Secured or Unsecured: Do You Know Which Loan Type You can Quality for?

Personal loans may seem complicated, but they don’t really have to be. Generally, they fall into one of the two categories; either secured or unsecured. The main difference between them is that with secured loans, something you own is taken as security that protects the lender in a non-payment scenario. But what else is there to know about these two predominant types of loans?

Secured loans offer the least risk to lenders

Due to this, they are also easier to qualify for, even if you don’t exactly have a shining credit score. However, if you do decide to take one, you’re going to be asked to offer something of value that can be used as non-payment security. For example, a suitable asset you can offer is real estate deed, which the lender will hold until the point of you repaying the debt.

If you don’t repay your secured loan, the lender can sell the item of value. That way, they can recuperate the losses. Typically, the item of value is an extra vehicle your own, your house, etc.

Are you seeking lower interest rates? Then secured loans are a great option to consider!

Even though the interest rates of secured loans are generally on the lower side, it’s important to keep in mind that they are mostly meant for larger purchases (like paying for a new house). People can easily end up paying them back for decades to come, and in some cases, even for the remainder of their lives. Therefore, even though the interest is lower per se, it could easily reach a grand total that’s higher than all the other options in the long run.

If you’re not comfortable risking an item of value, unsecured loans may be right for you

On the flipside, don’t be surprised if you won’t be able to get approved just like that; a stellar credit score is needed. It’s quite simple to understand why that is – basically, the lender is trying to manage the risk as efficiently as possible, meaning that the lower the applicant’s credit score, the riskier it gets to do business with them.

Interest rates are another aspect where this shows, as they will generally be on the higher side – much higher in comparison. Unsecured loans are also known for their not-as-favorable terms.

Unsecured loans usually involve smaller amounts of money

As a general rule of thumb, they are under $5000, and people tend to use them to pay for their studies, a personal vehicle, to renovate their homes, make small repairs, etc. There is another reason for this; the less money there is at stake, the less risk the lender is subjected to, so it’s easy to see why lenders are not often willing to approve more than the said amount as a loan. In other words, that number didn’t come out of the blue.

What to do if you don’t own anything of value and your credit score is not exactly something to write home about?

Not owning anything of value makes you ineligible for a secured loan, and a less than stellar credit score will make it harder for you to get approved for an unsecured loan. This can be a tricky situation to find yourself in, but luckily, there is an answer.

Without making it too complicated, basically, you need to find someone with a better credit score to cosign the loan. That way, should things go sideways and you find yourself unable to make payments, the cosigner would be held responsible.

Understandably, this option is not ideal, since it puts a lot of pressure on the cosigner. Therefore, you should always exhaust your other options prior to getting them involved (even if they are your close friends or relatives).

The consequences of not being able to make your payments on time

Since you’re already familiar with their main differences, let’s take a look at their similarities. If you allow yourself to get sloppy with your payments and don’t make them on time, the consequences are going to be visible not only on your credit score, but in your repayment history as well.

Again, don’t take these matters lightly, because being 30 days late with your payment can dramatically lower your credit score. If your payment is 150 days late, expect to be reported to the credit bureau.

If this was a secured loan, you can very well kiss your collateral items goodbye. You don’t want things to come to this point, as debt collectors can get involved, you can get sued, and all sorts of other unpleasant complications can take place. Therefore, it’s best to have some sort of steady income so you’ll be able to make your payments on time with zero problems.

What’s the final verdict?

Quite frankly, there isn’t any. It all depends on your unique circumstances and the situation you’re in.

The conventional wisdom dictates that you should only get a loan if you can’t raise the funds needed in any other way, and that you should only get a secured loan if you have money coming in on a regular basis. Alternatively, being prepared to lose the collateral item is another way to deal with it, but surely, it’s not what anyone would recommend.

It’s also a good idea to do some research on the lender you’re interested in working with. Are they reliable when it comes to fulfilling their part of the deal? Are their terms reasonable? Learning what other people have to say about them will also help you make a better decision. In order to check out the ratings, reviews, and additional details, visit loanreviewhq.com for more information and helpful tips or simply do it the good old way by firing up a search engine of your choice and sifting through the search results manually.

Conclusion

Being able to manage your monthly payments comes down to how well you can handle your personal finances. Can you resist the temptation to go on a spending spree and only treat yourself to something nice when you can afford it? Whether you choose a secured or an unsecured loan, these are the qualities you’re going to need in order to prevent things from going out of hand.

 

How to Choose an Online Forex Broker That Suits Your Needs

Being a forex trader can offer an exciting and opulent lifestyle, but it takes a lot of patience, knowledge and hard work to arrive there.  This market place is one of the biggest, most liquid in the world with a daily turnover that surpasses $5 trillion and being a part of it can sometimes be extremely challenging. The key is to always make the right choices and understand your needs, to embrace your individuality and to master the art of forex trading in your own way.

The importance of choosing the right forex brokerage company

Your success in trading depends on the online forex broker you choose, because that will be your ‘work place’. With a never-ending list of forex trading companies that claim to be the best in the industry, this step can turn into an extremely difficult task, but it is crucial and you need to pick wisely. Keep in mind that knowledge is power! The more you read about how forex trading works, about the trading instruments, platforms, products – the more your success rate increases. Try to understand what you need, what type of trader you are and then search for brokers that offer exactly what you want. During your research process you can visit reviews websites written by experts, like dailyinvestnews.com, which can give you trustworthy information about all types of forex brokerage companies and can save you a lot of time.

What a good online forex broker should offer

There is no universal recipe for what it takes to be a good forex broker, but there are certainly some ground rules which can be taken into consideration. First of all, they need to be regulated by one or more regulatory bodies, because this means your capital is safe. There are so many ads that pop out of nowhere, so many forex brokers that look professional but there is more than the eye meets. You can make a wrong choice, pick a fraudulent company and lose all of your funds without even getting the chance to trade. Make sure you check all of their policies, terms, conditions and legal documentation before going any further.

The next rule is related to everything the broker offers, which should feel like it’s tailored exactly to your needs. For example, the trading platform is your portal to the markets, therefore, you need to make sure it is easy to use; it has all the instruments you need and that trades can be entered and exited with ease.

Check if the broker offers multiple account types, with reasonable minimum deposit demands, good leverage, margin and spreads. For example, RCPro.com is a professional online forex broker which offers a variety of account types for both beginners and experienced traders. Apart from the platform and account types, see if the list of products is what you want and if the customer support service is at your disposal at any time. The market never sleeps and a good broker should offer assistance whenever you need it, may it be via telephone or e-mail.

We mentioned above that in the forex world knowledge is power and we weren’t bluffing. A good forex broker will always try to provide educational materials to its traders regarding the grounds of trading, strategies and all kinds of materials that can improve and shape trading skills. Equally important are the global events which can have a huge impact on your trades. It’s essential to choose a forex broker who provides an Economic Calendar updated on a daily basis, and maybe an additional news blog or news alert option.

Conclusion

To sum up, everything comes down to one thing: choosing the right forex broker. Once you find it and leave all worries of losing your money to a scam, the broker will make all the efforts to provide everything it takes for you to succeed and you will focus solely on achieving your goals. It seems like a lot of work and a major headache, doesn’t it? But believe us, it’s absolutely worth it!

Unique Ways That You Can Invest in Cryptocurrency

Photo by 401k 2012, CC BY SA 2.0

Cryptocurrency investment is by no means guaranteed, but there are now more ways than ever that you can aim to grow your funds.

This is not investment advice, nor should it be treated as such. The information here is for education only. Seek the advice of a professional, do research and only ever invest what you can afford to lose.

Cryptocurrency has taken the world by storm before slipping to a low that has put many would-be investors off doling out money into the pot. Nobody can be sure how the value of Bitcoin and other cryptocurrencies will change over time, nor can anyone be sure the extent to which it will become a valid currency and payment method. Meanwhile, retailers are now accepting cryptocurrency, and more technology and ideas are coming along that could bring a second wave. Indeed, adoption is a critical factor.

Traditional Crypto Investment

The basic ways to invest in cryptocurrency include buying and holding coins in the hope that they will gain value in the long term (known in the community by the exhausted term holding). In this case, you put money in and see what happens, choosing the coins and tokens that you believe offer a value or use.

People also day trade. It’s similar to day trading stocks and shares, apart from the investor will rely on the fluctuations of the value of Bitcoin and other coins to grind out a profit. The general strategy here is to buy on a low and sell on a high. However, this can be risky and time-consuming, and there are big players in the market who are more likely to come out on top.

Unique Cryptocurrency Opportunities

As well as holding coins or day trading on fluctuations, there are diverse ways that you can invest in cryptocurrency or use cryptocurrency as a way of potentially making more money.

  • CoinPoker – The online poker boom that happened in the 2000s made a lot of decent players rich. This method combines cryptocurrency investment with skillful poker playing. CoinPoker is a blockchain-based cryptocurrency poker site. You use a token called CHPs to enter the tournaments, so your first task is to get a hold of CHPs, either by buying them or winning them in freeroll tournaments. Then you can use your CHPs to win more CHPs off players. The token can then either be held for value, used to play more or traded.
  • KuCoin Shares – The cryptocurrency exchange KuCoin has a token that pays out a share of the site’s transactions to holders. It blurs the line between a decentralized currency (the initial aim of Bitcoin) and shares. KuCoin pays out 50 percent of their transaction fees to token holders based on the amount that you hold, though this rather generous percentage is set to go down in the future.
  • Cent – You can think of Cent as the Quora of the cryptocurrency world. It’s a massive forum where people ask questions, but the difference is that with Cent, you get paid in Ethereum for answering them. Simple questions have small rewards, but more multifaceted issues will pay out much more. It’s not quite an investment, but if you know your stuff, it’s an excellent way to earn from your crypto knowledge.
  • Neo and Gas – Some coins offer a kind of proof of stake reward system in which the holder gets paid a specific number of tokens at regular intervals. NEO is a well-established coin that pays out the GAS token when held in the correct wallet. The more NEO you hold, the more GAS you earn, and both have a value that fluctuates with the market.

Gridcoin – Gridcoin is a system that allows you to donate your computing power for the purpose of solving BOINC (Berkeley Open Infrastructure for Network Computing) problems and conduct scientific research into areas as vast as space, disease and coding. All you need to get started is a computer or laptop, and you can earn 10-20 cents a day in Gridcoin.