What Constitutes A Financial Emergency?

 What Constitutes A Financial Emergency?

Personal finance tips always include having an emergency fund ready for use during financial emergencies. But what is a financial emergency, and how do you know when it is acceptable to dip into your emergency fund? More importantly, can we help you with financial emergencies?

What Is A Financial Emergency?

An emergency fund is savings that you ideally use only on urgent, unplanned situations. Thus, a financial emergency is an urgent and unplanned situation. No, an item you suddenly want to buy is not a financial emergency, and neither is a vacation with your friends, despite the seemingly urgent and unplanned nature of these things. 

A financial emergency is an unexpected life event that prevents you from meeting your and your family’s basic needs. An example here is if you are laid off, like what happened to millions of Americans at the start of the pandemic. Since your salary is cut off, you can dip into your emergency fund to cover your basic living expenses. Another possible financial emergency would be a hospitalization if you don’t have health insurance. 

In summary, a financial emergency is an expense involving your basic needs when a life event prevents you from having money to pay for these. Not having money for your rent because you spent it on a new phone or on vacation does not constitute a financial emergency!

What To Do During A Financial Emergency When You Don’t Have An Emergency Fund?

Having an emergency fund is all about being prepared for any curveball life may throw at you. But, let’s face it, it’s quite difficult to save up for an emergency fund when you’re also paying for various debts. If this is your case, you are not alone —40% of Americans don’t have an emergency fund, too. What can you do, then? You can use the federal and public sector employee loans from us. 

We offer convenient, affordable loans for federal employees and public sector employees. It’s perfect for covering financial emergencies because it is fast, does not require credit checks, and has stress-free repayment schemes. Most importantly, Access Loans’ employee loan programs offer low interest rates. You can cover your financial emergencies with no worries even without an emergency fund.

Conclusion

An emergency fund is a crucial savings account that should only be used for financial emergencies. Financial emergencies are expenses related to your physiological needs that you cannot cover because of an unexpected and unstoppable life event. 

If you don’t have an emergency fund at the moment, you don’t need to live in fear. You can rely on Access Loans to help you with your financial emergencies.

You should only use your emergency fund for financial emergencies. But if you don’t have an emergency fund, we can help you through it.

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

What Is Credit Card Consolidation And How Can It Help You?

 What Is Credit Card Consolidation And How Can It Help You?

Want to pay off all your credit card debt? Find out what credit card consolidation is, if it will work for you, and how Access Loans can help.

Does thinking about how much you owe on your credit cards give you a headache? Has it been hard meeting your minimum monthly payments? Does it seem like you’re not making a dent in your outstanding balance? Perhaps it’s time to consolidate your credit card debt with an Allotment Loan from us.

What Is Credit Card Consolidation? 

Credit card consolidation is similar to refinancing. It involves taking out a loan to pay off all your credit card debt. So, instead of making multiple payments every month, you only pay one loan. Doing so will not only bring your balance to zero and keep your outstanding balance from incurring high interest, but it also makes eliminating your debt more manageable. After all, it’s easier to pay off only one debt than paying three, four, or more. 

Credit card consolidation has no adverse effect on your credit score since you will be paying off all your debt. However, for credit card consolidation to be advantageous, you need to find a loan that offers better terms and lower interest rates than credit cards.

Should You Consolidate Your Credit Card Debt?

Credit card consolidation may be a good idea for you if you have been carrying a balance in more than one of your credit cards for a year. Another gauge is whether you have been having difficulty paying your minimum monthly payment. The ultimate test is how much you will end up paying when you consolidate your credit card debt versus how much you pay in total when you pay only the minimum amount. If you will save by consolidating credit card debt, then it is a sound choice.

Why Apply For Access Loans?

You don’t want to make the personal loan mistake of applying for a loan with unfavorable terms. When consolidating credit card debt, it’s important to choose a loan that offers lower interest rates than your credit cards at the minimum. Even with bad credit, it is possible to get a loan with better interest rates and payment terms so you can easily pay off your debt. If you are a federal or public sector employee, here are the reasons why you should apply with Access Loans:

• Better interest rates

• Manageable payment schemes

• No need for a credit score 

• Minimum paperwork required

• Fast and convenient application process

• Accessible in more than 19 states (and counting!)

Access Loans’ allotment loans are tailored for federal and public sector employees, designed to help with any of your financial needs. You can use allotment loans any expenses, such as credit card consolidation. With Access Loans, it’s easier to get approved for an allotment loan, and you can guarantee that you will get better terms. 

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

Why Your Credit Score Declined And How To Fix It

 Why Your Credit Score Declined And How To Fix It?

What happened to your credit score? Understand why your credit score declined and what you can do to improve your financial situation.

Your credit score has a significant impact on your finances. You may be wondering why your credit score is declining or how you got a bad credit score altogether. Let us clear all these up and discuss how you can improve your credit score.

Possible Reasons Your Credit Score Declined

1. You Have Late Payments

Payment history is one of the most significant factors in calculating a credit score. So, if you often make late payments, this likely affected your credit score. Try to avoid late payments, or if it is unavoidable, do it within the 30 after the due date. Some credit providers report late payments only after 30 days.

2. You Have A High Credit Utilization

Another significant factor in your credit score is your credit utilization ratio. A high credit utilization ratio means you use up most, if not all, of your available credit. So, if you haven’t been paying off your balance, or if you recently bought an expensive item on credit, your credit score probably declined.

3. You Closed Out An Old Account

The length of your credit history also affects your credit score. Thus, closing an account, even if you rarely use it, may harm your score. 

4. You Closed A Credit Card Or It Was Cancelled

Closing out an old credit card has the same effect as closing an old account, especially if you’ve been paying off your balance regularly. However, another impact of closing a credit card is it lowers your total available balance, which increases your credit utilization rate.

5. Foreclosures, Bankruptcies, Collection Accounts

Adverse events like foreclosures, bankruptcies, and collection accounts negatively affect credit score significantly—these mean that you are not in a stable financial situation. These factors are serious and may take time to clear from your record.

6. Fraudulent Use Of Your Accounts

It’s important to double-check that there are no suspicious activities in your accounts. You don’t want thieves messing up your credit utilization and making it hard to pay off your balances.

3 Ways To Fix Your Credit Score

1. Request Credit Limit Increase

A credit limit increase will lower your credit utilization ratio. Just make sure not to use up the additional credit—keep it below 30%!

2. Fix Credit Report Errors

You should monitor your credit score periodically to know where you stand. Doing so will also help you correct any errors in your report like fraudulent information and misreported balance. Generally, it helps you know whether you’re doing well.

3. Pay Off Your Balances

If you have high credit utilization rates, you need to pay off your balances. You can do it slowly or you could consolidate your credit card debt and pay them off at once. Paying off your credit card debt is possible if you get a federal and public sector employee loan from Access Loans

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

5 Toxic Money Habits You Should Ditch In 2021

 5 Toxic Money Habits You Should Ditch In 2021

Managing your personal finances, or “adulting” as the millennials call it, is tricky. The typical American has so much responsibility—rent, bills, student loans, credit card debt, mortgage loans—that aiming for financial stability seems an impossibility. However, it’s not entirely impossible to change up your financial status. Achieve your financial goals by ditching these five toxic money habits and a little boost from Access Loans.

1. Not Tracking Your Expenses

More than not having a budget, not tracking your expenses, leads to terrible spending habits. You don’t know where your money goes so you may end up coming up short come due dates, or you might find yourself maxing out your credit cards. Tracking your expenses shows you your spending habits and what you need to change so you can start developing healthier money habits. 

2. Relying On Your Credit Card Too Much

Credit card drives you toward spending more than you can afford. You need to keep in mind that whatever you put in your credit card costs more because of the interest rate. If you find yourself paying only the minimum amount for your credit cards, that is bad news. This means you’re already living beyond your means, so your debt is piling up. Try to keep your credit utilization rate at 30% or lower. This will not only curb your shopping habits but will also keep your credit score in check.

3. Lack Of Financial Goals

Simply saying that you want to be financially stable is not enough. It’s an abstract goal that could mean anything. If this is your only goal, then no wonder you’re wandering around with bad money habits and lots of debt. Start concretizing your financial goals—when do you want to pay off your debt? How much money do you want to save by what age? Set your financial goals then start making moves toward them.

4. Not Having A Savings Account

An all-too-common scenario is you keep a percentage of your salary in your account and thinking it will be your savings, but you end up withdrawing it before the next payday. Indeed, it’s difficult to save up when you have such easy access to your savings. Create a separate savings account that will serve as your piggy bank. This way, it will not be as easy to dip into your savings account.

5. Not Strategizing Your Debt Payment

Debt is a major obstacle to many Americans’ financial stability. Chances are, more than a comfortable amount of your salary goes to debt payment, and with little progress to show. This is because you are not strategically paying your debts. Some experts advise either conquering bigger debts first while others suggest paying off the smaller debts first. Another effective strategy is consolidating all your loans and refinancing your loan.

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).