Tag Archives: credit score
Home Equity Loans without Equity?
Even if you havent built any equity on your home yet or if you need more money than the amount you have built on your home, you can get a 125% home equity loan that will let you get a quarter more money above your home value.
This means that if you just bought your home and you financed 100% of its value, you could still get 25% of its value from a home equity loan. If your home value is $200.000 this implies that you can borrow up to $50.000. If you have already paid 10%, you could borrow $70000 and so on.
Loan Requirements
In order to qualify for this kind of loans you need to meet certain requirements. Requirements are mainly associated with your credit score and history. Nevertheless, each lender has its own requirements and you can always consult with them weather youll be able to get a loan or not. Bear in mind that your credit report will be pulled so you might want to check everything is in order before applying as you may get declined and this will affect your credit score even more.
Additionally, your credit score will not only determine your eligibility but it will also establish the loan amount youll be able to request, the lending schedule and the repayment schedule. You wont always be able to receive the full loan amount in hand; you may get the money in 3 or 4 separate installments.
Some lenders require that you spend a certain amount of time living in that home prior to granting the loan. This period of time is not fixed and depends on your credit score and on the lender; some of them do not require it at all. But normally two months residing in the property is the minimum period of time required.
As regards to appraisal, most of the time, it can be bypassed. This is due to the fact that property values tend to be stable over small periods of time, and chances are that if youve bought the property or refinanced within a small period of time, theyll use the value concealed in that contract in order to calculate the new loan figures. This is almost always true if youve bought your home or refinanced within twelve months.
Perfect for home improvements
This kind of loan is a great option for those who didnt have enough money to buy a home and undertake house improvements at the same time due to the lack of funds. With a 125% Home equity loan you can get the finance needed to make house improvements without having to pay for high interest personal loans.
So if you need the extra cash and youve made up your mind, just search the internet for 125% home equity loan lenders and request loan quotes. Compare fees and interest rates, and once youve decided which option is best for you, apply for the loan. In a matter of days youll get approved and you will be able to get started.
How To Get A Good Credit Score
When a person goes to the bank for a loan they must be ready to present a good credit score. This is because with a good score, approval is fast. If one has a bad credit score on the other hand, their loan can get denied. Some lenders will approve the loan but only for bad credit loans. Now bad credit loans have high interest rates and at times require a security pledge. These are just plain hassles without a doubt.
So how can someone get a loan when its required, without all these hassles? and what can be done in order to avoid a bad credit history? There are a few ways in which to do so.
Paying On Time
First and foremost, pay dues on time. It doesnt matter whether they are utility bills or credit card debt. On time payments result in a good score while late ones result in a negative score. On time payments, however, are only possible when ones finances are in control. One may find it difficult to keep up with their dues if they are short of cash. Therefore budgeting and organising finances first allows someone to plan for bills once they arrive.
Make Use of Credit
Second, one must use a line of credit. Credit scoring is based on the proportions of a credit limit versus the persons outstanding balance. When someone frequently uses cash there is less room for debt. However, a credit score can become stagnant. This means credit bureaus don’t have any credit reference to score an individual. So although one should minimise credit card use, it doesn’t mean stop using it entirely, nor does it mean they must max it out.
Maxing out a credit line is one of the fastest ways to garner a negative score. One should only use their credit card wisely. Wise charges include charging big ticket items, balance transfers and low interest rate purchases.
Double Check for Discrepancies
The next great way to increase a credit score is through being vigilant regarding credit reports. Unfortunately, lenders arent always accurate in reporting to credit bureaus. Additionally, credit bureaus themselves can input errors in the report. Thats why an individual must always check his or her credit history in order to notice such disputable cases. And when they do, this can be reported to and corrected by the credit bureaus. It may seem insignificant but small corrections in a credit report can greatly impact ones credit score.
Building a good credit score is not easy. A person must be patient, diligent and wise in his finances. In time, they will see improvements in their credit score. When this happens only then can one apply for a fast cash loan and get credit cards without hassles.