Top Financial Mistakes Made by College Students

By katie George

1. Blowing your school loan money

Instead of using your financial aid for books, tuition, room & board, many students will choose to finance their extravagant lifestyle of partying, clothes, gadgets, and eating out. These school loans you've worked so hard to get should be paying for your education, not you social use the money wisely. You'll be paying them off for many years to come.

2. Credit Card Debt

Even responsible adults can rack up some hefty credit card debt, but students, who have no viable income besides their school loan money, and what cash mom & dad give them, have no business getting multiple credit cards. This is a recipe for credit disaster, because now students will not only have their school loans to repay when they graduate, but large credit card balances. Nellie May, the largest student loan maker, says that most graduate students have an average of $5800 in credit card debt.

3. Not Paying Your Bills on Time

Racking up huge credit debt and not paying your bills on time is a good way to ensure that you can't purchase a car, rent an apartment or even get a cell phone after you graduate. Keep the credit cards to a minimum, and pay your bills on time to keep your good credit rating. You'll thank yourself in a few years.

4. Bad Budgeting

Being a college student generally means living on a fixed income. Weather it be your financial aid money or money from a part-time job, or even money from Mom & Dad, the cash is usually limited and setting up a budget is important. A monthly budget doesn't mean you can't do the things you want to do, but simply a plan so you know the "must-pays" actually get paid. Figure out exactly what bills and expenses you have every month and plan for those first. Any money after that you can budget for social / recreational items like CD's and kegs.

5. Going to a College that's too Pricey

Instead of going to your local community college for your pre-req classes and spending $25 a unit, many students feel they have to go to the 4 year university straight out of high school. Many end up returning home and going to a C.C. anyway, but attending a local school first is a good way to save money, and get those required classes out of the way cheap. After you've completed these courses, transfer to a 4 year school to complete your undergraduate degree. This will save thousands upon thousands of dollars that you would have racked up on student loans, and been paying off well into your 30's.

So many of the bad financial decisions students make is a result of poor financial education. Students haven't been taught by their parents or high school teachers the importance of maintaining a good credit score, paying bills on time, and budgeting income. Wise spending during the college years will ensure that the money you make after graduating will be spent on things you want, not credit card payments, collection companies and school loans. - 18193

About The Different Types Of Business Loans

By Mary Bush

When planning on a business, an aspiring entrepreneur has a number of financing options. What are these start-up financing programs and which one is the most suitable for you? To help you answer these questions, let's discuss each business financing methods one at a time.

Business Loans offered by the SBA.

The US Small Business Administration is a government agency that is especially created to provide assistance, counsel and protection to small businesses and enterprises. The SBA does not directly provide long-term funding or loans but it works alongside government-accredited lenders and financial institutions to help business owners.

Nevertheless, SBA loans are only offered to business owners who have been turned down by commercial lenders or conventional loans. Therefore a business owner must first try to apply a business loan from a bank or a private lender. If your application has not been approved, that's the time you can seek help from the SBA.

Conventional Business Loans Available

Working Capital Loans. Working Capital Loans can be obtained by growing businesses who have already established itself in the market and needs additional funding for its expansion. This type of loan can be secured or unsecured. If you're required to submit the properties, assets, or inventory of your business as a guarantee for the loan, then that is a secured working capital loan.

On the other hand, an unsecured working capital loan is given without the need for security or collateral. Nevertheless, the business must have an excellent credit score in order to be approved for this loan. Also, because the borrower poses more risk to the lender, unsecured loans come with higher interest rates than secured loans.

Accounts Receivable Factoring. This type of business financing involves the selling of a company's invoices or receivables to a lender. The amount of funding that will be provided depends on the age of the accounts receivables. Of course, lenders would be more willing to give a larger fund for a recent invoice than that of an older one. Most lenders would turn down an invoice that is older than 90 days.

Merchant Account Cash Advance. This type of business funding is available only for businesses who accept online payments, particularly Visa- and MasterCard- payments. In exchange for the purchase of your future credit card receipts, you can receive a cash advance to be deposited in your business checking account.

Equipment Financing. This type of loan is suitable for new businesses that need to purchase equipment or machinery for its business operations. Through equipment financing, a business can buy the equipment it needs using the equipment itself as collateral for the loan. Equipment Leasing. Instead of purchasing brand new equipment or machinery, a new business can choose to lease equipment instead. The equipment leased is paid in installments depending on the payment terms offered by the lender. With equipment leasing, a business has the option to either return the equipment or own the equipment when the lease term ends. - 18193

Opportunity For Beginning New In Life

By katie George

It is not surprising that more and more people are making payment faults as they continue to spend beyond their earnings. As a result, they find that a new loan is becoming harder to avail and eventually it may lead to financial mess as well. However, bad credit loans can fund their variety of needs, as these are especial loans for those people who have multiple problems like late payments, arrears, defaults or CCJs mentioned against their names.

However, these loans come in the borrowers' hands only when they are able to win the lenders' confidence. To do this, the borrowers should take an assuring loan repayment plan with income and your monthly saving capacity included in it. Since, you carry high risks, the loan amount, interest rate and terms-conditions are set accordingly.

Once you have proved your repayment ability, you can choose to take bad credit loans in secured or unsecured options. Your home or any valued property serves the purpose of collateral in taking out the secured loan. You can borrow up to 75000 at lower interest rate. It is convenient loan to repay with duration of 5 to 25 years.

The unsecured loan for the blemished history people is free of risk for them as none of their property is at stake as collateral. However, the borrowed amount ranges up to 25000 only, depending on your personal circumstances. The interest rate will go higher. Its repayment duration ranges up to 15 years.

Take out your credit report and check it for any misrepresentation of the payments you made in the past. Correct the errors before applying for these loans. Know your FICO score as well.

Compare as many offers you see on internet. You will find that some of the bad credit loans offers are cheaper in terms of interest rate and additional fees. Ensure to repay the loan installments regularly for making timely improvements in your rating. - 18193