Bad Credit Unsecured Credit Cards

With the state of the economy today, many people have had problems keeping up with bills, and have created a bad credit rating for themselves. They may have made purchases while economical conditions were better, not knowing that they might lose their jobs or be receiving less income for some other reason. It seems that once a person is late in making a payment, late fees are added, interest increases, and the debt just snowballs, making it even harder to pay on time the next month. If this has happened to you, don’t despair! It is possible to build up your credit again after a bad experience, using tools like unsecured credit cards for bad credit.

If you would like to have a credit card, but have been unable to obtain one because of your credit history, there may be a solution. You may have thought there was no way anyone would consider approving a credit card application that you might submit, because of your bad credit. Don’t give up though. Apply for a bad credit unsecured credit card. You may be surprised to find that your application will be accepted and you will receive a credit card. With the new credit card rules in effect now, even if you have been turned down before, apply again and you may be approved this time.

There are many companies competing for your business and you should be able to find one that will accept your application. After you get your new card in the mail, be sure to use it wisely. If possible, use it to purchase only necessary items so that your bill will not be too difficult to pay. Try to pay more than the required minimum payment each month, if at all possible. In that way, you will be able to improve your credit rating. If you keep making payments on time, at least the minimum required each month, you will eventually improve your credit rating.

A credit card is such a convenient financial tool. Whether you want to take a vacation, and would feel safer without carrying enough cash to get you through the trip, want to purchase something on line, or need to buy groceries, gasoline or medicine on Tuesday and won’t get paid until Friday, having a credit card is very helpful. After you have had a credit card for a while, you won’t want to be without one, because of the convenience it offers.

Low Interest Auto Loans

If you’re planning to buy a car, you’ll want to carefully consider your options to get the lowest interest rate possible. Even $5000 auto loans‘ interest can add up fast if your rate is too high.

Before you start car shopping, check your credit history. Make sure your credit reports are accurate, and correct any mistakes before you seek financing. This can improve your credit score and help you secure a lower interest rate. If you have enough time before you need to buy a car, you can improve your score by repaying any unpaid bills.

One possible option is to use a home equity line of credit or a home equity loan. These loans offer a lower interest rate than a car loan because they are secured against the value of your house. For these two options, a home equity line of credit typically offers a lower initial interest rate, but they can fluctuate with interest rate changes. If you are considering a shorter term, such as 3 years, this might be your better choice, but if you are seeking a longer loan, a fixed interest rate loan through a home equity loan might better. They both offer the added bonus of deducting the interest on your income tax, which a car loan doesn’t. Of course, there are risks; you are using your house as collateral, and if you default on the loan, you may be forced to sell your home. Also, consult a tax advisor about your individual tax situation.

If a home equity loan isn’t for you, try to get pre-approved through a bank before car shopping. Depending on your credit history, banks usually will offer a more attractive interest rate than a car dealer, and this way, you’ll know how much you can afford before you get on the car lot.

Also, car dealers often try to explain a loan in terms of your monthly payment, rather than the interest rate. This gives them the room to increase the interest rate to match the amount of payment you can afford.

Finally, leasing can sometimes provide a good alternative to purchasing because lease payments are often lower than loan payments. Be sure you understand the terms of the lease, such as mileage allowances and purchase price at the end of the term, should you choose to buy the car then. The downside is that you have no equity at lease end.

Small Business Loans with Bad Credit

Many small business owners find that attempting to acquire a business loan with bad credit can be rather difficult. After getting a start up loan a new business tends to lose money in the first year, causing late payments that slide down their credit rating. Searching for more loans for expansion and maintenance becomes a complicated task. Some entreprenuers are able to borrow from friends and family, but many do not have that luxury.

Bad credit can keep a small business from getting a loan from a major bank, but may not be such a hindrance when approaching a small loan company or a private lender. Funding amounts through one of these mediums may be somewhat limited, and a bad credit score tends to cause high interest rates, so anyone seeking a loan in this circumstance will need to plan accordingly and be prepared for these pitfalls.

Another alternative for the small business owner would be what is called a business cash advance. The requirements to be approved for one of these are not as strict as they are for a loan. When trying for a business cash advance, the applicant must be able to prove that it accepts credit card payments and meets a small minimum requirement for how much is processed in credit card sales each month. Repayments are done on an automated basis according to how you do business, and there is no collateral or personal guarantee required to obtain a cash advance. Similar to a payday loan for an individual, a small business with bad credit may find this to be the most feasible option when looking for a loan of sorts to make an expansion.It is important when running a small business to keep your personal credit score separate from your business credit score. Using the business’s tax ID number to acquire credit, often starting with a business credit card and using it responsibly, will allow a small business to be able to acquire a loan more easily even if the owner has a low score on their personal credit report.

Even with bad credit, there are a few loan options out there for a small business. The most important thing is thorough research and a careful comparison of the most likely alternatives. And, of course, responsible use of any new loan is vital to helping rebuild credit for a brighter future.

Getting a Mortgage Refinance With Bad Credit is Easy

Having bad credit does not have to stop you from getting a mortgage refinance. What seemed nearly impossible to some, is now fairly easy to accomplish. In fact, many online lenders are fighting to get your business. Even though people with bad credit are risky borrowers, many lenders will offer them a mortgage refinance because they can simply combat these high risk borrowers by a slapping them with a higher interest rate. Since rates are at record lows for people with good credit, the rates you can receive with bad credit may still be low.

While getting a mortgage refinance with bad credit can be simple, be sure to shop around for the best interest rate. Also, each lender may have different types of loans they offer, so find the best loan that works for you. For instance, some loans allow you to purchase points. Mortgage points allow you to pay more up front, but you will receive a lower interest rate for the life of the mortgage. You can also choose between a fixed or variable interest rate loan. If you choose a variable rate mortgage, also known as an ARM, understand how often the rate will change and at what percentage it can increase or decrease. With rates so low now, it is more advantageous to refinance with a fixed interest rate.

Be sure to check for any fees and how much the lender will charge you to complete the refinance. Some lenders are cheaper than others. If the purpose of the refinance is to lower your monthly payment, make sure you can afford the new monthly payment before you sign the loan papers. Also, make sure the new mortgage does not contain a pre-payment penalty, or you could be penalized for refinancing or paying the mortgage in full early.

To get a mortgage refinance with bad credit, apply online by filling out an application form. An agent will usually contact you to discuss your options. Look for lenders who specialize in mortgage refinances for people with bad credit. Agents from these lenders can help you choose the loan that best fits your needs. The purpose of the refinance will determine what type of loan will best fit your needs and how it will benefit you. If you have a Fannie Mae or Feddie Mac loan, ask the lender about Obama’s national mortgage refinancing program.

A Low Interest Home Equity Loan is the Way to Go

In today’s cash strapped economy, many homeowners are looking for alternate ways of generating some cash for household needs, debts and emergencies. With credit card rates soaring and retro-activating against previous purchases, many people are looking to lower their interest burdens by paying off high interest debt. Personal loans are high in demand, but often require borrowers to come up with collateral in exchange for rates that are similarly high to credit cards. Peer to peer lending is another solution, but it usually requires exceptional credit and funding is not guaranteed. In the light of this, many are turning to home equity loans for their debt solutions.

Home equity loans are simply loans taken out against your home. There are many benefits to borrowing against a home, as many home owners enjoy a nice cushion of equity early on their mortgages through down payments and expedient payoff schedules. Because a home equity loan is viewed as a second mortgage, the interest on the loan is very low, usually hovering around the same rates as a thirty year fixed loan. The interest is usually tax deductible and borrowers tend to have low payments that are hardly noticed as they are stretched out over a long period of time.

Though home equity loans are beneficial to many who find themselves slave to their debts and obligations, one should be careful before hastily borrowing against their home. Once a loan is taken out against a home, it is no longer protected against bank repossession, which is dangerous ground for those struggling to make end’s meet. Once a home equity loan has been defaulted on, the home acts as collateral to recover the debts.

Overall, home equity loans prove to be wise decisions for many people, regardless of the needs of the borrower. A financial adviser can often provide a third party outsider’s view and help guide your decision in taking out a low interest home equity loan. There are many companies, banks, and financing institutions that are more than willing to help their customers with their banking and loan needs. For those that find themselves sinking farther into a debt sinkhole, maybe you should consider taking a cue from your house. That equity is sitting dormant and can be used to save money both in the present, and long term as well.

Low Interest Payday Loans for Fast Cash

Payday loan companies have been in business for many years and have helped scores of people with what are dubbed as ‘low interest payday loans’ These short-term loans can be used when unexpected expenses occur, between paydays. A typical payday loan company will require a personal check to be written to them or a debit to be authorized for the amount borrowed plus a flat fee. The check will be deposited on the agreed upon date, which is usually 7-14 days later. However, financial experts agree that payday loans should be avoided at all cost. They also say that low interest payday loans do not exist; it is an oxymoron. Unless, of course, you borrow from a friend or family member!

Payday loan companies have been under a great deal of scrutiny due to their high interest rates and marketing tactics. Recent advertisements have shown customers that appear to be happily receiving low interest payday loans for a weekend getaway or vacation rather than emergency situations. However, when the flat fees are shown as an annual percentage rate (APR), the low interest payday loans are actually loans with APR’s that can reach 1300% or more. Ironically, the shorter the length of the loan, the higher the APR. Payday loan companies have long been accused of targeting the working poor. This is a group of hard-working individuals, that live paycheck to paycheck. When something unexpected occurs, they often go to a payday loan company for a temporary reprieve.

While the payday loan companies stress that the loans are short-term, they offer an extension to a customer who is unable to pay the loan in full on the due date. To extend the loan, the customer need only pay the interest. The principal is held over until the next payday when the principal plus the interest will again be due. For example, a $300 loan received may have a flat fee of $75. The total amount of $375 would be payable in 7-14 days. If the $375 cannot be repaid, a payment of the $75 flat fee will extend the loan for another 7-14 days at which time $375 will again be due. Thus, begins the cycle that can become an extremely expensive series of transactions with companies that market low interest payday loans.

Business Loans For Bad Credit to Get Your New Venture Off the Ground

Trying to get a business loan with bad credit is not an easy task. Lenders may see anyone with a credit score less than 650 as a real risk, and may not want to take a chance of not getting their money back. Bad credit is quite common amongst most people, especially if they are young and inexperienced with finances. A business loan is important for the start-up capital along with expansion and maintenance as your company begins to grow. Some small business owners who took out an initial loan may find themselves not being approved for another because of late payments or delinquent accounts. Most lenders and institutions look at an applicant’s personal and business credit history before approving them for a loan. In the end, many business owners try to turn to small loan companies or even friends and family. The problem is, this is really unrealistic and doesn’t offer real solutions.

There are some other alternatives for attaining a business loan. Business cash advances are also available for those that have a poor credit score or payment history. Merchants can attain these advances even with poor credit. Cash advances have many benefits. What many business owners like about this option is the flexible repayment options. This is important in order to not fall behind on your bills. There is no collateral needed. Most lending institutions require applicants to have some sort of collateral if their credit is poor or horrible. So in the end, bad credit is not an issue with attaining a business cash advance.

There are many lending cash advance centers that can be of assistance of acquiring about a loan. These cash advance business loans can amount anywhere between $5000 to $1,000,000! Business owners can get their money in less than 72 hours on some sites. Make sure to do your homework and get reviews online about any lending company before trying to get a business advance loan. Another benefit to these types of loans is that there are no closing costs or other fees. They are often used more in personal businesses.

Another option for getting business loans for bad credit is to use your 401 (k). If you have an account of this nature, you can tap into it to receive a business loan. This can be used as collateral with lending institutions. Not all institutions offer this, but there are some lending companies that provide this option.

Finding a business loan for bad credit can be a hassle, but it is not impossible. Finding the right lending institution with a good background and positive reviews with past customers is the key.

Refinancing Your Car With Bad Credit

Out of all the problems associated with having bad credit, getting a car refinance loan often isn’t one of them. Refinancing your car with bad credit is fairly easy, due to the fact that the car serves as collateral. A willingness to put up decent collateral is often reciprocated by lenders, who suddenly become willing to deal with you.

There are several possibilities for refinancing your car with bad credit (we could be talking about $5000 auto loans – or much bigger numbers). The best of these options include banks and other well-established lenders. Many of them even have online applications where they specifically solicit bad-credit customers. Even though interest rates are higher for people with bad credit, these lenders are often about as good as they get in the industry, with repayment terms being fairly straightforward. These operations, as a rule, will stick to the contract, so you can rest easy knowing that if you pay the bill, you keep your car.

In cities of any decent size, it is possible to find independent lots who claim that they are willing to lend to everyone who has the ability to breathe. This part of the car-refinance industry, unfortunately, has a big reputation for being shady or worse. Horror stories abound. Therefore, it’s best to avoid these operations, and go for a big lender, preferably one which is nationwide or at least statewide. Large lenders, if only because of their size, have to withstand more regulatory scrutiny. Therefore, big lenders are more likely to play by the book.

One good source of car refinancing may be a bit surprising. There are credit card companies which also have auto and even home refinancing arms. Some of these companies specialize in dealing with people who have bad credit. Refinancing your car through them can work very well.

Refinancing your car with bad credit does not have to be hard or cause undue grief. With good research, you can find plenty of reputable companies to deal with. When looking online, look for car refinance deals which are attached to banks or credit card issuers. Many bad-credit lenders online also advertise through various affiliate sites and promoters. This is fine, as long as the company actually doing the lending is a reputable one. Look in the tiny type in any agreements you are asked to approve to see who is actually behind a bad-credit refinance offer, as well as to see all of the relevant terms and conditions.

Personal Loans for Poor Credit

There are millions of people today who have poor credit and more fall into this group every day. Most of you know someone who is has lower score and you may be one of those millions with the poor credit. A personal loan can be a lifesaver for many people with poor credit. There are situations that arise unexpectedly, like a car repair or medical bill. Creditors and lenders are showing that they are still willing to provide personal loans to consumers with poor credit.

Getting a personal loan for poor credit from a bank or lender is harder now than ever. There are many financial establishments today that do approve personal loans for consumers with poor credit. Just because your credit is considered poor that does not automatically stop you from some type of personal loan.

For anyone who is looking for a loan, it is important to understand exactly what a personal loan is. Much different than a car or home loan, a personal loan is unsecured, which means there is no collateral provided to secure the loan. This does make providing this loan a little risky for the bank or lender. These loans can be big or small; you might find $25000 personal loans or as little as $1000.

To qualify for a poor credit personal loan, an application will have to be filled out first. The typical information needed is your full name, income, Social Security number, and other necessary information. The one providing the loan will decide your credit worthiness, even when looking at a poor credit history. With a personal loan, a credit check may also be necessary. The amount that is borrowed may be limited to $1,500.

The loan provider may help you in making an application look more pleasing by recommending that you borrow a smaller amount or extending the length of the loan period. This way, the monthly payments may be lowered and even increase the chances of you being approved for the loan.

It will also be decided whether or not you have a steady income. You are more than likely to be approved for the loan if you have been at the same job for many years. However, if you have been changing jobs quite often, it may be less likely to be approved.

The application process of a personal loan is typically quickly and does not require a formal closing. The process includes a written application, payment schedule and promissory note.

Auto Loans for People with Poor Credit – Do You Need One?

There is no denying that transportation is an absolute necessity in most circumstances, but securing an auto loan can be very tough for an individual plagued with credit problems and a poor beacon score. Many people find themselves in an incredibly difficult situation when shopping for a vehicle and there is no immediate fix to a negative credit rating. Although there are many lenders that have designed auto loans for people with poor credit, there are some important things to realize about these offers.

The down payment required with a poor credit auto loan may be significantly higher, so shoppers should be prepared to raise more money if needed. A larger down payment not only decreases the lender’s risk, but it also lowers the amount financed which results in lower and more manageable payments. A large down payment may be the only way that an individual can qualify for an auto loan.

There are typically higher interest rates associated with no credit check auto loans with repo. As a result, a higher percentage of the payment will actually go towards the interest rather than the principal of the loan. It is often recommended that a borrower pay a little extra each month if at all possible to decrease the total finance charges over the life of the loan. Higher interest rates are largely dependent upon the amount of increased risk that a lender may face due to a poor credit borrower.

It is also important to note that almost all poor credit auto loans will require a consumer to maintain both comprehensive and collision coverage on the vehicle financed. Auto loans for people with poor credit also typically mandate that the deductible on the auto insurance is no higher than $500, so this can raise premiums as well. A lender simply wants to ensure that they will receive their money if the car is involved in any accident or loss.

Many individuals find that there is no viable alternative to owning a vehicle, but luckily there are options available for financing a car with poor credit. The ability to drive to and from work may be taken for granted by many consumers, but it is a privilege that should not be taken lightly. Responsible payment activity on an auto loan for people with poor credit will actually increase a borrower’s beacon score, and perhaps the next loan will have even more favorable terms.

Unsecured Credit Cards for Bad Credit – Do They Exist?

Few individuals realize how important maintaining an excellent credit rating is until it is simply too late. Consumers can fall into the bad credit category for a variety of different reasons, but what’s important is that it is entirely possible to start new relationships with lenders and rebuild one’s history in the process. Revolving lines are perhaps the most difficult to obtain, but there are companies that offer unsecured credit cards for bad credit individuals. There are several things a wise consumer can do to increase the chance of being approved for such an account.

An individual should be well aware of any negative items that are present on their credit report. There are many cases in which mistakes have severely impacted a person’s credit score. If any errors are found in any part of the credit history, they can usually be cleared up fairly easily by disputing the incorrect information with each of the three credit bureaus. It may take awhile to correct such information, so it is strongly advised to repair any problems as quickly as possible and definitely before applying for any new accounts.

Many consumers have excellent pay histories on bills such as rent and utilities. However, contrary to popular belief these accounts do not report to the credit bureaus unless there have been severe delinquencies. Individuals can request a letter of reference from their landlords or their utility companies and this letter should include a brief summary of the pay history. A letter of reference normally must be requested in person, but they typically are provided free of charge. Being able to show a good pay history on regular monthly bills can help a person illustrate their reliability and responsibility.

Honesty is highly regarded by most companies and it is imperative that any applications are filled out truthfully. Individuals that exaggerate income or alter employment history are not only less likely to be approved, but they also could face criminal charges if caught. There often is an opportunity to explain past due balances and previous delinquencies, and a person should take full advantage of the chance to build their case.

There are plenty of lenders who offer bad credit unsecured credit cards, but there is a chance that a consumer will still have a difficult time securing such an account. An individual has a much better chance of being approved if they follow the above best practices. If you find you’re not able to get the credit card you want, other financing – like instant decision unsecured personal loans – may be your only option. Credit cards are not inherently evil and can be a valuable tool for daily money management and financial planning. However, a person should be well aware of their spending habits and level of responsibility. There are many companies willing to give second chances, but very few will offer third chances.

Low Interest Rate Personal Loans: Short-Term Help for a More Secure Future

With today’s economy causing job losses and cut hours, it can be difficult to keep abreast of financial obligations. Mounting credit card debt and missed bill payments can be a slippery financial slope. Even for those of us able to pay our bills, replacing an old sofa, having necessary automobile repairs done or taking that dream vacation can become unattainable goals. One way to acquire some ready cash is to apply for a low interest rate personal loan.

A low interest rate personal loan can also be used to consolidate debt, relieving the worry of juggling multiple payments. Using a credit card may be a tempting alternative, but the interest rates are customarily higher. Teaser interest rates offered by credit card companies often end after a trial period, leaving cardholders with a large balance and a high interest rate.

Low interest rate personal loans are unsecured loans. A secured loan is one for which the borrower has put up collateral such as a house or a vehicle. An unsecured loan is one for which there is no collateral. Lenders are gambling that the borrower will pay back the loan based on their financial history. If a loan is defaulted, the lender has nothing.

Unsecured loans are approved under rather specific conditions. An excellent credit rating will determine not only whether the loan is approved, but also the interest rate of the loan. Lenders will look at the borrower’s payment history, employment record and income. Because low interest rate personal loans are unsecured, they tend to be of smaller amounts, usually only a few thousand dollars – in other words, $25000 personal loans are going to be hard to come by. Low interest personal loans can be recourse for people who do not own a house or a vehicle valuable enough to be considered collateral.

If a person has bad credit, there are several online lenders who claim to approve loans for anyone. Online lenders should be thoroughly researched and their terms carefully evaluated. Caution should be exercised when borrowing from a lender not affiliated with an established institution. Hidden fees and high interest rates can be ugly surprises for the unwary. A safer course is to improve a bad credit rating and apply at a credit union or bank. Choosing an institution familiar with you and your payment habits can help your chances for approval.

How to Find a Bad Credit Refinance Loan for Your Home

If you’re looking for a bad credit refinance loan, there are two things we probably know about you. One, you’ve most likely kept up on your mortgage payments. Two, other debt obligations have been either neglected (meaning you’ve missed  a payment here and there), or ignored completely (meaning you gave up on trying to repay the debt – could have been a car repo or something along those lines). Now you’d like to refinance, and who knows why. Could be a variety of reasons that you want to refinance your home loan even though you have bad credit. Here are a few I can think of:

1. You want to get some of the equity out of the house to pay off some bad debts.

2. You’re just trying to take advantage of low rates and get your monthly payment down.

3. You’ve realized you’re not going to have much luck selling your home, so you’re thinking about improving and/or adding onto it.

Whatever the reason you’re trying to refi your house, you better go in with your eyes wide open, because when you start the refinance process – especially with bad credit – you’re basically starting the mortgage qualification process over again from scratch.

You need to have a few things in place before you even think about a refi.

First of all, do you really have enough equity to keep your ratios inline? You’re going to need to have 20% equity left over – after you complete the refinance process. If your home is worth $250,000, and you want to borrow $20,000 to fix up the house, then your current indebtedness can’t be more than about $175,000. I know those numbers don’t quite add up; more on that in a minute.

Second, your debt to income ratio can’t go up to much with the new loan (obviously this only applies if you’re trying to borrow money out of the house to fix it up or pay off other debt). If you’re borrowing the money just to fix up the house, you’re probably looking at about $6-$9 added onto your monthly payment per $1,000 borrowed. Let’s say it’s $9.  A $20,000 loan will increase your monthly payment by $180, give or take. Take that into consideration.

On the other hand, pulling out some cash to pay off credit card debt could improve your debt to income ratio. Your credit card payment usually comes in at about $25 per $1,000 borrowed, so trading that in for $9 per $1,000 borrowed would help a lot. Not to mention the fact that sometimes the interest on that new mortgage debt will be tax deductible, whereas credit card debt is never going to be.

If you happen to be refinancing just to lower your payment, make sure you fully understand the costs associated with the refi, because it will take at least a few years at the new lower payment to recoup the cost of refinancing with bad credit. Let’s say your new mortgage is $150 lower, and the total closing costs on the house were $5,000 (I think that’s pretty conservative). It would take you almost three years before you realize the benefit of the refi. If you think about the fact that lowering your interest rate hurts your tax deductions, it actually takes you longer to really enjoy the benefits of refinancing your house.

Keep all these issues in mind if you have bad credit and want to refinance your home loan. There are a lot of ways it can benefit you, but if you don’t factor in all the real costs, you might not be getting ahead at all.

Different Types of Poor Credit Student Loans

We’ve all heard the statistics about the effect more education will have on your income, but we’ve also heard the statistics about the rising cost of a college education. People with great credit dive right into school because they feel like borrowing money to pay for it won’t be a problem. But what about prospective students with bad credit? Not to worry – you can count on poor credit student loans to get you through your education. But first you need to educate yourself on what types of student loans are available to poor credit borrowers.

The first kind, and best kind, of student loans, are those backed by the federal government. Stafford loans and Perkins loans are not granted based on your credit score or history as a borrower. The government backs these loans so lenders will give you money you need for school without taking a good look – at all – at your ability to repay it. The understand the statistics and recognize that on average people will repay those loans once they graduate. So not only are the Stafford and Perkins programs great student loans for poor credit borrowers, they’re also very low interest.

There are two different kinds of Stafford loans: you have the unsubsidized version and the subsidized version.

Subsidized Stafford loans are given to students who meet the government’s qualifications to declared ‘needy.’  These loans are great because the government pays all the interest on the loans, for the entire time you’re in school. Once you graduate you’ll still have a six month grace period before your payments on the loans become due and you become responsible for the interest as well.

Unsubsidized Stafford loans have only one difference – the government doesn’t pay the interest on the loans while you’re a full-time student. But that doesn’t mean you have to pay it. It just means that while you’re in school the interest accrues and once you reach the end of your grace period you’ll be responsible to pay back the principle on the loan as well as the interest that accrued before you graduated.

Perkins loans are less common, mostly because most people aren’t in enough financial hardship to qualify.

Stafford loans and Perkins loans are obviously the best choice, but if you have to rely 100% on loans to get yourself through school, these loans aren’t likely to be enough. You’ll have to look to alternative borrowing sources, and that may mean seeking out private poor credit student loans.

This can be risky though. Private student loans with bad credit have none of the same perks as the government supported loan programs. The interest rates can be brutal, and you aren’t likely to find consolidation programs that compare in any way to those that go with the government loans. Many students take on private loans not realizing that they’re locking themselves into payments and interest rates that could either make their credit worse or push them into careers that don’t interest them at all because they need the higher salary.

If after evaluating your financial needs to get through school you realize that government subsidized loans won’t be enough, I’d strongly encourage you to delay the education for a short time and work toward saving enough money to get through school without private student loans with poor credit.

A Poor Credit Mortgage Loan to Put You in Your Own Home

There are quite few myths surrounding whether a person with bad credit can get a mortgage loan – myths on both sides of the table. You have people who say think there’s basically no such thing as a poor credit mortgage loan; and you have people who think that a person with awful credit – if they look hard enough – will find a loan that requires nothing more than their signature, a firm handshake, and a winning smile.

Both groups are misinformed, to say the least, and we can address them both at the same time.

There are plenty of poor credit mortgage loans out there. There is an entire subset of the lending market dedicated entirely to the bad credit, or ‘subprime,’ borrower. The terms of these loans take into account the subpar credit standing of the borrower. They’ll carry higher interest rates, and probably require higher up front fees (if the borrower chooses to buy down their rate with ‘points’).

Bad credit borrowers will almost certainly have to prove their income beyond all doubt – I doubt people with bad credit would have a very easy time getting a ‘stated-income’ mortgage. The lender is going to want to see a couple of years’ worth of tax forms, pay stubs, or both.

Here’s the big kicker – if you don’t have a 20% down payment or more, I’d say you’re a couple of years away from qualifying for a home loan. I can’t really say I think that’s a bad thing though. Think about it. Let’s say you want to buy a $200,000 house. You need to come up with a $40,000 down payment. If you can set aside $800 per month, you’ll have your down payment in a little over four years.  Now, that may seem like an eternity to you, but you can get a lot done in your financial life in four years.

You can significantly improve your credit – maybe to the point that a mortgage loan with poor credit isn’t something you even need to worry about. You can consistently increase your income – which will make it easier for you to furnish and landscape this big new home you’re buying. Most importantly, you can enjoy the benefits of waiting and working for a goal that means a lot to you. I really believe our society would be much better off if everyone who wanted to buy a home had to spend five years or so getting ready for it. Not only would you have much more savvy home buyers, you’d have happier, less stressed people out there who could actually afford their home.

Seems to me that working a few years to prepare for a commitment that will last at least 30 years isn’t a lot to ask.

Low Interest Debt Consolidation Loans – Educate Yourself Thoroughly

Human beings gravitate toward anything we perceive to be faster and easier. We like to simplify, streamline, and automate. It’s true of every aspect of our lives, and it’s especially true with how many of us want to deal with our outstanding debt. Many people who have multiple credit card balances, car payments, student loans, etc find it extremely appealing to have somebody else do the dirty work of dealing with our debt – so we go hunting for low interest debt consolidation loans.

On the surface, a low interest debt consolidation seems like it would be an absolute heaven-send. We get our ugly, disorganized high interest loans and their inconvenient payments turned into one smooth-sailing payment that we’re told is extremely low interest relative to what we’re paying now.

Here’s the problem – if you’re hunting for a debt consolidation with a low interest rate, it probably means you’re dealing with high interest rates – and several of them. You know what that means? It means you’re a credit risk. Somebody has to pay the piper, and your creditors aren’t just going to take massive losses just because your debt consolidation company asks them to. So while all the advertising may say that you’re going to be getting a killer low rate, read the fine print. You might be getting some kind of introductory rate and soon after it will be bumped up – sometimes as high as credit card rates.

Another thing I recently learned about these supposed debt consolidation loans with low interest is they often carry fees; fees that can run as high as 10% of the monthly payment on the consolidation loan. So if they get you to a $500 payment, you’re looking at $50 per month just for the privilege of having them receive a payment from you and then send it on to your creditors. By the way, they’re getting it on the other side as well. Your creditors, so excited to be receiving payments consistently, will often pay the consolidation provider an additional 10% to 15% fee. Suddenly it seems like this would be a good business to be in, but I’m not so sure it’s something where you want to be the client.

What you might not realize is that there are plenty of ways for you to take yourself through the exact same process that any company could as far as making your payments and paying your highest interest balances first. You’re very likely paying for something you could do yourself, and by doing it yourself you’d probably learn valuable lessons about how to avoid ever being in this kind of debt situation again.

Low Interest Mortgage Loans

Mortgage interest rates are mostly determined by two things: the free market and the Fed. That’s pretty common knowledge, but people seeking low interest mortgage loans should be educated about how interest rates can fluctuate in order to time their home closing or their refinance as well as possible. Getting this right could make a difference of tens of thousands of dollars in interest payments over a 30 year period.

So how does the Fed push rates around? It can get pretty complicated, but the Fed is in charge of the federal funds rate. Now, the federal funds rate is the interest rate banks can charge each other if they’re lending money to each other overnight to stay within their federally required cash reserves. The Fed determines that rate, and the banks use it to set rates on the money they lend you and me for things like mortgages, cars, and credit cards. Basically, when the Fed lowers the Federal Funds rate by, say, .75%, there will be an equal drop in things like the Prime interest rate, around which many loan rates is built.

So why does the Fed lower the Federal Funds rate. There are a lot of reasons, but the one mostly commonly seen lately is that the economy is slow, and the government tries to stimulate it so banks will start lending to each other, to prospective home owners, business owners, etc. The idea being that more money will start moving through the economy, which improves the attitude of the public and gets things going in the right direction.

So for those of you looking  to get a mortgage loan with a low interest rate, you should keep track of the financial news – when people start to get scared about the economy, and the Fed wants to improve the outlook, low rates are probably on their way.

Now just because rates are low doesn’t mean you’ll get a low rate yourself. Everything I just talked about takes for granted the fact that you’ll have to be a well-qualified applicant to land a low interest mortgage loan. That means a credit score creeping over 700, having your other debt payments as low as possible (so as not to tip your debt to income ratio past allowed limits), verifiable income, and last but not least – a nice big down payment.

Getting the lowest possible interest rate mortgage loan is a matter of good preparation and good timing. You can’t do much to control the market, but you can control yourself. I heard a great quote once: “Opportunity meets you at the level of your own preparation.” If you’re prepared, you’ll be ready to capitalize.

Poor Credit Personal Loans

With poor credit personal loans your challenge is not going to be qualifying for them; getting the money deposited into your account is going to be relatively easy because the application process is ridiculously simple. No, your challenge won’t be getting the money. It will be paying it back. So let’s talk about how that’s going to happen.

Let’s say you borrow a personal loan with poor credit, and the term is 14 days. You borrow $300. There are a couple of serious issues to address here. The first big one is that the lender is probably charging you between $15 and $25 per hundred dollars you borrow (it starts to add up fast if we’re talking about something as big as $25000 personal loans, which means you start out with loan (effectively) of say $345, being somewhat conservative. You just borrowed $345, and the money is due two weeks from today.

A couple questions:

1. How many paychecks will you be receiving between now and two weeks from now?

2. What percentage of one of your normal paychecks is $345? If you normally earn $500 per week, $345 represents about 35% of your gross pay (before taxes) for the next two weeks. Keep that in mind.

3. Of the next two paychecks you receive, will $345 of what’s left over after taxes be available to pay off this debt? What bills are due over the course of the next two weeks?

4. Finally, and most crucial of all, will you actually be able to have the balance paid in full by the due date? If not, do you realize you’ll be paying extension and renewal fees? I read a statistic on a consumer defense website that said personal loan borrowers with poor credit can average around 10 renewals per loan. Ten!? By the time you pay all the renewal fees on that personal loan you will probably have paid back more than double what you borrowed, and all within a few months. This is why you hear that the ‘real’ interest rate on these loans is often over 500%.

So I would ask you to read through the set of questions I asked above. If those questions make you realize that instant unsecured personal loans can going to hurt you much more than they will help, find another way to make it through your week till your next paycheck! You’ll save yourself tons of money, stress, and lost sleep.

How to Get Home Equity Loans with Bad Credit

Bad credit puts you in a hole in any lending situation, and it’s tough because no matter how you try to explain away your low Fico score with circumstances and events beyond your control, the hard fact is you didn’t make your payments on time (or maybe at all), and now the credit bureaus are telling lenders to steer clear of you. If you happen to be a home owner, and you need to get some cash out of your house, home equity loans for people with bad credit are going to be nearly your only option.

And I’m sure you can understand why. If you take a step back and look at things from the bank’s perspective, giving you a home equity loan in spite of your bad credit probably doesn’t seem like a very good idea. After all, by taking on this new credit line, you’re not really changing anything about your financial situation except creating another opportunity to increase your monthly debt load and increase the risk of you starting to miss payments again.

That might not always be true. You might be opening the home equity line because you’re going to use it to pay off some credit card debt or medical bills or something along those lines. If that’s the case a lender might look at the situation more favorably because you’ll be getting rid of those brutal interest rates and payments on your cards by transferring the balances over to a lower interest credit line.

Just how much lower that interest rate will be is up in the air. Good credit borrowers might get something near the prime rate on their equity loan, but home equity loans for bad credit could run in the prime+5% ballpark. So, yes, that’s much better than the 20% to 30% you’re going to deal with on credit cards, but it’s not really a low rate loan.

The question is, how can you make yourself look better to the banks. In my mind there are only two ways that’s going to happen.

You could a) wait a couple years while you clear out some debt and watch your credit score improve as you zero out balances and make consistent payments (and maybe even write some dispute letters about blemishes on your score, or b) get someone with shiny undamaged credit to co-sign with you.

That could be a very tricky situation. It’s likely that a nobody will want to co-sign with you unless you’re fairly close, but having someone close put their name by yours on a loan – after what you’ve done to your credit in the past – creates some potential risk to the relationship that you should think long and hard about. If you know – and I mean know that you’re going to make your payments, that your employment is stable, and that everything will work out….getting a co-signer is probably the best option. It might make it so you don’t need home equity loans with bad credit at all – you could get the ‘good credit’ kind instead.

Getting a No Credit Credit Card

Even in what is becoming a very tight lending market, it’s still not that hard to get a no credit credit card. Mastercard and Visa, through all their licensed lenders, offer a variety of unsecured, prepaid, and secured credit cards with no credit for people who are either working to establish or repair their credit.

There are even times when one licensee will offer basically identical cards, but one happens to be Visa and the other Mastercard. For example, First Premier Bank offers the Centennial Visa or Mastercard designed specifically for people with no credit. They’re offering benefits such as:

  • 24 hour account access via telephone (but no mention of internet account access until I dug deeper into the terms; then I found out you could pay $3.95 one time fee to have online account access)
  • Low APR on purchases (further investigation revealed that it’s 9.9% – not great, but I’ve seen much worse)
  • Monthly reporting to four major credit agencies (this is the big one – you need them to talk to the credit bureaus if you want to see your credit score steadily climb)
  • A response to your application within 60 seconds (actually this is very fast, so at least you’ll no right away if you’re approved or not)

I had to dig a little deeper to find the fees associated with the card, and I found them to be fairly standard compared to what you’d see with most credit cards with no credit. Right up front you’re going to pay an account setup fee of $29.00, a “program fee” of $95, and an annual fee of $48. They put all those charges on your card immediately, and you’ll begin making payments and accruing interest on that balance from day one.

That can be pretty annoying, but it’s not uncommon in the lending world. It’s almost like this card provider is charging closing costs like you’d have on a home loan, and rolling the closing costs right onto the balance. Maybe the way to go with a card like this is to save up a couple hundred bucks and think of it as ‘buying’ the credit card, so you can pay off that initial balance immediately.

A couple of fees you might not think of beforehand (since you might be new to the credit world, looking for a credit card with no credit check and all that), are the over-limit fee and the late fee. They’re each $29, so you want to avoid those at all cost.

This card offer is pretty typical. It’s expensive, but if you use it right it gets the job done and helps you improve your credit score.