Archive for December, 2008
December 28th, 2008 at 12:00am
Under Poor Credit Questions
Question:
Do most small bank branches offer poor credit secured loans for little items?
Do all bank branches offer secured loans with items such as cars? My checking account is at a small town bank composed of only three branches.
I need five thousand dollars, which is about the blue book value of my car which was paid off in 2003.
I need some cash right away for surgery not covered by insurance. I have poor credit between 595 and 645 and got turned down for all the financing and loans I have sent applications for online. No one in my family is willing to co-sign a loan, except for my mother and father who are retired. However they do not really believe in credit and thus have no credit score. They live minimally but don’t own their own property.
Would anybody know if I’m likely to obtain poor credit secured loans at a small bank with this circumstance, me with solid employment but a poor credit history and offering vehicle title as security, co-signing with a mother and father who have income but no credit history?
Will I be less likely or more likely to get one if I go to a larger bank like Wells Fargo or perhaps Chase?
Also, I’m already working towards repairing my credit rating but it will take quite some time.
Answers:
If you do not have the money to pay for the plastic surgeries, you should not have went for them.
Save money first, then purchase things.
You may find a bank that will give you poor credit secured loans on a vehicle title but will not allow your parents to co-sign.
If they are not going to loan you money without a co-signer, then perhaps wait until you have money for the surgery. If you will get sicker if you wait, the hospital will go through with it on credit and you can pay them back in payments.
Do not allow your parents to co-sign for anything because it is very damaging to them. It may even ruin your relationship with them.
By admin
December 27th, 2008 at 12:00am
Under Poor Credit Questions
Question:
Getting accepted for a mortgage with poor Credit?
I would like to get a mortgage and get enough money to pay for one but would there be any companies out there which do not give you empty promises or charge you a huge deposit or huge interest? Once I am in the mortgage ladder, i may then begin repairing my credit. My credit rating can’t be that poor as i have recently purchased a new car and was able to get credit for this.
any serious suggestions would be very much appreciated.
Answers:
Debt consolidation is one solution.
If a person wants to get out of debt right now, it is pretty simple with a debt consolidation plan.
On the other hand, it may get a bit confusing sometimes, so I recommend you get as much details as possible on the internet regarding this first,
Consult a financial advisor. An independent one that isn’t via your own bank, because they will be biased. They aren’t going to charge you for their advice, as they withdraw their commission through the mortgage lender you end up with. There are about three hundred different deals out there – fixed rate, interest only, cash back, you do not need to prove your income, and so on. Although the housing market is now stable, banks and building companies still are desperate for some business and are issuing some great deals. Best of luck.
Poor credit rating is not a huge problem when applying for a mortgage with poor credit. However you have to realize if you have a poor credit rating you will pay higher interest – that is just how it works. You are viewed as a risk and will pay for said risk. You should not expect the same rates as a person who has a decent credit rating. If you do not get a deposit and wish to have 100%, this is an additional risk and rates will be bigger. I could provide you with a mortgage with poor credit tomorrow but I am genuine about what I do – poor credit means higher interest. Every lender has fees and I have never seen them make empty promises. They either approve your application or reject it. Use a qualified, well known broker who will bill you up to one percent as his advice is invaluable and also he is independent and utilizes the whole of market lenders. If he or she does not charge, he or she most likely isn’t really good and only utilizes certain lenders. In this world, y!
ou get just what you pay for. Best of Luck.
By admin
December 27th, 2008 at 12:00am
Under Cars and Bad Credit
Question:
Can one get bad credit auto refinance?
I got myself into a very bad state. I purchased a car in May 2006 and financed it directly with the dealership. I was informed they would send me a payment book, to go home and wait on the information about the loan to be worked out, but that my monthly regular payment would not be more than 100 dollars, which is how much I was paying for the car I traded in. I waited for a long time. September rolls around, they threaten to come and take away the car since I had not paid, but they had never sent me any invoice. I go in there and the rude guy puts a bunch of papers in front of me. I discovered I had been driving with illegal tags. Our deal did not get complete until September and at that time I finally sign a sales contract, only it occurred so fast I wasn’t aware of what I had gotten myself in. I just did not want them to take away my vehicle. Anyway the dealership now has me financed at 20.4 percent interest. I have paid that for eighteen months, never missing a single pay!
ment. They have not been reporting to the credit companies.
I attempted to request it be reported on the credit reports, as a consumer and was told I could not do that and that the lender must first open an account with the companies TransUnion, Experian, Equifax. I have really been played with. The person who handles the paperwork at this dealership claims these companies informed her I had to ask for it to be added, but we know this is false.
Answers:
I am not exactly sure there is a question in here. You shouldn’t be upset about the interest or the payment amount since you signed all the bad credit auto refinance paperwork. And after waiting for four months, when the average person would of course phone the dealership after two or three weeks.
Throughout your whole rambling story, the only thing I would have gathered is just lesson learned, and be grateful the dealership DIDN’T come take your car away!
By admin
December 27th, 2008 at 12:00am
Under Credit Cards and Bad Credit
Question:
How do you purchase a home with poor credit cash, no cash and zero income?
Answers:
Search for a rent-to-own scenario. If you locate a house you would like to rent, ask if the building manager would want to sell it to you. Go into a Land Contract with him. Pay him with a check for one year on schedule before the due date.
Meanwhile, open up a few secured credit cards through Wells Fargo and Bank of America and maintain them, keeping them current. As a matter of fact, only use as much funds as you are able to pay off by the due date.
After one year you can obtain a mortgage to buy the home off of him. If you rebuilt your credit and were able to get a deal on the house, you might have the ability to borrow extra money from your financial institution to pay for your closing costs and perhaps a little cash-out.
The other way is to purchase a home from a close relative or friend for a discount. You may use the equity in the home to your benefit. Depends what your poor credit cash is like.
These happen to be the only two ways you are able to legally buy a home with no money out of your wallet.
Most critically, do research on mortgages.
You will need to work with your local mortgage broker. You can talk to one right away so you can begin taking actions to rebuilding your credit rating. You may get issues such as liens that will have to be discussed.
I agree with respect to the No Doc loan (which is basically No Income, No Job and no Assets). However, such a loan is dependent solely on your credit so if you have poor credit cash you may not even be approved for the No Doc, and if you do get it, the interest rate is actually going to be quite high. I would suggest that you get an occupation and save some money before you purchase. Or at the very minimum try to rebuild your credit.
By admin
December 22nd, 2008 at 12:00am
Under Loans for Bad Credit
Question:
Where to get a personal loan for people with bad credit?
I called cashcall and I didn’t feel comfortable with them. Please inform me of the best companies on the internet that offer a personal loan to people with bad credit.
Answers:
MY wife and I have very bad credit, and he borrowed 2,500 dollars from CashCall a while ago. What we did not know at that moment was the interest rate. I hope you are sitting down for this: 99 percent. We both almost got a heart attack. I wouldn’t recommend doing business with that company, but at the same time, I understand how it must feel to not have good credit and feel as if you have got no choice. We have borrowed several small personal loans through Finance Companies, only to end up behind again and not be able to follow through on the payments. My recommendation would be to only go with it if it’s absoultely require and pay it off earlier. It can really damage you in the end.
Best of luck!
Today the lenders have begun offering nearly all kinds of personal loan for people with bad credit record. They are also offering many new loan products specific for this group. Now people with bad credit can get similar choices as those with the decent or mediocre credit. At this moment, you can use bad credit personal loans for many things like vehicle purchase, holiday or even debt consolidation.
However, if you have some assets to put down as collateral, your fortune increases. The main reason why people with bad credit history get turned down for loans is because the lenders are scared that the people borrowing will default a second time. However, if you can offer collateral, the company lending is secure in the knowledge that his money is in decent possession. You have to attempt to meet the repayment schedule, failing which you get the asset taken away.
If you have no collateral, try to get an unsecured personal loan, which is rare for people with poor credit. It is required that your credit record should be reputable for an unsecured personal loan. On the other hand, some lenders can accept your situation due to uncontrollable reasons.
By admin
December 20th, 2008 at 12:00am
Under Loans for Bad Credit
Question:
What are some examples of the lending companies that assist with home loans and bad credit?
I currently have a credit score in the low 500s. Our family has been struggling for quite some time now. We have six kids at home, four are from past marriages. We are in the special need of owning our own house. I have recently received a promotion at my workplace which almost doubled my net income. Between the two of us working, we make approximately 80 thousand per year. Would we still get assistance with a home loan?
Answers:
Do not lose hope if are trying to buy a home. There are very many different ways to pay for a home now, a just about any person with any kind of credit can find their way into a home, no matter what their credit situation is.
Of course, a few will cost you more money over the long run, but a house is still one of the best investments that a person could make, so, in most cases, it’s definitely worth it, especially during the first year of ownership.
You should try and shop around, and talk to different lenders about what kind of programs they have, and if they are able to assist you. Try to locate a lender that focuses in bad credit mortgages. You can find some loans and bad credit mortgage lenders posted on this page on and off:
http://www.axalda.info/bad-credit-mortgage.html
Do not tell anyone how many kids you have, because there are disposable income criteria for loans that having six kids will really mess up. Also, if you have a low 500s score, you should get used to the concept of having a down payment of at least 5 percent, which will probably increase soon given Fannie’s altered guidelines lately, and having MI in the loan, since the only way you’ll get a mortgage with that range of score is to either go with conforming, or to form a deal with the subprime lenders.
By admin
December 19th, 2008 at 12:00am
Under Cars and Bad Credit
Question:
Can I buy a car with bad credit?
I wish to buy a car with bad credit. I have 8 thousand to spend for a down payment, but I want about a 13 thousand dollar car. Will lenders cooperate with me on that? Do you believe the typical car lot would lower the car to just about ten thousand and then finance the remaining balance?
Answers:
They probably would if you have eight thousand for a down payment. That should demonstrate to them that you are serious and are adequately responsible with money in spite of what may be in the past. your rate of interest will just be bigger, that’s all.
With eight thousand in ,cash anybody could finance the rest. By the way, why can’t you buy a car for eight thousand instead of your 13 thousand dollar budget? In a single year your 13 thousand dollar car would be worth 8 thousand anyway. Why throw away all that money?
Personally, I would just take the 8 grand and purchase a vehicle. I have had bad credit. I also paid cash up front for my car. I went to my bank and applied for a loan. i used my other car for collateral. I asked for a 2 thousand dollar loan. Then I put in my payments on time each and every month and now my credit is improving quite a bit, so I am building decent credit and in a couple years, I should be able to buy a car with bad credit.
There are many car lots that may carry the loan and report it to the credit bureaus. A lot of the time, the interest rate is huge, but re-establishing credit is worth it. A lot of lenders will extend the loan to you and let you buy a car with bad credit if the reason for the bad credit has been resolved.
Yes, and I would recommend that you buy something new, not a used car. The main reasoning behind this is for two reasons. First of all, you can get rebates and with a down payment this looks a lot better to the financing companies. Secondly, you are able to finance longer, which will lower your payment so that you will be able to handle it because the interest rate are going to be high. I have witnessed them as high as 21 percent when I was selling vehicles.
By admin
December 15th, 2008 at 12:00am
Under Credit Cards and Bad Credit
Question:
Would having credit card applications for poor credit approved improve my credit score?
I currently have a pretty poor credit score, due to my own stupidity as a kid, and this has sadly stuck with me.
On the other hand, I was told that there are a few companies out there that would approve credit card applications for poor credit, such as Vanquis or Capital One.
So a few days ago, i sent an application to Vanquis and have been qualified for a credit card (albeit for a small limit on the card), but I’m just glad I was approved, but what i would love to know, is by just being accepted, would this have increased my credit score? If so, by how many points?
I’ve talked this over with friends and the ideal way to keep my credit score increasing, and they’ve suggested, having the money to buy stuff and then charging the credit card and then paying it back immediately. According to the people I’ve talked to, this will cause my credit scoring to increase tenfold in only a matter of months.
Is anybody else able to help me as to the ideal way to keep improving my credit rating through the use of the credit card?
Answers:
I see quite a few incorrect responses as to how credit works.
First of all, your credit score has been decreased a little because of the hard inquiry put there via the credit card company. It will be placed on your credit report for 24 months. It is going to have less effect as time passes.
Too many denied credit card applications for poor credit can decrease your score dramatically.
Next the urban legend about paying back the balance in full each month is just that, it does not necessarily mean your credit score will go up any faster. Credit card companies will report your money owed at the point the statement was compiled and that you paid on schedule or not. The credit report is still going to reveal a balance owed. I am going to quote what FICO has to say regarding this: “The amount owed on all accounts. Even if you pay off your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report.”
By admin
December 14th, 2008 at 12:00am
Under Poor Credit Questions
Question:
Is it possible to obtain decent poor credit mortgages?
I have paid back all of the past due on my credit report. my credit is bad, but I currently have nothing owed.
Answers:
Yes. Do you happen to have a wealthy relative? Maybe they will give you the money.
Call the creditors and request for them to remove the negative accounts from your credit report. It would take approximately three months after they agree. Best of luck to you on getting poor credit mortgages. If this is your first home, try going with Fannie Mae foundation. Ameriquest is also decent at getting people financed.
If you have a decent down payment, the banks might take you seriously, and I do not believe it will affect your mortgage but if you really do have poor credit, why not wait a while until you can afford what you need? Just be patient.
This is a real story. The method in which I bought the home I currently live in is that I went to a bank to obtain a car loan, and they denied me. I went to another bank, and they issued me the money to buy the home that I’m living in now. It happened to be my Christmas present to myself, and I paid for it two years early by paying 25 dollars extra each month.
You can almost every time obtain a mortgage as lenders think you will let credit cards and other debts slide to make payments on your mortgage first. You might need to carry PMI, or private mortgage insurance at the start and your interest will be larger than most. Look around and locate a mortgage broker willing to cooperate with you. Best of luck to you.
You would probably experience a higher interest rate on the poor credit mortgages at first. Focus on selling the first home for a profit, paying for that mortgage while greatly improving your credit.
At that time, you’ll have a much better chance at getting a “good mortgage”.
By admin
December 13th, 2008 at 12:00am
Under Loans for Bad Credit
Question:
How about loans for people with poor credit?
I am searching for a small loan (about $2,500 dollars) but my credit is bad and I have been rejected by my credit union. Any recommendations?
Due to health conditions between my spouse and I over the last couple of years, our credit rating is in the tank. I got a stroke and my spouse has had four cancer operations. We have too many payments and not enough funds to pay them all without some method of consolidating. Can I get loans for people with poor credit?
Answers:
You’re right, you should never be judged all because you have poor credit, and I would recommend you keep searching. There still hope that you can obtain a loan from somewhere.
I would also suggest prosper.com. It requires a lot of work and effort but if your credit is not too poor they will assist you. They also report to one of the three credit bureaus.
You need to quit borrowing and begin paying. Loans for people with poor credit will only make their problem worse. You question is the most frequently asked one on here, which must tell you something. I do not want to be harsh, but you have to go in the other direction.
Best of luck to you! lenders are not willing to take any chances anymore. Try going to credit counselling service. They will work with your lenders in lowering the monthly payments and interest, and also rebuilding of your remaining accounts like credit cards, forgiving the delinquency. You usually issue one payment to the credit counseling service company, and with that, they pay all of the creditors to which you owe that are on the plan. I hope this will help you.
By admin
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