Small business ideas

Setting up a small business and making it a successful initiative is a task which needs a creative but smart mind. People are doing relatively small work but generating big money from it and on average it is more revenue than a professional is getting from a nice job.

Small businesses employ more people as compared to large companies worldwide so, entrepreneurship is basically the foundation of our economy. While this doesn’t means that small business don’t have any risks, however with proper management, vision and committed behavior one can conquer his/her dreams.

Small business ideas

If looking to start a small business it is always a good idea to understand your interest and skills you already have. By doing this you will identify any niche or category where you enjoy working and then simply use that for earning livelihood. The small business ideas which we share here are mostly home based and needs little capital to start over. However, the success depends upon your skill to find customers, making them happy to build longstanding relations.

1.      Opt for plumbing, electrician, or mechanic business

This all depends on your existing skills, if you have a passion of tinkering home problems then you should use it for earning a livelihood. But its not just as simple, first you have to select any specific niche and then pursue for a degree in that from any vocational institute.

2.      Accounting or financial planning business

If you have some interest in bookkeeping, accounting or tax filing then you must seek out to start accounting advisor business. The demand for financial adviser is increasing within recent years due to general public awareness about financial decision making process.

3.      Starting a fitness center or gym

Starting a coaching business is also a good idea if you have a basic knowledge of fitness. You can also start as an instructor if unable to start your own small business, it all depends on your interests and strengths.

4.      Working as a blogger or writer

Marketplaces like Upwork and Peopleperhour are great places to start over as a freelancer if you have any skills and interest in this type of work. This niche is a great choice in terms of starting a small business with a great edge to expand easily by hiring other freelancers.

5.      Selling your art work online

If you have any skills related to artwork, then you can use it this includes hand painting, crafts, pottery and so much more. You can setup an online store to sell your products or make any social network page to market your products.

6.      Opt-in for car detailing business

If you are a car enthusiast and have great knowledge or interest in car maintenance then you must consider car detailing business. Car detailing becomes quite popular small business recently, and still the demand is growing with time.

7.      Computer repairing or software services

Interested in computers and have some knowledge in IT, then you must consider different categories of this field to start up a small business. This include but not limited to photo editing, composing, spreadsheets, network security, software troubleshooting and even computer repairing tasks.

8.      Event planner

People having interest in event designing and management must consider this field. With a little finance one can easily start a small business by using his/her personal skills and knowledge to meet the customer requirements and expectations.

9.      Rental property management business

Typically areas where people only come to spend vacations often hire people for the property management and caretaking. Such a responsibility sometimes also require few maintenance duties but you have to collect rent, advertise any available property and manage other things on behalf of owner.

10. Starting with a teaching business

Having any exceptional grip on certain subjects or can speak multiple languages then you must consider starting over with a tutoring business. It all depends on you skill set, you can also consider any enrichment activity to get involved in a small business which may include music lessons, yoga, gymnastics, swimming etc.

Factors affecting interest rate

Every personal loan applicant gets a different but personalized interest rate which is influenced by a number of factors. No matter you are looking for debt consolidation, car financing, or medical loan each person will get a different rate.

How my interest rate will be affected by different factors

Each lender has its own custom methods to measure the risk levels in any given application. A higher rate will be offered to people with bad credit or large amount then you actually deserve. The most considerable factors are;

  1. Credit profile
  2. Type of loan

Factors affecting interest rate

How interest rate is affected by credit profile or credit history

A credit report is used to determine the level of risk involved when giving you a loan. Each financing company looks in to different aspects of a credit report but here we will discuss the most crucial and important points.

  • Missed Payments & Charges: If someone have a recent history of skipping payments or late payments, then it is a strong indicator that he/she will do same in future. Lenders typically do not give any room for unexpected situation or anything else. So, one should make it sure to keep on track with the payments as it can affect you in future.
  • Debt/Income ratio: D/I ratio determines the monthly debt amount against your given monthly salary or income. This helps to measure the convenience and probability that you will pay off the debt in future.
  • Short credit history: This means that either you have very little credit history or no track record at all, so its very difficult to guess how the person is going to handle the payments.
  • Credit Utilization ratio: It is the amount of credit you are using against your available credit limit. If this ratio is higher than 30% then the lender typically consider a person less responsible and at higher risk of financial uncertainty.

All the above factors are considered as most important to take your credit score at the height of sky or down to earth. Few factor will influence your credit score in relatively short manner however, other may affect you badly and will pertain for a bit longer. However, credit score can be improved with some efforts but it varies person to person. People with short credit history often have to strive for a bit long to make some history i.e. for 2 or 3 years.

How interest rate is affected by loan type

There are two types of loans available in the market namely

  1. Secured loans
  2. Unsecured loans

If anyone applies for a secured loan while offering any collateral as a guarantee, then typically the lender will take such case with low risk involved as there is a guarantee in case borrower is not able to pay back. Such an applicant will get a lower interest rate. While on the other hand unsecured loans are easily available and the process is quite simple. Anyone can apply and get an approval for unsecured loan but he/she must needs an average credit score. As there is no collateral in such loan types therefore, the risk is higher and so is the rate of interest

Common secured loans

  • Home equity loans
  • Auto equity loans

Common unsecured loans

  • Personal loans
  • Credit cards
  • Payday loans

Conclusion

Your credit score and type of loan can affect your rate of interest directly. Therefore, it is always a wise move to go for debt consolidation and pay your credit card bills by using a personal loan at lower rates. Most often such moves help a person to save almost thousands on bills in terms of interest payments.

establish a small business by personal finance

establish a small business by personal finance

Getting approval for funds is almost impossible for a startup business, especially when there is no physical location or office is available. However, personal loans can be an option as they are available to individuals and there is no need for collateral.

Moreover, personal loan approvals are influenced by credit report and scores. Although you have to fulfill the eligibility criterion to get your funding however, you are not required to come up with a business plan as it is must with a business loan.

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credit report freezing

A credit report freezing is basically a restriction where one can prevent others to access the credit report. This feature helps a person to control the financial information and prevent other people to see your credit score or other details by using publicly available reports from credit agencies.

Credit freeze helps to make the identity theft more difficult and protect the consumer in respect of both financial and moral terms.

TIP: A credit freeze never ever affects the credit score. Feel free to go with this option if you have any concern about your privacy or identity theft. Typically, every mortgage, lending, and credit card companies buy your information from credit bureaus whenever you apply to get their services. There are only 3 popular credit bureaus which provide credit information in United States – Equifax, TransUnion, and Experian.

Every financials institute first collect info about your credit profile before making application approval. A credit freeze is helpful to prevent fraudsters from using your identity to take out mortgage or any other loan product by using your profile and name.

Credit Freeze is considered as a strong move for people experiencing any data breach. As this helps prevent others from getting or opening any new debt application. So, if any person tries to use your Social Security Number he will be declined automatically by financing institutes. But this method only works for new account opening and will not affect existing lines of credit and other options which do not require any credit check.

When credit report freezing should be initiated?

Some specific situation really demands a credit freeze to make your identity safe and prevent any possible loop hole for identity theft. Here are some of prime reasons where one can initiate a freeze to protect his/her self.

  • When anyone becomes a victim of identity theft
  • During any occasion of a major data breach
  • You have lost your credit card or there is a risk someone can use your card number
  • As a precaution you want to keep yourself away from identity theft
  • You are using services form a credit monitoring agency

How to place a credit freeze at each credit bureau

To initiate a credit freeze you have to follow separate steps for each credit bureau and the steps are available at official websites. Credit freezing can be either done via using a phone helpline or at the official website. Another option is to mail your application along with required documents at the given address available at the end.

You have to provide some personal information to initiate a credit freeze. This include your Name, address, phone number, email, date of  birth, SSN, Identification proof and a payment source (i.e. credit card or account).

Each credit agency issues a unique PIN (personal identification number), which allows you to unlock your report when you are looking for any type of service like loan or credit card from financial institutions.

Each credit reporting agency will send the PIN via mail, you can preserve it at a secure place to avoid any future stolen/lost scenario. The cost of making a credit freeze varies state wise, but typically it is around $10. All credit bureau offer free credit freeze to people who are victim of identity theft.

A person is allowed to lift a credit freeze temporarily so that he/she can apply for any required product conveniently. Moreover, you can also remove credit freeze permanently and then banks can query your report without any restriction.

 

Equifax Security Freeze
P.O. Box 105788, Atlanta, Georgia 30348

 

Experian Security Freeze
P.O. Box 9554, Allen, TX 75013

 

TransUnion LLC
P.O. Box 2000, Chester, PA 19022-2000