Is Your Business Protecting It’s Intellectual Property? An Overview of Patents, Trademarks and More

Intellectual Property is an important asset for any business. Most businesses have some form of intellectual property, whether they realize it or not. Be it an invention, a logo, an industry article, a marketing plan or whatnot, it is property that should be protected and maintained to provide your business with the optimal benefits available.

What is Intellectual Property?

In general, “Intellectual Property” refers to the creations of someone’s intellect that are generally intangible but are granted certain ownership rights under the law that are similar to that of tangible property rights. By law, owners are granted certain rights to use and benefit from their intellectual property to the exclusion of others. Common types of intellectual property include patents, trade secrets, trademarks and copyrights.

Some intellectual property can embody more than one type or form. In such an instance, a choice between intellectual property protections should be considered. Of consideration should be (1) the type and characteristics of protection a particular form will provide, (2) the ease and cost of obtaining the desired form, (3) the cost of maintaining and protecting the particular form, (4) the intended use of the intellectual property and therefore whether the form will give the protection needed to meet the company’s objectives, and more.

Understanding the interrelationship between the various forms is important to not only determine which form should be sought, but also how it will function within the company. For example, a patent right is granted for a specific period of time, while a trade secret may be maintained forever. However, a trade secret is lost once it is made public. Therefore, if public disclosure is necessary for obtaining any benefit from intellectual property, then a patent would be preferred over a trade secret, even if it will expire. However, if public disclosure is not necessary, then a trade secret may be the preferred form, since it can be for an indefinite period, so long as it is properly maintained and shielded from public disclosure.

What is a Patent?

A patent is an ownership right granted by the government on a particular product or process that excludes others from copying, making, using, selling, or importing the invented product or process covered by the patent. The policy behind patent rights is to encourage the creation and invention of new products and processes by providing the owner protection from losses associated with investing tremendous resources into developing an invention only to have it immediately copied, produced and profited by someone else. The patent gives the creator a sort of monopoly over the invention for a period of time that should be sufficient to provide the creator an opportunity to receive a return on their investment before a competitor, who did not have to incur the expense of the invention, is able to copy and compete with a substantially similar product or process.

There are basically three types of patents; utility patents, design patents and plant patents. Utility patents usually include processes, machines, manufactures or compositions of matter. However, they do not include abstract principles, mathematical formulas or aesthetic or emotional reactions of human beings. Design patents provide protection for the ornamental aspects of a product. However, if the design is primarily functional rather than ornamental then it will not qualify for patent protection. A design may also be copyrightable, however unlike copyright protection, the design patent will not cover the design if it is applied to a type of product that is not covered by the patent. Plant patents encompass a very narrow area of patent law. Only asexually reproducible plants are patentable. Plants reproduced by seeds are not.

Because of the exclusive rights patents impose on the market place, they are granted discriminately. To be patentable, the invention must possess (1) utility, (2) novelty and (3) non-obviousness. “Utility” means that the invention must be operable, capable of use or able to achieve some sort of purpose. “Novelty” means something that is not reasonably “anticipated” by the public or an average person. To be “non-obvious” a product or process would not be obvious to a person of ordinary skill in the pertinent art at the time of its invention. The invention cannot be a mere minor variation or modification of an old process, product or technology.

What is a Trade Secret?

A trade secret consists of confidential information that has been developed by an owner that gives the owner a competitive advantage in the market place. It must (1) have an identifiable actual value, (2) be secret and (3) be something the owner takes reasonable steps to keep secret. Examples of information that may qualify as trade secrets include customer lists, business processes, pricing information, marketing programs and more.

What is a Trademark?

A trademark is defined by law as “any word, name, symbol, or device, or any combination thereof… used by a person… to identify and distinguish his or her goods, from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown.” Similar to trademarks are “service marks” which are marks that relate to services as opposed to a product, “collective marks” which are marks that relate to a group or organization, and “certification marks” which are marks that relate to a government or private entity that certifies products or services.

To qualify for trademark protection, a mark must be “distinctive”. There are basically five categories of “distinctiveness”. The strongest is “fanciful” marks. They are marks that are basically a made up term, like “GOOGLE” or “KODAK”. Fanciful marks are the easiest to receive trademark protection, assuming there are no similar marks in relation to similar products or services. The next type of mark with the strongest likelihood of obtaining trademark protection is “arbitrary”. An arbitrary mark is one that is an actual word, but has no meaning in relation to the product or service attributed to it. Examples of arbitrary marks would be “STARBUCKS” for a brand of coffee, “AMAZON” for a bookseller or “APPLE” for a computer company. “Suggestive” marks can receive trademark protection but may be more difficult to trademark if they are too “descriptive.” They include marks that merely suggest or hint at the nature of the goods or services they are related to. Examples would include “COPPERTONE” for sun tan oil or “HANDIWIPES” for dust or cleaning cloths.

“Descriptive” marks are much more difficult to obtain trademark protection. Descriptive marks are those that provide an immediate idea of the ingredients, qualities or characteristics of the goods or services. For example, “CLAIMS MAGAZINE” for an insurance industry magazine or “SOAKER” for a toy water gun. To qualify for protection, a descriptive mark must acquire a “secondary meaning” to the point where the public primarily associates the mark with a particular seller or owner. Otherwise, a descriptive mark will not receive protection. The intentional misspelling of a descriptive term does not change it from descriptive to suggestive.

The weakest category of “distinctiveness” includes marks that are “generic.” A generic mark is one that is simply a common name of the goods or service. A generic mark cannot receive trade mark protection. Some examples of marks that were found to be generic include “GOLD CARD” for a credit card and “HOAGIE” for a sandwich. Sometimes a mark can be so commonly used that while it was not generic when adopted, it can become generic. Examples or trade marks that were at risk of becoming generic include “COKE” for a carbonated soft drink or “KLEENEX” for facial tissues. Although the marketing advantage to having your trademark become so common that it begins to take on a generic meaning could be desirable (“Just ‘google’ it”, meaning research it on the Internet, or “Will you ‘xerox’ this?” meaning make a copy on a copy machine), it can also cost you your trademark protections. Therefore, vigorous marketing efforts must be maintained by a trademark owner to prevent its mark from become so generic that people stop associating the name with the brand owner.

What is a Copyright?

A copyright is a protection that is granted to “original works of authorship.” It generally includes works that are literary, dramatic, musical or artistic. Copyright protection is automatically conferred on an original work and includes the exclusive right to control who can use, copy or make works derivative of the original work (with a few exceptions). However, copyright protection does not extend to an idea, procedure, process, system, method of operation, concept, principle or discovery no matter what form they take. While a work does not need to be registered with the government to receive copyright protection, if there is an infringement, then the type of damages that can be legally recovered are limited and less than what is available if the work is registered.

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Energy Efficiency – Superior 7-Step Plan For Home Energy Saving

As energy prices continue to rise there has never been a more crucial time to maximize the energy efficiency of your home. Using some simple techniques and an organized approach you can soon significantly reduce your home energy consumption which will help lower your energy bills.

Tired of ever increasing energy bills? Feel you want to help do your bit to help protect our incredible planet? Well here I have devised a ‘Superior 7-Step’ action plan to quickly promote your home to the top of the home energy efficiency tables. Using this program you will soon reap the rewards of slashed energy bills.

Based on the successful practices of the U.S. ENERGY STAR partners, these guidelines for home energy efficiency can assist you in improving your home’s energy and financial performance while distinguishing you as the most environmentally friendly household on the street. ENERGY STAR is a U.S. government backed program helping businesses and individuals protect the environment through superior energy efficiency.

STEP 1: Commit to Continuous improvement

People who see the financial returns from superior home energy efficiency continuously strive to improve their home’s energy performance. Their success is based on regularly assessing energy performance and continually implementing steps to increase home energy efficiency. No matter the size or type of household, the common element of successful energy management is commitment. You should allocate a small amount of your monthly budget to achieve continuous improvement which will make you huge savings on your energy bills in the longer run.

STEP 2: Assess Your Home Energy Efficiency (Energy Performance)

Understanding your current and past energy use is how many families identify opportunities to improve energy performance and gain financial benefits. Assessing performance is the process of evaluating energy use for all major household functions and establishing a baseline for measuring future results of home energy efficiency efforts. You should prioritize poor performing facilities and equipment, such as tumble dryers, for immediate improvement.

STEP 3: Set Goals

Performance goals drive home energy efficiency and promote continuous improvement. Setting clear and measurable goals is critical for understanding your intended results, developing effective strategies, and reaping the financial gains. Communicating your goals will help motivate the rest of your family to achieve maximum home energy efficiency. Make sure goals are optimistic yet realistic.

STEP 4: Create Action Plan

With goals in place, you are now ready to increase your home energy efficiency. This should be regularly updated to reflect recent achievements.

Decide what you are going to do? How you are going to do it? and, Who is going to do what? Bear in mind your budget. Brainstorm with other family member so everyone can get involved – it’s especially good for children to get involved as young as possible.

STEP 5: Implement Action Plan

Carry out the changes, discuss the benefits and see your bills fall. Motivate your family to achieve the goals you set by offering incentives or treats for anyone who comes up with a new idea.

STEP 6: Evaluate Progress

Evaluating progress includes reviewing the activities carried out as part of the action plan as compared to your performance goals. Use the results to set new home energy efficiency goals. Identify additional savings opportunities as well as non-quantifiable benefits such as a cosier living room, a happier family and being able to have more money left over to spend on family luxuries.

STEP 7: Recognize Achievements

Take a step back and appreciate how you have increased your home energy efficiency. Give yourselves a pat on the back and put the extra money you’ve saved towards something you deserve like an extra family holiday. Feel good about doing your bit to help make your home more eco-friendly, lowering your carbon emissions and helping to protect the global environment.

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Tips For First Time Car Buyers to Get Online Auto Loans

What Are First Time Buyer Auto Loan Programs?

Whether you are buying your first new or used car or are planning to apply for online auto loans for the first time, understanding how automobile dealerships and lenders see you, and what you can do to improve that image, can help you to be prepared in advance of applying for online auto loans for the first time, so that you will be in a better position to get approved for an car loan with a lower interest rate and better terms. After all, you want your monthly auto loan payment to be the lowest it can possibly be, right?

Who might apply for first time buyer car loans? Some people that first time auto loan programs can help could be:

* Teenagers, personally buying their first car in their own name will need to apply for first time buyer auto loans as they have no credit history behind them

* College students living away from home for the first time frequently have not had time to build a credit history before leaving for school and so will often need to apply for first time buyer car loan programs

* People that have always paid cash for a vehicles in the past, but now want to upgrade to a newer one or are forced to take out automobile loan because they do not have the cash funds to buy a vehicle at present

* Immigrants that have moved here from other countries, and thus have left their credit histories behind, may need to apply for first time auto loan programs in order to start building a credit history

Not All First Time Auto Loan Borrowers are in the Same Boat

The first thing to realize is that not all first time borrowers are in the same boat. There can be a lot of differing factors that can either work in your favor, or against you when you are applying for online auto financing. For instance:

* Are you employed full or part time? If you are not employed, do you have an income? Not being employed is not necessarily a game stopper, but if you plan to have your name on the title of the car and on the auto finance, you will need to demonstrate that you have either a job, regular income, or other funds that you will be paying your monthly auto loan payment from. Of course, the higher that your income is, the easier it will be to qualify for lower interest rate first time buyer auto loan programs.

* Do you have no credit history, because you are just starting out your financial life, or do you have a bad credit history/low credit score because you have had a few credit slip-ups in the past? Dealerships will certainly work with you in either case. However, if you have a low credit score, depending on how bad your credit history is, the dealership may be inclined to offer you a higher rate of interest and a lower credit limit on first time buyer auto loans as opposed to someone that has not made any credit mistakes in their financial life yet.

Note, see our recent article entitled “How to Get Approved for an Auto Loan with Bad Credit if you have Low Income” to learn how to get unwanted items removed from your credit report to bring up your credit score.

* Will you have any funds available to make a down payment on your auto loan? Whether you are applying for first time buyer auto loans, or if you have had auto loans in the past and just need another one now, what every auto dealership or lender is going to take into consideration when assessing your application and the items on this list is; how much of a risk are they taking in making an auto loan to you and what if anything can they get you to do to mitigate that risk. Making a down payment is one thing that you can do to mitigate the dealership’s risk, making them more likely to quickly approve your automobile loan and to give you a more reasonable interest rate. In addition, a down payment will obviously bring down what you owe on the vehicle and so your monthly payments will be lower and more affordable. Down payments are usually not required to get online auto loans, but they can be very helpful when negotiating with a dealership. Even a small down payment can make a difference in how the dealership sees you.

* Is there someone that you know that would be willing to cosign for you on your auto loan? Cosigners are not required in order to get online auto loans, even if you have bad credit or no credit history at all. However, the use of a cosigner can save you a lot of money and make the application process go much more quickly and smoothly. A cosigner is someone that puts their name on your loan application along with yours, guaranteeing that the loan will be repaid. The limit and maximum amount of your automotive loan will be determined by the cosigner’s income and credit standing, not yours. So, if you choose to have a cosigner, make sure to pick one that has a high credit score. With a cosigner, there is really no need to look for first time buyer auto loans because you will be treated by the dealership as though the higher credit score and income were yours.

* What is the ratio of your monthly housing payment as compared to your income? A little known fact is that auto dealerships and lenders pay attention to this number. For instance, if you make $1,000 per month income, and your monthly housing cost is $300, then your housing cost takes 30% of your income. Anything over 40% will send up a red flag to the dealership/lender and they may need convincing that you can make your monthly payments on time. Take this into consideration when you complete your auto finance application.

Taking the above items into consideration, you should be able to get a clearer picture of how automotive dealerships and automotive loan lenders see you, and what you can do to control that image, at least to some extent. Once you have submitted your application, the die has been cast and you will see what the dealership offers you at that point.

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Improve Your Poor Credit Score and Secure Yourself a Loan

So you are thinking of getting some extra money to make some urgent home repairs, the porch door needs replacing, along with a new hot water system. Unfortunately you do not have the money in the bank, but neither do you have a secure porch door or any constant hot water.

Have you considered personal loans? A lot of people take out personal loans for this type of repair. Car repairs and even holidays are used by people with their newly acquired finances. Most people have heard that a poor credit score is not a good thing (However even those that have a poor financial history can still get loans). But how do you make a good rating?

One of thing major pieces of advice from experts, before you apply for finance it is best to get a credit report completed from a reputable source. This will give you an idea of the chance of getting your application approved. In the United States of America there are three levels of credit rating, basically the higher it is the better it is.

An excellent rating is above 760, a good rating would be between 700 and 759 and a poor rating would be between 640 to 699. if you are at the top end, 760 and above then there is no point in making your rating any better. However with other ratings it is worth trying to improve as it will help your chances of succeeding in the application.

There does seem to be a bit of a chicken and egg situation sometimes, you need finance but have a poor score,but to improve you need a lender to give you a chance. Well, luckily there are things that you and your family if you have one, can do to improve your rating.

Having a poor rating does not mean you have to be stuck with it, starting to pay the bills on time instead of late or not at all will start to get you on the right path. Some lenders will still give applicants loans even with a low score, but the total given will be lower than usually and the percentage rate will be considerably higher. So you will pay more over the period of the finance.

Families can help too. If a member of your family has a good rating then some credit card companies can add you to that family members credit card as an authorized user, this will help with any poor credit score. Also having a family member with a good rating co-sign the loan could help you get what you need.

Finding the correct lender for your score is a good way to make sure that you are getting what you deserve, if you have a high score you deserve some of the best deals on the market. Instead of going to your bank or card company you can go online and search for a matching company. Companies like this are a good place go to make sure you achieve the best deal.

What are a matching company and what do they do? You enter your details on their online program and your information will be fed to several of their approved lenders, in turn the lenders will then return to the matching company with a list of loans that they are able to offer.

Once the offers come back it is then up to the applicant to choose one and complete all the necessary paperwork. A check will then be received within a matter of days and your new boiler and door fitted soon after.

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Payment Options for Shopping All the Way

Everyone is busy. Busy in shopping online and in the malls. Popular online portals are breaking and making new sale records! All thanks to the convenience and the availability of easy payment options and funds!

Here are few of the factors that are making online businesses a success

Credit Cards: A credit card is plastic money. It is one of the easiest form in which a person gets a personal loan.

All online portals as well as retailers in malls accept credit cards issued by various banks.
Online payment becomes very simple and safe, thanks to the one time passwords generated for such transactions.
A PIN is sufficient for shopping using a credit card at any retail store.

Personal loans for shopping: When we apply for a personal loan, we don’t have to provide the financier with the details of what we want the loan for.

Thus these days’ personal loans are being used to finance shopping.
They can also be used as wedding loans, vacation loans and educational loans.

Payment Processing: As far as payment processing is concerned, the following factors matter to both the consumer and the online retailer.

Uncomplicated manoeuvring on website: It is important for the payment process to be step-by-step and easy to understand. Most websites work on this section very carefully and thus the online shopping experience is satisfactory.

Processing Costs: Processing costs matter to the retailers. More the processing fees they have to pay to providers of payment gateways like Visa, the lesser are their margins. So to have an effective business the processing costs need to be low.
Number of payment options: Multiple payment options should be available for the customer to make payment. This makes the shopping a convenient proposition.
Time taken to process transactions: Processing time not only tests your patience but sometimes also the strength of your internet connection!

Cash on Delivery: This is also known as “collection on delivery.” This is a very popular mode of making payments for shopping in the developing world.

It enhances impulse purchases.
A credit card is not an essential possession for the buyer.
The buyer can check the quality of the product and then pay

So this festive season, do not hesitate to shop and to gift! The availability of funds for shopping is not difficult anymore. Also the convenience of online shopping has brought various retailers to our doorstep. So let us shop all the way!

An easy way of shopping is using a credit card. It forms an integral part of most people’s financial planning. When used in the right manner, it helps reduce financial liability and optimizes financial resources.

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Are Online Personal Loans Good For People With Bad Credit?

While the rise of online lending in itself makes it more convenient for people to apply for finance, is this development a good thing for those who are already struggling? There are companies out there who charge expensive annual percentage rates (APRs), leaving many people in more trouble than when they first started.

But it doesn’t have to be this way. Over the last few years, online lending has earned itself a bad reputation. The internet leaves many people vulnerable to fraud, so you should always exercise caution when inputting your financial details. The best way to make sure your information remains safe is to find a secure, reliable lending platform.

There is an unfair irony attached to lending today. Those with bad credit are often led to believe they have no financial options if they have made mistakes in the past, often making their situations seem more desperate than they actually are. This can result in people making bad decisions and can lead to borrowing through unstable sources.

Meanwhile, any lenders that do accept you with bad credit will charge extortionate interest rates because of your history, making it more difficult for you to meet your monthly repayment obligations – thus worsening your situation. This is a trap that many people fall into, and it gives online installment lenders a bad name.

However, this doesn’t need to be the case. If you can find yourself a reliable lending platform, you will be connected to a secure network of trustworthy lenders who can offer sensible solutions to your borrowing needs. Many of these lenders will assess your application, even if your credit file isn’t perfect or your income is lower than average.

Instead of (or in some cases, as well as) running credit checks, these lenders will take other factors into consideration, including your income and employment circumstances, and how long you have lived at your current address. They may even ask for references they can contact who will vouch for your character personally.

Even those who receive benefits as a form of income will be able to apply, giving everyone a fair and carefully considered chance of borrowing money. In these cases, applicants won’t be accepted for higher loans than they can afford to pay back, and interest rates will be low, meaning there is a better chance of managing repayments.

If you have poor credit and need to borrow money, consider a personal installment loan, but make sure the APR is advertised between 5.99% and 35.99%. There should also be a number of options in terms of flexible repayment, offering you the chance to pay the money back anywhere between six months and six years, depending on what you can afford to pay per month.

Small, carefully considered personal loans could actually help you build a financial profile making you eligible for better future borrowing. As long as the lender is responsible, and offers reasonable interest rates, online lending platforms can actually give people with more opportunities than many other lenders in terms of improving their situation.

With this in mind, personal loans can be beneficial to those hoping to improve their credit score, but only if some caution is exercised by both parties, and you only apply to borrow an amount you can afford to pay back.

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Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.

NO CREDIT

No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

· Student Loans

· Secured credit card (includes a down payment amount)

· Being added to a parent’s or spouses good credit: card, car loan, etc.

LOW CREDIT

Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.

INCOME

Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.

PURPOSE OF THE LOAN

Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.

BLACKLISTING

If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.

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How Can A Personal Loan Improve Your Credit Score?

When it comes to a personal loan, you have to first learn to use it responsibly. Because if you miss a repayment, your credit score will be impacted adversely. And remember, that a credit score is an indicator of how well you manage your personal finances. Also, it plays a defining role when you apply for any kind of loan – secured and unsecured. It is suggested to apply for a loan slightly larger than what is needed so that you will be assured to have enough money to pay all bills necessary and still have some money left over to ensure that your bank account stays current.

A credit score can be defined as a number which reflects the financial situation of a person. If the person is well-off when it comes to financial matters, then he or she is said to have a high credit score. On the other hand, if a person is the exact opposite of this, then they possess a low credit score. There are a lot of factors that are considered by financial institutions for the purpose of evaluating a person’s credit score – usually, the credit scores of people vary from 300 to about 850.

A personal loan is a type of loan that is given by digital lenders, banks and credit unions to aid you in your plans, be it starting a small business, or making a big purchase. Personal loans tend to have an interest rate(s) lower than the credit cards; however, they can also be put to use for combining several credit card debts together into one monthly lower-cost payment.

Now, your credit score is built by keeping in mind various parameters from your credit reports. These reports serve the purpose of trailing your history of utilization of the credit across the duration of seven years. These credit reports are comprised of information, including how much credit you have utilized to date, the type of credit in your possession, the age of one’s credit accounts, whether one has put in for bankruptcy or liens filed against them, actions of debt collections taken against them, one’s total open lines of credit as well as recent inquiries for hard credit.

Like any other type of credit, personal loans are very capable of affecting your credit score. This can be done through the process of applying and withdrawing a personal loan. If you are curious as to how personal loans can end up affecting your credit, then read on to find out more about the context. There are many ways in which your credit can be affected by personal loans and some of them are listed below:

The ratio of your debt-to-income and loan

Debt-to-income ratio is considered to be the measure of your amount of income that you spend on the debt repayments. In the case of lenders, the amount of income that you receive is said to be one of the major factors proving that you are able to repay your loan.

Some of the lenders have come up with their own debt-to-income ratio so that their proprietary credit scores may make use of it in the form of a credit consideration. Do not fall into the kind of mindset that possessing a high amount of a loan would hurt your credit. The most damage it can do is raise the ratio of your debt-to-income so that you won’t be able to apply for loans anymore without it getting rejected or denied.

Paying loans on time will make credit scores soar

The moment your loan is approved, you have to make sure that you settle the payments of each month on time and in full. Delay in repayment may significantly impact the state of your credit score. However, on the other hand, if you make the payments on time every month, then your credit score will soar high, leading to an overall good score. This will not only make your name to the preferred borrower’s list, but it will prove to be beneficial for you in the long run.

Since your payment history is comprised of almost 35% of your credit score, paying loans on time is essential in cases like these so that your credit score can maintain a positive status.

Variety is built into your credit type

There are about five factors that are responsible for determining your credit score. These are composed of the payment history, the length of the credit history, the utilization ratio of the credit, the credit mix and new inquiries of the credit in accordance with FICO®.

The credit mix only accounts for about 35% of your total credit score, whereas when it comes to a personal loan you can have a varying mix of the credit types. This mix of all types of credit is viewed at a high level of approval by the creditors and lenders.

Origination fee charged by loans

Most of the lenders end up charging you an origination fee. This fee cannot be avoided at any cost and is instantly taken off from the amount of the loan payment. The amount of origination fees depends upon the amount of the loan you are about to borrow. Late payments can lead to an overdraft of fees and late expenses. Therefore, make sure that you pay complete repayment for each month before the deadline.

Avoiding penalties when it comes to payments

Some of the credit lenders tend to charge an additional fee if you end up paying your part of the loan earlier than the agreed date. This is because they are looking for moderate amounts of interest on your loan. Now, seeing that you have paid off your part of the loan before time, they will miss out on that interest that they could have possibly made if you had not cleared the debt soon enough before the deadline.

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