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The Pros

- Checks are free. Probably one of the most obvious perks of free checking is the fact that you don’t have to pay a dime to write checks once you open an account. For those looking to get started in banking, this is a great way to do it, especially for those looking to build up a good rapport in the credit world.
- Low minimum amount to start. Typically, with free checking, you can open an account with as little as $50. Again, this is great for the young person who wants to build up credit but doesn’t have much up-front money to do so.
- Free debit card. Debit cards are all the rage in the banking world because they offer the benefits of cash with some of the added perks of a credit card. When you open an account with most financial institutions, they will give you a free debit card to easily pull your money out of the ATM or at a store utilizing penalty-free cash back withdrawals.

The Cons

- Monthly automatic activity often required. One way that financial institutions make sure that they benefit from offering you free checking is by becoming actively involved with your money. So some require that you either have money directly deposited or withdrawn every month. If you don’t participate, either you can’t open the account, or fees will magically appear.
- High overdraft charges may take your money. When you open an account like this, it is likely that you will pay royally for falling below the generous minimum $0 balance. Some fees can be as high as $25 per overdraft with an additional $5 charge each day that your balance in the negative. This can add up quickly if you went on a debit card shopping spree not knowing that your paycheck didn’t clear.

Free checking can definitely benefit those who read all of the fine print when they open an account. So if you think this is the road you would like to take, make sure you do the same to avoid spending more money with the bank than with a retailer.

Use #1 – Consolidate Debt

Probably the most common way to use a home equity loan is for debt consolidation. Most of the time, these loans have lower interest rates than other types of debt. For example, the average credit card interest rate is around 16%. If you are struggling to pay back all of those smaller examples of debt, you can use the funds from home equity loans to pay them all off and free up some cash. You’ll end up with a lower interest rate and a better debt to income ratio in some cases.

The biggest problem with taking this route is that if you’re the type of person who runs up a lot of debt, you may end up repeating the process once your credit cards are freed up thanks to the home equity loan. These actions could lead you down a financially disastrous road.

Use #2 – Children’s Education

If you have kids going to college, you may also consider using a home equity loan to pay for that education. College costs are increasing every year so this could be a wise choice and could help prevent your child from starting out in life with too much debt. While this is an idea worth considering, there are some drawbacks.

First, you also have to consider whether or not you’ll need to access your home’s equity during your own retirement. These two life milestones tend to go hand in hand and this might be a good time to put your own needs first, especially if your child has other funding options. Be sure that he or she explores all options, including federal grants, federal student loans, and scholarships. Another idea is for you to take out a federal PLUS loan using your home as collateral.

Use #3 – Fixing Up the Home

The second most common use for a home equity loan is repairs and improvements to the property. The basic idea is that the changes will actually improve the value of the home which means more equity. Plus, if there are major repairs needed and you can’t afford them in any other way, this is definitely a resort you can choose.

Be aware though that not all of the changes you add are going to boost the value of your home. You also need to realize that your home’s value is also closely tied to the neighborhood in which you live. If you are going to do repairs, consider focusing on the kitchens and bathrooms because these changes are the most likely to increase value.

Do you need additional good ideas on how to use the funds from a Home Equity Loan? You’ll find more ideas by visiting http://www.homemortgageloan-refinance.com/Home-Equity-Loan-Best-Deals.php.

SBA Loans – Loans guaranteed by the Small Business Association, but provided through your local or national bank. The guarantee is for the lender, not you the borrower. Current approvals (up to $2M) given for purchasing an existing business, partner buyouts, real estate transactions, medical professionals. Borrower generally needs 620+ credit score. Individual lenders determine which transactions they are willing to approve and specific requirements.

Equipment Leasing – Used to acquire equipment considered essential to your business. Must provide vendor estimate/sales quote for requested equipment as funds are forwarded to vendor for payment, not borrower. Borrower can own equipment at end of term or lease new equipment. Two years TIB generally required, some start-ups may qualify. Minimum 620+ credit score generally required. Lease payments can be considered business expense and often used instead of paying large upfront amount to outright purchase equipment.

Sales Leaseback – Current owner of equipment agrees to sell their equipment to lender and make lease payments to secure working capital funds. Equipment must have large secondary market; equipment deemed too specific has limited market and not a good candidate. Equipment should be relatively new, less than 18 months. Borrower must submit equipment listing that details equipment specifics offered for sale to determine value given for leaseback. Each piece should be valued over $25,000. Generally good credit expected on borrower.

Account Receivables Financing – Also called factoring, increasingly popular form of obtaining line of credit, based on your average monthly receivables. Great way of obtaining operating capital without having to wait for your customers to pay. Approvals weigh heavily on the quality of your receivables, not as much on your credit. Receivables generally should average minimum $25,000 per month. Once approved, 60-80% of receivable is advanced to borrower after customer is invoiced. When customer pays factoring lender, the balance of invoice, minus processing fee, is forwarded back to borrower.

Working Capital Loan – This is a true loan product, reported on your credit report. Approvals generally based on overall cash flow availability (average bank balance and average credit card processing) as well as credit history. Credit score expected in 620+ range, average balances in $5,000 range. Approval amounts up to $100,000, repayment up to 12 months. Once approved, loan can be used for almost any purpose. Renewals are possible once initial loans are 80-90% repaid. Rates generally lower than merchant cash advance. Funding usually complete in 7 days.

Merchant Cash Advance – Cash advance is forwarded to borrower based on last 6 months of credit card history. Credit is not as important, but should be 500+ with no recent bankruptcies. Merchant generally must process $8,000 minimum per month – Visa, MC, AMEX and some lenders include debit card processing as well. Cash and check amounts are not affected. This can be an expensive financing product, best for those in need of quick funding, generally with no other options for securing money. Operating capital can be used for almost any purpose. Funding usually complete in 7 days. Seasonal businesses may need to submit 12 months of merchant statements.

Church Financing – equipment programs available for new and established churches. Can fund chairs, pews, audio-visual equipment, almost anything needed for the interior of your church. $5,000 minimum request, requires personal guarantor with 600+ credit. Equipment sales quote from vendor needed as payment is made directly to vendor for equipment. Church addition/construction loans also available, generally require $300,000 minimum loan request. Church financial and bank statements needed for review prior to approval.

Now you have a quick starting point to help determine which financial products best suit your needs. Be sure to be honest and upfront regarding all aspects of your financial situation when discussing and submitting your application. Credible lenders will complete due diligence activities and your request may be declined for lack of full disclosure.

Marian White, M.B.A., is the owner of The Grey Financial Group, LLC, a commercial brokerage firm serving small business owners throughout the United States.

http://greyfinancialgroup.com/

A home equity loan or line of credit can give you access to the funds you need in the event of an emergency by allowing you to borrow against the equity in your home.

Interest rates on home equity loans and lines of credit are often lower than those for credit cards, making them a more appealing option for homeowners. An added benefit is that the interest you pay may be tax deductible. Be sure to consult your tax advisor for further information about deductible interest on loans or lines of credit.

This all sounds great, right? So, how do you determine whether you need a home equity loan or a home equity line of credit?

Once you understand the major differences between these types of loans, you’ll better understand which one will best meet your needs.

Home equity loans

Also known as a second mortgage, a home equity loan (HEL) gives you access to a single lump sum that you agree to pay back on a regular monthly basis over a time span of 10 to 30 years. With this type of loan, you can get either a fixed interest rate or the flexibility of a variable interest rate.

Often best-suited for large one-time expenses, home equity loans are beneficial when you need money for things such as short-term home improvements or a new car. It’s possible to be approved for up to 100 percent of your home’s equity, and an appraisal usually is required as part of the application process to help determine the market value of your home.

Home equity line of credits

A home equity line of credit (HELOC) functions like a credit card, by providing you with a revolving line of credit. You can borrow as much (or as little) money as you need at any given time, up to a predetermined maximum limit, rather than receiving one lump sum as you would with a home equity loan. With this type of loan, you usually receive a variable interest rate based on the fluctuations of the prime rate.

When you are approved for a home equity line of credit, you will be given checks or a credit card to use when you want to draw upon your line of credit. In most cases, your monthly payments will be on the interest only, and you will be responsible for paying back the principal at the end of your draw period. Once the principal is repaid, it becomes available for you to borrow again.

One of the major benefits of a home equity line of credit is that is flexible and like a home equity loan can also be used for anything you want; however is often best-suited for long-term, ongoing expenses such as funding long-term housing renovations, medical bills, or college tuition. Assuming creditworthiness, the amount you can be approved for is based upon a percentage of your home’s appraised value, minus what you still owe on your mortgage.

It is important to note that when you commit to a home equity loan or line of credit, you are using your home as collateral. Be sure you understand the terms of the loan or line of credit, and only commit to an amount that fits comfortably within your budget. Because you will be on a recurring payment schedule, and know exactly how much the amount of your monthly payments will be over the entire term of your loan, you should be able to budget for your payments in advance and not have to worry about the chance of foreclosure. Plan ahead, and be careful not to over-extend yourself.

If you’re looking for a way to finance that new car or college education, or need help paying for emergency expenses, you may want to consider applying for a home equity line of credit or home equity loan. Be sure to choose a company you can trust – one with a great reputation – like Nationwide Bank®. Loans from Nationwide Bank offer attractive interest rates with flexible terms to fit your individual needs.

1. Look into secured loans. Even with bad credit, secured loans can be obtained. This is because the lending institution is offered personal property to act as collateral in the event that you default on your loan. Keep in mind that what you offer up as collateral has to have significant value. You can’t just walk into a bank with your music collection and plasma television and ask for a secured loan. Most lending institutions ask for the title to your home or car to serve as collateral. If you can put either of these up, you can often get loan that is equal to the value of your collateral.

2. Secured credit cards are also available. These operate on the same principles except that, instead of collateral, you are asked to pay a flat fee in exchange for being given credit. This fee is never small and could end up being well over a hundred dollars. Depending on how much credit you need, this extra fee (which, along with however much you charge to the card, will be subject to interest charges) could be well worth it.

3. If you don’t need a large loan, you might consider looking for a payday loan. There are plenty of payday loan companies to choose from. Some of these companies even operate online. You can fill out an online application and have money deposited into your bank account in just a few minutes! Of course, if you want to get a loan online, you will want to do some research before choosing a company because you don’t want to worry about being scammed!

4. Depending on your credit rating, you might still qualify for an unsecured loan. Some lending institutions will agree to give unsecured loans to people in exchange for higher interest rates and shorter repayment periods. If this option is available to you, this is the option you should choose. Unsecured loans from accredited lending institutions will not only help solve your current financial crisis, but they can help you repair your credit, making it easier for you to obtain a loan later on in life!

Bad credit doesn’t necessarily keep you from obtaining a personal loan. In fact there are many ways to obtain personal loans with bad credit. Take some time to see what options are available to you before you jump on any single opportunity. Doing your research on how to best obtain personal loans with bad credit will help ensure that you find the opportunity that is best suited for your needs. It will also help keep you protected from scams!

You can find out more about Personal Loans With Bad Credit as well as much more information on all types of personal loans at http://www.PersonalLoansA-Z.com

The Benefits of a Credit Card:

• Keep heavy cash in abeyance—money is the most coveted thing in this world. Carrying lot of cash wherever you go is always a bone of contention. A credit card facilitates you to travel without heavy cash and have a carefree and happy trip or shopping.

• Imagine yourself out for shopping in a wonderful mall. While you shop, you remember to take boots for your son, spectacles for mother, necklace for your beloved wife…but falling short of money! The credit card is your best friend in such a situation.

• Even if you lose your credit card, you need not be apprehensive and scared the way you get when you lose your cash. This is because you can get the card freezed or blocked from the bank and relax.

• Credit card works anywhere and everywhere nowadays. You just need to bag your card and make a move to any destination without bothering for money.

• Loan facility can also be availed via credit cards.

The Negative Aspect of Surge in Credit Card usage

• Generally everybody does not meet the eligibility criterion to hold a credit card. yet in order to enhance their sales and as part of marketing strategies, companies, private banks etc. do away with giving these cards to who so ever caters even to the minimum terms and conditions.

• The loan factor-the cards provide you with huge credit limits. The consumer ignorant of the forthcoming trouble, keeps on drawing money from his card and most often when he realizes his mistake, it is too late. He not only comes in the debt of the money he withdrew but also the massive interest that is charged by these companies and banks.

• Many credit card companies provide lucrative offers almost every month in the form of incentives. These incentives are basically meant to boost the sale of their product. Incentives like travel programs, gas purchases etc. are a very common phenomenon these days. But one should not get lured by these for it is well said that everything that glitters is not gold. Initially the cards might be promising for some cheerful moments but once you become habitual of them they can land you in soup.

• The addictiveness- it is most often the addictiveness of these cards that is a source of trouble. People, who keep on drawing from the bank’s or company’s credit, suffer largely.

• Debit cards are believed to be different from the credit cards. But actually the difference is minute. A debit card can also be used as a credit card at times and there are some eminent banks that charge fee with the debit cards too. So more or less the situation remains to be the same.

When you make up your mind to go for a debit card, consult some advisor. Know the details of the interest rate, the tenure to repay the amount and other such things. Do not be carried away by brand names. Just make a survey first and then decide which one to go for.

Mansi aggarwal writes about credit card. Learn more at http://www.wisecreditcarduse.com

PayPal performs payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee. PayPal is one of the most recognized payment methods in the world. There are over 170 million members using the system. They have built up a trust factor on their own though eBay and on their own over the years by being careful and many say over protective in their responsibilities.

Right now, PayPal operates in 190 different markets, and currently manages over 170 million accounts. PayPal allows customers to send, receive, and hold funds in 18 currencies worldwide. You can use it to get payments from customers, from websites and from other affiliate programs. It is a very secure method of payment, since the person receiving the payment is paid through PayPal and then PayPal debits your account. There is a processing fee per transaction but that’s the price you pay for security.

If you are doing business online, you should get a PayPal Debit/Credit Card so you can use it to make your purchases offline as well as online. You also can withdraw from any ATM with it as well. PayPal allows you to connect to your checking account or link to an existing credit card.

You can count on PayPal to be a secure method of receiving and sending online payments. There are other online payment systems available, but PayPal is one of the originals and is very easy to use. You can also sign up for their credit card registered with MasterCard.

Many people will not buy items if they cannot use their PayPal account. There are no start-up costs; you need a bank account for some verification deposits into your account, other than that it is pretty simple.

Here are the steps to getting started:

* Sign up now for an Account/ business owner’s name, address, and email
* Enter your Business name and address
* Enter your Customer service information
* Use it to accept credit cards, bank transfers, and PayPal balances
* Save money and sell more with our merchant solutions
* Verify your information.
* Confirm email address
* The email address you used to sign up
* Add and confirm bank account
* Enter your bank’s name
* Enter your account and routing numbers
* Enter the name associated with your bank account

It might take up to 3-5 business days for the bank’s system to record your transaction and validate the test deposit. Once that is done, go to your PayPal account and click the validate section to complete the process.

After you are done, you can accept credit cards, bank transfers, debit cards, and more! Plus, your customers can pay you instantly, even without a PayPal account. This is a great way to get started in an online business.

If you want to learn how to profit from the use of PayPal and other online transaction systems go to my website and enroll in my free series. Learn how to boost your business income with my 30 Day Program For Making $120,000 A Year On Auto Pilot” Head over to the site and sign up for your free 30 day course now before it’s too late!=> http://DoubleMyRevenues.com/coaching/