Things You Didn't Realize Contributed To A Bad Credit Rating

Your credit rating can dictate every part of your future plans, from buying a house to paying for your next holiday. Here are the top things you may not realise affect your credit rating.

1. Having a high credit card limit

When applying for a loan, the lender looks at your credit card limit, not the amount you owe on your card. Even if you only use $1000 of a $50,000 limit, the lender will still treat you as though you regularly borrow $50,000. A smaller limit will help keep your credit rating higher.

2. Spending more than 50% of your credit limit

Your credit score is calculated against your debts using a debt-to-credit ratio or debt utilisation ratio. Rather than looking at how often you pay off your debts, credit raters also look at the amount of available credit you are currently using. If you’re using more than 10-30% of your available credit limit, your credit rating will likely be impacted.

3. Missing any repayments greater than just $150

Any overdue payment larger than $150, paid later than 60 days counts overdue, which is listed on your credit score for five years. Even small amounts matter. The Office of the Australian Information Commissioner (OAIC)’s report on your credit doesn’t reveal the amount on your missed payment; only that you missed the payment.

4. Transferring the balance of one credit card to another

This is an obvious one; but if you’re trying to escape fees on your credit card by moving the balance to a different bank, your rating will become lower.

5. Just applying for a credit card

Every time you apply for a line of credit including a credit card, your credit rating is impacted. Even if you don’t even go ahead with the credit card and you never even use it, just applying affects your rating.

5. Applying for multiple loans while waiting for one to be approved

‘Don’t put all your eggs in one basket,’ doesn’t apply when it comes to loans. Every time you apply for a loan, even if you don’t go ahead with it, your credit rating is reduced.

6. Being involved in insolvency, bankruptcy and court judgements

If you’ve been involved in any financial court judgements, as well as insolvency or bankruptcy, your credit score will be reduced.

7. Having a partner or spouse default on a loan

If you and your partner have joint bank accounts or a mortgage in both your names, you’ll want to ensure you submit your repayments correctly and on time. Even if your partner isn’t listed on the loan, their repayment history will influence your credit score.

8. Not letting your banks and other lenders know when you change your name

If you have a pristine credit history and change your name without letting lenders know, your credit history will be lost. A perfect credit history is one of the best ways to ensure an ongoing high credit rating.

9. Closing credit cards with a good repayment history

Use it or lose it to keep a good credit rating.

10. Missing just one payment out of many each month

The OAIC shows if you’ve missed just one payment in your monthly stack of bills, your credit history will still show you’ve not met your obligations for the entire month.

Don’t let small mistakes lower your credit rating. Stay on top of your obligations so when you need a loan, you can get it.

Christmas Loans: Have It Your Way On Christmas

Christmas is getting closer and people start getting prepared. But Christmas is expensive; studies show that during Christmas season people's spending increases by more than 120% and more and more people are resorting to Christmas loans to finance the holiday's purchases. But what is so special about this type of loans? And most importantly: What are the promotional terms that are being offered on these loans?

Christmas Loans Characteristics

These loans have specific characteristics that make them unique in the financial industry. They provide financing at reduced interest rates. The interest rates can be so low that you would be surprised, but we will get back to this subject later on. These loans also provide easy payments that turn reimbursement into a simple task as the installments are always affordable without much sacrifices.

Furthermore, the requirements for approval are less harsh. There are loans that do not even require a credit pull. No credit verification loans are offered during Christmas and have become very popular because they can be approved within less than a day. But this also means that bad credit applicants, no credit applicants and even those with a past bankruptcy can also get approved without hassles or delays.

No Interest Rate Christmas Loans?

Looking for low interest rate loans? How about no-interest loans? Yes, during Christmas seasons there are lenders offering loans absolutely for free. You are surely thinking that nothing comes for free so I will explain how they profit from these loans. What lenders usually do is offer higher amount loans at no charge with rather restrictive repayment programs. Thus, when a portion of the borrowers cannot afford the repayment, they agree with them to refinance the loan and settle a new repayment but they obviously charge interests on the new refinanced loan because by then, the Christmas holiday is over.

It is the refinancing they profit from knowing that there will be a good percentage of borrowers that will need to resort to refinancing. However, if you plan ahead and do your budgeting right, you can really take advantage of these loans and be one of those that will not need refinancing. But beware of those lenders that offer free or no interest loan but charge a processing fee. If it is only a small fee, it is ok. However, if the fee is so high that it can easily account for all the interests that they supposedly are not charging you, you should refrain from applying.

Seizing The Opportunity

If you need financing during Christmas and the amount you need is not that high, you should resort to Christmas loans because they provide the best terms during these special times. As soon as the holiday ends, regular interests are charged and obtaining the funds will be significantly more expensive. If you need high loan amounts, then you will probably be better off with a home equity loan or a cash out refinance home loan but if your need for funds is limited to a couple of hundreds up to two thousands or a little more, Christmas loans will provide you with an inexpensive or even free source of funds. It is an excellent opportunity that you should not let pass by.

Personal Loans To Eliminate Credit Card Debt

Credit card debt is a major problem for the average American and is responsible for most bad credit histories and low credit scores. Many are embarrassed of being buried so deep in debt and don't want to resort to counseling or debt elimination services. For those in these situations, personal loans can be an option to stop the debt madness.

Credit Card Debt

The main problem with credit card debt is that it tends to get out of control. Unless the credit card holder has some discipline, it is easy to get tempted to purchase goods with credit cards and resort to financing instead of paying the balance in full. If you pay only the minimum payments, balances keep growing and debt keeps accumulating due to interests. Eventually the minimum payment will be so high you won't be able to afford it.

The above is considering the ones holding a single card. Imagine what can happen to those holding several credit cards. The problem aggravates and the chances of defaulting on your credit card payments increase. The consequences of a default are disastrous to your credit and you should try to avoid it at all costs.

Realizing and Making a Plan

The first step to beat credit card debt is to realize you are actually in trouble. Most people think that they can handle their current debt and they don't realize that they've had opportunities to eliminate debt that they've wasted. Once you notice that the use of credit cards for financing is tempting and that you may be exceeding your income capacity for repaying your debt you can moderate your expenses to start controlling your debt.

Since interests keep accumulating even if you don't use your credit card, you need to plan a repayment program of your debt so as to keep reducing your credit card balances and avoiding interest accumulation. Knowing which credit card charges higher interests lets you focus on repaying that balance first and continuing later with the second higher rate credit card.

However, there is another alternative to this repayment plan. The use of a personal loan to reduce your credit card debt can be very advantageous provided that you use it correctly. The characteristics of personal loans turn them into an excellent tool for eliminating credit card debt and reducing the costs of financing.

Personal Loans for Eliminating Debt

With the use of a personal loan you can repay your outstanding credit card balances and fix your debt with a lower interest rate thus saving a lot of money on the long run. Besides, you'll get fixed monthly payments you'll be able to budget so you don't need to calculate every month the payment you'll need to do.

Just make sure to avoid incurring into new debt with your credit cards. If possible close some accounts so you remain with only one or two credit cards. Try always to pay the balance in full and never pay only the minimum payments on your credit card so your debt keeps getting reduced and each time you pay you get fewer interests.

Benefits of Refinancing Your Home Today

By refinancing your existing mortgage or home loan, you can qualify for a better rate or more flexible terms. During refinancing, you can also cash out the equity that you have built up in your home. This money can be used for things like home improvements and repair.

There has never been a better time than today to refinance your existing home loan or mortgage. The best deals on mortgage refinancing can be found online via the Internet

The Internet has become the premier source for mortgage refinancing for a multitude of reasons. Number one among those is that increased online competition between lenders has the end result of getting you the lowest rate to be found on your new mortgage.

Online lenders also have a speedier application and approval process because everything concerning the new mortgage is filled out electronically on a secure server. There is also a significant convenience in the online mortgage that the traditional mortgage can not offer - you can fill out your application online 24 hours a day, when you have time, not during regular banking hours.

Online Mortgage Lending Specialists

What is more, these specialists in mortgage lending online have the expertise that is backed up by years of successful business. They know how to get you the best rate with payments that are easily agreeable with your budget or income. They want you to succeed, and have great customer support to help you do just that.

Many homeowners find that the interest rate they are paying on their current mortgage is not reflective of their elevated credit status. If your credit has approved within the years that you have been paying on your home, you may now qualify for a better rate that reflects your responsible credit pattern. By refinancing, you can qualify for a rate that will allow you to pay your home off sooner for less.

If you signed on during the adjustable rate mortgage boom, chances are that your house payment may be getting out of hand. Multitudes of homeowners are now paying up to double the amount each month that they were paying just seven or eight years ago. Because their income failed to keep up with this payment increase, some of these homeowners have, unfortunately, fallen victim to foreclosure or bankruptcy. Refinancing your adjustable rate mortgage with a new, fixed rate loan will not only save you untold money on interest charges, but also give you a payment that is dependable and works well with your income.

Cash Out Equity

When you refinance your home, you can cash out equity that you have built up over years of payment. Borrowers can use this equity for whatever they need. Home improvements, remodeling, adding a fourth bedroom, additional bath, new floors, roofing, building a new garage or carport, installing a pool or sauna, or numerous other things that make your home more valuable. For every dollar that you invest by improving your home, you can expect to double that investment should you ever put your house on the market.

Shop For Your Personal Loan Online

Getting a personal loan has become something very simple these days. There was a time when a personal loan implied a lot of paperwork, many forms to be filled and other nuisances that couldn’t be avoided. However, nowadays it is possible to apply for a personal loan online without having to suffer all the above annoyances.

Personal loan online lenders have online sites prepared to provide you with all the information you need to select and customize the type of loan you need without having to move from the comfort of your home. In a short period of time, you can compare offers, select your loan, apply and get the money into your account without even having to leave your home.

Traditional Lenders

Traditional lenders are banks and financial institutions that have physical offices where the clients are received and transactions take place. Due to the nature of these lenders, the loans they feature are low risk financial transactions with high revenues associated to them. This is due to the fact that they need a steady income to cover for the high costs they face: personnel, office renting, supplies, etc.

Thus, those with bad credit or those who do not meet the strict requirements of these banks and financial institutions can seldom find loan offers that suit their needs. And even those who do meet the requirements for traditional loan approval, need to fill boring paperwork and get to the bank’s offices in order to complete the loan transaction wasting time and money.

Online Lenders

As opposed to traditional lender, online lenders have fewer costs. This is mainly due to the fact that they need fewer personnel for handling loans as almost every step of the loan transaction is handled online. This cost reduction impacts on the fees and rates charged for the loans that are offered by them, making online loans more affordable.

Moreover, since these loans are processed online, the borrower also gets additional benefits: he doesn’t need to move from the comfort of home in order to fill the applications thus saving money on transportation. And many other additional costs that people who need to close deals somewhere else incur in, are avoided by applying online for personal loans.

Online Personal Loans

You’ll be able to find multiple sources for Personal loans online. There are several lenders both for good credit applicants and bad credit applicants willing to approve your personal loan. A smart thing to do is to request loan quotes from as many lenders as possible in order to compare what they have to offer.

When comparing, you need to watch closely the APR, the loan repayment program, the loan amount, the amount and number of installments and also the fees and charges that are not included in the APR. Once you’ve decided which loan best suits your need, you just need to fill the online application and you’ll be contacted by the lender within a short period of time. If you happen to get declined, don’t apply again right away, take your time to analyze the reasons for the decline so you can correct it and avoid being declined again.

Small Business Start Up Loan

The sense of pride and joy of running your own small business cannot be over exaggerated. Many of today’s largest and most successful companies started out in someone’s kitchen or workshop and became a raging success and household name. But it can be a struggle to start a small business alone, especially financially. Prospective business owners may already have learned this when they began to seek a small business start up loan.

The benefits to receiving extra funding from a small business start up loan are many. An owner can quickly get his or her business idea up and running. The extra cash can be used to purchase, lease, or renovate a building. An owner can advertise his or her concept in a variety of forms—banners, newspaper or radio advertising, starting a website, and getting new business cards. Additionally, an owner can get new equipment, tools and other items necessary. Extra funding can help a business owner make a big impact at first, and give a good first impression to his or her customers. A great beginning with a startup loan for small business needs is key to the success of a new small business—and a small business start up loan can help attain just that.

Unfortunately, it is not so simple when it comes to the loan process. Potential business owners are quickly discouraged when lenders impose a long list of requirements that are difficult or impossible to meet. Detailed business plans and collateral requirements are the two biggest setbacks when it comes to obtaining business funding. And many loan processes take weeks or even months!