Wednesday, July 18, 2007
When finding a loan.
When you are in need of a loan. Make sure the interest rates are good. Make sure you will be able to pay monthly payments. You do not want to get behind or possibly loose credit point.
Need A Cash Advance or Payday Loan Online?
Then get a new cash advance loan online from Check Into Cash before August 1, 2007 and you get a $50 VISA gift card.
So Will I Be Able To Get A Loan?
The good news is that there are many lenders who specialise in working with people who have a bad credit history. You will likely pay a higher interest rate than someone with a good credit history, and the amount available for you to borrow will probably be lower. However, once you’ve secured a bad credit loan, over time you can improve your credit score by showing regular, responsible repayment of the loan.
How Did I Get A Bad Credit History?
Anytime you are late making a payment,
miss a payment,
default on a debt,
or fail to otherwise fulfil a financial contract or commitment, this information is reported to credit reference agencies.
The more of these reports the agencies receive, the lower your credit score and the harder it is to find a loan. Other information that can cause a red flag in your credit report includes frequent changes of job or address, or one or more County Court Judgements against you.
Factors that make you a Bad Credit Applicant
miss a payment,
default on a debt,
or fail to otherwise fulfil a financial contract or commitment, this information is reported to credit reference agencies.
The more of these reports the agencies receive, the lower your credit score and the harder it is to find a loan. Other information that can cause a red flag in your credit report includes frequent changes of job or address, or one or more County Court Judgements against you.
Factors that make you a Bad Credit Applicant
What Is A Credit History?
Your credit history is a record of all past financial commitments and your pattern of repayment, as well as an overall look at your total debt load. Credit reference agencies use this information to assess your credit worthiness and assign a credit score. Lenders then use the credit score as a factor in deciding whether or not to underwrite your loan.
Need Help? Don’t Despair
Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Some may look only at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.
If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.
Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.
If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy laws: As of October 17, 2005, you must get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees.
Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
For more information, see Knee Deep in Debt and Fiscal Fitness: Choosing a Credit Counselor at ftc.gov/bcp/conline/edcams/credit/ .
If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.
Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.
If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy laws: As of October 17, 2005, you must get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees.
Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
For more information, see Knee Deep in Debt and Fiscal Fitness: Choosing a Credit Counselor at ftc.gov/bcp/conline/edcams/credit/ .
Bad Credit Loans
Bad Credit Loans
If you have a bad credit history you have probably found it’s hard to get a loan, in fact the only type that you may be able to get is a bad credit loan. Whether it’s for a home, a car, a personal unsecured or secured loan, people with bad credit typically have a harder time finding a lender and end up paying higher interest rates.
If you have a bad credit history you have probably found it’s hard to get a loan, in fact the only type that you may be able to get is a bad credit loan. Whether it’s for a home, a car, a personal unsecured or secured loan, people with bad credit typically have a harder time finding a lender and end up paying higher interest rates.
How Do I Find The Bad Credit Loan That’s Right For Me?
Do some research before you submit any loan applications. Check out several lenders, ask about their interest rates and loan terms, and find out more about their loan process. Be careful, though, not to submit a flurry of applications in a short period of time. Activity such as this can actually make your credit rating worse, so make sure you learn as much as possible about each lender’s program before deciding whether or not to complete an application. You can also work with an independent loan broker to help determine which lenders have programs that fit your individual circumstances.
What Types Of Bad Credit Loans Are Available?
Bad credit loans will fall into one of two categories – secured or unsecured.
Secured loans involve using something of significant value as collateral for the loan, usually your house. The lender will determine the loan amount and interest rate based factors such as your credit score, the value of your home, and your overall debt load. Each lender weights these factors differently and some consider other factors as well, so it’s important check with each lender about their specific criteria.
Unsecured bad credit loans, however, are among the most difficult to get. They represent a very high level of risk for the lender, so they are naturally much more cautious about underwriting this type of loan. If you need an unsecured loan, though, don’t lose heart because while it is difficult to obtain one, it is possible. Look for lenders who specialize in this type of loan; they are sometimes referred to as sub-prime lenders.
Secured loans involve using something of significant value as collateral for the loan, usually your house. The lender will determine the loan amount and interest rate based factors such as your credit score, the value of your home, and your overall debt load. Each lender weights these factors differently and some consider other factors as well, so it’s important check with each lender about their specific criteria.
Unsecured bad credit loans, however, are among the most difficult to get. They represent a very high level of risk for the lender, so they are naturally much more cautious about underwriting this type of loan. If you need an unsecured loan, though, don’t lose heart because while it is difficult to obtain one, it is possible. Look for lenders who specialize in this type of loan; they are sometimes referred to as sub-prime lenders.
So Will I Be Able To Get A Loan?
The good news is that there are many lenders who specialise in working with people who have a bad credit history. You will likely pay a higher interest rate than someone with a good credit history, and the amount available for you to borrow will probably be lower. However, once you’ve secured a bad credit loan, over time you can improve your credit score by showing regular, responsible repayment of the loan.
What Is A Credit History?
Your credit history is a record of all past financial commitments and your pattern of repayment, as well as an overall look at your total debt load. Credit reference agencies use this information to assess your credit worthiness and assign a credit score. Lenders then use the credit score as a factor in deciding whether or not to underwrite your loan.
How Did I Get A Bad Credit History?
Anytime you are late making a payment,
miss a payment,
default on a debt,
or fail to otherwise fulfil a financial contract or commitment, this information is reported to credit reference agencies.
The more of these reports the agencies receive, the lower your credit score and the harder it is to find a loan. Other information that can cause a red flag in your credit report includes frequent changes of job or address, or one or more County Court Judgements against you.
Factors that make you a Bad Credit Applicant
What can I do to improve my credit score?
How Did I Get A Bad Credit History?
Anytime you are late making a payment,
miss a payment,
default on a debt,
or fail to otherwise fulfil a financial contract or commitment, this information is reported to credit reference agencies.
The more of these reports the agencies receive, the lower your credit score and the harder it is to find a loan. Other information that can cause a red flag in your credit report includes frequent changes of job or address, or one or more County Court Judgements against you.
Factors that make you a Bad Credit Applicant
What can I do to improve my credit score?
Bad Credit Loans
If you have a bad credit history you have probably found it’s hard to get a loan, in fact the only type that you may be able to get is a bad credit loan. Whether it’s for a home, a car, a personal unsecured or secured loan, people with bad credit typically have a harder time finding a lender and end up paying higher interest rates.
Student Loans
An education loan is a form of financial aid that must be repaid, with interest. (Scholarships, on the other hand, do not have to be repaid.)
Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment.
Federal law sets the maximum interest rates and fees that lenders may charge for federally-guaranteed loans. Nothing prevents a lender from charging lower fees. Many lenders offer a variety of student loan discounts to attract borrowers.
Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.) For federal student loan debt (excluding PLUS Loans), the figures are 62.2% and $17,036. Average cumulative debt increases by about 3% or approximately $550 a year. When one includes PLUS loans in the total, the average cumulative debt incurred is $21,899. (Approximately one in ten (10.8%) parents borrow PLUS loans for their children's college education, with a cumulative PLUS loan debt of $16,317.)
The following table shows the percentage of students borrowing and average cumulative debt per borrower (excluding PLUS Loans) according to type of educational institution.
Undergraduate Education Debt
Institution Level & Control Percent Borrowing Cumulative Debt
Overall Total (4, 2 and < 2 year) 55.5% $15,766
4-year Total 65.6% $19,202
4-year Public 61.7% $17,277
4-year Private Non-Profit 72.8% $21,957
4-year Private For-Profit 87.3% $28,138
2-year Total 37.4% $9,897
2-year Public 33.2% $9,387
2-year Private Non-Profit 69.1% $12,326
2-year Private For-Profit 90.0% $12,107
< 2-year Total 67.1% $7,271
< 2-year Public 34.0% $7,243
< 2-year Private Non-Profit 26.5% $4,854
< 2-year Private For-Profit 77.3% $7,311
Graduate and professional students borrow even more, with the additional debt for a graduate degree ranging from $27,000 to $114,000. The following table shows the percentage borrowing and average amount of cumulative debt per borrower among graduating students according to degree program. It provides the amounts borrowed for just the graduate education and also the combined totals for undergraduate and graduate education.
Graduate Education Debt All Education Debt
(Grad & Undergrad)
Graduate & Professional Degree Programs Percent Borrowing Cumulative Debt Percent Borrowing Cumulative Debt
Total 60.1% $37,067 70.1% $42,406
Master's Degree 58.4% $26,895 69.3% $32,858
Doctoral Degree 51.0% $49,007 58.3% $53,405
Professional Degree 86.5% $82,688 88.4% $93,134
MBA 53.0% $35,525 63.6% $41,687
MSW 76.5% $27,136 81.0% $37,029
PhD 40.0% $36,917 46.8% $41,540
EdD 53.4% $49,050 65.7% $47,725
Law (LLB or JD) 87.7% $70,933 89.7% $80,754
Medicine 95.0% $113,661 95.0% $125,819
Grants, scholarships, work-study and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loans. The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education. You can also deduct up to $2,500 in student loan interest even if you don't itemize deductions on your income tax return.
The interest rate on the Stafford Loan for new loans first disbursed after July 1, 2006 is a fixed rate of 6.8%. The same rate applies to the in-school, grace and repayment periods. The interest rate on new PLUS Loans first disbursed after July 1, 2006 is a fixed rate of 8.5%.
The interest rates on existing variable rate Stafford and PLUS loans will continue to change annually on July 1, based on the last 91-day T-bill auction in May. The current interest rates on the Stafford Loan are 6.54% during the in-school and grace periods and 7.14% during the repayment period. The current interest rate on the PLUS Loan is 7.94%. These rates are expected to increase by 0.08% on July 1, 2007 to 6.62%, 7.22% and 8.02%. FinAid recommends that students who have not yet consolidated their variable rate loans do so during the six month grace period after graduation in order to lock in the in-school rate. Interest rates are unlikely to drop enough over the next year or so to make it worthwhile to wait to consolidate. (Generally, it is best to consolidate your loans at least a month before the deadline, to give the lenders time to process the paperwork.)
Many student loan providers offer low cost government and private loans with consistently high quality servicing and flexible repayment terms. Citibank Student Loans is one of these lenders. FinAid maintains a list of education lenders, guarantee agencies, servicers and secondary markets who offer federal and private student loans, as well as advice on preferred lender lists and choosing a lender and tips on identifying the lenders that currently hold or service your loans.
Loan forgiveness programs (in which the borrower's loans are paid off in exchange for volunteer work or military service) offer an option for easy repayment. If you are having difficulty repaying your education loans, see Defaulting on Student Loans before you decide to skip a payment. It offers you some alternatives. Loan Cancellation and Discharge Forms can be found on the US Department of Education web site.
Also, FinAid provides numerous calculators that can help you better understand your borrowing options. The loan calculators offer estimates of monthly loan payments, estimates of the amount of debt you can afford to repay, an analysis of the cost of capitalizing the interest and tools for comparing loan costs.
Some students, because they do not have prior experience with debt and loan amortization, do not appreciate how much their loans will cost them. FinAid provides some tips concerning calculating the cost of interest.
Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment.
Federal law sets the maximum interest rates and fees that lenders may charge for federally-guaranteed loans. Nothing prevents a lender from charging lower fees. Many lenders offer a variety of student loan discounts to attract borrowers.
Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.) For federal student loan debt (excluding PLUS Loans), the figures are 62.2% and $17,036. Average cumulative debt increases by about 3% or approximately $550 a year. When one includes PLUS loans in the total, the average cumulative debt incurred is $21,899. (Approximately one in ten (10.8%) parents borrow PLUS loans for their children's college education, with a cumulative PLUS loan debt of $16,317.)
The following table shows the percentage of students borrowing and average cumulative debt per borrower (excluding PLUS Loans) according to type of educational institution.
Undergraduate Education Debt
Institution Level & Control Percent Borrowing Cumulative Debt
Overall Total (4, 2 and < 2 year) 55.5% $15,766
4-year Total 65.6% $19,202
4-year Public 61.7% $17,277
4-year Private Non-Profit 72.8% $21,957
4-year Private For-Profit 87.3% $28,138
2-year Total 37.4% $9,897
2-year Public 33.2% $9,387
2-year Private Non-Profit 69.1% $12,326
2-year Private For-Profit 90.0% $12,107
< 2-year Total 67.1% $7,271
< 2-year Public 34.0% $7,243
< 2-year Private Non-Profit 26.5% $4,854
< 2-year Private For-Profit 77.3% $7,311
Graduate and professional students borrow even more, with the additional debt for a graduate degree ranging from $27,000 to $114,000. The following table shows the percentage borrowing and average amount of cumulative debt per borrower among graduating students according to degree program. It provides the amounts borrowed for just the graduate education and also the combined totals for undergraduate and graduate education.
Graduate Education Debt All Education Debt
(Grad & Undergrad)
Graduate & Professional Degree Programs Percent Borrowing Cumulative Debt Percent Borrowing Cumulative Debt
Total 60.1% $37,067 70.1% $42,406
Master's Degree 58.4% $26,895 69.3% $32,858
Doctoral Degree 51.0% $49,007 58.3% $53,405
Professional Degree 86.5% $82,688 88.4% $93,134
MBA 53.0% $35,525 63.6% $41,687
MSW 76.5% $27,136 81.0% $37,029
PhD 40.0% $36,917 46.8% $41,540
EdD 53.4% $49,050 65.7% $47,725
Law (LLB or JD) 87.7% $70,933 89.7% $80,754
Medicine 95.0% $113,661 95.0% $125,819
Grants, scholarships, work-study and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loans. The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education. You can also deduct up to $2,500 in student loan interest even if you don't itemize deductions on your income tax return.
The interest rate on the Stafford Loan for new loans first disbursed after July 1, 2006 is a fixed rate of 6.8%. The same rate applies to the in-school, grace and repayment periods. The interest rate on new PLUS Loans first disbursed after July 1, 2006 is a fixed rate of 8.5%.
The interest rates on existing variable rate Stafford and PLUS loans will continue to change annually on July 1, based on the last 91-day T-bill auction in May. The current interest rates on the Stafford Loan are 6.54% during the in-school and grace periods and 7.14% during the repayment period. The current interest rate on the PLUS Loan is 7.94%. These rates are expected to increase by 0.08% on July 1, 2007 to 6.62%, 7.22% and 8.02%. FinAid recommends that students who have not yet consolidated their variable rate loans do so during the six month grace period after graduation in order to lock in the in-school rate. Interest rates are unlikely to drop enough over the next year or so to make it worthwhile to wait to consolidate. (Generally, it is best to consolidate your loans at least a month before the deadline, to give the lenders time to process the paperwork.)
Many student loan providers offer low cost government and private loans with consistently high quality servicing and flexible repayment terms. Citibank Student Loans is one of these lenders. FinAid maintains a list of education lenders, guarantee agencies, servicers and secondary markets who offer federal and private student loans, as well as advice on preferred lender lists and choosing a lender and tips on identifying the lenders that currently hold or service your loans.
Loan forgiveness programs (in which the borrower's loans are paid off in exchange for volunteer work or military service) offer an option for easy repayment. If you are having difficulty repaying your education loans, see Defaulting on Student Loans before you decide to skip a payment. It offers you some alternatives. Loan Cancellation and Discharge Forms can be found on the US Department of Education web site.
Also, FinAid provides numerous calculators that can help you better understand your borrowing options. The loan calculators offer estimates of monthly loan payments, estimates of the amount of debt you can afford to repay, an analysis of the cost of capitalizing the interest and tools for comparing loan costs.
Some students, because they do not have prior experience with debt and loan amortization, do not appreciate how much their loans will cost them. FinAid provides some tips concerning calculating the cost of interest.
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