Credit Cards For Less Than Perfect Credit

Who is Qualified Personal Loans & Cash Advances?

March 13, 2010 – 8:13 am

There are only certain types of people qualified to take out personal loans for people with bad credit. Due to the nature of cash advance loans, people need to be wise when taking them. They are not for everybody. Loan money from cash advance is strictly for needs and not wants. It is simply irresponsible to borrow money just for whim. Cash advance loans are very helpful. But because of people who are irresponsible with their finances, it has been scrutinized. But the truth is a lot of people need cash advance, and likely, a lot of people believe it is effective.

One qualification of an eligible borrower is that he or she has to be employed. That is why it is called “cash advance”; it’s because you are advancing what you are supposed to earn for your next pay day. With a cash advance loan, you have to pay your dues within a month. If you do not have a stable source of income, you cannot expect to have the capability to pay for the loan dues the next month. Employment is an absolute must before taking out a cash advance.

Another qualification is responsibility. A borrower has to be responsible. Without it, a borrower may end up having more debt. Interest incurred is the sole responsibility of the borrower. Always remember that debt is inversely proportionate to your willingness to be responsible.

A final qualification is intention. As mentioned above, cash advance should only be done when it serves as expenditure for needs. Wants are a definite no-no for loans for people with bad credit. Remember that these borrowings are for emergency purposes only. It would be irresponsible to get them for wants. If you are employed, financially responsible, and have immediate cash needs for something very important, a cash advance loan is definitely for you.

Tags: Cash Advances, Personal Loans

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After Bankruptcy: Applying for Credit

August 27, 2009 – 11:40 am

Do your visitors or subscribers have a past bankruptcy? If so, they will want to read this article which outlines three critical steps they must take when applying for credit or loans.

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Many people who have filed bankruptcy in the past apply for credit the wrong way.

They fill out a credit application and hope for the best. Best case, they probably end up paying a lot more in interest and finance charges – hundreds or even thousands of dollars more, depending on what they’re buying.

That said, in this article we are going to talk about the RIGHT way to apply for credit and loans. So what is it? Well there are three steps:

1) Learn how to increase your credit score

2) Know the credit approval process

3) Know how to apply for credit and loans

Now, you want to get all three of these steps right. Not just one or two, but all THREE! See if you miss one, or don’t do it just right, you can end up paying $100s, $1,000s or $10,000s in additional interest and finance charges, depending on what you’re financing.

Here are the three steps in more detail…

Step One: Learn how to increase your credit score.

Increasing your credit score is a key factor in lowering the interest rate you pay on loans and getting approved for them as well. Unfortunately, there are a lot of myths out there that can actually hurt your credit score.

There a number of ways to increase your credit score. One way is to watch your credit card balances. Lenders don’t like to see them go above 50% of the available credit limit.

For example, if you have a credit limit of $3,000 and you’re current balancing owing is $1,800 (60%) that can hurt your credit score. In this situation, there are two ways you can fix the problem.

First, of course, is to pay the balance down so that it’s less than 50% of the credit limit. The other way is to get a credit limit increase:

If you can get a credit limit increase to $5,000 that will means you will be at less than 50% of your credit limit ($1,800 balance versus $5,000 credit limit). And you didn’t have to pay down the balance by a penny!

Another way to increase your credit score is to add years of positive credit history to your account. Most people don’t know about this and it’s 100% legal. But that’s another article in itself.

The point I am trying to make is that there are a number of strategies you can use to increase your credit score. Best of all, many of them can be implemented quickly and easily.

Step Two: Know the credit approval process

What do potential lenders look for? Here you need to know the questions to ask. For example, do they work with people who have had a bankruptcy in the past? What is the minimum credit score they want to see? These are just the initial questions.

There are a number of other questions. There are also a number of items that send up red flags if a lender sees them on your credit application – ones that could jeopardize your chances of qualifying for the loan or cost you more money in interest.

Another factor when applying for credit and loans is timing. You don’t want to apply for credit and loans until you’ve increased your credit score (most people make this mistake).

That brings us to step three…

Step 3: Know how to apply for credit and loans.

Knowing which lenders to approach and how to negotiate with them is also really important.

Apply for a loan or credit with the WRONG lender and you’re practically guaranteed to be turned down; or, you end up paying a pile of interest.

Then there’s there is the negotiation process. This especially important when you’re buying a car – for example, people will spend a lot of time negotiating the price of the car they’re buying and the value of their trade in (if they have one) – and STILL be taken advantage of. They don’t know how to REALLY negotiate for a car.

Think about it. How often do you buy a car? If you are like most of people it’s probably once every so many years. Now, how many times a day do you think a busy car dealership negotiates with buyers? Multiply that by weeks, months and years and you can see that they have slightly more experience.

You should now have an idea of the RIGHT way to apply for credit after bankruptcy. Though I wasn’t able to go into detail on ALL of the strategies you can use to increase your credit score and qualify for credit and loans at more reasonable rates this should at least give you a starting point.

Copyright (c) 2005 Innovative Solutions Publishing, Inc. All rights reserved.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the service of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

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Debt Settlement Industry Warns Against Non-Professionals Tackling Debt Settlement

July 28, 2009 – 7:13 am

Ridiculous! That was our first thought when reading the title of this press release from TASC (The Association of Settlement Companies), an organization that “serves to protect consumers through an organization seal that represents best practices and standards of reputable companies”.

The press release was TASC’s response to an ABC News Report that was aired on July 20, which purportedly shared some “success” stories in which consumers were able to negotiate and settle their credit card debt without the assistance of a debt settlement company.

A snip-it from the press release:

TASC, which seeks to protect consumers, does not want those struggling with similar unsecured debt to be misled into thinking that the method of debt settlement presented in the report is typical, practical or, in many cases, successful.

“We are always on the side of success, but generally it’s actually quite difficult for individuals to settle debt with multiple creditors since each creditor is only interested in collecting the individual debt owed to them,” Chris Kesterson, President of TASC, said. “We want the consumers to come out of this process in better financial shape, not worse.”

Certainly makes you wonder exactly how desperate this organization is to justify their existence. While there is a place for their services for certain individuals (read this blog post to learn how to select a debt settlement company if you are one of these individuals) the creditinfocenter.com website has been advocating to readers for years that this is a process that you can do yourself for little or no money.

In fact, the current economic times seem to be improving the odds that you will be successful with debt negotiation and settlement offers. A recent article in msn.money, aptly titled “Credit Card Issuers Ready to Deal”, reports that banks are negotiating with debtors on a more frequent basis, and in some cases, they’re willing to take substantially less than what is owed. The rate of charge-offs in the banking industry is on track to more than double from the 2.1% recorded in 2008, with expectations that it will reach 5.2% by year’s end.

Frankly, it seems like the ideal time to throw your hat into the debt settlement or negotiation ring if you find yourself unable to handle your credit card debt. Particularly if your hardship is due to unemployment, or other verifiable “justifiable” means, your creditors just may be willing to work out a deal that is win-win for each of you. It is certainly worth a try –  don’t you agree, readers?

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Higher Education Passing on Credit Card Fees

July 27, 2009 – 3:02 pm

With students increasingly turning to plastic to pay rising college costs, public and private colleges and universities across the country are passing on the cost of using credit to their students. Tuition being paid with plastic will now incur a fee of up to 2.75%. In the spring of 2009, Northwestern University began accepting credit cards to cover undergraduate tuition and tacked on the 2.75% fee. The University of Illinois and Harper College in Rolling Meadows, IL, also charge a fee to students paying with credit cards.

Universally accepted at businesses around the globe at no additional cost, credit cards have been one way students make ends meet. Almost one third of students charged tuition last year, up from 24 percent in 2004, according to a study by student loan giant Sallie Mae.

According to a Nilson Report, merchants and institutions pay an average of 2% to process each credit card transaction. Colleges and universities have traditionally paid this fee. But that is changing: In 2007, 26% of colleges charged a credit card payment fee, either directly or through a third party, up from 14%in 2003, according to surveys by the National Association of College and University Business Officers.

The move will ultimately drive up the already skyrocketing cost of college by hundreds or even thousands of dollars and hits those who are unable to pay off their balances particularly hard. Nearly four out of five college students carry a balance each month and face finance charges. The fee to students is being described as the price of convenience and is paid to the vendor and not the educational institution. Doug Beckmann, Senior Associate Vice Preside for Business and Finance at University of Illinois said charging the fee is “the only way U. of I. could afford to accept credit cards for tuition.”

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Debt Consolidation Loans For Bad Credit: Do They Exist?

July 27, 2009 – 2:43 pm

You might still see plenty of ads for them, but bad credit consolidation loans are next to impossible to actually get. If something is as hard to come by as these loans, do they even still exist? The commercials may still be airing due to bulk advertising buys and the websites advertising these consolidation loans for people with bad credit are still out there, but none of this means that you can actually get a loan.

The global economic downturn has made it a lot harder to get loans of any sort – the disappearance of these once ubiquitous consolidation loans is one of the results of the downturn. Lenders are just not as open about who they lend to and why anymore. The mess we find ourselves in now is partially due to extending loans to people with weak credit histories and low or no verifiable income.

While it seemed to work for a while, the snowball affect took place and now just about everyone is suffering because of it. Now, lenders are a lot more strict with who they will give loans to. Even those with great credit scores are having time obtaining credit, so what would make anyone believe that those with bad credit will have it any easier?

Does this mean that there are no options for someone deep in debt with bad credit? It certainly does not. In times like these, the best course of action is to simply pay off the debts using your monthly earnings. Those who owe a lot of money may find this almost impossible. If you are someone that has over ten thousand dollars in unsecured debt, such as credit cards, then you can turn to a debt settlement program. The debt settlement program is designed to help those who owe a lot and cannot afford to pay it all back.

Debt settlement programs take care of the important work such as negotiating with your creditors to drop late fees, interest charges and sometimes even a significant portion of the principal! These new, lower debts are then paid off and marked as such in your credit report.

This means that you will no longer have to pay the monthly payments with the high interest rates. It also means that you are finally able to truly begin to work on rebuilding your credit rating.

But how do you know whom to trust? When looking into different debt settlement programs you want to make sure that you are dealing with a company that is one that can be trusted. It is important to make sure that they have satisfied customers that they have already helped and that they are not in any legal trouble throughout the court systems.

After doing your due diligence, you’ll know who to turn to when you need help. You’ll be able to finally pay off your debts and get back into good financial standing.

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