Credit

Credit card debt at a scary level – Things card companies won’t let you know

Credit card debt

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Recent reports suggest that American consumers have recently hit an indeed scary milestone. As per reports released by the Federal Reserve, they have the highest outstanding debt, mostly in the form of credit card debt as ever seen in the history of America. In the month of June, 2017, Americans owed $1.022 trillion in revolving debt and this figure even beats the record set in 2008 April when consumers owed a collective amount of $1.02 trillion in revolving credit. This record serves as a warning signal for Americans to focus on credit card debt. Even when you feel the debt is manageable; know that there could be a sudden emergency which can keep you away from real mess.

So, what are the few things that the credit card companies don’t let you know so that you fall deeper into the vicious cycle of debt? If you don’t want to deceive yourself and fall prey to few emergencies, you should know the different things that the credit card companies don’t want you to know. Here are few points that you should know.

#1: There’s no such government law which sets an APR

While your credit card can have a maximum interest rate which is mentioned in the place of ‘terms and conditions’, there isn’t any legal cap actually. There are various states which have usury laws which regulate the loan interest rates but they are only applicable to the banks within the state. This is why the biggest credit card companies are imbibed in North Dakota, Delaware, which are the 2 places where there aren’t any usury laws.

#2: Fixed interest rates aren’t always fixed

Even if you make timely payments, the fixed interest on the credit card can be increased any time when the company feels like doing it. The card issuers only require giving a 15 days notice about the change of rate. Hence you should always go through any correspondence from a credit card company if you want to avoid any harmful surprise.

#3: Being late on 1 card could raise the APR on all cards

If you could just end up in 1 late payment, you could incur a penalty rate on all your cards, even though you may have been timely while paying the balances on the other cards. So you should monitor all your accounts and remember the due dates of each of the cards so that you don’t make a single late payment. You will most likely be stuck with the high APR for few more months, but as per the CARD Act, issuers of credit card should reconsider the penalty of a cardholder post 6 months.

#4: Paying off your balance early hurts your credit, is a myth

This is one of the most famous myths and if you maintain a balance on your card, this wouldn’t even improve your credit score. In fact, if the balance is pretty high, this could actually hurt your score. Your first priority should be paying on time and then you should focus on interest payments, late payments and damage to credit.

Therefore, if you’re wondering about the different ways in which you can stay out of debt, first know about the things that the credit card company doesn’t want to let you know. Just make sure you take steps accordingly.

 


The Credit Crunch: Simple Solutions To Your Credit Woes

Credit, it can be so useful. Especially in an emergency, but it can also be such a hard thing to manage and keep in check. Not keeping it in check though, can result in some crunch situations that are going to cause you serious problems in life. So to help you deal with these, read on for some advice.

Pay some of what is owed

One serious crunch situation that is pretty common with credit is not being able to make every payment that you owe. This could be because you have had unexpected bills crop up, or that you had overstretched your finances, or that you have been laid off work. If the latter is the case check out forbes.com for some wider helpful advice.

If you do find yourself in this situation, the best recourse is to contact the credit provider as soon as possible. This is particularly important because if you don’t the payment will be marked as missed and this will negatively affect your credit score.

The aim of contacting them is to negotiate a manageable payment for that month. Something you can get some tips on at hbr.org. Ensuring that the credit provider stays happy, and you are not wiping out all of your resources. Of course, it will depend on the individual provider as to whether they will agree to this, but you will only find this out by contacting them. So get on that phone!

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Error on report

Another crunch issue that people with a credit account often find themselves in is that there is an error on their report. This is where the company has not recorded a payment being made, or the amount is wrong.

This can be very problematic because it ends up making you look like you are not holding up your end of the bargain, when in fact you are. Meaning your credit score will be negatively affected through no fault of your own. To help you resolve this, it’s worth contacting companies like repair.credit to see if they can recommend a provider that can help you get your credits score to where it should be. Something that is vital for any future purchases you want to make.

Debt consolidation

Lastly, many people that take out credit find themselves in a position where they just can’t make any of the payments they owe. This is more serious than missing a few payments as mentioned above because it will be recorded as continual default on the debt. Something that can have a massive impact on your credit rating and ability to get finance for essential life items like vehicles and homes.

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So, if you find yourself in this tight spot, then it may be useful to look into debt consolidation. This is where you hand your debt over to a company, then they pay it off. While you pay them one single amount. This is particularly useful if you have multiple accounts and cards that need settling. As well as, if your payments are too high to make and live comfortably on what remains.

So if you find yourself in your own personal credit crunch, don’t panic. Just review the options above and pick the one that is best suited for the situation that you find yourself in.

 


Family Money Woes Of The 21st Century

make our lives easie

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You would have thought that now we are well and truly in the 21st Century, life would be a whole lot easier, right? After all, there have been so many tech advances that make our lives easier and bring us closer to each other, most everyday problems are now not as big as what they once were. However, that’s not the case with money, especially for families. Tech hasn’t solved some problems and has even brought along some new ones.

So, which financial problems and woes are the big concerns for families in the 21st Century? Here are a few of the main ones and what you can do to ease them for you and your family!

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A Shrinking Income

Sometimes, we experience money problems that are a result of factors outside our control. One of these that quite a few families face right now is a shrinking income. Since the economy crashed way back in 2007, markets have slowly picked up. However, some industries still aren’t doing quite as well as they should be and inflation is still quite low. And that has a direct effect on wages. Over the past decade, wages have been rising – but only extremely slowly. Some industries and sectors, especially the public sector, have even had their wages frozen. That means workers have not had a pay rise, and therefore their wages are no longer in line with inflation. If you are a family that has been hit hard by these low wages, you are probably wondering what you can do. Firstly, you might want to see if you can find a second income; something you can do alongside your regular job. For instance, many people now turn to blogging as a regular income. Secondly, it’s worth asking for a pay rise. After all, if you don’t ask, you don’t get! If that doesn’t work, you might find that it is worth switching jobs and moving to a better-established company that pays a fairer wage.

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Increased Family Expenses

Unfortunately, everyday expenses and outgoings haven’t behaved in the same way as wages over the past ten years. They have been affected in the complete opposite way and have slowly been growing! Because of this, lots of families now complain that they feel a pinch in their budget. They don’t have as much money to spend on things like the groceries, car repairs, and energy bills. But these are things that they can’t live without. So, how do people manage to get by? More and more families are resorting to taking out loans to ensure they can survive until payday. If you feel you need to get some extra cash in this way to cover yourself, there are some safer options. For example, it’s not a good idea to take out a payday loan as they often come with very high interest. However, you’ll be fine taking out a specialist loan, such as affordable title loans to help cover car expenses. Just make sure you are totally able to repay this money once repayments start. Otherwise, you could end up in some bother!

No Investment

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No Investments

If you do have some money left over at the end of the month, you will no doubt want to put it to one side for a rainy day. However, it’s no good just leaving it in your savings account. Interest rates haven’t been too high over the past few years, and the interest on the majority of bank accounts isn’t enough to help your money beat inflation. If you want to make sure your money grows at a steady rate and beats inflation you need to place it in investments. There are various things you can invest in, from property and stocks and shares to gold and funds. These often make much higher returns than money that is just left in bank accounts. Even high-interest saving accounts are no match to other investments! However, you need to be aware that some investments are a lot riskier than others and every single investment comes with the possibility that you might lose some money. For instance, stocks, shares, and funds will go up and down over time depending on how the economy is doing. But, if you leave your money in for long enough, it should increase. So, you just need to be aware that investing isn’t completely risk-free. But to get the biggest returns, you can’t play it safe with money!

Hopefully, this blog post has given you all the info you need to end these 21st Century money woes!


7 Common Credit Rating Myths Debunked

Having a good credit score is one of the most valuable things you can have. It can help you to secure financial assistance and save you thousands of pounds on the cost of credit in the process. On the other hand, if you have a bad credit rating, it can really limit your ability to borrow altogether. This is the simple truth regarding credit scores, but hidden in the middle is a wealth of speculation and untruths. There are countless myths that are bandied about, and below we reveal more about the hearsay that you definitely shouldn’t be listening to.

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You can hide outstanding debt by moving credit card balances around – A lot of people try to mask their debt by simply moving their balances around, so it looks like they are making regular payments. At the end of the day, the full total is going to appear on your credit score, so this really won’t make any difference. You can’t hide your debt, but you can pay it off. Here are some simple changes you can make to dig yourself out of debt.

People with more money have better credit scores – How much money you have does not impact your credit score. It is all about keeping up to date with payments. If someone rich misses payments on their account, their score will be negatively impacted too.

You should have as many credit cards as possible – There is a common assumption that the more credit cards you have, the better, as you can show you are good at paying back debts. This isn’t wise, as you are simply putting too much pressure on yourself by having too many financial commitments. There is no definitive number of accounts that will lead to the perfect credit score; you simply need to show that you can keep up with all payments and manage your credit well.

A poor credit score is stuck with you for life – It does not matter how bad your credit rating is, you can improve it. There are numerous ways to do so, including joining the electoral role, taking out a credit card for bad credit, and keeping your address information up to date. You should also check out USL4U guaranteed loans for bad credit – by making regular payments on time, your score will improve.

Your education will impact your credit score – This is simply not true. Education has no bearing on your credit rating, and it is not part of the report. Also, a creditor’s scoring system cannot use religion, national origin, marital status, gender or race under the Equal Credit Opportunity Act.

Old debts don’t matter – In fact, old credit agreements will stay on file for approximately six years, so they do matter. If you genuinely did not realise you had an old debt, you do have the option to request to put a ‘notice of correction’ on your file, i.e. you can explain the circumstances surrounding the mark.

There is a credit blacklist – Lastly, perhaps the biggest myth of them all! There is no credit backlist. Lenders use an array of information to make their decision, combining any details you supply on your application form with data from credit reference agencies.


Simple Ways To Build Up Your Credit

It’s true that bad credit can be harmful to your finances. After all, if suppliers see on your record that you have bad credit, it’s unlikely you will be able to apply for loans. And it can harm your chances of getting a mortgage in the future. But there is also another credit which isn’t so good, and that is no credit. If you haven’t paid for many bills via direct debit before, or haven’t had a credit card, you might have no credit behind you. And then you will also struggle to take out loans and mortgages in the future. However, there are some ways you can get a good credit rating. In fact, here are some simple ways to build up your credit.

Get a credit card

It’s a good idea to get a credit card if you want to build up your credit score. After all, if you make a few purchases on the card, and pay them back timely, it can help you to earn some good credit. Of course, it’s best to make sure you get a card which has a good interest rate. After all, you don’t want something which will accumulate interest almost straight away. In fact, you ought to get a credit card via your bank. That way, you know it’s a reliable credit card which won’t get you into debt. And as you already have accounts with them, you should be able to log on and manage your current and credit accounts at the same time. Just make sure you only stick to one credit card for the sake of your finances.

Your Credit

Build Up Your Credit

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Find a no credit loan  

It can be hard to build up credit when you keep getting rejected for loans as you have no credit. But there are some loans out there which you will be accepted for with no or bad credit. In fact, you can get ones like a no credit car loan which will ensure you build up credit as you pay off your vehicle. Of course, you can expect a significant interest rate with one of these loans. But even if you take it out for a year or two, it will soon build up your credit if you pay it on time every month. And then you will be able to take out more loans in the future due to your good credit!

Get a loan out with a partner or a friend

You might struggle to build up credit on your own as you will keep getting rejected due to you’re no credit rating. But if you join up with a trustworthy partner or a friend, you could soon be accepted. And then you can earn good credit at the same time as them. It might be a simple phone bill that you take out together. Or you can get them to add you to the household bills. And then you will soon be building up credit so you can get loans out on your own in the future! Just make sure you trust them, so you don’t end up regretting the decision.

And remember to pay bills on time. Every time you do, you are taking steps towards a great credit score!


Escaping The Trap Of Bad Credit

We hear a lot of talk about credit scores these days. Having a bad one can cause you some real problems, and it isn’t that difficult for your score to go down. It might not necessarily be your fault if your credit score is low. Perhaps you ended up in some financial trouble and struggled to make loan repayments. It doesn’t take that many missed payments to make your credit score plummet. The majority of borrowing options are based on your credit score so you will have trouble taking out a loan or a credit card, but that doesn’t mean that there’s nothing that you can do. There are alternative borrowing options, and ways to increase your credit score. If you are stuck in the trap of bad credit, here are a few ways that you can get out of it.
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Is My Credit Score Bad?

Most people aren’t aware of exactly what their credit score is. It isn’t something that appears on standard bank statements, so you’ll need to find it out for yourself. Some loan or credit card statements may have your credit score on them, but not all of them will. There are plenty of online services out there that can tell you your credit score for free. However, these free scores are not always the same as the score that a lender would base their decision on. They are usually fairly accurate, but if you want an exact score, then you might need to pay for one. Another common issue, particularly amongst young people, is not having a credit score at all. If you have never borrowed before, then your score will be zero. Some banks will be reluctant to lend to somebody that has no proven record of making loan repayments on time.

Can I Still Borrow?

Borrowing when you have a bad credit score is difficult, but it isn’t impossible. If you can, you should always try to increase your score, but you don’t always have the time. In certain circumstances, you might need to borrow some money in a hurry. A broken down car, unexpected home repairs, or some other emergency, won’t leave you with enough time to increase your score enough to get a traditional loan. Instead, you will need to look at alternative borrowing options. Some of you will be lucky enough to have family or friends that can lend you some money, but if not, then look into unsecured personal loans. You can still get good rates for an unsecured personal loan with bad credit. This is a good option if you need a bit of extra cash in a hurry, and paying it back on time will also increase your score.

How Do I Increase My Score?

There are companies advertising a credit repair service, but the truth is, you don’t need them. They won’t be able to do anything that you can’t do for yourself, so using them is just a waste of money. The first thing to do is to get a credit report and go over it thoroughly. It isn’t unheard of for companies to make mistakes on the report. There may be accounts that aren’t yours, or payments that have been mistakenly reported as being late. Any errors can be disputed, and if you can prove yourself, they will be wiped from the report, and your credit score will go up. The next step is to pay off any outstanding accounts that you may have. Once you have paid everything that you owe, your score will improve again. Finally, you should try borrowing small amounts and repay them immediately. Find a credit card that you are eligible for and make small purchases, for example, the weekly grocery shop, and then pay it off straight away. That way you can prove that you are trustworthy and bring your score up.

 


Alleviate your energy costs even when the mercury is climbing high

As we know that our most dreaded season is arriving and the mercury has already started climbing high as we bid goodbye to winter. Since the clichés are always out with the coming of summer, there’s a sharp rise in the water and electricity bills. People are generally all drowning in some kind of debt, whether credit card debt or personal loan debt, home loan debt, auto loan debt or student loan debt. Amidst the financial crunch that they’re already going through, it is tough for them to manage payments if their utility bills go up. Hence, if you’re feeling obsessed about maintaining low electricity and water bills without having to switch off your AC and give up your sprinkler, here are few tips that you need to know.

#1: Check the thermostat of the hot water heater

Get your water heater and keep the thermostat to 120 degrees, which is a statewide initiative that has been developed to boost electric energy efficiency and conservation. As the water heaters are manufactured, they have the default setting of 140 degrees Fahrenheit but it has been stated by the Department of Energy that 120 degrees is sufficient for all kinds of water heating requirements which you need throughout the year.

#2: Locate leaks and fix them immediately

Another good idea to check out is to repair leaking faucets, pipes, toilets and also a leaking roof. Apart from eyeballing your sink, one of the best and surefire ways of watching out for leaks is to check your water meter both before and after a 2-hour period when there’s no water being used in your home. If you find the meter changing, you would know that there’s a leak somewhere. Start finding out and repair your leaks.

#3: Use something smaller than the oven to cook

Do you have a stove at home? If answered yes, you must have bought it for some specific reason. You should be aware of the fact that every time you use an electric skillet, toaster oven, slow cooker or a microwave, you will definitely consume less energy and this will in turn help you save on utility bills.

#4: Turn off ceiling fans when you’re not at home

This is applicable only when you’re not at home. Don’t think that ceiling fans cool your home as what they do is to circulate air in order to make the rooms feel cooler. So, whenever you’re at home, switch on your fans but when you’re not inside, make sure the blades are not spinning as this unnecessarily adds on to the electricity bill.

#5: Check the temperature of your freezer and refrigerator

Remember that the ideal temperature of the refrigerator is 37 and 40 degrees and the ideal freezer should read 5 degrees. If there’s anything colder than that, know that you’re wasting money. Keep it at the right temperature so as to make it function properly.

When the entire world is contributing their bit to save the environment and adopt the ‘green’ approach, why would you be left behind to reduce your carbon imprint on the society?

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Credit Scores: What Hurts Them?

Have you ever tried to get something on credit but got “declined” for it? If so, it probably meant that you had a low credit score. In a nutshell, credit scores are what companies use to decide whether someone has a low enough risk to offer finance. Scores get calculated on numerous factors, primarily a person’s past credit history.

Each company that offers credit has different ways to “score” a person’s credit. Almost all lenders will consult credit reporting agencies to get a person’s credit history. Using that information alongside their own lending criteria is ultimately how a business decides whether someone is credit-worthy (to them) or not.

As you may have guessed, your past credit history will have a significant impact on your likelihood to get finance or borrow money in the future. Have you ever wondered what could affect your credit score in a negative way? The following gives you an insight into some of the things that have the biggest impact:

Image Obtained From Flickr Cafe Credit via Flickr, under the Creative Commons License

Late payments

Let’s face it; almost all of us are guilty of paying something late such as a credit card repayment. Such information gets recorded on a person’s credit history and can stay there for as long as seven years, believe it or not!

How long you were late on your payments, and how often, will determine how much damage gets done to your credit score. For example, let’s say that you’ve missed a payment by a couple of days. That will seldom have a noticeable impact on your rating. However, if you’ve got several late payment markers where you’ve not made a payment for at least 30 days can be damaging.

Whenever you take out credit cards, loans, or finance, it’s crucial you make your payments on time. If the repayment date is inconvenient for you, many lenders will allow you to alter your repayment date.

No payments

Have you decided that you don’t want to pay your debts back? If so, you’ve virtually guaranteed a catastrophic credit score for the next few years! Even if you decide to pay your bills again, the damage will have already been done if you’ve not paid anything for several months.

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Of course, you might wish to file for bankruptcy. However, that’s never a guarantee that you won’t have to pay anything back to your creditors! In short, it makes financial sense to take the no-stress option of just paying your bills when you’re meant to!

Bankruptcy

The thing about bankruptcy is that it’s a last-resort option. You should only consider it when other alternatives such as consumer credit counseling aren’t viable options. When you become bankrupt, no mainstream lender will find you creditworthy for several years.

You might come across lenders that specialize in high-risk individuals if you wanted credit in the future. But, they’ll charge you sky-high interest rates and history could end up repeating itself.

Losing your home

Failing to keep up with your mortgage payments? If so, your lender may have no choice but to foreclose on your property. As you can appreciate, such an action is rather devastating, and banks try to avoid doing that if they can. However, they also have a business to run, and they can’t just give away money!

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As a result, if you can’t work things out with your mortgage provider, they might have to foreclose your home. There will also be a record of that on your credit history, making it almost impossible to get another mortgage for the foreseeable future.

Maxing out your credit cards

Are you taking “buy now, pay later” to the extreme? If all your credit cards are at the limit, you aren’t an attractive prospect to most creditors. That’s also true if you only make the minimum repayment amount on your cards each month!

Things get even worse if your interest charges take you over your limit (it does happen)! These days, credit cards are straightforward to get, and it’s often hard to resist using them. It can be harder to pay them back, especially if you’re broke.

Having only one loan or credit card

As strange as it sounds, only having one loan or credit card can have a negative impact on your credit score. Why is that, you might be wondering? The reality of the situation is creditors want to see what you’re like paying back several forms of debt. Having only one source of credit doesn’t give companies much to go on when determining your creditworthiness.

How to improve your credit score

There are lots of articles and guides online that describe how you can improve your chances of getting accepted for a loan or credit card. In fact, there’s a few here on this very blog! For the purposes of this post, I’ll outline a few of the most common ways to improve your credit conundrum:

  1. Check your credit score

Do you actually know what state your credit score is at these days? If the answer’s no, it’s time to do some research. Look at what creditors see by obtaining your credit profile. That way, you can judge what is likely to be causing you problems. Plus, you may even spot mistakes that could be hampering your score.

  1. Get help from a credit repair company

Sure, there are some things you can do yourself to improve your credit score. But, there will be times where you need help from some industry professionals. Take a look at these reviews from CreditRepairCompanies and choose a provider that is best placed to handle your particular credit score situation.

  1. Pay off your debts quicker

Credit cards can often take longer to pay off because of compounded interest getting applied to your accounts each month.

Make a concerted effort to pay off your cards quicker. Even just an extra $10 a month per card on your repayments can make the world of difference!

  1. Don’t borrow any more money

If you want to buy something expensive, the best thing is to be patient and save the cash for it instead.

Further borrowing will only worsen your credit score and potentially leave you short of available money each month.

  1. Earn more money

Even if you don’t have much credit, many companies will be reluctant to lend to you if you’re not earning a good salary.

The answer to solving that problem is simple: get a better paying job! Alternatively, get a second job to do in your spare. Once you can prove that you’ve got more money coming in than going out, you’ll have an improved credit score.

Thank you for reading today’s blog post!


Clever Tools To Help You In The Fight Against Bad Debt

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Bad debts can be incredibly harmful and impact your life in a multitude of different ways. You will find borrowing money becomes impossible, or, at the very least, extremely expensive. It will be tough to get simple things like a smartphone contract, and you might even struggle to pass a landlord’s credit check if you need to rent a house.

And more employers than ever before are starting to use credit checks in the hiring process – so your bad debts might even restrict your ability to work.

As you can see, bad debts can literally ruin your life – so you need to work fast – and hard – to make things right. With this in mind, here are few excellent tools that can help you get your finances back on track.

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Credit reference agencies

Credit reference companies such as Experian and Equifax hold a lot of information about your financial history, and lenders, retailers, landlords and even utility companies will often use them before offering you credit. And, if you have bad debts, it will impact your score – meaning you may not be able to borrow money, get a mortgage, or rent a property. So, you have to make sure that you know your current position by signing up to one of the services and checking your credit report. Highlight all debts that are causing you problems and ensure that you target these first when you start thinking about repayments.

Online money managers

There are plenty of money management tools out there which can help you organise your finances – which is critical if you want to tackle your debts. Services such as 7 Days, 7 Ways and YNAB will help you track every penny you are spending and work out what you owe, where your spending priorities should be and offer advice on boosting your income.

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PPI checkers

If you have ever owned a credit card in the past decade or so, there is a good chance that you will have been charged payment protection insurance – or PPI. Plenty of people have been mis-sold PPI, and in many cases, you can claim it back from the banks. So, find out how a PPI refund is calculated, and do some quick maths to get an estimate of what you are owed. Apply for compensation if you have believe you have been mis-sold, and if you receive a lump sum, you can put that towards your debts. Bear in mind that if you have credit card debt, there is a good chance that PPI payments will make up a substantial proportion of that debt – so your compensation might reduce your overall debt by a significant amount.

Bill Alert tools

When you need to pay off a lot of bills, tracking when they are due can get complicated. However, it’s something you must do if you want to keep lenders happy and improve your credit score. The good news is that tools such as Finovera and many others can help make it easier for you to deal with your bills from one place. So, when due dates come, you get an alert sent to you so that you can avoid all the associated charges that accompany missing payments.

Any more tools to add? Let us know about them in the comments section below.

 


How to Go about Home Equity Loan without a Credit Check

When you have bad credit, it’s often quite difficult for you to secure your home equity loan. You must consider the potential risks associated with such loans whenever you come across ads depicting a “no credit check”. Whenever you lose your house it’s certainly a more helpless situation than when you default on your credit card.

The mortgage debt on your property gets increased once you have any home equity loan. In that case, you’ll be obliged to repay the loan amount as scheduled. Unlocking the home equity is often quite expensive, but you must understand that such types of lending aren’t predatory. You won’t need to make any mandatory payments towards a reverse mortgage every month. Your loan balance gets increased by your reverse mortgage fees and interest. If you come across any financial hardship in between or if you experience a fall in income, the entire situation might worsen and make things difficult for you. You’ll find it tough to keep up with your payments once you turn vulnerable.

Once the payments begin drying up, borrowers tend to lose their properties. That’s why it’s more important for you to catch up on your state foreclosure laws. Both mortgages are likely to experience a default when the online lenders advance money towards updating the primary loan. This situation even exposes the borrower towards extra repayments.

In the end, the real estate values turn more fluid and history projects such period when your total credit and mortgage loan amount due get exceeded by the amount you owe on your house.

How to Find a Suitable Home Equity Loan

Initially, a majority of borrowers get in touch with their current lenders or bankers while checking out options to apply for loans. Online lenders may provide you with a few effective options for finding home equity loans even when you have bad credit. Some of them would even allow you to perform a comparative quote search. Bad credit loans are handled only by a few lenders. Depending on your chosen institution, the fees and interest rates may vary. Being a homeowner, you may examine these fees and rates by sending several quote requests. Only those who have a good credit rating are eligible to obtain the best rates. Haggling is not something that a borrower should be afraid of. As per the FTC guidelines, borrowers showing a poor credit are even eligible for negotiating with lenders and
comparing quotes. By availing several quotes simultaneously, a borrower is able to pick his favorite lenders. It becomes easier for a borrower to identify online lenders that are willing to work in his favor.

The influence of poor credit on the financial situation has already been experienced by individuals seeking home equity loans with a bad credit score. Many aspects of their personal and professional lives may get disturbed by it. Chances are there that the amount that they wish to borrow may even be restricted. High rates of interest are often applicable on such loans.

Besides being exposed to the risk of your property value, you may experience a narrow cushion of home equity whenever you get your new mortgage.

Much of the confusion caused during the closing time can be evaded when you negotiate with lenders, shop for quotes and identify the right way to handle debt. It even makes it easier for you to repay your loan amount in the long run.

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