The Christmas season builds up the desire of many people to give their family members the gifts that they want and allow them to enjoy the holidays. But, this requires extra funds. While this is not difficult for those who have good credit standing, those with bad ratings do not have so many options to turn to in this time of great want. Good thing that there are already many lending options today for those with bad credit especially in the form of Christmas loans.

A Christmas loan can be availed by anybody without the need to go through a credit check. This is because the lender of these loans does not consider the credit score of the loan applicant. What they look at is the current income of the

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borrower. If they see that the borrower has the potential to pay the loan using the salary he is currently earning, they will approve the loan even if the applicant has low credit ratings. The lender can even release the money in the quickest

possible time which makes it very convenient for early holiday preparations.

This type of loan can be availed for as long as the applicant meets certain requirements

like age and bank account. Since there are different lenders offering this loan, each one has their own terms and conditions. For this reason, it is essential for a borrower to carefully look at the many options before choosing their lender. The factors to consider are the affordability of terms and the amount of loan the lender provides to their borrowers. Also, the amount of interest must be taken into consideration because this determines the real cost of the loan.

Application of Christmas loans can be done online. A simple application must only be filled up completely and submitted to the lender. Once approved, the lender can release the money on the same day it is applied. Christmas loans are truly helpful for those who want extra cash for this very special season.

If you are one of those many people with no credit or bad credit, you surely have a difficult time in obtaining a loan or getting a credit card. Fortunately, there are different financial institutions providing credit cards that do not require a credit check. Although these credit cards usually charge higher interest and charges, they are a good way to improve your credit standing. But, if you are thinking of getting these cards, you should consider some facts before obtaining them.

Fact 1: Most of these cards are not credit cards

Most cards that do not require a credit check are really not credit cards. They are mostly prepaid debit cards. Since you have to deposit your money to be able to use the card, you are actually not borrowing anything from the card company. This is the reason why there is no risk in taking them. If you are having a difficult time controlling your spending, then this is the right option for you.

Fact 2: Your card providers report to the credit bureaus

Whether you have a low limit or a prepaid debit card, there is a great chance that your transactions will be accounted for by the major credit agencies. Because of this, the use of the cards is a good way to enhance your credit score. Moreover, there are cards that give you a small loan that you can pay in full for 12 months. If you can pay on time, your scores will be greatly improved. At the same time, you can show the lenders that you have already changed your financial behavior.

Fact 3: Credit Cards with No-Credit Check Have High APRs

One of the attractive features of a prepaid or loan card compared to a credit card is that it does not require a credit check. But, most of these cards charge high interest rates. This is the card company’s way of safeguarding themselves against the chance that you will be in more debt because of your previous bad rating.

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Business Aspects to Consider in a Financial Review

If you are a business owner, your company is as important as your health. Because of this, it is also essential that you conduct a regular review with a reliable banker of your company’s financial situation as religiously as you visit the doctor for medical consultation.

Reviews of your business’ finances are important for your company especially with the constant changes and developments in a business. This will ensure that your business has the right services and products for your customers. It will also help you making the decision to take a new loan or credit line for expansion. It is also beneficial before making repairs or buying new equipment. Business improvements are a great way to keep attracting both new and old customers.

But, what are some of the aspects that you must look at when conducting a financial review? Here are the main ones:

1. Loans and Credit Lines
Regardless if your business needs a new loan or not, it is still best to ask the bank of the different loan types and credit lines they can offer. Find out if there are loans specifically for purchasing equipment, real estate, leases or construction. Also, if you own a small business, you may want to find out if it provides Small Business Association loans because this can free up cash flow if you are eligible. Establishing a credit line is also a good business practice.

2. Convenience Banking
Determine if the bank has an online banking system that is easy to use, safe and convenient. Also, find out if the bank’s system can meet your business’ daily banking transactions. Familiarize yourself with the website to know the types of programs they provide.

3. Managing Treasury
You must review financial statements with your banker to know the possible improvements that you can do with your business and to find out where you can save money. You may also want to check the kinds of treasury management services the bank provides like remote deposit, check imaging, fraud prevention or lock box.

4. Business Relationship with Bank
Finally, evaluate your relationship with the bank. Ask yourself if the bank knows your goals and understands your business. Think about the type of relationship you have with the bank if you can consider it as a good one. Assess if you can trust them with your business. Choose a banker that gives time to know your business and understand it thoroughly.

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Bank of America’s Inaccurate Reporting of its Residential Mortgage Loan

Henry Blodget’s worries regarding the quality of Bank of America’s mortgage loans show several interesting details. However, he seems to be looking in an incorrect place.

According to a Blodget’s statement in “The Bomb That Might Blow A Hole In Bank Of America,” a Business Insider piece, the biggest bank of the country only accounted $19 billion worth of residential mortgage loans that are deemed to be nonperforming. This totals to only 5% of the entire residential mortgages on its balance sheet and a $21 billion worth of loss reserves in loans.

To begin with, the detail in the story of the $21 billion used to pay for expected losses from potentially bad loans is inaccurate. As of June 30, the bank reported a total of $37.3 billion for loan allowances and rent losses. This can be seen on page 129 of Bank of America’s 10-Q reporting with the Securities and Exchange Commission.

In terms of the chances that there was under-reporting of problem mortgages, the story given was a real mistake because the reported 5% also accounted for Bank of America’s mortgage loans that were obtained from Countrywide. Jerry Dubrowski, spokesman of Bank of America, established that they previously lowered the loans of Countrywide to an acceptable value.

Excluding the loans of Countrywide, residential mortgages that are fully-insured and loans that have already been lowered to a fair value, the Banks total mortgage loan amounts to $169.869 billion. This accounts to one out of four of the mortgage loans included in its main portfolio as of the 30th of June. $16.726 billion of this amount or 9.84% are categorized as nonperforming loans.

Bank of America divides the Countywide loans to show the past write-downs on loans considered as “purchased credit impaired.” This was also done in order to better represent the credit risk in the loan portfolio of the residential mortgage.

Blodget also says that about 35% of the bank’s residential real-estate loans amounting to $413 billion might be in trouble in the future. This is according to an unnamed analyst’s scrutiny of the securitized mortgage delinquencies in the entire industry.

However, according to Rochdale Securities’ Richard Bove, the idea that the bank’s credit quality in its self-originated core portfolio is weak as the loan portfolio from the wholesale lending operations of Countrywide is already beyond the imagination.

Related articles

• US Bank Sues Bank of America for $1.75 Billion Over Countrywide Loans (johnmurphyreports.com)
• Barclays, Bank of America Are Sued by FHFA Over Mortgage-Backed Securities – Bloomberg (news.google.com)

It’s great that you are looking for the best way to repay a student loan. That means that you are a responsible person and want to do the right thing! Let’s take a look at loan repayments when it comes to student loans.

Two Ways to Repay a Student Loan
Majority of Americans have been struggling to settle different types of loans and debts such as mortgage, home-equity, credit card and vehicle in the last few years. But, these are not the only loans that Americans are having problems with. According to the Federal Reserve Bank of New York, student loans are also significantly increasing. Moody’s Analytics support this information by saying that there is no improvement in the rates of delinquency of student loans and the future outlook for borrowers are troublesome. If you are one of the many individuals who are experiencing challenges in settling your student loan, do not be tempted to ignore them. Take note that not paying your loan will have a huge negative impact on your future paycheck, tax refund and credit rating. Here are two ways to repay your student loan.

Serve an organization that can help you settle your debt.
There are many organizations that you can work for to obtain loan forgiveness. These include the United States Military, AmeriCorps and Teach America. Also, full-time public sector workers such as police officers, public school teachers and public defenders are qualified to have their debt balances cancelled after making 120 payments on or beyond October 1, 2007.

Seek a leniency application
If you took a Federal Stafford loan, you are allowed to defer your repayment up to a maximum of three years under the condition that you are unemployed, you are going through difficult economic challenges or you pursued grad school. You can also request forbearance from your lender.
Aside from suspending your payment up to three years, you can also make small payments for your federal loans in the first couple of years of your payment period. Moreover, you can also ask for an extension of your repayment term. Another option is to qualify for a repayment plan that is based on your income. This plan lets you link your income and your payment.

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• Student Loan Options in a Tight Credit Market (education.com)
• A Quick Guide to Student Loans (askthemoneycoach.com)
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