Tag Archives: bad credit
Home equity loan: Access the equity built in your home
Taking home equity loans depend on the current needs and desires that prompt you to go for home equity loans as the first choice. Home equity loan has become a fast-track way of paying down debt consolidation, for home improvement, for higher education, unexpected family emergencies, medical expenses, etc.
Home equity loans are secured against the equity in your home. Home equity is the sum total of two things:
The down payment and the monthly repayment that the borrower i.e., the homeowner has made against the total mortgage balance on his or her home.
The amount with which the property has appreciated in price will also affect the homeowner equity.
Many of us think that for taking home equity loans, you will have to sell the house. But its absolutely wrong. Being a homeowner, you can take home equity loan without selling your home. The value of your home will determine the loan amount and the rate of interest. If you want loans at low interest rate, you will have to offer high equity collateral.
In Home equity loans, bad credit report does not make too much difference. Bad credit is common now-a-days. But, having a good credit record can definitely fetch you loan at comparatively low rate of interest.
Once you have calculated the value of your home, its now time to apply for the loan. For applying home equity loans, you should bring with you the credit card or some other document for identity purpose. Lenders offer home equity loans with competitive rates on interest. So, market survey is a must. Choose the lender who provides you the best loan deal.
Your Guide to Bad Credit Car Loan Financing
If you plan to get a car loan yet apprehensive because of your personal credit standing, a bad credit car loan is just what you need. Although consumers with a high credit score can get approved by any lending company, consumers who have bad credit history may find it a big challenge.
However, do not let your credit score set you back from acquiring a car loan with a good deal. Although bad credit car loans have higher interest rates than car loans for good credit, you still deserve to be treated with dignity and fairness. Do not predatory lenders take advantage of you just because you have poor credit rating. Below is a short guide on how to find the right bad credit car loan:
Explore your options. You can research online for potential car loan lenders. Many lending companies offer free pricing quotes from their websites so you can compare different bad credit car loan deals. You can use these quotes to do comparisons before making a final decision.
Check out car dealers. You can find car dealers that offer car loan financing, especially for consumers who are credit challenged. Dealers often use this strategy to increase their sales or to reach their sales quota for a certain time period.
Although you can try to get financed by a car loan dealer, you need to make sure that you will be dealing with a legitimate company. Some dealers may try to take advantage of a consumers poor credit standing by imposing high interest rates and fees. Before signing up for a deal, compare several potential dealers to find the best offer.
Check your personal credit report. Even though you are aware that you are credit challenged, its important to know exactly where you stand. Why, you may ask? Some lenders or car dealers may lead you to believe that you have a lower rating or that you cannot qualify for a lower interest rate because of your credit score.
Even with imperfect credit score, remember that you should always try to negotiate for a more affordable deal. Order a copy of your credit file from each of the three credit bureaus and bring a copy with you when meeting with a potential car loan lender or dealer. This way, no one can tell you differently about your personal credit rating.
Use the loan to rebuild your credit. While this may not be the best time to apply for a car loan because of your credit, you can make the most out of the situation by using your bad credit car loan to improve your credit score. This can be achieved by being timely with your payments from the beginning until the completion of your loans term.
Aside from your car loan, make sure that you maintain a good record or impressive payment history with other creditors. After six months or so, check your credit report to see your progress. Through consistent payment, you can surely improve your credit one payment at a time.