Blog

Loans For People With Bad Credit

personsl Loans for People with Bad Credit History

 

Realistic Loan Options for People with Bad Credit

Daniel Boortins, a well-respected historian once said, “it is hardly an exaggeration to say that the American standard of living was bought on installment plan”.  What happens to that standard of living when a consumer’s credit rating is so bad that lender’s refuse to give any more credit? Simple, the consumer uses another financial tool known as a loan. But first the consumer must be familiar with loans for people with bad credit, because those will be the only type of loans that the consumer will qualify for.

A loan is an agreement that can be entered into by natural or juridical entities, whereby money, property or any other type of asset is given at a predetermined or determinable future date by a lender to a borrower. The latter agrees to return the thing borrowed or its equivalent usually along with interest at some future time and in most cases on installment.  For example Mr. C lends five hundred dollars ($500.00) to Mr. B. with the understanding that the latter will pay the former the entire amount with ten percent (10%) interest, in five (5) monthly and equal installments starting January 1, 2012.  Therefore Mr. B has to pay Mr. C. one hundred ten dollars ($110) on the first of each month for five (5) months, starting January 1, 2012.

Consumer Credit is an indicator used by creditors to determine how much of a risk a consumer is in defaulting on a loan.  A poor credit rating indicates a high risk, and lead to higher interest rates, or the denial of a loan application. Therefore, loans for people with bad credit are limited by the calculated amount of risk a lender or creditor might be willing to accept.

Borrowers have to accept the reality that the provisos contained on loans for people with bad credit will not be as favorable to them as opposed to loan options for people with excellent or good credit. For example, Mr. A and Mr. B each take out a three hundred thousand dollar ($300,000.00) thirty (30) year fixed rate loan. Mr. A with excellent credit, which means a credit score of around seven hundred sixty (760) to eight hundred fifty (850) can expect to pay around five point seven percent (5.7%) interest, amounting to more than seventeen thousand dollars ($17,000.00) in interest payment. Mr. B who is a consumer with damaged credit, around five hundred (500) to five hundred seventy nine (579) can expect to pay nine point five percent (9.5%) in interest, amounting to around twenty eight thousand dollars ($28,000.00) in interest payment.

There are only a few types of loans for people with bad credit. First would be repairing their credit rating before taking out a loan.  This option is only available consumers whose credit rating is within reach of the required credit rating and who still have enough time.  For example, Mr. A has a five hundred seventy five (575) credit score and he applies for a car loan from Bank of B.  The latter is requiring a five hundred eighty (580) credit score at the very least.  Since the difference is only five (5) points and Mr. A has several disputes on his credit report, plus several bills due which he can pay on time, then it is worthwhile for Mr. A to repair his credit rating first. A delay of a few months may be better than a loan denial since this might also be taken into consideration by other lenders in the future.

Another one of the loans for people with bad credit would be to take out a loan with a cosigner who has excellent credit.  A cosigner is a person who signs the contract of loan together with the principal borrower and is considered a co borrower on the loan.  The excellent credit rating of the cosigner may be enough to compensate for the poor credit rating of the principal borrower.  This option is considered by some as one of the better loans for people with bad credit but is only realistic if the principal borrower can find a willing and sufficient cosigner for a loan.

A third loan option for people with bad credit is to consolidate and negotiate all debts and take out a single loan to pay off all overdue bills.  While most people will question the wisdom of taking out another loan and incurring another debt to pay off other debts, this is a viable option if the debt consolidation is done properly.

First, the consumer has to research lenders who are reliable and whose loan terms fit the earning capacity of the consumer.  Reliability is the key because some lenders will offer loan terms that are unrealistic and may even force a consumer to pay off only the interest while leaving out the principal amount. Reliability can be done thru research and cross referencing lenders with government and non government agencies that monitor lending institutions like the fraud department of a county or the Better Business Bureau (BBB). Second, the consumer must make a realistic calculation of their monthly income and expenses including emergency expenses for at least six months.  Whatever amount is left is the monthly loan amortization than the consumer can afford.  This will be the only time a consumer researches for reliable lenders.  Third, negotiate for a reduction of the principal amount and the condoning of interest and penalties.  Oftentimes all it takes to reduce a debt is to write a simple hardship letter or to plead with the debt evaluator.

In closing, there are still a few available loans for people with bad credit and these loan options can actually work, but the consumer must make sure to be religious in following a set income and expense, then properly researching the loan terms then asking for consideration from creditors. This is because being smart and choosing the right partner can spell the difference between being debt free or filing for bankruptcy.

 

Loans For People With Bad Credit

0 15

What is a Good Credit Score

  • What is a Good Credit Score?
  • What is The Credit Score Range?
  • What is The Credit Score Scale?
  • What is The Average Credit Score?

Let’s take a look at the credit score breakdown

Most people know that their credit score plays an important role in their lives. This is the easy part, the more difficult part is actually understanding the credit score breakdown, or what goes into a credit score. There are a few different methods for calculating credit scores but the most commonly used is the FICO method that has been used since the 1980’s. The FICO method was developed by the Fair Isaac Corporation and the three big credit bureaus, TransUnion, Equifax and Experian, all worked together with Fair Isaac to develop this method.

For more information on FICO credit score please read here

FICOFICO credit score range

 

A persons credit score can range anywhere between 300 and 850. The average American score is around 690 which is a reasonably good score. Having the average score of 690 will enable you to secure a loan, however it will not get you the best interest rate on your loans.

Let’s take a look at the credit score breakdown.

The first factor is payment history. Payment history makes up 35% of the credit score. This is calculated based on whether you pay your bills on time or not and how many late or missed payments have been forwarded to collection agencies. It also considers if you have had any bankruptcies or tax liens. It can be difficult sometimes to meet financial deadlines if you get a heap of bills all come in at once but just remember that a missed payment is much worse than a late payment regarding your credit score. Missing a mortgage payment will affect your credit score much worse than missing a bill payment or credit card payment so always have your mortgage payment as first priority.

Next there is outstanding debt to consider and this accounts for 30% of your credit score. If you have a number of credit cards and they are all maxed out then this will have a very negative effect on your score, but if you have a number of credits that all have a lot of credit still available then this will work in your favor. Outstanding debt considers the amount of credit outstanding in relation to the amount of credit available to you. It can help your credit score to have a few credit cards that are not being used but simply to give you available credit to increase your score.

Credit Longevity is the next point that is considered when determining your credit score. How long you have established credit counts for 15% of your score. The longer you can maintain good credit and continue to pay your bills on time then the better it is for your credit rating.

Next there are the types of credit to consider. Around 10% of the score is related to the number of different types of credit that you have. If you have multiple types of credit, such as mortgage, car loan and credit card, and all are managed well then this will help with your credit score.

Amount of activity is the last factor to consider. Opening new credits card accounts to leave unused to increase your credit score is good, but not if you open too many new accounts at once. If you have too much activity happening in a short period of time this will negatively affect your score.

When you understand what is involved in the credit score breakdown then you can take steps to improve your score.

 

What is a Good Credit Score

Loans For People With Bad Credit

The Truth About Debt Consolidation Loans

 


0 3

Whenever interest rates drop, a refinancing frenzy naturally follows. Whether you’re looking to trim your mortgage payments, eliminate credit-card debt or pay off your car loan, experts say you should fully understand all of the options available to you before deciding to refinance.

Allied Mortgage Consultants, a mortgage company recognized for educating consumers on the realities behind new home loans and refinancing, reveals seven common mistakes people make when refinancing.

1. Not saving enough to justify refinancing. It’s best to decrease your rate by at least .75 percent to 1 percent. This will save you about $100 a month on a $150,000 mortgage.

2. Not knowing your closing costs up front. By law, closing costs must be disclosed within three days of the loan application. However, there are different approaches to calculating them. Until the details of your loan are clear, the closing costs quoted to you are only estimates. Plan for the worst-case scenario.

3. Not fully understanding your reasons for refinancing. Besides reducing your interest rate, there are other legitimate reasons to refinance, such as debt consolidation, home improvements or major purchases. In some cases, you may be able to deduct your interest payments on your tax return. Always consult an accountant or tax attorney before making these types of decisions.

4. Not being aware of APR “teaser rates.” Some mortgage brokers use annual percentage rates to get your attention, but it may actually end up costing you more. APRs often are derived by using a 30-year mortgage coupled with an accelerated payment plan. Make sure you know the actual interest rate you will be paying throughout the life of the loan.

5. Not weighing the pros and cons of adjustable rate mortgages. ARMs can minimize your monthly payment, but not if additional refinancing occurs. In this case, they can cost more in the long run.

6. Not being aware of the service you should expect from a mortgage broker. The process of refinancing should be hassle-free and accomplished quickly. Ask your mortgage broker to provide details of its service plan and performance guarantees.

7. Not knowing to ask the mortgage broker about all available loan products, terms and rates. Subtle differences can save or cost you thousands of dollars.

0 4

Source: http://financeequityloans.com

Category: student loans

Article body:

Are you worried about the college loan that you presently bear? Well there are many people who are under the burden of education loan that they took in order to pay for their college fees. But what can a person do when he or she is bogged down by various loans that they might have undertaken for their college studies. If you are one who is the same problem, we would take you through the way by which you can live a peaceful student life without taking any tensions of loan.

What Should A Student Do In Such A Situation?

When there are many loans paying back becomes really a troubled issue. What you can do is club all those loans together into one and then pay only installment for all the loans. Yes, thanks to college loan consolidation, you can live a far more peaceful life studying without having to pay back for different loans.

What Advantages Would I have With A Single Loan:

Well if you are into a few loans then you must be well aware of the high amount of interest you would be required to pay. when opting for a single loan that takes care of all the other you would find that there would be much less problems as well as much lower interest. You would save hefty amounts if you calculate the difference of interest you used to pay and you would be pay. Another good thing about the scheme is that you can actually enjoy a much convenient process as there would be much lesser credit checks too!

What Is Makes College Loan Consolidation So Special?

What does a student think of when he or she moves into a college? Well most people look to study well and finish education with flying colors, but does it mean that a student who studies have been possible only due to loans should always worry about repayment rather than studies? This is where loan consolidation changes the life of such students. This loan may allow you to have loans without actually worrying about them.

What Are The Things I Should Look At Before Choosing A Loan Consolidation?

There are various providers but all you need to do is look for some of the best providers and leaders and choose for some features that would give you easier loan repayment and lower amount of interest. Some of the common features that should be taken into consideration when choosing a loan consolidation are:

1) Fixed Rate of Interest may be a compulsion for majority of consolidation loans, so before you actually decide try and weigh all the interest options available and then accordingly choose the most suitable option for you.

2) Try and make the monthly installments as low as possible. There are many situations when lower amount of interest may actually help you in saving huge amounts in the long run.

3) Try to look for college loan consolidation from such organizations that are can give you a high repayment tenure. When choosing a loan repayment tenure would mean that you would not have to pay high amounts every month, so your loan repayment eases out.

There are many organizations that offer college student loan consolidation but you need to look for the best deal. You may search the internet for various results and should choose one that offers you the best deal.

0 4

The IRS is heavily promoting electronic filing options. This promotion has run into problems with corporations because of complex regulations. The IRS is now moving to correct this problem.

IRS Simplifies Reporting Requirements for Corps and Shareholders

Corporate tax filings are legendary for their complexity, number of forms that must be filed and general burden they create. Large, publicly traded corporations make every effort to file the proper forms, but the burden is such that when all is said and done, one corporation reported it had to file the equivalent of three tax forms for every working hour of the year. For small corporations and shareholders, the burden is not much less.

Given this massive tax burden, the idea of a corporation filing electronic tax returns is laughable. The IRS has finally realized as much. In response, it is making an effort to simplify or do away with regulations. In fact, the service has changed over 20 different regulatory groups to massively simplify a variety of tax situations.

One area of simplification has to do with the transfer of interest in certain types of corporate share transfers. Known as a section 351 transfer, the regulations previously required both the corporation and shareholder to file up to 18 different information items. Yes, 18! To simplify this mess, the IRS is now requiring the filings only for individuals that own more than five percent of a publicly traded company or one percent of a private company. Those still required to file will now only have to provide very basic information. This is a vast improvement on the old system.

One of the big red tape problems for corporate and shareholder filings is a simple one. The IRS has historically required everything to be physically signed by certain shareholders. This was essentially a method for forcing shareholders to come forward regardless of the corporate planning being done. The IRS is now de-emphasizing the signature requirements and allowing the same forms to simply be filed electronically. It sounds like a small thing until you go through the experience of sending a form to 15 different shareholders around the country.

The effort of the IRS to simply corporate and shareholder filings should be applauded. It is a small step in dealing with a large problem.

0 5

According to Experian, a credit score is a number lenders use to help them decide: “If I give this person a loan or credit card, how likely is it I will get paid back on time?” The information from your credit reports is used to create your credit score. Your credit score will always be a key ingredient for low interest rates when qualifying for a mortgage or home equity loan.

Before getting a line of credit, get your free credit report from each of the three major credit reporting agencies (CRAs): Experian, Equifax, TransUnion. Under federal law, you are entitled to one every year. Order online at annualcreditreport.com, or call 1-877-322-8228. Check to make sure someone else’s information isn’t mixed into your report. If so, contact the CRA immediately and have them delete it.

Then, follow these tips to help you establish credit and build your credit score:

1.Establish checking and savings accounts and maintain them responsibly.

2.Piggyback on someone else’s good credit by being added to a credit card as an “authorized” (joint) user.

3.Get someone to co-sign a loan for you (e.g., financing a car, or other secured loan) and make your payments on time.

3.Apply for student loans and make your payments on time.

4.Apply for a credit card or a secured card. But, make sure the issuer reports to all three CRAs. Otherwise, the card won’t help you build your credit.

6.Apply for one gas card and one department store card to add to your credit mix.

7.Use your credit cards regularly, but wisely. Make all payments on time because the two most important factors in your score are whether you pay your bills on time and how much of you available credit you actually use.

Establishing and maintaining good credit will make buying a home a lot easier for you. You’d be able to get a good fixed rate loan instead of having to settle for a variable rate sub prime loan. It will also help for times you may need a home equity line of credit for home improvements or a home equity loan for debt consolidation, including paying off student loans.

0 6

The IRS is heavily promoting electronic filing options. This promotion has run into problems with corporations because of complex regulations. The IRS is now moving to correct this problem.

IRS Simplifies Reporting Requirements for Corps

Corporate tax filings are legendary for their complexity, number of forms that must be filed and general burden they create. Large, publicly traded corporations make every effort to file the proper forms, but the burden is such that when all is said and done, one corporation reported it had to file the equivalent of three tax forms for every working hour of the year. For small corporations and shareholders, the burden is not much less.

Given this massive tax burden, the idea of a corporation filing electronic tax returns is laughable. The IRS has finally realized as much. In response, it is making an effort to simplify or do away with regulations. In fact, the service has changed over 20 different regulatory groups to massively simplify a variety of tax situations.

One area of simplification has to do with the transfer of interest in certain types of corporate share transfers. Known as a section 351 transfer, the regulations previously required both the corporation and shareholder to file up to 18 different information items. Yes, 18! To simplify this mess, the IRS is now requiring the filings only for individuals that own more than five percent of a publicly traded company orone percent of a private company. Those still required to file will now only have to provide very basic information. This is a vast improvement on the old system.

One of the big red tape problems for corporate and shareholder filings is a simple one. The IRS has historically required everything to be physically signed by certain shareholders. This was essentially a method for forcing shareholders to come forward regardless of the corporate planning being done. The IRS is now de-emphasizing the signature requirements and allowing the same forms to simply be filed electronically. It sounds like a small thing until you go through the experience of sending a form to 15 different shareholders around the country.

The effort of the IRS to simply corporate and shareholder filings should be applauded. It is a small step in dealing with a large problem.

0 6

If you currently have unbearable debts and thinking of wipe it off from your statement by declaring bankruptcy; Just on-hold your decision for a while, there may be other options available. Try to improve your situation before you investigate the bankruptcy option. No matter which way you go, evaluate the 5 steps below to see if you could avoid taking that drastic step.

1. Detail out all your debts

First, look at all your secured debts such as mortgage and car loan. How much are the repayment for each month? What are the interest rates?

Then, list down all the fixed expenses such as power, phone, insurance, food, etc. What are the total costs for these expenses?

Follow by examining your credit card debts. Take out all your credit card statement and write down the amount you owe for each card and their interest rate.

Finally, write down all your other expandable; these are your optional expenses such as entertainment, gym, membership, dinners at restaurant and other impulsive purchase.

2. Eliminate the unnecessary expenses

Now you should have a better idea on where your money goes; Make a diet plan on your cash; In your Cash Diet Plan, list down all the your savings from the elimination of the optional expenses. You will be surprise that how much money you can save by carefully control your expenses. The money you saved can be used to pay down your debts.

3. Get your family involve and work as a team

Don't do it alone because under such as stress condition, you may out of control and may not think and plan in clear mind; get your family together and let them know your financial problem and have them to work together to control the household spending and eliminate the unnecessary expenses.

4. Cash out with your assets

If you have equity, you are in a better situation because you could refinance or get a secured loan for pay off your debts. If you are looking for bankruptcy as your debt relief options, your may not have any equity in hand already. But equity is not the only asset; many people tend to forget that things that have cash value, but not sentimental value. Think antiques, old clothes or collectibles.

List down all the assets you own which your can sell and cash out. Check the closets, garage and storage locker, she says, "and find out what you can live without". Then, cash them out through garage sales, eBay or consignment shops. Use the money to pay down your debts as much as possible.

5. Go for consumer counseling service

Arrange an appointment with a credit counseling agency and let the counselor to understand your finance situation and draft a budget for you. Review the debt management plan proposed to you before your sign to enroll into the plan. You may get a few plans from other credit counseling agencies for comparison. Choose the one which best suit your current financial needs. Although a debt-management plan can have a negative impact on your credit, it's better than bankruptcy.

6. Get A second or part time job

Utilize your out-of-work time on second or part time job. Although you may not earn much in your part time job, a little money coming in can keep a bad financial situation from getting worse.

Summary

Bankruptcy may be your easy way out from debts but the consequences may follow you for 7 to 10 years. Always look for other alternative before choose for this dramatic options.

0 6

Source: http://financeequityloans.com

Category: student loans

Article body:

Private student loans are mainly used to cover up additional cost other than the educational costs. The money that is lent for a private student loan solely depends on the lending agency.

One must understand that federal student loans offer more than what a private student loan offers a student. So, one must first apply for the federal student loan.

Even after applying it the educational fees remains unfulfilled then one can opt for private student loan. The arousal of such loan category was due to two main reasons,

The rising college tuition fees

Limited government’s financial aid to cope up this fee.

This has caused the inability to the students to cope up with their college fee.

Private student loans are gap-filling aids allowing students to borrow the extra money that is needed to fulfill their educational expenses other than those provided by the federal financial aid.

Benefits of Private Student Loan:

Interest rate is very low by 0.25%

One can choose to have payments automatically deducted from the personal bank account

A principal deduction of $300 is made on every private student loan when the student graduates.

Defer payment while in school and for a six-month grace period after graduation.

Upfront fees are nil.

Benefits of Cosigner:

Cosigner is the one who strengthens the approval of private college student loan to you. Cosigner can also lower your interest rates.

This would become a compulsory condition when one does not have 27 months of credit history. If one were greatly concerned about the approval of private students’ loan then a cosigner would do a great work.

Eligibility Criteria to Apply For A Student’s Loan:

Must be citizen of U.S. or be a permanent resident of US. In case where both conditions fail you may need a cosigner who is a permanent resident of US

Must be enrolled at an eligible educational institution.

You must have attained the legal majority age(least of 18 years of age mostly) along with a cosigner who is also a major.

Those who do not have a cosigner must have at least 27 months of credit history established.

One’s permanent resident must not be in Texas, Wisconsin, Washington, Illinois, or Iowa. Residents belonging to these states must apply for an alternative student loan.

Cosigners may belong to any state and there is no restriction based on state.

Application Process:

Submit your application

You will receive an immediate credit decision.

Add a cosigner who is credit worthy to your loan application, though you may be conditionally approved.

Submit the required documentation. Sign the promissory note and submit it along with the documentation.

Loan would be sanctioned within 10 days mostly if all the documentation were correct and legal.

Deadlines: Private student loan does not have any deadline it can be applied at any time, provided the eligibility criterion is met.

Fees would be based on credit history, repayment, and origination. The charge can range from 4.5% to 5.5% of the original loan amount depending on the agency. This would be assessed at the time of repayment.

Interest rates depend on the cosigner credit history.

Repayment term would vary from fifteen to twenty-five years.

You could get a private student loan from $1,000 to $40,000 per year for items such as:

Tuition

Room and board

Computer or travel

All other education-related expenses including previous school fees

Features

Affordable monthly payments

Competitive rates and terms

Easy hassle-free online application

Benefits

Repay after graduation

Funds sent to you – fast

Easy to apply online or by phone for your loan

Other Specifications:

$40,000 annual limit for Undergraduate/Career Education and Graduate/Professional student loans based on cost of attendance at the school and borrower’s credit ability. Chase offers convenient education financing with flexible loan amounts from $1,000 to $40,000 with an aggregate maximum of $150,000.

Subject to verification of application information.

You may need a co-signer since this is a credit-based loan.

Interest continues to accrue during deferment and will be added to the principal balance of your loan upon entering repayment.

NextStudent Private Student Loans

Cover up to 100% of your college costs.

Get the money you need for college or grad school. With a NextStudent Private Loan, you can cover up to 100% of your higher education expenses. Get from $3,000 up to $45,000* a year to pay for those college and grad school expenses that your scholarships and federal financial aid didn’t cover.

Get the money you need when your financial aid isn’t enough.

If your scholarships, grants, and federal student loans don’t cover the total cost of your education, you can still get the money you need for school. Our private student loans are available to undergrads and graduate students for tuition and fees, room and board, and your other education-related expenses: books, supplies, your trips home, even a laptop.

Check out all the benefits that come with your NextStudent Private Loan.

No FAFSA required

No application or origination fees – apply FREE

No payments due until after graduation?

Competitive interest rates and fees

Your interest only capitalizes once, not quarterly like with other lenders

Your check comes straight to YOU, not your school?

Take advantage of borrower rewards.

Graduating from college is a huge accomplishment.

Apply with a creditworthy co-signer, and you may qualify for a lower rate

Take $300 off your principal loan amount when you graduate (with proof of graduation)

Get an immediate 0.25% rate discount just for signing up for automatic monthly payments

Make your first 48 consecutive payments on time, and you can request to release your co-signer (you’ll need to meet the loan credit requirements at the time of request)

Apply today – it’s fast, easy, and FREE.

They specify that their private student loans have NO application deadlines or fees. Apply for your NextStudent Private Loan any time – at the beginning of the school year, mid-semester, or right before finals. Get the money you need for school when you need it. Apply now, and you could have a preliminary approval today!

Thus, we have reviews some of the student’s loan providing agencies and the methods to apply for a student’s loan. This is going to be quite easy with good work plan and foreseen thoughts. One could get maximum benefit through these students loan when utilized in the right way. Start your plan now.

0 6

So you need some money for unexpected expenses. The roof took on a leak, the deck rotted through and a new family addition tightened living space. You bought too much Christmas on credit now the bills are overwhelming. Junior got accepted to that Ivy League school. Tapping into your home equity can help ease your financial burden. Before deciding on borrowing ask yourself a few questions first.

1. Do I need a home equity loan or a home equity line of credit?

If interest rates are low, a loan is a smarter choice. You can borrow the full amount at once ant get a fixed rate on the entire amount. The advantage allows you to know how much to budget for monthly payments.

On the other hand, a line of credit will let you borrow from a revolving line of credit with variable interest rates. You access the money just like a checking account by writing a check for the purchase. Then the amount used is paid back. If the rates fluctuate, your payments will also.

2. Are there restrictions on how I use the borrowed money?

Most loans and lines of credit can be used for a variety of things. Whether you want to consolidate all your debts into one, do some home improvements or pay for college tuition, an equity loan or line of credit can be the answer.

Be sure to ask yourself if you can afford the extra payments. Is your budget flexible enough? Will adding another payment won’t over-extend a tight budget?

3. How do I find the best interest rate?

Your best bet to determine the variety of interest rates offered by financial services companies is to shop around. Ask questions. Try to find a company your comfortable doing business with. Look for ones that don’t charge application fees. Ask about charging a penalty for early payoff.

4. What is the term of the loan? Is it better to get a 5- 10- or 15 year term?

You’ll want to determine what your financial future strategy is when deciding on the term of the loan. If you’re planning to retire soon, you may want to ask for a shorter term. The longer your loan terms, the lower your monthly payments.

5. Are there any tax advantages to borrowing with a home equity loan?

There are many good tax advantages to home equity loans and lines of credit. The interest is tax deductible on your federal income tax. Be sure to consult your tax advisor before applying for a loan to be certain of the deductions.

6. Is the loan application lengthy and how long before I get an answer?

More and more lenders are allowing consumers to apply for loans over the phone or on the Internet. It can take as little as 10 minutes for the application process. And many pre-approvals can be delivered in a few hours. Final approval often takes any where from 5 10 days while evaluating your house is taking place. Often the entire process can be completed without leaving your home with final documents and checks being sent through the mail.

Tapping into your home equity to ease financial burdens can be a good idea. Do your homework. Shop around. Set up your budget. Use the money for what you need.

0 6

If you think about it, the most grueling part of the car-buying process, after agreeing on a price, is acquiring the right kind of loan for your new or used car. Most consumers enter the car dealership completely unprepared for the loan application process, and that lack of knowledge and planning is costing them millions of dollars every year.

If you want to create a win-win situation for you and the car dealership you purchase your car from, there are five steps to take before you sit down at the negotiation table: get your credit report, surf before buying, go local, speak the language and be prepared to negotiate.

1.) Get Your Credit Report

You can’t pick up a personal finance article, magazine or book that does not refer to the importance of knowing what is on your credit report. Despite the fact that modern media has been beating us over the head with this advice for the past couple of decades, most people do not know their credit score or check their credit report on a regular basis. You can get a copy of your report by directly contacting the three credit bureaus: Equifax, TransUnion and Experian (formerly TRW).

Not knowing your credit score and the details of your credit report before applying for a car loan is a monumental mistake. You want to have any blemishes on your report resolved before you apply for a car loan, because the results of your lender’s credit inquiry directly impact your interest rate.

Your credit report includes: basic information about you name, address, social security number, etc.; your late payments, any outstanding debts you have, the amount of credit available to you; any public records on you such as judgments and bankruptcies; and inquiries into your credit from potential employers or lenders.

And just because you have caught up late payments, cleared outstanding debts or cleared up any judgments does not mean these blemishes are automatically removed from your credit report. Sometimes, you need to follow up with the creditors to make sure they report your reconciliation of debt to all three credit bureaus.

In addition, identity theft and/or fraud can result in false, unfavorable records on your credit report. In January 2006, the Federal Trade Commission reported that more than 686,000 people reported identity theft and fraud complaints in 2005. Stolen identity and fraud can result in major credit report issues.

2.) Surf Before Buying

You’ll be far less tempted to impulse buy, driving away from the car dealership with a car you can’t afford if you have established boundaries in your mind before you begin.

You can save big money on your car loan if you have a budget and type of car in mind before you go shopping. One easy way to accomplish this is to go online and check out different car dealership websites.

You can compare and contrast vehicle makes, models, styles, features and pricing.

3.) Go Local

There are many national auto websites, but did you know that many local car dealerships are now online as well? The advantage of working with a local car dealership can outweigh working with the manufacturer or a national website when you want the best in quality customer service, a relationship for the lifetime of your car and the best deal on your auto loan.

The advantages of getting a loan through a local dealership is similar to the reason every town in America has a locally-owned restaurant that has regulars: local businesses have a sincere investment in the community. That interest often leads to better customer service, a more customized approach to selling, and the ability to get you a better loan than you will receive from a lender who doesn’t know or care who you are.

Lastly, the local dealership may have more than one location, increasing your options for finding the car you need but offering the same uniform auto financing options. For example, Conklin Cars Salina, a car dealer in Kansas, is also a Hutchinson car dealer and a Newton car dealer. So, if a customer goes to one dealership and does not find what they need, they can visit another location and expect the same quality customer service.

4.) Speak the Language

There’s nothing more frustrating than going through the entire car-buying process, thinking you have a good deal, and learning down the road that you were taken advantage of simply because you had no idea what your sales rep was talking about.

From dealer holdback to Rule of 78s , make sure you have an understanding of some of the basic industry terms that could be thrown at you during your transaction. With this knowledge, you won’t misunderstand the details or find yourself being signing a contract or paperwork that you don’t understand.

5.) Be Prepared to Negotiate

If you’ve followed the four previous steps in this article, you will be armed with the necessary tools to negotiate the best rate possible for your car loan. There’s nothing wrong with shopping around and checking with other lenders to see what kind of rate they can offer you, but you must remember that numerous inquiries into your credit report may go against you.

And, when you go through the dealer for your auto loan, the sales rep wants a long-term relationship with you. This motivates them to work harder to get the best rate possible for you. In contrast, an online or off-site lender’s interests begin and end with the loan but the car dealer wants you to: come back and have your car serviced, return when you want to purchase your next car, and tell your friends about them, further strengthening the dealership’s reputation in the community and increasing business.

Before you sit down to get your next auto loan, take the time to do a little homework so that you can feel confident about securing the best deal for your auto loan. Investing a little time and effort before making the deal can go a long way in creating a win-win situation for you and the car dealership.

0 8

Source: http://financeequityloans.com

Category: student loans

Article body:

There is no doubt that student loans are the most economic way of funding higher education. Nearly every student is eligible to go for this sort of credit, which in point of fact constitutes the most bargain-priced loan available in the marketplace. It offers a first-class chance for youngsters to learn to handle their finances. But a bad credit loan for students isn’t something that you would like to drag along. Because the higher education expenses perpetually keep on climbing up, it has become increasingly necessary for students to take loans in an attempt to get their academic degree. But loan repayments are not that easy, particularly considering that fresher earnings are generally a lot less than the real earning potential.

Given these considerations, a bad credit loan for students might turn out to be a valuable tool for many recent college graduates. Prior to going into the default stage, chill out and go over the options. Recognise that you’re not the sole defaulter; there are many students who default on their loans every year. Understand this, that whenever you default, you’ll harm your credit history. If not now, in the future this almost for certain will keep you from acquiring the best available finance, mortgage and even maybe handicap your vocation prospects. A bad credit student loan will get you out of this fiscal jam.

Consolidating debt The lender offering you a poor credit student loan takes on the assortment of debts you’ve collected. Whilst the repayment conditions differ over different lenders, a single poor credit student loan will reimburse all your debts and present you with an individual, usually longer-term loan. But that for certain does not mean that it’s not without its costs. But even so, instead of paying numerous loans over various tenures, a poor credit student loan accumulates all your existing loans under a single debt. You can then negotiate the terms and the interest rates with your poor credit student loan supplier. Typically, students choose a repayment time period ranging from 10 to 30 years. Plainly, the lengthier the tenure of the poor credit student loan, the less your monthly instalment will be.

Taking out a bad credit student loan offers you the opportunity to extend your payments, so as to take the full advantage of your upcoming earning potential. Indeed it’s rather natural for students to think that as their career goes on they’ll pull in more, and consequently by prolonging the tenure of their loans installments, they will not have to pay back their debt when their earnings are at their lowest point. In conclusion A Bad credit student loan vastly assists the students who’d prefer to defer their monthly payments until they achieve their true earning potential, or for those who find contending with numerous separate loans aggravating. It’s critical for the students to recognise that in spite of these benefits and irrespective of what the lenders might wish you to think, a bad credit student loan has its defects in the shape of greater rates of interest.