Credit isn’t exactly easy to come by these days. And if you happen to have a good credit score, there’s a chance that sooner or later you’ll be approached by a friend or family member and asked to co-sign on a loan or credit card for them. By doing so, the person with poor or limited credit is able to leverage your positive score for a better interest rate. But is credit a win for you, the co-signer, as well?
The answer: Not necessarily. While you agreeing to be a co-signer is likely done with nothing but good intentions, the outcome could turn out to be far from favorable for you. We’re talking a decreased credit score, collection agencies coming after you and even potential lawsuits. Here’s a closer look at why you should think twice about co-signing on a loan: :
Lower credit limit: Like we said in the opening, credit is limited these days. So if you co-sign on a loan, you’re debt ratio might get too high. Not only is this unfavorable for your financial situation – after all, you’re responsible for the debt – but it can lower your overall score, resulting in credit repair to get your score back up to what it was.
Missed payment: Is the person you’re co-signing for reliable? We ask because if the person misses a payment, the collection agency can come after you for it. It’s not what a lot of people have in mind when they agree to co-sign, but unfortunately it becomes a common reality. You need to be vigilant and protect your credit score, anyway possible.
Lawsuits: As a co-signer, you’re just as responsible for the debt as the other signee. So if the other signee defaults on the loan payment, you could potentially be sued for the amount owed.
Bank of the Philippine Islands (BPI) is one of the most established banks in the Philippines. Recently, it was awarded by Finance Asia, a prestigious finance publication and magazine in Asia and the Pacific as the best cash management bank in the Philippines. Finance Asia also recognized BPI as the best trade finance bank in the country.
BPI has two subsidiary banks – BPI Family Savings Bank and BPI Direct. BPI Bank deals primarily on corporate accounts like salary account of employees. BPI Family Savings Bank is focused on individual savings accounts or for individual person who may not be an employee. While BPI Direct serves primarily on mobile, telephone and online banking.
In opening a BPI bank account, you can adhere to procedures given below and ready all requirements before going to the bank. It will be fast and easy to open a new bank account when you bring all the needed requirements so do not forget to bring it all.
1. Make sure you have all the requirements for opening a new bank account like two valid ID, billing statements, two 1×1 photo ID, and money for initial deposit.
2. Select the branch you want to open a new account. Choose the branch near your work or house so that it will be very easy and convenient for you to go whenever problem arises regarding your bank account.
Prime Services offered by a commercial bank include processing of payments by way of telegraphic transfer, issuing bank drafts and bank cheques, accepting money on term deposits, lending money through overdraft or through installment, providing letter of credit, safe keeping of documents, currency exchanges thereby enacting the role of a financial supermarket. The Commercial Bank lays more importance on loans that it provides to its customers. These loans are Secured Loans, Mortgage Loans & Unsecured Loans. A secured loan is one in which a borrower pledges some asset as collateral against the loan. A mortgage loan is granted to purchase property against security provided to the bank until the mortgage is paid of in full. The mortgage or loan can be repaid in easy installments. Unsecured loans are granted without any specific securities, under marketing packages like credit cards, debit cards, corporate bonds, etc. All in all a commercial bank raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits & loans it to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.
Commercial Banking in India categorizes itself into project finance & working capital. In the case of Project Finance banks in India offers long & short term loans to business houses to set up their projects. These kinds of loans are issued after approval from banks core credit validating committee. The Project Finance segment in the commercial department is highly competitive with different players in the department trying to get the best deals done by enticing different corporate houses and business organizations to opt for the loan by providing lucrative offers. Working Capital or Capital Funds are issued by banks to corporate or business houses to meet diverse needs and requirements of the business community. Working capital finance is specialized line of business and is largely dominated by the commercial banks.
Commercial Banking in India saw dramatic changes in the last decade after Indias integration with world economy. These economic reforms and the entry of private players saw nationalized banks revamp their service and product portfolio to incorporate new, innovative customer-centric schemes. Marketing and brand building programs were also given a new thrust in the new liberalized banking scenario. Promotional budgets were hiked to cater to the new and large discerning target audience. To meet the personalized needs of the customer and in order to differentiate its services, banks repositioned themselves in specialized fields, like housing loans, car finance, educational loans etc. to optimally service the customer. As of today Commercial Banking in India dominates other areas of banking such as retail banking and investing banking, solely due to influx and the term called installments that lures the customers to opt for loans to satisfy their business needs whether it is corporate or personal needs in terms of a mortgage loan. Commercial banking in India has definitely brought in a new dimension to regulation of finances in the Indian market.
If you are looking for a method of acquiring quick funds in order to meet some vital cash requirements without making any delay, your search ends now because here you are going to know about text payday loans. Through these loans you can get cash directly in your bank account without any hassle. This financial aid is basically for those who require a small amount of cash to solve urgent fiscal trouble or to meet some unforeseen financial requirement. These loans are like payday loans but there are some differences between payday loans and text loans. As the name implies, these loans can be secured with the help of a text message. It allows you to borrow cash up to 100 which is enough to deal with small needs. This loan sum is provided for a period of 7 days.
It does not matter that you have good credit score or bad credit because lenders of text payday loans let the borrowers have funds without checking the credit report of them. It signifies that you can make the most of this loan option even if you are suffering from bad credit status such as missed payment, late payment, IVA, CCJs, arrears, bankruptcy, insolvency payment overdue and the like. Though these loans can be acquired easily but there are some conditions that you have to meet for getting the loan. These requirements are as follows:
An applicant must be the citizen of the United Kingdom.
He must be minimum 18 years of the age.
He must have a regular source of income.
His monthly earning should be at least 1000.
He must hold an active checking bank account minimum 4-5 months old.
He must have a mobile phone and an e-mail address.
Once you meet these above mentioned prerequisites, you will be able to borrow funds. Here, you will not have to give any collateral for loan security. You can get the loan in fully hassle free manner. These loans are also free from superfluous and lengthy formalities of paper working. Thus, you can make the most of text payday loans with no trouble and delay.
In pressing economic periods like the one the entire world is facing now are making it harder and harder. It appears more and more people are finding it difficult to pay back the loans they take because of the increased rates of interest. Home loans are an example of loans that used to be fairly easy to procure and pay off, but things have changed drastically.
A mortgage loan is money that is advanced to someone for the purpose of buying a house. After the money has been paid out to the original owner of a house by the bank the bank then proceeds to get their money back from the new owner. So when the home loan is paid back to the bank it is always paid back with interest in the form of monthly payments.
Such payments can extend over several years depending on how capable the debtor is to pay back the loan. But naturally a debtor is asked to make a down payment on the house and this down payment is usually a percentage of a loan itself. Down payments are compulsory and they are somehow the security for a loan incase the debtor ends up failing to pay back the loan after a certain period of time.
Before a loan is advanced to you the bank will carry out a credit check. The credit bureau has records of everyone who has ever secured debts of any nature. It is this process that takes so much time since the bank must be 100% sure that they can trust you to pay it back. The results of credit checks can either be a good or a bad credit score.
A bad credit score will definitely prevent you from getting a mortgage loan. This score would have indicated that you have a bad credit history riddled with unpaid debts and disgruntled creditors. And it only makes sense that they should carry out these checks in case a certain creditor follows up on their money thus making it difficult for the debtor to reimburse back the loan on the mortgage.
Perhaps you would like to sell your current home and purchase a unique 1, or are seeking out your first home. In either case, you will want a home mortgage. The facts in this post can guide you via the countless details of obtaining a mortgage, & enable you get the finest rate available.
Attempt to have a down payment of at least 20 % of the sales cost. Furthermore to lowering your interest rate, you will also prevent pmi or private mortgage insurance premiums. This insurance protects the lender will need to you default on the loan. Premiums are added to your monthly payment.
Know what the going interest rate is. This will enable you know when to lock in an interest rate. Countless mortgage firms offer to lock you into a specific interest rate for a period of 30 to 60 days. If the interest rates boost, you are protected. If they decline you can opt for the new interest rate.
Should you have a 30-year mortgage, look into making an extra payment additionally to your normal monthly payment. The addition payment goes toward your principal. In case you make an additional payment routinely, you’ll pay off your loan quicker and can substantially minimize the total quantity of interest that you need to pay.
Lenders check out your debt-to-income ratio in order to identify if you qualify for a loan. If your total debt is over a particular percentage of your earnings, you may have trouble qualifying for a loan. This is why, lower your debt by paying off your credit cards as much as you could.
Banking on Internet and mobile is gaining popularity
The Pew Internet & American Life Project Tracking survey of December 2010 said that nearly 60% of all Americans who used the Internet did some banking over it. In the United Kingdom, the number of bank accounts registered for Internet banking grew sharply from 28 million in 2006 to 45 million in 2010. With over 100 million, a Chinese bank has the largest number of Internet banking users in the world.
Cut to mobile banking. A research firm estimated that about 110 million people worldwide used mobile banking and related services in 2010. It also indicated that the geographies of Asia Pacific, Middle East and Africa would be the most important markets for financial services using the mobile device. Another one forecasts a stupendous 660% growth in mobile banking and payment services between 2009 and 2014.
A number of factors, including lower cost of connectivity, greater Internet and mobile Internet penetration, affordability of devices and the arrival of the smartphone have gone into popularizing online (Internet and mobile) banking around the world.
However, security threats continue to loom