Telecommunication networks – Vostoktelecom http://vostoktelecom.ru/ Fri, 04 Nov 2022 15:01:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://vostoktelecom.ru/wp-content/uploads/2021/10/icon-24.png Telecommunication networks – Vostoktelecom http://vostoktelecom.ru/ 32 32 How to get cash from an ATM with a credit card https://vostoktelecom.ru/how-to-get-cash-from-an-atm-with-a-credit-card/ Fri, 04 Nov 2022 08:00:22 +0000 https://vostoktelecom.ru/how-to-get-cash-from-an-atm-with-a-credit-card/ For most credit card users, being able to withdraw cash from an ATM seems like a revelation. After all, who doesn’t want to be able to borrow cash from their credit card every once in a while when the bank account is running low on cash? But withdrawing cash from an ATM using your credit […]]]>

For most credit card users, being able to withdraw cash from an ATM seems like a revelation. After all, who doesn’t want to be able to borrow cash from their credit card every once in a while when the bank account is running low on cash?

But withdrawing cash from an ATM using your credit card isn’t something you should get used to. The main reason? Banks see this as risky behavior, and aside from costing you big bucks in interest payments and fees, getting cash advances on a regular basis can also hurt your credit score. We have put together in detail what you need to know about using your credit card at ATMs and why cash advances from your credit card issuer should only be used in emergencies.

Can you use a credit card to get cash from an ATM?

Yes, you can use a credit card to withdraw cash from an ATM. Unlike withdrawing money from a debit account, withdrawing cash from your credit card is tantamount to receiving a cash advance — which comes with its own unique costs, including higher interest rates and increased fees. While many credit cards allow you to withdraw cash from an ATM, don’t make it a habit.

Because credit card cash advances are usually transferred to a different (and much smaller) line of credit than your other credit card purchases, they can also disproportionately affect your credit score. All of these circumstances lead banks to view cash advances as risky behavior, which is why withdrawing cash from an ATM using your credit card is best reserved as a worst-case scenario, and not just something you do instead of using your debit card.

What is a cash advance?

A cash advance is a way to borrow cash against your line of credit. Not all credit card companies offer cash advances, but many do. The most important thing to keep in mind is that cash advances are often treated differently than regular credit card use and they usually cost more than a regular ATM transaction. And there will be a cash advance limit.

For example, many cash advances come with higher interest rates (also called cash advance APRs), which can be as high as 25-30%. This interest is also usually credited to your account immediately and without the grace period of 20 days that is usual with other credit card transactions. You should study this information more closely on your credit card statement.

This means that even if you pay off your credit card bill in full every month, using cash advances is almost a guarantee that you’ll owe a hefty percentage of interest on the cash you’ve withdrawn during that billing cycle, which translates easily credit card debt.

Added to this is the high cash advance APR, a credit card company often charges a cash advance fee at the time of withdrawal. This can be a $5-10 flare rate fee or a percentage of the cash amount you withdraw, whichever is higher. You may also have to pay an ATM surcharge if you advance the cash from a bank that is not also your card issuer.

Aside from all the fees, it’s important to note that cash advances usually come from a different line of credit than your other credit card purchases. This line of credit is typically much smaller, which means that even a relatively insignificant credit card cash advance can have a much larger impact on your credit utilization ratio, and in turn negatively impact yours credit-worthiness.

Most banks see you as a greater credit risk after making a cash advance, as they’re generally only used as a last resort when someone needs cash but can’t afford to withdraw it from their checking account.

How to use your credit card at the ATM

If you want to withdraw money from an ATM with your credit card, follow these steps:

  1. Insert your credit card into the ATM
  2. Enter your credit card PIN – make sure you have one before beginning the process.
  3. Choose the “Cash Withdraw” or “Cash Advance” option
  4. Select the “Credit” option (when prompted to choose between Check, Debit, or Credit)
  5. Enter the amount of cash you wish to withdraw
  6. Accept any associated fees associated with the transaction
  7. Follow all the on-screen instructions to complete the transaction, and don’t forget to take cash and the receipt with you.

Using your credit card at an ATM is not much different than using a debit card. Simply follow all the instructions at the machine to withdraw cash, then accept the additional fees or charges and collect your cash and receipt.

What to consider before taking a cash advance

Higher interest rates, cash advance fees, and negative effects on your credit rating are the top three consequences of a cash advance on credit.

Higher interest rates

Before you take out a cash advance, there are a few things you should consider. The first of these are the higher ones Interest charges. Since most cash advances come with an APR of 20-30% (with no grace period), you’re almost guaranteed to pay it. This means that a $500 cash advance could cost you an additional $150 in interest.

Cash Advance Fees

Along with the increased interest rates, many banks charge a fee that is either a flat $5 to $10 or a percentage of your withdrawal amount. Be sure to read the fine print and understand what fees you will be charged before making a cash advance.

Negative impact on creditworthiness

Because cash advances are typically drawn from a different, smaller line of credit than your credit card purchases, you can increase your credit utilization rate relatively quickly, which can lead to a deterioration in your credit rating.

In general, most banks consider those who use cash advances to be at greater credit risk because they are likely to use the funds to cover an expense that requires cash but cannot afford to pay with their debit card or checking account. All of these things can negatively impact your credit score and make it harder to apply for other forms of credit in the future.

Alternatives to cash advance

If you’re considering taking out a cash advance, it’s worth exploring other options that may cost less and can also help avoid hurting your credit score. Here are a few such alternatives to cash advances.

debit card

If you need cash and can afford to withdraw it from your account, a debit card is by far the best option. You can use your debit card at an ATM or bank to quickly withdraw the amount of cash you need or even pay online.

You can also use the checking account linked to your debit card to either deposit or cash a check and then use that money to make a purchase or payment.

Peer to peer payment apps

With apps like Venmo or PayPal (among others), you can pay back a friend or family member who also uses the app without having to take out a cash advance. Use these apps to request payments from friends who owe you money, or to send a payment for anything from a meal to shared living expenses like rent or utilities.

private loan

For those who need larger amounts of cash and cannot afford to withdraw that amount from their checking account, consider a private loan. With personal loans, you can access a lump sum immediately upon approval, without the higher interest rates (most personal loans have interest rates around 10%) or the potential damage to your credit score. Most personal loans also have a more reasonable grace period and repayment schedule than cash advances.

For emergencies only

While it might be tempting to use cash advances instead of other payment methods, it really is something best saved for emergencies. Due to the higher interest rates, fees, and potential damage to your credit score, you should use an alternative payment method such as a debit card or even a personal loan whenever possible to avoid unexpected fees and interest payments.

Contributor Larissa Runkle writes frequently for The Penny Hoarder on finance, real estate and lifestyle topics.


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When the Fed hikes interest rates, who gets hurt? https://vostoktelecom.ru/when-the-fed-hikes-interest-rates-who-gets-hurt/ Mon, 31 Oct 2022 17:45:26 +0000 https://vostoktelecom.ru/when-the-fed-hikes-interest-rates-who-gets-hurt/ The Federal Reserve is expected to hike interest rates by 75 basis points for the fourth consecutive day on Wednesday in a bid to cool a hot economy. Federal Reserve Chair Jerome Powell said in September he wished “there was a painless way” to cut interest rates inflation. “There isn’t,” he said. So who’s gonna […]]]>

The Federal Reserve is expected to hike interest rates by 75 basis points for the fourth consecutive day on Wednesday in a bid to cool a hot economy.

Federal Reserve Chair Jerome Powell said in September he wished “there was a painless way” to cut interest rates inflation. “There isn’t,” he said.

So who’s gonna feel the pain?

borrower

In order to lower the overall prices, the federal reserve increases interest rates. The intended effect is to make borrowing more expensive. This may seem counterintuitive: what’s the point of fighting inflation if not reducing consumer costs? But when credit prices rise, consumers become less likely to borrow and therefore spend less. And when consumer spending falls, it puts downward pressure on prices throughout the economy.

The Fed’s approach “has the delicacy of a dull axe,” says Kathryn Edwards, an economist and professor at the Pardee RAND Graduate School. But raising credit prices is one of the only tools the Fed has to fight inflation.

Home loans are expected to become more expensive (more on that below), but borrowers can also expect higher interest rates on personal loans and auto loans. Small business owners may find it harder to get affordable credit, and that could dampen new businesses, says Brad Hershbein, senior economist and associate research director at the WE UpJohn Institute for Employment Research. And the most vulnerable borrowers could also face even higher than usual payday loan costs.

The Fed’s approach “has the delicacy of a dull axe.”

local expert

Kathryn Edwards | Economist and Professor at Pardee RAND Graduate School

There are signs that borrowers are taking on more debt than usual. Average personal loan debt is $10,344 in the second quarter of 2022, credit bureau TransUnion found — a 20% increase in average debt since the same point in 2019. Rising interest rates coupled with a vehicle shortage have sent the average car into the Loan balance skyrocketed to more than $20,000, according to July 2022 data from credit bureau Experian.

The combination of higher balances and higher interest rates is making it harder for borrowers to repay: default rates for personal loans hit 3.37% in the second quarter of 2022, data from TransUnion shows. It is the highest crime rate since the pandemic began.

High delinquency rates will likely result in more borrowers defaulting on their debts, leading to a variety of negative consequences such as collection costs, credit damage, property confiscation, and garnished wages.

Home buyers and renters

Mortgage rates on a 30-year loan rose to more than 7% last week, the highest in 20 years, according to Freddie Mac, a government-sponsored company that provides capital to the mortgage market.

Another worrying sign: Despite their contribution to the housing market crash of 2008, adjustable rate mortgages have once again become popular with homebuyers trying to avoid high fixed interest rates. Borrowers who accept these types of loans risk making unpayable payments if interest rates continue to rise.

The cost of mortgages will reduce potential borrowers’ ability to buy homes, one of the key ways people build wealth, says Edwards. And the fallout will hit potential first-time home buyers hardest. First-time home buyers are disproportionately young and black of all ages.

Data analyzed by the National Association of Realtors shows that blacks have the lowest homeownership rates among racial/ethnic groups. The analysis found that black applicants are twice as likely to be denied a mortgage as white applicants.

Meanwhile, rents are showing signs of falling since hitting highs earlier this year, according to real estate firm Redfin. But experts say the downward trajectory could reverse as potential first-time homebuyers remain in the rental market.

Landlords with adjustable-rate mortgages could also raise rents to offset their increased borrowing costs, Hershbein says.

“That could affect economically weaker people,” he says.

retirees and near-retirees

As of 2019, the majority of baby boomers were still employed. Then the pandemic hit, forcing many boomers into early retirement.

Those who have retired, particularly low-income retirees, are somewhat sheltered from rising prices: the most recent 8.7% cost-of-living adjustment for Social Security recipients was the largest increase in 40 years.

But it may not be enough to combat the aftermath of rate hikes.

“Many older, low-income workers have a strong incentive to stop working at age 62 because of the Social Security crisis, while higher-income workers are likely to work much longer,” says Hershbein. In this way, the cost-of-living adjustment could ultimately reduce the pension income of low earners in the long term.

Rate hikes could make it harder for older Americans to retire and for current retirees to stay in retirement. Here’s why:

  • Drops in 401(k)s and IRAs. Rate hikes usually lead to falling stocks (the S&P 500 is down about 20% from its 2022 peak), which can wreak havoc on retirement accounts.

  • Increased house costs. Retirees with homeowners and adjustable rate mortgages face higher costs.

  • Difficulty downsizing. Retirees looking to sell their homes may have a harder time because of higher interest rates on new mortgages. Likewise, trying to buy a smaller home or entering a costly rental market could be more expensive.

Most retirees have a fixed income, which means higher costs for goods and services make it difficult for them to keep up. That alone could force retirees back into the labor market, but if unemployment rises, re-entering the labor market could be difficult.

low earners and the unemployed

So far, rate hikes have not caused a recession. And the US continues to have some of the lowest unemployment figures in history. But all of that could change if the Fed continues to hike rates.

“For working Americans, who are already feeling the pressure of inflation, losing jobs will make it much worse,” wrote U.S. Senator Sherrod Brown, D-Ohio, chair of the Banking, Housing and Urban Affairs Committee, in a letter to Powell. “We cannot risk the livelihoods of millions of Americans who cannot afford it.”

Unemployment insurance claims aren’t the best barometer of an impending recession, Edwards and Hershbein agree. Hershbein says to keep an eye on the speed and downward trend in churn rates and job openings.

Higher churn rates signal workers’ ability to move from job to job, a sign of a healthy labor market. A sudden drop in exit rates can be a bad sign, but if they come down gradually, the Fed may just be able to get inflation under control without triggering a recession.

“Even though the Fed is moving as aggressively as it has, it hasn’t crashed yet, but what if they get that calibration wrong?” says Herschbein. “It’s like a pot of boiling water: it looks like it’s going to simmer just fine, then you turn away and the whole thing boils over. That can happen so quickly. That 75-point raise didn’t make a difference, but the next 75-point raise might do it.”

Unemployment during a recession tends to exacerbate ongoing labor market problems. Namely, the highest unemployment rates fall among low-wage and part-time workers, as well as black workers at all wage levels.

But Edwards says it’s possible that in the event of a recession, employers will be less inclined to downsize than they were during the COVID crash, when 22 million Americans lost their jobs.

“After struggling to rehire those 22 million, they feel like their workforce is less expendable,” says Edwards. “They may prefer not to fire people if they don’t have to.”

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Why SOFI (NASDAQ:SOFI) Stock Is Worth Considering Ahead of Earnings https://vostoktelecom.ru/why-sofi-nasdaqsofi-stock-is-worth-considering-ahead-of-earnings/ Sat, 29 Oct 2022 00:45:27 +0000 https://vostoktelecom.ru/why-sofi-nasdaqsofi-stock-is-worth-considering-ahead-of-earnings/ In all probability, SoFi (NASDAQ:SOFI) should post an earnings surprise in the third quarter. The need for personal loans keeps increasing, especially during tough economic times when people usually need additional funds. Credit card companies are becoming more aggressive with their interest rates, so people have turned to personal loans instead. SoFi has been able […]]]>

In all probability, SoFi (NASDAQ:SOFI) should post an earnings surprise in the third quarter. The need for personal loans keeps increasing, especially during tough economic times when people usually need additional funds. Credit card companies are becoming more aggressive with their interest rates, so people have turned to personal loans instead. SoFi has been able to capitalize on this trend because it offers both consumer financial services and lending. The future looks bright for the company. As such, we are bullish on SOFI stocks.

Investors are hoping that strong bank profits hint at the resilience of the economy. Investor optimism has been at an all-time high of late, with most reacting positively to the latest financial results from leading banks. This is great news for SOFI investors who were hoping that strong bank earnings would indicate that the financial sector is poised for a comeback.

SoFi’s stock is down over 65% year-to-date, but it could see a recovery soon. There’s only two months left of this year and if it can dish out an earnings surprise, we could see the price rally again. It’s trading at a beta of around 2.0, suggesting it’s twice as volatile as the broader market. Therefore, investing in them comes with a fair share of risk.

However, it presents itself as an excellent pre-win bet. It is currently trading at around 3.5 times forward sales, which is significantly lower compared to a few months ago.

SoFi taps into the growing demand for personal loans

The financial services offered by SoFi aim to help consumers with their daily needs. The company has served millions of customers through high-yielding checking and savings accounts, credit cards, brokerage services and more. In addition, it offers credit products that can be approved faster and on more favorable terms thanks to its extensive database. In essence, SoFi is a financial one-stop shop.

In recent quarters, the company has beaten expectations. With third quarter results forthcoming, it is plausible to expect another solid result on the back of a robust personal credit trend that continues to grow steadily. SoFi’s expansion into new markets and its ability to offer a personalized service will make it easier to reach new customers.

Additionally, the company’s strong balance sheet is a major asset for the company. It has a whopping $707 million in cash, which gives it plenty of room to grow its business at a robust pace for the foreseeable future. Even more encouraging is that losses have improved significantly.

The company reported a loss of $0.26 per share in the second quarter of 2021, which improved 53.8% to a loss of $0.12 per share in the second quarter of this year. It is possible that the result will be positive by next year. Also, SoFi ended the quarter with 4.3 million members, a 69% increase over the prior-year period.

As such, we are incredibly positive about the future growth and success of the company. Its losses are unlikely to hamper its plans going forward, and with student loan issuance improving dramatically over the next year, SOFI stock could rally sharply.

What is the price target for SoFi stock?

As for Wall Street, SOFI stock retains a consensus rating of Moderate Buy based on six buy, three hold and zero sell assigned over the past three months. The average SOFI price target is $8.25, which means a 51.38% upside potential. Analyst price targets range from a low of $7 per share to a high of $10 per share.

Conclusion: SOFI stock is likely to beat gains

The company is expected to report its third-quarter results soon, and investors will have a better understanding of where it stands. In all likelihood, however, it should record another solid hit on both the top and bottom.

The surge in personal credit is being fueled by consumers seeking debt consolidation and easily accessible funds. SoFi has capitalized on this opportunity by increasing its origination rate faster than its peers.

Stocks are on an uptrend following recent bank gains, but investors should also brace for more volatility. The Federal Reserve is set to raise interest rates at its upcoming meetings over the next few months as inflation remains incredibly high.

Therefore, the volatility is given in the current market scenario. However, this does not detract from the quality of SoFi and a long-term bull case. Investors should take a long-term view and buy the stock while it’s trading near its 52-week low.

disclosure

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Cathie Wood Passed On SoFi, SoftBank Sold Out – Are The Bulls Missing Something? (NASDAQ:SOFI) https://vostoktelecom.ru/cathie-wood-passed-on-sofi-softbank-sold-out-are-the-bulls-missing-something-nasdaqsofi/ Mon, 17 Oct 2022 02:29:00 +0000 https://vostoktelecom.ru/cathie-wood-passed-on-sofi-softbank-sold-out-are-the-bulls-missing-something-nasdaqsofi/ News from Carl Court/Getty Images While it’s popular now to criticize Cathie Wood, the fund manager is popular with the public ARK Innovation ETF (ARKK), she was undoubtedly one of the most formative figures of the brief investment period during the pandemic. In retrospect, this period has now expired defined by the abundance of euphoric […]]]>

News from Carl Court/Getty Images

While it’s popular now to criticize Cathie Wood, the fund manager is popular with the public ARK Innovation ETF (ARKK), she was undoubtedly one of the most formative figures of the brief investment period during the pandemic. In retrospect, this period has now expired defined by the abundance of euphoric animal spirits on stock market valuations. That would take SoFi’s stock to just over $25 per common share, a level that now seems so alien and high to current shareholders. But neither the ARK Innovation ETF, their most prominent fund, nor the more relevant ARK Fintech Innovation (ARKF) features SoFi (NASDAQ:SOFI). Why is that?

In fact, both Coinbase (COIN) and Block (SQ) occur. But Cathie’s mandate to invest in “disruptive innovative companies” has ruled out SoFi. To be clear here, this is positive for current SoFi shareholders. While I’ll refrain from criticizing ARKF’s performance, SoFi’s removal from the fund perhaps reflects one of the longer-term bulls for the company.

SoFi business areas

SoFi

SoFi’s business segments are not inherently risky “sexy” lines of business that draw the eyes of fast and loose traders looking for the next momentum-driven top. Personal Loans, Real Banking, Refinancing and Insurance. The company’s businesses are in established industries that have always been in demand, have little regulatory scrutiny, and will be needed long into the future. Households will need banking ten years from now, but the same can’t be said for certain of some of the industries Ark supports.

Stable companies in an ecosystem for growth

There’s a certainty that comes with such businesses, as they’re unlikely to be hit by catastrophic industry collapse or regulatory risk. The disintegration of Bitcoin and the broader crypto industry, for example, has caused Coinbase’s revenue to fall nearly 64% year over year in the most recent reporting quarter. SoFi doesn’t depend on a single “disruptive” and volatile industry for the majority of its revenue. This has meant that the company was able to increase its sales in the most recent reporting quarter by almost 54% year-on-year, despite the general economic and stock market chaos since the beginning of the year. SoFi’s business operations ecosystem includes a diversified number of stable industries that have been around for centuries, long before the US was even founded as a country. These aren’t inherently sexy, but they are structurally coherent and will always be in demand. SoFis first acquisition of Golden Pacific Bancorp and the successful move to obtain a traditional banking license solidifies its position.

The company remains one of the few fintech companies after the Great Financial Crisis after 2008 to swap its non-bank lender moniker for a banking license, essentially joining the hat of the same group it originally set out to compete with. Not a Bad Move, Stable and Boring JPMorgan Chase (JPM) reported sales growth of 10.4% with earnings beating consensus estimates. This rush for stability is attracting a more stable investor base, diminishing SoFi’s long-term investment thesis and increasing the likelihood that the company will eventually achieve steady profitability.

Not every investment has to be disruptive

It is important that shareholders sometimes review their investment memos and question their initial belief in an investment. The inherent shunning of SoFi by one of the biggest prominent investors of the past decade isn’t a bad thing. Additionally, the closure of SoftBank’s SoFi holding (OTCPK:SFTBY) was more likely due to internal disruptions resulting from catastrophic losses the Vision Fund suffered from a series of back-to-back bad investments.

That SoFi’s operating segments are not involved in trading non-fungible tokens or the latest cryptocurrency that supports a metaverse bolstered my initial investment conviction. Though SoFi isn’t profitable, the company operates in more stable parts of the economy that aren’t subject to the whims of pet spirits from inexperienced retailers. This greatly increases the likelihood of achieving short-term profitability based on non-volatile revenue.

The earlier investment environment that propelled SoFi to its previous highs and made Cathie such a popular and dominant investor is likely as good as dead as low interest rates are a thing of the past. Additionally, the flood of liquidity from excessive fiscal intervention has been unprecedented during the pandemic and will likely never be repeated. As such, the kind of excessive euphoria experienced by a large crowd of retail investors on every single Ark trade is now likely a footnote in the history of the pandemic.

A brutal recession, inflation and an increasingly restrictive Fed await us all. All of this would, of course, affect SoFi’s growth, either through a slowdown in lending and bank demand or through rising defaults. But the company’s lack of dual exposure to macro and micro risk is a good thing for its shareholders. I continue to buy stocks whose price shows great potential over a long-term holding period.

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When is the best time to apply for a credit card – Forbes Advisor https://vostoktelecom.ru/when-is-the-best-time-to-apply-for-a-credit-card-forbes-advisor/ Fri, 14 Oct 2022 13:00:39 +0000 https://vostoktelecom.ru/when-is-the-best-time-to-apply-for-a-credit-card-forbes-advisor/ Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. No time of year is necessarily a better time for credit card applications, but a number of personal financial situations and other factors affect when you should (or should not) apply for […]]]>

Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

No time of year is necessarily a better time for credit card applications, but a number of personal financial situations and other factors affect when you should (or should not) apply for a new credit card.

Before you apply for a new card, it’s important that you carefully consider which card types are best for your financial situation. Credit cards have different qualification requirements and benefits that you should be aware of before deciding to apply.

Reasons to apply for a new credit card

Sometimes having a credit card in your pocket can be a huge advantage. In other cases, applying for a credit card as part of a financing plan or other money movement can be much more beneficial. What’s right for you depends on your intended use of the card and your financial and credit situation.

Carrying a high-interest-bearing balance

If you have balance on a high-yield credit card, other cards can help you buy time with a balance transfer. You can ease the strain of paying a high interest rate on an outstanding balance by applying for a card that offers either a lower regular APR or, perhaps most helpfully, a low or 0% introductory APR for a limited period of time.

Several factors should be considered before attempting a balance transfer. The first should involve examining your likelihood of being approved. Traditionally, credit card companies that issue cards with the best balance transfer offers look for applicants with credit scores in the “good” or better range. Therefore, to have the best chance of admission, an applicant should have a credit score of more than 700. If you can’t get your score off your head, don’t worry — there are a variety of ways to check your credit for free.

Performing a balance transfer also typically incurs a balance transfer fee, so you should carefully consider whether you are actually saving money by offering a reduced APR or an APR induction period. If you can pay off the balance in a few months, the fee for transferring the balance may exceed the interest charges. However, if you need a longer period of time to settle your debts, you can often save money with a balance transfer despite the fee.

A balance transfer calculator can help you figure out if transferring balance from one card to another is right for you. The best balance transfer credit cards have long introductory APR periods, but always remember that a regular APR applies when a balance transfer period ends.

Make a big purchase

A 0% APR credit card can help you pay for large purchases interest-free for longer than a single billing cycle. However, be prepared that you have to make the purchase within a certain window of time from opening the account. You can use a card like this to make the purchase and then use a 0% interest promotional period to pay it off, but beware, when the 0% introductory period ends, a regular APR on unpaid balances will apply.

Credit cards typically charge double-digit APRs, which can add up quickly when you have a balance. The interest-free period of a 0% APR introductory offer allows you to pay off the purchase over time without incurring large interest charges that would make the purchase more expensive. The best 0% APR credit cards on the market have long introductory periods, often offering well over a year with no interest.

Build or repair credit

Credit cards also offer relatively easy ways to build or repair credit. Compared to other types of larger loans, such as B. Auto loans or mortgage loans, credit cards are generally much less risky for lenders. Whether you’re new to the world of credit and need to start from scratch or have a bad credit situation, the right credit card can help.

Secured cards and cards designed specifically for students are good choices in these situations and can help build a healthy credit history — they show lenders your credibility as a borrower.

Building credit with a credit card can lead to better credit card opportunities later with more rewards and benefits, and can also help you prepare for other types of borrowing. When you’re ready to buy a car or house, or borrow money to start a business, the credit history created with a credit card can make or break a lender’s decision.

What is good credit?

It should come as no surprise that when you have good credit, it’s easier to get credit card approval with attractive rates and terms. A credit score represents to a lender the risk of the borrower defaulting on a loan. As such, it would be beneficial to wait until your credit score and credit reports are in good standing before applying for a new credit card — especially cards with long introductory APR periods or cards with great rewards programs.

According to FICO, the most commonly used credit scoring model, the credit score ranges are as follows:

  • Exceptional: 800 to 850
  • Very good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Bad: 300 to 579

If you are dealing with bad or fair credit, there are many steps that can help you improve your credit score. The first and most important is to pay your bills on time every month as this is the number one factor affecting your credit score.

You can also reduce your total credit usage – the amount of your total credit limit that you actually use. A third helpful tip that could improve your score is to regularly review your credit report and correct any errors you spot.

If these steps aren’t enough for your situation, try building your credit with a secured credit card.

Are pre-approval or pre-qualification offers worth it?

Obtaining pre-approval or pre-qualification for a credit card can help you assess the likelihood of being approved when you apply, but it is not a guarantee. Lenders can find your information on credit bureau lists of trusted consumers and send you offers after querying your credit report.

These pre-approval offers can sometimes be more lucrative than those available to the general public. So if you are interested, keep an eye on your inbox or mailbox and act quickly on the offers you are interested in.

Issuers like American Express, Bank of America, Capital One, Citibank and Discover allow you to check online to see if you’re prequalified.

What happens if I apply for multiple credit cards?

Whenever you apply for a credit card account, your credit report is harshly queried. Every tough request hurts your credit score a bit. In some cases, there may be an compounding effect when multiple requests are made in a short period of time.

While there isn’t necessarily a specific amount of time you should wait to apply for another card, it’s important to weigh the tradeoff between submitting multiple offers and maintaining good credit, so we recommend a best of all at least 90 days between the applications to await results.

Can I apply for credit cards that I have closed?

Yes, you can apply for previously closed credit cards. You have to submit a new application and are usually not given preferential treatment because you previously held the card.

Some issuers may prevent you from claiming a welcome bonus again based on your previous account holdings. Also, your previous account should have been sound at the time of closure, otherwise the issuer is unlikely to approve your new application.

Find the best credit cards for 2022

No single credit card is the best option for every family, every purchase, or every budget. We’ve selected the best credit cards to be most helpful to a wide variety of readers.

bottom line

While open season for credit card applications runs year-round, your financial situation or credit history may determine when you should apply for a credit card. If you need to transfer a balance or finance a large purchase, you may want to do it on a new card with new introductory periods of 0% APR. However, if you recently applied for credit cards, you should wait a while before applying again.

Card pre-approval or pre-qualification offers that offer above-average welcome bonuses can also provide good opportunities to apply for a new card. Just be aware of the credit implications of applying for new cards too often, and always carefully read the terms and conditions of any account you sign up for.

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How do you qualify for a Greendayonline direct payday loan? https://vostoktelecom.ru/how-do-you-qualify-for-a-greendayonline-direct-payday-loan/ Sun, 09 Oct 2022 22:38:10 +0000 https://vostoktelecom.ru/how-do-you-qualify-for-a-greendayonline-direct-payday-loan/ What does a direct payday lender do? It is important to know the different types of payday loan lenders before you apply. Because the majority of direct lenders are not licensed in all 50 states, it is necessary to investigate their license status before hiring their services. Because of the high interest rates and short […]]]>

What does a direct payday lender do?

It is important to know the different types of payday loan lenders before you apply. Because the majority of direct lenders are not licensed in all 50 states, it is necessary to investigate their license status before hiring their services.

Because of the high interest rates and short repayment terms enforced by specialized direct lenders, you can find yourself in a terrible financial position if you decide to take out a loan from one of these organizations.

Direct payday loan lenders provide you with the short-term money you need. They oversee loan funding, borrower approval and loan repayments.

Payday loans from direct lenders allow you to quickly get the money you need to cover your expenses until your next payment. By submitting personal and financial information such as your bank account information and proof of income online, you can apply for a payday loan quickly. Direct lenders tend to make selections quickly, so you can get approval right away. Already on the same day after your authorization, the money can be transferred to your bank account.

What are the advantages of getting payday loans directly from GreenDayOnline?

Direct payday loans allow you to borrow from a single company instead of multiple. Direct lenders approve payday loans quickly and keep your information confidential.

Convenience. GreenDayOnline does not work with third parties to lend you money, so you can get a loan approval decision quickly.

Security. Your information is protected by GreenDayOnline and will not be shared with third parties.

Simplicity. GreenDayOnline works directly with you to ensure you understand your loan options, interest rates, fees and repayment terms.

How Do Direct Lender Payday Loans Work?

Your personal information may be transferred from lender to lender when you apply for a payday loan on a non-direct lender site. The more your information is shared, the more likely it is that someone will not want to receive it. Because your personal information stays with that lender when you apply to a direct lender, your risk of identity theft is reduced.

With direct payday loans, you can pay bills up until your next paycheck. By entering personal and financial information such as bank details and proof of income online, you can apply for a payday loan immediately. Direct lenders tend to make selections quickly, so you can get approval right away. Already on the same day after your authorization, the money can be transferred to your bank account.

What should you do before applying for a payday loan at GreenDayOnline?

Payday loans are popular because of their fast payout and ease of use. Payday loans have a negative image due to their easy availability; this applies in particular if the buyer has not previously carried out any corresponding research. You should always check the following to see if this type of loan is suitable before applying:

Choose the right type of credit. Although quick payday loans are a highly specialized financial tool, many companies offer products advertised as payday loans even though they do not meet the criteria. For example, certain companies may require you to provide collateral to secure the loan, putting your own property at risk. Before applying, you should familiarize yourself with the terms of your loan.

Consider all of your possible choices. Payday loans are not right for every borrower. If you need a quick cash injection to get out of a jam, consider choices like finding a second job, using credit cards, or borrowing money from friends or family.

Check the lender’s requirements. Depending on the lender, different requirements for verification of income, creditworthiness, loan size and repayment limits may apply. Before completing an application, make sure that the lender’s standards match your credit needs.

Familiarize yourself with local laws: Each state’s Attorney General has the power to restrict or ban payday loans altogether. These restrictions, aimed at reducing predatory lending practices that take advantage of low-income families, must be followed by payday lenders. Research these standards and make sure your lender meets the requirements of all applicable state laws.

How can I apply for a payday loan with a direct lender like GreenDayOnline?

To apply for a payday loan from a direct lender, just follow these steps:

  1. Choose a direct lender.

Compare direct lenders and the loans they offer to find the best solution for you. Look up the lender’s profile on the Better Business Bureau and read customer reviews to authenticate its legitimacy and safety.

  1. Confirm that you meet the conditions set by the lender.

Before applying, make sure you meet all eligibility requirements as lender restrictions vary. Requirements include being at least 18 years old, valid Social Security number, and citizenship or legal permanent resident of the United States.

  1. In person or online form submission.

You can apply for a payday loan either in person or online depending on the lender. The lender’s state office is where you can submit your application. You can apply online from a computer or mobile device without leaving the comfort of your own home.

  1. Look out for the permit

After submitting your application, all you have to do is wait for approval. Depending on their decision, you may hear from the lender quickly.

  1. Get money fast.

If you are authorized, your payday loan will be deposited into your bank account. Depending on the lender, you will receive your money immediately or within a few days.

Online Payday Loan Fees?

When trying to get payday loans, you may discover a variety of costs that add up to the amount of the loan. It’s common to expect modest application costs, especially if your lender requires identity verification. To pay for the administrative burden of processing and processing your loan, most lenders also charge an additional borrowing cost, which can be a one-time fee or a percentage of the loan amount.

Certain lenders waive fees in certain situations. If you miss a loan payment, you may be charged a late fee. Many lenders charge prepayment penalties if you return your loan early. Certain lenders may charge renewal fees if you wish to renew your loan early. You should have a proper debt settlement plan. They increase the cost of borrowing and should be avoided.

Why Choose GreenDayOnline for Payday Loans?

As a direct payday lender Green Day Online is happy to make it easier for you to get a quick loan without having to deal with different companies. We’ll guide you through all stages of the loan application process, from beginning your application to securing the loan when you apply for a loan in person or online today. Our Texas loans are only backed by third party direct lenders.

You don’t need strong credit to be authorized for a GreenDayOnline loan and you can have quick cash before your next payday. You can apply quickly and easily online or in person and you may receive an immediate response. If you apply in person or complete your online application, you can collect the money the same day if you are admitted. A payday loan from GreenDayOnline can provide you with the money you need instantly, whether you need to make your usual payments or cover an unforeseen one.

What are the benefits of dealing with a direct lender?

You run the risk of running into trouble if you take out a payday loan from an unregulated or offshore lender. These lenders will not comply with your state’s standards. Your bank account may be debited by the internet business. They may be trying to withdraw funds from your account on a regular basis, which is a significant financial problem. In this case, direct online lenders can give you money but they will make every effort to get it back. You will not take this risk often when dealing with internet payday loan providers.

The interest and fee cap is another beneficial feature of payday loans from direct lenders. If you’re not careful, these costs can add up. With most lending companies, you run the risk of paying high interest and late fees on the regular payroll deduction. If they have not been able to benefit from your account, you do not have to make any payment. They trust us because the banks are trying to cut costs.

There are numerous methods to obtain loans from a direct lender based on perks. When a consumer initially applies, our goal is to make them happy. Many direct lenders have federal licenses. These companies are constantly striving to improve the living conditions of a person in need of money. The connotation of this phrase is that truly direct lenders make the fastest loans. You have many payday loan options so you don’t have to go to your local lender.

Also, if you need to spend some time at a bank or credit union to pay your money back in a matter of hours, this is very helpful. Nowadays, most banks offer payday loans directly. Without restrictions and negative observers, these loans can have high default rates. The increase in cash credit was followed by an increase in cheap bank credit.

Jason Rathman

FINANCIAL EXPERT at GreenDayOnline

Jason writes on all financial topics such as loans, debt resolution and bankruptcy. He is an expert on topics such as APR, fine print on loans, debt collection laws in the United States. With his in-depth knowledge of all financial matters, he is a great asset to GreenDayOnline.

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Signs of Mortgage Stress – Forbes Advisor Australia https://vostoktelecom.ru/signs-of-mortgage-stress-forbes-advisor-australia/ Thu, 06 Oct 2022 09:25:22 +0000 https://vostoktelecom.ru/signs-of-mortgage-stress-forbes-advisor-australia/ With interest rates rising, Australian borrowers are now being forced to make higher mortgage repayments. In fact, an Australian with an average $500,000 25-year mortgage is paying an additional $76.45 a month on their mortgage due to the last 0.25% increase in October. For those with a $1 million mortgage, that additional monthly repayment after […]]]>

With interest rates rising, Australian borrowers are now being forced to make higher mortgage repayments. In fact, an Australian with an average $500,000 25-year mortgage is paying an additional $76.45 a month on their mortgage due to the last 0.25% increase in October.

For those with a $1 million mortgage, that additional monthly repayment after the last increase is more than $150 a month. And since the RBA began raising rates in May, the same mortgage borrower would have seen their monthly repayments increase by more than $500.

These rate hikes and subsequent repayments are putting more and more Australians at risk of mortgage stress.

Roy Morgan Research reports that 942,000 Australians are currently experiencing mortgage distress. If the RBA hikes rates again in November – which is likely to happen – that number would increase by 158,000 Australians to a total of 1.1 million – the highest since July 2013.

What exactly is mortgage stress, why is it increasing in Australia and how can you avoid becoming a victim of it yourself?

What is mortgage stress?

Mortgage stress is the term economists and real estate experts use when a household is struggling to make their mortgage payments.

Real estate economist and director at Property Resolutions, Mark Wist, says he believes there are two types of mortgage stress: conventional and psychosomatic.

“Traditionally, mortgage stress occurs when interest payment obligations eat up a more than comfortable chunk of a household’s budget,” says Wist.

“The threshold is often estimated to be around 30% to 35% of gross income, above which concern builds as other household financial commitments and hard costs are affected.”

While any mortgagor who pays more than 35% of gross household income could be classified as mortgage distressed, there is no official definition due to the many factors that contribute to it, explains Wist.

“For example, if the mortgage lender had the ability to increase income at will, that stress could be alleviated. Likewise, if the mortgage lender is behind on payments, there may be a buffer that can be drawn on for a period of time to offset increased interest obligations.”

The psychosomatic response Wist points to is fear of the impact that unknown rate hikes could have on the household budget.

This fear can prompt a household to reduce spending in anticipation of rising mortgage interest payments – which “at the aggregate level can affect GDP and overall demand for goods and services.”

“This underscores why the Reserve Bank is raising interest rates — to slow the rate of inflation in the economy by limiting consumer spending capacity,” Wist said.

How do you know if you are in mortgage stress?

There are numerous tools available online that can help you understand if you are in mortgage distress by calculating what percentage of your income goes toward your mortgage payments. This is known as your mortgage-to-income ratio.

Keep in mind that there are additional significant costs associated with owning property – such as repairs, maintenance and home insurance – that also need to be considered.

Once your mortgage-to-income ratio is calculated, it’s easy to decipher where you stand in terms of mortgage stress. If your score is less than 20%, you are not in mortgage stress or at risk in the near future.

If you spend between 20-30% of your income on repayments, you run the risk of experiencing mortgage stress if interest rates continue to rise or if your financial situation changes, e.g. B. if you lose a job or other stream of income.

If you’re spending 30% or more of your income on mortgage payments, you’re already in mortgage stress.

“Beyond that 30-35% threshold, the stress is indeed there, but not everyone is going to experience it in the same way,” Wist reiterates.

Signs of mortgage stress

While it’s easy to use a quantitative number to define mortgage stress, there are also some non-numerical measurements that can show that you’re suffering from mortgage stress — even if you’re not necessarily in the 30%+ income-to- Mortgage situation fall ratio.

One of these signs is that you no longer have the means to afford luxuries, such as eating out, going to the movies, or ordering take-out. This may also include withdrawing from any chargeable social activity, whether it is your own activity or that of your loved ones.

Another sign may be that you may find yourself in a situation where you are living paycheck to paycheck and find that you are making certain unexpected expenses – such as B. a doctor’s bill or a car service – can not budget. Instead, you rely on asking friends and family for help, using credit cards, or taking out personal loans from the bank.

What Causes Mortgage Stress?

As Wist explains, the problem with mortgage payments is that they’re neither optional nor arbitrary: you can’t avoid them, and you don’t choose how much you want to pay under a minimum.

“In contrast, you can — at least to some extent — control how much is spent on food, energy, entertainment, etc.,” says Wist.

“The mortgage payment is therefore often seen as the cornerstone of the household budget around which other obligations must grow.”

This means that mortgage stress can arise for a myriad of reasons, including personal circumstances such as losing a job affecting finances; an increase in expenses in other areas of life, e.g. B. at the birth of a child; or due to changes in the economy.

Why are mortgage stress rates rising in Australia?

The reason behind the growing number of Australians currently suffering from mortgage distress is largely due to economic turmoil.

As mentioned above, interest rates are rising exponentially due to the RBA’s recent decisions to raise interest rates to curb the country’s high rate of inflation. But inflation is also affecting the cost of living, keeping wage growth at stagnant levels.

Suddenly, people are expected to pay more for their mortgage payments, have to pay more for other living expenses when the CPI is also rising, and see their wages growing out of step with inflation.

In fact, Choice’s latest report found that 90% of Australians have experienced an increase in their household bills and spending over the past year. The nationally representative survey also found that concerns about disposable income have increased, showing nearly three in five households feel they no longer have enough.

In addition to current pressures on the cost of living, Wist has it to do with “the combination of FOMO and TINA.”

“FOMO – Fear Of Missing Out – caused some buyers to enter the market when they weren’t ready and this extra demand combined with fewer offers drove prices higher while TINA (There Is No Alternative) these buyers encouraged them to pay those higher prices,” explains Wist.

“This was at a time when the Reserve Bank and economists were touting interest rates that would ‘stay low longer’.

“It turns out that with a complex interaction of latent demand, driven in part by financial support and supply constraints, prices are rising rapidly, which has quickly pulled interest rates higher, despite ‘longer low’ forecasts.

“Those who bought homes at high prices with maximum mortgages are now facing higher interest payments given larger-than-average mortgages with higher interest rates — the worst of both worlds.”

How to avoid mortgage stress

Despite the sad news surrounding mortgage stress, there are still ways to avoid or eliminate mortgage stress, according to Wist. These include:

  • Consider a fixed-rate mortgage that ensures the level of interest payments.
  • Ask the lender if it is possible to switch to an interest-only contract, which would reduce the periodic payments by the amount allotted for principal payments.
  • Add an equalization feature to your mortgage that assigns positive interest to the additional principal held in the account to reduce the interest burden. and
  • Clean up with the lender: It’s far better to have an honest conversation that can allow the lender to restructure payments. Once violations occur, the opportunity for them may be gone.

frequently asked Questions

What is the mortgage stress test?

The mortgage stress test simply refers to calculating what percentage of your annual income goes towards your mortgage repayments and whether you are entering mortgage stress territory. There are numerous online calculators that can help you find this number, as well as calculators on government-backed websites that can help you figure out what repayments you can afford without getting into the mortgage stress.

Is mortgage stress calculated using gross or net income?

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What is subprime lending? | credit cards https://vostoktelecom.ru/what-is-subprime-lending-credit-cards/ Fri, 30 Sep 2022 14:42:00 +0000 https://vostoktelecom.ru/what-is-subprime-lending-credit-cards/ Subprime loans are typically a FICO score that falls below 670, and nearly a third of US consumers have it, according to them Data from the Experian credit agency. A subprime credit score can make credit more expensive and more difficult to access than if your score were good. With subprime loans, you may have […]]]>

Subprime loans are typically a FICO score that falls below 670, and nearly a third of US consumers have it, according to them Data from the Experian credit agency. A subprime credit score can make credit more expensive and more difficult to access than if your score were good. With subprime loans, you may have fewer credit card, mortgage, and auto loan options.

Learn more about subprime loans, including how subprime borrowers can access them and how to improve a subprime loan score.

What is a Subprime Credit Score?

A subprime credit score is a score that represents greater credit risk than a prime or superprime credit score. Subprime scores are classified as poor or fair, both of which are at the lower end of the credit score ranges. Typically, subprime is a FICO credit score less than 670 or a VantageScore less than 600.

A subprime credit score could be due to less concerted factors, such as: For example, lots of credit card debt and new accounts, says credit expert John Ulzheimer, formerly of FICO and Equifax. But even a major factor, such as filing for bankruptcy or closing an account, can lead to subprime lending.

“If you reset something tomorrow, your score will be at or below 680,” says Ulzheimer.

Who is a Subprime Borrower?

A subprime borrower is someone whose credit does not qualify for prime interest rates and terms. The prime rate is the best rate that lenders offer their most creditworthy customers and is a starting point for setting interest rates on loans and credit cards.

Subprime borrowers can have:

  • Recently missed payments on credit accounts.
  • You have recently experienced a direct debit, garnishment or foreclosure.
  • Filed for bankruptcy in recent years.
  • Accumulated debt and ended up with a high debt-to-income ratio.
  • Faced with limitations due to limited credit history.

Subprime borrowers should expect to pay more for a loan, generally in the form of higher interest rates, compared to borrowers with good credit ratings. Lenders charge subprime borrowers more to compensate for taking on more risk. If you’re a subprime borrower, you haven’t proven your creditworthiness, and lenders know you have a greater chance of missing payments or defaulting.

What are subprime credit cards?

Subprime credit cards are cards designed for people with poor or limited credit history and are issued by major banks and subprime credit card companies. These cards tend to charge higher interest rates than traditional credit cards, often APRs that can exceed 30% to reflect the high risk of default. You could also have a low credit limit or prepayment.

However, a subprime credit card could help you rebuild your balance if you pay your bills on time and keep a low balance or pay it off in full. Your card may also have a rewards program and other helpful features, such as: B. Free access to the credit score.

Here are a few examples that US News rated highly among credit-damage cards:

The Capital One QuicksilverOne Cash Rewards Credit Card requires fair to good credit and charges an annual fee of $39. Cardholders receive unlimited 5% cashback on hotels and car rentals booked through Capital One Travel, the publisher’s booking portal, and unlimited 1.5% cashback on all other purchases. Free unlimited access to your credit score can help you monitor your credit score and you will be automatically considered for a credit limit increase after six months.

The Citi Secured Mastercard is designed for those with no credit history and has no annual fee. If you meet the income and debt criteria, you will be approved for a card, but you must make a deposit equal to your credit limit. The minimum deposit is $200. This card offers autopay and account notifications to help you keep track of payments, and reports to all three credit bureaus to help you build credit history. Citi will review your account within 18 months to determine if you are eligible for a refund of your deposit.

What are subprime loans?

Subprime loans, including mortgages, personal loans, and auto loans, are available to borrowers who cannot qualify for loans at the best interest rates. As with subprime credit cards, subprime loans tend to be expensive due to the consumer’s high credit risk.

Subprime mortgages can have higher interest rates, higher upfront costs, and higher short- and long-term costs. Interest rates alone are 8 to 10 percentage points higher than prime mortgages, according to Experian.

That’s tough when mortgage rates have risen above 6% for well-qualified borrowers. You could end up paying double-digit interest on a subprime mortgage.

“There are ways to get mortgages if your score is relatively low,” says Jeff Richardson, senior vice president of marketing and communications at VantageScore Solutions.

Whether you’re looking for a mortgage or auto loan, you can find lenders willing to work with subprime borrowers. Just know that you can pay high interest rates for the privilege of borrowing.

“For a 60-month new car loan, once you start falling below 700, interest rates become criminal,” Ulzheimer says.

You can choose to pay the higher interest rate or lower your borrowing costs by limiting your budget. If you can improve your credit rating, you may be able to refinance at a better interest rate.

How to Improve a Subprime Loan Score

Even small improvements in your subprime credit score could get you better deals on credit cards, loans, and other forms of financing. Here are some ways you can move your credit score out of subprime territory:

Improving a subprime credit rating takes patience and time. Late payments, collections, and bankruptcies can linger on your credit report for years, although their impact diminishes over time.
Fortunately, negative information counts less over time, Richardson says. “Credit improvement is often a marathon, not a sprint,” he says.

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5 investment ideas in market volatility https://vostoktelecom.ru/5-investment-ideas-in-market-volatility/ Mon, 26 Sep 2022 14:00:09 +0000 https://vostoktelecom.ru/5-investment-ideas-in-market-volatility/ press release – Sept. 26, 2022 10:00 am EDT NEW YORK, Sept. 26, 2022 (Newswire.com) – With US inflation still uncomfortably high, investors are increasingly looking for ideas on how to deal with an influx of volatility in traditional markets. Countless strategies have been employed in the past to avoid losses and even profit from […]]]>

press release

Sept. 26, 2022 10:00 am EDT

With US inflation still uncomfortably high, investors are increasingly looking for ideas on how to deal with an influx of volatility in traditional markets. Countless strategies have been employed in the past to avoid losses and even profit from wild price swings, and today online investment platforms like yield road make it easy to use alternative options in the private market while the economy remains uncertain.

If you’re looking to invest in this current environment but aren’t sure where to start, here are five investment ideas to inspire you:

real estate investments

invest real estate is a notoriously popular alternative to the traditional market and the variety of different investment strategies makes it an attractive option in times of increased volatility. While some investors might try to actually buy a property if the price is right, it’s far from the only approach. If you want to start small, you can, for example, buy into a real estate fund or REITthat delivers consistent returns in the form of dividends.

art

Visual arts are widely viewed as a wise hedge against market fluctuations, as many works are considered timeless and tend to appreciate in value regardless of the state of the economy. In fact, investments in fine arts have collectively outperformed traditional markets for decades. And while this asset class has long been out of reach for most, almost everyone is looking for it invest in art can get started today on a platform like Yieldstreet.

Active trading

While the conventional wisdom tends to suggest that when volatility increases, investors will flee from risky assets like stocks and cryptocurrencies, there are many successful traders who will tell you exactly the opposite. Sure, actively buying and selling stocks or crypto in a volatile climate isn’t for everyone, but those with nerves of steel willing to track price fluctuations and execute trades in real-time have the potential to earn well-above-average returns.

Peer-to-Peer Lending (P2P)

P2P Lending can be an excellent way to generate residual income as there is almost always someone seeking a personal loan who may not have access to more traditional lines of credit. In addition, P2P lending platforms typically offer relatively high interest rates for monthly payments, and investors can exercise more or less control over how much risk they are willing to take. Importantly, however, P2P lending is largely unsecured, and even the “least risk” option can result in a hefty loss if a borrower defaults on their obligation.

High return savings

Finally, the most conservative approach to investing through volatility is to simply store your capital in a traditional, high-yield savings account. This option is becoming more attractive as the Fed continues to raise interest rates, allowing investors to build their bankroll with confidence and ultimately invest more money when the market turns up.

Source: Yield Street

]]> Which student loans qualify for forgiveness under Biden’s plan? https://vostoktelecom.ru/which-student-loans-qualify-for-forgiveness-under-bidens-plan/ Fri, 23 Sep 2022 16:46:41 +0000 https://vostoktelecom.ru/which-student-loans-qualify-for-forgiveness-under-bidens-plan/ Insider’s experts select the best products and services to help you make wise decisions with your money (here’s how). In some cases we receive a commission from our Our partners, but our opinion is our own. The conditions apply to the offers listed on this page. Only loans held by the US government are eligible […]]]>

Insider’s experts select the best products and services to help you make wise decisions with your money (here’s how). In some cases we receive a commission from our Our partners, but our opinion is our own. The conditions apply to the offers listed on this page.

  • Only loans held by the US government are eligible for Biden’s $10,000 forgiveness plan.
  • Private loans and some FFEL and Perkins loans are not eligible for forgiveness.
  • To be eligible for forgiveness, FFEL and Perkins borrowers may be consolidated into one direct loan.

On August 24, President Biden announced he would make student loans at $10,000 per borrower, $20,000 if you received a Pell grant.

To qualify for student loan forgiveness, you must meet the following income requirements:

  • Annual income of $125,000 or less for individuals
  • Annual income of $250,000 or less for married couples who file their taxes together

However, some people might miss out on student loan forgiveness just because they have the wrong type of loan.

Sonia Lewis, student loan expert who has worked with over 20,000 clients to help them navigate their student loans the Student Loan Doctor LLC, says that most people don’t even know their loan type. “The first thing you should do,” she tells Insider, “is log into studentaid.gov and click View Details.” Your loan type is displayed just above the green circle.”

If you can’t remember whether or not you received a Pell scholarship, Lewis says information can be found on the same studentaid.gov dashboard. “If you see two circles, a blue circle and a green circle, it means you have received a Pell Grant and you will receive $20,000.”

A sample screenshot of the Federal Student Aid website dashboard.

If you see two circles, one blue and one green, on your Student Assistance website, you have received a Pell Scholarship and are eligible for $20,000 in student loan forgiveness.

studentaid.gov



Here is a list of all the different loan types and whether or not they qualify for student loan forgiveness.

What loans are eligible for student loan forgiveness?

In general, the student loans are held by the US government claim for forgiveness.

Types of student loans eligible for forgiveness

  • Direct loans for students and graduates
  • Parents PLUS loan
  • Direct PLUS loans for college graduates and professionals
  • Consolidation Loan (with underlying loans disbursed on or before June 30, 2022)
  • FFEL loan owned by Department of Education
  • Perkins Loan owned by the Department of Education
  • Defaulted loans (including Department of Education held or commercially administered subsidized Stafford, unsubsidized Stafford, Parents PLUS and Graduate PLUS loans, and Perkins loans held by Department of Education)

Service providers who administer student loans held by the US government

  • FedLoan Servicing (PHEAA)
  • Great Lakes Education Loan Services, Inc.
  • Edfinancial
  • MOHELA
  • aid
  • net
  • OSLA maintenance
  • ESCI
  • Default resolution group

If your loans are managed by service providers not listed above, they are privately owned.

Which loans do not qualify for student loan forgiveness?

Privately Held FFEL Loans

Some FFEL loans are government-backed loans issued by a private lender. Because they are held by a private lender and not the US government, they are not eligible for student loan forgiveness. The Biden administration is working to waive all privately held FFEL loans, but there’s no timeline yet.

If you have private FFEL loans, you must consolidate your FFEL loans into a direct loan to qualify for Biden’s student loan forgiveness plan.

However, other FFEL loans are held by the US government and these are eligible for forgiveness of $10,000, $20,000 if you received a Pell grant. If you have FFEL loans and they are currently on hold because of the pandemic, they qualify for forgiveness.

Perkins Loan

Perkins Loans are low-interest loans for undergraduate and graduate students who had exceptional financial needs and were discontinued in 2017. Lewis says, “These loans would be repaid to the actual college and not to the government. So the school was able to make the loan with government funded money.”

Because Perkins loans are repaid to schools and not to the federal government, they are not eligible for forgiveness on Biden’s student loans. You can consolidate your Perkins loans into a direct loan for full forgiveness, but that may not be the best plan for you because Perkins loans are fully forgiven after five years Full-time employment in the following professions:

  • Teacher in a public or non-profit school (some part-time teaching positions qualify for forgiveness)
  • nurse or medical technician
  • Qualified professional provider of early intervention services for the disabled
  • Faculty member at a tribal college or university
  • Speech therapist with a master’s degree working at a Title I-qualified elementary or secondary school
  • Librarian with a master’s degree working in a Title I-qualified school
  • law enforcement or correctional officer
  • Lawyer employed by a federal public or local defense organization
  • Employees of a public or private non-profit children’s or family service agency that provides services to high-risk children and their families from low-income communities
  • Employees in the education component of a Head Start program
  • Employees in the educational component of a preschool or child care program that is licensed or regulated by a state
  • Military service in the US Armed Forces under enemy fire or in an immediate danger zone
  • Voluntary cancellation of AmeriCorps VISTA or Peace Corps

Private Student Loans

Private loans held by commercial lenders are not eligible for Biden’s student loan forgiveness plan. Additionally, if you refinanced your state student loans with a private lender, those loans are no longer eligible for Biden’s student loan forgiveness plan.

How do you know what types of credit you have

To find out what type of loan you have, log into studentaid.gov and click My Help from the drop-down menu.

From there, check the Loan Breakdown section for a list of your loans. Click View Loan, then click View Loan Details. Check the names of your loans and look for “direct” – these loans can be forgiven.

If you have FFEL or Perkins loans with Dept. of Ed” or “Default Management Collection System” as the servicer’s name, your loans are owned by the federal government and are eligible for forgiveness.

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