If your credit rating has taken a beating, you may be struggling to pay the bills. Low credit scores are often accompanied by abruptly boosted interest rates, which lead to higher expenses. Debt consolidation is a great way to get a handle on your bills, even if you have bad credit. Are you wondering, “Where do I get bad credit loans to consolidate my bills?” Keep reading to find the answer.Consolidate Credit Cards with Bad CreditIf you have a lot of debt on high interest credit cards, you have three choices to consolidate your bills: a credit card balance transfer, a home equity loan or home refinance, or a personal loan. A balance transfer will get you the lowest rate, but only temporarily. A personal loan will have a rate that’s lower than your current credit card interest rates for a longer term, but it may still be relatively high if you have a very low credit score. Contact your bank to ask about a personal loan. You may also receive offers in the mail. Carefully research the lender before agreeing to any offer you receive in the mail.If you own a home, a home refinance or home equity loan is your best option. Because the loan is secured by your home, the interest rate is lower than you’d find with a credit card or personal loan. The rate won’t be the lowest possible, however, because those are reserved for borrowers with excellent credit. You may also find that the rate is lower if you have more equity in your home because it gives the bank a bigger financial cushion if you default.Tax deductions are another advantage to home equity loans. Mortgage interest and most interest for home equity loans or lines of credit is tax deductible, which will free up a little extra cash for paying those bills.Consolidate Student Loans with Bad CreditIf you need to consolidate federal student loans, you’re in luck. The federal government regulates the interest rates and consolidation rates. You will almost certainly qualify for a reasonable interest rate from any student loan consolidator. Start with your current lender, but contact a few others to see if their terms and discounts vary. Consolidating is more complicated with private loans, but it may still be possible. Contact your current lender for information, then search for lenders online. Ask a few for quotes before accepting an offer.When it comes to student loans, you should avoid combining them with other debts or paying them off with a home equity loan or cash-out refinance. This is because most federal student loans are forgiven at death or permanent disability and can be deferred while you’re alive. You lose these benefits if you swap them for a different kind of debt.If you have bad credit, consolidating your debt and bills is a great way to improve your credit history. By paying down debt, you also improve your financial future and your ability to qualify for better credit. No matter what your credit is like, you’ll be able to find someone who is willing to take a risk on you.
Have you been kept from applying for loans because of bad credit history? Do you see your dreams of college being taken from you because of this? Admittedly, it can be a great deal easier for you if you have a good credit rating to get the approval you need- BUT it is not as hard as some might think to get a loan, even with a credit history that is less than ideal.An example? Some don’t consider credit rating as essential a factor as others when approving student loans, such as The Stafford loan. This is a popular US Department of Education loan, and they assume that applicants are leaving high school to go to college, and are young people with no credit history at all. Another example is Perkins loan, who also practices the same method, and they are a federal student loan for the most destitute families.Unless you’ve previously defaulted on a federal student loan, bad credit history doesn’t need to be nearly as helpless as you may have been led to believe! If you have bad credit student loans, but your parents are fine, you might want to consider A PLUS loan, since it is arranged with your parents instead of you. It is put in place for parents who are financially supporting their children through college, and is a viable option for many young adults.Federal funding is also available, tailored to students who have struggled with their credit history in the past. This is definitely worth at least looking into, since the requirements are less rigorous than other lending companies and banks. One more word of advice: if you applied for a federal student loan and were rejected, it’s not the end of the world.Try a private loan. Especially if you are going into a field with high earning potential, like a legal or medical profession, this can be your best choice.
If you’re a first time home buyer with bad credit and are concerned about the difficulties you’ll face when looking for finance, don’t be too worried. It won’t necessarily be difficult to get a mortgage, but you’ll just face higher interest rates and fees. For the most part, this is something you’ll just have to accept. Unfortunately, you have bad credit so you are more of a risk in the eyes of the lender.However, there are still some things you can do as a first time home buyer with bad credit that can help to get you a better financing deal for your needs, and improve your credit score. Here are some things to consider:Improve Your Credit Score
Obviously, this is easier said than done and you can’t expect to drastically improve your credit rating overnight, but you might be able to make slight changes. The thing you need to remember with mortgages and interest rates is that a slight reduction in the amount of interest you pay each month can be worth thousands and even tens of thousands over the lifetime of your mortgage. Or even over the near future of your mortgage. Get a copy of your credit report and see if there is anything you can dispute. It’s highly likely that there is something that you can change. Write a letter to the agency, explaining anything you find that you disagree with. You’d be surprised at how often you can get something on your score “fixed.” It’s worth the effort.Have a Flexible Seller
Granted, this depends a lot on who you’re buying the house from, but there are many sellers that will appreciate the fact that you’re a first time home buyer with bad credit. Often you can do an “owner carried mortgage” or a “contract for sale” whereby you can make payments to the seller instead of a bank. This way you can avoid any lending fees and have lower interest rates.Be Creative
Much like the above example, there are many things you can do as a first time home buyer with bad credit to get a better deal than borrowing from a bank. There may be sellers that are willing to “lease” their house to you with a later option to buy. You really just need to bring it up with them. Remember, sellers are often just as eager to sell their home as you are to buy one.
Getting home equity loans with bad credit is not really a big deal. In reality, this is easier than you might think. This article contains some information that will help learn some of the the hows and whys invovled in getting home equity loan with bad credit.It is commonly assumed that if you have bad credit, you will not quality for loans. Be it auto loans, personal loans, construction loans or home loans etc. This is not necessarilty true, especially when it comes home equity loans with bad credit. Home equity loans borrows from the equity that you already possess in your home. Most of the creditors or lenders, however you call them, they are actually more than willing to take this risk of providing you a loan even with bad credit. Why? That’s because they know that, if required, they will still be able to take over your home and get their money so for them it’s a pretty safe game isn’t it?If you are concerned about getting home equity loans with bad credit then here is some information that will help you feel better and be less worried:Getting approved for home equity loan is easy.Even if you have a bad credit, qualifying for home equity loans is not that hard. The only thing your bad credit score will do is that it makes sure that you end up paying higher interest rates than you actually would if you had a good credit score. While this may not sound pleasing but it is better than not qualifying for the loan at all.Creditors want business with youA number of lenders are out there who will be looking forward working around your credit issues and problems. In fact, the majority of the lenders today, known as sub-prime lenders are out there, waiting for people like you and with issues like you have, to come and get in touch with them. You can find such sub-prime lenders online by doing a little search on different search engines or by browsing through our website. The sub-prime lenders specialize in getting loans for people who have bad credit. If you work with these kind of lenders, you will increase your chances of getting approved quickly and finding a home equity loan program that suits your financial situation and needs.
The consolidation loans are usually secured against your stated property hence providing lenders with greater lending capacity.Since debt consolidation loans are secured, they make it easy so you have only one smaller monthly debt payment to make. This gives you greater flexibility to enjoy your life as you pay off your debt.If you have no loan collateral, the best alternative is to opt for unsecured consolidation loan. Loan companies usually provide debt consolidation loans for consolidating monthly bills.By consolidating your debt into a single loan, you will get lower monthly payments and be able to have extra money for your shopping. Loans are usually subject to your financial status, type of loan, and or value of your property especially for mortgages.Bad credit loans are for individuals with bad credit and can be used to purchase cars, as personal loans, or even for consolidation. A secured loan will get you less interest rates, a much higher loan amount, easy pay installments, and longer repayment period.Loans can be a burden if not properly managed. Consider debt consolidation loans as the best alternative for reducing your debt burdens.Debt consolidation is good for those facing financial hardships. It can help you manage and reduce your debt when you are faced with difficulties. It is hard to fix bad credit when you can not decrease your debt and pay your bills on time.If you want to consolidate your debts, seek advice and carefully negotiate terms of the consolidation. Debt consolidation is not a loan but a means to lower your monthly payments, interest rates, late fees, and over the limit fees you may currently be paying.Don’t delay, take control of your finances today.
One of the quickest, easiest, and fastest ways of getting cash for debt payments is through the use of home equity loans. Many people may think that their loan may not get approved because of a poor credit rating. There are lenders willing to make loans for these situations.You could refinance a home mortgage loan even if your credit score is low. The terms of the loan may be less flexible than what you would desire. Also finding an institution that offers low interest rates, great terms, no hidden extra charges, or fees is tough.Many institutions rely on FICO score in order to make lending decisions. The FICO score is based upon many factors. The 3 major credit bureaus are TransUnion, Equifax and Experian. They collect information from various sources and provides credit information about individuals, consumers, and organizations for various reasons. It’s mainly designed to determine credit worthiness or ability to pay debt in a timely manner.A credit score could range from 300 to 900 and is determined by a variety of factors such as open debts, past financial activity, new credit applications and several other factors.Most lenders seek to lend in the average range. If the credit score is below 600, the credit industry considers that individual in the high risk bracket.It is critically important to always read and review the terms of the home equity loan contract before signing the paperwork. Never hesitate to ask should a question arise.It is still possible to get a home equity loan if you have a low credit score. The interest rates may be high and may accumulate into the thousands during the life of the loan. A way to get around this is to refinance for a better rate later on. The ability to refinance the loan may depend upon whether your credit improves or not.
A bad credit home equity loan is a kind of loan which allows a borrower to obtain a predetermined amount of cash against the equity of a home. You can get loans at a low rate as your credit would be secured by the home equity.Getting a loan as from the lender’s point of view home equity loans are comparatively safer especially when the borrower has a poor credit record. It is because the borrower can not hide or disappear with the house and that ensures the lenders of getting the collateral in case of a default. Another factor works here is that any borrower even who has a less-than-perfect credit record is likely to make payments on time as his home is on the line.There are some certain advantages of home equity loan. This includes low interest rate, easier to become qualified for the loan, possibility of getting a relatively large amount of loan and tax deductible payments. All of these are very helpful for a someone with poor credit that is why bad credit home equity loan is one of the best options for them.There are some pitfalls of home equity loans as well. People with poor credit should be aware of these pitfalls as they are already in a bad financial condition. For example, scammers can cheat homeowners in various ways and you can lose you home as a consequence. So before choosing your lender do some background check and agree for legitimate deals only. It is highly recommended to compare among several lenders so that you can get the best possible contract. In order to compare lenders you have to request for the credit quotes. You can easily access these quotes via online as most of the companies have their own website. While searching the quotes do not forget to look at the terms and conditions.A bad credit home equity loan will help you to refinance your necessary sectors like, paying bills, home improvement and so on and will certainly help a bad credit holder to improve his condition.
After a recent bankruptcy, your loan options are limited. Those needing
quick cash for home improvements, wedding expenses, or college tuition
may be unable to secure the necessary funds. However, if you own a
home, getting approved for a home equity loan following a bankruptcy is a
realistic option.Understandably, banks and credit unions are reluctant to approve an
unsecured loan or credit card application. Because home equity loans are
secured by your property, lenders are more equipped to take a gamble.
However, if the loan cannot be repaid, you will lose your home.Benefits of a Home Equity LoanHomeowners obtain home equity loans for various reasons. In fact, some
apply for these loans in an attempt to avoid bankruptcy. Home equity
loans are perfect for debt consolidation and paying past due utility
bills. The interest rates are typically lower than credit cards and most
consumer loans. Thus, homebuyers are able to payoff debts, improve
credit, and save money at the same time.Some prefer home equity loans because they do not involve closing
costs. Refinancing an existing mortgage is great for obtaining a lower rate
and receiving cash. However, because a new mortgage is created,
homeowners are required to pay closing fees, which could amount to thousands
of dollars.Home Equity Loan LendersGetting a low rate on a home equity loan following a bankruptcy will
require work. Homeowners must be prepared to research various lenders and
negotiate a good finance package. To begin, submit a loan application
through your existing mortgage lender. If your payment history is
acceptable, the lender may consider this when approving your application.
Thus, you may avoid paying a higher rate.If your lender offers you a seemingly unbeatable rate, do not stop
here. Continue to obtain quotes from other money sources. Shopping around
for home equity loans online is popular. Mortgage websites make it very
convenient to get approved for a loan without leaving your home. Simply
submit your loan application and wait for a reply. Within a few hours,
lenders will contact your with their best offer.After obtaining at least four offers from home equity loan lender,
compare each offer. What are the terms? Interest rate? Monthly payments?
Subsequently, pick the lender that offers the most desirable mortgage
When you refinance it simply means taking out a new loan in order
to cover the cost of a previous loan. Hopefully you walk out with
some cash as well! Ideally, the refinanced loan should have a
lower interest rate and a lower monthly payment.If you have bad credit, refinancing at times is helpful.
Refinancing makes perfect sense when the first loan taken during
a period of high interest rates can be paid off and a new loan
with lower interest can reduce your monthly payout. Be aware
though, if the difference in interest rates isn’t significant,
you should avoid refinancing as some lenders require additional
charges up front.Since a period of time has passed since you took out your first
loan it does impact the new loan. You will need to compare
different lender’s offers before refinancing your home or car
with or without bad credit.A big advantage to refinancing your home or car is the money you
can save from the first loan payment schedule. It’s also possible
to change the amount of your monthly payments or even change
banks so that you can get a loan on more favorable terms.It’s vital you pay attention and refinance at the right time. Be
patient and do your homework. Take the time to research the
market thoroughly to find the best interest rate and terms on the
loans available for your credit rating. Your credit history will
play a key role in being able to refinance. You might want to
beef up your score before you go into a lender to make a deal.Obtaining a Bad Credit Home LoanIt’s a common misconception that those carrying a bad credit
rating can’t get a home loan. This isn’t true since getting a
loan for homes and many other needs are now more than ever
possible even for those with less than glowing credit scores.Having bad credit means usually means you’ll be required to put
down more at closing in the form of a larger down payment and
you’ll likely end up paying a higher interest rate as well.A typical down payment on a bad credit home mortgage ranges from
3% to 5%. If you find yourself unable to come up with the down
payment you might need to find other avenues for the money as at
short stop gap measure such as a short term personal loan. Then
once you’ve refinanced you can access your financial position.
Another alternative is to look for a down payment assistance
program.Improving your credit rating will give lenders more confidence in
giving you a home loan. Actively working on
consolidating debt to improve your credit score
consolidating debt to improve your credit score, paying all your bills on time and
getting a major credit card with all payments current will help
tremendously. Also, keep a close eye on your credit report for
inaccuracies and incorrect information.Lending companies look at several factors when deciding whether
or not to grant home loans to bad credit individuals.Typically the loan to value ratio, monthly income and debt to
income ratio are considered. However, keep in mind that you’re
free to negotiate with your lender. Oftentimes it’s possible to
get better terms for your bad credit loans simply by doing a
little “haggling” with your lender.
I have been approached by a swarm of homeowners who are currently facing foreclosure. It saddens me to see so many people in this situation, and how they have been deceived into thinking they can afford these homes. Even until now I hear stories about homeowners being promised false hope that they can be saved from foreclosure by paying a short sale fee, loss mitigation fee, or just being striped totally of their equity by scrupulous professionals.The fact of the matter is that you can save yourself from foreclosure; because you don’t have many options.
The first thing homeowners in trouble have to come to realization is to separate their emotional attachment to their home if they have owned it for less than four years. I say that because if you bought your home within the last four years most likely you bought really high priced and most of these homeowners bought with a 100% financing with no income verification. If this is the case you must realize you have no equity and your house isn’t worth keeping. What I recommend is a family meeting putting together a budget; net Income minus all expenses and if you’re in a negative forget it! cut your loses and move on its not too late to start over.Refinance may be an option with the new FHA guidelines that go into affect October 1, 2008 this where homeowners that are behind on their mortgage can refinance only if they can prove that their income is sufficient to pay the mortgage at 29% of their income, and only if their current lender agrees to take a loss (short Pay) on the current mortgage FHA will purchase the current mortgage up to 85% of current Fair market value with closing cost and debt all bagged together not to exceed 90% of current fair market value. You can visit their website at http://www.hud.gov and search for the HR 3221 housing bill for full description of bill. Please remember this is a full documentation loan it will not work for people who cannot prove their incomes!After you realize you can’t afford it and refinancing couldn’t help you call your lender don’t be afraid bottom line you can’t afford it. your lender must see that you can’t afford it so you have to lay the cards on table with them period give them all the truth once they see you can’t afford it obviously a payment plan won’t work. The lender may offer you loan re-modification if your income proves that you can pay the new loan terms so you see why I say sometimes its better to come to reality and forget the emotional attachment we have for homes. Most lenders offer forbearance which is deffer payments for up to six months but again if you still have the same income in six months it defeats the purpose.Option 4 is to put the house on the market to sell at current market value hire a Realtor to give you a free market data analysis if you list with them most likely your home won’t be worth what you bought it for, so its important that you maintain communication with your lender during this process, so they can at least see that you are trying to get yourself out the hole, plus they will pause foreclosing procedures during this time. Once the Realtor gives you the market value send a copy to your lender as they have to agree to take a loss; this is called a short sale. During this time make sure you save your money to start looking for accommodations to move out don’t get too comfortable. It surprises me how many people wait til the sheriff is knocking on their doors before they reality actually hits home.If after a few months the property doesn’t sell you have the right to claim Chapter 13 Bankruptcy. Just keep in mind that if you file chapter 13 its only temporary, if you can’t afford your current mortgage chapter 13 won’t help you as now you will have to pay your regular mortgage payment and all of your debt consolidated in another payment to the state trustee so now you will have two payments. Notwithstanding the enormous fees you will pay an attorney. Chapter 13 is for individuals who can prove they will be able to pay their current mortgage plus all arrears in a payment plan over 5 years.If Chapter 13, Selling, Refinancing, short selling, forbearance, payment plan, loan re-modification, don’t work out for you just give it up ask your lender if they have cash for keys ask for a couple of months to move out and you will voluntarily give them the deed in lieu of foreclosure, it’s certainly less embarrassing than the sheriff forcing you and your family out.Just remember during these tough times we fail to think straight and anyone who offers us a sign of hope will look like a god; but reality is you can save your own home if you just talk to your lender and come to realization if you can truly afford to keep this home even if the lender works with you.I can’t stress to how important it is to communicate with the lender, they will offer the options that they will offer any body else you hire to do it for you. Don’t fall into a trap just tell your lender the exact truth be bold and un-embarrassed tough times could happen to any one of us and it’s never too late to start over. Take it from me I have walked the path and I have helped hundreds some I saved their homes and the others just gave them up gracefully and started a new chapter in their life.After all is said and done just educate yourself on credit repair as your starting point.http://www.approvemyfhaloan.com