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Best Banks for Those Who Can’t Get a Bank Account

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checkbookUsing cash for all your transactions isn’t practical or safe. That’s why it’s best to get a bank account with a debit card. Problem is, some people can’t qualify for an account at many banks. And others can’t afford the various fees charged. So what’s the best bank account for you? Probably an entry-level online or mobile bank account.

Choosing and setting up an entry-level bank account is easier than you think. Plenty of financial institutions offer no-fee accounts with lots of perks. Just be sure to shop around carefully. Read the fine print and know the requirements, too.

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The Importance of Bank Accounts

Stuffing money under your mattress is pretty risky. So is walking around with a lot of cash to pay for everyday purchases. Fortunately, there’s a safer and more convenient way to save and spend money: open a bank account.

“Without a bank account, you are left with less than desirable options. Cash isn’t always accepted. And it can be dangerous to carry your hard-earned money around,” says Brent Weiss, co-founder/chief evangelist of Facet Wealth.

Setting up a free checking/banking account is an easy way to start laying the foundation for the rest of your financial life, he adds. It can help build a credit history and improve your credit rating.

“It’s a secure way to use and protect your money,” notes Weiss. “Plus, bank accounts and other bank products can make paying your expenses in managing your cash flow easier.”

Colin Walsh, co-founder and CEO of online bank Varo Money, agrees.

“Bank accounts are the basic transactional accounts people can use to engage in the wider financial system. They are also FDIC insured,” Walsh explains. “That provides a higher level of credibility and safety for consumers. And most bank accounts come with a debit card that allows you to make transactions or conveniently access cash from an ATM.”

Best Banks Might not Be Banks

Atif Siddiqi is founder/CEO of Branch, a mobile banking app. He says you can opt for a bank checking account or a savings account.

“Savings accounts have higher interest rates than checking accounts. But most consumers should aim to get a checking account first. That’s because it’s easier for everyday transactions,” says Siddiqi. “Savings accounts have limitations on how much a consumer can withdraw or transfer.”

The good news? It’s entirely possible to get a totally free bank/checking account today.

“A consumer should review their options closely to ensure that there are no additional fees or restrictions. Many banks claim to offer free accounts but require minimum balances or charge overdraft fees,” adds Siddiqi.

The best bank account deals today are offered by online banks and mobile banking apps.

Online Banks and Apps

Among the perks provided, many:

  • Offer an ATM card linked with fee-free ATM networks.
  • Don’t charge fees for overdrafts, monthly maintenance, minimum balance, or foreign transactions.
  • Provide free paper checks (if they offer them).
  • Allow for mobile deposits of checks (using your smartphone and an app).
  • Grant access to earned wages ahead of your paycheck.
  • Instantly refund holds that gas stations place on your ATM card after you fill up your tank.
  • Offer a higher interest rate on savings accounts than brick-and-mortar banks.
  • Don’t require proof of credit or previous banking history to be eligible.
  • Provide a free app to help manage your money.

It’s possible to find a traditional brick-and-mortar bank that offers some of these benefits. But most don’t, Walsh says. Most tend to charge fees for basic checking accounts in the form of a monthly fee or minimum balance. Many require you to sign up for direct deposit of your paycheck, too. That’s why the best deals are being offered by online banks and mobile banking apps. Other examples besides Branch and Varo include Chime, Simple, Discover, Ally, and Alliant.

Minimum Balances and Direct Deposit

“Before choosing a bank, think about your unique needs. You should be able to make free ATM withdrawals easily, have a debit card, make online bill payments, and earn interest on extra cash,” recommends Walsh.

Be aware that, with an online/mobile bank, you may not be able to visit a brick-and-mortar branch. You may have to make a minimum number of debit card purchases to avoid fees. And the bank may not use paper checks. Look for online banks that reimburse you for ATM fees charged by other institutions.

“Whatever bank you choose, make sure it is FDIC insured,” suggests Walsh. “Read the fine print for fees. And confirm with your bank how it keeps your private information secure. Also, make sure your bank has a responsive customer service department where you can get real-time help with any concerns or questions.”

Also, look into worthy options offered by your bank. These include a low/no-fee secured credit card and a small loan attached to your account that can help establish credit.

Qualifying: You Can Avoid ChexSystems

Opening a banking account isn’t hard. The tricky part will be shopping around and picking from the wide array of banks available that offer free accounts.

“You’ll likely need to be at least 18 years old, have a Social Security number, and have a permanent mailing address. Mobile banking apps also require a valid email address,” says Walsh. “So long as you meet these rules – even if you have bad credit – you can likely still get a bank account.”

Maybe you’ve had trouble with banking in the past. Perhaps you have a record of unpaid fees or overdrafts. If so, you may be in the consumer reporting system called ChexSystems.

“Many traditional banks might immediately blacklist you if you are in the ChexSystems database. But newer online and mobile banks tend to help people by offering a second chance,” says Walsh. “If your record is now clear and you’re currently in good standing, you should be able to get an account with these types of banks.”

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Credit 9 Gets Bad Review For Debt Consolidation Loans

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Have You Received A Loan Offer In The Mail From Credit 9?

If you have been thinking about it and you just received a “too good to be true” loan offer in the mail from Credit 9, Tripoint Lending, Simple Path Financial, or SPF Saves or – listen to your gut instinct. Do you really think you qualify for a 3% interest rate? Do you really think that reservation code is especially for you? Check Crixeo and find out the truth.

Is Credit 9 A Scam?

Credit9 is affiliated with Americor Funding, a debt resolution company.

It appears that Credit 9 is operating a typical bait and switch scheme. They lure you in by sending you direct mail with a “personalized reservation code” and a low 4%-5% interest rate to consolidate your high-interest credit card debt.

Credit9 doesn’t tell you that you need excellent credit to qualify for a loan with that low-interest rate (which you have been supposedly preapproved for).

While the Credit 9 Nine mailer offers incredibly low rates, the licensing information on their site discloses that “typical” rates for most states they include in their disclosure are 18-24% APR.

Interestingly, while having sample rates for the State of Pennsylvania, the Credit 9 website also discloses that “These products/services are not offered to Pennsylvania residents.”

When it comes to debt-consolidation loans, you’ll find varying interest rates that may be different from one lender to another.

Debt consolidation programs cover several types of loans, including home equity loans, personal loans, and balance transfer credit. The main reason for taking out a personal loan is the consolidation of existing debt. Interest rates may vary, but they are less expensive, convenient, and easier to manage than other types of debts – such as medical bills and credit cards.

The average interest rate depends on the type of personal loan you’re applying for, your credit score, and other factors. In most cases, the better your credit, a better credit will get you approved for a more affordable interest rate.

Factors That Influence Debt Consolidation Loan

Lending Tree also reported that the annual percentage rate (APR) for a personal loan was also heavily influenced by the credit score of the borrower.

For a credit score of 720 or higher, the APR was 7.63% at its lowest. And for a credit score of 560 or lower, the APR was a whopping 113.62% at its highest.

This means that personal loans favor buyers with strong credits, while borrowers with a bad credit face extremely high interest rates. It is worth shopping around, no matter how bad your credit score.

Doing research will give you an idea about the rates available to you from different lenders and your options. It is worth noting that each application could trigger a hard pull on your credit report, which will hurt your credit score for a few months. This is why it is better to submit multiple applications in quick succession so that your credit score only goes through a single hard inquiry throughout your shopping period.

What is the Average Loan Legnth for Debt Consolidation?

The average loan length varies, but most borrowers are able to secure a repayment term of between 2 to 5 years. While it is within the realm of possibility to negotiate a higher repayment term, it will come at the cost of a higher interest rate. Not to mention the fact that you’ll be paying the interest rate for longer. Lenders do this to offset the risk of default on their loans.

Factors That Affect the Average Debt-Consolidation Loan Rate

The actual loan rate depends on the type of solution you’re looking for. For instance, home equity loans have the lowest average interest rates This is because it’s a secured loan, meaning your home becomes collateral, and you can secure a lower rate that is more feasible for you. The average home equity loan for a 15 year term at fixed rates is well within the range of 3% to 9%.

By contrast, unsecured personal debt accrues some of the highest interest rates. They are unsecured, which means there’s no collateral for lenders to recoup their investments should the borrower default. These are known as personal loans and they often come with an average loan rate of about 11.91%.

Other than the type of product you’re looking for, there are few other factors to consider.

Credit Scores

As a general rule, a strong credit score can help you secure lower interest rates. But if your credit report shows a history of late or missed payments, you should try to improve your credit before applying for debt-consolidation loan.

The Lender

You’ll find debt-consolidation loans at credit unions, online lenders, and traditional banks – among others. Every lender will charge a different rate. You’ll get lower APRs at credit unions compared to traditional banks. Some online lenders offer loans to individuals with low credit scores. But their interest rates are often extremely bloated – often hovering within the ranges of 6% to over 30%.

Debt to Income Ratio

The Debt-to-Income ratio is the ratio of your debt owed each month to your earnings. Lenders often equate high DTIs as a high risk. A high DTI, usually above 40% will make it difficult to secure a lower interest rate.

Loan term

The loan term is the period over which you repay your loan. A shorter-term loan offers lower interest rates and reduces your overall cost. Longer loan terms come with high APRs and a higher cost, but they usually translate to lower monthly payments.

Fixed vs. Variable PR

A fixed interest rate might mean a higher interest rate, but it will likely remain the same during the length of your term. Variable interest rates often start lower but increase over time based on market changes.

The Bottom Line

Now that you know more about debt-consolidation loans, you can strategize the best financial outcome for your situation.

Finding a good interest rate requires two basic elements:

  1. The loan you receive should have a lower interest rate than your existing debt
  2. You should change your spending habits to get out of debt without paying.

Despite the glaring issues (for individuals with lower credit scores), consolidation loans can be extremely useful with the right tools. Provided you’re astute with your finances, you should be able to clear out your other debts with relative ease. It’s always prudent to do your research when it comes to any major financial decision, and this holds true for debt consolidation.

As always, make sure to read the terms and conditions to learn as many details about the loan as possible – otherwise it could end up being something like a natural disaster.

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No Credit Check Loans in Canada: Is This Loan Option Legit? – Blog

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Sometimes, you’ll find yourself in life being strapped for cash while there are bills that you need to pay. In this unfortunate circumstance, one of your options is to borrow money. Even for a small sum of cash, you can obtain a loan to tide you over until you have enough money to repay it and get back to normal.

Among the small loans that you can get today are payday loans. The good thing about this loan type is that you can obtain the money fast, and you can avail of it even if you don’t have a stellar credit score. If you want to get this loan, you can apply for no credit check loans in canada on PersonalMoneyNetwork’s website.

But is the “guaranteed” marketing legit? And how does guaranteed payday loans work? Let’s find out in this blog post.

How Does This Loan Option Work?

Lenders that provide guaranteed payday loans conduct non-traditional credit checks on borrowers. They don’t care as much of your credit history as your ability to repay the loan. So, instead of checking your credit score, these online lenders look at your source of income as the primary requirement for you to get approved.

However, the word “guaranteed” is not entirely true. Let’s just say it’s almost guaranteed. As long as the lender sees that you’re capable of paying what you owe, you’ll get immediate approval of your loan application.

The application process for this loan is straightforward because it’s online. Just send your credentials to the lender, and the latter will review it whether you’re qualified. Once the lender approves your application, you can get the money quickly. Your lender will transfer the funds to your bank account or send you a check just within the day of your application or the next day.

Keep in mind that online payday loans are short-term money loans. The word “payday” in its name means that you have to repay what you owe on your salary payment date, which usually comes every two weeks or one month.

It’s essential to manage your repayment when taking out a payday loan because the interest rate can be pretty high. Some borrowers of this loan are stuck in a debt cycle because they fail to create a budget plan for repayments.

Features You Need to Consider

For you to find a lender that offers the best deal for your financial situation, you should take note of these features.

  • Loan amount. Payday loans are regulated by the state where you live. For instance, there’s a limit on how much money you’re able to borrow. It’s advised to go for a lender that allows borrowers to take out the maximum limit, especially if you want to borrow a higher sum of cash.
  • Repayment period. Besides the amount of the loan, the loan terms of payday loans are also state-regulated. You better understand the state regulations on payday loan terms before you apply for one. Typically, payday loans have a repayment period of two weeks or one month.
  • Time of access to funds. Online lenders differ when it comes to processing loan applications and providing the funds that borrowers need. If you want to use the loan for an emergency, make sure to go to a lender that provides you access to the funds just within the day of your application.

Benefits of Online Payday Loans

Choosing an online payday loan can help you survive a short-term financial problem. Here are some of the pros of this loan option.

  • No hassle to apply for this loan. You won’t have any problem applying for a payday loan because the application is online. Just visit the website of the lender and submit your loan application there.
  • You can use the loan for whatever purpose. Payday loans are good for any kind of purchase. You can use the funds to pay for a car repair, cover travel expenses, pay bills, etc.
  • People with bad credit can avail of this loan. Since there’s no hard credit inquiry for payday loans, borrowers with poor credit scores can still get approved for this loan. The most important requirement is to have a regular income to receive approval.
  • Regulated by the state. State governments have put regulations to prevent lenders from charging exorbitant fees and interest rates.

Drawbacks of This Type of Loan

After learning the advantages of taking out this loan option, let’s now discuss the drawbacks of online payday loans.

  • Expensive interest and fees. If you compare payday loans to traditional loans, the former charges higher fees and interest rates. Lenders want to have a buffer against providing loans to high-risk borrowers. That’s why payday loans are more expensive than traditional loans.
  • Predatory lenders and scammers. Online lenders are not easy to trust because some don’t follow regulations, and they put their borrowers into a debt trap. So, you must be extra careful looking for one.

Takeaway

Online payday loans are the go-to money loan if you need a small sum of cash for the short term. Learn the features of the loan, its advantages, and disadvantages before taking out one. You can review this blog post if you want to learn more about it.



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Local Toyota Dealership Offers Financing to Those with Poor Credit

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Drivers with Bad Credit or No Credit May Still Finance at Gale Toyota.

ENFIELD, Conn. (PRWEB) October 30, 2020

Drivers in the Enfield area who are having a hard time with credit or who are just getting started with their credit history may still be able to find financing for a new car, as Gale Toyota offers financing to customers with poor credit.

While Gale Toyota might be best known for its selection of new Toyota models and a variety of pre-owned vehicles, the dealership also has a dedicated subprime financing department ready to work with customers who might not be able to receive financing at a different auto dealership. Whether the credit problem is due to bankruptcies, foreclosure, late payments, repossessions, collections, tax liens or any other financial calamity, Gale Toyota offers to work on a financial plan that will work for the customer.

For those who are setting out into the credit world for the first time or who have struggled with credit in recent days, this kind of loan is one that can help get them back in good credit graces once more, as long as they stick to the schedule and terms outlined in the agreement. This is particularly beneficial for drivers in need of a new set of wheels who might not be accepted for financial terms at dealerships elsewhere.

Gale Toyota crafts subprime loans that are unique to the individual’s needs so they can have a payment plan that will work well for them. Each loan is designed to be within each customer’s budget to help ensure successful completion of the loan and payment. The representatives from the dealership will take customers through the entire process and help ensure they’re getting the right loan and the right car.

Interested parties who wish to receive more information about the ins and outs of the subprime financing are encouraged to visit http://www.galetoyota.com or call 860-269-3608.

For the original version on PRWeb visit: https://www.prweb.com/releases/local_toyota_dealership_offers_financing_to_those_with_poor_credit/prweb17515498.htm

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