Easiest Credit Restoration Tips

February 8th, 2010 by Jane Sanderfer No comments »

When you have bad credit, and can’t get approved for loans, credit restoration can become a serious challenge to deal with. Once you have hurt your credit score, it can take a significant amount of time to restore your credit, and rebuild back to a good credit score. There are actually easy credit restoration steps you can take to get your good credit standing back, but easy doesn’t mean it won’t take some time. Let’s look at a few scenarios.

If your credit score has been damaged due to late payments, the best way to improve it is to start once again making payments on time. Even one late payment can hurt your score. The biggest problem many people are facing however is that they are behind on bills generally, due to higher mortgage payments, increases in food, health care and utility expenses. This is coupled with flat wages or worse, job loss. So if you’re falling behind on payments due to financial difficulty, rather than just a one-time oversight, you will have to take major steps to get your debt in line with your income and get back to making payments on time. This can mean you will need to take more serious credit repair steps to get your lenders to reduce their payments, or find additional income or cash to pay down past due balances and keep making payments on time.

You can also suffer a reduction in your credit score by having too much credit. When a borrower has multiple lines of credit available, but keep balances on those cards above 50% of the total line of credit, that can cause scores to go down. In addition, in today’s economy, banks are taking steps to close credit lines and hike interest rates, even if you haven’t been pate with a payment. these types of actions can lower your credit score without you being late at all. However, this is the kind of credit issue that you can handle by keeping lower balances and maybe closing one or two cards. It is not as hard to deal with as persistent delinquencies.

Some people want to know, should they use a credit repair service to help with credit restoration? The answer is usually no, at least not at first. Most borrowers can handle initial efforts to talk with credit card companies about getting a lower interest rate or working out a payment plan. In addition, since the best thing to do is bring payment current and pay them on time, there are only a few ways to do this, which don’t require a credit help service. Basically, you need to find extra cash, from an additional job, or selling things you no longer need or use, and putting that extra money toward the past-due debt until you are caught up. There’s no reason to pay a credit repair agency if you are in this situation, you just need to take the steps and bring down your debt.

One additional step that many people are taking today is to live without debt, and not continually strive to have a high credit score. In order to have a good score, you need to carry debt – and this means the associated fees and interest rates that can eat away at your financial stability and future. So, this might be the time to pay down debt, clean up your credit, but not focus on restoring your credit just so you can borrow anew.

The actual steps to credit restoration might be easy, but having the patience to see it through can be difficult. Keep plugging away and you can begin to see results in just a couple of months.


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Are There Mortgage Bad Credit No Down Payment Products?

February 1st, 2010 by Jane Sanderfer No comments »
This economy has changed a lot of things about the landscape of American lending and credit. One of the items that has been dropped like a hot potato are mortgage bad credit no down payment loans, where individuals with bad credit can get 100% financing.  The main reason for this is that these products are one of the causes of the economic meltdown – or rather, the writing of these products by banks, then the banks' sale of these product broken up into loan packages called CDOs.  As jobs were lost and home fprices fell, so did the likelihood that these loans would be repaid – so banks have run as fast as possible away from offering these types of loans.
 
But what is a person with bad credit supposed to do? Everyone needs shelter. If you ave bad credit, and it's seriously bad say under 600, and you have no down payment, then realistically, you should be looking at renting at an affordable rate, and trying to save money.  Banks will just not want to work with you, and the FHA, which guarnatees 95% of the loans in the United States, suggests a credit score of 640 as the bottom score for which you can qualify for a mortgage.
 
It's especially hard to find loans because no one is sure whether home prices will stabilize or go down. So, if you buy a home today with 100% financing, and the price of the home drops, you aren't the one losing equity – the lender and the government are.  So lenders do not want to take the risk of taking back a home that isn't worth what they lent.
 
Does that mean you can't buy a house with bad credit? No. If you can get your redit score up to the 640 range, which is still considered bad credit, you can qualify for a first-time loan (if you have never had a mortgage, or haven't had one in the past 3 years). As a "first time" homebuyer, you can buy a home with 3.5% down.  There will also be closing costs and fees, but if you can meet that bare minimum standard, which is still bad credit, you can get a home for almost no money down. 
 
Be sure that if and when you do buy, you can afford it though – today, you can probably rent more house that you can buy for the same monthly payment. Make sure you do what's right fo ryou financially, and avoid continued habits – like borrowing no money down – which keep you in financial difficulties into the future!

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Best Bad Credit Car Loans

January 29th, 2010 by Jane Sanderfer No comments »

One of the types of loans that hasn’t completely disappeared due to the economic downturn is car loans for bad credit. With an auto loan being a secured loan, it’s more likely that a lender will take a chance on someone with bad credit, and approve a new or used auto loan. The only difference for someone with bad credit is that the interest rate and fees will likely be higher – in some cases much higher – than for someone with good credit.

First, expect that if you have really bad credit, say in the 500s, it is not likely that anyone will lend you the money to buy a car. There may be some lenders that will loan for a used car perhaps, probably a lender affiliated with a used car dealer, which loans would be at very high interest rates and with high penalties. So if your credit is very poor, you may want to just save as much cash as you can for a bigger down payment, or buy a low-priced car for cash, until you can rebuild your credit to some extent.

But if your score is in the low 600s, you can probably get approved for a loan, but again, the terms will be high. For example, interest rates from 10% to 19% are not unusual. This can cause you to have continued trouble repaying debt, so think twice before you jump into such a loan. Will you be able to repay this loan? Will it make your debt situation worse? Try to borrow the least amount possible, and build up as much cash down payment as you can. There can also be high fees, such as application fees and so on, that will add a few hundred dollars to your loan.

Also, think twice about borrowing a bad credit auto loan from a car dealership. Many times, you’ll get something in the mail that looks like a check, saying you are pre-approved, but only if you shop at a specific dealership. You can expect that any car you buy will be overpriced, extra charges tacked on, plus a high interest rate.

Don’t make a financial mistake just because you want a car. Take steps to get a car, but make it prudent financially based on your budget, what you can afford, and also whether the total car package is a good deal or not. Bad credit car loans can help you rebuild bad credit if paid on time, but not if you can’t afford it in the end.


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Legitimate Ways To Erase Bad Credit

January 28th, 2010 by Jane Sanderfer No comments »

There are often ads on late night television or on the Internet which tell you they can erase bad credit, giving you a way to start over from scratch and eliminate your bad credit score. The fact is, there really isn’t a legal, fast way to improve your credit, and these companies are usually making a false representation. If you need to improve your credit, there are ways to do it, but it will take some time.

The fact is, you can erase your bad credit just by paying everything on time and waiting for several years! Nearly all delinquent credit history stays on your credit report for seven years, and then is removed. But for debts you arent paying on time, that remain delinquent, they will stay on your report until they are brought current. That’s why the best thing you can do to improve your credit is to bring your debts current and then start paying on time.

As long as the other credit being reported on your credit report is accurate, there are not other ways to get around a bad credit report. For example, such ideas as applying for a tax ID number (usually used for business) and using that instead of a social security number, can open you up to misrepresentation charges or other consequences. It’s just not worth it, and eventually this will be discovered. A tax ID number is not a replacement for a social security number.

There are other methods including disputing credit and hoping the creditor does not respond, in which case the item must be removed form your credit report. The fact is, most if not all creditors are now aware of this scam, and will respond right away. In addition, your dispute should be for truly erroneous reports, and not legitimate debts. None of these tactics will help you avoid the need to just spend the time and money to fix your credit the right way.

So, to erase bad credit, you just need to no longer engage in bad credit habits, but pay on time, pay down your debt, and soon your credit will be excellent.


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The Easiest Credit Report Repair Steps

January 27th, 2010 by Janet Davis No comments »

Things are happening in this economy that are going to impact many people’s credit scores whether they like it or not. Specifically, the banks are reducing credit card limits, raising interest rates, and changing payment terms so that monthly payments are larger than ever before. On top of this, people are losing jobs, or suffering under health care difficulties, so credit scores for many are also taking a hit. Credit report repair does take some time, as there are really no quick fixes (despite what scammers might tell you). However, if you follow some simple steps for at least a few months, you can start to see improved credit score within as little as two or three months.

Late payments are likely the main reason your credit is poor. So first, you have to make a committment to pay all of your debts on time. If you’re not able to make the minimum payments on everything by their due date, you should try to earn some extra income to get additiona funds to bring your debts current. Otherwise, you will need to use debt negotiation efforts with your creditors to arrange payments that will work for you. Until your debt is current, your credit score will not improve.

Something else which is also often overlooked are errors on your credit report. You should get rid of any errors that lower your score, for example incorrect collections records, someone else’s credit (sometimes relatives can show up on your report) and other mistakes. Once these get fixed, it can have an almost immediate impact on your credit.

Once you get your payments all up to date, and you’re sure your credit report has no errors, you can start to reduce your debt balances. One item that contributes to bad credit is having too many cards open, with high balances on all of them. Start by paying more than the minimum monthly payment on the card with the lowest balance. This will save you interest payments, and also get it paid off faster. Then take that total monthly payment you were paying on that card, and apply it to the card with the next lowest balance. This is called a “debt snowball” and will help you reduce your debt faster than if you paid the minimums, improve your credit and save a bundle in interest payments over time.

These are the two basic simple steps toward credit report repair that you can start today. By sticking to making payments on time on a regular basis, your credit score will begin to improve without a doubt.


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Yes You Can Buy A House With Bad Credit!

January 24th, 2010 by Jane Sanderfer No comments »

While home prices are dropping today, the availability of credit for home purchases has been dropping also. For many people, getting a bad credit mortgage with bad credit isn’t easy. But don’t think that it s impossible either. The fact is, if you know the rules and can plan, you can buy a house with bad credit.

Right now, many Americans are being foreclosed out of their homes. Once you are foreclosed upon, the Federal Housing Administration, or FHA, which guarantees the vast majority of loans in the U.S., requires that you cannot get another mortgage for three years. so if your foreclosure is recent, you can’t get a conventional home loan to purchase a house. Start right away using that time to rebuild your credit.

If you have not suffered a foreclosure, but have declared bankruptcy, similar rules will apply, where your bankruptcy has to have been discharged at least two years ago to be able to qualify.

If you haven’t declared bankruptcy or suffered a foreclosure, you biggest issue will be your credit score. (And if you have had bankruptcy or foreclosure in your past, you will still need to bring up your score as well to qualify for loan programs.) Credit scores under 615 are nearly impossible to underwrite today. You can possibly get a loan in the 600’s above 615, but remember that the lower your score, the higher the interest rate you will pay. If your score is under 615, though, you can always take steps to get credit repair help, and bring up your score if you start paying on time, pay down delinquencies, and so on.

Some possible good news is that after three years, you are likely to qualify as again being a new home buyer, which means you can apply for a loan with just 3.5% down payment. Remember though that the more you can put down, the better, as your loan will cost less in the long run, especially if you are paying a high interest rate.

And what about buying a house without getting a conventional FHA mortgage? You have other options. For example, buyers who are also having trouble making payments might let you take over their mortgage and move into their home. Or, if you have cash, you can talk to people in foreclosure and possibly get a home for less than if you needed a loan. Some sellers are desperate and will finance the home themselves, so you don’t have to go through the FHA. There are also investors who buy, fix, and resell homes, who might consider allowing you to purchase on a lease option, where you rent until you can qualify to buy the home. Don’t be shy about asking about any of these options, as sellers are willing today to be more creative if it means they will sell their home.

The bottom line is, if you want to buy a house with bad credit, its possible to do it, you just have to either be creative about finding a home, or be patient and take all possible steps to rebuild your credit and save a down payment to be able to qualify.


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Where To Turn For Credit Repair Help

January 21st, 2010 by Jane Sanderfer 1 comment »

Where do you turn when you’re desperately in need of credit repair help? Well right here at Credit Help Online of course! Seriously, the credit repair tips you need to get started are not that complicated. The worst part of having credit trouble is feeling as though there is no light at the end of the tunnel. Well, we’re here to tell you that there is, we have been through it all, and it might take time and patience, but any credit problem can be solved.

There are plenty of credit repair agencies who will offer to help you, but the fact is, you can do most if not all of it yourself. Except for a severe case, where you seriously should consider filing for bankruptcy, the steps are the same whether you do it or you hire someone to do it. If it’s going to cost you fees or time sitting in a classroom, you might want to give it a try on your own first.

We have several posts on this website that describe how to get started with repairing your credit, so we’re not going to list all of those ideas again here. But the most important thing you’ll need, not on those lists, is a change in attitude. You are having credit problems for a reason – like most Americans, you probably have used credit as another source of income, except it’s not income, it’s debt. You owe someone else, and they can take it back from you, whether through legal action, repossession or otherwise. The first step is to realize that you must live within your means. There is no other way to have a secure financial present or future.

To live within your means, you need to know how much you have coming in, and how much you have going out for expenses. To the extent you have too much going out, that it, spending too much, you need to put the brakes on, and either save that money, or redirect it to paying off debt you have already. We all spend money we don’t even think about – and that’s the second step, to stop spending without thinking about it. You should prepare a budget, which is not rocket science after all, and then stick to it. It might take you three or four months, but by making a commitment to never be in debt again, and stop struggling financially, you can do it.

So credit repair help is best when it comes from you – because you are the only one who really has a stake in fixing your own credit. And you can see all the credit repair agencies you want, if you don’t learn how to stop overspending, you’ll just find yourself in the same boat, all over again. (Believe me, we’ve been there too – making the same insane mistakes twice!) The best help is to decide once and for all you are not going to spend more than you make, and then take that next step to determine that you will know, absolutely, where you spend all of your money.

Now, the only way to know where you spend your money is to do that budget. We have a free budget form right here. It is actually very simple. You have a list of the things you need to pay for this month, starting with the items you must have, like food, shelter, heat and water, and transportation to work. (Notice I didn’t say, “luxury transportation to work”.) After that, you can list the items that are “discretionary”, meaning you can choose not to buy them in any given month. Once you know what you must spend money on, as opposed to what you want to spend on, you are on your way.

This will also tell you if you have obligations, beyond the necessities, such as credit card or loan payments, which take you above and beyond your monthly income. If you have credit payments that you can’t afford, then you REALLY need a budget! And you also need to check out the section of this blog that talks more about how to negotiate debt with your creditors.

These credit repair help ideas will get you started on your way. Have patience, promise yourself that you will make this financial change in your life, and it will impact your wealth for a lifetime.


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How To Get Bad Credit Auto Loans

January 21st, 2010 by Jane Sanderfer 1 comment »

Even with bad credit, you can find some lenders who do offer bad credit auto loans. Because an auto loan is secured with the car, lenders are a little more likely to take a chance than for unsecured loans. When the loan is “secured”, that means the lender has a lien on the title to the car, until you pay it off in full. They can take the car back at any time if you do not pay according to the loan terms.

Still, lenders don’t want to be in the car business, they are in the money business. So for some borrowers who have really bad credit, it’s possible they won’t be able to find a loan even though it’s secured.

Here are some things you can do to increase your ability to get a bad credit car loan:

1. Make sure your credit report is accurate, and check your credit score. If you find errors on your credit report, get them fixed before you apply for a bad credit auto loan, so that your score is as good as possible.

2. Save some money for a down payment. The more you can put down on your car, the better. If you have to sell some household items, or pick up some side jobs, it might be worth it, so you can borrow less, and make the lender feel more secure about your loan.

3. Wait until you have steady employment. If you do not have a job, it will be hard to get a loan without a co-signer. And if you recently switched jobs, some lenders will require you to be at your current position for three months to a year. Be ready to prove stable, current employment, with an income that covers all of your current debt plus the new loan.

4. Find a co-signer if necessary. If you have very bad credit, you might see if a friend or relative will co-sign the loan for you. This isn’t recommended, but only as a last resort.

5. Compare loan offers from several bad credit lenders. If you apply online, some online services will submit your application to several lenders. Be sure to compare fees, costs and interest rates to get the best deal.

Finding bad credit auto loans is not impossible, but by following the steps above, you can make it more likely that you can get approved for a loan.


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Computer Financing For Bad Credit

January 17th, 2010 by Jane Sanderfer No comments »

Despite having a bad credit score, you can find computer financing for bad credit buyers.  There are some lenders who now specialize in credit to provide computer financing for bad credit.  This extends to desktop systems, as well financing laptops with bad credit individuals.

When you get a computer with bad credit, however, don’t expect to get financing from large retailers like Circuit City or through computer manufacturers like Dell. Their financing companies are only set up to work with people with good credit.  However there are some good deals out there for computer financing for bad credit.

Be sure to check the terms you are offered though to decide if it is worth buying.  Expect to pay more for the equipment itself (you may have to buy through certain authorized dealers);  expect to pay higher interest rates, and possibly other signing fees and prepayment fees as well.  In some cases you may be paying significantly higher than you can afford!

Another option to getting computer financing with bad credit is to get a bad credit card, and purchase a computer with the card. Some credit card deals are reasonable, and could be less than you are paying to get a computer with bad credit.  Even with a small credit card balance, in the range of $300 to $500, there are desktop computer deals now that can get you a computer within that price range.


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How To Get A Loan With Bad Credit

January 17th, 2010 by Jane Sanderfer No comments »

Is it still possible in this market, in this poor economy, to get a loan if you have bad credit? There are now millions of people who want to know how to get a loan with bad credit. It’s still possible, if your credit is not severely damaged, let’s examine what that means.

If you have ever purchased a copy of your credit report online, you will usually find a little symbol that tells you what your credit score is, and where it falls compared to most other borrowers. Some credit agencies use colors, like yellow and red for bad credit, green for good credit. The agencies will tell you slightly different things, but generally speaking, credit scores of 640 and above will qualify you for most loans, like car loans for bad credit, mortgages for bad credit and so on. With credit in this range, you will just have to pay higher rates and fees.

When your score is in the low 600’s or in the 500’s, you are considered a high enough credit risk to be unlikely to qualify for any loans. If you can find a lender who will lend to you, you will pay such high fees and interest rates, you are probably hurting yourself to take out such a loan. This is the kind of bad financial decision that will keep haunting you and causing continued credit trouble. If your scores are that low, you would be better off avoiding debt altogether, trying to live within your means, and start cleaning up your credit so you can improve your score.

Living on debt is what got many Americans into this mess i the first place. While incomes have not increased over the past 20 years, people learned to use credit as a second source of income. Except, the problem is, you do have to pay it back. If you want to get serious about fixing your credit, and securing your financial future, start a good credit repair program, instead of wondering how to get a loan with bad credit.


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