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Faute lourde: définition, exemples et différences avec la faute grave – Organisation Syndicale CGT Logistique Carrefour Supply Chain Site de Saint-Gilles, différence entre faute grave et lourde. #Différence #entre #faute #grave #et #lourde


Faute lourde : définition, exemples et différences avec la faute grave

SYNDICAT CGT LOGISTIQUE CARREFOUR SUPPLY CHAIN 13 Mars 2017 DROIT DES ELUS

Faute lourde : définition, exemples et différences avec la faute grave

Juritravail

La faute lourde est une notion confuse souvent confondue avec la faute grave. Sa définition échappe souvent et ses effets ne sont pas toujours très connus. Une nouvelle jurisprudence de février 2017 est loccasion pour nous de vous repréciser cette notion, déclaircir sa définition et de la distinguer clairement de la faute grave.

Définitions de ces deux notions

La faute grave

Pour quun comportement soit qualifié de faute grave, 3 éléments cumulatifs doivent être réunis :

  • les faits commis doivent être directement et personnellement imputables au salarié (1);
  • les faits doivent être en lien avec le travail et doivent représenter une violation dune obligation contractuelle ou un manquement aux règles de discipline de lentreprise (2) ;
  • les faits doivent être dune telle gravité quils empêchent le maintien du salarié dans lentreprise (3).

Cest la raison pour laquelle, lorsquun salarié a commis une faute grave et quil sera licencié pour ces faits, il neffectuera pas de préavis. La violence de son comportement incitera lemployeur à se séparer immédiatement du salarié.

Cet acte peut être volontaire comme involontaire : aucune intention de nuire nest requise pour qualifier des faits de faute grave (4). De même, lentreprise na pas à rapporter la preuve dun quelconque préjudice pour justifier cette qualification (5).

Il nest pas non plus nécessaire que le salarié ait un dossier disciplinaire chargé : le fait que le salarié soit exempt de toute sanction antérieure nest pas non plus un obstacle (6).

Cependant, certaines circonstances peuvent être de nature à atténuer la gravité de la faute, cest notamment le cas de lancienneté conséquente du salarié sans aucun avertissement antérieur.

Vous souhaitez licencier un salarié pour faute grave ? Voici la méthode à suivre :

La faute lourde

La faute lourde est plus grave encore que la faute grave avec, en prime, une intention de nuire de son auteur (7). Cette notion est extrêmement importante car sans intention de nuire, il ne peut y avoir de faute lourde ! (8)

Cette intention de nuire à lemployeur "implique la volonté du salarié de porter préjudice à son employeur dans la commission du fait fautif et ne résulte pas de la seule commission dun acte préjudiciable à lentreprise". (9)

Cette volonté de nuire doit non seulement être prouvée, mais elle ne peut surtout pas être déduite de certaines circonstances de fait (Par exemple du haut niveau de responsabilité du salarié ou encore de sa qualification) ou du caractère préjudiciable que ces actes vont nécessairement causer (10).

Un mot dordre : prouver lélément intentionnel dans ce comportement.

Licenciement pour faute lourde : exemples de fautes, procédure, coût.

Entre faute lourde et faute grave : nuances et distinction

Il est vrai quil est courant de confondre ces deux notions, maintenant encore plus quauparavant avec la fin de la perte des congés payés pour le salarié licencié pour ce motif.

En effet, les salariés licenciés pour faute lourde ne bénéficiaient pas de lindemnité compensatrice de congés payés pour la période de référence, quand bien même ces congés payés étaient acquis sur la période de référence en cours lors du licenciement. Une différence de traitement était alors opérée entre les salariés dont lemployeur adhérait à une caisse de congés payés.

Cette distinction était lune des différences majeures entre faute grave et faute lourde : les conséquences sur cette indemnité étant fortes. Mais cette disparité éteinte, quest-ce qui continue ou permet de distinguer ces deux notions ?

Dans un premier temps, il peut être utile de préciser que seule la faute lourde permet le licenciement dun salarié gréviste (14). Lemployeur ne pourra sanctionner ou licencier un salarié gréviste que sil parvient à prouver la commission ou la participation personnelle de ce salarié à une faute lourde. En dehors de ce cas de figure, le licenciement ou la sanction intervenue sera nulle car discriminatoire.

Dans un second temps, la faute lourde permet dengager la responsabilité du salarié afin de lui réclamer la réparation du dommage causé à lentreprise et résultant de la faute (15). La faute lourde et seule celle-ci permet à lemployeur dengager la responsabilité du salarié (16).

Il y a donc toujours des nuances qui séparent ces deux notions, cest pourquoi il est courant que les salariés contestent la qualification de la faute retenue.

Si vous avez des hésitations, nhésitez pas à vous tourner vers un avocat qui saura vous conseiller pour ne pas vous tromper.

Quelques exemples de faute lourde

Les faits qui ont été qualifiés de faute lourde sont souvent liés à ces 4 faits suivants:

Entrave à la liberté de travail

Lentrave à la liberté de travail cest le fait pour une personne de sopposer à ce que des collègues effectuent leur prestation de travail. Cest par exemple le fait pour des grévistes de sopposer au travail dautrui, même pour une courte durée (17) de bloquer lentrée et la sortie de lentreprise et de refuser dobtempérer à la sommation de lhuissier de justice de libérer le passage (18), de faire obstacle à toute entrée ou sortie des véhicules dans lentreprise provoquant la désorganisation de celle-ci (19) ou encore doccuper les locaux de lentreprise et de sy maintenir au mépris de trois décisions de justice exécutoires (20).

Violences sur les biens

Constitue une violence sur les biens la rétention ou la dégradation des biens appartenant à lentreprise, la retenue du fichier et les cartes géographiques des garagistes, indispensables pour le service dépannage, et de ne les avoir restitués quaprès intervention de son syndicat et en présence de linspecteur du travail (21).

Violences sur les personnes

Constituent des violences sur les personnes : des menaces, injures ou actes de violence ou le fait de frapper un autre salarié qui refusait de sassocier à un mouvement de grève (22).

Actes de séquestration

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Saipem, Saipem en France, entreprise société différence.

#Entreprise #société #différence



Entreprise société différence

« L’industrie de l’Г©nergie est un monde d’aventures par nature… »

Pour nous, dans ce secteur en forte croissance, les 40.000 collaborateurs de Saipem dans le monde relГЁvent chaque jour des dГ©fis et vivent une aventure professionnelle intense.

Pour nous, dans ce secteur en forte croissance, les 40.000 collaborateurs de Saipem dans le monde relГЁvent chaque jour des dГ©fis et vivent une aventure professionnelle intense.

« Dans le secteur "Oil & Gas", l’innovation est un mouvement perpГ©tuel. »

Chaque jour, nos collaborateurs dГ©veloppent et mettent en Е“uvre des technologies innovantes pour crГ©er des solutions d’avenir.

Chaque jour, nos collaborateurs dГ©veloppent et mettent en Е“uvre des technologies innovantes pour crГ©er des solutions d’avenir.

« Dans une entreprise internationale,

В В les collaborateurs ont l’initiative de leur carriГЁre… »

Chez nous, votre ingГ©niositГ© et votre expertise vous permettent de vous Г©panouir Г la place qui vous convient.

Chez nous, votre ingГ©niositГ© et votre expertise vous permettent de vous Г©panouir Г la place qui vous convient.

Rejoignez-nous

Un secteur toujours tournГ© vers demain, une envergure internationale, une logique industrielle complГЁte de la recherche-dГ©veloppement Г la livraison "clГ© en mains", l’appartenance Г un Groupe international de rГ©fГ©rence…

Si, comme nous, vous avez la passion des vrais dГ©fis, rejoignez-nous !

Il a été porté à notre attention que certains individus ou entités proposent de fausses opportunités d’emploi moyennant le paiement de frais, ou la divulgation de données personnelles ou financières. Merci de noter que Saipem sa, Saipem spa et leurs filiales recrutent leurs candidats grâce à des procédures spécifiques. Toute décision inhérente au processus de recrutement comme la sélection et l’embauche de candidats sont basées sur le mérite, les aptitudes et le professionnalisme ; il ne sera jamais demandé de frais quelle que soit l’étape engagée. Si vous recherchez des opportunités d’emploi, veuillez-vous référer à la section «Carrières» du site web Saipem.com et restez vigilant à tout autre type de demande. Dans le cas où vous seriez invité par un individu ou une entité au nom de Saipem S.A. ou Saipem spa à divulguer vos données personnelles, financières ou à payer des sommes d’argent, vous devez traiter cette demande comme une fraude et contacter les autorités compétentes pour enquête et poursuites adéquates.

В© 2016 Saipem s.a. | Saipem | Mentions lГ©gales | Contacts | CrГ©dits



The Difference Between Secured Debts and Unsecured Debts #loan #calculator #personal


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The Difference Between Secured and Unsecured Debts

By LaToya Irby. Credit/Debt Management Expert

Welcome to About.com s Credit/Debt Management site, led by your guide, LaToya Irby. LaToya has been the credit and debt management guide since 2007. Read more

When it comes to debt, there are two major types: secured debt and unsecured debt. Knowing the difference is important for borrowing money and for prioritizing your debts during payoff.

Secured Debts

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If the selling price for the asset doesn t completely cover the debt, the lender may pursue you for the difference.

A mortgage and auto loan are both examples of secured debt. Your mortgage loan is secured by your home. Similarly, your auto loan is secured by your vehicle. If you become delinquent on these loan payments, the lender can foreclose or repossess the property.

Unsecured Debts

With unsecured debts. lenders don t have rights to any collateral for the debt. If you fall behind on your payments, they don t have the right to take any of your assets.

However, the lender may take other actions to get you to pay. For example, they will hire a debt collector to coax you to pay the debt. If that doesn t work, the lender may sue you and ask the court to garnish your wages. take an asset, or put a lien on another your assets until you ve paid your debt. They ll also report the delinquent status to the credit bureaus so it can be reflected on your credit report .

Credit card debt is the most widely-held unsecured debt. Other unsecured debts include student loans. payday loans. medical bills. and court-ordered child support.

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Prioritizing Secured and Unsecured Debts



What is the difference between loan and advance #debt #management


#advance loans
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What is the difference between loan and advance?

Ashik 2012

Answered Last

The main difference between Loan and Advance. the interest component.

2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts.

3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered at the end.

4. Example for Advance: Mr. X working in an organisation. He took $10,000 as advance to be repaid in 10 monthly installments. Monthly recovery from salary is $1,000. After 10 months, hi repays entire amount.

5. Example for Loan: Mr. Y took a Loan of $10,000 with a a simple interest rate of of 12% per year. Monthly installment is $1,000. Accrued Interest is calculated every month on balance principal amount. The recovery chart is as below.

Installment Balance Interest Accrued interest 10000 0 1 1000 9000 100 100 2 1000 8000 90 190 3 1000 7000 80 270 4 1000 6000 70 340 5 1000 5000 60 400 6 1000 4000 50 450 7 1000 3000 40 490 8 1000 2000 30 520 9 1000 1000 20 540 10 1000 0 10 550

After 10 monthly installments. the interest portion $550 is remaining. This may be repaid at a time. In case of huge loans, the interest amount is recovered in equal installments.

The main difference between Loan and Advance. the interest component.

2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts.

3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered at the end.

4. Example for Advance: Mr. X working in an organisation. He took $10,000 as advance to be repaid in 10 monthly installments. Monthly recovery from salary is $1,000. After 10 months, hi repays entire amount.

5. Example for Loan: Mr. Y took a Loan of $10,000 with a a simple interest rate of of 12% per year. Monthly installment is $1,000. Accrued Interest is calculated every month on balance principal amount. The recovery chart is as below.

Installment Balance Interest Accrued interest 10000 0 1 1000 9000 100 100 2 1000 8000 90 190 3 1000 7000 80 270 4 1000 6000 70 340 5 1000 5000 60 400 6 1000 4000 50 450 7 1000 3000 40 490 8 1000 2000 30 520 9 1000 1000 20 540 10 1000 0 10 550

After 10 monthly installments. the interest portion $550 is remaining. This may be repaid at a time. In case of huge loans, the interest amount is recovered in equal installments.

The main difference between Loan and Advance. the interest component.

2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts.

3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered at the end.

4. Example for Advance: Mr. X working in an organisation. He took $10,000 as advance to be repaid in 10 monthly installments. Monthly recovery from salary is $1,000. After 10 months, hi repays entire amount.

5. Example for Loan: Mr. Y took a Loan of $10,000 with a a simple interest rate of of 12% per year. Monthly installment is $1,000. Accrued Interest is calculated every month on balance principal amount. The recovery chart is as below.

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Difference Between Dietician and Nutritionist #difference #between #dietician #and #nutritionist


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Difference Between Dietician and Nutritionist

We often hear people using the terms dietician and nutritionist interchangeably. Though it is used interchangeably in many places, there are many differences in the designations, roles, and responsibilities of these professionals.

A nutritionist is a person who holds a degree in the discipline of nutrition. It can also be a doctorate degree. A dietician is a person who will have completed the concerned examination as well as an internship. These people are licensed to work and are known more as Registered Dieticians. They usually need a degree and post-graduate degree in the program. For the license, they must specifically pass the licensing exam.

Nutritionists are not professionals who are licensed by the state board. This does not mean that they work illegally. If they hold a bachelors degree, licensing is not required. But in the case of dieticians, the professionals cannot work without the licenses. If they do so, their practise is illegal. Non-licensed professionals usually use the designations of Dietary Educator or Diet Specialist.

A nutritionist is a person who can advise you on your balanced meals and health. This professional helps you in figuring out what diets are good for your body nature. A dietician helps you with your obesity problems. This professional is capable of giving you tips on how to lose weight and instruct diets specifically for the purpose.

Usually nutritionists work in the government health sectors like the health departments. Dieticians usually work in private and other hospitals and are usually better paid than nutritionists. They also work in the public health and community spheres, research, and academic domains as well. Those who practice privately offer one-to-one counselling as well.

Dieticians meeting the national standards specified for training and education can use titles like RD, RDt, or PDt. These professionals are held accountable by the law for the conduct and care provided by them to their patients. On the other hand, nutritionist is not protected by law everywhere. But the accredited nutritionists can have designations like Associate Nutritionists, Registered Nutritionist, and Associate Public Health Nutritionists.

In medical scenarios, dieticians provide the artificial nutritional requirements to the patients who are not able to consume the foods in the normal way. Dietary modification is a major section of the study and application of dietetics. These professionals usually prepare and serve the proper foods to the patients. A nutritionist elicits, disseminates, and promotes the knowledge on the effects of nutrition to people.

While seeking the professional advice of a dietician or nutritionist, you must check for the credibility of the profession. Self proclaimed dieticians and nutritionists can do harm to your body.

Summary:
1.Dietician is protected by law but nutritionist is not protected by law in all countries.
2.Dietician deals majorly with the problems of obesity and diets for weight loss. Nutritionists work by spreading the knowledge of the healthy foods and diets for healthy bodies.
3.Nutritionists usually work in the government sectors while dieticians concentrate more on the private sectors.



What Is the Difference Between a Cash Advance – a Payday Loan? #debt #consolidation #loans #bad #credit


#advance payday loans
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Other People Are Reading

Credit Score Required

A payday loan typically does not require any type of credit check to authorize the loan. You only need to have a checking account so you can write a post-dated check to secure the loan. On the other hand, if you want to get a credit card cash advance, you need to have a credit card first. You can either use a card you already have or apply for a new one. All credit card companies check your credit score when you apply and only issue credit cards to people who meet their credit standards, which vary from one company to another.

Costs

The fee to get a payday loan is usually about $15 per every $100 you borrow for two weeks. If you roll over the loan, you have to pay the fee all over again. Therefore, if you keep rolling over the payday loan for a year, you will pay the equivalent of more than 300 percent interest. A credit card cash advance usually charges a fee of 1 to 4 percent of the amount advanced. Sometimes there might be a flat minimum fee. If the cash advance is through an ATM, there is likely an ATM fee of a few dollars. In addition, the borrower pays interest on the balance each month, usually at a rate a few percent higher than regular credit card purchases. According to Smart Money, most credit card cash advances charge 20 to 25 percent interest annually.

Repayment Schedule

When you take out a payday loan, you must repay it in full very soon, usually within two weeks. If you cannot repay it, you must pay the charges again to roll over the loan for another two weeks. Some states have laws that require payday lenders to work out an installment schedule to stretch out the repayment. With a credit card cash advance, on the other hand, you only have to pay the minimum credit card payment, which factors in the amount of the cash advance and any other draw on the line of credit. You can pay more than the minimum if you would like to pay it back sooner, but in general it is much easier to meet the repayment schedule for a credit card cash advance than a payday loan.

Which is Better?

The better type of borrowing depends on your situation. If you already have a credit card with available credit, a credit card cash advance offers a lower long-term interest rate and low monthly payments. If you do not have a credit card and do not think you will be able to get one fast enough, a payday loan offers a quick solution and moderate fees if you pay it back right away. However, if you do not expect to be able to pay back a payday loan in two weeks, carrying it over can be far more expensive than paying interest on a credit card cash advance.



What Is the Difference Between a Signature Loan and a Short-term Loan? #auto #loan #calculator


#signature loans
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What Is the Difference Between a Signature Loan and a Short-term Loan?

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It’s normal to obtain a loan to buy a house or vehicle. When you take out a loan for a house or car, the lender lets you repay the loan over several years. But what if you need a quick, short loan? In this case, you can apply for either a signature loan or a short-term loan. Signature loans and short-term loans carry certain similar characteristics; neither type of loan requires collateral and they both feature short repayment terms. However, there are key differences between the two.

Obtaining a Loan

Financial institutions, such as banks and credit unions, issue signature loans. You can apply for a loan in-person or submit an application via your bank’s online website. If approved for a signature loan, visit the bank to sign your documents and obtain your funds. Short-term loans, also known as payday loans or cash advances, aren’t issued by banks and credit unions. These loans are available from private loan companies. You can apply for a short-term loan with a local company or submit an online application. Loan companies operate differently from banks. If you submit an online application for a short-term loan, the loan company conducts the entire transaction via the Internet and fax. You supply your information, such as copies of your most recent paycheck stub, bank statement and driver’s license. After verifying your information and receiving your electronic signature, the loan company deposits funds into your bank account.



The difference between water and flood damage – 21st Century Insurance #21st #century, #21st #century #insurance, #insurance #information, #i #need #flood #insurance, #flood #insurance, #difference #between #flood #and #water #damage, #what #to #do #with #water #damage, #am #i #covered #flood #insurance, #march #2014 #newsletter


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In Touch With 21st – March 2014

The difference between water and flood damage

You return home to find your living room flooded. Will your insurance policy cover this loss? That depends on the type of insurance you chose to purchase, and how the water entered your house.

Types of insurance that can help

There are two types of policies that cover losses caused by water, homeowners insurance and flood insurance. These policies provide two different types of coverage that complement each other, but may not overlap.

Homeowners insurance. Most homeowner policies cover damage to your home caused by a sudden and accidental water event, such as a burst pipe, wind- or storm-driven rain or melting snow. Water damage caused by poor home maintenance such as overfilled gutters, a poorly maintained roof, and condensation buildup due to inadequate ventilation or unrepaired leaks will generally not be covered. Also, a homeowners policy doesn t protect against flood damage.

Flood insurance. While flood damage to your home and its contents is not covered under your homeowners policy, it could be covered by a separate flood insurance policy, available through the National Flood Insurance Program from the Federal Emergency Management Agency (FEMA) if you purchase this type of policy. A flood is defined as a rising and overflowing of a body of water onto normally dry land. For insurance purposes, the word “rising” in this definition is the key to distinguishing flood damage from water damage.

Flood insurance is available to homeowners and renters, for both personal and commercial properties. The cost of this insurance will vary depending on the amount of insurance purchased, what is covered and a property s flood risk. Note that it typically takes 30 days for flood insurance to take effect from the date of purchase.

What to do when water damage occurs

If water damage occurs to your property, such as with a storm, it is important to dry all wet areas and provide air circulation to aid in the drying process. Also, cover any exposed areas of the dwelling with a tarp to prevent further water damage. Covering exposed areas along with drying and dehumidifying wet areas can help minimize the possibility that mold will form due to the water damage. Always contact your insurance agent immediately to start the home owners insurance claims process.

Please note: This information is of a general nature for educational purposes only. It must not be taken as advice and does not signify an endorsement. 21st Century Insurance is not responsible for any injuries or loss incurred.



Difference between Short Term and Long Term Loans #loans #with #bad #credit


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Wealth Creation and Saving Strategies | OnMoneyMaking

Difference between Short Term and Long Term Loans

by: admin – March 27th, 2013 1 Comment

The thought of a loan seems to have crossed everyone s mind at some point in life. Generally it s not carefully thought out though. A loan is a specified amount of money someone borrows with the intention of paying it back. Generally it s over a said period of time and is paid back with interest. There are different types of loans falling into two major categories: short term and long term. A person may find themselves needing a loan for many different purposes.

Short Term Loans

Short term loans are generally up to about three years. A popular short term loan is a payday loan. Someone may take a payday loan out in the event of an emergency such as car repairs, taking a vacation, or other unexpected bills. Payday loans are like a cash advance in which the payment comes from your bank account on your next pay date. These are very popular because of the few requirements needed to be approved for the loan. Unlike a long term loan, you can get cash within 48 hours from companies like Online Payday Loans.net and there are no credit checks. These loans are generally up to $2000.

Another popular short term loan is a flexible loan. This is generally a credit based loan, but up to $25,000. The term is generally 12 months. Short term loans are at a higher interest rate than a long term loan, capitalizing on the length of your loan. A lender will use the situation that you do not have credit in order to offer the higher interest rate.

Long Term Loans

Long term loans can be taken over an extended amount of time. Most common long term loans are mortgages, student loans, wedding loans, start-up business loans, and home improvement loans. A long term loan is credit based. The better your credit score the better your interest rates will be. A long term loan can be in the form of a secure or an unsecured loan. A secure loan requires a form of collateral or asset, such as a title to your car or your home. An unsecured loan does not require any assets and has a higher interest rate as the lender has more at stake. You can think of this as a line of credit with your bank or a credit card.

Taking a long term loan is generally through a bank or credit union, unlike a short term loan. The amount of the loan will be based on your credit history and current income. With long term loans, you have greater flexibility with payment options. For instance, mortgage loans offer a fixed interest mortgage loan, in which the rate is the same over the term of the loan and the payments are split equally. An adjustable rate mortgage loan s rate can adjust every year. There is also an interest only loan, of which a person can pay only the interest of the loan for a set amount of years, and then start paying on the principal. Unlike short term loans, long term loans can help establish credit.

When making the decision to take a loan, it s important to think about a few things. Think if you really need the loan and weigh other options. Shop around for the best interest rates. Consider the consequences. Make sure you are able to afford paying the loan back. For instance, a payday loan will take so much of your next paycheck. Make sure it doesn t dig you further into debt on other bills.



Secured and Unsecured Loans: What – s the Difference? #instant #cash #loans


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Secured and Unsecured Loans: What s the Difference?

Loans can be tricky. With so many different options, how do you decide which one is right for you? For starters, it depends what you plan to purchase with the loan. Are you looking to take a vacation or buy a new home? The amount of money you’re borrowing will determine if you need an unsecured or secured loan.

Taking out a loan is a big financial commitment. By doing so, you’re essentially agreeing to give up a portion of your paycheck until the loan is paid off.

In case you’re wondering, an unsecured loan is a loan in which you don’t have to give the lender rights to a specific asset if you’re unable to repay the loan. This type of loan is generally taken out for home improvements. student loans, or personal loans. If you default on the loan, there’s nothing the creditor can take back to recover their loss of payment. With no protection if you default, interest rates are generally higher. Interest rates can range anywhere from 10–12%, and in some situations, are required to be repaid within two years.

On the other hand, a secured loan is a loan that’s used when borrowing a significantly larger sum of money. When taking out a secured loan, the borrower must provide some sort of collateral to ensure repayment. A secured loan is taken out for purchases such as a new car or home equity.

If you decide a secured loan is for you, what type of collateral must you provide? Depending on the terms of the agreement, it could be something as large as your home or your car. Secured loans generally offer lower rates, a higher borrowing limit and longer repayment terms due to the large sum of money that’s borrowed.

While you’re offering something up as collateral, that doesn’t necessarily mean you’ll lose your collateral for missing a payment or two. For example, if you take out a home equity loan, your home is your collateral. However, if you miss out on a payment, the lender is more likely to send you a letter requesting that you make your payment rather than take over possession. In the long run, it’ll take too much work and time for the lender to take over possession of your collateral for only missing a few payments. (Note: Just so we’re clear, I’m in no way suggesting it’s OK for you to blow off  your payments every once in a while. Keeping up to date is much better in the long run.)

Now that we know what unsecured and secured loans are, how can debt from each affect you? A small portion (about 10%) of your credit score is based on the type of debt you carry and whether or not you have a variety of credit types. Revolving credit, or credit that’s automatically renewed as debts are paid off, and installment loans are also taken into consideration. The better you are at paying off your debts on time, the better off your credit score will be in the long run.

As you can see, unsecured and secured loans are used for very different purposes. Most people only take out a small amount of secured loans due to the amount of money they have invested in them. Unsecured loans are much more common because they’re much easier to obtain.

In what situations have you sought a secured or unsecured loan? Let us know in the comments section below!

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What Is the Difference Between a Signature Loan and a Short-term Loan? #debt #management


#signature loans
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What Is the Difference Between a Signature Loan and a Short-term Loan?

More Articles

It’s normal to obtain a loan to buy a house or vehicle. When you take out a loan for a house or car, the lender lets you repay the loan over several years. But what if you need a quick, short loan? In this case, you can apply for either a signature loan or a short-term loan. Signature loans and short-term loans carry certain similar characteristics; neither type of loan requires collateral and they both feature short repayment terms. However, there are key differences between the two.

Obtaining a Loan

Financial institutions, such as banks and credit unions, issue signature loans. You can apply for a loan in-person or submit an application via your bank’s online website. If approved for a signature loan, visit the bank to sign your documents and obtain your funds. Short-term loans, also known as payday loans or cash advances, aren’t issued by banks and credit unions. These loans are available from private loan companies. You can apply for a short-term loan with a local company or submit an online application. Loan companies operate differently from banks. If you submit an online application for a short-term loan, the loan company conducts the entire transaction via the Internet and fax. You supply your information, such as copies of your most recent paycheck stub, bank statement and driver’s license. After verifying your information and receiving your electronic signature, the loan company deposits funds into your bank account.



The Difference Between Loans – Advances #interest #rates #on #student #loans


#advance loans
#

Other People Are Reading

Advances

An advance is an amount of money that is loaned from future earnings. For example, if you get a $500 advance on your salary, you next paycheck will be decreased by $500 to repay the money you borrowed from that paycheck.

Advantages of an Advance

Most companies that offer advances to their employees do not charge interest, so it can be a safe and cheaper alternative to a payday loan or short-term bank loan.

Loan

A loan is an amount borrowed from a bank or other institution that loans money. Borrowers sign a promissory note that states the terms of the loan and the length of time for repayment. Loans usually require an amount of interest to be paid back with the loan.

Advantages of Loans

A loan can be borrowed and paid back in increments over a period of time. Because it can be paid back in smaller amounts, paying back the loan is less than a hardship that losing a large amount from one paycheck.

Advance v. Loan

Advances are generally interest free, but must be paid back, usually from the next paycheck. Loans will have origination fees and interest, but can be repaid over a longer length of time.



Personal Loans Can Make a Difference with Loans up to 1500$ #loan.com


#personal loans online
#

Personal-Loan.com Makes It Easy To Get A Personal Loan

Follow 2 Easy Steps to Get Your Loan Fast

We’ve made it simple for you to get a personal loan. All you need is a job (for 6 months) making at least $1,000 a month. In less than 3 minutes, you find out if you’re approved for the cash you need.

Step #1 – Complete our fast app.

Here’s all you have to tell us:

* How much money you want to borrow

* Your name, address, phone number and email.

* Your age (you must be at least 18)

Step #2 – Compare your loan offers.

After you submit your information, it takes only a few minutes to receive your loan offer. Most of the time you’ll get multiple offers and you can choose the one that suits you best.

That’s it. You’re Done!

Now all you have to do is wait for your cash. It usually takes less than ONE business day**.

No that was easy, wasn’t it?

But…I Have Bad Credit

Okay, I know what some of you are thinking.

“I’d love to fill out the application, but I have been turned down over and over by traditional lenders because I have bad credit.”

We get that. If you had perfect credit and could walk into any bank and get a loan, you probably wouldn’t be here. So your credit is a probably a little or a lot dinged. Don’t worry. Most of our lenders don’t even look at your credit report.

Your job is what they care about and base the loan on. If you have a job and get a consistent paycheck, odds are, you’ll get the loan.

That means no hassles, no embarrassment about your credit report, and no face-to-face rejections.

All you have to think about is choosing the best loan offer.

Still Not Convinced This Is Better Than the Bank?

Our online process enables you to avoid a lot of tedious paperwork (like the bank asks for). You won’t waste your time driving around town enduring awkward face-to-face meetings with lenders who don’t really want to lend to you anyway.

Banks usually only lend to people who don’t really need the money. I know it sounds crazy, but it’s absolutely true. Banks don’t like to take risks so they base everything on your credit score. Which is sometimes  very misleading.

Our lenders look at the fact you have a job, work hard and earn a paycheck.

Use the Money Any Way You Want

Plus, you can use our personal loans for whatever you want. It’s not tied to a specific item, like a car or a home. You can use it for financial emergencies (like keeping your power and water on) or unexpected medical bills. You can even go on a vacation (when’s the last time you did that) or you can use it to avoid a bounced check or overdraft fee.

It’s your money and your decision.

Go here to get the cash you need by filling out our fast and easy online application.

Still Have Questions About Loans and Credit?

No problem. Read through our handy guide What You Always Wanted to Know About Borrowing Money, but Were Afraid to Ask.

In no time, you’ll know more about credit and loans than 99% of Americans.

Here’s some of the stuff you’ll learn:

What’s a Credit Score?

What’s a Bad Credit Score?

What Causes My Credit Score to Drop?

How Do I Fix My Credit?

How Do I Keep My Credit in Tip-Top Shape?

How Can I Get the Cash I Need If I Have Fair to Bad Credit?

What’s the Difference Between a Secured and Unsecured Loan?

Well also explain all the different types of personal and bad credit loans available.

You’ll learn about secured and unsecured personal loans, bad credit auto loans, payday loans and cash advances. Plus, we’ll tell you how to pick the best loans and avoid out the bad ones.

We’ll also talk about all the technical stuff, like loan limits, APR, fees and terms.

In no time at all, you’ll be an expert on borrowing and credit reports. You’ll be able to get better and better rates and terms each time you borrow. Just make sure you practice everything you learn.



Personal Loans – Lines of Credit: The Difference Between Bank Loans – Lines – CIBC #compare #car #loans


#loans on line
#

Comparing Personal Loans and Lines of Credit

There are a number of reasons why you may need to borrow money. Whether you’re looking to renovate your home, consolidate your debt or simply want to take that much deserved vacation, it’s important to find the right borrowing option.

What is a personal loan?

If you are interested in making a large, one-time purchase with the option of a fixed or variable interest rate, a personal loan may be the right option for you. Features of a personal loan include:

Type of disbursement. Lump sum

Interest rates. Fixed or variable

Loan amount. You have to borrow at least $3,000 with a personal loan. The maximum you can borrow will depend on your credit score and other factors.

Repayment options. Choose from weekly, bi-weekly, semi-monthly and monthly payments. Your payments will be a combination of principal and interest.

Secured or unsecured. Secured loans are backed by your collateral either by property or investments, resulting in a higher borrowing amount and lower interest rate, whereas with unsecured loans they typically have a faster approval process. Learn more about secured and unsecured personal loans .

What is a personal line of credit?

If your borrowing needs vary, and you want to make on-going purchases, a personal line of credit is probably a better fit. Features of a personal lines of credit include:

Type of disbursement. A personal line of credit is reusable. Once you are approved for it, you can access any portion of the credit line at any time.

Interest rates. Variable

Line of credit amount. Borrow as low as $5,000

Repayment Options. You pay interest on the amount you use, not the entire credit limit as you do with a personal loan. No matter how much you borrow, all of it plus interest must be repaid by the end of the term.

Secured or unsecured. Personal lines of credit can be secured or unsecured. Securing your line of credit by property or investments typically results in a lower interest rate and higher credit limit.

Where can I learn more about bank loans for specific purposes?

While this basic information holds true for most loans and lines of credit, there can be some variation depending on what the loan is used for. For example, there are special lending products for education, home and car needs. Learn more about these bank loans and lines of credit here:

Apply for a personal loan or line of credit with CIBC

After you’ve decided which option is right for you and your financial situation, contact CIBC to receive more information. You can call a CIBC advisor at 1-866-525-8622. or start your loan application online.



What Is the Difference Between a Signature Loan and a Short-term Loan? #bank #personal #loans


#signature loans
#

What Is the Difference Between a Signature Loan and a Short-term Loan?

More Articles

It’s normal to obtain a loan to buy a house or vehicle. When you take out a loan for a house or car, the lender lets you repay the loan over several years. But what if you need a quick, short loan? In this case, you can apply for either a signature loan or a short-term loan. Signature loans and short-term loans carry certain similar characteristics; neither type of loan requires collateral and they both feature short repayment terms. However, there are key differences between the two.

Obtaining a Loan

Financial institutions, such as banks and credit unions, issue signature loans. You can apply for a loan in-person or submit an application via your bank’s online website. If approved for a signature loan, visit the bank to sign your documents and obtain your funds. Short-term loans, also known as payday loans or cash advances, aren’t issued by banks and credit unions. These loans are available from private loan companies. You can apply for a short-term loan with a local company or submit an online application. Loan companies operate differently from banks. If you submit an online application for a short-term loan, the loan company conducts the entire transaction via the Internet and fax. You supply your information, such as copies of your most recent paycheck stub, bank statement and driver’s license. After verifying your information and receiving your electronic signature, the loan company deposits funds into your bank account.



What Is the Difference Between a USDA Loan – a FHA Loan? #house #loan


#usda loan
#

What Is the Difference Between a USDA Loan a FHA Loan?

USDA home loans usually are restricted to rural areas.

USDA Loans

Under USDA rural home loans, very low- and low-income rural Americans can qualify for several loan, grant and loan-guarantee programs. USDA home-loan terms run from 30 to 38 years. Additionally, USDA home loans can be guaranteed and can feature 100-percent financing. Income and credit qualification standards under USDA loan programs vary but are geared toward low-income buyers. Homes bought using USDA loans must be modest in design, size and cost.

FHA Loans

There are no geographic area restrictions when it comes to FHA-insured home loans. FHA loan limits vary depending on region and location in the country, and FHA offers only insured, not guaranteed, loans. FHA income and credit qualification standards can be slightly higher than their USDA counterparts. Minimum down payment requirements of at least 3.5 percent apply to FHA-insured home loans; however, down payments can be a gift from parents, for example.

USDA Programs

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  • What is the difference between an interest rate and an annual percentage rate (APR)? #student #loans #federal


    #interest rate on car loan
    #

    What is the difference between an interest rate and an annual percentage rate (APR)?

    When evaluating the cost of a loan or line of credit, it’s important to understand the difference between the advertised interest rate and the annual percentage rate. or APR. The advertised rate, or nominal interest rate, is used when calculating the interest expense on your loan. For example, if you were considering a mortgage loan for $200,000 with a 6% interest rate, your annual interest expense would amount to $12,000, or a monthly payment of $1,000. The APR, however, is the more effective rate to consider when comparing loans. Expressed as a percentage, the APR includes not only the interest expense on the loan but also all fees and other costs involved in procuring the loan.

    The APR should always be greater than or equal to the nominal interest rate. except in the case of a specialized deal where a lender is offering a rebate on a portion of your interest expense. Returning to the example above, consider the fact that your home purchase also requires closing costs, mortgage insurance and loan origination fees in the amount of $5,000. In order to determine your mortgage loan’s APR, these fees are added to the original loan amount to create a new loan amount of $205,000. The 6% interest rate is then used to calculate a new annual payment of $12,300. To calculate the APR, simply divide the annual payment of $12,300 by the original loan amount of $200,000 to get 6.15%.

    When comparing two loans, the lender offering the lowest nominal rate is likely to offer the best value, since the bulk of the loan amount is financed at a lower rate. The scenario most confusing to borrowers is when two lenders are offering the same nominal rate and monthly payments but different APRs. In a case like this, the lender with the lower APR is requiring fewer upfront fees and offering the better deal.

    The use of the APR comes with a few caveats. Since the lender servicing costs included in the APR are spread out across the entire life of the loan, sometimes as long as 30 years, refinancing or selling your home may make your mortgage more expensive than originally suggested by the APR. Another limitation is the APR’s lack of effectiveness in capturing the true costs of an adjustable rate mortgage, since it’s impossible to predict the future direction of interest rates.

    The Federal Truth in Lending Act requires that every consumer loan agreement list the APR along with the nominal interest rate. The fact that all lenders must follow the same rules to ensure the accuracy of the APR creates a more level playing field for borrowers and a much more effective means of determining the true cost of a loan.



    What is the difference between unsecured and secured personal loans? #bad #credit #unsecured #loans


    #unsecured personal loans
    #

    What is the difference between unsecured and secured personal loans?

    For individuals in need of cash fast, personal loans can be a quick short-term solution. There are two different types of short-term personal loans, secured and unsecured.

    If a personal loan is secured, the borrower has put up an asset, such as property, as collateral if he or she fails to make payments, in which case the lender can possess that asset as replacement payment. Most commonly, the asset is the borrower’s home or car, but it can be anything that he or she owns that is of a high enough value.

    This financial insurance usually allows the lender to grant a loan with a greater amount and a lower interest rate. This option is also beneficial for borrowers with poor credit, as the asset provides a concrete guarantee that the lender will receive payment. It may also provide enough insurance to allow you to pay off the amount over a longer period of time.

    An unsecured loan is an option when the borrower does not have or does not want to risk their property to pose as collateral. Because the lender does not have the financial security of collateral, they often will set higher interest rates and may also charge fees and penalties. The amount the lender grants will also most likely be lower and to be paid back over a shorter period of time.



    Secured and Unsecured Loans: What – s the Difference? #apply #for #a #loan


    #personal unsecured loans
    #

    Secured and Unsecured Loans: What s the Difference?

    Loans can be tricky. With so many different options, how do you decide which one is right for you? For starters, it depends what you plan to purchase with the loan. Are you looking to take a vacation or buy a new home? The amount of money you’re borrowing will determine if you need an unsecured or secured loan.

    Taking out a loan is a big financial commitment. By doing so, you’re essentially agreeing to give up a portion of your paycheck until the loan is paid off.

    In case you’re wondering, an unsecured loan is a loan in which you don’t have to give the lender rights to a specific asset if you’re unable to repay the loan. This type of loan is generally taken out for home improvements. student loans, or personal loans. If you default on the loan, there’s nothing the creditor can take back to recover their loss of payment. With no protection if you default, interest rates are generally higher. Interest rates can range anywhere from 10–12%, and in some situations, are required to be repaid within two years.

    On the other hand, a secured loan is a loan that’s used when borrowing a significantly larger sum of money. When taking out a secured loan, the borrower must provide some sort of collateral to ensure repayment. A secured loan is taken out for purchases such as a new car or home equity.

    If you decide a secured loan is for you, what type of collateral must you provide? Depending on the terms of the agreement, it could be something as large as your home or your car. Secured loans generally offer lower rates, a higher borrowing limit and longer repayment terms due to the large sum of money that’s borrowed.

    While you’re offering something up as collateral, that doesn’t necessarily mean you’ll lose your collateral for missing a payment or two. For example, if you take out a home equity loan, your home is your collateral. However, if you miss out on a payment, the lender is more likely to send you a letter requesting that you make your payment rather than take over possession. In the long run, it’ll take too much work and time for the lender to take over possession of your collateral for only missing a few payments. (Note: Just so we’re clear, I’m in no way suggesting it’s OK for you to blow off  your payments every once in a while. Keeping up to date is much better in the long run.)

    Now that we know what unsecured and secured loans are, how can debt from each affect you? A small portion (about 10%) of your credit score is based on the type of debt you carry and whether or not you have a variety of credit types. Revolving credit, or credit that’s automatically renewed as debts are paid off, and installment loans are also taken into consideration. The better you are at paying off your debts on time, the better off your credit score will be in the long run.

    As you can see, unsecured and secured loans are used for very different purposes. Most people only take out a small amount of secured loans due to the amount of money they have invested in them. Unsecured loans are much more common because they’re much easier to obtain.

    In what situations have you sought a secured or unsecured loan? Let us know in the comments section below!

    Like What You’ve Read?



    The Difference Between Loans – Advances #ez #loan


    #advance loans
    #

    Other People Are Reading

    Advances

    An advance is an amount of money that is loaned from future earnings. For example, if you get a $500 advance on your salary, you next paycheck will be decreased by $500 to repay the money you borrowed from that paycheck.

    Advantages of an Advance

    Most companies that offer advances to their employees do not charge interest, so it can be a safe and cheaper alternative to a payday loan or short-term bank loan.

    Loan

    A loan is an amount borrowed from a bank or other institution that loans money. Borrowers sign a promissory note that states the terms of the loan and the length of time for repayment. Loans usually require an amount of interest to be paid back with the loan.

    Advantages of Loans

    A loan can be borrowed and paid back in increments over a period of time. Because it can be paid back in smaller amounts, paying back the loan is less than a hardship that losing a large amount from one paycheck.

    Advance v. Loan

    Advances are generally interest free, but must be paid back, usually from the next paycheck. Loans will have origination fees and interest, but can be repaid over a longer length of time.



    What Is the Difference Between a USDA Loan – a FHA Loan? #loan #contract


    #usda loan
    #

    What Is the Difference Between a USDA Loan a FHA Loan?

    USDA home loans usually are restricted to rural areas.

    USDA Loans

    Under USDA rural home loans, very low- and low-income rural Americans can qualify for several loan, grant and loan-guarantee programs. USDA home-loan terms run from 30 to 38 years. Additionally, USDA home loans can be guaranteed and can feature 100-percent financing. Income and credit qualification standards under USDA loan programs vary but are geared toward low-income buyers. Homes bought using USDA loans must be modest in design, size and cost.

    FHA Loans

    There are no geographic area restrictions when it comes to FHA-insured home loans. FHA loan limits vary depending on region and location in the country, and FHA offers only insured, not guaranteed, loans. FHA income and credit qualification standards can be slightly higher than their USDA counterparts. Minimum down payment requirements of at least 3.5 percent apply to FHA-insured home loans; however, down payments can be a gift from parents, for example.

    USDA Programs

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  • What is the difference between a conventional, FHA, and VA loan? #loan #calculation


    #what is an fha loan
    #

    What is the difference between a conventional, FHA, and VA loan?

    If you are looking for a home mortgage, be sure to understand the difference between a conventional, FHA, and VA loan.

    Conventional, FHA, and VA loans are similar in that they are all issued by banks and other approved lenders, but there are some major differences between these types of loans. Read on to learn more about the different characteristics of conventional, FHA, and VA loans, and find out which one might be right for you.

    Conventional Loans

    When you apply for a home loan, you can apply for a government-backed loan (such as a FHA or VA loan) or a conventional loan, which is not insured or guaranteed by the federal government. This means that, unlike federally insured loans, conventional loans carry no guarantees for the lender if you fail to repay the loan.

    For this reason, if you make less than a 20% down payment on the property, you’ll have to pay for private mortgage insurance (PMI) when you get a conventional loan. (If you default on the loan, the mortgage insurance company makes sure the lender is paid in full. Learn more about private mortgage insurance .)

    Conventional mortgage loans must adhere to guidelines set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) and are available to everyone, but they are more difficult to qualify for than VA and FHA loans. (Since there is no government insurance, conventional loans pose a higher risk for lenders so credit and income requirements are stricter than for FHA and VA mortgages).

    Generally, you can get a conventional loan if you:

    • have good credit
    • have a steady income, and
    • can afford the down payment.

    FHA Loans

    A FHA loan is a loan insured by the Federal Housing Administration (FHA). If you default on the loan, the FHA will repay the bank’s loss.

    Since the loan is insured, the lender can offer you good terms including:

    • a low down payment (as low as 3.5% of the purchase price)
    • the financing of some closing costs (which means they are included in the loan amount), and
    • low closing costs.

    This type of loan is often easier to qualify for than a conventional mortgage and anyone can apply. However, FHA loans have a maximum loan limit that varies depending on the average cost of housing in a given region. (Learn more about FHA loan limits at www.fha.com. Click on “2014 FHA Limits.”)

    Also, you’ll have to pay MIP (mortgage insurance premium) as part of an FHA loan. (Conventional mortgages have PMI and FHA loans have MIP.) The premiums that borrowers pay contribute to the Mutual Mortgage Insurance Fund. FHA draws from this fund to pay lenders’ claims when borrowers default.

    VA Loans

    A VA loan is a loan guaranteed by the Veterans Administration (VA). This type of loan is only available to certain borrowers through VA-approved lenders. (The guarantee means that the lender is protected against loss if the borrower fails to repay the loan.)

    To get a VA loan, you must be:

    • a current member of the U.S. armed forces
    • a veteran
    • a reservist/national guard member, or
    • an eligible surviving spouse. (To learn the specific eligibility requirements for a VA loan, go to www.benefits.va.gov  and click on “Home Loans,” then “Home Loans Home,” and “Eligibility.” Then click on “Learn more” under “Purchase Loans and Cash-Out Refinance.”)

    VA mortgage loans can be guaranteed with no money down and there is no private mortgage insurance requirement. (Learn more about VA loans in Nolo’s article Veterans Home Loan Guaranty Program .)



    What is the difference between unsecured and secured personal loans? #unsecured #debt


    #unsecured personal loans
    #

    What is the difference between unsecured and secured personal loans?

    For individuals in need of cash fast, personal loans can be a quick short-term solution. There are two different types of short-term personal loans, secured and unsecured.

    If a personal loan is secured, the borrower has put up an asset, such as property, as collateral if he or she fails to make payments, in which case the lender can possess that asset as replacement payment. Most commonly, the asset is the borrower’s home or car, but it can be anything that he or she owns that is of a high enough value.

    This financial insurance usually allows the lender to grant a loan with a greater amount and a lower interest rate. This option is also beneficial for borrowers with poor credit, as the asset provides a concrete guarantee that the lender will receive payment. It may also provide enough insurance to allow you to pay off the amount over a longer period of time.

    An unsecured loan is an option when the borrower does not have or does not want to risk their property to pose as collateral. Because the lender does not have the financial security of collateral, they often will set higher interest rates and may also charge fees and penalties. The amount the lender grants will also most likely be lower and to be paid back over a shorter period of time.



    Personal Loans – Lines of Credit: The Difference Between Bank Loans – Lines – CIBC #financial #loans


    #loans on line
    #

    Comparing Personal Loans and Lines of Credit

    There are a number of reasons why you may need to borrow money. Whether you’re looking to renovate your home, consolidate your debt or simply want to take that much deserved vacation, it’s important to find the right borrowing option.

    What is a personal loan?

    If you are interested in making a large, one-time purchase with the option of a fixed or variable interest rate, a personal loan may be the right option for you. Features of a personal loan include:

    Type of disbursement. Lump sum

    Interest rates. Fixed or variable

    Loan amount. You have to borrow at least $3,000 with a personal loan. The maximum you can borrow will depend on your credit score and other factors.

    Repayment options. Choose from weekly, bi-weekly, semi-monthly and monthly payments. Your payments will be a combination of principal and interest.

    Secured or unsecured. Secured loans are backed by your collateral either by property or investments, resulting in a higher borrowing amount and lower interest rate, whereas with unsecured loans they typically have a faster approval process. Learn more about secured and unsecured personal loans .

    What is a personal line of credit?

    If your borrowing needs vary, and you want to make on-going purchases, a personal line of credit is probably a better fit. Features of a personal lines of credit include:

    Type of disbursement. A personal line of credit is reusable. Once you are approved for it, you can access any portion of the credit line at any time.

    Interest rates. Variable

    Line of credit amount. Borrow as low as $5,000

    Repayment Options. You pay interest on the amount you use, not the entire credit limit as you do with a personal loan. No matter how much you borrow, all of it plus interest must be repaid by the end of the term.

    Secured or unsecured. Personal lines of credit can be secured or unsecured. Securing your line of credit by property or investments typically results in a lower interest rate and higher credit limit.

    Where can I learn more about bank loans for specific purposes?

    While this basic information holds true for most loans and lines of credit, there can be some variation depending on what the loan is used for. For example, there are special lending products for education, home and car needs. Learn more about these bank loans and lines of credit here:

    Apply for a personal loan or line of credit with CIBC

    After you’ve decided which option is right for you and your financial situation, contact CIBC to receive more information. You can call a CIBC advisor at 1-866-525-8622. or start your loan application online.



    What Is the Difference Between a Cash Advance – a Payday Loan?


    #advance payday loans
    #

    Other People Are Reading

    Credit Score Required

    A payday loan typically does not require any type of credit check to authorize the loan. You only need to have a checking account so you can write a post-dated check to secure the loan. On the other hand, if you want to get a credit card cash advance, you need to have a credit card first. You can either use a card you already have or apply for a new one. All credit card companies check your credit score when you apply and only issue credit cards to people who meet their credit standards, which vary from one company to another.

    Costs

    The fee to get a payday loan is usually about $15 per every $100 you borrow for two weeks. If you roll over the loan, you have to pay the fee all over again. Therefore, if you keep rolling over the payday loan for a year, you will pay the equivalent of more than 300 percent interest. A credit card cash advance usually charges a fee of 1 to 4 percent of the amount advanced. Sometimes there might be a flat minimum fee. If the cash advance is through an ATM, there is likely an ATM fee of a few dollars. In addition, the borrower pays interest on the balance each month, usually at a rate a few percent higher than regular credit card purchases. According to Smart Money, most credit card cash advances charge 20 to 25 percent interest annually.

    Repayment Schedule

    When you take out a payday loan, you must repay it in full very soon, usually within two weeks. If you cannot repay it, you must pay the charges again to roll over the loan for another two weeks. Some states have laws that require payday lenders to work out an installment schedule to stretch out the repayment. With a credit card cash advance, on the other hand, you only have to pay the minimum credit card payment, which factors in the amount of the cash advance and any other draw on the line of credit. You can pay more than the minimum if you would like to pay it back sooner, but in general it is much easier to meet the repayment schedule for a credit card cash advance than a payday loan.

    Which is Better?

    The better type of borrowing depends on your situation. If you already have a credit card with available credit, a credit card cash advance offers a lower long-term interest rate and low monthly payments. If you do not have a credit card and do not think you will be able to get one fast enough, a payday loan offers a quick solution and moderate fees if you pay it back right away. However, if you do not expect to be able to pay back a payday loan in two weeks, carrying it over can be far more expensive than paying interest on a credit card cash advance.



    What Is the Difference Between a USDA Loan – a FHA Loan?


    #usda loan
    #

    What Is the Difference Between a USDA Loan a FHA Loan?

    USDA home loans usually are restricted to rural areas.

    USDA Loans

    Under USDA rural home loans, very low- and low-income rural Americans can qualify for several loan, grant and loan-guarantee programs. USDA home-loan terms run from 30 to 38 years. Additionally, USDA home loans can be guaranteed and can feature 100-percent financing. Income and credit qualification standards under USDA loan programs vary but are geared toward low-income buyers. Homes bought using USDA loans must be modest in design, size and cost.

    FHA Loans

    There are no geographic area restrictions when it comes to FHA-insured home loans. FHA loan limits vary depending on region and location in the country, and FHA offers only insured, not guaranteed, loans. FHA income and credit qualification standards can be slightly higher than their USDA counterparts. Minimum down payment requirements of at least 3.5 percent apply to FHA-insured home loans; however, down payments can be a gift from parents, for example.

    USDA Programs

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  • What is the difference between an interest rate and an annual percentage rate (APR)?


    #interest rate on car loan
    #

    What is the difference between an interest rate and an annual percentage rate (APR)?

    When evaluating the cost of a loan or line of credit, it’s important to understand the difference between the advertised interest rate and the annual percentage rate. or APR. The advertised rate, or nominal interest rate, is used when calculating the interest expense on your loan. For example, if you were considering a mortgage loan for $200,000 with a 6% interest rate, your annual interest expense would amount to $12,000, or a monthly payment of $1,000. The APR, however, is the more effective rate to consider when comparing loans. Expressed as a percentage, the APR includes not only the interest expense on the loan but also all fees and other costs involved in procuring the loan.

    The APR should always be greater than or equal to the nominal interest rate. except in the case of a specialized deal where a lender is offering a rebate on a portion of your interest expense. Returning to the example above, consider the fact that your home purchase also requires closing costs, mortgage insurance and loan origination fees in the amount of $5,000. In order to determine your mortgage loan’s APR, these fees are added to the original loan amount to create a new loan amount of $205,000. The 6% interest rate is then used to calculate a new annual payment of $12,300. To calculate the APR, simply divide the annual payment of $12,300 by the original loan amount of $200,000 to get 6.15%.

    When comparing two loans, the lender offering the lowest nominal rate is likely to offer the best value, since the bulk of the loan amount is financed at a lower rate. The scenario most confusing to borrowers is when two lenders are offering the same nominal rate and monthly payments but different APRs. In a case like this, the lender with the lower APR is requiring fewer upfront fees and offering the better deal.

    The use of the APR comes with a few caveats. Since the lender servicing costs included in the APR are spread out across the entire life of the loan, sometimes as long as 30 years, refinancing or selling your home may make your mortgage more expensive than originally suggested by the APR. Another limitation is the APR’s lack of effectiveness in capturing the true costs of an adjustable rate mortgage, since it’s impossible to predict the future direction of interest rates.

    The Federal Truth in Lending Act requires that every consumer loan agreement list the APR along with the nominal interest rate. The fact that all lenders must follow the same rules to ensure the accuracy of the APR creates a more level playing field for borrowers and a much more effective means of determining the true cost of a loan.



    What is the difference between a conventional, FHA, and VA loan?


    #what is an fha loan
    #

    What is the difference between a conventional, FHA, and VA loan?

    If you are looking for a home mortgage, be sure to understand the difference between a conventional, FHA, and VA loan.

    Conventional, FHA, and VA loans are similar in that they are all issued by banks and other approved lenders, but there are some major differences between these types of loans. Read on to learn more about the different characteristics of conventional, FHA, and VA loans, and find out which one might be right for you.

    Conventional Loans

    When you apply for a home loan, you can apply for a government-backed loan (such as a FHA or VA loan) or a conventional loan, which is not insured or guaranteed by the federal government. This means that, unlike federally insured loans, conventional loans carry no guarantees for the lender if you fail to repay the loan.

    For this reason, if you make less than a 20% down payment on the property, you’ll have to pay for private mortgage insurance (PMI) when you get a conventional loan. (If you default on the loan, the mortgage insurance company makes sure the lender is paid in full. Learn more about private mortgage insurance .)

    Conventional mortgage loans must adhere to guidelines set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) and are available to everyone, but they are more difficult to qualify for than VA and FHA loans. (Since there is no government insurance, conventional loans pose a higher risk for lenders so credit and income requirements are stricter than for FHA and VA mortgages).

    Generally, you can get a conventional loan if you:

    • have good credit
    • have a steady income, and
    • can afford the down payment.

    FHA Loans

    A FHA loan is a loan insured by the Federal Housing Administration (FHA). If you default on the loan, the FHA will repay the bank’s loss.

    Since the loan is insured, the lender can offer you good terms including:

    • a low down payment (as low as 3.5% of the purchase price)
    • the financing of some closing costs (which means they are included in the loan amount), and
    • low closing costs.

    This type of loan is often easier to qualify for than a conventional mortgage and anyone can apply. However, FHA loans have a maximum loan limit that varies depending on the average cost of housing in a given region. (Learn more about FHA loan limits at www.fha.com. Click on “2014 FHA Limits.”)

    Also, you’ll have to pay MIP (mortgage insurance premium) as part of an FHA loan. (Conventional mortgages have PMI and FHA loans have MIP.) The premiums that borrowers pay contribute to the Mutual Mortgage Insurance Fund. FHA draws from this fund to pay lenders’ claims when borrowers default.

    VA Loans

    A VA loan is a loan guaranteed by the Veterans Administration (VA). This type of loan is only available to certain borrowers through VA-approved lenders. (The guarantee means that the lender is protected against loss if the borrower fails to repay the loan.)

    To get a VA loan, you must be:

    • a current member of the U.S. armed forces
    • a veteran
    • a reservist/national guard member, or
    • an eligible surviving spouse. (To learn the specific eligibility requirements for a VA loan, go to www.benefits.va.gov  and click on “Home Loans,” then “Home Loans Home,” and “Eligibility.” Then click on “Learn more” under “Purchase Loans and Cash-Out Refinance.”)

    VA mortgage loans can be guaranteed with no money down and there is no private mortgage insurance requirement. (Learn more about VA loans in Nolo’s article Veterans Home Loan Guaranty Program .)



    What – s the difference between a loan modification, forbearance agreement, and repayment plan?


    #mortgage loan modification
    #

    What s the difference between a loan modification, forbearance agreement, and repayment plan?

    Loan modifications, forbearance plans, and repayment plans can help you avoid foreclosure if you are struggling with your mortgage. Learn more.

    Loan modifications, forbearance agreements, and repayment plans are different ways that borrowers can avoid foreclosure. Read on to learn the difference between these options and how they can help you if you are having trouble making your mortgage payments.

    Loan Modifications

    A loan modification is a permanent restructuring of the mortgage where one or more of the terms of a borrower’s loan are changed to provide a more affordable payment. With a loan modification, the lender may agree to do one of more of the following to reduce your monthly payment:

    • reduce the interest rate
    • convert from a variable interest rate to a fixed interest rate, or
    • extend of the length of the term of the loan.

    Generally, to be eligible for a loan modification, you must:

    • show that you cannot make your current mortgage payment due to a financial hardship
    • complete a trial period to demonstrate you can afford the new monthly amount, and
    • provide all required documentation to the lender for evaluation.

    Required documentation will likely include:

    • a financial statement
    • proof of income
    • most recent tax returns
    • bank statements, and
    • a hardship letter.

    There are many different loan modification programs available, including proprietary (in-house) loan modifications, as well as the Home Affordable Modification Program (HAMP), which is part of the federal government’s Making Home Affordable initiative. HAMP assists borrowers by modifying their first lien mortgages so that the monthly payments are lower and more affordable. To learn more about HAMP, see The Home Affordable Modification Program (HAMP). (To find out about other government programs for struggling homeowners, see our Government Foreclosure Prevention Programs  topic area.)

    If you are currently unable to afford your mortgage payment, and won’t be able to in the near future, a loan modification may be the ideal option to help you avoid foreclosure.

    Forbearance Agreements

    While a loan modification agreement is a permanent solution to unaffordable monthly payments, a forbearance agreement provides short-term relief for borrowers. With a forbearance agreement, the lender agrees to reduce or suspend mortgage payments for a certain period of time and not to initiate a foreclosure during the forbearance period. In exchange, the borrower must resume the full payment at the end of the forbearance period, plus pay an additional amount to get current on the missed payments, including principal, interest, taxes, and insurance. (The specific terms of a forbearance agreement will vary from lender to lender.)

    If a temporary hardship causes you to fall behind in your mortgage payments, a forbearance agreement may allow you to avoid foreclosure until your situation gets better. In some cases, the lender may be able to extend the forbearance period if your hardship is not resolved by the end of the forbearance period to accommodate your situation.

    In forbearance agreement, unlike a repayment plan, the lender agrees in advance for you to miss or reduce your payments for a set period of time.

    Repayment Plans

    If you’ve missed some of your mortgage payments due to a temporary hardship, a repayment plan may provide a way to catch up once your finances are back in order. A repayment plan is an agreement to spread the past due amount over a specific period of time.

    Here’s how a repayment plan works:

    • The lender spreads your overdue amount over a certain number of months.
    • During the repayment period, a portion of the overdue amount is added to each of your regular mortgage payments.
    • At the end of the repayment period, you will be current on your mortgage payments and resume paying your normal monthly payment amount.

    This option lets you pay off the delinquency over a period of time. The length of a repayment plan will vary depending on the amount past due and on how much you can afford to pay each month, among other things. A three- to six-month repayment period is typical.

    To get information about these and other options to avoid foreclosure, see our Alternatives to Foreclosure  area.



    What is the difference between unsecured and secured personal loans?


    #unsecured personal loans
    #

    What is the difference between unsecured and secured personal loans?

    For individuals in need of cash fast, personal loans can be a quick short-term solution. There are two different types of short-term personal loans, secured and unsecured.

    If a personal loan is secured, the borrower has put up an asset, such as property, as collateral if he or she fails to make payments, in which case the lender can possess that asset as replacement payment. Most commonly, the asset is the borrower’s home or car, but it can be anything that he or she owns that is of a high enough value.

    This financial insurance usually allows the lender to grant a loan with a greater amount and a lower interest rate. This option is also beneficial for borrowers with poor credit, as the asset provides a concrete guarantee that the lender will receive payment. It may also provide enough insurance to allow you to pay off the amount over a longer period of time.

    An unsecured loan is an option when the borrower does not have or does not want to risk their property to pose as collateral. Because the lender does not have the financial security of collateral, they often will set higher interest rates and may also charge fees and penalties. The amount the lender grants will also most likely be lower and to be paid back over a shorter period of time.