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Avoiding Declines by Repairing Credit
Sorry you are declined...Have you ever heard this before when you went to apply for a loan or a credit card? If you have, this means that your credit files has some negative reports and it is time to clean up your act. Credit files are a...
Credit Card and Insurance
Credit card and insurance are two very important financial services in modern sociaty. In a world that is built on the basis of credit, credit cards is a part of daily life for most ordinary people. Insurance, on the other hand, is something to...
Credit card companies: the rewards, promos and services that make the difference
With so many credit card companies offering credit cards, the
consumer market for credit cards has become one tough cookie to
crack. To stay competitive, credit card companies offer various
extra services, rewards programs and promos that...
Homework on College Credit Cards
With credit cards dominating the market world today, even
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SuperCharged Secret 4, Credit Card Utopia
YOU SCRATCH MY BACK, AND I’LL BUY SOME MORE BEER!
Let’s just take a brief moment to recap:
If you’ve been following along on this journey with me, learning the 5 Super-Charged secrets to Credit Card Utopia, then you now know 3 very...
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Poor Credit Debt Consolidation Loans
Poor credit debt consolidation loans are an excellent option to
consider if you are an individual who wouldn't qualify for a
traditional loan, but are in need of money to pay off bills,
consolidate debt into one lower payment, and improve your style
of living.
Understanding the exact meaning of a poor credit debt
consolidation loan is extremely important. Poor credit debt
consolidation loans are meant with individuals that have low
credit report scores, as rated by Experian.com, Transunion.com,
and Equifax.com These three credit bureaus are where lenders
turn to prior to offering a loan to a business or individual.
Lenders obtain an individual's credit scores to determine if the
person is worthy of the loan. Scores listed through the three
credit bureaus are configured and calculated using software by
the Fair Isaac Company, and are called FICO scores. The FICO
scores range between 300, for no credit, and 850, for perfect
credit.
Virtually no one has perfect credit scores at 850, because
scores are based on a number of factors, including debt to
income ratio and late payments, to name a few. However, scores
of less than 619 are considered poor credit, and scores below
550 make it virtually impossible to obtain a loan except in
certain instances where a lender specializes in poor credit debt
consolidation loans and is looking for such borrowers. In
general, though, scores below 619 are considered poor credit,
and the borrower is considered a high risk to the lender.
Having poor credit is difficult, and it's not ideal by any
means, but it also doesn't have to be something that lasts
forever. Credit scores need not rule out the options a loan can
offer. Relief can come with obtaining a poor credit debt
consolidation loan. While it does take time, credit scores can
definitely be repaired after obtaining a poor credit debt
consolidation loan.
When conventional loans are out of the picture due to low credit
scores, a poor credit debt consolidation loan can offer a way
out of having poor credit, and a way of repairing credit scores
and creating a better lifestyle. Poor credit debt consolidation
loans can come at a time when the borrower needs money the most
- when payments are high, or when income levels aren't high
enough to pay all of the bills. They are available to even those
that are self-employed or have been involved in a bankruptcy
more than ten years ago. Additionally, a poor credit debt
consolidation loan offers a "light at the end of the tunnel" for
repaying debt faster, as well as consolidating all bills into
one smaller monthly payment. By making these payments on time,
credit scores can jump as much as 100 points or more in one year.
Pros of Poor Credit Debt Consolidation Loans
1. Poor credit debt consolidation loans put money into the hands
of an individual who wouldn't otherwise qualify for a loan.
2. These types of loans give borrowers a chance to consolidate
their debts and gain control over their financial state, as well
as an opportunity to invest in a home or automobile if
needed.
3. Poor credit debt consolidation loans allow individuals to
borrow money without giving a reason, and therefore, can be used
for any purpose, including a college education or a business.
4. A poor credit debt consolidation can allow the borrower a way
to improve their credit rating, provided that all payments are
made on time.
5. There is an emotional and psychological impact involved with
poor credit debt consolidation loans. It gives individuals an
opportunity to turn their life around and improve it when they
previously felt that it was hopeless. Poor credit debt
consolidation loans can also help individuals stay out of
bankruptcy.
Cons of Poor Credit Debt Consolidation Loans
1. The money goes into the hands of an individual with a history
of poor spending habits. If the money is used in a wasteful
manner, or to "splurge" on a high ticket item, for example, the
loan will only add to the current financial burden if it is not
used efficiently and wisely. An additional loan used for these
purposes can lead to bankruptcy and financial destruction.
2. If payments are consistently late after obtaining a poor
credit debt consolidation loan, credit scores will drop even
more.
3. Interest rates are much higher on poor credit debt
consolidation loans than for conventional loans. However, if the
loan is used wisely, it can be refinanced at a lower interest
rate once credit scores increase.
4. Poor credit debt consolidation loans that involve collateral
may mean that if the money is not used wisely, ownership of the
collateral may be at stake. The lender has the right to take the
collateral if payments are not made on time or not made at all.
After obtaining a poor credit debt consolidation loan, and the
debts have been paid, get your finances in order. Balance your
checkbook to the penny, and don't make any unnecessary
purchases. Don't make extravagant purchases, either. Remember,
the reason for obtaining the poor credit debt consolidation loan
was to get back on track. Don't employ poor spending habits that
can make credit scores end up even lower. Stay away from high
interest credit cards, credit cards that can't be paid off
monthly, and especially, payday loans. If a large purchase is
needed, such as furniture or a vehicle, look into used items.
Furniture can be purchased at thrift shops and through newspaper
classified ads. Join your local Freecycle group (freecycle.com)
to obtain items for free that you might otherwise consider
purchasing. Shop for vehicles through private owners, not at car
dealerships. Privately owned vehicles will offer a lower cost to
you without any added costs. Have a trusted mechanic check the
vehicle over before you pay for it, though.
About the author:
Rebecca Game is the founder of Digital Women ®, an online
community for women in business. A 30 year entrepreneur and
dedicated to helping other women find small business loans.
Visit her site: Loans for Women
http://www.digital-women.com
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| Credit Reports - Credit Cards - Car Loans - Home Loans - Credit.com |
| Credit.com offers a variety of credit related products and services including credit reports and credit scores, credit cards, car loans, home loan and ... |
| www.credit.com |
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| Equifax Personal Solutions: Credit Reports, Credit Scores ... |
| National consumer credit reporting company that offers credit reports, FICO(R) credit scores and identity theft protection products to consumers and small ... |
| www.equifax.com |
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| The FTC's web site on Credit |
| Credit is much more than a piece of plastic, and the resources on this site can help you become a more savvy consumer. You’ll also find compliance ... |
| www.ftc.gov |
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| Federal Trade Commission - Consumer Credit Center |
| Features an assortment of helpful articles related to credit issues. |
| www.ftc.gov |
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| AnnualCreditReport |
| Site set up by the big three credit reporting agencies in the United States, to furnish free annual credit reports, as required by federal law. |
| www.annualcreditreport.com |
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| Springboard - Non-Profit Consumer Credit Management |
| Our mission is simple: To offer education on the wise use of credit. ... SPRINGBOARD has been approved to provide credit counseling services and issue ... |
| www.credit.org |
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| myFICO - FICO Credit Scores, Online Credit Reports and Identity ... |
| myFICO.com: Get your Free credit report and Free credit score with a 30-day trial of Score Watch. All three FICO Scores and Credit Reports Available now ... |
| www.myfico.com |
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| Credit Suisse Global |
| Credit Suisse Group is an international financial services group. - Shares part of SMI. |
| www.credit-suisse.com |
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| Experian: Free Credit Report and Credit Score, Credit Check ... |
| Credit referencing and consumer targeting for the USA and other countries. |
| www.experian.com |
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| National Credit Union Administration - Home Page |
| An independent federal agency that supervises and insures 7152 federal credit unions and insures 4240 state-chartered credit unions. |
| www.ncua.gov |
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| Credit - Wikipedia, the free encyclopedia |
| Debits and Credits, a type of bookkeeping entry; Credit (creative arts), acknowledging the ideas or ... Retrieved from "http://en.wikipedia.org/wiki/Credit" ... |
| en.wikipedia.org |
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| Credit (finance) - Wikipedia, the free encyclopedia |
| Any movement of financial capital is normally quite dependent on credit, ... Sometimes if a person has financial instability or difficulty, credit is not ... |
| en.wikipedia.org |
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| The National Foundation for Credit Counseling |
| DebtAdvice.org is a service provided by the Members of the National Foundation for Credit Counseling (NFCC), most of them known as Consumer Credit ... |
| www.nfcc.org |
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| FreeCreditReport.com | Free Credit Report and Credit Score Online ... |
| FreeCreditReport.com: Free credit reports and credit scores from Experian. Get your free credit report and credit score now. It's free, fast, and easy! |
| www.freecreditreport.com |
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| Compare credit cards | apply for a credit card | 0% balance ... |
| Compare over 300 credit cards, including 0% offers and balance transfers, and make a credit card application online... |
| www.moneysupermarket.com |
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| Ford Credit - Auto financing for Ford, Lincoln and Mercury cars ... |
| Ford Credit provides auto financing to finance a lease or purchase a car or truck through Ford, Lincoln or Mercury dealerships. |
| www.fordcredit.com |
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| The Credit Card Prank |
| In my lifetime, I have made nearly 15000 credit card transactions. ... Credit card signatures are a useless mechanism designed to make you feel safe, ... |
| www.zug.com |
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| Credit magazine, corporate bonds, derivatives, structured credit ... |
| Credit magazine provides information on the international credit markets for credit investors, issuers and market professionals. |
| www.creditmag.com |
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| CUNA: The Credit Union National Association |
| News and resource directory about credit unions. |
| www.cuna.org |
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| Credit/Debt Management - Tools and Advice for Managing Credit and Debt |
| Drowning in debt? Trying to improve your credit score? This is the place for you. Get real world information and tips, as well as the legal low down, ... |
| credit.about.com |
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