Today there are all kinds of loans available to the consumer. There are new and used auto loans, there are home loans, there are personal loans, there are loans that are designed to consolidate debt, and there are also credit cards. There are loans for just about everything. For each and every type of loan, there may also be some slight variations. The most common two type of loan variations are secured loans and unsecured loans. What are the differences in these two types of loans and what are some of the pros and cons that consumers will have to face when they are looking for these types of loans? This article will answer those questions for you?

What is a secured loan

Secured loans are usually used in situations where the person applying for the loan has less the desirable credit. They may have a negative credit history with things like charge offs, delinquencies, or even defaults. In a bank’s eyes these types of loans are very risky, and no bank likes to take risks especially in today’s economical situations.

Secured loans are also used when a borrower does not have any established credit. A person without any type of payment history is also considered to be a big risk in the loan market.

These are the two most common situations where a secured loan will come in handy. If you have bad credit, a secured loan may allow you to rebuild your credit. If you do not have any prior credit history, a secured loan will give you the chance to build some good credit history.

Why do they use the word “Secure,” when referring to this type of loan?

A secure loan simply means that there is some sort of collateral in place in case the borrower does not pay off the loan. This security could come in many forms. For instance, a secure credit card would require an upfront payment before it was activated.

What is an unsecured loan

An unsecured loan is the exact opposite. These are loans for people that have exceptional credit. They are not seen as a risk by the bank that is going to be loaning the money. There is also usually no upfront collateral needed either.

So what are the pros and cons of each type of loan besides collateral?

Unsecured loans are more difficult to get. Your credit has to be perfect. The interest rates in unsecured loans are also much cheaper.

Secured loans may be easier to get, but you must come up with some sort of security deposit before the loan is approved. There may even be fees associated with this type of loan, and interest rates are usually much higher when compared to unsecured loans.

Determining which loan is best for you will really depend on your current financial situation, and your past credit history. Each loan serves its purpose in the financial world. Some people have no other option but to get a secured loan, while others have the luxury of being approved for unsecured loans. here at Loans.net we do our best to help you get the money you need, apply online today in a few easy steps.

While debit cards are a more convenient way to gain access to the money in your bank account–it also makes it easier for criminals to gain the same access to your money. Discover two more places that are considered to be high-risk places you use your debit card in this two part series.

3) Shopping Online

The number one place where you shouldn’t use your debit card is online. Why? Your debit card is susceptible to many unforeseen dangers online. For one, if you don’t have up to date anti-virus protection, you could have malware installed on your computer, which is computer software that compromises data. If you don’t keep your anti-virus software updated, you could fall victim to malware attacks.

You also need to be more mindful of where you do your online shopping. Do you know who owns the store? Is it a reputable business? Does their website list verifiable contact information? Unless, you can answer these questions, you’re better off purchasing from well-known businesses. Why? Because you never know who is handling your account information.

Solutions:

Update your computer anti-virus software. Always make sure to run a removal of temporary Internet files every week. You’ll be surprised to find that some temporary Internet files will have tracking cookies stored inside them. This will eliminate any problems you may encounter with issues of privacy while you‘re browsing the web.

Verify the business online by checking with the Better Business Bureau website. Also, don’t count on the little “BBB accredited business” emblem located somewhere on the website, which is usually on the homepage, instead, check it out for yourself.

Shop only at online stores that have been around for numerous years and that are well known.

4) Restaurants

Do you ever notice that when you’re done with dinner, the wait staff has to excuse themselves and then they take your payment and disappear for several minutes? Any time you give your debit card to someone and you can’t see what they are doing with it, you increase your chances of becoming a victim of debit card fraud.

Even when you order food for delivery, you are also at risk for potential debit card fraud because cashiers tend to keep your payment information on file. While it makes future orders more convenient, it opens up a whole new slew of things that can go wrong, especially when businesses don’t safeguard this information, as they should.

Solutions:

• Take payment up to the register yourself.

• Use a credit card for payment.

• Use your credit card for delivery orders.

The only way you can prevent from becoming a victim of debit card fraud is to get rid of it for good; however, for many people, this is not feasible. If you do decide to keep your debit card, make sure to take the proper precautions when you use it and make sure to check your banking information at least twice a week to make sure your money is where it is supposed to be and not in some crooks pocket.

You wouldn’t give your bank account information to a thief, now would you? But, you may be doing just that when you use your debit card at certain places. As technology has advanced, so have the tactics criminals use to obtain access to your financial accounts.

While debit cards are identical to credit cards, there is one significant difference between the two. Credit card holders who spot fraudulent charges on their account can call of the credit card company and simply decline the unauthorized charges.

However, when it comes to debit cards, thieves can actually draw money directly from your checking account, giving them direct access to your money. Therefore, you don’t have that added protection, as you do with a credit card.

Learn about 4 of the riskiest places you are using your debit card and what you need to do to lessen your risk of becoming a victim of debit fraud and fraudulent charges on your bank account.

1) Outdoor ATM’s

Some ATM’s give thieves easy access to placing skimming devices, such as the one’s located outside financial institutions. Skimming is capturing a person’s credit card or debit card information by running it through a machine, which reads the card’s magnetic strip information. These devices are often places on top of the actual slots at ATMs.

Solutions:

Use ATMs inside of retailers or those that are well lit at night and receive a lot of traffic.

You can spot these ATM skimmers by the way they look. Their card readers often look worn down, beat-up or askew.

2) Gas Stations

Sure, their more convenient and make the whole pumping gas process a lot easier, but gas station ATMs are also another hot spot where criminals like to place skimmers. Most of these ATMs are also under supervised, so it’s pretty easy for criminals to place these devices on these outdoor ATMs.

Not only that, but criminals can also use small cameras to capture your debit card PIN—giving them complete access to your checking account. However, even if a criminal is unable to retrieve your PIN, he/she is still able to duplicate your card’s magnetic strip and use it for credit card purchases.

Solution:

Use an alternative form of payment, such as credit card or go inside and pay for gas with cash.

The only way to decrease your chances of becoming a victim of debit card fraud is to become mindful of where you use your ATM card and to learn alternative ways to pay for items. Being mindful of where you use your debit card and taking preventative steps to protect your bank account information means that you will prevent criminals from can obtaining this information, gaining access to your bank account, and racking up fraudulent charges that often take months and sometimes years to resolve.

In a downtrodden economy it can be confusing to know which investments are considered risky and which one’s aren’t. One investment that is safe is purchasing U.S. savings bonds. Why? Savings bonds are considered to be non-marketable securities, which means they’re only registered to you and therefore you cannot sell them to anyone else.

The government offers consumers two different types of savings bonds. The first one is the Series EE and the second is the Series I. Both are backed by the full faith and credit of the U.S. Government and are viewed as being the safest of all investments.

Series EE bonds

• The U.S. Treasury offers a fixed rate of return on Series EE bonds.

• They gain interest semiannually.

• If you do not cash these for some time, and then choose to redeem them years later, you’ll receive the cost of the savings bond in addition to the interest that accumulates.

Series I bonds

You’ll receive two types of interest when you purchase Series I bonds:

• At the time of purchase these bonds have a fixed rate attached to them

• Inflation is taken into account and is adjusted semiannually (refer to price index for March and September)

• While the fixed-rate interest for Series I bonds is rather low, they do help protect against inflation.

• If inflation goes up, so does the interest rate you earn, since the variable rate portion is adjusted every 6 months.

Both types of bonds have certain restrictions, such as:

• A purchase limit of 5,000 per Social Security Number

• This purchase limit applies  for each calendar year

The interest for Series EE bonds and Series I bonds is compounded semiannually for every 30 years; however you don’t need to keep them for this length of time. You can cash them out after one year passes, however, you’ll have to pay a three-month interest penalty before 5 years of the purchase date.

What About Taxes

One of the benefits of savings bonds is that they are exempt from local and state income tax. Also, the interest accrued in regards to federal income tax can actually be deferred until you redeem them or final maturity occurs–however, this is dependent upon whichever occurs first. You also receive tax benefits when you use savings bonds for educational purposes.

Need more guidance and savvy money saving advice for retirement when you’re in your 20’s and 30’s? Continue reading to find out what you should be doing at this exact moment in your life to so you can retire with peace of mind.

4) Imagine Yourself when You are Older

A study published in the Journal of Marketing Research reported that when young people view photographs of themselves as older people, they are more willing to save money for their future. Can’t digitally age a photo of yourself? Use your imagination or study a picture of your mother or grandmother.

5) Change Your Outlook

It’s easy to get caught up in self-pity or loathing when it seems as though everyone is acquiring more than you are. One way to nip this detrimental behavior in the bud is to give to a charity. No matter how much you can spare, even a little bit makes a world of difference and changes your worldview for the better. In fact, according to experts, it’s also a great way to gain control of your own sense of perceived depredation.

Get rid of friends who make fun of you or put you down for things you can’t afford as of yet. You need to surround yourself with positive friends who are supportive, not negative people who bring you down or don’t appreciate your frugality.

6) Buy Just Enough House

Just because you can afford a $450,000 dollar home doesn’t mean you should buy one. Instead, buy a house that is comfortable for you. It doesn’t make sense to buy a large home when only two people live in it. Besides, you’ll end up paying a lot more on home repairs, and on cooling or heating bills during the summer and the winter.

This doesn’t mean you shouldn’t buy a home that you love, what it means is to buy one that allows you to live comfortably, so you can afford other things as well. The worst thing you can do is buy a home that is above your means, and not be able to make the house payment. Besides, think of the benefits 30 years down the road. Would you rather have another 1 million in your bank account or another spare room that no one uses?

7) Invest More or Save More

You have two options here, risk more on investments or save a lot more money. If you’re a risk taker than the investment option might seem more appealing to your personality. What does this mean? This means that you have to balance market risk with inflation risk. According to recent research conducted by Investment Company Institute, close to 20 percent of investors under the age of 35 are unwilling to take any type of risk when it comes to stocks.

So what should you do? Maria Bruno a Senior Investor Analyst at Vanguard, suggests putting 30 percent of your long-term savings in stocks. Of course, if this sounds too risky, you can also choose to save a lot more money, such as 30 percent of your income, instead of investing your money in stocks.

You might think that your 20’s and early 30’s is a time in your life when you have the right to live lavishly and you have the financial freedom to buy whatever you want, whenever you want. Many people in this age group are also quick to splurge here and there on just about anything and they don’t have to worry about their future or their retirement for at least another 20 years; however, overtime this type of spending can be very costly.

In fact, according to CNN.com the investments you make during your 20’s and 30’s can affect how well prepared you are once you get ready to retire. To learn more about the “smart financial decisions” you should be making during this time in your life, continue reading.

1) Match Your Retirement Plan

You can start by adopting a savings mindset from day one. Begin by matching what your workplace retirement plan offers. Then once you can manage this, begin gradually increasing the amount until you save 12 to 15 percent of your yearly income.

To help you stay motivated to stay saving money for your retirement plan, just think about not having to work a part-time, minimum-wage job when you’re in your sixties, just so you have enough money to support yourself.

2) Become Financially Independent

If you have always depended on your parents to lend you money when you need it, you are not only hurting your chances of becoming financially independent, but you are creating a false sense of security. What happens when your parents are no longer around to give you money? What’s going to happen?

This is why it is of utmost importance to learn how to become financially independent. When you become financially independent, you learn how to take care of yourself and your finances. You’ll learn to be more conscious of your spending habits and learn how to manage your money better.

3) Create Your Own Individualized Retirement Plan

According to NEFE president Ted Beck, successful savers create a plan. This can be as simple as signing up for payroll deductions and having this money placed into a mutual fund. The best part is you won’t even realize its missing. Once you get used to not having the money to spend it will become easier to live without it.

As you can see, many of these money saving tips for retirement are incredibly simple and very manageable.  While you may have to sacrifice a little here and there while you’re in your twenties and thirties, you can take pride in knowing that once you retire you’ll be able to relax and enjoy it without needing to look for work. These practical money making decisions apply to everyone, regardless of socioeconomic status–meaning that just about anyone can start saving for retirement and won’t have to worry about money when they are no longer working.

You can save money on gas by following a few simple driving techniques and changing up your usual driving routine. By following these helpful money saving tips to extend your gas mileage, you’ll have more money to spend on other more important things.

Get Rid of Excess Weight

You never know when you may need something, which is one of the reasons why most people like to drive around with everything, but the kitchen sink. But did you know you are losing valuable gas mileage when you do this? You could be losing up to 3 percent of total gas mileage for every 100 pounds you lug around. So clear out your car or truck and only leave the things you need. And, no, I don’t mean getting rid of that annoying coworker who carpools with you.

Turn the Car off when it’s Not in Use

You know it takes longer than 5 minutes when you go through the drive thru, so the next time you find yourself in a long line in the drive thru, turn off your car.Keeping your car on idle can waste up to a quarter to a half gallon of fuel each hour; all of this of course is dependent on the size of your car engine and air conditioner use.

Make One Large Trip to Run Errands

You can save money on gas by combining all of your errands into one trip. In fact, you can expend up to twice as much gas from several short trips than you do when you go the same distance.

Avoid Traffic Like the Plague

You waste more gas when you’re constantly making start and go stops, which is usually what happens when you’re caught in traffic. Instead, try taking the back streets or another alternate route where traffic is lighter.

Carpool

You can greatly reduce the cost of fuel and the wear and tear of your car by riding with a group of people. You can also take advantage of the local car pool lanes on freeways, which are often less busy and allow you to attain more miles per gallon.

Public Transit

If you have a car or truck that is considered a gas-guzzler, you may want to consider taking the public transit a few times a week to save money on gas. There are many avenues you can try, including buses, subways, trains; however, this all depends on where you live. While the cost varies according to the type of transportation you decide to take, it will still save you a great deal of money on the cost of gas.

Most people would consider their car to be a necessity, which is why it is of utmost importance to do what you can to keep it in good running condition. However, you’d be surprised how many people try to avoid paying a few hundred dollars to keep their car in proper working order. Instead, they procrastinate until the problem becomes worse, and what started out as a simple, inexpensive repair, now ends up being much more serious and much more costly. Did you know that some car repairs can also save you money on gas? Find out how to get more gas mileage and how to keep your car driving, as it should.

Tune Up

Fixing both major and minor car maintenance issues can save you a lot of money on gas. If your car has failed an emissions test, you can improve its gas mileage by 4 percent, just by having it repaired. Fixing a major problem, like a faulty oxygen sensor, may increase the gas mileage of your car by 40 percent.

Keep Tires Inflated Properly

Did you know that you can improve the gas mileage of your car by 3 percent by inflating your tires properly? In fact, your gas mileage is decreased by 0.3 percent when there is a loss of 1-PSI (pounds for square inch) drop in air pressure in all four tires.

Maintaining the proper air pressure in tires also helps extend the life of your tires and enables safer driving.

To determine the correct air pressure for your tires, the DOE recommends locating the sticker on the doorjamb on the driver’s side. There is a sticker located inside the glove compartment; you can also find this information in your owner’s manual. However, whatever you do, do not follow the maximum pressure printed on the side of the tire.

Use the Right Motor Oil

If you’re not using the manufacturer’s recommended grade of oil for your car then you could be reducing your car’s gas mileage by 1 to 2 percent. You should also look for oil labeled “energy conserving” on the American Petroleum Institute performance symbol. You should also check to make sure that the oil contains additives that are known for reducing friction.

Keep Road Rage and Your Lead Foot to a Minimum

We’ve all been there. Some guy cuts us off and our first response is to get angry and drive like maniacs, but you can actually save money by being a better-composed, cautious driver. Avoid speeding, in addition to rapid acceleration and rapid breaking. Not only does this type of driving put more wear and tear on your car, but it also can lower your gas mileage by 33 percent when driving on the highway, and 5 percent while driving in the city.

Drive Slower

Don’t worry about those fast and furious drivers who pass you up on the freeway, driving 80 mph, there wasting money on gas, according to the DOE. In fact, these people pay an additional $0.30 per gallon for each 5 miles they drive over 60 mph.

Are you interested in learning more about IRS common red flags, which will most likely cause you to be audited? Continue reading to find out if any of the below red flags apply to you.

6) You Own Your Own Business

The most common place the IRS looks for inconsistencies on your taxes is on Schedule C forms. This is because there is much more leeway for stretching the truth a bit. According to Certified Tax Coaches’ Molina, “the IRS targets sole proprietorships and cash industries where it’s very easy to hide income and skim profits.

If you’re still on the fence about reporting every single bit of income you’ve received, you might want to reorganize your business. Instead of a sole proprietorship, make it a corporation or partnership. According to Molina, having a business corporation or partnership means you don’t have to file a Schedule C.

Another IRS red flag that has them question whether it’s a valid business or not, is if you have a business that resembles a hobby. This is especially true if you are deducting a loss.

7) You’ve Been Audited in the Past

According to Online Taxman’s Villamena, if you’ve already been red flagged for an audit by the IRS, it means you have a bad reputation with them. Therefore, you had better make sure for at least the next four years your taxes are done right and that you do not try to pull one over on the IRS.

Most people, who are audited once, will also be audited again. So make sure you keep this in mind when you have your taxes done.

You Have Your Own Home Office

When deducting the cost of your home office, you need to make sure that the room you use to conduct business from is set up only for doing business. This means you can’t have a sleeper sofa, television or game room inside the same room. You also cannot have more than one office to conduct business from.

Make sure you document how much energy it costs to run your business in your home. For instance, how much of the electricity bill do you use while working from home in your office.

9) You Have Lots of Money

People who have a lot of money are more at risk for being audited than people who don’t. This is because people with higher incomes have more difficult tax forms to fill out. It also generates more income for the IRS.

How much likely is it that people with money will be audited. Considering that they only audited around 1 percent of taxpayers, this number dramatically increases to 7 percent for people who have an income between $1 million and $5 million.

10) Foreign Assets

In an effort to get taxpayers with accounts overseas, the IRS has waived certain penalties for those who fess up to having overseas bank accounts. This year, the IRS introduced a program that allows taxpayers a reduction in penalties, and no jail time, if they admit to having overseas accounts for an unspecified length of time. If they suspect that you have an account and are not coming clean about it, you could be in serious trouble.

11) You Guesstimate Investments

Prior to this year, the IRS only required brokers to report how much you made from the stock and the date you sold it. And if you’re the person responsible it for filling out the paper work, you better make sure your numbers are accurate.

This is because, now the IRS is going straight to the brokers, and if the information they provide doesn’t match up with what you provided, you could be in big trouble. Make sure you list the exact buy dates and prices they were sold for.

According to CNN.com, don’t be fooled by tax preparers who promise unusually large tax refunds, but never require any receipts or documentation of these purchases because ultimately you are held responsible if the IRS decides to audit you. For your own safety, make sure you have your taxes prepared by someone you trust and who knows what they are doing.

1) Tax Preparers are Now Assigned PTIN’s

To help prevent this from happening, this year all tax preparers who are paid for their work are required to have a Preparer Tax Identification Number, also known as a PTIN. This way customers can verify that they are legitimate. If you notice that they don’t provide this number, this could also be a red flag.

2) You Make Careless Mistakes

The number one mistake many people make, according to CNN.com is putting down the wrong social security number. The second is incorrect calculations. To prevent the first mistake from occurring, have your spouse look over the paper work. It is much easier to catch mistakes when more than one person is looking over the documents. You may also want to hire a professional tax preparer if you have the money for it.

3) You Tell the Wrong Person

Did you know that if you tell the wrong person that you pulled one over on the IRS and they tell the IRS that you can get into big trouble. Plus, the person who told on you will receive 30 percent of the money you owe. So, be careful who you tell and don’t trust just anyone with this type of information.

4) Being Overly Generous

According to Online taxman’s Villamena, if you donate more than $250 worth of merchandise, make sure you have receipts or documentation that show proof. You may also want to take several pictures of the items you donated, so the IRS doesn’t get suspicious. The more carefully you document this, the less likely it is that the IRS will audit you.

You’ll also want to make sure you don’t overestimate how much you donated. If you make $20,000 a year and state that you donated $10,000 worth of items, this will also be a red flag.

5) You Don’t File

If you’re required to file a return and don’t, the IRS may just hunt you down. This is especially true if you have filed in the past and all of a sudden have stopped filing. The IRS wants to know how much you owe and if you’re hiding something.

Even if you’re not sure that you can make your payments, remember this year that the IRS is giving an extension under certain circumstances, so take advantage of it. It’s always better to file even if you can’t come up with the money right away, otherwise, you might just raise suspicion with the IRS.

Also, keep in mind that even if you don’t need to file, you may be due for a return. You wouldn’t want to miss out on this now, would you?