Bad Credit Home Loans
A "bad credit home loan" is a loan that one can get despite having a bad credit rating. Many lenders offer a bad credit home loan knowing fully that their loan is secure, since it is taken on mortgage of your home.
A bad credit home loan is an instrument of opportunity for those who have bad credit rating and would like drop out of their debt and start on the road to good credit building. By availing of a bad credit home loan you can lower your monthly payments by consolidating all your debts and also enjoy a lower interest rate on the current debt. The consolidation and paying off your current debts by availing of a bad credit home loan is a major step towards credit repair. Moreover, if you can keep up the payments on your second home loan for about six months to a year, you will see a remarkable change in your credit score.
Most popular options available on bad credit home loans are cash out mortgage refinance and home equity loans. Both options allow you to cash in on the equity already paid into your home mortgage and use it to get yourself out of debt. It’s best to deal with a mortgage company online to avoid bank associate’s talk around and skepticism. Its also easier to compare various offers form different lenders to make sure you are not being cheated. Please keep in mind the following while filling up forms for online mortgage:
a. Make sure you read the articles on online mortgage at the bad credit home loan lender’s websites. By this you can educate yourself on various types of financing and be informed and up to date on fees and current lending rates
b. While applying for online quotes, do not opt for a generic estimate which is based on you monthly income and bills, fill out detailed information whereupon you can get a real accurate quote.
c. Try and get to the total bad credit home loan cost i.e. including the closing fees, application fees, any other charges, interest charged, amortization and loan fees etc.
d. After applying, do not forget to keep all records received from the lender and follow up with weekly phone calls to make sure things are moving on time.
e. After completion of bad credit home loan, plan to refinance in about three years, by which you should be back in good credit, if you have kept up regular repayments. This will help in reducing your short time debt and maximize your future credit rating.
Use your bad credit home loan to the maximum advantage to get your credit rating back in line. This will help you plan a secure future for you and your family.
Tuesday, November 27, 2007
Home Loans for People with Bad Credit
Monday, November 19, 2007
12 Tips for Preventing Credit Card Fraud
12 Tips for Preventing Credit Card Fraud
Most of us enjoy the convenience of paying for goods and services with a credit card or debit card. Unfortunately, some people become victims of credit card fraud, one of the fastest growing crimes in the United States. You may not may know of fraudulent activity on your credit card account until you see unauthorized transactions on your statement.
Here are 12 simple steps to mitigate the possibility of fraud on your credit card account:
tag: prevent credit card fraud identity theft prevention
Most of us enjoy the convenience of paying for goods and services with a credit card or debit card. Unfortunately, some people become victims of credit card fraud, one of the fastest growing crimes in the United States. You may not may know of fraudulent activity on your credit card account until you see unauthorized transactions on your statement.
Here are 12 simple steps to mitigate the possibility of fraud on your credit card account:
- Keep both your personal identity and credit card information secure. Never email your credit card details to anyone. Email is not a secure method of transmitting data and can often be intercepted by criminals.
- When you receive a new credit card always sign it immediately; alternatively, write "Check ID" in the signature area so that sales clerks will check for proper identification.
- When you receive a replacement credit card always destroy the old card immediately. Cut or shred the old card into many small pieces.
- Make sure you destroy old receipts that have your card details printed on them. The most effective method is to use a shredder. Some shredders will now shred plastic cards and computer CD's or DVD's, too.
- Open and check your credit card statement as soon as you receive it. Read it carefully to make sure you know what all the payments printed on the statement were for, and that you authorized them.
- If you see any transactions on your credit card statement that you do not recognize, immediately contact your bank or credit card company for more details, and to possibly report fraudulent activity.
- If you misplace your credit card for any reason, immediately telephone the card issuing company and tell them. They will block the card to prevent any unauthorized use, and issue a new card to you.
- Never tell anyone, for any reason, your Personal Identification Number (PIN), which allows cash withdrawals using your credit card.
- Make sure your Personal Identification Number (PIN) is not easy for someone to guess. Avoid using numbers that are easy to guess, for example do not use your date of birth or address. Also, try to use a different Personal Identification Number for each individual credit card or debit/ATM card.
- Do not use an ATM if you suspect, for any reason, that it has been tampered with. Report your suspicion immediately to the bank that operates the ATM.
- When you use your credit card in a retail store or restaurant try to keep a watch on your card while the payment is processed. Make sure that it is your card that is handed back to you.
- When using your credit card to make online purchases, always ensure the web page where you enter your credit card details is secure. A secure web page has a URL that begins https:// and an image of a locked padlock in the bottom right hand corner of the browser window. If in doubt, try to make the purchase in person.
Following these simple precautions will reduce the possibility of you becoming a victim of identity theft or credit card fraud. Check with your bank or credit card company, they may have further information on minimizing the risk of credit card fraud, so it is worth contacting them.
tag: prevent credit card fraud identity theft prevention
Tuesday, November 13, 2007
Three Tips to Improve Your FICO Score
Three Tips to Improve Your FICO Score
It used to be that "people", not computers, made decisions about your credit worthiness. You knew your banker personally and your handshake was all the collateral you needed. Those days are long gone, and now a single number generated by a computer - your FICO score - determines whether you are a credit risk or worthy of credit.
While there are several credit models, the most commonly used is called the FICO score, based on a computer model created by Fair, Isaac Company.
Your credit score is often used to determine your interest rate and how much credit a lender will give you. Taking care of your credit score, and keeping your credit history clean will save you money.
Keeping a good FICO score, or improving it, is not difficult, but it may take time. Here are some strategies to maintain and improve your score, based on three credit situations.
It used to be that "people", not computers, made decisions about your credit worthiness. You knew your banker personally and your handshake was all the collateral you needed. Those days are long gone, and now a single number generated by a computer - your FICO score - determines whether you are a credit risk or worthy of credit.
While there are several credit models, the most commonly used is called the FICO score, based on a computer model created by Fair, Isaac Company.
Your credit score is often used to determine your interest rate and how much credit a lender will give you. Taking care of your credit score, and keeping your credit history clean will save you money.
Keeping a good FICO score, or improving it, is not difficult, but it may take time. Here are some strategies to maintain and improve your score, based on three credit situations.
1. Obtain a Credit Report
For various reasons, you may have no credit history. Maybe you're young and just starting out, or maybe you always pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score will most likely be very low.
In this case, an easy way to raise your score is to acquire a loan, and pay it off on time. In general, when calculating your credit score installment loans are weighted more heavily than credit cards. So, you can improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.
Another way to build a better credit record is to take $1000 and open a 6 month CD account at a financial institution. Once you have done so, get an installment loan for $1000, using that CD as collateral. Pay attention now, here's the trick. Take the $1000 funds from the installment loan, and open another 6 month CD account at a different banking institution, and then take another loan for the $1000 at the second institution. Do this one more time.
Now you have three installment loans. Every month pay the minimum payment for the next 6 months. In the sixth month, cash out all of your CDs and pay all three of the loans off. You now have a credit history, but you did not go into long term debt to get it.
2. Maintain Your Good Credit Rating
Great job! You paid your bills on time, and you do not have high credit card debt. Here are some tips to maintain your FICO score as high as possible.
- Don't close your old credit accounts. One component when calculating your credit score the amount of credit available verses amount of credit used. Closing old credit accounts can lower this part of your score.
- Paying off your credit card balances every month is good money management, but you may be able to improve in this area. Here's the scenario: you have a credit card with a limit of $2000. Every month, you charge arounnd $1800 to that card. And, each month you pay it off in full. But here's what happens - your credit card company reports your credit information monthly to the national credit bureaus. If they report on your balance before you pay it off, it looks as if you carry a high balance on your credit card every month. Your FICO score may improve dramatically if you pay off your credit card at a different time of the month.
3. Repair Your Poor Credit History
If you have bad credit, there are things you can do to improve your score. Some of the strategies take time, and you may want to talk to a credit counselor to be sure that you not only improve your credit history, but also eliminate what caused that poor credit history in the first place.
The most heavily weighted element of your score is based on your payment history. The first thing to do to start repairing your credit history is to pay your bills on time each and every month. If you have a mortgage, it is the most important, followed by installment loans, and finally credit cards.
The next most important part of your score is based on how you use credit. The fastest way to improve this is to pay down your credit cards - never use more than one-third of your available credit on any one card.
Finally, look for any errors on your credit report. Order a copy of your credit report from all three of the national credit agencies, and look carefully at all the entries. The agencies are: experian.com, equifax.com, and transunion.com.
If you find any errors, start the process to dispute them. Also, call your creditors - often they will remove negative information.
Your FICO score is a very important part of your financial health, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial advisor.
Monday, November 12, 2007
Protect Yourself From Identity Theft
Protect Yourself From Identity Theft
Identity Theft is a real and growing problem in the US. But, what is identity theft exactly? Basically, identity theft is when someone uses your social security number, your bank credit card number, your driver's license number or any other form of identity without your knowledge or permission. Usually their intent is to obtain credit or funds in your name.
Many people have fallen victim to identity theft through many different means. Some of these ways are easily preventable due to their common sense obvious nature. Other ways identities are stolen are more dubious and discreet.
So, the question becomes, how can you protect yourself from someone stealing your identity?
To protect yourself from identity theft, the first thing you should do when considering how to divulge information about your identity to someone you do not know or may not trust is to use your common sense. Never make one-sided assumptions or take things for granted where your identity is concerned.
Credit card company statements and bank statements you receive in the mail contain your account information including your account number. Any of these items need to be shredded with an inexpensive shredder you can buy at any office supply store. Do not throw credit card statements, old credit cards or bank statements, etc. in the trash as that presents an easy way for someone going through the trash to steal your account information and use it as if they were you.
Another thing you can do to protect yourself against credit card fraud and unauthorized credit card usage is to sign the back of your card as "Check ID". If a store clerk asks to see your card, he or she will check the signature on the back and compare it with some other form of ID you have. This safeguard will not work where a purchase can be automatically completed (like at a gas pump).
When you are buying items at a store or withdrawing money from a bank or ATM machine using your ATM debit card always protect the visibility of your PIN number as you punch it in.
Do not carry your social security card with your number on it in your wallet. Keep your social security card or anything with your social security number on it in a safe place where no one has access to it but you. If you must dispose of anything that has your social security number on it, do not forget to shred it.
When online, do not open files sent to you by strangers or even files that are from someone you know but were not expecting to receive any from them. Do not click on hyperlinks or download programs from people you do not know either. Opening a computer file from an unknown source could expose your system to a computer virus, a Trojan or spyware. These types of programs could be ones that could log your keystroke information containing your credit card numbers, passwords or other sensitive information as you type it in.
If you use Ebay or Paypal, read the company website policies concerning how they handle communication to you about your account information. Never trust an email you may receive out of nowhere from Ebay or Paypal asking you to "update your account information" as this is more than likely a ploy to steal that information and use it illegally.
Use a firewall program and a router while you are online if you have high speed internet that leaves your computer connected to the internet 24/7. The router and the firewall program both make it much more difficult for a hacker to see your computer's actual IP address which means that you have a better chance of safely sending and receiving sensitive information over the internet. Windows XP operating system SP2 has a built in firewall which you should make sure is enabled in your settings.
When you shop online, always use a secure browser and shop from a web site that offers secure transactions when shopping online. Most browsers in use today have this protection feature including the popular Internet Explorer and Mozilla Firefox browsers. Secure website shopping carts you visit will show up as "https://thestoresdomain.com/" in the web browser address bar.
Practice keeping your computer clean from spyware or Trojan programs that log keystroke information by using virus protection software and spyware monitoring and removal software. These programs should be updated regularly, and updates for you're operating system and other software programs should be installed regularly to protect against the compromise of your computer files and password information. Ideally, virus protection software should be set to update itself frequently. The Windows XP operating system will update itself automatically if you enable this feature, which you should.
The consequences of identity theft once thieves have your information can be quite severe and range from going on a spending spree to taking out auto loans in your name. For these reasons and others, it is a good idea to monitor your credit report periodically. A credit report can be obtained from Trans Union Corp. New laws have made it easy for you to get at least one free credit report that you can use to see if accounts have been opened in your name.
tags: identity theft protection
Identity Theft is a real and growing problem in the US. But, what is identity theft exactly? Basically, identity theft is when someone uses your social security number, your bank credit card number, your driver's license number or any other form of identity without your knowledge or permission. Usually their intent is to obtain credit or funds in your name.
Many people have fallen victim to identity theft through many different means. Some of these ways are easily preventable due to their common sense obvious nature. Other ways identities are stolen are more dubious and discreet.
So, the question becomes, how can you protect yourself from someone stealing your identity?
To protect yourself from identity theft, the first thing you should do when considering how to divulge information about your identity to someone you do not know or may not trust is to use your common sense. Never make one-sided assumptions or take things for granted where your identity is concerned.
Credit card company statements and bank statements you receive in the mail contain your account information including your account number. Any of these items need to be shredded with an inexpensive shredder you can buy at any office supply store. Do not throw credit card statements, old credit cards or bank statements, etc. in the trash as that presents an easy way for someone going through the trash to steal your account information and use it as if they were you.
Another thing you can do to protect yourself against credit card fraud and unauthorized credit card usage is to sign the back of your card as "Check ID". If a store clerk asks to see your card, he or she will check the signature on the back and compare it with some other form of ID you have. This safeguard will not work where a purchase can be automatically completed (like at a gas pump).
When you are buying items at a store or withdrawing money from a bank or ATM machine using your ATM debit card always protect the visibility of your PIN number as you punch it in.
Do not carry your social security card with your number on it in your wallet. Keep your social security card or anything with your social security number on it in a safe place where no one has access to it but you. If you must dispose of anything that has your social security number on it, do not forget to shred it.
When online, do not open files sent to you by strangers or even files that are from someone you know but were not expecting to receive any from them. Do not click on hyperlinks or download programs from people you do not know either. Opening a computer file from an unknown source could expose your system to a computer virus, a Trojan or spyware. These types of programs could be ones that could log your keystroke information containing your credit card numbers, passwords or other sensitive information as you type it in.
If you use Ebay or Paypal, read the company website policies concerning how they handle communication to you about your account information. Never trust an email you may receive out of nowhere from Ebay or Paypal asking you to "update your account information" as this is more than likely a ploy to steal that information and use it illegally.
Use a firewall program and a router while you are online if you have high speed internet that leaves your computer connected to the internet 24/7. The router and the firewall program both make it much more difficult for a hacker to see your computer's actual IP address which means that you have a better chance of safely sending and receiving sensitive information over the internet. Windows XP operating system SP2 has a built in firewall which you should make sure is enabled in your settings.
When you shop online, always use a secure browser and shop from a web site that offers secure transactions when shopping online. Most browsers in use today have this protection feature including the popular Internet Explorer and Mozilla Firefox browsers. Secure website shopping carts you visit will show up as "https://thestoresdomain.com/" in the web browser address bar.
Practice keeping your computer clean from spyware or Trojan programs that log keystroke information by using virus protection software and spyware monitoring and removal software. These programs should be updated regularly, and updates for you're operating system and other software programs should be installed regularly to protect against the compromise of your computer files and password information. Ideally, virus protection software should be set to update itself frequently. The Windows XP operating system will update itself automatically if you enable this feature, which you should.
The consequences of identity theft once thieves have your information can be quite severe and range from going on a spending spree to taking out auto loans in your name. For these reasons and others, it is a good idea to monitor your credit report periodically. A credit report can be obtained from Trans Union Corp. New laws have made it easy for you to get at least one free credit report that you can use to see if accounts have been opened in your name.
tags: identity theft protection
Sunday, November 11, 2007
How to Deal with Bad Credit Reports
How to Deal with Bad Credit Reports
Today your credit score is everything. Lenders and bankers approve or disapprove loans, mortgages, and credit cards based on your credit worthiness. It is also something that will determine your credibility to employers, landlords, and insurance companies.
Tags: legal bad credit repair report score
Today your credit score is everything. Lenders and bankers approve or disapprove loans, mortgages, and credit cards based on your credit worthiness. It is also something that will determine your credibility to employers, landlords, and insurance companies.
With a good credit rating you will be able to apply and be approved for loans and/or credit cards easily. Ultimately, isn't that the goal? You will also have a better chance of getting certain jobs, and living where you choose.
Having bad credit reduces your opportunity for many of these things. If you are able to get approved for a loan or for a credit card, you'll most likely have a much higher than average interest rate. You will be considered a “high risk” customer because creditors are not certain if you will be able to pay your bills on time. If you want to apply for an apartment rental the landlords may take a look at your credit report to determine if you will be able to pay your rent and utilities.
These are just a few of the many reasons why having a good credit score is very important in today's world. However, what can you do if you happen to already have bad credit? If you have a bad credit score, it is imperative to fix the problem as soon as you can. Here are some ways clean up your credit report
.
First, stop your bad credit before it gets worse. So how do you do this? Pay your old overdue debts as soon as possible. This will not immediately improve your actual credit score, but it will put you on the right track to repairing your credit history.
Second, raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. Although will have a higher interest rate, it is also a good way to control your credit card spending and it will also raise or repair you bad credit score as long as you pay the monthly credit card bills on time you will be able to see a significant rise in your credit history report.
If you follow these steps, and pay your bills on time every month, you will eventually start to see a good credit rating. Remember that it does take time to raise your credit rating. Be patient and diligent to see a positve change.
Once again, remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so over time you will end up with a good credit score and history.
Having bad credit reduces your opportunity for many of these things. If you are able to get approved for a loan or for a credit card, you'll most likely have a much higher than average interest rate. You will be considered a “high risk” customer because creditors are not certain if you will be able to pay your bills on time. If you want to apply for an apartment rental the landlords may take a look at your credit report to determine if you will be able to pay your rent and utilities.
These are just a few of the many reasons why having a good credit score is very important in today's world. However, what can you do if you happen to already have bad credit? If you have a bad credit score, it is imperative to fix the problem as soon as you can. Here are some ways clean up your credit report
.First, stop your bad credit before it gets worse. So how do you do this? Pay your old overdue debts as soon as possible. This will not immediately improve your actual credit score, but it will put you on the right track to repairing your credit history.
Second, raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. Although will have a higher interest rate, it is also a good way to control your credit card spending and it will also raise or repair you bad credit score as long as you pay the monthly credit card bills on time you will be able to see a significant rise in your credit history report.
If you follow these steps, and pay your bills on time every month, you will eventually start to see a good credit rating. Remember that it does take time to raise your credit rating. Be patient and diligent to see a positve change.
Once again, remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so over time you will end up with a good credit score and history.
Tags: legal bad credit repair report score
Wednesday, November 7, 2007
Why You Need a Copy of Your Credit Report!
Why You Need a Copy of Your Credit Report!
Many people are not aware of how important their credit history is, and that they are entitled to one free credit report each year from each of the credit reporting agencies.
Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report, and it's free. But why would you want to read your credit report, and how do you find it?
In the US there are 3 national credit bureaus which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life.
You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life. Opening a bank account, considering letting a bill slide a little until it's overdue, going for a loan, buying a house? Any one of these transactions and many many more are all recorded on your credit report. Information is kept on where you live, how you manage most of your finances, much of your criminal history if you have one, your history of loan repayments and much more.
And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.
You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.
Something as simple as missing a few bill payments because you were on vacation can quite seriously affect such things as your ability to obtain credit in the future.
So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of.
For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.
So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.
To get your free credit report from each of the three national credit bureaus go to AnnualCreditReport.com and proceed as directed.
So remember, you are entitled to a free copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.
Another important reason to check your credit report is to look for errors, omissions, and signs of identity theft. Don't leave your credit to chance. Manage your credit not only by paying your bills on time, but by monitoring your credit history diligently.
Tags: credit report
Many people are not aware of how important their credit history is, and that they are entitled to one free credit report each year from each of the credit reporting agencies.
Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report, and it's free. But why would you want to read your credit report, and how do you find it?
In the US there are 3 national credit bureaus which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life.
You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life. Opening a bank account, considering letting a bill slide a little until it's overdue, going for a loan, buying a house? Any one of these transactions and many many more are all recorded on your credit report. Information is kept on where you live, how you manage most of your finances, much of your criminal history if you have one, your history of loan repayments and much more.
And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.
You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.
Something as simple as missing a few bill payments because you were on vacation can quite seriously affect such things as your ability to obtain credit in the future.
So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of.
For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.
So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.
To get your free credit report from each of the three national credit bureaus go to AnnualCreditReport.com and proceed as directed.
So remember, you are entitled to a free copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.
Another important reason to check your credit report is to look for errors, omissions, and signs of identity theft. Don't leave your credit to chance. Manage your credit not only by paying your bills on time, but by monitoring your credit history diligently.
Tags: credit report
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