Important Considerations for People Opening Savings Accounts

So you’ve heard all about how important it is to save money. You’ve created a budget that allows you to set aside some of your income every pay period. You even do what you can to trim costs and to avoid making unnecessary purchases. Those are all good things. Keep doing them! Now the time has finally come to decide where to keep all that money you are actively saving. The old timers might have stuffed it under a mattress or put it in a coffee can in the kitchen. These methods are not exactly good for keeping your money safe or earning interest, though. It’s time to take the bull by the horns and open up your very own savings account.

This can be a little tricky, as there are more options today than there have ever been before. We have put together some helpful information to assist you in finding the best type of savings account and the best financial institution to trust with your precious savings dollars.

Don’t be Afraid to Compare and Contrast

As we mentioned, there are lots of options for people who are shopping around to open up a new savings account. Maybe you’ve been doing with the same bank for years, and you feel comfortable with that branch. That doesn’t mean you have to lock yourself into a subpar savings account for the sake of being a loyal customer. Every bank offers different rates on their standard savings accounts. You might find that your local bank offers just .01 percent interest, while another bank a little further from your home offers 1 percent. The obvious choice would be to go with the bank you may not be familiar with, but that is willing to grow your saved money at a faster rate. Take time and look into all of your options and several financial institutions before making your final decision.

Don’t Write off Online Banks

These days, we are seeing online banks that offer much higher rates than traditional, neighborhood branches. Some folks are concerned about security and safety when dealing with online banks. Make sure that you do your homework on any online bank, and choose one that is insured through FDIC. That gives your money the same kind of protection that it would get from any traditional brick-and-mortar bank.

Keep Savings Liquid

When you put your savings into a savings account or money market account that allows withdrawals, you get the kind of flexibility that you cannot get from a certificate of deposit (CD.) A CD has requirements for you to get locked into a rate for a period of time that can range from just a few months to several years. Being locked in like that is not always a good thing when the financial environment is conducive to rising interest rates, like it is right now. There is something to be said for diversifying your savings, and including a CD in your plans may be a good idea. However, as you are first getting started, it is better to use a traditional savings account that will allow you to keep your assets as liquid as possible for the foreseeable future.

Keep up the efforts to learn more about saving money and to put what you learn into action. Take your time and consider some of the information we have shared with you today. That way, you will be more prepared and able to ultimately choose the type of savings account that is right for your needs, and the right bank to help you grow your money over the years.

The Overall Essentials Of Receiving Bad Credit Loans

With the current economy, millions of people are on hard times. A large percentage of Americans are suffering financially, and are currently living paycheck-to-paycheck. These people have countless bills to pay. For many, the money they make just isn’t enough to cover all of their expenses. They’re constantly forced to make tough financial decisions. Do you make a payment on your credit card this month, or do you pay your electricity bill? These types of tough decisions can have drastic financial effects. For those living from paycheck-to-paycheck, it’s not uncommon to find many with bad credit. Thankfully, there are more bad credit loans becoming readily available to offer financial assistance.

Bad Credit Loans In A Nutshell

Bad credit loans are essentially loans created for those with poor credit. Most major lenders are very strict when providing loans to individuals with poor credit scores. A bad credit score is roughly any score that falls below 579. Most major lenders won’t bother to entertain the thought of lending to borrowers with any score less than 620. Although some major lenders will provide loans to those with slightly lower credit scores, the interest rate will be much higher than average.

If you have bad credit, and you need a loan, there are various lenders you can turn to. These lenders specialize in lending to riskier borrowers. Unfortunately, the majority of the terms provided aren’t in the borrower’s favor. Although many bad credit loans are unsecured, lenders will likely require extremely high interest rates.

What Can Bad Credit Loans Be Used For?

The great thing about bad credit loans is the fact that they can be used for nearly any purpose. For many people, these loans are used for emergency situations. Let’s say your car will be getting repaired for the next two days, but you need a car to get to work for the time being. A emergency loan can be used to purchase a rental car. You simply visit a lender, apply for a short term loan, and use that money to rent a car for the next two days.

Other people may simply use a bad credit loan for personal reasons. Personal reasons can include anything from buying groceries, paying your utility bill, buying a new pair of shoes, or anything you need. Maybe you have your eye on a brand new purse, but you won’t have the money for it until you get paid. In this case, a payday loan will likely come in handy.

Bad Credit And Short Term Loans

For those who have bad credit, and need money in a hurry, short term loans are going to be very beneficial to you. A short term loan is essentially a loan paid back in a very short amount of time. With loans from most major lenders, the loan term can range from a couple of months to several years. The length of time for short term loans is generally a couple of weeks. Thankfully, with short term loans bad credit isn’t a problem.

Short term loans are generally synonymous with payday loans. The terms of a payday loan require the borrower to pay back the loan on their next payday. Let’s say you get paid in two weeks, but you need a little extra money until then. A payday lender can directly deposit a short term loan into your bank account. However, in two weeks, your lender will withdraw from your bank account, the amount you borrowed plus interest. You can find payday loans online. Because of the terms, it’s usually required that you have a checking account and are currently employed. For a short term loan, you can expect to pay anywhere between 15% and 30% interest.img_back3

What To Consider Before Getting A Loan With Bad Credit:

Credit Score
Even though bad credit lenders are more lenient with borrowers, when it comes to credit history, you shouldn’t be surprised if they’re much more strict in other places. As stated before, because lenders are dealing with riskier clients, they have to compensate by charging higher interest rates. The amount of interest you pay will generally depend on your credit score. This is why knowing your credit score is very important. You can receive free credit reports online. You credit score can give you an indication of what to expect from your lender.

Erasing Debt
Before you apply for that loan to buy a new car, you may want to consider lowering your current debt. Your credit report documents all debts you currently owe. Erasing some of this debt can increase your credit score. A higher credit score means lower interest rates on your loan.

Paying Back Your Loan
Taking out a loan with the intent of avoiding repayment is a crime. This type of act is fraudulent, and will not only damage your credit even further, but could land you in jail. When taking out personal loans, you have to consider the entire amount that will be paid back. Although most unsecured loans require no collateral, you shouldn’t be tempted to borrow more than you have to.

There are millions of people currently living with bad credit. More and more lenders are taking note of the current economic conditions plaguing many Americans. If you have bad credit and need a loan, taking the above information into account can surely help.