Smart is the New Sexy: Mistakes to Avoid with Personal Loan Applications and Handling

Mistakes to Avoid with Personal Loan Applications

Personal loans have always had this negative stigma—it is the year 2018! Personal loans are a great and highly available tool that anyone can use to jumpstart their financial success! While lenders are still out there with money to lend out, they don’t just give it anyone with an application.

As information is readily available on the web and through a personal phone call, it is important to understand what you will need to avoid getting rejected from your loan application. Today, we will discuss the mistakes you need to avoid when it comes to your personal loan applications!

Terrible Credit History

If you have a history of defaulting on payments, missing payments on your utilities, and other financial obligations, chances are your credit score is low. When your credit is bad, there is an almost immediate chance of you getting rejected for your personal loan.

Banks and lending institutions will not give more money to a person who has a proven history of financial mismanagement. Let’s say you don’t know if you have bad credit or not, what do you do?

Get your more recent credit report from a credit bureau

If you aren’t familiar with the concept of a credit report, it is a summary of your bill payment history, any loans (past and current) and their status. This will also record your places of employment, any history of lawsuits or arrests and bankruptcies.

There are several choices for a credit bureau that you can approach like Experian or TansUnion. If you haven’t been reading the news lately, it would be in your best interest to avoid Equifax. These institutions are bound by law to provide you with a free copy of your credit report once a year. Once you have your credit report, determine if it’s in good shape. If it is, go ahead with your application.

If your credit score, however, is looking a little worse for wear, it would be in your best interest to get that sorted out. If you aren’t sure how you can go for financial counseling. Doing so will provide you with some clear avenues to pursue in order to rehabilitate your score. This may take time so you may want to focus on that instead of looking to take out a personal loan.

Unstable Income

Lenders only approve loans for individuals who have a proven track record of financial capability. If they see that you do not have a steady source of income, they will decide that you are not worth taking a chance on. When taking out a personal loan, there will be a minimum annual income that you will need to reach. If you aren’t able to do so, there’s a big chance of getting rejected.

Lending institutions will need to see that you’re able to pay back what you’re borrowing. So if you have a history of unstable income, your approval isn’t looking very good.

Unstable Employment History

Lending agencies will always request for copies of your payslips so it’s fairly hard to fake that one. They will also get in touch with your employers in order to fact check you. Lenders value individuals who are able to hold on to one job for several years. This shows the commitment and dedication.

If they see that you’ve hopped from one job to another in a span of a few months, they may start to question your ability to commit. Also, this also suggests that you have unstable income (discussed above). Lenders need to see that you’re able to hold down a job long enough to establish a good record. You also need to have a clear reason for any job transfers or change of careers. If you are not able to do so, they may not look at your application quite as favorably as they would if you had a steady employment history.

Unclear Loan Purpose

One of the first things that they will ask you is what you need the personal loan for. The last thing you want to answer is to “pay off another debt”. That would be like telling people you run a Ponzi scheme and still expecting them to give you money.

A clear reason will enable your lender to check if the amount you’re asking for is suitable for the purpose that you’re aiming to use it for. Depending on the lending agency, they may require to know what you’ll be spending the money on in order to see if you’re a good fit for a secured or unsecured loan. What a lot of people don’t realize is that secured loans can only be used specifically for a set number of assets like cars.

If you want to be approved, have a clear reason for needing the money. That way, they’ll have a better chance of approving your application.

No Assets

Depending on the type of personal loan you’re getting or the amount of the loan itself, the lender (usually banks) will want to see if you have any secured assets. This can be your home or your car. If you do not have either, there is no justifiable reason why they should lend you money.

Lenders are all about calculated risks. They will not risk their collateral for something that could possibly never return. If you do have some assets but they are deemed too low in value, the same thing applies.

Not Reading the Fine Print

If you do get approved, it is important to read all the fine print of your contract. You may not realize that there are details in there that aren’t in your favor like the sneak increase of interest rates (which have been known to happen in lenders that aren’t banks).

It is important to protect yourself by seeing the terms of the loan, the terms of payment, and possible other ramification of getting this personal loan out.

With all this in mind, you’ll have a better idea of what to avoid when applying for your personal loan! Best of luck on your application!


What you ought to know Gold IRA Retirement Plans

Individuals are of the perspective that the main significance of retirement is leaving a wage delivering work because of age variables. Be that as it may, the genuine importance has a much more extensive angle. Despite the fact that customarily we have been of the perspective that if a man gets mature enough to continuing the occupation he needs to get resigned. Professionally it’s not just about age. Numerous different components are just as in charge of retirement. Additionally, retirement is not by any stretch of the imagination about leaving a place of employment either.


Gold IRA PlanWith the current progressions you are presently ready to put in your life after retirement into an entirely unexpected course while as yet procuring a favorable luck to keep carrying on with an upbeat and solid life. To put it plainly, now retirement isn’t about leaving a place of employment, it’s about proceeding onward in a shifting bearing. This is the place retirement contributing and gold IRA retirement plan assume an indispensable part. Individuals are very little acquainted with these two terms. When you achieve your 50s you venture in the retirement zone, which implies after this you might need to resign soon. So instead of stressing on the certainty why not use the retirement arrangement for something that viably bails you out all through your later years.

Individual Retirement Account

With regards to retirement contributing the most ideal approach to handle it is IRA (Individual Retirement Account). Is it safe to say that it isn’t best to use your retirement cash by putting it in a little business or wander that would keep giving you benefits later on? IRAs are unique sparing records for retirement contributing purposes. With different alternatives and numerous advantages IRAs or individual retirement accounts have turned out to be an incredible advantage to the individuals who have picked the way of retirement contributing to make their lives after retirement agreeable, solid and easily running. You might set aside and put resources into different resources, for example, securities, shared subsidizes or stocks. Every sort of IRA (individual retirement account) has its particular attributes, advantages, and punishments.

Amongst all the accessible Individual Retirement Accounts, the Gold IRAs are on the top with a definitive advantages and benefit limits. In recent years individuals lost their advantage towards putting resources into gold as the business sector for the most part stayed stable and there weren’t numerous additions from ventures. Accordingly the gold IRA retirement arrangement was acquainted with hold consideration and build the vacillations for making more chances of expanded benefits.

So how does gold IRA retirement plan work?

The system isn’t quite muddled. Like whatever other speculation you should do nothing more than put your individual retirement account stores towards putting resources into gold resources. The business sectors tend to change in a matter of hours and even minutes. Keep a look available circumstance and likewise offer or buy gold resources. Gold IRA retirement plan is essentially an interest in gold project through you singular retirement account. Along these lines you get the chance to pick up benefits on the restricted assets you have and spend the later years after retirement by getting a charge out of the benefits.

A large number of the IRAs today give the alternative of putting resources into Gold of course. In any case, regardless of the possibility that you have an individual retirement account that doesn’t permit gold venture, there is nothing to stress over. Just exchange your retirement stores from that gold IRA retirement plan to the one would permit you to do as such. It’s much the same as moving of records starting with one bank then onto the next. And afterward you’ll should do nothing more than apply for a Gold IRA and begin gaining benefits

Importance of Finance

Finance is the field of study investments both the assets and the liabilities within a given time with a degrees of business risk experienced. Finance is crucial in the management of the business and aims in valuing the assets according to the risk experienced and their calculated rate of return. It’s grouped into three categories:-

  • Managerial finance It focuses on the assessment rather than the process of managing the business finances. • – Corporate finance

Deals mainly with the monetary decisions that businesses implement and the tools they use to implement them.

  • Personal finance

Financial management aims in saving and aids in spending the monetary resources over time for an individual.

The sources of finance include; loans from banks, investor finances etc.

The importance of finance is crucial and of great importance to the company as it projects how the business is viable in relation to the balancing of the profits and the expenses. The importance are summarized below;

Maintaining the financial records of the business

Finance helps the firm’s management team to maintain the sales figures and the filling records of the spending (expenses) for future reference and also the figures and records are used by other entities department in the firm and also to secure loans from when the lending institutions demand for the financial records to determine if the firm is of sound financial position.

 Planning of the internal financial information

Finance helps the management team of the firm to analyze the plan of the business in terms of spending trends in the firm such as automotive repair, procurement of the firm’s equipment, miscellaneous expenses etc. and if the results are overwhelming the managements takes corrective actions to increase profits by reducing the spending.

Preparation of the financial accounts

Finance helps the accountants in the firm to prepare the profit and loss account and the statement of position intruder to know how the firm in terms of profit or loss and also help the managerial team to make decisions based on the statement of position and statement of performance.

Analyzing the current business position

Finance has helped the management of the business to analyze how the business is doing in terms of operation, financial position and also expenses the business is experiencing using ratio analysis tools.

 Paying the creditors

Finance helps the company to be able to pay back finances that where acquired from long term and short term liability sources such as the banks and also lending institutions. It helps the company to meet this needs in order to secure the collateral that was held by the lenders until the business is able to fulfill the contractual agreement that was made.

Paying the salaries and wages to the employees of the company

Finance helps the company to functionally operate the payroll system to pay out the salaries and wages to its employees to be able to meet their needs to motivate them work harder in the business to improve the financial performance of the business.

In the long run we can see that finance is an important aspect in a business as it aims in maximizing the profits for the business.

The Importance Of Managing Your Own Retirement Funds

One of the worst things that can happen to anyone is having no funds or good financial plans after retiring. This is mainly because in retirement one needs a smooth and consistent source of finances that will help in covering the various bills. This makes it paramount to plan ones retirement funds in a proper manner that will ensure there are no problems especially financial ones after retiring.

One of the things that are becoming very popular is the use of self-administered retirement plans. This means instead of having an institution or a company to plan the retirement funds, people prefer to plan their funds on their own. This is because this has a number of importance and benefits that retired people get to enjoy.

retirement fundOne of the biggest advantages of using a self-administered plan for retirement funds is that one gets to decide what exactly to prioritize. The importance of this is that most institutions and companies that provide retirement plans tend to assume that almost all retired people have the same needs. But the truth is that there are people who need to use more money on certain things that are considered not very important to others. While using a self-administered plan one gets to know what exactly to allocate which money.

Administering one’s retirement fund is also important because one can put the fund into more profitable use. This means that one can take the fund and invest in a profitable venture such as starting a business, which will be bringing in some money. This is an effective ways of securing ones future and also increasing the money one gets in a month.

However, it is paramount to choose the right investment venture because some business might not be that profitable. One should do extensive research prior to deciding what to invest in. it is also advisable to invest everything on one venture in case things do not go as planned. Instead one should take a certain percentage of the retirement fund and invest in different ventures so as to have more chances of getting good returns.

Managing one’s retirement fund is also important because one can be able to handle emergencies conveniently. This is because most institutions do not let retired people withdraw huge percentages of their retirement funds. Those institutions that might allow withdrawal of huge sums usually have long processes. This is not ideal especially while one is faced with an emergency that requires to be financed fast.

However, while using self-administered retirement plans one can access the money at any time and therefore be able to handle even emergencies conveniently. Therefore, managing ones retirement funds is important and comes with several benefits that are not offered by the other options.


While money is understood to be the lifeblood in any business, it is the management of its finances that acts as the nerve center in any business. There are various goals of business finance such as acquiring of stock, acting as working capital, product development, paying off bills among others. How a business chooses to manage these scarce resources will go a long way in determining its profit margins as well as growth and expansion endeavors. The following unique ways present methods in which a business can effectively manage its finances.

  • Manage an elaborate budget.

This may probably be considered a traditional way of handling cash but it the surest and most reliable way of managing finances. It involves having the business draft its needs and allocating certain sums of finances to cater to these business functions. Transparent budgeting guided by informed forecasting will enable a business to utilize allocated funds to ensure that all functions within the branch are well facilitated.

  • Acquire finance handling software.

Currently, most business has adopted different finance handling software with a goal to manage their finances. This software available to business include QuickBooks that serves the accounting needs among others.

  • Introduce mobile or chip payments.

Modern developments have led to the provision of E-wallets among consumers. The ability of a business to tap into this innovation by having consumers pay their bills or buy products will safeguard the business finances as this operation are mostly linked to the bank accounts hence controlling against the physical handling of finances by employees who might diverge it to other uses.

  • Maintain a credit card system.

This system enables the business to capture all finances coming to the business where customers swipe their cards as a payment mode at the point of sale. Care should be taken however when selecting a credit card system to ensure that acquiring of the system detects malicious activity that might otherwise corrupt the proper usage of these systems.

  • Enact thorough bookkeeping practices.

The control of cash inflows and cash outflows is key in business. Business should exercise continuous bookkeeping activity to ensure that its finances are in order. Where this may prove tricky especially to an overwhelmed business person, hiring a professional bookkeeper to access the books will greatly assist in managing business finance.

  • Introduce financial reporting systems.

The introduction of reporting systems within a business will hold accountable the usage of finances in a business over a given period of time In addition, it shows how the business relates with both its shareholders and stakeholders. Moreover, it will ensure that all business principles and procedures are well followed.

In conclusion, focusing on the conventional view of business finances, business owners should ensure that finances propel them towards financial success by enabling them to participate in risks, create new products, capitalize on new or existing business opportunities as well as providing to satisfaction the existing market demand.