People fortunate enough to own a home away from home often complain about a second residence being more trouble than it's worth-especially when it comes to homeowner's insurance. The increased premium is attributed to the fact that owners don't spend as much time at their second home as they do at the first. In the insurance company's eyes, that leaves the residence more susceptible to burglaries and fires.
Even though that fact is hard to dispute, there still are ways you can save on your insurance bill.
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GO »The thought of having to pay a claim on a burglary scares the wits out of an insurance company. Abate their fears by installing an alarm system in your second residence. It may require some upfront money and an ongoing monitoring fee, but you could save upwards of 20 percent on your insurance bill. You'll save even more if your home is in a gated community.
Consolidate for the rebateUse the same agent on your second home that you use on your primary residence. You'll generally receive a discount on your policy when you have the same company insure multiple properties. Throw in an umbrella policy and car insurance, and your premium should decrease even further.
Renting out your summer homeWhen it comes to insuring a summer rental, you can't win. Insurance companies don't like the idea of you leaving your house all by itself, so they'll increase your rates. If you decide to rent it, they don't like that idea either, because tenants tend to mistreat property, or at least don't treat it as well as the real owner would. One way to offset the costs is to require any tenants to supply their own furnishings, thereby reducing the insurance company's liability.
Open the umbrellaIn our litigious society, an umbrella policy is a necessity-second home or no second home. These provide a hefty amount of general liability, usually around $1 million, and protect you from all types of lawsuits. Considering your potential risk exposure with a second home-especially one that you rent out-such policy is essential. Contact your agent to determine the proper amount of coverage for your situation.
The ability to retreat to that home away from home is a true blessing for people who own a second residence. However, insurance companies will do their best to spoil the fun. To soften the blow of a higher insurance policy, do what you can to lessen your insurer's risk exposure. Protect your second home like you would your first, and your premiums will reflect your extra effort.
Saturday, February 21, 2009
Credit Crunch Squashing Auto Loans
When the government has to inject cash into some of the world's largest banks, and General Electric goes to Warren Buffett for a $10 billion handout, there's no chance for regular working people to land a new car loan, right?
The answer may surprise you: that very question itself is hurting the auto industry right now.
Vote of no confidence
It's true enough that the big American carmakers are having cash problems. Auto sales dropped 27 percent between August and September, the biggest single-month drop in 17 years. What's more, we're at the lowest unit sales level in 15 years. Some lenders are holding back inventory financing, forcing a few of the nation's largest dealership chains to close their doors, unable to afford stocking the cars in their own lots anymore.
Reading the news is bad enough. Add in sky-high gas prices and concern about job security, and it's only natural to hold off on that shiny new sports car that you've been dreaming about.
Unintended consequences
Dealers still want to sell you a car. Ford, Chrysler, and General Motors all have 0 percent financing deals available right now, and GM is giving its 10 percent employee discount to outside customers. Even Toyota, the Japanese maker that doesn't do sales incentives very often, is losing sales and extending 0 percent auto loans to some buyers.
They're all trying to overcome the lack of consumer confidence with the best offers they can afford-and some that they can't. However, the bank still has a say. It used to be easier to get a car loan approved. Now, you'll need a great FICO credit score to qualify for most of those interest-free loans.
The existence of those low-interest loans is proof that you still can get auto loans if you need them. Just be prepared for a larger down payment, tougher late-payment penalties, and stricter credit score requirements. The car loan equivalent of subprime mortgages has gone out of style in a hurry. During the last four years, banks approved too many risky loans like that. Now, many of those are turning into write-offs for the banks, and lots of repossessed vehicles.
Ride the lightning
This, too, shall pass. Once the credit crunch blows over, it will be easier to get a car loan on good terms again, either from the dealer, or through your favorite bank. If you need a new car before then, take good care of your credit history and look out for a desperate automaker or dealership to hand you a truly great deal. Rebuilding consumer confidence isn't a quick or easy task, and somebody will bring out the big guns when financial circumstances allow. The government wants to keep Detroit alive and well, and has already approved a $25 billion loan to help the Big Three develop more fuel-efficient models.
The answer may surprise you: that very question itself is hurting the auto industry right now.
Vote of no confidence
It's true enough that the big American carmakers are having cash problems. Auto sales dropped 27 percent between August and September, the biggest single-month drop in 17 years. What's more, we're at the lowest unit sales level in 15 years. Some lenders are holding back inventory financing, forcing a few of the nation's largest dealership chains to close their doors, unable to afford stocking the cars in their own lots anymore.
Reading the news is bad enough. Add in sky-high gas prices and concern about job security, and it's only natural to hold off on that shiny new sports car that you've been dreaming about.
Unintended consequences
Dealers still want to sell you a car. Ford, Chrysler, and General Motors all have 0 percent financing deals available right now, and GM is giving its 10 percent employee discount to outside customers. Even Toyota, the Japanese maker that doesn't do sales incentives very often, is losing sales and extending 0 percent auto loans to some buyers.
They're all trying to overcome the lack of consumer confidence with the best offers they can afford-and some that they can't. However, the bank still has a say. It used to be easier to get a car loan approved. Now, you'll need a great FICO credit score to qualify for most of those interest-free loans.
The existence of those low-interest loans is proof that you still can get auto loans if you need them. Just be prepared for a larger down payment, tougher late-payment penalties, and stricter credit score requirements. The car loan equivalent of subprime mortgages has gone out of style in a hurry. During the last four years, banks approved too many risky loans like that. Now, many of those are turning into write-offs for the banks, and lots of repossessed vehicles.
Ride the lightning
This, too, shall pass. Once the credit crunch blows over, it will be easier to get a car loan on good terms again, either from the dealer, or through your favorite bank. If you need a new car before then, take good care of your credit history and look out for a desperate automaker or dealership to hand you a truly great deal. Rebuilding consumer confidence isn't a quick or easy task, and somebody will bring out the big guns when financial circumstances allow. The government wants to keep Detroit alive and well, and has already approved a $25 billion loan to help the Big Three develop more fuel-efficient models.
Gas Saving Tip: Drive a Scooter
Americans have always chosen their mode of transportation on the basis of style, and how it reflects their personalities. Tough guys ride Harleys, white-collar executives drive BMWs, and families stick to minivans. Typically, not too many motorists have made their decision out of a conscious decision to save gas. However, as oil prices have spiked to $100 a barrel, that line of thinking has started to change.
Mopeds are defined as a class of low-powered motorized vehicles, including scooters, which have automatic transmissions, step-through design, and bodies that conceal engines. Its low-power engine and ease of use makes it extremely attractive to commuters who are reluctant to handle a big motorcycle, but are eager to enjoy big savings on gas.
High gas prices, higher sales
Scooter sales have jumped 60 percent this year, a direct correlation to prices at the pump. No wonder we're starting to emulate the transportation choices of Europe, where higher fuel costs and the scooter have been staples for decades.
The rising gas prices in America haven't had a similar effect on motorcycle sales here. While bikes get between 40 and 60 miles per gallon, a scooter will get between 60 and 100 miles per gallon. The gas mileage differential has hurt motorcycle manufacturers like Harley Davidson, which has actually experienced a drop in sales. But gas prices alone can't explain their increased inventories
Dragging economy, value-packed scooter
Motorcycle sales figures reflect the slumping economy, as do lower-priced scooters, in the $2,000 to $3,000 range, which are enjoying the highest sales spike. There are more expensive scooter models, which can cost as much as $8,000, but they're not feeling the same surge as the more modestly-priced counterparts.
The people who are buying scooters aren't the ones who'd ordinarily not think twice about plunking down 20,000 for a Harley Davidson in good economic times. The new scooter buyer, who'd normally commute to and from work in his car, is opting for a less costly commute.
More Americans are commuting to work and school via the moped, demonstrating that two wheels are cheaper than four. Gone are the ego-driven decisions of hauling around a gas-guzzling SUV. Commuters are now stretching their pennies as far as they can, and with the low cost of a moped, they can generally recoup their investment rather quickly.
Transportation choices were once based on style, but now, tough economic times are forcing commuters to think differently. Scooters and mopeds are becoming the transit mode of choice. With an inexpensive purchase price and low operational cost, scooters are breaking up America's love affair with the automobile.
Mopeds are defined as a class of low-powered motorized vehicles, including scooters, which have automatic transmissions, step-through design, and bodies that conceal engines. Its low-power engine and ease of use makes it extremely attractive to commuters who are reluctant to handle a big motorcycle, but are eager to enjoy big savings on gas.
High gas prices, higher sales
Scooter sales have jumped 60 percent this year, a direct correlation to prices at the pump. No wonder we're starting to emulate the transportation choices of Europe, where higher fuel costs and the scooter have been staples for decades.
The rising gas prices in America haven't had a similar effect on motorcycle sales here. While bikes get between 40 and 60 miles per gallon, a scooter will get between 60 and 100 miles per gallon. The gas mileage differential has hurt motorcycle manufacturers like Harley Davidson, which has actually experienced a drop in sales. But gas prices alone can't explain their increased inventories
Dragging economy, value-packed scooter
Motorcycle sales figures reflect the slumping economy, as do lower-priced scooters, in the $2,000 to $3,000 range, which are enjoying the highest sales spike. There are more expensive scooter models, which can cost as much as $8,000, but they're not feeling the same surge as the more modestly-priced counterparts.
The people who are buying scooters aren't the ones who'd ordinarily not think twice about plunking down 20,000 for a Harley Davidson in good economic times. The new scooter buyer, who'd normally commute to and from work in his car, is opting for a less costly commute.
More Americans are commuting to work and school via the moped, demonstrating that two wheels are cheaper than four. Gone are the ego-driven decisions of hauling around a gas-guzzling SUV. Commuters are now stretching their pennies as far as they can, and with the low cost of a moped, they can generally recoup their investment rather quickly.
Transportation choices were once based on style, but now, tough economic times are forcing commuters to think differently. Scooters and mopeds are becoming the transit mode of choice. With an inexpensive purchase price and low operational cost, scooters are breaking up America's love affair with the automobile.
Bailout Offers Auto Loan Relief
Do you want a piece of the federal bailout action? Now may be your chance. GMAC, the financing unit of General Motors, is passing Troubled Asset Relief (TARP) funds onto its consumers, in the form of looser credit standards on auto loans. There's just one tiny catch-you must buy GM.
Auto industry secures bailout funding for car loans
The troubles of American automakers have been well documented. It's bad enough that they're coping with high labor costs, cars that don't appeal to consumers, and insufficient liquidity. But when you add in a tight credit environment that can't support consumer auto loans, it's a recipe for disaster.
The situation was so severe that the feds finally stepped in with two separate bailout deals. One of them provided much-needed cash to GM and Chrysler. The other bolstered GMAC, the primary provider of auto financing for GM dealers, with cash. The manufacturers will use their money to reposition their operations for future profitability, while GMAC will deploy its newfound capital to fund more car loans.
Lower standards for auto loans
To improve its car loan production, GMAC will lower its minimum credit score requirements. The move marks a return to GMAC's traditional underwriting standards. Two months ago, when the credit markets nearly grinded to a halt, GMAC was forced to increase its minimum approvable credit score from 621 to 700, because it didn't have access to the capital required to service those below-700 borrowers.
In late-December, however, GMAC secured a capital contribution from TARP. This money allows the company to reinstate the lower credit score minimum of 621.
In a public statement, GMAC President Bill Muir said, "We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S."
Aggressive auto financing promotions
GMAC also ran an aggressive 0 percent car loan promotion between December 30 and January 5. Inclusive of that promotion, GM's December sales were still down more than 31 percent. Full-year sales were down 22.9 percent.
TARP was established in early October when Congress passed the Emergency Economic Stabilization Act of 2008. To participate in the program, GMAC applied for bank holding company status in November; that application was approved by the Reserve-Board">Federal Reserve Board in the following month. GMAC subsequently received $6 billion in government bailout funds. Auto manufacturers GM and Chrysler received bailout financing under a separate arrangement by President Bush.
If your credit score is between 621 and 700, you can technically take a slice out of the bailout pie. Just head over to your nearest GM dealer, and finance an auto purchase.
Auto industry secures bailout funding for car loans
The troubles of American automakers have been well documented. It's bad enough that they're coping with high labor costs, cars that don't appeal to consumers, and insufficient liquidity. But when you add in a tight credit environment that can't support consumer auto loans, it's a recipe for disaster.
The situation was so severe that the feds finally stepped in with two separate bailout deals. One of them provided much-needed cash to GM and Chrysler. The other bolstered GMAC, the primary provider of auto financing for GM dealers, with cash. The manufacturers will use their money to reposition their operations for future profitability, while GMAC will deploy its newfound capital to fund more car loans.
Lower standards for auto loans
To improve its car loan production, GMAC will lower its minimum credit score requirements. The move marks a return to GMAC's traditional underwriting standards. Two months ago, when the credit markets nearly grinded to a halt, GMAC was forced to increase its minimum approvable credit score from 621 to 700, because it didn't have access to the capital required to service those below-700 borrowers.
In late-December, however, GMAC secured a capital contribution from TARP. This money allows the company to reinstate the lower credit score minimum of 621.
In a public statement, GMAC President Bill Muir said, "We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S."
Aggressive auto financing promotions
GMAC also ran an aggressive 0 percent car loan promotion between December 30 and January 5. Inclusive of that promotion, GM's December sales were still down more than 31 percent. Full-year sales were down 22.9 percent.
TARP was established in early October when Congress passed the Emergency Economic Stabilization Act of 2008. To participate in the program, GMAC applied for bank holding company status in November; that application was approved by the Reserve-Board">Federal Reserve Board in the following month. GMAC subsequently received $6 billion in government bailout funds. Auto manufacturers GM and Chrysler received bailout financing under a separate arrangement by President Bush.
If your credit score is between 621 and 700, you can technically take a slice out of the bailout pie. Just head over to your nearest GM dealer, and finance an auto purchase.
I have disputed several items on my Experian credit report and got them deleted. Now will the other 2?
I disputed several items on my Experian credit report and got some of them deleted. Now will the other 2 credit reporting agencies use that same info or do I need to start a new dispute with each of them?
Public CommentsYou need to start a new dispute with each of them. Zerro is correct. Each report is a separate entity. You have to continue to monitor your reports. Sometimes they pop back up a year or so later after you've disputed them.
Public CommentsYou need to start a new dispute with each of them. Zerro is correct. Each report is a separate entity. You have to continue to monitor your reports. Sometimes they pop back up a year or so later after you've disputed them.
What Loan company will take over my federal student loans when the loans are in default?
What Loan company will take over my federal student loans when the loans are in default so I can go back to school? My loans are government loans from Saillie Mae. I owe them under $5000. I heard about this company that will take over your school loans from them but I don't know the name of the company. I am at the point where I can't get a federal student loan until I pay this off.
Public CommentsWhen your federal educational loans are in default, you have several options: You can repay the loan in full. You can negotiate a new payment plan with your lender. You can "rehabilitate" your loan. You can consolidate your loan. Obviously option one is rarely attractive or possible for defaulted borrowers. Option two (renegotiate) should be investigated fully - most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with. Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount. Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple - a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt - a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and - in the end - you'll pay far more back than you would have paid on the original loan. As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 - is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?" See - in the end, you'll pay me back $170 instead of $100 - that's how a consolidation loan works. But remember - we're not talking a $100 loan for a couple of weeks - by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan. I've attached some information about consolidating from the Department of Education - take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers. Good luck to you! Right now it's taking over 9 months of consecutive payments to get out of 'default'. I have no way of knowing which lender is going to take over your loan because quite frankly, student lenders have really clamped down on who they will work with. This can also mean that you could stay in collections until it's paid off. The collection agency will work to find a lender to take your loan back over once you're out of collections. Once you are deemed out of 'default', you can then apply for student financial aid.
Public CommentsWhen your federal educational loans are in default, you have several options: You can repay the loan in full. You can negotiate a new payment plan with your lender. You can "rehabilitate" your loan. You can consolidate your loan. Obviously option one is rarely attractive or possible for defaulted borrowers. Option two (renegotiate) should be investigated fully - most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with. Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount. Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple - a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt - a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and - in the end - you'll pay far more back than you would have paid on the original loan. As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 - is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?" See - in the end, you'll pay me back $170 instead of $100 - that's how a consolidation loan works. But remember - we're not talking a $100 loan for a couple of weeks - by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan. I've attached some information about consolidating from the Department of Education - take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers. Good luck to you! Right now it's taking over 9 months of consecutive payments to get out of 'default'. I have no way of knowing which lender is going to take over your loan because quite frankly, student lenders have really clamped down on who they will work with. This can also mean that you could stay in collections until it's paid off. The collection agency will work to find a lender to take your loan back over once you're out of collections. Once you are deemed out of 'default', you can then apply for student financial aid.
A NextStudent Guide to Deferment and Forbearance
Sometimes life can put a dent in your budget, making it harder to pay your everyday living expenses and monthly bills. When faced with the loss of a job, going back to school or sudden unexpected expenses like medical bills or car-repair costs, even the most responsible borrowers can find themselves struggling to make their student loan payments.
If you ever find yourself in this situation, the main thing is not to let your student loan payments overwhelm you; don’t just ignore your student loan bills as you try to get back on your financial feet—every missed payment could be another blemish on your credit report. Miss enough payments, and you could go into default.
Default is serious. Besides the damage it does to your credit report, which can take years to repair, having a defaulted student loan could keep you from being able to borrow any other money, whether it’s for a new car, a home or another semester at school. If you default on a federal student loan, the government can even decide to garnish your wages.
But by being proactive and talking to your lender, you may be able to give your budget a little breathing room. Your federal student loans come with repayment plans and deferment and forbearance benefits that could help you when you’re having trouble making your monthly payments.
Income-sensitive, extended, and graduated repayment plans might be able to lower your monthly payments on your federal student loans. If you’re still having trouble meeting your monthly payment amount, deferment and forbearance periods may allow you to temporarily postpone your monthly student loan payments altogether without defaulting or affecting your credit rating.
To help make sure you know the payment postponement options you have available to you for those times when you’re finding it hard to meet your student loan payments, NextStudent, a leading Phoenix-based education funding company, offers this guide to deferment and forbearance.
DefermentDeferment allows you to temporarily stop making payments on your student loans. You must contact your lender to request a deferment, and you may need to fill out a deferment request form.
You may be able to request a deferment on your federal student loans (including Perkins loans, subsidized and unsubsidized Stafford loans, Grad PLUS loans, and consolidation loans) or on your parent PLUS loans if you are:
Enrolled in school at least half time Unemployed Experiencing economic hardship In the military and have been deployed If you’re enrolled at least half-time in an eligible undergraduate, graduate or professional degree program, you can request an in-school deferment on your federal student loans. You’ll need to provide proof of enrollment each semester.
You may also request a deferment in cases of unemployment, financial hardship, or military deployment, for up to a year at a time, up to a total of three years over the life of the loan.
Some private student loans may also allow you to defer payments while you’re in school at least half time, deployed for military service, or having financial difficulties. You need to contact your private student loan lender.
Interest Charges on Loans in DefermentInterest does not stop accruing while you’re in deferment. However, when you’re in deferment, you’ll only be responsible for the interest charges on your unsubsidized loans. For subsidized loans (which include Perkins loans and subsidized Stafford loans), any interest that accrues during a deferment period is paid by the government.
On your unsubsidized loans, even when you’re not required to make any payments while you’re in deferment, interest continues to accrue, and the unpaid interest will be added to your principal loan balance for you to repay once you go back into repayment.
When you defer a Federal Consolidation Loan, the government will pay the interest on that portion of your consolidation loan that was originally a Perkins loan, subsidized Stafford loan, or other subsidized federal student loan. You’ll only be responsible for paying the interest on that portion of a consolidation loan that was originally a PLUS loan, Grad PLUS loan, unsubsidized Stafford loan, or other unsubsidized federal education loan.
You can always choose to make interest payments during deferment in order to avoid having any accrued interest added to your principal loan balance.
ForbearanceForbearance allows you to temporarily reduce or postpone payments on your student loans. You must request a forbearance from your lender, and you typically need to complete a forbearance request form. You may also need to submit supporting documentation, depending on the nature of your request.
Generally, your lender can grant a forbearance for up to a year at a time. Unlike unemployment or economic hardship deferments, there is no three-year cumulative limit on discretionary forbearance periods granted due to financial hardship.
Interest Charges on Student Loans in ForbearanceInterest does not stop accruing while you’re in forbearance. When your student loans are in forbearance, you’ll continue to be charged interest on those student loans, whether they’re subsidized or unsubsidized.
Any unpaid interest that accrues will be added to your principal loan balance for you to repay once you go back into repayment.
Some forbearance arrangements may have you making interest-only payments, so no interest gets added to your principal. If the forbearance you arrange with your lender allows you to temporarily stop making payments altogether, you can always choose to make interest payments in order to avoid having any accrued interest added to your principal loan balance.
Important Points to Keep in MindDeferments and discretionary forbearances are not automatic. If you’re having trouble making your student loan payments and you’d like to request a deferment or forbearance to either reduce or postpone your payments, you need to contact your lender. You may be required to complete a deferment or forbearance request form and to submit supporting documentation.
Never assume that your deferment or forbearance has been automatically granted. You’ll receive something in writing from your lender regarding whether your request for a deferment or forbearance has been approved. If you don’t receive a written confirmation from your lender, you need to contact your lender to see if your deferment or forbearance request has been approved and to get that approval in writing.
Remember that deferment and forbearance periods are only temporary. At the end of your approved deferment or forbearance period, you’ll go back into repayment and be required to make monthly payments on your student loans. If you’re still having trouble making your payments at the end of your approved deferment or forbearance period, you may be able to request another deferment or forbearance—you’ll need to contact your lender.
Making small payments is better than making no payments at all. Even if your deferment or forbearance allows you to postpone your payments, interest doesn’t stop accruing just because you’re not making payments. If you have the room in your budget, consider making interest-only payments or paying as much of the interest as you can.
You’re responsible for the interest on any student loans you have in forbearance and on any unsubsidized loans you have in deferment (the government will pay interest on deferred subsidized loans). Any interest that accrues during deferment or forbearance that you don’t pay will be added to your principal loan balance for you to repay once repayment resumes.
When interest is added to your principal loan balance, it’s capitalized, meaning it becomes part of the principal and subject to interest itself. In other words, you’ll end up paying interest on interest. Even if you can’t make a full interest-only payment, any little bit you pay is that much less interest that will get capitalized.
If you ever find yourself in this situation, the main thing is not to let your student loan payments overwhelm you; don’t just ignore your student loan bills as you try to get back on your financial feet—every missed payment could be another blemish on your credit report. Miss enough payments, and you could go into default.
Default is serious. Besides the damage it does to your credit report, which can take years to repair, having a defaulted student loan could keep you from being able to borrow any other money, whether it’s for a new car, a home or another semester at school. If you default on a federal student loan, the government can even decide to garnish your wages.
But by being proactive and talking to your lender, you may be able to give your budget a little breathing room. Your federal student loans come with repayment plans and deferment and forbearance benefits that could help you when you’re having trouble making your monthly payments.
Income-sensitive, extended, and graduated repayment plans might be able to lower your monthly payments on your federal student loans. If you’re still having trouble meeting your monthly payment amount, deferment and forbearance periods may allow you to temporarily postpone your monthly student loan payments altogether without defaulting or affecting your credit rating.
To help make sure you know the payment postponement options you have available to you for those times when you’re finding it hard to meet your student loan payments, NextStudent, a leading Phoenix-based education funding company, offers this guide to deferment and forbearance.
DefermentDeferment allows you to temporarily stop making payments on your student loans. You must contact your lender to request a deferment, and you may need to fill out a deferment request form.
You may be able to request a deferment on your federal student loans (including Perkins loans, subsidized and unsubsidized Stafford loans, Grad PLUS loans, and consolidation loans) or on your parent PLUS loans if you are:
Enrolled in school at least half time Unemployed Experiencing economic hardship In the military and have been deployed If you’re enrolled at least half-time in an eligible undergraduate, graduate or professional degree program, you can request an in-school deferment on your federal student loans. You’ll need to provide proof of enrollment each semester.
You may also request a deferment in cases of unemployment, financial hardship, or military deployment, for up to a year at a time, up to a total of three years over the life of the loan.
Some private student loans may also allow you to defer payments while you’re in school at least half time, deployed for military service, or having financial difficulties. You need to contact your private student loan lender.
Interest Charges on Loans in DefermentInterest does not stop accruing while you’re in deferment. However, when you’re in deferment, you’ll only be responsible for the interest charges on your unsubsidized loans. For subsidized loans (which include Perkins loans and subsidized Stafford loans), any interest that accrues during a deferment period is paid by the government.
On your unsubsidized loans, even when you’re not required to make any payments while you’re in deferment, interest continues to accrue, and the unpaid interest will be added to your principal loan balance for you to repay once you go back into repayment.
When you defer a Federal Consolidation Loan, the government will pay the interest on that portion of your consolidation loan that was originally a Perkins loan, subsidized Stafford loan, or other subsidized federal student loan. You’ll only be responsible for paying the interest on that portion of a consolidation loan that was originally a PLUS loan, Grad PLUS loan, unsubsidized Stafford loan, or other unsubsidized federal education loan.
You can always choose to make interest payments during deferment in order to avoid having any accrued interest added to your principal loan balance.
ForbearanceForbearance allows you to temporarily reduce or postpone payments on your student loans. You must request a forbearance from your lender, and you typically need to complete a forbearance request form. You may also need to submit supporting documentation, depending on the nature of your request.
Generally, your lender can grant a forbearance for up to a year at a time. Unlike unemployment or economic hardship deferments, there is no three-year cumulative limit on discretionary forbearance periods granted due to financial hardship.
Interest Charges on Student Loans in ForbearanceInterest does not stop accruing while you’re in forbearance. When your student loans are in forbearance, you’ll continue to be charged interest on those student loans, whether they’re subsidized or unsubsidized.
Any unpaid interest that accrues will be added to your principal loan balance for you to repay once you go back into repayment.
Some forbearance arrangements may have you making interest-only payments, so no interest gets added to your principal. If the forbearance you arrange with your lender allows you to temporarily stop making payments altogether, you can always choose to make interest payments in order to avoid having any accrued interest added to your principal loan balance.
Important Points to Keep in MindDeferments and discretionary forbearances are not automatic. If you’re having trouble making your student loan payments and you’d like to request a deferment or forbearance to either reduce or postpone your payments, you need to contact your lender. You may be required to complete a deferment or forbearance request form and to submit supporting documentation.
Never assume that your deferment or forbearance has been automatically granted. You’ll receive something in writing from your lender regarding whether your request for a deferment or forbearance has been approved. If you don’t receive a written confirmation from your lender, you need to contact your lender to see if your deferment or forbearance request has been approved and to get that approval in writing.
Remember that deferment and forbearance periods are only temporary. At the end of your approved deferment or forbearance period, you’ll go back into repayment and be required to make monthly payments on your student loans. If you’re still having trouble making your payments at the end of your approved deferment or forbearance period, you may be able to request another deferment or forbearance—you’ll need to contact your lender.
Making small payments is better than making no payments at all. Even if your deferment or forbearance allows you to postpone your payments, interest doesn’t stop accruing just because you’re not making payments. If you have the room in your budget, consider making interest-only payments or paying as much of the interest as you can.
You’re responsible for the interest on any student loans you have in forbearance and on any unsubsidized loans you have in deferment (the government will pay interest on deferred subsidized loans). Any interest that accrues during deferment or forbearance that you don’t pay will be added to your principal loan balance for you to repay once repayment resumes.
When interest is added to your principal loan balance, it’s capitalized, meaning it becomes part of the principal and subject to interest itself. In other words, you’ll end up paying interest on interest. Even if you can’t make a full interest-only payment, any little bit you pay is that much less interest that will get capitalized.
2008 Online College Rankings Spotlight Availability of Financial Aid
The Online Education Database recently released its second annual Online College Rankings list, highlighting the top 41 undergraduate online degree programs in the country.
Enrollment in online education programs has grown considerably over the past five years. In 2006 alone, enrollment rose by 10 percent, with nearly 3.5 million students — almost 20 percent of all U.S. higher education students — enrolled in at least one online course, according to The Sloan Consortium.
This upsurge in online enrollments may be at least partly explained by the flexibility online degree programs offer. With their right-at-your-desktop virtual classrooms and classes that can be taken around the clock, online programs are able to accommodate the schedules of non-traditional students who might otherwise be unable to attend a college or university. From stay-at-home parents who can’t make the commute to full-time professionals who can’t attend classes on a typical college schedule, these non-traditional students, in growing numbers, have been able to capitalize on the flexibility of online degree programs, as well as on the availability of financial aid and student loans.
Top 10 Online Schools of 2008In its rankings, the OEDb measured online programs in eight areas, including acceptance rate, student-faculty ratio, and availability of financial aid. In the financial aid category, the OEDb rated schools on the percentage of their students who are awarded financial aid.
The OEDb’s top 10 online schools of 2008, along with the percentage of their students who receive financial aid, are:
Upper Iowa University (100%) LeTourneau University (99%) Liberty University (99%) Nova Southeastern University (94%) California University of Pennsylvania (83%) Grand Canyon University (90%) Regent University (84%) Champlain College (75%) Westwood College (100%) Tiffin University (96%) Financing Your Online EducationAs a student in an accredited online degree program, you generally have the same college loans and financial aid options available to you as brick-and-mortar students. Depending on your financial aid situation, you could qualify to receive need-based federal financial aid, such as Pell Grants, Perkins student loans, and subsidized Stafford student loans. You may also be able to obtain additional funds from non–need-based private student loans and Federal PLUS Loans, Grad PLUS Loans, and unsubsidized Stafford student loans to help pay for your online education.
3 Types of Financial AidLike brick-and-mortar college students, as an online degree student, you may have three basic types of financial aid available to you:
1) Federal Financial Aid Federal financial aid may be either need-based or non–need-based. You’ll need to submit a FAFSA each year to qualify for most types of federal aid. Federal financial aid can come in the form of grants, which never have to be repaid; work-study awards, which you’ll have to earn throughout the semester, but which also won’t have to be repaid; and low-interest parent and student loans.
2) Institutional Financial Aid Your school may award scholarships, grants, or student loans out of its own endowment. These institutional awards may be merit-based, need-based, or both. For its need-based awards, your school may require its own financial application in addition to or in lieu of the FAFSA. Make sure you check with your financial aid office.
3) Private Student Loans If the education-related costs of your online degree program exceed your available federal and institutional financial aid, you may be able to get the additional funds you need with NextStudent’s Private Student Loans. Our Private Student Loans have no application deadlines, so you can apply at any point throughout the year, to fit your online class and tuition schedule — even if you missed the deadline to apply for federal financial aid.
In general, though, federal college loans offer more attractive terms than private student loans, so you should always look into your federal financing options first.
Enrollment in online education programs has grown considerably over the past five years. In 2006 alone, enrollment rose by 10 percent, with nearly 3.5 million students — almost 20 percent of all U.S. higher education students — enrolled in at least one online course, according to The Sloan Consortium.
This upsurge in online enrollments may be at least partly explained by the flexibility online degree programs offer. With their right-at-your-desktop virtual classrooms and classes that can be taken around the clock, online programs are able to accommodate the schedules of non-traditional students who might otherwise be unable to attend a college or university. From stay-at-home parents who can’t make the commute to full-time professionals who can’t attend classes on a typical college schedule, these non-traditional students, in growing numbers, have been able to capitalize on the flexibility of online degree programs, as well as on the availability of financial aid and student loans.
Top 10 Online Schools of 2008In its rankings, the OEDb measured online programs in eight areas, including acceptance rate, student-faculty ratio, and availability of financial aid. In the financial aid category, the OEDb rated schools on the percentage of their students who are awarded financial aid.
The OEDb’s top 10 online schools of 2008, along with the percentage of their students who receive financial aid, are:
Upper Iowa University (100%) LeTourneau University (99%) Liberty University (99%) Nova Southeastern University (94%) California University of Pennsylvania (83%) Grand Canyon University (90%) Regent University (84%) Champlain College (75%) Westwood College (100%) Tiffin University (96%) Financing Your Online EducationAs a student in an accredited online degree program, you generally have the same college loans and financial aid options available to you as brick-and-mortar students. Depending on your financial aid situation, you could qualify to receive need-based federal financial aid, such as Pell Grants, Perkins student loans, and subsidized Stafford student loans. You may also be able to obtain additional funds from non–need-based private student loans and Federal PLUS Loans, Grad PLUS Loans, and unsubsidized Stafford student loans to help pay for your online education.
3 Types of Financial AidLike brick-and-mortar college students, as an online degree student, you may have three basic types of financial aid available to you:
1) Federal Financial Aid Federal financial aid may be either need-based or non–need-based. You’ll need to submit a FAFSA each year to qualify for most types of federal aid. Federal financial aid can come in the form of grants, which never have to be repaid; work-study awards, which you’ll have to earn throughout the semester, but which also won’t have to be repaid; and low-interest parent and student loans.
2) Institutional Financial Aid Your school may award scholarships, grants, or student loans out of its own endowment. These institutional awards may be merit-based, need-based, or both. For its need-based awards, your school may require its own financial application in addition to or in lieu of the FAFSA. Make sure you check with your financial aid office.
3) Private Student Loans If the education-related costs of your online degree program exceed your available federal and institutional financial aid, you may be able to get the additional funds you need with NextStudent’s Private Student Loans. Our Private Student Loans have no application deadlines, so you can apply at any point throughout the year, to fit your online class and tuition schedule — even if you missed the deadline to apply for federal financial aid.
In general, though, federal college loans offer more attractive terms than private student loans, so you should always look into your federal financing options first.
July 1 Brings Record-Setting Drop in Interest Rates on Federal Student Loans
As a result of the string of rate cuts made by the Fed over the last year, most parent and student borrowers who have existing variable-rate federal student loans will see their interest rates drop by 3 percent on July 1, 2008 — the biggest rate drop in the history of the federal student loan program.
New undergraduate borrowers will also be seeing lower rates on subsidized Stafford student loans, with a 3.4-percent rate cut being phased in for new borrowers over the next four years as part of the College Cost Reduction and Access Act of 2007.
Variable-Rate Federal Stafford Student LoansStudents who took out Stafford student loans prior to July 1, 2006, will see a 3-percent reduction in their variable interest rate, which resets every year on July 1.
Stafford borrowers whose college loans were disbursed between July 1, 1998, and June 30, 2006, and who are currently enrolled in school at least half time, or whose student loans are currently in an authorized deferment or grace period, will see their Stafford rate drop from 6.62 percent to 3.61 percent.
If these borrowers’ student loans are in repayment or forbearance, the interest rate on their Stafford loans will drop from 7.22 percent to 4.21 percent.
The variable rates on Stafford student loans taken out prior to July 1, 1998, although higher than the rates on later variable-rate Stafford loans, will also drop by 3 percent.
Date of First Disbursement In-School Rate* as of July 1, 2008 Repayment Rate as of July 1, 2008 July 1, 1998 – June 30, 2006 3.61% 4.21% July 1, 1995 – June 30, 1998 4.41% 5.01% Oct. 1, 1992 – June 30, 1995 5.01% 5.01%
*Includes grace and deferment periods.
Fixed-Rate Federal Stafford Student LoansAs a result of the CCRAA legislation that passed last October, undergraduate borrowers who take out new subsidized Stafford student loans on or after July 1, 2008, will see a gradual reduction in interest rates over the next four years.
The rate on these student loans, which as of July 1, 2006, had been fixed at 6.8 percent, will drop to 6.0 percent on July 1, 2008. The fixed rate will continue to drop on July 1 each year for new college loans until July 1, 2012, when the interest rate is set to revert back to 6.8 percent, barring new legislation that keeps the rate reductions in place.
Date of First Disbursement Interest Rate July 1, 2006 – June 30, 2008 6.80% July 1, 2008 – June 30, 2009 6.00% July 1, 2009 – June 30, 2010 5.60% July 1, 2010 – June 30, 2011 4.50% July 1, 2011 – June 30, 2012 3.40%
The interest rate on new unsubsidized Stafford student loans for undergraduates will remain fixed at 6.8 percent, as will the rate on graduate Stafford student loans.
Federal PLUS Loans for ParentsParents who took out variable-rate PLUS loans between July 1, 1998, and June 30, 2006, will see the same 3-percent drop as variable-rate Stafford borrowers, when their interest rates reset on July 1, 2008. Variable PLUS rates for loans disbursed in this time period will fall from the current 8.02 percent to 5.01 percent.
The interest rate on federal PLUS loans taken out on or after July 1, 2006, remains fixed at 8.5 percent with no changes.
New undergraduate borrowers will also be seeing lower rates on subsidized Stafford student loans, with a 3.4-percent rate cut being phased in for new borrowers over the next four years as part of the College Cost Reduction and Access Act of 2007.
Variable-Rate Federal Stafford Student LoansStudents who took out Stafford student loans prior to July 1, 2006, will see a 3-percent reduction in their variable interest rate, which resets every year on July 1.
Stafford borrowers whose college loans were disbursed between July 1, 1998, and June 30, 2006, and who are currently enrolled in school at least half time, or whose student loans are currently in an authorized deferment or grace period, will see their Stafford rate drop from 6.62 percent to 3.61 percent.
If these borrowers’ student loans are in repayment or forbearance, the interest rate on their Stafford loans will drop from 7.22 percent to 4.21 percent.
The variable rates on Stafford student loans taken out prior to July 1, 1998, although higher than the rates on later variable-rate Stafford loans, will also drop by 3 percent.
Date of First Disbursement In-School Rate* as of July 1, 2008 Repayment Rate as of July 1, 2008 July 1, 1998 – June 30, 2006 3.61% 4.21% July 1, 1995 – June 30, 1998 4.41% 5.01% Oct. 1, 1992 – June 30, 1995 5.01% 5.01%
*Includes grace and deferment periods.
Fixed-Rate Federal Stafford Student LoansAs a result of the CCRAA legislation that passed last October, undergraduate borrowers who take out new subsidized Stafford student loans on or after July 1, 2008, will see a gradual reduction in interest rates over the next four years.
The rate on these student loans, which as of July 1, 2006, had been fixed at 6.8 percent, will drop to 6.0 percent on July 1, 2008. The fixed rate will continue to drop on July 1 each year for new college loans until July 1, 2012, when the interest rate is set to revert back to 6.8 percent, barring new legislation that keeps the rate reductions in place.
Date of First Disbursement Interest Rate July 1, 2006 – June 30, 2008 6.80% July 1, 2008 – June 30, 2009 6.00% July 1, 2009 – June 30, 2010 5.60% July 1, 2010 – June 30, 2011 4.50% July 1, 2011 – June 30, 2012 3.40%
The interest rate on new unsubsidized Stafford student loans for undergraduates will remain fixed at 6.8 percent, as will the rate on graduate Stafford student loans.
Federal PLUS Loans for ParentsParents who took out variable-rate PLUS loans between July 1, 1998, and June 30, 2006, will see the same 3-percent drop as variable-rate Stafford borrowers, when their interest rates reset on July 1, 2008. Variable PLUS rates for loans disbursed in this time period will fall from the current 8.02 percent to 5.01 percent.
The interest rate on federal PLUS loans taken out on or after July 1, 2006, remains fixed at 8.5 percent with no changes.
Last-Minute Withdrawal by Lenders Leaves Students Scrambling for Student Loans
On July 28, just a few weeks before the fall semester gets underway, some 40,000 college students in Massachusetts suddenly found themselves facing outstanding tuition bills with no money to pay them, when the nonprofit Massachusetts Educational Financing Authority announced that it wouldn’t be able to provide any private student loans for the upcoming semester. MEFA, the largest issuer of student loans to Massachusetts residents, had already suspended its federal student loan program back in April.
MEFA’s announcement came on the same day that the Brazos Higher Education Service Corp., the 26th-largest originator of federal college loans in 2007, released a statement of its own saying that it would be suspending its federal student loan program.
In the wake of these ongoing lender suspensions — according to FinAid.org, 131 lenders to date have suspended or curtailed their federal student loan programs, and 30 lenders have stopped issuing private student loans — a growing number of families are scrambling to find a provider for the parent and student loans they need to pay for fall semester, even as the first day of classes draws closer.
Nonprofit Lenders Struggle, Despite Federal Intervention
As more lenders are forced to suspend their student loan programs amid troubled credit markets that have left student loan providers without investors willing to buy their student loan portfolios, many nonprofit lenders like Brazos and MEFA are finding little relief in the federal legislation that was intended to help them.
Signed into law in May, the Ensuring Continued Access to Student Loans Act was aimed at assisting struggling student loan providers by allowing the Department of Education to buy their student loan portfolios as a means of providing the liquidity these lenders need to continue funding new student loans.
However, since many cash-strapped smaller state agencies and nonprofits lack the capital to disburse any new student loans to begin with, these lenders have no such portfolio to sell.
The Brazos Group, for example, had originally stopped offering federal college loans in March, but started its federal student loan program up again in May, after the government passed the Ensuring Continued Access to Student Loans Act.
“After suspending our [federal loan] participation earlier this year,” said Murray Watson, Brazos president and CEO, “we felt confident that the short-term liquidity plan established under the act would provide a way for us to continue helping students achieve their educational goals.”
But Brazos soon found it didn’t have the liquidity implicitly demanded by the legislation in order to receive a government-backed infusion of liquidity, which led to the organization’s second suspension of its federal student loan program late last month.
“We have simply run out of time to secure financing to disburse loans as soon as they are needed,” said Watson.
And Texas-based Brazos is clearly not the only one.
The financial aid office at Texas A&M University was recently notified by seven different lenders saying they would no longer be able to provide college loans, leaving the more than 54,000 students at A&M with a shrinking number of financing options as fall classes loom just around the corner.
MEFA’s announcement came on the same day that the Brazos Higher Education Service Corp., the 26th-largest originator of federal college loans in 2007, released a statement of its own saying that it would be suspending its federal student loan program.
In the wake of these ongoing lender suspensions — according to FinAid.org, 131 lenders to date have suspended or curtailed their federal student loan programs, and 30 lenders have stopped issuing private student loans — a growing number of families are scrambling to find a provider for the parent and student loans they need to pay for fall semester, even as the first day of classes draws closer.
Nonprofit Lenders Struggle, Despite Federal Intervention
As more lenders are forced to suspend their student loan programs amid troubled credit markets that have left student loan providers without investors willing to buy their student loan portfolios, many nonprofit lenders like Brazos and MEFA are finding little relief in the federal legislation that was intended to help them.
Signed into law in May, the Ensuring Continued Access to Student Loans Act was aimed at assisting struggling student loan providers by allowing the Department of Education to buy their student loan portfolios as a means of providing the liquidity these lenders need to continue funding new student loans.
However, since many cash-strapped smaller state agencies and nonprofits lack the capital to disburse any new student loans to begin with, these lenders have no such portfolio to sell.
The Brazos Group, for example, had originally stopped offering federal college loans in March, but started its federal student loan program up again in May, after the government passed the Ensuring Continued Access to Student Loans Act.
“After suspending our [federal loan] participation earlier this year,” said Murray Watson, Brazos president and CEO, “we felt confident that the short-term liquidity plan established under the act would provide a way for us to continue helping students achieve their educational goals.”
But Brazos soon found it didn’t have the liquidity implicitly demanded by the legislation in order to receive a government-backed infusion of liquidity, which led to the organization’s second suspension of its federal student loan program late last month.
“We have simply run out of time to secure financing to disburse loans as soon as they are needed,” said Watson.
And Texas-based Brazos is clearly not the only one.
The financial aid office at Texas A&M University was recently notified by seven different lenders saying they would no longer be able to provide college loans, leaving the more than 54,000 students at A&M with a shrinking number of financing options as fall classes loom just around the corner.
Monday, February 9, 2009
Auto Loan - Get Yours Now!
It is the desire of everyone to be mobile. The main issue here is how easy it is for people to acquire the best car loan repayment rates. To search for the optimum car loan quotes, there are different ways you can go about achieving this but the best method to use is the internet. It is said that, people with good credit records acquire loan online easily with low interest rate but it is possible for those with bad credit to get such loans.
As you shop online, do not accept the first quote you get from the first lender. It is wise to compare two to three different quotes before making a choice. Why do you compare quotes? You compare quotes to get the best lender, to get a loan with low interest rate and to get lenders that offer discounts. Your credit score is another important fact to consider when looking for low interest rates. If your credit record is good, the possibility of getting a low rate is very high and if you want to increase your score, ensure to make your repayments fast.
Keep away from late payments, if you have any outstanding bills endeavor to settle them. You need to do this to prevent any kind of obstacles that might arise when you are suppose to pay. Applications for a lot of loans from different lenders are sometimes not wise but if you know your credit record is great, then you can apply making sure that repayment schedules do not clash and that you are ready to bear any penalty.
As you shop online, do not accept the first quote you get from the first lender. It is wise to compare two to three different quotes before making a choice. Why do you compare quotes? You compare quotes to get the best lender, to get a loan with low interest rate and to get lenders that offer discounts. Your credit score is another important fact to consider when looking for low interest rates. If your credit record is good, the possibility of getting a low rate is very high and if you want to increase your score, ensure to make your repayments fast.
Keep away from late payments, if you have any outstanding bills endeavor to settle them. You need to do this to prevent any kind of obstacles that might arise when you are suppose to pay. Applications for a lot of loans from different lenders are sometimes not wise but if you know your credit record is great, then you can apply making sure that repayment schedules do not clash and that you are ready to bear any penalty.
Get Fast Loans Without Credit Checks Anywhere, Anytime - Online Auto Loans With No Credit Check
Today, there are two major problems that stop you from borrowing any type of loan. First, your Credit record, which is below average and serves as a parameter for lenders to check whether offering you any loan is risky or risk free. The moment they see that your score is below average, they immediately refuse to pay any loan to you. Second major problem is time constraint; You are working so you have to reach your office on time in the morning and in the evening when you leave your office, by the time lenders' offices also gets closed. So, forget application processing, you are not able to even check their requirements of offering loan.
Considering these two major problems, lenders now offer a new finance scheme called Online Auto Loans No Credit Check. As the name of this loan suggests lenders will not check your credit record. Lenders will decide your eligibility on the basis of your current profile. Also, to borrow you don't need to take off from your office to visit lenders office. Lenders have offered the facility of online application processing, so you can save your time and money. You can apply for this loan online anytime of the day and night and from anywhere. It doesn't matter whether you are in your office or at home. The only thing that matters is that you take out 2 minutes from your busy schedules, fill up and submit your online application by giving all details. Within no time, a customer service representative will call you to know your actual requirements and within few hours after approval you will have the money in your bank account.
Online Auto Loans No Credit Check is available as secured loan, which means the car that you would purchase with this loan amount shall be offered as collateral i.e. security against the loan provided. In case of secured loans, since the lenders have comparatively low risk, they charge lower rate of interest. However, if you are unable to pay their loan, they will have complete right over the car you offered as collateral and they will have the power to sell the car to recover their loss.
The loan amount for Online Auto Loans No Credit Check these loans depends on the price of the car. Usually in case of new car, lenders offered loan amount upto 80% of the price of the car. However, this is not fixed and depends upon borrowers profile also. It also depends upon the borrowers repaying ability and choice of the car.
The rate of interest of secured option varies from 6% to 11%. If you make a bigger down payment, lenders also offer a certain discount on the rate of interest due to their reduced risk.
Duration of payment depends upon various factors such as loan amount, your monthly income and expenses, the amount you can pay comfortably every month etc.
It is suggested that since now Online Auto Loans No Credit Check is offered online, you can very easily compare and research the terms and conditions of different lenders online and accordingly shortlist the best option
Considering these two major problems, lenders now offer a new finance scheme called Online Auto Loans No Credit Check. As the name of this loan suggests lenders will not check your credit record. Lenders will decide your eligibility on the basis of your current profile. Also, to borrow you don't need to take off from your office to visit lenders office. Lenders have offered the facility of online application processing, so you can save your time and money. You can apply for this loan online anytime of the day and night and from anywhere. It doesn't matter whether you are in your office or at home. The only thing that matters is that you take out 2 minutes from your busy schedules, fill up and submit your online application by giving all details. Within no time, a customer service representative will call you to know your actual requirements and within few hours after approval you will have the money in your bank account.
Online Auto Loans No Credit Check is available as secured loan, which means the car that you would purchase with this loan amount shall be offered as collateral i.e. security against the loan provided. In case of secured loans, since the lenders have comparatively low risk, they charge lower rate of interest. However, if you are unable to pay their loan, they will have complete right over the car you offered as collateral and they will have the power to sell the car to recover their loss.
The loan amount for Online Auto Loans No Credit Check these loans depends on the price of the car. Usually in case of new car, lenders offered loan amount upto 80% of the price of the car. However, this is not fixed and depends upon borrowers profile also. It also depends upon the borrowers repaying ability and choice of the car.
The rate of interest of secured option varies from 6% to 11%. If you make a bigger down payment, lenders also offer a certain discount on the rate of interest due to their reduced risk.
Duration of payment depends upon various factors such as loan amount, your monthly income and expenses, the amount you can pay comfortably every month etc.
It is suggested that since now Online Auto Loans No Credit Check is offered online, you can very easily compare and research the terms and conditions of different lenders online and accordingly shortlist the best option
Instant Auto Loans - Get Loans For Vehicles Within Minutes
Owning a car speaks for itself. So get yourself an instant auto loan and see a car parked outside your house.
These instant loans are available within a time span of just 24 hours and are also easy to get from the lenders. In most of the cases these loans are given by taking collateral as security from you. But there are loans which are also available to the lenders who are willing to give the loans in the unsecured form without any collateral. But in case of the unsecured instant auto loans the rate of interest is higher but reasonable for you to afford. You always have the option of negotiating with the lender about the rate of interest rate in order to bring it down, which is very much a possibility in this competitive market situation. Though the rate of interest is high the repayment time on the other hand is spread wide so that you get ample time at the time of repayment of the loan. Usually the repayment period stretches from 2 to 7 years of time.
There are few other ways by which you can bring down this rate of interest of instant auto loan and that is by giving more amount of money as down payment on the cost of the vehicle. Usually the lender will ask you for a down payment of 25% on the vehicle cost, but any amount of money above that will help you to get a lower rate of interest. It is highly advisable that you know in details about the rate of interest beforehand in order to get the best deal that is offered in the market. The mode of security can be the car that you purchase at the moment and the papers for the vehicle can be the collateral for your loan. In any other circumstances you need to deposit an asset that has an equity value attached to it.
Carney Alden is a Master in Accounting and Financial Management from Lancaster University Management School. Having completed his Master in Finance from Derby University. He provides useful advice through his articles that have been found very useful. To find Car Loans, New Car Loans, bad credit car loans visit
These instant loans are available within a time span of just 24 hours and are also easy to get from the lenders. In most of the cases these loans are given by taking collateral as security from you. But there are loans which are also available to the lenders who are willing to give the loans in the unsecured form without any collateral. But in case of the unsecured instant auto loans the rate of interest is higher but reasonable for you to afford. You always have the option of negotiating with the lender about the rate of interest rate in order to bring it down, which is very much a possibility in this competitive market situation. Though the rate of interest is high the repayment time on the other hand is spread wide so that you get ample time at the time of repayment of the loan. Usually the repayment period stretches from 2 to 7 years of time.
There are few other ways by which you can bring down this rate of interest of instant auto loan and that is by giving more amount of money as down payment on the cost of the vehicle. Usually the lender will ask you for a down payment of 25% on the vehicle cost, but any amount of money above that will help you to get a lower rate of interest. It is highly advisable that you know in details about the rate of interest beforehand in order to get the best deal that is offered in the market. The mode of security can be the car that you purchase at the moment and the papers for the vehicle can be the collateral for your loan. In any other circumstances you need to deposit an asset that has an equity value attached to it.
Carney Alden is a Master in Accounting and Financial Management from Lancaster University Management School. Having completed his Master in Finance from Derby University. He provides useful advice through his articles that have been found very useful. To find Car Loans, New Car Loans, bad credit car loans visit
Auto Loans Rates - Utilize the Easy Availability of Cash to Buy Vehicles
Buying a brand new car is no more a dream but you can very well buy one such car by applying for an auto loan.
These loans are available in both secured and unsecured forms. In case of the secured loans the rates of interest are on the lower side because you have to keep collateral against the loan amount. This security is in the form of the car that you purchase. The lender keeps the papers of the car as security against the loan amount. The rate of interest in this case amounts to 5% to 8%. But in case of the unsecured loans you don't need to keep collateral as security against the loan. That is the main reason the rate of interest being lower. The other advantage that you can derive from these unsecured loans is that the lenders do not perform any credit check before giving the loans. Thus you can get hold of a loan even if you have a poor credit history in the past. The rate of interest in this can go as high as 8% to 12%. You should know the loan application thoroughly before opting for any specific loan as it is very important to know the loan quotes in order to get the best deal from the lenders.
The terms for the loans is usually spread for a period of 12, 24 and 36 months. The thing that you need to keep in mind before applying for the loan is the interest rate that the companies are offering you at the present moment. The amount of interest is usually higher if you opt for a shorter tenure loan. But in case of a loan that has longer tenure will carry a lower monthly repayment but at the end of the day you will end up paying more by way of interest. For example in case of a loan that has tenure of 60 months you will have to pay $12000 for interest which amounts to 6.39% of the loan amount. On the other hand the loan having tenure of 36 months will carry a rate of interest amounting to 5.34%.
These loans are available in both secured and unsecured forms. In case of the secured loans the rates of interest are on the lower side because you have to keep collateral against the loan amount. This security is in the form of the car that you purchase. The lender keeps the papers of the car as security against the loan amount. The rate of interest in this case amounts to 5% to 8%. But in case of the unsecured loans you don't need to keep collateral as security against the loan. That is the main reason the rate of interest being lower. The other advantage that you can derive from these unsecured loans is that the lenders do not perform any credit check before giving the loans. Thus you can get hold of a loan even if you have a poor credit history in the past. The rate of interest in this can go as high as 8% to 12%. You should know the loan application thoroughly before opting for any specific loan as it is very important to know the loan quotes in order to get the best deal from the lenders.
The terms for the loans is usually spread for a period of 12, 24 and 36 months. The thing that you need to keep in mind before applying for the loan is the interest rate that the companies are offering you at the present moment. The amount of interest is usually higher if you opt for a shorter tenure loan. But in case of a loan that has longer tenure will carry a lower monthly repayment but at the end of the day you will end up paying more by way of interest. For example in case of a loan that has tenure of 60 months you will have to pay $12000 for interest which amounts to 6.39% of the loan amount. On the other hand the loan having tenure of 36 months will carry a rate of interest amounting to 5.34%.
Help in Getting an Auto Loan When Bankrupt
To get an auto loan with bankruptcy some steps must be followed before looking for a loans. You should get your credit report that contains your credit history. Make sure that your credit accounts listed are accurate and there are no open accounts that should have been closed. It is advised to add a small page that explains what caused the bankruptcy. In case of real mishap like medical emergencies that caused debt which resulted in bankruptcy the lender may give you better interest rates than in normal bankruptcy conditions.
Plan Your Car Purchase Before a person with bankruptcy goes out to search for an auto loan he must make sure how much he can manage to pay as monthly installments. This will determine which deal in the market he should opt for. The amount and the period in which the repayment must be done are used to calculate the monthly payments. Do the math and find out which loan gives you affordable loan payments.
Restrictions in Auto Loan after Bankruptcy Some restrictions or points that lenders stress are also faced by the unfortunate bankruptcy affected person. The first thing is that the bankruptcy should be discharged before lenders should give the loan. To be eligible for the bankrupt borrower must have minimum gross $1,500 income if his score is below 625. There should not have had any repossession in previous year.
The age limit is 18 and person should be a US resident if that person is in America. Down payment may be required as well because after bankruptcy auto loans are 8 times the persons monthly income. For instance, if the earning is $1,500 than the auto loan given is $12,000. The monthly payment should remain within 20% of the monthly earnings.
Reason for Above Restrictions These restrictions for auto loan are enforced so that the already bankruptcy affected person must not fall in unmanageable debt problems and the lender is also protected. The interest rates on auto loans also vary according to the risk involved in lending and car chosen
Use a Car Loan Lender The car loan lenders can be helpful to find you an auto loan. These lenders work with financial institutions and give loans to the people. Online auto loans lenders are a better option as you can find better deals than the local loan dealers. Interest rates on the internet range between 5.7% and 7.2%. The online company want the borrower to go through an authorized dealer which is necessary for lending to a bankrupt person.
Explain Your Situation The auto loan application asks that why bankruptcy occurred. Don't hesitate in telling and elaborate the problems that caused you the big financial set back. Tell them how you have now planned your finances to resolve your financial crisis. Do include improvement in the credit score.
Consider Refinancing When you get a car loan you must look to refinance in future as well. In some years if you are regular in payments you will qualify for lesser interest rates. Bankruptcy does have a lot of disadvantages over a person's financial life. The biggest one is being unable to find low interest unsecured loans easily. Without a car a person really becomes crippled in a sense that he can not move freely in big cities not even a single town. With bankruptcy it becomes even difficult to get an auto loan.
To get an auto loan with bankruptcy some steps must be followed before looking for a loans. You should get your credit report that contains your credit history. Make sure that your credit accounts listed are accurate and there are no open accounts that should have been closed. It is advised to add a small page that explains what caused the bankruptcy. In case of real mishap like medical emergencies that caused debt which resulted in bankruptcy the lender may give you better interest rates than in normal bankruptcy conditions.
Plan Your Car Purchase Before a person with bankruptcy goes out to search for an auto loan he must make sure how much he can manage to pay as monthly installments for the loan. This will determine which deal in the market he should opt for. The amount and the period in which the repayment must be done are used to calculate the monthly payments. Do the math and find out which loan gives you affordable loan payments.
Restrictions in Auto Loan after Bankruptcy Some restrictions or points that lenders stress are also faced by the unfortunate bankruptcy affected person. The first thing is that the bankruptcy should be discharged before lenders should give the loan. To be eligible for auto loan the bankrupt borrower must have minimum gross $1,500 income if his score is below 625. There shouldn't have had any repossession in previous year.
The age limit is 18 and a person should be a US resident if that person is in America. Down payment may be required as well because after bankruptcy auto loans are 8 times the person's monthly income. For instance, if the earning is $1,500 than the auto loan given is $12,000. The monthly payment should remain within 20% of the monthly earnings.
Reason for Above Restrictions These restrictions for auto loan are enforced so that the already bankruptcy affected person must not fall in unmanageable debt problems and the lender is also protected. The interest rates on auto loans also vary according to the risk involved in lending and car chosen
Use a Car Loan Lender The car loan lenders can be helpful to find you an auto loan. These lenders work with financial institutions and give loans to the people. Online auto loans lenders are a better option as you can find better deals than the local loan dealers. Interest rates on the internet range between 5.7% and 7.2%. The online company want the borrower to go through an authorized dealer which is necessary for lending an auto loan to a bankrupt person.
Explain Your Situation The auto loan application asks that why bankruptcy occurred. Don't hesitate in telling and elaborate the problems that caused you the big financial set back. Tell them how you have now planned your finances to resolve your financial crisis. Do include improvement in the credit score.
Plan Your Car Purchase Before a person with bankruptcy goes out to search for an auto loan he must make sure how much he can manage to pay as monthly installments. This will determine which deal in the market he should opt for. The amount and the period in which the repayment must be done are used to calculate the monthly payments. Do the math and find out which loan gives you affordable loan payments.
Restrictions in Auto Loan after Bankruptcy Some restrictions or points that lenders stress are also faced by the unfortunate bankruptcy affected person. The first thing is that the bankruptcy should be discharged before lenders should give the loan. To be eligible for the bankrupt borrower must have minimum gross $1,500 income if his score is below 625. There should not have had any repossession in previous year.
The age limit is 18 and person should be a US resident if that person is in America. Down payment may be required as well because after bankruptcy auto loans are 8 times the persons monthly income. For instance, if the earning is $1,500 than the auto loan given is $12,000. The monthly payment should remain within 20% of the monthly earnings.
Reason for Above Restrictions These restrictions for auto loan are enforced so that the already bankruptcy affected person must not fall in unmanageable debt problems and the lender is also protected. The interest rates on auto loans also vary according to the risk involved in lending and car chosen
Use a Car Loan Lender The car loan lenders can be helpful to find you an auto loan. These lenders work with financial institutions and give loans to the people. Online auto loans lenders are a better option as you can find better deals than the local loan dealers. Interest rates on the internet range between 5.7% and 7.2%. The online company want the borrower to go through an authorized dealer which is necessary for lending to a bankrupt person.
Explain Your Situation The auto loan application asks that why bankruptcy occurred. Don't hesitate in telling and elaborate the problems that caused you the big financial set back. Tell them how you have now planned your finances to resolve your financial crisis. Do include improvement in the credit score.
Consider Refinancing When you get a car loan you must look to refinance in future as well. In some years if you are regular in payments you will qualify for lesser interest rates. Bankruptcy does have a lot of disadvantages over a person's financial life. The biggest one is being unable to find low interest unsecured loans easily. Without a car a person really becomes crippled in a sense that he can not move freely in big cities not even a single town. With bankruptcy it becomes even difficult to get an auto loan.
To get an auto loan with bankruptcy some steps must be followed before looking for a loans. You should get your credit report that contains your credit history. Make sure that your credit accounts listed are accurate and there are no open accounts that should have been closed. It is advised to add a small page that explains what caused the bankruptcy. In case of real mishap like medical emergencies that caused debt which resulted in bankruptcy the lender may give you better interest rates than in normal bankruptcy conditions.
Plan Your Car Purchase Before a person with bankruptcy goes out to search for an auto loan he must make sure how much he can manage to pay as monthly installments for the loan. This will determine which deal in the market he should opt for. The amount and the period in which the repayment must be done are used to calculate the monthly payments. Do the math and find out which loan gives you affordable loan payments.
Restrictions in Auto Loan after Bankruptcy Some restrictions or points that lenders stress are also faced by the unfortunate bankruptcy affected person. The first thing is that the bankruptcy should be discharged before lenders should give the loan. To be eligible for auto loan the bankrupt borrower must have minimum gross $1,500 income if his score is below 625. There shouldn't have had any repossession in previous year.
The age limit is 18 and a person should be a US resident if that person is in America. Down payment may be required as well because after bankruptcy auto loans are 8 times the person's monthly income. For instance, if the earning is $1,500 than the auto loan given is $12,000. The monthly payment should remain within 20% of the monthly earnings.
Reason for Above Restrictions These restrictions for auto loan are enforced so that the already bankruptcy affected person must not fall in unmanageable debt problems and the lender is also protected. The interest rates on auto loans also vary according to the risk involved in lending and car chosen
Use a Car Loan Lender The car loan lenders can be helpful to find you an auto loan. These lenders work with financial institutions and give loans to the people. Online auto loans lenders are a better option as you can find better deals than the local loan dealers. Interest rates on the internet range between 5.7% and 7.2%. The online company want the borrower to go through an authorized dealer which is necessary for lending an auto loan to a bankrupt person.
Explain Your Situation The auto loan application asks that why bankruptcy occurred. Don't hesitate in telling and elaborate the problems that caused you the big financial set back. Tell them how you have now planned your finances to resolve your financial crisis. Do include improvement in the credit score.
The Thrills and Dangers of Day Trading
Many people have seen images of day traders with their multitude of computer screens showing real-time charts and quotes, trading the ups and downs of the markets. It all looks very exciting, doesn't it? The thrill of becoming rich in a short amount of time is appealing to nearly everyone.
Reality Before you quit your day job, consider the realities of day trading. It often requires a lot of money to begin with, and borrowing money to trade with is generally a bad idea. It can require hours and hours of staring at computer screens, with little time for lunch or restroom breaks. This can lead to physical and mental exhaustion and poor decision making. It can also be very risky, especially when investing large sums of money. Since most stock prices only fluctuate one or two percent every day, you need to put a lot of money into it in order to make a decent profit. The biggest danger here is a sudden price fluctuation in the wrong direction, causing a massive loss that wipes out all of your gains from the past few days or even weeks. Compounding this problem is that your diminished trading capital will lead to smaller profits in the future, possibly leading to desperate measures such as taking bigger risks to get back on track. All of these factors add up to a potentially stressful situation!
Don't Give Up If you have a strong desire to make a living or a partial living off of day trading, then don't be discouraged by this article. Instead, take the precautions necessary, begin practicing, and work on the discipline needed to succeed in the long run. There are thousands of successful day traders around the world. It might be wise to have another source of income in case your trading isn't so successful every day. That would help sustain you and reduce your daily stress.
Don't Bet the Farm Every once in a while you may find a "sure thing" in the market. You may be tempted to "bet the farm" on this perfect trade. More often than not, these kinds of trades do not work out. If you bet more than you should have, it can literally ruin your life. Imagine getting a bank loan of $100,000 for trading and using your house as collateral. You put it all in one trade and then lose fifty percent of it in less than one day. You have instantly lost $50,000 and the bank may want to sell your house in order to get their money back. It can take years or decades to pay back losses like that. It is much safer to trade with money you can afford to lose.
A Good Book There is a good book out there called, "How I Trade for a Living," by Gary Smith. The author takes time to do his homework each and every day. He watches the financial television shows at nearly every waking hour, reads newspapers and magazines about the global economy, and always pays attention to overseas markets. He uses diligence and discipline to get a good handle on what the local markets are going to do the rest of the day. The result? He makes a sizeable, consistent profit every month with only one bad month in years of trading.
Reality Before you quit your day job, consider the realities of day trading. It often requires a lot of money to begin with, and borrowing money to trade with is generally a bad idea. It can require hours and hours of staring at computer screens, with little time for lunch or restroom breaks. This can lead to physical and mental exhaustion and poor decision making. It can also be very risky, especially when investing large sums of money. Since most stock prices only fluctuate one or two percent every day, you need to put a lot of money into it in order to make a decent profit. The biggest danger here is a sudden price fluctuation in the wrong direction, causing a massive loss that wipes out all of your gains from the past few days or even weeks. Compounding this problem is that your diminished trading capital will lead to smaller profits in the future, possibly leading to desperate measures such as taking bigger risks to get back on track. All of these factors add up to a potentially stressful situation!
Don't Give Up If you have a strong desire to make a living or a partial living off of day trading, then don't be discouraged by this article. Instead, take the precautions necessary, begin practicing, and work on the discipline needed to succeed in the long run. There are thousands of successful day traders around the world. It might be wise to have another source of income in case your trading isn't so successful every day. That would help sustain you and reduce your daily stress.
Don't Bet the Farm Every once in a while you may find a "sure thing" in the market. You may be tempted to "bet the farm" on this perfect trade. More often than not, these kinds of trades do not work out. If you bet more than you should have, it can literally ruin your life. Imagine getting a bank loan of $100,000 for trading and using your house as collateral. You put it all in one trade and then lose fifty percent of it in less than one day. You have instantly lost $50,000 and the bank may want to sell your house in order to get their money back. It can take years or decades to pay back losses like that. It is much safer to trade with money you can afford to lose.
A Good Book There is a good book out there called, "How I Trade for a Living," by Gary Smith. The author takes time to do his homework each and every day. He watches the financial television shows at nearly every waking hour, reads newspapers and magazines about the global economy, and always pays attention to overseas markets. He uses diligence and discipline to get a good handle on what the local markets are going to do the rest of the day. The result? He makes a sizeable, consistent profit every month with only one bad month in years of trading.
Smart Short Term Investing
Smart short term investments can be very profitable, or it can break your heart. You must know the market quite well first. Also knowing a few things on the individual behavior of the stock you want to trade. Some stocks are well suited for best short term, while others are simply not a good choice. Being aware of how the stock have been behaving in between negotiating sessions is a major key to success in the smart short term investments.
Dealing with short term investments, you will need to focus on these factors, as well as knowing the long-term trend of stocks. You must also factor in whether the stock market is moving in both directions, or if it is stagnant.
Of course if you are planning short term investing, you must have clear conceptual plan in place before you start. How you approach the aspects of investing in and out can become crucial. There are five main smart investing patterns that can be used for short term, and one main concept that applies equally to all five. No matter how you choose to handle your short term investments, you must have self-discipline. If you do not have discipline, then you should not be buying stocks until you master the concept. In life, there are many things that require such self -discipline, from dieting to smoking, but this can be just as much of a health risk. Your financial wellbeing is at risk, so do not put any of your short term investment plans into action until you have mastered the art of self discipline.
Short term investors can use: trend trading, counter-trend trading, breakout trading, pullback trading and reversal trading, although this latter term is not so much a type of trading as it an overall part of the whole picture in a short term trading strategy. Trend trading has the least in common with short term trading, and requires some extra patience that might not really be available to the short-termers.
Knowing all of the stock information and the short term trading types (trend, counter trend, breakout and pullback) is not enough for success in the short-term market. You must understand that you still need to have solid business savvy and some good fortune. You still must stay below your financial limits, never exceed your own personal loss cap even if you are guaranteed a "sure thing.
Once upon a time, the only people that had vital stock information were brokers. They would all huddle around the ticker and watch as little blips and dots told the fortunes or loss thereof of countless companies across the country. News of the foreign markets was virtually unheard of at the time, and there was very little getting out to the general public about which stock was performing in what way. That began to change as more and more people became involved in the market. Then came television- with nightly news broadcasts that would touch on key financial stories as the lucky few huddled around their set in wide eyed wonder. Not too long after that came cable networks dedicated to finances- twenty-four hours a day.
Technology has thrown in yet another option however and it is just as close as your television, but can be far more informative and far more up to date. The Internet. Which allows us to get more real time stock tips and trade information, so that we can make analysis on our own, or compare information with our brokers.
Stock trading software can give us the tools to understand all of the charts and other information that is simply a mouse click away now. Trading software can be useful, for a smart short term investor. The right software can allow you to make sense of countless bits of information, which can be downloaded and updated at regular intervals right to your home computer. You can set the software to send you alerts when there has been substantial movement on the stocks that you choose, or you can check it when you choose to, but either way, the software can make it easier to manage.
Dealing with short term investments, you will need to focus on these factors, as well as knowing the long-term trend of stocks. You must also factor in whether the stock market is moving in both directions, or if it is stagnant.
Of course if you are planning short term investing, you must have clear conceptual plan in place before you start. How you approach the aspects of investing in and out can become crucial. There are five main smart investing patterns that can be used for short term, and one main concept that applies equally to all five. No matter how you choose to handle your short term investments, you must have self-discipline. If you do not have discipline, then you should not be buying stocks until you master the concept. In life, there are many things that require such self -discipline, from dieting to smoking, but this can be just as much of a health risk. Your financial wellbeing is at risk, so do not put any of your short term investment plans into action until you have mastered the art of self discipline.
Short term investors can use: trend trading, counter-trend trading, breakout trading, pullback trading and reversal trading, although this latter term is not so much a type of trading as it an overall part of the whole picture in a short term trading strategy. Trend trading has the least in common with short term trading, and requires some extra patience that might not really be available to the short-termers.
Knowing all of the stock information and the short term trading types (trend, counter trend, breakout and pullback) is not enough for success in the short-term market. You must understand that you still need to have solid business savvy and some good fortune. You still must stay below your financial limits, never exceed your own personal loss cap even if you are guaranteed a "sure thing.
Once upon a time, the only people that had vital stock information were brokers. They would all huddle around the ticker and watch as little blips and dots told the fortunes or loss thereof of countless companies across the country. News of the foreign markets was virtually unheard of at the time, and there was very little getting out to the general public about which stock was performing in what way. That began to change as more and more people became involved in the market. Then came television- with nightly news broadcasts that would touch on key financial stories as the lucky few huddled around their set in wide eyed wonder. Not too long after that came cable networks dedicated to finances- twenty-four hours a day.
Technology has thrown in yet another option however and it is just as close as your television, but can be far more informative and far more up to date. The Internet. Which allows us to get more real time stock tips and trade information, so that we can make analysis on our own, or compare information with our brokers.
Stock trading software can give us the tools to understand all of the charts and other information that is simply a mouse click away now. Trading software can be useful, for a smart short term investor. The right software can allow you to make sense of countless bits of information, which can be downloaded and updated at regular intervals right to your home computer. You can set the software to send you alerts when there has been substantial movement on the stocks that you choose, or you can check it when you choose to, but either way, the software can make it easier to manage.
How to Manage Risk to Boost Trading Profits
It never ceases to amaze me, after years of observing and participating in online investing and trading forums, how most amateur traders are obsessed with finding a holy grail trading system. No matter what instrument they trade, stocks, Forex, Commodities, etc., they all have the same attitude.
In my experience, most questions posed by inexperienced investors focus on finding the next hot stock or the best trading system for trading stocks, forex or commodities. They are all hoping to catch a few big winners just by scouring the internet for some hot tips. Or, they think there may be a hot trading system out there that will make them a millionaire in no time. Or, if they are focused on short-term trading, they are hoping to learn that one trading system that will give them 90% winners, and profits month after month.
Therefore, the financial industry continues to prey on these attitudes with countless books and trading systems. The brokerage houses want you to open an account so they can sell you the latest and greatest ideas in the stock market, while padding their accounts with your commissions. The discount brokers will sell you on the idea that you can make big profits just by using their trading platforms and using a couple technical indicators.
And, of course, the biggest fraud is put on by professional money managers, who promise consistent profits to unaware investors. We have just realized the biggest fraud of all, with a potential $50 billion Ponzi scheme run by formerly reputable money manager Bernie Madoff.
Due to his long running reputation on Wall Street, all Madoff had to do was tell his investors it was possible to generate consistent monthly profits and annual returns of 12% without ever suffering through a drawdown. All the while, he was simply soliciting new money to pay off the original and oldest investors. There have been plenty of examples like this, but the Madoff scam is clearly the biggest fraud of all time.
The bottom line is, there is no such thing as the Holy Grail of trading! There is no one trading method or system that will generate huge returns for anyone, year after year. History is wrought with hundreds of examples of trading legends who made it big, then crashed and burned.
The best traders go through periods of underperformance, and they accept this, because they know, that in the long run, their trading methods will provide strong returns. However, they don't expect to make 100% on their money every year, and they don't expect to make money every day, every week, or even every month. Very few are capable of such returns, and those that are, will not share their strategies with the public!
Professional traders are also not worried about having a trading system that is right 100% of the time. They know that this is impossible. All they are concerned with is finding an EDGE that, over time, will be profitable. On the other hand, most amateur traders are worried about being RIGHT all the time, rather than being profitable. They can't stand the thought of having a losing trade. Professional traders know that losing trades are part of the game.
One thing all of the best traders DO have in common, however, is that they know how to manage risk! Because they know that the markets can turn on them at any time, they are more focused on managing the risk in their portfolios, rather than on specific entries and exits in their trading models.
Most amateur traders can not seem to get past the idea that the initial trade entry, or stock selection, is the NOT the most important part of any trading model. It is what you do AFTER you enter a trade that is more important. And even more important than knowing when to exit a position is learning how to manage your risk.
One popular concept in the trading world is the idea of minimizing your risk to 1% or 2% of the equity in your account on any given trade. For example, if you have $100,000 in your account, then you would only risk $1,000 or $2,000 on any particular trade. If you want to buy XYZ stock at $20, and you have determined that you will exit the trade if it goes down to $19, then you will trade no more than 2,000 shares.
This is a good start, but is not the end of managing your risk. You can limit your risk to 1% if you like, but if you do not have the discipline to stick to your trading rules, and you take trades that you should not, you will still lose, and lose quickly! That is just one example of not controlling your risk. The following is a list of do's and don'ts when it comes to managing risk.
1. Do not over trade. This can mean risking too much on any one position, or trading too much, simply for the thrill. With that in mind, once you have developed the entry and exit rules for your system, STICK to them! Don't take trades that are not signaled just because you feel the need to trade!
2. Don't trade markets that are highly correlated at the same time, unless you are doing some sort of spread trade by buying one market and shorting the other. Also beware of markets that are inversely correlated. For instance, if the Japanese Yen is going up while the Nikkei index is going down, don't buy the Yen and short the Nikkei! You are simply doubling your bet!
3. Don't add to positions when the markets become more volatile! Some trading systems look to capitalize on long term trends and will pyramid positions to achieve greater profits. Only the skilled trader should attempt this, because normally when trends are in place for a while, the volatility tends to increase.
4. If the volatility in your trading position increases dramatically, consider exiting some of your position.
5. Don't begin hoping that one position will turn into a big winner. You must check your emotions at the door when you enter your trading room. Never marry yourself to a position. If you have a profitable strategy, it is many trades over time that will bring those profits, not one big winner.
6. Absolutely, positively know where you will exit a position BEFORE you enter a new trade!
7. Absolutely, positively know how you will trail your stops on your positions!
8. If you are having a bad trading day, trading week, or trading month, TAKE A BREAK! When have not taken a break for a long time, our trading judgment can become clouded, and we begin to break Rule #1. Once you find yourself breaking that rule, it is time to step away from the trading desk for a while.
9. If you are on a losing streak, and your equity has declined, reduce your risk!
10. Finally, when you do take some profits, take them out of your trading account and diversify your investments! Even though you may have a diversified portfolio traded by your trading system, you still should invest in completely different markets, such as real estate, bonds, art, commodities, or even another business.
If you can learn how to manage risk properly, you will be on your way to becoming a successful trader and investor.
In my experience, most questions posed by inexperienced investors focus on finding the next hot stock or the best trading system for trading stocks, forex or commodities. They are all hoping to catch a few big winners just by scouring the internet for some hot tips. Or, they think there may be a hot trading system out there that will make them a millionaire in no time. Or, if they are focused on short-term trading, they are hoping to learn that one trading system that will give them 90% winners, and profits month after month.
Therefore, the financial industry continues to prey on these attitudes with countless books and trading systems. The brokerage houses want you to open an account so they can sell you the latest and greatest ideas in the stock market, while padding their accounts with your commissions. The discount brokers will sell you on the idea that you can make big profits just by using their trading platforms and using a couple technical indicators.
And, of course, the biggest fraud is put on by professional money managers, who promise consistent profits to unaware investors. We have just realized the biggest fraud of all, with a potential $50 billion Ponzi scheme run by formerly reputable money manager Bernie Madoff.
Due to his long running reputation on Wall Street, all Madoff had to do was tell his investors it was possible to generate consistent monthly profits and annual returns of 12% without ever suffering through a drawdown. All the while, he was simply soliciting new money to pay off the original and oldest investors. There have been plenty of examples like this, but the Madoff scam is clearly the biggest fraud of all time.
The bottom line is, there is no such thing as the Holy Grail of trading! There is no one trading method or system that will generate huge returns for anyone, year after year. History is wrought with hundreds of examples of trading legends who made it big, then crashed and burned.
The best traders go through periods of underperformance, and they accept this, because they know, that in the long run, their trading methods will provide strong returns. However, they don't expect to make 100% on their money every year, and they don't expect to make money every day, every week, or even every month. Very few are capable of such returns, and those that are, will not share their strategies with the public!
Professional traders are also not worried about having a trading system that is right 100% of the time. They know that this is impossible. All they are concerned with is finding an EDGE that, over time, will be profitable. On the other hand, most amateur traders are worried about being RIGHT all the time, rather than being profitable. They can't stand the thought of having a losing trade. Professional traders know that losing trades are part of the game.
One thing all of the best traders DO have in common, however, is that they know how to manage risk! Because they know that the markets can turn on them at any time, they are more focused on managing the risk in their portfolios, rather than on specific entries and exits in their trading models.
Most amateur traders can not seem to get past the idea that the initial trade entry, or stock selection, is the NOT the most important part of any trading model. It is what you do AFTER you enter a trade that is more important. And even more important than knowing when to exit a position is learning how to manage your risk.
One popular concept in the trading world is the idea of minimizing your risk to 1% or 2% of the equity in your account on any given trade. For example, if you have $100,000 in your account, then you would only risk $1,000 or $2,000 on any particular trade. If you want to buy XYZ stock at $20, and you have determined that you will exit the trade if it goes down to $19, then you will trade no more than 2,000 shares.
This is a good start, but is not the end of managing your risk. You can limit your risk to 1% if you like, but if you do not have the discipline to stick to your trading rules, and you take trades that you should not, you will still lose, and lose quickly! That is just one example of not controlling your risk. The following is a list of do's and don'ts when it comes to managing risk.
1. Do not over trade. This can mean risking too much on any one position, or trading too much, simply for the thrill. With that in mind, once you have developed the entry and exit rules for your system, STICK to them! Don't take trades that are not signaled just because you feel the need to trade!
2. Don't trade markets that are highly correlated at the same time, unless you are doing some sort of spread trade by buying one market and shorting the other. Also beware of markets that are inversely correlated. For instance, if the Japanese Yen is going up while the Nikkei index is going down, don't buy the Yen and short the Nikkei! You are simply doubling your bet!
3. Don't add to positions when the markets become more volatile! Some trading systems look to capitalize on long term trends and will pyramid positions to achieve greater profits. Only the skilled trader should attempt this, because normally when trends are in place for a while, the volatility tends to increase.
4. If the volatility in your trading position increases dramatically, consider exiting some of your position.
5. Don't begin hoping that one position will turn into a big winner. You must check your emotions at the door when you enter your trading room. Never marry yourself to a position. If you have a profitable strategy, it is many trades over time that will bring those profits, not one big winner.
6. Absolutely, positively know where you will exit a position BEFORE you enter a new trade!
7. Absolutely, positively know how you will trail your stops on your positions!
8. If you are having a bad trading day, trading week, or trading month, TAKE A BREAK! When have not taken a break for a long time, our trading judgment can become clouded, and we begin to break Rule #1. Once you find yourself breaking that rule, it is time to step away from the trading desk for a while.
9. If you are on a losing streak, and your equity has declined, reduce your risk!
10. Finally, when you do take some profits, take them out of your trading account and diversify your investments! Even though you may have a diversified portfolio traded by your trading system, you still should invest in completely different markets, such as real estate, bonds, art, commodities, or even another business.
If you can learn how to manage risk properly, you will be on your way to becoming a successful trader and investor.
Discover the Top 3 Ways to Learn About Contracts For Difference (CFDs)
Today we're going to focus on the best way to learn about Contracts for Difference or CFDs as they are commonly known. Fortunately the rapid growth of Contracts for Difference trading has meant there are a number of fantastic resources to learn about CFDs and all will contribute to giving you an advantage in the market.
Attend a free seminar
By far the fastest way for people to learn about CFDs is to attend a live seminar with one of the major CFD brokers. Given the size of the CFD brokers and the amount of business they generate they are in a position to offer free seminars and provide a reasonable level of CFD education.
The CFD brokers know that it costs a lot of money to acquire a new client and so they are willing to spend a good deal of money in keeping you once you are on board. This means you will have a wide selection of free CFD trading tutorials that get you started and on your way to safe and sensible trading.
Free education for CFD clients
Once you are on board with your CFD broker and have your account established you can start to concentrate on the education they provide. Most CFD brokers have invested thousands of dollars in qualified staff to teach you the latest techniques and strategies on winning in the markets. Take full advantage of every opportunity they give you and always remember to trade well within your means.
Doing your research online
If you are happy to scan the Internet you will discover there is a fantastic range of free resources available to fast track your ability to learn about CFDs. The only catch is due to the vast array of free information managing your time can be an issue. The website I have created has over 130 pages alone which accounts for some 50,000 words but I have to say the information is specifically on getting the most out of your CFD trading account. Doing any number of Google searches for key words related to Contracts for Difference will set you on your path to learning more about CFDs.
Pick up one of the many great CFD books
Another way to learn about CFDs is to grab one of the excellent books available on trading Contracts for Difference. The best book that covers everything to do with trading Contracts for Difference is supercharge your trading with CFDs by Jeff cartridge. If you would like to read about the most successful CFD traders in Australia then Eva Diaz's book, Real Traders 2, has the greatest selection of real life stories.
Last but not least you have Cat Davey with her fantastic trading diary detailing how she turned $13,000 into $30,000 in three months trading Contracts for Difference. You get to hear about all the trials and tribulations in the emotional rollercoaster ride she went on as she put her money where her mouth is and returned a fantastic profit.
LearnCFDs.com has teamed up with Jeff cartridge to provide you a free seven-day strategy guide on trading Contracts for Difference. You will find it in the link below.
Attend a free seminar
By far the fastest way for people to learn about CFDs is to attend a live seminar with one of the major CFD brokers. Given the size of the CFD brokers and the amount of business they generate they are in a position to offer free seminars and provide a reasonable level of CFD education.
The CFD brokers know that it costs a lot of money to acquire a new client and so they are willing to spend a good deal of money in keeping you once you are on board. This means you will have a wide selection of free CFD trading tutorials that get you started and on your way to safe and sensible trading.
Free education for CFD clients
Once you are on board with your CFD broker and have your account established you can start to concentrate on the education they provide. Most CFD brokers have invested thousands of dollars in qualified staff to teach you the latest techniques and strategies on winning in the markets. Take full advantage of every opportunity they give you and always remember to trade well within your means.
Doing your research online
If you are happy to scan the Internet you will discover there is a fantastic range of free resources available to fast track your ability to learn about CFDs. The only catch is due to the vast array of free information managing your time can be an issue. The website I have created has over 130 pages alone which accounts for some 50,000 words but I have to say the information is specifically on getting the most out of your CFD trading account. Doing any number of Google searches for key words related to Contracts for Difference will set you on your path to learning more about CFDs.
Pick up one of the many great CFD books
Another way to learn about CFDs is to grab one of the excellent books available on trading Contracts for Difference. The best book that covers everything to do with trading Contracts for Difference is supercharge your trading with CFDs by Jeff cartridge. If you would like to read about the most successful CFD traders in Australia then Eva Diaz's book, Real Traders 2, has the greatest selection of real life stories.
Last but not least you have Cat Davey with her fantastic trading diary detailing how she turned $13,000 into $30,000 in three months trading Contracts for Difference. You get to hear about all the trials and tribulations in the emotional rollercoaster ride she went on as she put her money where her mouth is and returned a fantastic profit.
LearnCFDs.com has teamed up with Jeff cartridge to provide you a free seven-day strategy guide on trading Contracts for Difference. You will find it in the link below.
Fibonacci Stock Trading - Using Indicators to Stay Ahead of the Market
In today's volatile market, I've found the easiest way to invest is with currency trading. I've always done okay, but it wasn't until I learned about Fibonacci numbers that I started seeing steady gains.
Developed in the 13th century by Leonardo Fibonacci, the Fibonacci sequence is a way of expressing certain relationships that are constant throughout the universe. These relationships can be seen in both natural phenomena and in human behavior. But what a lot of people don't know is that the stock market shows these same relationships between its trends and counter trends.
I've used this system with great success in the past six months. I invest pretty conservatively, but my biggest gain so far (on one currency cross) was over $5000. By using leverage, just a few pips change in price levels allowed me to get in and get out without putting a whole lot at risk. And I used Fibonacci's "golden ratio" to find the proper price levels at which to trade off.
There are a lot of programs available to help you map out Fibonacci waves. You can download SpiralTrader for free; there's also VTTrader, which my neighbor uses and recommends. Both of them work wonders; all you have to do is input a few numbers and drag your waves over market graphs, and it shows you the key percentage levels at which to trade successfully with that fund.
It's not rocket science, and it's not magic - it's just a way to see patterns and determine when they will repeat. I've made over $20,000 now, and most of it came from using this system to trade on the Forex. Make sure to find out all you can about this little-known way to predict the future of the market!
If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read the amazing, true story, in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too. Imagine doubling your money every week with no or little risk! To discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program.
Developed in the 13th century by Leonardo Fibonacci, the Fibonacci sequence is a way of expressing certain relationships that are constant throughout the universe. These relationships can be seen in both natural phenomena and in human behavior. But what a lot of people don't know is that the stock market shows these same relationships between its trends and counter trends.
I've used this system with great success in the past six months. I invest pretty conservatively, but my biggest gain so far (on one currency cross) was over $5000. By using leverage, just a few pips change in price levels allowed me to get in and get out without putting a whole lot at risk. And I used Fibonacci's "golden ratio" to find the proper price levels at which to trade off.
There are a lot of programs available to help you map out Fibonacci waves. You can download SpiralTrader for free; there's also VTTrader, which my neighbor uses and recommends. Both of them work wonders; all you have to do is input a few numbers and drag your waves over market graphs, and it shows you the key percentage levels at which to trade successfully with that fund.
It's not rocket science, and it's not magic - it's just a way to see patterns and determine when they will repeat. I've made over $20,000 now, and most of it came from using this system to trade on the Forex. Make sure to find out all you can about this little-known way to predict the future of the market!
If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read the amazing, true story, in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too. Imagine doubling your money every week with no or little risk! To discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program.
Thursday, February 5, 2009
Internet Marketing Tips - Domain Names That Can Get You in Trouble
Picking domain names is a very important part of your marketing activities. The proper domain name can give much credibility to your site. It's almost critical that the name itself matches the product or service that you're promoting. However, sometimes picking a name can lead to a lot of trouble. This article is going to touch on how this is so. Hopefully, after reading this, you'll have a pretty good idea of what to avoid when picking a name for your website.
Probably the most obvious problem and the most dangerous is picking a name that matches one of a popular product or service. There are trademark laws that make it so that it is quite possible that by using a name of a well established company that they can contact you and demand that you take your site down. From what I have seen personally, you will have little recourse but to comply. These companies have a lot more money than you do in order to fight these things. So in the long run, you lose.
So, it is best that you make sure that you choose a name that isn't going to step on anybody's toes. Imagine getting a site started, making some money from it and then suddenly you're served with an order to remove your site. Avoid the problem altogether by picking a name that nobody else has a claim to.
Another problem, and one that is not quite so obvious, is picking a name that has letters in it that when isolated, spell words that are, how should I say, less than acceptable as far as the censors go. In many cases, these domain names can even trip spam filters that will keep your emails from being delivered, if you're into email marketing, and land you on the black list as a spam site. I won't give explicit examples in this article, so use your imagination.
So, when picking a name, go through it carefully and make sure that there aren't any words within the words that could end up getting you in trouble.
By following these two simple tips, you should have no problem picking a domain name that you'll be able to keep for a very long time to come.
Probably the most obvious problem and the most dangerous is picking a name that matches one of a popular product or service. There are trademark laws that make it so that it is quite possible that by using a name of a well established company that they can contact you and demand that you take your site down. From what I have seen personally, you will have little recourse but to comply. These companies have a lot more money than you do in order to fight these things. So in the long run, you lose.
So, it is best that you make sure that you choose a name that isn't going to step on anybody's toes. Imagine getting a site started, making some money from it and then suddenly you're served with an order to remove your site. Avoid the problem altogether by picking a name that nobody else has a claim to.
Another problem, and one that is not quite so obvious, is picking a name that has letters in it that when isolated, spell words that are, how should I say, less than acceptable as far as the censors go. In many cases, these domain names can even trip spam filters that will keep your emails from being delivered, if you're into email marketing, and land you on the black list as a spam site. I won't give explicit examples in this article, so use your imagination.
So, when picking a name, go through it carefully and make sure that there aren't any words within the words that could end up getting you in trouble.
By following these two simple tips, you should have no problem picking a domain name that you'll be able to keep for a very long time to come.
Investing in Domain Names
If you are thinking of investing in domain names it's important that you understand your market. Top Level Domains or TLDs are growing by the day, some would say that this is a great way for certain bodies to make even more cash and some would say that it opens up the domain name market to people who missed the boat on coms.
Which ever way you look at it the release of new TLDs is going to happen on a regular basis over the coming years and one such TLD that has just released is .me.
One of the newly released TLDs, that is causing a lot of interest is the .me. There are of course several reasons as to why this particular TLD is causing so much interest and we can go through them one by one.
Firstly for all English speaking nations the word "me" is commonly used and understood, this gives the TLD an advantage over certain other TLD domain releases in the sense that it can become part of your domain name or brand, for instance: call me, date me...etc. This makes it easier to remember and in some cased to brand. Secondly, due to the fact that the domain extension has a very broad appeal it naturally lends itself to individual or personal web pages and blogs.
You can see this in action already in the tv extension that is widely being used and accepted by media companies around the world as a good domain name extension for television companies and online tv channels. The explosion in social networking sites and the move to personal connection web sites lends itself perfectly to the .me tld and I'm sure you will see one or two big players in the area within the next couple of years.
Also if you take into account how ISPs and web hosting providers are simplifying the web development process and supplying packages that can have you up and running in no time at all, they are removing the barriers to entry in the market everyday. Another interesting point about the .me extension is that it is totally open and anyone can register a domain name.
Another success story in the domain names area is the European extension eu. It was first released a couple of years ago and has since steadily crawled up the charts of the most popular extensions. At the last count it had reached 3 million registered domain names and is growing at a steady pace.
The two other areas that should be mentioned and I would suggest to study them well is India and China. Although to market for cn has been very closely control by the Chinese government up to now we are finally seeing a little relaxing in the controls. This can be seen in the rapid growth of registrations.
This is also thrue of India and their in CC. They are finally waking up to the value of their national CC. There are 2 billion people in these two markets, alone they dwarf the entire domain and is only a matter of time before most of the people in these countries are online.
Taking all of the above into consideration if you are thinking of starting your own web site, blog or even your own business, don't overlook the possibilities of the .me extension.
Which ever way you look at it the release of new TLDs is going to happen on a regular basis over the coming years and one such TLD that has just released is .me.
One of the newly released TLDs, that is causing a lot of interest is the .me. There are of course several reasons as to why this particular TLD is causing so much interest and we can go through them one by one.
Firstly for all English speaking nations the word "me" is commonly used and understood, this gives the TLD an advantage over certain other TLD domain releases in the sense that it can become part of your domain name or brand, for instance: call me, date me...etc. This makes it easier to remember and in some cased to brand. Secondly, due to the fact that the domain extension has a very broad appeal it naturally lends itself to individual or personal web pages and blogs.
You can see this in action already in the tv extension that is widely being used and accepted by media companies around the world as a good domain name extension for television companies and online tv channels. The explosion in social networking sites and the move to personal connection web sites lends itself perfectly to the .me tld and I'm sure you will see one or two big players in the area within the next couple of years.
Also if you take into account how ISPs and web hosting providers are simplifying the web development process and supplying packages that can have you up and running in no time at all, they are removing the barriers to entry in the market everyday. Another interesting point about the .me extension is that it is totally open and anyone can register a domain name.
Another success story in the domain names area is the European extension eu. It was first released a couple of years ago and has since steadily crawled up the charts of the most popular extensions. At the last count it had reached 3 million registered domain names and is growing at a steady pace.
The two other areas that should be mentioned and I would suggest to study them well is India and China. Although to market for cn has been very closely control by the Chinese government up to now we are finally seeing a little relaxing in the controls. This can be seen in the rapid growth of registrations.
This is also thrue of India and their in CC. They are finally waking up to the value of their national CC. There are 2 billion people in these two markets, alone they dwarf the entire domain and is only a matter of time before most of the people in these countries are online.
Taking all of the above into consideration if you are thinking of starting your own web site, blog or even your own business, don't overlook the possibilities of the .me extension.
Dot Ws (Website) Will Be Larger Than Dot Com - Don't Miss Out!
Domain names exist everywhere on planet Earth? How many have you used in your lifetime? Thousands? Millions? Have you ever fantasized about having one dollar for every automobile that travels the highways in the entire world? Do you remember when 1-800 phone numbers were first introduced?
Now there are no more 800 numbers available. You have 888's 877's etc. I wish I could somehow wave a magic wand and have you understand the HUGE income available to you via Global Domains International (GDI). I hope you are a visionary. Your total cost to participate is only $10 per month.
Now what if you had $1.00 for every .ws domain name? I don't know but I am hoping to just get 100,000 and I'd be satisfied.
If you are not sure about what all this means: Domain names are the unique names that point to a website. There are literally millions from .com, .org, .edu, etc. Now GDI (Global Domains International) owns the complete rights to all the .ws websites. What if you could get a piece of that pie? Now you can and I hope you are a visionary and can see what this could mean!
With GDI, you will get a domain name, a WYSWYG site builder, email account and a whole suite of marketing tips. Along the way you will make friends and have FUN!
So, if all you need is a website for business or pleasure this will be your answer! If you want to make some extra money as well, this is for you! It is FREE for 7 ways so it is worth a look-see!
Now there are no more 800 numbers available. You have 888's 877's etc. I wish I could somehow wave a magic wand and have you understand the HUGE income available to you via Global Domains International (GDI). I hope you are a visionary. Your total cost to participate is only $10 per month.
Now what if you had $1.00 for every .ws domain name? I don't know but I am hoping to just get 100,000 and I'd be satisfied.
If you are not sure about what all this means: Domain names are the unique names that point to a website. There are literally millions from .com, .org, .edu, etc. Now GDI (Global Domains International) owns the complete rights to all the .ws websites. What if you could get a piece of that pie? Now you can and I hope you are a visionary and can see what this could mean!
With GDI, you will get a domain name, a WYSWYG site builder, email account and a whole suite of marketing tips. Along the way you will make friends and have FUN!
So, if all you need is a website for business or pleasure this will be your answer! If you want to make some extra money as well, this is for you! It is FREE for 7 ways so it is worth a look-see!
Why a Name is Important When Opening a Small Business Online
When opening a small business offering services or products online the domain name you choose is important. At first glance it may appear that a name is not important when opening a small business online. You may point to such name as Yahoo, Google and YouTube which appear to have no relation with what they do but dominate their niche. This article gives some reasons why you should consider your domain name carefully when opening a small business online.
You can make money online without a website. However, a website offers flexibility and a presence on the internet that is difficult to attain without a website. Depending on the purpose, opening a small business online will require you to register a domain name for your website. Usually the business name for your website will also be your domain name.
While trademark law protects product names, trade names, logos, even slogans, copyright law protects works of art, fiction, sculpture and other creative works. However, business law does not guarantee the exclusive use of a domain name. If you decide to use the name StartASmallBusiness.com as your domain name when open opening a small business online, you cannot prevent someone else using the same domain name but ending with .net, .biz or .info.
You should choose a domain name that reflects the activity or service offered by your business. Since an online store is different from a shop on a high street that can be seen by passersby, choose a name that people can easily remember. Usually people will come to your online store by typing your domain name into the web browser. For this reason a memorable name is important when opening a small online business.
Another reason for a good domain name is the Search Engine factor. You will notice that many domain names online are descriptive. They describe the service that a website offers. Search engines are slaves to key words. When opening a small business online, do some research using Google's Keyword Tool, to find out the words people type into the search engines to find what they want. Create a domain name based on a key word that enjoys decent number of searches per day but is not so competitive.
A domain name based on a key word will help you to rank higher in search engines when the particular key word is typed into search engines, which result in free traffic to your website. A domain name is therefore important when opening a small business online. If the name you want is already taken just insert a dash between the words and see if the domain name is available. Opening a small business online starts with choosing a name. Make sure that you get the right end of the stick.
You can make money online without a website. However, a website offers flexibility and a presence on the internet that is difficult to attain without a website. Depending on the purpose, opening a small business online will require you to register a domain name for your website. Usually the business name for your website will also be your domain name.
While trademark law protects product names, trade names, logos, even slogans, copyright law protects works of art, fiction, sculpture and other creative works. However, business law does not guarantee the exclusive use of a domain name. If you decide to use the name StartASmallBusiness.com as your domain name when open opening a small business online, you cannot prevent someone else using the same domain name but ending with .net, .biz or .info.
You should choose a domain name that reflects the activity or service offered by your business. Since an online store is different from a shop on a high street that can be seen by passersby, choose a name that people can easily remember. Usually people will come to your online store by typing your domain name into the web browser. For this reason a memorable name is important when opening a small online business.
Another reason for a good domain name is the Search Engine factor. You will notice that many domain names online are descriptive. They describe the service that a website offers. Search engines are slaves to key words. When opening a small business online, do some research using Google's Keyword Tool, to find out the words people type into the search engines to find what they want. Create a domain name based on a key word that enjoys decent number of searches per day but is not so competitive.
A domain name based on a key word will help you to rank higher in search engines when the particular key word is typed into search engines, which result in free traffic to your website. A domain name is therefore important when opening a small business online. If the name you want is already taken just insert a dash between the words and see if the domain name is available. Opening a small business online starts with choosing a name. Make sure that you get the right end of the stick.
Simple Steps to Getting Cheap Domain Names
Whether you are into a big or small business enterprise, it does not matter when it comes to availing a domain name for your business' web site. To register a domain name is one of the major steps in building a web site. This name is actually your main identification online. Once internet users see you web site address with your company name on it, then you must have grabbed yourself a good internet address. Most web site owners these days are particular with having their company's name, niche or important keywords in their web site address. Yes, it is now possible to get cheap domain names since there are individuals or companies on the internet that sell these online addresses.
Do not fret because even if some names are cheap, they can still be professional and sophisticated. The tag price is not really a basis on how a domain name will fare online. Getting cheap but really good internet address is like hitting a jackpot as well. So, you may conclude that the best domain names are not exactly those that are highly-priced. However, you have to be careful when you search for cheap domain names for there could be people or companies that will mislead you. After web site owners get cheap domain names for their web pages, they can now focus on designing and developing their pages.
The designs should basically be based on the niche that you are into. Your web pages must be congruent to the products or services that you are promoting. Further, you also must keep in mind the preferences of your target customers and site visitors. For profitable domain names, you have to ensure that the name that you will register is easy to remember for internet users. It is important that people will get to remember your web site address better. So, go for easy to remember names. This will make it convenient for internet users and at the same time, you can also get more traffic when more people get to visit your page.
Another technique there is to have keyword-enriched but cheap domain names. Many online marketers believe that it is quite an advantage if you have your keywords included in your internet address. They think that having these keywords on your address can make search engines detect your web site quickly. However, this is a wrong theory. There is no guarantee that you will get better search engine rankings even if you stuff your address with keywords. There is even no assurance that people will flock your site. Thus, don't easily believe what you read on the net or what you are told so especially when it is not really backed-up with a research or a study.
If you think you are not ready to choose your address online then you can get yourself a guide to choosing domain names. These kinds of resources will surely give you insights in choosing the best online address for your business. At the same time, you may also learn the other benefits like making money out of your address on the net. There are certain ways you can earn from these names actually but that's a different issue. What's more important now is that you learn how to get cheap domain names that will perfectly represent you and your business in cyberspace.
Do not fret because even if some names are cheap, they can still be professional and sophisticated. The tag price is not really a basis on how a domain name will fare online. Getting cheap but really good internet address is like hitting a jackpot as well. So, you may conclude that the best domain names are not exactly those that are highly-priced. However, you have to be careful when you search for cheap domain names for there could be people or companies that will mislead you. After web site owners get cheap domain names for their web pages, they can now focus on designing and developing their pages.
The designs should basically be based on the niche that you are into. Your web pages must be congruent to the products or services that you are promoting. Further, you also must keep in mind the preferences of your target customers and site visitors. For profitable domain names, you have to ensure that the name that you will register is easy to remember for internet users. It is important that people will get to remember your web site address better. So, go for easy to remember names. This will make it convenient for internet users and at the same time, you can also get more traffic when more people get to visit your page.
Another technique there is to have keyword-enriched but cheap domain names. Many online marketers believe that it is quite an advantage if you have your keywords included in your internet address. They think that having these keywords on your address can make search engines detect your web site quickly. However, this is a wrong theory. There is no guarantee that you will get better search engine rankings even if you stuff your address with keywords. There is even no assurance that people will flock your site. Thus, don't easily believe what you read on the net or what you are told so especially when it is not really backed-up with a research or a study.
If you think you are not ready to choose your address online then you can get yourself a guide to choosing domain names. These kinds of resources will surely give you insights in choosing the best online address for your business. At the same time, you may also learn the other benefits like making money out of your address on the net. There are certain ways you can earn from these names actually but that's a different issue. What's more important now is that you learn how to get cheap domain names that will perfectly represent you and your business in cyberspace.
Register a Domain Name
How to register a domain name? That is a common question asked by many around the world. I always get asked this question from anyone at work to people on the street. Everyone always thinks that registering a domain name is really expensive or hard to do such a thing. When in every actuality you can get a .com domain for around $7, if not FREE in some cases.
First we will look at the places where you can register a domain name at. There are 3 places that I personally like to register a domain name at. The first place is GoDaddy.com, which is the most popular place in the world to register a domain name. This is the company that put up many commercials on at the Superbowl and sponsors such athletes as Danika Patrick. My second pick is Name.com. The reason I like Name.com is because its one of my most trusted registrars I have ever used to register a domain name. It is secure and simple. The last pick would have to be Moniker.com. This is a great place to hold premium domain names. They may be a little more expensive than most registrars but they are one of the most secure and trusted places on the planet. We will look at how to register a domain name at GoDaddy.com and give you a COUPON to get cheaper registration at GoDaddy.com.
Here is a Step By Step:
1. Go to GoDaddy.com
2. Sign up for an account, to speed up the process when you are ready to check out.
3. Type the domain name you want in the search bar. If it is not available try assorted variations of the domain name or encounter a completely assorted domain name.
4. Once you hit and found the domain you want to register, you just select it for your cart.
5. Now that you have it in your cart, you will be asked if you want to add some services to your purchase. Depending on what you want to do with the domain name you might want some of those services.
6. After you get finished all of the additional products, you should be able to put a COUPON in there to get a discount. Put this code in OYH3, it should give you $3 off.
7. All you have to do next is pay for the domain name with a credit card or paypal. If you do not have a paypal account I highly suggest you get one.
First we will look at the places where you can register a domain name at. There are 3 places that I personally like to register a domain name at. The first place is GoDaddy.com, which is the most popular place in the world to register a domain name. This is the company that put up many commercials on at the Superbowl and sponsors such athletes as Danika Patrick. My second pick is Name.com. The reason I like Name.com is because its one of my most trusted registrars I have ever used to register a domain name. It is secure and simple. The last pick would have to be Moniker.com. This is a great place to hold premium domain names. They may be a little more expensive than most registrars but they are one of the most secure and trusted places on the planet. We will look at how to register a domain name at GoDaddy.com and give you a COUPON to get cheaper registration at GoDaddy.com.
Here is a Step By Step:
1. Go to GoDaddy.com
2. Sign up for an account, to speed up the process when you are ready to check out.
3. Type the domain name you want in the search bar. If it is not available try assorted variations of the domain name or encounter a completely assorted domain name.
4. Once you hit and found the domain you want to register, you just select it for your cart.
5. Now that you have it in your cart, you will be asked if you want to add some services to your purchase. Depending on what you want to do with the domain name you might want some of those services.
6. After you get finished all of the additional products, you should be able to put a COUPON in there to get a discount. Put this code in OYH3, it should give you $3 off.
7. All you have to do next is pay for the domain name with a credit card or paypal. If you do not have a paypal account I highly suggest you get one.
How Do Domain Names Work?
The domain name system (DNS) works much like a telephone book, providing location and contact information for the names listed. The location of a website is a numeric IP address. An IP (IPv4) address consists of four octets such as 72.167.177.75, each number a possible value 0-255. When a domain name is entered in a browser the numeric location of a website is determined behind the scenes. Clearly a name like EzineArticles.com is much easier to remember than indeterminate sequences of numbers. Another advantage is that domain names are static, whereas the physical numeric address of a website may change.
How do I get a domain name?
The process of registering a domain name typically begins with a search to ascertain availability. Once a search has determined a domain name is not currently registered, one may acquire it through a registrar for a small fee, usually $10-$20 annually. Registering a domain name does not mean you have a website. Once a domain name has been registered its records may be modified to point to a website.
Other ways domain names are used
Many domain names are not associated with an actual website. Domain trading is a major industry similar to that of real estate investment. A domain trader may have hundreds, possibly thousands of registered domains listed on the market. A $10 registration fee for a new domain may sell for hundreds, even thousands of dollars making domain trading a lucrative and competitive business.
Cash parking is a method of generating revenue for a domain not in use. A cash parked domain is usually associated with relevant advertisements from which the owner shares in the generated click-through revenue. Each time an advertisement is clicked the advertiser pays a fee that is shared with the entities that directed traffic to the paying website.
How do I get a domain name?
The process of registering a domain name typically begins with a search to ascertain availability. Once a search has determined a domain name is not currently registered, one may acquire it through a registrar for a small fee, usually $10-$20 annually. Registering a domain name does not mean you have a website. Once a domain name has been registered its records may be modified to point to a website.
Other ways domain names are used
Many domain names are not associated with an actual website. Domain trading is a major industry similar to that of real estate investment. A domain trader may have hundreds, possibly thousands of registered domains listed on the market. A $10 registration fee for a new domain may sell for hundreds, even thousands of dollars making domain trading a lucrative and competitive business.
Cash parking is a method of generating revenue for a domain not in use. A cash parked domain is usually associated with relevant advertisements from which the owner shares in the generated click-through revenue. Each time an advertisement is clicked the advertiser pays a fee that is shared with the entities that directed traffic to the paying website.
Commercial Banks Facing Real Hard Time as World Economy Tumults
As the commercial banks are fighting for survival, the economic situation is getting worsened with every passing hour. As revealed by stock news India, the depletion of stock values, fund values, bankruptcy and disastrous closing prices have left everyone speechless. The world power, U.S.A. has been hit in the similar manner or even badly. Wall Street, the largest stock market, as stated by stock market news, money market news, share news India and various other finance news channels dailies, is undergoing a panicking stigma of commercial loss. Only a few famous commercial banks like Wachovia, Chinese bank, Citic have been considered to come to the rescue of the plenty of bankrupt investors and corporate houses, worldwide.
According to Share news India and stock exchange news, American Express, Citigroup, JP Morgan Chase, American icons and many others are undergoing a devastating economic loss, so much so that Apple as well has been hit badly by the disastrous crisis. Possibilities are that most of the commercial banks undergoing loss could merge with those in a fine situation or simply could head on for a bail out.
Stock exchange news stated that the investors, financers, stock brokers, and bankers have no clue as to what will follow. In India as well, the fund values has been depleting so far and it's tough to pontificate whether fund investing in India is worth taken a risk of. Loss of massive amounts till now has left everyone in a thrifty state and every following step has to be measured for one to escape huge losses and bankruptcy. India money market news, share news India and finance news India have depicted the situation of Indian stock market to be one such that could be tackled with ease. Investors and expert economists commented on this situation after having a look at the increased swap rates which are closely following the bond yields. Such easing and hopeful conditions have in fact raised hopes as well as curiosity implying towards an increase in the demand for the nearing debt auctions which will follow soon. These auctions will definitely help the otherwise drought stricken investors to have a fulfilling appetite.
However, currency news India and share news India have pointed towards a worsened situation worldwide where the currency meter has fluctuated to an extent that the fifteen nation currency Euro has fallen flat on face against dollar and yen. No doubt, the European Central Bank will have to cut down the interest rates to avoid any economic mishap.
The economic currency exchange rates had never been in such a troubled state in the last ten decades. The Indian currency exchange rates have depicted rupee as going down against dollar as predictably. The stock news India and share news India heads in the same direction by throwing enough light towards sensex dipping down towards the dusk each following day. Completely in sync with the economic slip downwards globally, Indian stocks have also tumbled down. As the bankers and investors keep switching on and off to the online currency converters, nothing but loosened hopes come handy. Not a right time for personal finance investing, it's the time to sit back and observe the drastic stock market trends and play safe as personal finance tools hardly help in such thrifty situations.
According to Share news India and stock exchange news, American Express, Citigroup, JP Morgan Chase, American icons and many others are undergoing a devastating economic loss, so much so that Apple as well has been hit badly by the disastrous crisis. Possibilities are that most of the commercial banks undergoing loss could merge with those in a fine situation or simply could head on for a bail out.
Stock exchange news stated that the investors, financers, stock brokers, and bankers have no clue as to what will follow. In India as well, the fund values has been depleting so far and it's tough to pontificate whether fund investing in India is worth taken a risk of. Loss of massive amounts till now has left everyone in a thrifty state and every following step has to be measured for one to escape huge losses and bankruptcy. India money market news, share news India and finance news India have depicted the situation of Indian stock market to be one such that could be tackled with ease. Investors and expert economists commented on this situation after having a look at the increased swap rates which are closely following the bond yields. Such easing and hopeful conditions have in fact raised hopes as well as curiosity implying towards an increase in the demand for the nearing debt auctions which will follow soon. These auctions will definitely help the otherwise drought stricken investors to have a fulfilling appetite.
However, currency news India and share news India have pointed towards a worsened situation worldwide where the currency meter has fluctuated to an extent that the fifteen nation currency Euro has fallen flat on face against dollar and yen. No doubt, the European Central Bank will have to cut down the interest rates to avoid any economic mishap.
The economic currency exchange rates had never been in such a troubled state in the last ten decades. The Indian currency exchange rates have depicted rupee as going down against dollar as predictably. The stock news India and share news India heads in the same direction by throwing enough light towards sensex dipping down towards the dusk each following day. Completely in sync with the economic slip downwards globally, Indian stocks have also tumbled down. As the bankers and investors keep switching on and off to the online currency converters, nothing but loosened hopes come handy. Not a right time for personal finance investing, it's the time to sit back and observe the drastic stock market trends and play safe as personal finance tools hardly help in such thrifty situations.
Term Loans and Deposits.
A Term Loan is defined as a loan which is repaid through regular periodic payments referred as Equated Monthly Installments or EMI, usually over a period of 1 to 10 years. If you approach a bank for a loan of one lac (1,00,000 INR), the bank after going through various calculations based on your eligibility criteria which mainly depends on your monthly income & your liabilities decides to provide the amount. You get the loan and agree to repay it within a period of somewhere between 6 months to 4 years. This is an example of term loan. Failure to repay the loan within the stipulated period will only result in the bank confiscating the security that you provided as a guarantee while taking the loan. Short term loans whether personal or commercial/business are taken for shorter repayment duration hence making the repayment options all the more easier for the borrower. A short term personal loan is taken for personal usage such as home house renovations, wedding, vacation planning etc. Short term business loans are mainly provided to raise working capital of your business. They are appropriate for both new and existing businesses. When dealing with new businesses, most banks will grant only shorter-term loans, because short-term loans are less risky than loans with longer terms.
A Term Deposit is a deposit held at a financial institute and has a fixed term. These are generally short-term deposits with maturities ranging anywhere from a month to a few years. When a term deposit is made, the account holder can only withdraw the amount after the term has ended or by giving a predetermined number of days notice. Term deposits are an extremely safe investment and are therefore very appealing to conservative, low-risk investors. Currently banks also offer flexible-term deposits (flexi deposits), which is a combination of a term-deposit facility and a savings account. Here the account holder is asked to deposit a certain amount from his savings account as a term deposit. This amount can be withdrawn if the required withdrawal amount isn’t available in your savings account. Once the amount that you withdraw from your term deposit is deposited in your savings account, the same amount that you withdrew is deducted from your savings account and deposited to your term deposit account.
Now comes the big question??? How are these two major terms related to each other? Well a bit of common sense does provide the answer. For instance you make in a term deposit of a lac for 3 years. The bank agrees to pay you an interest of 9% p.a. So at the end of 3 years going through the interest rate the amount that will be provided to you will approximately be around a lac and thirty thousand (1,30,000 INR). Now once you deposit the amount into a term deposit scheme for 3 years you will not be entitled to operate through that account. So what the bank usually does is loan this particular amount for a period that is lesser then the period of deposit. Now take another case: Say the bank could have 1 lac loaned to a company or individual for 3 years at 12% p.a, then at the end of the tenure the bank would re-collect an amount of around a lac and forty thousand (1,40,000 INR). So the bank profits by 10,000 INR. So the sole purpose of these two functions; i.e loans and deposits is financial regulation. You please a customer and at the same time you get business done for your bank. Most banks uses this theory to get a large part of their revenue streaming in.
A Term Deposit is a deposit held at a financial institute and has a fixed term. These are generally short-term deposits with maturities ranging anywhere from a month to a few years. When a term deposit is made, the account holder can only withdraw the amount after the term has ended or by giving a predetermined number of days notice. Term deposits are an extremely safe investment and are therefore very appealing to conservative, low-risk investors. Currently banks also offer flexible-term deposits (flexi deposits), which is a combination of a term-deposit facility and a savings account. Here the account holder is asked to deposit a certain amount from his savings account as a term deposit. This amount can be withdrawn if the required withdrawal amount isn’t available in your savings account. Once the amount that you withdraw from your term deposit is deposited in your savings account, the same amount that you withdrew is deducted from your savings account and deposited to your term deposit account.
Now comes the big question??? How are these two major terms related to each other? Well a bit of common sense does provide the answer. For instance you make in a term deposit of a lac for 3 years. The bank agrees to pay you an interest of 9% p.a. So at the end of 3 years going through the interest rate the amount that will be provided to you will approximately be around a lac and thirty thousand (1,30,000 INR). Now once you deposit the amount into a term deposit scheme for 3 years you will not be entitled to operate through that account. So what the bank usually does is loan this particular amount for a period that is lesser then the period of deposit. Now take another case: Say the bank could have 1 lac loaned to a company or individual for 3 years at 12% p.a, then at the end of the tenure the bank would re-collect an amount of around a lac and forty thousand (1,40,000 INR). So the bank profits by 10,000 INR. So the sole purpose of these two functions; i.e loans and deposits is financial regulation. You please a customer and at the same time you get business done for your bank. Most banks uses this theory to get a large part of their revenue streaming in.
Mobile Banking - The future of Banking is here.
The advent of the Internet revolutionized the way the financial service industry conducted their businesses. They empowered organizations with new business models and new ways to offer non-stop accessibility to their customers. The ability to offer financial transactions online has also created new players in the financial services industry, such as online banks, online brokers and wealth managers who offer personalized services, although such players still account for a tiny percentage of the industry. Mobile devices, especially smart phones, are the most promising way to reach the masses and to create “stickiness” among current customers, due to their ability to provide services anytime, anywhere, their high rate of penetration and potential to grow has made them a dominating force in the world of e-banking. The mobile banking business model depends on banking agents, i.e, the retail or postal outlets that process financial transactions on behalf of telcos or banks. The banking agent is an important part of the mobile banking business model since customer care, service quality, and cash management will depend on them.
Mobile Banking models are classified into 3 main categories. 1) Bank Focused Models, 2) Bank-Led model, 3) Non-Bank led model. The bank-focused model emerges when a traditional bank uses non-traditional low-cost delivery channels to provide banking services to its existing customers. Examples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to provide certain limited banking services to bank customers. The bank-led model offers a distinct alternative to conventional branch-based banking, through which a customer conducts financial transactions at a whole range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. This model promises the potential to substantially increase the financial services outreach by using a different delivery channel (retailers/ mobile phones), a different trade partner (telco / chain store) having experience and target market distinct from traditional banks, and may be significantly cheaper than the bank-based alternatives. The non-bank-led model is where a bank does not come into the picture (except possibly as a safe-keeper of surplus funds) and the non-bank (e.g: telco) performs all the functions.Mobile Banking is the hottest area of development in the banking sector and is expected to replace the credit/debit card system in future. Currently (September, 2008), there are 47 million mobile users, with approximately 2 million being added every month While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it shells out, mobile banking helps it reduce the cost to a mere Rs 2. RBI estimates that around 40 per cent of Indians lack access to formal financial services and are largely 'unbanked'. The number of mobile users is estimated to have far surpassed the number of Internet users. Hence it is important to safeguard the secure usage of this medium for financial transactions. Some techniques that can be implemented for the same include using the phone-lock function on your mobile device when it is not in use, choosing passwords which are difficult to crack and keeping them safe and ensuring that the phone is configured securely, especially when it comes to configuring the Web browser and email software. Keeping your mobile phone updated with the latest patches and updates including anti virus updates help a lot.
Mobile Banking models are classified into 3 main categories. 1) Bank Focused Models, 2) Bank-Led model, 3) Non-Bank led model. The bank-focused model emerges when a traditional bank uses non-traditional low-cost delivery channels to provide banking services to its existing customers. Examples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to provide certain limited banking services to bank customers. The bank-led model offers a distinct alternative to conventional branch-based banking, through which a customer conducts financial transactions at a whole range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. This model promises the potential to substantially increase the financial services outreach by using a different delivery channel (retailers/ mobile phones), a different trade partner (telco / chain store) having experience and target market distinct from traditional banks, and may be significantly cheaper than the bank-based alternatives. The non-bank-led model is where a bank does not come into the picture (except possibly as a safe-keeper of surplus funds) and the non-bank (e.g: telco) performs all the functions.Mobile Banking is the hottest area of development in the banking sector and is expected to replace the credit/debit card system in future. Currently (September, 2008), there are 47 million mobile users, with approximately 2 million being added every month While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it shells out, mobile banking helps it reduce the cost to a mere Rs 2. RBI estimates that around 40 per cent of Indians lack access to formal financial services and are largely 'unbanked'. The number of mobile users is estimated to have far surpassed the number of Internet users. Hence it is important to safeguard the secure usage of this medium for financial transactions. Some techniques that can be implemented for the same include using the phone-lock function on your mobile device when it is not in use, choosing passwords which are difficult to crack and keeping them safe and ensuring that the phone is configured securely, especially when it comes to configuring the Web browser and email software. Keeping your mobile phone updated with the latest patches and updates including anti virus updates help a lot.
Forewarning: A Bank’s Best Assets Are Trained Tellers
Tellers are the frontline representatives and the “face” of your Bank to anyone who walks through your institution’s doors. These personnel are the first to meet customers, service their banking needs, and offer their suggestions on better products. Working directly with the customers, tellers are the key to building comfortable relationships that create and maintain a strong client base. Due to their role and position at Banks, tellers reign as the most important member of any banking institution.
However, in order to be effective as frontline personnel, tellers need to be motivated and capable of consistently exhibiting a positive “can do” attitude toward understanding and exceeding customer expectations. To achieve this goal, tellers need to have a clear understanding of your bank’s infrastructure, systems, internal procedures and new products.
Tellers also need to know how to keep a client, listen actively, complete a timely transaction, resolve problems, and look and act professionally at all times.
In order for tellers to be effective at sales and service, it is the responsibility of the bank to properly recruit, prepare, continuously improve, and compensate tellers. It is also important for supervisors to encourage tellers, just as we do in any other banking business area, and on any other banking level.
Untrained tellers can: Frustrate customers Make the bank vulnerable to regulatory compliance and legal exposure Incorrectly complete transactions and short bank money and fees Perform poorly, exhibit low morale and ruin a bank’s reputation
To avoid the negatives of untrained personnel, a bank’s basic teller training should include: On the job training Instructor-lead classroom Distance learning Combination strategies
In addition, the full treatment would include: Ongoing staff development Frontline supervisory strategies
Choosing the basics of teller training delivery needs to reflect your bank’s culture, capability, and budget.
On the job training:o Pro: Is inexpensive to administer. No need take trainers/trainees off of the job. Does not require the investment of a training program and trainers to administer the program Training is performed in a “live environment” within the branch that they will be asked to perform Offers lead tellers an opportunity to train
o Con: Creates an inconsistent training program Less opportunity to learn beyond the tasks and events that they have experienced while they were training Less time for why to do something, only how to do a task Less means to measure participant’s retention of the trained concepts Trainee error can result in a real customer problem Decreased productivity of both teller that is being trained and the teller who is administering the training
Instructor-lead classroom o Pro: More consistent training program Trained knowledge can be monitored through observation and testing Training occurs in a controlled and “safe” setting where the customer will not see errors by the training participant Responses to specific questions are available more readily
o Con: Costs associated with a training program materials Requires training staff and simulated environment to administer the training program Training classes and training schedules apply and must mix with new hire tellers You will need “critical mass” of a sufficient class size to conduct a training class Teller training classes will need to be scheduled around other training programs that the department delivers Teller participants must adhere to the learning schedule and pace of the class Classroom environments are not real-world
Distance learningo Pro: More consistent training program Knowledge can be monitored through testing Testing results can be monitored and reported quickly and accurately Training to occur in a controlled and “safe” setting Teller training is completely flexible to the teller hiring schedule No need to reach a “critical mass” in size to conduct a training class. Training classes can be as small as a “class of one”
o Con: Cost associated with the investment of a training program Requires the infrastructure to deliver the distance learning strategy Pure distance learning limits practical “hands on” experiences of teller transactions Less ability for participant to question and obtain enhanced learning of subjects
Blend learning strategy of OJT, Classroom, & Distance Learning:o Pro: More consistent training program Trained knowledge can be monitored through testing Testing results can be monitored and reported quickly and accurately Allows training to occur in a controlled and “safe” setting where the customer will not see errors by the training participant Allows the training schedule to be completely flexible to the teller hiring schedule Participant can obtain responses to specific questions A portion of the training can be performed in a “live environment” within the branch that they will be asked to perform
o Con: Costs connected to the investment of a training program Requires the infrastructure to deliver the distance learning strategy Requires the investment in a training staff and simulated environment to administer the training program Critical mass problem of class size still exists, but is limited to only a portion of the training experience
Whichever basic teller training solution is chosen, a full-circle teller-training program needs to be:
Inclusive for all personnel Motivational for the staff and management Adaptable to your products, culture, and needs Cost effective to administer Delivered in a consistent, measurable, and engaging manner
Last but not least, there are several finishing factors that fix the outcome of well-rounded and successful teller training initiatives:
Whether you are a large or small banking institution, you need to underscore teller training by reinforcing its value across new hire training events, supervisory support and ongoing development. Without these final touches and consistent commentary, tellers will succumb to the stress of everyday situations that test their patience and skills and cause them to look elsewhere for entry-level pay. Be prepared by reviewing your bank’s approach to teller training - you are forewarned.
However, in order to be effective as frontline personnel, tellers need to be motivated and capable of consistently exhibiting a positive “can do” attitude toward understanding and exceeding customer expectations. To achieve this goal, tellers need to have a clear understanding of your bank’s infrastructure, systems, internal procedures and new products.
Tellers also need to know how to keep a client, listen actively, complete a timely transaction, resolve problems, and look and act professionally at all times.
In order for tellers to be effective at sales and service, it is the responsibility of the bank to properly recruit, prepare, continuously improve, and compensate tellers. It is also important for supervisors to encourage tellers, just as we do in any other banking business area, and on any other banking level.
Untrained tellers can: Frustrate customers Make the bank vulnerable to regulatory compliance and legal exposure Incorrectly complete transactions and short bank money and fees Perform poorly, exhibit low morale and ruin a bank’s reputation
To avoid the negatives of untrained personnel, a bank’s basic teller training should include: On the job training Instructor-lead classroom Distance learning Combination strategies
In addition, the full treatment would include: Ongoing staff development Frontline supervisory strategies
Choosing the basics of teller training delivery needs to reflect your bank’s culture, capability, and budget.
On the job training:o Pro: Is inexpensive to administer. No need take trainers/trainees off of the job. Does not require the investment of a training program and trainers to administer the program Training is performed in a “live environment” within the branch that they will be asked to perform Offers lead tellers an opportunity to train
o Con: Creates an inconsistent training program Less opportunity to learn beyond the tasks and events that they have experienced while they were training Less time for why to do something, only how to do a task Less means to measure participant’s retention of the trained concepts Trainee error can result in a real customer problem Decreased productivity of both teller that is being trained and the teller who is administering the training
Instructor-lead classroom o Pro: More consistent training program Trained knowledge can be monitored through observation and testing Training occurs in a controlled and “safe” setting where the customer will not see errors by the training participant Responses to specific questions are available more readily
o Con: Costs associated with a training program materials Requires training staff and simulated environment to administer the training program Training classes and training schedules apply and must mix with new hire tellers You will need “critical mass” of a sufficient class size to conduct a training class Teller training classes will need to be scheduled around other training programs that the department delivers Teller participants must adhere to the learning schedule and pace of the class Classroom environments are not real-world
Distance learningo Pro: More consistent training program Knowledge can be monitored through testing Testing results can be monitored and reported quickly and accurately Training to occur in a controlled and “safe” setting Teller training is completely flexible to the teller hiring schedule No need to reach a “critical mass” in size to conduct a training class. Training classes can be as small as a “class of one”
o Con: Cost associated with the investment of a training program Requires the infrastructure to deliver the distance learning strategy Pure distance learning limits practical “hands on” experiences of teller transactions Less ability for participant to question and obtain enhanced learning of subjects
Blend learning strategy of OJT, Classroom, & Distance Learning:o Pro: More consistent training program Trained knowledge can be monitored through testing Testing results can be monitored and reported quickly and accurately Allows training to occur in a controlled and “safe” setting where the customer will not see errors by the training participant Allows the training schedule to be completely flexible to the teller hiring schedule Participant can obtain responses to specific questions A portion of the training can be performed in a “live environment” within the branch that they will be asked to perform
o Con: Costs connected to the investment of a training program Requires the infrastructure to deliver the distance learning strategy Requires the investment in a training staff and simulated environment to administer the training program Critical mass problem of class size still exists, but is limited to only a portion of the training experience
Whichever basic teller training solution is chosen, a full-circle teller-training program needs to be:
Inclusive for all personnel Motivational for the staff and management Adaptable to your products, culture, and needs Cost effective to administer Delivered in a consistent, measurable, and engaging manner
Last but not least, there are several finishing factors that fix the outcome of well-rounded and successful teller training initiatives:
Whether you are a large or small banking institution, you need to underscore teller training by reinforcing its value across new hire training events, supervisory support and ongoing development. Without these final touches and consistent commentary, tellers will succumb to the stress of everyday situations that test their patience and skills and cause them to look elsewhere for entry-level pay. Be prepared by reviewing your bank’s approach to teller training - you are forewarned.
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