Voices in Finance » Bad Credit

What Does the Bank of America Sale Mean for You?

Mike — Tue, 30 Aug 2011 08:11:28 +0000

This month, Bank of America has announced that it is leaving its UK and Ireland credit card businesses.

This follows other moves to transform Bank of America’s credit card operations such as the sale of the UK arm of the business lending portfolio and its sale of the Spanish credit card business.

The Bank of America credit card business was huge in Europe, amounting to $19 billion in credit card loans in Europe alone.

However, after reporting record losses of $8.8 billion in the quarter ending June 2011, Bank of America has decided to sell elements of its portfolios outside the U.S.

But if you hold a Bank of America credit card in the UK or Ireland, what impact will this announcement have on you?

Your debt will be moved on to whoever purchases Bank of America’s credit card loans portfolio. In April 2011, Bank of America sold £200 million of small business card loans to Barclays.

Generally, whoever buys Bank of America’s credit card loans will honor any existing promotional rates you had with Bank of America. But be warned, if you miss a repayment your interest rate will automatically switch to the standard APR.

Similarly, if you spend on the card, that new debt will be subject to the standard APR also. You should receive a letter stating to whom your outstanding credit card debt has been moved to.

It should also let you know if your existing terms and conditions remain the same and whether any direct debit payments will be automatically transferred over. It may be time to investigate transferring your debt to a credit card with a promotional rate.

If you are worried about the extent of your outstanding credit card debt or are unable to secure any more lending due to your credit history bad credit credit cards may be an option for you.

Bad credit credit cards allow you to borrow while you work on improving your credit rating. These credit cards will not offer any special interest rate; in fact, they will probably be above the average APR on the market as you are viewed as high risk.

The way to operate these cards is to pay off your balance in full every month so you do not incur any interest charges. By operating the card perfectly for a period of time, maybe six to twelve months, you should be able to rebuild or improve your credit score.

This should give you access to more and better borrowing options in the future. It should also help you adopt a responsible lending approach, only borrowing what you need and making repayments in full.

The unstable economy has made lenders much more cautious about lending and credit is certainly not as easy to get as it was a few years ago. Seemingly stable institutions like Bank of America with a long and successful history have stumbled in the global recession.

Clawing back losses for banks means higher interest rates, more conservative lending and passing on your debt to other institutions.

It is prudent to keep an eye on the companies you are involved with and make sure there is not a better deal out there that will give you a better interest rate.

Bad Credit RV Loans

J. Hamilton Fraser — Sun, 27 Feb 2011 22:02:04 +0000

In the current economic climate and many people are finding themselves in, a number of folks who might have wanted to get an RV for vacation or other types of recreational use, are finding it increasingly difficult to afford their basic expenses let alone pay for the additional loans and costs of owning one of these types of vehicles. This is especially the case as banks and other types of lending institutions have become much more critical of people’s past credit history when offering RV Loans, this is so that they can keep themselves protected, salient, and in business. The good news is, that there are a number of RV Financing Bad Credit alternatives in addition to going to traditional banking institution so that you can get the best possible RV for your particular needs at a reasonable and fair price and interest rate.

As mentioned previously, one of the initial places that you can look towards getting a loan is from a traditional bank or other type of credit union and lending institution. While these companies will often offer a few different options to potential customers, generally what they offer is very limited and often comes with additional hidden fees and incredibly high interest rates that most people couldn’t reasonably afford even if they had fantastic credit.

An alternative to this kind of lender is to go with RV specialists who deal particularly with recreational vehicles and travel trailers. Not only do these companies typically offer many more options in terms of their various packages and finance rates, but they often have much more up to date information that they can share with you that can allow you to further maximize how much bang you’re getting for your buck. Generally, you will find that these lenders will often give you far more accurate estimates as well through the use of software called RV loan calculators which can allow you to get a more accurate read out as to how much you will actually owe in interest over the years of your ownership, this is invaluable for the average person in their financial planning towards an RV purchase.

Improve Your Credit by Eliminating Debt the Right Way

J. Hamilton Fraser — Thu, 24 Feb 2011 18:22:14 +0000

When it comes to measures to bring back financial stability in your life, it is possible to reduce debt without spending a lot of money paying for expensive and ridiculously priced debt reduction services. Knowing the options and the credit score factors that are available to you will enable you to significantly bring down the amount of money that you owe to your creditors.

If you want to eliminate credit card debt, one of the things that you have to remember is that you have to be open in whatever option will be proposed by your creditors. Before that, you have to understand first about the differences between the programs so that you will at least have a foundation on the things that you need to know. Educating yourself will guard you against fraudulent programs. If you need to know about the usual options available to debtors like you, here goes:

Apply for bank loans – Loans are probably most famous way of eliminating your debts in the less hassle means possible. You can get loans from banking institutions easily, provided that you will furnish all the necessary information and documents required from you. If your application has been approved and you have received the money already, you can then pay for your debts straight away. The main goal of this technique is to prevent unnecessary charges made by the creditors such as interest fees and penalties for delayed payments.

Pay off your bills as soon as you receive them – One of the reasons why most debtors find it hard to bring down the amount of debts that they have is because of the fact that they usually neglect to pay their credit card bills right on the dot. As a result, your creditors charge you with fees for delayed payments that amount and add up to your balance. Once your credit card bills arrive at your doorstep, pay them off whether you can afford or not to pay more than the monthly minimum. The point is you need to compensate.

Announcing bank foreclosure – Out of all the options, you can try to file for bankruptcy if you have ran out of other methods. This is because once you filed for it, you can never retract and it will take some time before you can rebuild your credit score again. So for those who want to eliminate debt and free themselves from their responsibility towards their creditors, try to do other strategies before closing your bank accounts.

Cleaning Up Bad Credit

J. Hamilton Fraser — Tue, 22 Feb 2011 21:41:07 +0000

Have you been getting behind on your monthly credit card bills, or getting rejected by lenders? If yes, then you are just one of the 43 million individuals in the United States who are being affected by this difficult economy. TotallyMoney explains that getting a dismal credit report can be expected during these tough economic times, but you do not have to let yourself drown in it. In fact, there are a number of opportunities that can help you redeem your good credit standing.

Go for a Secured Credit Card

To get your credit rating back on track, you have to find ways to prove that you are a good credit holder, and acquiring a secured credit card can be your first step. A secured card is one that is funded by money that you have deposited in the bank and your credit limit is defined by the amount that you have.

Acquire an Installment Loan

As credit bureaus are looking at your capacity and attitude towards handling your finances, getting a personal loan and fulfilling your payment obligations can initially push your scores up. As you are still yet to work on your credentials, you can explore loans for people with bad credit such as those being offered in community and union banks.

Pay More Than the Minimum Amount Required

Credit bureaus considers how you pay your credit bills and places prime points on those that maintain a significantly big gap between their outstanding balance vis a vis their credit limit. A good way to achieve this is to pay for more than the minimum required, so that you maintain a lower balance. Prioritize settling cards where you are in most debt then move your way to the rest of your credit accounts.

Stick to What You Can Afford

Curtail your credit card use if you can’t afford to pay for it. Credit bureaus look into your outstanding balances and by restrictng your spending to use only a quarter of your allowable limit, then you can avoid worrying about your credit standing.

Maintain a Long Standing Credit Card Account

Most of us get excited with the arrival of a new credit card and just puts the old ones at the back of our wallet but financial experts recommend using these old cards from time to time to keep them active, as credit bureaus favor individuals who have maintained a good standing credit card over time.

Follow these simple steps and you are well on your way to getting back a credit report that you can be proud of.

550 Credit Score

Mike — Wed, 02 Feb 2011 19:13:56 +0000

A credit score is more important to a consumer than they may think. Many people have heard about the rating however they may not know much about it. A person’s credit score can affect their ability to buy a car, a home, or any other time they go to borrow money. It can also affect the ability to obtain a cell phone contract, have gas or electricity utilities set up and it can even impact a person’s ability to get a job. A credit score is a numerical value that can range from a 500 or 550 credit score all the way up to 850.

The range just described applies to the FICO calculated credit score. Vantage Score is another newer type of measurement that is used for shorter term reports. The FICO score however will show accounts that are reported for up to seven years into the past. A credit score is basically a synopsis or quick reference grade as to the overall report information. The information contained in a person’s credit report is used to generate the score. As a result, things like on-time payments, quantity of accounts that are in line with a person’s income, accounts that do not have over a 50% revolving balance from month to month and accounts that have been open and in good standing for a long period of time are all things that make a credit score higher.

It is not hard to guess what makes a credit score not so good. Things like bankruptcies, lawsuits, and delinquent or charged off accounts, late payments, garnishments, or accounts that have routine late payments over a long period of time all make a credit score lower. People how registers a score of 500 or 550 has very poor credit and individuals who do not score at all have even worse credit. A good range to be in is about 700 and up. For instance the minimum credit score to qualify for market rates or rates that are most often advertised by lenders is about 740. In general if you have a score of 680 and up, you should not have issue borrowing money. If your score is between 680 and 730, you may not be getting the best rates available however these are very good scores.

The best way to improve a 550 credit score is to perform a few basic behaviors when dealing with your credit. Always make payments on time because this is one of the most negative influences on a credit score. Lenders do not like to see that person always pays late. Restricting the number of accounts you have open is also a good way to improve a score. People may have paid on time throughout their entire credit history but still not have the best score because lenders view them as being overextended or having too many accounts open. The main idea to keep in mind is that lenders do not care how large of an account you are paying, how much money you make and even that accounts have been completely paid off all at once without being late. Lenders care about consistency and stability and one of the only ways to prove that are on-time payments over a 24 month period or greater without being overextended.

Bad Credit Loans and Those the Need Them

J. Hamilton Fraser — Mon, 25 Oct 2010 04:48:48 +0000

Today our society has turned its thinking into an “all about me” mentality. When we need something done, not only do we want it done now, but we want it done first. Our needs are more important than the next guys, right? Keeping that thinking in mind is what has made applying for personal loans for people with bad credit move into the forefront with technology. Not only is the information easy to get and research, you can do it all from the comfort of your home.

When this technology began to evolve, no one could imagine just how easy the computer world could make our lives. All the information you could ask for has become available at your fingertips. The best part of all this; when you have questions, chances are, you can find the answers right in front of you. This is another way to be more efficient in today’s world. When you are doing research for a bad credit loan, you will be amazed at the amount of information you can gather in minutes. No more listening to what someone else thinks or believes. You can find it out for yourself. The more information you gather, the more comfortable you will feel with your decision.

Applying for a bad credit loan is quicker and easier than ever before. If you want to be even more efficient, being prepared before you sit down in front of your computer will save you a lot of time and frustration.

The first thing you want to do when looking for a bad credit loan online is research. The more information you can gather the more informed decision you will be able to make. When it comes to your financial future you can never have too much information. Look at getting anywhere from 3 to 5 quotes. I suggest this because it will show you the variety of offers that are available to you. Be cautious, what may look good on the surface, may not be so good when you start comparing it to other quotes.

The biggest advantage to a fast cash online loan is less is required on your part. Most of the time, as long as you can provide proof of employment; you are guaranteed to receive the loan. Providing proof can be as simple as having identification from your employer or a recent paystub. Chances are the lender will verify your employment, so be honest.

The drawback to this type of loan is the interest rate. Although, this is a very easy loan to qualify for, there is a reason that you are seeking it. Chances are a conventional lender will not take the risk. Taking a fast cash loan is a good step in repairing your credit. Make sure you are able to repay the debt. Nothing hurts your credit more than taking a fast cash loan and no repaying it. Bad goes to worse and you will begin to feel like there is no way out of this hole.

Phoenix Small Business Investing – “Bad” Bad Credit Business Loans

J. Hamilton Fraser — Fri, 22 Oct 2010 17:28:57 +0000

Bad credit affects people in many different ways. However, for small business owners and entrepreneurs it is a particularly painful thing to deal with. Phoenix small business investing experts state that the number one challenge for small business owners is getting the funds to get their businesses off the ground.

The first thing a small business owner with bad credit must know is that if it sounds too good to be true then it is. There are a number of companies that purport to be able to give loans in the hundreds of thousands of dollars to business owners with bad credit. Lenders who deal with small business loans in Arizona, as well as lenders across the nation, state that most small business owners do not realize that the advertised rates online or in the papers may not apply to them–or that they come with a big catch.

As a matter of fact, Phoenix small business investing officials say that unsecured loan providers are actually legally allowed to advertise the best rates they offer–with a catch. They are allowed to advertise these extraordinary rates as long as at least two-thirds of their applicants actually will get the advertised rate. This means that while there is a good chance that you may get the advertised rate, there is still a third of a chance that you will not.

In either case, secured or unsecured loans given to business owners with bad credit come with higher interest rates, according to Phoenix small business investing experts. Along with a higher interest rate, some form of additional security may also be required to obtain the loan.

So, what are your best bets? There are a few options. First, Phoenix small business investing authorities state that if you do decide to go ahead and get a bad credit business loan you should consult with a number of companies. There are many different types of loans available for people with a bad credit history. Remember, that like nearly everything in life, you can negotiate and perhaps explain your financial situation to the lender. If you recently relocated or were laid-off there is a small chance that the lender may show some leniency. If you have bad credit, you are considered high risk so your interest rates will be higher, but secured loans generally have lower interest rates than unsecured loans.

Second, you can take the time to establish some type of credit under your business name. Phoenix small business investing authorities state that this takes a few years, but it is one of the best options that business owners with bad credit have. This is a great option because you can establish credit that is not connected to your personal credit, and in the future you can apply for a loan without having your personal credit checked. In the short term, get a business checking account, phone line, and business credit card in the name of the business. If you get a business credit card make sure to ask the credit card company if they report information about their accounts to the credit bureaus. You want to go with a company that does and if they do not you can ask them if they would be willing to do so for your account–if they do not or will not, you should search for another credit card company. You should do the same thing with your telephone company.

Lastly, you can always ask friends or family if they would be willing to help you. However, this is not an option for everyone. Keep in mind that even if it is an option for you that you should explain the risk to anyone who is willing to help you out. The best thing is to be absolutely honest.

Ways To Counter Your Bad Credit Cell Phone Issues

J. Hamilton Fraser — Sat, 16 Oct 2010 16:37:57 +0000

You still deserve to have a cell phone, even if the economy is in the tank and credit companies have much stricter requirements. Thankfully there are some alternatives available to you with the bad credit cell phone problem. It possible to find companies that do not need you to go through the hassle of deposits or the expense of prepaid plans to give you a cell phone. It is even possible to find plans that include really quite extensive coverage areas.

It is hard to see the multi-billion dollar wireless networking industry needing yet more of your money, so do not be put off from shopping around to find the best deal. It is pretty common to see advertising slogans yelling at you that their particular deal is the best ever, limited time only, none better, and so on, but it seems that if you just spend some time looking you can always find a better deal out there somewhere. It is always worth investigating the claims of the company and doing your own figuring out when trying to decide which plan offers the best bang-per-buck.

Always ask about possible roaming fees, whether the company indulges in consumer credit agency reporting, the usefulness of their customer service, and the simply reliability of their service. Anything over eight cents a minute is really pushing it with prepaid phone plans, so be sure to ask about the rate per minute. See if you can get a rebate after 12 months with prospective contract phone plans. It is your money, so you should decide whether or not it is worth it, not the companies you are buying from. Always work hard to protect yourself from rip-offs by asking the hard questions.

Just living can cost a lot more if you do not have good credit to begin with, or do not have any at all. Taking the time and effort to carefully research each company’s bad credit cell phone offers will certainly pay off in the long run, and you will save both cash and headaches long-term if you do the requisite homework.

Who Can Get The FHA Home Loans For Bad Credit?

J. Hamilton Fraser — Sun, 10 Oct 2010 02:12:50 +0000

In today’s time wherein almost all companies seem to refuse approving loans to those who have bad credits, it is indeed a blessing to have the FHA Home Loans for bad credit. The good thing about them is that their requirements are less strict and demanding as compared to some other companies. Now, if you want to know if you can start a transaction with them, here are some ideas on who are qualified for their programs;

If you have a minimum score of 620 in your FICO (FICA), it is a good mark.
When you have filed for bankruptcy, you might really have a hard time finding home loans. Well, with FHA, just after 2 years of your filing, you are already qualified to get started with them.
Another problem that you might encounter is when you have filed for foreclosure. With FHA, just 3 years after foreclosure, you can also get their services.
Even if you are self- employed, they will still accommodate you.

Aside from the above mentioned qualifications, everyone, especially those who have not done home loans before, can start transactions with them. In short, it encompasses everyone- those with bad credit records and those who don’t have.

Given the fact that FHA is almost for everyone, you might wonder what services you can get with them. Here are some of them;

There are 100% financing options available. This is good if you know that your source of income alone cannot suffice all the expenses.
You need not to do reservations unlike some other companies.
A down payment of less than 3% of the selling price.

All these and more are the services and opportunities that you can get from FHA. Just check them out for you to know more. For now, just visit freefinancialplanningadvice.com for some more ideas on home loans as well as debt relief solutions.

Consider Bad Credit Refinance

J. Hamilton Fraser — Sun, 03 Oct 2010 23:02:42 +0000

Thousands of people across the country have the bad economy to blame for the damage to their credit rating. The economic recession has continued for much longer than was expected, unemployment rates are still astonishingly high and well paying jobs are extremely tough to come by. It is hardly any surprise that millions of monthly installments are getting missed and debts are rising and getting out of hand. If you are one such victim, maybe you should consider bad credit refinance to consolidate your existing loans.

What can bad credit refinance do for you? The purpose of getting any sort of bad credit refinancing is essentially to help you get out of your existing debt situation. Many people have many different loans taken at different times at different interest rates. And, of course, there are different outstanding amounts on each of these loans. What you can do is convince a lender to give you a loan so that you can settle with your existing debtors for a smaller amount. You will be surprised that many lenders are willing to do this and remove their entry from your credit report instead of waiting for the entire sum of money to be repaid. What happens then is that not only do your existing debts get repaid, but your credit rating also starts to improve.

Bad credit refinance is likely to come with a high interest rate. But, considering that you are using your loan amount to clear your existing debts, it decreases your debt to income ratio. This puts you in a position to pay this loan back without missing any monthly installments. When you are stuck with a bad credit rating, you may benefit, like many other people, by availing for yourself bad credit refinance to clear all your existing debts.