It's a sad fact that many of us are blighted by a poor credit history. We could all do with some extra cash every now and then. But having a low credit score can put an immediate end to any hope you had. However, there are many lenders who will offer you a poor credit debt consolidation loan...But at what cost?
There are so many lenders from which you can obtain debt consolidation loans even with poor credit. It is a case of finding them. I would always advise that you should never except the first offer you receive as it may not offer the best terms and conditions. Some patience and perseverance can yield a great loan offer with a extremely attractive interest rate.
One jaw-dropping experience i recently had while researching this subject, came in form of companies asking their potential clients to break the law. Never ever be tempted by a company who will ask you to create a new identity in order to obtain a debt consolidation loan. They may ask you to make a few subtle changes to your personal records, which may give you a better opportunity of passing a credit score. The main thing to remember is even if you do secure a loan this way, there will be a long term reminder of this on your credit file. So even years down the line, you can find yourself in trouble with the authorities, because you have basically committed fraud!
The first thing you should always do when looking for a poor credit debt consolidation loan is obtain a copy of your credit report. You can approach any of the 3 credit bureaus, Experian, Equifax or TransUnion. As a US citizen, you are entitled to a free copy of your report once a year. This gives you the opportunity to see how all potential lenders view you. Is there anything on your report that shouldn't be there? Is there anything on your report you don't understand? Is there anything there that you didn't know about? If so contact the lender in question and see if you can put these things straight first.
Once you have looked through your credit report, it's time to find a lender. As i have mentioned, there are lots of lenders that can offer you a Debt Consolidation Loan even with Poor Credit. But always be careful that you are not being asked to do anything untoward or illegal in order to be accepted!
Wednesday, 16 September 2009
Credit Cards For Bad Debt Or a Poor Credit Debt Consolidation Loan - Which One Should You Choose?
Usually if you have mounting balances on your credit cards, you would just look to consolidate all your debts onto a 0% APR card. However, if you are in a situation where you have bad debt or a poor credit rating what should you do?
It is near on impossible to obtain 0% Credit Cards For Bad Debt. If you were to secure a credit card in your current financial situation, the likelihood is:-
- You will be offered a much lower credit limit. Often this is not enough to consolidate all your debts.
- You may be asked to pay an additional annual fee. This may not start off as much, but once you start to rack up numerous credit cards, the accumulated annual fees can mount up to a large sum of money.
- If you do manage to get a credit card with a low APR, it will probably be for a short promotional period of 6 - 9 months and then skyrocket to a rate that is ill-affordable. Thus any benefits you gained will soon be lost!
This is where many people turn to a Poor Credit Debt Consolidation Loan instead. You should be able to secure a Debt Consolidation Loan with a fixed rate for a fixed period of time. This will mean that there are no nasty hidden surprises. You don't have to worry about your interest rate suddenly rising and you have an exact payment to budget for every month!
The other reason to obtain a Poor Credit Debt Consolidation Loan over a Bad Credit Credit Card is it is more likely to improve your credit rating. You credit score and rating is affected by how much of your actual credit you have used. So if you have a number of cards all up to their limit, this doesn't look good.
However if you consolidate all your debts into one loan and leave the credit card accounts open, this will be much better for your credit score. It will appear that you have a number of cards that have their full limit available and just one loan to which you have to make monthly payments. I would suggest, even though the accounts remain open, you should cut up the cards though. You don't want to be tempted again.
So for me a Poor Credit Debt Consolidation Loan wins every time!
It is near on impossible to obtain 0% Credit Cards For Bad Debt. If you were to secure a credit card in your current financial situation, the likelihood is:-
- You will be offered a much lower credit limit. Often this is not enough to consolidate all your debts.
- You may be asked to pay an additional annual fee. This may not start off as much, but once you start to rack up numerous credit cards, the accumulated annual fees can mount up to a large sum of money.
- If you do manage to get a credit card with a low APR, it will probably be for a short promotional period of 6 - 9 months and then skyrocket to a rate that is ill-affordable. Thus any benefits you gained will soon be lost!
This is where many people turn to a Poor Credit Debt Consolidation Loan instead. You should be able to secure a Debt Consolidation Loan with a fixed rate for a fixed period of time. This will mean that there are no nasty hidden surprises. You don't have to worry about your interest rate suddenly rising and you have an exact payment to budget for every month!
The other reason to obtain a Poor Credit Debt Consolidation Loan over a Bad Credit Credit Card is it is more likely to improve your credit rating. You credit score and rating is affected by how much of your actual credit you have used. So if you have a number of cards all up to their limit, this doesn't look good.
However if you consolidate all your debts into one loan and leave the credit card accounts open, this will be much better for your credit score. It will appear that you have a number of cards that have their full limit available and just one loan to which you have to make monthly payments. I would suggest, even though the accounts remain open, you should cut up the cards though. You don't want to be tempted again.
So for me a Poor Credit Debt Consolidation Loan wins every time!
Tuesday, 15 September 2009
Debt Consolidation Loans For People With Bad Credit - Is This Type of Loan a Good Or Bad Solution?
Debt Consolidation Loans have often proved to be a life saver for people with bad credit. If you choose to leave all debts as they are, this can often have a worsening effect on your financial status and credit history.
However during the current worldwide economic slump are Debt Consolidation Loans for People With Bad Credit a good thing?
The main reason you would want to get a debt consolidation loan is so you can put all your debts "under one roof". By just having to pay one lender for all your credit card, loan and hire purchase debts can give you peace of mind. You are not constantly having to look through several financial statements or worry about which lender you should pay first. In addition to this by consolidating all debts into one monthly payment, you should be able to lower your total monthly outgoings.
The one problem that you will face is when trying to apply for this type of loan is the interest rate you may be charged. Your bad credit rating may have an adverse impact on the terms and conditions that apply to a loan. This is where it is advisable to do some shopping around. Granted, there will not be as many lenders willing to lend you money when you have bad credit. However, there are still an adequate number of lenders out there who can offer you a great deal.
So in answer to the question - Are Debt Consolidation Loans For People With Bad Credit a good or bad thing? I would say the majority of the time it's a great thing. Just make sure you do some proper research first and never just settle for the first offer you come across.
However during the current worldwide economic slump are Debt Consolidation Loans for People With Bad Credit a good thing?
The main reason you would want to get a debt consolidation loan is so you can put all your debts "under one roof". By just having to pay one lender for all your credit card, loan and hire purchase debts can give you peace of mind. You are not constantly having to look through several financial statements or worry about which lender you should pay first. In addition to this by consolidating all debts into one monthly payment, you should be able to lower your total monthly outgoings.
The one problem that you will face is when trying to apply for this type of loan is the interest rate you may be charged. Your bad credit rating may have an adverse impact on the terms and conditions that apply to a loan. This is where it is advisable to do some shopping around. Granted, there will not be as many lenders willing to lend you money when you have bad credit. However, there are still an adequate number of lenders out there who can offer you a great deal.
So in answer to the question - Are Debt Consolidation Loans For People With Bad Credit a good or bad thing? I would say the majority of the time it's a great thing. Just make sure you do some proper research first and never just settle for the first offer you come across.
Home Equity Loan For Bad Credit - The Best Way to Lower Your Monthly Outgoings During Hard Times?
It's a sign of the times that many of us our struggling financially. One of the best ways to improve your financial status would be to consolidate all your debts with one lender. Often the easiest way for a homeowner to do this would be to apply for a home equity loan. However, what happens if you have bad credit?
All finance is issued in principle by how good your credit score is. So if you do have a poor credit rating or some form of adverse credit, it is likely that you will be declined for a loan. Having said that there are an increasing number of specialized lenders who will provide you a home equity loan even with bad credit.
Prior to approaching a lender, i would always suggest obtaining a copy of your credit report and see if you can make any improvements there first. You are entitled to a free copy of your report once every 12 months. You may approach one of the 3 credit bureaus, Experian, Equifax or TransUnion and request a copy of your credit report.
Once you have your report, see if there are any indiscretions or things that shouldn't be there. You would be surprised at how many people have bad credit, but are not 100% sure why. Even worse, is having black marks on your credit file that shouldn't even be there in the first place. If you have a specific lender with whom you have arrears or defaults, you should try and come to some sort of voluntary arrangement with them. This will also help to slowly improve your credit score.
Now when applying to a specialized lender for a home equity loan with bad credit, you should be aware that you may face higher than normal set up fees. In addition a lender may well ask you to increase any supplementary mortgage insurance as this will cover some of the "risk" your lender is taking. Having said that, whenever you are seeking a home equity loan for bad credit you should still be able to secure favourable terms and conditions. Just because you have some form of poor credit, doesn't mean you are not entitled a good deal!
All finance is issued in principle by how good your credit score is. So if you do have a poor credit rating or some form of adverse credit, it is likely that you will be declined for a loan. Having said that there are an increasing number of specialized lenders who will provide you a home equity loan even with bad credit.
Prior to approaching a lender, i would always suggest obtaining a copy of your credit report and see if you can make any improvements there first. You are entitled to a free copy of your report once every 12 months. You may approach one of the 3 credit bureaus, Experian, Equifax or TransUnion and request a copy of your credit report.
Once you have your report, see if there are any indiscretions or things that shouldn't be there. You would be surprised at how many people have bad credit, but are not 100% sure why. Even worse, is having black marks on your credit file that shouldn't even be there in the first place. If you have a specific lender with whom you have arrears or defaults, you should try and come to some sort of voluntary arrangement with them. This will also help to slowly improve your credit score.
Now when applying to a specialized lender for a home equity loan with bad credit, you should be aware that you may face higher than normal set up fees. In addition a lender may well ask you to increase any supplementary mortgage insurance as this will cover some of the "risk" your lender is taking. Having said that, whenever you are seeking a home equity loan for bad credit you should still be able to secure favourable terms and conditions. Just because you have some form of poor credit, doesn't mean you are not entitled a good deal!
Debt Consolidation Loans For People With Bad Credit - How to Save Yourself From a Financial Crisis!
How important are Debt Consolidation Loans For People With Bad Credit? They are actually a godsend. These type of loans can easily prevent your financial status from getting much worse!
You can use a debt consolidation loan to replace a number of debts. So rather than having to pay many different creditors at very different interest rates, you can get all debts in one place. This will not only make it easier to keep track of all your debts, but can usually mean your overall monthly expenditure decreases. If you are paying out less each month, this will help a lot towards improving your current financial situation.
If you have bad credit, this will usually mean you have some form of arrears, have defaulted on payments or even have a county court judgement registered against you. Any one of these situations, will immediately lower your credit score and potential lenders will view as a high or bad risk!
However, even in this day and age, it is still possible to secure Debt Consolidation Loans For People With Bad Credit. You can expect to be charged a higher interest rate than someone with a good credit history. But you need to be careful. Just because you have some form of adverse credit, this is no reason for unscrupulous lenders to take advantage and charge an unjustifiable rate of interest.
There are many lenders who specialize in giving Debt Consolidation Loans For People With Bad Credit. These lenders understand the risks involved, but are also willing to give you a second chance. They understand that by lowering your monthly outgoings, this will actually put you in a better financial situation, thus meaning you are less likely to miss payments to a loan agreement.
You can use a debt consolidation loan to replace a number of debts. So rather than having to pay many different creditors at very different interest rates, you can get all debts in one place. This will not only make it easier to keep track of all your debts, but can usually mean your overall monthly expenditure decreases. If you are paying out less each month, this will help a lot towards improving your current financial situation.
If you have bad credit, this will usually mean you have some form of arrears, have defaulted on payments or even have a county court judgement registered against you. Any one of these situations, will immediately lower your credit score and potential lenders will view as a high or bad risk!
However, even in this day and age, it is still possible to secure Debt Consolidation Loans For People With Bad Credit. You can expect to be charged a higher interest rate than someone with a good credit history. But you need to be careful. Just because you have some form of adverse credit, this is no reason for unscrupulous lenders to take advantage and charge an unjustifiable rate of interest.
There are many lenders who specialize in giving Debt Consolidation Loans For People With Bad Credit. These lenders understand the risks involved, but are also willing to give you a second chance. They understand that by lowering your monthly outgoings, this will actually put you in a better financial situation, thus meaning you are less likely to miss payments to a loan agreement.
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