credit card – John Hesch http://johnhesch.com/ Mon, 21 Mar 2022 16:28:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://johnhesch.com/wp-content/uploads/2021/07/icon-150x150.png credit card – John Hesch http://johnhesch.com/ 32 32 Can you get a mortgage if you have bad credit? https://johnhesch.com/can-you-get-a-mortgage-if-you-have-bad-credit/ Mon, 21 Mar 2022 16:28:00 +0000 https://johnhesch.com/can-you-get-a-mortgage-if-you-have-bad-credit/ If your credit isn’t great and you want a mortgage, you’re not always doomed, but you could pay a higher rate. Getty Images/iStockphoto Can I get a mortgage if you have bad credit? It’s a question that comes to readers from time to time, and the answer is: if your credit isn’t great and you […]]]>

If your credit isn’t great and you want a mortgage, you’re not always doomed, but you could pay a higher rate.

Getty Images/iStockphoto

Can I get a mortgage if you have bad credit? It’s a question that comes to readers from time to time, and the answer is: if your credit isn’t great and you want a mortgage, you’re not always doomed, but you can pay a higher rate. According to March 17, 2022 rate data from MyFico, a borrower with a credit score just between 660 and 679 can expect to receive an average APR of 4.46%. This compares to 3.85% for someone with an excellent credit score between 760 and 850. Over time, this could translate to a borrower with a lower score paying thousands of dollars more for their mortgage. .

Sometimes you won’t be able to get a mortgage at all if your score is low. Indeed, some lenders have minimum score requirements. For example, Freddie Mac and Fannie Mae both require a 620 or higher, and many other lenders follow these rough guidelines as well. That said, it’s not impossible to get a loan if your credit score is lower. Here’s what the pros told us.

Look at FHA, VA and USDA mortgages

Depending on your situation, you may consider applying for an FHA or VA loan. “Both loan programs not only have less stringent credit requirements than most traditional loans, they also have less stringent income and down payment requirements,” says Jacob Channel, senior economist at LendingTree. Adds Holden Lewis, real estate and mortgage expert at NerdWallet: “If your credit score is below 720 and you don’t have a 20% down payment, consider an FHA-insured mortgage or a VA-backed loan. if you are eligible.

What is an FHA loan?
An FHA loan is a US Federal Housing Administration insurance-backed mortgage that requires a lower minimum credit score than other loans. Borrowers can have a credit score as low as 500 to qualify, but those with a score between 500 and 579 will need to deposit 10%, while those with a score above 580 will only need to deposit 3 .5%.

FHA loans also require mortgage insurance, and all FHA loans require the borrower to pay two insurance premiums; an initial mortgage insurance premium which is 1.75% of the loan amount and an annual mortgage insurance premium which varies from 0.45% to 1.05% depending on the term of the loan. If you borrow $150,000, your initial mortgage loan insurance premium would be $2,625 and your annual premium would range from $675 to $1,575, spread over 12 months.

What is a VA loan?
A VA loan is a government loan that is available to active and veteran duty personnel and their eligible surviving spouses. You can get a VA loan with no down payment and they offer lower interest rates than other mortgages, plus they don’t have a monthly mortgage insurance requirement. VA loans do not require a minimum credit score, and instead individual lenders determine their specific requirements. The VA does not limit the amount you can borrow, but the loan limit for a no down payment loan is $647,200 for many counties. Still, even without a down payment, be prepared to pay closing costs and other fees, like VA financing fees that range from 2.3% to 3.6% of your loan amount. You will also need to prove that you have two months of mortgage payments in a reserve fund.

What is a USDA loan?
A USDA loan is a zero-down payment mortgage specifically designed for very low-income rural and suburban homeowners, for homes 2,000 square feet or less. Interest rates on these loans can be as low as 1% and borrowers with credit scores below 640 may be eligible for USDA loans, but will need to be manually approved, taking into account factors such as cash reserves and low indebtedness.

Compare the prices for the best mortgage rates and conditions

Another way for low credit borrowers to increase their chances of getting a mortgage is to shop around and compare multiple lenders on rates and terms. The pros say 3-5 quotes is a good goal: “The more lenders you look at, the more likely you are to find one that’s willing to work with you,” says Channel.

But here’s something to consider: when you apply for a new line of credit, a serious request is recorded on your credit report and can potentially lower your score. “A firm credit application will stay on your credit file for 24 months and can impact your score for the first 12 months,” says Glenn Brunker, president of Ally Home. This guide will help you learn how to shop around for a mortgage without hurting your credit score too much.

If you’re intimidated by shopping around on your own, using a mortgage broker can be helpful in finding special rates as well as saving your time and expense.

Improve your credit score before you apply for a mortgage

The good news is that your current credit score isn’t permanent — and improving your score can lower your borrowing costs and give you more options to choose from when taking out a loan. To do this, pay your bills on time, repay your debts and avoid opening new lines of credit. “After your payment history, your debt-to-equity ratio, also known as your credit utilization ratio, is the second most important factor in your credit score. When you pay down your balances, the availability of your credit increases and, in short, the lower your credit card, retail store, gas station and HELOC debt, the higher your FICO score,” says Brunker.

While fraud and credit reporting errors are out of your hands, they are known and if left undetected, you could pay the price in the form of a lower credit score. “If you find any inaccuracies in your report, you should contact the appropriate credit reporting agency immediately to report the issue,” says Brunker.

Improve your debt ratio before submitting your application for a mortgage

Your debt-to-income ratio is the sum of your monthly debt payments like your mortgage, car payments, student loans, and credit card payments, divided by your gross monthly income. Lenders generally like to see a DTI ratio no higher than 36%, while a DTI of 43% is generally the highest a borrower can have while qualifying for a mortgage.

Save more for a down payment on a house

As a general rule, the more money you can spend on a down payment, the better the rate you are likely to receive. With that in mind, those putting 20% ​​or more on a home can generally expect to get a very competitive rate, assuming they earn a decent income and have a good credit score. “Of course, a down payment isn’t the ultimate solution when it comes to getting a good interest rate on your mortgage, and even if you can’t afford to put down a lot, you can still get a good rate if you have great credit,” Channel says.

Remember to wait about getting a mortgage

Because a higher rate can make monthly payments hundreds of dollars more expensive — and cost thousands of dollars in interest over time — Channel says it might make more sense for some poorer borrowers to delay payment. getting a mortgage and instead working to boost their rating. “The higher your score, the more likely you are to find a lender and the better your rate will be,” Channel says.

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HELOC potential “20 times greater than that of a second mortgage”, says CEO https://johnhesch.com/heloc-potential-20-times-greater-than-that-of-a-second-mortgage-says-ceo/ Mon, 14 Mar 2022 16:19:41 +0000 https://johnhesch.com/heloc-potential-20-times-greater-than-that-of-a-second-mortgage-says-ceo/ Hubert Fenwick, co-founder and CEO of fintech Selina Advance, said there is a “huge opportunity” for the UK mortgage industry to commercialize home equity lines of credit (HELOCs), which could potentially generate £25bn. pounds per year. The company is said to be the first in the UK to market a HELOC, a type of second […]]]>

Hubert Fenwick, co-founder and CEO of fintech Selina Advance, said there is a “huge opportunity” for the UK mortgage industry to commercialize home equity lines of credit (HELOCs), which could potentially generate £25bn. pounds per year.

The company is said to be the first in the UK to market a HELOC, a type of second mortgage which allows homeowners to borrow against the value of their home and access cash.

However, unlike a second mortgage, a HELOC allows the borrower to withdraw cash as needed instead of a lump sum. HELOCs are a more common mortgage product in the United States, where they are normally used to pay for repairs, renovations and even training courses.

home ownership price

Revealed – percentage of Londoners unhappy as property prices continue to rise

Speaking to Mortgage Introducer last week, Fenwick said there was a large untapped market for HELOCs in the UK.

He said: “If you look at the size of the US market – $130bn a year on an individual basis – that would imply the market is around £25bn (in the UK). That’s about 20 times the size of a second load market.

A 2016 report by data analytics firm Corelogic noted that the HELOC market peaked in the United States in 2005, when creations totaled nearly $364 billion, dropping to around $150 billion in 2015, although a separate 2017 report estimated that demand for the product would double. by this year.

Since 2020, when Selina Advance gained regulatory approval for consumer lending, the company has issued over $100 million in loans with HELOC products in the UK.

The company recently raised $150 million in Series B funding, while existing investors are also pitching in to raise $35 million in equity. In addition, $115 million of debt has been guaranteed by Goldman Sachs to fund further expansion to first public securitization.

Fenwick, who co-founded the company with COO Leonard Benning in 2019, went on to explain the benefits of the product. He said: “The main attraction is that it doesn’t affect the (borrower’s) mortgage. It rests on top; kinda like a second charge. But it’s also flexible, so you don’t have to pull at any time. It’s like a credit card in that you only pay interest for the funds you need.

He also pointed out that there are no prepayment charges with a HELOC and the borrower is not tied to higher interest debt. “You are not bound in any way. You don’t have to draw anything you’re approved for, so it’s really empowering for owners.

According to a report by US personal finance company, Nerdwallet, the main disadvantage of a HELOC is that it increases the risk of foreclosure if the borrower is unable to repay the loan. It is also not suitable if the borrower’s income is unstable or if he cannot pay the initial fees.

Fenwick, however, stressed that the company wanted to be “very incentive aligned with our borrowers.”

He said: “The maximum we’ll go into is 85% LTV, so we’re still keeping a decent share of the equity in their homes – and they obviously have an incentive to preserve that value.”

He pointed out that while some second-charge lenders were lending up to 120%, Selina Advance would not follow. “We want it to be a tool for financial empowerment and for people to make smart financial decisions and save money. We don’t really see it as a tool to just add more leverage or take on more debt.

When asked why the product didn’t catch on earlier in the UK, he said: “The UK banking system is very oligopolistic. There has been very little innovation in many areas. They have huge mortgage companies, huge credit card companies, huge

current account businesses, but they haven’t really focused on creating new products that really benefit owners.

Although Fenwick said he expected demand for HELOC to “explode in the UK over the next five years”, he added that it would take time to educate customers and loan advisers. mortgages.

“We’re building a business for the very long term – you don’t educate a market overnight,” he said. “The US was the pioneer of credit cards, but it took the UK about 10 years to catch up and now credit card usage and penetration is almost identical in the UK and United States.”

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Prepare early for interest rate changes, Liberty says https://johnhesch.com/prepare-early-for-interest-rate-changes-liberty-says/ Sun, 13 Mar 2022 22:00:00 +0000 https://johnhesch.com/prepare-early-for-interest-rate-changes-liberty-says/ Home loans Home loans MELBOURNE, Australia, March 14, 2022 (GLOBE NEWSWIRE) — With much speculation about interest rate hikes to come, freethinking lender Liberty says there are steps homeowners can take to prepare for a higher interest rate market. Many homeowners are concerned about forecasts that June could bring interest rate hikes. But they can […]]]>

Home loans

Home loans

MELBOURNE, Australia, March 14, 2022 (GLOBE NEWSWIRE) — With much speculation about interest rate hikes to come, freethinking lender Liberty says there are steps homeowners can take to prepare for a higher interest rate market.

Many homeowners are concerned about forecasts that June could bring interest rate hikes. But they can minimize the impact on their home loan repayment with a few simple steps.

Talking to a mortgage broker or Liberty Adviser is an easy first step. A broker can help homeowners assess their finances and see where changes can be made to accommodate reimbursement increases.

Heidi Armstrong, head of consumer advocacy at Liberty, says a broker can also help review an existing home loan to see where efficiencies can be made to help reduce interest payable.

“Homeowners may not realize the features of the home loan available to them that could help reduce the amount of interest they pay.

“Opting for an offset account or having your salary paid into your loan to use as an all-in-one account are just a few options mortgage holders might want to explore.”

A broker can also help homeowners consider consolidating high-interest credit card or personal loan debt into their home loan, making their overall loan obligations much easier to manage.

For those who are only making the minimum loan repayments, additional repayments could help minimize their loan and reduce the overall interest payable. Using an online repayment calculator can allow homeowners to see the impact even a small increase can have on the term of their home loan.

And for those looking to buy, flexible lenders like Liberty can accommodate those with unique circumstances. The leading non-bank encourages borrowers with irregular, seasonal or self-employed income to consider their more free-spirited mortgage solutions.

Approved candidates only. Lending criteria apply. Taxes and fees are payable. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit License 338133, as well as trading as Liberty Financial.

Contact
Heidi Armstrong
Group Leader – Consumer Communications
Phone. : +61 3 8635 8888
Email: mediaenquiries@liberty.com.au

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How to Choose the Best Loan Company for Bad Credit https://johnhesch.com/how-to-choose-the-best-loan-company-for-bad-credit/ Tue, 08 Mar 2022 20:59:55 +0000 https://johnhesch.com/how-to-choose-the-best-loan-company-for-bad-credit/ A bad credit loan could be a viable option if you can’t get approved for a loan from a bank, credit union, or borrow money from friends and family. It is relatively easy to apply and most lenders issue quick loan decisions. Interest rates can reach up to 36% on unsecured and secured personal loans […]]]>

A bad credit loan could be a viable option if you can’t get approved for a loan from a bank, credit union, or borrow money from friends and family.

It is relatively easy to apply and most lenders issue quick loan decisions. Interest rates can reach up to 36% on unsecured and secured personal loans for bad credit or triple digits for payday loans and cash advances.

However, not all loan options are the same. Before applying, consider how to choose the best bad credit lender.

What is a bad credit loan

A bad credit loan is a personal loan for consumers with credit difficulties. You may also qualify for a bad credit loan if you have little or no credit history.

Loans for bad credit generally have no restrictions on how the funds can be used. Some borrowers cover financial emergencies, medical bills, or make expensive home repairs. Others use the money to consolidate their debts or as they see fit.

These loan products usually come with high interest rates because they are risky for the lender. But the interest rate on most bad credit loans is fixed, so the monthly payment amount won’t change. Loan proceeds are allocated in a lump sum and payable in equal monthly installments over a specified period.

Payday loans and cash advances are alternatives to bad credit personal loans. However, interest rates and fees tend to make these loans very risky options.

Types of loans for bad credit

There are four main types of bad credit loans.

Secure loan

You will need collateral to get approved for a secured loan. However, the rate will generally be lower than what you would get with an unsecured loan. Your lender can seize your property and sell it to recover their losses if you fail to repay the loan.

These loan products are also easier to obtain if you have bad credit. However, they should only be used if you can comfortably afford the loan repayments.

Unsecured loan

This type of loan is preferred if you need a bad credit loan. You won’t need collateral to qualify and you could be eligible for a hefty amount. The downside is that your interest rate will be higher with a lower credit score.

Consider targeting online lenders. They tend to offer more flexible personal loan options for borrowers with bad credit than traditional banks and credit unions.

payday loan

A payday loan can be used as a last resort if you cannot qualify for a personal loan or borrow from family or friends. It is a short term loan of $500 or less. It comes with an excessive interest rate, usually in the triple digits, and is payable on the day of your next payday.

These loans are extremely risky and can trap you in a dangerous cycle of debt if you are unable to pay and are forced to extend the term of the loan. You could rack up several hundred dollars in interest and fees each time you carry over the balance.

Cash advance

Like payday loans, cash advances are another expensive way to borrow money. They are available from some credit card issuers and involve withdrawing funds from your credit card’s available balance.

The amount you borrow will be added to your existing account balance, but you can expect to pay a higher interest rate than that charged for purchases made with the card.

How to Choose a Loan Company for Bad Credit

Beyond funding timelines, there are other factors to consider when evaluating bad credit lenders.

Borrowing costs

The cost of borrowing varies by lender and loan product. Get options from multiple lenders and compare them to see which offers the most competitive interest rate and doesn’t charge a fortune in fees.

Reputation of the lender

Bad credit loans are readily available from several financial institutions, both physical and online. Not all lenders are the same and some should be avoided. Some lenders may even be scammers.

Avoid lenders that aren’t registered to do business in your state, offer guaranteed approvals without a credit check, or require an upfront payment to approve you for a loan. It is equally important that they have a secure website and a physical address.

Loan conditions

An extended repayment term means that your monthly payment will be lower, but you will pay more interest over the life of the loan. So, a shorter loan term might be more ideal if you want to pay off what you owe faster and save a lot of interest.

Client experience

The lender should offer customer support by phone, online, or both at times that suit your busy schedule. It’s also essential that the application experience is seamless and that the lender gives you the ability to manage your loan online through a mobile app once it’s approved and you start making payments.

At the end of the line

Several loan options for bad credit could be suitable. But before applying for a loan, research loan types and shop around for quotes. When narrowing down your options, you also want to evaluate lenders based on their reputation, loan costs, terms, and customer service to find the best one for you.

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Top 5 Tips for Rebounding from Bad Credit | News from the region https://johnhesch.com/top-5-tips-for-rebounding-from-bad-credit-news-from-the-region/ Sun, 06 Mar 2022 02:29:00 +0000 https://johnhesch.com/top-5-tips-for-rebounding-from-bad-credit-news-from-the-region/ Budget setbacks can happen at any time, whether it’s unexpected bills, expensive repairs or the loss of a job. These financial situations can lead to bad credit or financial instability. Having a bad credit score can affect your loan, mortgage, or job application. A bad credit score is seen as a sign of lack of […]]]>

Budget setbacks can happen at any time, whether it’s unexpected bills, expensive repairs or the loss of a job. These financial situations can lead to bad credit or financial instability.

Having a bad credit score can affect your loan, mortgage, or job application. A bad credit score is seen as a sign of lack of discipline in credit behavior, which lowers your chances of availing loans.

You might end up paying higher interest for sanctioned loans. The good news is that there are companies that offer personal loans for bad credit. However, be sure to conduct thorough research to identify a reputable lender in your locality.

Nevertheless, it is important to identify ways to bounce back from a bad credit score. It would be better to understand that rebuilding your credit is more difficult than starting from scratch.

You are trying to show credit card issuers, lenders and employers that you will be able to have better financial management in the future despite your current situation. But before you begin the process of rebuilding your credit score, it’s essential to make sure you understand your current score.

Below are some tips you might consider using to rebuild your credit score. They understand:

1. Take stock of your debt

Taking stock of your debt will make it easier for you to know how much you owe and how much interest it’s costing you. You can easily decide where you should start focusing your efforts and the best strategy for paying off your debt. This includes:

Debt Snowball – This debt repayment strategy allows you to gradually repay the smallest to the largest debt. This way, you will make progress sooner.

Debt Consolidation – This strategy allows you to consolidate all your debts into a single loan with a single interest rate. This will make it easier to pay and track your various debts.

Avalanche of debt – In this method, you will prioritize paying off the debt with the highest interest rate. This is an ideal route to save time and interest on your debt repayment journey.

Do extensive research to identify the best strategy for paying off your debts. Paying off your debt will influence your credit score, making it easier for you to get a low-interest loan or mortgage.

2. Refrain from submitting multiple credit applications

Each time you apply for a loan or credit card, the issuer will assess your creditworthiness using your credit report. Such lender-initiated credit reports can lower your credit score by certain points.

So, if you apply to multiple lenders, especially in a short period of time, it can negatively impact your credit score.

To avoid this, visit various online marketplaces to compare loans based on your credit score instead of applying for a loan directly from multiple lenders. Although these marketplaces may retrieve your report from a credit bureau, this will not affect your credit score as these are unauthorized requests.

3. Set up automatic payments

Several factors can affect your credit score. They include late payments, credit usage, etc. Thus, on-time payments will play a huge role in improve your credit report. Automating your payment will ensure you don’t miss any payments.

Features like autopay are generally available for most bills and let you set a date each month to automatically use funds from your bank or credit account to pay bills. This will help you avoid late payments, which will help rebuild your credit score.

4. Develop a financial cushion

Developing a financial cushion will ensure you have a reliable way to pay for unexpected expenses if your savings fund isn’t enough. So your rainy day fund should include backup options beyond a savings account.

Including a contingency funding option in your emergency plan will make it easier to access sufficient funds to meet unexpected bills.

If your fund is low, it’s important to improve your savings rate, to ensure you have a steady flow of funds to cover emergencies.

This is another trick you can use to tackle your debt. Be sure to conduct a thorough audit to understand where your money is currently going. This will make it easier for you to assess whether your current budget meets your financial goals.

For example, if your goal is to pay off debt, but you find yourself spending money on other things like shopping, it’s time to re-evaluate your budget. This will help you avoid accumulating debt, which could affect your credit score.

There are several ways you can use to improve your budget. For example, 50-30-20 budgeting is a strategy that helps you divide your income into essentials, wants, and savings. You can also use several budgeting apps to reassess your spending and improve your credit score.

As stated above, bad credit can affect your loan or mortgage application. You could end up paying higher interest, which would affect your savings margin. For this reason, it is important to identify ways to increase your credit score.

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Can you finance an engagement ring with bad credit? https://johnhesch.com/can-you-finance-an-engagement-ring-with-bad-credit/ Mon, 28 Feb 2022 16:02:06 +0000 https://johnhesch.com/can-you-finance-an-engagement-ring-with-bad-credit/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. You may be able to get financing […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

You may be able to get financing for an engagement ring with bad credit through personal loans, credit cards, or in-store financing. (Shutterstock)

Buying an engagement ring is exciting, but figuring out how to finance that important purchase can be daunting. The national average cost of a diamond engagement ring is $6,000, according to The Knot 2021 Jewelry and Engagement Study. But if you’re like a third of engagement ring shoppers, you’ll probably spend $1,000 to $4,000.

You can finance an engagement ring with bad credit, although it may not be the right option for your long-term financial goals. Let’s take a look at where you can get financing for an engagement ring with bad credit, what factors to consider, and if it’s the right option for you.

With Credible, you can compare personal loan rates from various lenders in minutes.

Can you get financing for an engagement ring with bad credit?

Yes, it is possible to finance an engagement ring even if you have bad credit. But keep in mind that even if you may be approved for a financing plan, you may not be able to get the best rates and terms.

Lenders look at your credit score and history to determine the rate to offer you. If you have a lower credit score or little or no credit history, lenders consider you a riskier borrower than someone with good to excellent credit. So, lenders will charge higher rates or offer stricter terms to compensate for the risk of someone with bad credit defaulting on the loan.

What credit score do you need to finance an engagement ring?

Since some lenders work with people with bad credit or shallow credit histories, it’s possible to finance an engagement ring with virtually any credit score. But FICO scores of 579 and below are considered bad credit, which lowers your chances of getting financing with low rates and flexible terms.

Where to get financing for an engagement ring with bad credit

Regardless of your credit score, you have several options for financing an engagement ring. Keep in mind that your credit history and financial situation will determine which one is best for you.

Here are some engagement ring financing options to consider.

Personal loan

Personal loans are usually unsecured, meaning you don’t have to provide collateral for the loan. You can use them for a variety of purposes and they are available from banks, credit unions, and online lenders.

Some best personal loans have fixed rates, long repayment terms and a fast application process. Although personal loans for bad credit are available, these options are limited, may include additional fees, and approval time may take longer.

Credible, it’s easy to compare personal loan rates from multiple lenders — without affecting your credit.

Finance through a jewelry store

In-store financing can be a convenient option, especially when the jeweler extends a 0% purchase APR for a specified period. Store credit cards can be easier to secure with poor credit, and they can offer rewards when used in-store.

But many of these cards can only be used in a specific business. And if you still have a balance when the promotional period expires, you’ll start earning interest at the card’s regular rate – and retail credit card rates tend to be much higher than credit cards. traditional.

Credit card

Paying for an engagement ring with a credit card allows you to continuously draw down and pay down your line of credit. If you make your payments on time, it can even help improve your credit.

Similar to in-house jewelry financing, some credit cards come with 0% APR introductory offers, which could help you avoid paying interest for a while. But like other introductory APR offers, you’ll start earning interest if you still have a balance when the offer ends.

Ready to buy now, pay later

A buy now, pay later loan lets you split a large purchase into several interest-free payments. Some lenders do not require credit checks or extensive credit applications to qualify.

Interest-free installments are an advantage if you can’t afford to pay more than the original purchase price. The downside is that you may need to provide a down payment and the amount of credit given to you may be limited.

What to Consider When Choosing Engagement Ring Financing

A commitment is an important milestone to celebrate, but just because your funding is approved doesn’t necessarily mean it’s the right option for you. Consider the following when choosing engagement ring financing:

If you want to use a personal loan to fund an engagement ring, Credible lets you compare personal loan ratesall in one place.

Should you finance an engagement ring?

The best way to buy an engagement ring is to save money so you don’t have to finance the purchase. This allows you to avoid interest charges and the stress of keeping up with a monthly payment.

But financing an engagement ring can make sense if you can get a good interest rate, comfortably make monthly payments, and improve your credit in the process. If you can only qualify for a credit card or a high-interest loan, or if the monthly payments are putting too much of a strain on your budget, financing an engagement ring could turn your token of love into debt. stressful.

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Union Bank Tops List Of Nigerian Banks Giving Highest Loan Amount To Unsecured Customers https://johnhesch.com/union-bank-tops-list-of-nigerian-banks-giving-highest-loan-amount-to-unsecured-customers/ Thu, 24 Feb 2022 14:28:25 +0000 https://johnhesch.com/union-bank-tops-list-of-nigerian-banks-giving-highest-loan-amount-to-unsecured-customers/ More and more Nigerian banks are offering various services for customers to get fast loans Loans are offered without clients needing to provide collateral, which should be standard practice Union Bank and First Bank are among the largest Nigerian banks to provide these loans in response to CBN’s drive to make more finance available for […]]]>
  • More and more Nigerian banks are offering various services for customers to get fast loans
  • Loans are offered without clients needing to provide collateral, which should be standard practice
  • Union Bank and First Bank are among the largest Nigerian banks to provide these loans in response to CBN’s drive to make more finance available for businesses and households.

Nigerian banks are offering unsecured loans, which do not require collateral, as demand increases among small and medium enterprises (SMEs) and households.

The CBN’s recent loan-to-deposit ratio (LDR) policy has caused this rise, forcing banks to increase real lending to the sector to improve economic growth.

The CBN Governor, Godwin Emefiele, had recently taken tough decisions to address the challenges that are hampering the growth of the real sector and, more generally, the Nigerian economy.

Read also

Huge black market gap, forex scam to boost official exchange rate as banks release more names, leads Zenith

Union Bank List of Nigerian Banks Giving Highest Loan Amount to Unsecured Customers
More and more Nigerians are getting unsecured loans from banksCredit: Joseph Egabor
Source: Getty Images

The CBN launched the LDR on July 3, 2019, ordering banks to now maintain 60% from September 30, 2019.

CBN’s latest consumer credit report shows demand for credit card unsecured loans rose to 9.4 index points in the fourth quarter (Q4) of 2020, from 4.9 points in the first. quarter of the same year, reports BusinessDay.

Banks that offer unsecured loans, as seen on their websites:

  • Access Bank, which offers up to N10 million unsecured to SMEs;
  • Loyalty bank (N10m)
  • First Bank (N10m)
  • GT Bank (N30m),
  • Polaris bench (N10m)
  • Standard Chartered Bank (N20m)
  • Union Bank (50 million naira)
  • Zenith bench (N10m)

First Bank

For example, First Bank of Nigeria Limited has designed various salary products for Nigerian workers with home salary accounts.

According to the bank, its collateral-free loan offerings are designed to help people unlock their existing wealth.

Read also

FirstBank secures N41.5 billion partnership to boost women entrepreneurs and SMEs in Nigeria

First Bank owner Femi Otedola earns N400m in a day

Legit.ng reported that billionaire businessman Femi Otedola became N400 million richer in a single day, thanks to his controlling shares in First Bank Holding Limited.

Otedola earned the amount in a single session on the Nigerian Exchange Limited, as investors bought back the shares of major banks after the trading day.

The serial investor and Chairman of Geredu Power Plant currently owns the majority stake in First Bank Holdings Plc. His shares in Nigeria’s leading bank amount to 2.7 billion total shares, representing 210 billion direct equity and 2.5 billion issued shares of the company.

Source: Legit.ng

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Best credit cards for bad credit: February 2022 https://johnhesch.com/best-credit-cards-for-bad-credit-february-2022/ Fri, 11 Feb 2022 22:00:00 +0000 https://johnhesch.com/best-credit-cards-for-bad-credit-february-2022/ CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission through the LendingTree Affiliate Network if you apply and are approved for a card, but our reporting is always independent and objective. If you have a low credit score, you might be surprised […]]]>

CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission through the LendingTree Affiliate Network if you apply and are approved for a card, but our reporting is always independent and objective.

If you have a low credit score, you might be surprised to learn that getting a new credit card could actually help. If you can get a new card approved despite having bad credit, you’ll have the opportunity to develop better credit habits and better creditworthiness through responsible use. Plus, adding a new card can improve your credit utilization rate and your credit score if you’re already in debt.

Unfortunately, credit card options for people with bad credit tend to have few benefits. For example, you usually won’t get a welcome bonus with these types of cards, and they usually charge fees, such as annual fees and foreign transaction fees. Credit cards for bad credit can also come with high interest rates, which can make maintaining a balance expensive.

But with all that said, it’s important to understand that some credit cards for bad credit are considerably better than others. So let’s take a look at the types of credit cards you might qualify for with poor credit, and how you can use them to your advantage.

Click here to see the latest list of the best credit cards for people with bad credit.

If you have bad credit, you are probably already aware of it. After all, a bad credit score usually means that you’ve been denied a credit card or other loan in the past because a lender felt you posed too much of a financial risk. You probably also know the reason why you have bad credit to begin with, whether it’s because you let a loan or credit card go into default, you have an account in collection, or you go bankrupt. case.

But even if that’s the case, it never hurts to check your credit score so you know exactly where you stand. Fortunately, there are several ways to check your credit score for free.

You can start by signing up for a credit monitoring service that provides a free credit score or a program that offers free credit monitoring tools. For example, Experian Boost gives consumers a free snapshot of their FICO credit score, and it can even help you improve your score quickly.

When working on your credit score, you’ll probably want to pay the most attention to your FICO credit score because it’s the most commonly used scoring model. FICO credit scores range from 300 to 850 and are broken down into the following levels:

  • Excellent: 800 and above
  • Very good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 579 and below

While truly “bad” credit is a FICO score of 580 or lower, “fair” credit between 580 and 669 is still below average compared to other US consumers. If your credit score falls into one of these categories, you need to take steps to improve it as soon as possible.

See if you qualify for one of these credit cards for people with fair credit.

If you have poor credit, you can qualify for two types of credit cards: secured credit cards and unsecured credit cards.

Secured credit cards are usually the easiest to get if you have bad credit. However, secured credit cards require a cash deposit to get started. This means that you may need to deposit $200, $500 or more as collateral, and you will usually get a low credit limit at or near your deposit.

The biggest advantage of secured credit cards is that they are usually reported to major credit bureaus. This means that all of your one-time payments are added to your credit report, which can help you increase your credit over time. And even if you need to put down a cash deposit to open a secured card, if you later close the account or upgrade in good standing and with a $0 balance, your deposit will be refunded.

Save money with these best credit card offers for people with bad credit.

In addition to secured credit cards, you may also qualify for an unsecured credit card with bad credit. These cards tend to come with fees, low credit limits, and few benefits, but they can still help you build credit.

Store credit cards are also a type of unsecured credit card that may be easier for people with bad credit to approve because they can usually only be used at the store or chain that issues the card.

Besides being easier to get, the biggest advantage of store credit cards is that if you find yourself shopping at a particular retailer often, you may be able to save money, whether on your initial purchase or later on a future shopping spree. Typically, using a store credit card saves you 5% on your purchase, and store credit cards can also have other benefits that you might not have thought of. .

Before you get a new credit card, you need to make sure you have a clear understanding of what you hope to accomplish. Although obtaining a credit card gives you the opportunity to improve your credit, you could worsen your credit if you are not prepared to take on this responsibility. So before you apply, ask yourself these questions:

  • Do I plan to carry over a balance? If you want a credit card so you can carry over a balance, be aware that credit cards for bad credit come with high interest rates. Not only that, but secured credit cards require you to deposit money as collateral, so they’re not a good option if you need a loan.
  • Am I interested in the rewards? Some credit cards for people with bad credit offer the opportunity to earn rewards on your spending. Although rewards can be lucrative, keep in mind that they often entice people to spend more than they intended.
  • Do I want to pay an annual fee? Not all credit cards for people with bad credit charge an annual fee, but some do. If you decide to pay an annual fee, you need to make sure that any benefits you get in exchange are worth it.
  • Am I ready to take my credit seriously? A new credit card gives you the opportunity to improve your credit, but it won’t happen automatically. In most cases, getting a new credit card will only help your situation if you keep your balance low and always pay your bill on time.

The best credit cards for bad credit may not sound very appealing, but the point is to use them to boost your credit score so you can qualify for better deals later. But there are a few “gotchas” to be aware of and watch out for, including:

  • Costs: While you should try to avoid annual fees if you can, you should also be aware that some credit cards, especially those for people with bad credit, try to charge an account set-up fee or program fees. Avoid these offers as much as possible.
  • High APRs: Beware of high interest rates which can make debt incredibly expensive. In fact, if you’re considering using a credit card to improve your credit, you should try to avoid carrying a balance on the new card entirely.
  • Credit errors: Finally, watch out for mistakes that hurt your credit in the first place. The worst thing you can do is pay your credit card bill late, as this will have a major negative effect on your credit score, so avoid it at all costs.

Compare credit card offers available to people with fair credit.

If your goal is to get a new credit card to help rebuild your credit, you need to know and understand how your credit score is determined in the first place. Let’s take a closer look at the five factors that make up your FICO credit score:

  • Payment history: 35%
  • Amounts due: 30%
  • Length of credit history: 15%
  • New credit: 10%
  • Credit mix: 10%

When you look at these factors, it’s easy to see what your next steps should be. More importantly, you should strive to pay your credit card bill — and all your other bills — on time each month. Also, you need to keep your debt to a minimum, because the amount you owe against your credit limits is 30% of your FICO score, also known as your “credit utilization rate.”

Since any credit card you get with bad credit will likely have a low credit limit to start with, you’ll need to be extra careful not to go over your credit limit and pay off your balance as much as possible each month to keep your credit utilization rate is low.

The length of your credit history can also be increased if you keep old credit accounts open and in good standing, and you can keep your score high in the “new credit” category by refraining from opening too many new accounts.

Your credit mix is ​​a final category to keep in mind, but you might not have too many different types of credit — such as installment loans like a mortgage or car loan — when your credit score credit is fair or bad. Once you’ve improved your credit score, you can worry more about diversifying your credit with installment loans, revolving accounts, and other types of credit.

Ultimately, if you’re going to get a new credit card in an effort to improve your bad credit, you need to make sure that you don’t make the same mistakes that got you into trouble in the first place. So if you decide to apply for a new credit card, be smart about how you use it. Don’t overspend, don’t pay bills late, and avoid cards that charge high fees so you can get back on the path to good credit.

Learn more and apply now for the best credit cards you can get with bad credit.

Is your credit rating good or excellent? Or maybe you have no credit? CNN underlined has you covered with our other stories in this series:

Check out CNN Underscored’s list of best credit cards available now.

Get all the latest personal finance deals, news and advice from CNN Underscored Money.

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How to Improve Bad Credit and Get a Home Loan https://johnhesch.com/how-to-improve-bad-credit-and-get-a-home-loan/ Sun, 06 Feb 2022 11:10:45 +0000 https://johnhesch.com/how-to-improve-bad-credit-and-get-a-home-loan/ You may have saved enough for a deposit on a car or a house, but your dreams may be dashed at the last hurdle if your credit score isn’t up to scratch. If you need a loan for a major purchase, your lender will check your credit score to determine your reliability as a borrower. […]]]>

You may have saved enough for a deposit on a car or a house, but your dreams may be dashed at the last hurdle if your credit score isn’t up to scratch.

If you need a loan for a major purchase, your lender will check your credit score to determine your reliability as a borrower.

Get a good score and you can get the loan at a reasonable interest rate. bad score, and you might have trouble getting a competitive interest rate or a lender at all.

How to improve your credit score

If you have caused damage to your credit rating, the first step in redemption is to take responsibility and pay off all outstanding debts.

Experity director Clint Howen says contacting the organizations you owe is the first step to clearing the debt from your credit report.

“For example, if it’s an invoice with Telstra, the process is usually to go through Telstra and say, ‘Hey, I’ll pay off this debt, whatever is left, sorry. How can I take that out of my report?” he said.

If you’re having trouble paying overdue bills that affect your credit score, you can get a loan or use a credit card to help pay it off.

But if you go this route, be careful.

Mr Howen said that if you’re using a loan or credit card to pay off debt, make sure the limit is low; for example, if you are using a credit card, set the limit to $500 instead of $5,000.

“Yes, it works…but be as careful as possible because you can easily end up in a much worse position,” he said.

There are also professionals who specialize in checking your credit report, which can be a good option if you have several problems or need them fixed quickly.

To protect your credit score in the future, Fitzpatricks Private Wealth financial planner Gianna Thomson recommended paying your bills by direct debit to avoid missing a payment deadline.

Loretta Iskra, a professor at the University of Wollongong, said the resources offered by the government MoneySmart websiteand can help you improve your financial literacy and put you in touch with a financial advisor if you need one.

“Often people don’t know what they don’t know,” Ms Iskra said.

“So being able to ask someone else to give their opinion on what’s going on… [is needed] so they can understand the things that are more important in terms of spending and that impact their credit risk. »

How Credit Scores Are Damaged

A common way people hurt their credit score is by not paying even small bills, Howen said.

“Any type of subscription or plan you have, or bills you miss – it’s going to show up on your credit report,” he said.

He said most people get caught up in smaller bills they forget about, like telecom bills, which can haunt them for years.

Ms. Iskra said sometimes you might not even be at fault because a credit company may have accidentally duplicated an application from your credit report.

To make sure that’s not the case, you can check to see if anything on your credit report has been listed twice, she said.

Investors Choice Mortgages director Jane Slack-Smith said sometimes a demerit on your report might not even be yours – for example, you might take the fall of a roommate who didn’t pay the bill on time even though you gave him the money.

That’s why you should request a free copy of your credit report and review it carefully, Slack-Smith said.

You can access your credit report from a credit reporting agency free of charge once every three months.

You can also request a free copy if you have been denied credit in the last 90 days or if your personal credit information has been corrected.

But beware: if your credit report has been requested too many times, it could set off alarm bells for potential future lenders.

How a bad credit score affects your loan application

If you’ve defaulted on a loan in the past, it could automatically disqualify you for a loan from another lender in the future, Mr Howen said.

Even if you do end up paying the amount owed, it can take years for the default to be cleared from your credit report.

He said it could leave you stuck with “non-compliant” lenders who charge higher interest rates and are not regulated by the Australian Prudential Regulation Authority.

Ms Iskra said: ‘Having a good rating really allows you to have a better choice for a better range of options and to minimize costs wherever possible.’

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How to get student loans for parents with bad credit – Forbes Advisor https://johnhesch.com/how-to-get-student-loans-for-parents-with-bad-credit-forbes-advisor/ Fri, 04 Feb 2022 12:09:31 +0000 https://johnhesch.com/how-to-get-student-loans-for-parents-with-bad-credit-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Many parents wonder how they are going to pay for their child’s college education, especially since the cost of higher education seems to increase every year. However, borrowing for your child’s education […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Many parents wonder how they are going to pay for their child’s college education, especially since the cost of higher education seems to increase every year. However, borrowing for your child’s education can be more complicated if you have bad credit.

Fortunately, there are ways to find financing even if you have bad credit. Here’s what you need to know.

Start with Parent PLUS Loans

If you need to borrow student loans for your child, Parent PLUS Loans should be one of the first places you should look. These federal student loans allow you to borrow money on behalf of your child who is attending college. It covers the full cost of attendance minus any other financial aid the student receives, such as grants and scholarships.

For many, especially those with poor credit, federal student loans may be a better option than private debt. They are generally easier to obtain and everyone receives the same interest rates, regardless of your credit. They also come with greater protections, such as more flexible repayment options and forgiveness programs.

To qualify for a parent PLUS loan, you must be the biological or adoptive parent of a dependent undergraduate student who is enrolled at least part-time in school. In some cases, a step-parent may also be eligible.

While most types of federal student loans don’t require a credit check, a PLUS parent loan does, but there’s more leeway than you might think. To receive a PLUS loan, you cannot have “adverse credit,” which means you cannot have the following items on your credit report:

  • Overdue account balances totaling more than $2,085 over the past two years; or the same amount collected or paid in the last two years
  • A tax lien, foreclosure or repossession within the past five years
  • Garnishment of wages in the last five years
  • Cancellation of federal student debt over the past five years
  • Accounts in default in the last five years

If you don’t have a lot of credit to your name or your score is low for other reasons, chances are you’ll be easily approved. There is no minimum credit score requirement, and everyone who qualifies for a parent PLUS loan receives the same interest rate.

If you have experienced credit issues like those listed above, all is not lost. You may still qualify for Parent PLUS Loans, but you will need to take additional steps.

Consider adding an endorser

If you cannot qualify on your own, you can add an endorser to your application. An endorser, similar to a co-signer, is someone who has no adverse credit history and agrees to repay the loan if the parent cannot. The endorser cannot be the child receiving the loan, but it can be another family member or a close friend.

Becoming an endorser carries risks: the endorser is legally responsible for repaying the loan if the primary borrower fails to do so, and any missed payments or negative marks will also appear on the endorser’s credit. However, if you cannot qualify for a parent PLUS loan individually, adding a trustworthy endorser could help.

If you are denied, submit an appeal

If you meet all other loan requirements and can prove that your adverse credit history is due to extenuating circumstances, you may appeal to the US Department of Education. Although approval is not guaranteed, a call may increase your chances of qualifying.

For example, if you were denied a PLUS loan because you previously had an account in collections, you might win an appeal if you can prove that the account has since been paid off or that you have consolidated the debt and have access to debt. a recent file over-time payments. See more examples of how you might appeal an adverse credit history on the Federal student aid website.

If you end up getting an endorser or successfully submitting an appeal, you will need to complete a 30-minute online credit counseling session before the funds are disbursed.

Look at private student loans Next

If you don’t qualify for PLUS parent loans, consider private student loans for parents with bad credit. Private student loans are administered by institutions like banks, credit unions, and online lenders. Some private lenders offer parent-specific student loans, but in other cases, private student loans can be taken out by the student and co-signed by a parent or another adult.

For private lenders, a strong credit score and track record are an important part of eligibility. If you apply with poor credit, you may not qualify, or if you do, you will likely face higher interest rates than with federal student loans. If you don’t have enough credit to qualify, you can add a co-signer with good credit to your application.

When shopping for private student loans, it’s a good idea to compare lenders and their requirements. Many lenders allow you to prequalify before you complete a full application, so you can see if you might qualify for a loan before committing to anything. Since there are no universal standards among private lenders, you may need to go through this step with multiple companies to find a loan you qualify for.

4 alternatives to student loans for parents with bad credit

Having bad credit makes it harder to borrow money. If you’re trying to get your child’s education loans and you’re having trouble, there are some things you can do.

1. Look for grants and scholarships

Grants and scholarships – free money that does not need to be repaid – must be used before taking out any type of loan. The more free money your child gets, the less they will need to borrow (and repay).

There are many scholarship and grant databases that house billions of dollars in awards. Look for different types of awards based on race, gender, socioeconomic background, field of study, and even general interests of the student.

2. Help your child apply for loans

College students typically have more borrowing options for college than their parents — and many student loan products are designed for borrowers with little or no credit. This means it’s probably easier and cheaper for your child to borrow money for their own education.

For example, most undergraduates are eligible for subsidized and unsubsidized federal student loans, which have a fixed interest rate of 3.73% for the 2021-22 school year. These loans require no credit checks, only come into repayment after the student has left school, and have flexible repayment plans that can be based on the student’s post-graduate income.

If you think you’ll have trouble qualifying for a parent student loan, help your child research the options available to them. There will likely be more loan opportunities to choose from at lower rates than a parent with poor credit could find.

3. Work to increase your credit score

If you are determined to borrow parent student loans, build your credit as much as possible before applying. You can do things like:

  • Examine your credit report for errors. Review your credit report and verify its accuracy. If you find errors that hurt your score, you can submit a dispute with the relevant credit bureau. The office will investigate the complaint to determine if it is an error, and if so, the offending mark will be removed.
  • Repay old debts. If you are behind on payments, consider paying off all old debts you can. Whether it’s a hospital bill or an overdue credit card, it’s a way to boost your score. You may find that lenders are willing to work with you on a new payment plan if it means they get some money back.
  • Reduce your use of credit. Your credit utilization, also known as your debt-to-equity ratio, is an important part of your credit score. In short, it measures how much of your total credit limit you spend each month. If possible, keep your credit utilization below 30% to help your credit.

4. Consider other ways to help

If you’re struggling to find ways to pay for your child’s school, see if you can help in other ways. For example, you can reduce tuition costs by allowing your child to live at home while in school. If you think your child should be eligible for more financial help, you can help them appeal for more money.

If you have exhausted your other funding options, consider asking family or close friends to contribute towards tuition as a last resort. While it’s not an option for everyone, lean on your network if you’re lucky enough to have a family with means.

Before money changes hands, establish a written agreement (and repayment plan, if necessary) that works for everyone. This can help ensure everyone understands expectations and reduce misunderstandings later.

Student loans are an option, but not your only choice

Although loans are helpful for many students, other funding opportunities should first be fully exploited. Parents can help their children get all the free money they can by submitting the Free Application for Federal Student Aid (FAFSA) as soon as possible and applying for individual grants and scholarships.

Once this funding is exhausted, consider federal student loans to cover additional costs. If you still need more money after that, consider private student loans as a last option.

Compare student loan rates in minutes

Compare rates from participating lenders via Credible.com

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