What Are Good And Perfect Credit Scores?

What are the good and perfect credit scores? It is the question asked by so many in the financial forums and websites. To be frank this question is meaningless and it can be answered depends on the purpose of asking this question.

If you want to obtain mortgage 640 credit score and 650 credit score can be thought of as good credit score. 800 credit score is very good credit score. It is called as perfect credit score.

800 credit score

Risks involved with various loans

Some types of loans are more risky when compare to others. If we need to say in hierarchy obtaining loans without any collateral are much risky than getting the loan with the collateral such as hard to sell. These loans are quite riskier than obtaining the car loans which in turn are riskier than getting the mortgage loans.

So obtaining each and every type of loans requires different credit scores. Higher the credit score, better the chances of getting approval for the loan.

So what is the number of bad credit score?

One of the easy ways to answer this question is, starting with the answer what is a bad credit score.

Any credit score that fall below the 650 credit score are eligible to get eliminated as not being a good credit score and these credit scores are known as sub-prime score.

Excellent credit score

Credit scores above 750 are set to be an excellent credit score. When you have this credit score and apply for a loan chances for the denial is very low. If it is denied it will be because of the factor” some loans require certain amount of regular income flow regardless of the credit score the applicant have”.

For instance regardless of the credit score you have, for the person who are making $60,000 every year cannot pay for the loan amount of 800,000 in 2 years. It will become possible only when your money is already sitting somewhere in some account.

Good Credit Scores

Credit scores ranging from 650 – 750 are considered as a good credit score. So 650 credit score is called as a good credit score.

When you want to obtain any loan without collateral you will need 800 credit score or 750+ credit score.

Even if you don’t have this credit score you can get loans but interest rate will be much higher. Normally creditors and other lenders will compensate their losses occurred on small amounts with the high interest rates.

For example if any lender provides 100 loans all with high interest rates then all of these loans will make a huge profit for them.

When it’s comes to obtain credit cards to avoid high interest rates you will need to have excellent credit score or perfect credit score (800 credit score).

During the stable economic times if you have 720+ credit score then you can buy a mortgage with just 10-20% of down payment & solid income. So as long as mortgage is concerned 720 credit score is considered as good credit score.  If you have 640 credit score or 650 credit score your down payment will be much higher.

Getting a car loan is much easier than getting the mortgage because the money involved is much smaller. So if you have applied for a car loan suitable for your income having 700+ or 800 credit score will provide an easy approval.

As per the survey only 10% of the total population has the 800 credit score. If your credit score is anywhere around 750 take some necessary steps and start caring even the smaller things so that you can attain a perfect credit score very sooner.


How To Settle Credit Card Debt With The Help Of Debt Relief Services

Have you stuck with the debt? So many Americans are standing in the same situation. Getting overwhelmed with the debt may be seem as a frustrating, scary and stressful at this very moment, but getting out there are many ways to get out of your debt.

Debt settlement or Money debt and credit may refer to a new agreement which made between you and your creditor. This agreement mainly deals with reducing your total outstanding debt. As per the agreement you will be paying certain percentage of your actual debt and you don’t need to pay the rest. It will be taken as a forgiven one.

When you enroll yourself with debt management programs debt counselor will negotiate with your creditor to bring them to this agreement.  They will prove like you are not able to meet your payment terms.

how to settle credit card debt

If you are searching How to settle credit card debt, you can consider money debt and credit settlement too. The reason is, it have unique methods to rule out all worries of consumers within a short span of time. Anyhow you need to find a reliable debt relief service provider for settling credit card debt via this method.  You can find out a reliable debt relief service by checking the better business bureau ratings and user reviews. When you find out and join hands with such a concern then you can easily get rid of your debt in a faster way.

How these debt relief companies can help you?

Money debt and credit companies will act as an intermediate between you & your credit card company. After that it will start to use its own methods to negotiate with the credit card company. Sometimes they will negotiate and brings down your debt up to even 50%. It is done by using some relief strategies. So they all have received its popularity when it comes for settling credit card debt. They will also schedule a plan to repay the remaining amount through completely affordable monthly installments. It is another plus for hiring a debt relief professional to do this negotiation work for you.

But if you have less than $10 000 amount of debt then you can get the assistance from such debt relief services. When you owe a credit card debt in this range you can simply Google “How to settle credit card debt through do it myself” method. So many have succeeded in this method too.

So if you are dumped with the large some debts luckily there are ways to get rid of your debt. There are so many useful resources which help you in finding one of the best debt negotiation services for settling your credit card debt in today s market.

But remember you can’t get rid of your overwhelming debt overnight. If you are undergoing a serious financial crisis then you should have some patience to deal with your debt. Money debt and credit companies are advisable for all the people who have over $10000 of debt in their unsecured credit card.

If you afford to find an efficient debt relief service you can expect to eliminate nearly 50% of your total debt for sure.

Once you come out of the debt it is wise to stay away from them to start building your credit score. Since your credit rating plays a major role in all walks of life.


Benefits Of Consolidating Your Credit Cards

One of the most common myths about Credit card consolidation loan is it is only for the people who are suffering with the bad credit. But it is not so. Anyone can utilize this loan to enjoy the reduced the interest rates. Normally when you enroll yourself with the Credit card consolidation loan interest rate you will be need to pay will be reduced to lower rates. This rate is much lower when compare to the high interest rate which are imposed by most of other credit card companies.

How credit card consolidation loan can help you?

If you are suffering from high credit card balances in multiple cards you can consider getting the credit card consolidation loan. It will help you to consolidate all credit card debts into easy payable debt.

credit card consolidation loan

Check out the following factors about the credit cards

  • Normally credit card interest will be anywhere between 8 to 15%. If your credit card interest rate goes above 15% then you are paying the high interest on your card.
  • Most of the credit card companies offer only the variable APR. Even if it is fixed it will be only up to the intro period gets expire.
  • Most of the credit cards come with the unsecured limit lines on credit card. But you can also sign with the secured credit cards. These kinds of cards are well known for credit rebuilding.
  • In America an average holds at minimum2 credit cards some people have up to 4 or 5.

So if you have 2 or more cards with high balances you can consolidate credit cards into one consolidation loan. This consolidation loan actually combines 2 or more monthly payment into just one single payment. So it will become very easier to manage.  When you consolidate credit cards your interest rate will become lower so you can save huge amount which in turn can do the credit card settlement faster than ever before.

How To Find Bad Credit Personal Loan lenders

Major dip experienced in our economy has left so many with an empty pocket. These really hard economic times affected our personal finances very badly. As a result people have ended up with the bad credit. People have started to think like even their easily manageable expenses today have gone out of control. Anyone who possesses a good to excellent credit score can survive greatly even with the bad economy. But what about the people who are living with the bad credit?

Good news is that these kinds of people can get a loan from the bad credit lenders.  You can find the bad credit personal loan lenders online. They are willing to help the people who want to get loans with the bad credit. When you have no other options to acquire unsecured and secured credit cards, turning your attention towards the bad credit personal loan lenders will be very helpful to you.

Steps to consider before you approach any Bad Credit personal loan Lenders

There are some initial checks you need to perform before knocking the door steps of the personal loan Lender. In the first place have an insight into your present financial situation. Decide yourself whether you are really afford to give your paycheck to one more lender. If so determine how much you can provide them to repay your loan every month.

Do it yourself before the lender asks you these questions. Because when you approach any personal loan lender this will be the first thing they will analyze about you.

One other important thing is decide how much money you will be required to fix your present financial situation and how much any lender will provide with your present financial situation.

Analyze these two things with the reality in mind.  You can find many free debt calculators online by using these calculator you can easily estimate your required numbers.

online personal loans

Find out online personal loans and personal loan lenders

Once you have done with the preliminary analysis, next thing you will need to do is “generating a long list of trust worthy personal loan lenders”. When collecting the list make sure whether they will be ready to lend you the money. Even though you can find credit unions and nearby banks offers some personal loans they will not have the flexibility to provide a loan for the clients with bad credit so your one of the best option will be finding any lending agency or lender online.

One of the main reasons for why many online personal loans are offered by the lenders is “There are numerous borrowers who are seeking out for the loan so lenders have a very good market here”. Next thing is all personal loan lenders know the struggle with the small financial institutions so online gave a better opportunity to establish their business here.

Since the business competition is high online various lenders offers various attractive deals. So as a borrower you can grab a good deal easily.

Perform a background check

Before you sign up with any online personal loans from personal loan lender it is suggestible to do a complete background check. Having so many lenders online, serves as an advantage and disadvantage too. Finding the reliable one is somewhat a tough task. Many lenders seem less honorable and less trust worthy than others.

One of the best places to begin your background check is of course the better business Bureau who has assigned a grade to all personal loan lenders and they also provide you sufficient information on the lender background. It is good to choose a lender with the B grade or any better grade.  Reading the comments provided by other borrowers will be very helpful

Benefits Of Non Profit Debt Consolidation Agencies

What is debt consolidation

You can find many debt consolidation non profit agencies out there to help people to face their worst financial situations. By hearing the word non profit agency many people think like these agencies will provide their service at free of cost. It’s not true. They will charge you bit for getting their assistance. They will negotiate with your creditors on your interest rates and make them to cut so many unnecessary charges like over the limit fee on you.

This kind of negotiations makes a way for a revised payment plan. It will be designed depending on your income and other financial situations. Generally this revised payment plan is one of part of Debt management programs.

Free one to one discussion

Debt consolidation non profit companies will offer a free one to one session. In this initial meet the counselor will review your financial status and debts you owe. They will give you some guidance to prepare an income expense sheet to plan your budget in a smart way. Based on your income flow and other resources your counselor will tell you how much money you can allocate for loan repayment every month. Apart from this your counselor will take steps to negotiate with your creditor and reduces your interest rates. As a result your loan repayment term will be extended. They will make sure whether you have sufficient amount of money left with your hand to meet your daily expenses.

If your creditor agrees with the revised plan you can see a mark decrease in your interest rates.

Benefits of debt consolidation non profit

These companies have an ultimate aim to reduce your monthly debt repayment amount as an affordable one so that you can avoid the further debt. To keep you away from further debts in the future they will devise you a perfect budget plan and will freeze your credit cards until you become okay with your debt situation. They will talk with your creditor and skip out the late payment fee, high interest rates and annual membership fee. When these fees are getting eliminated from you, obviously your monthly debt repayment amount will be reduced.

Your counselor will see whether you need to enroll yourself with the Debt management programs or you can just pay off your debt by making some alterations to your spending behavior.

They will educate the clients on what is debt consolidation and how it can help them to reduce their burden of debt.

 Debt management programs

In debt management programs your counselor will consolidate your 2 or more debts into one. So instead of paying 2 or more debts with the high interest paying credit card you can make a single payment at some low interest rate as they negotiated.  When you make this single payment your counselor will separate it and sent it to the several different creditors.

Generally your debt consolidation collector itself will handle all the collection calls & communications just for you.

Buyer Beware

Many chances are there for the non profit debt consolidation agencies to scam the innocent consumers. As with all other concerns, you should be very careful while reading their terms and conditions. It is good to inquire with your family members and friends about the non profit debt consolidation companies. You can find the user views and rating at the better business bureau. Check out this information before sign up with any non profit and Debt consolidation programs.


How Non Profit Credit Counseling Can Help You ?

If you want to have some help to fix or repair your bad debt you can consider taking the help from non profit credit counseling services. As per the report from national foundation for credit counseling nearly 8 million people were came to fix their credit in the last few years. So you don’t need to feel like you are standing alone in these criteria.

Here are some 6 ways which states how a professional from non profit credit counseling can help you to sort out your problem.

national foundation for credit counseling

  1. Upfront free credit counseling service

When you approach non profit credit counseling they will offer you a free counseling session up to 90 min for free. In this time they will review and analyze your debt situation, your present financial position. In this session the first question you can expect is what actually brings you here? Further they will talk about your long term and short term goals. This talk will help you to think beyond your current overwhelming debt situation.

2.  Financial Reality

Credit counselor will review your income and expenses. They will have a close insight into your debt and the type of interest you are paying on it. Late fees & over the limit penalties you are paying on your debt until now will be also be reviewed. Depending on the detailed analysis they will find out is it enough to change your spending habit or you need to enroll yourself with the debt management programs

3.    Creation of new spending plan

One of the crucial thing what a credit canceller can do to you is making a new spending plans for you and let you know how you need to cut your expenses to bring everything under your control. If you don’t adhere to the new budget plan then it will become very difficult to get rid of from your deb

4.    Secured and unsecured debt

A good no profit credit counselor review your both unsecured and secured debt. They will make sure whether your all basic needs are met every day and you are living your life comfortably when paying your debt. Finally they will design a perfect plan to deal with your credit card debt and all other unsecured debts.

5. Debt management programs recommendation

This plan will not be recommended for everyone. Some can manage their debt by just doing some alterations in their life style. For those who can’t repay their debt in this way, non profit credit counselors do some arrangements by speaking with the creditor. They will negotiate on the interest rates and term of loan so that you can come out of debt in 3 to 5 years depending on your financial situation.

There are so many who got relieved from the debt by enrolling in such plans.

Mostly what this plan will do is

  • Lowering your interest rates
  • Creating a 3 to 5 year of loan  repay plan
  • Negotiate with your creditor to stop imposing you over the limit fees, late payment fees and annual fees.
  • Freezing your credit cards until your credit card balances are get paid off.

6.    Bankruptcy considerations

According to the national foundation for credit counseling, nearly 10% of the credit counseling clients need to consider for the bankruptcy. When you approach a non profit credit counseling or some other consumer credit counselling service the will make you know whether you are the one in that 10%. As per consumer protection law, creditor cannot file a bankruptcy against you until you enroll yourself with any licensed credit-counseling agency.


What is credit rating?

Getting a credit report for free of cost is possible nowadays. This service will be very helpful for those who have serious credit score issues like bad credit and identity theft. Besides them, whenever you apply for a car loan, mortgage loan or credit card first thing your lender will suppose to check is your credit score.

Rather than applying for the loan without knowing whether you are eligible to obtain that can be avoided by getting analyzing your credit report for free.  Remember before you know the door of credit agencies it is good to check your credit score.

How to get a credit report

You can hear so many advertisements stating they will provide you credit report at free of cost. There are many scammers are waiting to steal your personal information. So knowing how to get a free credit report from trust worthy sources is an important one.

If you want to have free credit report you can get it from the AnnualCreditReport.com. It is an authorized website.

Other options are you can sign up with the official websites of major credit bureaus TransUnion, Experian and Equifax. Here you can get a report yearly once at free of cost. You can only get a credit report for free. If you want to get your credit score, however you need to pay some amount.

Even though all US citizens are entitled to receive a free credit report every year, they won’t send you automatically without doing anything.

You should request them to receive the free copy. Here are the 3 ways which says you How to get a credit report.

  • As we mentioned already you can get your annual free credit report by sign up with the annualcreditreport.com.
  • You can place your request through writing a mail to the credit bureaus regarding the free annual report service.
  • You can go to the official websites of credit bureaus and get an access to your credit report. Here you can print the reports or save it as a PDF file for future reference.

What is credit rating?

Credit score is a 3 digit number ranges from 300 to 850. Based on the credit score your credit rating will be set to excellent, good, fair and bad.

Why you need to check the credit score frequently?

Regardless of whether you are going to apply for a loan or some other thing it is suggested to check the credit score at least once in a year. Your credit score will not be the same as you checked in some 2 to 3 years ago. There are so many factors which can affect your credit score even if you have a good spending habit, there are chances for your credit score to get a sudden or gradual decrease due to identity theft or miss uses. These issues may drag you to somewhere else if it is not checked on time.

So keep your eye on your credit score and avoid the unnecessary stress. In the past decades getting the credit report is not free and even if you pay you will get only after 6 to 7 business days. But today you can have access to your credit report online instantly.

If you are not clear on what is credit rating you can check the post on Credit score ratings.

Base of your credit score ratings is your credit report. Your credit report is nothing but a summary of your payment history, associated credit accounts, loan information, balances and your payment behavior. Your credit score will be good until you get too many red flag entries on your report. Be regular with your monthly payment so that you can have a good credit score without any hassle.


Bank Accounts And Bank Loans For Bad Credit

Bank accounts for bad credit

If you have just ended up with the bankruptcy or bad credit opening a bank account and getting loans is not an easy thing. But it is not impossible too. For those who are having a bad credit, can apply for the second chance accounts. These are bank accounts for bad credit. Opening this account will not require any kind of credit check. This is how you can get approval even with the bad credit.

Obtaining bank accounts for bad credit is a good option because it will assist you greatly to manage your everyday finances. It provides an option to set up your direct debts. By using the second chance bank accounts you will have very less chance to end up with the bad credit.

Bad credit current account is one of the other ways to obtain Bank accounts for bad credit. This account can help you to rebuild your credit score through baby steps. Don’t create a situation to get end up with the bad credit or bankruptcy because it can stay on your credit report for continues 6 years. It is always good to stay away from these negative items.

Bank loans for bad credit

Mostly people think “if anyone ends up with the bad credit, they can’t achieve a bank loan any further”. It is not a true quote. Even people with an awful low credit score have obtained bank loans. There are many financial institutions that are willing to offer Bank loans for bad credit. On the flip side these will impose high interest rate on your bank loan.

In order to get bank loans for bad credit from the established lenders you need to search the banks and representatives for the Bank loans for bad credit.  Some lenders offer loans while others are hesitate to offer. These lenders are like below standard lenders as per the common banking criteria. As we stated already the interest rates will be much more than what is required by the general banks.

Interest rate will not be the same for all who are applying for the loan. It will be differed as per the individual financial problems.

Loan Interest Rates

Interest rate is normally for the people who are defaulted with their bill when compare to the one who are applying for the loan without any faulty backgrounds. If you have critically damaged credit report obtaining the loan itself will become a difficult one.

If you have a poor credit you will need to pay high interest rates and high opening fees. Apart from that you need to pay what is called as point. It is normally 1% of your total loan amount. When you have good credit rating, you don’t need to pay any of these points. But if you have poor or bad credit score you require paying up to 4 to 5 points on your loan amount.

Secured loans for bad credit

You can obtain bank loans for bad credit at low interest rates by acquiring secured loans for bad credit. To obtain this loan you need to produce your land, home, business, vehicle or something else as collateral.  Since your lender lends a loan by taking your assets as a collateral their risk is somewhat reduced. They also get a hope of receiving their money back. When you fail to repay the loan amount they will take the legal actions on your assets.

5 Things You Need To Do For Getting Mortgages With Bad Credit

All of us want to get rid of the problems associated with the home or apartment renting. It is a touchable dream for all with an excellent and good credit score. When you have a bad credit score getting a mortgage loan may sounds like unachievable one. But it is not so. You can still get Mortgage loans for bad credit. All you need to do id just following some tested proven steps and making sure that everything is in place.

One main thing that every lender will check before lending a mortgage loan is credit score. Anyhow this is not the only one factor. Even if your credit rating is bad, your regular income & your stable job & other assets you have will make the lenders to give a mortgage loan to you. Simply there are so many banks out there which are ready to provide you Mortgages for bad credit and credit cards if you just prove them that you can pay their money back regardless of interest rates.

mortgages for bad credit

1. Analyze why you got bad credit?

Very first thing your employer will check when reviewing your application is credit rating. By seeing the report you can know that you have bad credit rating. But have you ever analyzed why?

If you have any erroneous information printed on your report, get that thing removed from your report. It is a factor which brings your credit score down. Before applying for the Mortgage loans for bad credit get an instant credit report and review your report line by line. Upon finding inaccurate credit information you can raise a dispute with the particular credit reporting agency. Have a copy of the legal notice. So that your creditor can see that particular report and can know that you are disputing on the entries.

When the inaccurate entry goes unproved the credit bureau you were raising the dispute will remove the inaccurate entry form your credit report.

2. Lower your debt to credit ratio

Check out what is your debt to credit ratio, if your ratio is high then the possibility to get approved for mortgages will become very less. Your creditor will look how much debt you have currently and what is your income flow every month. If they come to know that you are already dumped with many debts then they won’t provide the mortgage loan even if you have high credit score. It is because mortgage loans are involved with the bulk sum amount.

So what to do now? Try to reduce your debt by paying off as much as you can before approaching the lender for Mortgages for bad credit. If you make some improvement to reduce your debt to credit ratio you can see a mark improvement in your credit rating too.

3. Initial down payment

Normally when you apply montages loan with good credit your down payment will fall anywhere between 5 to 20% of the entire home loan. But when you apply for Mortgages loans for bad credit you will need to pay at least 20% of the total home loan as a down payment.

4. Keep High Total Assets

When you have high balances in your bank accounts along with the liquid assets like investments and bonds you will be seem like less risky people for the lenders. So Mortgages with bad credit is possible if you can show convincing asset levels to your creditor.

5. Consider some alternate financing options

When usual banks refuse to offer you a Mortgage loans for bad credit, you can obtain loan through Federal Housing Administration, seller financing or leasing.

Follow the above steps and get a montages even with the bad credit.


Can You Borrow Money with Bad Credit

When you want a quick approval for loans and credit cards you should possess good credit rating. But it does not mean that there are no credit card and loan options are open for the bad credit borrowers. Truth is you can get credit cards for poor credit and bad credit.

Every credit card company mostly wants to approve credit card applications. Because it is the only way they can twin a profit. But of course every company has their own policies. So if you want to borrow money with bad credit you need to plan properly and should get compromise with the high interest rates.

Borrow money with bad credit

Bad credit unsecured credit cards

We all have learned about and came across these kinds of credit cards everywhere. So it is not a tough task to explain the Bad credit unsecured credit cards. Providing an approval for secured credit card with bad credit is very different from the approving the unsecured credit card application with the bad credit. When the credit card company issues an unsecured credit card for the people with bad credit they are actually taking the massive risk.

The credit card holder should compromise the risk by paying the high interest rate and their credit limit will be very small too. Generally interest rate on the credit card will fall anywhere between 8.5% & 10.5%. It depends on the credit card company you apply. This scenario is subject to change with the Bad credit unsecured credit cards. Here the interest rate will be 13% – 19%.

If you want to rebuild your credit and want to get approval for the further credit card applications you should handle your card very careful.

Consider the Credit Card Charges

Sign up for the unsecured credit card for credit rebuilding is a valuable one. Because the card holders are given a second chance to raise their credit rating. How the card is being used by the card holder plays a vital role in any further credit problems. Whenever the credit card is used, you need to note the incurred charges.

Making purchases and not repaying the bill at full every month is not an unusual thing for the credit card holders. When you make late payments you will be need to pay the late payment fee and interest. It is for the normal card. But when you missed out the monthly payments in your bad credit unsecured credit cards you will need to pay some high interest amounts. So it is suggestible to set a limit on your spending limits.

Since you have obtained a card despite of your bad credit it is very important to repay everything on time so that you can utilize this second chance of credit rebuilding.

Apart from high interest rates usually card charges will be high when you obtain credit cards for poor credit. So before sign up with the one carefully read the fine print and discover all relating charges. In most of these cards if you missed out even 1 or 2 payment dues, your attractive apr whatever it may be will be raised permanently.

Smartly Avoid High Interest Rates

If you want to keep your credit card charges down you should have a habit of repaying your monthly bills on time. Since you want to borrow money with bad credit timely payments can help you to get a boost on your credit score. You can also lower your high interest rates by being regular with your payment and not keeping any balances on your credit card.