Collingswood Remains at Junk Status; Moody Gives Chance for Upgrading

Moody gives hope this week to Collingswood’s bond credit rating to be improved. The agency has retained Collingswood’s Ba1 (junk status). However, from a “negative” rating, there is a moderate upward step for the borough’s credit rating to “uncertain.”, Moody said.

It is very difficult to loan money if the credit rating is poor.

Moody did a massive downgrading of Collingswood in September of 2011. Despite protests from the officials of borough, the rating was maintained up to November after performing a review. One important factor taken into account by Moody in giving the borough rating was the $28 million outstanding long term and general obligation debt. But Moody upgraded Collingswood’s rating after signing a settlement deal that it will refinance the $4.5 million debt linked to project which involved Lumberyard construction. Collingswood is the guarantor in this project according to Moody.

This unbudgeted refinancing settlement exceeds the fiscal 2011 unaudited year-end Fund balance amounting to $1.05 million. This unbudgeted payment also reflects 26% of expenditure which is to be added to the current debt service which is 14.4% of expenditures.

The fiscal budget of Collingswood for 2012 will be decided at the meeting of commissioners on April 2012. According to Moody’s report, the borough has several alternatives to meet LumberYard debt obligation. It can choose between lower risk but more costly option or more risk but cheaper option.

Collingswood should list the advantages and disadvantages of the different options and choose the best option to achieve its goal to pay back the $4.5 million financial obligation and to improve its rating. In other words if the financial obligation is paid in full, the reserves is increased and good market access with calculated risk, will improve the rating. On the contrary, if it fails to pay the debt the rating will further go down. Other factors that will cause the further downgrading are the decreasing tax base, insufficient financial reserves and ineffective market access.

Can I Get an Installment Loan for Bad Credit

An installment loan is generally considered as a standard loan. If you obtain this kind of loan there is a permanent degree of installments required for reimbursement. Normally, interest rates are used monthly depending on the annual percentage rate of the loan. Therefore, each installment can be an amount of principle plus the interest rate. The combination of principle and interest rate modifies as principle is given back, yet all payments are set in the same quantity. So for instance, you might pay $100 principle and $300 interest for your first payment, but pay $300 principle and $100 interest more into the loan; however the payment in installment basis is the same per month.

How do we have an installment loan? These loans are commonly provided by many standard loan providers including banks or finance companies. A good example of such type of loan is the car loan service. Maybe you have spotted ads for 36 month or 48 month financing for cars. This means that when you repay the borrowed amount within the said rate you will be able to settle the whole quantity plus the interest of the loan.

In order to get these kinds of financial loans you will usually need to verify your credit history by using your credit report and prove that you have the ability to repay the borrowed amount according to your income and your financial debt to income percentage. It’s not necessary to worry about having a bad credit score; there are also a lot of loan lenders available to give you such type of loan even if you have a bad credit story.

There are definite authorization starting to get these refinancing options, a specific credit standing in a certain financial institution for car loans, a different one for mortgage loans, and so on. There isn’t a lot of complaisance for this, so you need to maintain your credit rating as good as you can to improve the options you might have in terms of getting the loans.

What Are the Best Bad Credit Installment Loan Finance Companies

With a large number of web-based loan companies giving installment loans, obtaining an installment loan company isn’t hard and easy when you have a little knowledge in using a computer and some other internet resources. Ever since the economic downturn takes place, the financing industry has been increasing at a rapid speed, especially in United States. With an increasing number of US citizens turning to short term installment loans to hold over financial problems, the financial community has credited this as a fantastic opportunity to obtain fast money at the expense of the loan takers.

It is very important that you seek for a genuine installment loan finance company to obtain a more competitive rate as well as hassle-free conditions that align with the state laws. One proven way you can easily simplify the exercise is by searching for websites that provide you with rates from a variety of loan providers on a single page. Such sites are sometimes handled with loan agents and normally assist only legitimate loan providers since these companies have a good reputation to maintain.

Getting an installment loan provider and getting approved resembles any other payday cash advance loan and may be made through the conveniences of your house in a short period of time. Any sort of loan service you decide on will need you to definitely be at least 18 years old, have very constant earnings and provide a savings account. As soon as this information is correctly given to the provider, you will definitely be authorized for the loan within a few minutes plus your bank account is credited often on the same day or in the next day.

Most lenders don’t insist on a credit check because the loan is guaranteed by your next pay check and repayable within 14 days or maybe in the next salary whichever is faster. Credit seekers with good credit do have less-expensive options which are the reason why the credit is waived for sub prime credit seekers.

An installment loan finance company is the most appropriate choice for borrowers that are in search of a small amount of money and have strong reasons to go with this expensive method of borrowing. One way credit seekers could limit the effect of interest and financial charges assessed by this loan service is by using the credit amount to repay another financial debt or perhaps a bill that might anyway draw in penal fees whenever the payment is overdue.

With the historically low rates, different financial institutions such as mortgage servicers, credit unions and banks are doing everything to encourage you to refinance. Before choosing one, make sure to know how long it will take.

Wells Fargo is sending out solicitations through mail showing the difference in their customers’ payments when they decide to refinance to a lower rate and shorter term loan.

Chase is going a little further than Wells Fargo. They are providing their customers with one day air informing their customer that they promise no closing costs and no appraisal for refinancing.

Advantis Credit Union offers their clients a 10-year mortgage that has a low interest rate of 3.29%. It has already given out 200 of this loan type since the month of January.

OSU Federal Credit Union has a raffle program that allows anyone who refinances their home, credit card or vehicle to join. The program will be giving out three cash prizes amounting to $1000 each.

Mentioning these different solicitations does not mean that they are right for you. Make sure that you compare the balance of your present loan and the overall interest payments with any possible cost of refinancing such as closing costs, interest payments and appraisal fee for the entire duration of the loan.

Even if there are long-term advantages of paying your debt in full, do not disregard the impact of a higher payment in your cash flow every month. You do not want to be forced in a cash crunch that will push you to sell your home in a struggling housing market.

Moreover, check around as much as you can. In the past year, many customers of major banks complained that their refinancing was slow. By looking at all your possible options, you can save money on lower fees and rates and you can find a lender that can quickly approve your loan.

Related articles

• Refinancing mortgages could get easier (sfgate.com)
• Lack of equity can derail attempt to refinance mortgage (thefairclothteam.wordpress.com)

Lawmakers are thinking of ways to help those who are struggling with high rates of interest.

One of the ways that they are working on is the Helping Responsible Homeowners Act.

This legislation was already submitted to the senate committee in the earlier months of the present year.

If it is approved, it can truly help those who are having challenges with their home mortgage and could even give them a good rate of interest.

As a loan officer in Arvest Bank, the low rates of interest at the moment have kept realtor Drew Stoner busy.

He said that a lot of individuals and families are currently refinancing and their bank is not rejecting those whose credit qualifies them for a refinance. He added that even those who have been unlucky in the past have options at the moment. This allows borrowers to refinance despite being at 125% of their loan’s property value.

However, those who have mortgages under Freddie Mac or Fannie Mae may not be able to take advantage of the historically low rates of interest.

Lawmakers are thinking the bill over to lighten the restrictions on homeowners under Fannie Mae and Freddie Mac. Most of these homeowners owe more on their mortgages relative to the total worth of their homes.

According to realtor Tammie Tucker, homeowners who have made on time payments must maintain their good standing. They must not allow their credit to get lower and ensure that their scores are in proper order.

If the bill passes the lawmakers, those struggling with their mortgages will be relieved with the lower rates of interest that they will get. For instance, a mortgage worth $150,000 will give them around $1,100 annual savings.

According to lawmakers, an additional $2.2 billion every year will be added to the economy if the bill is enacted.

But, there is also a concern that the bill’s approval will affect the Midwest. However, when all things are considered, the bill will help generate savings through refinancing.