Archive for the ‘Financial Services’ Category

By Tim H Lambert

Months before you begin to look for a new car or home, it is necessary to take steps to be approved for your credit loan. The first useful step is by making a list of all of your existing loans and credit cards, including account numbers, company names and monthly payment amounts. This step will assist you in analyzing the information on your credit report. If possible, include also all your closed loans and credit accounts.

Have a check up in your finances before meeting with good mortgage lender for a full credit approval. While you are in the process of being approved, your own credit report will be requested. The credit score typically includes all the data from all three credit bureau – Equifax, Experian, and Trans Union. The credit report shows the three credit scores from each credit bureau. The type of loan as well as its interest rate available for you is affected by your credit score. If you can’t understand what’s in your credit report, ask for the assistance of a mortgage professional and they will present proposals on the best way to improve your score. Once you have seen your credit report, make some correction if there are mistakes because credit bureaus often commit mistakes in the data. Remember that everything is done by compute so it is possible that you have some concerns on your credit report that must be corrected or disputed. Checking of your credit file is free of charge so take advantage of it.

After checking the credit report, you must face the real credit issues. In order for you to successfully address the real issue, you need the advice especially on the time it will take for all the issues will stay on your report as well as re-building your credit merit. It is ideal to talk to a financial advisor or personal counselor to working out of debt and ultimately trying to establish enhanced habits.

Now that you have altered your credit report for your own good, you must now understand how a credit score helps you in borrowing money. Below is the range of credit scores:

-Less than 620-Poor

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-620-680 -Average

-680-720 – Good

-720 – 800 – Excellent

-800-850 – not often seen

Having known the range of credit score, try to aim for good to excellent because being in the average category will require you to add more money in order to be approved in the loan that you want

You should know the rules that govern the credit scoring. The factors that affect credit scoring are the following:

* The payment history comprises 35% of your credit score. You must pay all your bills on time to have a good credit score.

* The connection involving your available credits against how much you have is about 30% of your credit score. If you are over 50% drawn against your available credit, this will count against you.

* Your payment history accounts to 15% of the credit score. A loan that is more seasoned can give you higher score.

* If you made inquiries on your credit report accounts to 10% of your credit score so you should make any inquiries to a minimum.

* Lastly, the type of credit you used accounts for 10% of your credit score.

About the Author: Improve your credit score now, go to Let the experts show you how to raise your credit scores.


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By Sean Goudelock

Finding yourself in the middle of a bad credit situation is not pleasant at all and some people would rather not acknowledge their indebtedness until it becomes too much to ignore definitely a bad decision. You do not want your bad credit to stretch out for a long period of time. The longer it takes you to fix your credit situation, the more resources it will require and the greater the possibility of you having to give up some or most of your assets. Some people who have left their credit situation to take a turn for the worse have been forced to leave their homes and sell their cars to be able to give something back to their creditors. This is entirely unnecessary if you pay attention to your financial problem right away as it is looming over you. You can fix your bad credit score with a bad credit loan.

Missing out on one or several of your loan repayments for even a short period of time can be a cause for alarm for your creditors especially when it has gotten to the point when they have to put their collection officers to the task of trying to call you up to make a payment. This flags you up for a bad credit rating and will make it difficult for you to avail of most other credit facilities and get approved for certain financial transactions. There are still, however, financial institutions that make bad credit loan facilities available for people who are unfortunate enough to fall into financial difficulty. You can use a loan consolidation facility for people with bad credit but, as you already are in bad light in as far as your creditors are concerned, it would not be possible for you to get rock bottom interest rates. In case you are having difficulties paying off your federal student loans, the national government has consolidation programs with certain concessions you can take advantage of in your attempt to fix your credit situation and improve your credit scores.

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Once you have consolidated your bad loans in a bad credit loan consolidation facility or using a federal loan consolidation instrument, you have to make sure that you are able to meet your repayment terms or you will be in even deeper financial trouble than you started with in the first place. Carefully drawing up a sound and realistic plan, taking into consideration your cash flow and projected expenses, is the best way for you to deal with your situation and will give you a roadmap that you can follow. Loan consolidation as a solution to having bad credit serves to decrease the amount of regular loan repayments to match the borrowers cash flow. Being able to follow through with the required payments under your new consolidated loan contract will earn you more points towards your credit score, getting it back to more acceptable levels within a certain number of years of excellent payment history. With prudent money management and disciplined saving, you will be able to succeed in putting your finances back in order, with all your financial obligations properly allocated for in your income and perhaps a little more left to put towards future financial needs.

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