Written on 2:29 PM by zorayda
Credit runs into our lives and has effect on almost every decision we make. Bad credit runs in our credit application and has effects on every loan we borrow. A recent survey has shown that one fifth of the adult population cannot qualify for regular loans. For such a huge loan borrowing population there are specific loan programmes called bad credit loans.
With loans for bad credit you can borrow loan amounts of the likes of £5000-£75,000. Repayment term will vary from 5-25 years. Both secured and unsecured options are available for bad credit loans. Unsecured poor credit loans will require no collateral and will suit if you want to borrow smaller amounts. For larger amounts secured bad credit loans are appropriate and would require collateral like home, real estate or car etc.
Start with your credit report and credit score - that will give you a clear idea about how ‘bad’ your bad credit is. Credit score has statistical information which can be used by loan lenders to assess the risk accompanied while lending you money. Different credit score structures are used by loan lenders – however the most common is fico credit score. Fico score ranges from 300-900. Anything below 620 will mean you have bad credit score and will qualify for such loans only.
Bankruptcy, arrears, late payments, CCJs, defaults, foreclosure and any court case are seen as bad credit cases. None of these things on your credit report can prevent you from having loans with bad credit, unless you have pretty bad credit condition like multiple bankruptcies. In worst case scenario there will fewer lender ready to take this sort of risk.
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Written on 10:18 AM by zorayda
Getting a credit card with bad credit isn’t an impossible task, but you’re not going to get the best credit offers in the world. Still, it’s a line of credit that you can use to build up your credit score and get you out of bad credit hell.
Step1. Have an open checking account in good standing. If you have a negative balance at your bank there’s a very good chance that you will be denied for credit - even for a
secured credit card!
Step2. Make sure you pay your bills on time.
If your electric or cable utilities are always being turned off, you will want to get your finances in order before you apply for a
poor credit card.
Step3. Repossessions are bad.
If your car was repossessed, see if you can get the car back by making a payment.
Step4. Make sure you have no loans currently in default.
Talk to your lender and see if there is some kind of payment play you could work out that would better fit your finances. Just note that if you do manage to work out a new payment structure then you should be aware that the life of the loan may be extended for several years: my particular loan went from a 2 year repayment period to a 15 year period.
Step5. Do not have any accounts in collections.
Sometimes it happens: we slip so far that in order for a
bad credit card company to make a profit, they have to sell your account to a collections agency. Before you apply for any credit card make sure you are not in collections.
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Written on 2:00 PM by zorayda
A
secured credit card is just that; a credit card secured by a deposit account held by the cardholder. The card holder may then deposit anywhere between 100-200 percent of the amount of credit as he may desire. But sometimes the credit card issuers may reduce that to only 10 percent. From the issuer standpoint, the
secured credit card is better as there are fewer delinquencies when the cardholder suspects he may lose something by not paying.
From the cardholder's standpoint, a secured credit card can serve the purpose of building your FICO scores. For these types of cards, everyone is invited.
For the sake of prudence, it has to be said that secured credit cards make the better choice. Since you cannot spend beyond the amount secured, it is unlikely that you will bury yourself in debt. That way you can start building a good credit history, but make sure that the credit card issuer reports your record to the credit bureaus.
The credit card holder in this case is expected to make regular payments to meet the amounts charged on the card. The deposit will only be used if the account is closed either at the customers request or after excessive delinquency. So there is no question of you forfeiting your deposit in the event of just one or two defaults. Also, the annual fees for many secured credit card in the market tend to be reasonable, unlike some available credit cards. The fees may be as low as $30 whereas for other cards, the fees could go up as high as $50.
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Written on 3:48 PM by zorayda
People with bad credit can still obtain home loans, auto loans and personal loans. Having bad credit doesn't mean that the consumer can't obtain credit, it just means the terms won't be as favorable and it may take a little more searching to find the best deal. Bad credit ratings can result for several reasons; bankruptcy, too many credit cards with missed or late payments, defaults on loans, etc. Whatever, the reason bad credit loans may still be available.
Acquiring a bad credit loan, may be the first stride to rebuilding your credit. Many people with credit evils find that a bad credit loan can help them get back on their feet and find the way to special fiscal liberty once again. A bad credit personal loan can be worn to help get your life back on track, get rid of calls from creditors and even avoid bankruptcy.
The bad credit personal loans may be used for other situations and not necessarily debts, so it could be used for an emergency expense that has arisen like medical fees not covered by insurance or a wedding for example. It is not uncommon for a person to arrange a loan just so they can repair their damaged credit history. They may not require the money for any specific situation.
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