Online Rent Collection Company Considerations

How does that work? A question that is generating a lot of buzz around the landlord community when evaluating the possibility of collecting rent automatically from their tenants. It is a great question, and while in general the answer is simple, the details can vary widely from company to company. The real question then becomes; “What do I want in an online rent collection company?”.

To answer the simple question, online rent collection utilizes the Automated Clearing House (ACH) network to debit the rent payments from the tenant’s checking or savings account, and to deposit it into the landlord’s account. That is the extent of the simple answer. The rest varies depending on the company that is chosen.

The number of days it takes to deliver the rent to the landlord can be anywhere from 2 business days to 8 or 9 business days. The amount of time required to deposit the rent payment depends largely on the agreement that is made between the online rent collection company and the bank that provides the ACH service. In most cases the rent is debited from the tenant and deposited into the bank account owned by the online rent collection company. Once the rent clears, they initiate a deposit to the landlord. This process generally takes between 5 and 9 business days.┬áLandlord Technology, the nation’s leading online rent collection company collects the rent from the tenants and deposits it directly into the landlord’s bank account in 2 business days. This eliminates risk to the landlord, as well as cutting time to receive rent.

Information security provided by the electronic rent collection company is an extremely important attribute to consider when selecting a company to collect rent. The landlord’s and tenant’s personal and banking information needs to be encrypted and the website should be scanned daily to ensure the site is free from malware and spyware.

Last, but certainly not least the electronic rent collection company should provide the highest level of customer service in order to effectively answer questions and provide the necessary support. It is important to consider the methods available to contact the company as well as the hours of support that is available to their customers.

For information on a recovery agency click here Eastpoint Recovery Group.


How to Get the Most Savings from Student Loan Consolidation

The goal of student loan consolidating is to improve your overall financial picture; whether that means lowering monthly payments, improving a credit score, or reducing debt to income ratio. Student loan consolidating packages offer some of the best ways to save thousands on your student loan. For more information on understanding how these different incentives affect your repayment can help you to make a smart choice when it comes to student loan consolidating.

The Effect of Interest Rate on Student Loan Consolidating

This tiny little number has the largest overall financial impact in regard to the total amount you will spend to repay your student loan. Even a fraction of a percentage point can equate to thousands of dollars over the lifetime of a loan. Advertised base interest rates for student loan consolidating are similar from one company to the next. Your due diligence in shopping for a lender to handle your student loan consolidating will truly pay off when you begin to compare interest rate reduction opportunities.

Interest Rate Reductions

Interest rate reductions are money saving incentives offered by companies that specialize in student loan consolidating. Not every lender offers interest rate reductions, and those who do offer a broad range of percentage savings. With a little research, you can find lenders offering total interest rate reductions of up to 1.5%.

On Time Payments Interest Rate Reduction
If you’re planning on making your payments on time anyway, why not be rewarded? Some lenders offer interest rate reductions just for making on-time payments. Some lenders such as ScholarPoint offer a reduction of up to one full percentage point after only 24 months of on-time payments.

Be conscious of the number of months the lender requires before qualifying for this discount. A reduction applied after 36 months into your loan as opposed to 24 months means you’ll be paying higher rates than necessary for one full year.

Auto Pay Interest Rate Reduction
Because payments made on time are so important, some lenders will reward you with an interest rate reduction simply for having your payments automatically deducted from your account each month.

Many lenders and government programs offer reductions at a rate of 0.25%. However, with a little research, you can find auto-pay interest rate reductions of up to a full 0.5%. For the borrower, this is a triple win. It means less paperwork, no worries about late payments, and a significant amount of savings over the course of the loan period.

Principal Reductions

A principal reduction is when the lender handling your student loan consolidating subtracts a fixed percentage off of your loan balance. Each lender offers different guidelines for qualifying for their principal reduction benefit. The most common incentive offered is for completing a set number of consecutive on-time payments.

Principal reductions differ from interest rate reductions in that the savings is applied to the remaining balance on your loan but does not affect the interest rate at which you will pay off the balance. While principal reductions may initially seem like a larger savings, you could pay more than if you had chosen a lender offering a seemingly small interest rate reduction.

Cash Back Programs

Cash back programs are exactly as they sound. After a certain number of consecutive on-time repayments, usually 33 months, some student loan consolidating companies will return up to 1% of your original loan and credit this to your remaining balance. When a cash back incentive is applied, money is actually deducted from the remaining balance after meeting the guidelines of your student loan consolidating lender. For example, after qualifying for a 1% cash back incentive on your $30,000 loan, your current balance would be reduced by $300.

Choosing a Company to Handle your Student Loan Consolidating

Many of the incentives offered are rewards for favorable repayment behavior and are presented through different types of savings packages. Using a Student Loan Consolidating Calculator online can help you calculate the potential savings of your options.

By comparing the options and savings incentives of different student loan consolidating lenders before making a decision you can save thousands of dollars over the course of your repayment term.