Personal Finance Options For People With Bankruptcy and a Bad Credit History

Subprime and bad credit lenders have a variety of personal finance options available for individuals with past bankruptcies. To begin with, you can check with your local bank or credit union whether it offers bad credit loans. You can also search on the internet for bad credit lending houses that offer loans and personal finance options.

However, do bear in mind that the risk of lending money to people with bad credit ratings is high, and therefore, the interest rate that the loan companies charge for loans is at least 4% higher than the typical prime lending rate of banks.

Here are some things you need to bear in mind if you are looking for a lender to help you out:

1. Consider a number of sources before you sign up for a loan; do not accept the first offer that you get from a subprime lender.

2. Read and understand the entire loan agreement carefully, especially the repayment schedule, as well as check whether you can really afford this loan. The loan details may be wonderful, but if your pay check does not give you the cushion to take the loan, re-consider your decision before you sign the agreement.

3. Further, learn everything about the other “hidden” charges such as transaction fees and application fees that the loan will entail. Ensure that you clarify all the details regarding the loan agreement with the lender. Especially, if there is a certain part that you do not understand, ask your loan agent to explain it in detail.

If your credit history is bad or if you have undergone a bankruptcy, it may become a little difficult for you to obtain a loan. Some lenders and subprime loan providers require additional security and may charge higher interest rates, but they will certainly be able to help you. Just spend some time and effort on conducting a thorough research to find the right personal finance option from a bad credit lender that maximizes your chances of sailing through the bad financial times.

Personal Finance Saving Options

There are many options available to the consumer in the form of products and services offered by banks and credit unions. Although some may opt for the more traditional route of a simple savings account, others may wish to participate in a newer form, which is known as the money market account. A money market account is very similar to a traditional simple savings account with a few subtle differences.

The money market account normally pays a significantly higher interest rate to those who hold these types of savings accounts while the traditional simple savings accounts are normally pretty low. Also, money market accounts may have stricter rules when it comes to the withdrawal of funds from these accounts. Money market investment sometimes require the consumer to deposit money into this type of account and allow the money to “season.”

Seasoning means that the money will have to sit in the account for a due amount of time before the bank or credit union will allow one to withdraw his or her money. They may also have specific rules concerning the amounts of withdrawals one may make over a given amount of time. Another difference when looking at a money market account over a traditional simple savings account is the minimum balance.

One should remember that he or she is earning a higher percentage rate in this type of account over a normal savings account. For that higher interest rate, many banks or credit unions may require a higher balance to be held in the account than they may require for a savings account. This higher balance means that if one withdraws money even for emergency situations from this account, he or she will be charged a penalty if the total balance falls below their minimum requirements. This is something one must truly consider when opening up a money market account over a traditional simple savings account.