Personal loans – Welcome Echizenshi http://welcome-echizenshi.com/ Thu, 24 Nov 2022 01:45:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://welcome-echizenshi.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Personal loans – Welcome Echizenshi http://welcome-echizenshi.com/ 32 32 What the 8th student loan repayment break means for you https://welcome-echizenshi.com/what-the-8th-student-loan-repayment-break-means-for-you/ Thu, 24 Nov 2022 01:45:25 +0000 https://welcome-echizenshi.com/what-the-8th-student-loan-repayment-break-means-for-you/ Comment this story Comment On Tuesday, the Joe Biden administration announced that the pause on student loan repayments would be extended — again — amid legal challenges to debt forgiveness. This is the eighth extension of the federal student loan repayment moratorium. You may recall that Donald Trump’s administration was able to freeze student loan […]]]>

Comment

On Tuesday, the Joe Biden administration announced that the pause on student loan repayments would be extended — again — amid legal challenges to debt forgiveness. This is the eighth extension of the federal student loan repayment moratorium. You may recall that Donald Trump’s administration was able to freeze student loan repayments in March 2020 because a national emergency was declared in response to the pandemic; Biden extended the national emergency in February 2022.

What does this new deadline mean for borrowers? To find out, I spoke with Mark Kantrowitz, who has worked one-on-one with thousands of borrowers over the past 30 years and is the author of several books on college scholarships and financial aid. , including How to Apply for More College Financial Aid. and Who Graduated from College? Who doesn’t? Our conversation has been edited and condensed.

Alexis Leondis: The most basic question first: when should federal student loan borrowers expect to resume payments, if at all?

Mark Kantrowitz: It will be 60 days after whichever comes first: the legal challenges to debt forgiveness are resolved (whether in favor of the Department of Education or not), or June 30. If the Supreme Court were to rule next week, the earliest they could restart is January 30, but it’s more likely to be August 30 given how long an appeal typically takes.

AL: Will this really be the end?

MK: It’s hard to believe the Ministry of Education when they say this will really be the end. The power to pause payment stems from the Heroes Act 2003, which applies because a national emergency has been declared.

In February or March 2023, the president could renew this declaration, which usually lasts for a year, and cover the current extension of the payment freeze – plus another six months. Nothing prevents them from making a ninth extension. But I think their intention and their hope is that the Supreme Court will somehow settle this by June 30 and that another extension will not be necessary.

AL: Where does that leave the 16 million borrowers who have been notified that they have been approved for $10,000 or $20,000 debt forgiveness? And the 10 million who applied and are still waiting to be heard? What should they do?

MK: They just need to sit still. If approved, they would generally have had 15 days to apply for the pardon. But that’s on hold until the Department of Education wins its appeal in both court cases — the Texas one and the 8th Circuit.

AL: Should we expect any further legal challenges and how might this affect the repayment timeline?

MK: There are two cases still pending; one contributed by the Attorney General of Arizona and the other by the Cato Institute. They are quite similar and likely to be rejected for lack of legal status.

However, House Republicans may have the legal capacity to sue. The idea is that a chamber of Congress – as opposed to individual members – has the right to sue because of the separation of powers. Once the [Republican-controlled] House sits in January, we could see a lawsuit from them. He would oppose the president’s loan cancellation plan, not the extension of the payment break. But it could still affect when refunds resume if it reaches a resolution before June 30.

AL: What is your advice for borrowers caught in limbo?

MK: First, figure out your monthly payment amount and start deducting it from your budget. If you can’t remember what it was like in 2019, call your loan officer or go to studentaid.gov and check your payment history. Set aside this payment in a high-yield savings account.

If you can’t do this, find out about your options. There are programs like economic hardship or income-driven repayment plans that may allow you to suspend or reduce payments. Talk to your loan officer now before the mad rush unless you prefer to be on indefinite hold.

AL: Are there any pitfalls borrowers need to watch out for?

MK: Beware of scammers. They come out en masse whenever there is no clear information. I’ve had a few robocalls before saying we can get you a pardon, but you have to pay us to do it. There are also identity theft scams. Just be aware that the Ministry of Education does not contact you by phone.

If anything, they will contact you via email – but that would only be for borrowers who are still in school and have applied for a pardon and have included their income in the application, not their parents’. . In this case, the Ministry of Education may contact you by email to obtain your parents’ income and see if you are eligible.

AL: With interest rates rising, does it make sense to refinance a federal student loan into a private loan?

MK: I generally caution against refinancing to a private loan and losing the benefits of a federal loan, especially given the payment break. But the way things are going, the possibility of refinancing at a lower interest rate will be gone by August. If you don’t qualify for loan forgiveness and have a higher rate on, say, a federal PLUS loan, it may make sense to refinance a private loan if you can lower your rate by one to two. percentage points.

But if you can get some forgiveness, you don’t want to jump in and refinance and lose that.

AL: Once repayments finally resume, what do you expect in terms of delinquencies and defaults?

MK: Actually, I don’t think the delinquency rate will be as high as the Department of Education and others are predicting. If you look at loans that weren’t eligible for the payment pause, like private loans, there was a three-month spike in delinquencies during the pandemic, and then things normalized. There has been a slight increase in delinquencies for these loans recently, but it’s still not as dramatic as others have claimed.

So I think yes, there will be problems when the federal loan repayments start, but I don’t think it will be as horrible as it has been portrayed.

More from Bloomberg Opinion:

• Holiday shoppers, avoid store credit cards: Alexis Leondis

• Being single is much more expensive: Erin Lowry

• Generation Z really struggles more than Generation Y: Allison Schrager

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Alexis Leondis is a Bloomberg Opinion columnist covering personal finance. Previously, she oversaw tax coverage for Bloomberg News.

More stories like this are available at bloomberg.com/opinion

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Definition, Process, Ways to Avoid https://welcome-echizenshi.com/definition-process-ways-to-avoid/ Thu, 17 Nov 2022 16:25:19 +0000 https://welcome-echizenshi.com/definition-process-ways-to-avoid/ Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page. Foreclosure is when a mortgage lender repossesses your home because you […]]]>

Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

  • Foreclosure is when a mortgage lender repossesses your home because you haven’t paid off your loan.
  • The exact details of a foreclosure process vary depending on your state and the lender.
  • There are options to avoid foreclosure if you act quickly and stay in communication with the lender.

The thought of losing your home is scary. But if you’re no longer able to meet your monthly mortgage payments, the lender will likely pursue foreclosure.

Although foreclosure is a financial situation that no one wants to face, it is useful to understand the details of this legal process.

What is foreclosure?

Foreclosure involves a mortgage lender taking possession of your home because you haven’t paid off your loan. Usually this is due to the lack of several monthly payments. However, the lender can foreclose on a home if the borrower fails to meet any of the other conditions stated in the mortgage documents.

Levon Galstyan, accounting consultant at Oak View Legal Groupsays some of the common reasons homeowners find themselves in this situation include surprisingly high costs, increased interest rates, job loss, medical emergencies that lead to more debt, and natural disasters.

From the lender’s perspective, foreclosure is necessary to recoup financial losses. After taking possession of the home, most lenders will sell it to recover the borrower’s outstanding balance.

Unfortunately for the previous owner, a foreclosure will appear as a negative mark on his credit report for seven years.

The foreclosure process

Details of the foreclosure process vary from state to state. A borrower is technically in default 30 days after missing a payment. Typically, lenders begin the foreclosure process three to six months after the first missed payment.

Once the borrower is in default, the lender indicates its intention to foreclose on the loan by issuing a notice of default. At this point, you will enter the pre-lockdown phase.

“To delay or stop foreclosure, borrowers can challenge the process and file a petition if they need more time,” Galstyan said.

Depending on the situation, the lender may be willing to set up a new method of payment. However, it does involve disclosing your financial situation to the lender or mortgage agent. If he decides to go ahead with the lockdown, the “duration varies by state and often ranges from 120 days to nine months,” says Galstyan.

Throughout the foreclosure process, it is imperative that homeowners carefully read all notices sent by the lender.

“Make sure you attend any hearings you are called to and use the services of your local court’s legal aid department for free advice and guidance,” says Bill Samuel, owner of Development of the blue scalea Chicago-based home buying company.

Types of input

Foreclosures fall into a few different categories. Here is an overview of each:

  • Judicial foreclosure: A judicial foreclosure involves the lender taking legal action in a local court. If your lender is pursuing a legal foreclosure, you will receive a letter in the mail requesting overdue payments. After that, you will have 30 days to submit the money or the house will be sold at an auction conducted by the local court or sheriff.
  • Foreclosure of power of sale: If the mortgage has a power of sale clause, the lender can seek a power of sale foreclosure. After a default on the loan, the lender will send a letter demanding payment. If you don’t catch up within a set time frame, the mortgage company can auction off the property without going through the local court system.
  • Strict lock: With a strict foreclosure, the lender takes legal action after the homeowner defaults on the loan. If you cannot catch up on payments within a specific time frame, the lender will take ownership of the property.

Can I refinance in foreclosure?

If you are having trouble paying your mortgage and want to avoid foreclosure, you may be wondering if reducing your payment through a refinance is an option. It may be, but you’ll usually need to start the process before the foreclosure begins. With a delinquent mortgage, it can be difficult to get approval from a new lender.

Does foreclosure affect my credit?

Since a foreclosure will stay on your credit report for seven years, it can have a lasting effect on your credit score.

With a low credit score, your ability to borrow money in the future is hampered. For example, if you want to finance a vehicle within the next two years, you will likely face higher interest rates and limited borrowing power.

In the years following a foreclosure, your home buying options are also limited. With conventional loans, you will have to wait seven years after a foreclosure to obtain a new mortgage. If you are looking for a government guaranteed mortgage, you may not have to wait that long. But either way, a foreclosure will impact your home buying options for years to come.

7 ways to avoid seizure

If you are facing a foreclosure, it is a stressful and uncomfortable situation. But there are steps you can take to prevent it.

1. Stay in touch with your lender

Lenders generally won’t offer help unless you ask for it. Staying open with your lender about your financial situation could lead to a solution.

2. Ask for abstention

Forbearance is a temporary pause or reduction in your monthly payments. Some lenders are willing to grant this temporary reprieve to avoid foreclosure.

3. Request a loan modification

If your monthly payment is just too high, ask your lender for a loan modification, which is a permanent change in the terms of your loan. A longer repayment period or lower interest rate could result in a more manageable monthly payment.

4. Refinance

For homeowners who are worried about their ability to make future mortgage payments, consider refinancing with the goal of getting a lower monthly payment. You will likely need to be up to date on your payments before you qualify for a refinance.

5. Sell the house

If you can sell the house for more than you owe, you can use the proceeds from the sale to pay off your debt.

6. Pursue a short sale

A short sale is selling your home for less than you owe. This option involves getting approval from the lender before signing on the dotted line.

7. Deed in lieu of foreclosure

If you can’t sell your home, delivering the bill of sale to the lender can free you from your debt.

The bottom line

Foreclosure is a process no one wants to go through, with ramifications that can impact your finances for years to come. If you need help navigating the process, ask a HUD Certified Housing Counselor in your state.

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How to build credit without a credit card https://welcome-echizenshi.com/how-to-build-credit-without-a-credit-card/ Mon, 14 Nov 2022 17:49:00 +0000 https://welcome-echizenshi.com/how-to-build-credit-without-a-credit-card/ Creditworthiness is something every financial institution considers before lending someone money. A credit report which shows that using credit responsibly can make borrowing money to buy a house or car more affordable through lower interest rates. It can also be assessed by employers when you apply for a job, landlords when you want to rent […]]]>

Creditworthiness is something every financial institution considers before lending someone money.

A credit report which shows that using credit responsibly can make borrowing money to buy a house or car more affordable through lower interest rates. It can also be assessed by employers when you apply for a job, landlords when you want to rent an apartment and car insurers when they set your rates.

“We use credit every day,” says Jeanne Kelly, New York-based credit coach and founder of The Kelly Group. But everyone starts with a clean slate, and building credit can take time.

What credit score do you start with?

Credit scores are three-digit numbers created from information in your credit report, including payment history and the amount of debt you have. The score tells lenders how likely you are to repay what you borrow.

To have a score, your credit report must show one or more accounts that are at least six months old and at least one account that has been reported to one of the three credit bureaus—Equifax, Experianor TransUnion—within the past six months.

Credit scores range from 300 to 850. A lower score indicates that there is a greater risk of not paying your bills, based on your history. “Without good credit, you can get a high interest rate, or worse, you may not even qualify for the loan,” says Lyle Solomon, senior counsel at Oak View Legal Groupa Californian company specializing in consumer credit.

A good credit score, according to the Fair Isaac Corporation (FICO) scoring model, is 670 or higher. Another scoring model used by financial institutions is VantageScore, which considers 661 or more to be a good score.

6 Ways to Build Your Credit Without a Credit Card

Opening of a credit card, making purchases and paying off your balance each month is a common way to build up credit from scratch. But this is not the only way.

In fact, 10% of your FICO score is based on your “credit mix,” or the types of loans or lines of credit you have. When you’re just starting out with little to no payment history, your credit mix matters even more. according to MyFICO.com.

Here are six alternatives to opening a credit card to build credit.

1. Credit-generating loan

A credit loan essentially lets you lend money to yourself, Kelly explains. This is an installment loan with fixed monthly payments, but instead of giving you the money up front, the lender deposits it in a savings account or certificate of deposit (CD).

Some banks withhold access to the account until you repay the loan in full, while others will release funds monthly if you make payments on time. “The good thing about it is you show a payment history, and the money will come back to you, and that’s why it’s a loan for yourself,” Kelly explains.

However, these loans often charge interest and origination fees, so make sure you understand the total costs before getting one.

2. Personal loans

Personal loans, which can be secured or unsecured, allow you to borrow a large or small amount of money to use for anything. You repay the loan in fixed installments over several years. The lender reports the balance and your current payment activity to the credit bureaus.

With a low or no credit score, it can be difficult to qualify for a personal loan at a competitive interest rate. Asking a trusted friend or relative with good credit to co-sign the loan could help you get approved and may lead to a better interest rate.

However, warns Kelly, the co-signer should be prepared to step in if you can’t make a payment on time, because a late or missing payment also affects their credit.

3. Car loan

A car loan is money you borrow from a car dealership or third-party lender to buy a car. Usually this requires a cash deposit, although this is not always the case. And without a credit history, you might want to add a co-signer to qualify for a better interest rate.

Payments are part interest and part principal, and due on the same day each month until the balance is paid off. If you miss a payment, the lender may be able to repossess your car. It is similar to a mortgage in this way, since the loan is secured by a physical asset. As with other loans, the lender is responsible for reporting your car loan payments to the credit bureaus. An on-time payment history will boost your credit score.

4. CD loan

A CD is like a savings account, except your money is locked in for one to five years. The trade-off is that you can earn more interest than you would by keeping your money in a traditional savings account. You can always withdraw your money earlier, but you will have to pay a penalty.

A CD loan involves taking out a loan and using the CD as collateral. This means that you receive a lump sum of cash and then pay back what you borrowed, plus interest, to the bank each month. If you miss payments, the bank may take your CD and may even charge a penalty, Solomon says. “Using a CD-secured personal loan to improve your credit score will only work if you make payments in full and on time,” he adds.

5. Federal Student Loan

The U.S. government lends students money to pay for undergraduate and graduate degrees and professional certification programs — and you don’t need a credit history to qualify.

Unlike private student loans, there is no credit check to obtain most federal student loans. Instead, eligibility is based on citizenship, registration, and in some cases financial need, so it can be a good way to start building credit early.

On-time payments will increase your credit score, while late or missed payments will have a negative impact. “Student loans can also help improve your credit score by increasing your average account age and diversifying your credit mix,” Solomon says.

Some student loans only go into repayment after the borrower has left school, which is called forbearance. Even if you are not actively making payments while forbearing, the loan will still appear on your credit report as being in good standing.

6. Peer-to-peer lending

Peer-to-peer (P2P) lending platforms help you borrow money from individuals rather than a bank or credit union. Investors lend money and profit from the interest you pay on the loan.

“Generally, P2P lenders look for scores ranging from fair to excellent, i.e. 580 or higher,” Solomon says, so you’ll need a credit history to qualify. “Because the whole process is online and streamlined, you can get a loan in just days if you qualify,” he adds.

Another benefit is that P2P lenders only do a soft inquiry to check your credit report, Solomon says. Traditional lenders usually do a thorough investigation that could affect your credit score.

A disadvantage of using P2P platforms is that they can send your account to collections faster than a traditional lender if you miss a payment.

Other options

If you’re looking to potentially speed up the process of building credit or are worried about borrowing money just yet, here are some additional strategies to increase your score.

  • Piggybacking on someone else’s good credit: Many credit card companies allow cardholders to add authorized users to their accounts. As an authorized user, you may obtain a card to use for purchases, but the primary account holder is ultimately responsible for payments. The potential benefit to you, assuming the primary account holder is a responsible borrower, is that their credit account will show up on your credit report, along with payment activity. But not all lenders report authorized users to the credit bureaus, Kelly says, so make sure that’s an option before you tangle with another borrower.
  • Report rent and utility payments to offices: The three major credit bureaus do not require landlords and property managers to report rental or utility payment activity, but they will welcome information when submitted. If you pay your rent and utility bills on time, consider asking your landlord if they can report your payments to the credit bureaus or do it yourself. There are several online services (many are free, but some charge a one-time or monthly fee) that you can sign up for. Some of them will even report the last two years of positive payment history.
  • Report recurring bills to offices: Reporting recurring payments, such as streaming subscriptions and mobile phone plans, is another way to prove your reliability. bill payment. Various online services, including one offered directly by the Experian credit bureau, allow you to connect the bank accounts you use to pay your recurring bills, then report those with a positive payment history to some or all three credit bureaus .
  • Pay your bills on time: The most important factor when it comes to establishing good credit is debt payment history, which makes up 35% of your FICO score. Making full and timely payments on every loan or line of credit is imperative to maintaining strong credit.

The take-out sale

The best way to build credit is to borrow money and pay it back on time. You can do this through credit cards or installment loans, although it can be difficult to qualify for either if you don’t have a credit history to back it up. . The solution can start with options that don’t require a credit check, like federal student loans or credit loans, or options that ask for collateral in exchange for a lower interest rate, like CD loans. .

You can also sign up for a service that reports non-debt bills that you regularly pay on time, such as monthly fees or rent, to the credit bureaus. “These are things that can work so quickly [as loans] and they’re inexpensive,” Kelly says. “These are building blocks.”

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Could a personal loan help you pay off more debt by 2023? https://welcome-echizenshi.com/could-a-personal-loan-help-you-pay-off-more-debt-by-2023/ Wed, 09 Nov 2022 18:00:42 +0000 https://welcome-echizenshi.com/could-a-personal-loan-help-you-pay-off-more-debt-by-2023/ Image source: Getty Images If you’re hoping to be debt free, you should read this. Key points Paying off debt can be a challenge, and this is especially true if your debt has a high interest rate. A personal loan could help lower the cost of your debt and make repayment easier. If you hope […]]]>

Image source: Getty Images

If you’re hoping to be debt free, you should read this.


Key points

  • Paying off debt can be a challenge, and this is especially true if your debt has a high interest rate.
  • A personal loan could help lower the cost of your debt and make repayment easier.

If you hope become debt free by 2023 – or at least significantly reduce your debt – you don’t have long to work on that goal. And, there’s a potential move you could make that could make paying off your balance much easier (depending on your situation). You could remove a Personal loan.

Borrowing more money can seem counter-intuitive when trying to get out of debt. But, in some circumstances, it could be exactly the right decision. Here’s why.

How a Personal Loan Could Help You Pay Off Your Debt Faster

Taking out a personal loan could actually help you pay off more of your debt by 2023 if your personal loan is at a lower rate than the debt you are currently trying to pay off.

See, if you have high-interest debt (like credit card), chances are that a large portion of every payment you make will be eaten up by interest. You may be paying very little capital because your financing costs are too high. So all those payments you work hard to send to your creditors may do very little to help you move towards your goal of becoming debt free.

If you can qualify for a low-interest personal loan, you can turn that debt from high-interest to low-interest. For example, instead of paying 17% annual interest on a credit card (or more), you could pay 8% or 10% or whatever rate you can qualify for on your personal loan. You then use the proceeds from your personal loan to pay off that expensive credit card debt.

If, for example, you owe $4,000 on one card and $5,000 on another, a personal loan of $9,000 could free you from both loans. You would only have one debt to pay and at a lower interest rate.

Once you lower your rate, more of your monthly payment should go towards reducing your balance so you can get out of debt faster. This can help you make much more progress on your debt repayment methods over the rest of this year and next year.

Does this decision suit you?

Refinancing your high-interest debt may be the right decision if you can qualify for a new loan at a lower rate and you’re not extending your repayment schedule too much by doing so. You can use your new low-interest personal loan not only to lower credit card rates, but also for any type of expensive debt you have, such as payday loans or medical debt.

You can shop around and find out what rate you can qualify for without affecting your credit score to find out if this approach will work. You’ll also want to make sure you can comfortably make the payments on your new personal loan and that you’re sticking to a budget so you don’t charge your credit cards more after you pay them off.

If you can get a new loan at a low rate and can rely on yourself to be responsible for repayment, there’s no reason not to move forward with this strategy as soon as possible so you can repay. the maximum amount of your debt by 2023.

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.

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Down 79.9%, this growth stock is a screaming buy right now https://welcome-echizenshi.com/down-79-9-this-growth-stock-is-a-screaming-buy-right-now/ Mon, 07 Nov 2022 10:29:00 +0000 https://welcome-echizenshi.com/down-79-9-this-growth-stock-is-a-screaming-buy-right-now/ Sometimes it’s worth looking below the surface. Shares of Sofi Technologies (NASDAQ: SOFI)a company known for refinancing student loans, has been hammered since President Joe Biden tried to wipe out a large chunk of outstanding student loans. SoFi’s stock is now down 79.9% from its all-time high, set in 2020. But those of us who […]]]>

Sometimes it’s worth looking below the surface. Shares of Sofi Technologies (NASDAQ: SOFI)a company known for refinancing student loans, has been hammered since President Joe Biden tried to wipe out a large chunk of outstanding student loans.

SoFi’s stock is now down 79.9% from its all-time high, set in 2020. But those of us who have paid closer attention to the booming all-digital bank know that its operation Student loan refinancing has become a relatively small part of a growing business that is taking its industry by storm.

SoFi recently reported third quarter results, and they were much better than the stock price suggested. In fact, the company has given investors heaps of reasons to buy the stock now and keep it for the long term. Here are three that stood out the most.

1. Rapid Membership Growth

SoFi’s overall growth is out of this world. The bank added 424,000 new members in the third quarter, bringing its total to 4.7 million, or 61% more than a year earlier.

Unlike many of its fintech peers, SoFi obtained a national banking charter in January. This allows it to fund loan products directly with consumer deposits. Total deposits grew 86% year-over-year to $5 billion at the end of September, and we can expect that figure to continue to grow rapidly. About half of new SoFi Money members become direct depositors within their first 30 days.

To give you an idea of ​​where SoFi deposits could go, consider the oldest digital bank in the industry, Allied Financial. This is the former financial arm of General Motors, and has 2.6 million retail depositors. Despite having 2.1 million fewer depositors than SoFi, total retail deposits at Ally reached $133.9 billion at the end of the third quarter.

2. Business is still booming

Financial services products such as checking accounts and savings accounts are outpacing new lending products. That said, growth in loan products is much stronger than one would expect in the face of rising interest rates. SoFi ended September with 1.3 million loan products, 24% more than a year earlier.

In addition to a consumer banking business, SoFi owns the leading technology platform that fintech companies use to issue and manage their own financial products. At the end of September, its Galileo platform activated 124 million accounts for more than 55 partner platforms. It’s been a bad year for fintech startups, but the number of Galileo-enabled accounts still grew 40% year-over-year in the third quarter.

Image source: Getty Images.

3. Positive cash flow

Fintech companies in high growth stages tend to suffer heavy losses as they try to expand. SoFi seems like a great stock to buy now as it is already generating positive cash flow.

As any traditional bank will tell you, using relatively low interest customer deposits to fund higher interest loan products, such as personal loans, is a lucrative business. In its second full quarter of operations, SoFi’s banking business generated net income of $29 million based on generally accepted accounting principles (GAAP). This equates to a profit margin of 11%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled year over year to $44 million.

Look forward

SoFi shares have fallen sharply, but they are still trading at a fairly high valuation. The recent share price is 40.7 times the midpoint of management’s 2022 Adjusted EBITDA guidance range.

Actual 2019 Real 2020 Actual 2021 Orientation 2022
Adjusted net income $451 million $621 million $1.01 billion Between $1.517 billion and $1.522 billion
Adjusted EBITDA (loss) ($148 million) ($45 million) $30 million Between 115 and 120 million dollars

Data source: SoFi Technologies.

More than 40 times adjusted EBITDA seems like an outrageous multiple for a bank until you consider how quickly SoFi is growing its results. As recently as 2020, the bank didn’t even have a positive Adjusted EBITDA to report.

In the third quarter, the decline in the number of student loans and mortgages was offset by the surge in demand for personal loans. Before you fill your portfolio with SoFi stocks, it’s important to realize that soaring interest rates could also put pressure on SoFi’s personal lending business. This stock is a screaming buy right now as long as you make it a relatively small part of a well diversified wallet.

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OMF dividend announcement $0.9500/share 10/26/2022 https://welcome-echizenshi.com/omf-dividend-announcement-0-9500-share-10-26-2022/ Thu, 27 Oct 2022 10:17:38 +0000 https://welcome-echizenshi.com/omf-dividend-announcement-0-9500-share-10-26-2022/ OneMain Holdings Inc (NYSE:OMF) declared on 10/26/2022 a dividend of $0.9500 per share payable November 14, 2022 to shareholders of record as of November 07, 2022. OneMain Holdings Inc (NYSE:OMF) has paid dividends since 2019, has a current dividend yield of 11.6923074722% and has increased dividends for 2 consecutive years. The market capitalization of OneMain […]]]>

OneMain Holdings Inc (NYSE:OMF) declared on 10/26/2022 a dividend of $0.9500 per share payable November 14, 2022 to shareholders of record as of November 07, 2022.

OneMain Holdings Inc (NYSE:OMF) has paid dividends since 2019, has a current dividend yield of 11.6923074722% and has increased dividends for 2 consecutive years.

The market capitalization of OneMain Holdings Inc is $4,426,305,000 and has a PE ratio of 3.94. The stock price closed yesterday at $32.50 and has a 52-week low/high of $28.77 and $56.50.

OneMain Holdings is a financial services holding company. Co. provides origination, underwriting and servicing of personal loans to non-preferred clients. In its consumer and insurance segment, Co. originates and services secured and unsecured personal loans, issues credit cards, and provides optional credit and non-credit insurance and related products through its branches and its centralized operations. The origination and servicing of personal loans, credit cards and insurance products are Co.’s primary businesses. Co.’s insurance business is carried on through its wholly owned insurance subsidiaries, American Health and Life Insurance Company and Triton Insurance Company.

For more information on OneMain Holdings Inc, click here.

Current dividend information for OneMain Holdings Inc as of the date of this press release is:

Dividend declaration date: October 26, 2022
Ex-dividend date: November 04, 2022
Dividend record date: November 07, 2022
Dividend payment date: November 14, 2022
Dividend amount: $0.9500

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Student Loan Refinance vs Consolidation: What’s the Difference and Which Should I Choose? https://welcome-echizenshi.com/student-loan-refinance-vs-consolidation-whats-the-difference-and-which-should-i-choose/ Sun, 23 Oct 2022 14:48:05 +0000 https://welcome-echizenshi.com/student-loan-refinance-vs-consolidation-whats-the-difference-and-which-should-i-choose/ Jit has the potential to build a prosperous society financial future. I thought that was the whole idea of ​​going to college. However, if you have a lot of student debt and meaningful monthly payments, your financial situation may not be as ideal as you had hoped. You may be able to change that by […]]]>

Jit has the potential to build a prosperous society financial future. I thought that was the whole idea of ​​going to college. However, if you have a lot of student debt and meaningful monthly payments, your financial situation may not be as ideal as you had hoped.

You may be able to change that by refinancing or consolidating your student debt. But how do these two choices differ from each other? What choice will impact your life, then?

Terms “refinancing” and “consolidate” are frequently used in connection with student loans. Although they have different meanings, both alternatives serve the same purpose – to simplify your student loan repayments by combining multiple loans into one loan with one monthly payment.

What each solution can do for you is where the biggest differences lie. You refinance your federal and private student loans at rreduce interest chargesand you combine your federal loans to have more control over them.

Student Loan Refinance

You may have combined federal student loans with loans from private lenders to pay for your education. Each of the loans may have different terms, interest rates and amounts. While some of your loans may have fixed rates, others may have variable rates. You can consolidate all of your student debt, both federal and private, into one more affordable loan using student loan refinancing, which is only possible through a private lender. If your credit is in good standing, the new interest rate on this refinanced loan may be lower.

To qualify for a refinance loan and get a cheaper rate, you must have a strong credit history or a co-signer with good credit. Another crucial fact to consider is that when you refinance a federal loan using a private loan, you are effectively converting that federal loan into a private loan. Therefore, you should not include your federal loans in your refinance if you want to take advantage of the benefits of federal loans, such as income-based repayment alternatives and loan forgiveness. You could easily choose to refinance your personal loans as an alternative.

Student loan consolidation

Consolidation is an additional choice if you have federal loans and want to retain the security and other benefits that come with them. Consolidating all of your federal student debt into one loan from the federal government is known as federal loan consolidation. The federal government does not allow you to consolidate private debt, unlike refinancing into a private loan, which allows you to refinance federal and private loans.

Another important distinction with consolidation is that the interest rate, which will be fixed, will not be lower. Instead, it will be a weighted average, rounded to the nearest 1/8%, of all the interest rates on your current federal loans.

Let’s say you have six federal student loans. The interest rates of three of them are 5%while the rates of the other three are seven%. Your new interest rate, based on the weighted average, would be 6% if you consolidated. This indicates that three of your loans will experience rate increases, while three will experience rate decreases. Consolidation, however, would result in a single loan with a 6% interest rate.

Which should I choose?

Although they work in different ways, both refinancing and consolidation can help you pay off your student loan debt. Refinancing is not an option for people whose credit rating does not exceed lenders’ requirements, despite the fact that it can help you save money and provide you with great flexibility in your term of reimbursement and your monthly payments. Additionally, you will no longer be eligible for federal loan benefits.

Consolidation won’t save you money; in fact, it may cost you more; but it can help you achieve your goals without sacrificing the benefits provided by the Department of Education.

Research both alternatives and compare student loan refinance rates if you’re trying to decide between refinancing and consolidating your debt. Every scenario is unique, so while it might work for a friend or family member, that doesn’t mean it’s the perfect decision for you.

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Best Buy Now, Pay Later Apps of 2022 https://welcome-echizenshi.com/best-buy-now-pay-later-apps-of-2022/ Thu, 20 Oct 2022 05:22:01 +0000 https://welcome-echizenshi.com/best-buy-now-pay-later-apps-of-2022/ If a retailer offers the option to pay using a “Buy Now, Pay Later” app, you may be able to buy more than you normally would. You will request it at the point of sale and, if approved, the purchase will be divided into equal installments. Sometimes the payments are minimal and do not include […]]]>

If a retailer offers the option to pay using a “Buy Now, Pay Later” app, you may be able to buy more than you normally would. You will request it at the point of sale and, if approved, the purchase will be divided into equal installments. Sometimes the payments are minimal and do not include high fees or interest.

Buy Now, Pay Later apps provide an affordable and convenient way to shop. Some BNPL companies also report to credit bureaus to help you establish credit, assuming you make timely payments. Still, they might not be the best option for you, as you might be tempted to overspend and incur significant penalties if you fall behind on your payments.

Here are the best apps to buy now, pay later if you’re in dire financial straits and need to make a big purchase:

To affirm Affirm Pay in 4: No interest charges or late payment penalties

Monthly payments: APR up to 30%

4.7/5.0 4.9/5.0
After-payment Pay-in-4 orders: Late payment fee up to 25% of the purchase price 4.6/5.0 4.9/5.0
PayPal Pay in 4 No interest charges or late penalties 4.3/5.0 4.8/5.0
Perpay No interest charges or late penalties 3.4/5.0 4.7/5.0
Sezzle No interest charges

Rescheduled payment fees, failed payment fees and convenience fees may apply

$10.00 reactivation fee if your account is deactivated due to non-payment

4.7/5.0 4.9/5.0
Zip (formerly Quadpay) $4.00 payout fee per order (or $1.00 per payout)

Late penalty up to $7

4.3/5.0 4.9/5.0

To affirm

Affirm is a buy now, pay later option that avoids late penalties, making it a top choice for consumers. It’s accepted at over 29,000 retailers nationwide, and you can make purchases interest-free by selecting the four installment payment plan. But if you opt for the monthly payment option to get a longer repayment period and a credit limit of up to $17,500, your purchases could earn interest. There’s an upside, though, because Affirm charges simple interest, which keeps your balance from growing over time.

Advantages:

  • Accessible online or via mobile app (for in-person purchases)
  • No interest charges on purchases made with Affirm Pay in 4
  • Create a credit with the monthly payment option
  • No late penalties

The inconvenients:

  • Purchases made with the monthly payment option may be subject to interest
  • Late payments could hurt chances of future approvals
  • Payments made on Affirm Pay in 4 cannot help build your credit

After-payment

Afterpay is another buy now, pay later app that lets you shop now, but you’ll pay over six weeks in four interest-free installments. It can be used for online purchases or you can pay at participating outlets using the virtual card. Additionally, you can change the due date of an upcoming payment without incurring any penalties. You can get started with Afterpay without affecting your credit score, as the app only does simple credit extraction.

Advantages:

  • No interest on purchases
  • Soft pull when requesting an account
  • Buy online or in stores
  • Earn rewards by shopping with Afterpay and paying on time

The inconvenients:

  • Late payment penalty of up to 25% of the purchase amount
  • First payment required at point of sale
  • Does not help establish credit, as timely payments are not reported to credit bureaus

PayPal Pay in 4

You can use PayPay Pay in 4 to split purchases between $30 and $1,500 to make them more affordable. The first payment is due at the point of sale and the other three are due every two weeks. This payment option has no registration fees or interest charges, and you will not be subject to late payment penalties.

Advantages:

  • No interest charges or late payments on purchases
  • Accepted at millions of online retailers
  • No credit check required
  • Includes purchase protection to protect your information

The inconvenients:

  • Only available in certain states
  • Not accepted for in-store purchases
  • Purchases capped at $1,500

Perpay

Perpay is a “Buy Now, Pay Later” app that gives consumers the best of both worlds: you can make daily purchases and pay over time while building your credit. You may be approved with less than perfect credit because there is no credit check. The average user sees a 39 point boost while using the app, and payments are automatically deducted from your paycheck to make managing your account easier. Payment history is reported to major credit bureaus to help improve your credit health.

Advantages:

  • No credit check
  • Interest-free purchases payable over time
  • Consumers with bad credit may qualify
  • Access higher spending limits and more affordable payments over time

The inconvenients:

  • Purchases must be made through Perpay’s marketplace
  • Reimbursement limited to direct deposits via payroll
  • Shipping delayed until first payment is received

Sezzle

Plus an interest-free buy now, pay later option, Sezzle is quite flexible as you can enjoy a generous credit limit of up to $2,500 and make four interest-free payments over six weeks. Plus, you’ll have the luxury of deferring one payment per purchase for up to two weeks without incurring additional fees. You can also defer later payments to meet your needs, but fees will apply.

Advantages:

  • Can be used online or in person at over 45,000 stores
  • Flexible credit check that won’t affect your credit score
  • No interest charges or late fees

The inconvenients:

  • 25% deposit requirement
  • $10 reactivation fee for deactivated accounts
  • May be subject to failed payment or convenience fees

Zip (formerly Quadpay)

Formerly known as Quadpay, Zip can be used online or in-store with a virtual card where Visa is accepted. You will repay what is due in four installments over six weeks, with the first installment due at checkout. There is no credit check when you apply, and account activity will not impact your credit score since Zip does not report to major credit bureaus.

Advantages:

  • Instant Approvals
  • No interest charges on purchase
  • Good credit is not necessary
  • No unfavorable credit reports for late payments

The inconvenients:

  • First payment due at checkout
  • $4 installment fee per order
  • Late fees up to $7

Be sure to weigh the pros and cons of buy now, pay later applications before applying for a loan.

Advantages

Consumers often prefer this payment method over others because of its convenience. You will find that it is more readily available than a credit card or personal loan, especially if you have bad credit.

Plus, it’s relatively simple to apply, and you’ll know immediately if you’re approved, along with the terms of the payment plan. Another big plus is that many applications don’t do a thorough credit check — which could lower your credit score — when you apply.

The inconvenients

Despite their streamlined application process and simple payment plans, these apps have some downsides that are worth considering. For starters, you could easily become overburdened if you overspend and have trouble keeping up with payments, which can lead to late fees and unfavorable credit reports.

Some apps report on-time payments to credit bureaus, but others don’t. So your credit health may not reap the benefits even if you make timely payments or repay the loan early.

When evaluating buy now, pay later apps to find the best option, consider these factors:

  • Availablity: Can the app be used online and in-store, or is it limited to one or the other?
  • APR and fees: Does the app charge interest or fees on purchases? Are there any late penalties or prepayment charges?
  • Credit report: Are on-time payments reported to major credit bureaus to help you build your credit? If not, are late payments reported?
  • Interest rate: If so, are the interest rates comparable or lower than other paid apps?
  • Repayment Terms : How long are the repayment periods? Will you repay in equal installments, and how often?

If you’d rather explore other ways to borrow money before deciding to buy now, pay later, here are a few worth considering:

  • Personal loan: This debt product offers you an extended repayment period and a more affordable monthly payment. However, you will probably pay a lot more interest. Also keep in mind that the longer the term of the loan, the higher the borrowing costs.
  • 0% interest credit card: You can make purchases without interest during the promotional APR period – usually between 12 and 24 months. Be sure to pay the balance in full before it expires or interest will start to accrue and be added to the outstanding balance.

At the end of the line

A buy now, pay later app can ease the financial stress if you need to make a purchase but don’t have the necessary funds. The application process is often transparent; you can start making purchases immediately if approved. Still, these apps aren’t without their downsides, so you should do your homework and compare options before deciding which app to use or whether a funding alternative, like a personal loan or a 0% interest credit card, would work. better suited.

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Gurney leads Sonoma City Council candidates in fundraising https://welcome-echizenshi.com/gurney-leads-sonoma-city-council-candidates-in-fundraising/ Mon, 17 Oct 2022 22:41:22 +0000 https://welcome-echizenshi.com/gurney-leads-sonoma-city-council-candidates-in-fundraising/ With less than a month to go before the Nov. 8 election to fill three vacant Sonoma City Council seats, the latest campaign finance filings among the five council candidates show John Gurney has a sizable contribution advantage — outpacing the second largest fundraiser during this period by almost 34%, or $4,400. According to campaign […]]]>

With less than a month to go before the Nov. 8 election to fill three vacant Sonoma City Council seats, the latest campaign finance filings among the five council candidates show John Gurney has a sizable contribution advantage — outpacing the second largest fundraiser during this period by almost 34%, or $4,400.

According to campaign fundraising documents filed with the City of Sonoma, from July 1 to September 24, top fundraiser Gurney received $12,745 in total contributions, followed by Thomas Deegan, who received $8,388.46. $ of contributions.

Meanwhile, Patricia Farrar-Revis had raised $7,900.51; Ron Wellander $6,263; and Mike Nugent, $1,250.

The contribution totals of the three highest campaign fundraisers were all bolstered by loans to their campaigns from themselves, family members or businesses, with Gurney reporting $5,000 in loans from himself. same; Farrar-Revis, $6,175 from herself; and Deegan declaring $5,895.46 in loans from his wife, Kathrina Deegan, and the business, The Deegan Group.

Election law allows candidates, family, or friends to make personal campaign loans that can be repaid by outside contributions made before the election. Unlike other contributions, these candidate loans are not subject to any limits, but are subject to additional reporting, according to the Federal Election Commission.

The City of Sonoma in June raised its individual monetary contribution limit to $500; it was previously set at $100.

Gurney said the personal loans were needed because outside fundraising was behind his campaign spending schedule, which to date, he said, is about $17,000, covering the buying signs, a campaign website, photographs, brochures, survey postcards, remittance envelopes and its first mailer, which was sent out this week.

“We didn’t raise enough to cover all of these costs,” Gurney told the Index-Tribune. “I lent campaign funds to keep us going.”

Nugent, variously, does not plan to make personal loans to his campaign, but “depends on the generosity of people who love Sonoma to support my campaign.” As for campaign costs, Nugent reported $99.80 in total expenses. He said back surgery had limited how far he could ‘walk the compound’ and he would ‘assess’ his reach on social media and the mail, ‘with an eye on a strictly budget-based on our ability to get support”.

Deegan, in his Sept. 24 filing, reported $7,681.22 in expenses that he said was largely spent on “providing information to the community,” such as brochures, billboards, direct mail and digital communications.

Farrar-Revis said his expenses of $2,687.97 were for signage, solicitation cards and mailings. “I also have smaller expenses for clipboards and pencils for volunteers – and my Facebook page,” she added.

Wellander joins Nugent as one of two candidates in the race so far not to make personal campaign loans. With total contributions of $6,263, Wellander trails only Gurney in non-personal loan contributions. He said he spent the $3,939.43 of his funds “much like other candidates” on signage, a website, promotional literature and “neighborhood mixers” and “collection rallies.” of funds”, such as $641 for a campaign launch event.

Email Jason Walsh at Jason.walsh@sonomanews.com.

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Are you planning your honeymoon? Here’s how much you need to save https://welcome-echizenshi.com/are-you-planning-your-honeymoon-heres-how-much-you-need-to-save/ Sat, 15 Oct 2022 15:00:34 +0000 https://welcome-echizenshi.com/are-you-planning-your-honeymoon-heres-how-much-you-need-to-save/ Image source: Getty Images Here is the budget to plan for this vacation after the wedding. Key points The average cost of a honeymoon is $4,600, according to The Knot. It’s best to pay for your honeymoon with your savings to avoid going into debt. Other ways to pay for a honeymoon include credit cards, […]]]>

Image source: Getty Images

Here is the budget to plan for this vacation after the wedding.


Key points

  • The average cost of a honeymoon is $4,600, according to The Knot.
  • It’s best to pay for your honeymoon with your savings to avoid going into debt.
  • Other ways to pay for a honeymoon include credit cards, loans, or a honeymoon fund on your wedding registry.

For many couples, the honeymoon is the best part of the whole wedding experience. Your first vacation as a married couple is always a special experience, and it’s especially nice to relax after so much time preparing for your big day.

To avoid money stress, it’s a good idea to have a honeymoon budget. Whether you’re planning your wedding right now or want to know for later, here’s how much to save for a honeymoon.

How much does an average honeymoon cost

The average honeymoon costs $4,600, according to research by The Knot. He surveyed more than 15,000 couples who got married in 2021 about their weddings and honeymoons.

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Since this is an average, it should be mentioned that honeymoon costs vary greatly depending on several factors. Where you go, when and how long you stay will all play a big role in how much money you need. Of the couples surveyed by The Knot, around 10% spend more than $10,000 on honeymoons, while 20% opt for a smaller mini-moon.

Simply put, if you think your honeymoon will be similar to those of other couples you know, then $4,600 is a good savings goal. It’s a safe number that should put you in a position to book a honeymoon you enjoy.

However, if you think you’re going to spend a lot more or less than the average, that’s another story. In this case, start researching the costs of what you want to book so you can adjust your goal accordingly. If you know you want a luxurious honeymoon, then $4,600 might not be enough. And if you prefer something smaller, saving that much probably isn’t necessary.

How to pay for your honeymoon

The best way to pay for your honeymoon is from your savings. This is what 60% of couples surveyed did, and it certainly helps when you can get married without adding unnecessary debt.

Saving thousands of dollars isn’t something most of us can do overnight. But if you and your partner both commit to saving each month, you could have a sizable honeymoon fund on your wedding day.

Let’s say you’re aiming to save that $4,600 for your honeymoon. Here’s what you can do: Start by opening a bank account specifically for honeymoon savings. High-yield savings accounts are the best option for this, as they keep your money safe and also offer high interest rates. Then you and your partner can decide how much you each want to transfer to the account per month.

With two people participating, this honeymoon fund can grow quickly. You could have saved $4,600 in 12 months, each of you depositing less than $200 per month.

Other ways to fund your getaway

If you can’t save enough for the honeymoon you want, there are a few other options. You could include a honeymoon fund on your wedding registry. Your guests can then send you money for your honeymoon instead of a gift. The Knot found that 27% of couples did so in 2019.

One way to make this a little more special is to have specific honeymoon-related items that guests can purchase for you. For example, your registry could include meals while you are traveling, a couples massage where you are staying, etc. This adds more of a personal touch for the giver.

Credit cards and personal loans are also ways to pay for a honeymoon. I recommend looking at 0% APR credit cards first. These credit cards have a 0% introductory APR on purchases, which means that as long as the introductory period lasts, you are not charged any interest. For example, if a credit card has an introductory APR of 0% on purchases for 15 months, you can charge them your honeymoon expenses and have more than a year to pay them off.

Personal loans, sometimes called wedding loans when used for wedding expenses, are another way to borrow. And couples who need to get a wedding loan soon may be in luck, as personal loan rates have dropped more than 10% recently.

You also always have the option of going on a honeymoon that fits your current budget or waiting to do so after saving more. Although it is traditional to go there soon after the wedding, many couples wait. Remember, it’s your trip and you can go when it’s best for you as a couple.

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