Tag: credit score

Will a Bank Give You a Loan in Your Situation?

Posted by admin – October 21, 2009

bankloanMany people have been left in dire straits as a result of the credit crunch. It is very confusing and frustrating because through no fault of our own, and because of nothing that we have actually physically done, we realize that we will suffer for the mistakes of the big financial corporations. We also now realize that these same corporations are finally clamping down. With less money in everyone’s pockets, it might be time to try to get a bank loan.

When times are so hard, people often turn to avenues they would normally never dream of. Pawn shops start to spring up where small retailers used to be, and money lenders abound everywhere you turn. Many people find that there is a short term fix to be had by pawning their precious possessions, but these kinds of sticking plaster never last long.

Especially in the case of the unemployed, if you pawn something you have, and with no money coming in, then what happens next month and the month after? A situation like this can lead to really serious problems in the long term and could end up with court summons or some other worse consequences.

It does look like things are getting better. Financiers are starting to make comments about ‘the green shoots of recovery’. With this turning point, some of the banks are starting to loosen up their terms. A lot of them have loans available for people with bad credit albeit at much higher interest rates than for the normal loans. These types of loans can fill a bigger hole than going to a pawn shop can.

These loans are also a great way to redeem a bad credit score. You never know, it could be a turning point for you as well as the economy.

Is a Private Party Auto Loan for You?

Posted by admin – October 20, 2009

buying-a-carA car is a big purchase. For some people a car is the next biggest buy after their house. For a big purchase like this, many people need car loans. If you buy from a dealer it is possible to get an auto loan. They do all the work for you and you only need to sign the forms. But, what if you buy a car from another person? You may still need a loan. For these kinds of purchases there are private party auto loans.

Private party loans are slightly different than other types of loans. Your auto dealership does these types of loans on a regular basis and so sometimes they can offer better terms. But a private party loan may have slightly worse terms. You may only be able to take these loans out over a shorter period of time, for example over 48 months compared to 72 months for an auto dealership loan. The interest rates may also be slightly more than for a dealership loan.

This means that you may be paying slightly more for your car if you take out a private party auto loan. But over time, this just adds to what you pay for your car any way in terms of insurance and running costs.

Other factors are also important when considering whether you will get a loan like this or not. Your credit score is usually the most important factor when determining your eligibility. Also, whether or not you have a deposit to pay will also affect whether you are accepted for these types of loans. But on the whole, these loans are usually better and easier to get than normal. After all, your car is used as security, isn’t it? Read the small print carefully, but on the whole, go for it!

Improving Your Credit II

Posted by admin – March 20, 2009

While improving your credit can be a slow process there are several things you can do, in addition to the obvious basics, that will help you improve your credit score and establish you as a credit worthy individual a little bit faster. Steady bill paying and paying down debt should be your top priority, but it is true that where there is a will, there is a way, even when it comes to credit. Here are a few ideas to help you re-establish your credit faster that might take a little more digging, but are available even to those with lower credit scores.

While it might not seem like the most obvious things to do, it is sometimes necessary to open a new line of credit which will help establish you as someone who is creditworthy and improve your overall FICO score in the future. Anyone with bad credit knows it is almost impossible to be approved for a credit card though, so apply for a secured credit card that will help you begin to build a better credit history. There are several small banks throughout the nation that will extend these secure loans with a bank account to account as security for the credit line.

Another simple way to show that you are creditworthy and a reliable lender is to apply for lines of credit from stores and businesses. This is harder to do when your credit score is really low as far as national chains go, but if you look for lending opportunities on a local level you might find some businesses that are willing to work for you. Of course, once you have gained a line of credit or a secure credit card it is important that you stay on top of the payments so that you are able to use them later as proof of your credit growth.

One of the most damaging things that can happen to your credit is for a lender to sell off your bills to a collection agency. If at all possible, swallow your pride and answer the phone calls that are coming from your creditors to see if there is any way you can work with them to get your bill paid in a way that is more manageable to you. Creditors are not always as unwilling to listen as you may think and reaching a new payment plan or schedule with them is sometimes all they need to be convinced that you are still committed to paying off the debt you owe them. The same thing goes for collection agencies if your debts have already been handed over. Many people do not realize that collection agencies can enter a judgment against them in court to attempt to gain payment and those judgments then remain on your credit report for seven years.

Above all, it is important to request and review your credit report as often as possible. Not only will tell you where you stand, but it allows you to catch items that may be damaging sooner rather than later. With time and a little perseverance you can bring your score up to a level that you were once used to.

Improving Your Credit

Posted by admin – March 19, 2009

Improving your credit has become the topic of choice as more and more consumers are becoming aware of just how much their credit scores impact their everyday lives. Insurance, lines of credit, the ability to purchase a home or car or fund an education for yourself or a child all rely heavily on the credit score and individual has earned for themselves over the course of several years. Right now is the best time to begin improving your credit and raise your score to a number that you can come to expect reasonable prices and contract terms as a result of.

What most people do not realize is that it takes just as long, if not longer, to clean up your credit report as it did to bring that number down. Even when it is a lot easier for you to pay off the debts that you owe, it is still difficult getting those reports removed off your overall report. It requires a lot of time and dedication of an individual, but if you want it to get done it is the only way to handle it. In the end, the benefits that come with the improved credit score are definitely worth it and the extra worry over finding out if you are approved or not will be lessened.

The steps that need to be taken to improve your credit score are actually very simple and once you begin working towards a higher score it is crucial that you stay dedicated to the commitment. The first thing that needs to happen is that all bills from here on out need to be made on time. Late bills, whatever they are for, drastically reduce your credit score especially if you are a repeat offender with the same creditor. As soon as you are able to comfortably pay off your bills every month, use any extra income to pay down the debt that you are carrying month to month. This also requires you to cut your spending, especially when it comes down to charging items to a credit card.

At this point you should consider all lines of credit that you still have open to you as gold. Every credit line is connected to your credit score and raises or lowers the amount of credit available to you, making you appear different on paper. To make yourself seem more creditworthy it is important that you keep all lines of credit open that you currently have and do not close any, even old accounts that you have not used or only use for emergency. At the same time attempting to open additional lines of credit while you are boosting your credit score in other ways, can lead to a lowered credit score because of the credit check that is standard to every creditor.

Finally, as you continue to pay bills on time and pay off old debts that appear on your credit score, make sure you contact those creditors to have the debts removed. You can watch for these updates by requesting your credit report and reporting settled bills to the credit unions to seek compliance from the creditors if they do not act on your own.

Fix Your Credit Score for Free

Posted by admin – January 23, 2009

Fixing the credit score does not have to cost you a dime. There are many techniques that can be used to increase the credit score substantially with the use of simple phone calls and negotiations with creditors. Many consumers are not aware that you can indeed take measures to fix the credit report for free. Use these techniques to begin your credit report clean up – for free.

Contact Your Collection Creditors
Accounts that have entered collections can have the worst effects on the credit score. After you have obtained a copy of the credit report it is important to contact the creditors to negotiate a settlement. Many consumers are realizing that part of this settlement could be the removal of this strike from the credit report in return for complete payment. Payment schedules can be worked out to accommodate everyone in the situation – but be sure to get this in writing.

Order Your Free Credit Report
Free credit reports can give you a judgment of where your credit score and report stands. You can obtain the free credit report from various websites that allow you online access or for a copy to be sent to your home. At this time, you can view any negative strikes against you and take measures to fix these credit mistakes that have occurred in the past. Giving yourself access to the credit report is an essential way to ensure that no mistakes have been made in the information that has been reported to the credit bureau.

Remember, different credit bureaus may have different information. Requesting the report from multiple credit bureaus ensures that you can make the most of your score by clearing any mistakes or negative entries from the report with ease.

Use your 100 Word Statement on Your Credit Report
Every person is given the chance to take advantage of a one-hundred word statement that is part of the credit report. This statement can contain reasons for low scores or even measures that you are currently taking to increase the credit score. When you are given access to your credit score you have the ability to change this and increase the potential that a creditor will grant you credit in the future. Be sure to use these hundred words effectively, and write them as if they will be seen by each of the potential creditors in your quest to gain credit.

Negotiate the Removal of Credit Collections Accounts from the Credit File
While negotiating with creditors, remember what was spoken about before, in the way that there are ways that negative entries can be removed from the credit file. Negotiating with creditors could prove a powerful tool in the quest to clean up the credit score, for free!