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Posts Tagged Credit History

Pros And Cons Of Instant Approval Credit Cards

Jan 18

Posted by admin in Credit, Finance

Instant approval credit cards have become increasingly popular. With the rushed lifestyle many are living and the need to get things done quickly, it is little wonder more and more people are turning to instant approval credit cards. But, are instant approval credit cards really so great? Furthermore, are there any drawbacks or things you need to be aware of before applying for an instant approval credit card online? The answer to both of these questions is yes, so let’s weigh the pros and cons of these types of cards.

Pro: Instant approval credit card online applications can get a card in your hand quickly.

For those needing the flexibility and freedom of a credit card right away, the fact that an instant approval credit card can take as little as one to two weeks to arrive in your mailbox is a definite plus. Regular credit cards can take up to eight weeks to be processed and sent to you. If you have a project you want to get started on right away, a vacation you want to take soon, or bill that need to be paid quickly, you simply don’t have eight weeks to wait.

Con: Not everyone gets their instant approval credit card right away.

Although instant approval credit cards are billed as “instant approval,” not everyone qualifies quite so quickly. In fact, if you have poor to mediocre credit, your instant approval credit card online application may be put on hold for a few days while the lending company looks into your credit history a little more thoroughly. In addition, instant approval is not the same as guaranteed approval. Therefore, usually only those with an above average credit history will be instantly approved. Of course, an instant approval credit card will still most likely arrive to you much quicker than a traditional credit card, but you might be disappointed to learn you have to wait a bit longer than you originally thought.

Con: Instant approval credit cards often have a higher interest rate than regular credit cards.

While not always true, instant approval credit cards usually have a higher interest rate than regular credit cards. This is how the lending company compensates for expediting the application process. It is also the price you pay for the convenience of instant approval. When looking for an instant approval credit card, be sure to explore all of your options to find one that does not have a terribly high interest rate.

Pro: Instant approval credit cards often have a special introductory rate.

While many instant approval credit cards have a higher interest rate than standard credit cards, they often have a special introductory low APR. This special rate can be as low as 0.00%. Financially, the best move you can make is to receive one of these cards, take advantage of the introductory rate, and pay off the balance in full before the interest rate kicks in. If you want to still use the card for purchases beyond the introductory period, be sure to pay the balance at the end of each billing cycle.

Con: Some instant approval credit cards need to be secured.

A secured instant approval credit card is one that you send money to ahead of time. Therefore, you are never actually borrowing money from a line of credit. Instead, you are using your own money. This type of credit card is really more of a debit card that allows you to spend from your own account. For those with poor credit, however, a secured instant approval credit card can be a great way to rebuild credit or to establish a credit history.

Pro: Instant approval credit cards look just like other credit cards, even if they are secured.

No matter what type of instant approval credit card you obtain – whether secured or unsecured – it looks the same as a regular credit card. Therefore, no one will know that your card was instantly approved or secured, which could potentially leave you feeling embarrassed.

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What Does Your Credit Report Say About You

Jun 11

Posted by admin in Credit

Years ago as a youngster I remember watching an episode of one of my favorite sketch comedies, in this particular episode a woman was about to venture out on a blind date.

When her suitor arrived at her door she was pleasantly surprised to find a handsome man glancing back at her. Knowing that he?d successfully made it past the first hurdle judging by her positive areaction, he confidently started to joke with her. He then thoughtfully placed her coat around her shoulders and before the slipping out the door a fax started to arrive. She began to read it, her smile fading by the second.

It was a background check on her date. She found out that he?d been married 3 times, relied on all his previous wives for alimony, was up to his ears in debt and served prison time for fraud. She ended the date before it even began.

Although only a comedy sketch, it does run along similar lines of a credit report, your next date won?t have privy to such intimate details of your financial situation, however, your bank or credit lenders do.

Why Is So Much Importance Given to Credit Reports?

It gives potential lending institutions a snapshot into your personal financial history. From this they can determine how you handle your current debt, if you pay your bills in a timely manner, how many loans you have and how much you owe. It also reveals if you?ve had troubles with other lending institutions in the past and if it required the assistance of a collections agency. This can be manifested as a negative mark against you in your report and adversely effect your credit rating.

The whole point of the credit report from a lenders perspective is to see if you?re a prime candidate to lend money to and the likelihood they?re going to get that money back, period. In fact any lending institution will know if they\’re going to approve you within just 5 minutes of looking at your credit report. Imagine that, a life altering decision in the time it takes to cook an egg.

Things that Can Go Against You

If you have a sketchy payment history, this can be interpreted as negative from the eyes of the lending institution and be seen as a risk to lend you money.

A high debt to income ratio. All they?re concerned about is getting back the money they borrowed you with extra interest added on. The more you owe in relation to how much you make is a big concern for lenders as that means you?ll struggle to meet your weekly/monthly commitments to them.

Debt counseling also shows up on your credit report and raises concerns that you?ve had difficulty in managing your finances. Try to fix your credit as much as you can on your own. Carefully budget to catch up with lagging payments. If you need credit counseling then only do so as a last resort.

How to Beef Up Your Credit

You can strengthen your credit simply by disputing charges you?re not responsible for and getting those negative marks on your credit report removed, why tolerate blemishes tarnishing your credit score when you don?t have to? Write to the credit bureau and challenge any charges (accompanied with proof) you didn?t incur. It may take a few attempts but persistency is the key.

Create history. Establish a predictable pattern of payment by building a regular payment history. Banks and lending institutions like consistency, it means reliability and shows that you?re good at paying your bills.

Embrace your credit report. It pays to immerse yourself in your finances at least twice a year, that way you can track your own progress and quickly catch any inconsistencies or errors and correct them. This way you know your financial status and there are no surprises when it comes time to apply for a loan.

Annette Miller knows for a fact how frustrating being in debt can be, having formerly been in debt herself she is passionate in helping others break free from theirs and has dedicated a blog covering topics ranging from Debt Consolidation to Budgeting and Finance. http://www.debtreduceinfo.blogspot.com

Writen By : Annette Miller

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Lying About Your Income Might Get You Nowhere!

Apr 14

Posted by admin in Personal Finance

Obviously nobody would like to resort to lies in order to get mortgage loans. However, you could be a self-employed professional with a low income. If so, you don?t make a very attractive prospect to lenders and financial institutions dealing in mortgage loans.
But at the same time, you could be in possession of considerable assets with a perfect credit history, as well.

Struggling To Get Approved

Therefore you may be under the impression that you make the ideal candidate to qualify for a no-ratio mortgage loan. But when you go to a mortgage broker, you find out that you only have a chance of getting a lower interest rate with a stated income loan. You might have to invent a fictitious income figure on the application, which is large enough to qualify for the lender?s requirements.

You may be hopeful that perhaps the lender is not likely to follow up on your income details. Eventually it will probably turn out that the mortgage lender was right. There are certain facts about mortgage loans that you need to know which you are not likely to find out about from your broker.

The risk involved in basing your mortgage loan application on lies is directly related to the chances of getting caught. But it is also true that giving a misleading picture on your income is rather easy to get away with. However don?t ever forget that to your mortgage broker the risk doesn?t matter as his role is limited to entering the number provided by you. Therefore it isn?t himself who is in danger of getting caught but you alone.

Stated Income Loans

A stated income loan is meant mainly for self-employed people including you who encounter difficulty in documenting their income. The usual procedure is that the lender qualifies you based on the income you state on your application. Going by the assumption that the lender takes your word for it and believes what income you claim to have, the cost of a stated income mortgage loan will be lower than a no-ratio loan. Never forget that on a no-ratio loan too the lender will qualify you based on your income.

In the case of mortgage loans, the extent of risk in a false income being declared on a stated income loan is quite simple. At the time of closing, the lender may ask you to sign an authority letter to grant access to your last two tax returns from IRS. Usually most lenders will do spot-checks on around 10% of all loans during their own quality control process. Should you happen to be selected for the spot check and discrepancies discovered in the figures, you could find yourself in a soup. The lender has the right then, to insist on immediate repayment of the loan or resort to legal action.

Even if your broker sounds very confident about the chances you stand, it is nevertheless a risk you have to be prepared to face.

Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders.
In her website Badcreditloanservices.com you will find more useful tips and interesting financial articles on this and many other related topics.

Writen By : Mary Wise

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How Your Credit History Can Say A Lot About You

Mar 25

Posted by admin in Credit

Your credit history says it all about you. All financial decisions are affected by this history. It tells a company whether they should consider you as a potential client or not. It is important that you understand your credit history and what it means.

Your credit report is an open book of your financial life. It reveals all your dealings – good or otherwise. Your score which is based on this report is called the FICO score and a high FICO score ensures a good report. The three major credit bureaus who do the reports are Experian (formerly TRW), Equifax and TransUnion. Lenders contact these agencies for a copy of your credit report.

Since your score is of paramount importance in your financial world, it is important that you read it yourself and keep yourself up-to-date and ensure mistakes if any, are corrected. A less than good score will result in you being rejected for a credit card or if you do get one, it would come to you with a higher rate of interest. Problems have this knack of remaining on your report for a long time even after being sorted out. Since your payment history is what influences your score it is imperative that you maintain a good payment schedule and stick by it.

Your total outstanding debt is also a factor affecting the score. It would include the outstanding on loans, card limits, other card balances etc. All these have a negative effect on your score. One might think then that it better to have no credit history, therefore no negative impact. But this line of thought is erroneous. If there is no history then the lenders have no idea on what to base their decisions. So once again you are considered a risk.

Credit bureaus have to, by law, give their clients a copy of their history though they charge for the FICO score. Call any of them for details.

For more information on the 3 Major Credit Bureaus or obtaining Secure Credit Cards visit www.Yes-Credit-Cards.com

Writen By : Jill Kane

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Improving Your Credit History

Mar 20

Posted by admin in Credit

Improving your credit history is not an easy task as you would imagine as it takes some time to build up a good credit history. The credit score is the main factor that determines whether or not a person can be approved for a mortgage loan. Therefore, improving your credit history is important even if you are not planning to apply for a loan.

Credit scores are calculated as follows. The payment history is given a weight-age of about 35 percent. The total amount owed makes up about 30 percent of your credit score. The next 15 percent deal with the age of your credit history. Just by considering these factors, you will be able to calculate your credit scores.

The best method to have a good score is to ensure that you make your payments on time. If you are too busy, then make certain your bills are paid on time by using an automatic payment scheme. Also, make sure not to open several accounts within a short period of time. Another important factor is to keep your balance low so that that the balance and the total amount of credit available on the loan remain in proportion. Always try to pay more than the minimum balance on credit cards and loan balances.

Constantly check your credit score online with an official company. This will help you to determine what is to be done in order to increase your credit score. Another method of improving your credit history is to open a new account having high credit limits and keeping a low balance on it. Lastly, open a savings account and budget your money accordingly so that you can use the extra money for emergencies.

There are many companies that maintain that they can make dramatic improvement in your credit history. But they all charge a fee of about $2,000 to $2,500 per account. And for getting a credit score greater than 700, you need three to four accounts. Therefore, it is better to make the improvements yourself rather than going for the help of a company.

Credit History provides detailed information on Credit History, Credit History Reports, Credit History Repair, Bad Credit History Loans and more. Credit History is affiliated with No Credit Check Loans.

Writen By : Richard Romando

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Student Loans With No Credit History

Mar 20

Posted by admin in Credit

A good credit history is an essential prerequisite for applying for a student loan. A student with a good credit history always stands in good stead to qualify himself for a student loan. So, it is always advisable that students who go for loans keep their credit within limits.

Many lenders provide loans to students with no credit history. There are two types of student loans namely, federal student loans and private student loans. The former are backed by the US government (coming under the department of education?s federal student aid programs) and are approved based on the financial need of the student, whereas the latter are considered as personal consumer loans. Refinancing of federal student loans is possible at far lower interest rates than private loans. Private student loans are approved after checking the credit history of a student or his parents.

Usually, a student loan with no credit history does not require any income or a co-signer. But this is sanctioned only for a small credit limit. To get larger credit limit, the help of a co-signer is essential. Before taking student loans with no credit history, compare the interest rates and the fees from different lenders. You can get student loans applying online also. The documents needed include proof of your identity, and your place of employment. It is better to look for loans based on your job history. It is advisable to have a thorough check on the terms and conditions of a student loan before signing the deal.

Credit History provides detailed information on Credit History, Credit History Reports, Credit History Repair, Bad Credit History Loans and more. Credit History is affiliated with No Credit Check Loans.

Writen By : Richard Romando

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Rebuilding Your Credit History

Mar 20

Posted by admin in Credit

Rebuilding credit history is very important and an indispensable task for individuals with bad credit reports. Credit report is of paramount importance when it comes to big loans. Only after checking your credit report, lenders determine whether a loan can be sanctioned to you. Also, credit report matters a lot when rebuilding your credit history. It also plays an important role when you apply for a car loan, or a mortgage loan. If the credit report is bad, then there is the possibility that your loan is denied.

If you are a person with a bad credit report, then your first priority should be to rebuild a good credit history. Rebuilding credit history makes it easy for you to get any credit you need at later stage.

For rebuilding credit history, you have to establish a concrete financial plan and set a timeline. One way to rebuild credit history is to make a budget, which will help you to be on track with your goals. Once you are able to manage yourself according to the budget, check your credit report frequently and make necessary corrections. Be careful not make any further damage to your credit. Stop using credit cards for making purchases. Also, take care to make all payments on time.

It is a good idea to obtain written recommendations regarding good payments from landlords and utility companies. In addition to this, you should also start building a savings account for emergencies. When your credit turns out to be in good shape, one method to strengthen the rebuilding of your credit history is to apply for a credit card. Though there are standard credit card and secured credit cards, and it is better to apply for a secured credit card. Thus, your credit will be automatically rebuilt thereby making your financial situation excellent.

Credit History provides detailed information on Credit History, Credit History Reports, Credit History Repair, Bad Credit History Loans and more. Credit History is affiliated with No Credit Check Loans.

Writen By : Richard Romando

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