Unsecured Personal Loans – the Ubiquitous Loan

By A. Wilsoon

Secured loans are the homeowners domain. They can avail loans by putting up their houses as collateral. For someone without a house to use as collateral, unsecured personal loans are the best and, generally, the only viable option.

Unsecured personal loans do not require a collateral. In fact, with these loans, lenders are taking somewhat of a gamble. Of course, they do what they can at their end to ensure that the person taking the loan is reliable enough to return the same in due course of time. The borrower’s credit history is checked to ascertain his trustworthiness.

The Internet provides an exhaustive list of lenders, all seemingly good bets. Still, not all lenders are true to their words. The rates that are quoted are flexible rates; it varies for different customers. All lenders are past masters in making the customer believe that he has come to the right place.

The reality is that it is very difficult to tell what kind of deal one is getting without comparing all or most of the loans that is available. There is a spate of unsecured loans in the financial market, each offering both sides of the coin.

There are many comparison services one can use. These services evaluate the loan market using the borrower’s criteria to do so. The borrower gets a shortlist of the loan deals that best suits his circumstance. Even people with bad credit can avail an unsecured personal loan. There are specialised lenders who deal with customers having a history of payment defaults, County Court Judgments (CCJs) etcl.

Of course, with such a good deal, there are bound to be some drawbacks. The most significant – though eminently manageable – drawback is the higher interest rate. This is mainly due to the absence of collateral in the case of unsecured personal loans. In some cases, mostly with borrowers having good credit records, interest rates are brought down.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his master in Business Administration and is currently assisting Go4ukloans as a finance specialist.

For more information please visit http://www.go4ukloans.co.uk

Fieldstone changes loan covenants

Another subprime mortgage lender appears to be teetering.

Fieldstone Investment Corp., a real-estate investment trust based in Columbia, Md., told investors late Wednesday that in anticipation of downbeat fourth-quarter operating results, it has restructured its financial covenants -- or restrictions -- with three lenders in exchange for lines of credit under four lending agreements totaling as much as $1.8 billion.

The new terms with JP Morgan Chase & Co., Credit Suisse Group and Lehman Brothers Holdings Inc. require Fieldstone to maintain its tangible net worth at $365 million, as opposed to the $400 million set previously. In addition, the lenders agreed that the operating loss projected by Fieldstone for the second half of this year will not result in a breach of agreements. Fieldstone said it is continuing to negotiate with the lenders to extend the current terms beyond Jan. 31.

Shares in Fieldstone, which have more than halved year-to-date, closed down 8.8 percent, or 46 cents, to $4.79 on Thursday on the Nasdaq Stock Market. The announcement comes as higher funding costs, weakening loan demand and rising delinquencies are pressuring a growing number of mortgage lenders appealing to borrowers with checkered credit profiles.

Speculation has intensified recently that Fieldstone could be a takeover target. National Mortgage News, a trade publication, recently reported that the company has hired bankers to explore a potential sale. Mark Krebs, director of investor relations at Fieldstone, declined to comment on the report.

"When the company has to start amending covenants, it's definitely bad news," said Richard Hofmann, an analyst with independent research firm CreditSights. Financial covenants serve to protect lenders by allowing them to call loans if a company fails to meet agreed-upon conditions. In more serious scenarios, a violation of covenants can ultimately lead to bankruptcy.

Analyst Scott Valentin at Friedman Billings Ramsey viewed the change in covenants as an indication that Fieldstone continues to struggle to achieve profitability. After the market close Wednesday, Fieldstone also declared a fourth-quarter dividend of 5 cents a share, compared with the 34 cents a share for the third quarter.

At the same time, Valentin said the fact that the lenders are allowing for net losses rather than closing the credit lines appears to indicate that "they feel comfortable enough with Fieldstone's liquidity and capital." By comparison, Ownit Mortgage Solutions, a smaller and privately-held subprime lender in California, had to shut down after its lender pulled funding.

As of Nov. 15, Fieldstone had a total of $2.25 billion of lines of credit, including the $1.8 billion under the newly renewed agreements with JP Morgan Chase, Credit Suisse and Lehman Brothers and about $400 million under an agreement with Merrill Lynch & Co. "We have very good long-term relationships with our lenders," said Krebs of Fieldstone. "We're in a good shape from a liquidity standpoint. We're planning to be around for a long time."

The company posted a $45 million loss in the third quarter, blaming an increase in reserves due to "the accelerated delinquencies of the newer loans" and continued market pressures on sales margins. In a statement accompanying the results, Fieldstone Chief Executive Michael Sonnenfeld said: "We are working to lower our portfolio delinquencies, to lower our cost to originate new loans and to improve the level of our loan originations."

The company said it is slashing the number of wholesale operation centers from 16 to nine, as part of its plan to cut cost. It expects to take a one-time pre-tax charge of about $500,000 in the fourth quarter to reflect the consolidation.

Source businessweek.com

Bad Credit Credit Cards - Do Your Homework

By Blake C. Hendricksonz

Sometimes we all have a time in our lives when we just cannot seem to keep up with the bills, the money does not seem to flow in as we had expected, and this results in some real trouble, and usually bad credit. This does not mean that life is over, this simply means that you have to start back on the right train of thought and improve your credit. Even with a poor history of credit, you might still be able to get bad credit credit cards.

Yes, you will likely have a little more trouble getting these cards, depending on your credit score. You will also have fewer options, rewards, and benefits than those with perfect credit, but bad credit credit cards are specifically for those who have credit that is less than perfect, has had some trouble in their lives, but want to improve their credit and get back on the right financial path.

To find bad credit credit cards, you will first want to do your homework. The internet is a great place to start. It is not recommended that you just start applying for every credit card that says, bad credit, no credit, no problem. No, you need to know that each time you apply for any credit card, if you get denied, you are hurting your credit even more. You need to first do your homework.

First thing first, know what is on your credit report. If there are any errors, get them changed before you start trying to get bad credit credit cards. If you had fallen on a particularly hard time or there are special circumstances that led to a black mark on your credit report, you can have the credit bureau put a note on your report, which might be considered when you apply for the bad credit credit cards.

Lastly, you need to know what bad credit credit cards companies look for before extending credit to any person. They look at not only your credit report and your payment history, but they will also look at how much credit you currently have, if you have a full time job, your income, and even how long you have lived in y our home. You see, there is more to getting bad credit credit cards than just your credit report, do not give up hope.

The author of this article is owner & operator of several successful websites for bad credit credit cards. To get your credit cards for people with bad credit visit our website today.

Home equity loan rates

For millions of Americans, a home equity loan has become the perfect way to borrow money and pay off debts. By borrowing the equity in your home you have the ability to use this money for whatever you desire.

The number one use for these kinds of loans is to pay off credit card debts, with good reason too. Currently, the average family has approximately $10,000 in high interest credit card debt. By using a much lower interest home equity loan rate, you can pay off these balances and start fresh. Because your home is used as collateral to guarantee the loan, banks, credit unions, and other mortgage lenders love making loans like these. Other reasons why people take out a loan on their home include:

Home improvement projects - Taking the funds and updating or adding on to your home will not only make it look better, but it will also increase the value of your home.

Medical bills / College - Using the money to pay off these types of bills and expenses is a much better strategy than using a high interest credit card.

If you're a homeowner and need financial help for whatever reason, a home equity loan may be very beneficial.