Connect with us

Bad Credit

Loan Application Tips for First Time Borrowers

Published

on

Are you thinking about applying for a loan? Well, here are the basic things you need to do to make sure the loan application process is successful. 

  1. Look At Your Credit Report

You need to read your credit report and understand it to have a proper comprehension of your current financial situation as the lender views it. Also, you will know the type of loan you can apply. Even better, you can fix the errors or mistakes on your file. Once you fix these issues before the application, you should be able to improve your credit score accordingly. 

  1. Be Attractive To The Lenders 

There are a few things you should do to be attractive to lenders. Start by putting a down payment on the current debts to indicate a stable income to cover loan repayments and any other living expenses. It’s also a great way to showcase your good credit history. If you don’t need the money urgently, you should spend the time before making the application by acting responsibly when it comes to borrowing by paying the loans on time and in full every month. Before applying for the loan, you should have all the information required ready. 

  1. Compare The Options Available

Yes, you might be tempted to go to the local bank and apply for a loan. However, there might be other loan options out there that are cheaper and suitable to you. Take a look at these guys at Loanza when taking out a personal loan. However, be careful to avoid leaving too many enquiries since it will have a negative impact on the credit report. Financial brokers and lenders have loan calculators available so you can check the repayments for various loan amounts with different terms effortlessly.

  1. Choose A Bad Credit Loan 

Once you have gone through your credit report and realized that you have bad credit history, you can opt for a bad credit loan. Keep in mind that you will have a higher interest rate than a standard loan. However, if you don’t have a chance with the other loans, a bad credit loan is the only choice. 

  1. Check Your Eligibility 

If you don’t want to damage your credit score when shopping around for loans, you should use eligibility checkers (soft search tools). The tools will run a light check on your credit history to identify the right loan products for you without it counting as a credit check. As such, there is no damage to your credit score. With the information, you can limit your loan applications and apply to lenders who will automatically approve the loans. 

  1. Re-organize Your Finances 

You should start getting your finances in order right now. You should have an idea of the amount of money coming into your account and how you are spending it. That way, you will be prepared for any emergencies. Check on your finances to make yourself attractive to potential lenders. Even better, you need to cut back on spending and consolidate your debts

  1. Avoid Over Borrowing And Know Your Limits 

If you have a good credit score and compare different lenders, you might find some who are willing to offer larger loan amounts. Of course, don’t be tempted to request more than you need. Limit the amount to what you need to reduce your repayments and any negative impact in the event of an emergency. 

Knowing your financial situation is the best way to be prepared for any loan application. Take charge of your finances right now to avoid any surprises in the future.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bad Credit

AOK seminar to look at outliving incomes

Published

on

The North Central-Flint Hills Area Agency on Aging (NC-FH AAA) has announced a new Zoom seminar that provides older Kansans with information on what can happen if people outlive their incomes and how to avoid this situation.

The Answers for Older Kansans (AOK) seminar is scheduled for May 27 at 5:30 p.m.

Paul Shipp, managing attorney at Kansas Legal Services, will present Living Longer and Running Out of Money. Shipp will cover the financial problems that can arise from living longer than you had planned. Topics covered in this presentation include bad credit, reverse mortgages, avoiding credit card debt, and bankruptcy. A handout from Kansas Legal Services on ways to protect your income and assets will be available to those who register.

Registrations must be made by noon on May 27. To register visit ncfhaaa.com/seminars or call 1-800-432-2703.

The seminar is without cost, however, donations that support and expand services for older Kansans, people living with disabilities and their caregivers are welcomed.

Details on how to participate in Zoom technology are available at www.ncfhaaa.com and login instructions will be sent to those who register.

Source link

Continue Reading

Bad Credit

Can I be denied a job due to bad credit?

Published

on

Can I be denied a job due to bad credit?
Image source: Getty Images


People often worry about their credit history when it comes to applying for a new credit card, a mortgage or a car loan. If you have poor credit, should you also be concerned about finding work? Can you be denied a job due to bad credit?

Let’s examine the facts.

Plot your path towards financial freedom with our Hero’s Journey tool!

MyWalletHero is here to help you learn about taking control of your money, whether that’s paying off debt, working towards a short-term money goal, or investing for your future.

This tool can help you understand the next steps on your journey – simply choose a goal that best describes your current interests to get started.

What is bad credit anyway?

Bad credit is basically a negative assessment of your finances based on your history of borrowing. Bad credit implies that you have a bad track record with lenders. This is most likely because you have a pattern of not paying your bills on time or defaulting on your loans.

Is it legal for employers to check my credit report?

Law and finance firms are legally required to perform credit checks on potential employees. However, other kinds of employers can also conduct credit checks on you before they hire you. But they must ask for your permission before they do so.

In many cases, a credit check will be performed by a company if the role you are applying for involves dealing with large amounts of cash.

Why might employers want to check my report?

There are many reasons an employer might want to check your report. For example, they might want to ensure that:

  • You are who you say you are.
  • You have a good track record of managing money.
  • It’s not too much of a risk to let your manage money.
  • Your financial behaviour will not affect your work performance.

Could you be rewarded for your everyday spending?

Rewards credit cards include schemes that reward you simply for using your credit card. When you spend money on a rewards card you could earn loyalty points, in-store vouchers airmiles, and more. MyWalletHero makes it easy for you to find a card that matches your spending habits so you can get the most value from your rewards.

Can an employer deny me a job due to bad credit?

Yes. According to credit reference agency Experian, if your prospective employer feels that your current financial situation could impact your ability to perform well in the role, or if your credit history shows poor financial planning, they may decide not to hire you.

Generally speaking, however, employers are more likely to be concerned about serious ‘red flags’ in your credit history, like bankruptcy rather than the odd missed payment.

In any case, employers only get access to your ‘public’ credit report. This contains your electoral roll information and any major red flags such as bankruptcies, individual voluntary arrangements and county court judgments.

They will not have access to your detailed credit repayments or your credit score.

How can I keep my credit history from affecting my ability to get a job?

If a prospective employer runs a credit check on you, ultimately you have no control over what they do with the information, including denying you a job due to bad credit.

The best thing you can do to minimise the impact of your credit on your chances of getting a job is to review your credit report beforehand.

You have the right to one free credit report per year from each of the three credit agencies (Experian, TransUnion and Equifax). Before you apply for a job or attend an interview, request your report and review it for any errors so that you can have them corrected ahead of time.

Even if there are no errors, knowing what is on your credit report puts you in a good position to answer any questions that may arise during the hiring process.

Indeed, if there’s something in your report that employers might consider a ‘red flag’, don’t panic. Instead, begin preparing an explanation to give to them. If it was, for example, caused by financial hardship beyond your control, the employer may take this into account.

Alternatively, you can contact a credit reference agency and request that a notice of correction be added to your report. This is a brief note of up to 200 words in length that explains circumstances that a lender might otherwise question.

Are you making these 3 common investing mistakes?

These all-too-common investing errors can cause you to miss out on the long-term wealth-building power that shares can hold….

To help you side-step these pitfalls, and move forward on your path to wealth-building, we’ve created a free report, “The 3 Worst Mistakes New Investors Make”.

Just enter you best email below for instant access to your free copy.


Some offers on MyWalletHero are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.




Source link

Continue Reading

Bad Credit

Refinancing Your Subprime Auto Loan

Published

on

Refinancing is a wonderful way to save money on your monthly car loan payment – but it can cost you more in the long run if you’re not careful. Refinancing when you have a subprime auto loan isn’t always as easy as refinancing a vehicle when you have good credit. Working with the right lender can help, though.

What Is Refinancing?

Refinancing is when you replace your existing car loan with a different one for the same vehicle, which may have either a lower interest rate, a longer loan term, or both.

Qualifying for a lower interest rate is optimal for getting a lower monthly payment and saving money overall. If you only extend your loan term without getting a lower rate, you actually end up paying more in interest charges over the term of your loan.

Auto loans typically use a simple interest formula, meaning your interest charges add up daily. The longer your loan term, the more you pay the lender – it’s wise to choose the shortest loan term you can afford. If you only extend your loan term you may end up paying more than the vehicle’s value!

Refinancing can typically be done with your current lender or with another one. It’s a good idea to shop around for the best possible rate before going with the first offer you receive. When you shop for the same type of financing with multiple lenders in a two-week timeframe, it’s called rate shopping. When you do this only one credit inquiry impacts your credit score instead of multiple, minimizing the negative impact that hard pulls can have on your credit score.

Options for Bad Credit Borrowers

Taking out a subprime auto loan is a great way to improve your credit, so, if you’ve kept up with your loan to this point and just need a little wiggle room in your budget, refinancing could be for you. Your credit is an important factor in refinancing your auto loan because refinancing is typically reserved for people with good credit.

However, when a borrower already took out a subprime car loan, many refinancing lenders are willing to work with them as long as they’ve made improvements to their credit over the course of the loan. Better credit alone doesn’t qualify you for refinancing, though.

In order to qualify for refinancing, you, your vehicle, and your loan all need to meet the requirements of a lender. These vary, but in order to refinance your car you typically need to meet these qualifications:Refinancing Your Subprime Auto Loan

  • Have a better credit score than when you began the loan
  • Have had your auto loan for at least one year
  • Have an acceptable loan amount
  • Have no more than 100,000 miles on your vehicle
  • Car can’t be more than 10 years old
  • You must be current on your payments
  • There can’t be negative equity in the vehicle

Lenders that refinance typically prefer cars that are in good condition, that aren’t too old, and have lower mileage. Some lenders may not want to refinance a vehicle that’s at risk for breaking down or is depreciating quickly.

They’re generally looking for a loan that isn’t too new, or too close to being paid off as well. And, refinancers may also require that you haven’t missed a payment on your original car loan. A borrower whose current on their loan gives a lender confidence you’ll manage the new loan well.

Alternatives to Refinancing Your Subprime Auto Loan

If you’re not able to refinance your vehicle, you typically still have the option to trade it in for something more affordable. Even if you’re still paying on a loan, all you have to do is pay off the loan to release the lien on the car.

Even if it’s years from the end of your loan term, you may have a good chance at trading in your vehicle, especially now. Due to fluctuations in the auto market, used cars are in high demand currently, which means that dealerships may be willing to pay a higher price to get your used vehicle on their lot – even if you’re a bad credit borrower looking to trade-in.

If you still owe on an auto loan this gives you a better chance at selling your car for the amount you owe to the lender. It may even give you enough cash left over to put toward your next, more affordable vehicle!

Ready to Get Started?

If you think refinancing your subprime auto loan is the way to go, you can check out our resources, here. But, if you think that finding an affordable, used car with a lower monthly payment is the right choice for you, we want to get you started toward your goal today!

At Auto Credit Express, we’ve got a coast-to-coast network of special finance dealerships ready to work with borrowers who are struggling with credit challenges. To get connected to a dealer in your local area that’s signed up with subprime lenders, simply fill out our auto loan request form. It’s fast, free, and never carries any obligation.

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk/debug.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source link

Continue Reading

Trending