No discussion on educational reform will be complete without looking into the educational philosophy espoused by John Dewey. The progressive education movement was led by John Dewey. Progressive education sought to revolutionize the way students learn from a traditional test-driven, textbook and rote learning-oriented system to an experiential and project-based mode of learning.His educational philosophy was well laid out in his book Experience and Education. He laid emphasis on a hands-on approach rooted in experience for nurturing and stimulating the curiosity of students. However, he was against a rigid or dogmatic adherence to one particular approach and felt an open approach incorporating the best practices of different approaches towards learning was the way forward. John Dewey voiced his concern that the extremes of progressive and child-centred education which focused on complete freedom could result in chaos and felt a flexible structured approach was important in experiential learning.John Dewey put forward a theory of experience to be incorporated into the educational approach that he envisioned. In his theory of experience, John Dewey defined two aspects necessary for imparting education in an experiential mode, namely continuity and interaction.Continuity takes into the account the importance of each prior experience affecting each new experience of a student or individual and shaping their perspectives and insights. John Dewey thus highlighted the importance of experiential learning building on a learner’s prior experience and knowledge and the importance of continuity in a learning experience.Interaction refers to the level of involvement of the learner to a particular learning experience which directly correlates with the prior experience of the learner and the learner’s own inner motivation, perceptions and goals.John Dewey’s philosophy on education also laid great emphasis on the psychological and social aspects of a student’s life that had a great impact on his/her experience. Traditional approaches on the other hand neglected this important factor that affected each experience of a student. He felt that the teacher needs to be a facilitator and guide who empathizes with the learner instead of an authoritarian figure who invokes fear in the minds of the learner. He felt that each new experience should arouse the curiosity of the student to develop new interests and broader perspectives and should enable the student to relate to his/her immediate surroundings.John Dewey’s philosophy of education thus envisioned a dream of education leading to an enhancement of social consciousness for the betterment of society.
More than 250 years ago, Benjamin Franklin famously said, “An ounce of prevention is worth a pound of cure”. He was advising Philadelphia homeowners to insure their homes against fire to avoid catastrophic losses. Franklin’s advice is just as applicable today to the legal issues of your business.In this article, we explain a new legal service, Canadian Business Legal Checkup, an audit of legal matters affecting your business. Business Legal Checkup is a diagnostic tool most small and medium size businesses could use to verify if legal aspects of their operation comply with the law and to minimize risk, litigation and expense. When the Business Legal Checkup is completed, the business owner receives a lawyer’s report red-flagging matters which need correction, improvement or further legal advice.A closer look at the Business Legal CheckupYour business is built on a foundation of laws and legal procedures. As a prudent business owner, you have probably considered the following legal matters:o You had to incorporate your business. The corporation has been properly set up. All shares are properly issued. Directors and officers have been appointed. The corporate minutes and register are up-to-date.
o You and other directors of the corporation know exactly what your duties and liabilities are. All directors are protected from liability by sufficient insurance coverage.
o You have a shareholders’ agreement so that all shareholders know their roles. All partners are treated fairly. There is an orderly method for valuation and termination of the corporation. You understand the minority shareholders rights requirements of the Business Corporations Act.
o You filed a business registration and have a system to renew it before expiry and you have registered any business names that you are using.
o You filed trademark, patent and copyright applications to protect the intellectual property of your business.
o Your URL (web address) is trademarked. You have audited your website to check for breaches of privacy law, defamation and technology law issues. Your online sales portal is set up to avoid legal problems with privacy law, identity theft and contract issues.
o Your licencing and registrations are up-to-date. If your salespeople have to be registered or licenced, you have a system to ensure that their registrations are up-to-date and that their regulatory requirements are being monitored.
o You have a long term lease for your plant or office. You had your lease vetted by a lawyer. You know what it says, including the extra rent the landlord can demand. You know the deadline for your right to renew.
o You use several legal standard forms and contracts in your business. These have all been vetted by a lawyer to comply with applicable laws including the PPSA, the Interest Act, the Consumer Protection Act, the Sale of Goods Act, the Mercantile Law Amendment Act and the Bills of Exchange Act and contract law.
o If you extend credit, you know that your service charges don’t exceed the “criminal rate of interest”.
o You know prohibitions against misleading advertising and unfair competition in the Competition Act.
o You understand the privacy legislation and you have a system to ensure that you comply each time you collect, use, or disclose personal information.
o Your employees have signed agreements which spell out the length of notice they are entitled to receive if you terminate their employment. You know who is entitled to how much and what to do if you decide to terminate an employee, whatever the reason. You understand your obligations under the Employment Standards Act.
o Your employees have all signed non-competition covenants and non-solicitation agreements to prevent them from taking away your best clients, business procedures, best employees and trade secrets if they leave to set up shop on their own.
o You have a procedure to prevent violation of the Human Rights Code and you know the protected grounds of discrimination. You also understand all of the elements of sexual harassment and you know how to deal with it.
o You know your company’s rights and obligations under the Workplace Safety Insurance Act and the Occupational Health and Safety Act.
o You have liability and multi-peril insurance and you know what it covers.
o Your manufacturing and distribution processes are set up to avoid potentially devastating product liability and class action lawsuits. You have minimized risks.
o You keep up-to-date with changes in the law which affect the corporate, contractual, insurance and employment law issues in your industry.
o You have complied with the filing requirements for income taxes, sales taxes and GST. You have had your business and municipal tax assessment vetted.
o You know what precautions to take to help prevent litigation.
o If you are about to get involved in litigation, you have an action plan to maximize your chances of success and to keep the cost in check. When hiring a lawyer, you know what you need and what to expect.Stop the presses – before we continue – do we hear you saying there are many items on this list that you haven’t looked after, that you haven’t thought of or which could be updated?We’re not surprised. In our experience, small and medium-sized business owners don’t get around to dealing with many important legal issues involved in organizing their business relationships with partners, shareholders, customers, employees and government and in preventing or managing the risk of expensive litigation. Often, agreements are not fully thought through.Small business owners tend to do only what they absolutely have to do to comply with the law and are reluctant to spend money for top drawer legal services when an inexpensive shortcut appears to do the trick. Your focus is getting your business up and running, getting your product to market, making sales and keeping costs down. You could be lucky and run your business for years without anything going wrong.Fair enough, but if you disregard preventive legal measures like the ones mentioned, your business is like a driver without a seatbelt in a car that has never been serviced —in other words, a catastrophic accident waiting to happen.Here are two examples of business legal nightmares that could have been easily avoided with a program of preventive law such as the Business Legal Checkup. These are actual cases, decided in Ontario courts:o A Toronto RV dealer sold a motor home to a customer. After using it for a couple of weeks, the customer complained that the salesperson had misled him about a “rental program” and brought the motor home back and refused to make any payments. The dealer sold the motor home as a used vehicle and suffered a $25,000 loss for which it sued the customer.The Ontario Court of Appeal decided that customer was entitled to return the RV and cancel the contract because the salesman’s Motor Vehicle Dealers Act registration expired and was not renewed. This made the contract illegal. The RV dealer didn’t have a system to check if all their salespersons’ registrations were current. The dealer not only lost $25,000 but also had to pay about $30,000 to their own lawyer and almost that much in legal costs to the customer’s lawyer. A Business Legal Checkup could have saved this business most of the $100,000 and a lot of aggravation.o A southwestern Ontario company was a wholesale distributor of car alarm systems, which started as a basement operation and developed into a successful business. The owner used contract forms he found on the internet. Why pay a lawyer when forms were right there for the taking? His standard form contracts had statements that he didn’t fully understand but if they were on the internet, they must be OK. He didn’t have a lawyer check them. The standard form agreements didn’t create a problem for several years.The distributor extended credit to CAG, a company owned by a Mr. Don for more than $90,000 worth of car alarms. He wasn’t worried about payment because Mr. Don signed the standard form contract — the one he found on the internet for free — which stated that Mr. Don was personally liable for everything CAG ordered. When CAG went out of business, the distributor sued Mr. Don. The Ontario Court of Appeal dismissed the claim against Mr. Don because the personal liability clause in the standard form agreement was unclear and was capable of two meanings. The distributor didn’t recover his $90,000 and had to pay legal fees to his own lawyer and costs to Mr. Don’s lawyer. A Business Legal Checkup could have saved him almost $150,000 and possible financial ruin.These examples are the tip of the iceberg. As you read this article, you can probably think of other examples that affected your business. In each case, it’s more than the legal expenses that are at stake. The business owner has to devote time and sleepless nights to the legal dispute and loses time from running the business.How does a Business Legal Checkup work?o You will be asked to complete some forms to provide confidential information about your business.
o You will have a discussion with the lawyer to assess the scope of the Business Legal Checkup. For example, it doesn’t cover tax law, environmental law or succession planning unless special arrangements are made.
o A basic Business Legal Checkup will provide a diagnostic review of the legal status of the following issues in your business: (1) Set up and governance of your corporation; (2) Relationships among the owners of the business; (3) Relationships with employees; (4) the contracts and forms used in the business; (5) Competition Law and Illegal Advertising; (6) Intellectual Property, Trade Secrets, Confidentiality and Privacy; (7) Safety and risk management; (8) Risk analysis and efficient management of existing litigation; (9) Internet Issues; (10) Regulatory licencing issues.
o A Business Legal Checkup can also be customized to meet the business owner’s specific requirements. This may require consultation with outside legal experts.
o In preparation for the Business Legal Checkup, you will be asked to provide documents and information concerning each category of the analysis.
o After the documents have been reviewed by a lawyer, consultation may be required with other lawyers. Further clarifications may be required from you and other senior officers of your business.
o A report will be prepared explaining the status of each topic and red-flagging issues which require attention and indicating their level of urgency.
o When the Business Legal Checkup report is ready, the business owner may prefer to have the Business Legal Checkup lawyer or legal team present the findings orally. An oral presentation followed by a Q&A session can assist the business owner to plan the next steps efficiently.
o The Business Legal Checkup legal team will facilitate referrals to lawyers who are specialized in resolving the legal problems identified by the Business Legal Checkup.How much will a Business Legal Checkup cost?For a small startup business with less than five employees, operating out of a single location and having only one business entity, a Business Legal Checkup can usually be completed for about $5,000 to $7,500 if there are no unusual problems.Who needs a Business Legal Checkup?Every business needs to know whether its legal processes are efficiently compliant with the law. Public corporations are obliged to provide certain levels of legal compliance to government and regulatory bodies. A small private corporation does not have the same levels of mandatory compliance but failure to do so voluntarily is like the proverbial ostrich with its head in the sand.A Business Legal Checkup is also useful for a business owner who is considering the sale of his business or for a prospective purchaser of a business. Minority shareholders could insist on a Business Legal Checkup annually or bi-annually to ensure that management and the majority shareholders are meeting their obligations to the corporation.A Business Legal Checkup may also be a credibility tool for a business seeking financing or government contracts. Unlike a financial audit, ISO9001 and ISO 14400 compliance standards, the Business Legal Checkup is a confidential report to management only and expressly excludes reliance by outside parties. If an outside party, such as a lender or investor, will receive a copy of the report, the Business Legal Checkup legal team must be informed in advance so that concerns relevant to these outside parties can be taken into account.Where can my business get a Business Legal Checkup?So far as we know, the Business Legal Checkup, as a fixed-price legal diagnostic tool for private small and medium-sized businesses is a new legal service in Canada. Interested business owners are invited to contact us for information.Benjamin Franklin’s famous advice has evolved. A Business Legal Checkup can be much weightier than an “ounce of prevention”.
Mother’s Day is May 9th this year; a date that is approaching rapidly. Mother’s seem to be the glue that holds a family together. They fix scraped knees and mend broken hearts. They look out for the kids, the pets, the house, the significant other and never seem to get a break. Family travel vacations are hard to organize because everyone seems so busy, but Mother’s Day might be the perfect time for that family vacation travel getaway.
Mother’s Day is on a Sunday, so taking a weekend away from the norm is a perfect idea. These family vacation deals for Mother’s Day are affordable and fun for everyone in the family, or made specifically for mom in mind. No matter what her preferences are, these activities and getaways are perfect for travel and leisure family vacations.
Spring Day Trips
- Day long travel and leisure family vacations give families time away from their everyday activities while not going too far from home. You will be shocked to find out beautiful park destinations you never knew about close to your home, or outlet malls for the whole family.
Destination and Resort Spa Getaways
- Resorts are a mother’s dream and don’t have to be too expensive. Spas allow for a time to relax and rejuvenate away from the stress of family and work.
Mother’s Day weekend Festivals
- These weekend long festivals are fun for the entire family. Festivals can be a day trip or a special family weekend outing. There are ones in Hilton Head, South Carolina with visual and performing arts events, festivals in North Carolina with bbq cook-offs and international festivals in Kentucky where entertainment, midway games, carnival rides, a car show, contests and vendors give families of all sizes fun activities.
Mountain family travel vacations
- Both the west and east coast have amazing mountain ranges that are peaceful and blooming with life in the spring. The earliest bloom of mountain flowers starts at the lower elevation points and creeps its way up the eastern mountain ranges, making them a breathtaking view around Mother’s Day.
Cooking Classes/Culinary family vacation travel
- Cooking classes are not what they used to be. With the influx of culinary travel, classes and demonstrations have spawned resorts, food festivals, restaurants and shops specifically catering to the culinary arts. Moms can enjoy a fun, upbeat half hour cooking class, or spend the entire weekend at a cooking resort where they have the opportunity to work in state-of-the-art kitchens, work with famous chefs and learn about foods made by different cultures.
- The southeast United States is full of family vacation travel destinations with historical significance. Beautiful historic mansions like Mt. Vernon in Virginia, home to George Washington, and the Historic Natchez in Mississippi, where for five weeks in March private antebellum mansions open their doors to tourists are gorgeous options to visit. There are also battlefields, historic districts and museums that make for great weekend visits. Depending on the distance, these historic family travel vacations can be day trips or an outing for the weekend!
When the Christmas holidays roll around many people need to travel from one location to another in order to be with family and friends or to enjoy a unique holiday in different surroundings. Whatever your reason for traveling during the holiday is, it can often prove to be very stressful. However, there are a few things that you can do make your traveling more enjoyable.
Tips for traveling during the Christmas holidays:
· Mail your gifts to the location you plan to visit and you won’t have the hassle of trying to carry them with you in the car or on the plane. If you do plan to fly with gifts, leave them unwrapped until you reach your destination. Otherwise, you may be required to un-wrap the gifts for inspection purposes.
· Leave extra space in your suitcases for the things that you’ll be receiving and need to bring back home with you. You always end up bringing home more than you took so prepare for this in advance and it will make the trip home less stressful.
· Keep an eye on the weather and continue to check the forecast for changes. This time of year can be unpredictable and no one wants to spend their Christmas holidays stuck at an airport or stranded along a snowy highway.
· If you know you’ll be driving in an area that has the potential for bad weather, make sure your vehicle is prepared. Your tires should be in good shape, keep it full of gas and make sure you have a well stocked survival kit and extra blankets with you.
· Get your reservations early to avoid having to settle for something you don’t really want because your favorite hotel was already booked. Call and confirm your reservations before leaving home to make sure everything is going as planned. Buying plan tickets in advance can also be less expensive.
· If you’re flexible with your travel plans you can save a lot of headaches by traveling on the slowest days of the week or on Christmas day. By choosing the slowest time of the season you’ll have more options whether you’re flying or driving to your destination. The airports and hotels will also be less crowded.
· If flying, travel as light as possible. This will help make getting through security easier and faster. If driving, fill your car up with gas and pack up everything the night before you plan to leave.
· Pack some snacks and activities to keep you and the kids busy and comfortable if you do run into delays.
· Expect delays and allow for them in advance. This will help you to stay relaxed and calm when something does happen and it will make your trip more enjoyable.
Christmas and New Years are considered the peak traveling times of the whole year. Millions of people will be flying and driving to different destinations to enjoy the holidays with the ones they love. You can make this stressful traveling time more relaxing and enjoyable when you plan ahead and use the tips above.
The world of marketing is a fast changing landscape. The digital age has provided the biggest changes in marketing the industry has ever seen. Among the changes that have been made is the ability to use bulk SMS to reach those you are marketing to. This has created some massive changes in the way that businesses and marketing agencies approach marketing in general. It has made it possible for companies to save money while getting the most effective form of marketing available.
The reason why these changes have been so effective is because they have caused marketing agencies to be more agile in the way that they approach marketing strategies. It also means that the messages that are being used in marketing campaigns need to be more concise. Additionally, the marketing strategy is more effective when using this kind of marketing technique. It is no wonder so many companies have been enjoying the results that this form of marketing can provide.
Creating More Agility in Marketing
In order to get the results that bulk SMS can offer advertising campaigns need to be more agile. This means that they need to be able to change quickly and easily to meet the changing needs of the marketing program. As the different messages are sent out, it is important to evaluate the results that they are receiving and make sure that the messages are being crafted in such a way as to keep providing the best possible message in marketing. By seeing instant results, it allows the instant conformity to a strategy that actually gets results.
More Concise Messages in Marketing
The message used in bulk SMS cannot be a lengthy marketing message. The text message format is by nature an environment for brevity. Long text messages will be ignored and the recipient will ask to be removed from the list of recipients. This is why it is important to make sure that the message used in marketing is considered as completely as possible. It is one of the ways that you will be able to make sure that you are able to maintain the attention of your audience as well as the ability to market to the people you want to reach.
Increasing Effectiveness of Marketing Strategies
As a result of all the information provided from bulk SMS marketing strategies, it is possible to be more effective in the overall marketing strategy. The effectiveness of the marketing strategy is determined by your ability to pay attention to the kind of results you are getting on a regular basis. Constant evaluation and changes to the marketing strategy allows you to enjoy a more effective marketing strategy. This way, you will be assured the results you are looking for in your marketing campaign.
So you are thinking of getting some extra money to make some urgent home repairs, the porch door needs replacing, along with a new hot water system. Unfortunately you do not have the money in the bank, but neither do you have a secure porch door or any constant hot water.
Have you considered personal loans? A lot of people take out personal loans for this type of repair. Car repairs and even holidays are used by people with their newly acquired finances. Most people have heard that a poor credit score is not a good thing (However even those that have a poor financial history can still get loans). But how do you make a good rating?
One of thing major pieces of advice from experts, before you apply for finance it is best to get a credit report completed from a reputable source. This will give you an idea of the chance of getting your application approved. In the United States of America there are three levels of credit rating, basically the higher it is the better it is.
An excellent rating is above 760, a good rating would be between 700 and 759 and a poor rating would be between 640 to 699. if you are at the top end, 760 and above then there is no point in making your rating any better. However with other ratings it is worth trying to improve as it will help your chances of succeeding in the application.
There does seem to be a bit of a chicken and egg situation sometimes, you need finance but have a poor score,but to improve you need a lender to give you a chance. Well, luckily there are things that you and your family if you have one, can do to improve your rating.
Having a poor rating does not mean you have to be stuck with it, starting to pay the bills on time instead of late or not at all will start to get you on the right path. Some lenders will still give applicants loans even with a low score, but the total given will be lower than usually and the percentage rate will be considerably higher. So you will pay more over the period of the finance.
Families can help too. If a member of your family has a good rating then some credit card companies can add you to that family members credit card as an authorized user, this will help with any poor credit score. Also having a family member with a good rating co-sign the loan could help you get what you need.
Finding the correct lender for your score is a good way to make sure that you are getting what you deserve, if you have a high score you deserve some of the best deals on the market. Instead of going to your bank or card company you can go online and search for a matching company. Companies like this are a good place go to make sure you achieve the best deal.
What are a matching company and what do they do? You enter your details on their online program and your information will be fed to several of their approved lenders, in turn the lenders will then return to the matching company with a list of loans that they are able to offer.
Once the offers come back it is then up to the applicant to choose one and complete all the necessary paperwork. A check will then be received within a matter of days and your new boiler and door fitted soon after.
Everyone is busy. Busy in shopping online and in the malls. Popular online portals are breaking and making new sale records! All thanks to the convenience and the availability of easy payment options and funds!
Here are few of the factors that are making online businesses a success
Credit Cards: A credit card is plastic money. It is one of the easiest form in which a person gets a personal loan.
All online portals as well as retailers in malls accept credit cards issued by various banks.
Online payment becomes very simple and safe, thanks to the one time passwords generated for such transactions.
A PIN is sufficient for shopping using a credit card at any retail store.
Personal loans for shopping: When we apply for a personal loan, we don’t have to provide the financier with the details of what we want the loan for.
Thus these days’ personal loans are being used to finance shopping.
They can also be used as wedding loans, vacation loans and educational loans.
Payment Processing: As far as payment processing is concerned, the following factors matter to both the consumer and the online retailer.
Uncomplicated manoeuvring on website: It is important for the payment process to be step-by-step and easy to understand. Most websites work on this section very carefully and thus the online shopping experience is satisfactory.
Processing Costs: Processing costs matter to the retailers. More the processing fees they have to pay to providers of payment gateways like Visa, the lesser are their margins. So to have an effective business the processing costs need to be low.
Number of payment options: Multiple payment options should be available for the customer to make payment. This makes the shopping a convenient proposition.
Time taken to process transactions: Processing time not only tests your patience but sometimes also the strength of your internet connection!
Cash on Delivery: This is also known as “collection on delivery.” This is a very popular mode of making payments for shopping in the developing world.
It enhances impulse purchases.
A credit card is not an essential possession for the buyer.
The buyer can check the quality of the product and then pay
So this festive season, do not hesitate to shop and to gift! The availability of funds for shopping is not difficult anymore. Also the convenience of online shopping has brought various retailers to our doorstep. So let us shop all the way!
An easy way of shopping is using a credit card. It forms an integral part of most people’s financial planning. When used in the right manner, it helps reduce financial liability and optimizes financial resources.
While the rise of online lending in itself makes it more convenient for people to apply for finance, is this development a good thing for those who are already struggling? There are companies out there who charge expensive annual percentage rates (APRs), leaving many people in more trouble than when they first started.
But it doesn’t have to be this way. Over the last few years, online lending has earned itself a bad reputation. The internet leaves many people vulnerable to fraud, so you should always exercise caution when inputting your financial details. The best way to make sure your information remains safe is to find a secure, reliable lending platform.
There is an unfair irony attached to lending today. Those with bad credit are often led to believe they have no financial options if they have made mistakes in the past, often making their situations seem more desperate than they actually are. This can result in people making bad decisions and can lead to borrowing through unstable sources.
Meanwhile, any lenders that do accept you with bad credit will charge extortionate interest rates because of your history, making it more difficult for you to meet your monthly repayment obligations – thus worsening your situation. This is a trap that many people fall into, and it gives online installment lenders a bad name.
However, this doesn’t need to be the case. If you can find yourself a reliable lending platform, you will be connected to a secure network of trustworthy lenders who can offer sensible solutions to your borrowing needs. Many of these lenders will assess your application, even if your credit file isn’t perfect or your income is lower than average.
Instead of (or in some cases, as well as) running credit checks, these lenders will take other factors into consideration, including your income and employment circumstances, and how long you have lived at your current address. They may even ask for references they can contact who will vouch for your character personally.
Even those who receive benefits as a form of income will be able to apply, giving everyone a fair and carefully considered chance of borrowing money. In these cases, applicants won’t be accepted for higher loans than they can afford to pay back, and interest rates will be low, meaning there is a better chance of managing repayments.
If you have poor credit and need to borrow money, consider a personal installment loan, but make sure the APR is advertised between 5.99% and 35.99%. There should also be a number of options in terms of flexible repayment, offering you the chance to pay the money back anywhere between six months and six years, depending on what you can afford to pay per month.
Small, carefully considered personal loans could actually help you build a financial profile making you eligible for better future borrowing. As long as the lender is responsible, and offers reasonable interest rates, online lending platforms can actually give people with more opportunities than many other lenders in terms of improving their situation.
With this in mind, personal loans can be beneficial to those hoping to improve their credit score, but only if some caution is exercised by both parties, and you only apply to borrow an amount you can afford to pay back.
Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.
No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:
· Student Loans
· Secured credit card (includes a down payment amount)
· Being added to a parent’s or spouses good credit: card, car loan, etc.
Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.
Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.
Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.
PURPOSE OF THE LOAN
Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.
If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.
When it comes to a personal loan, you have to first learn to use it responsibly. Because if you miss a repayment, your credit score will be impacted adversely. And remember, that a credit score is an indicator of how well you manage your personal finances. Also, it plays a defining role when you apply for any kind of loan – secured and unsecured. It is suggested to apply for a loan slightly larger than what is needed so that you will be assured to have enough money to pay all bills necessary and still have some money left over to ensure that your bank account stays current.
A credit score can be defined as a number which reflects the financial situation of a person. If the person is well-off when it comes to financial matters, then he or she is said to have a high credit score. On the other hand, if a person is the exact opposite of this, then they possess a low credit score. There are a lot of factors that are considered by financial institutions for the purpose of evaluating a person’s credit score – usually, the credit scores of people vary from 300 to about 850.
A personal loan is a type of loan that is given by digital lenders, banks and credit unions to aid you in your plans, be it starting a small business, or making a big purchase. Personal loans tend to have an interest rate(s) lower than the credit cards; however, they can also be put to use for combining several credit card debts together into one monthly lower-cost payment.
Now, your credit score is built by keeping in mind various parameters from your credit reports. These reports serve the purpose of trailing your history of utilization of the credit across the duration of seven years. These credit reports are comprised of information, including how much credit you have utilized to date, the type of credit in your possession, the age of one’s credit accounts, whether one has put in for bankruptcy or liens filed against them, actions of debt collections taken against them, one’s total open lines of credit as well as recent inquiries for hard credit.
Like any other type of credit, personal loans are very capable of affecting your credit score. This can be done through the process of applying and withdrawing a personal loan. If you are curious as to how personal loans can end up affecting your credit, then read on to find out more about the context. There are many ways in which your credit can be affected by personal loans and some of them are listed below:
The ratio of your debt-to-income and loan
Debt-to-income ratio is considered to be the measure of your amount of income that you spend on the debt repayments. In the case of lenders, the amount of income that you receive is said to be one of the major factors proving that you are able to repay your loan.
Some of the lenders have come up with their own debt-to-income ratio so that their proprietary credit scores may make use of it in the form of a credit consideration. Do not fall into the kind of mindset that possessing a high amount of a loan would hurt your credit. The most damage it can do is raise the ratio of your debt-to-income so that you won’t be able to apply for loans anymore without it getting rejected or denied.
Paying loans on time will make credit scores soar
The moment your loan is approved, you have to make sure that you settle the payments of each month on time and in full. Delay in repayment may significantly impact the state of your credit score. However, on the other hand, if you make the payments on time every month, then your credit score will soar high, leading to an overall good score. This will not only make your name to the preferred borrower’s list, but it will prove to be beneficial for you in the long run.
Since your payment history is comprised of almost 35% of your credit score, paying loans on time is essential in cases like these so that your credit score can maintain a positive status.
Variety is built into your credit type
There are about five factors that are responsible for determining your credit score. These are composed of the payment history, the length of the credit history, the utilization ratio of the credit, the credit mix and new inquiries of the credit in accordance with FICO®.
The credit mix only accounts for about 35% of your total credit score, whereas when it comes to a personal loan you can have a varying mix of the credit types. This mix of all types of credit is viewed at a high level of approval by the creditors and lenders.
Origination fee charged by loans
Most of the lenders end up charging you an origination fee. This fee cannot be avoided at any cost and is instantly taken off from the amount of the loan payment. The amount of origination fees depends upon the amount of the loan you are about to borrow. Late payments can lead to an overdraft of fees and late expenses. Therefore, make sure that you pay complete repayment for each month before the deadline.
Avoiding penalties when it comes to payments
Some of the credit lenders tend to charge an additional fee if you end up paying your part of the loan earlier than the agreed date. This is because they are looking for moderate amounts of interest on your loan. Now, seeing that you have paid off your part of the loan before time, they will miss out on that interest that they could have possibly made if you had not cleared the debt soon enough before the deadline.