Chess Tournament – Tromso Sjakklubb http://tromsosjakklubb.com/ Mon, 16 Aug 2021 12:07:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://tromsosjakklubb.com/wp-content/uploads/2021/08/icon-16.png Chess Tournament – Tromso Sjakklubb http://tromsosjakklubb.com/ 32 32 Prosper Review 2021 • Benzinga http://tromsosjakklubb.com/prosper-review-2021-benzinga/ Mon, 16 Aug 2021 11:53:24 +0000 http://tromsosjakklubb.com/?p=131 Prosper is undoubtedly a great platform that provides borrowers with various loan types and amounts, while minimal credit history is required and no minimum income set. However, the main downside to investors is that most loans on the platform aren’t collateralized and if a loan goes into default, Prosper charges collection fees upward of 40%. […]]]>


Prosper is undoubtedly a great platform that provides borrowers with various loan types and amounts, while minimal credit history is required and no minimum income set. However, the main downside to investors is that most loans on the platform aren’t collateralized and if a loan goes into default, Prosper charges collection fees upward of 40%.

Debt Consolidation: The debt consolidation loan helps borrowers combine and pay off credit card balances with 1 loan.

Home Equity Line of Credit: A “HELOC” is a loan whereby the lender agrees to lend money, with the collateral being the borrower’s equity in their house. 

Home Improvement Loans: Borrowers can also use Prosper for home improvement loans. For example, a loan might go to purchase new furniture, upgrade doors and windows or hire a contractor.

Auto & Vehicle Loans: As well as new cars, Prosper can offer loans for older vehicles. It also provides the option of refinancing an existing auto loan.

Small Business Loans: Prosper offers loans listed as small business loans, but they are personal loans based on your individual credit score. 

Baby and Adoption Loans: The company allows you to apply for unsecured loans for baby expenses up to $40,000, meaning you don’t need to be a homeowner. 

Other Personal Loan Types: You can also use your personal loan for healthcare costs, engagement ring financing and special occasions while also providing green and military loans.

Best Alternative to Prosper

For investors looking for options to invest in loans with a low minimum investment, our top pick is definitely Groundfloor. The platform allows you to invest in loans backed by real estate with a minimum investment of only $10. Most loans on the platform have a return of 6% to 12% and there are no fees to the investor.

get started

securely through Groundfloor’s
website

Best For

non-accredited investors

1 Minute Review

Groundfloor is open to non-accredited investors and private individuals looking for active real estate alternative investment. Groundfloor has great volume with more than 10 investments. 

Individuals with small portfolios will also like the low $10 minimum and 0 investor fees. However, most of the loans are given to house flippers, and there is a risk of borrowers defaulting on their loans. 

Best For

  • Non-accredited investors: It is a good option for non-accredited investors who want to invest in an individual capacity.
  • Private investors with small portfolios: Groundfloor charges a relatively small premium of $10, which private investors with small portfolios find attractive.
  • Active-investors: Groundfloor is also ideal for investors who want to actively maintain and control their real estate portfolio.
Pros

  • Charges the lowest minimums in the industry
  • 0 investor fees
  • Open to non-accredited investors
Cons

  • Offers no bankruptcy protection
  • High rate of an uncured default
  • Many loans are for judicial-only states

Investing in Personal or Business Loans

Investors can build a portfolio on Prosper by investing in loans. Each loan is assigned a rating from AA to HR. 

AA loans are considered lower risk, lower reward loans, while on the other end of the spectrum, an HR rating means the loan is regarded as a higher risk, higher reward. Each rating also has an estimated average annual loss rate, which you can see below. 

Comparison of loss rates on Prosper marketplace

Source: Prosper.com

The minimum amount needed to begin investing on Prosper is $25. Average historical returns on Prosper are 5.5%.

Should you need to get in touch with Prosper, you can contact them in several ways, such as by email (support@prosper.com), phone or sending a letter to the address provided. It posts a specific email address provided to report security issues (security@prosper.com). 

Although 1 of the downsides to Prosper’s customer service offerings is that it does not provide a live chat function, all in all, its customer service is positive, with everything dealt with in a professional and friendly manner. 

The rates you pay as a borrower will, of course, vary depending on your credit history, the amount you wish to borrow and the term length you choose (3 or 5 years). Prosper charges no prepayment penalties, meaning you can pay off the loans as quickly as you are able to.

The payment process is very straightforward, with various options to choose from. For example, you can set up AutoPay, a service that automatically schedules and deducts the monthly payments from your bank account. Additionally, you can pay online, via telephone, personal check, money order or cashier’s check.

As mentioned previously, Prosper charges fees for failed payments ($15) and late payments. Late fees are 5% of the payment amount or $15, whichever is greater. 

As an investor, you pay an annual loan servicing fee set at 1% per year for each payment received from borrowers towards each note you hold. 

Collection agency fees are paid if a loan is 1 day past due and Prosper has to begin collection through one of its 3rd-party collection partners. The cost can reach up to 40% of all recovered amounts and is paid by investors and taken from the amount recovered.

Overall, despite the ease of payment, Prosper’s fees mean it doesn’t receive a high mark here.

Prosper’s app is free to download and available on iOS and Android. It has a neat, clean layout and is very straightforward. The style is similar to the website. 

The app shows 3 tabs at the bottom of the screen to navigate through the options you need. However, these options change depending on whether you are an investor or borrower. 

As far as apps go, Prosper’s is designed with the customer in mind as it is effortless to use. 

Prosper allows you to invest in loans or take out a loan, but you cannot do them simultaneously. 

The sign-up form and application process as a borrower are extremely simple and, if all goes smoothly, you could receive the funds by the next day. However, Prosper may contact you for extra information in some cases, which may take a few additional days to complete. 

The investment process is also easy. Once signed up, you can search through loans based on their rating and decide whether to invest in them. 

Another benefit of the platform is the company’s user-friendly app that allows you to manage your investments and track your performance if you are an investor. In addition, a borrower can look at their credit score and view their account balance. 

Prosper users can apply for a wide range of loan amounts ranging from $2,000 to $40,000. This feature allows borrowers to access cash for various expenses such as debt consolidation, home improvements and healthcare costs. 

Overall, Prosper facilitates personal loans easier than a bank would. 

The website and app are easy to use and made without unnecessary clutter. Furthermore, the information on both the site and app is upfront, so you don’t need to scour the web for unanswered questions. 

The quick turnaround from the user’s initial application to receiving the money (if accepted) is another plus, potentially receiving the funds the next day. The precheck also makes it easier for the user when applying. 

Prosper Marketplace vs. Competitors

Compared to its competitors, Prosper’s ease of use and the navigable site certainly stands out with all the information you need is easy to find. The app is almost better than the website in that respect. 

As an investor, the advantage of using Prosper is the low minimum investment amount, which is amongst the lowest compared to its competitors. However, you can find better returns through other alternative investment platforms that have a low minimum investment, such as Groundfloor.

In addition, as a borrower, when it comes to loan amounts, the company offers more options than most, ranging from $2,000 to $40,000. 

get started

securely through Groundfloor’s
website

Best For

non-accredited investors

1 Minute Review

Groundfloor is open to non-accredited investors and private individuals looking for active real estate alternative investment. Groundfloor has great volume with more than 10 investments. 

Individuals with small portfolios will also like the low $10 minimum and 0 investor fees. However, most of the loans are given to house flippers, and there is a risk of borrowers defaulting on their loans. 

Best For

  • Non-accredited investors: It is a good option for non-accredited investors who want to invest in an individual capacity.
  • Private investors with small portfolios: Groundfloor charges a relatively small premium of $10, which private investors with small portfolios find attractive.
  • Active-investors: Groundfloor is also ideal for investors who want to actively maintain and control their real estate portfolio.
Pros

  • Charges the lowest minimums in the industry
  • 0 investor fees
  • Open to non-accredited investors
Cons

  • Offers no bankruptcy protection
  • High rate of an uncured default
  • Many loans are for judicial-only states

Get started

securely through Diversyfund’s
website

Best For

Low Cost Real Estate Investing

1 Minute Review

DiversyFund isn’t your average crowdfunding platform. You’ll find that the company puts a twist on the traditional everyday crowdfunding platform, beyond anything you can find online with a simple Google search. You only have to look under DiversyFund’s skin one layer to surmise that DiversyFund is a conscientious developer and sponsor and helps hedge risk through improved vetting.

DiversyFund offers a multifamily real estate investment trust, the DiversyFund Growth REIT, and its main goals are to increase cash flow and resale value. It’ll automatically give you access to multi-million dollar real estate assets.

Best For

  • Those looking for an alternative investment beyond stocks and bonds
  • Individuals who aren’t sure they want to be landlords in the traditional sense
  • Investors who aren’t accredited
Pros

  • Only need to pony up $500 to get started
  • Open to investors all over the world
  • No expensive broker fees
Cons

  • You’ll only be able to access “blind pool” investments, which means that you can’t opt out of specific properties
  • There’s only one real investment option, the DiversyFund Growth REIT

Get Started

securely through Arrived Homes’s
website

Fees

1% asset management fee

1 Minute Review

Arrived Homes is the latest player in the real estate investment industry. Differing from many of their counterparts, Arrived provides investment opportunities in the single-family homes, with a minimum investment of just $100.

1 Minute Review

Yieldstreet is an alternative investment platform that allows you to access unique, diversified and expert-reviewed investments. From real estate offerings to works of art, Yieldstreet offers investments that have low correlations with the general markets, meaning they can act as a new source of portfolio diversity.

Yieldstreet’s platform is easy to initiate and use — open an account in just a few minutes and begin browsing available investments before your account is fully verified. Due diligence information is easy to find and clearly laid out, and most investments include additional resources to learn more about the investment’s industry or category. Although the majority of investments are only open to accredited investors, anyone can invest in Yieldstreet’s Prism Fund.

Best For

  • Passive income generation
  • Accredited investors
  • New investors looking for an intuitive platform
Pros

  • Wide range of expert-reviewed alternative investments
  • Investments that are pre-funded by Yieldstreet
  • Prism Fund open to non-accredited investors
Cons

  • Majority of investments only open to accredited investors

Prosper gets a 3.5 rating due to several reasons. Firstly, applying for a loan through Prosper is straightforward. You have a broad range of loan amounts available that can be used for a wide variety of reasons and due to the well-designed site and app, all the information you need is easily accessible without much clicking around. 

As an investor, you can easily view the potential loans and their ratings while having the ability to track your account and funds via the website or app. However, the overall returns are low compared to other investment options and the fees get quite high if a loan goes into default.

The only downside to borrowing from Prosper are the loan term options and the origination and late fees. 

Prosper Marketplace Tutorial

Frequently Asked Questions

Is Prosper Marketplace legit?

Prosper is legit and provides easy access to loans by matching investors with borrowers via its platform. The company currently has an A+ rating from the Better Business Bureau, scoring over 97 out of 100 points. 

What is the minimum to invest in Prosper?

The minimum investment amount with Prosper is $25.

0 Commissions and no deposit minimums. Everyone gets smart tools for smart investing. Webull supports full extended hours trading, which includes full pre-market (4:00 AM – 9:30 AM ET) and after hours (4:00 PM – 8:00 PM ET) sessions. Webull Financial LLC is registered with and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is also a member of the SIPC, which protects (up to $500,000, which includes a $250,000 limit for cash) against the loss of cash and securities held by a customer at a financially-troubled SIPC-member brokerage firm.



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Choosing Income-Driven Repayment vs. Refinancing Student Loans http://tromsosjakklubb.com/choosing-income-driven-repayment-vs-refinancing-student-loans/ Mon, 16 Aug 2021 11:51:05 +0000 http://tromsosjakklubb.com/?p=127 Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.” If you’re struggling to manage your student loans, signing […]]]>


Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

If you’re struggling to manage your student loans, signing up for an income-driven repayment plan or refinancing your loans might be a good idea. Before you choose one option over the other, it’s important to understand how they work along with their pros and cons.

Here’s what you should know about income-driven repayment vs. refinancing student loans:

Income-driven repayment: What it is and how it can help

Income-driven repayment (IDR) plans are an option for federal student loan borrowers. Under an IDR plan, your payments are based on your income — usually capped at 10% to 20% of your discretionary income.

Additionally, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan. Keep in mind that you could owe federal income tax on any amount forgiven under an IDR plan.

There are four main IDR plans available:

  • Income-Based Repayment (IBR): To qualify for IBR, you must have demonstrable financial need. Under this plan, your payments are capped at 10% or 15% of your discretionary income and will never be higher than what you’d pay on the 10-year standard repayment plan. Any remaining balance could be forgiven after 20 or 25 years, depending on when you took your federal loans out.
  • Pay As You Earn (PAYE): Like with IBR, you must have financial need to be eligible for the PAYE plan. On this plan, your payments are capped at 10% of your discretionary income and will never be higher than what you’d pay on the 10-year standard repayment plan. Additionally, you could have any remaining balance forgiven after 20 years.
  • Revised Pay As You Earn (REPAYE): Unlike IBR and REPAYE, REPAYE doesn’t require you to have financial need to sign up. If you sign up for REPAYE, your payments will be 10% of your discretionary income — though keep in mind that there’s no cap on your payments. Additionally, any remaining balance could be forgiven after 20 to 25 years, depending on whether you used your loans to pay for undergraduate or graduate studies.
  • Income-Contingent Repayment (ICR): On the ICR plan, your payments will be 20% of your discretionary income (or what you’d pay on a 12-year income-adjusted plan), and you could have your remaining balance forgiven after 25 years. ICR is also the only income-driven plan available to Parent PLUS Loan borrowers so long as they’ve consolidated their PLUS Loan into a Direct Consolidation Loan.

Because IDR plans extend your repayment term, you’ll likely be able to lower your monthly payment — though you’ll also pay more in interest over time. But keep in mind that at the end of your repayment term, you could have any remaining balance forgiven.

You can visit StudentAid.gov to estimate what your payment might be under each plan, given your income, household size, and federal student loan balance.

For example: Say you’re single and living in the U.S., and you earn $30,000 per year with a projected annual increase of 5%. Additionally, you have a federal student loan balance of $70,000 with an average weighted interest rate of 6%.

If your loans were taken out after July 2014 and you sign up for IBR, you would make monthly payments ranging from $99 to $398 and would end up paying a total of $53,725 over 20 years — nearly $40,000 less than the $93,257 that you’d pay on a standard 10-year plan. Following this, you’d be eligible for $100,574 of loan forgiveness.

Learn More: PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

How to apply for income-driven repayment

If you’d like to sign up for an income-driven repayment plan, follow these three steps:

  1. Fill out an Income-Driven Repayment Plan Request. To do this, you can either visit StudentAid.gov or request an application through your loan servicer. Be prepared to provide information regarding your job, family size, and marital status.
  2. Provide proof of income. You can add your income digitally to the application by using the IRS data retrieval tool. If your income has changed or you haven’t filed taxes in the last several years, you might be able to provide a pay stub instead. You can also certify that you don’t have an income if you’re not currently working.
  3. Wait for your request to be processed. It could take several days to several weeks for your IDR application to be processed. In the meantime, be sure to continue making your student loan payments to avoid delinquencies.

Check Out: Federal Student Loans and COVID-19: What You Need to Know

Student loan refinancing: What it is and how it can help

Student loan refinancing is the process of taking out a new private loan to pay off your old loans, leaving you with just one loan and payment to manage.

Note that this is different from federal student loan consolidation, which lets you combine multiple federal student loans while extending your repayment term up to 30 years.

Keep in mind: While you can refinance both federal and private loans, refinancing federal student loans will cost you federal protections, including access to IDR plans and student loan forgiveness programs.

There are several potential benefits offered by refinancing, including:

  • Lower your interest rate: Depending on your credit, you might qualify for a lower student loan interest rate if you refinance. This could save you money on interest as well as possibly help you pay off your loans faster.
  • Reduce your monthly payment: If you opt to extend your repayment term through refinancing, you could lower your monthly student loan payment and lessen the strain on your budget. Just remember that choosing a longer term means you’ll pay more in interest over the life of your loan.
  • Combine multiple student loans: It can be difficult to keep track of multiple loans with different interest rates and repayment terms. Refinancing lets you combine your student loans so you only have one loan and payment to worry about.

How much you could save through refinancing depends on several factors, including your credit. In general, the better your credit, the lower your interest rate will be — and the more you’ll likely save over the life of your loan.

For example: Say you have $50,000 in student loans with an interest rate of 6% and a 10-year repayment term. With this rate and term, you’d end up paying $555 monthly with a total repayment cost of $66,612.

But if you refinanced your loans to a 5% interest while keeping the 10-year repayment term, your payments would go down to $530 per month, and you’d pay $63,639 in total — almost $3,000 less than what you’d owe if you didn’t refinance.

Learn More: Private Student Loan Consolidation

How to apply for student loan refinancing

If you’ve decided to refinance your student loans, follow these four steps:

  • Compare lenders. Be sure to compare as many lenders as possible to find the right loan for you. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements.
  • Pick a loan option. After you’ve done your research, choose the loan option that works best for you.
  • Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
  • Manage your payments. If you’re approved, continue making payments on your old loans while the refinance is processed. Afterward, you’ll begin making payments on the new loan. You could also consider signing up for autopay so you won’t miss any payments in the future — many lenders offer a rate discount to borrowers who opt for automatic payments.
Tip: You’ll typically need good to excellent credit to qualify for refinancing. A good credit score is usually considered to be 700 or higher. There are also several lenders that offer student loan refinancing for bad credit — however, these loans usually come with higher interest rates compared to good credit loans.

If you’re struggling to get approved, consider applying with a creditworthy cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

If you’re ready to refinance your student loans, remember to consider as many lenders as you can to find a loan that suits your needs. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

Lender Fixed rates from (APR) Variable rates from (APR) Loan amounts Repayment terms (years) Cosigners allowed


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

4.54%+ N/A $7,500 up to up to $200,000
(larger balances require special approval)
10, 15, 20 Yes
  • Fixed APR:
    4.54%+
  • Variable APR:
    N/A
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $7,500 up to $500,000
  • Loan terms (years):
    10, 15, 20
  • Max. undergraduate loan balance:
    $250,000 – $500,000
  • Time to fund:
    4 months
  • Repayment options:
    Immediate repayment, forbearance, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Must be a resident of Kentucky
  • Customer service:
    Phone
  • Soft credit check:
    No
  • Cosigner release:
    After 36 months
  • Loan servicer:
    Kentucky Higher Education Student Loan Corporation
  • Max. graduate loan balance:
    $250,000 – $500,000
  • Credible Review:
    Advantage Education Loan review
  • Offers Parent PLUS Refinancing :
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.15%+ 1.87%+ $10,000 up to $250,000
(depending on degree)
5, 7, 10, 15, 20 Yes
  • Fixed APR:
    2.15%+
  • Variable APR:
    N/A
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $10,000 to $400,000
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Military deferment, forbearance
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas
  • Customer service:
    Email, phone
  • Soft credit check:
    Does not disclose
  • Cosigner release:
    No
  • Loan servicer:
    Firstmark Services
  • Max. Undergraduate Loan Balance:
    $100,000 – $149,000
  • Max. Graduate Loan Balance:
    $200,000 – $400,000
  • Offers Parent PLUS Refinancing:
    Does not disclose


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.39%+<sup1 1.87%+1 $10,000 to $500,000
(depending on degree and loan type)
5, 7, 10, 15, 20 Yes
  • Fixed APR:
    2.39%+<sup1
  • Variable APR:
    1.87%+1
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $10,000 to $750,000
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees:
    Late fee
  • Discounts:
    Autopay, loyalty
  • Eligibility:
    Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    After 24 to 36 months
  • Loan servicer:
    Firstmark Services
  • Max. Undergraduate Loan Balance:
    $100,000 to $149,000
  • Max. Graduate Loan Balance:
    Less than $150,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.99%+2 2.94%+2 $5,000 to $300,000
(depending on degree type)
5, 7, 10, 12, 15, 20 Yes
  • Fixed APR:
    2.99%+2
  • Variable APR:
    2.94%+2
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $5,000 to $300,000
  • Loan terms (years):
    5, 7, 10, 12, 15, 20
  • Repayment options:
    Military deferment, forbearance, loans discharged upon death or disability
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    All states except for ME
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    After 24 to 36 months
  • Loan servicer:
    College Ave Servicing LLC
  • Max. Undergraduate Loan Balance:
    $100,000 to $149,000
  • Max. Graduate Loan Balance:
    Less than $300,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.16%+ 2.11%+ $5,000 to $500,000 5, 7, 10, 15, 20 Yes
  • Fixed rate:
    2.39%+<sup1
  • Variable rate:
    1.87%+1
  • Min. credit score:
    680
  • Loan amount:
    $5,000 to $500,000
  • Cosigner release:
    Yes
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Academic deferment, forbearance, loans discharged upon death or disability
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states, except MS and NV
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Loan servicer:
    FirstMark
  • Max. undergraduate loan balance:
    $500,000
  • Max. graduate loan balance:
    $500,000
  • Offers Parent PLUS refinancing:
    Yes
  • Min. income:
    $65,000 (for 15- and 20-year products)


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

3.91%+5 1.81%+5 $7,500 to $200,000 5, 10, 15, 20 Yes
  • Fixed APR:
    3.91%+5
  • Variable APR:
    1.81%+5
  • Min. credit score:
    700
  • Loan amount:
    $7,500 to $200,000
  • Loan terms (years):
    5, 10, 15, 20
  • Repayment options:
    Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Must be a U.S. citizen or permanent resident and submit two personal references
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    After 36 months
  • Loan servicer:
    Granite State Management & Resources (GSM&R)
  • Max. Undergraduate Loan Balance:
    $150,000 to $249,000
  • Max. Graduate Loan Balance:
    $150,000 to $199,000
  • Offers Parent PLUS Refinancing :
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.58%+3 2.39%+ Minimum of $15,000 5, 7, 10, 12, 15, 20 Yes
  • Fixed APR:
    2.58%+3
  • Variable APR:
    2.39%+
  • Min. credit score:
    680
  • Loan amount:
    No maximum
  • Loan terms (years):
    5, 7, 10, 12, 15, 20
  • Repayment options:
    Forbearance
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved school
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    No
  • Loan servicer:
    Mohela
  • Max. Undergraduate Loan Balance:
    No maximum
  • Max. Graduate Loan Balance:
    No maximum
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

3.47%+4 2.42%+ $5,000 – $250,000 5, 10, 15, 20 Yes
  • Fixed APR:
    3.47%+4
  • Variable APR:
    2.42%+
  • Min. credit score:
    670
  • Loan amount:
    $5,000 to $250,000
  • Loan terms (years):
    5, 10, 15, 20
  • Repayment options:
    Academic deferment, military deferment, forbearance
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Must be U.S. citizen or permanent resident
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    Yes
  • Max undergraduate loan balance:
    $250,000
  • Max graduate loan balance:
    $250,000
  • Offers Parent PLUS refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.74%+7 N/A Up to $300,000 5, 7, 10, 15, 20 Yes
  • Fixed APR:
    2.80%+
  • Variable APR:
    N/A
  • Min. credit score:
    670
  • Loan amount:
    Up to $300,000
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Time to fund:
    Usually one business day
  • Repayment options:
    Academic deferral, military deferral, forbearance, death/disability discharge
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    After 24 months
  • Max. undergraduate loan balance:
    $300,000
  • Max. graduate balance:
    $300,000
  • Offers Parent PLUS loans:
    Yes
  • Min. income:
    None


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

3.05%+ 3.05%+ $10,000 up to the total amount of qualified education debt 7, 10, 15 Yes
  • Fixed APR:
    3.05%+
  • Variable APR:
    3.05%+
  • Min. credit score:
    670
  • Loan amount:
    $10,000 up to the total amount
  • Loan terms (years):
    7, 10, 15
  • Repayment options:
    Military deferment, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    No
  • Loan servicer:
    AES
  • Max. Undergraduate Loan Balance:
    No maximum
  • Max. Gradaute Loan Balance:
    No maximum
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.89%+ N/A $7,500 to $300,000 5, 8, 12, 15 Yes
  • Fixed APR:
    2.89%+
  • Variable APR:
    N/A
  • Min. credit score:
    670
  • Loan amount:
    $7,500 to $300,000
  • Loan terms (years):
    5, 8, 12, 15
  • Repayment options:
    Does not disclose
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Must be a U.S. citizen and have and at least $7,500 in student loans
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    After 12 months
  • Loan servicer:
    PenFed
  • Max. Undergraduate Loan Balance:
    $300,000
  • Max. Graduate Loan Balance:
    $300,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

3.29%+ N/A $7,500 up to $250,000
(depending on highest degree earned)
5, 10, 15 Yes
  • Fixed APR:
    3.29%+
  • Variable APR:
    N/A
  • Min. credit score:
    680
  • Loan amount:
    $7,500 to $250,000
  • Loan terms (years):
    5, 10, 15
  • Repayment options:
    Academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000
  • Customer service:
    Email, phone
  • Soft credit check:
    Does not disclose
  • Cosigner release:
    No
  • Loan servicer:
    Rhode Island Student Loan Authority
  • Max. Undergraduate Loan Balance:
    $150,000 – $249,000
  • Max. Graduate Loan Balance:
    $200,000 – $249,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.74%+6 2.25%6 $5,000 up to the full balance of your qualified education loans 5, 7, 10, 15, 20 Yes
  • Fixed APR:
    2.74%+6
  • Variable APR:
    2.25%6
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $5,000 up to the full balance
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Academic deferment, military deferment
  • Fees:
    None
  • Discounts:
    Autopay, loyalty
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    No
  • Max undergraduate loan balance:
    No maximum
  • Max graduate loan balance:
    No maximum
  • Offers Parent PLUS refinancing:
    Yes
Compare personalized rates from multiple lenders without affecting your credit score. 100% free!
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All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 6SoFi Disclosures

Income-driven repayment vs. refinancing

If you’re considering income-driven repayment vs. refinancing, here are some key points to keep in mind:

Income-driven repayment

  • Lower payments: With an IDR plan, your payments are based on your income — which means they could be significantly lowered depending on how much you earn. Additionally, your repayment term could be extended up to 20 or 25 years, further reducing your payments.
  • Lower interest rates: Signing up for an IDR plan doesn’t affect your interest rate.
  • Qualifying loans: Almost any federal student loan is eligible for at least one of the four available IDR plans. Some plans — such as IBR and PAYE — require you to have financial need while others don’t.
  • Forgiveness offered: Yes, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan.

Student loan refinancing

  • Lower payments: If you choose to extend your repayment term through refinancing, you could reduce your monthly payments. Just remember that this also means you’ll pay more in interest over time.
  • Lower interest rates: Depending on your credit, you might get a lower interest rate through refinancing. This could save you hundreds or even thousands of dollars on interest over the life of the loan. It might also help you repay your loans ahead of schedule.
  • Qualifying loans: Almost any federal or private student loan is eligible for refinancing — though remember that refinancing federal loans means you’ll lose access to federal benefits and protections.
  • Forgiveness offered: No — unfortunately, private student loan forgiveness doesn’t exist. You’ll be responsible to repay your full student loan balance.

Check Out: How to Find Your Student Loan Balance

When to refinance student loans

While student loan refinancing might be the right move in some cases, it isn’t right for everyone. Here are a few situations when it could be a good idea to refinance:

  • You can get a better interest rate. If you have good credit and can qualify for a lower interest rate, refinancing could be a good way to save money on your student loans.
  • You need a lower monthly payment. If you’re struggling to make your student loan payments, you might be able to reduce them if you refinance and pick a longer repayment term. Just remember that you’ll pay more in interest this way.
  • You have multiple student loans. Refinancing allows you to combine multiple student loans to streamline your repayment.

You can use our calculator below to see how much you could save by refinancing your student loans.

Step 1. Enter your loan balance

Step 2. Enter current loan information

Step 3. Enter your new loan information to start calculating your savings

Lifetime Savings
Increased Lifetime Cost
$

New Monthly Payment
$

Monthly Savings
Increased Monthly Cost
$

If you refinance your student loan at
%
interest rate, you
can save
will pay an additional
$
monthly and pay off your loan by
.
The total cost of the new loan will be
$.


Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won’t affect your credit score.


When you shouldn’t refinance student loans

And here are some scenarios where refinancing might not be the best option:

  • You have federal student loans. If you refinance federal student loans, you’ll lose access to your federal loan benefits. This is especially important to keep in mind if you think you might need access to income-driven repayment options or if you could qualify for loan forgiveness.
  • You have poor credit. You’ll generally need good to excellent credit to qualify for refinancing — as well as to get the best interest rates. While you might still qualify with some lenders that work with borrowers who have bad credit, the loans offered by these lenders tend to come with higher interest rates.
  • Your finances aren’t secure. Lenders want to see that you can afford to repay your refinanced loan, which could be difficult to prove if you have unstable income. Additionally, unlike federal loans, private loans don’t come with built-in protections like deferment and forbearance options, which could leave you in a rough spot if you’re facing financial hardship.
Tip: You don’t have to refinance your full student loan balance. For example, if you have both federal and private student loans, you could choose to refinance only your private loans.

This might help you pay off your private student loans faster while allowing you to maintain the protections of your federal loans.

If you’re wondering how long it’ll take to pay off your student loans, enter your current loan information into the calculator below to find out. Use the slider to see how increasing your payments can change the payoff date.

Enter loan information

Total Payment
$

Total Interest
$

Monthly Payment
$

If you increase your payments by
$
monthly on your
$
loan at
%,
you will pay
$
a month and pay off your loan by
Jan 2021.


Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won’t affect your credit score.


Frequently asked questions

Here are the answers to several commonly asked questions regarding refinancing student loans vs. income-driven repayment:

Can you refinance student loans on income-driven repayment?

Yes, if you have federal student loans on an IDR plan, you can refinance them into a private student loan. Just remember that doing so means you’ll no longer have access to federal benefits and protections — including the ability to sign up for another IDR plan in the future.

Are student loans forgiven after 20 years?

If you sign up for an IDR plan, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan you choose.

There are also several other federal student loan forgiveness programs with their own forgiveness timelines — for example, if you work for an eligible nonprofit or government organization and make qualifying payments for 10 years, you might qualify for Public Service Loan Forgiveness (PSLF).

Unfortunately, private student loans aren’t eligible for any forgiveness programs.

Learn More: How to Spot 6 Student Loan Forgiveness Scam Warning Signs

Which student loans can be forgiven?

Only federal student loans are eligible for student loan forgiveness programs, such as IDR forgiveness or PSLF.

However, there are other options that could help you more easily manage private student loans. For example, if you refinance your private loans, you might get a lower interest rate that could help you pay off your loans faster.

Will income-driven repayment hurt my credit score?

No, signing up for an IDR plan won’t hurt your credit score. In fact, it might actually help your credit score — for example, if you consistently make on-time payments under an IDR plan, you could see an improvement in your score over time.

Do I have to consolidate my student loans for income-driven repayment?

This depends on the type of federal student loans you have. Most federal student loans don’t require consolidation to be eligible for income-driven repayment. However, if you have a Parent PLUS Loan, you’ll need to consolidate it into a Direct Consolidation Loan before you’ll be eligible for the ICR plan.

Check Out: Best Lenders to Refinance Student Loans for Low-Income Earners

What happens if you don’t pay student loans?

Not paying your student loans can massively damage your credit and could come with fees or penalties, depending on the type of student loans you have.

Generally, once you’ve missed a payment, your student loan is considered delinquent. If you continue missing payments for a certain period of time, your loan will enter default — typically 270 days for federal student loans and 120 days for most private student loans. Once this happens, you could face several consequences, such as:

  • Loan acceleration, which makes your entire past-due balance due immediately
  • Loss of hardship benefits, such as deferment or forbearance
  • Wage garnishment or withholding of tax returns, leaving you with less money
  • Lawsuits and collections filed by private student loan lenders in an attempt to collect your past-due balance

Tip: If you think you might miss a student loan payment, reach out to your loan servicer or lender right away. They might have options available to you that can help prevent you from ending up in default.

How can I get the lowest interest rate on my student loan refinance?

There are a few ways to get a good interest rate when you refinance, including:

  • Have good to excellent credit: In general, borrowers with good to excellent credit will qualify for better interest rates compared to borrowers with poor or fair credit. If you want to qualify for better rates, you might consider working to improve your credit before applying. A couple of ways to potentially do this include making on-time payments on all of your bills and paying down credit card balances.
  • Apply with a cosigner: Not only can applying with a creditworthy cosigner make it easier to get approved for refinancing, but it could also get you a better interest rate than you’d get alone.
  • Compare multiple lenders: To find the best interest rates, it’s important to compare your options from as many lenders as possible. This way, you can be sure you’re getting the most favorable rate and terms available to you.

Can you be denied income-driven repayment?

Yes, it’s possible to be denied income-driven repayment in certain circumstances. For example, if you have federal student loans that aren’t Direct Loans or are in default, then you won’t qualify for an IDR plan.

But if you consolidate your loans into a Direct Consolidation Loan or are able to get out of default, you could be eligible in the future.

Can you make too much money for income-based repayment?

No, income-driven repayment is available for most federal student loan borrowers no matter their income. However, keep in mind that you might not be eligible for every IDR plan if you make too much money — IBR and PAYE both require you to have financial need while REPAYE and ICR don’t.

If you decide to refinance your student loans, remember to consider as many lenders as you can to find the right loan for your situation. This is easy with Credible: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.

Find out if refinancing is right for you

  • Compare actual rates, not ballpark estimates – Unlock rates from multiple lenders in about 2 minutes
  • Won’t impact credit score – Checking rates on Credible won’t impact your credit score
  • Data privacy – We don’t sell your information, so you won’t get calls or emails from multiple lenders

See Your Refinancing Options
Credible is 100% free!

About the author

Taylor Medine

Taylor Medine

Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

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Best balance transfer credit cards for August 2021 http://tromsosjakklubb.com/best-balance-transfer-credit-cards-for-august-2021/ Mon, 16 Aug 2021 11:50:03 +0000 http://tromsosjakklubb.com/?p=121 If you’re already grappling with debt, you might be hesitant to apply for yet another credit card, but a balance transfer card is a different animal. When used the right way, a balance transfer credit card can give you a relatively cost-efficient way to reduce credit card debt and catch up on bills.  A balance transfer credit card lets […]]]>


If you’re already grappling with debt, you might be hesitant to apply for yet another credit card, but a balance transfer card is a different animal. When used the right way, a balance transfer credit card can give you a relatively cost-efficient way to reduce credit card debt and catch up on bills. 

A balance transfer credit card lets you transfer debt from an old high-interest card to a new card with a 0% or low annual percentage rate for a specific period of time — usually between 12 and 20 months. This gives you some breathing room to pay off or pay down the transferred balance of existing credit card debt while accruing little or no interest. It will also help you consolidate debt into a single payment, giving you a singular financial goal if you’ve been struggling to keep up with your bills. And as we all know, getting your debt under control is the first step toward achieving financial security.

Here are CNET’s top recommendations for the best balance transfer cards. We update this list periodically.

Best balance transfer credit card overall

US Bank

  • Introductory APR: 20 billing cycles of 0% intro APR for balance transfers and purchases
  • Standard APR: 14.49% to 24.49% variable APR
  • Penalty APR: None
  • Introductory balance transfer fee: N/A
  • Standard balance transfer fee: 3% or $5, whichever is greater
  • How long you have to make transfers: 60 days
  • Credit requirement: 680 to 850
  • Annual fee: $0

The US Bank Visa Platinum offers one of the longest 0% introductory APR periods, at 20 billing cycles, combined with a relatively low 3% fee.

Long balance transfer period

Citi

  • Introductory APR: 18 months of 0% intro APR for balance transfers and purchases. Balance transfers must be completed within 4 months of account opening.
  • Standard APR: 14.74% to 24.74% variable APR
  • Penalty APR: None
  • Introductory balance transfer fee: N/A
  • Standard balance transfer fee: 3% or $5, whichever is greater
  • How long you have to make transfers: 4 months
  • Credit requirement: 670 to 850
  • Annual fee: $0

The Citi Simplicity card is similar to the Citi Diamond Preferred, but the Simplicity has no late fee or penalty APR, while the standard APR for the Diamond Preferred is 1% lower (13.74% to 23.74% variable APR). If there’s any chance that you could miss a payment at some point, the Simplicity could save you up to $40 and the loss of the introductory 0% APR.

The 18-month intro APR period comes with a transfer fee of 3% ($5 minimum), making the Simplicity similar to the US Bank Visa Platinum. The main advantage with the Citi card is the length of time you have to make a credit card balance transfer — 4 months compared to US Bank’s 60 days.

Long balance transfer period

Wells Fargo

  • Introductory APR: 18 months from account opening of 0% APR for qualifying balance transfers and purchases
  • Standard APR: 16.49-24.49% variable APR
  • Penalty APR: None
  • Introductory balance transfer fee: 3% or $5 for first 120 days from account opening
  • Standard balance transfer fee: Up to 5% or $5, whichever is greater
  • How long you have to make transfers: 120 days
  • Credit requirement: 680 to 850
  • Annual fee: $0

The Wells Fargo Platinum offers an introductory 18 months of 0% APR for qualifying balance transfers (16.49-24.49% variable APR thereafter), but with a higher balance transfer fee after the first 120 days of card ownership than the Citi Simplicity. In most circumstances, you’ll transfer a balance at the beginning of the period to qualify for the introductory 0% APR; as such, the higher standard balance transfer fee is less consequential. 

Low interest rate for an extended payoff period

SunTrust

  • Introductory APR: 3.25% for 3 years on balance transfers
  • Standard APR: 11.24-21.24% variable APR
  • Penalty APR: 11.24-21.24% variable APR
  • Introductory balance transfer fee: $0
  • Standard balance transfer fee: 3% or $10, whichever is greater
  • How long you have to make transfers: 60 days
  • Credit requirement: Good to Excellent (680 to 850)
  • Annual fee: $0

The SunTrust Mastercard Prime Rewards credit card is different from the other balance transfer credit cards profiled here. Instead of an introductory 0% APR, SunTrust offers new cardholders three years of a low APR — 3.25%. (The average standard APR for credit cards is usually somewhere between 12 and 25%.)

That 3.25% APR functions similarly to a flat 3.25% transfer fee — you’re just paying it over the course of the year. And it’s worth noting that the effective rate should end up being lower than a flat 3.25% fee, since your balance will decrease as you pay it off, lowering the principal.

If you need more time to pay off your debt, the SunTrust Mastercard Prime Rewards may be your best bet. You can see how it compares to the US Bank Visa Platinum in the chart above. 

Another card worth considering

Discover

  • Introductory APR: 14 months of 0% APR for balance transfers and purchases
  • Standard APR: 11.99% to 22.99%
  • Penalty APR: None
  • Introductory balance transfer fee: 3% for first three months
  • Standard balance transfer fee: 5%
  • How long you have to make balance transfers: No limit
  • Credit requirement: 680 to 850
  • Annual fee: $0

One more card worth considering

HSBC

  • Introductory APR: 18 months of 0% APR for balance transfers and purchases
  • Standard APR: 13.99-23.99% variable APR
  • Penalty APR: None
  • Introductory balance transfer fee: None
  • Standard balance transfer fee: 4% or $10, whichever is greater
  • How long you have to make transfers: 60 days
  • Credit requirement: 680 to 850
  • Annual fee: $0

In the table below, we’ve broken down the key features of each card to help you determine the best balance transfer credit card for your needs.

Best balance transfer credit cards compared

Best card overall for balance transfers Long balance transfer period Long balance transfer period (runner-up) Best card for an extended payoff period Another card worth considering Another card worth considering
US Bank Visa Platinum Citi Simplicity Wells Fargo Platinum SunTrust Mastercard Prime Rewards Discover it Cash Back HSBC Gold Mastercard
Balance transfer annual percentage rate (APR) 0% 0% 0% 3.25% 0% 0%
Intro balance transfer APR period (months) 20 18 18 36 14 18
How long you have to make transfers (months) 2 4 4 2 3 2
Standard APR 14.49% – 24.49% variable 14.74% – 24.74% variable 16.49% – 24.49% variable 12.74% – 22.74% variable 11.99% – 22.99% variable 13.99% – 23.99% variable
Balance transfer fee 3% ($5 minimum) 3% ($5 minimum) 3% for 120 days from account opening, then up to 5% ($5 minimum) 0% 5% 4%
Annual fee $0 $0 $0 $0 $0 $0

Choosing the best balance transfer credit card depends largely on how much you owe and how quickly you can pay it off. With a balance transfer card, the goal should always be to pay off the credit card balance by the end of the introductory APR period, which can have a huge impact on your ability to achieve or maintain a good credit score.

For example, if you have a $6,000 credit card balance on a high rate card and you can afford to pay $309 each month, US Bank Visa Platinum’s 20-month 0% APR period would do the trick. With its 3% transfer fee, you’d end up adding only $180 to your transferred balance — compared to $1,221 with your old card, which is likely bogged down by a standard 22% APR. (See table below.)

Sample balance transfers, compared

US Bank Visa Platinum Citi Simplicity SunTrust Mastercard Prime Rewards
Starting balance $6,000 $6,000 $6,000
Balance transfer APR 0% 0% 3.25%
Monthly payment to pay off balance during low APR period $309 $343 $175
Months 20 18 36
Total fees and interest paid $180 $180 $305
Monthly payment with standard card (22% APR) $361 $394 $229
Total fees and interest paid $1,221 $1,099 $2,249
Amount saved with balance transfer card $1,041 $919 $1,944

If you can only afford to pay $150 each month, however, you’d need a card with a longer low-interest period. The SunTrust Prime Rewards card, for example, offers 36 months at 3.25% APR and no transfer fee. At the end of three years, it would have cost you a total of $372 in interest — far less than a new card that offers 0% to start but then balloons to 20% or higher after 18 or 20 months. (See table below.)

Sample balance transfer, compared (part 2)

US Bank Visa Platinum Citi Simplicity SunTrust Mastercard Prime Rewards
Starting balance $6,000 $6,000 $6,000
Balance transfer APR 0% 0% 3.25%
Monthly payment $150 $150 $150
Special APR payment periods 48 50 43
Total fees and interest paid $1,178 $1,483 $372
Standard payment periods (22% APR) 73 73 73
Total fees and interest paid $4,913 $4,913 $4,913
Amount saved using balance transfer card vs. standard card $3,735 $3,431 $4,541

Using a balance transfer credit card correctly requires some math — but paying close attention to the numbers can ultimately save you many hundreds or thousands of dollars. And even though some banks have recently shortened or eliminated their introductory low-APR periods for balance transfers (due to increasing economic uncertainty), there are still plenty of good options in the market. Each balance transfer offer is different though, so be sure to vet each potential card and card issuer carefully before applying for a new credit card. Even if you have pretty good credit, your existing credit card debt could throw a wrench into your plans.

And when choosing the best balance transfer credit card, there are a few things you should keep in mind:

  • Though some cards offer sign-on or introductory bonuses or cash rewards, they’re mostly a distraction from the primary goal: paying down your balance.
  • Some balance transfer cards charge an annual fee — but I don’t recommend any of them.
  • You can’t transfer balances between cards from the same issuer, so you can’t transfer a Chase balance to another Chase card.
  • The maximum amount you can transfer depends on a variety of factors, including your credit utilization ratio, the qualifying balance transfer, your minimum payment, and whether you already have good credit or even excellent credit. Each card and credit card company is different, and each factor is determined by the card issuer after assessing your specific creditworthiness.

Glossary of terms

Introductory APR: The interest rate that’s applied toward your balance transfer amount and any purchases during the initial period of card ownership (usually 12 to 20 months).

Standard APR: The interest rate applied toward balances and purchases after the introductory period ends.

Introductory balance transfer fee: The fee charged on a balance transfer during the initial period of card ownership (usually 12 to 20 months).

Standard balance transfer fee: The fee charged on a balance after the introductory period ends.

What are the best balance transfer credit cards right now?

The US Bank Visa Platinum Card is our current pick for best balance transfer credit card right now, thanks to its long introductory APR period and low balance transfer fees. The Citi Simplicity and Wells Fargo Platinum cards are also good options — while they have slightly shorter introductory APR periods, they also have longer balance transfer periods, which is the period of time you have to initiate a balance transfer.

How do balance transfer credit cards work?

Though balance transfer credit cards are technically credit cards, they’re more like a debt-financing tool. They’re better used to pay off existing credit card debt instead of as a payment method.

A balance transfer is when you take the debt, or balance, you owe on one card account and transfer it to another credit card account. Usually this is done with the goal of saving money, transferring debt from a high-interest account to one with lower or no interest. 

While many credit cards allow balance transfers, those primarily designed for the purpose all share one main feature: an introductory 0% APR period on balances transferred to that account, typically applicable to transfers made within the first 60 to 120 days of card ownership. The introductory APR period generally lasts between 12 months and 21 months, giving you a significant period of time to pay off your balance interest-free. 

While a few credit cards offer no-fee transfers, most balance transfer cards charge a fee to transfer your debt, usually between 3% and 5%. Broadly speaking, the longer the introductory 0% APR period, the higher the fee, and vice versa. So the best cards without a balance transfer fee have a shorter introductory APR period, and those with the longest introductory APR period have a 3% to 5% transfer fee. 

If I still have a balance after the introductory APR period is over, can I just keep transferring my debt to a new balance transfer card?

Technically, yes. In some cases, transferring your balance two or three times might even be what’s necessary to finally pay off your debt. But unless you have a firm understanding of how you got into debt in the first place and a plan for getting out of debt, you won’t be working toward a solution. 

While transferring your remaining debt to a second balance transfer card may allow you to pay off your balance without monthly interest or a fee, it’s important to note that there are too many variables for multiple balance transfers to be a fail-proof debt strategy. For example, your card application could be denied, your credit limit could be much lower than you anticipated or your transfer request could be denied. Credit card offers could also change, making it difficult to plan ahead. For this reason I recommend selecting a card that allows you to pay off the full balance after one cycle if possible. 

What’s the maximum balance I can transfer to a new credit card?

The balance transfer limit is determined by the card issuer, on an individual basis. Some cards may take into account your creditworthiness and account history (if applicable) when determining this amount. 

The same goes for determining your credit limit. The card issuer will take into account factors like your credit score, credit utilization, income and housing payments when establishing your credit limit. Remember that the credit limit may be less than you expected and therefore less than your current outstanding balance. To successfully raise your limit, you usually need an adjustment in your financial situation, like increased income or lower housing payment, or an extended period of paying your bills on time, which obviously isn’t a great option if you’re qualifying for a balance transfer to take advantage of an introductory 0% APR period.

What is an introductory APR? And what is an introductory balance transfer fee?

The Introductory APR is the APR applied toward your balance (including balance transfers and purchases in most cases) for the first 12 to 20 months of card ownership, depending on the card. The Standard APR is the APR applied toward your balance after the introductory period ends. The Penalty APR is applied toward your balance if you miss more than one payment in six months, usually, but depends on the individual card and your card issuer.

The Introductory Balance Transfer fee is the fee charged for transfers made during the first 30 to 120 days of card ownership, depending on the card. The Standard Balance Transfer fee is the fee charged for transfers made after the introductory period. Note that some cards only allow balance transfers for a certain period of time. 

How long will it take to complete a balance transfer?

It may take anywhere between 10 days and six weeks to complete a balance transfer, after receiving your new card and cardholder agreement. It’s also important to note that some card issuers, such as Citi, make balance transfers available at their discretion, and could therefore decline a transfer request. And you should probably still pay the minimum on the old card’s balance until you’ve confirmed that the transfer was completed, so you don’t run the risk of fees or penalties. 

What do I do if I have sub-par credit?

Unfortunately, most of the cards recommended above require good to excellent credit scores, meaning above 660 or so. If your credit score is lower than that and you’ve been unsuccessful securing one of the cards above, there are alternative methods for refinancing your debt. You can call your current card issuer and try to negotiate a lower APR or explore a debt consolidation loan, which could allow you to gather all of your debt under a new, lower APR.

Can I use a balance transfer credit card to buy things?

While a balance transfer credit card certainly works like a normal credit card, it’s generally not a good idea to use it to make new purchases. If you currently have credit card debt, your primary goal should be to get out of debt and avoid paying interest. When you purchase something and add new charges to your balance transfer account, you’re moving in the wrong direction, especially if you’re only able to make the minimum payment.

A debit card or cash is better for any new purchases while you pay off your debt, thus leaving your balance transfer account only for debt repayment. This will also help you track your progress more clearly. And keep in mind that some balance transfer credit cards still charge interest on new purchases until you pay off the entire balance (the new purchases plus whatever balance you transferred), which will only compound your debt problem. 

How I picked the best balance transfer credit cards

To select my recommendations above, I primarily looked at two features: The length of the introductory 0% APR period, and the balance transfer fee. Those two factors determine the majority of the overall cost of paying off a balance when using a balance transfer card. 

Given that the average credit card debt for US households is about $6,200, I used a $6,000 hypothetical balance to calculate which cards make sense in certain situations, depending on how much you can pay back each month. 

List of cards researched

  • Amex EveryDay® Credit Card 
  • Chase Slate 
  • Citi Simplicity 
  • Citi Double Cash Card 
  • US Bank Visa Platinum Card 
  • Discover it Balance Transfer
  • Amex EveryDay® Preferred Credit Card
  • BankAmericard Credit Card for Students 
  • Citi Rewards Plus Card
  • Chase Freedom
  • Chase Freedom Unlimited 
  • BankAmericard 
  • Wells Fargo Platinum Card 
  • Simmons Visa
  • SunTrust Prime Rewards
  • Indigo Mastercard
  • Milestone Mastercard
  • Applied Bank Secured Visa Gold Preferred
  • Surge Mastercard
  • OpenSky Secured Visa 
  • Green Dot Primor Secured
  • Fit Mastercard
  • Reflex Mastercard

More personal finance advice

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

Best balance transfer credit cards for August 2021 Source link Best balance transfer credit cards for August 2021



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Consolidation of U.S. oil producers in the Gulf of Mexico accelerates http://tromsosjakklubb.com/consolidation-of-u-s-oil-producers-in-the-gulf-of-mexico-accelerates/ Mon, 16 Aug 2021 09:37:00 +0000 http://tromsosjakklubb.com/consolidation-of-u-s-oil-producers-in-the-gulf-of-mexico-accelerates/ HOUSTON, Aug.16 (Reuters) – U.S. Gulf of Mexico oil and gas producers consolidated at a faster rate during the pandemic, new government data showed, as falling prices crowded out small drillers who were seen as the future of the industry. The dominance of major Gulf producers is looming as the industry’s technology showcase, the Offshore […]]]>


HOUSTON, Aug.16 (Reuters) – U.S. Gulf of Mexico oil and gas producers consolidated at a faster rate during the pandemic, new government data showed, as falling prices crowded out small drillers who were seen as the future of the industry.

The dominance of major Gulf producers is looming as the industry’s technology showcase, the Offshore Technology Conference, officially kicks off in Houston on Monday. The event, which has attracted more than 60,000 people and thousands of exhibitors in previous years, will be smaller this year due to business cutbacks and coronavirus-induced travel restrictions. Read more

The pandemic, as well as the recurring stops of hurricanes, accelerated the disappearance of some producers in the Gulf of Mexico. Small, privately funded companies that have ventured into offshore fields over the past decade have struggled, leading many to exit while others have slipped into bankruptcy.

“We will only see one more consolidation,” said Colin White, analyst at consultant Rystad Energy. Producers backed by private capital are swallowed up by larger companies or abandon exploration for safer infrastructure investments, he said.

The top 10 producers – led by Royal Dutch Shell (RDSa.L), BP Plc (BP.L) and Chevron (CVX.N) – this year pumped 86% of the 1.6 million barrels per day (bpd) of region, up about 11 percentage points since 2017, data from the regulator Bureau of Safety and Environmental Enforcement (BSEE) shows.

Two tightly owned offshore drillers, Fieldwood Energy and Arena Energy, went bankrupt in 2020 as crude oil prices plummeted. US energy experts predict that production return to its peak 1.9 million bpd by 2022.

Arena emerged with its debt extinguished and a reduced drilling program. But the US suspension of offshore auctions “has certainly chilled all potential investors,” said Michael Minarovic, managing director.

NEW PROJECTS TAKE OFF

BP expects first production early next year on a 140,000 bpd project, Shell recently approved a 100,000 bpd field that will begin production in 2024, and Chevron is preparing to operate a field at very high pressure that could pave the way for a series of new wells, said Neil Menzies, general manager of Chevron’s capital projects for its Gulf of Mexico business unit.

“We expect to grow to around 400,000 bpd by the middle of the decade,” said Starlee Sykes, BP’s senior vice president for Gulf operations, from around 350,000 bpd currently. With advanced seismic and high pressure technologies, “I am optimistic that the Gulf of Mexico will be there for a very long time,” she said.

Consolidation has reduced the number of Gulf producers to around 49 today, down from 60 five years ago. Financing for small businesses has dried up, leaving future sinks in the hands of large operators who can self-finance their operations.

“The amount of regulation and the overhead make it difficult (for small businesses),” said Ryan Smith, senior director of commodity research at energy data provider East Daley Capital. “Bigger operators are used to overhead.”

The oil majors are renewing their investments due to the low carbon intensity of the region’s production. Offshore wells are under high pressure, which means oil flows easily to the surface instead of needing carbon-emitting boosters. U.S. regulators’ ban on routine flaring has also fueled a vast network of pipelines, resulting in a lower carbon footprint than many onshore fields, executives said.

Royal Dutch Shell, among others, plans to increase its investments in offshore. U.S. project approvals were unaffected by the Biden administration’s review, executives said.

The US Gulf oil fields, with their proximity to land-based refineries and gas processing plants, are “the closest thing the energy industry has to a farm-to-table restaurant.” said Bill Langin, senior vice president of deepwater exploration at Shell.

Additional reporting by Jessica Resnick-Ault in New York; edited by David Gregorio

Our standards: Thomson Reuters Trust Principles.



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Old Leftists Bring New Hope to Cardinals – FOX 2 http://tromsosjakklubb.com/old-leftists-bring-new-hope-to-cardinals-fox-2/ Mon, 16 Aug 2021 03:49:30 +0000 http://tromsosjakklubb.com/old-leftists-bring-new-hope-to-cardinals-fox-2/ Page to fight anti-Semitism at this morning’s COVID briefing Local News / 20 minutes ago Video Missouri hits 600,000 COVID cases over the weekend Local News / 18 minutes ago Video Missouri nears 600,000 cumulative COVID cases and 10,000 virus deaths Local News / 4 days ago Video Some people worry about a potential side […]]]>


Page to fight anti-Semitism at this morning’s COVID briefing

Local News /

Missouri hits 600,000 COVID cases over the weekend

Local News /

Missouri nears 600,000 cumulative COVID cases and 10,000 virus deaths

Local News /

Some people worry about a potential side effect when getting the COVID-19 vaccine

All in a day’s drive /

Missouri adds 1,754 COVID cases, 142 virus deaths

Local News /

St. Louis County School District Offers $ 750 to Employees Receiving COVID Vaccine

Local News /

119th Missouri State Fair Kicks Off Thursday, COVID Testing and Vaccines Available for Fair Fans

Local News /

Health official says hospitals in St. Louis could soon run out of beds due to COVID admissions

Local News /

Pandemic Task Force Data: COVID Deaths Rise in Saint-Louis Area Hospitals

Local News /

Missouri registers more than 3,500 COVID cases for second time in a week

Local News /

Childhood COVID cases on the rise in the Saint-Louis area

Local News /

District court hears AG’s lawsuit against St. Louis County mask warrant today

Local News /



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How to reduce and pay off credit card debt http://tromsosjakklubb.com/how-to-reduce-and-pay-off-credit-card-debt/ Mon, 16 Aug 2021 01:00:00 +0000 http://tromsosjakklubb.com/how-to-reduce-and-pay-off-credit-card-debt/ You need a plan of action to reduce and eliminate this debt. Paying off credit card debt requires a hands-on approach, from determining the best repayment strategy to communicating with creditors to negotiating interest rates. Credit Score Report A good way to start is to check your credit report and your credit score, both of […]]]>


You need a plan of action to reduce and eliminate this debt. Paying off credit card debt requires a hands-on approach, from determining the best repayment strategy to communicating with creditors to negotiating interest rates.

Credit Score Report

A good way to start is to check your credit report and your credit score, both of which can be done for free. Check if this is correct and identify the accounts that lower your rating.

Negotiate with lenders

Explain to lenders the steps taken to avoid defaults and ask to renegotiate the debt. Lenders will make concessions if they feel loose credit lines have been abandoned for good.

Debt consolidation

Combine several old debts into one new one, ideally at a lower interest rate, making payments more manageable or the repayment period shorter. There are several ways to consolidate debt, including balance transfer cards (with balance transfer fees) and personal loans.

Repayment strategy

There are two ways of dealing with debt. “Avalanche” and “snowball” methods. The first is to pay off the debts with the highest interest rates first. The other is to tackle the lowest amount of debt first, pay it off, and then tackle the next loan.

Payment automation

Automating payments is an easy way to ensure that the repayment strategy is working and that future debts are paid on time.

Points to note

  • As the credit card balance is carried forward, interest is calculated on the average daily balance. Making smaller payments frequently can reduce interest. Pay double the minimum amount to have a big impact on debt reduction.
  • Consider borrowing money to pay off the outstanding amount using a peer-to-peer lender service.

(The content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava, and Labdhi Mehta.)



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Make your customers benefit from debt http://tromsosjakklubb.com/make-your-customers-benefit-from-debt-2/ Mon, 16 Aug 2021 00:37:23 +0000 http://tromsosjakklubb.com/make-your-customers-benefit-from-debt-2/ This article examines several strategies that, when used in combination with your client’s advice, will make their debt work more efficiently and help them achieve financial independence sooner than expected. Access to equity If the value of a client’s property has increased, refinancing can unlock that capital to access funds for a deposit in an […]]]>


This article examines several strategies that, when used in combination with your client’s advice, will make their debt work more efficiently and help them achieve financial independence sooner than expected.

Access to equity

If the value of a client’s property has increased, refinancing can unlock that capital to access funds for a deposit in an investment property, for personal investments in a business or in stocks and shares as part of their strategy of wealth creation, to renovate their home, to modernize the family car or for other purposes such as helping with the education of children.

The different debt goals can be isolated in separate splits within a single set of home loans. This allows for better management of tax-deductible debts and, as with debt consolidation, allows for shorter loan terms for debts linked to shorter-term assets.

Prepare to create wealth

With the right strategy, borrowing money to make an investment can allow your clients to build wealth faster than if they were using their own capital. To be successful, investments acquired with borrowed funds must generate a total return (income and capital growth) greater than the after-tax costs of financing the investment – including interest. This is commonly used for property and stocks when borrowing against home equity or lending on margin.

Recycle debt to build wealth

With the right investment strategy, debt laundering can be used to help your clients build long-term wealth, with their home equity being used to establish an investment loan and those funds being used in the fund. part of their investment strategy. The earned investment income is then used to reduce the outstanding non-deductible home loan balance and create more equity to purchase additional investments.

Reduce inefficient debt

If your client is spending less than they earn, it may be possible to consider using this excess cash to speed up their mortgage repayment. The benefits of this are to shorten the loan term, save on interest, and potentially create equity that could be used for other purposes. Simple structural changes such as increasing the frequency of repayments, increasing repayment amounts, or depositing their salary directly into a compensation account can reduce your client’s ineffective debt faster.

Debt consolidation

A mortgage rate is potentially the lowest form of interest your customers will pay. Credit cards and personal loans can have rates up to four times higher. If a client has personal debt, you may want to consider consolidating it into their mortgage. Essentially, they increase the mortgage on their home (assuming there is equity) and use the extra funds to pay off personal or credit card debt. The overall effect being the lower mortgage rate will apply to all their debts.

Customers should aim to continue making the same overall repayment level, which will shorten the loan term and with a car loan for example, this component should not last beyond the useful life of the car. Customers must close the credit card or other facilities they refinanced.

Effectively use cash reserves

If a client has a large amount of money in savings, it can be used more efficiently by transferring it to a matching account linked to their mortgage. This will reduce the balance your client’s interest is calculated on and effectively earn them a higher after-tax return than if they were in a cash account. Plus, if they keep the repayments at the same level, they can still shorten the term of their loan by lowering monthly interest charges. If the loan is for an investment, an offsetting account will allow the client to save interest, while preserving the level of deductible debt.

Invest in real estate via an SMSF

Through a Limited Recourse Loan Agreement (LRBA), clients can purchase real estate through their SMSF. This can be a residential investment property or, for the self-employed and small business owners, a commercial investment property where SMSF is the owner of the premises and the company is the paying tenant. market rent to SMSF.

Use an inheritance

If a client receives a financial windfall, they can use it to reduce their mortgage debt and borrow an equivalent amount for investment purposes – effectively replacing inefficient debt with efficient debt and building part of their portfolio. investment and its wealth creation strategy.

Regular review

Customer situations change, interest rates change, and mortgage products become obsolete and obsolete. With a regular review of all existing loan facilities, your clients can potentially earn a better interest rate, reduce their repayments, and build up equity. The review will also allow them to take advantage of more flexible terms and features that may be more suited to their current situation or that were not available when they originally took out their loan.

Switching from a low-doc loan to a full-doc loan

If your client is currently on a low doc loan, it is likely that he will pay a higher interest rate. If their jobs and finances have become more stable, this may be an opportunity for them to switch to a loan for a full doctorate, where there may be a lower interest rate, lower running costs, or more flexibility. .

Supporting the retirement lifestyle

A reverse mortgage allows clients over a certain age to borrow against the equity in their property. This group often finds it difficult to borrow on standard terms. Repayments are not required because interest accumulates over the life of the loan. However, deposits can be made at any time. They can be very effective, for example providing short-term liquidity to avoid having to sell a performing investment. With the right advice, a well-managed reverse mortgage can provide an opportunity to improve the lifestyle of a retired client.

While these strategies should be viewed in the context of a client’s overall advice and strategy, with the right processes to identify opportunities and the right alliance of mortgage brokers to implement the opportunities, the practices can add value. Significant value to their clients by helping them achieve their financial goals and objectives.

Anthony Landahl, Managing Director, Equilibria Finance

Make your customers benefit from debt

if a logo

Last updated: August 16, 2021

Posted: Aug 16, 2021

The ifa Excellence Awards are back in 2021 and nominations are now open!

This prestigious distinction recognizes outstanding professionals in the financial advisory industry, highlighting the outstanding accomplishments of the nation’s best and brightest. If this sounds like you or someone you know, then nominate for the ifa Excellence Awards 2021 today! ifa.com.au/excellence-awards



Source link

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Make your customers benefit from debt http://tromsosjakklubb.com/make-your-customers-benefit-from-debt/ Mon, 16 Aug 2021 00:37:23 +0000 http://tromsosjakklubb.com/make-your-customers-benefit-from-debt/ This article examines several strategies that, when used in combination with your client’s advice, will make their debt work more efficiently and help them achieve financial independence sooner than expected. Access to equity If the value of a client’s property has increased, refinancing can unlock that capital to access funds for a deposit in an […]]]>


This article examines several strategies that, when used in combination with your client’s advice, will make their debt work more efficiently and help them achieve financial independence sooner than expected.

Access to equity

If the value of a client’s property has increased, refinancing can unlock that capital to access funds for a deposit in an investment property, for personal investments in a business or in stocks and shares as part of their strategy of wealth creation, to renovate their home, to modernize the family car or for other purposes such as helping with the education of children.

The different debt goals can be isolated in separate splits within a single set of home loans. This allows for better management of tax-deductible debts and, as with debt consolidation, allows for shorter loan terms for debts linked to shorter-term assets.

Prepare to create wealth

With the right strategy, borrowing money to make an investment can allow your clients to build wealth faster than if they were using their own capital. To be successful, investments acquired with borrowed funds must generate a total return (income and capital growth) greater than the after-tax costs of financing the investment – including interest. This is commonly used for property and stocks when borrowing against home equity or lending on margin.

Recycle debt to build wealth

With the right investment strategy, debt laundering can be used to help your clients build long-term wealth, with their home equity being used to establish an investment loan and those funds being used in the fund. part of their investment strategy. The earned investment income is then used to reduce the outstanding non-deductible home loan balance and create more equity to purchase additional investments.

Reduce inefficient debt

If your client is spending less than they earn, it may be possible to consider using this excess cash to speed up their mortgage repayment. The benefits of this are to shorten the loan term, save on interest, and potentially create equity that could be used for other purposes. Simple structural changes such as increasing the frequency of repayments, increasing repayment amounts, or depositing their salary directly into a compensation account can reduce your client’s ineffective debt faster.

Debt consolidation

A mortgage rate is potentially the lowest form of interest your customers will pay. Credit cards and personal loans can have rates up to four times higher. If a client has personal debt, you may want to consider consolidating it into their mortgage. Essentially, they increase the mortgage on their home (assuming there is equity) and use the extra funds to pay off personal or credit card debt. The overall effect being the lower mortgage rate will apply to all their debts.

Customers should aim to continue making the same overall repayment level, which will shorten the loan term and with a car loan for example, this component should not last beyond the useful life of the car. Customers must close the credit card or other facilities they refinanced.

Effectively use cash reserves

If a client has a large amount of money in savings, it can be used more efficiently by transferring it to a matching account linked to their mortgage. This will reduce the balance your client’s interest is calculated on and effectively earn them a higher after-tax return than if they were in a cash account. Plus, if they keep the repayments at the same level, they can still shorten the term of their loan by lowering monthly interest charges. If the loan is for an investment, an offsetting account will allow the client to save interest, while preserving the level of deductible debt.

Invest in real estate via an SMSF

Through a Limited Recourse Loan Agreement (LRBA), clients can purchase real estate through their SMSF. This can be a residential investment property or, for the self-employed and small business owners, a commercial investment property where SMSF is the owner of the premises and the company is the paying tenant. market rent to SMSF.

Use an inheritance

If a client receives a financial windfall, they can use it to reduce their mortgage debt and borrow an equivalent amount for investment purposes – effectively replacing inefficient debt with efficient debt and building part of their portfolio. investment and its wealth creation strategy.

Regular review

Customer situations change, interest rates change, and mortgage products become obsolete and obsolete. With a regular review of all existing loan facilities, your clients can potentially earn a better interest rate, reduce their repayments, and build up equity. The review will also allow them to take advantage of more flexible terms and features that may be more suited to their current situation or that were not available when they originally took out their loan.

Switching from a low-doc loan to a full-doc loan

If your client is currently on a low doc loan, it is likely that he will pay a higher interest rate. If their jobs and finances have become more stable, this may be an opportunity for them to switch to a loan for a full doctorate, where there may be a lower interest rate, lower running costs, or more flexibility. .

Supporting the retirement lifestyle

A reverse mortgage allows clients over a certain age to borrow against the equity in their property. This group often finds it difficult to borrow on standard terms. Repayments are not required because interest accumulates over the life of the loan. However, deposits can be made at any time. They can be very effective, for example providing short-term liquidity to avoid having to sell a performing investment. With the right advice, a well-managed reverse mortgage can provide an opportunity to improve the lifestyle of a retired client.

While these strategies should be viewed in the context of a client’s overall advice and strategy, with the right processes to identify opportunities and the right alliance of mortgage brokers to implement the opportunities, the practices can add value. Significant value to their clients by helping them achieve their financial goals and objectives.

Anthony Landahl, Managing Director, Equilibria Finance

Make your customers benefit from debt

if a logo

Last updated: August 16, 2021

Posted: Aug 16, 2021

The ifa Excellence Awards are back in 2021 and nominations are now open!

This prestigious distinction recognizes outstanding professionals in the financial advisory industry, highlighting the outstanding accomplishments of the nation’s best and brightest. If this sounds like you or someone you know, then nominate for the ifa Excellence Awards 2021 today! ifa.com.au/excellence-awards



Source link

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Biden’s latest mortgage assistance can reduce your monthly payment by up to 25% http://tromsosjakklubb.com/bidens-latest-mortgage-assistance-can-reduce-your-monthly-payment-by-up-to-25/ Sun, 15 Aug 2021 21:01:55 +0000 http://tromsosjakklubb.com/bidens-latest-mortgage-assistance-can-reduce-your-monthly-payment-by-up-to-25/ Biden’s latest mortgage assistance can reduce your monthly payment by up to 25% While most U.S. homeowners have come out of the pandemic unscathed, or even further advanced with economical refinances at cheap mortgage rates, millions more have had to opt out to put their loan repayments on hold. A federal foreclosure ban provided them […]]]>


Biden’s latest mortgage assistance can reduce your monthly payment by up to 25%

While most U.S. homeowners have come out of the pandemic unscathed, or even further advanced with economical refinances at cheap mortgage rates, millions more have had to opt out to put their loan repayments on hold. A federal foreclosure ban provided them with additional protection.

Now, these guarantees fall.

Although more than 1.74 million mortgages are still in arrears as of Aug. 10, according to mortgage data and technology provider Black Knight, the moratorium on foreclosures expired on July 31 after several extensions.

Some homeowners may find themselves unable to resume regular payments if lenders refuse to extend their forbearance periods. But if this is the boat you find yourself in, new initiatives from President Joe Biden’s administration could help keep you afloat.

A new help for owners

Maxx-Studio / Shutterstock

In June, when Biden extended the moratorium on foreclosures for the last time, he also extended the forbearance deadline for borrowers on government-guaranteed loans to September 30.

Time is running out if you have a mortgage that you cannot pay through the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), or the Department of Veterans Affairs (VA). TIC Tac.

In recent weeks, the White House has announced additional aid, also for government guaranteed loans.

Here is how it is broken down by type of loan:

FHA loans

FHA loan application

Yuriy K / Shutterstock

To keep borrowing costs manageable, mortgage agents are tasked with offering FHA borrowers who can resume their regular payments the option of moving any payments they’ve missed until the end of their mortgage at no additional cost. .

For those who cannot get back on track, the White House said the Department of Housing and Urban Development “will improve the ability of services to provide all eligible borrowers with a 25% [principal and interest cost] reduction.”

This reduction is not as simple as it seems. Known as COVID-19 Recovery Modification, it involves extending the term of your FHA loan to 360 months “at market rate”. Your monthly payments will certainly be less, but you will earn a lot more over the next 30 years.

HUD also offers what it calls the COVID-19 Autonomous Partial Recovery Claim, where FHA borrowers can access an interest-free lien to fund their mortgage payments. The lien will be repaid when you sell your home or refinance your property.

The options aren’t ideal, but they’re better than defaulting on your mortgage.

USDA loans

USDA’s special COVID-19 relief measure can help borrowers reduce their monthly payments by up to 20%.

The options available to USDA borrowers, who are found in rural and some suburban areas, include:

Borrowers will first have their interest rates reassessed. If a lower rate does not meet the 20% reduction target, a combination of rate reduction / term extension will be considered. If that still doesn’t work, a mortgage collection advance will be added to the equation.

VA loans

Keys on the flag

Vitalii Vodolazskyi / Shutterstock

VA mortgage holders can also get a 20% reduction in their monthly mortgage payments.

The VA’s COVID-19 repayment option allows the VA to purchase a borrower’s mortgage payments that are past due – and in some cases up to 30% of the outstanding principal balance. The borrowers must then repay the Department of Veterans Affairs, but at 0% interest.

Payments can be reduced if VA borrowers and their agents agree to extend the loan. VA loans can currently be extended for up to 120 months, potentially making the repayment term of 40 years.

Conventional mortgages

While no new payment reduction program was put in place for borrowers with conventional mortgages associated with Fannie Mae or Freddie Mac, it should be remembered that help was already available if one of the mortgage giants government sponsored owns your loan.

You can defer your payments for up to 18 months without incurring interest penalties. These missed payments do not have to be repaid until you sell or refinance your property.

If you need more help, there are loan modification options that can reduce your monthly mortgage payments by 20%.

And note that $ 10 billion in aid was made available to states in the most recent COVID-19 aid program to help homeowners pay not only their mortgages, but taxes, utilities, etc. home insurance and homeowners association contributions.

Other sources of help with your mortgage

To save money

bellejournée12 / Shutterstock

If you’re wondering where your next mortgage payment is going to come from, there are a few things you can do to free up space in your budget.

First, if you’ve made your payments regularly and are still in good standing with your lender, consider refinancing your mortgage. With today’s low mortgage rates, you could save hundreds a month with a refi.

If you have a lot of high-interest debt, like credit card balances, they’re definitely eating into your cash flow. Consider consolidating all of your high interest debt into one low interest debt consolidation loan. You’ll pay less interest and wipe those debts off your books sooner.

You can also improve your financial situation by increasing your income.

There is currently a colossal hiring boom in the United States, so now is not a bad time to look for a better paying job or take up self-employment that generates money.

Or, you can try your luck in today’s still hot stock market without risking the savings of your life. A very popular app can help you invest in a diversified portfolio using little more than the “coin” of your daily purchases.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.



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BBB Scam Alert: beware of fraudulent QR codes http://tromsosjakklubb.com/bbb-scam-alert-beware-of-fraudulent-qr-codes/ Sun, 15 Aug 2021 07:00:47 +0000 http://tromsosjakklubb.com/bbb-scam-alert-beware-of-fraudulent-qr-codes/ Dustin Fawcett is the Regional Director of the Better Business Bureau in the Permian Basin. Visit www.bbb.org or call 563-1880. In an effort to minimize physical contact at businesses across the country in response to the COVID-19 pandemic, many businesses have turned to QR codes to guide customers to their apps, menus, events, or tracking […]]]>


In an effort to minimize physical contact at businesses across the country in response to the COVID-19 pandemic, many businesses have turned to QR codes to guide customers to their apps, menus, events, or tracking services. parcel. However, BBB Scam Tracker is receiving reports of crooks who use QR codes as a disguise to direct victims to malicious websites, tricking the user into entering personal information or login credentials that the crooks can steal.

How the scam works

You come across a QR code through an email, direct social media message, text message, flyer, or other marketing material that seems legitimate. After scanning the code with your phone’s camera, your phone may direct you to a phishing website and ask the user to provide basic information to access the content. Other times, crooks use a QR code to automatically launch payment apps or track a malicious social network account.

In many cases, crooks who send fraudulent letters or emails include the official QR code of the organization or entity they claim to represent to appear more credible. A victim reported this tactic to BBB Scam Tracker when she received a fraudulent letter regarding the student loan consolidation.

QR codes are also a common element in cryptocurrency scams, where Bitcoin addresses are often sent via QR codes. A consumer who was contacted by a “binary and forex” trader via Instagram regarding an investment opportunity said: “after paying the withdrawal fee through the Bitcoin machine and sending it to the QR code that m ‘was provided, I received another email saying I needed to pay a transfer fee. That’s when I realized something was wrong.

How to avoid QR scams

Confirm the QR code before scanning. If you receive a QR code from a friend via text or a social media message from a co-worker, be sure to confirm with that person that they wanted to send you the code to verify that they didn’t. not been hacked.

Don’t open links from strangers. If you receive an unsolicited message from a stranger that includes a QR code, BBB strongly recommends that you do not scan it. If the message accompanied by the code promises interesting gifts or investment opportunities, use extreme caution if you decide to interact with it.

Check the source. If a QR code appears to be from a trusted source, it is wise to check with the company or entity to verify its authenticity. Call or visit their official website to confirm that it is legitimate and that the source of the communication is part of the organization.

Beware of short links. If a shortened URL appears when scanning a QR code, there is no way of knowing where the code will take you once the link is followed. It could be a pretext for a malicious website.

Check that there is no tampering. Some scammers attempt to mislead consumers by modifying legitimate commercial advertisements or placing sticks over the QR code. Keep an eye out for signs of tampering and, if discovered, notify the business or entity to make sure the displayed QR code is genuine.

Install a QR scanner with additional security. Some antivirus companies have QR scanner apps that check the security of a scanned link before it opens. These apps can help identify phishing websites, forced app downloads, and other unsafe links.

To learn more about protecting your information online, read the BBB’s advice on data privacy and cybersecurity.

If you’ve been the victim of a QR scam, report it to BBB.org/ScamTracker. Your report can prevent someone else from being a victim.



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