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Best Credit Cards for International Travel of 2020

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Booking international travel can be costly, but with a little advanced planning you can use a credit card to save money. One of the biggest mistakes credit cardholders make abroad is using a card that charges foreign transaction fees, which average 3% per purchase.

If you spend $1,000 on purchases during your overseas vacation, you’ll pay $30 in fees that can easily be avoided by using a credit card with no foreign transaction fee. There are many financial steps to take before an international trip, and you can check off choosing the right credit card by considering one of the options mentioned below. (See our methodology for more information on how we choose the best cards.)

CNBC Select reviewed popular rewards credit cards to find the best options for people who are traveling outside the U.S., so you can maximize rewards and save on unnecessary fees. All of the cards mentioned below have no foreign transaction fees.

Best credit cards for international travel

Winner

American Express® Gold Card

American Express® Gold Card
  • Rewards

    4X Membership Rewards® points when you dine at restaurants worldwide and shop at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

  • Welcome bonus

    35,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 3 months from account opening

  • Annual fee

  • Intro APR

  • Regular APR

  • Balance transfer fee

  • Foreign transaction fee

  • Credit needed

Pros

  • Strong rewards program with 4X points earned on dining worldwide and 3X points earned on flights booked directly with airlines or amextravel.com
  • Up to $100 credit in airline fees, up to $120 in dining credits at participating partners and up to $100 hotel credit
  • 35,000 Membership Rewards® points welcome bonus after you spend $4,000 within first 3 months
  • Baggage insurance plan covers up to $1,250 for carry-on baggage and up to $500 for checked baggage that is damaged, lost or stolen
  • No fee charged on purchases made outside the U.S.

Cons

  • No introductory APR period
  • $250 annual fee
  • This is a charge card, which means you have to pay off your balance in full each billing cycle
  • Estimated rewards earned after 1 year: $824
  • Estimated rewards earned after 5 years: $2,719

Rewards totals incorporate the points earned from the welcome bonus

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On American Express’s secure website.

Who’s this for? If you love food and travel, the American Express® Gold Card could be the ideal rewards card for you. Cardholders earn a competitive 4X points per dollar spent at restaurants worldwide and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, earn 3X points on flights booked directly with airlines or on amextravel.com.

You can save money on in-flight food and beverages as well as seat upgrades and checked baggage with the annual $100 airline fee credit. Simply complete a one-time activation by selecting an airline to benefit from this perk. Cardholders also receive an annual dining credit of up to $120 ($10 a month) at participating partners, including Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed and participating Shake Shack locations.

This card does have a $250 annual fee, but it can easily be offset if you take advantage of all the added card benefits. Just using the $120 dining credit and $100 airline fee credit each year effectively reduces the fee to $30. Then, the rewards you earn help further “pay” for the card.

Cardholders can also benefit from Amex Offers, where you can earn statement credits or bonus Membership Rewards® points at select retailers. Travelers will appreciate that there’s no foreign transaction fees as well as the insurance for car rentals and damaged, lost or stolen luggage.

Check out CNBC Select’s best rewards credit cards.

Best for No Annual Fee

Wells Fargo Propel American Express® Card

Wells Fargo Propel American Express® Card
  • Rewards

    3X points on dining out and ordering in; gas, rideshares and transit; flights, hotels, homestays and car rentals; and popular streaming services. 1X points on all other purchases

  • Welcome bonus

    20,000 bonus points when you spend $1,000 in purchases in the first 3 months

  • Annual fee

  • Intro APR

    0% APR for 12 months on purchases and qualifying balance transfers

  • Regular APR

    15.49% to 27.49% variable

  • Balance transfer fee

    Introductory fee of 3% ($5 minimum) for 120 days, then 5% ($5 minimum)

  • Foreign transaction fee

  • Credit needed

Pros

  • No annual fee
  • No fee charged on purchases made outside the U.S.
  • 0% APR for the first 12 months on purchases and balance transfers
  • No blackout dates on air travel when redeemed through Go Far Rewards

Cons

  • Minimum reward redemption amount of 2,500 points
  • Balance transfers incur a 3% fee ($5 minimum)
  • Estimated rewards earned after 1 year: $584
  • Estimated rewards earned after 5 years: $2,120

Rewards totals incorporate the points earned from the welcome bonus

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Information about the Wells Fargo Propel American Express® Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Who’s this for? The Wells Fargo Propel American Express® Card offers a strong rewards program for frequent travelers all at no annual fee. Cardholders earn 3X points per dollar spent on dining out, ordering in, travel, and a number of streaming services, including Apple Music, Hulu, Netflix and Spotify Premium. Those kinds of rewards are hard to find among no annual fee cards.

The travel rewards are unique since it gives you points not just on flights and hotels but also car rentals, homestays and ridesharing services. There are no blackout dates on flights booked through Go Far® Rewards.

There’s also an impressive welcome bonus for a no-annual-fee card: Earn 20,000 points after you spend $1,000 within the first three months. That’s equivalent to $200 in cash.

The additional perks geared toward travelers are worth noting: Cardholders can take advantage of lost luggage reimbursement, car rental loss and damage insurance, roadside assistance, 24/7 travel and emergency assistance and no foreign transaction fees.

This card also provides a year of no interest on purchases and balance transfers (after a 15.74% to 27.74% variable APR). If you have expected upcoming expenses that you want to pay for over time, or you’re looking to consolidate credit card debt, the Wells Fargo Propel American Express® Card can help you finance debt without incurring interest charges.

Read CNBC Select’s Amex Gold Card review for more detail and check out CNBC Select’s best no annual fee credit cards.

Best for Dining

Capital One® Savor® Cash Rewards Credit Card

Capital One® Savor® Cash Rewards Credit Card
  • Rewards

    4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases

  • Welcome bonus

    Earn a one-time $300 cash bonus once you spend $3,000 on purchases within the first three months from account opening

  • Annual fee

    $95, waived the first year

  • Intro APR

    0% for the first 12 months on purchases; N/A on balance transfers

  • Regular APR

    16.24% to 25.24% variable on purchases and balance transfers

  • Balance transfer fee

    3% for promotional APR offers; none for balances transferred at regular APR

  • Foreign transaction fee

  • Credit needed

Pros

  • Unlimited 4% cash back on entertainment purchases
  • 8% cash back on all Vivid Seats ticket purchases through May 31, 2020
  • Ability to redeem rewards at any amount, unlike some other cards with $25 minimums
  • No fee charged on purchases made outside the U.S.

Cons

  • $95 annual fee after the first year
  • Cable, digital streaming and membership services are excluded from the 4% cash-back rate
  • No introductory 0% financing offers for purchases or balance transfers
  • Estimated rewards earned after 1 year: $781
  • Estimated rewards earned after 5 years: $2,327

Rewards totals incorporate the cash back earned from the welcome bonus

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Information about the Capital One® Savor® Cash Rewards Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Who’s this for? Travelers who love to eat out can’t go wrong carrying a dining rewards card. The Capital One® Savor® Cash Rewards Credit Card offers 4% cash back on dining purchases. This is one of the highest rewards rates on dining available, and Capital One classifies dining as restaurants, cafes, bars, lounges, fast-food chains and bakeries. Plus, you can enjoy foodie-centric perks, such as exclusive access to premium reservations with OpenTable. And no worries if you’re dining overseas, this card doesn’t charge foreign transaction fees.

You can also earn 4% cash back on entertainment spending, whether you’re buying movie tickets, taking a family trip to the zoo or spending the evening bowling with friends. Through May 31, 2020, cardholders who buy tickets through Vivid Seats, a ticket resale site, can take advantage of 8% cash back.

Cardholders benefit from exclusive access to dining, sports and entertainment events, such as the iHeartRadio Music Festival and the Capital One JamFest. Beyond dining and entertainment perks, there’s also 2% cash back at grocery stores and 1% on all other purchases.

This card does come with a $95 annual fee, but it’s waived during the first year and can be offset by the cash back you earn.

Check out CNBC Select’s best credit cards for dining out and restaurants.

Best for Hotels

Capital One® VentureOne® Rewards Credit Card

Capital One® VentureOne® Rewards Credit Card
  • Rewards

    5X miles on hotel and rental cars booked through Capital One Travel℠, 1.25X miles per dollar on every purchase

  • Welcome bonus

    20,000 bonus miles once you spend $1,000 on purchases within the first 3 months from account opening

  • Annual fee

  • Intro APR

  • Regular APR

    13.49% to 23.49% variable

  • Balance transfer fee

    3% for promotional APR offers; none for balances transferred at regular APR

  • Foreign transaction fee

  • Credit needed

Pros

  • 5X miles on hotel and rental cars booked through Capital One Travel℠
  • 0% APR for 12 months
  • Miles never expire for the life of the account

Cons

  • No Global Entry or TSA PreCheck statement credit offerings
  • No airport lounge access
  • Estimated rewards earned after 1 year: $500
  • Estimated rewards earned after 5 years: $1,699

Rewards totals incorporate the points earned from the welcome bonus

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Information about the Capital One® VentureOne® Rewards Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Who’s this for? Anyone looking to book hotel rooms should consider the Capital One® VentureOne® Rewards Credit Card with its impressive offer 5X miles on hotel and rental cars booked through Capital One Travel℠. Cardmembers can earn unlimited 1.25X miles on all other purchases, making it a solid choice for everyday use. The card has no annual fee and charges no foreign transaction fees.

Another perk is the intro 0% APR period, which lasts for 12 months for new purchases (after a 13.74% to 23.74% variable APR). This can come in handy if you want to pay for a vacation over the course of a year and avoid interest charges.

The Capital One® VentureOne® Rewards Credit Card offers new users a strong welcome bonus: 20,000 bonus miles after they spend $1,000 on purchases within the first three months. You can redeem miles for past travel expenses using the Purchase Eraser®, which is essentially a statement credit. Or you can book new travel reservations through the Capital One Rewards Center.

Additionally, with this card, it’s possible to transfer your miles to any of Capital One’s partner airlines, including JetBlue, Emirates Skywards, Air Canada and Air France. (Read how to make the most of your airline miles.)

Read CNBC Select’s Capital One VentureOne Rewards Credit Card review for more detail and check out CNBC Select’s best hotel credit cards.

Best for Luxury Travel

Chase Sapphire Reserve®

Chase Sapphire Reserve®
  • Rewards

    10X points on Lyft rides through March 2022, 3X points on travel worldwide (immediately after earning your $300 annual travel credit), 3X points on dining at restaurants worldwide, 1X point per $1 on all other purchases

  • Welcome bonus

    50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening — worth up to $750 toward travel when you redeem through Chase Ultimate Rewards®

  • Annual fee

  • Intro APR

  • Regular APR

    18.49% to 25.49% variable

  • Balance transfer fee

  • Foreign transaction fee

  • Credit needed

Pros

  • $300 annual travel credit for travel purchases
  • Global Entry or TSA PreCheck application fee credit up to $100 every four years
  • Priority Pass™ Select lounge access at 1,000+ VIP lounges in over 500 cities worldwide
  • Special benefits at The Luxury Hotel & Resort Collection
  • Free DashPass subscription for a minimum of a year when you activate by December 31, 2021
  • $60 DoorDash credit in 2020 and 2021
  • Complimentary year of Lyft Pink membership

Cons

  • High $550 annual fee, but it can be offset by taking advantage of all the card’s perks
  • No introductory APR
  • Relatively high balance transfer fee
  • Estimated rewards earned after 1 year: $1,231
  • Estimated rewards earned after 5 years: $2,755

Rewards totals incorporate the points earned from the welcome bonus

read more

On Chase’s secure site

Who’s this for? The Chase Sapphire Reserve® is geared toward foodies and frequent travelers who are looking for luxurious perks, such as annual travel credits, airport lounge access and complimentary hotel room upgrades. You can take advantage of an annual $300 travel credit, which can cover everything from airfare and hotels to parking and tolls.

Cardholders earn 3X points on travel worldwide (immediately after earning your $300 annual travel credit) and on dining at restaurants worldwide and 1X point per $1 on all other purchases. Points are worth 50% more when redeemed for travel via Chase Ultimate Rewards®. For example, 50,000 points are worth $750 redeemed toward airfare, hotels, car rentals and cruises when you redeem through Chase Ultimate Rewards®. This perk is a great way to get the most value for your rewards.

Chase recently added new Lyft perks including 10X points on Lyft rides through March 2022 and a complimentary year of Lyft Pink membership (worth $19.99 per month). Lyft Pink includes 15% off car rides, relaxed cancellations, priority airport pickups, up to three free 30-minute bike and scooter rides per month and more.

While this card has a robust rewards program, it also comes with a steep $550 annual fee. All the card’s added credits and benefits provided by Chase can help offset the cost. The $300 annual travel credit effectively reduces the annual fee to a more manageable $150. Cardholders can take advantage of a Priority Pass™ Select membership that has a value of about $429, as well as Global Entry or TSA PreCheck application fee credit of up to $100 every four years.

Read CNBC Select’s Chase Sapphire Reserve review for more detail and check out CNBC Select’s best travel credit cards.

Best for Bad Credit

Discover it® Secured

Discover it® Secured
  • Rewards

    2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter, then 1%); unlimited 1% cash back on all other purchases

  • Welcome bonus

    At the end of your first year, Discover automatically matches all the cash back you earned

  • Annual fee

  • Intro APR

    10.99% for the first 6 months on balance transfers; N/A for purchases

  • Regular APR

    24.49% variable on purchases and balance transfers

  • Balance transfer fee

    3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

  • Foreign transaction fee

  • Credit needed

Pros

  • No annual fee
  • Discover automatically reviews your credit card account monthly, starting at eight months, to see if your security deposit can be returned while you continue to enjoy your card benefits
  • Strong cash-back rewards program
  • Simple welcome bonus with no minimum spending requirements
  • No fee charged on purchases made outside the U.S.

Cons

  • Low credit limit prevents cardholders from charging high-cost items or many expenses
  • You have to have a Social Security number and U.S. bank account to apply for this card
  • Relatively high 24.49% variable APR
  • Discover isn’t as widely accepted as Visa and Mastercard

On Discover’s Secured Site

Who’s this for? If you have no credit history or bad credit (scores below 580), a secured card may be your best option. The Discover it® Secured is a well-rounded secured card that offers many benefits that are typically found with unsecured cards. Cardholders can earn cash back, receive a generous welcome bonus, use the card overseas without incurring added fees and more — all for no annual fee.

Cardholders earn a competitive 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%). Plus, you can earn unlimited 1% cash back on all other purchases. The welcome bonus is also unique: Discover will match any cash back you’ve earned during the first 12 billing cycles. So, if you earn $50 cash back at the end of the first year, Discover will give you an additional $50.

This card requires a $200 security deposit, which is fairly standard for secured credit cards. It stands out from the crowd because it gives users a clear path to upgrading to an unsecured card (and getting their deposit back). Starting at eight months from account opening, Discover will review your account to see if you can get your security deposit back, which takes the guesswork out of wondering when you’ll qualify for an unsecured card.

Read CNBC Select’s Discover it Secured review for more detail and check out CNBC Select’s best credit cards for bad credit.

Best credit cards for international travel

Best for Credit card Estimated rewards earned after 5 years
WinnerAmerican Express® Gold Card$2,719
No Annual FeeWells Fargo Propel American Express® Card$2,120
DiningCapital One® Savor® Cash Rewards Credit Card$2,327
HotelsCapital One® VentureOne® Rewards Credit Card$1,699
Luxury TravelChase Sapphire Reserve®$2,755
Bad CreditDiscover it® SecuredN/A

Our methodology

To determine which cards will put the most money back in your pocket, CNBC Select evaluated 127 popular rewards credit cards offered by major banks, financial companies and credit unions that allow anyone to join. We compared each card on a range of features, including travel rewards (points and miles), annual fee, welcome bonus, introductory and standard APR, one-time perks, annual perks, redemption rates, as well as factors such as required credit and customer reviews when available.

CNBC Select teamed up with location intelligence firm Esri. The company’s data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri’s data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

We then estimated how much the average consumer would redeem over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

It’s important to note the value of a point or mile varies from card to card and based on how you redeem them. When we calculated the estimated returns, we assumed that cardholders are redeeming points/miles for a typical maximum value of 1 cent per point or mile. (Extreme optimizers might be able to achieve more value.)

Our final picks are weighted heavily toward the highest five-year returns, since it’s generally wise to hold onto a credit card for years. This method also avoids giving an unfair advantage to cards with large welcome bonuses.

While the five-year estimates we’ve included are derived from a budget similar to the average American’s spending, you may earn a higher or lower return depending on your travel habits.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the CNBC Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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Cleaning up your credit safely

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TUCSON, Az. (KGUN) — Americans who are dealing with financial hardship because of job loss and aftermath caused by the pandemic could be struggling to make ends meat and in some cases they might be racking up credit card debt or they’re simply late on paying bills.

KGUN 9 caught up with Sean Herdrick with the Better Business Bureau of Southern Arizona who says there are ways to get your credit fixed but you have to be careful about who’s handling your situation because they can take your money and leave you with bad credit.

“To see how many 1-star ratings there are for credit companies is frightening. They promise you they will do all of this stuff for your credit, get things taken off. Negotiate with your creditors. They’ll ask for a fee up front, you send them the fee and they never come back to you,” Herdrick said.

According to the BBB you can check their website to find out details about how a company operates. And while there are three common ways to fix your credit. It’s also a good idea to get schooled on extra fees.

“We vet the companies we accredit and if you find an accredited credit business chances are they’re doing a good job and they’re going to help you out. Credit counseling and that’s probably the best way. There’s also debt relief or settlement companies where they offer to settle your debts for you or come up with a plan to do that and a debt consolidation company they will offer a loan at a lower interest rate to help pay off all of your debts at once,” Herdrick said.

The U.S Department of Commerce released data that says Americans are spending their stimulus checks on clothing and sporting goods while others are using it for bills to fend off financial ruin and get their credit back on track.

“Do your research make sure the company you hire can give you what you need,” Herdrick said.

BBB Tip links:

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Taking A Joint Home Loan Can Benefit You. Here’s Why – Forbes Advisor INDIA

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In India, buying a home is mostly the single largest investment made by an individual during their lifetime. As our families expand, we plan for the future and plan to invest in bigger homes that can comfortably accommodate and protect a growing family. However, such dream houses come at a significant cost, warrant access to huge funds, and hence, require key financial planning.

In most cases, individuals need to opt for home loans to fulfil the cost obligation associated with buying a house. Considering the amount and type of loan taken, there are certain eligibility criteria that one needs to be aware of before initiating applications. 

At the time of taking a home loan, your lender or you may wish to add another applicant, also called co-applicant, to your home loans for various reasons and the structure of having a co-applicant is referred to as a joint home loan. 

Let’s understand when and why should you take a joint home loan. 

Role of a Co-applicant in a Joint Home Loan

A lender while considering applications simply wants to check if the borrower can repay the home loan along with their household expenses and existing loans. Therefore, while calculating your eligibility they generally keep aside a certain fixed portion of your income that covers your existing expenses. An individual’s eligibility is decided on the basis of the discretionary amount left post calculating their interest repayments and monthly instalments. 

In a joint home loan, you can add another co-applicant or applicants who becomes liable to pay the home loan along with the primary applicant. Liability of the loan is a collective responsibility on both or all the co-applicants as well. Generally, immediate family members, including father, mother, spouse, children, and brother, are most eligible to become co-applicants in joint home loans. 

With such arrangements the question that mostly arises is whether the co-applicant is also the co-owner of the home being considered. Co-applicant or co-applicants may or may not be the co-owner of the property, however they have a liability to pay back the loan. The co-owner of the property is a joint owner along with other owners. 

As a safeguard and prudent underwriting practice, lenders ask all co-owners to also become co-applicants in home loans, however, the reverse need not be true. This is a decision the pros and cons of which should be carefully considered by the primary applicant while choosing joint home loans.

Why Choose a Joint Home Loan Over Any Other Loan 

There are a number of additional advantages in considering taking a joint home loan as compared to an individual home loan. These include higher loan amount eligibility, lower interest rates and other income tax benefits. 

Higher Loan Amount Eligibility: When you add an income-earning co-applicant to a loan, the lender considers the income level of all the applicants and calculates an eligibility amount higher than that of only one individual applying for a home loan. This allows applicants or families to take a larger home loan amount or purchase a more aspirational home since the room for increasing an applicant budget is possible. 

Lower Interest Rates: In order to avail lower interest rates individuals can add their spouses or mother as co-applicants for a joint home loan and as a joint property owner. This is useful as most lenders in India offer a lower rate of interest to women borrowers. It is up to 10 to 25 basis points lower than the interest rate for male borrowers. 

Tax Benefits: Tax benefits can be enjoyed by all the co-applicants separately. For this to happen, co-applicants should be property owners as well and should contribute to the payment of monthly instalments towards the repayment of the home loan. 

Income Tax benefits that are available to the all co-applicants include: 

  • Benefit under Section 80 C of the Income-Tax Act for the loan’s principal payment up to a maximum limit of INR 1.50 lakh per year. 
  • Benefits under Section 24 of the Income-Tax Act for interest paid on a home loan up to INR 2 lakh per year. 
  • In a joint home loan, both the applicants can claim the above amounts individually and use this as an effective tax planning tool

Co-applicants and first-time loan applicants can utilise the joint home loan as a great tool to improve their credit score, thereby easing the process for future loan applications as and when required for various other purposes. 

Necessary Documents Needed for a Joint Home Loan

Documentation is the most cumbersome and tiring part of taking any loan. However, it is a critical part of any lender’s operations as they would want to make sure that their borrower meets income eligibility and supporting documents are provided. 

There are a number of regulatory guidelines for the know your customer (KYC) and property-related documents, where it is imperative that all accurate documentation is shared to avoid unnecessary rejections and thereby delaying the availability of funds. 

For any home loan, typically an applicant needs to provide the following: –

  • KYC documents which include:
    • Identity Proof
    • Address Proof 
  • Income proof documents including but not limited to:
    • Salary slips, Form 16 issued by your employer or
    • Income tax returns (especially for self-employed) of the last three years
  • Property related documents such as: 
    • Agreement to sell, a sale deed or a registry 
    • Previous sale deed for the property (typically all transactions done on that property in the last 13 years) 
    • Few property or location-specific documents like a no-objection certificate (NOC) from relevant authorities or from your bank if the project is funded by any financer in case you are buying new property from a builder.

All applicants need to provide their KYC documents regardless of whether they earn an income or not or whether they even co-own the property. 

If you are applying for a joint home loan mainly for higher eligibility wherein the income of other applicants also needs to be considered, then income documents of all the applicants will be required to be shared with the lender in addition to KYC documents.  

If your purpose is to save on stamp duty charges by adding a female member of the house as a co-owner of the property, then you must make sure that the draft agreements and final sale deed or the registry documents have relevant members stated clearly as co-owners. 

If you are a nonresident Indian (NRI), you can issue a registered power of attorney (POA) in favour of a trusted family member for them to execute the necessary documentation on your behalf. However, you must ensure that the exact purpose of the required transactions are mentioned in the POA, thereby easing the process for compliance and reducing chances of rejection.

Factors to Consider Before Applying for a Loan

Before even applying for a joint loan, it is important to fully understand the lenders’ conditions, which differ depending on the provider you’re considering to approach. 

Lending Conditions

  • If the property has co-owners, in such a case, the lender, in all likelihood, insists all co-owners to become co-applicants as well. 
  • The lender may also insist any or one of your family members become co-applicants in the case of an NRI loan. 
  • If you have given the power of attorney to any of your family members, the lender is likely to insist one of the family members is available in the country as co-applicant for follow-ups and communication purposes to minimize repayment risks.

Credit Score Reports

It is always better to check your and the other co-applicant’s credit score and bureau report prior to applying. This will help to ensure that you are aware of all your past and current loans along with their performance over time. 

In some cases, if it is observed that you may have an old credit card with some minor payment overdue or incorrect reporting by any financial institution, it may lead to the possibility of hampering your overall credit score, reducing the chances of approval.

In India, there are primarily four credit bureaus via which you can check your credit report. Any bureau after paying relevant fees, which is about INR 500, will process your credit report. These credit bureaus include CIBIL, Equifax, CRIF Highmark and Experian.  

When to Avoid Taking a Joint Home Loan?

When a co-applicant already has significant loan obligations and is not left with sufficient income to be eligible for a higher home loan amount, it is generally advisable to reconsider taking a joint home loan and instead consider an individual home loan.

Healthy credit history is very important for lenders while considering applications and a co-applicant who has a bad credit history or poor track of repaying past loans is a major factor while assessing the eligibility of a new loan. 

If your income is sufficient to cover costs with no additional benefits available in terms of tax write-offs, it is suitable for you to avoid a joint home loan and keep the responsibility of your liability limited.

Joint home loans are also best avoided if there is a plan for taking on a larger liability or loan in the near future as the joint loan may impact the eligibility criteria of future loans due to existing liabilities.

Bottom Line

A joint home loan is a beneficial financial tool with the potential of helping the borrower secure higher loan amounts. 

It can aid individuals significantly improve their spending power and investing threshold while buying a larger and more comfortable home and at the same time keeping the primary applicant’s liabilities manageable by sharing the repayment burden with other co-applicants. 

If utilized correctly, it can help you enjoy higher tax benefits, while simultaneously reducing overall tax outgo on a yearly-basis. 

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Fixed-rate student loan refinancing rates inch up, but still hover near record low

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Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

The latest trends in interest rates for student loan refinancing from the Credible marketplace, updated weekly.  (iStock)

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans into 10-year fixed-rate loans hit another low during the week of April 12, 2021.

For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender, during the week of April 12:

  • Rates on 10-year fixed-rate loans averaged 3.78%, up from 3.73% the week before and down from 4.81% a year ago. The record low for 10-year fixed rate loans was 3.71%, during the week of Feb. 15, 2021.
  • Rates on 5-year variable-rate loans averaged 3.26%, up slightly from 3.13% the week before and down from 3.28% a year ago. Variable-rate loans recorded a record low of 2.63% during the week of June 29, 2020.

Student loan refinancing weekly rate trends

If you’re curious about what kind of student loan refinance rates you may qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates won’t affect your credit score.

Current student loan refinancing rates by FICO score

To provide relief from the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended through at least Sept. 30, 2021. As long as that relief is in place, there’s little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of the low interest rate environment to refinance their education debt at lower rates.

If you qualify to refinance your student loans, the interest rate you may be offered can depend on factors like your FICO score, the type of loan you’re seeking (fixed or variable rate), and the loan repayment term. 

The chart above shows that good credit can help you get a lower rate, and that rates tend to be higher on loans with fixed interest rates and longer repayment terms. Because each lender has its own method of evaluating borrowers, it’s a good idea to request rates from multiple lenders so you can compare your options. A student loan refinancing calculator can help you estimate how much you might save. 

If you want to refinance with bad credit, you may need to apply with a cosigner. Or, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.

You can use Credible to compare rates from multiple private lenders at once without affecting your credit score.

How rates for student loan refinancing are determined

The rates private lenders charge to refinance student loans depend in part on the economy and interest rate environment, but also the loan term, the type of loan (fixed- or variable-rate), the borrower’s credit worthiness, and the lender’s operating costs and profit margin. 

About Credible

Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options ― without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unrivaled customer experience, as reflected by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

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