Steps to Improving Your Credit Score

It is undeniable - we are facing some hard economic times. In these times it is imperative that you keep your credit score as high as possible if you have any goals of buying a house or a car or anything else that will require lending. There are 6 key steps that you should strive to take in order to ensure the best credit score possible.

1. Reduce your open credit card utilization as much as possible

This may be the most important factor of all in boosting your score. If your credit cards are maxed out, you will be viewed as a high risk by many lenders. Strive to keep your utilization below 20% - if you're already there, great! If not, put every extra cent you have towards reducing your utilization.

2. Make sure to pay all of your bills on time

This one is a no-brainer. If you establish a good history of on time payments, lenders will view you as having less risk and more credit worthy. Late payments can retain on your credit report for 7-10 years, so make sure that you keep up with the due dates!

3. Don't close your old accounts!

Another important factor to your credit score is the average age of your accounts. By keeping an old card open that you don't use, you add history to your report. If you were to go and close this account, your average history would be reduced thus decreasing your score.

4. Have a good variety and number of open accounts

This tip does not carry as much weight as some of the others mentioned above, but is also important. By carrying a mix of revolving (credit card) and installment (student loan, car loan) loans and paying them on time, you show that you are able to maintain responsibility which will increase your credit score.

5. Keep your hard credit inquiries to a minimum

This number resets every 2 years. You should strive to keep the number of requests for hard inquiries to under 2 in this time period if possible. Every time you apply for a credit card or a loan, this number is increased, which will slightly hurt your score.

6. Don't rack up any derogatory marks

Items such as bankruptcies, accounts going to collection, liens and civil judgments can devastate your credit score. Make sure that you live within your means and pay everything on time. These marks could take up to 15 years to be removed from your report so prevent them as much as possible!

Follow these 6 steps and start on your way to financial freedom!

Brad @ Whatisagoodcreditscore.biz.

Tricks Credit Card Companies Use

Many credit card companies offer cards that reward you with frequent flier miles or money towards the purchase of a new car. But you should study the terms carefully because if you don't qualify, they have been known to send a completely different card with different terms. Before you pay more in interest, cancel the account immediately. You should also avoid zero-percent offers because there's always a big catch especially if you miss a payment or when the introductory period ends and the rate goes sky-high.

They have fees to charge for nearly every situation. Some charge a late fee if your monthly payment isn't received by a specified time on a certain day. Check your statement for due dates and times. Watch for over-the-limit fees and transfer fees if you're transferring a balance from another credit card. If you're maxed out and the new credit card has a lower limit than you think, you'll be hit with an over-the-limit fee and possibly a higher interest rate as a consequence for going over. Also be sure to ask how long the new credit card's introductory rate will last. Usually the rates are only good for six months. Taking cash out of your credit card is a bad idea because the rate for cash advances is much higher than it is for purchases and there is no grace period, you start paying interest right away. Credit card companies also stick it to you when you vacation abroad. Visa and MasterCard both charge a 1 percent currency exchange fee and some major banks charge a 2 percent fee on credit card and debit card purchases made outside the United States.

These companies are also notorious for changing their payment P.O. Box. When you send your payment to the old address it meanders around their headquarters before finally making its way to the payments department who then charges a late fee. Check the mailing address each month, pay early and consider paying online to avoid this situation.

If your payment was late last month, the company may have forgiven the fee but you may see an increased rate on next month's statement because you were late on a payment. Credit card companies frequently check your credit report for late payments on auto loans to justify rate increases. Remember fixed rates really aren't fixed. By law, credit card companies must give you 15 days notice before they raise your rate. They don't need a reason and if you call them and ask them to lower it, they don't have to do it. If your credit card company resorts to these tactics, the best thing you can do is get a new card and cancel the old one.

Avoid buying insurance. If your card is stolen, you are only liable for up to $50, making theft insurance a needless expense. Disability insurance through your credit card company will only make your debt worse, if it ever kicks in.

There's a reason these companies set the minimum payment at 2% of your total debt. At that rate you'll be paying it down the rest of your life. Pay as much as you can with the goal of paying off the entire balance as quickly as possible. Another trick is shrinking the grace period between the statement date and the payment due date so that by the time you get your bill, you're already paying interest on the balance you carry.

Finally, you need patience, persistence and a good sense of humor to deal with customer service agents who will transfer you, put you on hold and even hang up on you until you are blue in the face.

Negotiating with credit card companies is exhausting but can save you money in the long run. This savings will help your pocketbook, help your credit score, and make it easier to get a military loan.

Fix Your Credit Report Yourself!

You may think you know your credit history, but surprises lurk. Before applying for a loan, a line of credit or even for a job, you should take a look at your credit reports to make sure there are no errors.

If you have already been turned down for credit the company would have to let you know in writing which agency had negative information on you. With letter in hand, you could call the agency and ask for a free copy of your credit report.

There are three credit reporting agencies and they store separate scores sometimes with a wide margin between them. Each report could show different errors. Mistakes happen fairly often so check the report carefully starting with your personal information like your name, your date of birth and your Social Security number.

Then you check the information on each account. You may find that a loan you had paid off long ago is still listed and still active. The account may be in the name of a family member or someone with the same name as yours.

Check that there is only one account for each creditor. You will want to check that there is no one else using your credit. If you are a victim of entity theft, the sooner you discover this and start to clear this record, the better off you will be. Identity theft can cost you about 180 hours to deal with the matter and around $1,000 in costs so that alone is a good enough reason to check your credit history on a regular basis.

Checking your own credit report will not have a negative impact on your credit score. To get your free credit report, go to http://www.annualcreditreport.com. Or you can phone toll free 877-322-8228. As the name implies, you are entitled to one free credit report per year.

If you find something, find proof of the error and send it via certified mail to the credit agency that has the error. The address of the bureau is on the credit report.

They have 30 days to ask the company that placed the negative information to submit their rebuttal. If the company doesn't respond within 30 days, the credit bureau has to remove the negative information.

If you find enough of these errors, you will see a good improvement in your credit scores in about 30 days after that. You can decide if you need to work with a credit repair agency to negotiate with your lenders.

You can check out my web site to get the 'civilian's' point of view and research results in navigating the traps of credit repair and the impact of bad credit on your life that you may not have been aware of.
Please go to http://www.fixmycredithistory.com/ to get the latest information.

Aspects to Your Credit Score

Have you got a copy of your credit score yet? Do you know what the 5 components are to your score and how much each one is worth?

As you well know, your score is a 3 digit number that the credit bureaus use to determine your credit worthiness.

It's like a financial report card; the higher the score the better your credit.

The bureaus won't reveal the exact formula used to calculate your credit score, however they have revealed the 5 major components that make up the formula.

Each area is assigned a specific percentage that contributes to your overall score.

Payment history: 35%

Amounts owed: 30%

Length of credit history: 15%

New credit: 10%

Types of credit used: 10%

Now that you know what the 5 components are, let's look at how to improve and increase your score with each one.

Payment History:

This area makes up the largest portion of your score. It makes sense that missed payments will affect this part of your credit score, but did you also know that a late payment has much the same affect?

The credit bureaus view late payments pretty much the same as a missed payment, even if it's just a few days late. So if you think that holding off your payments for just a few days more won't hurt your credit score, it will.

So do you best to make your credit card payments on time, even if its just the minimum required amount.

Amount Owed:

This is basically the amount of money owed vs. the total amount of available credit in all your active accounts. The number that the credit bureaus like to see is somewhere between 30% and 50%.

So if you have $10,000 in total credit but only have $4000 total owing, your debt to credit ratio would be 40%, which puts you in a good spot with the credit bureaus.

The other thing to factor in here is the number of accounts open. You should have about 2-3 accounts to demonstrate that you are a responsible credit card holder; any more that this and it might look like you are over extended, which will hurt your credit score.

So to recap, keep the amount of debt owed vs. your total available credit to under 50% and try and have at least a few active accounts so you can add positive history to your credit file.

Length of Credit:

Does size matter? You bet it does. The third most important factor when it comes to your credit score is made up of 2 parts; the first is the length of time since your first credit account was opened and the second is the average length of time your accounts have been opened.

In both cases you want to have a few well established accounts on record. So if it's been a few years since you've opened an account; great. But try to avoid opening any new accounts unless you really, really have to because this will lower the average overall length of your credit accounts.

New Credit:

As I just said, adding too much new credit to your file actually hurts your score in 2 ways. The first way is that ever time you apply for new credit, a credit inquiry is pulled against your file which damages your account and lowers your score.

The second way that new credit affects your score is that it lowers the overall length of established credit on your file. Each time a new account is open the average length of your established accounts drops because the new account is now taken into consideration.

If you take only one thing away from this section, let it be this. Before you apply for any new credit, try reducing the amount you owe on your open accounts. You'll free up credit and add positive credit history to your file at the same time.

Type of Credit:

The bureaus like to see that you're responsible when using credit and they like to see diverse types of credit on your file.

Having many different types of credit i.e. credit cards, line of credit, installment debt, etc gives your file some teeth. The bureaus want to see that your availing yourself to their services but at the same time not overextending yourself, so try and keep your balances vs. what is available to you at a minimum.

Remember these 5 components of your credit score the next time you go to open a new account or apply for a credit card. Depending on your situation, it might hurt or help your credit report.

Aspects to Your Credit Score

The Ins and Outs of Credit Bureaus

Credit bureaus play an important role in your financial life, acting like a warehouse, collecting information about all your financial activity such as when you take a loan out on a car or apply for a new credit card. Lenders are the suppliers of this information and not only report transactions that are favorable to your credit but ones that may be not as favorable such as late payments of bills and large debt. Public records are another source of information for credit bureaus and they use all this material to create your credit report and scores.

The material that is stored in credit bureaus falls into several categories. There is personal information such as your name, social security number, date of birth, addresses at which you have lived and a history of your employment. If you have had any activity in a court system with regard to financial judgments, such as a bankruptcy, tax lien or foreclosure, then this information is maintained by the credit bureaus. They also keep track of every inquiry someone makes about your credit report and scores but the greatest amount of information that they store is that which about your loans and credit cards. This can include details about the type of loan or credit card, the date the account was opened, the account or loan balance, the status of the account or loan, payment activity, comments and your liability on the account. Negative items which have been closed out are usually not part of your credit report and scores.

The three major credit bureaus are Equifax, TransUnion, and Experian. Any one of these companies can be used by a lender to obtain your credit report and scores. The companies simply provide the information that is contained in your credit report and scores to the lenders who then make the decision about whether or not to provide you with a loan or to let you open a new credit account. Credit bureaus play no role in making these decisions as they only provide the requested financial reports and scores and do not make any judgments about your credit rating. The final decision always remains with the lender.

Credit bureaus tend to have a bad reputation but when they are working properly, they can be very helpful when you have a financial need. The information they hold in their credit report and scores enables you to borrow money from lenders and institutions with which you may not have any history and can also help you to get a better rate on a loan, for example, if this information shows that you have paid your bills on time, borrowed responsibly and maintained a low balance on your credit cards. Credit bureaus can also help you if you find errors on your credit report and scores and are obligated to fix them within a specific period of time.

The time to take back control of your credit reports and scores starts now. You can follow up with this article by visiting http://www.creditreportsandscores.org/ to learn more.

Problems of Pay Day Loans

Everyone at some point in their life has come into some kind of financial problem. One thing that may seem tempting to fix different financial issues is taking out a pay day loan. Even though this may be something that you are considering to help get you out of debt or to pay this month's bills, you may want to take a closer look and see why pay day loans can be a problem.

First off you need to understand what a pay day loan is. A pay day loan may go by many names like a pay day advance, cash advance, or deferred deposit loans, but in the end they are all the same thing. These are short term loans that normally are supposed to be paid off by your next pay check or pay period. Lenders will normally require you to put down some kind of security for the loan like a check or pay check. Since it is a "pay day" loan, you have to give proof of employment to show you do actually have a pay day. There are no limits to what you need the loan for and you don't have to give lenders a reason why you need the loan. There is normally no credit check involved for this type of loan.

One of the main problems of these loans is their interest rate. These interest rates can be extremely high causing you to owe more than what you originally took out. Some lenders also put on extra fees and APR, which then when it comes time to pay back the loan, there is no way for the borrower to pay it back in full. This creates a vicious cycle for people trying to get out of debt. Of course this may not be the case with all lenders, but when it comes to getting quick cash remember, nothing is free.

If you have bad credit and think that taking a pay day loan will boost your score because it is a loan, thing again. When a lender looks at your credit history and sees that you have taken out a cash advance or pay day loan, it won't look good. Having this on your credit history may send a wrong message to lenders by saying you already have trouble paying bills or staying on top of your money. Of course since the reason they look at credit score and history is to assess what kind of risk they may be taking on loaning you the money, you don't want them to think you already have financial troubles. These loans can also take a toll on your score because if you do fall victim to the debt cycle, it will reflect in your credit report.

If those aren't convincing enough, then you can search for more reasons why pay day loans aren't the best option out there. For those of you who are trying to get out of debt, there are so many things you can do instead of getting a pay day loan, like taking out a personal loan, or working with a financial advisor on debt consolidation. If you want to raise your credit score and think a loan is the way to go, then at least go for a regular loan like a home, auto, or personal loan that have normal interest rates so you can build good credit. Everyone has been in a sticky financial situation at one point or another, but there are better ways to fix the problem than taking out a pay day loan.

Personal Loans for Bad Credit Improvement: Two Options

Many people with poor credit scores worry that their ability to improve their financial position is limited. While it is true that those with bad credit have a harder time finding lenders to work with, there are, in fact, still opportunities. You may even qualify for a personal loan which you can use to improve your bad credit through debt consolidation and improved repayment history. These personal loans for bad credit are offered to people like you every day. There are two types of personal loans that you can use for these purposes, which I will outline below.

Type One: Debt Consolidation

For those people with many credit card bills which seem to constantly pile up, condensing their payments into one can provide immense relief. This way, you only have one bill to pay each month and you will not be subject to revolving interest rates.

Consolidation loans for bad credit are generally offered through internet banks and private lenders. Because your credit score is low, finding a lender to work with can be a challenge. However, the degree of your "bad" credit will have a huge impact on this loan. A score of 650 is more likely to receive aid than a score of 520, for example.

Type Two: Payday Loans

The other option available to those with poor credit is low principle personal loans, also called payday loans or cash advance loans. This type of personal loan is generally only given in amounts of $1,000-$1,500 and carries a short term of anywhere from 14-120 days. Payday loans do not require a credit check, but will instead be based upon your current bank account.

Payday loans are given as long as you are over the age of 18 and have a checking or savings account with a balance equal to the amount of the payday loan. You will also need to provide proof of employment that spans at least six months. Since you will not undergo a credit check, poor credit will not affect your ability to get these loans.

While payday loans cannot help relieve your current debt problems, they can help you to improve your credit score over time. This is because taking these loans and responsibly repaying them will improve your repayment history on your credit report. This portion of your financial life has a huge barring on your ultimate credit score.

Finding the Right Lender

Generally, those with bad credit cannot go to the traditional lending houses that those with good credit use. Therefore, community banks and local credit unions are generally not an option. Instead, borrowers with poor credit are best advised to seek the aid of online private lenders. These professionals work with individuals whose credit histories are questionable, just like you. The personal loans for bad credit that they offer are therefore tested and proven successful with borrowers in a similar position.

Personal Loans for Bad Credit Improvement

These two options will allow you the ability to use personal loans to improve your poor credit over time. No matter which method you choose, the process of improving your credit is an important one.

Best Gifts for the Holiday Season

There is no doubt that it has been a rough year for many people. Our economy is still struggling to bounce back from a recession and people are struggling to find jobs and stay in their homes. Luckily, there are still many options available to help you get gifts for everyone on your list. One option to consider is getting a personal loan. With a personal loan you are able to spend the money that you are loaned to buy whatever you need to. Like any other loans there are limits to how much money you will receive. This article will provide you ideas of the types of gifts that you will now be able to get with your personal loan. There are many options out there for gifts, so make sure that you spend your new money wisely.

Are you or one of your loved ones tired of driving around in a car that could die at any moment? Well now is the time to upgrade to a new beauty and give the ultimate gift to someone that you love. Be mindful of the environment at the same time and give someone the new 2012 Chevy Bolt. This car can achieve up to 40 miles with its electric power. Since it operates this way it is perfect for those who don't have a long commute. Who wouldn't love a car that could take them to and from work without ever having to get gas?

For the person on your list that has just about everything, think about upgrading them to a new tablet. There are several new versions depending on what they will be using it for. Two of the most popular would be the iPad 2 or the Kindle Fire. Both of these have the ability to read on the go and serve for unlimited entertainment. If the person is more of a reader you might consider just getting the Nook Color. They will be able to still access the internet, but it will serve more like a portable book that they won't mess up.

For those on your list that are kids at heart you might consider getting them a new gaming system. The new Xbox 360 offers a slimmer console and offers more storage capacity. The PlayStation 3 is another option. This beauty offers WiFi, spacious hardware, and doubles as a blue ray and DVD player. Of course no new gaming console would be complete without some new games to go with it. Depending on their personality you could check out call of duty or even some sports games.

Obviously, these are just a few options. There are many different gift ideas available on the market for you to obtain with your personal loan. Before you get the loan, make sure you understand the fine print so that there is no way that you can get screwed in the long run. Also make sure your personal loan fits your budget. You will unfortunately have to pay the money back, so don't take out a lot of money if you think you will be returning anything anytime soon.

Tips for Personal Loan Borrowers

Are you ready to take out a personal loan? Are you considering a payday loan to get out of a financial jam? If so, you need some fast tips to help you choose the right lender, the right loan amount, and the right plan for repaying the loan.

1. If you do not have a payday loan lender in your local community, you can find lenders online. Just make sure to research the lender thoroughly, so you use someone trustworthy and respectable.

2. What are your reasons for taking out this loan? You should know exactly what you are going to cover with this money, and that expense should be worth the total amount to be repaid (with the interest). If it is not worth paying the interest, then back away from the loan.

3. Resist temptation to take out the maximum amount of money offered through a lender. Many personal loan companies will have a maximum that they can extend in general, or to people with your amount of income. Do not pay attention to these figures. Responsible borrowing requires you to take out enough to cover your justified expense and no more. This will make it much easier to pay the loan back in the future.

4. Read all of the fine print before taking out your personal loan. Even if you are taking your payday loan online, there should be plenty of information on the company and the terms of your agreement to go through. Do not skip this! You may be in a hurry to get the money, but you can rule out the worst lenders by reading the fine print.

5. Since it does take some time to find a really good lender, stick with one when you find them. If you are familiar with how things work with a company, you can get your loans faster. You already know how they work, and they become familiar with you after a few loans are successfully processed.

6. Never take out personal loans based on "maybe" situations. For example, if you might be getting some money in a couple weeks, that does not serve as a solid plan for taking out a payday loan. If you do not have the money coming in for sure, do not trust it.

7. Always have a backup plan for repaying your personal loan. If something were to happen unexpected with your expected plan for repayment, what will you do? Hopefully everything will go as planned, but it never hurts to have an alternate method of repayment.

8. Avoid taking out multiple loans at the same time. This might seem like a good idea if you cannot repay the first loan you take out, but it only leads to trouble in the future.

9. Be very clear on what a payday loan is, and how it is intended to be used. This is not the right type of personal loan for everyone.

10. Do not go into the personal loan process with fear. Know that you have the power to do this responsibly and to benefit in the end.
About this Author

Getting personal loan is so easy & hassle free. Credit Hub Capital is a licensed moneylender for personal loan in Singapore.

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Smart Holiday Spending Tips

Spend, spend, spend - that's what retail and marketers want us to do this holiday. While it's convincing to max out our credit cards and buy holiday gifts for the family, oftentimes we get carried away and break the bank. Major consumer holidays are coming up, and Christmas is probably the biggest one of all. We offer tips below that stress the importance of wise, thrifty, and smart consumer spending to ensure that you maintain great credit and live within your means. We all know getting through the holidays without stress is what everyone needs!

Always keep a watch out on your bank account and credit card statements. It's easy to swipe away your savings, since you are not monitoring your money physically, getting carried away on holiday shopping happens to the best of us. Especially with events like Black Friday and Cyber Mond`y, marketers are finding new ways to encourage us to spend money on deals. Be sure to shop around to make sure you are getting the best deal. With all the fraudulent activities going on, monitoring your bank account will help keep these instances at a minimum.

Strongly consider gift cards as holiday presents, which will not go to waste for the person you're spending on, as gift certificates allow you to put a cap on the amount you spend per person, and help you keep track of your spending without much fluctuation. Also, gift cards make great gifts when you are unsure what to get someone and may be redeemable for up to seven years. In many states, this is required by law, so you investment is protected.

Thrifty shoppers all know that major stores like Wal-Mart, Amazon, and Best Buy will match other stores prices if you show them an advertisement from a competitor's ad when you are shopping, giving you the opportunity to buy a product at the lowest price. Stay educated and updated on all store policies, return policies, and layaway policies.

Restrain from buying on impulse, especially online shopping. Customers will spend more than they planned on impulse buys. If you set a list of items you are looking for, and try to stay on only items on that list, instead of browsing the whole store without a slight idea of a gift, you will end up buying more things you need.

If you are on a tight budget, revamp your gift list and evaluate your giving strategy. For example, if you have many little nieces and nephews, try spending a little bit more on a gift you can give as a group versus individual but less costly gifts. For example, a gaming system for the whole group and a game. Something that they can all enjoy together

Smart holiday shopping helps you keep your personal finances in check and also saves you from bad credit. If you want to avoid getting unnecessary personal loans, set a budget that you will adhere to no matter what. At all costs, don't go beyond your mdans because paying back personal loans will be a hassle and struggle and it's not fun to be in debt during the holidays.

Smart Holiday Spending Tips

Spend, spend, spend - that's what retail and marketers want us to do this holiday. While it's convincing to max out our credit cards and buy holiday gifts for the family, oftentimes we get carried away and break the bank. Major consumer holidays are coming up, and Christmas is probably the biggest one of all. We offer tips below that stress the importance of wise, thrifty, and smart consumer spending to ensure that you maintain great credit and live within your means. We all know getting through the holidays without stress is what everyone needs!

Always keep a watch out on your bank account and credit card statements. It's easy to swipe away your savings, since you are not monitoring your money physically, getting carried away on holiday shopping happens to the best of us. Especially with events like Black Friday and Cyber Monday, marketers are finding new ways to encourage us to spend money on deals. Be sure to shop around to make sure you are getting the best deal. With all the fraudulent activities going on, monitoring your bank account will help keep these instances at a minimum.

Strongly consider gift cards as holiday presents, which will not go to waste for the person you're spending on, as gift certificates allow you to put a cap on the amount you spend per person, and help you keep track of your spending without much fluctuation. Also, gift cards make great gifts when you are unsure what to get someone and may be redeemable for up to seven years. In many states, this is required by law, so you investment is protected.

Thrifty shoppers all know that major stores like Wal-Mart, Amazon, and Best Buy will match other stores prices if you show them an advertisement from a competitor's ad when you are shopping, giving you the opportunity to buy a product at the lowest price. Stay educated and updated on all store policies, return policies, and layaway policies.

Restrain from buying on impulse, especially online shopping. Customers will spend more than they planned on impulse buys. If you set a list of items you are looking for, and try to stay on only items on that list, instead of browsing the whole store without a slight idea of a gift, you will end up buying more things you need.

If you are on a tight budget, revamp your gift list and evaluate your giving strategy. For example, if you have many little nieces and nephews, try spending a little bit more on a gift you can give as a group versus individual but less costly gifts. For example, a gaming system for the whole group and a game. Something that they can all enjoy together

Smart holiday shopping helps you keep your personal finances in check and also saves you from bad credit. If you want to avoid getting unnecessary personal loans, set a budget that you will adhere to no matter what. At all costs, don't go beyond your means because paying back personal loans will be a hassle and struggle and it's not fun to be in debt during the holidays.

Precautions to Take While Applying for a Personal Loan

In today's world, the ability to be financially secure keeps on getting harder and harder, and one cannot make enough money to simply afford all of one's bills. Last year I wanted to go on a vacation with my family, but my budget at the time wouldn't allow it, so I decided to take out a personal loan to go. The same situation goes on with lots of other people, because it is hard to have savings and the salaries that are not enough to fulfill one's extra desires. Personal loans are designed to take care of such financial needs; you can simply get a loan, make your dream come true, and then pay it off in installments.

There are some precautions to take while applying for a personal loan because when it is about money, you have to be careful at all times.

First of all, you can get a good amount of money with a personal loan, but what if you do not need that much? Remember that a loan is a loan, and you will have to pay each and every penny back that you are borrowing along with the interest on top of it. You should always determine how much of a loan amount that you need and only take that much out. Do not be greedy and go for more than you need, otherwise there might be problems in the future.

Also, there are several credit unions and financial institutions that are offering personal loans today. Choose wisely among them after doing significant research. All of them will have different terms, conditions, and interest rates. You should always research all the available options and then make the right choice. Go for a lender offering flexible terms and payback schedule. Do not get attracted by cheap interest rates since there is always a catch. Although it is not necessary that cheap interest personal loan that will always have something hidden, but it is better to be careful than regret it in the near future.

Whenever you are gohng for a loan, know as much as you can about the lender. The internet is the best place for such research, so take some time in finding the best loan provider. Before signing anything, always read careful, do not miss any points of the terms and conditions. This is what will keep you satisfied and away from any unexpected trouble that you did not know of in this day and age.

Little Known Tips When It Comes to Personal Loans

Forewarned is forearmed, or so the saying goes, and when it comes to borrowing money, the more you know the better you will be at taking care of yourself and your family. Here are a few things that you should know but probably don't know about personal loans.

The Zero Interest Loan:

Commercial lenders are in business to make money. There is nothing wrong with that, but if you borrow from a finance company or a bank, they will naturally want you to pay back more than they gave you. In some cases, much more.

Borrowing from a friend or a family member, especially for very short term loans, may allow you to get the money that you need without the interest payments that you don't need. Just make sure that you can pay them back, or you may end up losing a friend.

Know where you stand:

Before a finance company will loan you money, they will most definitely find out all that they can about your financial situation, initially by running a credit check. In order to negotiate on even terms, you need to know what they know, so running a check on yourself before you apply for a loan is just common sense.

Personal credit checks are free. You can get one from each of the three major credit agencies each year.

If possible, run the check several weeks before you will be needing the money. This will give you the opportunity to improve your overall score by correcting errors in the report. The better your score, the better your chances of getting a lower interest rate when you apply.

Know who you are dealing with:

There are good companies, and there are not so good companies when it comes to making personal loans. Before you bind your family's financial future to a loan company, find out how they do business. Check the business watchdog sites for complaints and negative comments. Look for companies which have a track record for dealing fairly with their clients.

It is rare these days for someone to have a solid relationship with one particular bank, but if you do, consider them first.

Beware of online loan sites:

The internet is a great place to find things that you need, want and just can't live without. Loan sites are all over, promising premium interest rates and terrific terms. And some of them really deliver. Running loan services over the web allows a company to cut overhead and pass those savings on to the borrower. But the same rule about checking your vendor applies even more in the case of on line loan sites. Do your homework first.

The Pros and Cons of Payday Loans:

Payday loans are a controversial financial product where you make a very short term loan at a very high interest rate. The advantage to the borrower is very limited credit requirements. As long as you can prove that you have a job, you can most likely borrow anywhere between $100 and $1000 for up to 3 weeks. This can be critical if you need that money now to make a house payment or cover some other important bill.

The downside is that you will be paying a huge interest rate. In addition, it is easy to get into an interest only spiral where you continually pay the finance charge and 're-borrow' the principle. Many customers of this kind of product end up paying back in interest as much as they borrowed in the first place, and more.

Consider this option very carefully. You should only use payday loans for extremely urgent needs, and only if you can pay it back without re-borrowing when the loan comes due.

Understanding Interest Rates On Personal Loans

Taking personal loans is becoming a norm for the middle class Indian today. With expenses sky rocketing and salaries moving at a slower pace, there is little one can do to avoid the debt of personal loans. Be it for the further education of one's child, purchasing domestic appliances, renovating and repairing one's house, meeting the expenses of special occasions and weddings; the need to borrow a considerable sum of money is being felt amongst almost all strata of the society. It is thus important to understand the repayment options and to know how the interest rates on personal loans are calculated.

Personal loans for salaried and self-employed individuals

Individuals who are salaried or self-employed and can show a considerable flow of income, suggesting the high possibility of repayment over time, can apply for a loan. The status of the company where one is working, credit history of the person applying for the loan and his/her relationship with the bank issuing the loan are the few other considerations for getting a loan grant. Based on the status on each of these, the individual can negotiate for lower interest rates and in waiving off processing fee etc. The best part of a loan is that it can be obtained without the need for any kind of security or collateral, and has a simple process of application and documentation.

Loan rates are varied

Personal loan rates vary across different banks. The range of interest rates on loans is between 12% and 15%. There are different methods of calculating interest on loans. Depending on what the bank has put on offer, and what mode of calculation is suitable for the person taking the loan, a method of interest rate calculation is decided upon.

The different ways of calculating interest rates on personal loan are:

Flat rates - Getting a loan on a flat interest rate is paying back much more than one otherwise would. As in a flat rate calculation, the interest is calculated on initial principal amount throughout the tenure of the loan, the outstanding loan amount is never reduced. Thus, one ends up repaying much more than one would through different kinds of interest rates used for calculation

Reducing balance interest - Reducing balance interest is advisable to go for, as it works out cheaper than the flat rates. In this method, the interest on the loan amount keeps on reducing as it gets calculated on the regularly reduced principal amount.

Floating rate - The floating rate of interest changes as per the market dynamics. It is a high risk repayment method - one can end up paying much more or much less than the amount budgeted for. However, floating rates are offered at lower rates than fixed rates. Thus, a borrower of loan at a floating interest would highly benefit if the market dynamics make the interest rates go lower.

There are other charges on the loans as well. Processing fees and prepayment charges are a part of every loan.

Depending on the bank one deals with, one's requirement and the relationship one shares with the bank, the best personal loan interest rates can be established.

The Beauty of Small Personal Loans

In an ever shrinking world economy the expenses are piling up and yet the money to take care of your day to day needs is diminishing as each new day dawns. It then becomes necessary to consider getting some little loans here and there to make ends meet. The issue of small personal loans has become ever more attractive for most people because through it you can get quick money to spend on pressing issues instantly and pay back the money at an affordable interest rate. The little loans often range from 50 Sterling Pounds up to 300,000 Sterling Pounds depending on the fiscal institutions offering them.

The small loans facilities especially those offering personal loans under £1000 are some of the most popular little loans providers that clients prefer. They have a very high uptake rate due to the fact that most personal expenses can be adequately catered for by amounts of money ranging in the region of £1000. Having understood what small personal loans are, it is therefore important to understand how you can get such a facility so as to expeditiously deal with your day to day expenses. As such there are currently a very large and diverse number of loan comparison websites offering personal loans under £1000 all the way over and above £300,000 and you require some essential knowledge before choosing one that suits your particular needs.

When applying for small personal loans there are two primary considerations to keep in mind. These are the interest rate at which you will pay back the little loans and the speed with which the small loans will be made available to you. As such make a list clearly delineating what you intend to achieve after you receive the small loan. Write out what you want to use the money for so that you do not end up taking more money or less money in relation to your needs. This way all the needs for which you took the loan will catered to. Having done that then you need to make accurate comparisons of the terms governing the small personal loans on offer in the market. A point worth noting is that you need to take good care when reading the fine legal print so that you fully understand your legal obligations with regards to little loans.

The next process after having full understanding of the terms and conditions governing the small personal loans quite naturally is to apply for one. For most of these of websites the process involved is fairly simple; you sign up on the small personal loans website with your normal identification credentials, next you opt for the particular loan package that you are interested in from within your profile on the website, you are then shown exactly how much you will pay back and the time limit allocated for the duration of the contract. Finally you have the sum of money for the small personal loans wired to you all ready for you to spend to your heart's content.

Payday Comes Early With Payday Loans

Payday loans are fast loans that are given to salaried people on short term basis with an intention of them getting the money to use in emergency cases. The loan is to paid back at the end of 30 days which is during their pay check. These quick cash loans act like advance payments and are ideal because one does not have to wait until the end of the month to get their financial issues sorted out. They come in handy especially in an instance where one needs to pay up utilities that are due, get fuel for their vehicles and other important bills that need to be settled. The money borrowed is given by a funding firm and it is to be paid back with interest.

The loan can only be given out to persons who are qualified. This is because not everyone is eligible for quick loans. Some of the requirements that would qualify one for quick cash loans include

• One should have attained the age of 18 years and above to be legible for fast loans. At this age a loan firm is sure that they are able to get an income.

• One should have a job that offers them a salary at the end of the month. This is because through the salary earned the lender is assured of getting their loan paid. The salary should have a given tax rate.

• It is required that one has an active bank account where their salary is processed.

Quick loans can be obtained by anyone with the above qualifications from anywhere. One should take precaution not to take loans with an intent ion of having fun. This is because they have a very high annual interest rate of up to 2150 percent and this may render a person bankrupt. The advantage of these quick cash loans is that one does not need to have a good credit score or report to acquire the loan. The lenders will never ask their clients to provide collateral in order for them to qualify for the loan.

The processing of these loans takes a very short time to get to the bank account. It can only take a period of about an hour to get into one's account. The fact that one is given a short repayment period, it is a contribution to the high rates of interest that they are to be paid. They are ideal for sorting one's financial shortfalls, ensuring that one is stable and aid in solving pressing issues that require small amounts of cash. The amount of money released into one's account will be determined by how much one earns. It also wise to take up a loan amount that one is sure that it will not affect their financial status even as they pay it back.

Personal Loans for Those With Bad Credit

It has happened to all of us, both good and bad credit holders. We have an unexpected expense. The car throws a rod, the refrigerator is turning into a mold factory, an expensive new prescription is needed to treat an unforeseen medical problem. Maybe a bill you have set aside has suddenly come due - in full! These unfortunate demands and other situations rise up in lives daily and sometimes the only way to get rid of them is to throw money at them. You could find that cash by drawing a personal loan for those with bad credit.

Credit Histories and Income Are Scrutinized

You need to pull your credit reports. You need to examine each thoroughly. Typically there are errors. You should get those taken off your reports, but remember this can take 1-3 months. So prepare before you go shopping for your personal loan for those with bad credit. However, understand that your scores will not be the deciding factor all the time. More important to these lenders is your debt to income ratio. Lenders will want to know about your current obligations and your income. They want to be sure that you have enough money left over to meet another debt.

Two Types of Personal Loans for Those With Bad Credit

When you apply for your personal loan for those with bad credit, you will see that most lenders offer two options - secured and unsecured. Secured loans are those wherein the borrower offers collateral, or valuable property, to secure the loan. If you default on the loan, the lender can seize the property and use the proceeds to cover the cost of the loan. Because of this security, interest rates are often much lower.

For secured personal loans, the collateral can be a house or other real estate, stocks and bonds, or even a late model car. Ask the prospective lenders which type of property they will accept. Unsecured loans have nothing to back them except your spoken promise and your signature on the dotted line. To compensate for the increased risk, the lender is obliged to ask for higher interest rates for your personal loan for those with bad credit.

Predatory Lenders

Never take the first offer. One good offer means there are probably two more out there even better. Personal loans from traditional lenders (for those who can get them there) as well as from private lenders carry the legally highest interest rates than for any other type of loan, whether the borrower has good or bad credit. Of course, the better your credit scores, the lower your interest rates. Do not fall victim to predatory lenders.

If someone says they are doing you favor because of your credit scores, walk away immediately, they are out to get you with high interest rates and exorbitant fees. Once you have selected four or five lenders whose terms and conditions you like, research each company thoroughly. Try the Better Business Bureau online listings. Always read all the fine print. No question is a silly question. Understand the terms and conditions of your personal loan for those with bad credit thoroughly.

Credit Repair Possibilities

Another good thing about personal loans for those with bad credit is that they offer an opportunity to put some shine on your credit history. You should make sure you make every payment on time and in the amount prescribed in your contract. If you keep doing this, even with small loans, your credit ratings will increase immediately and even dramatically.

Personal Loans for Bad Credit Improvement: Two Options

Tips on How to Save On Secured Loans

When a person gets his loan approved he has to pay a fixed interest rate on that loan. It is the most important factor to be seen while signing a loan. The lower the interest rate, the lower the amount of money you have to pay every month. Although the interest rates counts a lot but some loan companies still make a fool out of you by adding extra charges and fees other than the interest rates.

Keeping in mind the cancellation fee; one can always refinance his loan to get better and lower interest rates. One can go for variable interest range, which changes with the conditions prevailing. Fixed rates are generally higher as compared to the variable interest rates. But if the conditions are not favorable, variable interest rates can end up being higher than the fixed ones. If the cancellation of loan fee is equal to the amount you will save by doing it, there is no point in doing it.

What Are Extra Costs And Fees On Secured Loans?

There are many cases seen where the lender adds many types of extra costs other than the interest rates such as insurance of life, fire and civil responsibilities. Some loan companies also have the policy of charging administration fees and the closing costs. While making a deal with a lender the borrower should always study the full contract to judge what he will be paying in total with this extra amount of costs and fees charged. The lenders often do not clarify in advertisement about these hidden costs that the borrower will have to pay.

Cost of Cancellation

There is a cancellation fee charged on the pre-payments of loan and the other type is which is taken from the borrower when he is unable to pay in the given time. The lender lends out a loan with an aim to get maximum profit on the money he has given to the borrower. In order to achieve this goal he puts on these charges so that you are bound to pay back in time. These charges are always a part of the agreement in all types of loans.

If the borrower has these charges in mind he will not opt to do any changes during the contract period. The lender is at a loss if the borrower makes any change or is unable to pay the installment on time. Therefore the borrower will have to pay an extra amount with the next installment due. The lender can take legal action against you if you fail to pay the amount in more than one installment. Sometimes lenders take this fee before hand in order to be safe from any frauds. It is known as pre-cancellation fee.

Length and Amount of a Loan

One should always try to take a loan for a shorter period of time in order to save up on a secured loan and pay it as early as possible. The longer the period of loan the higher will be the costs and the interest rates and the full amount you will be paying. This is why paying of a loan over a shorter period of time is always better if you can afford to do it.
About this Author

Sarah Dinkins is a financial advisor who has been associated with Unsecured Personal Loans since long ago. She also holds a master degree in economics from Harvard University. To find home loans with bad credit and other financial products visit BadCreditFinancialExperts.com

Personal Loan Shams

Everyone has been in that situation where they need some extra funds in order to do repairs or renovations, pay for a wedding, pay for extra car expenses, or for anything else that doesn't turn out to be pocket cash. There are plenty of companies that are there to help by offering a you a personal loan; some will even work with you if you have bad credit. However, there are many so called companies that are only out there to scam you. Many people find that they can take advantage of people who are in need and are vulnerable. Don't become a victim of a personal loan scam; learn the signs of a scam and how to avoid them.

You should be wary of any unsolicited letters or emails. Some scammers may send out messages saying that you have been pre-approved for a loan and you need to send them your information to get your loan. These people have probably gotten your contact info somewhere along the line when you have applied for a credit card or a different kind of loan. If you get an email that says you are pre-approved or are guaranteed a loan, it is probably a scam. For emails that you aren't sure about, you can check with the Better Business Bureau (BBB) to find out if they are a legitimate company.

You know you are being scammed if they ask for money upfront or as a down payment to hold you loan. Same goes for if they ask for collateral, it's bound to be a scam. When you apply for an unsecured personal loan, the amount you get is based on your risk. If it seems like you will be more of a risk as far as paying them back, they will offer less money, or give you a higher interest rate. Majority of lenders do not require an upfront payment or collateral in order for you to get the loan that you want. Also, any lenders that approve you over the phone are probably scamming you, it is illegal in the United states for companies to approve loans over the phone. If a lender who you believe is trustworthy asks for a deposit or something, be sure to ask why. Also, ask a lawyer who you trust to take a look at any contracts or requests, especially any which seems fishy.

Check to make sure any links, including those in emails, or websites have been approved by Norton, the BBB, or Truste. If you happen to get an email saying you have been approved and to follow the link below, don't click on that link. Most of the time, that link will lead to a fake page where it will require you to input your personal information. Do not fill out these forms; do not click on these links. Some of these links aren't just a personal loan scam, but could contain a virus that will retrieve any personal information and passwords. Perhaps you get an email from your current lender saying there is a problem with your account or that you haven't paid. Lenders will not send you an email about this type of information; they will try to contact you over the phone or through the mail. If you are not sure, and the email seems legitimate, call the business or company that "sent" the email to double check.

When applying for a personal loan, be aware of these tactics that scammers use to get your personal information. Be wary of email solicitations, lenders who say you are guaranteed a loan, lenders who require pre-payment or a deposit, and any lenders who say they can approve you over the phone. There are many legitimate companies out there that do offer personal loans even to people with bad credit. Do your research to see what other people are saying about a particular company and see if they have been approved by the BBB. Before signing any contracts, talk to a trusted advisor or lawyer to be sure everything looks as it should.