credit score – 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 score – 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.

]]>
Latest Updates on Auto Loan Interest Rate Increase https://johnhesch.com/latest-updates-on-auto-loan-interest-rate-increase/ Fri, 11 Mar 2022 22:15:26 +0000 https://johnhesch.com/latest-updates-on-auto-loan-interest-rate-increase/ Like many Americans, you might wonder what’s going on in the world at the gas pump, the grocery store, and the parking lot — all places where inflation is evident. Right now we’re seeing a 40-year high rate of inflation that’s really hitting Americans in their pocketbooks. A rise in interest rates could help deflate […]]]>

Like many Americans, you might wonder what’s going on in the world at the gas pump, the grocery store, and the parking lot — all places where inflation is evident. Right now we’re seeing a 40-year high rate of inflation that’s really hitting Americans in their pocketbooks. A rise in interest rates could help deflate this situation, but how this affects you in 2022? We’ll take a look.

How do interest rates and inflation affect you? The consumer price index (CPI) is a measure of price changes over time. In other words, how much consumers spend on average on a number of goods and services like food, energy and gasoline. According to the New York Times, the CPI rose 7.9% in February. This is the fastest rise in inflation since 1982.

For you, that means you’re seeing prices go up on everyday items, and you’re seeing them go up quickly. Demand for these items is on the rise, impacted by tight supply chains and global events. But prices remain high when people are willing to pay them.

This is where the Federal Reserve comes in. A rise in interest rates would combat the accelerating inflation that is spreading nationwide. The original plan was to be a series of rate hikes this year, but the Fed will proceed with caution in light of recent global events.

According to ABC News, Federal Reserve Chairman Jerome Powell said he supported a traditional quarter-point increase in the benchmark short-term interest rate. This increase is expected to come later this month. In light of the four-decade high rate of inflation, Powell did not close the door on the possibility of a bigger rate hike if needed. Other Fed officials signaled support for similar small rate hikes, while a few indicated support for a larger increase.

When the federal benchmark rate goes up, it means the rate at which banks lend money to each other goes up, and everyone will see an increase in the interest rate you pay on things like mortgages and car loans. With more expensive borrowing, consumers and businesses are slowing down investments that help slow the economy. This causes demand to fall and prices to follow. It could also help alleviate supply chain issues that help keep prices high.

Will a rise in interest rates affect you? This increase is likely to impact consumers when it comes to auto loans, but it remains to be seen how much of this change is really felt in the auto market. If you’re already paying high interest due to your situation, you might not feel the pinch as much as others. And, the impact may take a little while to be felt.

For car buyers, that means being diligent about finding the best deals. Make sure you know where your credit stands and what types of interest rates you are likely to qualify for. Remember that tight inventory also leads to higher prices, so you may need to shop around at multiple dealerships to find the best deal for your situation. If you limit your search to a two-week window, called rate shopping, all of the applications you make for the same type of loan only count against your credit score once, instead of having multiple applications for credit in your reports over time.

The current federal funds rate is 0.25%, lower than it normally holds. As the Fed’s interest rate hikes begin to impact the market, we’ll know more about the direct impact on car buyers. These will be the first rate hikes since 2018, and we’ll keep you posted on how rising federal interest rates may impact you. Look for the latest updates and issues here when they become available.

]]>
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.

]]>
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.

]]>
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.

]]>
What is the maximum interest rate an approved lender can legally charge?, Money News https://johnhesch.com/what-is-the-maximum-interest-rate-an-approved-lender-can-legally-charge-money-news/ Sun, 27 Feb 2022 09:00:00 +0000 https://johnhesch.com/what-is-the-maximum-interest-rate-an-approved-lender-can-legally-charge-money-news/ When looking for the best personal loan, licensed lenders are a good alternative to banks. Fast, easy and convenient, approved lenders speed up the process, turning what could take weeks into days. Depending on the type of personal loan, approved lenders are more lenient with their money, allowing them to lend to more people. This […]]]>

When looking for the best personal loan, licensed lenders are a good alternative to banks. Fast, easy and convenient, approved lenders speed up the process, turning what could take weeks into days.

Depending on the type of personal loan, approved lenders are more lenient with their money, allowing them to lend to more people. This makes approved lenders faster and more ideal for smaller sums.

However, some might think that personal loans from approved lenders are not as legitimate. This mindset, while valid at times, unfortunately limits the personal loan options available.

This is not only detrimental if you need a personal loan quickly, but it is necessary if you have a lower credit score and are unable to get a personal loan from the bank.

To better understand approved lenders on a balanced scale, here are four common myths you should avoid when considering borrowing from approved lenders.

4 myths you should avoid when considering a personal loan from an approved lender

PHOTO: Value Champion

Myth 1: All loan sharks are loan sharks

Loan sharks (or “Oh long”) are unlicensed lenders who use illegal tactics to promote, encourage and lend personal loans. Often they go through unsolicited telemarketing text messages and messages regarding their personal loans.

In case of default, they charge exorbitant interest rates and resort to unregulated harassing methods to drive out debts. These tactics often harm neighborhood communities and can lead to unwarranted violence in order to get their money back.

These are the loan sharks we should all avoid. Unfortunately, many approved lenders get it wrong.

Licensed lenders, on the other hand, can be recognized by their license number. These figures are administered by the Department of Justice and can be found on their comprehensive list of approved lenders on their website.

To compare approved lenders and their personal loan rates based on your needs, Lendela is a good option.

Lendela allows users to compare different personalized personal loan offers based on their needs and credit history, so one can be sure that they are getting a legal personal loan from approved lenders that suits their budget. and their credibility.

Myth 2: You can’t take out a personal loan with a low credit score

The truth is you can. Approved lenders are open to providing personal loans to people with low credit ratings, provided they have clear evidence of a steady stream of income from employment to repay the loan. They will not charge any excess interest rate and may sometimes provide debt consolidation services.

In fact, taking out a personal loan from an approved lender can help improve your credit score. Since the credit score is usually difficult to improve, this is a good opportunity to move it to a better place.

Myth 3: Secured personal loans from approved lenders are better than unsecured loans

Backed by collateral, secured personal loans are generally preferred for low interest rates. It allows borrowers to borrow a larger amount from an approved lender and allows them to spread their payments over a longer period. Examples include mortgages and auto loans.

Unsecured personal loans (for example, student loans) have no collateral. Instead, they are granted by an approved lender based on the reliability of the borrower.

However, that means it comes without the benefits of a secured personal loan – higher interest rates while borrowing a lower amount. They also need to repay their loan as soon as possible.

Although secured loans may seem favorable due to their advantages, approved lenders would need more time to process, evaluate and approve the collateral. This makes the borrowing process much slower, which may not be favorable for borrowers who are in dire need of money.

To choose the best option, one must consider the reason for the loan. If you are a short term borrower, select an unsecured loan. However, if you are able to wait through the entire collateral approval process, secured personal loans might be your best bet.

Myth 4: Approved lenders have higher interest rates than banks

Approved lenders are actually tightly regulated and they are not able to charge an interest rate higher than that stipulated by the Department of Justice.

In fact, the regulations facing banks are slightly more lenient. Although their interest rates are lower, there is no law preventing them from charging higher interest rates. As a result, some banks charge much more than all approved lenders.

So what is the maximum interest rate an approved lender can legally charge?

Lend money
PHOTO: Value Champion

According to the Department of Justice, approved lenders can legally charge late payment interest of up to 4% per month. This limit is effective whether it is a secured or unsecured personal loan and the income the borrower earns.

Interest can only be charged on the remaining money that has not been paid. This means that if Person A took out a $10,000 personal loan and repaid $8,000 on time, only the remaining $2,000 should be charged for late interest.

Remaining amount that has not been paid:

$10,000 – $8,000 = S$2,000

Therefore, $2,000 is payable in interest

Interest may also be charged only for amounts that have been paid late. For example, Person B took out a personal loan of $10,000 repaid in installments of $2,000. He did not pay his first installment. This means that only the $2,000 of this late payment is chargeable to late payment interest.

Other fees approved lenders may charge according to the Department of Justice include:

  • A fee not exceeding $60 for each month of late repayment
  • A commission not exceeding 10% of the principal of the loan when a loan is granted
  • Court-ordered legal costs for a successful claim by the lender to recover the loan.

This article was first published in ValueChampion.

]]>
Viva Loans UK Review – Easy Loan When You Have Bad Credit https://johnhesch.com/viva-loans-uk-review-easy-loan-when-you-have-bad-credit/ Thu, 24 Feb 2022 07:17:08 +0000 https://johnhesch.com/viva-loans-uk-review-easy-loan-when-you-have-bad-credit/ Viva Loans is a loan brokerage platform that has partnered with many direct lenders who provide payday loans ranging from £300 to £2000. This lending platform is renowned for matching cash-strapped borrowers with reliable direct lenders. They also have lenient loan qualification requirements. In this article, we’ll explain everything you need to know about Viva […]]]>

Viva Loans is a loan brokerage platform that has partnered with many direct lenders who provide payday loans ranging from £300 to £2000. This lending platform is renowned for matching cash-strapped borrowers with reliable direct lenders.

They also have lenient loan qualification requirements.

In this article, we’ll explain everything you need to know about Viva Loans: the types of loans they offer, their rates, and the pros and cons.

Features of Viva Loans

1. Several loan options

Viva Loans offers a variety of loan options. It would help if you did your due diligence before settling for an alternative.

Determine how much loan you need urgently, how much can you repay, and how quickly can you repay it. Different loan options come with different terms and conditions. For example, you may receive an instant loan but have a high APR.

Here are the common loans from Viva Loans:

  1. Instant Payday Loans Bad Credit
  2. Quick cash loans no credit check
  3. Quick Payday Loans Unemployed
  4. Fast payday loans on social assistance
  5. Loans on SSI (Supplemental Security Income)
  6. Payday Loans No Phone Calls
  7. Loans with debit card
  8. Payday loans with a prepaid card
  9. Personal loans with current account

2. Flexible and Affordable Loan Amounts

Avoid loan amounts that you cannot repay on time. Viva loans are available in different amounts to make it more convenient for individuals, ranging from £100 to £5,000. This loan amount varies from one direct lender to another.

In addition, Viva Loans generally advises its clients to withdraw only what they need, even if they are entitled to higher amounts.

3. Frequency of repayments

Discuss your repayment schedule with your lender before taking out a loan.

If you are looking for a considerable loan amount, you can apply for more months. For small amounts, you can choose a one-time payment or ask for a few weeks to settle.

Viva Loans lenders offer different payment schedules; bi-weekly, weekly and monthly. You can choose the option that suits your income.

4. Interest

While most payday lenders have been criticized for overcharging their loan services, some direct lenders like Viva Loans charge affordable rates.

Typically, Viva Loans lenders charge between 5.99% and 35.99% for their loans. Always inquire about additional charges such as origin and late or early penalties.

5. Loans for a range of credit profiles

Viva Loans has lined up many loan options and their qualification that you can choose from on their website. This increases your chances of qualifying for at least one of their loan options, regardless of your credit profile.

However, you should be very enthusiastic when dealing with payday lenders, especially if your credit history is terrible.

Most lenders will take advantage of your desperate situation to offer you loans that will send you into an endless cycle of debt. Therefore, you must take the time to read and understand the terms and conditions of the loan before signing it.

Loan assessment process

After applying for your loan, it’s time to wait for a response from the lender.

Viva Loans will review your loan application to assess your ID card, social security number, housing details, driver’s license, amount of loan you want, employment and income. Some direct lenders can also pull your credit history and residence location.

Note that by submitting your loan application, you will be giving Viva Loans the power to share your information with their network of direct lenders.

Typically, the approval process for Viva Loans takes less than ten minutes. For example, payday loans uk take less than three minutes to apply and about five minutes to be approved.

Once approved, they match you with a direct lender to meet your emergency needs. The direct lender will ask you for more details.

If they approve your documents, they will give you their terms and conditions for the loan. The amount of your loan will be paid into your account on the same day of the request.

Variety of uses and lengthy refund terms

Viva Loans does not limit its clients to the use of their loans. They can use it to consolidate other debts, cover medical bills, renovate homes, repair cars, and more.

However, Viva Loans advises its clients to only take out the loans for the right reasons. It would help if you borrowed only to cover an emergency or to top up a deferred paycheck.

Benefits

  • Same day payments
  • Loans of various amounts, from £200 to £2,000
  • Their loan application and approval process is fast
  • Unemployed people can also apply
  • No credit check

The inconvenients

  • Viva loans come with high rates
  • There are hidden fees

How to apply with Viva Loan

Follow the steps below to apply for a Viva Loan:

Step 1: Access the Viva Loans website

Step 2: Complete the online application form

Step 3: Sign the loan agreement form

Step 3: Get your approval

Step 4: Receive your loan in your bank account

You can also contact Reform Debt Solutions if you have any questions about Viva Loans. They offer free consultation services to everyone British.

Conclusion

Most payday lenders take advantage of desperate customers and can exploit them, leaving them in an endless cycle of debt.

Viva Loans can be useful in an emergency, especially if your credit score is low and you cannot get a loan from other safe alternatives.

However, we recommend that you conduct intensive research to determine your best payday loan alternatives before settling on one.

]]>
Pleasant Grove UT Used Cars – BHPH Launch for Poor/Bad Credit Services https://johnhesch.com/pleasant-grove-ut-used-cars-bhph-launch-for-poor-bad-credit-services/ Tue, 15 Feb 2022 09:06:04 +0000 https://johnhesch.com/pleasant-grove-ut-used-cars-bhph-launch-for-poor-bad-credit-services/ Rocky Mountain Motor Cars now offers an updated line of options for customers with weak or bad credit. The company sells used vehicles and helps every customer get the car they need with a payment plan they can afford. Pleasant Grove, United States – February 15, 2022 — This ad lets individuals buy vehicles they […]]]>

Rocky Mountain Motor Cars now offers an updated line of options for customers with weak or bad credit. The company sells used vehicles and helps every customer get the car they need with a payment plan they can afford.

This ad lets individuals buy vehicles they love with payment plans they can afford. Rocky Mountain Motor Cars offers a wide selection of high quality vehicles, all of which have passed a thorough inspection.

More information can be found at https://www.rockymountainmotorcars.com

The announcement comes as more and more Americans are buying used cars in recent years. Used vehicles allow customers to afford better cars, get lower insurance and registration costs, and experience less depreciation. With diligent inspections and a two-year, 24,000-mile warranty, Rocky Mountain Motor Cars offers the benefits of buying used vehicles while delivering a high level of reliability.

Rocky Mountain Motor Cars has a 99% Approval Guarantee for people who are currently employed. The company looks at the customer’s current situation and expected future to help determine financing, allowing customers to build better credit and afford better vehicles.

Customers can get pre-qualified instantly. Unlike other dealerships, there is no SSN or DOB required for pre-qualification, and it does not affect the customer’s credit score. More details can be found at https://www.rockymountainmotorcars.com/buy-here-pay-here-pleasant-grove-utah Where https://goo.gl/maps/X2rQ8a9QLzASWNTM7

The dealership has a wide variety of quality used vehicles from different manufacturers. They stock trucks, vans, SUVs, sedans, family crossovers and more. With the expert advice available, customers can find a reliable car that meets their needs within their budget and benefit from a personalized payment plan, regardless of their credit score.

The company also has an on-site service center with experienced mechanics, enabling customers to operate their vehicles safely and efficiently.

About Rocky Mountain Motor Cars

Rocky Mountain Motor Cars is a used vehicle dealership based in Pleasant Grove, Utah. They have 15 years of experience selling and financing cars, with a focus on accessibility for people with damaged credit.

Satisfied customer: “Honestly, I thought I couldn’t buy a car with my poor credit. But when we needed a reliable vehicle, we could get it from Rocky Mountain Motor Cars. Everyone has been a great help, and my family can do more now with a reliable car.

Interested persons can find more information at https://www.rockymountainmotorcars.com/pleasant-grove-car-dealers-with-in-house-financing

Contact information:
Name: Ryan Pianou
E-mail: Send an email
Organization: Rocky Mountain Motor Cars
Address: 767 S State Rd, Pleasant Grove, Utah 84062, USA
Phone: +1-801-785-1058
Website: https://www.rockymountainmotorcars.com

Build ID: 89063987

countex tracking

COMTEX_402428954/2773/2022-02-15T04:01:15

]]>
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.

]]>
Will rising interest rates impact VA loans for first-time buyers? https://johnhesch.com/will-rising-interest-rates-impact-va-loans-for-first-time-buyers/ Fri, 11 Feb 2022 19:11:29 +0000 https://johnhesch.com/will-rising-interest-rates-impact-va-loans-for-first-time-buyers/ The VA loan is an important financing tool for VA-eligible borrowers to realize their dream of home ownership. In 2021, one out of two VA borrowers was a first-time buyer (FTHB). Last year, mortgage interest rates hit record lows. VA FTHB’s average interest rate was 2.90% and FTHB VA’s quarterly purchase loan volume remained strong. […]]]>

The VA loan is an important financing tool for VA-eligible borrowers to realize their dream of home ownership. In 2021, one out of two VA borrowers was a first-time buyer (FTHB).

Last year, mortgage interest rates hit record lows. VA FTHB’s average interest rate was 2.90% and FTHB VA’s quarterly purchase loan volume remained strong. In Q3 2021, it hit an all-time high of over $19 billion for that quarter, up $174 million from Q3 2020. And since 2017, VA purchase loans have helped about 200,000 to 230,000 first-time buyers eligible for VA. per year become owners.

This translates to an average of $56 billion in mortgages per year. In 2021, the VA FTHB segment reached approximately $69 billion, according to ginnie mae Loan-level disclosure data updated through January 2022, analyzed in GovLoansVision.

So what will 2022 look like for VA FTHB borrowers?

Our notebook calculations tell us that if interest rates continue to climb, we could see a lower FTHB VA volume of around $58 billion in 2022. On the other hand, if rates stabilize and remain between 3 and 3, we could see FTHB’s VA Buy Volume at $70 billion in 2022.

Figure 1: Forecast of FTHB VA buy origins

Source: Polygonal search. Provides are updated monthly.

What is the size of the addressable market for VA borrowers?

VA FTHB borrowers will come primarily from the U.S. veteran population (with the remainder being current service members and family members of eligible veterans). The U.S. veteran population stood at 18.44 million in 2020 with a median age of 68, according to the CPS Veteran Supplement (2020), analyzed by Polygon Research in CPSVision. To narrow down the size of the addressable market of VA borrowers, we study two sub-segments: veterans with service-related disabilities and veterans age 50 or younger.

In 2020, 3.82 million veterans had a service-related disability, making them eligible for a wide range of benefits, including waiving VA financing fees on a mortgage. Figure 2 presents a distribution of these veterans by age group and location.

Figure 2: Veterans with service-related disability by age group and geography (region)

Photo2

Source: Polygon Search, CPSVisionSupplement for veterans August 2020

Loan originators can learn about veterans with service-related disabilities in their communities and markets and seek opportunities to provide high-quality education and financing in an efficient and transparent manner.

Expanding the scope to include all veterans of a certain age bracket, regardless of disability status, we estimate that approximately 4 million veterans are under age 50, with a median household income of 91 $400 according to ASEC March 2021. (source: Polygon Research, CPSVision).

Figure 3: Breakdown of 50-year-old veteransOld or younger by state

Picture3-1

Source: Polygonal searchCPSVisionA SECOND March 2021

This statistical breakdown of veterans (age 50 or younger) by state in Figure 3 closely tracks the data on VA FTHB mortgage purchase applications found in Ginnie Mae’s loan-level disclosure data. The top five states for veterans who were first-time home buyers and used VA purchase loans to purchase homes were TX, FL, VA, CA, and NC – Figure 4.

Figure 4: Top 5 States by Number of VA FTHB Borrowers

Picture5

Source: Polygonal searchGovLoansVision updated via January 2022

What was the credit profile of first-time home buyers in Virginia?

In 2021, the average first-time VA home buyer had a credit score of 710, DTI of 40%, borrowed 99% LTV loans of $319,000 at 2.90% (see Figure 5 ). VA FTHB borrowers had a higher credit score and lower DTI than FHA FTHB borrowers. In the Vetted VA community, as a controlled sample, the average VA purchase borrower (both FTHB and repeat) had a credit score of 717 and a DTI of 40.7% and borrowed LTV loans 98% from $394,000 to 2.69%.

Figure 5: Origins of first-time home buyer purchases in 2021

Photo4

Source: Polygonal searchGovLoansVision, updated via January 2022

Given the good creditworthiness of VA borrowers, and in particular first-time home buyers, and given the size of the FTHB VA loan market – estimated at $58 billion to $70 billion – loan originators and businesses can view VA loans as a great business opportunity in 2022.

But with this opportunity comes great responsibility – to provide the best service to our active duty veterans and their spouses, and to protect them from abusive lending practices. Understanding the VA-eligible borrower and understanding the financing tools to meet their credit needs is not only an ethical thing to do, but also a necessary business skill to achieve scale and profitability.

Data: VA First-Time Home Buyer (FTHB) Borrower is the actual reported data found in Ginnie Mae loan-level disclosure datasets containing over 800 million rows and modeled in GovLoansVision by Polygon Research.

Veterans analysis is extracted from CPSVision, which includes CPS monthly data through December 2021, ASEC March 2021 and Veterans Supplement August 2020.

Statistical records of over 325 million people and over 127 million households. • Forecasts are updated monthly.

Nathan Knottingham is the COO of Vetted VA.

This column does not necessarily reflect the opinion of the editorial department of RealTrends and its owners.

To contact the author of this story:
Nathan Knottingham at [email protected]

To contact the editor responsible for this story:
Sarah Wheeler at [email protected]

]]>