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Homeowner Personal Loan The Advantages Of Ownership
When you are looking for finance to fulfill your personal needs, the main problem is to get the amount of money you need. However, you probably want to pay the least possible amount of interests for that money too and you will also want to have low monthly installments and as much time as possible to repay the loan. Being a home owner will guarantee that you get the best terms on personal loans. Lets analyze how:
Ownership
Even though we are talking about home ownership, it does not hurt to give a wider idea of what ownership implies as a legal and economic term. Ownership refers to possession of an asset, any asset. Legally speaking, there is a distinction between movable property and immovable property. The first category constitutes personal assets and the second one, real assets (better known as real estate). Furthermore, there is another distinction between non-registered movable property (i.e. computers, house appliances) and registered movable property (i.e. Cars, Vans, Yachts).
Some personal assets (especially registered personal property) and real assets can be used as collateral to secure a loan. This entitles the lender to take legal action directly against the property and recover his money from the selling of the asset in a short term legal process. This greatly reduces the risk of lending money and thus, the interest rate charged for these loans is considerably lower.
Benefits Of Home Ownership
However, owning any asset (especially real estate) contributes to getting lower interest rates not only when applying for secured personal loans, but when applying for unsecured personal loans too. Ownership is generally a guarantee for the lender because it implies solvency (the ability to meet financial obligations on time.) in many ways. For starters, maintaining a property is not cheap, and thus, it shows the lender that you have been able to administrate your finances properly. But it also implies that in case you cannot afford the monthly payments and the lender has to resort to legal means to recover his money, there are more probabilities he will be able to get enough money from your assets to recover the amount owed and any legal fees he might incur in.
Lower rates are not the only benefit you can get from home ownership. The amount of money you can request is also an important factor. Home owners, due to how the property contributes to his solvency, can get higher loan amounts either with secured personal loans or unsecured personal loans. It really depends on how many assets you have and the value of each one whether you can get a higher loan amount with a secured loan or an unsecured loan. This is due to the fact that secured loans can offer as much money as the propertys value while the amount of money you can request on an unsecured loan is related to the whole value of all the debtors assets.
Furthermore, homeowners will also get longer repayment programs. Since the length of the loan is linked directly with the risk involved for the lender in the financial transaction and given that homeowners imply a considerable lower risk, homeowner personal loans have extended repayment plans with more flexible terms. And as a consequence of lower rates and longer repayment programs, homeowners also get lower monthly payments that are easily afforded.
Finding Good 0 APR Credit Card Offers
While most of us wish that we could find credit cards that only had 0% APR, they cant really exist because the credit card companies wouldnt make any money. However, if youre looking to save money with a lower interest rate, there are ways to find great deals on APR percentages.
Balance transfers
The trick with getting a 0% APR is to find a credit card that allows you to transfer other balances under that initial lower APR interest rate. While there is usually a time limit to these kinds of offers, they can help save you a lot of money in the long run. And if you think about it, these offers are much like getting the 0% APR on that other card, its just a matter of where you send the bill to.
Talking with the cards that you have
You might not know this, but if youre a good customer for your current credit card company, you may be able to ask for a limited 0% APR period as well. If youve been paying your bills on time and keeping a fairly low balance, many companies are willing to reduce or negate the interest rate for a while. They want your business, so theyre usually willing to give you a deal to keep you using their card.
Going online
There are many credit card company comparison sites that will allow you to see which card companies are offering 0% APR for the first year of use or for limited time periods. And while this isnt a permanent solution, you can see which cards are willing to take you on as a customer for a lower interest rate.
A word of caution
While its safe to say that youre aware of the fact that 0% APR periods can be short, you need to be certain that you understand what the card company defines as a period. In most cases, the first purchase starts the cycle of interest free credit balances, as opposed to the first billing cycle end.
Look to see what the interest rate will be when the trial period is over. If the interest jumps dramatically, you might be in for an unpleasant surprise if youre still carrying a balance. And the truth is that many of these credit card companies will increase their interest rates from 0% to 15% and even 24%.
Also realize that there might be restrictions in getting the 0% APR. If you make certain purchases or dont make a payment within a certain time, you might revoke your right to that lowered interest rate. Read the fine print.