Equipment Leasing | Commercial Mortgage

A recession brings about economic uncertainty, because consumers are not willing to spend money, and banks are not always willing to lend it. But part of that is hearsay, as a recession is a great time to take out a loan.

A recession is a good time to buy a home because interest rates tend to be lower, which will save the buyer thousands of dollars. But that doesn’t mean you should go into the home loan process unprepared. First of all, pull your credit report.

Pull your credit score. Individuals need a high credit score to qualify for good home loan rates during a recession. Examine the report for errors and fix them immediately. High balances on the credit card’ You must pay them off. What about late payments on the credit card’ Establish a history of at least six months to a year of strong payment.

A strong credit score will not do without money in the bank. Make sure you have least 20% of the property’s total value in the bank. Also allow money in the bank for two to three months payments of the loan. These steps are required by the lender.

Make sure you can verify your employment, income and assets. It’s not just enough to tell the home loan provider that you have a job and some money in the bank. You will need to provide documentation like paycheck stubs and bank account statements in order to secure a home loan.

The documentation is even more important if applying for a home loan during a recession, because the bank is less willing to grant the loan. Submitting the documentation early ensure a quicker approval.

Although the current economy does not look promising, do not fear the chance of earning a loan. Home loaners still need business, but they will remain more selective until the economy changes. Inform the lender that you are speaking with other lenders and they will be more inclined to offer a cheaper deal.

Buying a home can be time consuming and intimidating, and buying a home in a recession can be downright frightening. But with some preparation on your part, you should be able to qualify for a home loan with competitive rates. See your home loan provider for answers to your specific questions. They can take the time to examine your situation and come up with a home loan that best suits your needs, recession or not.

Tom Martens is the content coordinator for South Arica?s leading Homeloans portal which amongst others offers Bond origination services for all major banks.

On May 22, 2009 President Obama signed the Credit Card Bill of Rights into law. The final law was a compromise between the House version and the stricter Senate bill designed to reverse some of the billing practices of the credit card industry.

Heralded as a win for the consumer, the Act will best serve those consumers who manage their credit cards responsibly. However the law does not go into effect until February 2010 which gives the banks an opportunity to maximize their current billing strategy. Considering that last year Americans paid over $11 billion dollars in fees (not interest rates) and that the new law is going to greatly restrict the billing practices that generated those fees, the banks have to scramble to come up with new revenue streams. Here’s how the law affects consumers and banks:

Increases in interest rates cannot be applied to existing balances. This means that when banks announce a new increased rate on a consumers’s account, it can only apply on purchases and transactions going forward. Rate increases can not be applied to balances already on the account. This represents one of the banks’ major source of revenue.

Double Cycle Billing will be a thing of the past. The bill strictly forbids charging interest on a balance that has been previously paid. Currently banks compute interest base on the last 2 months of billing even if the previous month had been paid in full. The new bill prohibits this practice.

No more over the limit fees. Today, if a consumer is near his credit limit and makes a purchase that puts him over the limit, the bank will honor the charge but will hit the consumer with a hefty over the limit fee that the consumer usually isn’t aware of until he gets his statement. The new law would prohibit this practice unless the consumer explicitly requests it. Now if the consumer goes over the limit the card will simply be disapproved and the charge will not go through.

Payments will be applied to the highest interest rate first. That amount paid by the consumer that is above the minimum payment due, will be applied to the highest rate in the account rather than the lowest rate which is now the practice of the credit cards.

Online bill payments cannot be subject to a fee. Payments made online or by electronic transfer or by phone can not be charged a fee. This reverses a practice of many credit card issuers. Card statements must be delivered to the consumer at least 21 days before the payment is due.

Minors will have to prove they can pay their bill. Persons under 21 will have to show they have a source of income in order to be issued a credit card. Parent’s can co-sign on the agreement to get around this requirement.

Not surprisingly, the credit card industry is predicting difficulties in the American credit system as a result of this new law. Being for profit organizations, they have no choice but to find new ways to make money of their services to replace that money that will no longer be available as a consequence of the new regulation. Here’s what they see in the future:

Charging for credit cards Not surprisingly, a return to credit card charges is a real possibility. They are easy to implement and it is almost guaranteed that all the issuers will go this route to one degree or another. The bank industry is predicting charges to be in the $50 to $100 per year range.

Tightening of credit. Banks have suffered their biggest default rates ever, and as a result predict it will become ever more difficult to qualify for credit and limits will be significantly lower. (Editor’s note: Does this mean they will only issue cards to people that have demonstrated they can handle credit responsibly rather than mass market to anyone who is breathing? DUH)

Goodbye frequent flier programs Reward programs typically cost the banks 1% of the balance of the account. Expect this plans to be scaled back or eliminated all together. The same will apply for the cash back offers.

Increased fees for balance transfers. There is already a flurry of consumers seeking to transfer balances to lower interest cards. Increasing the fee to do this is another way togenerate revenue for the banks. Discover Card and Bank of America are seriously considering to charge up to 3 percent of the balance for this service.

The new law does not kick in until February 2010 so consumers should brace for another round of rate increases on their current cards. In addition, credit limits will most likely be reduced regardless of history. Over the long run, this law will make banks more reponsible in their lending and competitive. However, in the immediate future, many consumers will sit by helplessly and watch their balances grow as interest rates outpace their ability to pay the balnce down.

You have probably approached your bank and asked for a rate reviewthis is usually the first step. The answer will most likely be no. However, if your bank concedes that you are on a very high rate and offers to lower the merchant service fee (msf) percentage you will most likely get locked into a contract with unforgiving break fees.

You have probably approached your bank and asked for a rate reviewthis is usually the first step. The answer will most likely be no. However, if your bank concedes that you are on a very high rate and offers to lower the merchant service fee (msf) percentage you will most likely get locked into a contract with unforgiving break fees.

Like it or not a credit card terminal facility is essential in todays business environment. It is a necessary evil. Best to accept this and make the most out of the situation. How can this be done ? You can find the best package deal for your business by shopping around.

An Eftpos Broker is usually the best way to go. They may or may not be dedicated to one banks merchant services. The point is that the Eftpos Broker will do their absolute best to save you money with your merchant credit card terminal fees. That is their job. The service will usually be free of charge to you the customer, or you may be required to pay a portion of the savings you make. The free of charge service is the preferred option for most business customers.

Rates differ from bank to bank. This is usually because of a combination of factors. Primarily the number of credit card terminals they have in the market versus the number of active credit cards they have issued.

What are typical fees with an Eftpos Merchant Credit Card Terminal ? The typical fees vary from country to country. For Australian conditions they are as follows: An Establishment Fee for your Eftpos Merchant facility will be typical and in the vicinity of $50 to $100. Break Fees range from $110 to $550 whether or not you are in a contract. The Eftpos Broker will make you aware of these.

An Eftpos Broker is usually the best way to go. They may or may not be dedicated to one banks merchant services. The point is that the Eftpos Broker will do their absolute best to save you money with your merchant credit card terminal fees. That is their job. The service will usually be free of charge to you the customer, or you may be required to pay a portion of the savings you make. The free of charge service is the preferred option for most business customers.

Credit Card Terminal rental ranges from $9.50 per month to $50. Mobile credit card terminal starts at $29.50 through to $95.00 per month.. Virtual Credit Card terminals do have establishment fees, and transaction fees. You should not have to pay any terminal rental for obvious reasons. For more information contact your Eftpos Broker.

Mobile EFTPOS allows many benefits and lets a business receive payment when a customer doesnt have cash on hand but has a debit or credit card. However, for businesses on the move, an EFTPOS solution sitting on a counter back at the office isnt much good.

Mobile EFTPOS allows many benefits and lets a business receive payment when a customer doesnt have cash on hand but has a debit or credit card. However, for businesses on the move, an EFTPOS solution sitting on a counter back at the office isnt much good.

For these businesses a mobile EFTPOS is vital.There are a number of reasons why mobile EFTPOS is good news for mobile businesses and one of these is the immediacy of payment.

Alot of alternative phone options are not able to process Debit Card transactions either. This is usually around 40% – 50% of the total Eftpos transactions, and usually a much cheaper transaction option.

The differences between mobile devices themselves is whether the terminal does the communicating or if a mobile phone or PDA is used instead. The terminal is a far better option in the long run and allows the business to accept both credit and debit cards.

Alot of alternative phone options are not able to process Debit Card transactions either. This is usually around 40% – 50% of the total Eftpos transactions, and usually a much cheaper transaction option.

The benefits to the business start with improved cash flow and reduced bad debts. As well these systems also offer a secure means of getting payment and the business doesnt have to handle cash. The differences between mobile devices themselves is whether the terminal does the communicating or if a mobile phone or PDA is used instead. The terminal is a far better option in the long run and allows the business to accept both credit and debit cards.

What is the FDIC

The world financial crisis has dried up the credit market, caused money giants like Lehman Brothers to crash, and forced gigantic banks to combine, making many folks wonder where their money will be safe. Through the FDIC or the Federal Deposit Insurance Corporation the bank is still the best place to keep your money regardless of what occurs to your bank. In October 2008 the deposit insurance was briefly raised to $250,000 per depositor thru December 31, 2009, so if your area bank falls down you can still be guaranteed your deposit up to $250,000.

Understanding FDIC

Established in 1933, the FDIC was made to increase public confidence in the U.S. bank system. This worked by providing all depositors in FDIC-insured banks coverage up to $5,000 (in the 30’s), and 2nd by taking over for a failed bank to assemble and sell the bank’s assets to settle the bank’s debt including claims for deposits above the insured amount. The FDIC receives its funding from premiums paid by insured banks as well as money from its investments in US Treasury securities ; no government money is used.

When are you safe?

To take advantage of the full protection the FDIC offers, there are a couple of things to bear in mind. First FDIC coverage does not extend to all finance establishments so ask your bank if they are covered or check the FDIC site to see whether you bank is listed. Second coverage is for individual deposit accounts only up to $250,000 so no stocks, bonds, safety deposit boxes, hedge funds, etc.

$250,000 – Beyond?

For coverage beyond the $250,000 there are a few specific instances such as establishing deposits under different ownership categories where excess coverage is allowed. Revocable Trust Accounts, or a deposit account opened by people with the stated intention of the account being turned over to one or more beneficiaries upon the death of the original account holder, can get over $250,000. For example if Mr. Smith has an deposit account worth $500,000, both his son and daughter would get $250,000 each if they were the beneficiaries named on the account.