The secured loans and the unsecured loans are part of personal loans. But, both are opposite to each other. So, people may fall in a doubt which one to avail. Well, this is not a complicated decision to make if you know detailed attributes of these loans. And when you can identify which one will suit you best, you can certainly choose which one is better for you.
Secured loan: detailed attributes:
The secured loan must require an asset on which the loan can be backed by. When you are intending to get a secured loan, you will have to keep an asset as collateral. The asset must have to be as valuable as the loan balance. On this deal, you can get access to the loan.
The way you pay the debts back to the creditor, the asset will reach equity. The failure to pay the debts back will snatch the asset from you. The creditors will sell the asset and thus make the repayment done by selling that!
So, you can assume that being a borrower, you will have to carry 100% risk of the loan procedure. The creditors will not take any risk. Nevertheless, apart from all these risk matters, there are some important facts which can turn out to be favorable for you.
In fact, as you are securing the loan all alone by yourself, the creditors will facilitate you with the option of negotiation. So, you can negotiate your best to settle the best deal in terms of availing the net lend short term loan. So, even if the risk is 100% for you, you have the option to make the debt repayment affordable. This is certainly a fact which can reduce the risk.
Unsecured loan: detailed attributes:
If you are intending to get an unsecured loan, you must have to have better credit score. The better credit score will facilitate you with a favorable unsecured loan. The creditors of the unsecured financing measure the eligibility of the debtors in accordance with the credit scores. So, better credit score is needed. When you will have a better credit rating, the interest rate and terms will be favorable for you.
But, when you will have lower credit score, you will probably not going to be eligible for the loan. And even if you do, the interest rate may tend to be too high. In that case, there remains greater possibility that the debt repayment can turn out to be unaffordable for you. So, the unsecured loans are best for you when you have better credit score.
The bottom line:
Understanding the attributes from both sides, you can certainly identify that how much this is important to choose the perfect kind of financing for you. So, think which kind of financing will suit you best. And then decide whether you are going to take a secured loan or an unsecured loan. Both loans are great. But, the financing must suit you first!
You may think whether the credit card companies want us to stay in debt or not. Well, even if the credit card companies want that to happen with the debtors, they don’t have any smarter way to show it. Rather, they adopt pretty anomalous way of representing this fact. For such tactics, some people go through mistrustful strategies and on the contrary banks keep on enhancing the amount of debt payment without even warning them.
A lot of fees charged:
In fact, while continuing with the debt, the debtors are being charged with annual fees, over the limit fees, late fees, international exchange fees and even more. And all these actually ties up the debtor’s neck in the long run. Consumer’s personal finance heads towards disaster for this codswallop strategy of the credit card companies.
Consumers keep on blaming and questioning over these policies. Basically, if you take a look you will find that most of the Americans hold credit card debt over their shoulder. And eventually, these people are being blamed in a way that they created the situation for themselves. They are assumed to be the responsible one for this worse situation of credit card debt. But, blaming the consumers seems nonsense in many cases!
Lack of a perfect combination:
Basically, when a consumer grabs a credit card for day to day use, they get attracted with the advertisements provided by the company. But, they don’t even put effort to understand the fact. Certainly, the credit card companies run their business with this procedure. And for the bad credit service they offer to the consumers, they can ask interest over the expenditure the consumers make.
There is nothing wrong with this procedure. But, charging interest and fees and the debt management requires a perfect balance so that this doesn’t turn out to be a trouble for the consumers. So, a proper combination of interest rate and minimum monthly payment is needed while dealing with a credit card. And in this procedure, the company and bank will have to extract profit. But, such perfect combination is lacked in the procedure of credit card use and lending procedure.
A morbid activity and procedure for both creditors and debtors:
So, analyzing this scenario, this is certainly proven that the credit card companies actually want the debtors to stay in the debt and they stuck them in a procedure where the debts tend to increase. But, this procedure is dangerous for the company on the contrary. In fact, the credit card company and bank creates a situation where the debtors are forced to default. And eventually, this enhances the chance of bankruptcy.
Once the debtor is bankrupt, the creditors are obliged to forgive the debts. And if the debt is not being forgiven, the creditors need to settle the debt with a minimum amount. And that turns out to be a greater loss for the creditors. So, increasing the debt amount is certainly a foolish idea which is adopted by the credit card companies
If you have been trading forex a considerable about of time, chances that you might have come across requotes depending on your broker. Requotes are a common phenomenon in forex trading and despite the fact that traders don’t take nicely to requotes is something that is unavoidable. Requotes in forex trading is defined as when you enter a market order but the broker decline your order and quotes a new price. For example, if EURUSD was trading at 1.35501 and you wanted to sell at market, one would usually expect the trade or sell order to be filled at market. However, with a requote the order is declined and instead you are shown a different or a new price level from your broker.
There are many reasons why requotes occur. In most cases requotes occur when markets are fast moving and by the time you place an order, the market has moved quite significantly. This can happen during times of news releases where price tends to be very volatile. Another reason for requotes could be slow Internet connections which delays in relaying the order information. Even a small delay of a few milliseconds in a fast moving market can result in requotes.
Besides the above two reasons, requotes can also happen more frequently in cases where the broker acts as a market maker, or in other words operates an in-house dealing desk where the broker becomes the counter-party to their customer’s trades. In such an event, the broker would obviously like to requote a higher price than what you would prefer to buy or a lower price from what you would prefer to sell.
Although technology now-a-days has improved, requotes, for whatever reason they occur is something that still continues to this day. Depending on your trading strategy, requotes can be quite detrimental towards your trading strategy. Requotes in forex usually tend to affect scalpers who trade on smaller time frames and during key market events. Sadly, there are quite a few forex EA’s as well which scalp the market, but their success is limited when requotes become a common phenomenon.
How does ForexFalcon EA avoid requotes?
The ForexFalcon EA’s trading strategy and logic is designed such that factors such as requotes or spreads or even slippage don’t play a major role. Because trades are taken on the basis of the prevailing trend on the daily chart time frames as well as considering support and resistance levels, the ForexFalcon EA can trade regardless of the above factors mentioned. This makes the ForexFalcon EA highly successful with its robust trading logic and not being influenced by any interfering factors from the broker or the market itself.
When purchasing any EA, traders might have come across disclaimers where the respective EA developers mention that the success of their EA is dependent on the broker’s spreads, slippage and requotes, thus subtly putting the performance factor onto the trader, which makes it easy for the other such EA’s to always fall back upon a reason for not performing as advertising.
With ForexFalcon, this is not true. The ForexFalcon EA works regardless of your broker’s trading conditions thus guaranteeing the monthly 7% profit that has been achieved in forward testing the expert advisor. Traders who fail to make a profit after using the ForexFalcon EA during the first month can claim a refund as well. To learn about the ForexFalcon EA, click here.