Bad Credit Refinance

Refinance/Bad Credit

If you have bad credit, you probably realize the worst by-product of it all is that you can’t get a low interest rate when you want to refinance or apply for a mortgage. Refinancing when the rates are low is an ideal way to lower your payments on your mortgage. However, that can be difficult to do when your questionable credit history throws a wrench into the works.

There are a few steps you must take that are essential to the process before you sign on the dotted line.

1.  Check your Credit Score

Your credit score(s) determine whether or not you will qualify for refinancing and what type of interest rate you will get.  Usually, the higher the credit score (http://www.wisegeek.com/what-is-a-good-credit-score.htm) the lower your rate will be.

2.  Check your Home Equity

Lenders usually want you to have at least 20% equity in order toBad Credit Refinance refinance.  Lenders typically will only finance 80% of the value of the home in a refinance.

3.  Shop Rates

You may not find a lot of difference in rates due to recent laws in the banking industry but it always makes good sense to research all of your options on rates and term lengths.

4.  Cost of Closing

There are other costs associated with a loan.  Some of the more common major cost and fees are; Loan Origination Fees, Application Fees, Appraisal Fees, Points, Lender Home Inspection Fees, and Private Mortgage Insurance.  The fees can vary from lender to lender, so it is a very good idea to understand what your closing costs may be and to make sure that the refinancing savings outweighs the cost.

5.  Gather Important Documents

You may be surprised at the scrutiny lenders apply to potential borrowers.  Some of the information you will need is documentation about your current loan, income tax returns, savings and investment information.  You also will need to prove employment and current income.

Get a Loan with Bad Credit – There is No Reason for You to Give Up Yet

Did you know that even though you may have bad credit, you can still get approved a lone? It’s true. And if this is true, then what’s the big deal about credit anyway, and why are scores so important?

Credit low-down

It always seems like people are talking about the importance of credit, especially in advertising. You can get this really great truck for an incredible monthly rate on approved credit (OAC), or you can get this really cool credit card with a bunch of nifty features, if you qualify. Ig you can still get a loan with bad credit – then what’s all the hype?

Here is how it all breaks down. Anyone can get credit, really, but bad credit or no credit makes you a lending risk and some lenders won’t lend you anything until your credit improves or becomes established. Great credit scores get the best deals. If you want a great interest rate on that new truck to make those monthly payments ultra-low, you need great credit – and, you guessed it – that nifty credit card is out of bounds if your credit is in the toilet.

So, at the end of it all, it boils down to the options available and what you pay for them. Good credit?

More options, at better prices. Bad credit? Only a few options, and way more expensive.

But…

That being said, not everyone is in a position to establish credit, or repair their ailing credit. Credit repair can take time and patience, and sometimes your needs are too urgent. If you find yourself in a paradox, such as, you can’t get a job because you don’t have a vehicle and you can’t get a vehicle because of your poor credit, but you can’t repair your credit until you get a job – well then that vehicle becomes pretty darn important.

In situations like this, opting for a bad credit loan may be the only option you have until you are employed and can begin resuscitating your credit score. What’s important to know is that along with this bad credit loan will come a high interest. This high interest rate will delay your credit repair plans because it will mean higher loan payments and further damage to your credit score (not the interest rate, but simply taking out more credit to begin with). You may find yourself in an uphill battle to make payments and pay off principal debt.

It’s okay!

Sometimes these things are necessary, however, and once you get that job and start making real money, it becomes much easier to sort all the financials out. One word of advice? Get a bad credit loan for a vehicle that will do “for now.” Don’t get your dream car with bad credit. Get a dependable vehicle that isn’t going to cost a fortune overall so that you can get out from under your bad credit loan in a reasonable amount of time.

Get a bad credit loan only if you must, and never borrow more than you truly need – words to live by.

Fix Credit Reports – Proven Ways to Raise Your Credit Report Fast

Credit is king in this universe, so here are few less thought of, and perhaps even unconventional ways to see a positive turn-around in your credit score relatively quickly.

1.  Get a credit card

It sounds silly but using and paying off credit cards regularly is one of the best ways to get your credit score moving. It’s important that you don’t max it out though – even if you pay it off each month. Just use it for stuff you don’t need to use it for, like groceries, and then pay it off again.

2.  Take advantage of your good-ish credit history

If you have a pretty decent history with a credit provider, like Mastercard, but due to some unforeseen circumstances were late with a payment or two over a specified period of time (say you lost your job), you can request that they remove these errors from your record because of the circumstances. They may not always comply, but if you have since gone back to good credit card habits, they may be willing.

3.  Increase your credit limit

Again, it sounds silly, but to get the best credit score results none of your credit should be sitting at more than 30% of utilization. If you are hovering right around that point or perhaps slightly over, increasing your credit limit can drop that ratio significantly.

4.  Check for accuracy

Review a current copy of your credit report and ensure that all your credit limits and balances match up with your own records. Sometimes credit increases may not get reported right away, and this can throw off your utilization ratios – thus taking your scores.

5.  Dispute, dispute, dispute

If you find any errors on your credit report, dispute them. As soon as they are removed, your score will adjust positively. You may find clerical errors, mistaken identity issues, or other such things. Be sure you can identify all the accounts and credit allocated to your report.

6.  Keep those old credit accounts open

Although it may be tempting to shut down unused credit cards for the sake of tidiness of it all, it’s much better for your credit if you leave them open. The longer you have an established credit history, the better it is for you because a long and positive credit history always looks favorable and makes your look risk-free. It also happens to have a positive impact on your score. As soon as you close these accounts, however, that positive impact disappears.

There are many different ways you can positively affect your credit score and make some fast changes to your current credit rating. Some of these methods are more realistic than others, given your particular circumstances. Just remember that paying bills on time and paying off any balances remaining on credit cards is important, and will have the most dramatic impact on your credit rating.

It’s not impossible to recover your credit and establish a positive history, but it will take time, discipline and planning to do it effectively.

Top 6 Ways to Get a Bad Credit Mortgage Loan

There are a number of reasons why getting a bad credit mortgage loan isn’t actually a good thing. Yes, it’s good that you are getting the mortgage you need for the house you love, but that mortgage is coming at a cost. Literally. The cost will be higher interest rates on your mortgage. This will vary depending on your personal situation, but sometimes it’s worth asking: is the bad credit mortgage actually worth the amount you will have to pay for it, and will the extra interest you’ll be charged just push you further into the red?

Top 6 Ways to Get a Bad Credit Mortgage Loan

1) Not paying off your credit

For whatever reason, maybe you battled with unemployment, or maybe you or a loved one battled with an illness that required paying a lot of extra medical bills, getting behind in paying off your credit can result in a bad credit report. This isn’t irreparable, though. A lot of people think that bad credit is the end of the world, and that’s why a lot of people look into bad credit mortgages—but you can legally repair your credit. If your credit score was damaged by a stint of missed payments due to unexpected or uncontrollable circumstances, simply paying your bills regularly now will go a long way in helping you recover your credit.

2) Too many late payments

Just like missing payments, making too many late payments can damage your credit score (http://en.wikipedia.org/wiki/Credit_score). Similarly, though, simply making payments regularly and on time can help you repair your credit score over time. If you miss payments simply because you forget about them, you might be able to solve your problem by setting up automatic monthly payments through your bank or credit card—just remember to pay your credit card bill off regularly as well.

3) Too much credit

You want to apply for credit to build up your credit history, but submitting too many credit applications too close together can show up as a red flag to potential credit lenders. Be smart about the credit you apply to so you can build up credit without looking like you are desperate for credit. This can make it easier for you to get a mortgage without having to settle for a bad credit mortgage.

4) Bankruptcy

If you’ve had to claim bankruptcy in the past, recovering your credit is going to take a lot of time and diligence. To speed up the process, you may want to consult a credit repair specialist to see if they can help you get your credit back on track legally and efficiently.

5) No credit

Did you know that having no credit can actually be worse than having bad credit? Well, it may not be worse, but credit lenders may be leery of accepting your loan applications because there is no record of whether you will be a high risk investment or not. You may want to get a credit card and start building up a positive credit report so you don’t have to settle for the high interest rates of a bad credit mortgage.

6) Mistakes on your credit report

Have you ever checked your credit history for mistakes? Most consumers actually have errors on their credit reports, and these can actually cause you to have a lower credit score than you should, which may end up with you looking for bad credit mortgage loans instead of lower interest rate mortgage loans. Don’t allow clerical errors, mistaken identity, or incomplete data stop you from getting the house of your dreams at interest rates you can actually afford.

Get Auto Loans with Bad Credit – 5 Tips

Vehicles are something that we cannot live without, they help us get from point A to B on our daily commute and they also allow us to travel to see friends and family at a distance. In the world we live in, it can be challenging to not own a vehicle. Many vehicles fuel family vacations, lifelong memories and things that will make you laugh until your cheeks hurt. But vehicles can be expensive, and in this day and age having a family without having a car is almost impossible, despite advances in public transportation. Most people can’t pay for a car with cash, so they are forced to get auto loans. This is not a bad thing, there are plenty of people out there with them, but it can be challenging to finance them the right way. For example, perhaps when you were young and naive you didn’t realize that you really should not max out that credit card. This circumstance may have hurt your credit a little bit and as such it could be challenging for you to finance the type of vehicle you want or need for your lifestyle.

Get Auto Loans with Bad Credit – 5 TipsHere are five tips to help you get an auto loan with bad credit:

1)  Do your research. Find a company that is willing to help you get approved for your needs, even if you have bad credit. This can sometimes require a bit of digging or researching on the internet but in the end it will make the rest of your application process go so much more smoothly.

2)  Educate yourself on what you’re getting into. As a consumer you need to know exactly what it is you’re signing up for. Know the terms of your contract and what you will need to pay each month. It is important to know these things up front so that you are aren’t surprised a month into ownership. If you are not sure of some of these questions be sure to ask someone to explain this information to you. It is likely that these trained professionals are ready and willing to help, all you need to do is ask.

3)  Request a credit report. This is important so that you will know where you stand from a credit rating standpoint. This may seem like a daunting task and you may be scared to find out the results, but it is an important number to know (and verify) to ensure that no one is using your identity to rack up unnecessary credit. If you have never done this before the process is very easy and a lot of it can be done online. If you have a good company helping you with your loan approval process, however, they will likely be more than willing to help you fill out this application.

4)  Dispute any items on your credit report that you do not believe are correct. This is a very important step as negotiating your debts with creditors or getting items off your credit report that should have never been there in the first place will help you increase your score immediately, as well as over the long term. Knowing where you stand and fighting for what is right is very important. Having a trained professional on your side can help the process along.

5)  Monitor your report and get approved for financing your dream vehicle. Now that you have made some amendments to your report you should be able to work with a financing agency to help you get the vehicle you need to fit your lifestyle. By continually monitoring what is occurring with your credit repair, you will not find any surprises the next time you apply for financing for something. As well, paying off your credit in a timely manner is important to maintain your score with the credit agencies.

Overall, what may seem like something that is incredibly scary, is something that trained professionals can help you with. Knowing what your credit score is, is the first step to improving it. Making financial decisions, like getting your free annual credit report, will only set you up for success when you decide you want to get auto loans or buy a house. Know what you need to do to help better your financial future.

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