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.

Picking 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

Competitive 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.

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

After 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.

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.

When 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.

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 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.

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.

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

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

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

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 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

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.

The credit score plays a vital role in your financial life, so you should be aware of your credit ratings. As you know to qualify for any kind of loan or credit card and even to get a better job it depends on how good credit score you have.

The credit bureaus collect your credit report from the creditors with whom you have different accounts and how you make the payments to them. The numerical scores are created for you depending on the information passed by the creditors. This score is called FICO score and the FICO score plays an important role in your life as whether you want to buy land or a cell phone.

Credit reports and credit scores both are considered very important like credit report is viewed as a mark sheet and credit scores are looked as higher ranks. If you have high ranks it said that you have good credit report. Anybody having credit score more than 600 is considered to have good credit ratings.

In order to obtain reliable mortgage rates, it is very much necessary to have good credit scores. To obtain home loans banks are giving special preference to persons FICO score due to the global recession. Due to excellent credit score you will have an opportunity to secure maximum capital only in interest.

It is always the good credit rating that helps you to get lower rates on insurance, say for instance your credit ratings are thoroughly viewed by auto and the most of the health insurance companies so that they can make the best of it by obtaining the premium on insurance. Most of the time people hardly report case against their policy when the have high credit score, whenever the customers gets reasonable rate on their life, health or auto insurance they get the reward.

Employment opportunities have a great impact only if the credit ratings are good enough. In order to make you good enough regarding money it is the duty of the employers to thoroughly check your past history specially your credit report. So it is very obvious customers having a good credit scores will be treated in a special manner rather than those having bad credit score.

Credit scores play an important role in your daily life. It is very true that if you have a good credit score then you are bound to lead a good life. However it is also important to constantly have a look on your credit because it changes at times and new information is always added.

Go through this article for more information http://www.ftc.gov/bcp/menus/consumer/credit.shtm