Investment – Sun National Bank Center Thu, 17 Nov 2022 19:55:06 +0000 en-US hourly 1 Investment – Sun National Bank Center 32 32 Auto CarMax 2022 financing: review, prices, comparisons Thu, 17 Nov 2022 19:55:06 +0000

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Late fees and variable delivery charges

Regular Annual Percentage Rate (APR)

from 4.00%

CarMax car loan CarMax


Late fees and variable delivery charges

Regular Annual Percentage Rate (APR)

from 4.00%

Regular Annual Percentage Rate (APR)

from 4.00%


Late fees and variable delivery charges

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Advantages and disadvantages of CarMax auto loans

Insider Featured Auto Loans

  • Automatic loan

  • Automatic refinancing

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CarMax is ideal for borrowers who want to complete the car buying process from the comfort of their own home. The company makes it easy for you to choose a car online, finance it, and have it delivered to you.

However, if you don’t want a used car, CarMax isn’t the right choice for you – it doesn’t offer new cars, refinance, or lease buyouts. Additionally, borrowers in nine states will not be able to get a loan from CarMax.

Comparison of car loans CarMax

How CarMax Compares

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Editor’s note


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Regular Annual Percentage Rate (APR)

from 4.00%

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Regular Annual Percentage Rate (APR)

3.90% to 27.90% APR

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Regular Annual Percentage Rate (APR)

Starts at 3.50% APR

Hunt has an undisclosed minimum credit score to apply, while carvana and CarMax do not have a set minimum score that they consider. It may still be worth applying with Carvana and CarMax even if your score is not high.

You can’t buy out your lease or refinance with Chase, and you can only get a used car with Carvana and CarMax.

See our auto loan scoring methodology »

Frequently Asked Questions

CarMax has a A+ rating from the Better Business Bureau, a non-profit organization focused on consumer protection and trust. The BBB rates companies by looking at their responses to consumer complaints, honesty in advertising and transparency in business practices.

CarMax has not been involved in any recent controversies. You can feel comfortable getting a car from CarMax between its excellent BBB rating and its clean history.

It may be easier to get a loan from CarMax than another lender because it is accessible to borrowers with bad credit. That said, you are more likely to qualify for financing if you have a higher credit score.

CarMax offers financing through several different avenues, including CarMax Auto Finance, its captive lender (also known as an in-house lender). The company also partners with certain third-party lenders, including Ally, Huntand Wells Fargo.

Student loan refinance interest rates increase slightly for 5- and 10-year loans Mon, 14 Nov 2022 19:12:33 +0000

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

The latest student loan refinance interest rate trends on the Credible Marketplace, updated weekly. (iStock)

Pricing for Qualified Borrowers using the Credible Marketplace for refinance student loans increased this week for both 10-year fixed-rate loans and 5-year variable-rate loans.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender during the week of November 7, 2022:

  • Rates on 10-year fixed-rate refinance loans averaged 6.07%, down from 5.71% the week before and 3.42% a year ago. Rates for this term hit their lowest point in 2022 so far during the week of January 10, when they were at 3.44%.
  • Rates on 5-year variable rate refinance loans averaged 3.16%, down from 2.95% the previous week and 2.61% a year ago. Rates for this term hit their lowest point in 2022 so far during the week of July 4, when they were at 2.51%.

Weekly Trends in Student Loan Refinance Rates

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

Current Student Loan Refinance Rates by FICO Score

To ease the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least December 31, 2022. As long as this relief is in place, there is little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of low interest rates to refinance their student debt at lower rates.

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

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

If you want refinance with bad credit, you may need to apply with a co-signer. 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 several private lenders at once without affecting your credit score.

How Student Loan Refinance Rates Are Determined

The rates charged by private lenders to refinance student loans depend partly on the economic environment and interest rates, but also on the duration of the loan, the type of loan (fixed or variable rate), creditworthiness the borrower and the lender’s operating costs and profit margin. .

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over Over 5,000 positive reviews on Trustpilot and a TrustScore of 4.7/5.

Are you looking to save money on a car loan? This trick can save you money Wed, 02 Nov 2022 11:00:24 +0000

Image source: Getty Images

It can save you thousands of dollars when buying a car.

Key points

  • There are two ways to get financing for your car: get a loan from the dealer or get outside financing.
  • Many dealerships make most of their money from financing your loan, selling your insurance, warranties, and other services.
  • Dealerships generally mark up the interest rate on the loans they take out. This means that you will end up paying more interest over the life of the loan.

Are you looking for a new or used car? If so, you might be wondering how you can save the most money. You’ve done your research on the car you want, taken it for a test drive, and compared prices so you can negotiate the best deal. While all of these steps are important to take, many buyers overlook this tip that can help you save a lot of money.

You should always go to a dealership with outside financing for your auto loan instead of going through the dealership. Here’s why.

How Car Dealerships Really Make Money

Few people realize that dealerships don’t make the majority of their profits from selling cars. In fact, according to research, dealerships only earn on average about $65 per used car and actually lose about $200 per new car sold! So how do dealerships make money? Their main sources of profit are dealer financing, the sale of extended warranties, gap insurance, additional car add-ons, and other services.

What is Dealer Financing?

Most people don’t have the money to buy a new or used car, so they have to borrow money. Car dealerships will offer you a loan to simplify the process of buying a car. All you have to do is choose the car you want, pay the deposit, fill out the paperwork and the car is yours!

However, many people don’t realize that dealerships usually mark up the interest rate on the loans they take out. This means that you will end up paying more interest over the life of the loan if you go through the dealership. Additionally, if you have bad creditthe interest rate the dealer offers you is likely to be quite high.

A dealer can get 3.5% for a $40,000 car you want to buy. Over five years, that works out to $3,660 in interest. The dealer can then increase the rate to 5%, which equals approximately $5,290. The dealer keeps the difference of $1,630 as profit. This is money that you could possibly keep for yourself by finding outside financing.

How to seek external funding

If you decide to seek external financing, also known as direct lending, for your auto loan, there are a few things you will need to do. First of all, you will have to find a lender. You can use your bank, a credit union, or search online for the best rates. The key is to compare the offers of several lenders at once and choose the one that suits you best.

Once you’ve found a lender, you’ll need to complete an application and provide documentation, such as proof of income and the car you want to buy. Once your application is approved, the lender will send you or the dealer the money which you can then use to pay for your car. Your price will depend on your credit score and other factors. You will generally save more because there is no markup.

If you’re looking to save money on a car loan, seeking external financing is a great option. By doing so, you can avoid the dealer markup and potentially get a lower interest rate, even if you have bad credit. To seek external financing, all you need to do is find a lender and complete an application. You may have to spend more time finding the best financial institution for you compared to getting a loan from the dealership, but it could save you thousands of dollars.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

Alternatives to Bad Loans Fri, 28 Oct 2022 18:44:22 +0000

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When you need cash fast, it can be tempting to consider bad credit loans – personal loans available to people with weak or weak credit histories. These loans are convenient because they are available to most people without requiring a credit check. However, there is a trade-off to these loans: high interest rates that will likely result in more expense for you in the long run.

Before exposing yourself to the risks of bad credit loans, it’s worth exploring your alternatives. If possible, it’s best to exhaust these options before applying for a high-interest loan. The alternatives present better options – lower interest rates, less stringent repayment plans, and less risk of long-term financial hardship.

One of the ways to get better loan terms is to improve your credit score. This opens up the possibility of getting a personal loan with a lower APR and longer repayment period, as well as greater flexibility when it comes to things like your monthly payment date.

This option may be easier said than done, and it takes some time for your actions to reflect in your credit score. But if you have the time and the ability, here are the best ways to boost your credit score fast:

  • Get a secure credit card: If you have money available, consider using it to get a secure credit card. Your own money protects the secured cards, so if you don’t make a payment, you don’t owe interest – you pay it back with your initial deposit. When you make payments on time, they are reported to the credit bureaus and improve your credit score.
  • Pay credit balances: It may seem counter-intuitive to someone who needs money immediately, but paying down your balances to reduce your debt usage has a big impact on your credit score. Pay down your balances strategically by bringing your debt utilization below 30%.
  • Apply for higher credit limits: Another way to improve your debt utilization is to increase your available limit. Contact your credit card issuer and ask if they will increase your credit limit, but be sure to ask if they will need further investigation, as this will temporarily lower your score.
  • Dispute credit history errors: It is quite common for a credit report to contain incorrect information that hurts your score. Request a free credit report, check for any errors, and ask the credit bureau to correct the error.
  • Get a credit for your monthly expenses: Some services like Experian Boost will take your monthly payments into account when calculating your credit score. This includes rent, utilities, and cable bills. Making regular payments on time can help boost your score with these services.

The best way to avoid dependence on bad loans is to generate additional income, if possible. In most cases, this takes both time and effort. However, there are opportunities through the gig economy that could allow you to generate additional income.

If you have a car, consider driving for a company like Uber or Lyft. if you’re crafty, consider starting an Etsy shop. If you have real estate, you can try renting it out to turn it into additional income. Consider donating blood or plasma. Try selling products, furniture, appliances, or clothes that you no longer need.

All of these solutions will take time to start producing returns, so be aware that you may have to wait to see results.

The prospect of asking for money from relatives can be scary, but it can also be the best option for you financially. There is pressure to repay the loan depending on whether you maintain your relationship with the person or people lending to you, but the terms are likely to be much friendlier than a loan for bad credit.

Know that you are not alone in this case too – more than 10% of American adults borrow from relatives. Financial difficulties affect many people, and your friends and family will probably understand your challenges best. Even if they can’t help you directly, they may be able to support you in other ways once they understand your struggle.

Some financial institutions are willing to look beyond credit score and consider other factors beyond credit history when deciding who to lend money to. Online lenders will often review your bank statements and pay stubs to confirm that you have disposable income and will be able to repay the loan, even if your credit score isn’t perfect.

Be sure to look at the terms of these loans, as they may still have high interest rates or restrictions. But these loans are often much better than traditional bad credit loan options.

Credit unions can offer more favorable terms than a traditional lender and sometimes consider factors other than credit score and history when considering a borrower. Loans from credit unions are usually small amounts, but worth considering to cover some of your expenses.

Although not an ideal solution, you may be able to pay off some of your impending bills by getting a credit card. A credit card will carry a higher interest rate than most personal loans. However, the rates can still be significantly better than those offered by lenders who offer bad credit loan options.

If you have a home or property that you’ve made payments on, you can take out a loan or line of credit that lets you turn your equity into cash. In the case of both a home equity loan and one home equity line of credit (HELOC), you will need to refinance your mortgage, but this will allow you to access cash.

A home equity loan will be paid in a lump sum, while HELOC works more like a credit card, giving you cash as needed. You will have to pay the closing costs of the refinance, but it is an option to access the money faster.

At the end of the line

Bad credit loans can offer short-term financial support, but are one of the easiest ways to get trapped in a cycle of debt that can become increasingly difficult to break. If you can avoid this option, you should.

There are ways to get cash that aren’t dependent on your credit score and probably won’t come with the same onerous terms as an average bad credit loan. Be sure to explore your options before looking for a loan for bad credit.

21 options for minority business loans Tue, 25 Oct 2022 10:00:17 +0000

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Since 2007, more than 8 million minority-owned businesses have started small businesses in the United States. In fact, minority small business owners are represented in every industry sector, according to the US Department of Commerce.

Lenders have taken notice. Financing options abound for minority businesses ready.

What defines a minority-owned business?

How can a minority-owned business qualify for a loan? What if the companies are sole proprietors, owned by minority entrepreneurs?

Here is the definition:

A minority-owned business is a business owned or controlled at least 57% by one or more persons belonging to a minority.

What are minority business loans?

This is another simple definition. Minority business owners can get small business financing designed specifically for them. Lenders want to foster the growth of small businesses, especially among minority-owned businesses. Thus, they offer minority-specific business financing.

What are the best business loans for minorities? It depends on the type of loan that best suits your business. We have a list for you.

Best Minority Small Business Loan Options

Minority small business loans are very varied. They vary by type of lender, as well as minimum requirements for financial eligibility and credit score. Some have a maximum loan amount and interest rates may be lower or higher than those currently available from banks and other traditional lenders.

As you can see, minority loans run the gamut in the lending world. They include small business start-up loans, online small business loans, small business loan programs, nonprofit third-party lenders, and even business grants.

No matter what type of minority business venture you are looking to finance, you will find the right option for you. We have included the links so that you can easily further your research.

1. SBA 7(a) Loan Program

The Small Business Administration has long been the go-to for small businesses seeking loans, especially for working capital. The SBA 7(a) Loan Program Perfect for moderate income business owners, whether or not they are minority business owners.

2. SBA 8(a) Business Development Program

Minority-owned small businesses may find a good fit with this small business administration program. The SBA 8(a) Business Development Program seeks to promote underserved business owners, including minority-owned businesses. SBA loans have competitive interest rates and are a great way to build business credit.

3. Community Development Financial Institutions — Best for Bad Credit

Community Development Financial Institutions (CDFI) are some of the best small business loans for minorities and other underserved business owners. CDFIs are best for those with low personal net worth and/or bad credit.

4. Accion USA – Microcredit Program

Minority-owned businesses can turn to a microcredit program such as the one offered by Action USA. A microloan can be a small sum of money, with the loan proceeds supporting a business idea.

5. SBA Community Advantage Loans:

Underserved communities in underserved markets are at the center of SBA Community Advantage loans.

6. Fundbox — Loans for Minority Startups

Box is the site for minority business owners looking to fund a startup.

7. OnDeck – Online Term Loans

If you meet the minimum personal credit score requirement, you should consider a term loan from On the bridgewhich aims to finance minority-owned small businesses.

8. SBA Microcredit Program

Again, the Small Business Administration has long since set the standard. The SBA Microcredit is a good choice for an eligible small business owner.

9. SBA Express Loan

Apparently, this small business loan from the SBA is in the fast lane.

10. USDA Commercial Loans

The USDA seeks to fund small businesses operating or seeking to operate in rural communities. Loan applications must be made by USDA desks.

11. National Funding – Working Capital Loans

If your small business is already in operation and you need a loan for a special project or expansion, try National funding.

12. Business Consortium Fund Loan

The Loan from the business consortium fund can be a source of venture capital funds as a group of business owners seek to build a diversified business.

13. Union Bank Business Diversity Loan Program

Some banks and credit unions offer loans aimed at minority applicants. The Union Bank Business Diversity Loan Program is one of the main sources for minority business owners.

14. Non-profit organizations

If you’re a minority-owned nonprofit, one of your best bets for a loan is a Community Development Financial Institution, or CDFI (see #3 above).

15. SBA Patriot Express Loan Program – Startup Extensions

If your small business start-up is ready to grow, check out the Patriot Express Small Business Administration Loan Program. This SBA program has already lent more than $633 million to support startup expansion.

16. Business Center for New Americans

It is a community development financial institution that focuses on lending to minority business owners who are newcomers to the United States. The Business Center for New Americans strives to create community wealth.

17. Backstage Capital

It seems, the Behind the scenes capital the minority business loan focuses on small businesses involved in the arts.

18. National African American Small Business Loan Fund

Minority-owned entrepreneurs involved in Black-owned businesses should approach the National African American Small Business Loan Fund. Funds are available through the National Black Chamber of Commerce.

19. Wells Fargo Community Development Banking and Lending Division

Wells Fargo Community Development Banking and Lending Division focuses on commercial real estate loans.

20. Bank of America’s Merrill Lynch Entrepreneurial Finance Group

The Bank of America Merrill Lynch program focuses on entrepreneurs.

21. Microcredit business loans from online lenders

Online lenders can offer microloans to minority owners. Lenders include Kiva, Lift Fund, Grameen and others.

Other Resources for Minority Business Owners

Minority businesses may also seek grants or other funding from agencies. Keep in mind that it’s not free money, but the conditions are generally generous.

Small Business Grants

Small business grants are often transfer funds. For example, a local entity such as a city or a college receives a government grant. The funds are passed on to local small businesses.

This is the basis of how small minority business grants are obtained through the USDA Rural Business Development Grant (RBDG) program. You can apply for loan funds and get technical assistance from your local USDA office.

Minority Business Development Agency

There are a few steps to apply for a government grant through this Minority Business Development Agency program. For example, you need to create an account on and you will need an EIN to create an account. Once you have done this, you will be able to keep an eye on available grants.

Small Business Development Centers

Small Business Development Centers can be established through the Small Business Administration and/or local universities. Small business owners can earn money by joining the center.

Image: Envato Elements

Banks brace for consumers unable to repay loans | Arena Fri, 21 Oct 2022 17:59:48 +0000

Banks fear consumers will default on loans and credit card payments.

Banks are bolstering their provisions against credit losses, fearing that consumers may late pay or repay their loans and credit card bills.

The fears of a recession continue to rise as interest rates have risen rapidly. The Federal Reserve, which has raised interest rates by 3 percentage points since March, is expected to raise rates by 0.75 percentage points in November and possibly 0.5 or even 0.75 points more in December.

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Banks brace as Main Street has been hammered by inflation; combined with rising interest rates, consumers may find it difficult to repay their loans.

Higher interest rates result in more of a payment being allocated to interest instead of the principal amount borrowed.

Consumers have started to use their credit card more often to make purchases. Delinquency rates increased to 1.57% and average balances per consumer increased to $5,270. According data from credit rating company Transunion.

Delinquencies in credit card payments declined at the start of the pandemic, but in the fourth quarter of 2021 consumers reverted to past habits.

Consumers in the study group made increasingly smaller payments, showing that “the deterioration in consumer liquidity that ultimately fell more than 90 days late occurred as early as 9 to 12 months before a serious failure”.

The study tracked 5.9 million consumers and their ability to fund their payments from Q3 2019 to Q4 2021.

American Express sets aside more

In its third quarter earnings report, American Express (AXP) – Get the American Express company report said it set aside more funds for bad debts than expected, and the financial services giant reported rising charge rates.

The company said its provision for credit losses were $778 million, including a $387 million increase in its reserves, compared to a release of reserves of $393 million in 2021.

American Express said the reserve increase resulted from increased spending in its card business, but also to prepare for slower growth in the global economy.

“Our credit metrics have also remained strong even as we steadily rebuild loan balances, with defaults and write-offs continuing to be low,” CEO Stephen Squeri said in a statement.

“We have not seen any changes in our customers’ consumption behaviors, but we are aware of the mixed signals in the broader economy and have plans in place to pivot if the operating environment changes dramatically, as we have done in the past.”

Auto lenders expect late payments

Allied Financial (ALLY) – Get the report from Ally Financial online-only bank and lender, reported both lower earnings and higher-than-expected bad debt write-offs.

The bank said its share of retail loans and net write-offs doubled to 1.05% from 0.54% in the second quarter. The figure was 0.27% in the third quarter of 2021.

On October 19, Ally said he expected his total loss rate over the cycle to be between 1.4% and 1.6% and near the upper end.

During Ally’s earnings call. CEO Jeffrey Brown described the macro situation as a “pretty fluid environment.”

Auto loans are a metric that financial analysts often use to gauge consumers’ likelihood of paying off a debt, because repossession of cars can occur within 90 days of nonpayment.

The steady rise in car prices, especially during the pandemic, has pushed monthly payments up to $700 due to consumers seeking “ever larger and more expensive vehicles,” Greg McBride, chief financial analyst at Bankrate, the New York-based financial data firm, told TheStreet.

Consumers paying off the principal on their auto loans — which these days are often six- to seven-year loans — result in “significantly less equity to use as a down payment on the next vehicle,” he said.

Ally’s average auto loan returned 7.29% in Q3 2022, compared to 6.62% in Q3 2021.

Another great auto lender is Capital One (COF) – Get the report from Capital One Financial Companywhich publishes its earnings on October 27.

Other banks added to provisions

Some banks fare better because their consumer loan approval standards are much stricter.

Bank of America (BAC) – Get the Bank of America Corporation report has maintained its more conservative lending standards as its appetite is smaller than other Wall Street banks like Goldman Sachs or JPMorgan Chase.

Bank of America reported its percentage of non-performing loans – loans that do not earn interest – at just 0.39%.

Consumers returned to their old payment habits and used credit cards more often to make purchases. Bank of America said its loan balances rose 12% year over year thanks to more business loans and consumers using their credit cards more.

Even though the bank is more disciplined following the Great Recession of 2007 to 2009, the bank added $900 million to its provision for credit losses.

“Our U.S. consumer customers remained resilient with solid, albeit slower-growing, spending levels and still maintained high deposit amounts,” said Brian Moynihan, chief executive of Bank of America.

by Goldman Sachs Marcus consumer line of business, launched in 2016, did not contribute significantly to its bottom line.

The consumer business, intended to attract Main Street, and its wealth management operations will merge with its asset management division as part of Goldman’s plan to downsize to three units.

Goldman Sachs has attracted about 13 million clients with Marcus and racked up more than $100 billion in deposits, but its losses are expected to total at least $1.2 billion. Goldman Sachs expects Marcus to be profitable from 2022.

Citigroup (VS) – Get the report from Citigroup Inc. reported third-quarter profits fell 25% as it increased its provisions for credit losses while investment banking profits weakened.

Lower earnings were partly due to higher loan loss reserves. Citigroup increased its provision for credit losses by a net $370 million in the quarter, compared with a release of more than $1 billion in the year-ago period. The total provision for credit losses for the quarter was $1.37 billion.

New Alternative No Credit Necessary Home Loan Financing with cost rates starting at 1% per month and terms up to 10 years Sat, 15 Oct 2022 15:29:00 +0000

The reporter for this article is Adam Cox, from Cox Business News, Adam studied at both Harvard Business School and Cornell Law and now enjoys writing Business News part-time

Author Adam Cox at the beach with a puppy who is a 12-pound pug named Cindy Crawford (after the model) after recently graduating from Harvard Business School, but before starting law school business at Cornell

Author Adam Cox at the beach with his pug puppy named Cindy Crawford after recently graduating from Harvard Business School but before starting business law at Cornell

New financing program announced for real estate with no credit and no income required, this program can close in 10 to 14 days with a fee of 1% per month often

This no credit home loan alternative is a great option for homeowners with bad credit and HIGH LTVs who need money fast and don’t want to move or otherwise vacate their property.

— Adam Cox from the Business Secured Finance website

OKLAHOMA CITY, ESTADOS UNIDOS, October 15, 2022 / — Interest rates are skyrocketing and banks have tightened their belts on their loan books, leaving more Americans than ever shocked by sky-high interest rates and, worse, by the absolute decline in their loan applications to buy or refinance real estate.

That’s where this new program from a popular .org website comes in. This new financing program puts money in the hands of many homeowners who have recently tried to get financing just to be told no!

For homeowners who need money now or very soon, there are few options if they have bad credit, no credit, tax issues, or UCC liens, and most options available to them. granted do not allow them to take advantage of the most valuable asset, their real estate. That’s where this new program from GuaranteedBusinessFunding comes in. The new business secured finance website program allows anyone who owns real estate to get cash at an effective cost of 1% per month for up to 10 years.

How is it possible to get Quick real estate financingit is also a Guaranteed real estate financing option, where there are still some, also has the advantage of being a no credit required Real estate financing transaction? Well that’s with the new sale and leaseback, which is a real estate sale and leaseback with some really cool twists, first you can possibly get a 10 year option to buy the property back up to 25% off less than its estimated value at the time the transaction took place. You can also get a low cost on your leaseback, which is often an immediate effective cost of just 1% per month. You also have plenty of time to pay, up to a 10 year sale-leaseback period, during this period you can buy out the property, and most sale-leasebacks offer the option to buy out the property at a discount of up to up to 25% based on original appraised values ​​of the property during that 10 year period. This program also closes quickly, you can complete that real estate transaction in as little as 10-14 days. However, this program is best for those with bad credit or no credit, because if you have good credit, an SBA loan would be a better value. Also, it is important to note that this program requires significant equity, with a minimum equity of 50% LTV in real estate to qualify for what is a sale-leaseback on the real estate you own and want. continue to live or use. It is also very important to understand that a leaseback is not a loan, you are actually selling the property and because it is a real estate sale your credit rating does not matter. . However, there is a big advantage because this sale-leaseback program offers owners benefits that other programs do not, most importantly the ability to eventually redeem the property within ten years for a cost of up to 25% less than the original appraised value of the property. There are some restrictions to this, and this option may not be available in all states, so you want to check when applying if it’s offered in your area and your exact circumstances, but for the most part, everyone with an LTV of 50% or better will qualify.

The reporter for this article is Adam Cox of Cox Business News, a native of Oklahoma and a frequent traveler who has lived in Paris, Berlin, Rio Janeiro, Miami and Los Angeles, in addition to having a certification in alternative investments from Harvard Business School, Adam Cox is also studying business law through Cornell Law School.

adam helmsman
guaranteed business financing
+1 310-492-3704
write to us here

Learn about no-credit-needed real estate financing options in this video from Guaranteed Business Funding

TrueFi’s $4M Bad Debt in Limbo Shows the Risk of Unsecured Crypto Lending Thu, 13 Oct 2022 15:09:37 +0000

The Crypto Bear Market Teaches Still-Fedgling Decentralized Finance (Challenge) that banking can be a tough business.

On October 9, TrueFi, a DeFi protocol where institutional investors can take out collateral-free loans, Posted a “notice of default” for the first time since its launch in 2020. The borrower was Blockwater, a Korean crypto investment firm, which allegedly defaulted on a $3.4 million loan payment.

And that’s not the only troublesome loan on the protocol’s balance sheet. On the same day, TrueFi officials warned in a Twitter post that another borrower, Invictus Capital, may default on $1 million loan due Oct. 30; Invictus filed for voluntary liquidation earlier this summer.

TrueFi is already dealing with the fallout from news last month that crypto market maker Wintermute fell into dire financial straits after this lost $160 million in a hack. Wintermute is the largest borrower on TrueFi with $92 million in debt at press time, due to mature Oct. 15. On Sept. 21, TrueFi said its “credit team has had several constructive discussions” with Wintermute, and that it may to find a short-term loan if necessary.

Unlike DeFi protocols like Aave or Maker – where loans are collateralized by more assets than the value of the loan and default results in automatic liquidation of collateral – lenders on TrueFi have no choice but to trust due diligence protocol on borrowers who take out unsecured loans. loans, because there is no collateral to seize in the event of default.

“It’s not too different from the centralized model,” Dustin Teander, analyst at crypto-intelligence platform Messari, told CoinDesk. “You kind of have to trust people.”

TrueFi said its credit group “believes that the loan portfolio continues to remain in a good position”. But the recent revelations call into question the sustainability of the under-collateralized crypto lending business model and its level of decentralization. Borrowers and loans once deemed safe may be riskier than previously thought.

Bad Crypto Loans

Decentralized finance is a new concept – made possible by rapidly developing blockchain technology – which attempts to create a banking system without the need for bureaucracy and trust in intermediaries by deploying computer-coded smart contracts.

This year, automated DeFi lending protocols, including Maker and Aave, have stood out by weathering the crypto market crash – although several centralized crypto lenders, such as Celsius Network and Voyager Digital, became insolvent after making risky loans with customer deposits to crypto companies. DeFi platforms’ requirement for sufficient collateral has proven crucial in their ability to avoid losses.

TrueFi is one of the most prominent practitioners of under-collateralized lending in DeFi. The protocol, backed by major crypto investors like Andreessen Horowitz (a16z) and Alameda Research, creates lending pools where any investor can deposit crypto to earn yield; professional investors – seemingly reputable crypto firms – make up the bulk of borrowers; they can contract loans, at interest.

These loans are unsecured, meaning borrowers do not pledge any of their own assets to secure the loan. The likelihood of the loan being repaid is based on protocol review of borrowers’ creditworthiness – essentially an article of faith.

Therefore, potential borrowers must go through TrueFi’s credit and know-your-customer (KYC) checks and meet capital requirements to apply for a loan. Those who hold TRUthe platform’s governance token, vote to approve or deny the application.

“Defaults are the normal course for this asset class and are critically important in refining risk parameters and pricing over time,” contributor Roshan Dharia, head of lending at Archblock, told CoinDesk. principal of TrueFi who oversees borrower relations on the protocol. “We have historically focused on borrower counterparty risk, asset mix and liquidity profile. These elements of due diligence remain the highest priority as we face continued macro headwinds and a extended bear market.”

TRU’s price has fallen 15% in digital asset markets since Blockwater’s default, although the decline was mostly in sync with a pullback in broader crypto markets. Currently, the token is trading at 4.4 cents, near an all-time low and down 90% in the past year, according to Data by crypto price tracker CoinGecko.

One-stop solutions for DeFi issues

Under-collateralized lenders like TrueFi provided loans when crypto prices and yields were high; it’s a bit like when subprime mortgage lenders issued heaps of loans during the house price boom of the mid-2000s – just before the housing market crashed.

Borrowing has declined on TrueFi over the past year. (Token Terminal)

Knowing the bear market for the first time, these crypto lenders have had to adapt to a new reality, where returns are lower but with greater perceived risks. Returns in Crypto Lending depend on trading volumes rather than central bank-set risks and interest rates, and trading volumes on exchanges declined after many traders exited the market.

“It’s really hard to make long-term loans in a volatile market and expect constant repayment,” said Teander de Messari. “I think the under-collateralized lending model is going to stay,” but “people need to improve risk pricing.”

TrueFi, in anticipation of a non-zero amount of defaults, has incorporated “Default Protection” as backup insurance for lenders. The protocol slashes up to 10% of all staked (locked) TRU tokens to compensate affected lenders.

Default protection, however, currently stands at $1.36 million, TrueFi’s dashboard shows. This is only about a third of the bad debt outstanding on the platform, which is not enough to reassure lenders.

The process isn’t automatic, and the Blockwater loan resolution is “working its way through internal checks,” Michael Bland, Archblock’s senior counsel, told CoinDesk.

Lenders seeking to fully recover their assets are left with a traditional, not at all automated, remedy – hoping that the protocol can negotiate with borrowers to restructure and pay off the bad debt or go to court to liquidate the assets in order to recover them. Legal fees can add up.

According to a TrueFi blog post on Blockwater’s debt default notice, “a possible court-supervised administrative proceeding would lead to a better outcome for stakeholders given the complexity of the sudden insolvency.”

Possible loan losses

If history is any indication, depositors in the TrueFi lending pool could face losses.

Maple Finance, a rival under-collateralized DeFi lending protocol, had signaled on June 21 that it may face short-term liquidity issues and have insufficient cash after Babel Finance, a crypto credit company, became insolvent and defaulted on a $10 million loan. After liquidate the loandepositors in the loan pool suffered losses of $7.9 million, representing a 3.2% discount on the pool’s total deposits of $244 million.

TrueFi’s bad debt of $4 million represents a fraction of outstanding loans of $117 million. What may worry lenders is that the bad debts of Blockwater and Invictus both come from the same loan pool potentially non-performing loans represent almost half of the pool’s $8.4 million in assets.

The TrueFi credit team has been added in a Tweeter that “following active negotiations, the expected recovery value will be maximized on these distressed loans”.

What comes next is that the TRU token holders, who govern the protocol, discuss and vote on how to proceed with asset recovery to mitigate the blow to lenders affected by the default.

How long that might take and how many assets might be recovered remains an open question.

Consumer Alert: Rochester Area Businesses Offering High Interest Loans. Is the interest rate on your loan 189%? Thu, 06 Oct 2022 00:18:26 +0000

ROCHESTER, NY This consumer alert concerns a serious matter that we want you to consider.

Would you take out a loan if you knew the interest rate was 189%? For most of us, the answer is a resounding no. But I learned that these types of loans are offered here in Rochester. You might think it’s illegal.

After all, New York is a state that has a number of consumer protection laws in place. And loans are no exception. New York caps the interest rate on small installment loans at 25%. So companies are doing what consumer advocates call bank lease loans with rates as high as 189%.

The National Consumer Law Center is one of many consumer advocacy groups calling rent-a-bank loans predatory. It was one of several consumer advocacy organizations that recently sent letters to businesses across the country urging them to “stop offering loans through predatory lenders.” Easy financing and Transportation Alliance Bank (TAB Bank).

Easypay Finance transfers its loans through an out-of-state bank called Transportation Alliance Bank (TAB) of Utah, which is not subject to our state’s lending limits. It then offers its financing services to auto repair shops in our region. But consumer advocates say these loans are often extortionate with interest rates as high as 189%.

Let’s say you’re driving and your car stops. You learn you’ve blown a head gasket, a repair that will cost you $2,000. You deposit $500 and the auto repair shop offers you a loan for the remaining $1,500 to be paid over 12 months.

But the Consumer Law Center maintains that Easypay does not disclose that the loan is at an interest rate of 189%. At this rate, your loan repayments are approximately $293. By the time you pay for this repair, you will have paid interest of $2,016. And the total cost would be around $3,516, more than double the original loan amount.

While businesses across the country received the letters months ago, according to Easypay’s website, the loans are still being used by thousands of businesses, including auto repair shops in the Rochester area. . The site presents 34 auto repair companies in our region that use Easypay financing. All are under Monro inc. umbrella: Monro Auto Service, Mister Tire and Tire Choice Auto Service.

I contacted the executives of Monro Inc. as well as Easypay. Nobody from Monro answered calls and emails, but Easypay people got back to me promptly. A spokesperson disputes the claim that their lending practices are predatory and they say it is often the only option available to many.

“Many Americans are being left behind by the traditional banking and credit system. EasyPay facilitates financing options to ensure that these consumers have a reliable and secure choice to access otherwise unavailable credit for urgent needs and discretionary purposes. Through a transparent process, we offer a range of credit levels based on the borrower’s credit profile, with an interest repayment program designed to encourage repayment. Our products are offered to eligible consumers in accordance with applicable federal and state laws. – EasyPay financing

While consumer advocates say Rent-a-Bank loans are friendlier than payday loans, they insist there are better options for those with no credit or bad credit. credit. CNBC, The bank rateand nerdwallet all have a number of suggestions.

Bad credit or no credit: which is better? Wed, 28 Sep 2022 04:12:00 +0000

As a general rule, having no credit is better than having bad credit, although both can hold you back. People without a credit history may have difficulty getting approved today’s best credit cardsfor example, while people with bad credit may find it difficult to apply for credit, rent an apartment and more.

Fortunately, there is a way out. Whether you’re new to credit or have made a few financial mistakes in the past, the answer is simple: learn what it takes to build your credit score and start making your way to the benefits of good credit.

Here’s what you need to know about your situation and how to improve it.

No credit history

If you have no credit history, your credit score is not zero. Instead, it is non-existent.

How does it hurt you

Lenders rate people based on how they have used credit in the past. Having an empty credit report without any proof of your borrowing history makes you appear riskier to lenders. This could increase your chances of being denied a credit card or loan.

However, there are many credit cards designed for people who are new to credit, including student credit cards and credit cards for people with no credit history.

How to improve it

You can’t build a credit score until you start doing the kinds of things that show up on a credit report, like opening a credit card or signing up for a service that reports your rent and bill payment history.

If you want to start building a positive credit history, you need to start taking financial actions that are reported to the three major credit bureaus (, [hotlink ignore=true]Experian and TransUnion). Many people start their credit history by getting a credit card for the first time. Other people start their credit history with a car loan or a student loan, which may require a co-signer if you have no credit history.

bad credit

What does it mean to have a bad credit score? According to the FICO scoring model, people with bad credit have scores between 300 and 579. Get your score between 580 and 669 and you will fall into the fair credit range; raise your score beyond 670 and you will finally have good credit.

The VantageScore Model works similarly. People with very poor credit have a VantageScore between 300 and 499, people with poor credit have a score between 500 and 600, people with fair credit have scores between 601 and 660, and good credit scores between credit start at 661.

How does it hurt you

Financial institutions do not like to lend to consumers with bad credit. People who have made credit mistakes in the past are considered riskier than consumers with better credit histories. That’s why it’s often difficult to get approved for new credit if you have bad credit, and why credit issuers charge people with bad credit higher interest rates. It’s also why landlords, mortgage originators, car dealerships, and even potential employers are sometimes hesitant to work with people with low credit ratings.

How to improve it

In most cases, bad credit scores indicate past credit mistakes, like missing credit card payments or not paying your debt. In some cases, people receive bad credit scores after being victims of identity theft or other types of credit card fraud. Either way, it’s your job to figure out how to fix the problem, because bad credit can limit access to things you might want in the future, like a mortgage or a car.

If you want to improve a bad credit rating, consider applying for a credit card designed for people with bad credit. From there, adopt responsible credit habits, such as making on-time payments each month, and see if you can push your credit score into a better range.

Why having bad credit is worse than having no credit

If you have no credit, there is very little or no evidence to indicate what type of borrower you will be. On the other hand, if you have bad credit, lenders have concrete evidence (like late payments or bankruptcy) that it is riskier to lend.

A bad credit score has many negative effects. Some lenders may deny your credit applications. And if you’re approved for a credit card or a loan, you’ll likely have to pay higher interest rates. Bad credit could even affect your ability to rent an apartment or qualify for a job.

Having no credit exposes you to many of the same negative effects, but someone with no credit can often establish good credit fairly quickly. Since you don’t have to worry about a credit report full of disparaging notes, establishing good credit can be as simple as opening a starter credit card and prove to lenders that you can use credit responsibly.

7 tips to build your credit score

Do you want to build your credit as quickly as possible? Here are seven tips to help you improve your credit score, whether you’re starting from scratch or turning a bad credit score into a better one.

1. Check your credit report

If you want to build good credit, you should get into the habit of check your credit score regularly and you should also review your credit reports. Why? Because the three credit reports created by Equifax, Experian and TransUnion are the documents on which your credit score is based. By regularly reviewing your credit reports, you will know what information is being reported to FICO and VantageScore, and you will know if you need to dispute any errors it could hurt your credit score.

Many credit issuers offer free credit monitoring services which follow the evolution of your credit score and your credit report. You can also use to get free copies of each of your credit reports. The more you know about what goes into your credit rating, the better prepared you will be to improve it!

2. Become an authorized user

If you can’t get a line of credit on your own, consider becoming a Authorized user on someone else’s credit card. An authorized user can make purchases on another person’s line of credit without incurring the bills. In most cases, any activity on the credit account – one-time payments, for example – is also added to the authorized user’s credit report.

Many parents add their teens as authorized users to help their kids build credit early. If you haven’t established a credit history yet, becoming an authorized user is a great way to start.

3. Get a secure credit card

Another good way to establish your credit score is to open a secure credit card. These cards offer a small line of credit in exchange for a small security deposit and, more importantly, allow you to prove that you can handle credit responsibly.

If you adopt good financial habits, such as paying your bills on time and keeping your balances low, your credit issuer will usually refund your security deposit after a designated period of time. They can even graduate to an unsecured credit card. Plus, your responsible credit habits will show up on your credit report and help boost your credit score.

4. Make sure your invoices are declared

People with no credit or with a limited credit history can benefit from services that report monthly bill payments to major credit bureaus. Experian Boost, for example, adds your phone, utility, and streaming service bill payments to your Experian credit file. Read our Guide to Experian Boost to learn more.

5. Pay your bills on time

The best way to get credit is to pay your bills on time, every time. Your payment history accounts for 35% of your FICO credit score and just one missed payment can have serious negative effects on your credit.

If you want to boost your credit score, try paying off as many of your statement balance available every month. But even if you can only afford to do the minimum paymentmake sure you do it on time.

6. Keep your credit card balances low

In the FICO credit score model, 30% of your score comes from the amount of money you owe, often called your credit utilization rate. The lower your credit card balance, the better. Max out your credit card, on the other hand, and your credit score may drop.

Some people may wonder if put a big purchase on your credit card will hurt their credit score. Using a lot of your available credit on a single purchase could temporarily lower your credit score, but don’t worry. As soon as you start paying off your balance, your credit score is likely to improve.

7. Avoid asking for too many new credits at once

As your credit score increases, you may be tempted to apply for new credit cards. Unfortunately, applying for too much new credit at once could wipe out your credit gains. Ten percent of your FICO credit score is based on recent credit applicationsand having too many new credit applications on your credit report could hurt your credit score.

How long should I wait between credit applications? In general, it’s a good idea to wait at least 90 days. It’s even better if you can wait a full six months.

The bottom line

Is there no better credit than bad credit? Yes, but none of these situations are good for you in the long run. Knowing how to build your credit can help you overcome the obstacles of having no credit history or a low credit score.

Whether you’re applying for a starter credit card as a way to build credit history or using a secured credit card to rebuild your credit, be sure to adopt responsible credit habits. Make all your payments on time, keep your balances low, and avoid asking for too much new credit at once. Track your credit score as it grows and get ready to enjoy all the financial benefits that good credit can offer.

EDITORIAL DISCLOSURE: Any advice, opinions, or rankings contained in this article are solely those of Fortune Recommends™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.