Free Financial Planning Advice » Bad Credit

Take Advantage Of Credit Restoration

Chava — Wed, 30 Dec 2009 19:45:05 +0000

Having bad credit can cause tremendous anxiety. Especially when compounded by repeated rejected attempts to attain a credit line or loan, that nagging credit history might cause unquenchable nightmares. There is help, however. Credit restoration services can assist you in wiping clear certain things from your credit history. Building your score will then effectively restore your credit. The entire process requires dedication and seriousness. But it can work.

Credit restoration companies primary role is to fight inaccuracies on your credit report to the point of removing them entirely. According to federal credit law, anything that is inaccurate, incomplete, and/or unverifiable information can be removed from credit reports. With a competent, experienced company the following may be removed: inquiries, late payments, collections, repossessions, bankruptcies, foreclosures, child support, judgments, student loans, and tax liens. A credit restoration program usually requires you to be financially stable and able to pay all your bills on time in order to qualify for restoring credit. You sign up for their program, and they get to work on clearing the report. Depending on how much has to be cleared and whether or not you choose a “premium” program, your credit can be improved 20 to 30 points each month for any number of months. You receive the improved reports from the three credit bureaus each month, so you can see the work being done.

A worth credit restoration service will offer you a consultation, often free, and give you an estimate on how much they’ll be able to restore credit, and in how long. They will also offer advice on managing your financial resources in order to continuously improve your credit score.

This last point is imperative whether or not you sign up with one of the top credit restoration companies. Use the credit building tools to jack up that credit score. Even after using a professional service, your credit may be clear but not high. To build credit, you need to own credit lines of installment and revolving types. Credit cards and loans are difficult to attain without credit, so you’ll need to apply for special programs build for people in your situation. Interest rates will be high, but the result, restoring your credit, is definitely worthwhile. A quick run through some credit building tips around the net will help you get started to restore credit score. Perhaps you’ll end up with better credit than when the entire debt mess began!

Bad Credit Refinance: Is It Possible?

Chava — Mon, 21 Dec 2009 19:29:00 +0000

Bad Credit Refinance Loans…What Does All The Mumbo Jumbo Mean?

When you purchased your car or home a number of years back, things were looking perky. A steady job, sufficient income, few worries. Over time, however, finances have gotten tighter. Bill paying is happening later. Perhaps the term “monthly expenses” causes a light sweat to break on your brow. You credit score has dropped and someone has suggested you take another loan and refinance your assets… what does it all mean and how is it possible?

Refinancing
On any secured loan you’ve taken, you are currently paying a certain interest rate. Home mortgages and auto loans are the most common forms of secured loans, though any property or asset can be bought this way. To refinance means to take out a new loan (at a lower interest rate) that will pay the debt of the first loan. The most common motivation for refinancing is that the interest rates have dropped since you purchased your home or car. Refinance, and you’ll make lower monthly payments. The loan term might even shorten. Can you, however, refinance with bad credit?

Bad Credit Mortgage Refinance
Bad credit will almost always affect your loan terms negatively. Bad credit holders pay higher interest rates and larger closing or collection fees. However, lenders are in the moneymaking business. They know there are plenty of people with bad credit who would love to refinance and ease their expenses a little. Therefore, there are a number of mortgage brokers and lenders who make refinancing that home a full fledged possibility.

Bad Credit Auto Refinance
While refinancing a mortgage is more common (it is most people’s largest expense and biggest asset), you can refinance that car, as well. The conditions and precautions are the same as for a mortgage.

A Good Bad Credit Refinance Loan
What you want to know when you decide to refinance is that the whole deal will actually be worth your time and money. Refinancing a loan at a lower interest rate but with extraordinary fees, for example, may actually not save you a dime. Alternatively, if your loan term goes from 25 years to 30 years on the refinance, you may pay longer and also not save yourself any money. Another factor is Private Mortgage Insurance (PMI). Don’t pay this if you don’t need to!

Ultimately, make sure you speak to an experienced, thorough, and trustworthy broker and lender about your refinance options. Compare offers. You can make a great deal here, if you do your homework right.

Can A Debt Group Help You?

Chava — Thu, 17 Dec 2009 18:18:44 +0000

Addressing excessive debt is an anxiety filled process for anyone. Determining how to even begin might feel beyond your scope of knowledge and capability. The first thing to do is take a deep breath. Then, find a debt group.

A debt solution group, though it may sound like some variation on AA or NA groups, is actually a company or firm of experts who can help you determine how to settle your debt problems. Staffed by credit counselors, debt advisors, and attorneys of the field, such a group can provide tremendous assistance in a dilemma that would otherwise bury most people in distress.

You have a number of options in dealing with your debt. Your debt support group should present all of the following, and perhaps more.
1. You can (and it may be advisable in unique circumstances) do nothing.
2. You can file for bankruptcy (chapter 7 or 13, depending on your qualifications).
3. You can opt for debt settlement.
4. You can take advantage of the debt group management team, which is more like credit counseling than anything else.

Top companies in this field, like the American Debt Settlement Group and Trinity Debt Group set an example of what you should look for. They have a range of employees, including experienced attorneys. Legal representation, if needed, is available through their programs. Some firms will focus more on validation or auditing, some on settling. Read about each firm to see what, precisely, they offer.

You will also find that some groups are paid, while others are free. Freedom Debt Management is one free debt group which offers excellent guidence and services to help you overcome your debt. But depending on your individual situation, you may be best off with a paid group that offers additional options that you can’t find with a free group. The steps you need to take to overcome debt vary greatly from one individual’s financial situation to another, so there cannot be one blanket solution that is right for everyone.

If you are looking for total eradication of your debts, you may consider a debt elimination group, like the Integrity Debt Relief Group. Some people swear that debt elimination is an impossible scam. Others attest that it is actually possible. It may take a personal consultation to determine if this is the path for you.

It’s up to you to decide which debt group will help you most. Do a significant amount of research about it. As you come across attractive companies, read their mission statements, look at the degrees their staff holds (as you may very likely need an attorney), and read a range of reviews. The debt group review that sounds overly positive or negative will be misleading on its own. Be sure to balance it with other information.

When You Need A Debt Settlement Attorney

Chava — Wed, 16 Dec 2009 19:21:06 +0000

Everyone’s real hope is that this article is never actually needed. Of course, there are times when it becomes necessary. In that case, it is important to understand what a debt settlement attorney is, does, and under what circumstances he or she should be called upon.

Bankruptcy or debt settlement should really only be considered when debt is excessive. Being on top of your bills usually is usually a matter of tightening your belt and some basic financial planning. For assistance, you can turn to a credit counselor. This will not affect your credit. If, however, you are in danger of losing your car or home due to excessive debt, it is time to contact a bankruptcy or debt settlement attorney. Experts in the field, they will be able to assess your situation more fully and advise as to your next step. They will tell you your legal rights and obligations, as well.

Bankruptcy is a very serious tag on your record. Debt settlement is serious as well, but can result in a less drastic credit drop. Though you won’t be given the “clean” slate of filing for bankruptcy, your credit score still has a chance.

Debt settlement attorneys specialize in negotiating with your creditors. It is their responsibility to mediate with each creditor, freeze the late fees, penalties, and premiums building up. The attorney becomes the mediator. Creditors stop contacting you. The attorney also works to remove any misleading, unsubstantiated, or incorrect items on your credit report. With the debts, attorney and creditors establish an agreed payment, usually a lump sum. It is possible to reduce it as much as forty percent of the original debt. One important thing to confirm with your attorney is that he will negotiate removal of any negative listing from your report. This gives you a chance to restore credit ratings. Planning for your future can begin.

Remember that debt settlement is generally available only for “unsecured loans”: credit cards, department store cards, or medical bills. Debts on mortgages, student loans, alimony, and child support are “secured loans” that are usually not solvable with debt settlement.

The debt settlement attorney network is filled with people who specialize in these problems and will work to clear your record and get you back on your feet. Your record may still retain words like “settled,” “settled as agreed,” or “paid as agreed.” But this is usually much more desirable than bankruptcy.

Bad Credit FHA Home Loan Readily Available

Chava — Tue, 15 Dec 2009 11:05:25 +0000

In your search for home loans, either to buy a house or refinance a mortgage, you may feel overwhelmed with where to begin. As FHA home loans is a fairly well known company, it’s a good one to investigate. Getting your toes in the water will make comparison shopping easier. Even from their website, you can collect plenty of information about home loans of all types for all people. One of the specialties is their bad credit FHA home loan. You can get a free credit report, too.

The basic FHA home loan requirements make homeownership a possibility for more people. For example, their minimal down payment and closing costs:
➢ Down payment less than 3% of sales price
➢ 100% financing options available
➢ Gift for down payment and closing costs allowed
➢ No reserves required
➢ FHA regulating closing costs
➢ Seller can credit up to 6% of sale price toward buyer’s costs.

Credit qualification is easy on FHA home loan guidelines:
➢ Minimum FICO credit score of 620
➢ FHA will allow a home purchase two years after a bankruptcy
➢ FHA will allow a home purchase three years after a foreclosure

Easy debt ratio and job requirement guidelines:
➢ Higher debt ratio than other programs for home loans
➢ Less than 2 years on the job
➢ Even self employed individuals can apply

There is a FHA home loan program for just about everyone. FHA makes programs to suit all potential homeowners; first time buyers, second time buyers, multi family homes, single family homes. Special FHA home loan rates are available for teachers and officers, as well. Programs with either a fixed or adjustable FHA home loan rate are possible.

The FHASecure Loan is the prime choice of bad credit FHA loans. If you behind on mortgage payments, are facing foreclosure due to raised interest rates, or have little equity on your home (or none), then this is the program to consider. In these circumstances, consider the FHA home loan refinance guidelines:

➢ The interest rate on your mortgage must have reset between June 2005 and December 2009
➢ You have 3% cash or equity in the home
➢ A good credit history of timely payments before the rates expired and were reset
➢ Sustained employment history of past 2 years
➢ Sufficient income to make the FHA home mortgage loan payments
➢ The new mortgage loan can’t exceed FHA home limits.

If you meet these guidelines, then it is time to request more information and application documents. Get an FHA home loan appraisal done and see what the company can do for you. It may very well be that this is the answer to your bad credit mortgage loan problems.

Mortgages For Bad Credit: A Real Possibility

Chava — Mon, 14 Dec 2009 11:16:32 +0000

In the United States and around the world, real estate investments have traditionally been known to as secure and lucrative. In the economic crisis, buying real estate is not as popular. However, some people specifically advice buying real estate at such a time with the expectation that as soon as the crisis has cleared, the investment will pay off tremendously. For people who foresee that financial curve, but have a low credit score, purchasing real estate can be problematic. Finding mortgages for bad credit is not necessarily an easy task.

A mortgage is a secured loan. This means that the loan is given by the creditor with the property as collateral. If the borrower does not make payments on time, the creditor can claim ownership of the real estate. That is serious circumstances. And that’s you may think it will be difficult to find mortgage loans for bad credit.

Reconsider. There are subprime lenders who thrive on this business specifically. By securing mortgages for people with bad credit history, these lenders can make a fortune on fees and even, perhaps, the hope that such customers will ultimately have to forfeit the property. If the borrower has a history of not making payments, perhaps the pattern will continue.

There are those who have already established yourself securely and are able to make loan payments, yet still have a low credit score since too few years have passed since their “bad time.”

For these people, mortgage companies for bad credit are a dream come true. Finally, someone will give them a loan. They can make the lucrative investment. Mortgage rates for bad credit are fairly low, so it will be a loan reasonable to pay off.

The major precaution to take is in deceitful advertising. Illegitimate companies may seem to offer incredible deals on mortgages loans for people with bad credit, but their long term assistance is…well, nonexistent. You need to find a lender who has experience. A good reputation and years in the business are imperative. Perhaps most importantly, make sure that this company will report your on time payments. Without this last detail, your credit will never improve. A reputable mortgage company will help you climb into better credit scores.

Last, but not least, absolutely read all the terms and conditions on your mortgage for bad credit. You can purchase a home with bad credit, but you need to know exactly what you’re getting yourself into. Fine print is a must. If there is something you don’t understand fully, ask. Take control of your financial situation. It’s the only way to economic success.

Low Credit Refinance How To’s

Chava — Mon, 14 Dec 2009 10:45:15 +0000

At this point, everyone is looking for creative ways to save themselves some money or make more money available to themselves. Refinancing your mortgage may be the way to go, if the money you’ll save with the new loan is worth the refinance rates. The problem is that, especially when applying for a low credit refinance, you can get quite a shock at how much refinancing can cost. You may begin to wonder, “Can I refinance with bad credit at all? Are those incredible TV ads total scams?”

The real solution is to shop around. There are a number of “subprime” lenders who have opened businesses specifically for people with poor credit. They hope to collect massive fees from you, however, so be cautious in taking loans from them. Read the fine print. What you want to find is a bank that gives good mortgage refinance rates to people like you. It will take time to do all the comparison shopping, but someone is going to give you the best rate on the best deal for your loan. It is possible.

One way to do a quick series of comparison shopping is on a site like LendingTree. The Lending Tree runs a number of searches for you, and you can specify a search for a low credit score refinance. Other online mortgage lending companies will do similar searches for you. With these tools, you’ll at least be on your way to a better loan.

What you really want to know when you get a great sounding loan offer are two things. Firstly, that this is a legitimate lender. Getting stuck in financial swamps because of a scam loan is definitely the wrong way to go. Secondly, you don’t just want to do a poor credit refinance; you want to raise your credit score and get out of this mess entirely! For example, make sure that this lender is going to report your on time loan payments to the banks. Get yourself off the blacklist!

Of course, the most important thing is to work yourself into a situation where you can be paying your loans and your debt bills on time. Once you’ve found someone to give you a bad credit refinance, don’t sit in the back seat for a leisure ride. Take control of your financial situation. Find a legitimate credit counseling organization to advise you through the quagmire. Eventually, you’ll be able to live without the stresses of debt and anxiety of poor credit. That is a great long term investment.

Purchase Home With Bad Credit? Yes, You Can!

admin — Thu, 10 Dec 2009 19:38:48 +0000

If you have a history of bad credit, the idea of buying a home might seem out of your reach. Bankruptcy, foreclosure, unpaid credit card bills… none of those seem to be the kind of things that lenders want to hear about. And they aren’t. But still, if you’re trying to purchase home with bad credit, know that it is possible. While it might be more difficult and might cost more than if you were to have a pristine credit history, it can still be done.

The first step in securing bad credit mortgages is to know just how bad your credit is. Specifically, whether you’ve had a bankruptcy or not. And if you have had a bankruptcy, whether that included a foreclosure or not. Lenders take foreclosures very seriously, and will be a lot less likely to give you a mortgage if you have one in your credit history.

But there are thousands of couples that manage to purchase homes with bad credit history that includes both bankruptcy and foreclosure. One option is getting an FHA loan. If you go this route, you will have to wait some time. The waiting period after a bankruptcy is two years; if you have had a foreclosure it will be three years.

When applying for an FHA loan, its not so much your actual credit score number that will make the difference, but what is behind that number. Your credit report will be carefully scrutinized to see what the reasons for your poor credit are, and those reasons will determine whether you will receive the loan or not.

If you are unable to get approved for an FHA loan, then there are a couple other options for you to consider. These are often overlooked by people who are trying to figure out how to purchase a home with bad credit, but they are options you should think about. These are seller financing and lease-options, both of which are a step away from the more traditional “take out a mortgage” solution. While these two options are often confused as being one and the same, there are some basic differences.

When you are buying a home that is seller financed, you are basically taking your mortgage out from the seller instead of a bank or other financial institution. In a lease-option, you are renting the home, but you have an agreement that states that you may buy the house at a certain date, for a lower price than it would normally sell for. While you can back out of the deal, you will have to pay a penalty if you don’t buy, which is usually around $10,000.

If your bad credit history does not include a bankruptcy or foreclosure, you will be in much better shape. You are very likely to get approved for an FHA loan, which is most likely the best route for you to take. If you are not approved, you can try to get a bad credit mortgage from a bank. Since you don’t have a major deterrent like bankruptcy or foreclosure behind you, most banks won’t have a problem giving you a loan.

There is one thing that you should consider though. If you do take out a bad credit home loan, you will end up spending a lot more in interest than if you had a better credit score. It may be very much worth your while to work on increasing your credit score so that you can obtain a mortgage at a better interest rate.

So can you purchase a home with bad credit? Yes, you most definitely can. Whether you simply have a low credit score or have gone through bankruptcy or foreclosure there are viable options you can choose to become the owner of your own home. You will need to decide which is the right path for you, be it an FHA loan, a seller financed home, lease option, bad credit mortgage, or simply waiting a bit of time and working on improving your credit score.