Occasionally, businesses face financial constraints throughout their operations resulting in what is known as Bad Credit. It is an unwelcome scenario where getting approval for obtaining equipment finance becomes somewhat a pipedream, regardless of whether the equipment in question guarantees improving the prospects of the business. Known financial institutions like banks are highly likely to deny you loans, but that should not mark the end. Today, there are specific lending institutions that will look beyond your bad credit and avail the required equipment for getting your business back on the right track.

Equipment Financing

Equipment finance is a short-term loan given to businesses for the specific reason of purchasing equipment required for normal operations. However, it is a collateral loan whereby equipment bought can be repossessed if the loan agreement has defaulted. Lenders usually categorize it as a low-risk loan since it is given with collateral. Hence, lower interest rates compared to standard loans. The loan period is usually between 3 and five years.

Qualifications for an Equipment Finance Loan

One must provide proof of a credit score of at least 600; business must have been in operation for at least 11 months, and with a proven revenue generation of $100,000. It is within the jurisdiction of the power of the lender, however, to give their assessment should you fail in any of the above qualifications. Obtaining equipment finance gives you a reprieve regarding correcting your bad credit score.

How to grow the prospects of getting your equipment financing approved despite negative credit

Any effort made towards improving your credit gives you a better chance of getting your loan approved. Highlighted below are some proven ways which you can use to bolster your chances of having a successful loan application.

#1. Get a cosigner with a good credit – When your cosigner has a positive credit standing, lenders can easily consider your application as the cosigner provides loan security. Financial institutions consider a consigner equally obligated as the borrower.

#2. Provide additional assets as collateral – If you have other valuable equipment, you can present them to the lender as collateral as they strengthen your loan application status. Real estate property can also act as collateral.

#3. Present a more significant down payment – This can only be applicable if you have sufficient funds to buy out a large part of the total loan amount. Presenting a larger down payment gives you credence to be considered as a candidate for poor credit equipment finance by lenders.

#4. Proof of good business prospects – You may prove to the lenders that your business is growing strong by providing valid documents like bank statements. If you can convince lenders that your business revenue has been increasing steadily over the last few months, your loan application is as good as successful.

#5. Consult financial experts – You are bound to face a hard time with most lenders the moment you apply for a loan because of your bad credit. Some will dismiss your application outright without giving it a second thought and convincing them otherwise could prove futile. However, seeking assistance from loan experts can be a good idea. They know ways and means of maneuvering through different lenders despite having bad credit.

Another option is to take the time to improve your credit score. Click here to get more information on how you can make that ha

If you’ve got bad credit but you want to get a home loan, you may be worried about your options. Don’t panic – having bad credit doesn’t mean you can’t get a home loan. Just follow these top tips and see how things go.

Time your home loan application

Most lenders will be wary about lending money to you for a home loan if you have just been declared bankrupt or recently discharged from bankruptcy. You need to wait until your financial situation is as stable as possible before you apply for a home loan. Try to time your home loan application for when you have a stable address and can show evidence of a regular income.

Get a larger deposit

Having a larger deposit or down payment for your home loan means that you’ll need to borrow less money from the lender. This reassures the lender that you are less of a risk to them, and it can also reduce the amount of money you pay overall in interest and additional fees.

Get a guarantor

If you have a very close friend or relative who is able to act as a guarantor, you may be able to get a home loan with bad credit. Make sure that your guarantor is 100% comfortable with the position though and ensure that they have the funds to pay back the home loan if you default on your repayments.

Work with a bad credit specialist

Finding the right home loan provider is a huge step to getting a home loan with bad credit. Find a lender who works with people with bad credit to avoid applying to lenders who may automatically reject you on account of you having bad credit.

Show proof of repaid loans or financial stability

If you have bad credit, it may not necessarily mean that you are financially unstable. If you have proof of repaid loans or bills that have been paid on time, show these to your lender to reassure them that you are a responsible borrower and will be able to pay back your home loan.

Borrow less

If your credit is bad and you’re looking for a loan for a large home, you may need to considering borrowing less and downsizing on the property that you’re after. This could also mean that you’re under less financial strain to make large repayments that could cause you stress.

Budget properly

Always be realistic about how you will be able to afford your repayments. It’s easy to get carried away with a home loan when you’re tempted by finding your dream home but budget properly and make sure that you’ll be able to repay your loan. Failing to repay what you owe could result in you damaging your credit further.

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.

charge off account

There are times when creditors are not successful to collect the past debts from the consumers even after trying several times. In such an occasion, they will consider the debt as charge-off and hence they will stop all collection efforts. After a long time, you will find that some junk debt buyer or a collection agency is contacting you for the same account. This happens because creditors oftentimes sell the charge-off account to collection agencies and junk debt buyers for pennies on the dollar. These collection agencies will later contact the debtor for the same debt by adding on outrageous interests and fees.

Collection agencies have their own strategies of collecting debts from the consumers. It is important that you check the statute of limitations in your state before you start dealing with the collection agencies. If you find out that the statute of limitations of your state has expired for the said debt, then you can send a dispute letter to the collection agency informing them about the expiry of the SOL. This will stop them from taking any legal actions against you.

bad credit repair

If the charged off debt is more than seven years old, then it has to be automatically removed from your credit report as per the Fair Credit Reporting Act. If you see a past debt showing up on your credit report that is more than seven years old, contact the credit bureau that is reporting this negative item and they will remove it. Once the negative item is removed off your credit report, the collection agency cannot put it back on your report. Just in case, if the collection agency is contacting you for the same debt even after it is removed from your credit report, then you can take strict legal actions against them.

Many people believe that paying off a debt to the collection agency will remove the charge-off status from their credit report. This is not true. Even through the debt is too old and is past the statute of limitations, if you consider paying it back, it will show as paid and the charge-off status will still remain on your credit report. At least, its still better than not paying it back.

Helpful Article:

http://www.consumer.ftc.gov/articles/0058-credit-repair-how-help-yourself

Anybody who has ever tried to apply for a personal loan has probably been told that they will need to open a bank account in order to qualify. This is even truer if you have a bad credit score and need a personal loan.

If you are wondering, “Can I get a bad credit personal loan with no bank account?”, it is important that you know all of the facts. Here are the answers to 3 frequently asked questions (FAQs) about your situation:

1. Can I qualify for a bad credit personal loan with no bank account?

A: There are two main types of personal loans: secured and unsecured. The main difference is that, with secured loans, the lender requires you to put up some sort of collateral to get the loan, usually in exchange for a lower loan interest rate.

In the case of a secured personal loan, you may not be required to have a bank account. However, for an unsecured loan (whereby collateral is not needed), a bank account is often required in order to qualify.

2. Bank account is necessary in case of payday loans which is also a kind of personal loan and in order to get the cash you have to make a signature in a future paycheck to provide it to the lender including the fee.

3. It would not be serious if you presently do not have a bank account ,the reason behind not having bank account may be because your saving account in the past have been rejected. Well in order to have a bank account with bad credit is that you opt for second chance checking bank where the bank decides not to make an enquiry regarding your links with bank customer of high risk which is also known as Chex system which clarifies that you need to get an signature by them without taking in to consideration of your credit score.

People with bad credit often face difficulties in every phase of life when they are looking for any new credit from potential lenders. There are ways to improve the credit ratings and you need to take positive actions and change your attitude towards money. Here are some good tips on the road to debt recovery.

The first thing that you need to do is to order a latest credit report from the credit bureau. Look for any inaccurate items on your credit copy and get it fixed immediately with the credit grantor or the credit bureau. You need to take immediate actions because inaccurate items reported on your file are one of the reasons of your lower credit scores and your potential to get new credit.

If your credit scores are getting hurt because of the accurate negative items, then you must contact the creditor and work out payment arrangements with them. It will be a good move to pay off those debts that are catching the highest interest rates.

If you are overwhelmed because of your existing debts, contact a non profit credit counseling organization to work out a debt consolidation plan. A debt counselor will contact your creditors and negotiate with them to reduce the existing interest rates. This can reduce your monthly payments by up to 40%.

Stay away from any credit repair services or company offering you debt consolidation loans. These companies will put you deeper into debts. There are many companies that will advertise credit repair packages on the internet, TV or radio or send unsolicited mails or emails.

You don’t need to keep those credit cards active that have not been used for a long time. It will be a good idea to sell some valuables or liquidate assets and use the money to repay the existing debts. You must follow a very tough budgeting so that you can save more money and use it towards paying your existing debts.

Consult your debt counselor and get all the existing debts paid off. Pay the rent and utility bills in time and be regular in your mortgage and car payments. This will definitely build up your credit scores and your car and home will remain safe.

Once you have paid off your existing debts, apply for a secured or an unsecured credit card and make timely payments. You may also apply for a department store or a gasoline credit card. This will definitely improve your credit ratings.

Use your credit card responsibly and pay the bills in time.

Education costs are increasing every year and students have to go through a lot of expenses that often go unmet. Students with bad credit often wonder how to get qualified for student loans to complete their education. There are many better ways to receive bad credit student loans that can help you pay for everything.

Money above student aid: There are many government aids and many students will often qualify for it. Government student aid is a better form to cover the bare essentials of attending the college or university of your choice. Stafford or Perkin loans are available but they have a strict borrowing limits on the basis of the number of college hours you have under your belt.

A private student loan can help you in paying your tuition, housing, book expenses and many other expenses. You may engage in some part time jobs to have an extra income and in order to repay back the loans while you are pursuing your studies and thereby improving your grades. You will have to undergo a credit check in order to get approved for a private student loan, but most often you will get qualified for these loans.

In order to increases your chances of getting approved for the private student loans, it is a good idea to apply for the loan with a co-signor, especially someone who has a better credit than yours. You can apply for the loan with your parents, or your family members and friends. The lender will look into the credit history of the co-signor so that your chances of getting approved for the loan become much easier.

When you are deciding for the loan amount, make sure that you borrow that much to cover your semester or academic year. Private student loans for bad credit will be disbursed all at once which means that the loan is meant to last you for the entire semester or the academic year.

You may apply for these loans online at better interest rates. Traditional lenders often charge higher interest rates. The online lenders have more capital to offer and the money can be transferred to your checking or savings account within the earliest possible time.