Freight factoring is a common financial tool to provide immediate funds to trucking companies by selling their shipping invoices to the factoring companies. This provides financial stability to the trucking companies with quick capital. Although this is a popular financial practice, many fraudsters can see this as an opportunity to commit factoring invoice scams. Read on to learn the three facts about freight factoring frauds and how companies can avoid them. Fake invoices to get immediate cash flow Some companies may be experiencing shortage of cash flow. This issue, coupled with the daily expenses, makes the business owner commit factoring invoice fraud. Trucking company owners may create one or more false invoices and submit them for payment to the factoring company, among other legitimate invoices. This is a quick way to get funds and that is why it is an easy way to get funds even though the main intent may be to return them to the factoring company in full. Many low amount invoices may get sanctioned without review, leaving room for fraud. The best way to avoid such a situation is to thoroughly review all the invoices systematically and ensure that the invoice amount corresponds to the services provided by the trucking company. Identity fraud is real Many fraudsters may pose as legitimate trucking companies to get funds from the factoring companies. This can be easily avoided if the factoring companies implement a rigorous and robust screening process, including a strong verification process while signing the contract with the trucking companies. This will help the factoring company avoid any kind of fraud and keep their funds secure. Double invoicing This is a common fraud, and many factoring companies may find themselves victims of such a scam. Trucking or even ghost companies may submit the same invoice to multiple factoring organizations to secure funds from different factors.

Personal loans can help with various expenses, such as planning a vacation, further education, home renovation, or even health expenses. These loans can also aid in completing a renovation project instead of abandoning it halfway due to budgetary constraints. However, the loan application process can be daunting and may lead to mishaps that can prove costly later on. Check out some common mistakes to avoid, specifically those with poor credit scores. Not checking score Not checking the credit score before applying for loans is one of the most common loan application mistakes and can prove to be detrimental. It may be so that the credit reports have inaccuracies that further impact the individual’s credit score. So, before applying for a personal loan, checking credit reports for errors and verifying the score from one of the top credit bureaus is recommended. Applying to different lenders simultaneously Another practice that negatively impacts a person’s credit score is simultaneously applying to multiple loan vendors. When an individual submits multiple applications within a short period, it can damage their scores, especially if they are rejected. Each loan application is handled with proper credit checks that can result in temporarily lowered scores. Individuals can instead research beforehand and apply to lenders dealing with poor credit scores. Only caring about interest Interest rates are crucial when applying for a loan and calculating the total payable amount. However, loan applicants often make a mistake: they become single-mindedly fixated on the loan’s interest rate. It becomes the deciding factor and the motivation for applying. However, aggressive rate shopping behavior can result in harder inquiries. Applicants should look for lenders willing to loan them the amount despite their poor credit score, even if they must accept a higher interest rate for their loan. Later, they can choose to refinance their loan with one that has a lower interest rate.

A new phone can be expensive, especially the latest models. To help finance it, one can avail of several buy now, pay later (BNPL) plans. These plans make big-ticket purchases more affordable. They let individuals get what they want and pay for it later while charging zero interest and minimal fees in many instances. Read on to learn more about the five top BNPL providers and how they can help users finance their next phone. Affirm Buyers can use Affirm to finance their phone purchases. Before approving the claim, the company may perform a soft credit check and consider the individual’s payment history, debts, income, and bankruptcies. Affirm partners with several major retailers and offers pay-in-four and monthly plans to its customers. While its pay-in-four plans are interest-free, the monthly options may have an interest between 0% to 36%. Afterpay Afterpay offers plans that are similar to Affirm’s. Buyers can avail of an interest-free pay-in-four plan or opt for a monthly plan of either six or twelve months for payments larger than $400. Interest rates on the monthly plans may vary between 6.99% and 35.99%. Klarna Klarna is another famous company that has BNPL plans. It tends to be lenient with past customers who have favorable payment histories or ratings. The provider offers two interest-free payment plans: the pay-in-four (equal installments) and the pay-in-30 days. Apart from these, customers can also opt for monthly payments, which may be charged with an interest rate between 7.99% and 33.99%. Please note that the company does charge for late payments, which may damage credit scores. Sezzle With Sezzle, buyers can find pay-in-four plans and long-term financing options for phone purchases at major retailers. Sezzle allows customers to reschedule a payment for free once per purchase and also provides an option to boost credit scores with on-time payments, which can be beneficial.

According to the FICO credit score model, those with a score below 670 are considered to have bad credit. The lower the credit score, the harder it is to get personal loans. However, it is not impossible. There are several lenders who have minimum credit score requirements. Shopping around and researching is one of the best ways to find offers and discover ways to get money with a bad credit score. Here’s how to do it. Check credit report and credit score thoroughly Before starting the process of applying for loans, pull copies of credit reports. These are usually available for free from the three credit bureaus: Experian, TransUnion, and Equifax. Then, review all the information lenders often see while evaluating a loan application. Check for issues or patterns in the credit history, such as closed accounts and missed payments. If there are any errors, get them rectified. Once this is done, take the necessary steps to improve the credit score. Compare lenders and get prequalification Several online lenders offer loans even with bad credit scores. While traditional banks solely rely on credit scores, online lenders look at other criteria along with credit scores while approving loan applications. These criteria usually differ across lenders but often include the applicant’s job, income, and education history. Thus, one can check out these lenders and look at their various offerings. Shortlist a couple of the lenders and prequalify with them. Doing this will give a fair idea of whether one is eligible for the loan and what rates would be applicable if the loan gets approved. Add a co-signer A co-signer is a person willing to take equal responsibility for paying off a loan. Usually, a friend or family member with an excellent credit score is eligible to be a co-signer. Having someone co-sign is one of the easiest ways to improve one’s eligibility odds and lower interest rates when applying for a loan with a bad credit score.

Being in debt can be overwhelming and stressful if one does not plan to get out of it. Proper financial planning is imperative to pay the debt right away and should be at the top of one’s priority list. This means being structured and diligent with one’s spending habits, i.e., cutting some expenses to help with debt payments. Nonetheless, here are some more mistakes to avoid while paying off debt. Neglecting interest rates It is recommended that the debt on the bill be paid off with the highest interest rate while the others can wait. One may think paying small amounts for every bill is helpful, but that will not be the case, as the interest will be added back every month. So, paying as much as possible on the highest bill is essential while matching a minimum payment amount for others. Closing credit card accounts While closing credit card accounts after bill payment may seem tempting, this may affect credit score data. So avoid rushing to close the account once it is paid off. Pay the monthly balances and avoid interest charges to maintain a good credit score rating. Not changing spending habits It is important to incorporate some healthy spending habits. Start by considering cheaper alternatives for expensive products or gadgets, make lists and stick to them, and only dine out occasionally to avoid using a credit card every night at a fancy restaurant. These small but practical tips can go a long way in helping one manage their finances better. Signing up for illegitimate debt relief programs Some debt relief scammers take advantage of customers. They will make unrealistic promises and charge excessive fees, which may get one in debt with the company. Confirm these relief programs through one’s state attorney’s office and ensure they are legitimate.

Paying off credit card debt can be a tedious and lengthy process. However, with proper planning, you can reduce your debt to a substantially low amount. Failure to pay credit card bills on time can jeopardize your financial well-being, which must be addressed and corrected as soon as possible. As debt accumulates, so does the stress. Here are some of the mistakes that are commonly made while paying off debt that can easily be avoided. Continuing to use the credit card It is crucial to refrain from using a credit card that has a significant amount of debt until the entire debt has been paid off. Though you may be able to make your monthly payments and reduce the amount of debt over time, the interest charges will continue to compound and accumulate each month, resulting in a much larger debt than you initially incurred. To put an end to this cycle, it is necessary to stop using the credit card completely, at least until all the outstanding dues have been cleared. Also, do not fall prey to “buy now, pay later” shopping schemes. Lack of planning Having a well-planned strategy is the only way to get out of debt easily. Failing to schedule timely payments and ignoring accrued interest on time will only lead to increased debt over time. Therefore, set a target and break it down into short-term objectives to achieve the desired financial outcome. Ignoring the root cause Analyze the reason behind your current financial situation and identify what led you to overspend. Overspending is a hugely common problem, especially for those who rely heavily on credit cards for their purchases. If you do not plan your expenses, it becomes difficult to manage your bills and pay them on time. Therefore, identify the root cause of your debt and work on a budget to improve your financial management in the future.

Being new to crypto trading does not necessarily mean one must make all the mistakes to experience and learn. Why not start smart as a beginner? For this, it is essential to be thorough with the common mistakes to avoid when selling or investing in cryptocurrency. Knowing what they are can help potential crypto traders begin their crypto journey on an informed and solid footing without incurring unnecessary losses. 1. Buying because the price is low Low prices may not always hint at a bargain. Sometimes, the prices are low for a reason. So, being wary of the coins with falling user rates is crucial. Many developers formulate a project and leave it after a few years. Consequently, the coin has not been updated, a common reason for its low price. So, one of the mistakes to avoid when selling or investing in cryptocurrency is buying without research, merely because the price is low. 2. Failing to pick the right crypto exchange platform Before one starts trading, one must research and choose a reliable cryptocurrency exchange. Sadly, many beginners rush into this step, which later proves to be a costly mistake. So, when selecting an exchange, look for the following features: User-friendliness and simplicity Low fees Vast selection of coins Good asset prices Useful trading features Regular review of security terms Personalized and reliable support Good educational content Secure and authentic 3. Diving in without much study One cannot learn trading by watching a few tutorials online or reading eBooks. To be well-versed in the skill, one must acquire in-depth knowledge before investing. So, it is vital to spend time learning the basics. One must know the following: What it entails Its types Risks involved How it works One can find several resources and courses online to equip oneself before taking the plunge.

A 401(k) plan is a tax-advantaged retirement savings plan provided by employers. It involves setting aside a portion of the employee’s monthly salary, which can be withdrawn during retirement. Introduced in the 1980s, 401(k) has been instrumental in helping people save money for their future. However, certain mistakes can prevent one from getting the most out of their 401(k) plan. Lapses here could also result in penalties. 1. Not contributing enough Some of the biggest mistakes people make with a 401(k) are not contributing enough or consistently and not increasing their contributions over time (to match their salary). As a result, they end up losing out on the compounding interests, settling for very little money. To steer clear of this mistake, one can set up the account to automatically draw contributions from the salary account. Today, one can also opt for automatic annual increases on a date of their choice or on the effective date of their salary raise to allocate more money for their retirement. 2. Missing out on employer match Many employers match the employee’s contribution. To build a bigger retirement fund, one should avoid missing out on these contributions. One can learn more about the employer’s 401(k) policy. Generally, employers match employees’ contributions if they are between 3–6% of the monthly income. If one does not contribute enough money to be eligible for an employer match, they will miss out on free 401(k) money. 3. Early withdrawal As a 401(k) is a savings tool, many people may want to tap into it when times get tough. This can be done in two ways—a loan or a withdrawal. With a loan, the borrowed money needs to be repaid within 5 years, whereas a withdrawal results in a 10% incurred penalty. As both things can impact the power of compounding, breaking these funds is generally inadvisable.

An income annuity covers various retirement expenses that are not always covered by Social Security or pensions. The customizable contract issued by an insurance company converts an investor’s premiums into a guaranteed, fixed-income stream. It reassures investors of a steady income flow, throughout post-retirement. This retirement plan is only as good as how well one manages the contract. With proper expert guidance, an investor can learn how to reap the benefits of an income annuity. Learn about the types One of the easiest ways to benefit from annuities is to learn about the available types. There are various options: immediate, deferred income, indexed, variable, and fixed deferred annuities. Each type might suit different investor profiles. Learning about them in detail will help one make a more informed investment decision in the long run. Split the money One can divide their money across various annuity contracts using a bucket strategy to stay on budget. The method allocated for short-term, intermediate, and long-term expenses. For instance, if one has recently retired, one of the contracts can be set up to start immediately, while another can be set up in five years when the spouse plans to retire. A third contract will be initiated in 10 years, when one might expect a higher health care bill. Doing so ensures one receives money for current needs while the deferred annuities keep growing to offer higher payments later. Transfer wealth Income annuities let investors transfer wealth to others, such as heirs. Options with death benefits direct any remaining value of the contract to a beneficiary in a lump sum or a series of payments. An individual can also get a joint-life annuity policy, which will be with the spouse or child. One should remember that an inheritance strategy will reduce the monthly income the annuity pays the investor.