Posts Tagged ‘credit history’

The Advantages And Disadvantages Of Secured Loans

Do you know what a secured loan is? A secured loan is a loan in which the person wishing to borrow has to give some sort of security, characteristically their property. A loan against a building that is owned outright is called a first charge, whereas a loan secured on a property that already has a mortgage is called a second charge.

The amount you can borrow usually ranges from 3.000 pounds to 50.000 pounds, even though you can borrow sums up to 100.000 pounds, over a period of between 3 and 25 years. A penalty may be charged for early repayment of the loan, a fact you should check during the application process.

You may even be able to borrow up to 80 per cent of your property’s value, although since the credit crunch, this is now unlikely.

What are the advantages of a secured loan? It’s usually easier to acquire a secured loan than other forms of credit, largely because your borrowing is protected by the equity in your property. Secured loans are a way of borrowing large amounts that would usually be impossible by way of unsecured loans and offer the option of paying back smaller amounts over a longer time.

They are a costly choice but, if other channels of credit have dried up, and you need a large amount of cash over a long repayment period, or you have a poor credit rating, then one of these may suit you. There are still some good secured rates available on the market, providing you have a fairly good credit score.

What are the disadvantages? If your credit score is good, then you would be much better off opting for less risky credit, from avenues such as unsecured loans, credit cards offering balance transfer, remortgaging or looking for an extra advance on your existing mortgage. These options all tend to be cheaper.

For people with poor credit history, secured loans can provide an option. A borrower can ask for a 20.000 pound loan protected against a building worth 250.000 pounds over a period of eight years, with a poor credit history, and still get loans from a variety of providers, but the interest rates would be relatively high.

Debt specialists have long said that secured loans are stretched over unnecessarily long periods and are expensive. This makes it longer for the borrower to escape their debt and they could be at risk of losing their home throughout this period.

If I want a secured loan how do I apply? The options for secured loan clients have reduced over the last year: there are now only seven top providers left in the loans market, this has dropped from eighteen providers in twelve months.

Bad press has hit these companies hard – secured loans are quite often seen as a risky enterprise – and a falling property market, has made lenders more cautious about securing loans against property. You can go to a bank to apply for a secured loan, apply over the phone or visit a website. By using the internet you are able to source lots of options.

Although the first part of your application is quick, you have to be given a seven day consideration time to ensure you fully understand the loan agreement Your credit history, the amount of equity you have in your property and your ability to repay the loan will determine the rate you have to pay for a loan.

Will I have any kind of protection? Yes, you will be covered by the Consumer Credit Act 2006, a revised version of the previous 1974 act which only covered consumers up to 25.000 pounds. This revised act means that secured loans clients taking out bigger amounts have been covered since the 6th of April 2008. All loan providers are assessed on their conduct by the Office of Fair Trading. The Office of Fair Trading has the right to fine businesses for unethical conduct and can contest individual consumers’ cases.

Be the first to comment - What do you think?  Posted by admin - August 13, 2017 at 7:40 am

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Top Companies Offering Loans for People With Bad Credit Updated by ReallyBadCreditOffers.com

Fort Lauderdale, FL (PRWEB) December 15, 2011

The credit market has constricted dramatically since early 2009 and more and more Americans are having to deal with a bad credit history that prevents standard loan qualification approvals. The web's leading resource for bad credit, has revised its comparison of the major personal loan companies that offer credit to those with bad credit.

ReallyBadCreditOffers.com, a bad credit lending consumer watchdog site, which has welcomed hundreds of thousands of visits since its inception in 2008, is now listing the best personal loan offers for those with bad credit ratings.

The site provides easy access to quick comparisons of the best competitive lending offers for people with bad credit and offers convenient links to each offer's online application. Their stated goal is to make borrowing quick and hassle free for people.

ReallyBadCreditOffers.com spokesman Ariel Pryor said, “When people need money in an emergency, it is still important to get the best rate that is available. The entire world of credit was changed with the events of late 2008 and early 2009. There are now millions of Americans that have had their credit affected by a negative credit scores and now they searching for the right way to prove their creditworthiness.” Mr. Pryor added, “They should not be excessively punished for events that were beyond their control.”

Interest rates can vary depending on the applicants credit history and borrowers are connected with the lenders most suited to their needs.

The site also features comparisons for home loans, credit cards, debt consolidation and credit repair services for people with bad credit.

“We make it our priority to be the best one-stop consumer resource for all solutions to bad credit.” Ariel Pryor said. “The American consumer has been under pressure for far too long, and we want those that want a second chance at access to hassle free financial support to have the best opportunity possible.”

About ReallyBadCreditOffers.com

ReallyBadCreditOffers.com has been the leading industry source of accurate information for consumers with bad credit. The site has informed millions of visitors since it was originated in 2005. The staff scours the financial marketplace and brings the latest information on bad credit, credit cards, loans, and resources of financing for those with a negative credit history.

Contact:

Ariel Pryor, Financial Expert

http://www.reallybadcreditoffers.com

(520) 344-2001

Be the first to comment - What do you think?  Posted by admin - June 27, 2017 at 8:58 pm

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Peer-to-Peer Lending for Bad Credit An inadequate credit history ranking is a deterrent to getting lendings at a practical price of rate of interest. Safe fundings needed a security that a lot of customers did not have, while unsafe financings were paid out on the basis of the credit history merit of the customer. With negative debt no much longer being a deterrent to getting tiny car loans, customers began gathering to the loan providers (P2P) for the exact same. A bad debt ranking is a deterrent to getting fundings at a practical price of passion. Therefore, house equity car loans and also house equity lines of credit scores were no much longer practical. Safe finances called for a security that a lot of customers did not have, while unsafe financings were paid out on the basis of the credit history value of the customer. With negative credit report no much longer being a deterrent to getting little financings, customers began gathering to the loan providers (P2P) for the very same. The loaning solutions make cash by imposing a cost, on the debtors as well as the loan providers, for servicing the lending.

Be the first to comment - What do you think?  Posted by - June 22, 2017 at 2:04 pm

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Credit Score Scale Chart

Check your VantageScore too

VantageScore was launched by the three prime credit bureaus as a competitive alternative to FICO and it’s fast gaining acceptance among financial institutions. Ergo, now you need to check your VantageScore as well, along with your FICO score.Let’s face it, most Americans live on credit. Naturally, they often resort to taking loans at lower interest rates, to reduce their financial burden. This is exactly when credit scores, credit history, and related reports come into play. No loan application is approved before a detailed analysis of the applicant’s creditworthiness, which is quantified through credit scores and reports. So, what are good credit scores and when do you say you have a doomed credit report? Why are lenders so obsessed with this score? Let us find out answers to all these questions in the following lines. We introduce you to VantageScore and FICO credit scores, their scales, and determinant factors, as well as charts that will provide you with an indication of how your personal score will be perceived by lenders.

Credit Score Granting Bureaus

Technically speaking, the credit score is a statistical technique of determining the probability of an individual repaying his debt within a specific period of time, by evaluating and analyzing his previous credit history. In simple words, it is a numerical expression of your creditworthiness. Credit scores are granted by three bureaus in the US namely, Experian, TransUnion, and Equifax. These scores are formulated on the basis of a software program developed by Fair Isaac Corporation (FICO), hence also termed as FICO scores. VantageScore has been jointly developed by these bureaus and uses a different type of algorithm.

The evaluation is based upon the credit data of an individual, available with the credit bureaus. It is possible that the three bureaus have different credit reports regarding the same individual. Hence, he actually has three different credit scores. Nonetheless, the variation in the score range is not significant enough to influence the financial fate of a person.

FICO Credit Score Scale Chart

The FICO scale ranges between 300 to 850, as a measure of an individual’s creditworthiness.

FICO Credit Score Rating
> 720 Excellent
680 to 719 Good
620 to 679 Average
580 – 619 Poor
500 – 579 Bad
< 500 Miserable

Credit Score Range Evaluation

As evident from the table above, excellent credit scores assure best prospects of getting a loan; that too at lower interests. Most money lenders will find it difficult to reject a loan applicant with a superior score. People with scores in the range of 720 to 850 will not have any difficulty getting loans at desired interest rates, provided other conditions are met.

Generally, any loan application with a credit score of 720 and above is treated in a similar fashion by the lenders. While a credit score beyond 800 is indeed splendid, it may not earn you extra points with the lenders. Your loan application will be reviewed in the same way as the one with a credit score of 720 or above.

Scores below 680 are considered risky and although there is no problem acquiring a loan, you may have to bear higher interest rates. People in the range of 580 to 619 may find it difficult to get loans and even if they do, the interest rates will be very high. People who have very poor scores should work upon credit repair before they can hope to get a loan sanctioned. In short, people with credit scores in the range, good to excellent, have no reason to worry, while those below, should look for ways to improve scores.

Determinants of a FICO Credit Score

Although, FICO has its own formula for evaluating the score, its variables are based upon certain factors. These factors and their corresponding weightages in deciding your score, are as follows:

  • Payment history (35%)
  • Outstanding current debts (30%)
  • Length of credit history (15%)
  • Types of credit accounts owned (10%)
  • New credit applications (10%)

VantageScore Rating Scale

As an alternative model to FICO’s rating, VantageScore has been developed through collaboration, between TransUnion, Equifax, and Experian. It is based on a different algorithm, that has been constantly evolving to offer the most accurate picture of your creditworthiness. The current version 3.0 of the algorithm has been recalibrated to provide a rating scale ranging from 300 to 850, it being a familiar numerical scale.

Most importantly, this score considers individuals who have a credit usage history of less than six months, for whom traditional evaluators like FICO do not provide a score. Some of the other few features of the score include the exclusion of negatively-impacting debt collection accounts, from the calculations, provided they are paid off, as well as credit relief for victims of natural disasters. Four of the top 5 mortgage lenders, 6 of the top 10 credit card issuers, 4 of the top 10 auto loan lenders, and 7 out of the top 10 financial institutions now accept VantageScore to verify an individual applicant’s creditworthiness. Here is a ratings chart that illuminates the perception of lenders about your VantageScore.

Credit Score Rating
721―850 Super Prime/Excellent
661―720 Prime/Good
601―660 Nonprime/Average
500―600 Subprime/Bad
300-499 Deep Subprime/Very Bad

The determinant factors in case of VantageScore are an individual’s bill payment history (the most important factor), type, and age of utilized credit, percentage of credit limit utilized, total debt, total available credit, and recent inquiries about credit, as well as related behavior.

Analyze your FICO as well as VantageScore before applying for loans as it will give you a fair idea about what you can expect from the lenders. Paying your bills on time and utilizing your credit lines intelligently, will see to it that your creditworthiness is positively reflected in the score.

Be the first to comment - What do you think?  Posted by - May 20, 2017 at 2:05 am

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Availability Of Car Insurance Quotes Without Personal Information On The Web

Getting vehicle insurance typically starts with examining quotes from numerous insurance providers. To obtain a precise estimate, many insurers request motorists to answer several questions that often involve address, automobile details and also driving record. Technical improvements make obtaining car insurance quotes without personal information becomes possible. This protects customers from revealing their own ssn or perhaps driver's license. This way of obtaining insurance quotes without personal information is very important specifically that it will make any sensitive details become much more sensitive when spread online.

Doing a comparison of quotes is a significant part of buying car coverage which can be performed accurately on the web. Nonetheless, to be always protected, insurance plan purchasers must be aware of possible fraudulent firms. This is the reason companies of any insurance quote without personal info came into business. If you complete a quote assessment on the web, it's often insignificant to show any sensitive data or perhaps give your own credit card number. In the event you meet a corporation that urges you to provide such details, you must avoid them. You won't be requested for any payment to acquire car insurance quotes without personal information. You must bear in mind; nevertheless, that it's just standard to be inquired about your credit history since this may have an impact on the quotes which you will get. Corporations which will request for a person's credit information should tell the individual that his own credit details would be viewed once they apply for coverage or when a plan will be renewed. Those details are viewed since there are insurance providers that look for a connection between the credit history of a person and his probability of obtaining a claim in the future. For this reason, people who have poor credit ratings will be provided with higher rates as insurers compensate for the higher possibility of the insurance holder to be involved in a car accident.

Typically, insurance companies understand that there are numerous people who prefer to obtain insurance coverage on the internet. While you could get insurance quotes without personal information on the web, when you have chosen an insurance plan and you'd like to make an application for it, the firm will ask you to offer your own driver's permit as well as ssn. This allows your insurer to verify your own personality and set up an accurate premium for yourself.

Be the first to comment - What do you think?  Posted by admin - April 9, 2017 at 10:41 am

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Student Loans: Bad Credit Can Be Overcome

If you are thinking that you would like to attend college but think you can’t because of a bad credit history, know that you are not alone. In our recessionary economy, millions of people are now finding it difficult to pay their monthly bills. There is a way to get student loans, bad credit notwithstanding. Even if you have a poor credit score, there are still lenders that major in student loans for bad credit borrowers. In fact, there are many companies that will aid you despite the condition of your credit history, allowing you to request a bad credit student loan.

Why You Probably Will Need A Student Loan

Nowadays, a college education is overwhelmingly expensive. Tuition costs at most universities run into tens of thousands of dollars each year, not including money for textbooks, individual course costs, or ordinary living expenses. To compensate, a number of institutions make huge amounts of money available for this type of funding. The problem is that some people cannot qualify.

Although there are numerous sources of scholastic funding available for students, more times than not the availability of funds is limited as a result of simple supply and demand. This requires some people apply for loans so that they can attend college or university.

Student Loans For People With Bad Credit

One of the ways that people can get funding for their college expenses is to take out a student loan. If your credit is weak, there is a way that you can get immediate approval by abiding by this rule: Lenders are looking for people that have first class credit ratings. If you can pin down someone to cosign the loan with you, your approval is almost always guaranteed.

This explains why private student loans for people with bad credit often seem more appropriate than applying for grants or scholarships for which you may not qualify. This virtually locks in your ability to go to a four year college.

However, you need to know about the advantages and disadvantages to taking out a bad credit student loan.

The lender knows at the outset that your credit precludes your getting a regular bank loan. Thus it’s possible that they won’t run a credit check on you. That could spare you a bit of discomfort and embarrassment when applying for college student loans for bad credit.

On the other hand, many lenders will insist that you put up some type of property as collateral against your loan. If you and your family have nothing to use as collateral, then you will need to seek out those lenders that do not require it.

Another thing that you need to be aware of is the cost of a bad credit student loan. With student loans, bad credit almost always means that your costs will be greater. While there may be very desirable interest rates offered to those students with a good credit score and clean credit history, you will not be eligible for them. In fact, since you are considered a poor credit risk, your interest rates may be quite high. The bigger the likelihood that you will default on your loan, the higher the rate of interest charged.

Also the amount will be compounded. This means that if you fail to repay your loan on time, the amount of interest you have due will be added to your principle, with interest and penalties charged on that.

So, while it is actually quite easy to obtain college student loans, bad credit or not, there is a price to be paid. Just make sure that if you do go ahead and borrow, don’t borrow more than what you unquestionably need, and make it a priority to pay it off on time.

Be the first to comment - What do you think?  Posted by admin - January 15, 2017 at 6:01 pm

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Financing Your Short Term Needs With Bad Credit Loans

Failure in meeting financial objectives compels people to look for alternate sources of money. People borrow money from family or friends but failure in repaying the loans can cause discomfort in the relations. People fail to acknowledge the foremost alternate of money; loans. In some cases people overlook this option because they are not aware as to how the loans work or they are doubtful of getting loans on their unimpressive credit scores. With changing scenarios, availing loans is a simple and convenient process.

While acquiring funds, there are criteria that need to keep in mind. One such criterion is having good credit history but many brokers are breaking this norm and now providing short term loans for your bad credit situations to help you cope with the ever rising prices of commodities. The loans will help the borrowers to meet their daily expenses and other expenses.

Working of Short Term Loans

The loan is provided by the regulated broker in accordance to your requirements. The loans are provided through a simple process of filling a form mentioning the details of the requirement of funds. The brokers, after assessing the application thoroughly, search for a lender willing to provide loans on your bad credit ratings. The lender provides you the loan offers to meet all your requirements.

It is advisable, to discuss all the loan offers with the broker and he will suggest you the type of loan that suits your needs. You must be clear of the type of loan that you are availing. Also, discuss all the terms associated with the loan. Before, co-signing the documents make sure you know the repayment schedule clearly. If you are in doubt, your broker will simplify them for you.

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