Nocomo: Blog Nocomo: Blog https://www.nocomo.org/blog/ Copyright by Nocomo en Nocomo Sat, 17 Apr 2021 05:10:12 -0400 What Is an FHA Home Loan An FHA loan is a mortgage provided by private lending institutions but insured by the FHA (Federal Housing Administration). FHA loans are designed to help people with low incomes become homeowners.

This type of mortgage is especially convenient for prospective first-time homeowners who may have not enough savings to make a significant down payment. If you qualify for an FHA loan, you can pay a down payment that’s as low as 3.5%.

However, you do not have to be a first-time buyer to qualify for an FHA loan. If your credit isn’t looking too good or has even filed for bankruptcy, you still have a good chance of qualifying for an FHA loan compared with most conventional home loans.  

This article will help you understand better what an FHA loan is, how they work, and the FHA home loan requirements you need to qualify.

How Do FHA Loans Work

When buying a home through a mortgage, you’re allowed to choose between two kinds of mortgages; a government-backed mortgage or a conventional mortgage.

A conventional mortgage is a bit difficult to get since it is not backed by any government agency. You need to have a 36% debt to income ratio, a 620 credit score, and to make a down payment of 10%.  

A government-backed mortgage, on the other hand, is guaranteed by a federal agency. In this case, an FHA loan is guaranteed by the Federal Housing Administration. The FHA was created by Congress in 1934 when the housing market was in trouble during the Great Depression.

The FHA was created to stimulate the housing industry because foreclosure and default rates had soared considerably. This prompted lenders to impose strict mortgage terms, high-interest rates, and short repayment plans. The FHA thus reduced lender risk to make it easier for Americans to qualify for mortgages.

There is a catch, however. As a borrower, you have to pay FHA mortgage insurance. Mortgage insurance is required on most loans when loanees make a down payment of less than 20%.

As such, FHA loans require the loanee to service two mortgage insurance premiums:

  1. A monthly mortgage insurance premium of 0.45% to 1.05% depending on the loaned amount, the LTV (loan-to-value ratio), and the duration of the loan.
  2. Upfront mortgage insurance premium that’s paid when the loanee receives the loan. It’s usually 1.75% of the entire loan amount.

So if you borrow $100,000, your monthly premiums would range between $37 to $82 depending on the term, and your upfront mortgage premium would stand at $1,750. 

FHA Home Loan Requirements

To qualify for an FHA loan, you need to meet the following requirements:

  • Verifiable employment history for the past couple of years.
  • Verifiable income through bank statements, federal tax returns, and pay stubs.
  • FICO score of 580 or higher with a 3.5% down payment or a FICO score ranging between 500 and 579 with a 10% down payment.
  • The loan should only be used to pay for a primary residence.
  • A front-end ratio not exceeding 31% of your monthly income and a back-end debt ratio not exceeding 43% of our monthly income.

The Key Takeaways

FHA loans were designed to help homeowners who are shopping on the lower end of the price spectrum. But as great as it sounds, the truth is an FHA loan is not for everyone. It certainly won’t help anyone with a FICO score less than 500. 

If you feel that an FHA loan is ideal for you, before applying, try and consider your budget, credit status, and scouting for a good lender.

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Uncategorized https://www.nocomo.org/blog/what-is-an-fha-home-loan/ https://www.nocomo.org/blog/what-is-an-fha-home-loan/ Editor Tue, 02 Mar 2021 22:57:36 -0500
2021 Investment Update By: Arthur Doglione
www.alphafiduciary.com

Raise your hand if you predicted 2020 would see a global pandemic, massive unemployment caused by the first ever government mandated economic shut down in history, a highly contested election, and a stock market recovery from the lows that was amongst the strongest in U.S. history, all in the same year? Ok, put your hand down, there is always one in a crowd! While the calendar has turned all the pages of 2020, there are many differing opinions as to the current health of the U.S. economy and financial markets, have they come too far too soon, what effects will government stimulus and economic dislocations have on the financial markets in 2021 and beyond?

Widespread uncertainty in 2020 failed to dampen the outlook and recovery of equities in Q2 and Q3 2020, record low interest rates were certainly the fuel and spark the markets needed, however the markets took a pause in early Q4 as election chaos gave investors pause, until positive vaccine news once again provided the spark in November 2020. Stocks across the board have risen to new heights, awakening even value stocks from their multiyear slumber. However, following such an impressive rise some on Wall Street believe the rally has come too far too soon, prompting calls of a “bubble” in both stocks and bonds.

While it is our opinion that we are not currently experiencing a bubble in equities, we will grant that the most striking characteristic of economic bubbles, the very thing that fuels their existence is our blindness to them! Perhaps we should first define what a bubble is, one definition of a bubble is that an assets price rises rapidly to the point of being disconnected from any reasonable measure of its inherent value. This is typically caused by emotional inertia driving future expectations higher causing an implausible gap between price and value, some might say Bitcoin! Just an observation largely based perhaps on an inability to make a case for its value given many still can’t even determine if it’s a currency or a commodity! If it’s a currency there is not, and cannot ever be enough in supply to serve this role, if it’s to be viewed as a commodity similarly to gold or silver, I’ve yet to find anything that requires Bitcoin in its manufacture. It may very well continue its explosive price ascent, but attempts to determine “what it’s worth” have been difficult, if not futile.

One asset class where we believe weakness will continue is bonds; with rates at record lows and significantly elevated federal spending to support the economy as well as fund party pledges, we are aware the Fed’s desire is to keep short term rates at low levels, this does not preclude the free markets from pulling the intermediate and long end of the yield curve higher. This realization may seem unsettling to some investors, however, if the economy does start to show better growth in the second half of 2021 as we expect it will, we will likely see rates rise and bond prices fall. Alpha Fiduciary has focused on bond allocations largely supported by real assets or special circumstances which we believe are preferable to own, relative to traditional fixed rate bonds, in rising rate environments.

Finally, earning season will likely provide support for stocks as we begin to see the world return to a more normal operating environment, it would not surprise us to see at least a temporary surge in economic growth before settling in to a more gradual and sustainable GDP growth in the 2.5% range as pent-up demand is satisfied in 2021.

While we don’t think most longer-term investors should underweight stocks in this environment, we favor a core/tactical approach to equities as we believe this presents an attractive upside capture while posed to potentially reduce downside exposure should factors signal to reduce equity exposure in the event it’s warranted.

There are many different approaches to the tactical management of equities, designed and employed with the goal to gain exposure to asset classes when they are rising, and to reduce exposure to those asset classes to limit or reduce downside capture.

If you would like to discover if Alpha Fiduciary’s wealth management approach can benefit you, please visit www.alphafiduciary.com www.alphafiduciary.com/whoweare www.alphafiduciary.com/client-experience or call us at 480-505-4033.

Alpha Fiduciary is a SEC registered investment advisory firm.  This blog is provided for informational purposes only and should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or investment advisory service.    Please refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) to review our Form ADV Brochure for more information. 

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Uncategorized https://www.nocomo.org/blog/2021-investment-update/ https://www.nocomo.org/blog/2021-investment-update/ Editor Sun, 28 Feb 2021 23:15:34 -0500
What Is PERSONAL LOAN and How Does It Work A personal loan is money taken from a bank, credit union or on line lender that you repay in fixed monthly payments, or in instalments, usually over two to seven years.

While it is usually best to sink into your savings or contingency fund to cover unforeseen expenses, debt for immovable purposes, like personal stability debt consolidation, can be a good option.

How does a personal loan works?

Most personal loans are unsecured. Lenders decide whether to give you unsecured loans based on factors such as your credit score, credit history, debt-to-income ratio, and free cash flow. If  you are not eligible for an unsecured loan, you may be offered a secured or co-signed loan. Securities lenders have the same asset support as your home or car, and the lender can restore your property if you have a default. The two signed loans include an additional applicant with a strong credit profile who help guarantee the loan, they are responsible for the shortfall.

When is a personal loan a good idea?

While it is possible to use personal debt for just about anything, this does not mean that is always wise to do so. In general, it is a good idea to use a personal loan when it can improve your finances or provide the necessary funds. For example,

Debt Consolidation: If you have a high-interest credit card loan, you can save money by repaying it with with a low-interest personal loan. Even if you do not necessarily save money on interest, a personal loan can provide a restructured repayment period, which if you are struggling to motivate yourself to pay off your deb. If so, help may be needed.

Home Renovations: If you want make some improvements to your home, a personal loan may be a better choice than a home equity loan or credit line because there is no risk of losing your home if in you default.

Emergency Expenses: In an ideal world, you would have enough money for an emergency. But life is not always ideal, and if you finish your work, your car breaks down or your home furnishing needs to be repaired or replaced, a personal loan can provide peace of mind in time of stress.

Personal Events: Marriages, divorces and funerals can be expensive, and it’s not always possible to save for this big event in life. In these instances, a personal loan can provide much-needed funding at the right time.

Although it is possible to use personal such as vacations and expensive consumer goods, it is better to save until you can pay these expenses in cash or charge them on a credit card to earn points. Can’t and then pay them immediately.

How do I get a personal loan?

A strong credit profile gives you a better chance of qualifying for a low interest rate personal loan. However, there are licensed money lenders who offer good credit and bad credit loans. Some lenders to nothing based on alternative statistics, when reviewing the education, profession, and happiness involved in where you live.

How to compare personal loans?

Just like any other financial product, it is important to compare before applying for the various personal and personal loan options to purchase. Even if you get an offer from your primary bank or credit union, it is possible that you can get a better sample elsewhere.

There are several features to consider when comparing personal loans:

Interest Rate: The interest rate on the loan represents the value of the borrower’s money. According to experimental data, the average personal loan interest rate is 9.41%. However, depending on your credit and financial situation, your rate offer may be higher or lower.

Loan Term: Different lenders offer different payment terms, and how long you have to repay the loan affects to your monthly payments. If someone offers you three years to repay the loan and the other offers only two years, your monthly repayment may be significantly higher with the option but you may have a longer term loan. They can also sink on interest.

Fees: In addition to interest, some lenders charge a fee that may increase your annual interest rate (APR). For example, the principal fee is deducted from your loan funds before it is received, and some lenders also charge a fee and a prepayment fee if you repay the loan early.

Funding Time: Some lenders offer the next day’s financing, while others may take several days to deposit money into your checking account. Depending on how fast you need the money, consider these time lines.

Other Features: Not all lenders offer additional features, but some may allow you to charge lower interest rates if you arrange payments automatically or have an existing relationship with the bank. Others may offers tolerance options if you leave your job.

Many personal lenders allow you to qualify with a rate offer before you officially apply. This process usually requires a soft credit check, which will not affect your credit score. This process can help you to reconcile the debt and choose the best fit for you.

Types of Personal Loans

The most common type of personal loan is unsecured, secured, fixed rate loans, but some lenders offer other options that you should purchase.

Unsecured Personal Loans

Most personal loans are unsecured, meaning no suicide is required to guarantee a loan. An auto lane uses your car as collateral, so if you can’t pay, the lender can refinance your car.

Unsecured personal loans, on the other hand, have no physical assets to support them, so if you struggle to repay, the lender cannot take any such property from you.

Secured Personal Loans

If your credit can improve somewhat, you may still be eligible for a personal loan, but the lender may need it to be in the form of a secured loan. A car savings account or deposit.

The good news is that interest rates on secured personal loans are generally lower than unsecured loans. This is because the risk is less for the lender, because if they can’t pay you, they can commit suicide.

Fixed-Rate Personal Loans

Personal loans are usually fixed rates, meaning the interest rate remains the same for the life of the loan, as is your monthly payment. The advantage is that if you know how much your monthly installment will be, it will make it easier to fit your budge. You will also know in advance how much interest you pay in the life of the loan. A personal loan calculator can help you estimate your monthly pages before applying.

Adjustable-Rate Personal Loans

Although less common than fixed-rate personal loans, some lenders offer personal loans with adjustable rates. Instead of having the same interest rate forever, your interest rate changes over time.

The appeal of loans with adjustable rates, also called variable or flat rate loans, usually starts with low interest rates. After a certain time frame, interest rates may increase depending on market conditions, so monthly payments may go up or down.

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Uncategorized https://www.nocomo.org/blog/what-is-personal-loan-and-how-does-it-work/ https://www.nocomo.org/blog/what-is-personal-loan-and-how-does-it-work/ Editor Fri, 26 Feb 2021 03:07:23 -0500
Is a private lender the solution for your small business financing need in Australia? Running a successful business requires you to have an idea, a solid business plan, and money. But the majority of small business owners have the idea and the plan, but they do not have enough money to run the kind of business they want. They have to borrow the funds they need to run the business and pay the money later. One of the ways of funding businesses is through borrowing from traditional lenders. That is borrowing from banks and other financial institutions.

Small businesses need financing to advance their business course. But, banks are reluctant to lend them the finances they need. They have stringent conditions that the businesses have to fulfil before they can receive the funds they need. Most businesses are therefore not able to qualify for loans from these institutions. Those who qualify have to have adequate collateral. The businesses are left with no other option other than turning to private lenders for their small business financing.

Benefits of Borrowing from Private Lenders Australia

Many business owners in Australia prefer seeking business funding from private lenders. The flexibility of private lenders Australia attracts businesses to borrow from them. They prefer them to the traditional lenders. The following are some of the things that make private borrowing easier for most business owners.

  1. Increased Funding

Funding requirements differ from business to business. But the amount that businesses receive from private lenders is higher compared to conventional loans. The rules and regulations and the requirements of banks push businesses to private lenders. 

  1. Shorter Approval Time

The traditional lenders have long processes that businesses have to go through to have their loans approved. The private lenders make lending decisions faster than the traditional lenders. Depending on the private lender you choose, you may have your money within days. That is very fast compared to the time you take with the business loans from banks or financial institutions.

  1. High Approval Rate

Most of the private business loans get approved, unlike the low approval rate with banks' business loans. The traditional lender needs time to scrutinize the borrower's credit history, which private lenders do not do. The private businesses loan do not go through the process of credit score like what traditional lenders do. All that the lenders need is proof of ability to pay based on the business they are funding. Thus the rate of approval is very high.

  1. No Surprises

Borrowing from conventional lenders requires you to prepare lots of documents, a process that can be costly. After the bulk of the work, no one will want to hear that the loan application was unsuccessful. It is essential to know the possible pitfalls early enough before making all the preparations. It will help to know early enough if the loan will not be approved. The best thing with private lenders is that they do not wait until the last minute to surprise you. They will pinpoint the issues that may make the deal not go through before you go far with the process.

  1. Availability

Private loans have become part of the business world these days, and finding a private lender is no longer a challenging task. There are many private funds sources, and you can always connect with a private lender any time you want to advance your business idea. 

  1. Loans Tailored to Fit Your Needs

Private lenders are flexible and can tailor loans to fit your needs. They also allow borrowers to pay their loans at the best rate possible.

If you do not know any private lenders, you only need to login online and find a private lender of your choice. If you want to access a reputable private lender, you can use the trusted websites to connect you to approved private loan lenders. If you are considering advancing your business through private borrowing, use trusted websites. ADS.finance connects you to thousands of trusted private lenders who can finance your business in the shortest time possible.

All you need is to submit your loan, and you will be connected to the most appropriate private lender. The lender will assist you with the funds you need for your business. You will receive funding for your business in the shortest time possible.

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Uncategorized https://www.nocomo.org/blog/is-a-private-lender-the-solution-for-your-small-business-financing-need-in-australia/ https://www.nocomo.org/blog/is-a-private-lender-the-solution-for-your-small-business-financing-need-in-australia/ Editor Sun, 21 Feb 2021 03:35:30 -0500
The Top Reasons to Buy an Investment Property There are many reasons why you should engage in property investment. Just by making the right property choices, you are in for excellent returns, diversification, and tax advantages for a long time.

Therefore, if you are thinking about buying an investment property, especially buy investment property with cash then refinance, you need to understand the top reasons and why it is the best option.

Property Appreciation Boosts Profitability

Your decision to settle on investment property must have been informed by understanding that you can make money profits, rental income, and appreciation.

Wherever you go, you will realize the gradual increase in property value over time due to various factors such as development. By investing the right amount in property such as real estate, you are sure to harvest big just by letting the property value appreciate.

The cash flow also keeps on increasing as rent also appreciates over time. Specifically, in the U. S market, property value has shown to appreciate over time leaving investors with overflows when they lastly decide to sell properties they have acquired for a certain period.

There’s Asset Stability

The increased volatility and drastic changes in the economy threaten the stock market and make it a risky avenue to invest. However, property investment has outshined these avenues for years as the market does not change concerning the stock markets.

So, you will find that it is wise to invest in a property rather than placing your bets on bonds and stocks that might depreciate the value of your hard-earned money. Besides, the property has stable returns generated from property appreciation and rental income.

You Can Buy an Investment Property with Cash Then Refinance

Property investment provides the best option when you need to make financial adjustments to ensure you remain economically stable for a long time. The investment offers a benefit over time as most of your costs will be fixed.

This practice will help you buy the investment property with cash and then refinance to use the money to make other investments. With a refinancing, you will have various investment options that will provide inflation protection and add to your investment portfolio.

You Have Full Control!

The fact that you can buy an investment property with cash then refinance is one way that shows that you have some control over your investment. Besides, you choose what kind of property to invest in and the people you will conduct business with. Generally, property investment allows you to make all the necessary decisions, including the mode of maintaining and managing the property.

You do not need to move up and down, looking for further advice regarding every aspect of your investment. Similarly, you don't need groups of people following you wherever you go to help you in decision making. Technological developments have promoted the emergence of crucial services that help property management with little effort and no distractions from third parties.

Property investment will help save your money from other avenues that might see you lose daily. Having understood these top reasons, you will find additional advantages of your investment as you get into practice. All you need is to select the best site with financial prospects.

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Uncategorized https://www.nocomo.org/blog/the-top-reasons-to-buy-an-investment-property/ https://www.nocomo.org/blog/the-top-reasons-to-buy-an-investment-property/ Editor Tue, 16 Feb 2021 22:48:02 -0500
5 Ways To Earn Money From Home

While the pandemic is still ongoing, work-from-home jobs are becoming even more popular. The demand is expected to continue well into the future as more physical stores and businesses are also closing down, leaving people jobless. Fortunately, there are ways to make money in the comfort of home. You need to find the right one that suits your interests and expertise.

If you’re looking to make the most out of your time indoors, here are some ways to earn money from home:

  1. Paid Surveys

If you’re the outspoken and opinionated type, you can make the most out of your communication skills and get paid to take surveys. Various companies pay for views and surveys as a way to conduct market research. While it cannot replace a full-time income, it’s a legit way to earn money during your spare time.

You only need to sign up with reputable companies or platforms online. There are legit platforms where you can register for an account and answer a few questions in surveys that match your lifestyle or interests. You can earn around USD$1-USD$5 an hour, with experienced survey-takers raking up to USD$8 per hour. 

  1. Start A Blog

Do you like writing? If you do, you can start a blog about anything—food, hobbies, business, sports, technology, and anything relevant to your interests. Your blog can earn you passive income once you learn how to promote it.

Those who are earning from their blogs use search engine optimization (SEO) and Google AdSense for advertising. You can earn money from readers clicking on ads, promotions, and link-building to gain traffic and reputation. 

  1. Sell Items You Don’t Need

Used clothing and electronics in good condition sell quicker than you think. Buyers often check online stores to find bargains, and many are willing to take secondhand items. You can sign up at Poshmark and ThredUp to sell your clothing. You can also sell smartphones, laptops, and sound systems on Amazon and eBay. There are also companies such as ecoATM kiosks that pay for your things right away if you urgently need cash. 

  1. Create A Dropshipping Store

If you like online shopping, you’re not alone. Online stores are becoming popular, since people prefer to shop through apps and have items delivered to their house due to the pandemic. It’s becoming one of the fastest and lucrative ways to make money from home.

Dropshipping is a business model that allows you to sell products without stocking or keeping an inventory of said products. Dropshippers enter agreements with reputable suppliers who pack and deliver items on their behalf. You can find success stories of first-time dropshippers who managed to earn thousands of dollars in just a few weeks. Engaging in this business requires intensive learning and discipline as there are many online stores to compete with nowadays.

  1. Do Freelancing Work Online

If you’re familiar with job boards at campuses and classified ads that post job opportunities, there are online job posts as well. Websites such as Fiverr, Freelancer, and UpWork are job boards where people post skill-based jobs with corresponding salaries. Some will pay for full-time, part-time, and project-based work. The following are the most popular freelance jobs today:

  • Social Video Marketing
  • Writing/Content Marketing
  • Programming/Software Development
  • Graphic Design
  • Video Editing
  • Copywriting

If you feel like you need a decent computer setup, internet connection, and admission to freelancing courses, you may want to consider getting a small business loan. If you have a part-time job right now and feel the need to supplement your earnings, you can apply for prequalification to see what you can get with your current income.

Bottomline

You can research for more opportunities online and find one or two that you can see yourself doing for a while. In looking for an opportunity online, you should set an expected salary early on. Work-from-home jobs can be a great source of income depending on the job you get hired for.

Some find online jobs more rewarding than regular eight-hour office jobs. If you do your part by conducting research and learning a few skills, you can find remote jobs that pay better without the need to step outside of your house. 

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Uncategorized https://www.nocomo.org/blog/5-ways-to-earn-money-from-home/ https://www.nocomo.org/blog/5-ways-to-earn-money-from-home/ Editor Tue, 16 Feb 2021 01:51:08 -0500
What is Public Liability Insurance?

Every business is exposed to risks both from within and outside. And while risks within are crucial, those emanating from the public can run down your business if you are not well-covered. Those risks that are due to the public result in public liability and the fact that their effects are humongous, it is important to insure yourself against them.

Public liability is a claim that outsiders may bring against a business for the injury or damages caused to the property of the claimant. If for example, your business environment is not safe such that a customer is injured while in your premises or within your compound, or that their property is damaged, your business will be responsible and accountable for the loss. The list of potential claims that may be brought by a third party against a business is endless.

Because these risks can have far-reaching financial implications and reputational loss to your business, it is necessary to find a competent insurance broker to link you to a reliable provider of public liability insurance. Therefore, public liability insurance is that type of insurance that provides coverage for any losses or damages arising from the negligence or unsafe environment in a business.

Who is Required to Purchase Public Liability Insurance?

Many people say they work from home, or are contractors, so they do not require liability insurance. Contrary to this thinking, whether you are a small or large company whether working from home, or with physical premises, you need this important coverage since your existence relies on the interaction with the members of the public. It doesn't matter whether you have a large workforce or not, public liability is different from other types of insurance. While it is not mandatory to carry this type of insurance, many businesses say having it provides guaranteed protection against financial losses that may be occasioned when a third-party files a lawsuit for compensation. With the changes in law and the insurance regulatory framework, it is becoming increasingly necessary for businesses to consider purchasing this type of protection.

In a nutshell, all businesses, regardless of their size and nature of activities, are expected to buy this coverage in order to cushion themselves against potential losses that have been witnessed by some businesses in recent times. It should be noted that public liability insurance covers your business only when the customers are within your premises and not away. The implication of this provision is that any damages or injuries caused by your employees to a member of the public will solely be your responsibility and that your insurance company will not foot the bill.

Why You Need an Insurance Broker

While some people will choose to use insurance brokers to purchase their business insurance covers, a majority still prefer going directly to the insurance companies through their websites and other channels. This trend is slowly changing thanks to the best decisions that are arrived at when a broker is on your side. Wo what route should you take? Should you consider using a broker, or should you just take it upon yourself and deal directly with the insurance company? 

Well, working with a broker from Smart Business Insurance comes with a lot of benefits. First, it will save you the precious time and energy of scratching through the market to find and compare insurance companies, their policy features, and quotes.  Because you do not have extra time on your hands to shuttle between core functions and researching the best provider, finding a reliable and competent insurance broker will help you concentrate on your core work of improving the bottom line.

Secondly, you will be sure of a partner that will hold your hand and walk you through the tedious process of making a claim. The procedures of filing a claim can be long and cumbersome while the paperwork can be tricky to fill out. Improperly filled out forms can be a recipe for a lower compensation or non-approval of the same.

Third, it is not easy to assess your insurance needs, especially when considering purchasing a policy. Many people end up under-insuring their businesses, something that predisposes them to financial risks and losses in the event of a claim is filed against them. For this reason, you need an insurance broker to help you assess your risk level and help you get the kind of protection that is sufficient for your business.

How to find the Best Insurance Broker

The process of selecting an insurance broker from a list of hundreds of them out there can be confusing. To avoid hiring a broker who won't be the best fit for your insurance needs, it is essential to research the internet thoroughly, ask friends and family members for referrals and visit some of the leading rating companies for opinion. What's more, you need to establish whether or not your broker is fully licensed to operate in your area. By considering all of these avenues, you are likely to find an insurance broker who will link you to the right insurance company providing the best coverage for your business.

Already decided to go ahead and buy a public liability insurance cover? If you are still not so sure whether or not you need this type of insurance for your business, it is important to talk to your insurance broker today.

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Uncategorized https://www.nocomo.org/blog/what-is-public-liability-insurance/ https://www.nocomo.org/blog/what-is-public-liability-insurance/ Editor Mon, 15 Feb 2021 01:43:39 -0500
What Is The Easiest Loan To Get Approved For? A lot of things are possible online nowadays, which were not possible before. Everything is just one click away, such as organizing groceries or paying your taxes on the Internet. If you go a few years back then, people cannot even think about doing such things on the internet.

Nowadays, you can apply for getting approved for a loan online, and all the processes can be performed on the Internet while sitting in the comfort of your home. There are many options to choose from when it comes to taking a loan online, and there are many advantages of online lending networks.

The most significant benefit that you have to complete just one application that is very straightforward and simple, and it will be viewed by many lenders online.

In this article, we are going to discuss the most manageable loan to get approved for. So keep on reading to find out more information below about cash loans.

 1. CashUSA.Com

This lending network offers loans of more than $10,000, and it is an extensive network of lenders online. Currently, it is working to match the loan request with the potential lenders. The best part about this lending network is that the funds are made available in the bank account of the person taking the loan within 24 hours only.

There are no complex requirements to be considered for taking a loan. The only conditions that you need to be more than 18 years old and you need to be a United States citizen to obtain this loan. If you have an income of $1,000 per month or you are a permanent resident of the United States, then you qualified to take a loan.

 2. CreditLoan.Com

This is another online lending network that is trusted by many people who take loans online nowadays. The loans that you take will range from $50 to $500. You can easily apply for an online installment loan because it is quick and free. There are no additional charges, and it is going to be very easy for you, and potential lenders will be able to review your loan request easily online. The funds will be made available to your account within 24 hours.

 3. BadCreditLoans.com

Bad credit loans are offering in an online installment loan system. It is a loan installment system for people with bad credit. The best part about it is that it can be used for any purpose and you can quickly get your past due bills. The loan amount ranges from $500, and it can go up to 5000 Dollars. It is important to note that the repayment period is of 3 to 60 months. There are no complex or complicated requirements to qualify for a loan.

 4. PersonalLoans.com

It is offering loans up to 35000 dollars for the applicants who qualified to obtain The Lone. The terms range from 90 days, and it can go up to 72 months. The proceeds from getting this loan can be used for any purpose.

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Uncategorized https://www.nocomo.org/blog/what-is-the-easiest-loan-to-get-approved-for/ https://www.nocomo.org/blog/what-is-the-easiest-loan-to-get-approved-for/ Editor Wed, 10 Feb 2021 08:18:59 -0500
The Power of Invoice Factoring To Help Your Company Grow Constant cash flow is very important in ensuring a company’s capacity to pay for running costs and ultimately, business growth. Sometimes it can be difficult to maintain cash flow or find money to finance your business’s expansion especially if you have pending invoices that your clients have not yet fulfilled.

If you have floundering funds for your business, you can always use your own money as the business owner to fund your operations, but this isn’t always a sustainable approach. This means you might have to look elsewhere for capital and selling customer invoices is a good way of obtaining cash advances for your business.

Here are some of the benefits of invoice factoring for your business.

Instant Cash Flow

Invoice factoring provides you with a quick means of sourcing cash for your business. Sometimes you might need cash to pay your workers or retain a client with a big order, but your company does not have sufficient money in its accounts.

There are other forms of sourcing funds such as taking a business loan. Unfortunately, between filing for a loan and the bank’s approval, this process usually takes a long time; time that you may not have on your side.  

Invoice factoring involves you selling your pending invoices to a factoring company. One significant benefit to this approach is how quick the process is. You can receive the money from the factoring company on the same day or within the next 24 hours. You do not have to wait for long to receive the cash.

Invoice factoring will help you get the cash flow you need in almost no time so that you can pay for your operational costs immediately or fund big client orders.

Provide Financing Without Incurring Debt

The money you get from invoice factoring is not a loan; it is your money. The only difference is that you have traded the invoice for a cash advance. The money you receive from the factoring company does not add to liabilities in your balance sheet and your company will retain strong financial books.

There’s also the fact that you do not have to pay any interest, unlike a business loan. The only cost you incur when selling your invoices is the factoring fee which is usually about a small percentage of the sum detailed in the invoice. 

Funding Your Company’s Growth

It is the dream of every business owner to grow their company. No one wants to be in the same spot ten years after starting their company.

To grow your company so you can take more client orders, you’re going to require some capital. For example, if you have a transportation business with ten trucks, you can use invoice factoring to service your trucks or even buy more trucks for your company.

Invoice Factoring Is Affordable

While there are several options for financing your business, invoice factoring might be the most affordable option for you. When you sell your invoices to a factoring company, the only payment you make is the negotiated factoring fee. The factoring company usually deducts the factoring fee from the advance rate, usually between 0.5% to 5%.

Once you receive the money from the factoring fee, you won’t pay any more in factoring fees. The factoring fees are also negotiable and you can ask the company to deduct the fees you can afford to pay. There are a lot of factoring companies in the market today so you should do thorough research on factoring companies and compare their advance rates and factoring fees.

You should also exercise caution while reading the factoring contract to note any potential hidden costs.

It is Easy Getting a Factor

Selling client invoices to a factoring company is a straightforward and easy process. Factoring companies do not have complex requirements for you to fulfill before they can buy your invoices. All you need to sell your invoices are valid customer invoices but the factoring company can add other requirements depending on the invoice you’re trying to sell.

Your credit score and that of your company will not matter much. If you have bad credit or no credit at all, this will not influence the factor’s decision when buying your invoices.

Factoring companies will only check the credit score of your customers and share the information with you which is another advantage. Apart from paying you, factoring companies also save you from spending time and money researching your clients’ credit scores.

Spend the Money as You Please

One problem with financing your business with loans is the restrictions on how you spend the money. For example, if you took a loan to buy five trucks for your transportation business, that money should only be used for that purpose. You will incur penalties and fines if you use funds from the loan in expenses not specified in your loan application.

The cash advance you receive from the factoring company is yours to use in a way you deem fit. If you want to rent space for your office, pay your workers, buy more equipment, you are free to do so. The factoring company will not ask you how you are spending your money.

However, invoice factoring requires financial discipline; use the money on expenses that will only grow your business.

Pounce on Opportunities

You have to take all the opportunities you get to ensure your business grows. Invoice factoring is not only for covering small short-term expenses. It can help you finance big business opportunities that will increase the value of your company.

Invoice factoring is the best financing option for those last-minute expenses that might be huge for the company. For example, imagine a scenario where you land a potential client with an order worth six months of your income.

The client might not have time to wait for you to restructure your finances. You will have to come up with the money within a very short time. Invoice factoring will allow you to take up such an order and still maintain cash flow in the business for other expenses.

Reduce Risk of Bad Debts and Late Payments

In business, it is common to have customers that pay late or decline to pay. These late payments and bad debts if not handled properly, might lead to a slow-down or permanent closure of the business. There is the option of following up your money through legal action, but that will increase costs through lawyer fees and could take even longer to get your money.

Invoice factoring can be a method of reducing bad debts and late payments. A factoring company will check your customers’ credit and often take insurance to mitigate the loss of non-payment. They also know how to deal with non-paying customers, reducing the costs you would have incurred to recover your money. Invoice factoring allows you to get paid early and lets you focus on other customers.

No Collateral Required

When you apply for a business loan, the bank usually asks you to put up property as security. The bank will request you give them documents proving ownership of equipment, land, building, or something tangible with a value that the company owns. If you do not have any property to put up as security, the bank might decline to give you a loan.

Invoice factoring does not require collateral. All you have to present to the factoring company is valid customer invoices. Once the factoring company approves the invoices, they will send you the advance rate without requiring any form of security; something that you’d have to present to a bank if you were applying for a loan.

There Is No Limit

Invoice factoring does not have any limit on the amount of money you can obtain from the factor. The limit of the cash you shall receive is determined by the amount in the invoices you want to sell. The bigger the amount on your invoices, the bigger the advance rate you receive from the factor.

There Are Two Approaches to Factoring

There are two different types of factoring, recourse and non-recourse factoring. Recourse factoring dictates that you shall pay the factoring company if your customer fails to pay them.

In non-recourse factoring, you do not have to pay the factoring company if your customer fails to pay them. Having these options available will help you choose the one you think will benefit your company and help it prosper.

Invoice Factoring for Business Growth

Invoice factoring is essential to businesses that require a constant cash flow. Invoice factoring will help you grow your business by providing the much-needed capital.

If you decide to choose invoice factoring as a means of financing your business, do some proper research on factoring companies. Not all factoring companies will offer you all these benefits; compare their offers, terms, and conditions and search for reviews from companies that have done business with them. 

Collecting payments can be challenging; if you have someone else collecting the payments, you can focus on refining your product or service so you can take your company to new heights.

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Uncategorized https://www.nocomo.org/blog/the-power-of-invoice-factoring-to-help-your-company-grow/ https://www.nocomo.org/blog/the-power-of-invoice-factoring-to-help-your-company-grow/ Editor Mon, 18 Jan 2021 07:58:31 -0500
Tipping Goes Virtual as COVID19 Impacts US Restaurants Digital transactions and credit card payments have been around for quite some time now. From ordering our favorite dishes to tipping, everything has become online. However, the trend gained momentum during the current COVID-19 crisis when contactless payment and minimizing cash transitions have become crucial for preventing virus transmission.

The year 2020 has seen a rise in the number of online orders and payments as customers are unable to step out of their homes for fear of contracting the virus. Moreover, many restaurants have also restricted their services to home deliveries and takeaways only, making more people order food online.

The issue that arose due to this new normal is the cash-based tipping system. Due to online delivery procedures, many eateries suffer from very little to no tipping, which hampered their cash flows. The pandemic has forced food outlets to switch to the digital medium of tipping, which is beneficial for customers as well.

Many restaurants have already adopted digital tipping procedures before the outbreak of coronavirus. However, if you still haven’t, it’s time to stabilize your cash flow through a digital tipping solution, about which we will guide you through in this article.

How Does a Digital Tipping Solution Work?

As the name suggests, in a digital tipping solution, customers pay their servers, bartenders, and other floor staff through electronic payment modes. Currently, there are two primary methods of tip payouts, including -

  • Instant Tip Payment Platform: This platform allows restaurant owners or managers to send tips to the bank accounts of their employees in real-time. Since no third-party is involved and the funds are transferred directly to the receiver’s bank account, it is faster than any e-Wallet payments like PayPal or Venmo, thus reducing waiting time.
  • Pay Cards: Pay cards are very similar to debit cards, through which the managers load the tips digitally onto the cards of the employees at the end of their shift. Pay cards, however, are not accepted by all ATMs or vendors and usually come with fees.

Also, it can take up to a few days for the funds to get transferred to the receiver’s bank account. This is why the Instant tip payment platform mentioned above is more preferable at many eateries.

Benefits of Making Digital Tip Payouts

Sending tip payouts is beneficial for all the parties involved - be it your business, your customers, your employees, or your managers. The major benefits of digital tip payments are -

●     Solve Negative Cash Flow Issues

Negative cash flow is a situation in which a business ends up spending more money than it has earned in a particular period. It is when a business is left with no cash after expenses. In 2020, this has become a rising issue for most companies, especially eateries. With digital tip payouts, all your worries about having enough cash at hand are taken care of, that too, at the end of each shift.

●     Keep Ahead of the Competition

Workers in the hospitality field often faced a highly competitive labor market, which made businesses even harder to retain talented employees. And new companies coming to the forefront with their advanced and more digitized technologies gave a harder challenge for them.

This is why having a digital tipping solution could be a great selling point for your business. Workers can rely on their employers now more than ever, and you can even use this as a tool for hiring new employees.

●     Avoid Payroll Tips

Some food outlets have decided to switch from cash tips to payroll tips for having a low-cash environment. However, this is not very advantageous for the employees, as they can’t wait for weeks to receive their earnings, especially those whose total shift hours have been reduced.

The new digital tipping solutions can even handle this efficiently since all the employees receive the same level of accuracy and transparency. All your employees will have real-time access to the tips they deserve before walking out the door, thus building trust and positivity.

●     Save Time and Money

You can save your valuable time and money by opting for a digital tipping platform as it gets the calculating and distributing tasks easier for you. Managers can save up to a few hours spent in counting, recounting, and distributing every week, and the admin is left with very little manual work. It not only streamlines your tasks but also reduces labor costs.

Further, cash tips often come with hidden costs, such as rounding off the amount to the nearest figure when the managers don’t have the exact change. If this happens every day or at the end of every shift, the extra amount starts adding up, which results in a loss of cash in the long run. With digital tipping, this issue is solved as the employees receive the exact amount they owe.

●     Focus on the Safety of Your Employees

During this pandemic situation, your employees’ safety and health should be your utmost concern. Reduce the chances of cash transactions as far as possible by incorporating a digital tipping solution into your workflows. This will minimize any possibility of viral transmission.

Moreover, it will also enhance the financial security of your employees, as they can receive tips in real-time and won’t have to wait for days. It will help them meet all their immediate day-to-day essentials without having to compromise. This system of instant payouts is a significant factor your employees are relying on you.

Additionally, an instant tip payment solution reduces the cases of theft, since your employees will no longer need to travel home with pockets full of cash, especially those who work till late nights. With the digital tip payout platform, your employees’ money will be safe in their bank accounts.

●     Reduce Human Errors

While distributing cash tips, there are high chances of miscalculations while counting and recounting. Besides, cases like skimming or theft before distribution are also common in cash payouts, leading to tip disputes. With the digital tipping systems, this issue is solved since the calculations and even sometimes, the distributions are automated.

Conclusion

In a nutshell, while making the switch to the right restaurant merchant services provider, ensure to check all the terms and conditions with your digital tipping service provider. Before investing in any, you can also request a customized demo for your chosen platform to understand how the system works. An efficient digital tipping solution will have huge benefits for your business, your employees, and your customers in the long run.

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Uncategorized https://www.nocomo.org/blog/tipping-goes-virtual-as-covid19-impacts-us-restaurants/ https://www.nocomo.org/blog/tipping-goes-virtual-as-covid19-impacts-us-restaurants/ Editor Thu, 19 Nov 2020 08:07:17 -0500
For Traders, Learning Comes First As any experienced trader knows, preparation is the key to success. For newcomers to the world of securities trading, that means getting enough preparatory education so you can start off right. Taking the time to read, do research, study the mechanics of the ordering system, and acquire other core skills will serve you well for years to come. Of course, the educational process never really ends because as the economy changes and markets go through their life cycles, you'll have to stay on top of new developments. So, what are the main advantages of doing this self-education before diving in and putting your hard-earned cash on the line? Here's a summary of the most valuable benefits that will come your way if you put in the time and effort to learn the business of trading.

You're Not Gambling

If you want to gamble, go to Las Vegas, or to your local casino or lottery ticket seller. Investing and trading is not gambling. You'll read this in any authoritative resource or, better yet, learn it from a mentor. Gambling is guessing. Yes, sometimes it's fun and you can have winning streaks by picking the right teams, numbers, or other outcomes. But when you buy and sell stocks, bonds, foreign currency, precious metals, or other investment-grade assets, you go into the transaction armed with analysis and a store of knowledge. Fortunately, the markets lend themselves to analysis. Not only can you study the fundamentals of a company, you can delve into the intricate history of its share price. Whether you end up becoming a technical or fundamental enthusiast, the setup to every quality trade consists of analysis.

It's Not a Get Rich Quick Scheme

Even if you simply scan a few elementary stock market texts, you'll see one lesson that is mentioned time and again: buying and selling stocks and other securities is not the fast road to wealth. It's a slow, challenging road that has pitfalls and blind turns just like any other way of making a living. In fact, the majority of people who trade, does so strictly on a part-time basis for a few years while holding down a regular job.

It's essential to set realistic goals about profits. For instance, look at earning a modest, single-digit profit from your investing activity, but only after you've spent at least six months getting accustomed to the environment. It takes a while to develop forex trading strategies, stock picking techniques, and other key skills. The good news is that you don't have to hold a PhD or be a genius to become a profitable investor. The sooner you realize that you're involved in a skill-based way to earn realistic profits, the better off you'll be.

Emotion is Not Your Friend

In everyday life, emotion is a good thing. It helps us connect with others, understand how people feel, and see the big picture in relationships. But your self-education will make one thing very clear in that emotion has no place in the world of investing. Placing your money on the line is an act of calculated risk, but risk informed by research and analysis.

If you let your emotions guide your investing decisions, you'll be on the fast road to financial loss. The most effective way to avoid this very common pitfall is to use a rules-based system for choosing securities and for deciding how large of an order to place. Rules help keep our emotions in check. You might love XYZ Corp. because you use their products or once worked there. But if you choose to include their stock in your portfolio, be sure to run it through the same criteria that you use for other candidates. Likewise, don't let strong negative feelings deter you from taking advantage of a potential price rise of a certain stock, currency, metal, or other asset.

Practice is a Good Thing

If you wanted to earn a belt in Judo, you'd hire a teacher or attend a class for several years. No one in their right mind expects to sign up for a martial arts class and be an expert on day one. The same is true for placing orders through an online broker. You'll quickly see that spending time on the simulator is a great way to learn. With paper trading you're using worthless paper rather than real money, is an excellent way to get the hang of order placement, money management, record keeping, and other vital skills. Some newcomers don't put one dollar of their own cash on the table until they're used the simulator for a full month.

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Uncategorized https://www.nocomo.org/blog/for-traders-learning-comes-first/ https://www.nocomo.org/blog/for-traders-learning-comes-first/ Editor Sun, 15 Nov 2020 22:12:01 -0500
Department of Labor and Employment: 13th month pay in 2020 According to the Asian Development Bank (ADB), the Philippines ' economy could lose about $669 million and $1.94 billion. This translates to 87,000 to 252,000 jobs lost across the five sectors. Within this figure, there are businesses that have closed their doors and even failed to pay their employees' salaries. 

Most employees were sent home with any wages to sustain them during the pandemic. This has rendered the families poor and even unable to cater to their basic needs. Even though the government approved the tranche program in which each family was to receive funds, it was not enough.

 This is why the government issued instructions for businesses to pay their employees' outstanding salaries. Through the Department Of Labor and Employment (DOLE), the authorities stated there would be no deferment exemption postponement of 13th-month pay. 

Below, we will break down the statement issued by the department to understand it better. Plus, we'll also see how the agency plans to enforce the new rule.

13th Month Pay will be paid on time

On Thursday, October 15th, the Department of Labor and Employment stated that all employers must pay their employees their 13th-month pay. This should be done not later than 

December 24th, 2020. The labor Secretary Silvestre Bello III further said during a briefing that they wouldn't postpone, defer, or even give an exemption to the pay payment.  

He continued to say the law stipulates that the workers are to be paid their 13th-month wages before December 24th. He even stated that this is what the Department of Labor will enforce. Moreover, according to the Presidential Decree (PD) 851, the pay is not supposed to be deferred based on their interpretation. Hence, no exemption would be done to employers. However, Bello's statements faced a lot of criticism from the labor and other groups. He said the department would survey to see which firms shall be exempted from giving the 13th-month pay. He was talking from both sides of the mouth, which caused a problem with the labor groups.

Nonetheless, he came out to clear the air and state implementing rules and regulations of Presidential Decree (PD) 851 involved the exemption of distressed firms. He further said his department would put a request to Finance Secretary Carlos Dominguez III to help the employers in distress. He said, "We requested Secretary Dominguez if they could give a subsidy to employers that are categorized as micro and small business enterprises. If they could be given a subsidy or opportunity to make loans with our entire bank." 

According to Bello, despite the request made, no firm has approached the department and said they wouldn't be able to pay their employees. However, the Employers' Confederation of the Philippines came forth during a meeting with the employees. Workers stated some micros; small and medium enterprises wouldn't make the 13th month pay.

For this reason, the Department of Labor and Employment (DOLE) stated that they would release a complete department order on the issue on Friday, October 16th, 2020.

On the other hand, Senator Franklin Drilon stated he was going to consider the statements made by the DOLE, though when it comes to the Presidential Decree PD 851, there won't be an exemption granted on the annual 13th-month pay. He even quoted the "Memorandum Order No.28," which President Corazon Aquino issued in 1986. The memorandum states that no distressed employer shall be exempted from making the 13th pay to its employees.

Senator Franklin continued to say such an exemption was found in the implementation of rules issued in 1975. He further stated no clause in the law provides for exemption, and President Cory's issuance superseded it. Senator Franklin even stated he was the Labor Secretary then who was in charge of crafting the revised rules and regulations on the 13th-month pay grant. For this reason, he made sure all the rank and files employees would receive an annual month pay.   

Defend Jobs Philippines, an association of labor unions and urban poor groups, welcomed DOLE's move. They even added that the government should allocate funds for MSMEs. This, in turn, enables them to give their workers the 13th-month pay on time. They even stated the Department Order that will be released on October 16th must oblige all employers and not exempt anyone.

 Business Group Employers confederation of the Philippines also echoed the same sentiments. ECOP President Sergio Ortiz-Luis even told CNN the Philippines stated that half of the MSMEs had been forced to close due to the pandemic. 

 Some firms are still struggling with paying their salaries to employees and rentals. Others have been forced to close down because of financial struggles. He continued to say, "We never asked for exemption or deferment. We're just concerned about the small industries because the worst scenario is they'll just close down and declare bankruptcy." 

DOLE move to enforce 13th-month pay law

On Thursday, the labor groups marked a victorious win for workers. This is because the labor department decided to implement the 13th-month pay.

 Elmer Labog, the chairperson of the Kilusang Mayo Uno (KMU), in a press release, said, "This is our triumph for being one in letting our voices be heard. Despite the attempt to ignore our rights, we fought for our 13th month pay. Long live the workers."

He even applauded the move by the DOLE to give subsidies to MSMEs. This helps to cushion them during the pandemic. He further stated the government must assist distressed firms. 

Moreover, Labog also urged Congress to pass a pro-people budget. The budget is supposed to assure workers of economic rights and steady income. Simultaneously, the Associated Labor Unions (ALU) joined the chairperson in applauding the DOLE move. 

Gerard Seno, the executive vice-president of ALU, said the workers are happy and thankful for Bello, who broke the 13th-month pay deadlock that was seen. The union welcomes the decision made to disallow the deferment of payment and exempt employees' pay this year. This decision would boost employees' morale in the private sectors as well, who are having a hard time amid the pandemic. 

Raymond Mendoza, the President of Trade Union Congress of the Philippines (TUCP), also applauded Roman Lopeza, the trade secret. For supporting the decision made by the DOLE. Moreover, their move to help troubled businesses pay the mandatory benefits was a plus since the loan facilities were accessible.

Additionally, the presidential decree 851 states that employers have to pay their employees the mandatory benefits. And this should be done or before December 24th this year. DOLE even stated it would release an advisory on the 13th-month pay granting on Friday the 16th.

RoboCash will help if there is no 13th-month payment

We understand the 13th-month pay might take a while to be enacted while others might be left out. For this reason, if you do not fall under the government and you need money urgently for emergency expenses, you can borrow from Robocash.ph

The platform offers fast online loan ph that attract an interest rate at 11.9% depending on the loan requested. The loan tenure is flexible enough and starts from 7 to 30  days. 

However, when requesting a loan from Robocash, ensure you repay it on time. Hence, only request for a loan if it's an emergency. 

Conclusion 

Through the Department of Labor and Employment, the Philippine government has made a bold move to ensure employees are paid. The 13th-month pay will ensure those laid off during the start or amid the pandemic have gotten their salaries. The employers are expected to make the payments before December 24th. 

However, some employees might miss out on the program because their firms have been shut down for good. Some are even struggling to pay rents to leave alone the employees. This is why you need RoboCash by your side. The firm offers you personal loans that have a low-interest rate. However, borrow what you can repay.  

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Uncategorized https://www.nocomo.org/blog/department-of-labor-and-employment-13th-month-pay-in-2020/ https://www.nocomo.org/blog/department-of-labor-and-employment-13th-month-pay-in-2020/ Editor Thu, 12 Nov 2020 07:43:07 -0500
5 Reasons Why You Should Invest In Bitcoin Digital currencies have recently taken the world by a huge storm. It is a sudden change that is only focusing on the advantages of decentralization. Once you have understood how the technology behind the digital currency is working, you can then invest and lead people in believing that the future in finance is in bitcoins.

Bitcoin is rated as an asset that leaves no one indifferent. This means that any person has an opinion on bitcoin be it a politician or the public. The politicians view bitcoin as a danger since it challenges the system that gives people the power to create money at full capacity. However, make sure you consider these things before investing in bitcoin.

1. You can use it to buy goods and services.

Recently, the bitcoin’s price has risen from less than $ 2000 from the past six months to $ 16,000 today. However, a lot of people have made more than a billion from their involvement in bitcoins. Their success story comprises people who have invested money from four-figure to five-figure sums.

These people are using such opportunities to venture into other businesses and get themselves a side hustle that will set them for life.

2. Avoid missing the next big thing.

As at december last year, bitcoin is around $7,500. At the beginning of the year 2019, it had started at $3,200 after a long bear cycle. During 2017, this is when it was at its peak when its price was at $20,000. The current bitcoin’s price remains attractive whereas the next halving was done in may 2020.

Halving simply is decreasing the reward that is given to the minors of bitcoin. Since the halving occured in may 2020, the price of bitcoin was reduced by half from 12.5 to 6.25 BTC. The miners' costs were doubled whereas the creation of new bitcoins reduced. In contrast, the price of bitcoin will increase by the end of year 2020.

3. Take advantage of the high volatility of the bitcoin market.

The idea of investing in bitcoin might not be much to you. However, being at the heart of the next major thing which is likely to give an option to the current monetary system will definitely tempt you to be involved. Such a case will get you interested since it can bring you a profit opportunity that can change your life.

In 2019, bitcoin was the highest performing asset. This is likely to continue in 2020 since the market is a little bit young and very volatile. An opportunity to make a lot of profit from it is present provided you employ a strategy that a lot of HOLDERS do.

4. Diversify your investments

Since the market is young and very volatile, investing in it will only help you benefit from it. Such volatility will increase your profit opportunities. Once you have already invested in life insurance, startups or even rental properties, it is essential for you to start investing in bitcoins. Cryptocurrency industry could have a bright future and that is why you need to give it a chance and invest in it.

Diversifying your investments with bitcoins is a less risky investment that any investor will want to have a look at.

5. Free yourself from the power of the countries.

Countries and their bankers have the privilege of creating monetary policies. Following the previous financial and economic crisis, it is evident that a lot of countries are still using the privilege. As a result, the world is about to face an economic crisis in 2020. This will lead to countries lacking a monetary tool at their disposal.

Such crises have made a lot of people lose their trust in the current monetary system which have also led to people not trusting bitcoins investments. However, bitcoins provide a new monetary system that will give back power to its people and hence bring back full confidence in a better system.

Conclusion.

No one really knows what the future in bitcoins really holds. However, if a single individual assures you otherwise, then they are lying to you. On the other hand, you can be certain of some things such as missing the bitcoin revolution is similar to missing the facebook and google revolution. Secondly,  if bitcoin reaches its full potential and becomes a potential alternative  people who invested in it will see their standard of living increase.

Lastly, make sure you buy bitcoins with an amount of money that you are willing to lose.

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Uncategorized https://www.nocomo.org/blog/5-reasons-why-you-should-invest-in-bitcoin/ https://www.nocomo.org/blog/5-reasons-why-you-should-invest-in-bitcoin/ Editor Thu, 22 Oct 2020 04:30:17 -0400
How Are Hard Money Loans Different From Traditional Loans? Traditional loans don't always meet the needs of either the lender or the borrower, and this is where hard money loans come handy. Also known as private money loans, hard money loans get estimated by the collateral of the estate in question. With these loans, the credit profile of the borrower is not a deciding factor which can be very helpful for people with bad credit who require a loan. 

On the other hand, hard money loans come with conveniences for lenders and investors, too. They are issued by an investor whose loans are secured by real estate. Even though the rates of hard money loans are usually higher than those of traditional loans, the advantages are still numerous. 

Hard Money Loans Vs Traditional Loans 

Even developers and investors with full access to bank credit often favor hard money loans for many reasons, so let's quickly compare the two types of loans to see their pros and cons. 

Hard Money Loans 

Also known as a private loan or an asset-based loan, a hard money loan is based on the value of the real estate in question. The HARD in hard money loans comes from the hard asset it relies on for approval. 

The decision to either give a loan or not is entirely made based on the equity of the property. In a majority of cases, hard money loans come from private investors. They are mostly for business purposes, meaning the lender makes the loan on an investment property such as commercial buildings or houses and apartments that are up for rent. 

Hard money loans are specifically designed for investors who purchase distressed real estate at a significant discount. The main goal of these loans is to enable an investor to acquire a piece of real estate or any hard property. If the investor wants to hold the property, they can get a refinance from the bank at significantly lower interest rates after the borrower completes the rehab.  If the investor wants to keep the property, the main goal is to buy it at a discount, upgrade it and finish necessary fixtures, then sell it quickly. 

Hard money loans require less documentation, and it takes little time to close them – about a week. Fewer regulations for getting the loan allow borrowers with bad credit score to get the funds they need. 

Traditional Loans 

Often called Conventional or Conforming loans, traditional loans conform to guidelines by Fannie Mae and Freddie Mac. Freddie and Fannie will go on and buy real estate notes from a lender, and the lender then has to adhere to their guidelines if they want to sell the note to them. Banks have adopted the same standard, even in cases where they don't want or need to sell the note. Because of the guideline conformation, the procedure also protects all institutions who may buy the note along the way. This principle allows the institutions to sell and transfer mortgages and trade mortgage notes with investment houses or other banks. Although traditional loans are the lowest cost option for borrowers, the regulations require a lot of documentation, a perfect credit score, and around two months to get approved.  

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Uncategorized https://www.nocomo.org/blog/how-are-hard-money-loans-different-from-traditional-loans/ https://www.nocomo.org/blog/how-are-hard-money-loans-different-from-traditional-loans/ Editor Thu, 22 Oct 2020 00:06:42 -0400
Motor Trade Insurance 101: What It Is For and Who Can Avail It Do you know if you need motor trade insurance? Do you even know what a motor trade insurance is?

Responsible drivers and vehicle owners should be aware of different insurance packages available for them. To clarify everything that there is to know about motor trade insurance, we’ve prepared this pocket comprehensive guide to help readers understand what it is, its purpose, and its importance. Upon reading, you will become a more aware and responsible driver and citizen. You will also be easily able to answer if a person needs a motor trade insurance or not.

What is a Motor Trade Insurance Policy?

Motor trade insurance is different from private car insurance. It is a special kind of insurance that is dedicated and meticulously prepared for individuals who work in the car industry. People like mechanics, traders, car jockeys, valeters, and vehicle recovery agents should be covered by one as they work in the car industry.

Do You Need One?

If you are solely a private driver who uses a car for private or business use, you don’t need motor trade insurance. A regular car insurance policy will be sufficient for you.

But, if you sell cars or are in the car trade industry or you work with cars of customers in your place of work or business, then you definitely need motor trade insurance.

What is the purpose of a Motor Trade Insurance? Why will you need it?

Motor trade insurance is needed to protect individuals in the motor trade industry. Individuals that buy, sell, clean, or handle cars owned by customers need protection for themselves and for their customers in case unwanted issues take place.

Any individual can be covered by motor trade insurance as long as such person is working with vehicles in any way, form, or capacity. Car jockeys, mechanics, valeters, vehicle recovery agents, employees at body shops, mechanics, sellers, and even tyre fitters can and should be duly covered and protected by a motor trade insurance policy.

Available Levels of Cover

There are two levels of cover in motor trade insurance policies, road risk only, and combined cover.

Road Risk Only

Road Risk Only policies are for people with a home-based business or a small business. Individuals that fix cars or sell cars like mechanics or car sales agents with mobile shops or ones that operate on their own drive are also duly covered.

Combined Cover

A combined cover policy involves the protection of equipment, tools, machineries, money, buildings, and shop contents.

Additional Cover

With a motor trade insurance, individuals can also be protected from liability by opting for additional covers like Employer’s Liability, Public Liability, and Product Liability.

Kinds of Cover

Similar to standard car insurance policies, motor trade insurance offers different levels of protection to different parties.

Third-Party Only (TPO)

This is basic coverage that is similar to ones offered to private car owners. This covers third-party individuals should a motor trader be at fault in case of accidents. A Road Risk Third Party Only Policy is the minimum policy that motor traders are required to obtain by law.

Third-Party, Fire, and Theft (TPFT)

In this kind of policy, protection is offered should a vehicle be stolen or fire damage is incurred as a result of an accident. This policy becomes invalid if the policy owner is at fault for the theft.

Comprehensive

This policy covers motor traders whether they are at fault or not. This policy covers fire damage, theft, and accidents.

Factors to Consider When Availing a Cover

When opting for motor trade insurance, please consider the following tips:

1. Research the law.

Know the minimum required insurance policies required by law for your kind of business. Take note that the more cover you opt for, the more fees and premiums you will incur.

2. Honesty is the best policy.

Be extra careful when providing information to your insurance provider. You are required to be fully transparent and 100% honest at all times. Any act of deception, hiding, or falsification of any data or information will result in the invalidation of your policy. What is the point of opting to be covered and protected from unwanted accidents and circumstances when your policy can be easily canceled anyway? Avoid any slight chance for your insurance policy to be canceled or rendered invalid. It is very simple because you just have to be honest at all times.

3. Additional Products

Don’t be quick in rejecting additional covers. Always take your time to study offered additional policies as good ones can truly save you and keep your business afloat in case unforeseen events, accidents, and circumstances take place.

4. Know the required liability insurance by law.

Be clear with what kind of liability you want to be protected from. There are three kinds: Employers’ Liability, Product Liability, and Public Liability. If you have enough financial means, it is better to opt for all of the above as it will offer protection across all endpoints.

5. Study different policies.

Before opting for a policy, it will be best if you’d first fully know the nature, extent, and special needs of your business. Never be tricked by agents that offer affordable policies. They may end up damaging you in the end as they may not sufficiently cover the needs of your business. Study your business and look for a policy that will provide you and your employee the most protection.

6. Ask experts.

It’s always best to ask experts when looking for the best motor trade policy. Feel free to consult specialists that can dedicate their full time, effort, and expertise in looking for the best motor trade insurance policies for your business.

7. Update your database record.

Motor traders need to be extra meticulous and careful in updating the Motor Insurance Database (MID). Take note of the 14-day rule: if a customer’s car will be in your possession for more than 14 days, or you temporarily keep courtesy vehicle or cars, the MID must be duly updated.

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Uncategorized https://www.nocomo.org/blog/motor-trade-insurance-101-what-it-is-for-and-who-can-avail-it/ https://www.nocomo.org/blog/motor-trade-insurance-101-what-it-is-for-and-who-can-avail-it/ Editor Sun, 18 Oct 2020 23:49:05 -0400
A quick guide to knowing about business Loan Some businesses need no or fewer business loan from the start. But in contrast, these exist some other which will be requiring huge capital. The revenue for both of the cases might vary and the increased rate will from the taxes. There are business factors whose growth depends on the type of lenders and the owners will be searching the online resources if the physical one is not allowed. There are hundreds of capital serving companies. The first step is to ask for the first term conditions. There are business loans which play the biggest role. The best may not run for the companies and there are low networks that provide the scrutiny. Many loans cover the basics of law taxation.  This article guides you about what can happen when you embark on a journey of getting business loans.

Understanding how commercial banks work

The reason why the business players don’t understand the working of the solution was on the loan markets. The passing of scrutiny remarks will be beneficial for the accessibility players. The role of the scrutiny would make less impact on your decision if the reasons don’t have the rejection letter in control. If the business is small, then getting lenders to pass the bills is not justified in any case. The biggest roles will call for the personalized possession of assets and this may vary from service to service. There are little chances for the loans and hence the financing sector will have time that given enough flexibility.

Getting it for small businesses

There are thousands of economies that comes under the world of small business. The increased rate will have the shortcoming of the business. The techy related economies know no bound to have their business settled in any way.

Loans on company size

The creation of jobs needs the categorical signature and that will need the job creation facility to continue. The current size of the employment will reflect how much is the loan liable.

The creation of jobs and revenues is prone to business categories and there will be little or no compensation for the same purpose.

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Focusing on equipment financing

There should be little or no deals that lead to the covering of powerful servers. Usually, there is no payment offers on the basis of your own pocket. There are also offices which make the payments easier hence they have less life of the equipment. There will be little or less to cover on this issue. There are many bad finance companies that can pose a threat to the business image of your brand.

Researching your market will help

This rule applies and goes around for approximately many years to come. The market trend will never be misleading in any way and the cash flow will not be limited to the finances. The successful companies will be taking precautionary measures. The customers spending the market will be in need of the insurance and market fluctuation will be employed free.

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Uncategorized https://www.nocomo.org/blog/a-quick-guide-to-knowing-about-business-loan/ https://www.nocomo.org/blog/a-quick-guide-to-knowing-about-business-loan/ Editor Wed, 09 Sep 2020 11:05:03 -0400
How Long Do Late Payments Stay on Your Credit Report Many people often ignore paying their bills on time, especially when the amount due does not seem like a big deal. But unknown to them, that behavior can cause an impact on your creditworthiness as a whole.

What is Considered a Late Payment?

A late payment is a payment on your credit bill that is paid on the day after it was due. Some lenders allow a grace period, typically 15 to 30 days, where you can make up for payments without charging you late fees. When your bills remain unpaid, the lender starts to report this information to the credit bureaus. In most cases, even if you have made payments within the grace period, but with an amount below your outstanding bill, it would also be considered a late payment.

How Long Do Late Payments Stay on a Credit Report?

When you make up paying your credit balances within the grace period, your lender will not report that late payment to the credit bureaus. However, once the late payment has been reported, that information stays on your credit report for seven years, and later falls off automatically.

Late payments are likewise categorized on your credit report by the number of days late – 30 days, 60 days, 90 days, 120 days, and 150 days. Charged offs also fall within this category. A charge off is when your creditor has finally considered your account as a loss or bad debt, and have written it off in their receivables. In this case, your account will be closed, although you still owe the debt.

How Do Late Payments Affect Your Credit?

Your credit account will remain active as you make up for your late payments and even when your late payments have already been reported to the credit bureau. But other negative consequences will start to affect your credit account as a result of that mishap.

Late Fees

Late fees are added to your account. For a credit card account, those fees could be within the range of $25 to $39.

Score Drop

Payment history is the top-most factor involved in the calculation of your credit score. With that said, late payments can cause your score to drop by 90 to 110 points. Typically, those with credit scores within the high range experience a higher score drop than those within the lower range.

High-Interest Rate

When you are delinquent in your account for more than 60 days, your lender may apply the penalty interest rate. This is considered to be the highest interest rate, going as high as 29.99%. Likewise, your lender will not revert to your regular interest rate until you have made on-time payments for at least 6 to 12 months.

Termination of Account

The added fees and higher interest rates will eventually make repayment of your account a struggle. When that happens, you are more likely to default on your account, causing that account to get charged-off or terminated.

How Can You Remove Late Payments on a Credit Report?

You cannot remove an accurately-reported late payment of an account by your lenders. That information will remain on your credit report as part of your credit history, even if you make up for your late payments, and the account remains active.

You can, however, dispute with the credit bureau a reported late payment when you have actually paid on time. According to Important Credit News, you are entitled to request your credit report from the credit bureaus for free every twelve months. You can make your request by phone, mail, or online. You may also file your dispute using the same methods. Provide all the necessary supporting documents that show when you have paid your lender.

Disputes take at least 10 to 14 business days upon receipt of your letter, depending on the nature of the dispute.

How Can You Avoid Late Payments?

Paying your credit accounts on time must always be your top priority. Here are some tips on how you can avoid late payments:

  • Stick to a Spending Budget. Don’t make unnecessary purchases beyond your budget that would tap into your repayment funds.
  • Sign-Up For Reminders and Alerts from Creditors. Your reminder for upcoming due dates may be in the form of emails, texts, or app notifications.
  • Sign-up for Automatic Payments. You may authorize your creditor to pull payments from your bank accounts when they come due.

Be informed to know about the grace period on your account as they vary from lender to lender. Take proactive steps and write to your lender if the chances of being late on your payments are high. They may be able to give you an additional grace period to make up for payments, especially if the situation happened only once.

You should avoid making late payments on any of your credit accounts at all costs. If you do, it will create a domino effect, making it harder to keep up with your payments as well as recover from the damage it will have on your credit.

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Uncategorized https://www.nocomo.org/blog/how-long-do-late-payments-stay-on-your-credit-report/ https://www.nocomo.org/blog/how-long-do-late-payments-stay-on-your-credit-report/ Editor Wed, 19 Aug 2020 11:03:41 -0400
No-Nonsense Advice About Debt First Time Borrowers Need To Know

Borrowing money is a safety net for anyone who experiences financial shortfall. It can become an instant resolution to unforeseen events and emergencies. However, there are still some borrowers who forget that every time they take out a loan, it requires them to be responsible when repaying it.

To break that cycle and practice, we have laid out the best advice every first-time borrower should know to protect them from being caught in a debt cycle and most importantly, damaging their credibility as borrowers.

All Types of Loan Are Available But...

All types of loan are available, but there's a catch. One of the most important things a first-time borrower should hear is that not everyone is eligible to be granted with a loan. This is where the credit score plays its role. If you haven't established a credit score yet, you should probably start now.

The problem with not having a credit score is that the credit bureaus don't have any reference to check to see if you are capable of paying out your loans. No credit is better than having bad credit, though, as rebuilding credit score is more complicated than starting one.

For all first-time borrowers, it is crucial to make sure you meet your repayment schedules to avoid having bad credit. Sometimes, mishaps are inevitable, making you miss a scheduled payment. To rebuild your credit score, the next time you file for a loan, make sure to ask your lender to get your credit report if you have bad credit.

The Difference Between Good Debt VS Bad Debt

This is also a prevalent mistake that every first-time borrower makes: differentiating between a good and bad debt. Borrowing money is for everyone as long as you can repay it. But sometimes, it is worth considering what your reason for borrowing is.

The best advice is to learn to define what, where, and why you need to take out a loan. By answering these questions, you can weigh your decision about whether or not borrowing money will be beneficial for you.

To help you with that endeavor, we classified both good and bad debt below.

Good Debt

Good debt is where you spend your money that will ultimately generate income or help you with your daily life. This includes business expansions, a house loan, or a student loan. All of these are considered good debts.

Student Loans

Student loans helped many aspiring students to finish their studies, even though perceived to be expensive.

In England alone, undergraduate studies for the academic year of 2020-2021 has an annual cost of £9,250. There is an increase of £11,100 in tuition fees for accelerated degree courses. For an individual from an average family, taking up a student loan can significantly aid them in getting through the burden of paying for their education.

Mortgage

A mortgage loan is the top-most good debt. Even though houses are considered property with depreciating value, having a roof above your head is more important and valuable. Getting a mortgage loan, as long as you are capable of repaying it in due time, is a good investment.

However, if you are residing in England and considering applying for a mortgage loan now amidst the ongoing pandemic, you might take time to reconsider that idea. Even though the housing market in England had reopened, buyers struggled to secure a mortgage loan even with a 10% deposit.

Business Expansion

Another good reason to use your borrowed money is to expand your business. It will help you generate more income, which you can use for the repayments. Especially now, if you are building a business in England, it is the best time to borrow money since the Bank of England is slashing its interest rate due to the economic shock brought by the coronavirus.

Bad Debt

Unnecessary expenses such as clothing and gadgets are considered as bad debt. Any purchase from a credit card that you can live without, already have but want an extra, or something you don't necessarily need is considered a bad debt. Hence, you must know what you want and what you need the most.

Debt Consolidation Is Possible

One last thing a first-time borrower should know is that when everything seems to be falling apart, and you are struggling to pay all your debt, debt consolidation is possible. This is the best alternative for you not to be caught in a debt cycle while still maintaining a good credit score. However, the best thing you can do is to catch up with all your payment schedule and make sure to clean up your new loan for it not to stack up once again.

Takeaway

Borrowing money nowadays is a bit easier for everyone who needs it. It is why many first-time borrowers indulge in taking out a loan even for unnecessary purchases and forgetting that they have the responsibility to repay it.  Anyone planning to take out a loan should seek financial advice from experts before making their decision. This will help stop getting into a debt cycle and getting caught in a difficult situation which can be avoided in the first place.

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Uncategorized https://www.nocomo.org/blog/no-nonsense-advice-about-debt-first-time-borrowers-need-to-know/ https://www.nocomo.org/blog/no-nonsense-advice-about-debt-first-time-borrowers-need-to-know/ Editor Fri, 14 Aug 2020 09:03:26 -0400
Is Debt Settlement the One for You? There are various reasons why people have debts, especially this time of the pandemic, wherein the unemployment rate is growing. However, there are times when the idea for accumulated debts is just terrible spending habits. If your income cannot keep up with your spending, then it becomes a problem.

One of the solutions to this kind of problem is debt settlement. In this setup, the creditor will allow you to pay less than the full amount you owe. It may seem like it’s the best deal, but there will always be a catch. Read on to know how debt settlement can help you resolve your loan problems.

What is Debt Settlement?

If you have many delayed payments, debt settlement can come into play. If you can pay in full, creditors will not allow you to pay less than you owe them. There are debt settlement companies that can help you make negotiations with creditors to lessen your obligation. However, debt settlement cannot be used for some types of debt. It includes car loans, wherein the vehicle can be reclaimed by a bank or a house that can be foreclosed.

Always remember that a settlement can only be reached if you cannot pay that you had to stop remitting payments at all. The settlement company will negotiate with the creditor on your behalf for a lower amount knowing that you have just enough to pay for a lump-sum.

All You Need to Know About Debt Settlement

Some companies claim that they can reduce a particular debt by 50%, although the procedure is not a walk in the park. Hence, it is wise that debt settlement should always be your last resort. Below are some of the risks that come along with the debt payment agreement.

  • It can destroy your credit.
  • It takes a long time to settle, typically years.
  • There’s no guarantee of success unless you have the best debt solutions Melbourne company to back you up.
  • It can also be costly. It includes settlement fees and possible taxes on forgiven debts.

Even the government cautions the public about settlements explaining that there are risks you have to face. There are hundreds of complaints against companies on the matter. Therefore, it will be wise to explore other options first. You don’t want to end up filing claims for fraud and excessive fees against a particular settlement company.

Do You Have a Choice?

You will always have a choice. There are options available you can choose before going into debt settlement, as follows:

  • If you can, file for bankruptcy and start all over again. If you have unsecured credit card debts, filing for bankruptcy can inevitably tarnish your credit history for a long time. However, in this situation, you will be able to rebuild your financial situation immediately. Further, bankruptcy consultations with an attorney are usually free, although there are legal and filing fees you need to pay.
  • If bankruptcy is not in your choices, then you can opt for a debt management plan through nonprofit credit counsellors. Although this process does not reduce the total amount you have to settle, it can significantly lessen the monthly instalments you have to pay. It is done by extending the period of repayment or lowering the interest rate of your obligation. Nevertheless, this method has less impact on a person’s credit than if you file for bankruptcy or opt for debt settlement.

Helpful Tips in Debt Settlement

If in the end, you have no other option but to undergo debt settlement, then go for it instead of letting your debts accumulate interests making the situation worse. As your best choice, you might want to take note of the following tips when you pursue a debt settlement to solve your financial burden.

  • Do a background check about the settlement organization before making a deal with them. Ensure that it has no history of complaints or unsettled negotiations and claims. You can check with your local bureau for the history of the various companies in your area.
  • If a company asks for money as advance payment, stay away from it. They should understand that you are already in a financial crisis; hence advance payments may not be feasible at the moment.
  • If a company promises that your debt will be settled, then it is a cause for alarm. Debt settlement is not always 100% successful.
  • Go for companies that offer structured fees that follow the percentage of the debt eliminated instead of basing it on the obligation balance. This way, you can ensure that the company will get incentives if they can lower your debt more.
  • Do not deal with a company that promises to help you challenge debts and have them declared “invalid.” This strategy may backfire to you and may result in worse problems in the future.

You might decide not to get a debt settlement company in the end. If this is the case, you can consider getting the services of a lawyer. Lawyers may bill you by the hour or have a flat fee per creditor. Some lawyers may also charge a percentage of debt or debt eliminated. So you better be aware of these things before settling for an attorney.

You also have the option of reaching out to your creditors and do the settlement yourself. However, it would be best if you educated yourself about settlement negotiations. Knowing that is likely to happen and be ready with a lump-sum amount you can offer. It is more likely that creditors will take the lump-sum money that gives them immediate cash rather than risking their company on instalment payments that they cannot guarantee will come their way.

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Uncategorized https://www.nocomo.org/blog/is-debt-settlement-the-one-for-you/ https://www.nocomo.org/blog/is-debt-settlement-the-one-for-you/ Editor Wed, 22 Jul 2020 22:25:30 -0400
How Hard Inquiries Affect Credit Score A hard inquiry is a check on your credit when you apply for some form of credit. They remain on your credit report for about two years. Despite the length of time the inquiry stays on your report, it negatively affects your credit score for about a year.

Stated by a Chicago credit repair expert, In some instances, the hard inquiry will not affect your credit score at all. The trouble arises when you apply for a lot of credit in a short amount of time. For example, if you are applying for a mortgage, your credit score might be affected if you have several banks and lenders looking at your credit. Applying for student loans or auto loans at several organizations could negatively affect your credit score, too.

How Much Does the Inquiry Affect Your FICO Score?

The answer to the question is based on your credit score before the hard inquiries begin. For example, if you have good credit and you are applying for a new car loan, it is unlikely that the inquiry will even knock a point or two off of your score. However, if your credit score is already low, hard inquiries might hurt.

People who are building their credit need to be aware of the number of hard inquiries they make. When credit scores are figured, new credit inquiries only account for 10% of FICO scores. So, if you have minimal credit, your score could be changed more significantly than those who have well-established credit.

A good way to keep your credit good is to wait at least three months between the inquiries. Because every point matters, you should pay attention to the number of hard inquiries you have. Your credit report can affect the interest rate you receive from your lender. Therefore, when you are applying for big-ticket items like a home or a new car, be sure that you haven’t applied for credit in the last three months to a year.

Avoid Multiple Hard Inquiries

A credit check might happen at unexpected times. While you have to give approval before someone checks your credit, it is checked in time when you aren’t getting a credit card or a new car. For example, when you rent an apartment, the leasing agency will look into your credit. If you open a bank account, the bank might check your credit. These types of credit checks can add up quickly.

Lenders are reluctant to lend to people with too many credit inquiries. The statistics show that people with numerous inquiries in a short amount of time are more likely to file for bankruptcy than those who don’t.

Stay Aware Of Your Credit Score and History

Fortunately, you can check your credit report at any time and dispute inquiries that appear to be done in error. It isn’t easy to fix credit, but it is possible over time. While you follow your credit score and history to watch for unexpected hard inquiries, you should also take care to pay attention to the other factors that go into your credit report. So make your payments on time, and keep your credit card balances below 30% of your total credit limit.

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Uncategorized https://www.nocomo.org/blog/how-hard-inquiries-affect-credit-score/ https://www.nocomo.org/blog/how-hard-inquiries-affect-credit-score/ Editor Tue, 23 Jun 2020 23:05:18 -0400