When applying for a mortgage loan when you have a bad credit
history. There are a few things you should know about your FICO
score that will help you know what to expect from mortgage
lenders.
With a credit score below 585, you will need to put at least
10-20% as a down payment on the property. You will not likely
be approved for 100% financing at this point.
If you have a credit score of between 585-599, you will
probably need around a 5% down payment in order to get an
approval for a home mortgage loan. You will still need to get
your approval from a subprime mortgage lender. You will need to
use a lender who specializes in loans for people with "less than
perfect credit" or situations that make it difficult for a
person to get financing for their home.
If you have a credit score of 600 - 620, you will probably be
able to get an approval for 100% financing. You will also, in
this situation, still need to use a subprime lender.
With a credit score of 620 or higher, you may be able to not
only qualify for 100% financing, but be able to get a lower
rate of only 1 - 2 percentage points above the prime rate.
If you have a recent bankruptcy or foreclosure, these estimates
should still be accurate within 2 years after bankruptcy,
repossession or foreclosure. After 2 years, it becomes easier
to get approved for a mortgage loan, because more lenders will
look at financing you after 2 years, whereas many lenders will
not even consider your application until 2 years from the time
of bankruptcy discharge or a foreclosure. After a 3 year mark
from the time of bankruptcy or foreclosure, it becomes even
easier to get an approval, in that many more lenders will
consider your application after 3 years.
For more free-reprint articles by Carrie Reeder please visit:
http://www.isnare.com/?s=author&a=Carrie+Reeder
Sunday, October 02, 2005
Friday, September 30, 2005
Steps For Finding A Thin Or No Credit Motorcycle Loan
It is no secret that thin or no credit can hurt just like bad
credit when shopping for motorcycle loans. The main reason for
this is that lenders all have a variety of strategies on how to
approach motorcycle loans in their loan portfolios. Some lenders
see motorcycles loans as a risky but feasible business
investment, while other lenders label motorcycles loans as a
high risk money losing investment. Overall, the general
perception of most lenders is that a motorcycle is a "toy" and
therefore motorcycle loans are much more risky than other types
of loans. This "toy" labeled perception from lenders is a
critical component which makes shopping for a motorcycle loan
much more difficult for motorcycle buyers with thin or no
credit.
The first step to get approved for limited or no credit
motorcycle loans, is to look online. The reason for this is
that many online lenders are very competitive with offering
motorcycle loans and some of them specialize in limited or no
credit motorcycle loans.
If you have searched online and are still having trouble
getting approved due to limited or no credit, it is critical
that you begin to understand the impact of your FICO credit
score. Essentially, a FICO credit score is the number one
variable most lenders use in approving you for a motorcycle
loan. The FICO credit score is a computer generated score which
is comprised of your credit payment history, amount owed, length
of credit, amount of new credit and types of credit.
Since many people with limited or no credit do not even have a
FICO credit score associated with their credit file their
motorcycle loan applications are sometimes automatically
declined by lenders. Therefore, the first step to getting
approved for a limited or no credit motorcycle loan is to start
building credit history. In order to get a computer generated
FICO credit score with your credit file you must have at least
one credit account that has been open for at least 6 months and
has been updated at least once in the previous 6 months.
This requirement can make it tough for young motorcycle buyers
or immigrants who wish to establish a credit score since some
lenders will not extend credit to people with a thin file.
However in today's age, there are credit card companies willing
to give newcomers a credit card with a small $500 limit to get
started.
As a result, if all else has failed and you have limited or no
credit a great way for you to begin building your FICO credit
score is to get a low credit limit credit card and begin using
it regularly for small everyday purchases. The key to this
strategy is keeping your purchases small and frequent and
paying off the balance every month on time. Always try to avoid
maxing out the credit cards or even using more than 30% of the
available credit limit. To make this easy some small purchases
can even become automatic by putting things like monthly cable
or telephone bills on automatic credit card payment.
The bottom-line is that finding a limited or no credit
motorcycle loan can be challenging, but working smarter by
shopping for a motorcycle loan online and also beginning to
build a credit history can take a lot of pain out of the
process.
About The Author: Jay Fran is a successful author and publisher
at Motorcycle-Financing-Guide.com, a national guide to compare
motorcycle lenders. Copyright (c) 2005, by Jay Fran. This
article may be republished as long as the author's information,
copyright information and the following active live link is
published with the article.
http://www.motorcycle-financing-guide.com/no-credit-motorcycle-loans.html
credit when shopping for motorcycle loans. The main reason for
this is that lenders all have a variety of strategies on how to
approach motorcycle loans in their loan portfolios. Some lenders
see motorcycles loans as a risky but feasible business
investment, while other lenders label motorcycles loans as a
high risk money losing investment. Overall, the general
perception of most lenders is that a motorcycle is a "toy" and
therefore motorcycle loans are much more risky than other types
of loans. This "toy" labeled perception from lenders is a
critical component which makes shopping for a motorcycle loan
much more difficult for motorcycle buyers with thin or no
credit.
The first step to get approved for limited or no credit
motorcycle loans, is to look online. The reason for this is
that many online lenders are very competitive with offering
motorcycle loans and some of them specialize in limited or no
credit motorcycle loans.
If you have searched online and are still having trouble
getting approved due to limited or no credit, it is critical
that you begin to understand the impact of your FICO credit
score. Essentially, a FICO credit score is the number one
variable most lenders use in approving you for a motorcycle
loan. The FICO credit score is a computer generated score which
is comprised of your credit payment history, amount owed, length
of credit, amount of new credit and types of credit.
Since many people with limited or no credit do not even have a
FICO credit score associated with their credit file their
motorcycle loan applications are sometimes automatically
declined by lenders. Therefore, the first step to getting
approved for a limited or no credit motorcycle loan is to start
building credit history. In order to get a computer generated
FICO credit score with your credit file you must have at least
one credit account that has been open for at least 6 months and
has been updated at least once in the previous 6 months.
This requirement can make it tough for young motorcycle buyers
or immigrants who wish to establish a credit score since some
lenders will not extend credit to people with a thin file.
However in today's age, there are credit card companies willing
to give newcomers a credit card with a small $500 limit to get
started.
As a result, if all else has failed and you have limited or no
credit a great way for you to begin building your FICO credit
score is to get a low credit limit credit card and begin using
it regularly for small everyday purchases. The key to this
strategy is keeping your purchases small and frequent and
paying off the balance every month on time. Always try to avoid
maxing out the credit cards or even using more than 30% of the
available credit limit. To make this easy some small purchases
can even become automatic by putting things like monthly cable
or telephone bills on automatic credit card payment.
The bottom-line is that finding a limited or no credit
motorcycle loan can be challenging, but working smarter by
shopping for a motorcycle loan online and also beginning to
build a credit history can take a lot of pain out of the
process.
About The Author: Jay Fran is a successful author and publisher
at Motorcycle-Financing-Guide.com, a national guide to compare
motorcycle lenders. Copyright (c) 2005, by Jay Fran. This
article may be republished as long as the author's information,
copyright information and the following active live link is
published with the article.
http://www.motorcycle-financing-guide.com/no-credit-motorcycle-loans.html
Tuesday, September 27, 2005
Discovering A Better Motorcycle Loan With A Better Credit Score
It is common knowledge that motorcycle financing companies'
base high importance on your FICO credit scores when approving
motorcycle loans. However, what many people overlook is that
their FICO credit score can dramatically impact the term on
their motorcycle loan along with the interest rate that is
assigned to the motorcycle loan.
In order to gain better motorcycle loan rates, it is highly
important that you think of your FICO credit score as a picture
of how risky you are to the lender. Your FICO credit score is
essentially a benchmark which motorcycle financing companies
use to grade you and assign a risk to you when applying for a
motorcycle loan. Since factors about your credit change on a
daily basis so can your FICO credit score.
The below 5 tips are designed to help ensure you improve your
creditworthiness as your credit score changes. Ultimately these
tips should help you obtain better motorcycle loan rates and
loan terms in the future.
Watch Your Debt- Keep your account balances below 25%-30% of
your available credit limit. This is especially true with your
revolving credit card because many motorcycle financing
companies see credit card debt as more risky. If you have a
credit card with a $500 limit, you should try to keep the
balance owed below $150 when you apply for a motorcycle loan.
Check Your Credit Regularly - In today's age it is easy to get
online to check your credit report. Checking your free credit
report regularly is very important because it can help you
uncover inaccuracies that are affecting your FICO credit score.
Don't let your credit health suffer due to inaccurate
information or errors on your credit report. If you find an
inaccuracy on your credit report contact the creditor
associated with the account or the credit reporting agencies to
correct it immediately.
Avoid Excessive Credit Inquiries - A credit inquiry normally
happens when you apply for credit. If you have a large number
of credit inquiries in a short time period many motorcycle
finance companies see this as a negative since it affects your
FICO credit score. Therefore, when you are applying for credit
or shopping for motorcycle loans it is very important you
consider how many times your credit is accessed. Be advised
that sometimes motorcycle dealerships will pre-screen you for a
loan by asking you for your driver licenses and social security
number. Normally this results in a credit inquiry on your
credit report. Be prudent in shopping for credit and motorcycle
financing.
Establish Credit Early - Time is very important part of
improving your FICO credit score. Therefore, it is recommended
that you start building credit early in life. Getting one or
two credit cards can significantly help build your credit.
However, the key to this strategy is keeping your purchases
small and frequent and paying off the balance every month on
time. When establishing credit you should also keep the oldest
account on your credit report open in order to lengthen your
period of active credit use. The length of your credit history
can make a big difference in getting approved for a motorcycle
loan.
Make Your Payment On-time - Paying your current credit bills
on-time is one of the biggest factors that contributes to a
higher FICO score. Typically when motorcycle finance companies
see potential customers that do not pay their bills on-time
then they either decline them or issue a motorcycle loan at a
much higher interest rate. Late payments, collections and
bankruptcies have the greatest negative effect on your credit
score and how lenders rate you when getting a motorcycle loan.
Copyright (c) 2005, by Jay Fran.
About The Author: Jay Fran is a successful author at
http://www.motorcycle-financing-guide.com - A comprehensive
resource to compare online motorcycle financing, motorcycle
loans and online motorcycle buying tips for Polaris, Honda,
Suzuki, Harley-Davidson, Yamaha and more.
base high importance on your FICO credit scores when approving
motorcycle loans. However, what many people overlook is that
their FICO credit score can dramatically impact the term on
their motorcycle loan along with the interest rate that is
assigned to the motorcycle loan.
In order to gain better motorcycle loan rates, it is highly
important that you think of your FICO credit score as a picture
of how risky you are to the lender. Your FICO credit score is
essentially a benchmark which motorcycle financing companies
use to grade you and assign a risk to you when applying for a
motorcycle loan. Since factors about your credit change on a
daily basis so can your FICO credit score.
The below 5 tips are designed to help ensure you improve your
creditworthiness as your credit score changes. Ultimately these
tips should help you obtain better motorcycle loan rates and
loan terms in the future.
Watch Your Debt- Keep your account balances below 25%-30% of
your available credit limit. This is especially true with your
revolving credit card because many motorcycle financing
companies see credit card debt as more risky. If you have a
credit card with a $500 limit, you should try to keep the
balance owed below $150 when you apply for a motorcycle loan.
Check Your Credit Regularly - In today's age it is easy to get
online to check your credit report. Checking your free credit
report regularly is very important because it can help you
uncover inaccuracies that are affecting your FICO credit score.
Don't let your credit health suffer due to inaccurate
information or errors on your credit report. If you find an
inaccuracy on your credit report contact the creditor
associated with the account or the credit reporting agencies to
correct it immediately.
Avoid Excessive Credit Inquiries - A credit inquiry normally
happens when you apply for credit. If you have a large number
of credit inquiries in a short time period many motorcycle
finance companies see this as a negative since it affects your
FICO credit score. Therefore, when you are applying for credit
or shopping for motorcycle loans it is very important you
consider how many times your credit is accessed. Be advised
that sometimes motorcycle dealerships will pre-screen you for a
loan by asking you for your driver licenses and social security
number. Normally this results in a credit inquiry on your
credit report. Be prudent in shopping for credit and motorcycle
financing.
Establish Credit Early - Time is very important part of
improving your FICO credit score. Therefore, it is recommended
that you start building credit early in life. Getting one or
two credit cards can significantly help build your credit.
However, the key to this strategy is keeping your purchases
small and frequent and paying off the balance every month on
time. When establishing credit you should also keep the oldest
account on your credit report open in order to lengthen your
period of active credit use. The length of your credit history
can make a big difference in getting approved for a motorcycle
loan.
Make Your Payment On-time - Paying your current credit bills
on-time is one of the biggest factors that contributes to a
higher FICO score. Typically when motorcycle finance companies
see potential customers that do not pay their bills on-time
then they either decline them or issue a motorcycle loan at a
much higher interest rate. Late payments, collections and
bankruptcies have the greatest negative effect on your credit
score and how lenders rate you when getting a motorcycle loan.
Copyright (c) 2005, by Jay Fran.
About The Author: Jay Fran is a successful author at
http://www.motorcycle-financing-guide.com - A comprehensive
resource to compare online motorcycle financing, motorcycle
loans and online motorcycle buying tips for Polaris, Honda,
Suzuki, Harley-Davidson, Yamaha and more.
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