Museum shop – Southeastern Quilt Museum http://southeasternquiltmuseum.com/ Mon, 26 Sep 2022 09:01:17 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://southeasternquiltmuseum.com/wp-content/uploads/2021/10/cropped-icon-32x32.png Museum shop – Southeastern Quilt Museum http://southeasternquiltmuseum.com/ 32 32 Fannie Mae’s plan boosts tenant credit scores https://southeasternquiltmuseum.com/fannie-maes-plan-boosts-tenant-credit-scores/ Mon, 26 Sep 2022 09:01:17 +0000 https://southeasternquiltmuseum.com/fannie-maes-plan-boosts-tenant-credit-scores/ Exclusive: Fannie Mae’s plan boosts tenants’ credit scores

  • Only positive tenant payments will be reported (those falling behind will be unsubscribed) and tenants can choose to opt out at any time.
  • One in ten adults in the United States, or about 26 million people, are “credit invisible,” meaning they have no credit history with one of the three national credit card companies. credit assessment.
  • Renters seven times more likely than homeowners to have no credit score, Urban Institute study finds

When it comes to credit scores, renters are at a distinct disadvantage compared to landlords.

While mortgage payments are reported by lenders to credit bureaus, landlords generally do not report rental payments, which can hamper tenants’ ability to build a credit history.

Fannie Mae plans to subsidize the cost for owners of multifamily properties it finances to help renters build their credit starting Tuesday, the mortgage giant shared exclusively with USA TODAY.

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How to get fast cash loans in Australia? https://southeasternquiltmuseum.com/how-to-get-fast-cash-loans-in-australia/ Wed, 21 Sep 2022 10:00:56 +0000 https://southeasternquiltmuseum.com/how-to-get-fast-cash-loans-in-australia/

Payday loans are designed to get you out of trouble when you’re short on cash. Quick cash is available in the form of “payday loans,” short-term financial solutions typically suited to the time between paychecks. This article takes a look at which sites offer the best short term loan in Australia fast. Let’s dive.

1. Gday Loans

On the Gday Loans platform, people who want to borrow money just have to complete one application to get loans from top lenders. This online service introduces potential borrowers to the best Australian lenders, who can provide them with a loan of their choice at an interest rate of 199.43%.

Online applicants often get feedback on their loan application within three minutes. If you ever need cash fast, don’t consider visiting gdayloans.com.au to apply for a payday loan with reasonable rates and terms.

Advantages

  • Online application and approval can be done quickly
  • Same day payment
  • People can borrow from $300 to $10,000

The inconvenients

  • To get a loan, you have to live in Australia

2. Pronto Paydays – Best for Same Day Loans

Pronto paydays‘ company that offers people in need of fast cash get payday loans quickly and quickly, making it a great loan option during emergencies.

If you’re considering a payday loan, make sure you understand how the loan works. Payday loans are usually small amounts that you have to pay back when you get your next paycheque. You may have to pay additional fees and interest.

Advantages

  • They quickly share essential information
  • Acceleration of audit and compliance procedures
  • Analytics help people understand how things work.
  • No security deposit is required.
  • Loan amount is based on borrowers income

The inconvenients

  • Exaggerated interest rates
  • Less client protection and less transparency

3. Viva Payday Loans

Viva Payday Loans, a reputable online lending platform in Australia, offers lenders the best payday loans up to $5,000 with considerate repayment plans from 16 days to one year. You can still get one of their great loan offers even if you get help from Centrelink or have a low credit score.

For loans under $2,000, Viva Payday Loans have a 20% setup fee. Meanwhile, loans over $2,000 have a setup fee of $400, which means the APR will be between 20% and 199.43%. Viva Payday Loans also charges a 4% fee each month.

Their application process is simple, and after accepting your application, you will need to sign the agreement form so that the money can be sent to your account immediately.

Advantages

  • You don’t need collateral to get their loans
  • The application process is simple
  • You can still borrow even if your credit score is low

The inconvenients

  • They come with high interest rates

4. Fair Go Finance small loan

Fair Go is another good online lending service that has been around for a while and has gained the trust of many Australians. It connects people who want to borrow money with lenders who can give them loans ranging from $300 to $2,000 over 24 months. Their repayment plan is based on your ability to pay, and there are no penalties for paying before the agreed time.

Fair Go doesn’t discriminate against its customers, so you’ll always get a loan that’s right for you even if you have bad credit. But the loans will cost you dearly to repay, so you need to think carefully before taking out one.

Also, they charge a 20% setup fee that you have to pay, mostly for loans from $18 to $400, and you have to pay their 4% monthly fee.

Advantages

  • It offers a repayment term of more than two years
  • Loans of up to $2,000 are available
  • They offer unsecured loans

The inconvenients

  • They charge a 4% fee every month
  • They charge an application fee of 20% on the amount of the first loan

5. Equitable financing

This online loan matching service connects borrowers with top Australian lenders who offer loans ranging from $300 to $2,000 with terms ranging from one to 24 months. Unlike many fintech companies, Fair Go Finance allows customers to prepay their loans without fees or penalties.

The best part is that this platform allows people with bad credit to get loans, but they will not be eligible for the 4% setup fee waiver. For loans between $18 and $400, there is a 4% fee each month.

Advantages

  • Loan amounts vary between $300 and $2,000
  • The platform sets the payment schedule based on how often the customer gets paid
  • No collateral needed

The inconvenients

  • High interest rates and fees
  • The loan comes with high interest rates and monthly fees

Conclusion

It is inevitable that at some point in your life, you will run into financial difficulties and need quick help. Quick loans can be helpful, but only if you go through the right steps. The payday loan options mentioned above are the go-to alternatives when you’re short on cash.

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Is Your Credit Card Charging You Any Of These 9 Fees Dave Ramsey Warns You About? https://southeasternquiltmuseum.com/is-your-credit-card-charging-you-any-of-these-9-fees-dave-ramsey-warns-you-about/ Sat, 17 Sep 2022 12:00:25 +0000 https://southeasternquiltmuseum.com/is-your-credit-card-charging-you-any-of-these-9-fees-dave-ramsey-warns-you-about/

Image source: Getty Images

You should check the fine print on your credit card statement to find out.


Key points

  • Credit card charges are very common and can cause your credit card to cost you more.
  • Dave Ramsey warned of nine fees to watch out for, including late fees, cash advance fees and returned payment fees.

Credit cards can make shopping easier since you can charge things instead of carrying cash for your purchases. If you use the cards responsibly by not overcharging and paying them back in full, they can also help you build credit and earn you valuable rewards.

But, cards can also cost you money, especially if you end up incurring additional fees that card issuers sometimes add. Financial expert Dave Ramsey has warned of nine common charges you may incur when you have a card, and it’s worth checking to see if you currently cover any of them.

Nine fees to watch out for

The nine charges Dave Ramsey warns about include:

Check it out: This card has one of the longest 0% interest intro periods.

More: Consolidate your debt with one of these top-rated balance transfer credit cards

  1. Annual fees: Ramsey asked, “Did you know you can be charged just for the ‘privilege’ of having a credit card?” He explained that not all card issuers charge for them, but some do. And he warned that sometimes fees are waived in the first year, but come into effect afterwards.
  2. Late fee: These are charged if you pay your bill late. As Ramsey explains, the CARD Act limits the first over-limit fee to $28 and allows subsequent over-limit fees to go up to $39 if you’re late a second time within six months.
  3. Balance Transfer Fee: You will pay these fees if you transfer a balance to your card. “You will be charged a percentage of the amount you move,” Ramsey explained.
  4. Cash advance fees: If you receive money from your credit card instead of just charging for purchases, a cash advance fee is usually added. Cash advances may also cost you more for another reason. “Unlike other purchases, cash advances don’t have a monthly grace period,” Ramsey explained. “That means they’ll start increasing interest as soon as the money is in your hands, not just when the billing cycle is over. Talk about a punch in the stomach!”
  5. Overlimit Fee: If you go over your card’s credit limit, Ramsey says you may be charged these fees, although not all cards assess them.
  6. Expedited Payment Fee: Ramsey says some card companies charge you if you make an expedited payment because you’re worried your payment won’t arrive on time.
  7. Foreign transaction fees: As Ramsey explained, these fees can be charged both when you’re abroad and when you’re buying something from a seller who doesn’t charge in US dollars.
  8. Returned Payment Fee: If your payment is returned due to insufficient funds or other issues, Ramsey says your card company will typically charge you to return your payment.
  9. Card Replacement Fee: Finally, a lost card may also result in additional charges.

As Ramsey explains, there are so many fees because “credit card companies love people with nothing but pennies.” So, since it’s your money that’s at stake, it’s important to be aware of what you’re being charged and make sure you protect yourself from these additional costs.

How to avoid unnecessary credit card charges

Follow these steps:

  • First make sure that the fees are really unnecessary. In some cases, for example, the annual fee is worth paying if your card comes with generous rewards and benefits that exceed the value of the fee. And the balance transfer fee may be worth paying if the balance transfer saves you more interest than you pay up front.
  • Set up automatic payments to avoid late fees and expedited payment fees.
  • Avoid making cash advances, which can be very expensive and usually unnecessary.
  • To avoid overlimit fees, don’t max out your credit cards.
  • Look for a card that doesn’t charge foreign transaction fees if you go abroad.
  • Keep your card in a safe place so you don’t have to replace it.

Now that you’re aware of these fees, you have the tools you need to make sure you don’t get stuck paying them. There’s no reason for your card to cost you more than you need to, so heed Ramsey’s advice and avoid cards with unnecessary fees.

The best credit card waives interest until 2023

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Best Bad Credit Loans and No Credit Check Loans with Guaranteed Approval in 2022 https://southeasternquiltmuseum.com/best-bad-credit-loans-and-no-credit-check-loans-with-guaranteed-approval-in-2022/ Thu, 15 Sep 2022 20:41:00 +0000 https://southeasternquiltmuseum.com/best-bad-credit-loans-and-no-credit-check-loans-with-guaranteed-approval-in-2022/

Best Loans for Bad Credit: Get No Credit Check Loans with Guaranteed Approval

Unless you can see the future, you cannot predict an emergency. So if a financial emergency arises and you are not well prepared, you will need a reliable solution to help you get through the trouble. At times like these, most people turn to quick loans. But it can be difficult to get an emergency loan if you’re struggling with bad credit.

Fortunately, no credit check loans are available to provide a convenient and safe way for people with bad credit to borrow money quickly on short notice.

Here are the best places where you can borrow no credit check loans with guaranteed approval.

  1. Problematic loans in the United States – Best overall for bad loans
  2. WeLoans – Ideal for small bad loans with guaranteed approval
  3. CocoLoan – Ideal for same day loans without a credit check
  4. iPaydayLoans – Ideal for bad loans with fast approval
  5. American Installment Loans – Ideal for same day installment loans with guaranteed approval
  6. Loans for bad credit in UK – Ideal for bad credit loans with guaranteed approval in the UK
  7. Quick Payday Loans – Ideal for easy and fast bad loans in UK
  8. Easy Payday Loans – Ideal for no credit check loans with guaranteed approval
  9. Unit loan – Ideal for easy and fast bad loans with guaranteed approval
  10. honest loans – Ideal for same day loans without credit check with fast approval

Bad Credit Loans USA – Best for Small Bad Credit Loans with Guaranteed Approval

If your poor credit is preventing you from getting financial help when you need it, you should check Problematic loans in the United States. The platform has an excellent reputation for connecting borrowers with bad credit to lenders who will lend up to $5,000 without a credit check and on the same day.

The company partners with direct lenders who are reliable and trustworthy and who are ready to work with you to find a financial product that meets your needs. If you meet their reasonable requirements, they will offer you online loans regardless of your credit rating. There are dozens of lenders offering different types of loans. payday loans, title loans, installment loans, etc.

Advantages

  • Dozens of reliable and trustworthy direct lenders
  • Quick approval and funding
  • Online and automated application process
  • Bad credit is considered

The inconvenients

  • Lenders can perform soft credit checks.

Get Instant Access to Easy Loans on USA Bad Credit Loans Today! >>>

WeLoans – Best Overall for Bad Loans

WeLoans is arguably the best online platform for bad loans. Although fairly new to the market, it quickly caught on and became a household name in the United States. This allows borrowers with not-so-stellar credit to easily access loans from some of the most reputable lenders in the country.

WeLoans partners with a large number of direct lenders who can provide different loans, including title loans, payday loans, and personal loans for bad credit. The site strives to ensure that borrowers who are looking for urgent loans get their money as quickly as possible to help them with their needs.

To access a loan, all you have to do is complete a simple online form which is then immediately distributed to several lenders. These lenders review the application and get back to you within minutes with offers. Once you have settled on a lender, you will receive your money as quickly as the same day.

Advantages

  • Reliable and reputable lenders
  • Easy to use platform
  • No hidden fees
  • Fast and direct funds transfer

The inconvenients

  • You may need to provide proof of income to qualify

Get bad credit loans available on WeLoans today! >>>

CocoLoan – Best for same day loans with no credit check

CocoLoan is another great platform that connects borrowers with direct lenders that offer different types of loans without credit checks. If you have a financial emergency, this platform can connect you with lenders who will lend you up to 35,000% without a credit check and on the same day.

To get instant access to multiple lenders, just go to the CocoLoan site, complete and submit the simple online form, and you’ll start receiving offers right away. Start by reviewing each offer you receive to find the one that best suits your needs.

Once you have chosen your offer, you can respond to the lender and discuss the terms. You will receive your money quickly once you sign an agreement. Quick, easy and effortless.

Advantages

  • Practical – 100% online services
  • Dozens of reputable and reliable lenders
  • Effortless application, quick approval
  • Bad credit may qualify

The inconvenients

  • Some lenders may require proof of source of income.

Apply for a bad credit loan with instant approval on CocoLoan today! >>

Factors to consider when looking for the best loans for bad credit with guaranteed approval

Eligibility

Before applying for a loan, check your eligibility and their requirements. Even though payday lenders approve of low credit, some require a minimum FICO score of 620. You also need to consider your debt-to-equity ratio, which is your monthly expenses compared to your income. Lenders require borrowers to have a stable income to ensure timely repayments.

Interest charges

When you borrow money, the interest rate is crucial. Compare the minimum rates to see if they are reasonable. Also check your credit score because generally better credit means lower interest rates. bad lenders could offer fixed and non-variable interest rates. These fixed rates can remain constant for the duration of the loan, while variable rates are adjustable.

Terms and conditions

Before signing the contract, it is always advisable to read between the lines. Read carefully and make sure that the terms spelled out on the contract are favorable to your needs and you won’t have any problems with them during the repayment period.

Other expenses

Different lenders have different fees associated with the loans offered. For example, some lenders have initiation fees, processing fees, late payment fees, NSF check penalties, etc. Make sure you understand all the expected fees before signing the contract, so that there are no surprises in the future.

Last word

There aren’t many options available for people with bad credit. But that doesn’t mean you can’t get the help you need when you’re in a financial emergency. We have compiled these platforms to help you see some of the possibilities available that you can use when needed.

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Can undocumented immigrants apply for a credit card? https://southeasternquiltmuseum.com/can-undocumented-immigrants-apply-for-a-credit-card/ Wed, 14 Sep 2022 11:00:31 +0000 https://southeasternquiltmuseum.com/can-undocumented-immigrants-apply-for-a-credit-card/

After arriving in the United States, an undocumented immigrant has to deal with so many things that are foreign to him. Among them: the US financial system, which can be difficult to navigate even for those born in the US.

Getting a credit card can be one item on an undocumented immigrant’s financial to-do list. Undocumented immigrants can apply for a credit card in the United States, but they may have to jump through some hurdles to do so. These could include obtaining a federal tax identification number or obtaining a secured credit card.

“Many people we talk to in the immigrant community struggle to access credit because they haven’t had access to financial education about their rights in the financial system,” says immigration attorney Adina Appelbaum. , Certified Financial Advisor and Co-Founder of Immigrant Finance.

Immigrants tend to rely on expensive alternative financial services, such as check cashing companies, payday lenders and pawnbrokers, at great expense. Meanwhile, the services of traditional banks tend to be much more affordable. An undocumented immigrant’s financial education should focus on high-cost alternative financial services, says Magnus Larsson, co-founder and CEO of Majority (a digital bank for migrants).

Do you need a social security number to get a credit card?

No federal law prohibits an undocumented immigrant from getting a credit card in the United States, Applebaum says.

Based on their business practices, some credit card issuers require an applicant to provide a social security number. However, many credit card issuers accept a individual tax identification number as an alternative to the social security number. The nine-digit ITIN, while similar to the nine-digit SSN, is issued for tax purposes and does not entitle you to work in the United States or receive the benefits of the SSN.

Even with an ITIN, an applicant may not be approved for a credit card if they have no credit history. Not having a credit history is not inherently bad, it only means that you have never used credit-building financial products, such as a credit card or loan, in the United States.

If a Social Security number or ITIN is not an option, some credit card issuers may accept the applicant’s foreign passport or US driver’s license. Yet another alternative is Nova Credit Credit Passportthat an issuer can use to look up an applicant’s foreign credit history.

Credit card issuers that do not require an SSN

Credit card issuers that do not require an SSN include:

  • American Express
  • Bank of America
  • Capital one
  • Hunt
  • Town

How an undocumented immigrant can apply for a credit card

Contrary to popular belief, there are many other ways for an undocumented immigrant with no recorded credit history in the United States to obtain a credit card.

Get a secure credit card

Unlike an unsecured credit card, a secured credit card usually requires a cash deposit which acts as collateral. The guarantee protects the card issuer by guaranteeing repayment of any debt you may accumulate on the card. The credit limit for one of these cards is usually 50% or 100% of the deposit amount.

The purpose of a secured credit card is to help someone establish their credit history and then transition to a traditional unsecured credit card. Most, but not all, secured credit cards report a cardholder’s payment history to the credit bureaus, which slowly helps your credit score go up. If this information is not reported, your credit score will not increase, so be sure to apply for a secure card that regularly reports your payment activity.

Ask someone to be a co-signer

Another way to get a credit card is to find a co-signer. As part of this arrangement, someone else (often a relative) agrees to cover card payments or the entire balance if the primary cardholder is unable to do so. Keep in mind, however, that many major credit card issuers don’t allow co-signers.

Become an authorized user

You can also request to be added as an authorized user on someone else’s credit card. As an authorized user, you get your own card connected to the primary cardholder’s line of credit. This allows you to use the card to spend and enjoy all the benefits of the card.

The account holder is financially responsible for the monthly card payments and the entire card balance, although you can of course make arrangements with the primary card holder to pay them your balance each month. The person whose card account you join is usually a spouse or relative, but a friend is also possible, provided they are trustworthy and financially responsible.

If you or the primary account holder make payments on time each month, it will positively reflect on both of your credit reports, as payment history is regularly reported to the credit bureaus. This could be very advantageous for both parties. Some credit issuers do not report authorized user activity, so make sure your issuer does before you become a user.

Request a joint account

Another option is to apply for a joint credit card account with someone else, such as a spouse or family member, which makes you both the primary cardholder and responsible for covering the balance. The main attraction – maybe with your two incomes, the issuer will feel more confident to extend credit to you.

As with an Authorized User, each joint account holder’s payment activity is generally reported to the credit bureaus. So, if payments are made on time and regularly, you could see your credit history get stronger. However, note that many card issuers no longer offer joint credit accounts.

Get a credit card with no credit history

Some card issuers might be willing to approve an undocumented immigrant for a traditional unsecured credit card even if they have no credit history. It should be noted, however, that cards with no credit history may have drawbacks such as a higher than normal interest rate or a lower than normal credit limit. Still, if you’re careful not to overcharge your card and pay your bills on time each month, these cards work just as well for building up your credit.

Applebaum says that in many other countries credit is less commonly used than in places like the United States. Therefore, an undocumented immigrant may arrive in the United States with no credit history.

“For immigrants who have a credit history in their home country, many are unable to transfer their credit history once they arrive in the United States, so they have to start from scratch,” she says. “In addition, people who have no immigration status or who have uncertain and temporary types of status or who are in between statuses may have difficulty opening credit cards and not knowing if they are eligible to have them in the first place.”

How to Build Credit as an Undocumented Immigrant

“Learning to manage a credit card responsibly and pay it off in full each month over time is one of the best ways to build a solid credit score through payment history and length of credit. credit history,” says Applebaum.

Payment history makes up 35% of your FICO credit score, the most widely used scoring model, while length of credit history makes up 15%. Here are some other tips you could try to build your credit:

  • Open a bank account in the United States Some credit card issuers may require an applicant to have a US bank account.
  • Pay all your bills, such as rent and utility bills, on time each month. Not only will you get used to paying your bills regularly, but you can also include these payments in your credit report through Experian Boost.
  • Maintain a low overall amount of debt. The amount of debt you carry relative to your total credit limit, also known as the credit utilization rate, is 30% of your FICO credit score. “Don’t get caught in the spiral of expensive credit,” advises Larsson.
  • Consider transferring your credit history from your home country to the United States Larsson says credit card issuers “need to go beyond the existing credit score system” to account for disadvantaged consumers like undocumented immigrants.
  • Avoid applying for too many credit cards at once. Those with credit ratings would experience several tough demands, which would lower your rating by a few points. When it comes to people with no credit, you still shouldn’t apply for too many cards at once – lenders will think you have financial problems and pose greater credit risk.
  • Avoid payday loans. The APR for a payday loan can be 400% or more, which is much higher than the typical APR for a credit card or personal loan. Larsson calls payday loans an “evil” form of credit that preys on undocumented immigrants.

The bottom line

Navigating the US financial system as an immigrant, including the process of obtaining a credit card, can be daunting. “The system is not designed for people who weren’t born and raised here financially,” Larsson says.

Fortunately, credit cards are available to undocumented immigrants, although they can be difficult to obtain. And, there “are no shortcuts,” says Larsson.

You don’t necessarily need a social security number to qualify for a credit card. In addition, several credit options are available for undocumented migrants who wish to obtain a credit card. These include a secured credit card, which requires a cash deposit, or a credit card designed for someone with no credit history. By working through the application process and being responsible for credit, an undocumented immigrant can reach over 80% of adults in the United States who have credit cards.

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How to Get Cash Back on a Credit Card – Forbes Advisor https://southeasternquiltmuseum.com/how-to-get-cash-back-on-a-credit-card-forbes-advisor/ Mon, 12 Sep 2022 13:00:57 +0000 https://southeasternquiltmuseum.com/how-to-get-cash-back-on-a-credit-card-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

“Cash Back” generally refers to cash rewards that cardholders can earn when they complete a transaction with a credit card. It should not be confused with cash back which you can withdraw from a bank account when paying using a debit card. This is also distinct from using a credit card to withdraw money from an ATM, which is called a cash advance and is not a recommended practice.

Many credit card issuers offer cash back programs that cardholders can take advantage of to see a small return on every purchase made. While earning rewards certainly shouldn’t be an incentive to overspend on a credit card, it’s worth knowing exactly how specific rewards can be earned and redeemed. Different rewards programs offer different reward rates, and some impose limits on which spend categories earn which rates, so it’s important to understand the terms and conditions of your credit card rewards before deciding which credit card. ask.

How does cashback work?

A cash back card will generally allow cardholders to earn rewards with every purchase made with the card. Some may earn a fixed percentage on every qualifying purchase, while others offer high earn rates on bonus categories such as groceries, gas, or restaurants. Accumulated rewards are redeemable for cash, often in the form of a check, credit statement, or deposit to a bank account.

How does cash back work with credit cards?

Some cash back credit cards reward all qualifying purchases with a flat percentage return, such as 1.5% or 2% back on all spend. Others offer tiered reward categories to reward spending, for example, on groceries and gas at higher rates than other purchases. Yet other cards offer rotating redemption categories every month or every quarter.

Flat Rewards

Certain cards, such as the Wells Fargo Active Cash® Card (tariffs and fees), offer a one-time reward on all qualifying purchases. The Wells Fargo Active Cash earns 2% cash rewards on purchases and remains the plastic standard for block rewards. For those looking for simple, easy-to-follow cashback, a card like this is likely to be one of your best options.

Earn multi-level rewards

Other cards, like the Blue Cash Preferred® card from American Express, offer a more complex structure for earning rewards. Blue Cash Preferred earns 6% cash back in US supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select US streaming subscriptions, 3 % cash back at US gas stations and on public transportation (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other qualifying purchases. Cash Back is received in the form of Reward Dollars which can be redeemed as statement credit. The card has an annual fee of $95 (conditions apply, see rates & fees).

While cards like this generally offer bonus categories that yield higher rewards, the lowest reward category or “catch-all” category for all out-of-bonus category purchases is usually only 1% back and will not match what you might earn. with the best flat rate cashback cards.

Reward Category Rotation

Some cards will split cash back rewards between spend categories that change on a quarterly (or other period) basis. For example, Discover it® Cash Back earns 5% cash back on everyday purchases at different locations each quarter up to a quarterly maximum of $1,500 in spend when activated. Plus, automatically earn unlimited 1% cash back on all other purchases.

Please note that some cards require a category to be activated every quarter or month before you can actually earn rewards on purchases in the category. And, as reward categories change, cards with rotating reward structures may require additional attention given to reward systems in order to realize the full potential of rewards in each bonus period.

Other constructions

The Chase Freedom Flex℠ is an example of a card that combines several approaches. The Freedom Flex earns 5% cash back on up to $1,500 in categories that rotate quarterly (requires activation), 5% on travel purchased through Chase Ultimate Rewards®, 3% on restaurants and pharmacies and 1% on all other purchases.

Still others, like the Citi Custom Cash℠ card, offer categories that change based on your spending habits: the card earns you 5% cash back on purchases in a higher eligible spending category each cycle of billing, up to the first $500 of spend each month and 1% cash back on all other purchases.

Cash Back vs. Cash Advance

Cash back should not be confused with a credit card cash advance. Although the term “cash back” is often applied to a withdrawal of funds from a checking account in the same transaction as a debit card purchase, for example, at a grocery store, this type of “cash back” is all something else with a credit card. Cash advances allow you to borrow money from your credit card’s line of credit by withdrawing cash from an ATM using your credit card.

Cash advances typically involve a separate cash advance APR, often higher than your card’s regular APR, and start earning interest the same day you borrow the money, with no grace period. There will also usually be cash advance fees. Cash advances are not recommended because the cost of borrowing money in a cash advance is usually astronomical compared to other options to get the funds you need.

How can I withdraw money from a credit card?

Making a cash advance with a credit card often incurs fees and a high APR, and does not include a grace period to pay off the balance before interest accrues. We don’t recommend taking a cash advance, but if you must, you can use your credit card at an ATM just like you would a debit card. Be sure to read your card contract carefully to understand all the terms of a cash advance before initiating a transaction.

How do I redeem Cash Back?

While the specifics vary from issuer to issuer, you’ll typically redeem cash back earned with your credit card by applying through an issuer’s app or website. Log in to mobile or online banking and apply to redeem rewards.

With many cards, you’ll be able to choose your preferred redemption method for your cash back: you can receive your rewards as a statement credit, a deposit to an eligible bank account, or a check that the issuer sends you job. Some cash back cards also allow you to redeem cash back by applying it to purchases when checking out online with a partner.

Note that in some cases your cash back will be redeemed automatically and you will not have the option to select your preferred option. For example, with the American Express Blue Business Cash™ card, any cash back you’ve earned is automatically applied as a statement credit each billing cycle.

Below are details of commonly available redemption methods for your cash back.

Check

Some issuers can pay out rewards by sending you a check. Depending on your card agreement, a check may be automatically sent from time to time or you may need to request one. A check can also be an optional redemption method alongside other choices. Checks can be one of the slowest methods of exchange, as you wait for a physical item to arrive in the mail.

Statement credit

Another redemption option offered by many issuers is cash back in the form of statement credit. Certainly one we often see in the credit card agreements we review, statement credit puts your money back directly into your credit card account by subtracting the amount of rewards you redeem from your balance. This type of buyout option usually takes the least amount of time.

Bank transfer or direct deposit

Some issuers, especially banks that also offer checking and savings accounts, will offer wire transfer or direct deposit as a way to complete your rewards redemption. You can redeem rewards as a deposit into a checking, savings, or other type of eligible cash account and many issuers make this a fee-free and fairly simple process.

Gift cards

Gift cards are often listed as a redemption option for cash back, but be aware that redeeming gift cards may offer less value per reward point or dollar than other redemption options. Gift cards can also limit your options when redeeming. As a general rule, we recommend redeeming rewards for the closest thing to cash.

Conclusion

Cash back credit cards earn rewards on qualifying purchases and can be a lucrative advantage to paying with a credit card. Earning and redeeming cash back involves nuanced terms that you need to understand before applying for a cash back credit card.

It should also be noted that “cash back” as it is used to refer to the withdrawal of money from a merchant’s point of sale with a debit card is not the same with a credit card. Using a credit card to withdraw money from your revolving line of credit is called a cash advance and is generally not the most affordable way to borrow money.

To view rates and fees for the Blue Cash Preferred® Card from American Express, please visit this page.

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Credit Karma agrees to pay $3 million | Editorial https://southeasternquiltmuseum.com/credit-karma-agrees-to-pay-3-million-editorial/ Fri, 09 Sep 2022 11:00:00 +0000 https://southeasternquiltmuseum.com/credit-karma-agrees-to-pay-3-million-editorial/

Did you apply for a credit card because Credit Karma said you were pre-approved, but were declined? If so, you may be entitled to compensation. No seriously. The Federal Trade Commission orders the credit monitoring service to pay users $3 million after shoving pre-approved fake credit cards on customers and damaging their credit. Nearly a third of Credit Karma users who applied for the pre-approved credit cards were later denied, following a credit check. According to a complaint filed by the FTC, the marketing efforts wasted consumers’ time and negatively impacted their credit scores. When a business launches a marketing campaign designed to trick customers into doing certain things, like applying for a pre-approved credit card, for example, they’re engaging in what’s called a “dark pattern.” According to a news article, the FTC cracks down on predatory practices that “harm consumers and pollute online commerce.” Credit Karma allegedly violated the Federal Trade Commission Act between February 2018 and April 2021, promoting products that consumers had a 90% chance of being approved or pre-approved for, but were ultimately turned down. This is an accusation that Credit Karma denies. The company said in a statement that it disagrees with the FTC’s claims, but has reached an agreement so it can start helping customers again, according to a report. According to Credit Karma’s statement, the company only gets paid when users are approved for things like credit cards. However, the FTC’s allegations focus on Credit Karma’s historical use of the term “pre-approved” for a small subset of personal loan and credit card offerings that were available on their website prior to April. 2021 and do not challenge the language of the approval ratings. the company has been supplying its customers ever since. As a result, Credit Karma has agreed to pay $3 million to the FTC, which will be sent to customers who have been harmed by Credit Karma’s predatory practices. The company will also stop misleading customers about credit offer approvals, which will be documented by an order requiring Credit Karma to keep records of its marketing efforts, according to the report. It’s unclear how many customers were affected by the “pre-approved” offers that turned out to be false, or how many each customer can expect to receive as part of the settlement. What Credit Karma has done is really no better than the practices that payday loans have engaged in – although the big difference is that the customers actually didn’t pay anyone any money; they just applied for a “promised” credit card or loan that was declined.

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Top 5 Best Payday Loans No Credit Check Guaranteed Same Day Approval 2022 https://southeasternquiltmuseum.com/top-5-best-payday-loans-no-credit-check-guaranteed-same-day-approval-2022/ Sat, 03 Sep 2022 10:44:36 +0000 https://southeasternquiltmuseum.com/top-5-best-payday-loans-no-credit-check-guaranteed-same-day-approval-2022/

For Americans with less than stellar credit ratings, finding a loan online in the midst of a financial setback can seem impossible. You can manage to find a seemingly “easy” solution by researching payday loans without credit checks online. These loans are the unicorn of the financial world; everyone has heard of them, but they don’t really exist.

We investigated several alternatives to payday loans without an online credit check – our findings are below!

Payday Loans No Credit Check Online – Quick Overview

  1. Viva Payday Loans – Best Overall for Payday Loans No Credit Check Online Alternative
  2. Low credit financing – Ideal for small online payday loans No credit check alternative for borrowers with bad credit
  3. Big Buck Loans – Best For Online Payday Loans No Credit Check Instant Approval Alternative For Unemployed
  4. Heart Paydays – Ideal for same day online payday loan alternatives with no credit check
  5. Green dollar loans – Ideal for alternatives to online payday loans Instant approval without credit check

Best Loans No Credit Check Guaranteed Approval 2022

  • Viva Payday Loans – Best Overall for Payday Loans No Credit Check Online Alternative

Viva Payday Loans claims the top spot in our editor’s pick for online payday loans with no credit check alternatives. Their application process for online alternatives for payday loans no credit check is quick and easy. It is also impressive that the platform offers loans ranging from $100 to $5,000 with 3 to 24 months of repayment. Interest, which can be a real pet peeve for borrowers, starts at 5.99% at Viva Payday Loans.

Eligibility Criteria for Payday Loan Alternatives No Online Credit Checks

  • Earn $1000 per month
  • Take an affordability assessment
  • 18 years + to apply

Benefits of Online Payday Loan Alternatives No Credit Check

  • Low FICO borrowers welcome
  • 100% online application
  • Flexible loan amounts

Disadvantages of Online Payday Loan Alternatives No Credit Check

Click here to apply for funds online today >>

  • Low credit financing – Ideal for small online payday loans No credit check alternative for borrowers with bad credit

Low Credit Finance is a provider of legit online payday loans no credit check alternative for bad credit. Although they do not offer payday loans without online credit check due to regulatory compliance, they do have several alternative options up to $5,000 with interest ranging from 5.99% to 35.99% .

Eligibility Criteria For Payday Loans No Credit Check Online Alternatives

  • Income of $1,000 per month
  • Affordability assessment applies
  • Over 18 only

Benefits of Payday Loan Alternatives No Credit Check Online

  • Options for borrowers with bad credit
  • Flexible loan amounts
  • Flexible terms

Disadvantages of Payday Loan Alternatives No Online Credit Checks

Click here to apply for funds online today >>

  • Big Buck Loans – Best For Online Payday Loans No Credit Check Instant Approval Alternative For Unemployed

Big Buck Loans offers same-day online payday loan alternatives with no credit check for the self-employed, self-employed, and those with innovative ways to earn an income. Online Payday Loans No Credit Check Alternatives from $100 to $5,000 are available for those without a formal job.

Eligibility Requirements for Online Payday Loan Alternatives No Credit Check

  • Over 18 only
  • US bank account
  • Earn $250 per week

Benefits of Same Day Online Payday Loan Alternatives No Credit Check

  • Quick Approvals
  • Bad Credit Options
  • A minimum of administrative formalities

Disadvantages of Online Alternatives to Payday Loans No Credit Check

  • Expensive interest up to 35.99%.

Click here to apply for funds online today >>

Heart Paydays – Ideal for same day online payday loan alternatives with no credit check

For those who want quick cash, Heart Paydays stands out. Their online payday loan alternatives with no credit check range from $100 to $5,000 with up to 2 years to pay off. Interest starts at 5.99% and goes up to 35.99%. You’ll receive feedback in about two minutes (yes, that’s that fast!).

Eligibility Requirements For Legit Online Payday Loans No Credit Check Alternative

  • Income of $1,000 per month
  • at least 18 years old
  • US bank account

Benefits of Payday Loan Alternatives No Credit Check Online

  • Payments in 60 minutes
  • Bad borrowers are welcome
  • Flexible terms

Disadvantages of Payday Loan Alternatives No Online Credit Checks

Click here to apply for funds online today >>

  • Green dollar loans – Ideal for alternatives to online payday loans Instant approval without credit check

There’s no pace or nail-biting when applying for small online payday loan alternatives without credit checks with Green Dollar Loans. Application takes minutes and approval (or rejection) takes 2 minutes! Payments are processed within the hour. Loans range up to $5,000 with up to 2 years to pay off.

Eligibility Requirements for Online Payday Loan Alternatives Instant Approval No Credit Check

  • 18+ to apply
  • Earn $1,000 per month
  • Legal resident or citizens of the United States

Benefits of Online Payday Loan Alternatives No Credit Check

  • Payments in 60 minutes
  • Bad Credit Options
  • Simple app

Disadvantages of Online Payday Loan Alternatives No Credit Check

  • Interest can reach 35.99%.

Click here to apply for funds online today >>

What are payday loans without online credit checks and how do they work?

Payday loans without a credit check online are short-term loans given to borrowers without a credit check. Although this is the concept of a payday loan no credit check, they do not exist due to US lending regulations. Alternatives to payday loans without an online credit check follow a simple loan model where the borrower applies online, the loan is repaid plus interest.

How to Apply for Payday Loan Alternatives No Credit Check Online

Follow these simple steps:

Step 1: Choose your loan amount

Select loan amount from $100 to $5,000 and loan term from 3 to 24 months.

Step 2: Complete the application form

Follow the prompts to enter your data on the online form.

Step 3: Get a decision in less than two minutes

You’ll know if a lender can help you within two minutes of submitting your application.

Step 4: Get your loan

The lender will present a loan agreement which will need to be signed before the money can be repaid.

Features and Factors to Consider When Applying for Payday Loan Alternatives No Credit Check Online

Payday Loans No Credit Check Online Alternative Interest

Interest ranges from 5.99% to 35.99% – this amount is added to the total you borrow.

Amounts and Conditions Associated with Alternatives to Payday Loans No Online Credit Checks

Loan amounts start at $100 and go up to $5,000, with terms ranging from 3 to 24 months.

Reputable Lenders Offering Alternatives to Small Payday Loans No Online Credit Checks

Lending search organizations only match borrowers with reputable and transparent lenders.

How We Picked the Best Alternatives to Payday Loans No Credit Check Online

We searched for lenders offering:

  • 100% online application
  • Same day payments
  • Flexible terms
  • Interest not exceeding 35.99%

Conclusion

We rank Viva Payday Loans as our top pick for payday loan alternatives without online credit checks. Their service is free for borrowers and by using them you save time and money.

FAQs

What supporting documents do unemployed people have to provide?

You must present your identity document, proof of address and your bank statements.

Can borrowers with low FICO scores get same day payday loans online?

Yes, loan research panel lenders offer payday loans to borrowers with bad credit, and they can repay the same day of approval.

Where can I get $255 payday loans online same day without credit check?

Viva Payday Loans offers great alternatives to $255 online same day payday loans with no credit check.

Disclaimer: The lending websites reviewed are correspondent lending services, not direct lenders. Therefore, they are not directly involved in the acceptance of your loan application. Applying for a loan with the websites does not guarantee acceptance of a loan. This article does not provide financial advice. Please seek the assistance of a financial advisor if you need financial assistance. Loans available only to US residents.

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What is the easiest credit card to get? | Credit Card News and Advice https://southeasternquiltmuseum.com/what-is-the-easiest-credit-card-to-get-credit-card-news-and-advice/ Fri, 02 Sep 2022 14:04:00 +0000 https://southeasternquiltmuseum.com/what-is-the-easiest-credit-card-to-get-credit-card-news-and-advice/

Some of the links on this site contain offers from our the partners.

If you’re new to credit or have bad credit, an easy-to-get card can get you in the door. Secured, student, store, and alternative credit cards are fairly easy to approve, even if your credit score isn’t great. Learn about the easiest credit cards to get, including how to choose one and how to use one to build credit.

What are the credit card approval requirements?

Credit card companies are required by the CARD Act of 2009 to use certain approval factors to ensure that you can repay what you charge. When you apply for a credit card, the issuer will consider:

  • Your income. The issuer will look at your income to see if you can afford minimum monthly payments on your new card, as well as payments on any debts you may have.
  • Your credit score. Your credit score indicates your past performance with credit products. The higher your score the better, but a bad or non-existent score will not necessarily exclude you from all credit cards.

A credit card issuer may also look at your employment history, housing status, and other factors when making credit decisions.
“Your credit score isn’t the only determining factor,” says Chip Chinery of Chip’s Money Tips, a personal finance blog and podcast. “I was denied for too many recent requests or too many cards.”

You probably won’t have a great chance of being approved by an issuer if you’ve acquitted yourself of debt with that issuer, adds credit expert John Ulzheimer, formerly of Equifax and FICO.

What credit score do you need to get a credit card?

The credit score you need to get a credit card depends on the card you want. But you could be approved for a card with no credit score or with bad credit, which is a score below 580 on the FICO scale.

“A credit card is the easiest credit product to obtain, other than a payday loan,” says Ulzheimer.

Credit card issuers may recommend a credit range for approval, such as fair or good to excellent. You’ll need good credit — at least a FICO score of 670 or a VantageScore of 661 — for many credit cards, especially ones with lots of rewards and perks.

If your score is below good credit, you still have options. Some credit cards are accessible without credit or with scores as low as 300.

Do not expect the best conditions with this type of card. If you apply with a low credit score, you may be offered a low credit limit, such as $500, Ulzheimer says.

What are the easiest cards to get with bad credit or no credit?

Easy to get credit cards with bad or no credit will usually include secured, student, store and alternative cards. Learn more about each type:

Secured credit cards

A secured credit card is backed by a security deposit, usually equal to your credit limit, which acts as security if you cannot pay your bills. The deposit reduces issuer risk and makes it easier to get the card as long as you have the necessary funds.

Consistent and responsible use, including timely payments, can help you get an increase in your line of credit. The issuer may offer you an unsecured credit card and return your security deposit.

Popular secure cards include:

  • Find out Secure credit card. This card does not require a credit score to apply and has no annual fee. It earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
  • Capital One Platinum secured credit card. You can be approved for this card with a credit score as low as 300. The card charges no annual fee, and you can put down a security deposit as low as $49 to get an initial line of credit of $200.

Student Credit Cards

Student credit cards are starter cards that help you build credit. Unlike secured cards, student cards do not require a security deposit, but they generally have low limits until you have more experience with credit and more income. Some student cards can earn rewards and offer beginner-friendly perks like easy-to-earn bonuses and limited fees.

The most popular student credit cards include:

  • Find out about Student Cash Back. Students with no credit score may qualify for this card with no annual fee. The card earns 5% cash back on quarterly rotation categories and 1% cash back on all other purchases. It also matches any cash back rewards you earn at the end of your first year as a cardholder.
  • Capital One SavorOne Student Cash Rewards credit card. This card is available to students with at least fair credit. You can earn 3% cash back on dining, entertainment, streaming service, and grocery purchases, and 8% back on ticket purchases through Vivid Seats. All other card purchases receive 1% cash back.

In-store credit cards

Retail store cards can have easy endorsements to encourage customer loyalty. As with secure cards and student cards, expect fairly low credit limits with store cards. You’ll redeem rewards at a retailer or retailer group instead of more flexible options, such as cash back or transferable travel rewards. Look for cards at stores where you’re likely to get the most value.

Alternative credit cards

Alternative credit cards use non-traditional underwriting to determine your creditworthiness. Instead of relying heavily on your credit score for approval, the card issuer may review your bank account, income, work history, and other information for approval.

Popular alternative credit cards include:

  • Visa Petal 2 credit card “Cash back, no fees”. Petal uses an underwriting model that not only looks at your credit score, but also your savings, income, expenses, and other factors to determine card approval. It offers credit limits of $300 to $10,000 with up to 10% cash back bonus at select merchants and no annual fee.
  • Visa Petal 1 “no annual fee” credit card. This card also uses an alternative underwriting model for card approval. You can earn up to 10% cash back at select merchants and access a credit limit of $300 to $5,000.

How to choose a credit card

Even if you have limited or bad credit, you’ll likely identify some options to compare before applying for a card. Consider these factors to help you choose a credit card that’s right for you:

  • Approval ratings. Make sure your credit score meets the card’s minimum requirements. Check to see if the issuer offers pre-approval, which allows you to check your chances of approval without affecting your credit score.
  • Fees and deposits. Some credit cards, especially cards marketed to consumers with bad credit or fair credit, may have unusually high annual or other fees. Also consider the cost of any security deposits and whether you can put that money on hold until you can get an unsecured card.
  • Credit reports. If you’re using your credit card to build or rebuild your credit, make sure it reports to all three credit bureaus. You may need to call or check online before applying.
  • Credit limit. When comparing pre-approved offers, consider how much access to credit you will get. Having a high balance with a low credit limit is easy to do and increases your rate of credit utilization, which can lower your credit score.
  • APR. If you carry a balance, you’ll pay interest, and the higher your APR, the higher your interest charges. But APR isn’t one of the most important factors, Ulzheimer says, because you’re starting out badly if you plan on paying interest on your credit card. Plan to avoid balances on your credit card.
  • Rewards and Benefits. Earning rewards and taking advantage of cardholder benefits, such as extended warranty coverage and roadside assistance, can provide value. However, factors such as card fees and credit reports are more important.

How to create credit with your card

If you’re looking for the easiest credit card to get, chances are you have no or bad credit — and your goal should be to build credit. When you use an easy-to-get credit card correctly, you can make gains in your credit history that unlock better credit products, such as rewards credit cards and long-term loans that could improve your finances.

An important factor in using your credit card responsibly is controlling your spending to ensure you can make payments on time and avoid building up an unmanageable balance. If you want to use a card without spending too much, Chinery advises you to log into your account and immediately pay for your purchase after making it.

“You use your credit card, but it’s like spending money,” Chinery says.

  • Limit expenses. Stick to your budget and make sure you can pay what you bill each month.
  • Make payments on time. Pay your credit card balance by the due date each month so your credit report reflects an on-time payment history.
  • Maintain low or zero balances. A low credit utilization rate can help boost your credit score. Be sure to keep balances low or, ideally, pay them off monthly. “The byproduct of using credit cards is building a credit history,” says Ulzheimer. “So the next time you ask for a card, your offers should be a little better.”

]]> ‘I thought taking a loan to invest in crypto was a good move. Then I lost most of it’ https://southeasternquiltmuseum.com/i-thought-taking-a-loan-to-invest-in-crypto-was-a-good-move-then-i-lost-most-of-it/ Mon, 29 Aug 2022 05:31:36 +0000 https://southeasternquiltmuseum.com/i-thought-taking-a-loan-to-invest-in-crypto-was-a-good-move-then-i-lost-most-of-it/

Does it make sense to take out a loan to buy crypto? Nearly a quarter of US investors seem to think so.

A recent survey by DebtHammer, which surveyed 1,500 investors across the United States, found that 21% of investors said they used a loan to pay for their crypto investments.

These loans were often at exorbitant rates, with personal loans being among the most popular choices. Of all the people who said they took out a loan for cryptocurrency, 15% said they used a personal loan.

According to the report, other methods of funding crypto investments came from payday loans, mortgage refinances, housing equality loans, title loans, and leftover funds from student loans.

The survey also found that around 10% of people who used payday loans used it to buy crypto: most borrowed between $500 (€503) and $1,000 (€1,007 ).

But why are so many people turning to loans to fund cryptocurrency investments and is it a smart way to shore up your finances? Some have succeeded in doing so; others aren’t convinced it’s the right decision.

Take out loans to pay for crypto

A recent graduate from Leeds, England, who wished to remain anonymous, told Euronews Next that they used a payday loan to buy £600 (€712) worth of Bitcoin earlier this year.

“At the time, I thought it was a good decision,” they said. “But the price continued to fall – I lost a significant part of my investment.”

Data from DebtHammer shows that this is not an isolated problem.

Nearly 19% of respondents said they had trouble paying off at least one bill due to their crypto investment, while 15% said they feared eviction, seizure or car repossession .

Others, however, argue that if loans are used wisely, investing in crypto can be a viable option.

Aaron Griffiths, from Chester, England, took out a £6,000 (€7,117) personal loan to pay a £4,000 (€4,745) vet bill – the rest he invested in the various digital currencies : Digitbyte, Bax, Telcoin, Solana and Opulous and a number of NFTs.

“The term of the loan is six years; I’m sure I will have made enough profit to at least cover the interest by then…maybe more,” he told Euronews Next.

He notes that he deliberately took out a larger loan to secure lower interest rates.

“I could have put the money [left over from the vet’s bill] immediately on loan, but at the time it made more sense to put it in something that had worked well before and see what happens,” Griffiths added.

That said, he points out that he made the decision with enough money to spare in case the market crashes.

“I wouldn’t do something that stupid,” he said. “Repaying the loan is not a concern for me – luckily I have a reasonably good income.”

Since making the investment 12 months ago, Griffiths notes that its earnings are currently down “but inconsequential”.

“I haven’t lost anything in the grand scheme of things,” he continued. “There were times when I could have walked away with a profit.”

When asked if he would encourage others to do the same, Griffiths notes that it “really depends on whether they have a plan. money”.

Cryptocurrency offers a solution for those with low credit

Cryptocurrency platforms also allow users with low credit scores to borrow money in a less regulated manner.

An individual who wished to remain anonymous told Euronews Next that he used cryptocurrency platform Binance to borrow money to circumvent traditional banking regulations in order to buy a car.

“I have savings of about $5,000 [€5,017], however, for a number of reasons, I had to follow a debt repayment plan. It meant that my credit score was literally zero and no one was lending me money,” he told Euronews Next.

“Even with savings, a traditional bank won’t allow me to borrow against it and it has no way to increase its value because the interest rates are so low.”

Using Binance, he was able to borrow 70% loan-to-value (LTV) and then stake the money to help pay the interest.

“In four months, I paid $4 [€4] interest and repaid 50% of the loan,” he noted.

“Where else could I take out a loan that helps pay off its own interest and use my current savings as collateral?

“I did this when the market was really low, so when prices go up, I also profit from the increase in my investment.”

There are of course risks to this strategy, he notes that the market is very volatile – as seen in the latest crypto crash.

However, “the worst-case scenario is that his assets are liquidated. It’s no worse than having to use my savings to buy a car anyway,” he said.

Can Financial Literacy and Crypto Education Prevent Debt?

While there are certain circumstances where borrowing money to invest in the crypto market can be viable, data shows that it often leads people to financial hardship.

So why do people make the decision? According to Dr Konstantinos Stylianou, a professor of competition law and regulation at the University of Leeds who specializes in digital markets, this is because “the vast majority of people are financially illiterate”.

“I don’t think it’s a good idea [to invest in crypto with a loan]. I think people should be a lot more careful about how they invest; getting into debt is risky,” Stylianou told Euronews Next.

“That’s precisely why we want to regulate crypto,” he continued.

Stylianou argues that crypto regulation would protect customers by giving them a better understanding of what they are investing in, particularly if it involves taking on debt to fund the investment.

He compares the lack of education and regulation on investing in the cryptocurrency market to mortgages and other loans – where people are required to watch an in-depth video or read numerous articles about what individuals s register.

With the crypto market becoming more accessible, lack of education about crypto markets and financial knowledge, in general, can cause some to make poor investing decisions.

“It’s part of a regulator’s role to protect customers — at the very least, what regulators want to make sure is that customers get more information,” Stylianou added.

“I appreciate that part of the allure of crypto is the insane returns – as well as the library and non-traditional financial system, not managed or controlled by the big banks,” he noted.

“I can see how people are drawn to this form of investing. People are free to choose the kind of investment profile they want for themselves: they can be as risky as they want. .

“But I think the major risk of cryptocurrency is that, if people are normally financially illiterate, which they are, they are ten times less informed about what cryptocurrencies are, how they work and how they are valued – and so, what the prospects for the future are,” concluded Stylianou.

“I really don’t think it’s a good idea to invest more than people can afford to lose, including going into debt.”

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