Bad credit is something that we have to go through at some point of time of our life – sometimes, we need to take up a number of loans in order to cope up with the regular expenses, and sometimes it is an emergency which forces us to seek for extra source of money. And it is not possible always to pay off all the credit within the given timeframe, and this, gradually leads to a poor credit score. Now, to get approved for credits with a poor score and a not-so-fair financial history is a really big challenge because lenders consider you to be a customer with high risks since you might leave him without paying off the money. But having a poor credit rating nowhere ensures that your financial requirements will stop to occur and therefore, you must know how to get hold of a cash loan, even with a poor credit score. Here are some of the most effective tips for doing the same; take a quick look –
- Apply to the Credit Unions – Credit unions are financial organizations like banks, but they are owned by a group of members, who have something in common. For instance, the members of a credit union might live in the similar geographical area or they might work in the similar industry. These unions are non-profit organizations and they pass on the earnings to its members in the form of higher customer service and lower fees.
- Take a loan from friends or family – Find out if there is anyone in your friends or family members who can give you the particular amount of money that you need. Make sure the loan is treated absolutely like a serious business transaction which is legally recorded and clearly documented. Chances are there, that since it’s an agreement between family members, or among friends, nothing written would be there; but this might lead to serious complications, later on. To avoid any kind of confusions, later on, create a written agreement which includes all the fees like processing fees, payment terms, rates of interest, if you have put up any collateral to get the credit, and also what would happen if you by chance fail to pay off the credit within the given time.
- Apply for small loans – There are a number of personal lenders who offer credits for short period of time. Apply for small loans from such agencies and since the lenders are not concerned about your financial past, they will easily give you the cash. You just need to convince them about the security of your present state of income and the fact that you can pay off the loan within the given payment period.
Author bio: Alan Starc known for his participation in UnitedFinances.com and other online loan communities. He also writes blogs and participates in online loan forums.
With gas prices seemingly always on the up, credit card companies are taking advantage of the situation by offering gas reward incentives. This helps credit card users build up gas rewards so they can save money at the pump. Since nearly two-thirds of Americans already pay for their gas with plastic, it makes sense to have a rewards card on hand, but how can you be sure you`re choosing a good one?
Discounts at the Pump
Let`s face it; you`re looking into a gas rewards card to save money on gas. Make sure the card you choose comes with adequate discounts that make it worth your while, whether those discounts are based on dollars or gallons. Some companies offer cards that offer a cash percentage back that`s based on total price spent and a 5% discount may mean saving as much as 18 cents per gallon. Discounts based on dollars tend to look smaller on paper, but they usually add up to more in the long run.
Fees and Interest Rates
You don`t want to offset the rewards you earn at the pump with high interest rates and fees. Similarly, gas rewards cards are only effective when cardholders are able to pay off those monthly balances in full. Carrying over a balance of any amount to the next month will likely offset any savings you`ve earned, which defeats the card`s purpose. Look for card offers that have lower interest rates and keep an eye on those hidden fees.
Universal Gas Station Discounts
Some gas rewards credit cards can only be used at certain stores, namely “stand alone” stores and they exclude larger retailers such as supermarket fuel centers. If you never shop at retail gas centers, you may be able to get away with a card that won`t count these purchases toward your rewards, but it`s generally best to find a card that can be used anywhere. You never know when your routine may change.
Store-Specific Gas Retailers
Along those same lines, almost every major gas station chain offers its own version of a gas rewards card, also known as a private label card. This doesn`t mean that these retailers automatically refuse to give you rewards at another gas station, but rewards tend to add up faster if you`re only purchasing gas at their locations. In many cases, the card will only be accepted at that brand`s station. This strategy could work for someone who prefers a specific chain and never fills up anywhere else, but consumers that base their purchase on the most competitive price per gallon should shop around for a universally accepted option.
How do you Plan to Collect the Rewards?
Some rewards programs come with a rebate cap amount or a minimum cashing out threshold. Others allow you to accumulate more points the longer you wait to cash them in. Automatic redemption is a great feature for consumers looking for less hassle, but some cards make it more difficult to reap the rewards. Always read the fine print and determine which collection strategy works for you.
Still have questions about gas rewards credit cards? Visit <a href=”http://www.moneytips.com/credit-cards“>moneytips.com</a> for more information, financial calculators and other money-saving strategies.
The short term or payday loans are fast becoming one of the most availed options for borrowers not only for attending to their immediate needs but also for bolstering their credit scores. They might entail rates that can cross 4000 per cent with an addition of APR. There is no doubt that they help you to mitigate temporary but urgent issues, but are they really effective in boosting your credit scores? Let us find out.
To begin with, you must know that the fast cash loans are indeed included in your credit file, the moment you apply for them. If you are approved for them it will help you in notching up better ratings and vice versa.
Another thing that you should be made aware of, before further details regarding the relevant topic are shared, is that your credit rating will differ with the creditors’ wishes. It means that it is the lender who marks the borrowers’ scores in the file as per his wish. The wish list is generally based on the value of the borrower for the lender (meaning how profitable is the customer for the creditor).
Now back to the effect of payday loans on FICO scores. If you make the payments on a regular basis you will be able to secure better scores for yourself. However as already mentioned even after making payments on a regular basis the rate of improvement of your scores will be dependent on the creditors’ choice. However you can be rest assured if you are making timely repayments, it will result in better scores for you. If you make an attempt to repay installments on time or for that matter earlier than the scheduled time you will be rewarded with better ratings from the lenders.
Though at present, availing the fast cash loans might be helpful in improving your ratings, the future looks a bit grim in this regard. It is being anticipated that in future a bit of negative marking might be attached to them as far as your credit scores are concerned. Today the creditors are not particularly mentioning the payday loans on the files. They are just being mentioned as borrowings. However in future there might be differentiations drawn between these particular borrowings and other kinds of loaning practices. Since the instant loans are in some cases associated with low income problems, money management and other issues, creditors might as well add some negative ratings for payday loans, irrespective of the fact whether you have paid on time or not.
You can thus base your decision to opt for these borrowings on the factors mentioned above. Only the fact that that improved FICO ratings give individuals better opportunities in future as far as their borrowings are concerned, should not really induce you to invest indiscriminately in these loans.
Author Bio: Author Alan Starc is an experienced web content writer. Most of his articles inform readers about the various aspects of payday loans. Please click here to know more about this service.
The decision to file for bankruptcy is never easy. There are so many different things to take into consideration and one of the most important issues to look into are the short and long term effects on a person`s credit. When the credit score goes down, opportunities disappear and the interest rates for lending tend to go up. However, this does not mean that a person cannot get another credit card. As soon as the settlement is complete, many start to get offers for new cards in the mail.
In the short term, there is no point keeping the old credit cards. They are no longer necessary, nothing new can be charged on them and they are in no way going to benefit the credit score. Instead, if a credit card is necessary, it is time to start applying again.
While applications may start showing up right away, make sure to read each one carefully. Some lenders believe that once bankruptcy has taken away all of a person`s debt, they are no longer a risk to lend to, especially in small increments. However, they do realize that there is always going to be some risk involved and in most cases, more so than traditional borrowers. The availability of credit will be there, but a consumer is going to pay dearly for it.
Be prepared to see increased interest rates that are well above what other consumers are being offered. Unfortunately, a person needs to start somewhere and those credit cards could be the key to building up the credit score again. Over time, things will improve, but there is no doubt that the pain of borrowing will be felt.
For those that don`t want to head down the traditional route for credit cards, it is possible to get a secured credit card or a pay in advance card. These can help a person get started with making improvements to their credit score. It takes time, but consistent payments and avoiding late fees or over the limit fees will help.
In the long term, it is possible to almost completely recover from a bankruptcy. Once the changes to the credit report are made and lenders begin to see that there are real improvements, it is possible to get improved credit offerings. Looking ahead, a person can get back to the way things were before bankruptcy; it just takes time and dedication. There are no laws that govern how and when a person is eligible for new credit. It is up to the lender to determine how much of a line of credit should be provided and what the interest rate should be.
Before going ahead with filing, it is important to get professional <a href=”http://www.bankruptcyadvice.co.uk“>bankruptcy advice</a>. There are several things that need to be looked at before making the final decision. There are both short and long term effects to filing for bankruptcy and it is important to make sure that this is the best possible option for a person`s credit and their future.
Description: Personal loans today are available at affordable for borrowers with bad credit history. But the borrower should also try to improve his credit history by adopting a few measures. Find out more on this.
Article: In the wake of the recent economic downturn, debtors have been faced with the imminent problem of bad credit ratings. Steep pay cuts or job losses have made it extremely difficult for borrowers to keep up with their monthly installments— the result being plummeting credit scores for them.
In case of personal or the unsecured loans, the debtors mostly do not have to take the onus initially as there is no property that can repossessed against these loans. However the problem is only realized when these debtors with poor credit scores seek loans the next time. Creditors immediately refer to their borrower’s ratings recorded in the credit files. The poor or limited ratings reflecting the irregular repayment tendencies of borrowers fail to encourage creditors to enter a deal with them. They either charge them very high interests to get back as much as the money as possible in the first installment, or turn their down their loan request.
Poor ratings thus can affect your future financial transactions in a major way. Banks today are doling out personal loans at lower rates even for borrowers with poor scores, keeping the general financial crisis in view. However no matter what kind of advantages he is getting, a borrower should never give up on looking for ways to improve his credit history, in a bid to consolidate his financial status. Here are a few ways by which you can do the same:
Rebuild on your bad loan history by investing duly in some credit cards. It will establish the fact that you have successfully managed a monthly debt on a regular basis. However, know for a fact that these cards can have higher APRs. But if at the end of the day, you are successful in building good loan history, these APRs will only be a small price to pay.
Though your poor scores as a borrower might have been the result of genuine economical crunch and not of a callous disregard for your loan repayment responsibility, this time try to be more thrifty with your expenses. Be systematic from the beginning by preparing a monthly budget and by keeping your personal loan installments aside.
Conclusion
The availability of the high risk unsecured loans at comparatively easier rates has come as a huge relief for borrowers today. The serial refusals of loan applications had dented their confidence to a large extent earlier. Do not let this happen to you. If you are saddled with poor ratings and are looking for personal loans at affordable rates, conduct proper research to zero in on a reliable lender. It will not be easy to find lenders shelling out these loans at lower rates, if you are not thorough with your research. Additionally avail the tips mentioned above to improve your debt history.
We are forever being told how vital insurance is: car insurance to protect your vehicle; contents insurance to secure your belongings; and life insurance to ensure loved ones are looked after if the worst should happen. But questions are raised when it comes to credit card insurance. What is it? How do I get it? And do I need it?
Credit card insurance can prove itself incredibly helpful if you find yourself in a financially difficult situation. For instance, if you lose your job through no fault of your own or you suffer a debilitating accident and are unable to earn as you once were. However, many of us simply dismiss the insurance or just say `yes` for the sake of saving time during the application process. But it is essential that as consumers we are clear about the service credit card insurance provides, whether it is right for you or not.
What does it involve?
Although the specifics of credit card insurance policies vary from provider to provider, there are key aspects that you can expect to be covered. Most will offer life cover which will wipe the debt on the card in the event of your death, leaving no financial burden behind for your loved ones. Disability cover is also common this can involve receiving a monthly `salary` of sorts to help keep up with repayments during your convalescence. However, this can be restricted to an unmovable time limit so could not support you over an extended period.
Unemployment is a very real threat in these times of economic strain. Some credit card insurance recognises this and offers support in this instance. Credit used whilst you were employed can be eliminated from your bill, for example. But don`t be tempted to keep on spending as the credit card company will not cover purchases made during times of unemployment. Finally, insurance can include property cover, specifically items of personal property purchased on the credit card. This is limited to a certain list of named occurrences, such as flood and fire, so accidentally losing your phone whilst attempting the conga on a night out will be unlikely to countt
How do I know if I need it?
How many credit cards do you have? If you have many, paying for insurance through each one separately could result in high costs and being `over-insured.` If this is the case, exploring stand-alone policies for home, life and disability may make more sense.
If you don`t have credit card insurance, in addition to not having any separate cover, you are leaving yourself at risk of serious financial difficulty. The charges for missed credit card payments can easily mount up and this, on top of your other household bill commitments, can quickly escalate into insurmountable money problems. Knowing that you have purchased credit card insurance would alleviate at least some of the potential worry and allow a certain amount of peace of mind.
You may well already have life policies, critical illness cover or extensive content insurance rendering many aspects of credit card insurance invalid. If you do not, <a href=”http://www.criticalillness.org.uk/tips-to-choose-the-best-critical-illness-cover.html“>additional reading</a> on the subject is well worth it as it allows you to fully assess the type of cover that is right for you. Alternatively, you may feel that the all-inclusive option of credit card insurance is for you. Whatever you opt for, be clear about what you are paying for, what you are entitled to and whether you can alter your policy if your circumstances change.
A poor credit rating does not prevent you from having a credit card, but it can make it a little more difficult to find the right one. Not all cards are the same and it may take some time to find the right one for your situation. There are cards that are specifically made for those with less than stellar credit scores and these usually have several benefits over more traditional credit cards. Here are a few things to look for.
Secured Credit Cards
A secured credit card allows a person to build up their credit score with less risk to the lender. The applicant puts a certain amount of money on the credit card to secure it. This amount can be anywhere from a couple of hundred dollars to a few thousand. From there, the credit card can be used and the money will come from the balance. There are fairly large interest rates associated with this type of card, but if you are ready to cancel the card, you should be able to get back any money you left on the card.
Credit Reporting
To get the most out of a card helping you to repair your credit score, make sure that you choose a lender that reports to all three of the major credit reporting agencies. If the goal is to increase your credit score, it is important that all three companies be aware of your progress and improvement. Regardless of the improvements that you make, if one or more of the credit reporting agencies does not know, the improvements will not show up in your scores.
Annual Fee
Check to see how much the credit card is going to cost you each year. While there are various annual fees to choose from, you don`t have to settle for the largest one. Shop around and find the best deal. Most of the time the annual fee is just added to your balance on the card.
Even if you find the best credit card for a person with a poor credit rating, it still helps to maintain a low balance on the card and pay it off responsibly. Don`t let the balance get too high and don`t wait until a payment is late. The fees can add up quickly and they are often very expensive. Just like any other card, it is possible to get buried underneath the debt and the fees. Be very cautious as you make charges.
As you continue to use the bad credit credit card, keep an eye on your credit rating. While checking it every week or even every month is probably unnecessary, it is still important to keep an eye on things and watch for the improvement. Make sure that all of the information on the report is accurate and that the latest changes are showing up. It will take time and lots of hard work, but the results will show up and start to pay off. This is just one step to take in order to rebuild your credit score and get you back on track financially. You may want to check out <a href=”http://www.nationaldebtrelief.com/“>nationaldebtrelief.com</a> to see what other things you can do to shrink the amount of your debt and pay off lenders.
One of the biggest questions that any customer has in their mind when they are concerned about their credit report is the fact that they might be or might not be qualifying for a loan at a low interest rate or a mortgage or a new credit card.
While it is next to impossible to get your hands on the credit scoring methodologies that the credit reporting agencies use to determine your credit score from your credit report, the fact that every company has its unique algorithm for the same with multiple versions for it makes it all the more improbable.
So the next time you are worried about ‘is 705 a Good Credit Score’ it is advisable that you keep the following three aspects in mind which greatly determine your credit score:
- 1. Payment History – 35%
Your payment history has the highest effect on your final credit score after determining the various aspects of your credit report. It is nearly 35% meaning that 35% weightage is given to the segment of payment history in your credit report. This is why financial experts and lending professionals constantly urge customers to have a favourable payment history in their credit report with zero delayed payments.
Remember that a delayed payment (no matter how small the amount was and how little the duration of the delay was) will have a massive adverse effect on your credit report. This is why you must do all that is possible in order to keep this aspect of the credit report in impeccable condition and thus ensure that you enjoy a high score in this segment’s calculation and contribution to the credit score.
- 2. Debt Level – 30%
The amount of debt that you are already in when it comes to the credit market greatly determines the credit score and it contributes to nearly 30% of your credit score. This means that in case you already have a mortgage on your house and if you are planning to take out a new car loan the chances are extremely low that you will get a favourable interest rate than the person who is applying for a car loan without having any major debt in the market.
This is why the credit experts suggest that you plan your lending properly and as much as possible think about the future requirements when applying for one. This will ensure that you are enjoying the best possible rates at any given time for your necessity lending.
- 3. Length Of Credit History – 15%
The duration for which your credit and payment history is available with the credit reporting agency will play a significant role in your final credit score. A person who has years of credit history behind him to substantiate his new credit requirements will enjoy a better interest rate or favourable repayment scheme than a person who is relatively new in this segment.
This is why lending experts are of the opinion that you must take care to preserve your credit report and have a favourable credit history behind you to substantiate your credit score.
Other factors like inquiries and miscellaneous aspects account for the rest 20% of your credit report and they shouldn’t be ignored either while you are doing your best to maintain the above mentioned 3 aspects.
There are times when you feel the need to freeze your credit cards. And this is not just when it is stolen or lost, but also when you want to keep a check on yourself and not want to use it for any expenses. This will keep the card active and at the same time, you will be able to avoid credit card debt.
If you are already in debt, you can avoid increasing the debt further. So, how do you go about freezing your credit cards? Given below are 3 steps in which you can place a freeze on your credit cards –
Step 1 – Contact the Customer Service
The first step to placing a freeze is to contact the customer service via telephone. The customer service will ask a security question to which only you know the answer. It can be your Social security number, date of birth, or any other customized question. This will verify your identity. You will then be asked to provide your credit card number.
Step 2 – Provide Detailed Card Information
After your identity is verified, you will be asked to provide detailed information about your card. This will include, the last date and place where the card was used. This is in case of lost or stolen credit card. Providing such details help the credit card company to track your card and catch the thief.
Step 3 – Place a Freeze on High Interest Credit Cards
Finally, you can place your request for the freeze on your credit card. Start with the high interest card so that you can manage your debts. After giving a written declaration for the time till which you wish for your account to be frozen, you will be unable to use it. Remember that you cannot unfreeze it till the period of time given by you lapse.
After placing the freeze on your credit cards, try to pay off any outstanding balances so that you can restore your credit (in case you have credit card debts). Even if this does not improve your credit score, you will still be debt free. Remember that if you have high interest cards, it is always better to cancel them rather than freeze them.
The annual fees of such cards are high and when you use them, you will always have to worry about the rate of interest. Instead, keep only those cards active that are low interest cards. To know more about how you can use credit cards to your advantage, you can visit bankoftheinternet.com.
Using credit cards for some people is absolutely essential in getting through each month until they get paid. So long as you are either paying off the balance or meeting the monthly minimum payment they do not present any real problem, unless you run up to high a balance or start getting multiple cards from different companies. However when you stop working and are in retirement, by definition, there is no payday, which often means the balance just keeps increasing. Since the start of the financial crisis back in 2008, credit and credit cards have become more expensive to use due to the card companies increasing the APR interest rates. So retired people with no ‘salary’ may find it increasingly difficult to keep the balance down on their credit cards. Below we talk about what alternatives there are to relying on credit cards in retirement.
Equity Release Plans
If you do find you do not have a sufficient income in retirement then rather than burdening yourself with extra debt on a credit card, you could release the money tied up in your house and take an Equity Release plan. These are only suitable for homeowners over the age of 50 but this does still encompasses quite high proportion of retired people. Your are essentially ‘swapping’ some of the value of your property in exchange for a lump sum and/or annual income depending which sort of plan you choose. This means when you get the money you can pay off your credit cards and then start to live within your budget each month.
Borrow from relatives / friends
You may find you need to buy a big ticket or unexpected item one month. Rather than finance this on credit, why not see if someone else in the family will offer you the money as a loan. A typical APR on a credit card is around 18% which means you will end up paying a lot more back if you don’t clear the balance right away. A relative or friend is much more likely to lend to you at a reasonable rate, if at all.
Find a credit union
Some high street short-term loan companies offer interest rates that will make you fall off your chair. It is not uncommon to see APR interest rates above 1000% or more which is why these are not a viable alternative to using a credit card. However using a credit union will ensure you get a loan at a much more competitive rate. You should borrow from a credit union only when the purchase is essential, do not use them as you would a normal credit card as you will be no better off in the long run.
These are three useful ways to that can help you to reduce your reliance on credit cards. However the best way to achieve this long term is of course to reduce the amount you spend. Credit cards are often colloquially termed as the ‘Never, Never” as many cardholders never pay off the balance. This is more of a problem if you are a retired person so it is worth thinking about how you can use them less.
Author info: Composed by Simon who writes for the pension company Annuity City. Visit them now and use their pension annuity calculator
