How Do You Choose a Loan for Bad Credit?

How Do You Choose a Loan for Bad Credit?

  • Secured loans: There are many secured loans for bad credit, including mortgages, auto loans, home equity loans, and home equity lines of credit. A secured loan for bad credit is appropriate if you need to use the money to buy a car or a house, or if you want to use the money to repair or improve your home. Secured loans are usually the least expensive type of bad credit loan since it’s backed by collateral.
  • Unsecured loans: Many lenders offer unsecured personal loans for bad credit, including banks, credit unions, alternative online lenders, and peer-to-peer (P2P) lenders. installment loans KS You won’t need to provide any collateral for this type of loan (e.g., your car or home), and these loans are usually repaid in no more than two to seven years. However, since there’s no collateral, an unsecured loan is often more expensive than a secured loan.
  • Credit cards: There are many different credit cards for bad credit. Some of these credit cards even come with features to help you rebuild your credit. This type of bad credit loan can be helpful if you need to have a credit card on hand and you’re can pay it in full every month. Keep in mind, the APR on credit cards is usually high, and so you should do your best to repay the balance as quickly as possible to avoid high borrowing costs.
  • Cash advances: If you need cash, many credit card issuers offer cash advances so you can access the funds you need quickly. Banks and other alternative online lenders also sometimes offer short-term cash advance loans. Cash advances are more expensive than secured or unsecured personal loans and often carry very high-interest rates.

For these reasons, it’s best to avoid payday loans and seek another funding option

Keep in mind that payday loans come with extremely high-interest rates, making them risky loans that are extremely difficult to repay. Continue reading How Do You Choose a Loan for Bad Credit?

The cash flow statement can be presented in two ways: the direct and indirect methods

The cash flow statement can be presented in two ways: the direct and indirect methods

Both methods result in an ending cash balance which ties to the balance sheet. The main difference between the two methods is their presentation. Breakout between the two methods are as follows:

  • Direct Method – This method uses actual cash inflows and outflows from the entity’s operations, such as revenue received from students for tuition, instead of modifying the operating section to include non-cash items such as depreciation.
  • Indirect Method – This method uses increases and decreases in balance sheet line items to modify the operating section of the cash flow statement. The beginning line item in operating activity is always the net income for the period pulled directly from the income statement and all other increase and decreases in operating activity are then pulled from the balance sheet. This method is based on accrual accounting and includes cash inflows and outflows that are recorded in the general ledger, but the cash may not have been received or spent.

For most individual entities at Indiana University, there will be very little activity flowing through the financing section of the cash flow statement other than activity for the income statement transfer object codes – 1699 and 5199

For internal presentation of installmentloansgroup.com/installment-loans-oh/ the cash flow statement in the Controller’s Office Reporting Tools, the indirect method is used and users do not have the option to change the cash flow presentation method. For internal purposes, users will not be asked to use the direct method. Refer to Indiana University’s Consolidated Annual Financial Reports for a more detailed example on the direct method presentation.

Below is a comparative example of the direct and indirect cash flow methods of presentation, noting that the ending cash balances remain the same in either method. Continue reading The cash flow statement can be presented in two ways: the direct and indirect methods