What to Work on Before Your Request Your Loan

by Mrs Money

Some people never think about borrowing money before they’re forced to do it. This might happen if you find yourself without an automobile. You’re sitting across the desk from a salesman who offers you a loan for an automobile you absolutely need to get to work. In the moment, your hands are tied, and you take the loan no matter what its terms are.

You might be forced into an emergency situation like this, but this is not the best way from a personal finance perspective to get the best deal on a loan. There is a lot of variety in the shortterm loans industry , and the quality of the loan you find will depend on your personal creditworthiness, as well as the extent to which you explored your regional industry, as well as the international lending options available in your area.

We’ll start with your personal finances. When a lender considers letting you borrow their money, they think about a number of things related to your personal finance history. Credit reporting agencies are companies which pay attention to how you use your credit cards, how you pay your bills, and generally whether or not you are responsible with borrowed money. If you are over reliant on credit, or if you are frequently tardy when repaying small loans like those related to your utility bills, you may have a low credit score.

This low credit score is a red flag for lenders. They see it and realize that if they lend you money, you might just neglect to pay some of it back. In this moment, they are faced with a decision. Do they lend you the money and charge you a ton of interest to make up for the money that might be lost if you default on the loan? Or do they just avoid the risk by denying you the loan altogether?

Neither outcome is good for you. If you are denied loans by most traditional lenders, you’ll find that most of the loans available to you will be at very high interest rates. These loans are not affordable to most people, unless they manage to pay them back incredibly quickly. That can be a sticky situation to find oneself in, so it’s better to focus on improving your credit before asking for a loan, if you can possibly wait.

You can accomplish this by paying off debt (anything over 30% of the credit limit of any one credit card, and any large debt balances from other sources that are too high in relation to your income), paying back unpaid bills, and correcting any negative items found on your credit report. Once you’ve polished your personal finances and your credit, your credit score will quickly rise. Once it’s above a certain point, you’ll find that there are many more lenders willing to let you borrow their money. These loans will also be more affordable than loans available to you when your credit was very poor. Keep up this habit in all of your future borrowing, and you’ll save a lot of money.


5 Steps to Lowering Your Insurance Rate

by Mrs Money

Car insurance is something that we all know is important, but hate paying for it month after month. If your budget is bulging at the seams, you may be wondering if there are any tricks to getting a better rate on your car insurance while still having enough protection. Here are 5 things you can to make sure you have the most competitive rate available.

  1.       Review Your Needs – The first things you will need to review when you are planning to look for a better rate on car insurance is your insurance needs. For instance, do you need comprehensive coverage that will pay for costly repairs and see to it that you get another car should yours be stolen or wrecked? This type if coverage is more expensive, so you may want to drop to liability and injury coverage only.
  2.       Drop the Expensive Coverage – One money-saving tip, especially if your car is paid off, is to avoid comprehensive and collision policies unless the yearly premium is 10% or below of the Blue Book value of your car. This will also help you avoid overpaying premiums toward benefits you will never be able to collect.
  3.       Don’t Stop Shopping Around – It may not be the most exciting thing to do, but shopping around for the best prices on Nashville auto insurance can save you a lot of money down the road. In fact, chances are good that you won’t even have to change insurance companies. When you mention to your current broker that there is a better deal available, he or she may just find a way to get your current rates to look more attractive for you.
  4.       Drive Carefully and Spend Carefully – Avoiding speeding tickets, moving violations or accidents by being a careful driver can help to lower the cost of your insurance. Keep an eye on the calendar and make sure that your past tickets or accidents “fall off” of your record when they should. This should cause your rate to drop. It is important to shop carefully as well in order to make sure that a bad credit rating does not cause an unexpected increase in your premiums. Insurance companies often price policies based on just how risky you appear to be, so watch your credit score carefully.
  5.       Don’t Be Afraid to Ask – You may have heard rumors about discounts that are available on insurance, such as lower prices for military members, for cars that have anti-lock brakes, or even for students who maintain a high GPA.  If your agent has not mentioned any of these discounts to you, don’t be afraid to ask about how you could qualify.

While you are in the process of selecting an insurance policy and looking for better rates, be sure that the provider is highly rated. Getting a lower rate on insurance does not pay if, in the end, you find that your inexpensive coverage is sorely lacking. Read customer reviews online to see if others in your area have been satisfied with the company and it’s policies.



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