When you go to a payday loan store, you of course are trapped into getting whatever rate they give you.  The store knows this and knows of course that you are in desperate need of money so they often have rates that are much higher than online lenders.  So if you got a computer and I am sure you do if you are reading this blog, then get an online quote from at least 3 different loan providers.  There are many payday loan lenders on the Internet, with each one serving one or more states, and their rates and terms and conditions vary greatly so it’s crucial to check several rates.  

Each payday loan company has various requirements on getting a loan including documents that prove employment and a valid bank account in the borrowers name while other lenders require very little information.  Some payday loans online can even be granted without faxing any information to the lender.  This type of cash loan is known as a no-fax or faxless loan.  

If you are dying for cash because your toilet just wont flush and it is causing quite the stink in the house, then a faxless pay day loan is your best friend to get that plumber over to fix the problem.  So more often than not when you need the cheapest payday loan, you will find it online.  Always, always read the fine print of any loan and make sure you have a structured plan to pay back the loan.  Be smart with your money and use credit wisely.

 Yes we are in volatile economic times of late, with the threat of inflation and a possible Government shut down looming over the credit markets like a dark cloud.  This uncertainty has caused a near term spike in the mortgage rates, but what is the longer term outlook for 2011 and into 2012?    As economic growth surges ahead, so does the corresponding rate of inflation which is almost always a sign of higher interest rates to come.   So how high will mortgage home loan rates go in 2011 is anyone’s guess but if you are thinking of re-financing your home, now may be the ”last dance” so to speak for low home rates. 

Although current inflation rates stand at a modest 2.2% many economists are predicting rapid rates of inflation in the second half of 2011 and into 2012.  So if the inflation rate surges ahead to 4% annualized then we will probably see mortgage rates near 5.5% in the second half on 2011.   So now may be one of the last opportunities to lock in a low mortgage rate if you are purchasing a home or to get a refinance rate under 5% which is still an extremely attractive rate.  If you have good credit then there are many lenders out there who want your business. 

So dont hesitate if you are thinking of refinancing your home and always shop around for the best available rate.

Capital One has traditionally not been known for its low rate credit cards but the Platinum Prestige card is changing that in a big way.  This card has not only a very attractive APR but several features that make it one of the best credit cards on the market today.  Lets start with the introductory rate of only 0% on purchases and balance transfers until June of 2012.  Yes that is over a year you can enjoy the advantages of a credit card with absolutely no interest cost.  It gets even better:  this Capital One card also comes with no annual fee,  warranty coverage on purchases and insurance on car rentals.  After the introductory rate expires, the Platinum Prestige card sets to a low interest rate of between 10.90% and 18.90 percent depending on your credit.   

The Prestige card from Capital One is one of the best low rate credit cards on the market.  Apply today and lock in your low rate.

So what exactly is a charge card, and does it make any sense to use one instead of a credit card?  A Charge Card is essentially a short term loan given by the card issuer that requires you to pay the bill in full monthly, as opposed to a credit card that accrues interest on any amount unpaid in the billing cycle.   The main drawback of a charge card is there is often an expensive annual fee imposed and if you get into a financial emergency, you are still required to pay off the bill in full at the end of the billing cycle.  The major advantage of a charge card is the many benefits the card offers, including discounts on many hotels and popular online shopping sites.    

American Express is by far the leading issuer of Charge cards and has a variety of different programs for just about every type of consumer, from college students to multi – millionaires.  The annual fees on AMEX charge cards range from about $100 a month to over $2,500 for the premium Black card – which is the card of choice for the business elite. 

So does a charge card make sense for you?  Yes if you are a big spender, travel a lot and intend on using the reward benefits offered through the card.  No, if you more often than not carry a balance and are not a huge spender and rarely travel.  I think the simple advantage of a charge card is the ability to have a line of credit that facilitates your lifestyle, that also requires you to stay disciplined within your spending limits,  thus avoiding the credit card debt trap.  

So if a charge card sounds right for you, check out the offers from several issuers and make sure you read all the fine print and know exactly what you are signing up for.  With the right card, plastic truly can be your friend.

You’re a good person, maybe even a very good person but your Credit is bad, very bad.  If this sounds like you and you need a Bad Credit Cash Advance loan then what do you do?  Many people in today’s economy have watched their good credit turn bad faster than Obama’s poll numbers have turned from good to bad and have found that qualifying for a personal loan is nearly impossible.  

Generally speaking, you have three options when seeking a quick unsecured bad credit loan.  The first option is to go to your local bank or credit union and try and qualify for a personal loan.  However,  for most people with bad credit this is not an option as the bank will almost always ask for collateral and banks often don’t make loans in small denominations – such as $200 or $300.  The next option, and most pragmatic, is to get a Credit Card cash advance.  For many people who truly have a financial emergency and need a quick cash loan, then using ones credit card is often the best option.  Always check your credit limit first before taking out the cash advance and only take out the money you truly need.  Since taking out cash advances on your credit card can lead to further dings against your credit score, make sure you have a disciplined plan in place to pay back the money as fast as you possibly can.  Since people who have bad credit generally have higher credit card interest rates, the fees and interest charges can be outrageous on cash advances.  Make sure the loan gets paid back fast or you will end up needing a new loan to pay off the high interest old loan and then you will be in an endless debt trap.  

The third option and the only option for many people with bad credit who do not have available credit cards to use is the payday loan.  The payday loan was in essence designed for people who have bad credit.  These bad credit cash loans are typically under $1,000 and require no collateral but do charge very high interest rates and fees on late payments that are substantial.  The main benefit of a payday loan is that it is very fast and all you need is to demonstrate stable employment and you will almost always qualify.  The overarching rule to payday loans is to simply PAY BACK the loan quickly.  If you are in a true financial emergency and absolutely have to have the money, then make sure you pay it back the next paycheck.  DO NOT get into a situation where payday loans are taken out to make regular personal purchases.  Always read all of the loan documents carefully.  Study all of the loan fees and make sure you can afford the interest rate in the event the loan is not paid back immediately.     

If managed properly, a payday loan can be an effective tool that helps people in times of financial emergency get back on their feet. 

Payday loan interest rates vary so shop around and get several loan quotes.

The US Mortgage delinquency rate fell 10 percent in the 4th quarter in 2010 to 8.22 percent, based on info provided by the Mortgage Bankers Association’s. By historical standards, that is still a high rate but a massive improvement over recent years since the crash began.  Another strong indicator of an improved housing market is the improved quality of the mortgages that are currently being serviced.   All of those high risk mortgage loans that have been tearing the housing market apart for so long now seem to have washed through the market.  What is left of course are the high quality loans that have a much lower risk of default.  

Will the housing market ever take off again?  Well I think that can be summed up in one word:  jobs.  As the unemployment rate goes down and more people get back to work, the housing market will pick up demand and new buyers will enter the market and prices should start to scale upward.  Mortgage rates are still at highly attractive levels and the affordability of homes is at an all time high.  Hopefully more good news will come soon in the mortgage market.

You jump right in the car and the seat mysteriously fits your size perfectly.  You hit the radio, throw it in drive and race off the car lot with your heart telling you – I have to have this car and your head telling you – no I can’t afford an expensive car payment.  The car salesman, still holding his cup of coffee goes in for the kill and offers $2,000 off the sticker price and then kindly invites you back to his open aired office.  Like a military sergeant, he asks you for your ID and Social Security number.  He comes back with a number circled and shoots over a nice smile.  You look down at the number and think, hey that’s not bad.  The salesman then tells you that you are all set and have been dealer approved for financing and you can drive the car home today.  What he doesn’t tell you is the exact terms of the car loan.  You ask about the interest rate and then he kind of stumbles and circumvents the question and then you ask for the car loan interest rate again.  He says,  “well based on your credit the best car loan rate you qualify for is 11.9%.  Don’t worry though, I got you a 72 month loan that really lowers the monthly payments.”    

Now these are the types of scenarios that happen a thousand times a day and separate the smart financial people from the not so smart.  The secret to getting a low rate car loan is to shop around for car loan rates thoroughly first before committing to buying a car.  Even better, shop around and get a low interest rate car loan first and then walk into any dealership with the check voucher in hand.  Looking at all of your finance options first lets you know the precise car loan rates you qualify for and of course allows you to make a much better decision.  This one simple decision can save you thousands of dollars over the life of the loan and more importantly, it gives you control over the finance rate and not the car dealership.      

Today, car loan interest rates are incredibly low and with those low rates you can get a nicer car than you perhaps ever thought you could afford.  Be smart and shop around first for a car loan and get a rate that saves you money.

Many financial planners throw around the term good debt - bad debt as if they are talking about Chinese food.  For a long time here in the good old USA, housing debt was considered good because the Real Estate market on average went up about 5% a year for several decades and borrowers were able to make money over the long run on their investment.  That all changed when the housing bubble burst and prices for homes collapsed at an unprecedented rate.  Still for many homeowners who have weathered the housing storm and who still have home equity available to borrow against, can take advantage of today’s extremely attractive home equity mortgage rates near 4% and save money.     

The best reason by far to get a home equity loan is to lower your overall interest debt.  If you have for example a total of $40,000 in credit card debt at an average rate of 13% you can save hundreds each month with a 4% home equity loan.  While mortgage rates are still near historic lows, Credit Card rates are not and are actually going up.  Now is the perfect time to get a home equity loan that locks in a fixed low rate that eliminates your high interest debt and saves you money. 

If you have the appropriate equity, you should actually pay off all of your high interest debt: i.e. car loans, Credit Cards, Personal Loans, and even high interest business loans and lock in a low fixed rate loan.  A home equity loan is kind of like a safety parachute that gives you a clean financial start and thanks to today’s low mortgage rates can really save you a lot of money that can reinvested.    

On the other hand, if you are dreaming of an expensive new boat that costs as much as a college education and the only way you can get that shiny new boat is to accrue more debt, then this is what I call bad debt.  Taking out a home equity loan for toys is just plain stupid and is what I call emotional financial decision making.  Don’t get a home equity loan to pay for items that depreciate very quickly like motor homes, motorcycles and just about any fancy toy out there.  Home equity loans make sense if they can save you money on the money you owe, it’s just that simple. 

With today’s housing recovery finally gathering traction and home equity rates still near their historic lows, it’s a good time for the lucky homeowners with equity to take a hard look at their bad debt and get a loan that gives them good debt at a locked in low rate.

This settlement now “clears the air” for a large chunk of B of As distressed mortgage portfolio and puts the company in a strong competitive position going forward. Investors cheered the settlement as shares rose over 6% to close above $14.  

The settlement marks the largest ever between a bank and the government backed giants Freddie Mac and Fannie Mae.  While Bank of America continued to clean up its balance sheet, many fear the opposite for Freddie and Fannie as they both continue to suffer from massive home loan losses due to the collapse of the housing market.   Many predicted a settlement with Bank of America would be for billions more and now analysts are predicting tax payers will now bare the brunt of the losses.

Bank of Americas CEO Brian Moynihan, who has had the job now for little more than a year, plans to refocus the company on profitable business units and shed its exposure to high-risk mortgages.  While Moynihan has taken a lot of criticism over the banks handling of foreclosures, much of the bad home loans the bank is now dealing with came from the acquisition of Countrywide, a deal he was not responsible for. 

Although the lawsuits will surely continue for the banking giant, this is a positive step in the right direction.  As the housing market continues its slow recovery look for Bank of America to continue to heal its financial wounds.

Currently, the average 30 year fixed rate mortgage is 4.86% up from 4.81% according to Freddie Mac.  The average fixed rate mortgage on 15 year loans climbed to 4.2% up slightly from 4.17%.   Just when the market was starting to pick up momentum thanks largely to very attractive interest rates and government housing credits, many now fear a possible double dip housing market retraction if rates keep moving upward.  

The most recent data from November of 2010 shows sales of new and existing homes actually fell even though mortgage rates dropped to their lowest recorded levels.  Now with mortgage rates rising, it looks as though the housing market will remain flat at best.

The good news is a robust stock market is generating wealth and those stock market gains could eventually be reinvested in the real estate market if and when investors have reason to start entering the frayed market.   Another possible catalyst for the housing market is the cheap dollar.  Many foreigners are beginning to enter the US housing market not only because the prices are very attractive but also because their currency is strong against the once powerful greenback.  Recently I was in Palm springs California and struck up a conversation with a local Real Estate broker.  He told me that in one large condo development all 9 of the latest sales were to Canadians.  He said he would be out of business if it weren’t for the aggressive buying by Canadians.  To savvy Canadian investors, they have the best of both worlds and are snapping up condos and homes at a much faster rate than their American investor counterparts. 

Will 2011 bring higher mortgage rates or a return to record low rates we saw in November of last year?  I hope for the new year Obama and his economic team initiate policies that create a stable market that allows the housing market to continue its slow recovery.  Maybe this time next year everyone will be talking about a hot housing market.