“Are you facing more risks with your personal loans (MalaysiaNews.net)” plus 3 more |
- Are you facing more risks with your personal loans (MalaysiaNews.net)
- Car Loans: Eligibility and requirements (KIVI Boise)
- Car Loans: Eligibility and requirements (KMIR 6 Palm Springs)
- A gift that teaches personal finance lesson can have impact long after holidays (Canoe Money)
| Are you facing more risks with your personal loans (MalaysiaNews.net) Posted: 08 Dec 2009 07:21 PM PST PETALING JAYA: The notion that personal loans are getting riskier with longer tenures amid the current economic climate does not hold water, as much depends on the size of the loan as well as the credit assessment and underwriting of individual banks, analysts said. They generally concur that banks have an internal credit assessment system to ensure that the risk of default is minimised. Banks would have to look at an individuals cash-flow position as well as his ability to pay the loan, an analyst from a foreign research house said. A senior analyst with an investment bank feels that with the improving economy and uptick in consumer spending next year, consumers would be able to service their loans on time, hence resulting in lower loan defaults or non-performing loans. RAM Rating Services Bhd head of financial institution ratings, Promod Dass, reckons the credit risk of personal loans ultimately depends on the credit underwriting of each bank. More importantly, he said, the loans should be priced to sufficiently absorb potential defaults. HSBC Bank Malaysia Bhd general manager for personal financial services Lim Eng Seong said the repayment period had to be viewed relative to the size of the loan. It cannot be too short, otherwise it will be unreasonable for customers. And it wouldnt be sensible for banks from a risk perspective if the tenure is too long, especially given that the size of personal loans is usually much smaller than other types of loans, he said in an email reply. OCBC Bank (M) Bhd head of credit cards and unsecured lending, Muzir Kassim, said the bank practised a prudent approach to lending, including personal loans, and that through risk-based pricing and scoring models, loan risks were kept to an acceptable minimum level. Comparing personal loans and credit cards, Standard Chartered Bank Malaysia Bhd head of consumer transaction banking, Choong Wai Hong, said: Personal lending products target specific needs such as big purchases, debt consolidation and cashflow funding. With longer tenures, the burden of paying the interest rate is heavier but the monthly instalment payments instill discipline and predictability in paying down the loan. Credit-card lending, however, may be deceivingly shorter in tenure but the interest rate may be higher, and customers may only elect to pay the minimum 5%. On the outlook for personal loans next year, RAMs Dass said the rating agency saw greater competition among banks in that segment, particularly loans to government staff via direct salary deductions. The intense competition, he added, may drive down yields. Given its current low base, Dass said the personal loan segment would grow at least 20% next year in line with RAMs expectations for gross domestic product (GDP) growth of 4.9% in 2010. However, personal loans would remain a small portion of the banking systems total loans, he said. As at end-September 2009, they accounted for 4.65% of the banking industrys loans. Meanwhile, the RM50 service tax to be imposed on credit cards next year would likely motivate customers to consolidate their card balances and reduce the number of credit cards they carry, according to StanChart Malaysias Choong. They could do this either through personal lending or transfer the balance to their remaining cards, but it would be cheaper to consolidate through personal lending, he added. OCBCs Muzir said more people would spend in a systematic and structured way via the effective use of personal loans. Consumers appreciate that personal loans provide a cost-effective alternative to other financial tools such as credit cards and overdrafts, representing another choice for managing spending and credit prudently, he noted. fivefilters.org featured article: Normalising the crime of the century by John Pilger |
| Car Loans: Eligibility and requirements (KIVI Boise) Posted: 10 Dec 2009 12:29 PM PST By Robert Ferguson Getting a car loan seems like a difficult task if you are on the list of people with a bad credit history. If you are tired of receiving rejected car loan applications because of your bad credit, then you should think about car loans specially prepared for people with poor credit. You may wonder how these specialized car loans are different from those normal car loans. What exactly do they offer? How do such loans work? Read on to get the answers and more. Traditional money lending institutions approve car loans according to a good credit rating. If a person has bad credit then he/she cannot qualify for a car loan from a local bank, credit organizations like USAA or AAA or financing companies such as Toyota Motor Credit or Ford Motor Credit. Most people need a vehicle, but not everyone has a perfect credit report. In that case, many specialized car loans are designed for people who are facing the problem of bad credit, bankruptcy, foreclosure, repossession, marginal credit or no credit. Most of the time auto dealers lend initial auto loans which are later transferred or sold to a financing company. Basic Requirements to Qualify Applying for such specialized car loans is easy, unlike normal car loans that require a high credit score as first eligibility criteria. Anyone with bad credit can apply for car loans prepared for persons with poor credit. To obtain a car loan all you will need to do is to furnish necessary papers. Your lender will ask to see your valid driver's license and your proof of identification. You will also need to show proof of your employment with minimum income of $2,000 per month. You should also be able to obtain car insurance and provide proof of residence and a valid phone number. Apply with Quick and Simple Online Application Obtaining a car loan is fairly simple with a short application form available online. You can work out your car loan process from the comfort of your own home. Simply go online, fill out a short form that is secure. Your personal data is protected with industry standard security levels and it will be delivered only to leading car loan lenders in your area. Your application for the loan will be approved within minutes and more than one car loan lender will contact you with personalized quotes for car loans as per your requirements. Compare these quotes and choose a right loan for you. Do Your Homework Before You Apply Robert Ferguson has been entrenched in the financing world for numerous years and writes articles to help consumers understand common topics such as debt consolidation, car loans, payday loans and personal loans. Robert is amazing at answering common questions in his articles and news posts. Ferguson's work has appeared in American Chronicle and other major news outlets. Read the original family finance article on FiLife: http://www.filife.com/stories/car-loans-eligibility-and-requirements fivefilters.org featured article: Normalising the crime of the century by John Pilger |
| Car Loans: Eligibility and requirements (KMIR 6 Palm Springs) Posted: 10 Dec 2009 12:25 PM PST By Robert Ferguson Getting a car loan seems like a difficult task if you are on the list of people with a bad credit history. If you are tired of receiving rejected car loan applications because of your bad credit, then you should think about car loans specially prepared for people with poor credit. You may wonder how these specialized car loans are different from those normal car loans. What exactly do they offer? How do such loans work? Read on to get the answers and more. Traditional money lending institutions approve car loans according to a good credit rating. If a person has bad credit then he/she cannot qualify for a car loan from a local bank, credit organizations like USAA or AAA or financing companies such as Toyota Motor Credit or Ford Motor Credit. Most people need a vehicle, but not everyone has a perfect credit report. In that case, many specialized car loans are designed for people who are facing the problem of bad credit, bankruptcy, foreclosure, repossession, marginal credit or no credit. Most of the time auto dealers lend initial auto loans which are later transferred or sold to a financing company. Basic Requirements to Qualify Applying for such specialized car loans is easy, unlike normal car loans that require a high credit score as first eligibility criteria. Anyone with bad credit can apply for car loans prepared for persons with poor credit. To obtain a car loan all you will need to do is to furnish necessary papers. Your lender will ask to see your valid driver's license and your proof of identification. You will also need to show proof of your employment with minimum income of $2,000 per month. You should also be able to obtain car insurance and provide proof of residence and a valid phone number. Apply with Quick and Simple Online Application Obtaining a car loan is fairly simple with a short application form available online. You can work out your car loan process from the comfort of your own home. Simply go online, fill out a short form that is secure. Your personal data is protected with industry standard security levels and it will be delivered only to leading car loan lenders in your area. Your application for the loan will be approved within minutes and more than one car loan lender will contact you with personalized quotes for car loans as per your requirements. Compare these quotes and choose a right loan for you. Do Your Homework Before You Apply Robert Ferguson has been entrenched in the financing world for numerous years and writes articles to help consumers understand common topics such as debt consolidation, car loans, payday loans and personal loans. Robert is amazing at answering common questions in his articles and news posts. Ferguson's work has appeared in American Chronicle and other major news outlets. Read the original family finance article on FiLife: http://www.filife.com/stories/car-loans-eligibility-and-requirements fivefilters.org featured article: Normalising the crime of the century by John Pilger |
| A gift that teaches personal finance lesson can have impact long after holidays (Canoe Money) Posted: 10 Dec 2009 01:36 PM PST NEW YORK - While others are blowing their holiday budgets, you can set an example and send a message by giving a gift with a focus on personal finance. The economic downturn highlights the importance of understanding money matters, and there are items available for every age group that can help teach important concepts. The important thing is to make sure gifts are presented in an appropriate manner. Kim E. Jones, a financial planner in Broomfield, Colo., said you should make sure the message you're giving is caring and not judgmental. But there are plenty of choices that can hit the right note. STARTING KIDS OFF RIGHT Even before children can count, they're learning about money. Gifts that help them learn how to handle it can help get them started on a financially healthy path. One of Jones' favourite items is the Money Savvy Pig, a piggy bank with a twist. The translucent pigs come in bright colours and have four slots, each leading to a different section of the pig labelled "Save," "Spend," "Donate" or "Invest." The four sections allow kids to set priorities and think about the different ways they can use their money. Money Savvy Generation, www.msgen.com, also offers Moolah the money savvy cow and a football bank for sports fans. For US$16.99, each comes with stickers to help kids keep track of their goals, as well as tips for each of the money choices. Parents might also consider a book to read to their young kids. Shelley Solheim, director of financial education for Capital One Financial Corp., recommends "Alexander, Who Used to Be Rich Last Sunday" by Judith Viorst. It tells the story of a boy who receives a dollar from his grandparents, the things he dreams of buying, and how the money starts to slip away. For elementary school children, classic board games like Pay Day, Life and Monopoly can make learning about finances more fun. Some come in junior editions or themed versions related to television programs or movies. TARGETING TWEENS & TEENS It's never too early to start investing. While one share of stock won't fund a college education, it can be helpful to teach a child about the stock market. You can buy single shares of stock as framed gifts at www.oneshare.com. The colourful certificates, which will bear the recipient's name, are available for 163 publicly traded companies. Stock in The Walt Disney Co., the site's top seller, bears drawings of iconic characters including Mickey Mouse, Cinderella and Winnie the Pooh. Holiday orders will come in two shipments: You'll receive a startup kit, that includes a booklet explaining stocks and a gift card describing the share purchased; the stock certificate will arrive six to eight weeks later. OneShare CEO Lance Lee said single shares provide a "great teachable moment" by creating an opportunity to discuss what stock is. Young children will enjoy claiming ownership in companies they know, such as McDonald's, Build-A-Bear Workshop or Mattel. There's also plenty of choices for older kids and adults, from Apple to Yahoo, and Boston Beer Co. to Tiffany & Co. Buyers will pay a $39 fee, plus the stock price (based on the prior day's closing price). You can also add from a choice of mattes and frames, as well as an engraved panel with a special message for an extra $10 fee. To help young people get started on saving, another option is a gift card for SmartyPig. The cards can be used to open a SmartyPig.com account or contribute to existing accounts. The idea is to use an account to save for a specific goal. What's different is that the social networking element of the website allows users to accept contributions from others. Another plus, account holders can obtain discounts with certain retailers when they've reached a savings goal If all your teen wants is money, Solheim suggested making up a challenge using any type of gift card. For instance, accompany the card with a pledge to match savings if he or she budgets and spends the money wisely. "Any gift can be turned into a financial lesson with a little creativity," she observed. LEARNING AT ANY AGE Socially conscious young adults may appreciate a donation made in their name to a favourite cause, or a charitable gift card that lets them pick a charity. Created a few years ago, there are now several charity gift card vendors, including The Network for Good, 'TisBest Philanthropy, Just Give and CharityChoice. Like other gift cards, charity gift cards come with fees and expiration dates, so make sure you read the fine print. Other charitable options include organizations like Kiva, which arranges small loans for entrepreneurs in developing countries; and Heifer International, which enables donors to buy animals like goats and chickens for families in poor nations. The Nuru deck of personal finance flash cards can be a great stocking stuffer for someone who isn't likely to read a book on the subject. The 30 cards touch upon investing, budgeting, loans, insurance, retirement and other issues - all in easy-to-understand language. The decks sell for $9.95 on www.nuruplanet.com and other websites. A bolder gift for a young adult would be a session with a financial planner. Jones noted even one visit can help someone get started planning their financial future. fivefilters.org featured article: Normalising the crime of the century by John Pilger |
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