Sub prime lenders come in two groups: reasonable and
unreasonable. Reasonable sub prime lenders offer mortgage
financing to high risk borrowers with slightly increased rates
and fees. Unreasonable sub prime lenders charge several extra
points and excessively high fees. Only through comparative
shopping can you know if a particular lender is offering
reasonable or unreasonable rates.
Compare Rates
Comparing rates is easy through online lender websites. By
entering basic information, you can quickly receive quotes from
several mortgage lenders. These quotes will give you a rough
idea of who offers the most competitive packages. Be sure to
add in fees and extra points when you are considering the cost
of the loan.
Real Quotes
Real mortgage quotes require more information than just the
loan amount and your income level. You will also need to
provide information about your home's location, your down
payment, and other personal information.
After you have compared general quotes, you can request
specific quotes from a handful of mortgage lenders. Online
mortgage applications allow you to do this from the convenience
of your home where you can easily find your financial and
personal records.
Applying Online
Once you have received a quote from a mortgage lender, you can
quickly finish the application process. Some lenders will
require additional information online, but most lenders will
simply mail out the final paperwork for your approval. After
the forms are signed and notarized, you send it back to the
lender for final processing.
Refinance Later
A subprime loan does not have to be permanent. Mortgage lenders
look at the last three years of your credit history when
considering your application. So after making regular payments
on your mortgage and all your other bills, you can consider
refinancing for a lower interest rate. Other ways to improve
your credit rating include paying off credit cards and
increasing your cash reserves.
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 recommended sub
prime mortgage lenders online, visit this page:
http://www.abcloanguide.com/lessthanperfectcredit.shtml
Monday, April 10, 2006
Tuesday, March 28, 2006
Credit Bureasus Release New Credit Scoring System
What's this new VantageScore credit score!
The three major credit bureaus Experian, Equifax and
TransUnion introduced the VantageScore in March 2006
to compete and replace the current FICO score system.
VantageScore has one big thing going for it: It's easy for
consumers to understand. VantageScore scores are on a
scale of 501 to 990. If your score is in the 900s, you have
the credit equivalent of an A and you'll get favorable
interest rates. If your score is in the 800s, that's the
credit equivalent of a B, with slightly less-favorable rates.
The credit bureaus say they've introduced this new
system so that the scores being reported to credit
grantors are consistent and easier to interpret.
But some observers say that the new scoring model
won't change the biggest problem consumers face when
it comes to credit scoring -- inaccurate or incomplete data
in their individual reports
To understand what that means, you need to know that
while we all get a score generated from each bureau,
how those scores are determined can vary greatly. That's
because each bureau uses a different formula to
generate the score it sells to lenders.
The scores under the new system could still cause a huge
spread in scores. Credit scores are generated using
information in your credit files. Each file can have all the
same information or vastly different data.
One creditor may or may not report all your information to
all three bureaus. Or one of your files might be missing
the maximum limit on your credit card, making it appear
as if you are overextended.
The new score was just introduced last week, and
adoption is gradually moving along. The credit bureaus
plan to replace the proprietary scores at their Web sites
with the VantageScore over the next few months, but
right now they're focusing on marketing the score to
lenders.
----------------------------------
For more details and a complete explanation of how the
score works and what to do to improve yours visit:
http://www.credit-repair-specialist.com and
http://www.debt-elimination-program-reviews.com for
the latest updates.
The three major credit bureaus Experian, Equifax and
TransUnion introduced the VantageScore in March 2006
to compete and replace the current FICO score system.
VantageScore has one big thing going for it: It's easy for
consumers to understand. VantageScore scores are on a
scale of 501 to 990. If your score is in the 900s, you have
the credit equivalent of an A and you'll get favorable
interest rates. If your score is in the 800s, that's the
credit equivalent of a B, with slightly less-favorable rates.
The credit bureaus say they've introduced this new
system so that the scores being reported to credit
grantors are consistent and easier to interpret.
But some observers say that the new scoring model
won't change the biggest problem consumers face when
it comes to credit scoring -- inaccurate or incomplete data
in their individual reports
To understand what that means, you need to know that
while we all get a score generated from each bureau,
how those scores are determined can vary greatly. That's
because each bureau uses a different formula to
generate the score it sells to lenders.
The scores under the new system could still cause a huge
spread in scores. Credit scores are generated using
information in your credit files. Each file can have all the
same information or vastly different data.
One creditor may or may not report all your information to
all three bureaus. Or one of your files might be missing
the maximum limit on your credit card, making it appear
as if you are overextended.
The new score was just introduced last week, and
adoption is gradually moving along. The credit bureaus
plan to replace the proprietary scores at their Web sites
with the VantageScore over the next few months, but
right now they're focusing on marketing the score to
lenders.
----------------------------------
For more details and a complete explanation of how the
score works and what to do to improve yours visit:
http://www.credit-repair-specialist.com and
http://www.debt-elimination-program-reviews.com for
the latest updates.
Tuesday, March 21, 2006
The First Step To Getting Out Of Debt: Make The Commitment!
These days, getting into debt is easy.
Unfortunately, getting out of debt is not so simple for most
people. But you can do, if you go about it the right way.
The first - and by far the most important step - to getting out
of debt is to MAKE A COMMITMENT!
Personally, I spent years telling myself how much I wanted to
get out of debt. But then something would always happen - a big
expense, a change of jobs, you name it.
And even though I really wanted to get out of debt, I never
made any real progress. Then one day I finally got so
frustrated I said to myself:
"It's now time to do WHATEVER IT TAKES to get myself completely
out of debt!"
And for the first time since I got myself into debt (by maxing
out all of my credit cards trying to start a business) I
finally figured out the true "secret" to getting out of debt:
making the commitment!
So, if you haven't already made a commitment of your own, do it
right now. Decide you're going to do WHATEVER IT TAKES to get
yourself out of debt...and start doing it!
How long will it take you to get out of debt? If you're like
most people (including myself not long ago), too long!
How To Take Action
Once you make this commitment, it's time to take action.
Write down exactly how you plan on getting out of debt. Here
are some questions to ask yourself while developing your plan:
- How can you save money each month?
- What expenses can you eliminate?
- How much more money can you use to pay off your credit card
bills faster?
- How can you make some extra money?
- Have you contacted your creditors to request a lower interest
rate?
- How can you change your spending habits?
- Have you considered professional help - credit counseling,
debt negotiation, bankruptcy - to find out all of your options?
- Are you really committed to getting out of debt?
- When do you want to be completely debt free?
It's a great feeling being completely free of credit card debt.
But it won't start happening until YOU decide to make it happen!
© 2005 Debt-Tips.com
About The Author: Kris Bickell is the owner of Debt-Tips.com, a
helpful site for consumers struggling with credit card debt. For
tips on getting out of debt, repairing your credit, saving
money, and making extra money online, sign up for the free "Get
Out Of Debt Faster" email course at:
http://www.Debt-Tips.com/course.html.
Unfortunately, getting out of debt is not so simple for most
people. But you can do, if you go about it the right way.
The first - and by far the most important step - to getting out
of debt is to MAKE A COMMITMENT!
Personally, I spent years telling myself how much I wanted to
get out of debt. But then something would always happen - a big
expense, a change of jobs, you name it.
And even though I really wanted to get out of debt, I never
made any real progress. Then one day I finally got so
frustrated I said to myself:
"It's now time to do WHATEVER IT TAKES to get myself completely
out of debt!"
And for the first time since I got myself into debt (by maxing
out all of my credit cards trying to start a business) I
finally figured out the true "secret" to getting out of debt:
making the commitment!
So, if you haven't already made a commitment of your own, do it
right now. Decide you're going to do WHATEVER IT TAKES to get
yourself out of debt...and start doing it!
How long will it take you to get out of debt? If you're like
most people (including myself not long ago), too long!
How To Take Action
Once you make this commitment, it's time to take action.
Write down exactly how you plan on getting out of debt. Here
are some questions to ask yourself while developing your plan:
- How can you save money each month?
- What expenses can you eliminate?
- How much more money can you use to pay off your credit card
bills faster?
- How can you make some extra money?
- Have you contacted your creditors to request a lower interest
rate?
- How can you change your spending habits?
- Have you considered professional help - credit counseling,
debt negotiation, bankruptcy - to find out all of your options?
- Are you really committed to getting out of debt?
- When do you want to be completely debt free?
It's a great feeling being completely free of credit card debt.
But it won't start happening until YOU decide to make it happen!
© 2005 Debt-Tips.com
About The Author: Kris Bickell is the owner of Debt-Tips.com, a
helpful site for consumers struggling with credit card debt. For
tips on getting out of debt, repairing your credit, saving
money, and making extra money online, sign up for the free "Get
Out Of Debt Faster" email course at:
http://www.Debt-Tips.com/course.html.
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