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Tips That You Should Take Into Account Before Financial Investment by Sofiya Machulskaya

ABC Staff
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Tips That You Should Take Into Account Before Financial Investment by Sofiya Machulskaya

Before choosing
investment instruments, you should consider several factors to find out what
suits you and avoid surprises.

One of the great
advantages of investing is that it allows you to build wealth more quickly. On
the other hand, the disadvantage is that depending on the type of investment;
you can put your capital at risk if you do not choose wisely.

Several factors
influence the security and growth rate of your money. However, there is no
doubt that investing is always a good decision.

For example,
simply by choosing a short-term investment that gives you a return over the
annual inflation rate, you are already protecting your money against
depreciation.

But, if you want
to grow it quickly, it is best to opt for investment instruments and funds that
offer you higher rates of return. 

The problem is
that those higher returns carry greater risk by exposing your capital to
fluctuations in national and international markets.

For you to make more informed and accurate decisions, you should follow Sofia Machulskaya’s recommended tips before investing.

1. Identify your investor profile

Analyze aspects
such as your age, your income, your family situation, the age of your children
and your investment purposes, so that you can decide what your tolerance for
risk is, what returns you want to receive and what combination of instruments
you should choose. 

2. Learn about the financial markets

Never invest in
something you don’t understand. You must be able to understand basic financial
terms and how the markets work so that you can identify risk situations and
know when it is appropriate to modify your investment portfolio.

3. Seek
advice

There a professional advisor like Sofia Machulskaya will help you define the composition of your investments according to your investor profile and will offer you complete information to make timely decisions.

4.
Decide which instruments to invest in

The advisor will
offer you various investment options depending on your aversion to risk and
your goals and timelines. But the final decision of what to buy and when to
sell is yours.

5.
Assign the amount for your investments

You don’t need to
have a large asset to start in the world of investments, but you do not need to
allocate all your savings to them, since it is most likely that you do not have
immediate liquidity.

6.
Diversify your portfolio

You have probably
heard the saying “Do not put all the eggs in only”. It is the concept behind
investment diversification.

If you invest in
different types and investment instruments, you will compensate for the
possible losses of some with the gains of others.

7.
Compare administrative costs

Pay attention to
the portfolio management fees charged by the brokerage house or investment
fund. 

You don’t want to
make multiple small investments in a fund that charges you a transaction fee.

Get informed and get good advice from Sofia Machulskaya. You will begin to see your asset grow to achieve your financial goals without taking unnecessary risks.

https://hubpages.com/@sofiya-machulskaya

Difference Between Financial Investment And Economic Investment by Sofiya Machulskaya

ABC Staff
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0
Difference Between Financial Investment And Economic Investment by Sofiya Machulskaya

The difference between
financial investment and economic investment is explained here, and the
benefits of which type of investment are good for companies.

The financial
investment consists of investing in strategic and non-tangible assets so that
the business of a company or an individual flourishes.

It consists of
allocating resources in a financial asset such as a bank account, stocks,
investment funds, currencies, and derivatives. 

Also, purchases of
financial assets can be made. This type of investment may or may not produce a
change that is the company may or may not receive benefits in the short term.

The business can make
a profit by placing money in financial investments such as an accrual savings
account. 

The financial investment can also be an expenditure on education or a business initiative that not only allows obtaining economic benefits but also generating work and wealth.

Economic
investment 

By making an economic
investment, resources are put into something that can generate benefits above
an initial cost.

The economic
investment would consist of the purchase or upgrade of machinery and equipment
or the addition of a workforce that helps or improves the company, such as a
tuition reimbursement program for employees.

In both economic and
financial investments, the company undergoes a cost-benefit analysis to
consider the potential return on investment. 

By the consideration of Sofia Machulskaya, these investments have risks. For example, investing in training programs could cost the company money if the employee leaves work a month later.

Difference between spending and investment

In financial terms,
spending and investment are two widely used concepts. Both involve an immediate
or deferred payment of the money. 

The difference between
these concepts will be the purpose of each one and its consequences in the future.

The costs are
expenditures that relate to the purchase of goods or enjoyment of service to
meet a need. 

Over time, the
consumption of that good or service occurs without expecting to obtain a return
in the future. An expense is immediate.

However, when we talk
about investments, it is the opposite. It is not an immediate expense but is
made to receive a future reward. 

A return on the amount
that is initially disbursed is expected, either with the same monetary nature
or with a more intangible nature, such as investments in education, health,
etc.

Other Types of Investments

Operating investments: 

These are the
investments made by the company to acquire current assets, that is, those that
make up the money-merchandise-money cycle by packaging, raw materials, fuels,
office supplies.

In a strict sense, are
not considered investments.

Structural investments: 

These investments are
made to acquire non-current assets that include machinery, buildings,
computers, cars, etc. 

These elements are
called fixed assets since they last over time for several financial years.

Renewal investments: 

These are investments that replace elements that, due to the passage of time or for any other cause, have become useless and unusable for productive activity. The suggestion of Sofia Machulskaya is a good option in case of renewable investment.

Expansion investments: 

These are investments
made to add new elements to those that already exist in the company to increase
production.

Innovation investments

These investments
substitute elements for others that incorporate technological improvements and
advances.

It is all about economic and financial investment, and you can get any assistant from Sofia Machulskaya to get business help.

https://hubpages.com/@sofiya-machulskaya

Why now is a good time to expand your buy-to-let portfolio

Claire James
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0
Why now is a good time to expand your buy-to-let portfolio

We discover why
buy-to-let landlords should increase their portfolio following the pandemic.

The past few months have undeniably been difficult for a majority of the UK and other areas of the world. The pandemic has likely changed any plans you may originally have had at the beginning of the year. No one could expect or envision the pandemic or its impact, not only on our health but also our economy.

To help revive the
economy, the government released several updates including reduced stamp duty
rates to help keep the housing market going, this is a massive bonus for those
looking to move and for buy-to-let landlords who want to increase their
portfolio.

Before the pandemic

If you were considering purchasing an additional property before the pandemic, you would have been faced with extra charges such as an increase in stamp duty tax with a surcharge of 3%, reduced tax relief for buy-to-let landlords and capital tax gains when you eventually go to sell the property.

Previously, the
government’s aim was to prioritise those who wanted to enter the housing market
by making it easier for them to purchase their first property and make it
harder for landlords to expand their portfolio.

If you are in the
position of being able to invest in more properties, now may be the perfect
time.

Let us explain why.

Why now is a good time to expand your buy-to-let portfolio?

Here are some of
the reasons why now is the time to consider adding to your property portfolio.

Stamp duty tax reduced

You may have heard
recently the governments new package to kick start the economy after lockdown
includes a reduction in stamp duty tax. The housing market was particularly hard
hit during the lockdown as no one was allowed to physically view another house,
nor were they allowed to move.

As restrictions
have eased, the stamp duty reduction is hugely welcomed by not only home movers
but also buy-to-let landlords.

You are currently
no longer required to pay the standard 2-5% stamp duty on main home properties
of the value between £125,000 – £500,000. If the property you are purchasing is
an additional property, landlords will only need to pay the 3% surcharge which
is payable on all buy-to-let properties or second homes.

The cut in stamp
duty means that landlords will see their tax bills start at a rate of 3% on
properties costing up to £500,000. This means you won’t have to pay the
original stamp duty of 2% of properties between £125,000 – £250,000 and 5% on
properties worth between £250,001 – £925,000.

The reduction in
stamp duty is to last for eight months, ending on 31st March 2021.

Property prices dropping

As people lose confidence in the economy and with people losing jobs, the property market has taken a small hit with a decline of 0.1% in property houses, bringing the average house value to £216,403 in June.

House prices have
been on the incline for the past 8 years, and with the rise expected to
continue in the following years to come, now may be the chance to benefit from
a bargain. Depending on how the markets go, if it continues to grow in a couple
of years, this could potentially be a good investment opportunity.

Increase demand for rental properties

Buying a buy-to-let
property, you need to consider what the rental market is like and whether you
can find someone to live in your property to pay rent.

According to recent
surveys and research, the UK rental market has been booming during the
lockdown. There is currently a tenant demand for rental properties with an
increase of 33% in May compared to this time last year.

This may be a sign
of the rental market starting to recover. When the demand for rental property
increases, it usually follows that rents will increase too.

Buy-to-let products have increased

Buy-to-let product
numbers have increased between May-June 2020 by 280, bringing the total of
mortgage options available to 1,735.

This means that Buy-to-let
landlords can now benefit from the biggest variety in mortgage options. Some
five-year fixed rate buy-to-let mortgages have seen product numbers rise the
most.

According to recent
research, borrowers with a fix for five years with 80% loan to value will see
the biggest rate reduction with the average being -0.67%.

Things to consider

Before committing
to expanding your property portfolio, there are other extra costs and things
you need to consider.

Rent break

As coronavirus has
shut down a large majority of the economy, a lot of people have or will face
losing their jobs.

With this in mind,
there may be some tenants who will struggle to pay their monthly rent. You will
need to make sure you have enough funds to cover any costs if you lose any
tenants for a period of time, or if they are struggling financially.

Landlords Insurance

Landlords insurance is vital to keep commercial or
residential investments safe during and after the pandemic. It can protect you
for buildings and contents cover, loss of rent, damages and forced closure.
This will help to protect you from most unexpected costs.

Use a financial advisor

Please be advised,
all information provided in this article is based on research and market
information, if you are considering purchasing additional properties, you
should visit a financial or mortgage advisor.

As the lockdown
continues to ease and the economy starts to open again, this may affect
property prices and interest rates. But as it stands at the moment it looks as though
the buy-to-let market is growing. 

Secrets To Long-Term Financial Success

Sam Allcock
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0
Secrets To Long-Term Financial Success

Long-term
financial success is something that everyone strives for, but not everyone can
achieve. There is a misconception that you must earn an above-average salary
and/or live on a shoestring budget to build towards a brighter financial
future, but this is not strictly true. It is possible to enjoy long-term
financial success if you are intelligent with your money, even on a modest
salary. Yet, unfortunately, most people are not educated in personal finance,
which holds them back. With this in mind, here are a few of the best ways that
you can build long-term financial success while enjoying a comfortable
lifestyle.

Analyse
Every Expense

One
of the most basic yet overlooked aspects of improving your financial situation
is analysing every expense that you make. You should always ask yourself if it
is something that you need and keep in mind that just because you can afford it
does not mean that you should buy it. If it is something that you need to buy,
be sure to shop around and try to find the best possible price.

Make
Reasonable Lifestyle Changes

People
often spend a lot of money on their lifestyle, which could be holding them back
financially. A few reasonable lifestyle changes that are worth implementing
include:

  • Switching to an electric car and/or reducing driving
  • Making packed lunches instead of buying from the shop
  • Drink less alcohol
  • Quit smoking
  • Eat less junk food/do not go out for dinner as often
  • Move to a more affordable home

Put
Money Into Savings Every Month

You
should also automatically deposit a percentage of your income into a
high-interest savings account each month. You
should shop around to try and find the best rates and set up automated payments
so that you do not have to think about it or get tempted to spend the money.

Get
To Grips With Your Pension

You
also need to have a clear understanding of what your pension situation is and
consider increasing contributions if possible – this could help you to earn a
lot more money down the line, and this forward planning is often what allows
people a brighter financial future.

Try
Cryptocurrency Trading

Investing
can be a smart way to build wealth for the future, and right now,
cryptocurrency trading is a good option. Much like with any type of investing,
this can be complex, and to trade successfully you will need to have a solid
understanding of markets, but this is not the case when you use the Bitcoin Evolution app which can automate
your decisions and allow you to enjoy a passive income.

Map
Out Your Career

Of
course, your career is your biggest tool when it comes to building wealth, so
this is an area that needs planning. You should map out what your career goals
are and find ways to maximise your income, whether this is applying for a
promotion, moving to a new company or industry, improving your employability,
or finding ways to supplement your income.

Focus
on these, and you should find long-term financial success and all of the
benefits that this brings to your life.

The Importance of Buying E-Cigarette and Vape Supplies From a Trustworthy Vendor

Sam Allcock
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0
The Importance of Buying E-Cigarette and Vape Supplies From a Trustworthy Vendor

Men and women often turn to e-cigarettes and other vape products when this wish to quit smoking or cut back on their tobacco habit. In fact, quite a few individuals find they kick the habit for good with the help of these products, which is good news. While questions remain regarding the safety of these products, many experts believe they are safer than their tobacco counterparts. Nevertheless, individuals must take care when purchasing e-cigarettes and vape supplies, as products purchased on the street often do more harm than good. In addition, the CDC recommends people not modify cannabis or nicotine e-cigarette devices. The agency believes modified products and those purchased on the street played a role in the recent round of lung sicknesses related to this activity.

EVALI

During the summer of 2019, individuals in over two dozen states became ill after vaping, and experts raced to identify the cause of the condition they referred to as EVALI. Some blamed it on affordable vape supplies, but that turned out to not be the case. The CDC could not gather evidence that identified a single device or product responsible for the illnesses, but health officials across the country expressed alarm regarding the use of vape products. This led the CDC to issue several recommendations regarding the use of the products.

The agency told people concerned about their health to avoid the use of e-cigarettes completely and speak to their doctor regarding alternative smoking cessation methods. It said youth and young adults should avoid the use of the products along with women who are pregnant and anyone who doesn’t already use tobacco products. The statement issued by the agency said anyone using an e-cigarette or vape products should watch for
symptoms. If the user-developed a cough, shortness of breath, or chest pain should seek medical care right away to rule out lung illnesses related to the use of the e-cigarettes and vape products.

The Illness

By late June 2019, over 200 people across 25 states developed severe respiratory illnesses. Quite a few required hospitalization because of their illness, and some patients needed a ventilator to assist with their breathing or extensive monitoring within an intensive care unit. One woman in her 30s died in Illinois, and public health experts looked into a link between her vaping habit and the illness that led to her demise. They couldn’t provide a definitive cause of death until they got toxicology reports and other tests conducted.

Certain patients who became ill reported they have used e-cigarettes containing THC. This substance provides the high associated with marijuana use, and doctors were looking into the connection between cannabinoid oils vaporized in cartridges and the illnesses being seen in medical centers in these states. However, some patients claimed to have only used e-cigarettes and vape products containing nicotine. Several patients seen reported their symptoms were mild at first and gradually occurred more often. They explained they have trouble breathing and chest pain before the symptoms became so troublesome they required medical care and hospitalization.

The Cause

Doctors struggled to find a common cause for the lung sicknesses and questioned whether patients were experiencing distinct illnesses with similar symptoms. The Centers
for Disease Control called for data regarding the illnesses and found that more than half of the samples tested contained THC and many used vitamin E acetate as the diluent. They continue to research this topic today.

Back in 2019. Dr. Scott Gottlieb, a former commissioner of the FDA, states he believed some cases would be associated with THC use and illegal products. He explained major manufacturers didn’t seem to play a role in the illnesses, as none had recently changed the ingredients in their products. He said it appeared an illegal manufacturer introduced a new
product to the market that led to the injuries. It appears that he was right.

Long-Term Effects

Experts know little when it comes to the long-term effects of e-cigarettes and vape products. They highlight the fact that these products lack the tar and other carcinogens present in conventional tobacco products. The concern lies in the fact that they must combine nicotine or THC with solvents that dissolve the drug and deliver it. They have yet to determine fully how this process affects the human body.

Today, the FDA continues to seek unpublished data and information that may be of help in determining how vaping products played a role in these lung injuries. In addition, the agency wants to collect information on the design of various vaping products and ways manufacturers might stop consumers from modifying these substances or adding substances to them that weren’t approved by the manufacturer.

However, the FDA isn’t recommending individuals who smoked tobacco cigarettes and have made the switch to vaping products should return to their former habit. They recommend these individuals turn to FDA-approved cessation methods. However, many men and women tried these methods only to fail before turning to vape products and succeeding. Men and women need to weigh all options and decide which is right for them.

Where to Buy

For those who choose to vape, it is crucial to purchase Pre-filled pod vapes from reputable manufacturers. Although it may appear cheaper and easier to use products made by a friend or share those obtained on the black market, individuals who do so cannot know what is in the product. This appears to be the case with those diagnosed with lung illnesses and injuries last year. However, the CDC also recommends individuals not make use of THC oil, as they worry this could lead to health issues.

Men and women must do their own research to determine if vaping is right for their needs. Quite a few individuals find they need this activity to replace their use of tobacco products. Other men and women find they switch to vape products for a period before giving up this
habit. Regardless of which category a person falls into, their health must remain the top priority. For this reason, any person making use of vape products must ensure the items used in this activity come from reputable providers. Nobody wants to do damage to their health while trying to improve it. Sadly, that happens all too often when black market products are used, which is why it’s better to be safe than sorry and only buy from trusted sources.

How To Improve Your Financial Situation

Sam Allcock
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0
How To Improve Your Financial Situation

Are you looking to develop your financial situation? This is something
that many people want to achieve, whether they are struggling to make ends
meet, they want to upgrade their lifestyle, or they are simply looking to build
for the future. Despite many people wanting to do this, often people do not
know how they can improve their financial situation. So, how can you achieve
this? There are many different ways that you can improve your financial situation
and combining a few of these could have a significant impact on your situation
and life. Read on to find out what areas you should be focusing on.

  • Control
    Your Spending

The first area to focus on is your spending, as this is often what holds
people back from improving their financial situation. You need to control your spending so that
you are saving more each month, and this can make a big difference over the
long-term, but equally, you do not want to make life difficult or unenjoyable
for yourself. You can control your spending by listing all of your regular
expenses and then seeing if you could eliminate the cost or make savings
somehow – even a minor saving can make a big difference over several years.

  • Improve
    Your Career Prospects

Increasing the amount of money that you earn is, obviously, an excellent
way to build wealth and improve your situation. This is why you must consider
your current career path and determine what steps you need to increase your
earnings – this might include:

  • Asking for a raise
  • Moving to a different company
  • Training
  • Earning new qualifications
  • Changing industry
  • Supplement
    Your Income

In addition to your regular salary, you could also look to supplement
your income, which is something that many people do in today’s day and age to
boost their income. This does not necessarily have to entail committing to a
part-time role as there are many flexible ways to earn in today’s day and age,
including online work, which
allows you to work as much or as little as you’d like and earn while working
from home.

  • Cryptocurrency
    Trading

Another way to earn extra money each month and build wealth is
cryptocurrency trading, which involves buying and selling digital currencies in
a similar manner to Forex trading. Of course, this is not without risk. Still,
you can significantly mitigate this by using intelligent software that provides
real-time trading signals and helps you to make intelligent, timely decisions
to maximise returns – click here to find
out more.

  • Set
    Yourself Financial Goals

You will also find that it is useful to set yourself financial goals
both for the short and long-term. This is because many people start off making
positive changes but quickly lose motivation and recent back to old habits –
you have to see this as a long-term project and have targets along the way,
which will keep you on track and motivated.

It is difficult to improve your financial situation but focusing on
these areas should help to make a positive difference and help you to be
smarter with your money.

Which Type of Mortgage Loan Should Homebuyers Go For?

Sam Allcock
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0
Which Type of Mortgage Loan Should Homebuyers Go For?

Purchasing a home is sure to
be an exciting moment in everyone’s life. However, it also requires you to
study the financing options carefully. The entire process can be quite
overwhelming as you may have to choose from different types of home loans. You need to do some homework in order
to nail the down payment amount and also your budget.  

This guide will help you
choose from different mortgages if you are having a hard time choosing from the
mortgage loan options available.

  1. Conventional
    Mortgage

This home loan is not insured
by any federal government. There are two kinds of conventional loans: Conforming
and Non-Conforming Loans. In a Confirming loan, the loan amount falls
within the range set by government-sponsored enterprises such as Fannie
Mae* and Freddie Mac**. The loans that don’t fall under
these guidelines are referred to as non-conforming loans.

The major advantage of
choosing this type of mortgage loan is that it can be used for an
investment property, primary home, or for a second home. The overall borrowing
costs here are lesser in comparison to others; however, you need to have a debt-to-income
ratio greater than 45 percent. It is suitable for borrowers with strong credit,
employment history, and a stable income.    
  

  • Jumbo
    Mortgage

This conventional mortgage has
Non-Conforming limits. This implies that the home price exceeds the federal
loan limit. The maximum conforming loan amount for 2020 for a single-family
home is $510,400***. The ceiling is high in high-cost areas. Jumbo
loans are quite common in higher-cost areas and require an in-depth
documentation process. Though you can borrow more money, you need to make a
down payment of a minimum of 10 to 20 percent of the home loan amount.   

  • Government-Insured
    Mortgages

The US government plays a
crucial role in helping Americans become homeowners. There are currently three
government agencies+ that back mortgages in America –

  1. USDA
    Loans (The U.S. Department of Agriculture)
  2. FHA
    Loans (The Federal Housing Administration)
  3. VA
    Loans (The Department of Veterans Affairs)

These housing loans help
individuals who do not qualify for conventional loans. Here, the credit
requirements are quite relaxed and you don’t have to make a large down payment.
However, you will have to bear higher borrowing costs with these mortgage
loans. You may also be required to provide substantial documentation when
applying for these types of mortgages.

  • Fixed-Rate
    Mortgages

Fixed-rate mortgages remain at
the same interest rate throughout the life of your loan. This implies that your
monthly payment remains the same. You can pay more interest with a long-term
loan. In this kind of mortgage, it will take some time to build equity on your
property. Also, interest rates are quite high. 

  • Adjustable-Rate
    Mortgages

These have fluctuating
interest rates that can either go down or up with market conditions.
Some of these products carry a fixed interest rate for a few years before it
changes to a variable interest rate for the remainder of the loan repayment
term. You will enjoy a lower fixed rate during the first few years of securing
the homeownership. If you don’t have any plans to stay in your home after a
couple of years, then this mortgage will save considerable money on interest
payments. 

  • Other
    kinds of Home Loans

Apart from the
above-mentioned mortgages, there are plenty of other options that you can
consider. You can choose from Construction Loans, Interest-Only Mortgage Loans,
Balloon Mortgages, and more depending upon your requirements. If you want to
construct a home, then opting for a Construction loan would be the right
choice. 

With an Interest-Only mortgage,
the borrower just pays interest on the loan for a set period, and after that,
you start paying the principal amount. You won’t build equity quickly with this
kind of loan as you are paying only the interest in the initial days. These
loans are best for people who can sell or consider refinancing options at a
later stage.  

Balloon mortgages require you to make a large
payment at the end of the loan tenure. Initially, you will be making payment
for a 30-year term within a short time frame. In the end, you will be making a large
payment on the outstanding balance.

Conclusion

You can consider the
information provided here as a starting point in your search for the most
optimum mortgage suited to you. You may have to do an in-depth study on each of
these kinds of home loans to learn about their pros and cons before finalizing
anything.

Before choosing any mortgage
option, you should analyze your financial situation thoroughly. Reviewing your
needs and circumstances and doing your research will help you choose the most
suitable option as per your needs.  

References:

* https://en.wikipedia.org/wiki/Fannie_Mae

** https://en.wikipedia.org/wiki/Freddie_Mac

*** https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2020.aspx

+ http://www.loanlimits.org/government-insured-mortgage-loans-explained/

How to get Emergency Loans for the Unemployed

Sam Allcock
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0
How to get Emergency Loans for the Unemployed

As of June 2020, the unemployment
rate stood at 11.1%*. This unemployment rate is on the higher side, and
in the midst of the current COVID-19 pandemic, job uncertainties have increased.
Imagine a situation wherein you lost your job all of a sudden? There’s no
reason to panic yet, as you can look for emergency loans even if you don’t have
a current job. You can use these funds until you get employed next.

How to Qualify for
a Loan if you are Unemployed?

Two factors can influence
your chances of availing an emergency personal
loan
despite
having no current job. They are: Your Credit Score and any Alternative Source
of Income.

  • Your
    Credit Score

Your credit plays a vital
role in getting your emergency loan approved in case you are currently
unemployed. The financial lenders will definitely go through your credit
history as well as your credit score in order to determine your ability to
repay the availed loan amount.

If you have a high credit
score, then the financial lenders will definitely consider offering you a loan.
On average, a credit score of 670 and above is considered to be extremely good.
Ultimately, it also depends upon the scoring model** such as
Vantage Score or FICO.

The credit scores are usually
calculated utilizing the information present in your credit reports. You can
verify the same on an annual basis and at no additional costs. If you have a
good credit history, then so is the chance of you having a good credit score.
It is very important for you to consistently check your credit score and fix
any issues with respect to the same in order to correct your credit score.

Always remember that any past
due amount which is older than 30 days can cost you at the very least 100
points on your credit score.

  • Options
    with respect to Alternative Income

If you do not possess any
employment proof in case of a layoff, then you can show alternative sources of
income to your financial lender to express your loan repayment ability. Unemployment
benefits can easily be used*** to represent your income status on the
following:

  • Pension as well as retirement
    benefits
  • Income of your spouse in case
    of availing a joint personal loan
  • In case of any disability
  • Child support or alimony
  • Social Security benefit
    payments

In case you have certain
savings in your bank account, or in case you are a freelancer having an
independent source of income, or if you have any upcoming job offer, then you
can even present those as your source of income to your financial lenders.

What to do in case
you do not qualify for any loans?

In case you do not possess
any income to avail a personal loan, then there are certain alternatives for
emergency loans. Following are some of the alternatives:

  1. Applying
    for a loan along with the Co-Signer

If your credit score prevents
you from availing a personal
loan
when you are currently unemployed, then having a cosigner while applying for
the same can definitely help your cause. The co-signer can be a family member
or your friend having a good credit score. The advantage of having a co-signer
is that it increases your possibility of getting your loan approved. You can
try to get your loan at a lower interest rate and if possible avail a larger
loan amount as well.

Always remember that both you
as well as your cosigner are responsible for the payment of the loan amount. So,
in case either one of you misses those payments, then you come under financial
scrutiny.

  • Getting
    a Joint Personal Loan

Just like a cosigner, you can
always apply for a joint personal loan with anyone who has good financial
security and credit score.

The basic difference between
the two is that the cosigner only shares the responsibility of repaying the
loan and not the ownership. In case of a joint personal loan, both the
applicants are the owners. Availing a joint personal loan can be beneficial for
friends, couples and families in which one member is unemployed while the other
has a steady source of income.

  • Applying
    for a credit against your home or HELOC

If all of the above options
do not meet your requirements, and in case you are a homeowner, then a Home
Equity Line Of Credit (HELOC) may be able to offer you some emergency cash. The
credit allows you to borrow money against your home and therefore is not
dependent on your income. It basically involves a revolving line of credit
through which you can borrow based on your requirements.

HELOC is not dependent on
your income. But, it uses your home as collateral against the availed credit.
In case you’re unsure about making the repayments, then you have to be
extremely careful before availing this credit and should consider choosing any
alternative routes for financial assistance.

References:

* https://www.wsj.com/articles/june-jobs-report-coronavirus-2020-11593651420

** https://www.debt.org/credit/report/scoring-models/

*** https://www.dol.gov/coronavirus/unemployment-insurance

How to get a Personal Loan with Bad Credit Score?

Sam Allcock
-
0
How to get a Personal Loan with Bad Credit Score?

Having a bad or poor credit score generally makes it tough but not impossible to avail a personal loan. Credit unions, Peer-to-peer loans, Home equity, and even debt consolidation without any loan can definitely improve your credit rating. This, in turn, increases your financial options in the future. But a bad credit score will certainly not help you in getting a loan at a good interest rate. You could try to dispute credit report through Smart Credit. Or, you can still try to find a bad credit loan at interest rates which are much lower when compared to those you would find on Payday loans*.

What are Bad Credit Loans?

Bad credit usually refers to low
credit history or credit score. Acts such as late payment as well as maxed out
credit cards contribute towards lowering your credit score.

Bad credit loans are usually
an option for individuals whose credit scores reflect some sort of financial
missteps. It is also useful for those individuals who simply wouldn’t have had
the time to build any sort of credit history. Bad credit loans are either
unsecured or secured personal loans. The applicable interest rate, loan
tenure period as well as the processing fee varies from one financial lender to
another depending on the kind of loan.

Several financial lenders such as banks, online lenders, and credit unions offer bad credit loans to those individuals who have poor credit. However, the criteria as to whom they consider creditworthy borrower varies from one financial lender to another. Few lenders have a good setup requirement when compared to others which makes it quite evident for an individual with a bad credit score to shop when looking for such bad credit loans.

UK credit matching service Now Loan can allow people with poor credit histories to attain the loan they need despite bad credit.. Services like this compare dozens of lenders and match borrowers with the right one for them instantly.

What is Considered a Bad
Credit Score?

Credit scores are usually a
means to gauge your likelihood to repay a loan. The credit scores usually range
from 300 to 850. If your number is higher, then it is more likely that you
would repay the loan amount.

Bad credit score ranges
from 300 to 650**. Individuals in this category are usually considered
high-risk borrowers and end up paying the highest interest rates. Individuals
in this category are usually the prime candidates who look for bad credit
loans.

However, the definition of a
good and bad credit score is quite subjective and varies from amongst different
financial lenders. Some lenders do not prefer to offer financial products to
those individuals who have a credit score below 650. Few financial lenders who
like to market to different consumers will opt for individuals having scores
below 650. A general descriptive score index can be as shown below:

  • Excellent credit score: 760-850
  • Very good credit score: 700-759
  • Fair credit score: 660-699
  • Poor credit score: 620-659
  • Extremely poor credit score:
    Below 620

How can you get a Bad Credit
Loan?

Availing a personal loan with
a bad credit history though difficult, is not impossible. But it definitely
requires some effort from your end to research the most affordable loan out
there for you. Following are a few steps you can follow to avail a personal
loan in case you have a bad credit history:

  • Checking
    your Credit Score

The first step towards
availing a personal loan with bad credit involves checking your credit score. Always
remember that any individual is entitled to one free credit report on an annual
basis from each of the credit reporting agencies.

  • Look
    for a Guarantor

Several financial lenders are
willing to offer loans to individuals with poor credit history if they have
backing from a guarantor. This will prove to the lender that there are reduced
risks associated with granting your loan.

  • Compare
    between Different Bad Credit Personal Loans

If you are on good terms with
any financial lender such as a bank or a credit union, and if your account is
in a good position with regular paychecks, then you can try to avail a personal
loan. Besides, you must also go through the reviews of different bad credit
personal loans available online to find out any hidden or extra fees. This will
also ensure that you have not missed out on any chance and have availed the
best offer available.

  • If
    possible take advantage of Pre-Qualifications

Prior to applying for any
personal loan with different financial lenders, you are allowed to check if you
pre-qualify for the personal
loan
without pulling any hard credit checks. This is quite an ideal way to shop
around bad credit loans without creating any impact on your credit score.

  • Look
    for Secured Loans

Few financial lenders also
offer secured personal loans which are quite easier to avail for individuals
who have a below-average credit score. Such loans are usually backed by certain
assets like a car or your home. However, the advantage is that they have a
lower APR which works out in your favor.

References:

* https://www.consumerfinance.gov/consumer-tools/payday-loans/

** https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/

The state of the fine wine market during the COVID-19 pandemic

Sam Allcock
-
0
The state of the fine wine market during the COVID-19 pandemic

It is not the case of if the fine wine industry will
be affected by the current coronavirus pandemic and the ensuing financial
fallout, but rather how and when. Economists are predicting at least a global
recession, with its length and severity yet to be determined. This will affect
the fine wine market as it will affect all markets, with a number of particular
considerations specific to fine wine investment itself that also must be taken
into consideration. For example, the cancellation of many of the en primeur
tastings due to safety concerns and the lack of international investors able to
travel to sample and buy 2020 vintages. As the year has progressed, a clearer
picture of the state of the market is beginning to emerge, so let’s take a look
at some of the reports coming out of different regions and briefly analyse what
this might mean going forward.

Firstly, the market continues to broaden. With 2nd
quarter reports out from leading wine exchange Liv-Ex showing that the number
of unique wines traded on the secondary market in the first have of 2020 was
37% higher than the same period during 2019. The share commanded by Bordeaux,
historically accounting for up to 80% of all secondary sales, is now down to
just 34%. A major contributing factor to this is wine originating from Italy,
Spain, and the Rhone Valley all experiencing an exponential growth in secondary
sales in 2020, averaging around a 140% increase.

It is not all bad news for Bordeaux, however. The Bordeaux
500 index, which tracks the sales performances of the last 10 wines taken from
the top 50 Bordeaux labels, shows an annual decline of just 0.05% over the
year-to-date. In March the index was in decline by several whole percent but is
has bounced back and recovered by 2.2% as of July 2020. Of the best performing
vintages, the Chateau Smith Haut-Lafitte comes out on top and is up 3.4%, with
Chateau Rieussec a close second at 2.3%.

Elsewhere, other regions continue to see steady growth
in-line with the broadening secondary market. Italian wine is the stand-out
winner here; over the past decade their market share has increased a staggering
1500%. Its rise in popularity has no-doubt contributed to this new level of
growth, as Liv-Ex reports the value of Italian wine traded on their exchange
between January and August 2020 has already surpassed the entirety of 2019,
with the total volume not far behind. The calculated compound annual rate of
growth over the last decade for Italian wine in the secondary market is 9%. A
major contributor to the success of Italian wine during the pandemic period is
the immunity to the US trade tariffs which hit both the Bordeaux and Burgundy
wines from France.

Rosé and
Champagne have also been stand-out performers for 2020 thus far. Several major
retailers, such as Corney & Barrow and Justerini & Brooks, have
reported massively increased sales in these types of wine over the past six
months. While the demand for all wine seems to have increased during the
lockdown period, this wines in particular are coming close to selling out from
many major providers. With customers having more time available to them, it
seems that many are using the time to experiment with drinking wines and
investment opportunities. Similarly, merchants are making use of their time to
increase the volume of sales pitches being delivered remotely to offer wines to
potential buyers. The gambit appears to have paid off, with some champagne
vintages over-selling on their first offerings, forcing merchants to restock
quickly to meet demand.

A
representative from UKV
International said, “prospects look good
for the fine wine market, and its reputation as a recession-proof asset seems
to be remaining in-tact so far. The market continues to broaden, with steady
growth from numerous regions represented in the secondary market, and
short-term demand for a number of wines seems to have increased dramatically
during the lockdown period. It may indeed be a great time to consider further
investment into these markets as the inevitable COVID-19 recession begins to
take hold”

Of the best
performing wines this year, Champagne, Tuscany, and Rhone all dominate the top ten.
Wines from these regions account for eight of those top ten places, with growth
between 8-14%. The best performing wine is the Burgundy Domaine de la
Romanee-Conti, 2007 La Tache with a six-month performance of 15% between
January 1st and June 30th, 2020.

1...731732733...911Page 732 of 911

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