Category: Credit

Balance Transfers

There is much hype regarding the transfer of balance from one credit card to another or by using credit and other checks at a considerably low interest rate. The reason is quite simple. The constant canvassing of the major credit card companies to its customers for the purpose of transferring their balance is a very common phenomenon.

An article published in Credit Cards Magazine says that the profit of the credit card companies reached a peak in 2004. It is quite understandable that that the credit card market has reached a point of saturation. Therefore, it can be very well assumed that an account often gets closed for the opening of another one. So for the credit card companies it is always desirable to open a new account on almost every occasion and every opportunity. Various credit packages and offers are offered just for this purpose.

Balance transfer allows these banks to open a new account for the particular card holder or the account holder by the virtue of which his or her older account details will be shifted to the new account of the card holder. Therefore, the bottom line is that by the process of balance transfer there is a mutual monitory advantage for the banks and the cardholder as well, although there are exceptions.

Nonetheless, transfer of balance of an account or a credit card to a significantly lower rate in the introductory stage might raise some questions. One should be careful about the following points, or else the cardholder might end up paying money at a very high interest rate. Always inspect the following the time period of the introductory rate of interest, the annual percentage rate of the card once the expiry of the teaser rate has taken place, and whether there is any involvement of money in the shape of any service charge or fees in the process of balance transfers.

Bad Credit

Bad credit is a term used by financial institutions to identify people that have a bad credit history. Getting into this situation may not have any actual malicious intent. The debt may come due to a medical crisis or a job loss or simply because the person was unable to manage his finances properly. Transactions may actually be made by a spouse or by a business partner, but as long as the person is in some way responsible for the payment, he will be affected by the debt. The problem may be a result of bankruptcy as well.

What Happens

But regardless of the reason, once a person misses the monthly payments, financial institutions place them in a list labeling him a bad credit risk. The situation can turn very bad if missed payments are not given attention immediately. If the credit problem is not given any attention, or if it extends over a prolonged period of time, financial companies would be forced to label the person as a bad credit risk permanently. Once a person is labeled a bad credit, getting a new loan or credit line becomes very difficult, almost impossible.

Remedy

The good news is being placed in the bad credit list is not a permanent status. Once a person takes care of the credit line, the status can be alleviated and the credit status goes back to normal. Financial institutions monitor a person’s paying behavior and by consistently paying for the monthly amortization on time, it can affect the credit score significantly eventually clearing off any bad financial history.

Alternative

Even with bad financial history, there are financial institutions that offer loans. This option should be used only as a last resort. Interest are higher than normal rates for people who have bad credit history, and getting such a loan may only put the person much deeper in his financial crisis.

Bad Credit Repair

Bad credit stops you from obtaining mortgages and loans, or making any purchases on credit. Generally, consumers who accumulate large credit debts and do not pay those debts earn bad credit ratings. A person who tries to obtain credit with poor credit scores will pay higher rates and fees. Their failure to pay the amount due results in additional debt in the way of high interest rates and accumulating charges. This can start a cycle of debt that is seemingly impossible to get out of. That’s where bad credit repair companies step in.

Bad credit reports cannot be ignored. Bad credit repair can begin by securing a copy of your credit report. Missed payments and delayed payments should be noted and settled as quickly as possible. Creditors can be contacted and a payment schedule drawn up, which has to be maintained. Free credit repair information can help you improve your credit ratings. However, before starting to repair a poor credit report, you first need to recognize all the negative items and resolve them. Poor credit habits that extend over a long period, showing no signs of improvement, make things much worse. Creditors can be fairly understanding of a bad credit incident, if corrected.

A systematic repayment of debts due will, over a period of time, generate positive points, reducing the negative score. However, it is vital that you do not generate more debt and stick to a practical budget plan. Otherwise, you will slip right back down that slippery slope into bad credit all over again.

Bad Credit Personal Loan Information

When you have a bad credit rating, lending institutions often are not willing to lend you money because you are considered a high-risk borrower who may not be able to repay the loan. Usually, you will have to contend with borrowing from unscrupulous lenders who charge very high interest rates because you will not be able to access loans from formal lending institutions. However, there are some formal lending institutions that offer loans to people with a bad credit history. These loans are dependent on the available options that these borrowers have.

Tailor-fit loans

These lending institutions lend you money based on options that they deem most appropriate for your needs. They offer you these options in the form of loan products that they think you can handle, and you have to choose which one you would like to take advantage of. Once you have decided on a loan product, you will then have to fill out a loan application form. The lending institution will compute the repayment plan and the interest rate for your loan using different principal amounts and interest rates. This will again give you options on the amount you would like to borrow and the interest rate that will be charged.

Other services

Apart from providing the loan, these lending institutions also offer other services that can help you improve your credit rating. They offer financial advice on your debts and on how to best repay them. These lending institutions also claim that they can help you improve your credit rating by providing you with loans with the best terms that will make it easy for you to repay. Being able to repay a loan on time will then translate to a better credit history for you.

Bad Credit Loans

Whenever a person falls into bad credit, his financial records are blemished with this undesirable mark, making almost impossible for him to get a new credit line. But this was the past. Nowadays, several financial institutions believe that everyone deserves a second chance when it comes to getting a credit line. For some people, getting a credit line means getting back on their feet. Whether an individual plans to purchase a new car, or he wants to use the loan as principal to setup a new business, he would need a loan to finance something that will get him back on track.

There are several companies that offer bad credit loans. The processing usually takes 24 hours, a good lead time to cater to an immediate need.

Rates

Getting a bad credit loan requires no collateral. Financial institutions understand that a person with bad credit history most likely do not have much property that can serve as a collateral. To compensate for the lack of collateral, financial institutions usually set interest rates much higher than any bank rates.

These rates sometimes may seem illogically high, but financial institutions place these rates to protect themselves. The risk of the possibility that the debtor does not have the ability to pay back the loan is factored in to the rates. And armed with the fact that a person would not be given a loan by any bank given his financial history is something that these institutions capitalize on.

Warning

Before availing of any bad credit loan, it is important to compute the rates and understand how much he needs to pay for the monthly amortization. Getting the loan has responsibilities that the debtor needs to fulfill and if he is unable to meet payments, getting a loan may just dig him deeper in a financial crisis he is already facing.

Bad Credit Loans from Banks

Bad credit loans from banks prove to be a great help for people who are trying to regain their financial stature. Having bad credit really does not look good on one’s credit report, and it affects his credit reputation greatly.

That is why some banks are trying to assist people in this kind of financial distress. People who apply for bad credit loans from banks are certainly trying to restore their credit file as well as remove any bad information from it. And bad credit loans from banks assist these people greatly.

Banks that offer this type of loan usually do not ask too much about the person’s credit file. More often than not, they also do not ask for equity or collateral. And if you are interested in taking advantage of bad credit loans from banks, they usually offer assistance through their customer care service representatives who can answer any of your questions regarding their program.

And just like any other loan, there are certain qualifications and minimum requirements to be met. The amount of money you are able to get depends on how many of these qualifications you are able to pass. If you have been employed and have been a resident of your current address for at least a year, some banks are able to provide you with that much needed loan. Other qualifications are that you should be at least 18 years of age, have a valid social security number, and have a regular source of income. Aside from those qualifications mentioned, other banks also consider your credit rating.

If you are considering the possibility of applying for a bad credit loan with the bank, you should first try to check out the various programs and packages available. In this way, you can see which ones will suit your financial situation as well as your financial needs.

Bad Credit Loans for the Military

Everybody gets hit by bad credit. That is why there are companies that offer various types of loans for different types of people x96 civilian or military. For the military, there are also companies that extend financial support through bad credit loans.

Bad credit loans give the military the chance to borrow some money when they are in dire need or want to make ends meet. Companies who offer this type of loan have various programs and proposals for the different needs and situations of people in the military. Various amounts are also offered. Some offer as much as $500 while others go as high as $1000.

Some companies offer both service and speed. They can process bad credit loans in a short period of time. They are able to attract interested military people because they can process the loan efficiently in a span of minutes. However, these companies must be able to gather and verify certain pieces of information. Once the information has been verified and everything is in order, the loan will then be released.

For some companies, a person is able to qualify for a bad credit loan as long as he is able to meet very specific requirements. These include being a military personnel on active duty, a full-time active or reserve personnel, or having a 20-year career as retired military personnel or having a rank of Department of Defense GS-6 or above. With these requirements met, the loan will then be approved.

Since many companies are offering bad credit loans for the military, experts recommend that interested parties should try checking out what they offer and comparing all the available options. That way, they can get the best rates possible as well as the best service for their bad credit loans.

Bad Credit Loans After Bankruptcy

Borrowers who have been filed for bankruptcy can avail themselves of bad credit loans. A lower monthly payment is one of the main benefits of bad credit loans. Bankruptcy is a legal process in which a person who is unable to pay his creditors is exempted from immediate payments. Generally, a period of six months is given to borrowers to refinance mortgages after bankruptcy.

Bad credit loans after bankruptcy provide opportunities for borrowers to rectify their credit history also. Numerous personal loans under different names are now offered to persons after bankruptcy. The interest rates of these loans vary depending upon the financial situation and credit score of borrowers.

One of the most common loans utilized after bankruptcy is the payday loan, also known as a cash advance. It is ideal in times of immediate crises. Most financial institutions offer unsecured loans after checking the credit score of borrowers. A variety of bad credit loans in the form of home loans, equity loans and refinance loans are available for refinancing after bankruptcy.

Researching lenders is the main step involved in the process of refinancing after bankruptcy. Today, there are a number of financial institutions as well as online mortgage websites providing bad credit loans after bankruptcy. Before applying for a bad credit loan, it is important that you gather and review all the available information, and compare the interest rates and fees of different financial institutions. Some institutions provide the assistance of professionals to guide borrowers on policies and procedures of bad credit loans after bankruptcy.

Bad Credit Leases

Bad credit leases provide people the chance to acquire property like cars and houses despite a distressing financial situation. Several companies have already been offering these leases so as to give people with bad credit the opportunity to live normal lives and clean up their credit at the same time.

A bad credit lease works just like any other ordinary lease. A property (like cars, buildings and homes) is given to another person for a certain period of time. During that time, the person who has been given the property has the right over the property and has exclusive possession of it. However, in exchange for that, the person who receives such property should pay the other party. Also, an added expense of the lessee is the interest that is added to the whole price to be paid. In the case of bad credit leases, there is greater flexibility in conditions and payment schemes compared to regular leases. After the stated period of time when every payment has been paid, the lessee is then the proud owner of the property.

Companies, organizations and individuals who offer bad credit leases give their clients the chance to own property despite a bad credit situation. They even try to reduce the interest rates so that the lessee is able to pay for the property and at the same time clean up his credit. Aside from that, they have fewer and less rigid requirements for lessees.

If you are interested in obtaining property despite having a bad credit situation, bad credit leases could very well be the solution to your problem. The World Wide Web holds a wide range of information regarding the various programs and packages offered by companies who specialize in bad credit leases. In this way, you can compare the different providers, enabling you to choose which offer will best suit you, your needs and your paying capability.

Bad Credit Home Equity Loan Rates

Bad credit home loan are home equity loans issued against low credit rating. Credit companies keep a track on people’s credit scores by following their credit payments. Missing payments or late payments can cause low credit ratings. Credit ratings are lowest when the individual has declared bankruptcy. The rates for bad credit home equity loans keep fluctuating based on the state of the national economy.

Some agencies offer loans even when the applicant is bankrupt. The process is simple and one can receive the funds within two to three days. For instance, some loans allow for a $500 loan per day. In this case, the borrower must be able to pay back to the lender $1000 per month. The loan will only be sanctioned for a citizen of the USA. He or she should have an active checking account. He or she should also be currently employed and be able to prove steady income.

There are different factors affecting bad credit home equity loans apart from credit ratings. The first factor is the debt to income ratio of the individual. When one applies for a loan, debt to income ratio is calculated based on monthly obligations and income. The rate offered is proportional to the debt income ratio. Lenders often refer to a formula called LTV — loan to value ratio. More equity or money down decreases the risks involved with lending. Therefore, a lower LTV may result in a lower rate of interest.

The type of property you are buying or refinancing also affects bad credit loans.

Common types of property are single-family homes, condominiums, manufactured homes and multi-family homes. Loans may be available for many different property types but the interest rate is lower for a single-family home than for a multi-family home. The less risky the property or the easier it is to sell off, the better the rate of interest. The occupancy type and the amount of loan also affects the rates.

Interest rates vary across the nation. Different states have different regulations and requirements that result in varying business costs. An aspiring homeowner who is unfortunate enough to have a low credit rating sees hope in achieving his dreams through a bad credit home equity loan. It is essential that he study the rates applicable on bad credit home equity loans to ensure that he gets the best terms for his mortgage in the long run.