Author Archives: Kyle Burton

About Kyle Burton

Kyle has been covering the online lending and consumer finance markets since 2006, his focus is to uncover topics that help borrowers get out of debt and save money daily. You can connect with him on Twitter, LinkedIN and Google+

What Part of the Government Regulates Short Term Financing

The CFPB is responsible for regulating various types of short term loans that Americans depend daily such as credit card, payday loans, student loans and home loans. It was set up under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The organization has the power to make rules that they believe will protect the consumers from fraud in regard to loans. These rules aim to ensure that the borrowers don’t get cheated and fully understand the lending terms.

The lenders, on the other hand, are to follow the guidelines set up by the CFPB when approving a loan. Previously, there was not a single agency that has the authority to regulate and set standards for all the banks and other lending institutions in the market. This has led to the economy crisis that occurred in 2008. The aftermath of the 2008 economy crisis still exist in the market.
Consumer Financial Protection Bureau was established to replace the 7 ineffective agencies that used to regulate consumer financial protection. The CFPB regulate all the banks and credit union that had been previously regulated under the Federal government. It also regulate private lending institutions that are not bank.

Non bank lenders pay an important role in offering credit access to millions of consumers in the USA. The purpose of regulating these non bank lenders is to prevent them from using deceptive practices that are unfair on the borrowers. Examples of non bank lenders are payday loans, online lenders and P2P loans. All lenders are subjected to the CFPB to provide clear information. With the standards set by the CFPB, consumers will receive strong protection.

The website of the Consumer Financial Protection Bureau, consumerfinance.gov, was officially launched in February 2011. It starts to accept consumers’ feedback in regards to the promotion fairness and transparency in all kinds of financial products. The CFPB constantly monitor new financial products in the market and identify new risks that are posed to the consumers. It finds out the hazards that consumers will face when applying loans from different lenders.

Up to date, the CFBP has carried out three know before you owe campaigns on three different types of loans including credit scores, mortgages, student loans and credit cards.
These three campaigns aim to help consumers understand the agreement of the loan that they are applying. Consumers can visit the CFPB website to read tips on how to make smart decision when obtaining a loan. The financial education provided by CFPB is written in a way that is easier to understand compared to long agreement. It provides answers to frequently asked questions about affording a college. The CFPB has also take the effort to educate consumers about virtual currencies like Bitcoin.

Finding and Comparing Online Installment Loans

Comparing online installment loans is a necessary step to take if you are planning to take out loan. By comparing the loans, you will know how much is the cost of the loan offered by different lenders. If you don’t perform loan comparison, you might end up signing up a loan that is expensive when you could get the same loan at a lower rate from another lender.

Before shopping for online loans, you must ask yourself what is the loan amount that you want to request. To determine the loan amount you need to borrow, you must calculate exactly how much yu need for your expenses. You should ask yourself if the loan amount you want to borrow is justified and whether it is possible for you to borrow lesser. You also have to ask yourself what type of repayment period you want the loan to have.

You must keep in mind that short repayment period means you will be paying a higher installment every week or month. You can choose a longer repayment period with smaller weekly/monthly installment if you have a lot of expenses to take care of. Every online installment loan has APR interest fee charges. APR, short for annual percentage rate, is a percentage of fee based on the loan amount you borrow.

Using the loan comparison site to compare and sign up for the loans can help you to save a lot of time. The loan comparison site will prompt you to take a survey where you have to answer a series of questions to determine your ability to qualify for the loan. After you answered the survey questions, it will show it will show you a list of loan offers that you are eligible for. There are 3 things to keep in mind when you are comparing loans including credit score requirement, interest rate, and loan period.

It is important to factor in the cost of the loan before applying for it. You must choose the repayment period based on your ability to repay the loan. For example, if you know you need to take 5 years to repay the loan, you should not force yourself choose a 3 year repayment period. Many loans do not charge prepayment penalty so you should try to accumulate as much savings as possible. This will allow you to repay the loan early without facing stress in coping with monthly installments.

The comparison site only provide an overview of the details that you need for comparing the loan offers to see which one is suitable for you. So, if you have any question about the loan, you should call the bank and ask the representative. You must not neglect to read the loan agreement and make sure you fully understand the terms and conditions. You will want to check your credit report for any error that is causing your score to drop prior to shopping online for the loans.

How Do Lenders Offering Short Term Loans Ensure that Borrowers are Over 18

Most creditors have a minimum age requirement of 18 years old when deciding whether to approve the loan application. When you apply a for short term loan, you are required to fill in a loan request form. The loan request form has fields that you need to fill in about your personal information such as age, employment status, salary and etc.

The underwriter will be responsible for reviewing the loan application that you have submitted. Your application will be reviewed under an electronic identification procedure that is run under a credit bureau such as Equifax. During this procedure, the underwriter will compare the information you provide with the credit data that is on file. They will review how other financial institutions perform background check n you and review your payment history.

Normally, the bank will ask you to provide the latest bank statements when you are applying for a short term loan. The bank statement allows the lenders to confirm your full name, physical address, age, salary credits, credit payment, unpaid bills and credit limits. After taking into account all these factors, they will do a calculation to determine whether you are qualified for the loans. The calculation allow them to determine your outstanding debt and whether you are able to afford the loan that you are requesting at the moment. They will make sure that you have sufficient disposable income to repay the loan after paying all your living expenses.

The bank may ask you to provide additional documents if they are unable to verify your data. They may ask you provide clarification on the details that you entered into the application form. If you are below the minimum age requirement of 18 years old, you can obtain a loan with the help of a guarantor that is above 18 years old. This means that the guarantor will be responsible of paying the loan if you are unable to meet the repayment at the deadline.

The reason why creditors do not approve loans for applicants under 18 years old is because young people usually don’t have enough credit history which prevent them from determining their capability in paying back the loan. Normally, the guarantor would be your parents who are working and in employment.

You can apply for the loan as soon as you have found a suitable guarantor. It is best to apply the loan at the same bank where your family do your bank in order to qualify for a low interest rate. Both you and your guarantor have to sign the loan applications and return all the paperwork to the lender. You can easily get approved if your cosigner has a good credit score.

Make Sure If You Are Struggling With Your Finances You Don’t Miss Your Credit Card Payments

Many of the credit card holders have been missed their credit card payment at least once in their lifetime, and a number of them charged up paying a high interest for those missed payments. Many of them have now struggling with their finances. Therefore with each other finance solution, credit cards can be an aid if took care of well. But, if you fail to make sure the credit card payment, then the results can be troublesome.

How about we experience few of the results of late or non-payment or partial payment of credit card bills.

Late fee
You will pay a weighty late fee on the off chance that you pay your bill after the due date. This fee will likewise be charged on the off chance that you pay not exactly the base amount payable by the due date. The late fee would be charged by the bank in your next credit card bill. In any case, numerous banks coordinated to charge late fee just if the payment has been due for over three days after the due date.

High interest on outstanding bill payments

Many individuals trust that in the event that they pay the base amount payable, no interest will be charged on their credit card outstanding bill amount. Be that as it may, in actuality, you will pay interest on the outstanding amount beginning from the payment due date. The rate of interest expense can be as high as 45% annualized. Assume, your bill is generated on fourth March (payable by 24th March) for $1000, and your base amount payable is $150. Presently, regardless of the possibility that you pay $150 by 24th March, you would at present be at risk to pay interest on $850, beginning from 25th March till the date on which you repay whatever remains of that amount.

Higher rate of interest

The interest rate on your outstanding bill might likewise increase in the event that you don’t pay the base amount payable by the payment due date. The interest rates on cash withdrawal or purchases might likewise increase on the off chance that you keep on making purchases from credit card in the wake of defaulting on the bill payment.

Withdrawal of interest free period

Your defaults on credit card payments can prompt withdrawal of interest free period from your card. It alludes to the maximum period accessible to clear your credit card dues, contingent upon the day of the transaction and your month to month billing cycle. Interest-free credit period can be anyplace between 20-50 days. This interest-free credit period is the greatest point of preference of using a credit card as the bank is really financing your purchase for that interest-free period. Notwithstanding, the bank might pull back this component in the event that you don’t make full payments on your due date and interest would be charged on your crisp transactions from the resulting billing cycle.

Decrease in credit limit

Continuous fail in credit card payments might decrease your credit limit, which will decrease your spending limit in future.

As should be obvious, the joined impact of these results can greatly influence your financial position and will hit your credit score. So that recovering from this can take a lot of time. In this way, it is best to make sure your credit card payments are paid in full.

Find additional topics for short term loans, credit cards, finances and money savings tips by visiting DirectSignatureLoans.com today.

Saving Money 101 – Great Tips For Getting Your 2016 Financial Goals On Track

Saving Money 101 – A Penny Saved Can Help You Go A Long Way Towards Financial Freedom in 2016


Everyone would like to put more money into their savings, whether it be for retirement, a vacation or just so you have some money saved up in case of an unexpected expense like a car or home repair. In theory, it’s an easy thing to do, spend less and save more. In practice, however, it isn’t that simple.

To spend less, the first thing that comes to mind is giving things up that you know you don’t need, but is a little luxury you enjoy like going out to dinner or gourmet coffee each morning. But if you put your mind to it, you can have the best of both worlds. You don’t have to give up those little luxuries, you just have to enjoy them less often. Instead of going out to dinner or lunch five days a week, just cutting it down to three, and brown bagging it two days, you save money. Are you saving a fortune? No, of course not. But you are getting started on saving money. Take a moment to think about how much you spend eating lunch out every day. Most people are spending seven to ten dollars each time, unless they are going to the dollar menu at a fast food joint every day, which is seriously unhealthy. So just brown bagging it twice a week, you can save fourteen to twenty dollars a week. Sounds like nothing, right? Well at the end of the year, that adds up to $1500-$2000 a year, and that is a nice chunk of change.

Another way to save money in small amounts that add up quickly is through utilities you have some control over. Don’t turn your heat above 70 degrees when you are home, turn it down to 65 when you sleep or aren’t home, if you have oil or gas heat. Same thing goes for air conditioning. You don’t need to come home to what feels like a sauna, but you can keep it at 72 degrees when you aren’t home. The important thing about air conditioning is to keep the humidity down, so even if you turn the temperature lower because you want it colder when you are home, that time when you aren’t home, you keep the humidity out and so, it doesn’t feel as hot when you come home. Believe it or not, central air burns a lot more electricity than window units. Even if you shut the vents off in unused rooms, the cool air is still traveling through the ducts to those rooms, so you aren’t really saving electricity. With window units on the other hand, in the rooms you aren’t using or don’t use often, you can turn it off and keep the door closed.

Now if you have electric heat, it’s even easier, because typically each room is its own zone. So there are rooms you can keep the heat off completely and just don’t close the door, which will allow heat from the other rooms in. This is especially true in bathrooms. With electric heat, if you set the thermostat in your bathroom at 70 degrees and close the door, that room is going to be very warm. But if you don’t turn that thermostat on at all (except for the very cold weather where the pipes freezing might be a concern), and leave the door open just half way, the heat from the rest of the house will find its way into the bathroom, so when you go in there it isn’t freezing cold, but let’s face it, you can always turn the thermostat up thirty minutes or so before you are going to shower so the room is nice and warm, but the rest of the time, you simply aren’t spending much time in the bathroom.

Those are just two simple ways you can save small amounts of money without feeling like you are giving up the little luxuries you enjoy. Once you start seeing your savings account growing, chances are you will start thinking of other ways you can make painless cuts to your spending without feeling deprived.

For more money savings, financing a lending tips in 2016 stay tuned to the editorial team from Direct Signature Loans for great money savings tips!

Facing Wage Garnishment Follow This Guide For Appealing

If you have been hit with a garnishment for a debt that is long past due, you could be losing as much as 25% of your paycheck until the debt is repaid. Many people facing garnishment feel they are trapped, with no way out. You do have options you can take to fight garnishment, even if you have already been garnished for some time now. You can protest, or object to the garnishment. You will need to file for a hearing in the court that levied the garnishment on you.

There are some basic steps to follow, although some steps will vary according to what state you live in. No creditor with the exception of the government, student loan debt and past due child support can garnish you without a court hearing. Even if a judgement has been levied on you, the creditor must go to court again and file papers to start the garnishment process. You do not need to be in court for the creditor to win a garnishment order on you.

If the court grants your creditor an order to garnish your wages, the marshal or sheriff will deliver the order to your employer. In most states you have the right to receive a written notice informing you that you will be garnished. You have the right to a hearing in court before your employer may begin with holding your income. This hearing is your chance to have the garnishment lowered, work out a payment plan or possibly even have the garnishment order thrown out altogether. The notice you will receive should be called a Notice of Garnishment of Personal Earnings, but this name might differ according to what state you reside in.

Once you receive your Notice of Garnishment of Personal Earnings, you must act very quickly, or your time window to act will close. The time to act will range from 30 days on the high end, to a mere 5 days in some states. If this window closes due to your failure to act, garnishment can and will begin. If you have any objections to your garnishment, you must beat this deadline.

To start your objection process you will need to file paperwork, in a written objection to any proposed wage garnishment. The notice that court sent you will outline the proper procedure to follow as far as how to start the written objection. You must send this to court, but you also must send a copy to your creditor who won judgement on you, in most states. Your objection must include the case number and case caption, and the reasons you are objecting. It must also be currently dated and contain your contact information, then you must sign the document. If you fail to do this correctly you may be waiving your right to fight the garnishment at a later date. If you are unsure of any of these steps, call a debt attorney, they are especially trained to deal with all manner of debt related legal maters.

Court will send you a hearing date. It is vital that you attend this hearing, if you want to protect your income. If you have not heard from the court with the date and time of your hearing, do contact the clerk of the court, as mistakes do happen. When you have your moment in court do not challenge the judgement itself, you will lose, you can however challenge the garnishment itself. You can argue for exemption or for relief by means of a lower percentage of garnishment. Bring with you to court any and all documents related to the case, and any documents that will support your claims. The judge will then render a decision which will take one of three forms, lowered garnishment, vacating the garnishment altogether, or upholding the garnishment if your objections have no merit.

This article just covers the basics and should not be taken as legal advice. If you need legal advice seek out a debt attorney. The finance team from direct signature loans covers a variety of finance and lending topics aimed at helping consumers save money and navigate their debts in 2015.

Texas Lenders In Spotlight With Regulations Quickly Changing For Loan Products

As any resident of Texas knows, Texas is loaded with lenders, many of whom offer personal loans. You can barely drive but a few minutes before seeing some sort of lender. Texas has more lenders than any other state. Yet that does not mean you are getting the best possible deal. Have you noticed that many of these lenders charge an effective APR of 400 percent or higher? In fact many of these lenders are nothing more than glorified payday loan lenders. If you are looking for a legitimate personal loan, with decent rates and flexible terms, you may have been finding your in true options rather limited in Texas. Which is why I recommend any Texan to take it to the next level and expand their options to include online lenders. Sure these lenders might not be based in Texas, but many of them will offer a better rate than you could hope to find locally.

If you have never dealt with an online lender and have some worries, never fear. We are going to provide a list of online lenders who have a solid reputation in regards to making personal loans to Texans. You deserve the best possible rate. Applying for these loans is rather easy, even more so since you can do so comfortably from your own home. Applying is also fairly fast, and with response times tending to be within 24 to 48 hours, with some lenders even beating the 24 hour mark. All you need to apply for one of these loans is to have some type of verifiable income and a social security number. Also many of the lenders on my list, outside of having a rock solid reputation and outstanding customer server, also allow you to check on what rate you qualify for, without ever affecting your FICO score. I highly recommend checking what rate offer you can receive from these lenders, since merely checking your rate carries no obligation and no risk. Here is our list of the top online lenders serving residents of Texas.

Texas Direct
Texas Direct has been in business for a long time, and is a part of a network that sometimes offers loans through Citigroup Inc. Not only do they take loan applications online, you can also visit a local branch in person. One key benefit of this lender is that you can choose what date of the month your payment is due, which makes it easier to balance your checkbook and finances. They also do not charge prepayment penalties, which comes in handy for those who like to wipe our debt as quickly as possible. While they offer unsecured personal loans, they also offer you the option to use you car as collateral, which has the benefit of lowering your interest rate. Loan amounts can be as low as $300 or as high as $15,000. For those who need small amounts this is a solid lender, but those needing $20,000 plus will need to look elsewhere. Learn more at http://www.texasdirectlenders.com/


Vouch

If your credit score is low, and you feel you have no other options than using one of the many payday lenders doting the landscape of your city think again. Vouch will offer you a loan with a credit score as low as 600, but there is a catch22 involved. This lender requires you to obtain what they call “Vouches” from either your friends or family. A Vouch will mean they take partial responsibility for your loan, but not full responsibility. It is much like cosigning a loan, with a few key differences. For one they are not on the hook for the whole loan. Secondly for any loan of $2000 or higher, every single vouch you obtain grants you a 1% interest discount. With enough vouches you can obtain an interest rate as low as 7.35%. Of course this rate assumes that you can get enough people who know you to vouch for you. This lender takes lending principles back to the day when loans were based on character, and by the judgement and trust of your peers. To learn more simply visit https://vouch.com/home

Prosper
If you take out loans often, as many Texans do, this might be just the right lender for you. Besides being able to check your interest rate without affecting your credit score, this lender often gives repeat borrowers a interest rate cut on subsequent loans. For those with excellent credit who meet certain standards set forth by prosper, you qualify for an AA rating and an interest rate as low as 5.99 percent. Loan amounts range from $2000 to $35,000. To learn more visit https://www.prosper.com

Six Financial Mistakes That are Illegal and Could Become Problematic

Most people would never consider that they might be a candidate, and no I am not talking about a candidate for the president of the United States, but rather a candidate for arrest due to committing a financial crime. Now when most of you think about financial crimes, you think about the big and well known ones such as loan fraud, check forging, ponzi schemes and counterfeiting to name a few. Yet you would be surprised at just how easy it is to fall into the felony category of financial crimes! There are 6 financial crimes that people do, every single day in fact. You might comfort yourself with saying things like “it’s no big deal” or “everyone’s doing it”, but it does not change the fact that the 6 financial habits below are highly illegal, and one day you may end up paying a hefty price for committing them.

Signing someone else’s name on a check
Signing anyone’s name on a check, other than your own is considered in most states to be forgery, and a felony at that. The only time you can sign another persons name on a check is when you have a power of attorney in effect. While most times this is done on behalf of a loved one for benign purposes, it is still illegal.

Using someone else’s social security number to get credit
This one would seem a rather obvious one. Yet there are many parents out there whose own credit is ruined who do just that, using their children’s social security numbers to game the system and obtain credit. This is identity theft and it is highly illegal.

Lying on a loan application
Anyone who is applying for a loan would be better off keeping it honest when it comes to their loan applications. Lying to inflate your income, debts or other factors in an attempt to get their loan approved are committing a crime, fraud. Lenders have ways and means to check your information, so you should be honest. If you do get approved after lying on a loan application, but then default, you can be charged with felony fraud after the fact.

Writing bad checks
Knowingly writing a check that you know will bounce is very much a crime. This can happen on accident, but that is why there is overdraft protection available. If you knowingly write bad checks, not only could you face criminal charges, you may also be banned from ever opening up a checking account again, or face extreme difficulty doing so.

Defacing U.S. currency
Many people are guilty of this crime. it is illegal to write on currency, deface it in any way, cut it, glue it, perforate it, or otherwise render U.S currency unusable. Accidental defacement does not count as being illegal, but rather deliberate defacement does. If your paper bills are torn, rather than glue them or tape them together, the law requires you submit them to the U.S treasury and they will mail you a new bill.

Tips For Students Once Your Finance and Loan Grace Period Expires

Everyone with a student loan loves the grace period. You do not have to worry about anything during that time and your finances usually are doing great during this time. The grace period is like an extended spring break when it comes to your student loans. Yet like every break the party has to end sometime and reality sets back in.

Once your grace period ends you need to begin paying on your loans. While no one gets excited tp pay back a student loan you must start to plan your repayments and start budgeting. Making a solid plan to repay your student loan will set you in the right direction when your student loans grace period ends.

When your grace period ends you might have options still if your job hunt has not gone according to your hopes and expectations given the state of the economy. You can always check to see weather or not you can further postpone your future payments. Some situations allow you to have a grace period longer than the traditional six months. For example if you return to school at least half-time before your grace period ends you have reset the clock so to speak, where you will get a new 6 month grace period once your attendance drops below half time or when you have finished your new courses. Active military personal also get an extension and receive a new 6 month grace period after your active service ends. You can also request deferment or forbearance on your loans.

Of course putting off your student loans will not make them disappear. There is no avoiding student loans, not even through bankruptcy. So you might want to put your best foot forward and just start dealing with the loan now. Not to mention that putting of your loan payments might just add more debt in some cases. Setting up auto payments is often the best way to go, and it can save you 0.25%. While 0.25% does not sound like much it quickly adds up over the lifetime of your loan, to qualify for this you need to go through a federal student loan service with auto payments set up.

You can opt to consolidate your student loans in the event that you have more than one student loan or a student loan with an interest rate that is to high for your liking. The drawback is once you consolidate you cannot undo it. Consolidation takes all of your student loans and rolls it into one debt, making managing your debt easier. Sometimes you can save money in your interest but the chief reason to go a loan consolidation is to simply keep better track of your finances and having to deal with only one loan instead of multiple loans.

If you want or need to reduce your interest rates the best option to go for is to refinance your student loans. You could also pay more than the fixed payment which over time will save you in interest due to paying the loan off much faster. Of course making substantially larger payments could add a temporary squeeze on your budget and finances it will get the loan taken care of faster. If you have more than one student loan my advice is to pay off the loan with the highest balance first. if you make extra payments you need to make sure to let your lender know to apply extra payments to the principal balance and not to future payments.

Common Mistakes Borrowers Make When Searching For Personal Loans

Millions of Americans take out loans every single year, in fact loans are a fact of life for most adults. Just buying a car or a house means you will likely need to take out a loan at some point. If you ever use a credit card that is a form of a loan as well. American borrow a lot, in fact the national U.S household debt stands at around $11.7 trillion according to the Federal Reserve.

Yet despite already knowing we need loans and that loans are a fact of life, many americans every year make costly mistakes when it comes to taking out a loan. There are lots of reasons that taking out a loan ends up not working out according to plan as anyone dealing with debt collection can attest to. There are 5 big mistakes you can make and one king mistake, which is if taking out the loan will ruin your marriage or cause you to go into debt collections you shouldn’t take the loan out to begin with.

The top commonly made mistake by borrowers is not reading the fine print and loan contracts. There is always vital information you should be aware of buried within this fine print. It spells out fees, and other things that you are signing up for. Sadly most people just sign and never take the time to read and understand what exactly it is that they are getting into. Common things buried into the fine print are balloon payments at the end of the loan, or written in where they can increase your rates, sell off your loan on a 3rd party market or other things which can cause major problems. If you are applying for a loan by all means do read the contract.

Taking out a loan for someone else is a huge mistake, even worse than co-signing. At least with co-signing you have the other person on the hook credit wise right along with you should they default. Yet when you take out a loan and give the money to someone else they can simply avoid paying you back and you alone are left on the hook to face debt collections or scramble to make the payments. Simply put if someone else needs a loan do not take out the loan for them, if you must help them out then by all means co-sign for them and spread out the responsibility of the loan two ways.

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The third big mistake I see borrowers do is taking out loans without looking at the long term picture. Your loan is going to be your responsibility for years to come. It is a long term responsibility and you should carefully consider your potential loans terms, rates and conditions before applying for a loan. You also need to consider how the repayment of the loan is going to effect you and your families budget since any loan will have an impact on your month to month living expenses. You want to avoid creating a new problem while trying to solve a current problem.

Paperwork errors and lack of preparation on the borrowers part is also a common mistake. Loans are not simply small forms that you just sign on the dotted line for. You are going to need things like your stay stub, you last tax return, a list of your monthly expenses like rent or mortgage payments. You should always ask the lender what they need before you make an appointment so that you can have everything you and your lender both need to go forward.