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Salon Equipment Financing in 2020: Everything You Need to Know

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Whether you’re opening a new beauty salon or looking to grow your business by upgrading your salon equipment, interest rates are at an all-time low this year, so it could be the best time to take out a loan or other financing.

While there are several small business loan options to consider, there are some specifically geared toward beauty salons and spas looking to buy equipment. We’ll cover all your financing options here and help you determine which is the best fit for your business.

Salon Equipment Financing for 2020

Because there’s such a wide range of options when it comes to getting a loan for beauty salon equipment, there’s truly something for every business, regardless of credit scores, revenue, or time in business.

Financing salon furniture or equipment directly from a supplier may not even require a credit check, which is great if you haven’t yet built up your business credit. (Get your free business credit scores to see where yours stands.)

If you opt for an equipment loan, you may be required to have credit scores of 650 or more, depending on the size of the loan. The good news is that the equipment you’re buying will serve as your collateral.

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3 Options for Salon Equipment Financing

Now let’s dive into your business loan and financing options for your hair salon or spa.

Wholesale Salon Equipment Financing

Many salon equipment retailers will sell you stylist chairs, stations, and supplies directly and will even offer their own financing options. 

Rates

Rates will vary depending on the vendor’s financing terms. Many offer 0% APR for the first 6-12 months, so if you can pay off the loan, you won’t pay anything in interest. Others offer on average 9.99-19.99% rates.

Requirements

Requirements to qualify for financing with a vendor will be different than with a traditional bank. The vendor may not require a credit check…then again, it might. Generally, we’ve seen vendors who accept applications from businesses with bad credit history up to those with stellar credit. Ultimately, your credit score may help you get a better rate.

Most salon equipment lines of credit and loans through vendors have terms of 12-60 months.

Amounts 

Whether you need a $1,000 barber chair or a full $100,000 build-out for your entire salon, you can find financing. Some applications have a minimum purchase requirement of $1,000-5,000.

Pros & Cons

The benefit of financing equipment directly from a wholesaler is that you’re paying less than you would with retail. If you’re able to pay back the financial loan quickly, you won’t incur interest charges.

On the other hand, if you can’t pay it off before interest rates kick in, you’ll pay more over time for your equipment.

Lease and Lease-to-Own

Another option is to lease equipment, with the option to purchase. If you know you’ll need this equipment long-term, you can conserve cash up front and then have the benefit of owning equipment you can later sell for a profit.

Rates

Leasing salon equipment usually involves a set monthly rate for as long as 60 months.

Requirements

For financial leases under $75,000, you may not be asked to provide financial statements for your business, but if you want more than that, you may be required to provide statements for your last two years in business. You generally do not need a down payment.

Amounts

Lease-to-own options can go as high as $500,000 in most cases.

Pros & Cons

Leasing equipment you can eventually own gets you the latest technology without a huge upfront payment. You can get approved for a lease even if you have a bankruptcy on your record, which isn’t always the case with business loans. The drawback is that by the time you have paid off the lease, the equipment might be outdated.

Equipment Loans

You can also take out an equipment loan, specifically designed to provide you capital to purchase equipment to run your business.

Rates

Rates can range from 2% (usually an introductory rate or for very high credit scores) up to 20%.

Requirements

Typically, lenders want you to have been in business at least two years, with revenues of $50k or more. You may also need a credit score of 650+.

Amounts

You can secure anywhere from $5,000 to $5 million with an equipment loan.

Pros & Cons

Because your equipment serves as your collateral, you don’t need a cash down payment for an equipment loan. It can be a great tool for building your credit if you pay your installment on time. On the other hand, you may need a higher credit score than with other options mentioned above.

Check out our equipment financing partners below.

TimePayment is an award-winning equipment leasing company that specializes in transactions with a selling price Learn More

View More Offers

Currency Capital is a leading online equipment financing network serving thousands of small- and medium-sized Learn More

How to Qualify for Salon Equipment Financing

While lenders will have their own requirements for financing and leasing programs, you can start with the following.

-Make sure you have an active business license or permit with your state’s Secretary of State. Salons are required to have specific licenses, so make sure you’re compliant.

-Stay on top of both your business and personal credit scores, as they both matter. You’ll need a minimum of 600-650 credit score to qualify.

-Make sure your credit history is spotless. If you have a bankruptcy in the past seven years or unresolved tax liens, you may not qualify for some financing programs.

Is it Possible to Qualify for Salon Equipment Financing with Bad Credit?

It is possible to be approved for a salon equipment small business loan with less than stellar business or personal credit, but know that it may limit your options and get you a higher interest rate.

Generally, it’s better to clean up your credit history or even build it from the start by opening a few business credit cards and paying your bill in full or opening a line of credit with a vendor who will report to credit bureaus before applying for a loan.

How Many Years Can You Finance Salon Equipment?

Again, this will vary from one lending institution to another, but many equipment financing options will let you finance spa, salon, and barber equipment for up to 60 months.

Should You Buy or Lease Salon Equipment?

As mentioned above, leasing spa or hair salon equipment is a great way to get what you need to run your business without a large upfront expense. But weigh the benefits and drawbacks of a lease versus purchase carefully.

Pros of Buying Salon Equipment

Buying equipment means it’s yours to do what you want with. You can sell the equipment and recoup some of your business expenses. Equipment and beauty salon loans make it easy to get what you need even if you don’t have the cash flow to pay for it.

Cons of Buying Salon Equipment

If you’re just starting out, you may not qualify for spa financing. If you have any negative marks on your credit, you may find it hard to get a term loan that doesn’t have astronomical interest rates.

Pros of Renting Salon Equipment

Leasing equipment may not require a cash down payment, which is great on your budget. With leased equipment, you can surrender the equipment when you’ve paid off the equipment lease, or buy it for a low price based on the lease terms.

Cons of Renting Salon Equipment

A salon equipment lease may not help you build your credit scores the way beauty salon loans might. If building your credit is important, this may not be the best small business funding option.

Alternative Financing Options for Salon Equipment

If none of the above equipment financing and leasing options appeal, or if you don’t qualify for them, here are some other traditional and online lenders to consider.

Nav’s Final Word: Salon Equipment Financing

You want to offer your customers the latest salon technology so they can look and feel their best. Taking out a business loan or leasing salon equipment can help you maximize your working capital and keep your business growing.

This article was originally written on June 29, 2020.

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Bad Credit Credit Cards – Finest pupil bank cards for March 2021 | Fintech Zoom

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One of the biggest learning experiences a young person has when it comes to their personal finances is figuring out how to manage their credit cards. This can be a fraught process. First, for someone with no credit, like a student, getting a credit card is easier said than done. Then, once a student has a card, the temptation to overspend can lead to a financial hole — and it can happen fast. Luckily, there are options out there that are good for beginners — almost like cards with training wheels. These are student credit cards.

There are lots of reasons someone might consider a student card. First, being a student comes with a lot of expenses, and even a flush checking account may be no match for the seemingly endless list of books, software and other school supplies needed during a given semester. After all, college and high school students have returned to campus (or their virtual classrooms) for the spring semester already, and while school definitely looks different right now due to the global coronavirus pandemic, that just means that students need supplies beyond the typical notebooks and pens — think top-of-the-line computers, a new desk, and other work-from-home essentials to complete schoolwork.

However, perhaps the most pressing reason to pursue a student credit card is to build credit. After all, it’s hard to get good credit if you don’t already have it. And, if you’re a high school or college student with no credit at all — well, that reflects on a credit report and makes everything twice as difficult when working with a credit bureau.

While some people choose to build credit with a secured credit card — that is, a card where you’ve backed your credit limit with a cash deposit, student credit cards work a bit differently. These cards typically only offer a small credit line, sometimes just a couple hundred bucks. That way, the student can use the card to build credit without the risk of racking up too much credit card debt (which leads to bad credit), while the card issuer hopes that the card holder will transition into full-time employment and will use their card for everyday purchases for years to come.

There are a handful of good student credit cards out there. This list will help you figure out which one is the best student credit card for you.

Best student credit cards

Best overall Best for students without a credit history Best for students who plan to carry a balance Best for students with a co-signer
Discover It Student Chrome Deserve Edu Credit Card Chase Freedom Student Bank of America Travel Rewards
Annual percentage rate (standard / penalty) 17.99% variable, with 0% for the first 6 months / None 18.74% variable / None 14.99% variable / None 14.99% to 22.99% variable
Late payment fee Up to $40 Up to $25 Up to $39 Up to $40
Cash-back reward rate 2% on gas and dining (up to $1,000 in combined purchases each quarter), 1% on all other purchases 1% on all purchases 1% on all purchases; 4% cash back on Lyft until 2022 1.5% on all purchases
Eligibility requirements No credit history required, proof of income required No credit score required; no Social Security number required for international students Co-signers not allowed, proof of income required Co-signers allowed
Annual fee $0 $0 $0 $0

A typical credit card application requires a high credit score (around 650 or so) and at least a few years of credit report history. To get a student credit card, however, you don’t necessarily need either, though some proof of financial experience and responsibility helps when it comes to securing a credit card offer. The card issuer looks at sources of income — even from part-time work or deposits from parents — as well as information about checking and savings accounts to get a sense of an applicant’s saving and spending. Luckily, once a student is able to get a card, simply making everyday purchases is an easy way to build credit (so long as the student is able to pay off their purchases).

In addition to more relaxed eligibility requirements, the best student credit card will offer some of the following features:

  • Special rules for credit newcomers such as minimal late fees and no-penalty APRs
  • Lower credit limits — usually between $500 and $2,000
  • Cashback rewards program on spending
  • A “reasonable” APR — usually between 15 and 20%

We evaluated 19 credit cards marketed specifically to students. We selected four cards that stood out across a range of criteria, including APR, forgiveness for credit mistakes, cash rewards and lenient eligibility requirements. We urge students to consider important factors like interest rate, whether the card has an annual fee and if the card offers a cash advance before they make a decision. Check out our picks below as well as some answers to frequently asked questions about student credit cards at the end of this article. We’ll update this list periodically.

The best student credit card overall

  • Standard APR: 17.99% variable (0% for the first 6 months)
  • Penalty APR: None
  • Late payment fee: Up to $40
  • Annual fee: $0
  • Cash-back rewards: 2% on gas and dining, up to $1,000 in combined purchases each quarter; 1% on all other purchases 
  • Foreign transaction fee: 0%
  • Standout feature: No late fee for first late payment
  • Eligibility requirements: No credit history required, proof of income 

The Discover It Student Chrome offers a winning combination of cash back and other rewards as well as lenient terms for first-time credit card holders. You won’t get dinged by the credit card company for a late payment — at least the first one — or have to deal with an exorbitant penalty APR. And, of course, getting 1 to 2% back in rewards each month is a welcome bonus. Note that Discover offers another similar student credit card, the Discover It Student Cash Back credit card, but the rotating bonus categories make things overcomplicated, especially for first-time cardholders. 

Features and rewards

Most student credit cards offer 1% cash back. The Discover It Student Chrome card bests that with 2% cash back on gas and dining, plus a generous cash-back match at the end of the first year. The match effectively doubles your first year’s bonus rewards, so if you receive $75 in cash-back rewards during the first 12 months, Discover will chip in an additional $75. We also like that the Chrome student credit card incentivizes good grades: You can earn a $20 statement credit for each school year you maintain a GPA of 3.0 or higher. 

Rates and fees 

Discover’s rates and fees are generally lower than competitors’. The APR charged on purchases ranges between 12.99 and 21.99%, and there’s an introductory six-month period with 0% APR. Students with the Discover It Student Chrome also don’t have to worry about a penalty APR, which some issuers will institute if a card holder misses a payment. There’s no late fee for the first late payment, but for the second instance the credit card company charges up to $40, which is comparable to what other cards charge. 

At the moment, most study abroad programs have been put on hold. That noted, the Chrome student credit card has no foreign transaction fees — though Discover isn’t as widely accepted outside of the US as Mastercard and Visa.

Best for students without a credit history

  • Standard APR: 18.74% variable
  • Penalty APR: None
  • Late payment fee: Up to $25
  • Annual fee: $0
  • Cash-back rewards: 1% on all purchases 
  • Foreign transaction fee: 0%
  • Standout feature: Low late payment fee
  • Eligibility requirements: No credit score required; no Social Security number required for international students 

Deserve Edu Mastercard positions itself as an alternative to the traditional banks and credit card issuers, and specializes in credit cards for students and first-timers. And the Deserve Edu student credit card checks many of the boxes: It offers 1% back on all spending, features a relatively low late-payment fee and comes with a flat 18.74% APR. While it offers a lower student rewards rate than others, its relaxed eligibility requirements are well suited for students with a brief or nonexistent credit history or other potentially disqualifying limitation — like not having a Social Security number, if you’re an international student. 

Features and rewards

The Deserve Edu student credit card offers 1% cash back on all purchases, which can be redeemed for statement credits in increments of $25. Card holders also get one year free of Amazon Prime Student — worth around $40 — and up to $600 of credit toward cell phone protection coverage when you pay your monthly bill with it. 

Rates and fees

The 18.74% variable APR is relatively low for a student credit card, and it’s not tied to your credit score, so you know exactly what the APR is at the outset. Rather, the APR is “variable” because it’s tied to the “prime rate” — a benchmark interest rate used by lenders that changes over time. With most other cards, you won’t know the exact APR certain until you’ve been approved, and if you have a limited or nonexistent credit history it could be on the higher end of the range of what the issuer advertises. If you miss a payment, there’s no penalty APR, though you may be charged a late payment fee of $25. (Still, that’s about $15 less than the fee charged by most other student cards.) Deserve doesn’t charge any foreign transaction fees.

Best for students who plan to carry a balance

  • Standard APR: 14.99% variable
  • Penalty APR: None
  • Annual fee: $0
  • Late payment fee: Up to $39
  • Cash-back rewards: 1% on all purchases; 4% cash back on Lyft until 2022
  • Foreign transaction fee: 3%
  • Standout features: Free, unlimited access to credit score; Earn a credit limit increase after making 5 monthly payments on time
  • Eligibility requirements: No co-signers, proof of income

The student version of one of our favorite cash-back credit cards, the Chase Freedom Student credit card has a lot to offer. The 14.99% variable APR is one of the lowest available for student credit cards, and you get a $50 credit when you sign up, a $20 bonus every year and a credit limit increase after five on-time payments.

Features and rewards

Chase offers cardholders free and unlimited access to their credit score, which can be an important tool for those building credit from scratch. The credit limit increase is another nice feature as credit use is a primary factor in a credit score. Most credit experts recommend using less than 30% of your total credit available, so the higher the limit, the easier it is to keep your credit use low.

Its 1% cash back on all purchases is consistent with the category average and the 4% back on Lyft rides is nice (though less practical for many in the coronavirus era). The $50 sign-on bonus can be triggered by making a single purchase in the first three months so you need not worry about hitting a high spending threshold. And the $20 annual reward can be redeemed for five years — as long as your account remains in good standing.

Rates and fees

Every cardholder gets the 14.99% variable APR — so you know what you’re signed up for at the outset. It’s best not to maintain a balance month to month, but if it happens once or twice, the interest will be lower than with other cards.

A few words of caution: This card’s late payment fee can run as high as $39 for a first late payment; most other student cards have a lower penalty or no penalty for first-time offenders; and if you’re planning on studying abroad, this card will subject you to a 3% foreign transaction fee.

Best for students who have a co-signer

  • Standard APR: 14.99% to 22.99% variable
  • Penalty APR: Up to 29.99%
  • Late payment fee: Up to $40
  • Annual fee: $0
  • Cash-back rewards: 1.5% on all purchases
  • Foreign transaction fee: 0%
  • Eligibility requirements: Allows co-signers

Bank of America is one of the few card issuers that allows co-signers, who can be a parent, guardian — or anyone with a good credit score who’s willing to share the legal liability. On the other hand, any late or missed payments or high outstanding balances will also negatively affect the co-signer’s score. 

Features and rewards

This student credit card is essentially the same as Bank of America’s Travel Rewards card, which means it offers higher risks and rewards than most other student cards. You get a higher cash rewards rate — 1.5% back on all purchases — but fewer of the relaxed requirements for credit novices. And points can be redeemed only as statement credits against travel purchases; so, unless 1.5% of your spending is on taxis, Uber or Lyft, flights, baggage fees, hotels, rental cars, buses, trains, amusement parks or campgrounds, this card’s rewards aren’t particularly valuable.

Bank of America will grant you 25,000 points, equivalent to $250, when you sign up if you spend $1,000 during the first three months. That’s a higher threshold than you’ll find with other student cards, but also a higher reward. Bottom line: If you can time your credit card application with a large purchase, it’s worth it.

Rates and fees 

Bank of America offers an introductory 0% APR for the first year and no foreign transaction fees. That being said, this student credit card doesn’t mess around when it comes to penalties: The standard APR runs between 14.99% and 22.99% depending on your credit score, but if you’re late with a payment, you could be hit with the 29.99% penalty APR. That’s exorbitant — and it comes in addition to a $40 late payment fee. Students at risk of paying late should avoid this card at all costs.

What’s the best student credit card right now?

The Discover It Student Chrome is our pick for the best student credit card right now due to its lenient terms for first-time cardholders, including no penalty for the first late payment, and a combination of cash back and other rewards. The Deserve Edu Credit Card is best for students without a credit history, while the Chase Freedom Student is a sound choice for students who plan to carry a balance. If the student has a co-signer, we recommend the Bank of America Travel Rewards card.

How does a student credit card work?

Student credit cards offer those with limited or no credit a way to start building credit and create a credit history. They generally come with lower credit limits than typical credit cards and don’t charge annual fees. And they often have novice-friendly features, including late payment forgiveness, incremental credit limit increases over time and credit education resources. Reward rates may be lower than for standard cash-back and travel credit cards, however, making student credit cards a lower-risk, lower-reward financial tool.

Are secured credit cards a good option for first-time credit card holders?

Student credit cards offer those with limited or no credit a way to start building credit and create a credit history. They generally come with lower credit limits than typical credit cards and don’t charge annual fees. And they often have novice-friendly features, including late payment forgiveness, incremental credit limit increases over time and credit education resources. Reward rates may be lower than for standard cash-back and travel credit cards, however, making student credit cards a lower-risk, lower-reward financial tool.

If you subscribe to only one CNET newsletter, this is it. Get editors’ top picks of the day’s most interesting reviews, news stories and videos.

What do you need to qualify for a student credit card?

Most credit cards require an applicant to have a credit score of at least 650 and a substantial credit history. Student cards don’t. Still, you may need to demonstrate some financial responsibility — including a source of income, even from part-time work or deposits from your parents. The card issuer may also want to see information about your checking and savings accounts to get a sense of your spending habits and confirm that you’ll have sufficient funds to pay the minimum monthly payment. 

How do cash-back rewards work?

For all the cards listed above, “cash back” refers to a statement credit that’s applied to your account to lower your balance. For the Bank of America Travel Rewards card, for example, you can only redeem rewards against travel purchases. But for most other cards, cash rewards can be applied toward a balance regardless of expense type.

Cards we researched

  • CapitalOne Journey Student Rewards
  • Discover It Student Chrome 
  • Discover It Student Cash Back 
  • Deserve EDU Student
  • Bank of America Cash Rewards for Students
  • CapitalOne Secured Mastercard
  • Bank of America Travel Rewards for Students 
  • Citi Rewards + Student
  • OpenSky Secured Visa
  • BankAmericard for Students 
  • StateFarm Student Visa 
  • Wells Fargo Cash Back College 
  • Petal Visa 
  • Chase Freedom Student
  • CapitalOne Platinum
  • Discover It Secured
  • Chase Freedom Unlimited
  • Citi Double Cash Card
  • CapitalOne Quicksilver Cash

Disclaimer: The information included in this article, including program features, program fees and credits available through credit cards to apply to such programs, may change from time to time and are presented without warranty. When evaluating offers, please check the credit card provider’s website and review its terms and conditions for the most current offers and information. Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

The comments on this article are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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Bad Credit Credit Cards – Feds charge four more in alleged $31 million embezzlement scheme preceding 2017 failure of Washington Federal Bank in Bridgeport | Fintech Zoom

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Bad Credit Credit Cards – Feds charge four more in alleged $31 million embezzlement scheme preceding 2017 failure of Washington Federal Bank in Bridgeport

James Crotty, 41, of Tinley Park; Boguslaw Kasprowicz, 63, of Burbank, California; and Miroslaw Krejza, 62, of Chicago, were also charged in Thursday’s 67-page superseding indictment. All four new defendants are scheduled to be arraigned in federal court March 4.

Bad Credit Credit Cards – Feds charge four more in alleged $31 million embezzlement scheme preceding 2017 failure of Washington Federal Bank in Bridgeport

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Complaints of credit report errors have increased during the pandemic. Here’s how to protect yourself.

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Complaints about errors in credit reports have skyrocketed since the COVID-19 pandemic began — and these errors can pose a host of problems for the consumer.

Roseann Palmeiri wanted to borrow money for some home improvement projects. But she was shocked to learn that her credit score had dropped by 200 points.

“I said, ‘How am I going to apply for a loan and get the good interest rates now? I might not even get the loan,’” she says.

Palmeiri says that she disputed a fraudulent charge on her credit card and that it somehow had been reported as a bad debt.

“To drop by almost 200 points? That’s ridiculous. And first of all, you really had no business reporting that until it was resolved,” she says.

The Consumer Financial Protection Bureau (CFPB) says that there were 195,974 complaints about bad information on credit reports last year – almost as many as all other complaints combined.

Palmeiri’s credit card company fixed the mistake. But it is not always that simple.

“There’s more of a chance of bad information being put on your credit report than there is a chance of them fixing it. It’s a mess,” says Ed Mierzwinski, with the U.S. Public Interest Research Group (PIRG).

Mierzwinski says that a mistake on a credit report can have serious consequences.

“If you’ve got a bad credit report and you can’t get it fixed, you’ll either pay more for credit or be behind credit or you could even be denied a job,” he says.

PIRG hopes that under the Biden administration, the CFPB will take a harder line on credit agencies that post bad information. But in the end, it is up to everyone else to make sure their credit report is accurate.

Experts say that people should check their credit reports regularly. They can get a free report once a year from each of the major reporting agencies at annualcreditreport.com. Anyone who sees an error should contact each agency, point out the error and provide evidence.

If the problem isn’t resolved, one may consider taking legal action against both the credit agency and the company that reported the bad information.

“Sometimes you should see an attorney before you write your letter because it may be a complicated matter that you need help trying to figure out how to articulate the information. That’s fine. But legal action can’t be taken until the credit reporting agency and the furnisher has an opportunity to correct the information,” says consumer attorney Craig Kimmel, with the firm Kimmel & Silverman.

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