Ways to Fix Bad Credit Score

Where To Find Investors For Startups

4 min read

Where To Find Investors For Your Startups

Startups and corporate venture capital are yet underestimated and discredited category. The entrepreneurs are broadly seen as capricious and attached with dishonest strings. In some people’s minds, startups take the money and have the protection by a powerful partner.

Is it true in real life? 

Some researches show that corporates are becoming more skilled at working with startups. It is a kind of out-sourcing. The fact is, big companies invested more than $50 billion last year into startups. The year before their investment was about $36 billion.

The similar is in Europe. You can read about very powerful companies like Bosh or Daimler that investing in innovative startups. The point is to stay in the game and it is easier to financial support some small startup than to develop the whole new section inside the corporation.

Many big companies began as startups

For example, Lyft is one of those startups, also Monzo, Bolt, etc. You just have to look at the giant’s investment portfolios.

But, it isn’t the main subject. It is good to have such big corporations ready to invest in venture capital. The problem is if you are an entrepreneur, which company is ready to invest in your business, what is their interest, how to contact them.

If you want to invest in Europe you will need some valuable information. So, Traders-Paradise recommends Dealroom, where you can find fantastic data.

We will present you the list of three but with the promise that we will update.

Robert Bosch Venture Capital

Its headquarters are in Stuttgart, Germany. As sub-organization of Robert Bosch, it is normal that engineering technology is their focus. Its investments in AutoAI, Actility, Movidius, etc are well-known. With offices in Stuttgart, Frankfurt (both Germany) and Tel Aviv, Shanghai, and Sunnyvale in California, US we can say it covers almost all continents. 

The company says about itself:

“With offices in Europe, Silicon Valley, China, and Israel, we are working with Deep-tech companies worldwide. Having our investment sweet spot at an early stage we are also looking into later-stage companies, as well as seed-stage in selected cases. We prefer to syndicate our investments with existing or new investors in the company and can take the lead, co-lead or follow as necessary. Beyond the financial commitment, startups receive access to our vast network and support in commercial collaborations. Up to EUR 15m per company for 5-25%, Equity Position and 100% Commitment”

When they are investing in startups and venture capital their focus is on AI/Deep Learning, IoT, Distributed Ledgers, Analytics, Next Generation Computer Architecture, AR / VR, Mobility Solutions, Autonomous Driving, as we found on their website.

Novartis Ventures

Their headquarters are in Basel, Switzerland and they operate as sub-organization of Novartis, a multinational pharmaceutical company also based in Basel. They already have been invested in Nabriva Therapeutics, Proteus Digital Health, Galera Therapeutics, etc. 

The essence of their investment strategy we found on their website: 

“Our primary focus is on the development of novel therapeutics and platforms. In our investments, we look for unmet need and clinical impact, novel proprietary science, and understanding of the mechanism, management, and board experience and capital efficiency in the program. Foster innovation, drive significant patient benefit and generate superior returns by creating and investing in innovative life science companies. NVF is stage agnostic, engaging in investments from seed- to later-stage life sciences companies across Biotechnology/Biopharma. NVF manages over $800m in committed capital and more than 40 portfolio companies across North America, Europe, Israel, and Asia/Pacific. We invest in North America, Europe, Israel, and Asia/Pacific with approximately USD 800 million under management in committed capital and more than 40 portfolio companies. We continue our strategy of making larger focused investments and anticipate total investments up to USD 30 million per company over its life. We make equity investments in Biotechnology/Biopharma life sciences companies. NVF is stage agnostic and engages in seed investments as well as later-stage investments. We typically lead or co-lead an investment and play an active role on company boards.”

So, you can see that health is their focus while investing in startups.

Swisscom Ventures

With headquarters in Zurich, Switzerland operates as sub-organization of Swisscom. Their business focus is on communications. Since now, they have already invested in startups like SimpliVity, Symetis, Quantenna Communications.

What they say about their investment strategy Traders-Paradise found on their official website:

“We are investing in Swiss and global technologies to foster digital transformation. More than 40,000 new companies are set up in Switzerland every year. We look in particular at the Swiss high-tech companies and University Spin-offs as they are fundamental contributors to the economic growth and innovation of Switzerland. We are typically leading or co-leading financing rounds from the early beginning and also take board seats. As a strategic investor, we offer entrepreneurs to access a broad range of portfolio services in addition to financial support. Those comprise the use of Swisscom’s technical infrastructure but also access to market channels and key experts in the lines of Business.”

They say about their investment focus:

“Artificial Intelligence – Digital applications utilizing artificial intelligence technologies and that are deployable across various industry sectors including data-driven internet services

Cybersecurity – Advanced applications and tools to protect the integrity of networks, programs and data from attack, damage or unauthorized access

Telecom and IT Infrastructure – Next-generation IT and cloud technologies that constitute the backbone and underlying enabler to the digital transformation comprising software, hardware, and services”

The bottom line

Just take a look at the list of supported startups and you will see how good is to have the strong arms behind you when starting your own business. Sometimes it looks really hard to find an investor to give life to your good idea. But, did you try? How many contacts you have? On how many doors were you knocked?

Just don’t sit at your room and don’t cry how nobody understands you.

Take the initiative. Be proactive! And have confidence in your abilities. Who never try, never knows. Try! And the door will open to you. Find an investor!

Traders-Paradise will update the valuable information of this kind.

 

Have Enough to Buy a Home

How Long It Takes to Have Enough to Buy a Home

4 min read

How Long It Takes to Have Enough to Buy a Home

To have enough to buy a home is everyone’s dream. This is a tricky time for millennials who want to buy a home. Some research, for example in Canada, shows that young people need between 13 to 29 years to purchase their first home. That’s too much. 

While millennials over the world are striving to get on the property, about 70% of Chinese millennials reached the milestone. 

Mexico is the next with 46% of millennials homeowners, the following is France with 41%.

For the majority of millennials, owning house persist too expensive and they can’t save enough for a deposit. Property prices have increased in the last several years and the rise in salary did not follow this

Almost 2/3 of millennials declared they would need higher incomes to buy a home. 

According to Forbes, China has seven of the world’s 10 most expensive cities for buying such a property.

So how have so many millennials in China have enough to buy a home?

There are no secrets. For most of them, a parent’s help was crucial. Also, they have some benefits for married couples. For sons in China, parents will do almost everything to help them get married.

Thanks to the One-Child Policy, next year will be 30 million men more than women who are looking for marriage partners. Parents in China want to improve the chances for their sons and support them financially to have enough to buy a home. Speaking about, gender equality. But it isn’t the subject of this article.

We want to show you how to ensure your deposit in order to buy a house, to have enough to buy a home.

There are some other ways to get on the property on your own.

Let us ask you something.

1) Are you able to save each year?

2) When you save, where you put your money?

The message of the following story is: start saving early and try to save often. We want to show you the influence of compounding.

Let’s estimate how long it will take you to become a millionaire. Yes, why not?

We will start with the Rule of 1.5, likewise recognized as Felix’s Corollary. 

This rule says that for a flow of investments where the number of years times the interest equals 72, the final value will equal approximately 1.5 times the amount invested. 

Say, investing $10,000 per year for 8 years at 9% interest.

8 x 9 = 72 

The value of the investments at the end of year 8 will be about $120,000.

Or make it simpler

$10,000 x 8 x 1.5 = $120,000

It’s so far from being a millionaire but…

We will use Felix’s Corollary again. All we need to do is decide how long it will take you to save $720,000 at a contracted interest rate. 

To explain why $720,000. Because $720,000 times 1.5 equals $1,080,000. This describes why we didn’t use $1,000,000. 

This is easier than it looks, you will see.

Say, with a saving of $90,000 per year you will need 8 years to acquire $720,000. 

And at 9% annual interest, you would save $1,080,000 over 8 years. Of course, most of you don’t have $90,000 per year to put on savings. 

That’s why most of us are not able to collect a million dollars in 8 years. 

So let’s expand it to 16 years. 

Now, what do we lack to be a millionaire? Again implementing a 9% rate of return? Yes! Here is where the rule 72 again in the scene. Using the Rule of 72, we know that whatever we have saved over the first 8 years will double over the next 8 years because 72 divided by our interest rate of 9% equals 8.

So we can break the 16 year savings period into 3 equal portions: 

1) the amount we save over the first 8 years; 

2) the doubling of this amount over the next 8 years; 

3) the amount we save the second 8 years. 

And here it is: $720,000 divided by 3 equals $240,000. That is the amount we need to save each of the two 8 year periods. That is $30,000 per year if my math is good. And it is, so you just follow the rest of this. That means $2,500 per month, which is a reasonable saving for some people.

But you want to determine what it will take to be a millionaire in 24 years. All you have to do is just divide $720,000 by 7 and then again by 8. 

So, $720,000 divided by 8 equals 90,000 divided by 7 equals about $12,800. Right? Hence, investing just a bit over $1,000 per month at 9% interest during 24 years period will make you a millionaire.

Invest in stocks with little money to have enough to buy a home

But, how to know when to get in a position in investing?

Investing takes time to grow. It requires a relatively moderate risk and moderate returns in the short run. But investing may produce bigger returns by placing both, interests and dividends to hold for a longer period of time. So, you are taking a long position while investing. 

You would like to hold your stock for several years and have a decent return. In most circumstances, you should take the profit when a stock grows 20% to 25% of the buy price.

When to get out in the investment

The general rule of investing is never getting out of your investment just because the stock price is dropping. The rule “buy high/sell low” isn’t valuable while investing. Otherwise, you will never earn money in the stock market.

A selling an investment too quickly can hurt your portfolio.

Have Enough to Buy a Home

Can you “ensure” some positions?

All beginners, no matter how smart they are, have illusions, so they have losses. You have to keep your losses small, don’t let them scare you and survive.

The rules for managing the risk that we’ll show you may feel disturbing for beginners because they have small accounts. Well, the proper risk control may limits trade size. I know that. But it is important for you to know that it is a protection in the first place.

The crucial rule of risk control is the 2% rule: never risk more than 2% of your account investment on any opened trade.

Start by writing down three numbers for every trade: your entry, target and stop. Without them, a trade may become a gamble.

I want to share with you one of the best advice I got when I become an investor.

If you see your stock rises by 40% you should sell 20% of your position. When the stock later increases 49% more, sell the other 20%. That will provide you to have 125% of your primary position.

You have 100% of the initial position. And it grows 40%:

100%*1.4=140%

You sell 20% of it, which means that now in your hands you have 80% left:

140%*0.8=112%

Stocks rise for another 40% progressively:

112%*1.4=156.8%

Now you sell 20% of the stock you have in your hands:

156.8%*0.8=125.44%

You end up with 125.44% value of the initial position.


The bottom line

To know how to structure your portfolio just implement this rule:100 minus your age.

This rule is used for asset allocation. Subtract your age from 100 to find how much of your portfolio should be allocated to equities

If you are at your 30s you should have 70% in equities and 30% in debt. 

Investing doesn’t have to be difficult if you start early, understand investment opportunities, and invest in different assets to minimize risk. And provides you to have enough to buy a home.

How to Become the Billionaire

How to Become the Billionaire

How to Become the Billionaire

There is nothing wrong with being poor. Many circumstances may cause that. Lack of opportunities because of the place where you are living, the poor economy in your country, but anyone should try to change that. Even if you feel you are not capable to run that long way, just make that one – the most important first step. Find the strength to reach what you want. The life you are seeking is the life you deserve. 

TP is giving you a few stories about poor people who became billionaires. We want you to know something, they came from nothing.  Some of them have a really impressive life story. 

So, who they are?

Jan Koum WhatsApp founder

Jan Koum

Jan Koum was born in Kyiv, Ukraine in 1976. He lived in the house outside the Kyiv, without running water.

Koum has memories: “It was so run-down that our school didn’t even have an inside bathroom. Imagine the Ukrainian winter, -20°C, where little kids have to stroll across the parking lot to use the bathroom. Society was extremely closed off: you can read 1984, but living there was experiencing it.”

When he was 16, he moved with his mother to Mountain View, California. They lived in an apartment secured by government assistance. In order to survive, he cleaned floors at a local store.

Koum developed computer skills on his own. In 2009, he co-founded mobile messaging service WhatsApp and sold it Facebook for $22 billion in 2014.

Net worth:$9.1 billion

Ken Langone, Investor

Ken Langone

His father worked as a plumber and mother was a school cafeteria worker. They lived between two paychecks. 

But Langone wanted a better life and that desire was supported by his family. 

In order to contribute to paying scholarship at Bucknell University Langone worked different jobs. His parents also mortgaged their family house. 

In 1968, Langone in associate with Ross Perot took Electronic Data Systems public. Later it was acquired by Hewlett Packard. Two years later, with Bernard Marcus, he started Home Depot. This company also went public in 1981.

Despite his huge business success, Langone still is cautious with his money. He still calls the cable company when he considers his bill is too big.

Net worth: $3.6 billion

Howard Schultz, Starbucks founder

How to Become the Billionaire

Howard Schultz was born in Brooklyn, New York, on July 19, 1953.

Schultz grew up in a housing complex for the poor.

When he was 3 years old he moved with his family to the Bayview Housing in Canarsie, a neighborhood in southeastern Brooklyn.

A football scholarship helped him to move from Canarsie to Northern Michigan University in 1970.

Schultz found work as a salesman for Hammarplast, a company that sold European coffee makers in the United States. Schultz remarked that he was selling more coffee makers to a small enterprise in Seattle. It was the Starbucks Coffee Tea and Spice Company. 

“Every month, every quarter, these numbers were going up, even though Starbucks just had a few stores,” Schultz later remembered. “And I said, ‘I gotta go up to Seattle.'”

At that time, 1981, Starbucks didn’t exist outside Seattle. The company’s original owners, old college buddies Jerry Baldwin and Gordon Bowker and their neighbor, Zev Siegl, had founded Starbucks in 1971. The three friends also came up with the coffee company’s universal mermaid logo. 

Howard Schultz joined them. The rest is history.

Net worth:$2.9 billion

Kenny Troutt, the founder of Excel Communications

Kenny Troutt

Troutt grew up in a poor family. His father was a bartender. So, Kenny Troutt had to pay for his own education at Southern Illinois University. He did it by selling life insurance. He made most of his money from phone company Excel Communications, which he founded in 1988 and took public in 1996. Two years later, Troutt became a billionaire when Excel was sold to Teleglobe for $3.5 billion. 

This a self-made billionaire owns WinStar Farm in Versailles, Kentucky. He’s now retired and invests massively in racehorses.

Despite his allergy to horse hair. 

Net worth: $1.4 billion

The bottom line

So, how to become a billionaire? It looks there is no universal formula for that. But there is something common for all of them who raised in poor families. All of them wanted changes, worked hard, had a desire to make success. And they were not afraid to take advantage when it came to it. To become a billionaire you must have passion, you must be curious and have opened eyes. In order to recognize the right opportunity. Never hesitate to start this journey. These guys made a success, so why wouldn’t you?

Millennials - Five stereotypes about them 5

Millennials – Five stereotypes about them

3 min read

Millennials - Five stereotypes about them
Millennials, also known as Generation Y or Gen Y, are the demographic group following Generation X and preceding Generation Z.

The results of the survey showed that 59 percent of people aged 18 to 34 years of age consider their peers egoistic, 49 percent that they are useless, and 43 percent greedy.

Only 36 percent of the millennials stated that members of their generation are hardworking, and 24 percent are responsible.
Is that right?

Generation Y is often characterized as a group of young people who are lazy, irresponsible, and who expect to be served almost for nothing. A survey by the British magazine Guardian suggests the opposite, indicating that stereotypes about the millennials are largely ungrounded assertions.

A lot of articles have been written about what the millennials have ruined.

This is the generation that changes the world by not agreeing to a job of 9 am to 5 pm, to conventional jobs.

They are shaped by the fact that the state did not provide the job for them as it was normal for older generations after the education.

Contrary, they are working in a world that is in ever-increasing debt.

But all of them were born in the period from 1980 to 1997. Today, they are a majority of the working-age population that is increasingly taking over the labor market and imposing his rules. And these are the ones that the older generations call “the youngsters”.

What are myths about millennials and their business habits and how correct are they?

Prejudice about Generation Y is not rare. 

For example, they are spoiled, lazy and dependent on technology.

It’s important to know these prejudices, whether you are millennials or need to employ them.

Let’s break down some of the prejudices.

All the millennials are the same.

Although it is quite easy to identify some common values and habits among the millennials, the fact is that their number is so large that any generalization at the start must be wrong.

Even marketers who target millennials are always choosing subgroups within this generation.
Millennials - Five stereotypes about them 1

Millennials are not all the same

That can vary drastically!

The millennials are equally, a guy with 24 who lives with his parents and drink in front of the drugstores, as well as the successful 36-year-old CEO.

That’s why, in the first place, they should be viewed as individuals, not as homogeneous groups of people of certain generations.

Millennials are lazy.

The fairly widespread prejudice of the millennia is that they want higher and better status. And much before they earn them and without any efforts. Besides, many are ready to say,  they are not prepared to do as much as necessary to achieve the set career goals.

Millennials - Five stereotypes about them 3Personal development is goal 1 for Millennials

However, research once again shows a completely different picture: the majority of millennials said that learning opportunities and personal development are extremely important. That means they are not passive or spoiled lazy people, which is often assigned to them.

The Millennials are disloyal.

This is one of the more prevalent prejudices. The millennials are not loyal to the companies that employ them and that’s why they “jump” from work to work.

In reality, research shows that Generation Y stays longer with their employers than Generation X in their ages.
So, back off!

The millennials are inert.

You can hear they are satisfied with themselves and therefore do not perceive the work as a struggle.
Reality shows a different picture.

Many of them have student loans, and they are often poor because they work badly paid jobs or are unemployed.

They have average less income than two previous generations in the same ages.

This means that many of them are willing to work to provide economic benefits. This is supported by the fact that 59% of the surveyed millennials said that competition was the only reason why they got out of bed in the morning. This option was chosen as the most motivating by 50% of Baby Boomers, born between 1946 and 1964.

Millennials only deal with the digital world.

Although you certainly know at least a handful of fully digital-ignorant persons under 35. The fact is that 98%of millennials aged 18 to 24 have smartphones and are familiar with digital technologies.

Learn to earnMillennials deal with the digital world

However, this does not mean that this is the only world they are dealing with.

When it comes to learning new skills, Generation Y prefers live contact, rather than via the Internet.

It is certain that this is not the end of the list of prejudices about the millennials.

To observe the whole of this group of people as homogeneous at the start is a serious error in the mind.

That’s why every person, whatever the generation belongs, should be observed as an individual who has his own characteristics and things in common with his generation. That may not necessarily determine its qualities but it will help you to understand them.

Millennials and their finances

Generation Y makes up a significant and growing percentage of the workforce, and it is estimated that by 2025, they will make up about 75% of the total workforce.

Given from GenXMillennials are overflowed by debt

The majority of millennials are overflowed by debt.

The big expense of education takes to significant debt. Some surveys show that more than 70% of millennials have at least one long-term debt.

The same source point that 30% have more than one. That may be student loans or revolving accounts. Also, Generation Y has unpaid medical bills.

All this touches millennials’ capacity to handle their outgoings. One in four, meaning 25%, has overdrawn their checking account in the past year. In the same period, 23% withdrew the money from their retirement accounts.

“Young adults may not understand how taking money out of their retirement accounts now has an exponentially negative effect on account balances in the future,” says Ted Beck, former president and CEO of NEFE.

Our question is, did they have some other possibility?

There must be some ways to earn money.

According to this research, the majority of Generation Y feel they have significant debt and they are generally disappointed with their financial position.

The fact is that paying off debt ASAP is the priority but how to do so if there is no steady paycheck?

Rising a career is a difficult and individual path.

We heard it so many times: Generation Y should think about long-term possibilities.

They have to find a solid career that will produce the income to finance expected goals.

How? Where?

Many of millennials are already in high corporate positions. But the majority still have a problem to handle their debts.

Maybe this can be the solution.

The early ages are a good period of life to save for major purchases.

Do you want to know how?

Don’t waste your money!

 risk disclosure

Bad credit loan - How to improve the financial health 4

Bad credit loan – How to improve the financial health

3 min read

Bad credit loan - How to improve the financial health

It is possible to get a personal loan with bad credit?

At the first place, let us be clear what is a bad credit loan.

A bad credit loan is a relief option for consumers whose low credit scores limit their borrowing options.

In other words, a bad credit loan, or just another name for a personal loan, can secure you out of a financial emergency, even if your credit score is a lot lower than you or most banks would like.

The good thing is that you can get a loan with bad credit, but it’s harder to get a good deal.

Yes, we know! Nobody likes to be judged. But when it comes to loans, creditors are going to look deep into your credit history and make a decision about whether or not to lend to you.

They need to define how risky it would be to lend money to a borrower. And if you’ve got bad credit, you might expect to show you the door.

But, even if you have bad credit, there may be ways to get a loan. Here’s how.

The loan could come from a bank, but if you’re looking for an affordable interest rate and flexible qualifying requirements, you better close that door.

You have several options available. But you have to know that loans are typically more expensive.

Low credit scores make it easy to fall into expensive traps. But a chunk of preparation can help you avoid the worst problems.

After a period of repaying on time, you can rebuild your credit so that it’s easier to borrow next time.

Check your credit scores and credit reports to fix bad credit loan

Remember that bad credit means different things to different lenders. Lenders know your credit score, and you should too. One way to find out what you owe on your current credit cards is by checking your credit reports. Especially if your credit card issuer reports to the consumer credit bureaus. This is important because some of the information contained in them is necessary to calculate your credit scores.

You’ll want to make sure there are no incorrect derogatory marks on your reports before applying for a loan. The major consumer credit bureaus aren’t perfect, so it’s important to read your credit reports carefully. If there are false negative marks, you should contact the specific credit reporting company.

Along with correct information, the provider will remove the error.

Your credit scores are important, too. Your credit scores, along with other factors, can affect your approval odds for a loan and the terms you qualify for. Don’t be discouraged if your scores are not what you’d like. A little bit of work could help put your scores in better shape.

How to improve your credit status

So, it’s time to start improving your credit status. Your scores are calculated using different credit factors and scoring models. Try to focus on the factors with the most impact, like payment history, but do your best to improve your credit health overall.

You can’t change the past,  but make all of your current payments for at least the minimum amount. And on time. This is key for payment history.

Speaking about usage, keep the amount of debt you owe low compared to your total credit limit, ideally less than 30%. Maxed-out or over-the-limit lines of credit can be particularly harmful.

Bad credit loan - How to improve the financial health 1
Also, keeping old accounts open instead of closing accounts after they are paid off can help increase your credit history length.
Mix. Frankly, you shouldn’t apply for a new type of credit to influence your scores. But it can naturally grow over time as you experience major financial events, such as buying a home, for example.

But be careful. Applying for several new credit accounts in a short period of time can make you seem risky to lenders.
The best bet is opening new accounts only when necessary and when you know you can handle them responsibly.

Shop around with multiple lenders and compare options

Shop around for loans, and include credit unions in your search. Those institutions may work with you even if you have bad credit. Credit unions are often smaller than large banks. Also, they are focused on the community. Usually, they will review your application personally and discuss it with you. If you sit across the desk from a human being, they can understand what you need.

So, it’s time to start shopping around for the best loan for you. Some people simply choose the first loan they’re approved for.

But, that could be a major mistake.

Different lenders may offer different interest rates and loan terms. Lenders have their own methods for evaluating these factors.

There is a selection of lenders and loan facilitators who can help low-credit applicants obtain affordable financing. But not all loan features are created equally.

For example, one lender may offer you a loan with a 19.99% annual percentage rate while another can offer you a loan with a 15.99% APR (annual percentage rate). If you don’t shop around and accept the first offer of 19.99% APR, you would be overpaying by 4 percentage points.

Shopping around for loans is easier than ever today thanks to the internet. Yes, you should check into your local options, such as banks and credit unions. But you can easily view the estimated loan terms of various online lenders in one place using the internet.

Always compare loan terms

Bad credit loan - How to improve the financial health 3
If you’ve got bad credit, the loan you’re approved for will cost you more. The lenders may see you as a risk. Since personal loans for people with bad credit can be so much more expensive, it’s especially important to compare loan terms to find the best deal. To compare loan offers, there are a few basic terms to pay attention to.

Loan repayment period: Loan repayment period is the time frame in which you’ll have to repay the loan. Most personal loans require you to make fixed monthly payments for a set period of time. The longer the repayment period, the more interest you’ll pay, and the more the loan are likely to cost you.

Monthly payments: Monthly payments are determined by the amount you borrow, your interest rate and your loan term. Make sure the payments are achievable.

Loan maximum and minimum: Lenders usually establish a minimum amount and maximum amount they’re willing to lend. A lender may not be well suitable for you if it won’t loan you enough money or if it requires you to borrow more than you want.

Annual Percentage Rate (APR): APR is the total cost you pay each year to borrow the money, including interest and fees. A lower APR means the loan will cost you less. A personal loan for someone with bad credit will likely have a higher APR.

Try online lenders to fix bad credit loan

Peer-to-peer lending services are one option for getting a loan with bad credit. Instead of borrowing from banks, you can borrow from individuals who fund your loan. They may be more willing to take the risk, but they’re not looking to lose their money.

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These non-bank lenders have different risk tolerance and use different ways to evaluate your creditworthiness. Online loans evolve. They may approve you with lower credit scores.

Just be sure to avoid payday loans. They are costly short-term loans and they’re heavily promoted online.

Use collateral

It isn’t the best choice, but if you have trouble getting approved, you may need to put up collateral. If you pledge something valuable, your lender will know you’re serious. In such a case, lenders will have a better chance of collecting on the loan because they can take your collateral and sell it.

But be extremely careful when pledging collateral. If you have equity in your home, you can probably borrow against it. But the risks are worthy of your attention. If you can’t make all of your payments, you might be forced out of your home. Think twice to avoid making a bad situation even worse.

Some con artists take advantage of you when you’re down. They specifically target people who are desperate to borrow. These lenders charge enormous fees, so make it almost impossible to dig yourself out of debt.

Sometimes, you won’t even deal with a real lender: Scammers advertise loans, but you need to pay steep application fees up front. In the end, you don’t get approved, and you don’t get your money back. This is well-known as an advance fee scam. Don’t pay upfront fees to get a personal loan. Any processing fees should come out of your loan proceeds.

Think more than twice about a payday loan

If you need money right away, need an amount less than what a traditional lender might be willing to give, or have been denied a personal loan because of poor credit, you may be tempted to try a payday loan.

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A payday loan is a short-term loan for a small amount — usually $100 to $500 — that you secure by giving the lender a post-dated check or electronic access to automatically withdraw your bank account. The loan is usually due on your next pay date, along with fees. Depending on the state, payday lenders can charge from $10 to $30 per $100 you borrow.

According to research by The Pew Charitable Trusts, for example, if a payday lender charges you $15 for every $100 you borrow per two weeks, it amounts to an APR of 391%. The Pew research found that fees from online lenders can be even higher, averaging an APR of 652% as of April 2012.

Never mind where do you live, a payday lender may not check your credit in order to approve you for a loan. Many only require you to be an adult with an active bank or prepaid card account. Also, they will ask proof of income and valid identification. It may be easy to get a payday loan when you have bad credit, but the high cost could make it difficult to repay.

Some studies found that many payday loan borrowers can’t repay their loan without taking out another payday loan.
High-cost payday lending is prohibited in some countries. Others set limits on how much payday lenders can loan.
The regulation varies from country to country.

The bottom line

If your credit scores are low and you need a loan right away, finding an online lender or some other source offering personal loans for borrowers with bad credit could be your best option.

Just proceed with caution and be sure to compare the terms of each loan to find the most affordable lender. But, if you can’t find such option that you can easily repay, it may be better to wait and work on your credit.

Applying for loans, especially if done the wrong way, can further damage your credit.

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How to earn $1 million? 3

Earn a million! How and what you can do?

2 min read

How to earn $1 million? 1

If you earn a million dollars that will change your life for sure. But how to earn a million? Is that amount enough for some changes?

On some point in life, everyone asks themselves how much money would dramatically change their life.

It can be a tricky question but also a subject of serious consideration.

We all know some story about lottery winners and how much money they got and how fast they spent all. Easy come, easy go, some may say.

Million would change someone’s life.  Several million everyone’s. Remember, everyone’s.

Most people won’t see a small part of that money in their lifetimes. Some of us play the lottery and have a hope that one day the luck will hit us. That a dream and there is nothing bad in having dreams.

But what can we do in reality? How much money would you consider “life-changing”? This question is worthy of economic consideration. 

If you suddenly earn $1 million more economists say not as much as you might think.

You have to pay taxes on it and for sure you have some loans and outstanding debts to pay off. Speaking about me, if I were to win $1 million tomorrow, I’d definitely still keep working at my current job. One million bucks are not enough to change my entire life. Or anyone else’s. Maybe I’d spend a little bit of a vacation, and then I’d put the large amount of it in savings.

Actually, it isn’t so hard to earn millions

But let’s take a look at how much money is needed for a month of decent living.

Most of us are spending as little as possible and saving as much as possible. But this isn’t the point. Point is to set realistic goals and understand your own financial position.

How to earn $1 million?Start with this number. Do you know what your life costs right now? Do you have a mortgage or you pay rent? How much do you spend on essentials, from food to clothes to insurance to annual fees, every month? And don’t forget to account for inflation over the long term.

Then you have to figure out how much it will cost you to get out of debts, from balances carried on personal credit cards to car payments to student loans. The first number figure that would change your life is the amount it would cost you to pay off all debt on depreciating assets. That’s your first number.

But your debt on depreciating assets isn’t an investment. Your car for sure will not get more worthy over time. It will not increase its value. That why this kind of debt is classified as bad debt.

Let’s go further to earn a million

Now, you have to figure what is the amount of money that you would need to pay off all debts on appreciating assets. It’s classified as good debt, because underlying assets like house or land, tend to increase in value over time.

But you’d still probably have to work to maintain your lifestyle. The third number is the amount it will take to produce little more than you need every year without touching the principal of your investment. That’s the third number.

Anyway, you need at least $50,000 a year to maintain your lifestyle. You go out to eat, take a vacation, buy new shoes, and pay your property taxes.

How much capital do you need to invest to generate $50,000 every year after taxes and inflation?

How to earn $1 million? 2Let’s say you don’t want a risky investment, so you rather stay away from stocks. If you put your money in bonds, you might get a more stable return. If you looked for municipal bonds, you probably wouldn’t have to pay federal or state taxes. Suppose you can find a good portfolio of municipal bonds paying a 4% annual return. That’s an acceptable rate and a safe investment and probably even avoids taxes. For that $50,000 you need a principal amount of $1.25 million dollars. 

Let’s say you can save an extra $15,000 per year if you pay off debt on depreciating assets in one leap and $18,000 per year on appreciating assets. And you have no debt for the next 40 years. WOW, you would have $1,320,000.

A million is a lot of money, but it’s also not an unreasonable amount of money.

It’s not lottery jackpot money. If you work hard, save well, and invest well, that amount is within your reach during your lifetime.

To make things clear, it is so fun to have dreams. But this doesn’t have to stay as a dream. 

Creating a million dollars in one shot to do everything may never happen. But what you can do? You can make progress onto all three goals. You are the one that has the power to change your life and your financial future.

But where is dramatic life change? Stop watching movies.

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Easy Ways To Start Investing With Little Money 1

Easy Ways To Start Investing With Little Money

1 min read

Easy Ways To Start Investing With Little Money

Despite the title, I tell you that there is no big and small money.

Money is money and it’s yours. A different question is whether you have enough to invest. For investing with little money, I mean.

If you want to invest you can’t do it without money.

Is there any way to reach decent money for investment?

Well, my friend was putting away just $15 per week. In order to avoid tempted to take the money for saving, he put the box reserved for saving money in his girlfriend house.

Uh, how she was strict and strong. But he stashed the savings away in a safe place. You may think it isn’t a lot, but at the end of the year, he had $780.

It was still not enough but it was a great beginning.

To make money in the stock market, you have to start with big money, right? Oh, no! Totally wrong!

My friend started investing with little money.

You can try with day trading, why not. It is investing with little money.

But it takes bravery and strength of character. You have to understand the different market forces at play. This isn’t for dilettantes or dabblers.

But it is a way where you can very quickly make a major amount of money with a relatively small investment. Real investing with little money.

Day trading is not for you if you don’t have any guts.

Don’t worry, there are ways to hedge your bets when you are playing the stock market. But you have to learn and learn and learn. I suggest you ensure set stop-loss limits to cut any potential for accelerated depreciation.

If you’re an advanced trader, you probably understand that market makers move stocks to play into our greed or fear of failure. It isn’t rare they push a stock down to a certain price to enhance our fear and play right into their pockets. And pay attention to averages. When stocks break moving averages, there’s potential for large upside or big downside.

You can be investing with little money in commodities.

Gold, silver, metals, energy. Silver looks like the solid hedge on inflation. That kind of commodities is the tangible property that people can hold onto. Investing in commodities means investing in futures contracts,  prearranged agreement to buy a particular quantity at a particular price in the future. These are leveraged contracts, providing a big upside and a large downside.  I suggest you be extremely careful.

Easy Ways To Start Investing With Little Money

 

 

 

 

 

 

And of course, you can trade cryptocurrencies. Trading them might seem risky, if you hedge your investment, you could limit some fallouts. There are plenty of platforms for trading cryptocurrencies. But before you step into this, educate yourself. Use some free demo account for several months and learn, test your skills, get more knowledge.

For novice traders, it is difficult to distinguish valuable and useless trading. You need to avoid any new coins until they show up well on the market.

No matter how much you want to invest with little money.

Markets are very volatile in the altcoin scene.

There is also such a thing as “compulsive trading”. It’s hard to learn the trading style from the first day. Errors will have to occur until you find a rhythm that suits your needs. The best advice is to start with investing with little money of one or two coins that look legitimate and potentially profitable. 

More about The 5 Most Common Mistakes Made By Beginners In Trading Cryptos.

Everyone who wants to invest on the market should first evaluate his own preference for risk. Also, it is necessary to have at least minimum economic and financial knowledge and ability of common sense reasoning.

The economic revolution is afoot and you can either be a part of it or get left on the side of the highway feeling dumb.

Everything is up to you. Even your investments. So, start investing with little money and follow the rules. 

Be smart and good luck!

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