Do you need a Loan?
January 4, 2009 by Credit Specialist
Filed under Loans
Your credit rating is very important when it comes to your financial future, and if your credit rating is damaged then you will find it increasingly difficult to get finance in the future, with many lenders refusing to offer it to you and those that are able to offer charging a fortune in interest. This is why it is important to keep your credit rating in check, or if it has already been damaged to ensure that you take the necessary steps to start improving it.
Sadly, it is far easier to damage your credit rating than it is to repair it, but there are certain products and services available to help you to improve it, including loans that cater specifically for those with poor credit. If you have good credit and are a homeowner you will find that you are eligible for both secured and unsecured loans providing you meet the eligibility requirements in terms of income, etc. Providing you keep up with repayments on your loan, as well as keeping up with other financial commitment, you can maintain a good rating. However, if you have damaged credit you may find that you can only get secured credit, and in order to improve it - and to ensure that you do not risk losing your home - you will need to ensure that you make your repayments on time.
Another thing to remember about loans in connection with your credit rating is that each time you apply for a loan it is logged on your report, and every rejection that you get will knock your credit down further. Those with bad credit already have an increased chance of being turned down for loans, and each time you are turned down the chances of being turned down again rise. This is why it is important to resist the temptation to make one application after another for loans. If you are turned down for a loan you should check it and try and determine where the problem lies. You should also wait a reasonable amount of time - at least three months - before reapplying for any finance.
If you are turned down for a loan and do not know of any problems that you may have with your credit you should order a copy of your report and check over it. Mistakes do occur, and a simple human or computer error could be adversely affecting it and making it impossible for you to get a loan. By identifying any inaccuracies you can quickly get them rectified to restore your good credit and reduce the risk of further loan rejections in the future.
If you are in need of fast cash, then maybe a payday loan is for you.
Different type of lines of credit
December 28, 2008 by Credit Specialist
Filed under Loans
There are three main types of lines of credit. This article will explain the distinction between the three. Simply put, a line of credit is any financial product you may have which does not have a fixed period of time in which you have to pay it off. You often will not have a minimum monthly payments associated with this and you are able to pay more to pay down the principal faster. The first type of a line of credit is a credit card. This card can be used for any purpose and often is associated with higher interest rates. You can receive rewards using a credit card and the other two types of lines of credit which will be explained here do not offer rewards normally. Rewards can include points to a particular company’s products, cash back, plane tickets, or new cars in the case of GMC for these different types of cards. Interest-rate on credit cards will be higher with the other two types of lines of credit and credit cards are not put in a good light due to the balances many people keep on them. The second type of line of credit is a signature line of credit. This can differ from a credit card because these have a higher limit than a credit card and also have a low interest rate (normally). Many people use a signature line of credit simply for emergencies or if they want to lower the interest-rate they pay on their credit cards. The final type of line of credit is the home equity line of credit. This will have the lowest interest-rate attached to it because it is secured. What that means is that if you do not pay back the line of credit, the bank has recourse to take the collateral which is your home. There can be a tax benefit to using a home equity line of credit. Think about the different ways each of the lines of credit can be use. This can help determine which type you may want to use. Most people will often have a couple of the different lines of credit in place at a time.
Refinance your debt
December 2, 2008 by Credit Specialist
Filed under Loans
LionSaves is the first website to give homeowners customized debt consolidation options with no contact info required. It’s personalized, yet the user remains anonymous. Founded by Mike Sweeney in Denver, CO, this interactive site is a free tool for homeowners to discover what they can save by consolidating debt.
After 12 years in the mortgage business, it became apparent to Sweeney that most homeowners didn’t realize how much can be saved. There wasn’t a website that gave this information instantly or didn’t required the user to give their contact information to be sold off to five lenders who call with high pressure sales tactics.
In the spring of 2006, the idea for LionSaves was born. By empowering homeowners with this free information, Mike believed the site would become a valuable resource. He and his wife, Christina, also envisioned the site helping people in need by making a charitable donation from each file. Clients choose which pre-selected charity will receive the donation from their file. With the full support of his wife, Mike used their savings, sold his Harley and borrowed from their line of credit to fund this new site. Working out of his basement, he spent over a year designing the site and overseeing the programming. Finally, the site launched on a shoestring budget in the summer of 2007.
With a patent pending, LionSaves has pioneered a new way for homeowners to discover instant debt consolidation options by providing real and personalized answers. Homeowners can run their own numbers, play with multiple scenarios and feel secure knowing their contact information is given only if they decide to move forward with one of the options or sign up for the e-mail alert based on triggers they set.