Dealing with mortgage companies online can enable you to get a
home loan even with bad credit. Bank associates' skepticism and
talk around are avoided when you apply online with a mortgage
broker. You also can compare multiple financing offers to
ensure you are not getting scammed just because you have poor
credit.
To get the most out of your online mortgage company, follow
these tips:
1. Learn About The Loan Process
Don't be a victim to predatory lenders. Educate yourself about
the loan process by reading articles on mortgage brokers'
websites. You will quickly find out what fees and interest
rates you can expect to pay for a sub prime loan, as well as
the type of financing that will best meet your needs.
2. Apply For Quotes
There are two types of mortgage quotes that you can find
online. One is a generic estimate based on limited information
such as your estimated income and monthly bills. This is
similar to the quotes posted at the front of a bank. They are a
fast way to compare mortgage lenders, but not a quote you can
rely on.
To get a real quote, you will need to fill out detailed
information since there are so many factors besides income that
determines your mortgage rate. If you have a FICO score of less
than 600, you will be required to put down at least 5%. Here's
a hint - to qualify for a lower rate, increase your down
payment amount.
3. Compare The True Loan Cost
Looking at interest rates shouldn't be the only way you compare
costs. Closing fees, loan application fees, or fees by any other
name can add thousands to your loan. To determine the cost of
your loan add the amortization and loan fees. Many mortgage
lending websites offer an amortization calculator to make this
easy.
4. Follow Up On Your Loan Application
Once you have picked a lender, you can finish the mortgage
process by applying online. Don't forget about the application
though, keep all records from the mortgage lender and make
weekly phone calls to ensure the money is processed on time.
5. Plan To Refinance
After you have completed your mortgage loan, plan to refinance
after three years when you have established good credit. Make
it a habit to make regular payments and reduce your short-term
debt to maximize your credit rating for lower interest rates in
the future.
About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of our most
recommended bad credit mortgage lenders online, visit this
page: http://www.abcloanguide.com/lessthanperfectcredit.shtml
Saturday, September 03, 2005
Tuesday, August 30, 2005
Understanding Secured Loans
A secured loan is any loan that is secured on your home or
property. Secured loans are more easily accessible to those with a
poor credit record. This means that persons who are self-employed,
or who have recently changed jobs, or who have adverse credit (ccjs,
arrears, defaults, etc.) can take out a secured loan.
If you're a homeowner, you may get a lower rate through a secured
loan using your property as security. If you borrow money using a
mortgage as security you are agreeing that the lender can claim the
mortgaged property if you fail to keep to the agreement. The risk to
the lender is reduced so the interest rate offered is lower. This is
why secured loans tend to be cheaper than unsecured loans and other
forms of borrowing. The lender has the added benefit of security,
which provides protection in the event of your inability to repay.
You can borrow larger amounts and repay over a longer period. The
amount available usually ranges from £3,000 to £50,000,
although
some lenders will consider lending more. If you wish to borrow a
larger amount or if you require a longer period in which to repay
the loan, secured loans may be the most suitable for you.
You can consolidate more expensive borrowings into a single much
cheaper monthly payment. You may choose to take out a secured loan
in order to consolidate debts and replace high-interest loans with a
low-rate loan. The loans being consolidated may include higher
purchase loans, unsecured loans and credit cards.
Before you take out a secured loan, make sure that you can afford
the monthly repayments. Also, read the loan agreement carefully and
pay particular attention to the rate of interest required, the term
of the loan, the repayments required and the total amount payable.
If you fail to repay the loan, the lender may repossess your
property or home and sell it to repay the loan. Your home is at risk
if you do not keep up repayments on a mortgage or other loan secured
on it.
© Copyright 2005, Bwalya Mwaba writes for the Secured Personal
Loans website. To apply for a secured personal loan online, just
fill out a simple form at: http://www.secured-personal-loan.org.uk/
property. Secured loans are more easily accessible to those with a
poor credit record. This means that persons who are self-employed,
or who have recently changed jobs, or who have adverse credit (ccjs,
arrears, defaults, etc.) can take out a secured loan.
If you're a homeowner, you may get a lower rate through a secured
loan using your property as security. If you borrow money using a
mortgage as security you are agreeing that the lender can claim the
mortgaged property if you fail to keep to the agreement. The risk to
the lender is reduced so the interest rate offered is lower. This is
why secured loans tend to be cheaper than unsecured loans and other
forms of borrowing. The lender has the added benefit of security,
which provides protection in the event of your inability to repay.
You can borrow larger amounts and repay over a longer period. The
amount available usually ranges from £3,000 to £50,000,
although
some lenders will consider lending more. If you wish to borrow a
larger amount or if you require a longer period in which to repay
the loan, secured loans may be the most suitable for you.
You can consolidate more expensive borrowings into a single much
cheaper monthly payment. You may choose to take out a secured loan
in order to consolidate debts and replace high-interest loans with a
low-rate loan. The loans being consolidated may include higher
purchase loans, unsecured loans and credit cards.
Before you take out a secured loan, make sure that you can afford
the monthly repayments. Also, read the loan agreement carefully and
pay particular attention to the rate of interest required, the term
of the loan, the repayments required and the total amount payable.
If you fail to repay the loan, the lender may repossess your
property or home and sell it to repay the loan. Your home is at risk
if you do not keep up repayments on a mortgage or other loan secured
on it.
© Copyright 2005, Bwalya Mwaba writes for the Secured Personal
Loans website. To apply for a secured personal loan online, just
fill out a simple form at: http://www.secured-personal-loan.org.uk/
Monday, August 29, 2005
Bad Credit Doesn't Rule Out Unsecured Credit!
Many people believe that because of their bad credit, unsecured
credit cards are not available to them. While it may be more
difficult, there are options for people with bad credit who
want an unsecured credit card to build their credit or have
available for use in an emergency. While a secured credit card
is the most commonly recommended option for people with bad
credit, unsecured credit cards ARE available - even for those
with the worst credit.
Bad Credit: Unsecured Credit Cards vs. Secured Credit Cards
One of the easiest ways to get a credit card when you have bad
credit is to opt for a secured credit card. With a secured
credit card, you deposit money in a bank designated by the
credit card company to serve as a 'security deposit' - an
assurance that they'll get their money if you default on
payments. Depending on the lender, that deposit might be equal
to your desired credit limit, or slightly higher or lower. A
security deposit of $300, for instance, might get you a $150
line of credit with one company, a $300 line of credit with
another, and a $400 one with yet a third. The interest rate is
generally competitive, since the company has a guarantee of
getting its money if you don't make payments.
An unsecured credit card requires no security deposit. A bad
credit unsecured credit card will often have either a high APR
(annual percentage rate), high fees, or both. How do the two
stack up against each other? Here's a comparison from two
actual credit card offers that are sitting on my desk as I
write:
Secured Credit Card
Security Deposit: $250
Annual Fee: $35
Setup Fee: $35
APR: 15.40%
Credit Limit Increases: $100 increments, each require $100
deposit
Bottom Line: It will cost you $370 to maintain a $250 credit
limit for the first year, with at least $250 up front, at an
APR of 15.40%. You'll have $170 available credit upon receipt
of your card. You'll have to put up an additional $100 every
time you want to increase your credit limit.
Bad Credit Unsecured Credit Card
Annual Fee: $48
Setup Fee: $29
Participation Fee: $72 (annual, billed at $6 monthly)
Program Fee: $95 (one time fee)
APR: 9.9%
Credit Limit Increases: $25 (per increase of $100, at their
discretion)
Bottom line: It will cost you $244 for the first year, all of
it billed to your credit card on your first statement, to
maintain a $250 credit limit with an APR of 9.9%. You'll have
$72 credit available upon receipt of your card.
In the long run, while a bad credit unsecured credit card may
cost you more, you won't be tying up your money up front.
Either card will help repair your credit as you make payments
on time and regularly, but the unsecured card has an APR that's
almost 5% lower. You're the only one who can decide which is the
better option for you - but it makes sense to weigh all your
options before you decide that your only way to have a credit
card is with a security deposit.
@ Copyright 2005 - Bill A Smith
About The Author: Bill A Smith is a credit counselor for
http://www.americreditservices.com/ Feel free to visit our bad
credit help center at
http://www.americreditservices.com/bad-credit/
===================================================================
Debt Elimination Tips, Learn how to put all the money you're wasting
each and every month (Paying Interest) To Work for You, Subscribe to the Debt Elimination Tips Newsletter.
credit cards are not available to them. While it may be more
difficult, there are options for people with bad credit who
want an unsecured credit card to build their credit or have
available for use in an emergency. While a secured credit card
is the most commonly recommended option for people with bad
credit, unsecured credit cards ARE available - even for those
with the worst credit.
Bad Credit: Unsecured Credit Cards vs. Secured Credit Cards
One of the easiest ways to get a credit card when you have bad
credit is to opt for a secured credit card. With a secured
credit card, you deposit money in a bank designated by the
credit card company to serve as a 'security deposit' - an
assurance that they'll get their money if you default on
payments. Depending on the lender, that deposit might be equal
to your desired credit limit, or slightly higher or lower. A
security deposit of $300, for instance, might get you a $150
line of credit with one company, a $300 line of credit with
another, and a $400 one with yet a third. The interest rate is
generally competitive, since the company has a guarantee of
getting its money if you don't make payments.
An unsecured credit card requires no security deposit. A bad
credit unsecured credit card will often have either a high APR
(annual percentage rate), high fees, or both. How do the two
stack up against each other? Here's a comparison from two
actual credit card offers that are sitting on my desk as I
write:
Secured Credit Card
Security Deposit: $250
Annual Fee: $35
Setup Fee: $35
APR: 15.40%
Credit Limit Increases: $100 increments, each require $100
deposit
Bottom Line: It will cost you $370 to maintain a $250 credit
limit for the first year, with at least $250 up front, at an
APR of 15.40%. You'll have $170 available credit upon receipt
of your card. You'll have to put up an additional $100 every
time you want to increase your credit limit.
Bad Credit Unsecured Credit Card
Annual Fee: $48
Setup Fee: $29
Participation Fee: $72 (annual, billed at $6 monthly)
Program Fee: $95 (one time fee)
APR: 9.9%
Credit Limit Increases: $25 (per increase of $100, at their
discretion)
Bottom line: It will cost you $244 for the first year, all of
it billed to your credit card on your first statement, to
maintain a $250 credit limit with an APR of 9.9%. You'll have
$72 credit available upon receipt of your card.
In the long run, while a bad credit unsecured credit card may
cost you more, you won't be tying up your money up front.
Either card will help repair your credit as you make payments
on time and regularly, but the unsecured card has an APR that's
almost 5% lower. You're the only one who can decide which is the
better option for you - but it makes sense to weigh all your
options before you decide that your only way to have a credit
card is with a security deposit.
@ Copyright 2005 - Bill A Smith
About The Author: Bill A Smith is a credit counselor for
http://www.americreditservices.com/ Feel free to visit our bad
credit help center at
http://www.americreditservices.com/bad-credit/
===================================================================
Debt Elimination Tips, Learn how to put all the money you're wasting
each and every month (Paying Interest) To Work for You, Subscribe to the Debt Elimination Tips Newsletter.
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