Link Audit Finance

All money is a matter of belief

Author: mimin (page 2 of 2)

Tips To Improve Credit Score

What is Credit Score: It is a statistical number based on your credit history, repayment habits and other financial data collected from financial institution by the rating agencies. Your Credit Score is an indicator of your Credit Worthiness. This data is collected by the rating agency based on a key or unique identifier like Permanent Account Number (PAN – issued by the Income Tax Department in India) or SSN in USA. Each rating agency may assign different weight-age to different parameters used to determine it. Generally, it ranges between 300 to 850 points.

With the credit score check, the lender gets an idea about the probability of default by the borrower, in case a loan / credit facility is given to him/her. Higher the Credit Score better are the chances for getting a loan at cheaper rates. Hence it is important for you to check it before applying for a fresh loan or credit. A credit score below 600 is considered poor and generally the financial institutions avoid loans to such individuals. By maintaining financial discipline you can also improve your it easily. The very small things or ignorance can seriously damage your credit worthiness. By paying little attention to these small little things you can improve the credit score and avail cheaper credit facilities.

To improve your credit score, you should follow certain dos and don’ts.

Dos

1. Never delay the payment of installments due on existing loans.

2. Make credit card bills payment always in time. If possible, use the ECS or Auto debit facility on your card bills payment, so that there is no chance of forgetting the bill payment on due date.

3. If possible, try to prepay the existing loans. Making a little extra payment over and above the due EMI or installments not only helps you reduce the interest out-go but also helps improve your credit score.

4. Maintaining good and long banking relations with existing banker helps you increase the credit score. Frequently changing your banker, especially the business related credit facilities, can bring it down.

5. Also make payment of your utility bills like electricity, mobile, insurance premium, municipal taxes etc in time. Though these don’t get reported directly for the credit score check, but these help you maintain financial disciplined life.

Don’ts

1. Do not take different loans from different banks. Try to use maximum credit facilities from one or two banks. For example you have two housing loans, two car loans and one personal loan each of this from a different bank. This kind of arrangement will pull down your credit score. Try to shift all these five loans to one or max two banks.

2. Do not rotate the credit card balance from one card to another card. Rotating balance from one card to another means, you don’t have means to pay the credit card bills. This seriously damages your credit worthiness.

3. Do not fully utilize or over utilize the credit card limit. In case you reach above 90% limit regularly, ask the credit card issuer to increase your credit limit.

4. Do not discontinue your old credit cards without any reason or because you have taken a new card. Longer the credit history with regular bill payments, better the credit score.

5. Do not take too many credit cards from different banks. Maintain maximum 3-4 cards with same number of banks. If you use these cards regularly and make on-time payments of the card bills, your card company would be happy to increase your card limit.

6. Do not withdraw cash from CREDIT Cards via an ATM unless it is an extreme emergency. Frequent cash withdrawal from credit card account brings down your credit worthiness, instead use Debit Cards linked to your savings account for cash withdrawals.

Try to obtain your credit score sheet once a year, so that you know where you stand. In case you find any errors in the reported transactions on your sheet, immediately report the same to the concerned financial institution for correction and updating the same with rating agencies, especially when you are planning to take a fresh loan / credit facility.

Get tips on how to raise your Credit Score and manage credit responsibly. Get more tips, follow the Dos and Don’ts & Maintain Good Credit. Grow a better Money Habit.

 

How To Choose Credit Counselor

It’s one of the worst afflictions when one is in debt and being chased by creditors. It’s worse when one loses everything previously owned and often find they are homeless as a result. To see the repossession agents who pull up and strip their property away from them is one of the most horrendous of all feelings. They serve their summons to appear in court because their troubles are not yet over. So what do they do?

Believe it or not this has happened to me. The difference is that I had the best credit counsellor there is on my side who helped me escape from debt. That’s why I have to tell you about it. You may not agree with me at first but at least think it over if you are in this type of trouble.

Following my reincarnation and with a link to the Spirit of the Universe it was with me all the time. In fact, it was responsible for the situation because that was part of its plan to break me away from the world. It had another purpose for me and all I had to do was respond.

Most would never give it a thought but this supreme intelligence is the Great Creator and it is in everyone and in all of space. In other words, it is God, the real one. It is within us as a little voice or our conscience, whatever you want to call it. Sometimes, however, its voice can be rather loud.

What it does is beyond human abilities or understanding because as it can speak to me it can also speak to everyone else. That’s where the power plays its part to overcome debt or anything else that affects its people.

What is debt after all but the failure of money and the financial system to supply our needs. It is man’s invention and it works against the Spirit. Men have made money their god and they worship it, hoard it, and destroy the earth to make themselves wealthy. It is the cause of evil and greed and because of it the planet is being murdered.

God knows how to manipulate it and make people pay who work against the Spirit. Those who think they are rich are the poor ones because the spiritual people are in possession of a great treasure. Theirs is an inheritance above everything man has ever dreamed possible. They receive instant healing of disease and other problems and peace beyond understanding.

To acquire it what they need to do is surrender their lives and hand over their debt and let the Spirit work it out. It can send people to you with cash to pay the bills, it can force the government to give you a home, it can provide clothing and other things that appear out of the blue as it were. All one needs to do is give it a chance.

Owing money is nothing to fret over and when you have the best counsellor working for you then forget it. God works for everyone who is seeking truth and to serve the Spirit and not the false gods of religion. It is calling those who surrender their possessions and lean on it for their safety and salvation. Debt is one of those possessions you need to surrender.

The worst situation you can be in is one where you don’t know the Spirit and cannot hear it speak to you inside. This happens when worry and trauma take over your life. When you are broken from the world and there is no where else to go that’s when you can hear it the best. Give it time and all things come right and you won’t believe how good you will feel.

 

Things You Should Know About Residual Income

This article is aimed at explaining the importance of building residual income and also to explain the need for individuals to leverage network marketing business model if their dreams are to gain financial and time freedom. So, even if you presently work a job or business, it is needful that you pay attention to network marketing so as to develop residual or passive income over time.

The commonest way that people define residual income is “income earned while sleeping”. Is it really possible to earn income while, all the while, you are asleep? This may sound strange to some people but, yes, it is possible.

The importance of residual income in a man’s life finds expressions in the statement of the billionaire investor, Warren Buffet, in which he stated that “if you don’t find a way to make money while you sleep, you will work till you die”.

Residual income is a concept that many ignore without understanding that their future well-being is dependent on it. And with what result? With damaging consequences.

By going to work every workday and receiving a salary at the end of the month, you’re simply exchanging time with money. Your salary is not residual. If your work stops, your income stops automatically.

Let me explain residual income with the following example.

Imagine two men in a village. Both have to walk a mile every day to a river to get water for their families. After a month, one man starts working on building an underground pipeline to connect the river to his house. For an entire year, he expends extra energy working on his pipeline. When he finishes, he has the source of the water directly to his house, while the other person continues to visit the river.

Residual income is like building a pipeline to connect water from the source to your house so that you don’t always have to go to the river.

In that short example, you will notice that it took some time for the pipeline to be constructed. But having done that, the man continued to enjoy water supply effortlessly.

However, the second man who failed to take the same initiative had to continue to visit the river for his water supply. What will happen if he becomes indisposed? He and his family will stay without water and suffer its consequences.

There exist many business initiatives that you can leverage in your effort to build residual income. But I do recommend network marketing, or MLM as some would like to call it, due to the fact that it doesn’t requre a tonne of investment capital to set up.

A lot has been said about network marketing by various network marketing professionals but many still feign ignorance about it.

The reasons people WON’T take a look at network marketing is NOT:

• because they don’t have the money.

• because the opportunity or business isn’t good.

• because they are worried about being scammed.

• because the profit margins aren’t high enough.

• because the demand for the product isn’t wide enough.

• because they need to ask their spouses first.

• because they need a night to sleep on it.

• because they need more time to research the company.

• because they need to get on the phone with you to join.

• because they have to ask other people on Facebook to see if you’re a good sponsor.

• because they need to see your bank account to prove the results.

• because they don’t believe in it.

The real reason they don’t join network marketing business opportunity is that they have been conditioned by society to be consumers of goods and not producers.

.They have been conditioned to buy “education” but not to buy knowledge.

.They have been conditioned to have a “job” but not to own a “business”.

.They have been conditioned to be workers but not to be their own bosses.

.They are non-thinkers instead of go getters

.They are intimidated by anything that challenges them.

That is what this is really about. It’s about people who are so afraid of learning, and stepping out of their comfort zones and being paralyzed by their fears.

It’s about being comfortable and caring what other people might think. It’s about their family thinking they are FAILURES if they do anything besides just having a JOB.

If you’re working presently, understand that you are only exchanging your time and effort for the pay cheque you receive at the end of the month. That’s okay though but by going to work every day, you are not building residual income which is the pipeline that will enable you to get water supply without having to go to the river.

In view of what has been outlined above, what should you be thinking of doing now? Continue with your job but alongside your job, approach a network marketing professional to set up a network marketing business that you should be doing on a part-time basis. The little part-time effort you put into the business will, before long, yield a significant result.

 

All About Revenue Audit

Revenue Recognition accounting is a process that depicts how sales transactions are recorded by a company in financial statements. While recording revenue, companies are mandated to comply with Generally Accepted Accounting Principles (GAAP). As per GAAP, in order to book a sale as revenue, the revenue should be recognized initially. Consequently, for a revenue to get recognized, it should be Earned and Realizable Revenue.

It reviews the accounting techniques of revenue recognition that are adopted by a company. This audit thus assures that the recorded information is compliant with National Accounting Standards which stand mandatory for a firm.

Revenue Recognition Audit procedures:

For a successful Revenue Recognition Auditing process, Planning is a key element. This process thus initiates with analyses of revenue recognition policies and techniques of a company. Thus ensuring the company’s compliance with the desired audit procedures. After satisfying their doubts, the auditing comes to the second level that involves the analyses of contracts of that year. Material Contracts are then separated from the lot. Auditors invest their time to test whether those contracts are recognized aptly. Along with this, they ensure that the financial statement contains receivable and deferred accounts. Besides reviewing the Material Contracts, auditors also pay heed to the one which is not material to ensure that even they recognize the revenue aptly.

Important Aspects of Revenue Recognition Audit:

Reviewing General Ledger:

When an Auditor/Accountant analyzes a General Ledger it provides them with a lot of substantive evidence and thus initiates lesser procedural tests. General Ledger is reviewed to have knowledge as to how the sales are recorded in that particular firm. The information that concerns Revenue Recognition Audit includes the sold goods, the date when it was delivered and the mode of payment used to do so. It ensures that General Ledger is in accordance with the actual sale transactions of the firm. While auditing, even the Revenue Recognition Policies of a company can also be considered.

Analysing the Financial Statements:

For a detailed overview of the company’s finances, auditors look out for financial statement of an organization. Then a comparison follows between General Ledger and the statement deduced, to look out for dissimilarity that exists. Auditors are well acknowledged about the importance of financial statement; as the stakeholders evaluate a firm by the information provided by that.

Combating Risks in Receivable Accounts:

Accounts of high-profit sales of a firm can be studied by an auditor in Receivable Accounts. The information mentioned by them is cross-checked by the auditors with the original sale invoices. Primary risk that exists is that the net receivables might be overstated, because either receivable have been overstated, or the allowance for uncollectible accounts has been understated. Revenue Recognition Audit ensures that the company’s account balance mentioned is legitimate.

Accrued/Deferred Revenue:

While recording revenue, firms may incorporate accrual or deferrals. Auditors stay skeptical regarding accruals and deferrals to ensure that the real transactions are mentioned and do not contain wrong invoices.

What are the Prerequisites for a Revenue Recognition auditor?

An Auditor is required to have complete knowledge of complications prevailing in revenue recognition’s auditing and accounting. Active participation of employees should be fostered by the auditors for smooth auditing.

Internal control in an organization is a continuous process to collect, analyze and update information during an audit. Thus mandating internal control; as the responsibility of an auditor. An Auditor then evaluates the appropriateness of finances.

 

Tips To Achieve Financial Success

New college graduates are on the loose and out building their new work wardrobes for their first job. Are you a proud parent and grandparent? In addition to celebrating with them over parties and gifts, now is the time to give them the gift of financial independence too. As they start their first jobs, you might ask yourself, “Is my child prepared for the financial responsibility that comes with a full-time job and living on their own?” Right from the start, you want them to develop savings priorities and healthy spending habits. Here are some tips to help you point them in the right direction:

Explain the importance of saving

As young adults start receiving a paycheck, they may find it tempting to spend their funds a lot more on “wants” rather than “needs.” You can help by reminding them of the difference between the two and sharing the importance of saving. Whether it’s saving for unexpected expenses and emergencies or to eventually buy a car or home, encourage your young adult to put a set amount aside from every paycheck. You may also tell them to check with their employer and see if they can direct the savings portion of their paycheck directly into a savings account with only the remainder going to their checking account for spending.

Emphasize retirement contributions

New graduates hardly think about retirement. They’ve just entered the workforce – why would they need to think about an event that will impact them 40+ years from now? With rent, bills and other responsibilities, your young adult may choose not to contribute to their retirement right out of school. We all know that this is a mistake! This is your chance to emphasize how a long retirement time horizon can benefit them financially. Educate them about compounding growth in savings and encourage them to speak to their employer about any professional guidance offered. Emphasize to them that they have one of the greatest assets working for them at this age: time.

Teach them to follow a budget

Budgeting allows young adults to create a spending plan with their money. It’s a great way for them to track their expenses and see if they have enough to spend on the things they really enjoy. Budgeting can keep your young adult focused on their money goals and avoid any unnecessary financial hassle. If they become overwhelmed, share how you learned to live within your paycheck and show them that there are apps and online tools today that they can use – here are just a few examples.

Show them how to pay bills on time

As an independent adult, your child will need to take on lots of responsibility quickly. Perhaps this includes regularly paying a variety of bills (rent, cell phone, etc.). Keeping track of when bills are due can become cumbersome for those just starting out. Show your child that it’s crucial to stay on top of bills and pay them on time. Late payments and fees – and any outstanding interest on balances – will deplete their disposable income, leaving them less money to spend on entertainment and fun. Many apps and computer programs exist to help set reminders and automatic payments. Help your young adult look at the options and share any systems you use to manage monthly payments.

Help them build credit

Many college grads have not yet had a chance to establish a credit history. Educate them about how a credit score can impact their future. A good credit score can influence their ability to get car loans and mortgages approved. Their credit score can also impact the interest rates on these loans: A good credit score may lead to lower interest rates. Some employers use a credit check in their hiring process. Some insurance companies also use credit scores as part of their underwriting process as a person’s credit can be a predictor of insurance claims. To help your young adult build their credit score, encourage them to pay bills on time, avoid acquiring too much debt on any open credit cards, limit the number of credit cards used, and keep their oldest credit card open.

Now that your graduate is officially launched, use some of your time together to pass on good financial habits. Whether it’s dedicating a portion of every paycheck to savings or using an app to track spending, these tips may help your young adult to stay on top of their finances and develop good money habits that can last a lifetime.

 

The Advantage Of Financial Technology

Financial technology (also referred to as FinTech) is the use of innovative technology to deliver a wide range of financial products and services. It is intended to facilitate the multi-channel, convenient and fast payment experience for the consumer. This type of technology is effective in many different business segments, such as mobile payments, investment management, money transfer, fund-raising and lending.

The rapid growth of financial technology has been very beneficial for consumers worldwide, such as the ability to serve customers that were not previously attended to, a reduction in costs, and an increase in competition.

Let’s take a look at a few of the benefits related to financial technology:

Better payment systems – this type of technology can make a business more accurate and efficient at issuing invoices and collecting payment. Also, the more professional service will help to improve customer relations which can increase the likelihood of them returning as a repeat buyer.

Rate of approval – many small business ventures are starting to use the alternative lenders like those involved in financial technology because it has the potential to increase accessibility and speed up the rate of approval for finance. In many situations the application process and time to receive the capital can be completed within a period of 24 hours.

Greater convenience – the companies involved in financial technology make full use of mobile connectivity. This can significantly increase the number of people who can access this type of service and also increase the efficiency and convenience of transactions. With consumers given the option to use smartphones and tablets to manage their finances, it is possible for a business to streamline its service and provide a better all-round customer experience.

Efficient advice – many of the latest systems rely on robo-advice to give people guidance on their finances. This can be a very quick and low-cost option to get useful information on investments, as well as to limit a person’s exposure to risk. However, this type of service won’t be able to give the most in-depth advice that would come from a professional adviser.

Advanced security – Using the latest security methods is necessary to ensure more people are confident in using this type of financial service. The need to harness the latest mobile technologies has resulted in a major investment in security to ensure customer data is kept safe. A few of the latest security options used by those in this sector include biometric data, tokenization and encryption.

 

Tips Loan For Self Employed

Being self employed you ought to be a better manager for plain sailing your business or service. You need to be the one who thinks clearly, objectively and loves to stay ordered and disciplined. However the more conscientious you are, the more grappled you could be with distractions all around.

Whether you are working as a freelancer or a part time worker, it is important to be financially prudent and manage your funds properly. For you singly need to manage the cash flow to work peacefully with all the stakeholders including suppliers, co workers, business partners and customers. Despite the issues or delay in payments you would need adequate annual funding for your personal as well as future business planning expenses.

To beself employed requires a lot of mettle and hard work. Here are some credit management tips to help you stay financially happy all the times. With too many things to manage, it would be wise of you to have a predefined plan for credit management.

Positive Cash flow

Cash is the king for running any business. And in the modern times, cash is not only the one you have as paper or plastic bills in your pocket, it is your credit worth that defines your real economic power. Most of the self employed individuals find it difficult to borrow at low rate due instable inflow of income.

When you are working as a self-employed business or a freelancer, the income is generally in lump sums and that too in uneven patterns. Many conventional lenders do not lend to self employed people due to this uncertain nature of their income. In the absence of adequate income proof you would remain dependent on private lenders for self employed loans despite having the loan repayment capacity.

Thus it is recommended to have a healthy cash flow all the times and ensure a good credit history to be eligible to borrow from unconventional sources. You can use a professional broker’s advice to assess your loan eligibility.

Estimate expenses

Most home based startups fail due to constrained estimates of expenses. Although your start up cost could be less due to your already set workplace at home, the operational expenses would not be as economical as the initial costs. Prepare a modest list of expenses before you begin the self employed business.

Learn to Keep balance

When you do not earn constantly month-to-month it is important to keep a balance to meet the shortfall on the dry income days. You need to save or keep aside funds to supplement money evenly throughout the year.

Limit the use of credit cards

Credit cards attract higher interest rate and charges. When you need quick money to fund a business plan you should consider applying for a small business loan for self employed instead. In face of shortage of available credit options, consider contacting a loan broker online. As you contact a loan adviser online, they will search all the available deals without any brokering fees.

Pay Taxes and Keep records

Most self employed people fail to raise loans due to lack of proof of their business age and income source. Paying regular taxes not only provide you a solid proof of your existence but also highlight your regular income. You should always keep copy of bills and receipts. Use professional help if you find it difficult to manage track of your expenses and income. Do not forget to use insurance and other tax relief investment opportunities.

 

Tips To Refinance Your Loan

We take a look at 5 ways refinancing your home loan could help you:

1. Your lender’s rate is no longer competitive

We’ll start with the popular one first. One of the main reasons people choose to refinance their loan is to get a lower interest rate, and put more money back into their pockets instead of paying the banks.

When done correctly, refinancing your home loan could save you thousands over the life of your loan, and free up cash now.

2. You could switch between variable & fixed rates

Another popular reason to refinance your home loan is to switch between a variable rate and a fixed rate. With a fixed rate, some want peace of mind. That is, knowing exactly how much their monthly repayments will be without the possibility of it changing for a set period is worth a slight increase in rate.

Conversely, you may decide you’d like to take advantage of a lower variable rate as you can accept the risk that rates may rise in future.

3. You could be eligible for a home loan with better features

There are some great home loan features around at the moment, and refinancing could offer you the opportunity to take advantage or more flexible features. Some money saving features to look for are:

Flexible repayments: You might want to switch to a home loan that allows you to make lump repayments without fees or open up an offset account to reduce your interest.

Redraw: Allows you to withdraw extra payments if you need cash. Look for a loan offering free redraws.

There are also some pretty cool boutique features, like getting a repayment holiday (a break from repayments), or the loan portability which allows you to take your home loan with you when you move without much hassle.

4. You could consolidate your debt

Many of us have multiple debts like car or credit card along with our home loan. Often our car and credit card loans have pretty high interest rates, meaning more out of your pocket.

Refinancing could give you the opportunity to merge your debts and potentially reduce the overall interest you’re paying, streamlining all of higher interest debts into one lower interest debt and reducing your monthly repayments.

The interest rate on a home loan is usually significantly lower than the other types of credit. Helping you to save on interest charges and pay debt off sooner.

5. You could release some equity in your current property

You may be thinking about joining the thousands of Australians that have invested in property, renovating your home or traipsing around Europe on that trip of a lifetime. With your current home usually being your most valuable asset, it only makes sense to release as much of the value in your home as possible.

Home equity is the difference between your home’s current value and the balance of your mortgage. For example, if your home is worth $600,000 and you have a mortgage of $200,000 remaining, your home equity is $400,000. That’s money that can be used to build wealth.

Not so long ago, the only way home owners could access their home equity was to sell up and upgrade to another property. These days, home loans are flexible and it’s possible to get access to the equity in your home without having to sell up. Reviewing your home loan can help you see exactly how much equity is available to you, and refinancing can help you access the equity to use for other things.

What should I consider before refinancing?

Cost of refinancing

While refinancing has some amazing benefits, there are costs associated with refinancing your home loan – costs that may outweigh the potential benefits. Following are two of the main costs associated with refinancing:

Exit Fees

Exit fees may apply when you pay out a loan early, usually in the first three to five years of your term. It could be a percentage of the remaining loan balance or it may be a set charge. Check your loan contract for more details. Although exit fees have been banned on new loans taken out after 1 July 2011, they could still apply to loans taken out before this date.

Borrowing costs

When you refinance, your new lender may charge a range of upfront fees. However not all lenders charge these fees and some may be negotiable.

Case Study

Let’s have a look at a refinancing example using some numbers to better understand the benefits and costs.

The situation:

Sue has a $300,000 loan repayable over 25 years. Her current rate is 6.4% and her monthly repayments are $2,006.

If Sue can refinance to a loan with a rate of 5.9% a rate reduction of 0.50%, she can lower her repayments to $1,914, a saving of $92 each month.

The solution:

Looking at the cost side of things, we’ll assume Sue will pay $1,000 to refinance her loan. In this case it would take about 11 months ($1,000 divided by $92) for Sue to claw back the costs through the savings she makes.

The outcome:

That’s not a bad time frame. If it was to take several years to recover her costs, refinancing may not be worthwhile.

Should you refinance?

We’ve gone through the potential benefits of refinancing, the costs associated and a short example. That’s a lot to take in. When it comes time to make a decision about refinancing your home loan, the best suggestion is to sit down with a mortgage broker you trust to help you go through your options.

 

All About Super Fund Loans

What is Self Managed Super Fund?

A Self Managed Super Fund (SMSF) is a private superannuation fund that you manage yourself. It is controlled by the Australian Taxation Office (ATO). SMSFs can allow up to four members where all members should be trustees. They are accountable for decisions made concerning the fund and acquiescence with specific legal guidelines. The sole intent behind SMSF is to prepare for your retirement.

Self Managed Super Fund Loans – What You Need to Know

Most banks and other lending companies don’t grant SMSF loans because of the limitations that come with the nature of super funds. These limitations restrict the loan provider options in case the trust defaults on repayment commitments.

Most loan companies do not give Self Managed Super Fund Loans to purchase investment properties due to the following reasons:

  • a smaller size of the market
  • the complexity of trust loans
  • lender’s recourse is limited to the asset itself

Seek for Lending companies who provide SMSF loans

Lenders view SMSF loans as high risk which entails more work and less profit. On the other hand, not all lenders close their doors on SMSF loans. There are a few lenders who consider this type of loan and may even permit discounted residential loans taken against super funds.

Talk to a home loan specialists. Most of these professionals have the right connections and can assist you with the process. While there are loan companies who allow SMSF loans, their application process can be tedious and will require more documents to finally get an approval.

Guarantor requirement. Some loan companies require members of the super fund to guarantee however revised to further protect the guarantor and the lender. Other loan companies do not ask for personal guarantees if the loan amount is less than or equivalent to 60% of the property. This is more usual with individuals who have high net worth and large SMSF balances.

Larger deposits. In some cases, a larger deposit will no longer require member guarantees. Normally, you will need at least 24-25 percent the purchase price to pay for the 20% deposit and other costs such as stamp duty.

The SMSF Loan Application Process

Getting an SMSF loan entails dealing with a number of different stages, all of these are required to ensure the product fits your preferences. Any responsible loan provider will take several different safety measures prior to approving the loan to protect their investment and yours.

Get a pre-approval before looking around for a property. The entire application process may take weeks to months before you get formal loan approval.

1. Establish your SMSF (Assigning a Trust Deed)

This is the first stage of the application process. This will provide the trustee of the superannuation fund the chance to get a loan – possibly by using an SMSF loan – buy a property and manage the purchase so that the funds could be paid back.

2. Get a pre-approval for the SMSF loan

Prior to releasing any cash for a deposit, go through the pre-approval process for your SMSF loan. This may present you with better financial protection in the long term.

3. Decide on a bare trust deed

When you’ve gotten pre-approval for the SMSF loan, you should choose your bare trust deed. It is crucial that the person you choose is not the property trustee. It is highly recommended not to appoint any of the SMSF members as the trust deed.

4. Arrange the purchase contract

Put the unconditional arrangement between the seller and the bare trustee in writing. After contracts had been agreed and exchanged, your SMSF can release the required deposit.

5. Get a loan approval

When the purchase contract had been signed and returned, the loan provider will ask for the property appraisal. The formal approval for the SMSF loan will be granted once property valuation had been received and approved.

6. Provide mortgage documents

Special conditions are created for properties acquired within SMSFs as soon as mortgage documents are written. This can provide some hold with the property being invested in.

7. Purchase settlement

This is the final stage of your SMSF loan application. The purchase will be paid out. Financial transaction along with title documents are going to be held for the lender.

 

How To Get Loan With Your Poor Credit

Sometimes accidents happen and things break down and we all need help financially. If your current gas boiler stops working then a new gas boiler installed can cost a good couple of week’s salary and if the television is knocked over whilst the cat chases the dog around the TV room, then how do we find the money to get replacements?

Not all of us our lucky enough to have money in the bank, we live in a society where saving our hard earn money can be tricky, we all have mortgages, rents and utility bills to pay. If we do not have siblings or parents to go to when we find ourself in that tight spot what can we turn to? Loans are a good option and can give you the finance you need fairly instantly.

The first thing to do is go online and visit a loans company. During the process of applying for credit the company will run your details though a program to achieve a Credit score, any bumps they find in the road in terms of poor score rating could hamper your chances of getting the money you require.

Why have I got a poor rating? There are many reasons why you might fall under the group of poor. The main reason is probably a late card payment, or even missing the payment altogether. Closely followed by an existing debt that you may have on credit cards, store cards or other cards. These will all show up in the overall score to ascertain if you can have the money.

Companies are fully aware that although some of us have a poor rating there are those that are trying to start again and look to the future. When you apply you have to give your personal information, bearing in mind that this information is important for the company to run the checks and will only be held by the company.

With this information they will look at any problems you may have had and also compare your current circumstances. For instance in the past you might have been on a lower paid wage and since then you have had a promotion and now earn twice as much as before. This will all be taken into account when running the scores.

A company that offer matching services, even though a poor credit score came up through the check, could still be able to offer you a variety of loans. They will pass your applications on to many different lenders to make sure that a deal can be found.

Choosing to go through a company like this will only show up as one application, not as lots of different ones which is a good thing for you and your rating.

Personal loans are known as unsecured, there is no collateral held against them but because of this they offer a higher percentage rate of payback. Credit scores can affect the percentage of the agreement given. The better the score, the lower the percentage rate.

We all want a quick decision when we apply for loans, but how quickly can I receive the money? If all of the relevant paper is filled in correctly, then you can have the money as quickly as the following business day. Which is good, as some emergency cannot wait for a week whilst a decision is made.

So if you need financial help, do not be put off that you might think you may have a poor credit history, approach a company that match loans and see how they can help you.

 

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