

READ MORE:

Image: Envato Elements


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Sri Lanka’s Flawed Regulatory Framework Helped Generate Chinese Bad Lending – Analysis – Eurasia Review https://taxis4smartcities.org/sri-lankas-flawed-regulatory-framework-helped-generate-chinese-bad-lending-analysis-eurasia-review/ Mon, 05 Sep 2022 16:01:58 +0000 https://taxis4smartcities.org/sri-lankas-flawed-regulatory-framework-helped-generate-chinese-bad-lending-analysis-eurasia-review/ Special regulatory framework for unsolicited proposals was deeply flawed, says Verite Research While it is true that Chinese loans to Sri Lanka have tended to be non-performing and drain the island nation’s meager financial resources, Sri Lanka’s regulatory framework is also to blame for the dire situation. According to a report titled The lure of […]]]>
Special regulatory framework for unsolicited proposals was deeply flawed, says Verite Research

While it is true that Chinese loans to Sri Lanka have tended to be non-performing and drain the island nation’s meager financial resources, Sri Lanka’s regulatory framework is also to blame for the dire situation. According to a report titled The lure of Chinese loans prepared by Dr. Subhashini Abesinghe and colleagues for Colombo-based Verite Research (https://www.veriteresearch.org/publication/the-lure-of-chinese-loans/).

The report says that the special regulatory framework used in the case of Unsolicited Proposals (UPS) to execute development projects was not designed to facilitate effective and efficient use of incoming funds.

Sri Lanka had an improved and proven system with safeguards in the form of procurement guidelines (PG 2006). But between 2010 and 2016, this was replaced in many cases in an effort to secure Chinese funds for ambitious post-war infrastructure development. New programs had to be designed to attract funds as access to concessional finance from abroad had become difficult given that Sri Lanka had been classified as a lower-middle-income economy in 2004. Sri Lanka had to look for other financing options, with lower costs and longer terms. deadlines.

In this context, “export credit instruments” have proved useful. Some developing countries, such as China, have offered to provide funds for infrastructure investment through export credits. These were low-cost funds with longer maturities than trade credit, but required the borrower to purchase goods and services (including the contractor) in the lender’s country, Verite explains. This system has contributed to economic development in foreign countries while keeping industries buzzing at home. In a sense, it was a win-win system.

But the good in the system has been subverted by Sri Lanka’s weak regulatory system. Its loopholes have been cynically exploited by interested parties to the detriment of the economy. says Truth.

Unsolicited Proposals; No competition Bid

Sri Lanka has also found it convenient to receive Unsolicited Proposals (USPs). USPs are proposals put forward by an external entity of its own volition, that is, without the government requesting such proposals. Huge amount of money has entered Sri Lanka through USP to execute gigantic projects.

Chinese State-Owned Enterprises (SOEs) have created USPs with support from the Exim Bank of China. According to Verite, between 2005 and August 2010, six publicly funded infrastructure projects worth $1,558 million originated from USPs. These were implemented without going through a tendering process. Of these six projects, three were financed by the EXIM Bank of China. Mattala International Airport and Hambantota Port were among these Chinese projects. These three projects represented 88% of the value of the six projects. They were also implemented “without going through a tendering process” which was the rule in the previous system.

SCARC

To regulate and assess USPs, a Cabinet-Appointed Standing Review Committee (SCARC) was appointed in June 2010. The SCARC was required to independently assess the proposal, if necessary, with the assistance of a technical evaluation committee/project committee.

However, the weakness of the SCARC was in the list of reasons that could be invoked to justify a departure from the normal procurement process. “The reasons listed were much less strict compared to the general framework and were only vaguely defined. Additionally, the decision-making process was made much more lenient by stating that deviations could be justified even if the USP only met one of the listed reasons, and leaving discretion to SCARC to decide. whether the USP should be evaluated by an independent project. /technical evaluation committee.

“These weaknesses allowed managers to exercise a high level of discretion in decision-making, reducing the rigor of the decision-making process and making it prone to abuse/misuse,” says Verite.

Several of the listed reasons for the discrepancy were vaguely defined, the report points out. “For example, to proceed with a USP without going through the bidding process, the ministry/department’s initial assessment need only establish that the project “appears to be of exceptional benefit to the country in terms of funding or otherwise” .

Unlike the Procurement Guidelines 2006 (PG 2006), which describe “extraordinary circumstances”, the new rules do not provide any examples or illustrations of what would constitute “justifiable” circumstances to deviate from the call for tender. offers. “Therefore, these criteria were open to subjective interpretation, which could lead to arbitrary and capricious recommendations by SCARC,” says Verite.

Additionally, to determine if the financing is appropriate/favorable, “the only factors that need to be considered are the years of repayment (minimum 15 years) and the grace period (minimum 3 years). There is no reference to the interest rate to be paid or the grant element of the loan.

According to the IMF, a loan to be considered a concessional loan must have a grant element of at least 35%.

Verite points out that under the 2006 GP, when a deviation from a tender is requested, it is mandatory to appoint a Standing Cabinet Appointed Contracts Committee (SCAPC) to assess the proposal, which will be supported by a technical evaluation committee appointed by the Ministry of Public Finance. Thus, within the general framework applicable to public sector infrastructure projects, in the event of waiver of competitive bidding, the technical evaluation is carried out by a designated independent commission. The procurement guidelines set out the specific qualifications that members of a technical evaluation committee must possess.

In contrast, under SCARC, independent technical evaluation of an unsolicited/stand-alone proposal is not mandatory. For example, SCARC can make a recommendation on its own or with the help of a technical review panel, says Verite.

Water supply project

Verite’s report uses the China-funded and executed Gampaha, Attanagalla, Minuwangoda Integrated Water Supply Scheme (GAMWSS) to illustrate flaws in the SCARC system. The contract to implement the project was awarded in 2013 to China Machinery Engineering Corporation (CMEC), which submitted a USP without going through a bidding process but with SCARC recommendation and Cabinet approval ministers.

Despite concerns such as higher costs and a lack of experience and expertise identified early on by committees appointed to evaluate proposals, these were overlooked in the approval process, Verite says.

“Elements of corruption” were suspected in the decision-making process. As a result, the government failed to obtain the expected concessional loan from the EXIM Bank of China. The expected rigor of the assessment process was compromised by the Ministry and the SCARC, which completely ignored essential factors such as the completion of the feasibility study, the environmental impact study, the terms of financing, as well as than the experience and expertise of the company.”

Moreover, the project had been delayed for more than seven years, depriving 400,000 people of the promised water connections, points out Verite.

“Although the special framework has managed to tap into China’s vast pool of funding, in the process of securing these funds, the country has incurred many additional costs. The lack of visibility of these costs can lead to an overestimation of the benefits of such financing and an underestimation of the real costs,” warns the study.

Further, “although oversight institutions such as the Auditor General’s Department frequently report financial and other irregularities related to the project, there is no evidence of legal action being taken against those involved. This is a key factor contributing to the recurrence of these problems,” the report points out.

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How often can you refinance your car? (2022) https://taxis4smartcities.org/how-often-can-you-refinance-your-car-2022/ Thu, 01 Sep 2022 21:28:37 +0000 https://taxis4smartcities.org/how-often-can-you-refinance-your-car-2022/ Whether you want to take advantage of a lower interest rate or hope to change the terms of your loan, there are plenty of reasons to refinance your vehicle. But how many times can you refinance your car? We at the Home Media Review Team will explore the refinancing process here – when you can […]]]>

Whether you want to take advantage of a lower interest rate or hope to change the terms of your loan, there are plenty of reasons to refinance your vehicle. But how many times can you refinance your car?

We at the Home Media Review Team will explore the refinancing process here – when you can do it, how many times you can refinance your vehicle and if you should do it in the first place. Before refinancing your car, consider comparing the best auto refinance rates online to save money.

How often can you refinance your car?

You can refinance your car as often as you like, and there are no legal restrictions on how long you should wait before doing so. You will not encounter any law preventing you from refinancing your car at any time.

On the other hand, some problems could arise if you refinance too often. Drivers who extend their repayment periods over and over again risk having their loans reversed and could possibly hurt their credit ratings.

Potential problem: Owing more than your car is worth

Your loan is “upside down” if you owe more than your car is actually worth. This can happen if you don’t get a good interest rate or if you refinance too early when the car’s depreciation is greatest.

Auto loans can also be upset if you extend your refinance terms too often and end up with a much longer payment period. During the term of the loan, you will pay more than the value of the car at the beginning. With multiple refinances on the same car, you are more likely to end up with an upside-down car loan.

Potential problem: damage to your credit score

Every time you get a pre-approved car loan, your credit score could suffer due to serious investigation. Normally, your credit score will recover fairly quickly. If you complete another application within a month or two, your FICO score may remain lower than the first. This could make it harder to get approved for new credit cards, personal loans, or even mortgages.

Multiple requests of the same loan type within 14 days will only be added once, but after that the count usually starts over. If you’re on the line between two credit score brackets, you might actually start receiving more. car loan rate after several refinancings.

How long does it take to refinance a car loan?

You can refinance an auto loan as early as the business day after the initial transaction is completed. No law requires you to wait a certain amount of time before refinancing your car with a new loan. However, make sure you can actually get a lower rate by refinancing your existing loan or you could end up with harsh repayments in the long run.

If you bought your car new from a dealership, the salesperson may have told you to wait six months or a year before refinancing. Generally this is not true. Dealerships often receive commissions after you’ve made loan payments for six months, so they may be tempted to tell you not to refinance right away. It’s rare that drivers are contractually obligated to wait a certain amount of time before refinancing their vehicles.

Another issue to watch out for is prepayment penalties. Auto lenders in 36 states and the District of Columbia are allowed to charge drivers a fee for terminating auto loans with a term of less than 60 months. In addition to a prepayment penalty, those refinancing a new or used car could end up having to pay title fees.

Should I refinance my car loan?

People typically refinance their vehicles to save money by getting lower monthly payments. It’s best to refinance your vehicle when you get a better interest rate while keeping the repayment period about the same or shorter than your current car loan.

In other words, it makes more sense to choose a 48 month refinance loan than a 60 month loan if each option has a similar interest rate.

Increasing the remaining term of your loan to 60 months may give you a slightly cheaper car payment per month, but you could end up paying significantly more than your original loan. If you received a higher interest rate, cheaper monthly payments could still result in higher overhead.

If you carefully compare the best rates in the market, chances are that refinancing your loan balance is the right choice. The main exception concerns motorists who have already refinanced their car often in the recent past.

When to refinance a car loan

It’s a good idea to refinance your car if the following conditions are true:

  • Your credit score has improved and you can get a better interest rate
  • You find that your current lender or dealer gave you the wrong rate the first time
  • You can afford higher payments and want to shorten the term of the loan to save on total interest charges
  • A family member is willing to co-sign the loan for better terms
  • You are in a better financial situation and devote less income to paying off your debts

When not to refinance a car loan

Be careful and consider not refinancing your car loan in the following situations:

  • Your credit score has gone down and you will get a higher interest rate on the loan
  • You only have a few years left on your car loan
  • Your car is over 10 years old
  • You’re upside down on the loan
  • Your car loan has prepayment penalties in the contract

Our recommendations for car loan refinancing

Refinancing your car loan is often a fairly simple process that can be completed in a matter of hours. We recommend contacting credit unions in your area and considering the most reputable auto refinancers. Below are two of our top picks if you want refinance a car loan.

Automatic approval: first choice for refinancing

Starting Annual Percentage Rate (APR): 2.25%
Loan amounts: $5,000 to $85,000
Loan conditions: 12 to 84 months

Auto Approve is a marketplace where you can compare refinance offers from various online lenders. Borrowers with the best credit reports could find refinance rates as low as 2.25% through Auto Approve. Most customers have positive experiences with Auto Approve – the company has a 4.7 – out of 5.0 stars on Trustpilot.

Keep reading: Automatic Approval Review

PenFed Credit Union: Best Credit Union

From April: 4.24%
Loan amounts: $500 to $150,000
Loan conditions: 36 to 84 months

PenFed is our top choice for auto refinancing among credit unions. The financial institution usually offers exceptional rates for those with excellent credit scores, but borrowers with bad credit will likely be turned down. Reviews on Trustpilot mention courteous customer service agents and give PenFed Credit Union 4.6 out of 5 stars.

Our Methodology

Because consumers rely on us to provide unbiased and accurate information, we’ve created a comprehensive rating system to formulate our ranking of the best car loan companies. We’ve collected data on dozens of loan providers to score companies on a wide range of ranking factors. The end result was an overall score for each vendor, with the companies scoring the most points at the top of the list.

Here are the factors taken into account by our assessments:

  • Reputation (25% of total score): Our research team considered ratings from industry experts and each lender’s years in business to assign this rating.
  • Prices (25% of the total score): Auto loan providers with low APRs and high loan amounts scored highest in this category.
  • Availability (25% of total score): Companies that cover a variety of circumstances are more likely to meet consumer needs.
  • Customer experience (25% of total score): This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness and helpfulness of each lender’s customer service team.

*Data correct at time of publication.

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