Loans With Credit Challenges , Yes You Can

Unfortunately there are many people that have had their credit rating destroyed by the economic crisis that the world is in. That is forcing many to shop for bad credit loans and consequently having to pay exorbitant interest rates for the privilege of borrowing money. There are some financial institutions that would just as soon not deal with the clientele that have bad credit reports. However, there are some that specialize in providing loans and resources for those with less than perfect credit.

Ultimately, there is not a single best lending institution for bad credit loans. Fortunately there are many. Securing a loan with a lower credit score is really no different than if you had a high credit score. Sure their success rate is a little higher, but the process is essentially the same. You are going to apply for credit, you are going to provide information about your income, and you are to document your income. The biggest single factor in determining whether or not you qualify for a loan, whether that is a car loan, a personal loan, or a jumbo mortgage, is your ability to repay the loan and your willingness to do so. Nothing else really matters.

You may be required to provide documentation as to why you were late with payments. If you once had good credit and now it is deemed because of late payments, you are basically an explanation letter away from getting a loan that you need. Remember, you are not the only one with bad credit and needs a loan. It is safe to assume that that number of borrowers with bad credit is growing exponentially by the day.

Once you have secured your loan, and are able to make regular payments on it for an extended period of time, you can refinance loan with your new and improved credit score and lower your rate. No one plans to have bad credit. No one plans to lose his or her job. No one ever plans to have a catastrophic financial event in his or her family. But, the fact is, life often has different plans than those that we have laid out for ourselves. Do not despair; having bad credit is not a death sentence, contrary to what many believe. You are simply a loan application and process away from restoring your financial future.

Written by on October 15th, 2009 with no comments.
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Considerations For Refinancing Your Mortgage

When should you decide to refinance your home mortgage loan ? This is a difficult and important decision facing you and your home finances. Refinancing home mortgage loans is all about timing

Depending upon the amount of time you’ve lived in your home, and the amount of time you plan on staying there, you might want to consider a mortgage refinance if you are less than pleased with your current home mortgage. Generally, home owners should consider a refinance home mortgage when:

* you are planning on living in your same house for a significant amount of time (at least three years) and
* from refinancing your interest rate will drop at least 2%.

These qualifications are based on the costs associated with refinancing. Changing your home mortgage loans over to new terms means the same fees and payments of your additional loan. The costs of refinancing can be as low as zero and as much as 6% of your loan amount, and depending on the costs you will receive a different new rate.

Recent options for refinancing your home mortgage loans are low-cost and no-cost refinance loans. These loans eliminate the initial costs associated with transferring your hone loan from one program to another, meaning you will pay nothing and immediately see better rates. But as with every benefit there is an associate drawback, and in the case of zero-cost refinancing the drawback is higher rates than you might get if you paid the initial costs. Your higher rates are a means for the lender to make their money on the transfer regardless of the ‘zero-fee’ label, their fee simply comes over a longer period of time. Other refinancing options include zero or low fees at the outset but with the fees built into the interest rate. Both options come to the same result; although you pay no or low initial fees for refinancing your home loans, you end up paying for it in the guise of higher interest rates.

In order to secure the absolute lowest interest rates when you refinance your mortgage you will usually pay transfer fees, points, and other associate charges that will cost up to 6% of your total loan amount. This may seem like a lot of up front cash – you already went through this for your initial mortgage loans, but refinancing your home mortgage loans might be the single most important financial decision you will ever make. Todays rates are lower that ever, in some cases 4% or 5% less that when you took your initial home mortgage. The savings you will see when you refinance will take some time to generate, but once there will be more than substantial and a positive advancement for your home investment. Keeping aware of current mortgage rates and potential market trends will show you the best time for a mortgage refinance.

The golden rule of any investment is buy low, sell high, but with a mortgage refinance you can buy low, then buy again even lower, and always sell higher than when you bought. Thats why real estate is such a potent investment, and why refinancing your home loans must remain a consideration.

Written by on October 10th, 2009 with no comments.
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Back To Basics, Saving Money

We have been told to save money. Unfortunately many of us do not heed that advice. For many people saving money is difficult. Still for others it is impossible. So what if you decide to save money , but you don’t have any money to save? The fix for some could be as easy as purposing yourself to save money. Other may require more creative measures. Here are some steps that may help you. Many people found out the hard way the last two years or so how awful a rainy day can be. Protecting yourself from that dilemma is why you should be saving money with every paycheck

Paying Yourself First

Paying yourself first is a foundational principle to saving money. We all think about paying our mortgages, making that car payment or trying to pay down those dreaded credit cards. Before you write the first check or make the first online payment, pay yourself.  How much or where you put that money is negotiable. Paying yourself first is not. Making that payment in the form of an automatic deduction for a online savings account will make it easier.

Compartmentalize Your Money

As a youngster I was told to save money for different things I wanted to needed in brown paper sacks. Seems strange I know, but you would do worse that opening different accounts for the various expenses that you will incur. Examples include, car payments, insurance premiums, or perhaps a new set of kitchen appliances. The point is save the money by compartment or department and keep you hands off.

Protect Your Savings From Yourself

Once your compartments begin to accumulate resources the temptation to rob the bank will surface.  This is where you will need to have an accountability system built into you savings habits. Remember for the most part these are rainy day funds and unless sit is raining you would be better off to leave your accounts alone. Little things like requiring two signatures for withdrawal, or waiting a few days before the money is transferred to another account may ease the temptation.

Written by on September 14th, 2009 with no comments.
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Cutting Back And Save Money Without Sacrifice

When times are tough it is tempting to cut out all the little indulgences that make life a much more pleasant and less stressful thing.  You financial advisor certainly won’t tell you how to keep though little luxuries around, but you can.  There are a number of ways that you can cut back on expenses and keep life’s small pleasure.

1.    Take more bubble baths.  There is no better way to reduce stress than to lay back and relax in a tub of hot water.  If baths aren’t your way of relaxing, find something besides shopping.  It could be meditation, writing a story, starting a craft, anything that is low in cost and helps you take the stress out of the day.
2.    Hold a movie night with your friends and neighbors.  The movies are fun, but going to a theater can be very expensive, especially with a large family.  Instead rent a movie, pop some popcorn and invite over the neighbors.
3.    Instead of going to restaurants, learn how to cook.  Restaurants, even fast food, are expensive and that expense adds up over time.  If you make dinner at home, take the leftovers to work the next day.  But don’t go to the store while your hungry, its been proven to lead to more impulse buying.
4.    Bring the bar home.  A night out on the town could easily cost $50-$60, which is fine if you can afford it.  If you can’t, pick up a six pack and invite your friends to your living room bar instead.
5.    Decide where you really want to spend your money.  This can easily be done in just a few minutes.  Write down your major spending areas, food, loans, etc.  Then guess what percentage of your money is going to each.  Now make another list of what percentages you’d like to see for those categories.  If your ideal numbers are not matching the real numbers, adjust your spending a little.
6.    Turn down the heat by a few degrees and dress in layers.  Don’t make your living room the next Antarctica, but drop the temperature by about 3-6 degrees.  You’ll notice the difference but it won’t be too hard to adjust to and the savings will add up quickly.  This also applies with the air conditioning, but turn it up a few degrees when your home and turn it off when your not.

Written by on July 19th, 2009 with no comments.
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Saving On Auto Insurance Costs

Insurance costs continue to climb with no end in sight. Health insurance is essentially not affordable for more and more people everyday. Yet we continue to try and afford what we cannot in the name of security and protection of property and lives. Nothing wrong with that, but how can you save on premiums, when insurance companies have no interest in lowering the cost of their products. Lets look at auto  insurance and see what we can do.

You Got To Shop Around

For some reason many people get attached and really loyal to their car insurance companies. All it really takes for that loyalty to gain ground is one claim. I personally was paid off from a claim from State Farm 40 years ago and still have my car insurance with State Farm. The difference is I shop the policy around once a year and so should you. Changes made to driving habits, your driving record all can produce savings at premium time. It is possible you will stay with the same company, but a little competitive shopping never hurt anyone and you may be able to negotiate a deal with your present company.

Adjust Coverage’s

As each day passes your car like us gets a little older. Your car depreciates and the need for collision and comprehensive coverage’s should be considered. A good rule of thumb is when the car insurance premium exceeds 10% of the cars value, perhaps you should consider dropping it.

Raise Your Deductibles

Much has been said and much has been written about saving money by raising your deductibles. There is a reason for that. It works and saves you money. Changing your deductible from $200 to $500.00 may save you 30 % in that collision coverage. That better than 15 minutes at Geico.

Discounts, Are You Using Them?

All car insurance companies discount their products. Safety devices, clean driving records , multiple car discounts, and there are more. Take advantage of these savings. Your credit record can even save you money. If you are one of those with spotless credit make it pay for you.

All of these tips will require effort on your part to implement them. In the end it is worth the savings you will realize.

Written by on June 25th, 2009 with no comments.
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Debt Reduction vs. Credit Counseling

More consumers than ever are finding themselves in the unenviable position of no longer being able to make the payments on their obligations anymore.  In a world where credit offers are received daily, it’s easy to get overwhelmed and ruin your well-planned budget.  As an alternative to bankruptcy, more consumers are turning to debt reduction and credit counseling programs, but what are the differences?

1.    Most credit counseling programs insist on having all accounts closed before they will consider taking on a customer.  The few exceptions are accounts needed for business purposes or accounts with very small balances.  Debt reduction services usually allow most accounts to be kept open for future use.
2.    Credit counseling usually takes longer to complete than debt reduction.  The average time spent in credit counseling is five years.  While most debt reduction services can liquidate your debts in less than a year.
3.    The amount of money saved on reduced payments is another huge advantage of debt reduction programs.  Credit counseling requires the entire debt to be paid while debt reduction works with the creditors to reduce the actual amount owed.
4.    Credit scores can be affected in very different ways with either a debt reduction or a credit counseling service.  Credit counseling does what is called a “re-aging” of your accounts.  In other words once a few payments are made, the status on the credit report will be changed to show as current.  With debt reduction the status of the debt is kept the same.  If it’s past due at the beginning of the program, it will remain that way.  Once the program is complete it will reflect as “settled in full” but the past negative history will remain.
5.    The final biggest difference is the bargaining power the consumer gets.  Credit counseling offers a debt repayment plan but the creditor is free to reject it or accept it at their will.  With a debt reduction program, all creditors are contacted and informed of the hardship and the request that some form of agreement must be reached.

Written by on June 24th, 2009 with no comments.
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Exactly What Is Personal Finance

Silly question? Not really ,this is a term we all know and hear daily from the news.  We all know that it’s important to have a solid personal finance portfolio.  What does that mean?  Personal finance is broken down into four areas.  If you master these things, you will achieve financial freedom for the rest of your life.

First is security.  If you were severely injured tomorrow, would that be your financial ruin?  Would the bills expend your savings and leave you destitute?  To be financially secure you need to prepare for unlikely scenarios.  Make sure that your life insurance is up to date and exactly what you need.  Ensure that your savings are sufficient if disaster strikes.  You should have an emergency cash fund as well, so that something like this won’t immediately ruin you.

Next is stability.  This is as simple as living within your means.  Don’t mortgage a million dollar estate when you’re barely making above minimum wage.  Don’t rack up thousands of dollars in credit card debt if you can’t pay that off.  Have a budget and stick with it.  If you’re already in debt, lower your standard of living a tiny bit until you can get out from under it.

Third is growth.  After stability it’s time to build your funds.  Look into converting your savings account into a money market account and earn in interest.  Look at investing some extra cash in the stock market.  Don’t rely on your pension or Social Security to give you the retirement you want.

Finally, protect your assets.  Make sure that your possessions are insured.  Ensure that your funds are in secure account or not in any highly risky investments.  If you have over $250,000 in cash, talk to a banker about a trust account.  These are much more secure and are much easier when it comes to dispersing your assets when you pass on.  Protections and security are much the same and should be treated that way.  But with all of these things in place, your personal finance will be secure for decades to come.

Written by on June 18th, 2009 with no comments.
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Choosing a Financial Advisor

The  right financial advisor can work miracles on your portfolio and successfully plan your financial future.  But with so many to choose from, there are bound to be a few that aren’t worth it.  But how to choose the right one?  Of the many factors to consider, there are four that are the most important.

Any financial advisor that is worth their price is licensed by the National Association of Securities Dealers.  This is the most important thing to check since you can then trust that they know what they’re doing.  If you can, get a financial advisor with a Series 7 license.  This opens up the opportunity for you to invest in virtually anything, excepting commodities.  This will save you trouble of finding a different advisor later.  If you already know what you want to invest in and those interests are limited to mutual funds, unit investment trusts, or closed-end funds then a Series 6 license will be sufficient.

Hire a financial advisor that has been working in the industry and been licensed for a minimum of three years.  It takes awhile to build a reputation and a good track record of success.  The longer they’ve been in the business the more experience they have and the more familiar they are with market trends.  This will ensure that you are getting the most competent financial advisor in town.

You’ll get better results with a financial advisor that doesn’t work solely on commission.  A fee-only advisor is ideal but they are few and far between.  Commission only advisors will tend to pitch you the investments they’ll make the biggest payday off of, not necessarily what’s best for you.  Working for a fee only or a fee and commission will get you a much less biased opinion.

Always ask for references.  And don’t just ask, follow up on those references.  Any competent financial advisor will have no trouble giving you a long list of satisfied customers as references.  If they can’t there’s probably a big problem that you haven’t seen yet and you should move on.

Written by on June 13th, 2009 with no comments.
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Find A Safe Place To Keep Cash

Gone are the days of investing every available dollar you have into every available investing vehicle. Times like these call for a measure of cash reserves. So where is the safest place to keep your cash, while waiting for the markets and the economy to turn around?

The safest place to keep your cash in still a bank deposit backed by the Federal Deposit Insurers Corporation or the FDIC. The FDIC  insures savings, checking, and money markets deposit accounts, and CDs

While saving accounts offer the most flexibility, don’t expect to break the bank with interest perks. However you do have the freedom of withdrawing your money at any time. This is an important component for many people.

Getting the best cd rates is not all that difficult, but you might pay a penalty if you need to take the money before the fixed term is up. Many banks are hungry for new deposits and are extremely competitive with cd rates. Remember as long as the account is FDIC insured, the bank offering the cd matters less than the interest rates it is paying. You’re looking for safety.

Alternatively while money market funds are not FDIC insured and carry a measure of risk on their own, many investors are committing a portion of their cash portfolios to these funds. Money market funds are mutual funds that are required by law to invest in lower risk securities,

The last couple of years should have shown us all, where there is money there is a  risk of losing it. While these investing vehicles may not seem attractive, they are generally safe. Investing money requires risk. One would be wise to spend some time to understand the risks and make decisions accordingly. The economy is in reset mode, and many investors should be as well.

Written by on June 11th, 2009 with no comments.
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Preventing Identity Theft

You’ve spent a good number of years perfecting your credit, so that your financial record reflects what a great consumer you are.  If you watch television they’d have you believe that there is some guy with a genius IQ sitting behind a computer somewhere waiting for you to come online so he can steal your information.  They’d have you believe there’s nothing you can do to prevent it, just pick up the mess, but that isn’t true at all.

The internet is not the biggest threat here, only 10% of cases are internet related.  Almost half of all reported crimes are committed by someone you know, a relative, friend, coworker, housekeeper.  Another third of cases result from a stolen wallet or purse.  Credit monitoring is not a failsafe, it almost never catches identity theft in the act, and identity theft protection only helps you after the theft has occurred.  But what can you do?  Be proactive and assume that you will be a target, because if you have a credit card and a social security number you are a target.

First, put an initial fraud alert on your credit reports.  This will make sure your information is never sold for solicitation.  Further it will ensure that no one can be approved for credit with your name unless the credit bureau calls you personally for your approval.  Keep in mind that these initial alerts only last 90 days, then you have to write to the credit bureaus to extend that up to 7 years.

Establish a security code with all your bank and credit account.  This will mean that you must provide this information to use the cards, but so will anyone else.  These two simple, free steps will make you virtually identity theft proof.  Someone can steal your wallet but they will never be able to get credit in your name, making your information worthless to them.  Even after you have done this it’s always advised to check your credit reports regularly and keep a list of all your accounts in a safe place.

Written by on June 11th, 2009 with no comments.
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