Tag Archives: credit rating
Learning About Cash Back Credit Cards
Having a credit card that offers cash back or certain advantage always sounds like a good idea. What could be better than getting cash back on all the purchases that you make with your credit card? It sounds too good to be true, doesnt it?
Well, there are cards that give you free cash, but it is usually only around 1% cash back. However, free money is free money, right? Well, sometimes.
If you like to buy a lot of things in one month, this kind of credit card probably sounds great to you. However, you need to keep in mind that they are not going to give you cash back on every purchase that you make. Even if they claim to give you cash back on every purchase, they will only give you up to a certain amount per transaction. The company also has a strict limit on the amount that they will give back to their customers. If you read the little, bitty print on the form that you signed, you will see a paragraph with their limits in the terms and agreements.
This is another way to try to draw in new customers for these companies. It is a good credit card to have and sounds great in theory, but they will have to check your credit rating before they will give you their card.
Research different credit card companies to see what they are offering. You may be surprised to find a cash back credit card that offers you just what you need and want with a high cash back percentage, few limits on the amount they will give you back, and instant cash deposits when you make each purchase with their card.
What should your decision be? If you have a good credit rating, then this card is a great option for you. Research different card companies there are cards out there that offer you up to 3% cash back and impose very few limits. If, however, you have a bad credit rating, you may want to find a credit card that will help you rebuild your credit.
Although these credit cards seem like a great thing to have, some companies will need your credit rating to be great too. However, there are credit card companies that offer these cards to people with a low credit rating to help them rebuild their credit. Research all of your options.
Smart Tips for Subprime Loan Borrowers
After submitting a loan application to your chosen lender, you have been informed that you are not qualified for an approval due to a poor credit rating. Obviously, you have submitted your application to a lender that only accepts customers with good credit. Perhaps you thought that your credit rating is good enough to pass. Unfortunately, it wasnt. So, what can you do?
If you really need to acquire a loan due to a financial emergency, then you can look for a lending company that extends loans for people with imperfect credit rating. These lenders are also called subprime lenders and they are more lenient in approving loans compared to other loan providers.
Thus, before submitting a loan application, check your personal credit report and if your credit score is 620 or below, you should look for loans in the subprime category. Nevertheless, some subprime loan companies may take advantage of your situation and charge you with high interest rates and expensive fees. If youre not smart with choosing your lender, you could end up with an unreasonable loan deal.
Listed below are practical tips that are specially intended for people in search for a bad credit loan:
Check your credit report. Order a copy of your report from each of three major credit reporting agencies (Trans Union, Experian and Equifax ) so you can personally check your credit standing. Check your report for errors which can hurt your score even more. In case there are errors, send a letter of dispute to the credit reporting agency that issued your report to have the incorrect items corrected.
Compare bad credit offers. Of course, subprime lenders offer different rates and to find the most reasonable deal, you must spend time comparing your options. Use the internet to check out the available loan programs especially offered for people with bad credit history. Expect subprime loans to have higher interest rates than loans that require good credit. Nevertheless, you should never settle for an unreasonable deal. By investigating your available options, you can be assured that you can choose a bad credit loan with the lowest possible rate.
Carefully evaluate your loan contract. Spend time reading and understanding each and every statement in your loan contract. Check for hidden fees as well. If there are terms or phrases in the document that you do not fully understand, do not hesitate to ask for a clear explanation. If the lender cannot give you a straight and clear answer to your questions, its best to find another.
Improve your credit score. Use your subprime loan to work for improvement. By submitting your monthly loan payments religiously on time, you should be able improve your credit score within six month after your loans approval. Order a copy of your credit report from the three credit bureaus to make sure that you are doing progress. Continue with your good payment habits not only with your lending company but with all your other creditors as well. After a year of consistent payments, you should be able to regain good credit history and refinance your loan to enjoy lower interest.