Showing posts with label credit check. Show all posts
Showing posts with label credit check. Show all posts

Wednesday, December 12, 2018

Five Simple Steps to Finding the Right Loan

Submitting a loan application isn’t something to be taken lightly. Whether you are looking to borrow £1,000 or £100,000, it’s important to know you’re getting a deal that suits your requirements and budgets.

These days, there’s no shortage of options to explore. If anything, you’re more likely to find yourself wondering where to start.

So with this in mind, what follows is a brief overview of the five simple steps that stand between you and your perfect loan:

1. Consider if you really need a loan

Before going any further, it’s worth considering whether or not you actually need a loan. The reason being that it’s never a good idea to take on additional debt for frivolous reasons.

In addition, you may also be able to cover the expense using your existing credit facilities. A credit card with a low APR, an interest free overdraft or perhaps the savings you’ve got stashed away in the bank. If there’s a way of getting things done without taking on additional debt, it’s an option to consider.

2. Check your credit score

These days, having an imperfect credit score doesn’t mean exclusion from financial support. Nevertheless, it could mean higher overall borrowing costs, or exclusion from certain lenders.

If your credit report is only slightly blemished, your application will probably be considered by most lenders. If your credit report is in a sorry state, you might want to target lenders who specifically cater to poor-credit applicants.

Always remember that denial of your application could inflict further damage on your credit report.

3. Evaluate your financial position

When applying for a loan, you need to consider your financial position beyond today. You may be able to cover the repayments right now, but what if things take a turn for the worse a few months down the line? Are you absolutely sure that no matter what happens, you won’t slip into arrears?

Taking chances is never a good idea. Unless you’re 100% confident in your capacity to repay the loan, you may wish to delay your application.

4. Compare the market in full

Comparing the market in full means looking beyond the High Street. Up and down the UK, there are dozens of specialist lenders who routinely offer secured and unsecured loans at rates that outperform those of major lenders.

Working with a specialist loan comparison website or independent broker is therefore advisable. Particularly for anyone with poor credit, who’s unlikely to be fairly considered by a major High Street bank.

5. Consider overall borrowing costs

Last but not least, the vast majority of loan products attach costs that go far beyond monthly and annual interest rates. Arrangement fees, administration fees, final settlement fees, late payment fees and so on – all stand to significantly increase the overall cost of the loan.

When carrying out your market comparison therefore, be sure to factor all borrowing costs into the equation. Once again, this is where an independent broker can help you compare the best deals on the market from specialist lenders across the UK.

Saturday, June 22, 2013

5 Ways a Bad Credit Score Can Hurt Your Career Growth

Do you know how good your credit score is? According to Statistic Brain, only 35% of Americans checked their credit file at all last year, and the national average has plummeted to just 691. Despite that, 90% believe that they have a low or average level of debt - but does it really matter? 

Your credit score doesn't just decide if you can finance that new leather sofa, or if you'll get a good rate on your mortgage application. It can have a big impact on your everyday life, too, and having a bad credit score can even stop you being able to get promoted, or even get a job in the first place. So why does it matter, and what can you do about it?

You Can't Get A Job

According to Forbes, 6 in 10 employers now check the credit of their potential new hires. Failing the check can mean kissing goodbye to the job, even if you excelled at interview. Good credit shows the employer that you're a more responsible person. If your job will involved handling money, valuable items or locking up, it's even more likely to signal the end of the road. Financial gurus like Mark Weinberger are perfect to emulate when looking to get your finances on the right track. 

You Can't Get A Phone Contract

Most jobs will require you to be contactable, which means carrying a phone around with you. The best deals on handsets and air time are offered to contract customers who can afford bigger monthly payments: with poor credit, you are likely to be offered a higher rate, or be rejected completely. A pay-as-you-go phone can seem a good solution, but you are charged much more, so keep calls and texts to a minimum and make sure you've always got credit.

You Can't Get Insured

Whether it's getting to work in the morning or driving around as part of your job, chances are you'll need a vehicle. Not a problem if you can get a good finance deal, and some cheap insurance; but terrible if your credit is shot, or if the company can't insure you on a company car. If transport is essential, your only option is to join a car sharing scheme, or show your bosses that you've researched public transport and don't need to drive.

You Can't Move

Sometimes the best opportunities require sacrifice: including relocating. While the best companies will offer a relocation package and try to help you get on your feet, that's not normally an option unless you already work for the company, and they won't help with contracts. If your credit would stop you from renting or buying a new place, you may have to pass up the promotions and opportunities until its better. 

Solving The Problem

So what can you do if you find your credit score holding you back? Be honest. When you give permission for the check, mention any CCJs, DMPs or finance management. Offer an explanation if you have one, and show how you are trustworthy and reliable.If your credit history doesn't come as a surprise, you are much more likely to get the job.

Credit scores has a much larger impact on our lives than many people believe, so make sure that you aren't receiving the brunt of it for your past financial mistakes. 

Friday, June 14, 2013

How Important is Your Credit Score After 50?

We've all heard that a credit score can be “built over a lifetime and destroyed overnight.” But once you reach 50 and your long-term financial goals are mostly in order – let's say you have a mortgage, a 401k or an IRA, and a healthy emergency fund – how important does your credit score become?

The answer is that while your credit may not seem as important as it did when you were shopping around for your first mortgage years ago, life's full of surprises and you never know when a good credit score may be necessary after 50. 

Here's a few reasons why it's simply a good idea to maintain a solid credit score after you reach the age of 50...

Unforeseen Financial Emergencies

As most Americans are now aware of in the post-Great Recession era, the bottom can fall out on the economy seemingly overnight. It's safe to say that most of us now have our guard up when it comes to the prospect of a financial emergency, which means preparing for the worst and hoping for the best.

With that in mind, a healthy credit score well into your 50's is a valuable asset for you and your family. Mortgage refinancing, credit advances and loans are all relevant to 50-something consumers, but are hard to get done at any age with a bad credit score.

Basically, it's better to be safe than sorry when it comes to credit.

Existing Debt

50-somethings with existing debt can negotiate better interest rates if their score and credit history is still considered good-to-excellent. This is important to both the individual and their heirs in case they pass away, since assets after a person has passed are distributed to beneficiaries only after their debt has been paid off. If the debt outweighs the estate, beneficiaries aren't saddled with the old debt (unless they're a co-signer on any of these outstanding debts), but they do miss out on an inheritance.

This is all to say that an old debt never dies, but unfortunately we do. (Mordbid, I know.) And to prepare for such a situation is to take action while we still have the income, the assets and – most importantly – the time.

Paying down old debt – especially credit card debt – can take a lot of that precious commodity that we call “time”. One way to expedite this process is by negotiating lower rates with your credit card companies; another is to transfer a sizable portion of that debt to a 0 percent credit card applied to balance transfers. Simply apply for a new, 0 percent card, transfer as much of your existing debt to your new card as you see fit, and start paying it down more vigorously to remove as much of that balance as you can during the allotted 0 percent period.

While both of these options allow someone to pay down their debt at a faster rate, they're essentially reserved for good-to-excellent credit consumers. If you want lower rates, you need a good score, which is why it makes sense to maintain a healthy score well into your 50's and beyond.

The Hassle, and The Guilt

The last reason it's important to maintain solid credit and good-standing accounts is the hassle and the guilt that comes with defaulting and paying late, which are what ultimately drive down your credit scores for good.

The incessant phone calls – which you're legally entitled to stop, by the way, as part of the Fair Debt Collection Practices Act – the scary looking letters (you can stop these, too), and let's face it, the hit to your pride. None of that's worth dealing with at any age, especially when you thought your financial woes were long in your rear view mirror.

Look, it doesn't feel “good” to have bad credit and it certainly doesn't feel good to owe money. Maintaining a good credit score is what you've done all your life, so why let go just because you're unsure of it's worth in 50's and beyond?

No one can tell the future, and it's impossible to say when or how a good credit score could come in handy down the road. But it's best to be prepared if the situation arises; you'll sleep better at night in the meantime knowing you – and your family – will be in good shape in case of a credit or finance-related emergency thanks to your lifelong dedication to paying on time and carrying little to no debt.

This post was written by Jason Bushey. Jason is a personal finance expert and you can find his work daily on

Monday, June 10, 2013

Useful Things You Should Know to Boost Your Credit Score

Credit Scores

When applying for loans, opening a bank account or even renting out an apartment, your credit report is required. It helps determine whether or not you have the capability to repay the loans that you have taken out. 

Of course these credit companies would like to know if you are a good risk or not. If you have poor ratings on your credit report, there is a lesser chance that your loan will not get approved or you will not get the interest rate that you want. 

More often than not, people with bad credit reports will run the chance of paying loans with high interest rates and shorter payment terms. If you want to improve your credit score, here are some useful things you should know: 

  • Get a copy of your credit report from the credit bureaus. It will be difficult to improve your credit score if you don’t know your current standing. Credit reports are given free once each year, but if you want to know your credit score then you have to pay minimal amount for it. FICO credit score is the most commonly used by creditors. There are three credit bureaus that can supply you with this score namely Equifax, Experian and TransUnion. 
  • Don’t accept all the pre-approved credit card offers. There are times when you will get this type of credit card offer in your mail and even online. Resist the temptation of responding to these offers because easily approved credit cards can affect your credit score. Whenever there’s an inquiry in on national credit bureaus, points are deducted from your score. Frequent and impulsive checking of your credit score can harm your score. 
  • Avoid transferring from one credit card to another. You may think the transferring your balance will not hurt you because you will receive 0% interest rate for a particular period of time. However, it will be much better if you don’t close your old credit card because long-stand credit card will look good in your credit report and may give you a good credit score too. 
  • Don’t miss out on due dates. Paying your bills on time and on a regular basis if you want to avoid credit score dings. For every late payment you make on your bills, it depicts a picture that you are not reliable. Keep in mind that a huge chunk of your credit score is based on your payment history. If creditors can see that you are a responsible in paying your bills, it can improve you credit score big time. 
  • Raise disputes when necessary. If you see that something is wrong in your credit report, make sure that you dispute it. If you have been a bad person as far as your creditors are concerned, you can get one bad thing out of the report yearly. You just need to be consistent in improving your credit scores. If there are negative notations on your credit report, make sure that you dispute these things. Be patient because it is not easy to remove any negative information on your credit reports. 

About the Author: The article is done by Mackenzie Sulivan, technology, seo and finance copywriter, guest blogger and web developer. She likes covering seo, technology and finance articles and news via online edition. She contributes to this site: 12 Month Loans from eMoneyBuddy.

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Friday, May 10, 2013

Common Credit Score Myths Debunked

Credit Scores
Credit Scores (Photo credit: i am real estate photographer)
Ahh myths...they are fun but, when they are about financial stability, they can cause quite the stir! With credit scores being more important today than ever before, it is no surprise that myths have started to form as the result of lack of knowledge about this topic. The truth is, most schools don't teach kids about credit cards and credit scores. When it's time to fend for ourselves financially, we try to just learn as we go. In this process, we often times take suggestions offered up by friends when the truth is, they know no more about the topic than we do. Well, today, I am writing this article to debunk the most common credit score myths! 

Myth #1: Will Checking My Credit Score Harm My Credit Scores?

Over time, I've been told by several people that if I check my credit score, it will harm my credit score. The truth is, this is definitely a myth. How is it that you would be able to manage your credit if your score went down every time you went to check it! Although, this myth does have a reasonable explanation. When consumers apply for loans, their credit is checked. As a result of this check, the credit score will be decreased. However, the decreases are small and consumers would have to apply for a few loans at a time to notice any huge changes. The bottom line is, negative changes as the result of a credit check only happen if the check is requested by a third party for the purpose of issuing credit. 

Myth #2: Is Closing My Credit Card A Bad Idea?

It is a widely thought idea that closing a credit card is a bad idea. But, is this always the case? This idea is a MYTH! Although it's not always a good idea to close a credit card, it's not always necessarily a bad idea either. There are many factors that determine your credit score. One of the factors is the average amount of time your credit cards have been opened. Therefore, every time you open a new credit card, the average time goes down and it causes a minor ding. But, if you open a new credit card and find out it's not something you enjoy, it's probably a good idea to close it, considering you have other accounts that have been opened for a while. As a matter of fact, in this case, it shouldn't do the slightest bit of damage and may have a positive impact. 

Myth #3: Are Lenders Willing To Help Consumers Through Rough Times?

It is a common misconception that lenders are evil corporations that don't care about us little guys. Without us little guys, the credit card companies would have absolutely nothing. So, even if they don't care about anything but the bottom line, it's in their best interest to help us out from time to time. As a matter of fact, many lenders have opened up financial hardship departments to provide a helping hand when needed. Learn more about credit card hardship programs here in an article I recently wrote for Top Finance Blog! 

Final Thoughts

When it comes to something so incredibly important as your credit score, it's important to believe nothing you hear without research. The truth is, if you are afraid to check your credit score, it's unlikely that you will build an excellent one. If you don't understand how closing a credit card may or may not change your score, it will be hard to manage reasonable amounts of debt and lines of credit. Finally, if you are afraid to ask your lender for assistance in the midst of hard times, you will find harder times to come in most financial hardship situations. This is why doing your research is so important!

About The Author, Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance writer. This article was inspired by Joshua's most recent work, “How Long Does It Take To Improve Your Credit Score”. Join the discussion about credit scores or any personal finance topic of your choice on Google+!

Thursday, May 2, 2013

Why a Credit Score Still Means Something at 50+

Credit Scores
Credit Scores (Photo credit: i am real estate photographer)
There are many consumers of fifty years of age and over whose credit scores have been damaged in recent years by the fickle financial climate. On average however, those of us who are over 50 still have better credit scores on average than many. As we head into our retirement years though, it’s possible to become a little complacent about our credit ratings. We are debt free and not interested in borrowing any more, so what’s the big deal if our credit score “ ain't what it used to be?” Well, the truth is, it does matter, and for some very specific reasons you may not have thought of. 

We Should Still Be Diligent About Identity Theft

Though great measures have been incorporated into our society in order to prevent identity theft, it still occurs. The fact is, as vendors and lenders implement strategies to combat identity theft, thieves exert as much energy into figuring out how to get around them. Almost 10% of American households have at least one member who has fallen victim to this heinous crime, which continues to increase. (US Bureau of Justice)

Monitoring our credit reports and credit scores on a regular basis is an effective means of protecting ourselves against identity theft. If we check our credit report on a regular basis there is a greater chance of catching any irregular transactions before they can do much harm. Look for any new accounts that you did not open, credit card transactions, even loan applications that are not of your doing. Even an increase in the number of inquiries can expose fraudsters trying to open accounts in your name.

The Possibility of Medical Emergencies

As we get older there is a greater chance of us becoming ill. Maintaining a healthy credit score will ensure that we can get the loan we need if saddled with huge medical expenses. Many accounts that are in collection are there because of unpaid medical bills, in fact it is one of the most common reasons for debt. Our insurance may not cover everything, and it is comforting to know that the funds we may need for ourselves or our loved ones will be available if we need them.

Take Advantage of Better Insurance Rates

Many of us who are over 50 still need to pay auto and home insurance. There is a 2:1 chance that our insurer uses our credit score in determining how much they charge us and what discounts we qualify for. The higher our credit score is, the better our chance of receiving the best possible rates, savings we can put towards our retirement and the amenities we’d like to go with it! 

Better Employment Opportunities

Unfortunately many people over 50 have been forced to return to work in recent years. Anyone in that position needs every advantage they can get, and a good credit score is an ace to have up your sleeve. Many employers factor an applicants credit score into their decision making progress of who to hire. They feel a good credit score is an indication of responsibility and reliability. Though they need your permission to view it, refusing them access could lead them to believe you have something to hide, even if that’s not true. Consequently your chances of securing a senior position, or employment in general, could be jeopardized.

Though we may be over 50, it doesn’t pay to be complacent about something that affects so many different areas of our lives. Paying attention to our credit scores can save us embarrassment, hardship, and most of all, money!

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