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Bad Credit Loan – Should You Get One?

Bad Credit Loan – Should You Get One?

Sometimes it becomes necessary to be able to put your hands on some money, when you need it, even if you have bad credit. Your credit rating has nothing to do with whether you need money or not. Today, lenders make it much easier for people with bad credit to be able to get the money they need. Here are some things that you need to know about bad credit loan to be able to get the money you need.

You can get loans for just about anything – even with bad credit. There are, however, some things that the lenders will want to see before they give you a loan. Generally, they will want to see that you have a good job, and have been there a while. They will also want to know that you are now able to make payments because you can afford them. Although your credit ratings may not be good, you still should be able to make timely payments. A funny thing about bad credit loans is that someone may qualify, even if they just finished bankruptcy proceedings last week – if these other conditions are applicable.

Whether you are interested in getting a mortgage for a new house, or for a car, or even for debt consolidation, you may be eligible. You should be aware, though, that the kind of deal you will be able to get will not be the same as someone who has good credit. The lender will probably limit you in three ways, making it a little less than the ideal loan. First, it will have a higher interest and it could be quite a bit higher. Second, you will be limited in how much you can borrow. And, third, you will not be able to have as long of a repayment period as someone with good credit.

So, if these conditions bother you, then there are also a couple of things that you can do to get a better deal. They all, however, start with the word “wait.” If you can wait a little while, before you get the loan, it may mean quite a bit of saving to you in the long run. Take some time and reduce your existing debts as much as you can first. Repair your credit. Then, you will be able to get a better deal. The amount of savings that are possible to you, by waiting and following these simple steps, could be sizable.

Other than that, money is available to you. If you already have a house, though, then probably the best way you can get money is by getting a loan based on your equity. Get a home equity line of credit (HELOC), and you will have money to play with.

People that do not have a house can get a personal loan, and may not even have to provide any collateral. Either secured loans (with collateral), or unsecured loans (no collateral), can be obtained with bad credit.

When you go to get your bad credit loan, though, you need to be aware that there are fraudulent companies that are looking for people with bad credit. They feel that you are more desperate to get money and can be more easily taken advantage of. So be careful, look into the company that you are dealing with, especially if you have never heard of them before – and shop around for the best deals.

Consolidating Debt – Investing In Debt Management

Consolidating Debt – Investing In Debt Management

John Dewey had quoted that a person’s money had more value than their credit. However, today’s creditors, like banks, do not share the same view. A good credit file report history is essential for obtaining personal loans thus, consolidating debt might be one of the next options. However, the inability to repay personal loans causes people to avoid calls from debt collectors and to miraculously pretend to forget any debts owed to their creditors.

The resulting fact is that all your banking, financial, purchasing, credit and store card, and other credit history is reported to credit bureaus by your creditors and recorded on your credit file. This file is designed to assist creditors, like banks, to evaluate your credit history and any risk you may pose in regards to repayments.

Bad credit is not a dead-end street, and you can repair and rebuild it in time with the proper management of your finances. However, one or more bad credit reports on your file will have you blacklisted by the banks, destroy your credit score, and stop you from investing in something you want, like a car.

A creditor’s negative credit report takes up to 7 years before it is removed from your credit file. However, you still need at least one year of good credit reporting after that before you can start getting credit or personal loans again. To avoid waiting 7 years for the item you want, like a car, even though you may have a very good income and professional status, consider a problem-free, loan for those with bad credit. Simply, apply to consolidate debt, your debts.

A debt management loan for those with bad credit does have a higher rate than normal personal loans. However, such a loan focuses on your current situation and regular and steady employment, whilst ignoring your past credit report history.

You benefit from promptly fixing your credit report history and credit score, and you can start to rebuild your life. You have the opportunity to work towards buying a home or negotiating a lower interest rate on your credit cards.

If you make your payments when they are due, the bad credit history personal loan will work for you. Without this, you cannot benefit from any major purchases you wish to make, like buying a car. This loan will work if you make it work.

Again, bad credit report history is fixable and not the end of the line for you. Most people have experienced bad credit at least one or more times in their life. Now is the time to rebuild and create your positive credit future by considering the benefits to you by using a bad credit history, personal loan, and the workable interest rates they provide. Need to learn more important benefits of consolidating debt? We can help!

Credit repair is as important as getting out of debt

Credit repair is as important as getting out of debt

Avoiding complications in credit repair is almost important as getting out of debt. When we have bills that were neglected simply because we didn’t have the money to pay the bills, or else we purchased items instead of paying the bills, we are in debt.

If you are considering a Home Equity Loan to get out of your current mortgage, don’t. Why? Simply because most Home Equity Loans get you deeper in debt and once you are obligated you will find the problem is more complicated than when you applied for the loan.

Lenders often target homeowners with financial difficulties offering them high-interest rates and making them believe it is a solution for debt relief. In most cases, this is where foreclosures come in, or selling homes come into place. The solution is only an option to get you in debt deeper. One solution then is for homeowners to consider Reverse Mortgage Loans. This type of loan is often as equity against your home, belongings, and so on. The loan offers a ‘cash advance’ solution and requires that the owner does not pay on the mortgage until the end of the mortgage term or when the home is sold.

Most lenders provide a lump sum advance, a line of credit, or else a monthly installment to the homeowners. Some lenders even offer a combination to the homeowners. This is certainly a good solution for repairing your credit and building your credit to a new future. The downside is that Reverse Home Mortgage Loans often are more suitable for the older generation of people that have built equity over the years in their homes. Another disadvantage is that almost all home loans require upfront payments, such as title, insurance, application fees, origination fees, interest, and so on. Therefore, it pays to ask questions and shop around before taking out another loan to repair or build your credit. Fannie Mae Home Keeper Mortgage Programs are one of the many that offer a Reverse Home Mortgage Loan.

Another option for paying off your debts and repairing your credit is to borrow the money from family members or friends. If you have someone that trusts you enough to loan you the money to get out of debt, it is often better than getting a loan. There are several options or questions you must consider before asking family members or friends to loan you the money to build or repair your credit. One of those questions should be obvious. Can these people afford to lend me the money to get out of debt? Are these people kind enough to loan you money without putting high demands on you? Of course, there may be interest involved, but remember they are loaning you money they could be spending on their own bills. Is it possible that you can repay the loan without complicating your situation further? Can I repay these people that loan me the money to free myself of one debt? How long do I have to repay the loan? Make sure there are no extra complications before asking friends or family for money to help get you out of debt.

One of the best solutions for finding a way to repair your credit is searching for the options to make the money yourself. If you have a mortgage payment and struggling each month to make ends meet, you might want to sell your home. Many homeowners go for this option simply because they make more money in the long run. Once they sell their home they are often able to repay their mortgage loan and then take out a loan for another mortgage more affordable. If you decide to sell your home to repair your credit and get out of debt, be sure that you look around for the best possible solutions in order to prevent further complications.

Make sure you know how much is owed on your home before you set a price for resell. If there are any repairs that are minor or major, try to repair them first before selling. If you can’t afford to repair the home, try to do the minimal repair so that you can up the price of the home you are selling.

Don’t Despair With Credit Score Repair

Don’t Despair With Credit Score Repair

Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Thankfully, credit score repair is available to give you hope.

Some creditors may look only at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.

If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s a “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy laws: As of October 17, 2005, you must get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, credit score repair, money and debt management, and budgeting.

Counselors discuss your entire financial situation with you and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

Consolidating your debt, paying your bills on time, cutting on the frivolous expenses, and preparing a budget for your discretionary income will help you overcome the mountain of credit card debt.

It may look bleak – even impossible – but if you stick to your plan, you will be able to dig yourself out of this hole.

Good Money Management Builds Credit and Protects Assets

Good Money Management Builds Credit and Protects Assets

You should consider how to build credit using good money management skills today. Your first step is to keep a record of outgoings and use a strict budget that you can stick to. Bankruptcy and debt consolidation may add more costs to an already bad situation. You will have to deal with more expenses, high interest, and repayments that may not be enough to satisfy your creditors. This can be stressful and worrying.

The best remedy is to start saving money.

“Do not save what is left after spending; instead spend what is left after saving.” ― Warren Buffett

 

Ways for Building Your Money Management Skills

Firstly, try purchasing accounting and budgeting software that enables you to save. It may seem like just another added expense, but the cost will benefit you in the end. Part of this process will be to track your outgoings and incorporate them into a monthly budget plan. The software will assist you by making the task much easier, but if you prefer you can set up a manual table with paper and pen.

Next, label your table with the heading of Daily (or weekly) Spending – Week of ________. Make sure that you list all your spending requirements, savings, income, taxes, banking fees, food, rent, etc. Each week, when bill payments are due, spend as much as you can on the first, leaving a minimal amount of money for the following week’s essentials. For example, if your telephone bill is $114, your utility bill is $59, and your cell bill is $180 and you get paid only $300 then it will be obvious that you do not have enough to cover this. It is now time to cut down on unessential items. Do you really need two phones?

Forget going to the cinema, budget on rentals, but unfortunately, you may simply have to do without this week. Listen to the radio or watch t.v.

Try to also develop a table that includes your estimated monthly repayments and your living expenses. List your gross income, pensions, bonuses, child support, retirements, and other deductions. Then work out what can be saved and put it towards paying down your debts. Sadly, you will have to reduce your groceries, medicinal, personal, pet, holiday, and gifts costs. Are there any assets that you don’t really need? Do you need that second car? Why not sell it and clear some more debts?

These simple little tips, along with good record-keeping, will help you to gradually reduce debt, fix your credit score and rating, and help re-establish your credit. You may want to think about getting a higher-paid job if your current one offers measly wages. In fact, taking on another job part-time on top of your regular employment can pool in more money. Always remember that there is always a way to rebuild your credit and repair the damage done.

Government Credit Repairs

Government Credit Repairs

If you are building a credit history, suffering bad credit, or else your credit is great, there are sources available that will help you maintain credit, repair credit, and build a credit history. If you have bad credit you must at least apply for two loans and be turned down before, the government will consider giving you a loan. Your credit report is not what is important, rather declines are the focus. Government credit is available to help people start a new business, loans for single parents, loans for education, and so on. The government offers loans to special individuals and often has 0% interest or low interest against the loans.

The government also offers grants to assist people in getting back on their feet again and the grants are yours. You do not have to repay the government anything, but you must use the money for what it was applied for. DC recently reported that there are new sources available that make it easy for families and individuals to repair their credit and get back on their feet again. When credit is bad, we have difficulty when applying for a home, car, apartment, credit cards, and so on. We are virtually disregarded in almost all cases. Today private lenders and the government are teaming up to make our economy more productive by helping those in need, including repairing credit.

Other resources are available to help those of us that are re-entering the employment market as well as helping those of us without jobs. There are funds available to those of us with low and high-risk credit scores. If you need a home, consolidate debts, car, or else start up your own business the government and private agencies are waiting to help you along. Reduced loans and free programs are available that will benefit millions in the economy that are suffering from bad credit histories.

Legal Aid is one source available that can help you with the repair of your credit, as well as many other sources and this source is free of charge in almost all cases. If you are paying, high fees to rent an apartment you might want to fill out an application with HUD. HUD pays a certain amount toward your monthly rent each month and you are required to pay the remaining balance. Think of the money you will have left each month to apply toward building your credit history. HUD also has a solution for first-time homebuyers with bad credit.

Under the Homebuyers Bill of Rights allows us the right to purchase a home if we have bad credit. The government resources and private institutes have lowered their Interest Rates to around 5% for homebuyers and extend up to $500,000 for first-time buyers helping them buy a home. The government and private institutes are also offering debt consolidation loans assistance with late payments, people that are starting a new business, and home improvements. Imagine the potentials?

It is often difficult for us when our credit is bad and not knowing where to start to repair our lives is even more frustrating. If you are suffering from bad credit, you might want to check in on a few options available to you that can help you get out of debt. Life does not have to be difficult and all of us make mistakes.

The Fair Credit Reporting Act (FCRA) offers us protection on our credit report. Our privacy, fairness, accuracy, and other laws say that we do have hope. If you are searching for a way to get out of debt you might want to start up your own business. The government has programs specifically for small business owners. The programs will help business owners to finance their business and guarantees loans to those that are creating a plan to support themselves as well as paying their taxes to the government. This is a wonderful solution for getting back on your feet again and getting those creditors off your back.

To find out more about small business loans, check us out. Bad credit is misery, but it does not have to be a force that destroys your life forever.

Judgment Proof, Credit Rating And You

Judgment Proof, Credit Rating And You

Being deeply in debt usually means that the credit rating is also badly damaged. For some folks in this difficult position, doing nothing could be an effective way of dealing with their loans and credit situation and this is where the clarification of the term “judgment proof” comes in.

People with very little income and property without expectation of change in either have really nothing to lose. They cannot go to jail for bad debt, and both state and federal laws protect them and what they need for essentials such as basic clothing, ordinary household furnishings, food, and even Social Security and disability benefits.

In essence, it makes no sense for a creditor to take them to court because even if the creditor wins and obtains a judgment, they cannot collect on it. This is what “judgment proof” means.

For these individuals not paying off debt and credit rating seems not to have a tangible impact on their finances.

I said it appears because this situation creates deep hopelessness that really prevents people to take necessary action to improve their lives and their finances. If you are in this position, you know what I mean. I remember working in a neighborhood and with people in this situation for two years and the despair turned into violence was like a dark cloud that hid the sun. It was always there.

If you are in this situation, I know it is hard to think clearly. But wouldn’t it make sense to begin taking steps to get yourself out of it? Stop thinking that you have nothing to lose so why bother?

The point is all the things you can gain and not the things you do not have to lose.

It is true that your creditors may not want to sue you if they do not think you will ever have the ability to pay or that they cannot collect, but what about you? Do you also think that you will never have the ability to pay off a debt?

Debt like most things in life is a reflection of unrecognized opportunities. A lack of ability to pay off debt shows that you have yet to recognize something valuable in yourself that you can contribute and get paid for.

One of the better debt counseling and credit repair suggestions that I can make to a person in debt is within the statement, Know Thyself. Really coming to understand this statement opens up opportunities beyond imagination.

Call a debt counselor or a credit repair specialist, but by all means, go to the library and also pick up a book to help you get to know yourself.

How To Use A Credit Card To Help Repair Your Credit

How To Use A Credit Card To Help Repair Your Credit

Getting into a state of bad credit is never fun. It does not, however, mean that your fun is entirely over. There may be some rather simple things that you can do about it. One of these is to get another credit card. Not just any credit card, but one that will help you to repair your credit. Here are some things you need to know about it.

Some Ways to Repair Your Credit

Depending on just how bad your credit is, there may be more than one thing you can do. Be sure to look over your credit report and find out if there is any misreported information there. Things that have been entered by mistake, for instance, or things that occurred a long time ago but have since been properly taken care of. Many times, a creditor will be willing to make some changes for you if you will talk to them.

One type of credit card that will help repair your credit is one for people with bad credit – if you are already there. This kind of card can be obtained from many credit card companies and usually comes without any kind of frills whatsoever. Although it may offer low interest, it usually makes up for this with plenty of fees and very low credit limits. The fees may be worth it because, with timely payments from you, your account will be evaluated every now and then, and your credit limit can be raised – along with better offers. Make sure, though, that the company regularly reports to the major credit bureaus.

Other credit cards for people with bad credit have much fewer fees and a greater deal of flexibility. Look carefully and you may be able to find a credit card that will fit your lifestyle a little better and give you better rates. The interest rate on this type of card can be above 19%, and it can also include yearly fees, too.

Another type of credit card that you can get if your credit rating is better, is a balance transfer credit card. This will allow you to reduce your credit card debt (if you have any) by giving you the possibility of paying down your debt without any interest. Check on the time period of this, though, and get as long of a period as possible – try to get a year or longer. The better cards will have no fees attached for this privilege.

No matter what kind of credit card you get, though, it could lead to further trouble with bad credit if you do not handle your credit card right. This means you need to make your payments each month on time and seek to keep your balance down to zero – if possible. Make sure your credit card agency does report regularly to the credit bureaus and before long, you will find that your credit rating has improved. You will want to destroy other credit cards when they get paid off if you are the kind that will probably start charging again.

How To Use A Collection Agent To Repair Your Credit

How To Use A Collection Agent To Repair Your Credit

Your credit rating is determined by your credit report. If you obtain a loan from a bank, credit card company or another loan establishment, your ability to make your payments on time is reported to a credit reporting agency. Credit reporting agencies then compile this financial information into a personalized credit report, the key to a positive – or negative – credit rating. Any negative notations within your credit history will haunt you for up to seven years and could prevent you from getting another loan.

If you begin to fall behind with your payments to a creditor, the creditor will attempt to receive payment in a variety of ways. After a long series of “warnings,” your debt will eventually be sold to a collection company. The creditor basically “writes off” the loan, and allows the collection company to buy it at a drastic discount. The creditor has pretty much decided that they won’t recover the loan from you and will sell the debt for sometimes half of its original value just to end up with something. The creditor then informs the credit reporting agency, and you are stuck with a black mark on your credit report which stays there for the next seven years.

One extremely important step to credit repair involves taking steps to ensure that the creditor doesn’t “write off” of your debt. As soon as a collection agent contacts you, it is time to act. Don’t contact the collection agency – contact your creditor and try to make arrangements with them. Many times, if you can offer to repay the amount immediately, they can delete the “collection” flag from your credit history. This is the quickest method of credit repair.

If you can’t pay the debt all at once, or for some reason your creditor won’t accept immediate payment in full, you’ll have to deal directly with the collection agency. At this point, remember that that black mark on your credit score can’t get any blacker since the debt is in collections already, so be sure to consider your options before acting. Collection agents are usually aggressive and demanding, implying that they will end up in court if payment is not immediately received, and it can be tempting to do whatever they say to get them off your back.

But remember this: that collection company probably bought that debt at about half of the original value, so if you pay a higher amount than that, you are providing them with a profit. Offer to pay less than the full immediately. Many times, the collection agent will accept and want to wrap the situation up as quickly as possible so they can move on to the next debt.

You want to achieve successful credit repair quickly, so try to pay your creditor directly and have your “collections” negative mark removed. If your creditor refuses and you must work with the collection agency, try offering them less than the full debt amount. Usually, anything above half constitutes profit to a collection agent, so make a full payment for your last resort.

How To Repair Your Credit With Credit Cards

How To Repair Your Credit With Credit Cards

Very few people live their entire lives without inflicting any damage upon their credit scores. Whether it be high balances on credit cards, bankruptcy, collections issues, or financing troubles, credit problems affect the best of us and are difficult to repair.

Fortunately, there are solutions to repairing bad credit and restoring faith with credit agencies and bureaus. All it takes is a little time and the right strategy, and before you know it, you’ll be receiving “Pre-Approved” credit offers in the mail again. One of the most effective ways to repair your credit is with credit cards, and I’m going to show you how.

“Bad Credit” Credit Cards

Believe it or not, there are actually credit cards out there designed just for people who need to get back on their feet. Most of these cards have middle-of-the-road APRs with annual fees ranging from $40 – $100. Some also require an account set-up fee and other charges, which are expected with customers whose credit reports have black marks.

Credit Reporting

The most important thing to remember when repairing bad credit is that your card will not help unless the financial institution reports it. There are three major credit bureaus: Experian (1-888-397-3742), TransUnion (1-800-888-4213), and Equifax (1-800-685-1111). When you fall into collections or fall short of a loan, the financial center reports the debt to one or more of these credit bureaus, and that is how your credit is damaged. In order to repair that damage, financial institutions must also report accounts in good standing.

The best way to ensure that this happens is to find a credit card that reports monthly (or at least quarterly) to all three major credit bureaus. This way, your credit continues to improve exponentially as you continue to pay off all of your balances.

Balances

Most people believe that to maintain a good credit score, you must always pay off your credit card balance each month. This isn’t true. When you are attempting to repair damaged credit, it is much better to keep a small balance on each card and pay it off gradually over a period of three-to-four months. When you apply for a loan, mortgage, or line of credit, financial institutions want to see that you are able to effectively manage your finances. Keeping a balance and paying it off shows that you are able to manage your debt in an efficient and systematic manner.

Secure Credit Cards

If your credit rating is too low, then you won’t be able to obtain a Visa or MasterCard. Instead, apply for a secure credit card. This works similarly to a debit card; you deposit money each month, and that amount determines your credit limit. If you choose a secure card that reports monthly to the credit bureaus, then you will be eligible for an unsecured card in a matter of months.

With Secured credit cards, you deposit money into a savings account, and the amount you deposit acts as your credit limit. The amount can be anywhere from $200.00 to $10,000, and it acts as a type of security deposit. It is never removed from your savings account unless you become delinquent on payments, and it accrues interest the same way a normal savings account would.

Repairing your credit with credit cards can dramatically increase your chances of achieving an “A” credit rating, and you’ll be able to effectively manage your finances. Take the time now to research credit cards – both secure and unsecured – and make today the first step toward a better credit score.