May
30
lorrelle asked:
I have just been approved for a Gold card from Orchard Bank. This is a secured card, i didn’t have to put $200 down. The reason i have been thinking about using this is i need to improve my credit rating! I have had some problems in the bast due to lack of work. Has anyone had any luck with this company? Has anyone had their credit rating improve over time with this company?
Erica
I have just been approved for a Gold card from Orchard Bank. This is a secured card, i didn’t have to put $200 down. The reason i have been thinking about using this is i need to improve my credit rating! I have had some problems in the bast due to lack of work. Has anyone had any luck with this company? Has anyone had their credit rating improve over time with this company?
Erica
May
23
California Bad Credit Mortgage Loans – How Credit Ratings Affects Approval
Filed Under Finance | Leave a Comment
Carrie Reeder asked:
Applying and getting approved for home loans with bad credit is doable. Unfortunately, those who accept a bad credit loan must be willing to pay slightly higher interest rates. The average mortgage rate is about 6%. If you have excellent credit, it may be possible to get approved for a home loan around 5%. However, if you have a low credit score, you can expect rates as high as 9%.
Understanding the Importance of Credit
Using credit unwisely can greatly hinder any efforts to obtain a low rate on home loans, auto loans, credit cards, etc. For this matter, many people strive to improve their credit rating. Credit ratings can affect home loan approvals. Although it is possible to get approved for a mortgage with poor credit, rarely do lenders offer home loans to persons with credit scores below 500.
Additionally, a few traditional mortgage lenders have strict lending guidelines. Some only offer prime rates to those with credit scores above 680, whereas others reserve prime rates for those with scores above 720. Thus, if you are hoping to secure a low rate mortgage, it is important to maintain a high credit rating.
Benefits of a Bad Credit Mortgage Loan
Bad credit mortgage loans are offered by sub prime lenders. These loans are intended specifically to help individuals with poor credit obtain a home loan. While bad credit loans are helpful, there are certain disadvantages.
For starters, individuals with a low credit score will pay higher rates. Higher mortgage interest rates will increase total mortgage payments. In some cases, high rates may decrease how much you can afford to pay for a home.
Nonetheless, bad credit mortgages are ideal for rebuilding credit and improving credit rating. After paying on a mortgage for several months, your credit score will begin to gradually increase. In time, you may be able to obtain other credit accounts at a reasonable rate. Furthermore, once your credit improves, you will have the option of refinancing the home loan for a better rate.
Applying for a Bad Credit Mortgage Loan
When applying for a bad credit mortgage loan, research online mortgage lenders. These lenders offer easy online applications and quick approvals. Moreover, online mortgage mortgages afford easy loan comparisons. After receiving a loan request form, brokers will provide multiple offers from a range of lenders.
Darrell
Applying and getting approved for home loans with bad credit is doable. Unfortunately, those who accept a bad credit loan must be willing to pay slightly higher interest rates. The average mortgage rate is about 6%. If you have excellent credit, it may be possible to get approved for a home loan around 5%. However, if you have a low credit score, you can expect rates as high as 9%.
Understanding the Importance of Credit
Using credit unwisely can greatly hinder any efforts to obtain a low rate on home loans, auto loans, credit cards, etc. For this matter, many people strive to improve their credit rating. Credit ratings can affect home loan approvals. Although it is possible to get approved for a mortgage with poor credit, rarely do lenders offer home loans to persons with credit scores below 500.
Additionally, a few traditional mortgage lenders have strict lending guidelines. Some only offer prime rates to those with credit scores above 680, whereas others reserve prime rates for those with scores above 720. Thus, if you are hoping to secure a low rate mortgage, it is important to maintain a high credit rating.
Benefits of a Bad Credit Mortgage Loan
Bad credit mortgage loans are offered by sub prime lenders. These loans are intended specifically to help individuals with poor credit obtain a home loan. While bad credit loans are helpful, there are certain disadvantages.
For starters, individuals with a low credit score will pay higher rates. Higher mortgage interest rates will increase total mortgage payments. In some cases, high rates may decrease how much you can afford to pay for a home.
Nonetheless, bad credit mortgages are ideal for rebuilding credit and improving credit rating. After paying on a mortgage for several months, your credit score will begin to gradually increase. In time, you may be able to obtain other credit accounts at a reasonable rate. Furthermore, once your credit improves, you will have the option of refinancing the home loan for a better rate.
Applying for a Bad Credit Mortgage Loan
When applying for a bad credit mortgage loan, research online mortgage lenders. These lenders offer easy online applications and quick approvals. Moreover, online mortgage mortgages afford easy loan comparisons. After receiving a loan request form, brokers will provide multiple offers from a range of lenders.
Darrell
May
21
What should I ask for when settling a debt?
Filed Under Credit | 4 Comments
Matt asked:
I recently received my annual bonus from work and I want to pay off one of my credit cards. What should I ask to be reported on my credit record that will help improve my credit rating? I have numerous missed payments and had gone over my limit since I could no longer pay my old debts but I want to start fresh and work on being responsible building good credit instead of being haunted by my college mistakes.
ok first let me add to the fact that I have not taken out a new line of credit in over 3 years I haven’t charged anything to my cards in the last 18 months and my goal is to put the past behind me in the most favorable light so that I can get debt free and when I need credit (to buy a car or house) I can do so with out rates that leave me a slave to my creditors. and if we can leave out bible references that would be great thanks
Travis
I recently received my annual bonus from work and I want to pay off one of my credit cards. What should I ask to be reported on my credit record that will help improve my credit rating? I have numerous missed payments and had gone over my limit since I could no longer pay my old debts but I want to start fresh and work on being responsible building good credit instead of being haunted by my college mistakes.
ok first let me add to the fact that I have not taken out a new line of credit in over 3 years I haven’t charged anything to my cards in the last 18 months and my goal is to put the past behind me in the most favorable light so that I can get debt free and when I need credit (to buy a car or house) I can do so with out rates that leave me a slave to my creditors. and if we can leave out bible references that would be great thanks
Travis
May
18
littlemallory2001 asked:
My husband just bought a motorcycle, our payments are 450. if I pay 600 a month, by the end of the year we will be 750 ahead on payments, I know this will take a huge chunk out of intrest and help us pay it off way faster, but will his credit score increase at a quicker rate than regular payments?
Nathan
My husband just bought a motorcycle, our payments are 450. if I pay 600 a month, by the end of the year we will be 750 ahead on payments, I know this will take a huge chunk out of intrest and help us pay it off way faster, but will his credit score increase at a quicker rate than regular payments?
Nathan
May
17
Wongawoman asked:
Young people coming of age don’t often realise that their credit rating is something that will stick with them for the rest of their lives. It all happens pretty fast too, once you head to university or finish school and start working. There are school loans, your first bank account, credit card offers and maybe even a car loan. While this is a very exciting time and there is a lot of change happening all at once, this is the time to be aware of credit, how it all works and what you can do to maintain and improve your credit rating.
First, having no credit at all is in some ways just as bad as having bad credit. Creditors assess creditworthiness in part by how you have handled previous lines of credit. If a lender can establish that you’ve repaid previous loans or debts on time, then they take that as evidence that you are lower-risk and therefore worthy of them to take a chance on.
1) Open a current account and use it responsibly
One of the catalysts for the current state of the economy was people living beyond their means. Understand your means by creating a budget; even if your incomings and outgoings are meagre, this is still a good habit to start while young. Next, set up bill payments to come directly out of your current account by direct debit. If this is only a small monthly mobile bill, it’s a good start.
These are the baby steps to establishing yourself as a creditworthy individual. In time you will be able to apply for an overdraft facility from your bank. Even if you don’t use it, which is ideal, it’s still a positive step for two reasons. First, most banks register details with credit reference agencies of customers who have overdraft facilities on their current accounts. Now you are on the radar! Second, your overdraft facility can give you a bit of peace-of-mind knowing that if you ever go overdrawn, even by a few pence, you will be covered. However, always manage your finances without your overdraft facility in mind.
2) Register on the electoral role
Being registered as a resident at your current address takes very little effort and returns huge benefits. Any lender with whom you apply for credit will check your address history as the first steps in any application process. Being able to verify that you are who you say you are and you live where you say you live will save yourself many a headache in the long run.
It may be difficult during the student years, however establishing a stable history of residency can also benefit you. Moving a lot, much like changing jobs frequently, can sometimes lead creditors to believe that your lifestyle is unstable and therefore too high-risk.
To register on the electoral role, you can either contact your local council or visit the Electoral Commission’s website. Even if you are ineligible to vote in the UK, you still need to let the Electoral Commission know your residency status.
Take action now to implement these very important tasks. Wonga offers debt and borrowing advice on their website and also has a free budget calculator and free Guide to Borrowing. These useful tools will help you take the first steps in getting your credit history off on the right foot.
Amber
Young people coming of age don’t often realise that their credit rating is something that will stick with them for the rest of their lives. It all happens pretty fast too, once you head to university or finish school and start working. There are school loans, your first bank account, credit card offers and maybe even a car loan. While this is a very exciting time and there is a lot of change happening all at once, this is the time to be aware of credit, how it all works and what you can do to maintain and improve your credit rating.
First, having no credit at all is in some ways just as bad as having bad credit. Creditors assess creditworthiness in part by how you have handled previous lines of credit. If a lender can establish that you’ve repaid previous loans or debts on time, then they take that as evidence that you are lower-risk and therefore worthy of them to take a chance on.
1) Open a current account and use it responsibly
One of the catalysts for the current state of the economy was people living beyond their means. Understand your means by creating a budget; even if your incomings and outgoings are meagre, this is still a good habit to start while young. Next, set up bill payments to come directly out of your current account by direct debit. If this is only a small monthly mobile bill, it’s a good start.
These are the baby steps to establishing yourself as a creditworthy individual. In time you will be able to apply for an overdraft facility from your bank. Even if you don’t use it, which is ideal, it’s still a positive step for two reasons. First, most banks register details with credit reference agencies of customers who have overdraft facilities on their current accounts. Now you are on the radar! Second, your overdraft facility can give you a bit of peace-of-mind knowing that if you ever go overdrawn, even by a few pence, you will be covered. However, always manage your finances without your overdraft facility in mind.
2) Register on the electoral role
Being registered as a resident at your current address takes very little effort and returns huge benefits. Any lender with whom you apply for credit will check your address history as the first steps in any application process. Being able to verify that you are who you say you are and you live where you say you live will save yourself many a headache in the long run.
It may be difficult during the student years, however establishing a stable history of residency can also benefit you. Moving a lot, much like changing jobs frequently, can sometimes lead creditors to believe that your lifestyle is unstable and therefore too high-risk.
To register on the electoral role, you can either contact your local council or visit the Electoral Commission’s website. Even if you are ineligible to vote in the UK, you still need to let the Electoral Commission know your residency status.
Take action now to implement these very important tasks. Wonga offers debt and borrowing advice on their website and also has a free budget calculator and free Guide to Borrowing. These useful tools will help you take the first steps in getting your credit history off on the right foot.
Amber
May
17
If I refinance my car for a lower interest rate dos that help improve my credit score?
Filed Under Credit | 4 Comments
stupiddum1 asked:
my credit score
the loan will be paid off and refinanced by another bank at a 2% lower interest rate
Charlie
my credit score
the loan will be paid off and refinanced by another bank at a 2% lower interest rate
Charlie
May
16
Liam G asked:
With the current flood of adverts claiming how simple it is to get secured loans or any other line of credit, it’s easy to believe that anyone can be approved, regardless of their circumstances.
However, this is not the case, more often than not.
Even if applicants are approved for a certain line of credit – such as a credit card, secured loans or personal loans – the advertised rate of interest may not be the one that they are offered.
Why your credit rating is so important
As you may already be aware, all adults in the UK have their own unique credit rating. This is what lenders use to determine whether or not they will approve applications for credit and if so, at what rate.
Therefore, if your credit rating is less than perfect, you may find yourself being denied that new “super loan rate loan”. Even if you are approved, you probably wont get the “low rate” you were expecting.
So what should you do?
As it happens, there are quite a few steps that can be taken to improve your credit rating, ensuring you get the loan you want – and at the low rate advertised.
There is no such thing as a “quick fix”. However, a mix of the following methods will certainly help.
The electoral roll
If you are not on it already, make sure you are on the electoral register. If you’re not “on the roll”, your chances of getting credit are much more limited, as lenders want to know exactly where you live. Giving your local council a call should clear any electoral issues up.
If you are not eligible to vote, sometimes the case if you are a foreign national, you will need to send each of the credit agencies proof of your residence.
Timely applications
Multiple applications over a short period of time will have a negative affect on your credit rating.
Yet after being rejected by one lender, many would-be borrowers immediately make applications to another, and another and so on. This is know as the “rejection spiral” and can be avoided in two ways.
First, space out any applications over a period of a few weeks or months. Second, remember that credit applications aren’t just limited to loans or credit cards: they can be linked to mobile phone contracts, even car insurance, where you ask to pay for your cover by instalments.
Watch your footprints
Every time you make an application for credit, lenders make a note of this on your report. This is known as a “footprint”, and remains on your report for a year. There can either be “hard footprints” or “soft footprints”.
A “hard footprint” is a “credit application search”, and these are the ones to watch out for. If you are simply shopping around for the best deal, then you want to make sure that lenders are only making a “quotation search”, which will leave a “soft footprint”.
Aaron
With the current flood of adverts claiming how simple it is to get secured loans or any other line of credit, it’s easy to believe that anyone can be approved, regardless of their circumstances.
However, this is not the case, more often than not.
Even if applicants are approved for a certain line of credit – such as a credit card, secured loans or personal loans – the advertised rate of interest may not be the one that they are offered.
Why your credit rating is so important
As you may already be aware, all adults in the UK have their own unique credit rating. This is what lenders use to determine whether or not they will approve applications for credit and if so, at what rate.
Therefore, if your credit rating is less than perfect, you may find yourself being denied that new “super loan rate loan”. Even if you are approved, you probably wont get the “low rate” you were expecting.
So what should you do?
As it happens, there are quite a few steps that can be taken to improve your credit rating, ensuring you get the loan you want – and at the low rate advertised.
There is no such thing as a “quick fix”. However, a mix of the following methods will certainly help.
The electoral roll
If you are not on it already, make sure you are on the electoral register. If you’re not “on the roll”, your chances of getting credit are much more limited, as lenders want to know exactly where you live. Giving your local council a call should clear any electoral issues up.
If you are not eligible to vote, sometimes the case if you are a foreign national, you will need to send each of the credit agencies proof of your residence.
Timely applications
Multiple applications over a short period of time will have a negative affect on your credit rating.
Yet after being rejected by one lender, many would-be borrowers immediately make applications to another, and another and so on. This is know as the “rejection spiral” and can be avoided in two ways.
First, space out any applications over a period of a few weeks or months. Second, remember that credit applications aren’t just limited to loans or credit cards: they can be linked to mobile phone contracts, even car insurance, where you ask to pay for your cover by instalments.
Watch your footprints
Every time you make an application for credit, lenders make a note of this on your report. This is known as a “footprint”, and remains on your report for a year. There can either be “hard footprints” or “soft footprints”.
A “hard footprint” is a “credit application search”, and these are the ones to watch out for. If you are simply shopping around for the best deal, then you want to make sure that lenders are only making a “quotation search”, which will leave a “soft footprint”.
Aaron
May
13
Should I settle my credit card accounts or should I just pay them off?
Filed Under Credit | 7 Comments
Pinto B asked:
Does it improve my credit if I pay my credit card accounts that are already in collection or no? Or should I just settle it? Does it make my credit score go higher if I pay them?
Does it improve my credit if I pay my credit card accounts that are already in collection or no? Or should I just settle it? Does it make my credit score go higher if I pay them?
I just want to get an idea because I called one of the collection agency for my credit card and they said I could settle the account but it will effect my credit. They said if I pay them monthly and pay the account off it will show on my credit report that I have paid it and will improve my credit rating.
What should I do? Are collection agencies telling me the truth or false? And I owe about $7,000 in credit card debt!
Thank you for your time and effort in answering my question.
Allison