Smart Borrower Blog

Archive for November, 2009

Payday Lenders Converting to Small Loan Stores

Tennessee-based payday lending company, Check Into Cash, is converting some stores over to small loan businesses. According to South Carolina’s homepage, The State, twelve of the South Carolina Check Into Cash stores are changing over by the first of 2010. The other remaining CIC stores will be closing indefinitely. South Carolina’s 12.1% unemployment rate is also having a great impact on the payday loan business, considering the concept of a payday loan doesn’t work when many people don’t have jobs. The General Assembly has recently placed new operating restrictions and regulations on payday lenders. It’s too early to say if... more »

Fed to Give Movie-Goers Credit Card Advice

If you plan to see a movie in the next week, you might just get some government-funded credit card advice for this holiday season. In response to the recent interest rate hikes and fee increases by the major credit card companies, the Federal Reserve is rolling out its education plan to protect consumers against abuse. The 45-second commercials will play from November 27 to December 3 in 12 different theaters around the country, representing the areas covered by the 12 Federal Reserve banks. These include: Boston New York Chicago Houston Boca Raton, FL Long Beach, CA Bensalem, PA Valley View,... more »

Will FHA Mortgages be the Next Mortgage Crisis?

Federal Housing Administration-backed mortgages are now the next market crisis waiting to happen, according to home builder Robert Toll, CEO of Toll Brothers Inc, the nation’s largest luxury builder. “Yesterday’s subprime is today’s FHA,” Toll said today at a New York builders conference. “It’s a definite train wreck and the flag will go up in the next couple of months: Bail us out. Give us more money.” Toll likely based his comments on reports last week from the FHA that its reserves ratio has fallen to 0.53 percent, well below the federally-mandated two percent designed to protect against fund default.... more »

Small Businesses Still Struggle to Obtain Loans

Even with government stimulus programs, small businesses are constantly struggling just to stay afloat. Small businesses help to create as much as 80% of new jobs, so this is dismal news for our struggling economy and especially our rising unemployment rate. Many small businesses have faced reductions in bank credit and it has been increasingly difficult for them to get a small business loan. Overall, they are struggling at record high rates. Could help be on the way? This week the Obama administration has a meeting planned that could brighten the future for the small business owner. Timothy Geither,... more »

Tips for Personal Loans in Today’s Economy

In today’s struggling economy obtaining a personal loan can be a challenge, but not entirely impossible. More important than ever before you should do your research before filing any loan application. Dotting your I’s and crossing your T’s can greatly increase your chances of obtaining the loan you desire. Review Your Credit Report Thoroughly Before applying for your loan you should first review your credit report. If you have less than stellar credit, this will be particularly important. Look closely for any discrepancies. If there are any mistakes get them corrected before seeking your loan. If there are hits... more »

Credit Unions May Offer Best Credit Cards Deals

According to a recent study released by the Pew Charitable Trust, you may be much better off applying for a credit card from your local credit union than with any of the nation’s top banks. “The observed credit unions presented a distinct alternative to credit card pricing and other practices of the observed banks,” the study entitled “STILL WAITING: ‘Unfair or Deceptive’ Credit Card Practices Continue as Americans Wait for New Reforms to Take Effect” said. “In July 2009, median advertised interest rates on cards from the 12 largest credit unions were between 9.90 and 13.75 percent annually, depending on... more »

Is That All She Wrote for Private Student Loan Lenders?

The Student Aid and Fiscal Responsibility Act, currently moving through Congress, would stop the FFELP (Federal Family Education Loan Program). The FFELP has allowed third party (private) lenders to issue student loans which are backed by the government. In 1992, the Federal Direct Student Loan Program began, which allowed parents and students to borrow directly from the U.S. Department of Education without a FFELP lender or involvement from a bank. If the Student Aid and Fiscal Responsibility Act is passed by Senate vote, critics of the act argue that it will put most private student loan lenders out of business... more »