Why Your Credit Score Matters When It's Time to Take Out a Loan

A credit score is a numerical representation of an individual's ability to handle debt. The number is calculated as new information comes in from creditors. 

If you miss a payment, your score is likely to drop. If you pay off a credit card debt, your score is likely to increase. What impact does your credit score have when it comes to taking out a loan?

Those with Higher Scores Tend to Get Better Rates

Individuals with a credit score of more than 700 generally get the best available rates on the market. Those who have a credit score of between 650 and 699 typically get affordable rates that are slightly higher while those with a score of 600 to 649 may pay rates of 15 percent or more. 

If your credit score is below 600, you may be considered a subprime borrower, which means that you may not qualify for a loan at all. If you do qualify for a loan, it may come at an interest rate of over 20 percent, and you may need to get a cosigner as well. 

Borrowers with Good Credit May Be Entitled to Higher Loan Amounts

Let's say that you asked a bank for a loan to buy a car. Those with good credit may be given a blank check to buy whatever they want because the bank knows it will get its money back. 

However, if you have a poor credit score, you could be limited to a loan of $10,000 or less because the bank wants to limit its risk.

While the small loan may provide you with an opportunity to rebuild your credit, it hinders your ability to buy the vehicle that you want. 

Instead of a new vehicle with top safety features, you may be forced to drive something with 100,000 miles on it because you can't afford anything else.

Good Credit May Shorten the Loan Approval Process

One of the benefits of a same day loan is the ability to get money quickly. Loans can be processed and proceeds disbursed in hours because there is no credit check required. 

If you have good credit, you may have your application approved quickly without the need for a lot of supplemental information. If credit is an issue for you, though, you should know that you can get payday loans in El Paso, TX, and some other cities throughout the US without having to get credit approval. 

Either way, this means that you can get the money necessary to buy a house before someone puts in a better offer or buy goods for your business that you need to fulfill a large order in a timely manner. 

Just make sure that you are careful and only take this type of loan out if you know you have money coming in pretty soon to pay it off with. Doing so will help improve your credit and make it easier for you to apply for other loans later on.

Having Good Credit Makes It Easier to Get Unsecured Loans

When a loan is unsecured, it means that a borrower didn't put up collateral as a condition of approval. This means that the bank has nothing other than your word that you will repay what you borrowed. 

Those who have a good track record of paying their debts generally have an easier time getting unsecured financing at low interest rates and other favorable terms.

However, it doesn't mean that you don't benefit from securing a loan with collateral even if you do have good credit. In some cases, you may be able to get a loan without interest or at a rate close to 0 percent by securing it with your home or some other property.

Before applying for a loan, take a minute to check your credit score and credit report. Doing so could make it easier to determine what type of loan you may be eligible for and how much you may be eligible to borrow. 

If your score is lower than you would like, it may be a good idea to take steps to increase it before applying for financing.

Four Tips to Ensure your Mortgage Application is Approved

Making sure your mortgage is approved is the part of the mortgage process that has many would-be home-buyers walking on eggshells.

Will their mortgage application be approved? Or will it be turned down, resulting in not only a huge disappointment and personal let down but also the restarting of the mortgage-applying process.

Many people think that they have little control about applying for a mortgage – that it’s simply out of their hands whether their mortgage gets approved or rejected.

That’s wrong.

In fact, there are some helpful tips mortgage applications can seize upon to increase the odds of their mortgage application getting the green light.

So if you’re about to apply for a mortgage, keep these useful pointers in mind to better increase the odds that you’ll land the mortgage and the home of your dreams.

Make sure your credit history is in good shape

Credit history is a key factor in whether you will receive that home loan or not, so don’t go in blind. Get a copy of your credit report, and if your credit rating is less than stellar, focus on improving it. If you can’t bump your credit status up in time, prepare yourself to answer questions from your mortgage lender on any negative credit entries.

Find a co-signer

If your income is below a level that will qualify you for the home loan you want, look to get your mortgage application co-signed. This means that your co-signer’s income will be included towards your mortgage amount, regardless of whether you will be living with them. Co-signers can similarly help out if your credit score is below par. But remember, having a co-signer means that in the case of a mortgage default both you and the co-signer will be on the hook for the debt.

Don’t go on a credit shopping spree or switch jobs

Don’t do anything to rock the credit boat before you apply for a mortgage. For example, if you buy a car or spend a lot on your credit card, this can affect your credit rating and reduce the amount of mortgage you qualify for. Likewise, it’s best not to change jobs in the six months prior to applying, as this can also raise a red flag in your lender’s eyes, unless the career change is a natural next-step.

Bring in the financial paperwork

Showing up with paperwork confirming your financial status can be a big help in getting your mortgage approved. Get a letter testifying to your income, along with pay stubs and also a bank statement showing where you’re getting the money for your down payment. If you show up with the right paperwork, you increase the odds of getting that mortgage – and with fewer conditions to boot.

Try other lenders

Don’t give up if the first lender you go to says no. When looking around, don’t show any signs that you are really desperate for the mortgage. Try other, reputable lenders if you don’t succeed at first.

Author Bio:

I am Eric Jones. Business, entrepreneurship, and law are three of my greatest passions. My favorite mentor to follow, and someone who I look up to greatly is Warren Buffett. I make sure to continuously conduct research and keep myself informed on recent news and trends surrounding my fields of interest. This guarantees that I don’t miss out any important findings that will help progress my profession. My favorite book is “The Intelligent Investor” by Benjamin Graham.

First Time Buyer? 7 Things You Need To Know Before You Purchase A Home

Are you a first-time home buyer ready to get into the market? Between advice from friends or family, loans, closing costs and more, it can be overwhelming. Here are seven important things you need to know that can help alleviate your anxiety: 

Examine Your Credit

A poor credit score, or no established credit, can alter your home-ownership plans. Get a free credit report and read through it for errors. If you find any mistakes, contact the credit reporting bureau to ensure they are corrected. This can greatly affect the loan you may get. 

Collect Documentation

Gather pay stubs, W-2 forms, bank statements, filed income tax returns for the past two to three years, and any other documentation you may feel is necessary. Have them available to show to the lender. You may need to provide this paperwork to a few different people, so it's important to have them readily available. 

Pre-approval

Getting pre-approved for a mortgage is important when you are house hunting. Your current bank or local credit union, like Saginaw Medical Federal Credit Union, are good places to start your search. You can also search online to find lenders offering the best rates in your area. Applying to multiple lenders helps increase your chances of getting a loan approved at the best rate possible without having a negative impact on your credit score. 

Create Your budget

One of the most important steps is to establish your budget. It’s necessary to determine how much you plan to pay for your house. It is recommended that buyers spend no more than one third of their income on housing. Your monthly payment can also vary depending on how much you plan to use for a down payment. 

Find Out Closing Costs

Closing costs usually contain origination charges, settlement and title fees, taxes and items like homeowners' association fees and homeowners insurance. Sometimes, they are often higher than expected, so it's important to budget accordingly. 

Choose A Real Estate Agent

It is ideal to find and choose a real estate agent to assist you with the process. Utilize local ads or the internet to research and assemble a list of local agents and start finding out more about their experience. Look for realtors with a lot of experience, especially in the area and price range where you intend to buy. These realtors will be familiar with the current housing market and the history of the market in your preferred area, and they can help you distinguish between good and bad options.

Be Patient

First-time home buying is time-consuming and stressful. Many first-time home buyers become disheartened due to rising property prices and increasing interest rates. There's also chances that there may not be enough properties available that suit the buyers needs.

Taking important necessary steps before the home-buying process can save you time and money. It's important to do your research and talk to different professionals before you decide to make an offer on a home. These tips can help you to be prepared to buy your first home.

Related articles

• A Complete Guide to Refinancing Your Home Mortgage
• How to Differentiate the Rates
• Benefits Of VA Loans In GA
• Options for Down Payment Assistance

Seven Steps For Creating A Budget That Works For You

Money management is an important skill to have at any age. Creating a budget is the central discipline of financial stability and freedom. Often times, many people fall into serious debt without even realizing it because they don't have a budget to follow. Making a budget doesn't have to be a tedious process, however. Here are seven steps for creating a budget that works for you.

Monthly Expenses

Make a detailed list of needs versus wants in your daily life. You will likely be cutting back on some of the wants, and you should be honest about things that you do not need so that budget cuts can be made. Take a look at your expenses from the past six months and find out how much of your money is really going to needs. Of course, there can be some money budgeted for wants, but it's important to know how much. 

Get Rid Of Extras

As you create your lists, you will likely come across duplicitous items. Choose the most effective option for your budget and prepare to cut the other one completely out of your life. Making everything as simple as possible will help you an effective budget you can stick to. 

Learn To Make Lists

One of the main reasons that people are not able to stay on a budget is impulse buying. However, if you make lists before you go to the grocery store and places similar to that, you will be much less likely to spend your spare pennies on useless items. This includes making a list for other things like clothes shopping. Be sure to not overbuy, and maybe even include a price max for lists like these. 

Consider Other Responsibilities

If you have people that depend on you, they will obviously take up some percentage of your budget. Make sure that you keep them in mind when you are making your budget so that you do not incur the much more serious cost of losing friends and family.

Remember Taxes

The breakdown of many a budget is the fact that many people do not calculate taxes when they are making them. Consider your tax bracket, and make sure that you place all of the proper calculations in your budget. No one likes paying taxes, but this is not a reason to try to make them disappear as you move towards financial freedom.

Create A Savings Plan And Emergency Fund

Although you may be planning for a budget that you will hope to stick to, life does not happen on your schedule. Many people use unexpected emergencies as a reason to completely destroy any discipline that they had on a budget. Having an emergency fund will keep you from acting on this temptation. Anything from a job loss to medical expenses or car accidents can quickly put anyone into debt. You should have at least three to six months worth of income save for an emergency fund. This will help if keep stress levels down and allow you to make payments if you suddenly loose income or have huge expenses to pay. 

Put Your Budget Into Action

After you have done all of the planning, it is time to begin building the discipline that will create the budget that you can live with. It's important to remain flexible, though. If you find that something isn'y working, be sure to make changes as needed to keep your budget realistic.

Staying on a budget can be difficult for anyone. However, it is definitely a good idea for anyone who is looking to explore true freedom later in life. Follow the steps above for the budget that will work for you. If you don't know where to start with your finances or are recovering from bad credit, seek the help of financial experts to get back on track again. Informational credit to Keith G. Collins Ltd.

Will You Be My Co-Pilot? 5 Important Things to Know Before Co-Signing on a Loan

When a loan applicant lacks the sufficient financial backing and creditworthiness to qualify for a loan on their own, a bank or lending institution may recommend that they find a strong co-borrower to back their loan. This may commonly occur if an individual has an insufficient credit history, poor credit or lack of assets or income to qualify fully. A relative or close friend may have recently asked you to be a co-signer on a loan that they are having difficulty being approved for on their own. While you may be inclined to sign on the loan simply to help someone you care about out, it is important to understand how this will impact your life and finances. Consider the following before agreeing to co-sign on a loan: 

Responsibility for the Debt

When you co-sign on the loan, it is important to note that you are equally responsible for the debt as the primary borrower. This means that if the primary borrower is not able to make the payments as agreed, due to job loss or another issue, you will be responsible for the debt. You essentially will be taking on this debt just as if you are the primary borrower or applicant on the loan request.

The Impact on Your Credit Scores

According to the professionals at Power Finance Texas in Houston who specialize in payday loans, any loan that you co-sign on likely will show up on your credit report and will impact your credit scores. Factors related to new credit inquiries, unseasoned accounts, the amount of debt owed to creditors and even late payments for this account all have the ability to negatively influence your credit scores.

Consider Why the Person Did Not Qualify on Their Own

Because you will be financially responsible for the debt and because it can impact your finances and credit scores, it is important to have a full understanding about why the person did not qualify for the loan on their own. If the person did not qualify, the bank essentially is stating that the person lacks the creditworthiness to qualify on their own, and this may be a warning to you. For example, if the individual has a history of being irresponsible with finances, you may think again about co-signing. On the other hand, if the person has been responsible but simply fell on hard times, due to job loss or illness for example, you may be more inclined to help out.

Your Ability to Qualify for Financing in the Future

Even if you want to help out a friend or family member, it is important that you think about your own finances and goals. Your credit scores and debt-to-income ratio will be impacted by the debt that you take on. In some cases, this additional debt may make it harder for you to qualify for a loan in the near future. If you have plans to apply for a car loan, a home mortgage or another type of loan, you may think carefully about how this new debt will impact your plans.

Being Targeted by Debt Collectors

In the event the primary borrower defaults on the loan, keep in mind that debt collectors may target both you and the primary borrower. This means that you may receive collections calls and letters until the loan is returned to good standing or paid off. Furthermore, collections on this account may impact your credit rating.

There are instances when co-signing on a loan is the right thing to do. You may feel comfortable with the risks and financial impact to you with co-signing, and it may not impact your future goals and plans. However, it is important that you fully understand the impact of co-signing and to ensure that the risk to you and your plans is minimal before you take on this additional financial responsibility.

When Does Refinancing Your Mortgage Make Sense?

 

We keeping hearing about how rates are going to go up any day, month, or year now. However, every day, month, and year that goes by I see rates sticking around at all time lows. Let’s not get into the media frenzy of predicting mortgage rates, but if you are seriously looking at refinancing then there are several question and key points for you to consider. First, how long do you plan on staying in your home? Second, what sort of rate do you have right now, and how much can it really be improved? What are the fees and costs associated with the refinance? Can a NPBS fixed rate mortgage be your solution? These are all questions to ask before refinancing your mortgage.

You really need to consider how long you plan on staying in your house before going through the refinance process. Chances are you have no idea the number of years you will require your mortgage to be without first considering how long you want to live there. If you know that you employer plans on transferring you out of the country sometime within the next ten years it may not make sense to refinance into a 30 year loan. Rather, you can look at rates for a 10 year loans, which are considerably less in interest. Or perhaps you know you have found your dream home and plan on living there the rest of your life. In this case I prefer to err on the side of caution and take out a full 30 year term loan. Rates may go down over that time period, but they could go up as well, I’d prefer not to leave my finances to chance. 

The rate you currently have right now is very important, as are the costs and fees associated with refinancing. You didn’t think that mortgage companies refinanced for free, did you? A general rule of thumb is that you should save at least 0.25% off your current interest rate for a refinance to be worth it financially. If you have to spend a couple thousand dollars on a refinance then it will take you some time to recoup that money, and anything less than 0.25% might not be worth it. You will often hear of zero cost refinances, and this is sort of true, but misleading at the same time. Zero cost really means deferred cost. Rather than paying for the lowest rate upfront, you are saying you are willing to accept a slightly higher rate than necessary in order to offset the loan costs. I have actually done this myself, three times to be exact. It’s a good thing because I sold my house shortly after the refinance, so I was able to pay down a little extra principal on the loan without paying costly refinance fees.

Is Freezing Your Credit a Good Idea?

Your credit might be in danger. In fact, technology has created countless ways in which hackers and thieves steal identities and wreak financial havoc on innocent victims. Most people protect themselves by having some form of protection as part of their account.

However, many people choose to freeze their credit as an additional security measure against identity theft. But is freezing your credit a good idea?

There are pros and cons to freezing your credit and understanding the requirements in freezing it will help you decide if it’s the right choice for you.

Why Freeze Your Credit?

A credit freeze has traditionally been offered to account holders who’ve experienced some forum of identify theft of fraud. Recently, the practice has become popular among those who just want to protect themselves in advance.

By freezing your credit, you put your credit report on hold and prevent anyone from gaining access to your credit score or financial history. In fact, not even you can access it without following specific procedures to unfreeze it.

A credit freeze fully protects your reports from access to anyone. Credit inquiries that are commonly performed for loans, purchases, and accounts are also locked out when your credit is frozen.

Benefits of a Freeze

But why would you want to fully lock down your credit? Quite simply, it’s the most secure way to safeguard your credit from financial hackers. It prevents would-be thieves from accessing the most valuable information you have about your money.

If you use a service that monitors your credit, chances are you’ll only find out that you’ve been a victim of identity theft after it’s already occurred. However, by freezing your credit, you proactively prevent any attack on your finances.

What to Watch Out For

Freezing your credit also has some drawbacks that you should consider. It can be an inconvenient way to protect your credit given the difficulty of allowing anyone to access your credit.

So if you want to apply for a loan, rental, or make any purchase that requires a credit check, you’ll have to plan in advance in order to allow the lenders access.

This also requires you to go through specific procedures, which can take time and cost money. There is a fee involved in unlocking your credit, as well as the need to provide a special pin number that you’ve established beforehand.

The cost of unfreezing your credit will vary depending on your local requirements. Different lenders use specific credit bureaus. You may need to unlock your credit with all of them if a lender requires it.

However, if you’re freezing your credit with a help of a mortgage broker due to identify theft, then the fees will not be required. In all other cases, you will likely need to pay for any changes to the status of your credit freeze.

Most people aren’t aware of the frequency with which lenders and other parties perform credit inquires. So make sure that you understand which ones do, in order to prevent the inconvenience and cost of freezing your credit repeatedly.

The following are just some examples of when someone might require access to credit:

• Mortgage
• Insurance
• Credit
• Loan
• Job application
• Cell phone service
• Home utilities
• Online transactions

In order to protect your credit from identity thieves, there’s no better way than freezing it. It prevents access to your credit score and protects your most valuable information.

Although there are some drawbacks with respect to the fees and inconvenience of freezing your credit, the benefits can outweigh them with the full protection it provides and the peace of mind you’ll have around your personal finances.

Venetia Rose has been a freelance writer and blogger. She loves to share and keep herself updated with the latest tips in mortgage and financial consulting. Her interests are cooking, photography, craft and painting. Follow her on Face book https://www.facebook.com/laksh.venetia

Does Marrying Someone with Bad Credit Affect Your Credit Score?

There are ways to avoid letting your spouse’s credit history from affecting your own, and the best way of doing so is understanding how marriage affects your credit score.

In Ontario, the act of getting married on its own won’t change your records or your spouse’s, and once married you and your spouse will continue to have individual credit scores.

What is Bad credit ?

Bad credit is the failure to keep up with your credit agreements and the inability to get approved for new credit. This means you haven't paid your past dues on time. When you have bad credit, lenders are afraid of lending,as you may fall behind on any loan or credit card you're given. This will result for your application for credit to get rejected. The credit score is a good indicator to identify good credit and bad credit. If your credit score is below 620, then it is said that you have bad credit.

Joint Financial Decisions Matter

After marriage, some couples find that it makes sense to assume liability for their spouse’s debt either partially or entirely. Assuming debt changes your financial standing, which creditors will take into account when financing loans. Applying for debt as a couple is a serious decision because if your spouse was unable to make payments on their loans on time in the past, they may also struggle to do so in the future. Debt in arrears and overdue credit cards on loans made as a couple will affect you and your spouse’s credit score.

Giving Creditors Access to Your Spouse’s Credit History

Your creditors will not have access to your spouse’s credit history unless you add your spouse to your financial accounts. Your history will not automatically be merged with your partner’s credit history, however, creditors will look to see your partner’s ability to repay loans. If your spouse has a good credit score, that will tip the balance in your favour while the opposite is true of a spouse with a bad credit score.

Should you Share Your Finances with Your Spouse?

It may advisable to keep your financial accounts separate, especially on accounts where you are the one who uses it most. Even granting user authorization to your spouse allows your creditor to see your partner’s credit history.

If you’re unable to keep your finances separate, be prepared to have your history affect your spouse’s and vice versa. For example, when jointly applying for a credit card, the person with the lower credit score will raise the interest rate on your credit. In the case where both partners have a poor credit history, your application may not be approved at all.

Filing for Bankruptcy

If your spouse is unable to repay their debt, bankruptcy may be their best option. As long as their loans were made separate from you, most likely you aren't liable and in addition, your credit score won’t be affected. Before making the decision, it’s best to consult a professional bankruptcy trustee who will walk you through the important things to consider, such as finances, credit scores, repayment schedules, and plans to regain financial health.

Tips for Dealing with Bad Credit

● Taking your spouse’s last name will not erase your credit history, which is tied their Social Insurance Number

● For repairing bad credit, applying for a loan jointly can raise your spouse’s credit score. Another option would be to fix your credit score individually through prudent borrowing and repayment habits

● Always make your minimum payments! Even if you’re not making large payments to rid your debt, it’s crucial you make minimum payments as to not put yourself in larger debt than necessary

Venetia Rose has been a freelance writer and blogger. She loves to share and keep herself updated with the latest tips in financial consulting. Her interests are cooking, photography, craft and painting. Follow her on Face book https://www.facebook.com/laksh.venetia

3 Ways Financial Debt Can be a Family Killer

A bad economy has a trickle-down effect. First big banks and corporations take the hit. Then employers can't afford to cover payroll. Next come forced layoffs and terminations. It is important to remember that one of the often overlooked casualties of money problems is the family. According to D Thode & Associates, there are several ways that financial debt can destroy the family and the best time to hire a financial consulting firm like to help before things hit rock bottom. Once a family hits rock bottom is usually when the family starts to fall apart and it is usually from the inside out.

Spouses tend to shut down communication

Whenever the primary breadwinner is no longer in a position to contribute financially, they tend to pull away. They pull away because they may still be stunned at the turn of events or they may be a little ashamed, even though they had no control over losing their income. It can be emotionally devastating to the point to where that person just completely shuts down and has no idea what to do next. Often times they will fall into a slump rather than bounce back and find another job to support their family. This causes stress between a husband and a wife, because there has to be some kind of financial support to pay the bills, buy the groceries, and keep clothes on every ones back, and a roof over everyone’s head. When it becomes next to impossible to make ends meet, often times it causes a husband and wife to turn on each other. If there are kids involved, it becomes even harder because you need money to make sure they are taken care of and that they are being provided for.

Children fear a loss of security

Young children and teens alike, though they would be quick to deny it, crave a sense of security. They may rebel and fuss about having so many rules, but the truth is children thrive on a sense of stability in their formative years. Without it they can become sullen and fearful. This can manifest itself in them withdrawing from their normal activities and a noticeable slide in their school grades. It also increases the chances of your kids getting involved with drugs and alcohol. Bottom line, the less stability your children have, the more likely they are to turn away from the rest of the family and rebel.

Health takes a turn for the worse

As if the first two weren't enough, just when you are least likely to be able to afford medical bills, the burden of financial debt can cause serious health issues. Stress, frustration, and anger can all boil over leading to deadly heart attacks or debilitating strokes. The family then has to worry about losing a loved one, in addition to all of the debt. This is also a significant problem when you or one of your loved ones have a serious medical condition as they will increase the amount of medical bills and add to your family’s financial stress.

For ears the United States has been mired down in a sluggish economy and high unemployment rates. Everything seemed to tank when the housing industry took a big hit during the years of 2007-2009. Many have said it is the worst struggle the country has been in since the Great Depression. While the economy is slowly improving, it will be years before things are once again on an even keel. The right financial advice can help you weather the storm with your family intact.

Have Bad Credit? Here's How to Apply and Get Approved for a Loan

Many of us have incurred bad credit, i.e. a poor credit rating/score and have consequently found applying for financial products – credit cards, personal and home loans, etc. – tough going.

That’s rapidly changing and many banks and lenders are now far more willing to work with people with bad credit than in the past.

If you’ve incurred a poor credit rating there’s still a good chance that you’ll be able to successfully apply for financial products again the future, though you might have to improve your credit rating beforehand in order to access financial products on competitive terms once again.

Improve your credit rating

Do you know your credit rating? If not, how do you know you’ve incurred a poor credit rating or are you just making an educated guess based on your adverse borrowing history?

Many borrowers have no idea of their credit rating before applying and they’re putting themselves at a disadvantage straight away because knowing your credit score enables you to leverage your borrowing options.

You can obtain a copy of your credit report once per year and under various circumstances from any of the national CRBs – D&B, Experian and Veda – for free; however, if you’ve already obtained a copy within the last year you’ll need to pay a small fee.

To obtain a copy, contact one of the national CRBs and provide the following details:

• a. Full name
• b. Date of birth
• c. Current and previous addresses
• d. Driver’s licence details

Obtain a copy before applying for credit – you’ll better understand the options available to you.

If you still have a credit card, use it to make small purchases on a regular basis and pay the outstanding amount in full each month in a timely manner. This will help to repair your credit rating, though bear in mind it takes time. 

Bad credit loans – An option to consider

Bad credit loans are loans made available to people with poor credit ratings – including those who’ve really made a mess of their borrowing history.

These loans generally come with a high APR and are hardly competitive with regard to interest rates or terms and conditions, but if you’re really stuck they’re an option you may need to consider. 

Apply to your bank

After you’ve obtained a copy of your credit report and you know your credit score, contact your regular bank and discuss your situation with them, preferably informally, i.e. without making a formal loan application.

The reason for this is that every time you apply for credit you’re triggering an enquiry into your credit history which has the effect of lowering your credit score slightly.

By enquiring informally and informing them of your credit rating you’ll be able to avoid this and you might also be able to successfully apply for a personal loan through you regular bank, though this will naturally depend on your banking history with them.

However, if they knock you back because of your credit score you’ll need to look at other alternatives, many of which like bad credit loans, instant payday loans and similar loans are often, though not always, hardly competitive though they may be the only options available to you.

There are an increasing number of reputable online lenders, some of which actually offer competitive rates, terms and conditions in addition to quick and easy online application processes.

Nonetheless, double-check lenders’ backgrounds you consider applying to before applying and bear in mind the importance of limiting the number of applications you make.

There are a number of options available to those ‘bad credit’ – ensure you know what to make of them.

About the Author:
Get Approval is a finance company in Australia that seeks to assist individuals in applying for a business or personal loan. They have devised a simple process for loan applications so eligible applicants can receive their needed funds quickly and with less hassle.

How A Negative Credit Report Can Affect Your Financial Future

A negative credit report has long-term consequences. It can affect nearly every part of life from employment to insurance rates. Poor credit can prevent a person from accessing many of the financial tools that make saving or planning for the future possible. A negative credit report can affect the financial future of anyone in several ways.

Housing Is Difficult To Get

Anyone who has a poor credit report will have a difficult time acquiring housing. Property managers are not likely to rent an apartment to someone who has a history of unpaid debts. Banks might also deny mortgages to these same people. While some people may think that buying a house is too far in the future to matter much, it is important to remember that bad choices with finances now can stick with you for a long time on credit reports. One of the only solutions is to find a guarantor who can cosign a lease or mortgage. A cosigner can allow an individual to start building a positive lending or rental history.

Credit Becomes Inaccessible

A negative credit report will make getting any type of credit in the future very difficult. This includes loans, credit cards and financing for a car. Without loans and credit, it becomes nearly impossible to eventually get the items you may need for your family, like a house or car. Talking to a professional to help get back on track financially will improve credit. Some professionals can even work to remove bad marks from credit reports. Rebuilding credit could also involve using secured credit cards backed by cash deposits.

Limited Employment Options

An increasing number of employers are checking the credit report of applicants during the hiring process. A bad credit report could prevent an individual from getting a job working near sensitive financial information regardless of other qualifications. Counteracting this negative effect will require establishing good credit with the help of financial professionals while working in positions that do not require accessing financial information. 

Higher Insurance and Interest Rates

A negative credit report will lead to higher insurance rates, which include car and home insurance. One way to counteract the higher rates is to decrease risk in other areas. This could mean taking defensive driving courses, installing a home security system or installing new vehicle tracking systems. These steps will lower insurance rates. Interest rates will also increase with a bad credit score. This can be very detrimental to many families because interest builds so quickly and can become almost impossible to pay off over time. 

Utilities and Service Plans Become More Expensive

Getting any type of service plan for a cell phone or a utility will be more expensive with a negative credit report. Some companies might just refuse to provide services billed monthly or quarterly altogether. A cosigner could solve this problem. Another solution is to ask about or offer an initial cash deposit to cover multiple months of service in advance.

A credit report needs to be checked regularly and repaired or improved whenever possible. This can sometimes take a long time. Anyone with credit problems should take action immediately to start building good credit and repairing the report.

Informational credit to A C Waring & Associates Inc. 

Can You Get a Car Loan If You Are Retired?

If you're a retiree and are wondering if you can borrow money for a car, this helpful guide will answer your questions. Though retirees are no longer working, you could have a leg up when choosing the right car loan.

Retirees own more assets and have less debt

Retirees are people that have worked all their life. They usually have high equity a home, or have completely paid off a mortgage. Having collateral like this means retirees can qualify for a loan and in some cases, lower interest rates.

A good credit history

Having a good credit history also increases your chances of not only securing a loan, but getting one at a lower interest rate. It makes sense to check your credit history to fix any mistakes.

Income beyond work

A lender usually asks prospective borrowers for their proof of income. This really means proof you have a stable job. Many retirees have alternative forms of income. They tend to have significant savings and/or superannuation packages. Some retirees have stock or property portfolios that provide a part of their income. This proves they have the funds necessary to pay back a loan.

Age can be a factor

Typically, five-year loan terms aren't a problem for financial institutions lending to retirees. They may offer 36 to 24 month loan terms if age is a factor. If you have significant savings, you can opt to put a larger deposit on the car, which reduces your monthly repayments further.

Find out what's right for you

Remember; it pays to find out what's out there. Don't apply for too many loans, as it will reflect negatively on your credit history. Consult a financial professional to help choose the most manageable and affordable car loan for you.

Why Lenders Deny Your Loans Despite a Good Credit Score

Your credit report gives you a detailed analysis of your credit history and this can make or break your ability to borrow funds for any important reason in the near future. The use of the credit report by the lender helps them carry out essential background checks that can tell a lot about your ability to repay the loans that you may have taken. 

However, sometimes, there is a possibility that you may possess an excellent credit score, yet you may not get a loan approval leaving you startled and wondering what may have gone wrong. To put it simply, the lenders have to look for their profit sources as well. 

Therefore, despite having a good credit score, some factors may hamper your ability to get a loan from your lender. A comprehensive list has been compiled that explains as to why you may be unable to make the cut. 

1.) Opting for short sales:

It goes without saying that short sales call for negotiation. However, this type of a negotiation does absolutely nothing to hamper your credit score. However, a short sale calls for you to pay an amount that is far lesser than the original amount owed by you. This itself can cause the lenders to be on their toes when you apply for a loan. Therefore, you should not be surprised if a lender refuses to support you financially because they will always have inkling that you may flake out on them and pay them much less than you owe based on your past experience.

2.) Paying the minimum acceptable amount:

When you pay a minimum amount but something that is of an acceptable standard it will cause absolutely no harm to your credit report. Therefore, it will have “pays as agreed” stamped on your credit report. While your report will look clean and acceptable, if a lender performs close background checks and comes across this flaw, he is likely to severe any professional relationship that may have had any kind of scope. The simple reason for this is the fact that minimum payments are an indication of underlying debt issues and no lender wants to be put on the spot in terms of debts and outstanding loan payments.

3.) Registering credit cards in a successive order:

It is completely alright to have a few credit cards in your name. As long as you are good with your payments, your credit score cannot be harmed. However, lenders do not take too well to people who have a knack of opening credit cards in a rapid succession. Therefore, if you want to have easy and hassle free access to loans in the future avoid opening cards within weeks or even months apart. Lenders fear that although your credit score is currently decent enough, the scenario may change with the arrival of several credit cards. Therefore, they may refrain from giving you a loan despite a good and clean credit report.

4.) Think twice before co-signing a loan:

You may do this out of good will and may extend a helping hand to a friend or family member in need but this in turn can jeopardise your own attempt at getting a loan at a future date. This is simply because of the fact that while you may be asked to pay off the loan for the person you have co-signed, you may find it increasingly difficult to pay off 2 loans at one time or in quick succession, thus decreasing your chances tenfold despite a good credit score.

Author’s bio:

Julianne Farmer is a finance analyst working with a well known financial firm. Her job requires her to do regular background checks and keeping in touch with investors and other management teams for the company. She likes to keep up with the stock market changes.

4 Poor Life Decisions That May Still Be Costing You Money

You make decisions every day that will impact your future. It is not always something you realize in the moment. However those choices that may have seemed unimportant at the time may still be having an effect on you today. Below are four poor financial decisions that are likely still costing you money.

1. Defaulting on a Car Loan

Whether it is a few missed payments or a full out repossession, car payments will affect your financial resume. Delinquent payments are reported to credit bureaus. A repossession can put you in a position whereby you may have difficulty purchasing another car with a loan. Additionally, if you do obtain another car loan, you will most likely pay steep rates because of your previous payment history. This continues to affect the amount of money you will pay out on a monthly basis.

2. Defaulting on a Lease

Breaking a lease early without meeting your financial obligations to a rental home or apartment will certainly impact you on your next move. Your future landlord may require you to pay a higher deposit because of your previous default. As well it is negatively reporting on your credit which affects your rate if you choose to purchase a home. This as well will cause higher monthly payments. In more extreme cases the poor credit reporting could cause you not to be approved for the home loan.

3. Maxed Out Credit Cards

Credit cards can be a great resource. However, using your credit card past the allotted amount can cost you dearly. The rate for paying late on a credit card according to Creditkarma.com can cost you as high as thirty five dollars in late fees. As well your interest rate can reach as high as 29.99 percent. This will increase your payment drastically. And almost more than anything else the reporting on your credit can cause a big drop in score.

4. Co-Signing

Co-signing is certainly a noble gesture. However, it makes you responsible for someone else's financial habits. Co-signing causes more people credit problems than they know. Just as all the various institutions report negatively to the credit bureaus when you pay an item late or default on a loan, they do the exact same reporting when your co-signee makes his or her payments late or worse, defaults on said loan. In the long run, you may not be doing them or yourself any favors by carrying them with your name and credit. Everyone has to learn responsibility, and sometimes enabling a friend or family member's bad habits can seem like helping kindness, when in truth it will further harm you both.

Your credit is the way financial institutions decide to offer you a loan for a home, car, business and more.It is almost impossible to function in today's economy without having good credit. Credit repair can help you work through your financial history and positively affect your credit score and financial standing, giving you the chance to achieve all that you want to achieve.

Safely Build Up Your Credit with These Five Easy Tips

If you have bad credit, or no credit at all, then you probably know that it can be difficult to make life-changing decisions like buying a house. Without the necessary credit to make a mortgage or loan possible, you will be bound to buying and investing in things that you can only pay for up front - which can be frustrating when you need a house or car. While you can take out a massive loan for no reason, or spend ridiculous amounts of money on a credit card, here are a few safer ways to build your credit over time. Just keep in mind that any credit score is about long-term reputation rather than short term spending. 

Use a Credit Card for Groceries

Did you know that you can use your credit card for your every day purchases to build credit? Try paying anything from your rent to your groceries on your card and then make payments to help build your credit. If you shop around and find a card that offers rewards like air miles, or that doesn't charge interest if you pay by a certain day of the month, then you aren't really costing yourself anything, and might even be racking up some free vacation time. The important thing in this case is to choose your credit card carefully because the wrong one will still charge you interest that you probably don't want to pay. 

Pay Your Bills on Time

No matter how many bills you have it is important to always pay them on time. In fact, this is probably the most important thing to consider when building your credit. Late payments go on your permanent credit history and they are a huge red flag to lenders. If you can't afford all of your payments every month then try getting a consolidation loan, looking for a room mate, or, doing whatever else you can to lower your monthly payments. Paying on time every month shows that you're responsible and you know how to handle debt, which makes you a better candidate for a loan or mortgage in the future. You also want to make sure that you don't have too many payments when you go to apply to a loan, as this will work against you. Instead, evaluate your payments, pay off the smaller bills first, and go into a new loan with as few previous payments as possible. 

Start a Regular Bank Account and Save

Starting a savings account won't do anything for your credit score, but dropping money into a standard bank account builds your credit score and your ability to get a loan. By saving a portion of your income every month, even if it's a very small part, you can show lenders that you have extra money, that you know how to handle your budget, and therefore improve your chances of being approved. While you won't earn interest on a regular bank account, you do improve your credit score, and that's what counts. After all, most savings accounts don't offer very good returns anyway. 

Co-Sign

Co-signing for a credit card, a loan, or just about anything else gives you a distinct advantage when it comes to taking out a loan. A co-signer allows you to take out a loan without relying solely on your own credit, meaning that you can take out a larger loan or qualify for a mortgage that you might not otherwise apply for. In most cases, your co-signer should be a direct family member and preferably with the same surname as you. Your parents, grandparents, or siblings are all great candidates to co-sign for you so long as they themselves do not have a bad credit score. Keep in mind that the person you co-sign with will have at least some access to your bank account or mortgage and that they are held responsible if you don't pay your bills. 

Take Out a Short Term Loan

Did you know that you could get a short-term loan to improve your credit? Taking out small loans and then paying them off quickly allows you to improve your credit score without taking a huge risk. For example, a payday loan is a great way to go because you can pay it off very easily within a few months. Most importantly, you don't necessarily have to have good credit, or any credit at all, to qualify for a payday loan, so you can use them to start improving a credit score in order to qualify for bigger loans.

A good credit score can help you out when you have to borrow money for something big, but getting a credit score means borrowing money, making payments, and keeping your debt level as low as possible. When you do take out a loan or borrow money, make sure it's something that you can pay off quickly so that you can improve your credit without racking up a long-term bill. There are plenty of ways to improve your credit, some of which are safer than others, but you should always research each option first to make sure that it will work for you.