Category Archives: Credit

Powerful Tips on How to Best Improve Your Credit Score for More Trust from Lenders

Credit Score

Credit scores are important. Anyone who has dreamt of owning a home, or starting and growing their own business, will assuredly need a loan at some point in time. Credit can also be helpful – if not necessary – for other large expenses such as buying a car, furnishing a home, or traveling.

Because credit is useful for so many things, it is important to have a good understanding of what makes someone a strong borrower, and how they can improve their chances of having access to the credit they need, when they need it.

Chief among these factors is a person’s credit score, which is often the first litmus test a lender uses to determine whether a loan or credit card applicant is someone they want to help. Credit scores involve complex algorithms, but there are some simple steps that you can take to make sure your credit score does not send lenders running.

  1. Start building a credit history. If you do not yet have any loans or credit cards, apply for one or two low-limit credit cards. When you can, take out a small loan. Do not run up large balances, but use these credit facilities for daily purchases and make sure to make payments above the minimum, and on time. Try to pay off the balance each month if you are using your cards for daily living expenses such as groceries and household expenses. Credit scores rise as a person builds a history of handling credit responsibly, so you cannot have good credit score without building a history.
  2. Do not miss payments. Always, always, always make at least the minimum payment on time. Missing payments not only counts against your credit score but also brings penalties or additional interest that make it even harder to pay down your balance in the future. Many loans or credit cards that come with attractive rates will reset to much higher rates if you miss a payment.
  3. Find your sweet spot for a number of credit accounts. It is important not to accumulate too many sources of credit (loans or credit cards). Credit scores suffer if you have too many or too few. If you find that you have got too many accounts, you can close a couple. Too few, and you can add a new credit card or two (just be sure not to spend unnecessarily when you get your new cards).
  4. Do not use all your allowable credit. Credit reporting companies use your credit utilization rate – total outstanding balances divided by total amount of credit that you have access to – as part of determining your credit score. What they want to see is that you are not running up credit balances simply because you can. Try not to let this figure rise between 25 to 40% on a regular basis. If you pay off your daily-use credit cards at the end of each month, this should not be a problem.
  5. Track your score and underlying factors. Free credit reporting tools are available through some credit card providers and independent websites. Using these tools can not only keep you updated with the credit score that lenders will see but also point out areas for improvement based on your specific circumstances. They can help you determine the right number of credit accounts, keep track of your credit utilization rate, and may even remind you of loans or cards that you have forgotten. Consumers have better access to their own credit data than ever before, so use it to your advantage. credit-score

The world of finance and credit can be a tough place to navigate. Deciding how to finance a business or a large purchase can be tough enough. First, it is important that you have many options. While you have plenty of tools at your disposal, you need to make sure you have spent time preparing, so that you will look as attractive as possible on paper to potential lenders. Maximizing your credit score is one big way to earn the trust of lenders, so you can get the credit that you need to grow your business or buy a home when the time is right.

Sam Wilson

Sam is a financial specialist who’s helped people improve their credit scores and financial state across the years. Sam writes for fastcredit.repair and is dedicated to helping those in need. In his spare time, he likes to relax and take his kids to the local park.

Geting Started Borrowing Money and Building Credit

Money

When you’re fresh out of college, you are ready to start doing big things like get your first “real” job and buy your first home. You may need to buy a car, or you may want to start your own business. But in order to do some of those things, you’re going to need financing, and as a young person, you’re likely to find the process difficult and maybe even a bit confusing. You may start having this problem even earlier, like when you try to get financing to pay for college or to buy a car.

It’s important that you know what to expect with financing. Here’s a look at some of the most common financing types to help you understand where to start and how to build your credit:

Short-Term Loans

Short-term loans like installment loans online are a common source of funding for students and other young people. Some short-term loans cause more trouble than they’re worth, such as payday loans that have excessive interest rates. Installment loans are personal cash loans that have minimal requirements. You don’t have to have any credit – you just have to have a verifiable source of income and some other documentation. You can get small amounts – up to $1,000 or more, depending on the lender – which you can use to handle emergency needs, like fixing your car or making up the difference on a semester’s tuition.

Credit Cards

Credit cards are another popular form of financing for young people since they are easily obtainable. Some providers want you to have a little credit history before they will approve you, but others provide cards with low credit limits for those with no credit. Gas cards and store credit cards are the easiest to get, and they usually have limits of just a few hundred dollars.

CreditCredit cards are also popular because they give people the freedom to buy whatever they need. However, students often overuse credit cards, so they should exercise caution with them. The high interest rates make it very hard to pay them back. Getting that first credit card can be an easy way to build credit, but if it’s misused, it can also bring down your credit.

Student Loans

Student loans used to be easier to get, but with so many defaults and the weaker economy in recent years, lenders have gotten tougher. You’ll most likely need a co-signor like a parent who has great credit to get approved for a student loan. You won’t have to pay anything on the loan while you’re in school, but six months after graduating, you could be looking at some hefty bills.

Fortunately, interest rates are typically low on student loans, but the monthly payment can be quite high if you borrowed a lot. You’ll have the ability to get on a structured repayment plan or to defer your payments if you find yourself struggling, but student loan debt can almost never be discharged. That means you’ll be on the hook for that debt until you pay it off. Borrow wisely.

Auto Financing

If you’ve used credit cards responsibly during your time in college, you may have enough of a credit history to be approved for auto financing to buy a car. Lenders will also consider your income when they review your application, so if you have a nice-paying first job and you have some credit, you have a better chance of getting approved for a moderate loan. But if you’re trying to buy a BMW on an average starting salary, you can forget about it.

Mortgage

Mortgage

Buying your first home is a momentous occasion, but you’ll have to have a lot of credit history to get approved. Mortgage lenders take a fine-tooth comb to your financial portfolio when considering your application. They will look at your job history, your credit history, your outstanding debt, and other financial issues. You must have a good history, a strong down payment, and a low debt-to-income ratio. The best thing you can do when you get out of school is start saving for your down payment and be sure to borrow responsibly.

Building your credit can be easy, but you have to take it slow. Start with small cash loans when you have an emergency, and use other credit cards and loans strategically to get what you need while building a positive payment history.

How to Improve Your Credit Score

How to Improve Your Credit Score

Do you ever think about your credit score? Chances are you have if you are in the market for a new car or even to buy a house. Your credit score doesn’t seem important when you are young and don’t have a lot of responsibilities, but it is. College students are famous for racking up credit card debt in college that will stick with them until later in their life and ruin their credit.

If you are thinking about your credit score, you are probably trying to come up with ways to improve it. Doing this is actually not as hard as you probably think it is, but it will take some work in both the short and the long term. A lot of this depends on how bad your score is to begin with, but there is no mountain too high to climb in terms of credit.

Four Ways to Improve Your Credit Score

Be Fastidious with Your Credit Report – Don’t just look at your score and throw your report away. There could be damaging things on it that are incorrect. Consumers have the right to challenge anything on their report that they thing doesn’t belong. You might be surprised at how much your score goes up when even small debts are taken care. They really add up. Credit agencies are more than willing to work with you to help get rid of these if they are proven to be wrong.

Start with High-Interest Accounts – If you have multiple loans or credit accounts you are trying to pay off, start with the higher interest ones. This makes sense because the higher the interest rate, the more money you are going to pay to get rid of it. People don’t always realize how much interest really racks up on their credit accounts.

Get a Credit Card – A lot of people have probably told you to never have a credit card because they are trouble. There is some truth to this, but in order to have a good credit score, you must have some credit in the first place. The only way to build your credit score is to borrow money and pay it off. This will also create a history that lenders can look at to see if you are a viable option for a loan. In short, you can’t have a good credit score if you don’t have any credit. This seems obvious, but a lot of people don’t understand it.

How to Navigate the World of Finance

Finance

If you are in need of money, you must understand where you can find it and the factors that lenders will look at when they make their decisions about whether to approve an application. You should avoid taking risks that might harm your future so look closely at the advisability of borrowing against real estate or from your 401 (k) which is your retirement fund to provide comfort in your later years.

Your credit score is central to being approved for a loan and you should certainly obtain the copy you are entitled to annually from the three bureaus; if there are any incorrect entries on any, report it and get corrections done as a priority. One of the factors in your credit score is your level of debt against your available credit. If for example you pay off a credit card balance with a personal loan, don’t close the card account because you will be reducing the credit you have access to even though best advice is not to build up a balance once again.

You should only borrow what you can afford to pay back to avoid getting into trouble even if a lender offers you more; that is temptation similar to the irresponsible use of a credit card.

Your Mortgage

Where you are looking for a mortgage, try to make a significant deposit; it will mean immediate equity in the property but often a better interest rate as well. Mortgages are long term, up to 30 years, and though future income is not guaranteed you can only make informed decisions when proceeding with a purchase. Down the line your real estate may well be able to provide security towards further borrowing.

Personal financeHopefully you manage your finances well in the future and if you have been saving in a 401(k) retirement plan for some years, compound interest will be your ally. Regular monthly saving grows far more quickly than you would expect while there are tax advantages in such an investment anyway. It is your money and you have access to it if you wish, though you are obliged to repay from your taxed income. The problem is that if you withdraw any money, you will lose the growth that the borrowings will have earned you until it is repaid. There are better ways to get cash than touching your 401(k) though some will require that you have a good credit score and you make a realistic application. This is where your real estate can come in.

Refinancing

Current mortgage rates are low and refinancing is certainly something to consider. You need to look at all the elements of refinancing, including all fees for settling an existing loan (with nation21cashloans.com) and setting up a new one. If you have significant equity then you can take some cash out when you do the refinancing.

This is something that is certainly worthwhile if the sums add up. If you can get a fixed rate you will know exactly what your future commitments are while there are tax benefits as an additional advantage. As long as you accept the consequences of not making your payments on time and you can accept the term involved, there is little against refinancing if all the detail is included.

Home Equity Loan

You will be borrowing additional money without it affecting your initial mortgage that continues to run. Such a loan is for a fixed term at a fixed interest rate that will certainly be higher than you are paying on your mortgage.

Such a loan is fairly simple and can bring tax advantages yet you will need to have a good credit score and you should understand how much you will be paying back in total.

Home Equity Line of Credit

This is a facility that also offers your real estate as security. It is flexible and you can take money as you need it and again there are tax benefits but the interest rate charged is variable. Be certain that you understand everything because sometimes you will be offered an interest only start with your monthly repayments rising after a certain period. Just as with credit cards, there is temptation to spend when you have a credit facility like this. Think about the number of people who have succumbed to temptation and now have expensive debt on their credit cards.

Surviving The Economic Crisis And Credit Crunch

credit crunch

It is not only you, but the entire nation is struggling to survive the debt trap and to find ways to manage it effectively. The economic crisis along with housing and credit crunch has impacted the lives of many all over the world. You may even at times feel powerless and confused facing the ever-changing and turbulent economy. Therefore, as a good citizen, you can contribute to the nation’s management of debt by carefully and strategically planning and managing your personal economies which include your monthly income, investments, and all your expenses. To have a debt management plan is therefore extremely essential.

Control In Your Hands

It is true that you cannot have everything under your control and neither take the reins in your hands. There are some aspects of the economy and financial market that you should accept and work with, but there are also some aspects which are entirely in your control. At all times, you can have the control of your spending and your budget to cope up with the ever changing financial situation. No matter how confusing and disturbed things might get at the national level. Your fundamentals of smart management of personal finance remain the same always.

economic crisisChange Your Habits

The first step to the ladder of success in debt management is to change your spending habits. To survive the financial crisis to have to make certain sacrifices which are not at all easy, given that you have been doing it for so many years. But you should think about the benefit and the ultimate peace that you would have in mind when you achieve financial freedom would be an enough boost to do so and also for the benefit of your family, who matters the most to you. If you go to the mode of denial as if nothing has happened would result in insurmountable debt situation and make things even more challenging.

Be Wise And Smart 

When you have to take some life changing decisions, it is imperative that you be wise and smart. To take some bold but useful decisions does not need big changes but even a small change can make a huge impact. Being a smart shopper is one of them. When you shop with a list in hand and cash, you do not overspend. Try to stick to discount items more so that you can also save while spending on your bare necessities. If you have dues on your cards, try to pay them on time so that you avoid penalties and surmounting debt as well. This would prevent you to take any credit card consolidation loans to clear them as well.

Go For Negotiation

Negotiating helps a lot in clearing off debts, and if you explain your condition and ask for a reduction in the interest rate or waiver of a certain amount, it would help you to clear the dues faster with less amount. Plan for exigencies and have an emergency account to save money for such purposes. Maintain a god credit score and make wiser long-term investments to have a better borrowing capacity.

Consolidating your credit balance to assuage your financial pitch

credit

When you lag behind your payments, it might appear like you have nowhere to turn or rest. You can find a potential option of entailing organized and streamlined bills through full-scale debt consolidation. It’s fiscal dynamic enabling you to roll various debts into one loan with a minimized rate of interest and an enhanced and lengthier payment term. As a result of this, you can pay less each month to one lender only and not a flurry of money lending companies. While it’s not as drastic or obscure as debt settlement or debt management, debt consolidation includes a fair amount of pitfalls or sneak peeks that you need to remember.

Considering the aspects

You need to conceive the aspects of debt consolidation before you actually rope in one. There are private lenders and financial institutions that give these loans. These firms have a clean and transparent website with easy to seek rates and fees, a clear description of the lending pattern and a streamlined rate-quote mechanism. These companies don’t require an overwhelming credit line and slightly stricter requirements for devising a loan. Your debt-to-income ratio essays a crucial role in this regard. You need to pay some processing fee every time you pay check. There are competitive rates as well.

financePicking the most viable ones

The credit card loan consolidation patterns entail a balance of flexible terms, reduced fees and minimized rates of interest. There’s a wide gamut of loan amounts. You have different lenders who cap their loans at comparatively low amounts to shut out prospective borrowers. The most notable ones will approve these loans for a sum of $25, 000-$35, 000. The loan terms entail wide range as well. Some lenders are also strict pertaining to the span of the loan terms provided. The best ones are certainly more flexible as they enable shorter terms like a year. The longer timeframes are 72 months or even more.

Additional considerations

personal financeCompetitive rates of interest imply obtaining loans depending on the credit. You’ll find that most lenders in the market keep their field of prospective of possible rates very competitive. The fees are kept reasonable too. If the lender charges rates other than the interest one like origination fees, late payment fees and defaulting payment fees, you need to know that these are always reasonable when compared to those charged by surreptitious competitors. The key factor here is transparency. Instead of imploring consumers to put their personal information and details, trustworthy lenders actually ask you about the extent to which you’re allowed to borrow. They also underline the loan amount alongside the exact rate at which you can qualify for the loan. They mention the potential terms and fees as well.

An overall study

In its totality, credit card debt consolidation is certainly true to its aspects and terminology. While consolidating your debts, you are actually roping in a new, bigger loan for paying off a handful of current debts. Its short-term relief since the single loan with a marginalized interest rate is used for longer span of time. It can minimize the amount to be paid each month quite drastically. Click here to learn more.

Free Credit Scores in India now a reality

credit score

Credit and credit scores are becoming increasingly important in our lives. Whether it is access to loans, better interest rates or for job offers, CIBIL scores are being used in almost every sphere of our lives.

A common question that crops up is:

How do I get my CIBIL score ? Or from any bureau for that matter.

You can obtain a FREE credit score by following these simple steps:

  1. Visit www.freescoreindia.com. Register by providing basic information regarding your name, E mail and current city of residence
  2. Provide your PAN number, Date of Birth and Aadhar Card number. In case you do not have your Aadhar number, you may upload a copy of any other address proof that you may have such as passport, ration card, rental agreement etc
  3. Validate your identity

credit scoreAfter you submit this basic information, your credit report and score will be generated. A notification is sent to you once the report is ready. All you have to do is login to the website to get access to the latest in the world of credit and credit score. You also get access to several savings opportunities which will help you to manage your credit and save money. Every customer gets access to a customised space on the website which has a wealth of information on a person’s credit profile, various financial tools such as loan calculators and score simulators, customised offers on home loans, personal loans and credit cards and the latest news, launches and product offerings in the world of finance.

Now, getting a credit report is no longer cumbersome. The entire process is completely free. No credit cards, no hidden charges, completely secure and you can opt out anytime.

It is to be noted that the credit report provided is from Equifax which is among the largest credit bureaus in the world and among the 4 licensed to operate in India by the Reserve Bank of India.

Written by Arun Ramamurthy, founder of freescoreindia.com which is India’s premier credit management platform.

Getting a personal loan irrespective of your credit history

personal loan

Sometimes we get into financial mess that may not be created by us. If you are one of them and are feeling trapped, there is an easy way to get out of this mess. Sometimes you get frightened thinking that the lenders will turn down your proposal because you are a bigger risk to their finance. Now you don’t have to go through such difficult financial situations. Recession has left its toll on many of us. People who never thought that their credit will get bad are now facing this tough situation. You can easily apply for a loan with different loan companies. You just have to do a search on the internet, shop with different companies and figure out the best deal in your favor.

What makes a loan high risk? This is that type of loan which is applied by a borrower who has bad credit and is in tremendous need of cash. Just do a search on the internet as per your requirements and you will find different lenders. Although they may not specialize in this type of loan, but they can approve your loan requirement. These lenders have a fair idea about such requirements of the borrowers. It does not matter whether you own a car or a home, to put as collateral, you still have the chances to get approved. All you need is a steady income and an active checking account, and many lenders will be willing to do business with you.

Based on the collateral that you have to put against the loan, you can apply for a bigger amount. An unsecured loan that is offered without collateral can range between $1,000 to $25,000 and you can pay it back between 1 to 25 year time frame.

creditWhen you are applying for an unsecured loan, it is obvious that the interest rate will be a lot higher considering the risks involved with it. Hence, it is better to pay back a small loan quickly than letting the interest charges kill you slowly over a long period of time. Hence, you should borrow a small amount, so that you don’t end up paying a lot in interests and fees. And once this loan is getting paid off, it will improve your credit history. Once your credit score is back up, then you can get better deals from the lenders.

Application process is very easy. You just have to get online, fill the application form and your loan will be processed. Make sure that you have fully read the terms and conditions in the contract copy to avoid any confusions at the later stage.

Knowing the gimmicks of the credit card reward programs

Almost every credit card company offers reward programs to their customers. Some programs may be more rewarding than others. Therefore you should carefully read the fine prints and see how the reward program works. You should also have a fair idea of how to select a credit card that suits to your lifecycle. Credit card companies are there in the market to increase their profit margin, so they will keep a close eye on customers who don’t keep a close eye on every detail about the reward program. As an informed customer, you should be aware about some of the traps and don’t lose out any good deals.

Credit-card-reward-programeCredit card companies will introduce new offers including rewards and bonuses that sound very enticing in the beginning. But at the end, it turns out to be very complicated and hard to follow. One of the complicated reward programs is the rotating rewards categories. In this program, the credit card company changes the types of purchases which qualify for the rewards every quarter, and the consumer has to sign up for them in each quarter. If he does not sign up, then does not earn any rewards on those purchases. Credit card companies assume that people will usually forget to sign up on time.

Another way the credit card companies try to catch new customers is by offering savings, but they make the redemption process very complicated. For example, a gas card is offered at a 25 cent discount on up to 20 gallons of gas at their proprietary stations, but the catch is that the customer has to spend $100 every month on the card. This way they are forcing the customers to buy their products in order to get discounts on their items. The rebate was automatically applied at the pump when it became eligible to use, but the remaining discount did not carry over to the next visit to the pump. So if someone needed only 10 gallons of gas, the discount on the remaining 10 gallons got wasted.

Things get more complicated when you do not know how many reward points are available or how many points have expired. And there were cases where points were not applied in the correct ratio on the specific category of goods or services offered. Therefore it is very important to read the fine print very carefully and get the full benefits of the reward program. Credit_cards

There are some program where the rewards or bonuses don’t start until a specific amount of money is spent on the card and the credit card companies allot a very high amount, making it tougher for the customers to get the benefits. For example, if you want to avail 15000 reward points or flight miles, your spending on the card in a year has to be above $40000. This type of offers can tempt the customers to do excessive spending, without realizing that they can later get into deeper debts, if they are not able to pay back the money to the credit card company on time.

Sometimes, a credit card company offers higher bonus incentive on some purchases, and the additional percentage is capped off after a certain dollar amount is spent on that card.

There is another clause by the credit card company regarding redeeming the points. There has to be a minimum number of points available in your account before they can be redeemed. Many people fall into this trap and they start overspending to get more points, and the credit card companies are counting on this.

How to remove a judgment that is being reported by the credit bureaus

Everyone wants to manage his finances in the best possible ways. You can either do it by earning money from different sources, or borrowing money from different banks or put your house, car as a collateral in getting approved for the loan. No one can predict the future and no one knows the damage on your credit report can hurt you financially or socially. Based on the credit scores, we can determine a person’s credibility, his payment history, and how he had been using his credit. In short, it is a report that analyzes whether the person is worth of any new credit or not.

Remove a Judgement

Remove a Judgement

If you have a judgment on your credit report, it clearly gives an indication that you are no more worth of any new credit and finance. In order to get rid of such judgments, follow the simple steps mentioned below.

It is important that you feel confident and understand the concept of basic human rights as per the individual laws in every state. As per the laws, every individual has the right to challenge any inaccurate item showing up on his credit report.

Your next step should be to carefully review your credit report and see that everything reported on your report is correct by all means. If there is any error in it, it must be the errors reported by the credit bureaus. You must immediately contact the credit bureau who is reporting this inaccurate item and get it fixed as soon as possible. You might face a few hurdles in getting a judgment removed from your credit report. If you still owe to the creditor who has filed the judgment against you, then try to make out some payment arrangements with the creditor of pay off the judgment as soon as possible.

Credit bureaus

Credit bureaus

The next step is to send letters to the credit bureaus and dispute the judgment that is showing up on your credit report. You must point out all the errors that can be removed from your credit report and make a request to remove the judgment. Usually, the credit bureau will take 25 to 30 days to verify the disputed items with the original creditors. If your dispute is found to be correct, then the negative item will be removed from your credit report.

During this time period, you don’t have to do anything. Once you have the updated credit report, you will come to know which portion was verified by the credit bureau and which item was removed based on your dispute. Even after that, if you still think that there is something showing up on your credit report that should not be there, you can again contact the credit bureaus and request for removing that negative item. Remember that its a big achievement if you can get a judgment removed from your credit report.

Though you might be tempted to think you need a masters in taxation to keep your finances in order, in this case a little persistence and legwork should go a long way.

Helpful Resources:

http://www.usa.gov/topics/money/credit/credit-reports/bureaus-scoring.shtml

https://www.ftb.ca.gov/individuals/liens/credburu.shtml

Can I get a Credit Card with Bad Credit?

Introduction

The recent economic crisis has affected the British taxpayer in a number of ways. Many have seen their disposable income dwindle, whereas others have been forced to cancel subscriptions and memberships in a hope to soften the blow of the increased cost of living.

Credit cards

Credit cards

Credit Crunch vs. Credit History

One aspect of people’s finances that has been indirectly affected by the recession is their credit history. This is because; when money is tight, any unexpected expenses such as car breakdowns or boiler call-outs can break the budget and force important bills to go unpaid. When this happens, the provider will often give you a few days to recover the arrears on the account prior to reporting a missed payment to credit reference agencies. If, you are still unable to pay having received notification from the provider, this will then be reported to credit reference agencies as a missed payment which will ultimately have a negative effect on your credit score.

Getting Approved for Credit

Having a poor credit score will affect your chances of being approved for credit in the future; it will also mean that you’re likely to have to pay over the odds for your credit. This is because lenders (both credit card and loan lenders) work on a risk-assessed basis, therefore if they are lending to high credit risk customers (those with bad credit) – the rates they offer have to be higher, if they are lending to low credit risk customer (those with good credit) the rates offered will be lower.

In order to recover their credit history, many look to apply for credit cards. However they are often left confused when presented with the sheer range of credit cards on offer these days. Low rate, foreign usage, reward points, cashback cards, 0% purchase and 0% balance transfer are just a few of the terms that you are likely to be confronted with when in search of credit cards.

Bad credit

Bad credit

The Credit Builder Credit Card

However, when you have a poor credit history, there is only one credit card you should really be looking at and this is the ‘credit builder’. These are readily available from a range of providers who specialise in offering credit to those who have been refused elsewhere.

These cards will come with higher rates of interest; however they will help to improve your credit history providing you manage them immaculately. One way of avoiding these high interest rates is to pay the full balance off at the end of the month

Conclusion

So the simple answer is; yes, you can get a credit card with bad credit. The only problem is; you will have to pay higher rates for the privilege. However, if you can prove you are able to manage the credit, and never miss payments or exceed the credit limit – it will go a long way to improving your credit history.

This article has been written by Jason Scott on behalf of Guarantor Loans Online.