Mark Carolin

Posts Tagged ‘Credit Score’

If you’ve got less-than-perfect credit, you still have some options. Choosing to get your Mortgage Loan online instead of through a traditional lender may help you get that home loan. That’s because online mortgage lenders tend to be flexible, and they usually offer a variety of services and loans. Here are some of your options:

Pick a “special” loan.

If you qualify, special loans like FHA loans or VA loans tend to have more lenient requirements when it comes to your credit score. They’re designed to help people in need–primarily low-income folks or military veterans–so their criteria for approval are a little more relaxed. Many online mortgage lenders offer these types of loans.

Try using one of ABC Loan Guide’s Recommended Problem Credit Mortgage Lenders.

Accept more expensive terms.

You may be able to get a conventional loan from an online mortgage lender even with bad credit–if you’re willing to accept more expensive terms. To counter the higher risk of a bad credit borrower, some companies will impose a higher interest rate, more fees, or less favorable loan conditions. When considering this possibility, remember that you can always refinance in the future for a lower rate and better terms if your credit improves.

Clean up your credit.

Even boosting your credit score by 50 or 100 points can make a huge difference in the type of loan you’ll get from an online mortgage lender. Check your credit reports and immediately fix any errors that may be hurting your score. If possible, pay off any outstanding loans or accounts. If you went through a period of hardship–like a medical emergency or loss of job–ask to have a note about your circumstances attached to your credit report.

Trying to get a mortgage loan with bad credit may seem frustrating, but it’s not impossible if you’re willing to make a few allowances. Perhaps you’ll have to accept a higher interest rate, or maybe you’ll have to hold off on the loan for another six months. Either way, searching for your Mortgage Loan online can help you explore all the options available to you.

The prepaid credit card for Canadians is sometimes referred to as a secured card.
There are four benefits of prepaid credit cards

Guaranteed Approval credit card There are many people who are visiting this site who have bad credit, starting off new with a new credit rating and are very eager to have a guaranteed approval CC. This ensures that they receive a credit card and start their credit rating with Equifax and TransUnion. Rebuild your credit score If somebody has bad credit, they want to be sure that they can rebuild their credit score with certainty. I read a post on another site today where a fellow who had immigrated to Canada 5 years ago indicated that he was doing well financially but had no credit cards and thus no credit rating. This gentleman expressed that this was very inconvenient for himself and his family. This is limiting as without a credit score, he won’t have a chance of applying for a mortgage or car loan in the near future. Convenience of using a credit card Millions of Canadians take for granted the use of a credit card for day to day purchasing activities. Things like renting a car, or hotel room usually require the use of a credit card. Without a credit card, it makes travelling more difficult. This prepaid CC gives it users the flexibility that other people have on a daily basis. A few other points of convenience are that you can make payments online and you don’t have to carry around large amounts of cash with you. Security deposit as little as $75.00 A security deposit means that you’re guaranteeing that the credit card will be paid off. This is the part where the credit card is “prepaid”. A small security deposit of $75 makes it alot more convenient for the majority of Canadians to obtain one.

It’s important to explain here that the above is a description of secured credit cards in Canada. While these types of CCs are relatively new in Canada, the terminology “secured credit cards” may get confused and interchanged with “prepaid credit cards”.

First of all, every time you apply for a credit card, it does damage your FICO score due to the hard inquiries incurred. Typically, each inquiry will count 2-5 points against your score. However, if you apply for numerous cards at the same time, (all the inquiries will show), but your credit score will only get “hit” once for 5 points. When it comes to the use of personal credit cards, you need to keep one thing in mind. Every time your usage exceeds 30% of the available balance your FICO score will suffer. When and if you exceed 50% of the available balance, it will go down significantly. Unfortunately, many start-ups have trouble raising cash for their ideas and end up using their personal credit cards or take equity out of their homes. Their credit suffers and when its time to use their credit for other activities, they find they pay higher interest rates due to the risk, and many times get denied even though they pay their bills on time. Business credit cards, on the other hand, do not report to the credit bureaus. You can max out the available balance on a business card and your FICO score will suffer “no” ill effects. It’s that simple. This anomaly in the credit card system is not widely known, yet it is just as easy to apply for a business credit card or cards. There are two ways to get business credit cards. Using your social security number and also using an EIN.

Using your social security number is the quickest way to get cards. Approval can be instantaneous and interest rates go from 0% to 13%. However, as stated above your bureau report will reflect the inquiries. Yet in these times, the need for cash is at desperation level and it isn’t such a bad thing. Further, we have at our disposal credit restoration companies that can delete these inquiries rather quickly for a nominal fee. Get the card(s), have the inquiries removed, and no one is the wiser. Note that most, if not all, business credit card companies look for a FICO score of 650+ and an EIN number, nothing more.

Obviously, the higher your FICO score, the better the odds of approval and for higher limits. Using your EIN involves building business credit. This is done by obtaining small trade line accounts (using an EIN) that report to the business credit bureaus, and building credit over a 90-120 day period. Once you have built a Paydex score of 80+ and an Intelliscore of 75-90, obtaining business credit cards using an EIN in place of a social security number is easily accomplished. This, obviously, is a much better scenario than using your social security number but it does take time and does not satisfy your immediate need for financing.

Make no mistake, low interest credit cards are readily available from a variety of companies, but usually only to those with excellent credit ratings. However, the term low interest will be defined differently by different users as people who have worked through some credit difficulties may find that a rate they consider low may seem high to someone who has never experienced problems with their credit score.

You need to remember that credit card companies are in business to make money and when they eliminated the annual fees charged band in the 1980′s and early 1990′s, they needed other methods to produce the company’s profit. Defaults on credit card bills adds to the cost of their doing business so their interest rates on charges are designed around the possibility of a person failing to pay their bill on time.

The low interest credit cards available to one section of the buying public, deemed exceptionally credit worthy often return little profit to the card company. It is the fees generated by those with a lower credit score and the high interest rates associated with their cards that produce a lot of their income. Late fees and over the limit fees however, contribute the most profit for the credit card companies.

Other Factors Determine Credit Card Interest

However, a person’s payment history with the credit card company is not the only factor when looking for low interest credit cards. A person who has a long history of timely payments, on time, may still see an end to their low interest credit cards if they default on another payment to another company. Missing a car payment may be interpreted by the credit card company that the person is at a higher risk of missing a card payment and that cardholder can kiss his low interest credit cards goodbye.

It’s no secret that they key to maintaining low interest credit cards is to pay all the bills on time and in order to insure that remains possible, it is advised that people have no more than three different credit cards. It has been recommended that no more than two cards with low credit limits and one with a higher limit for emergencies be maintained. This will not only keep the total credit balance low, but offer a better chance that all the cards can be handled without financial difficulty.

Climbing out of a financial hole takes a lot of time and patience, but while paying off the high interest cards and their associated fees can be more palatable if the user keeps their eye on the proverbial carrots, which are low interest credit cards. After finally realizing financial liberation of the high cost cards, the person can be in a better position to continue building their score.

Prepaid business credit cards are real convenient for business use. You get to control how much money you like to have. This is better than running around with cash. Many services nowadays require some sort of banking account and in my opinion prepaid is the way to go. Don’t you hate credit cards that have so many fees? You are charged with monthly fees, over drafting fees, late fees and interest. This is a lot of money that could be going into your pocket.

Maintenance is kept to a minimal when you have a prepaid business credit card. You will never get a over drafting fee. You only spend what you have fund in your account. This is how you fund your business with your money.

Weighing The Benefits

No interest – never pay a dime on interest rates Online Bill Pay – Set dates to pay expenses automatically to avoid late fees Purchase Online – Be able to buy online or over the phone Security – You have the same protection as the major credit cards Increase Credit Score – By paying bills on time you could increase your credit score No Debt – You only spend what you fund

Applying for a prepaid card is simple and can be done from a store or even online. i recommend purchasing online as it is safe and convenient. This gives you the option to open an online account to track your balance and transactions. These cards are accepted world wide just like the major credit card. You too can be on the road to financial freedom by building you credit score with the credit builder that comes with every new account.

If you have accumulated debts on one or more credit cards, or perhaps medical bills or student loans, then it’s time to be smart and reduce your monthly payments. Government programs for debt consolidation are available to you and can be the help you need at a time when you feel pulled down and like giving up. With some education and investigation you may find that government debt consolidation may get payments down, lower interest and get your overall balance down. Yes, even the overall amount you repay may be less. Read on and uncover more about government sponsored debt consolidation while these funds are being made available to the public.

Some people do not have the information about government debt consolidation programs or else they would be taking advantage of them! It is not only advantageous for you to be able to continue your payments but it benefits the country. The more people who default by not paying their loans, the harder it will be for the country’s economy. Debt consolidation means paying a more manageable monthly payment-paying off your many loans and making just one loan payment. Ideally you want to protect your credit score and relieve the worry you may have now. Do your part by taking responsibility with the help of government relief.

The US Government has allocated funds for helping struggling citizens with monthly debt payments. When you choose to use government consolidation you do not have to pay fees up front to get started like you do with many other lending institutions. What a relief to hear also that you do not always need to put up collateral. Check out your options especially if your goal is to get out of debt for good. Don’t postpone. Help with your debts is available with a free online consultation.