Credit score: loan application approved?

March 1st, 2010 schoolloan No comments

Credit score: are you considering how you can get your loan application approved? Hey, stop! Are you having trouble getting your loan application approved? It could be that probably you are one of the millions of individuals who are having trouble getting their loan application approved…

These people have complied with the requirements and submitted all of the necessary documents, yet they always got a negative response from the application division of the lending company. What have gone wrong? Yes, you have complied with the necessary requirements and submitted necessary documents, yet you forgot something which is very vital in getting your loan application approved—your credit score. Many individuals find themselves getting rejected every time they apply for a loan (such as a home equity loan or an auto loan) because they are not aware of their credit score, or worse, do not know what credit score is at all. They tend to deal with something which they do not understand what they are really dealing with, thus they get caught in the pitfalls of rejection. It is important that you know what credit score is and how vital it is in your loan application.

A good piece of advice: as many say, start with the basics to get rid of the complexities. A credit score is used to determine whether you are a credit risk or not. It is one of the major factors that will initially determine whether your loan applications would be accepted or rejected. It possesses every inch of details with regards to your credit experiences, such as the loans that you have previously availed, any late payments that you have made, and existing debts that you failed to pay prior to your present loan application. In other words, this will serve as your “grade” whether you passed or failed in a certain subject.

Your credit score is recorded in your credit report, which is one of the requirements when applying for a loan. It is divided into 4 main sections, which is as follows:

  1. General information, such as your present address, date of birth, contact numbers, driver’s license number, and your employer’s name
  2. Personal history, which contains information about your personal accounts
  3. Public records, which contains financial data such as any judgments from county courts, defaults, or bankruptcy
  4. Inquiries, which includes list of individuals or groups who have requested for your credit report.

You can obtain copies of your credit score from 3 major credit reporting agencies. One of which is the Trans Union, which is one of the global leaders in terms of credit information and management. Since Trans Union was founded in 1968, they have worked with various businesses and individuals to gather, evaluate, and deliver the critical information needed to create strong economies around the world. As a result, businesses are now managed effectively, resulting to better client relationship.

Individuals now understand and manage their credit effectively, thus achieving their financial goals. Serving more than 30 countries in 6 continents around the world, Trans Union developed local relationship among different nationalities, using the expertise of its manpower in terms of credit management and offering services to individuals who are having a hard time managing their credit profile. Managing your credit means managing your life as a whole.

For Trans Union, credit score is not a subject that should be taken for granted. In fact, it should be one of the top priorities of every individual who prefer credit solutions to their financial needs. Thus, if you want to have that great financial potential and have an access to loans with affordable interest payments and incredible terms of conditions, trust Trans Union. Honesty, experience, and relationship. Those are the 3 values that made Trans Union a leader in credit management and information.

Credit score? Now you know how to get your loan application approved…

What is a credit report score?

February 26th, 2010 schoolloan No comments

What is a credit report score? I’m sure many people still wonder what is a credit report score, and in particular, what makes, indeed, a good credit score! Let’s try to answer these 2 questions…

Credit report score – What is it?

A credit report score is the basis used by lenders to determine if your loan application will be approved or not.

  • If your credit report score is above 700, there won’t be any problems and your loan will be granted with low interest rates.
  • If however you score below this figure, you will be charged a higher interest rate and in the most extreme cases, they will not approve your loan application.

But how do creditors come up with this figure? Basically, they do this by reviewing credit related information such as your payment history to find out if you have ever had any late payments or filed for bankruptcy. They will also check how much money you owe not only on your credit card bill but also what are your outstanding loans. They will as well take into consideration the length of your credit history. In addition, for a lot of people that apply for new credit lines there could be a few other minor factors that could bring up or down your credit score.

What is not in your credit report scores is your color, gender, marital status, national origin and religion: all of this is not relevant. Creditors do not also consider if you are receiving public assistance or any consumer rights that are under the federal Equal Credit Opportunity Act or the Fair Credit Reporting Act.

Important: You can get a copy of your credit report score so you know what where you stand. You can get this from one of three credit reporting agencies namely Experian, Equifax or Transunion. Consumers are advised to get a copy at least once a year since it changes annually.

If you credit report score is not satisfactory, you must do your best to improve it. Some of the things you can do include:

  • paying your bills on time,
  • contacting your creditor regarding your situation so an arrangement can be made and
  • seeing a non profit credit counselor who will help you manage your finances.

As much as possible, you must never file for bankruptcy because it will be very difficult to achieve a good standing for your credit report score. If it happens that you do see errors in your credit report and believe that there is a mistake, you must write a letter immediately to the agency where you got this document so this can be corrected. You must state the issue and any supporting paperwork to strengthen your claim. Never send the originals so have something to hold on to and if this is sent by a courier, make sure that you get a copy of the return receipt so you can follow this up with whoever got it. The reporting agency will then conduct an investigation by contacting your creditors. If the creditor cannot verify their entry, they have no choice but to remove this from your record and you will receive a free copy of the revised credit report score. The same goes when an error has been made and a copy of this revised version will also be sent to other credit agencies.

Now that you know what a credit report score is, it is time to find out what is your standing. This should be good at all times so you get the best deals when you have to apply for a loan to pay for college tuition, buying a car or a new home.

Good Credit Score – When is that?

A good credit score is very important. A good credit score has a profound effect in terms of the interest rate you will be paying when you apply for a consolidation loan. This is the basis that lenders use to determine if you will be able to pay for the amount in the future and if you need money to pay for college or renovate the home… it is good to know what it means to have a good credit score?

The credit score ranges from 340 to 850. And a good credit score is above 700…

As we said, creditors and lenders will determine this by reviewing your payment history, amounts that you owe, the length of your credit history, the types of credits you have used and new credit. If your credit score is over 700, then you have a good credit score. This means you are more likely to receive other financing options and better interests compared to someone who scored lower. The majority of Americans have approximately a 60% good credit score. This means that while many of us are doing well, there are others who need to improve theirs. Should you be one of those who got a lower rating, don’t worry because you still have a chance to improve it. You can do this by paying off your debts especially if most of these are reflected in your credit card bill. The best approach is to deal with the credit card that has the highest interest rate then work on the rest.

Should there be a problem coming up with the money, you must contact your creditor regarding the situation so a payment arrangement can be made so your late payments will be seen in your credit report (so you can get a good credit score…). It’s nice to have many credit cards but if you have a hard time monitoring which ones were already paid, don’t even think of getting another one as this can lower your (good) credit score. You also don’t have to close unused accounts because a zero balance can also work to your advantage. At the same time,  people with good credit scores must never open new accounts especially if their credit history is less than 3 years old. This may bite you back later on since you may not be able to handle this properly. There are some who know that they deserve a higher credit score than the one that came out in the report. If you feel that there is something wrong, you must call your lender because it is possible that the limit that was reported is much lower than what you are aware of. Should this be the case, it is only right that you have this corrected. To know if you have a good credit score, you can get in touch either with Experian, Equifax or Transunion. These three are individual credit agencies and each of them should reflect the same figures. You should get a copy from one or all three at least once a year to know your current standing as your transactions this year may be higher versus the previous year that could either be good or bad for you. If you don’t want any problems make sure that you have a good credit score at all times.

If you need help, there are financial advisers that are more than willing to help you out and get a good credit score!

What is a Payday loan?

February 10th, 2010 consolidationschoolloan No comments

Payday loans? What are Payday Loan? Well, they are small sums, short-term, high interest-rate loans. Simple as that.

Payday Loans are targeted towards those individuals who need a small amount of cash for a short period of time. It is the opportunity for individuals to get access to quick cash without the need for extensive credit checks. Those individuals who cannot attain credit cards, have no friends or family to loan them money, and cannot procure an advance from their employer, often have nowhere to turn for a bit of extra cash to fill a very short term need. Payday loans has  a variety of titles including:

  1. cash advance loans,
  2. check advance loans,
  3. quick cash loans,
  4. post-dated check loans,
  5. deferred deposit check loans

The borrower writes a personal check payable to the lender for the amount they desire to borrow plus the “loan fee”. The lending company then gives the borrower the amount of the check minus the loan fee in cash.  So for example, if you wanted to borrow $100 for two weeks you might write a check for $115 and receive the $100 in cash. A Payday loan is one of the most expensive legal lines of credit that a person can get! Consider that an annual interest rate of 400 – 700% sometimes apply, and on top of that, unlike a regular loan where if you default you can only be “hassled” for late payments, in this case the payday loan company can simply deposit the check. If/when it bounces you will have committed a prosecutable crime that the Payday Company can use as leverage to get you to pay at any cost. In effect, they can threaten you, almost immediately, with criminal proceedings in a way that regular creditors cannot.

Critics say the loans are predatory and can confine low-income people to endless poverty. But supporters say the industry’s popularity is proof payday stores provide a valuable service – providing financial help to customers snubbed by banks. Planed Legislation on payday loans would limit borrowers to a maximum $600 loan in a 31-day period and let lenders charge service fees of 11 percent to 15 percent. The bill also would require payday lenders to get a license from the state and limit customers to one transaction at a time.

Top 5 Reasons To Avoid Payday Loans

February 10th, 2010 consolidationschoolloan No comments

Top 5 Reasons To Avoid Payday Loans? That’s a pretty good question…First of all, do you know what payday loans are? So, first things first…

Payday loans are the cash advances for short period. They are usually projected in the lime light with many so called advantages such as:

  • fast processing and
  • increased approval rate.

A payday loan requires no collateral security except a postdated check, which is dated on your payday. And moreover, it is available for even bad credit people since credit checking is avoided in payday loan processing. But, these factors alone do not qualify the payday loan as a safe one. Many experts used to refer to the payday loan as the culprit, which prey the people in financial crisis. They have sum-up the reasons substantiating the risk of payday loans to mainly five.

The first and the most alarming reason behind the payday loan is the high interest rate.

The payday loan is a characteristic unsecured loan with high interest rates than any other secured loan.

But, the risk in the payday loan is that its interest rates are higher than even any other unsecured loans, which may be as high as 300%. The high interest rates will certainly be a burden for you since you are already in the crisis. Moreover the time available to repay the loan is also very short. You have to repay the total debt amount including the principal amount and the interest rate by the next payday. It will be a great difficulty as it can take up a lion share of your income. Then people will be forced to fall into the rollover loan, which is a bigger risk. The pending amount of the loan can be split into installments but the interest rate will be multifold and the late fees also will be charged. It will be in a sky rocketing pattern that will be hectic for a common man to manage. The security risk involved in the online processing is another reason to avoid the payday loans.

You have to intimate the bank account number, social security number and other such financial and personal details for the loan processing. It will be like a suicidal attempt, if your vital information gets to any of the internet fraudulent. The unfavorable hidden terms in the agreement is an associated risk of the payday loan. Some would have included terms and conditions to automatically renew the loans or other one sided terms. The impact of repeated payday loan applications to the credit score is considered to be a risk that may result far reaching consequences. Even though payday loans are said to be fast processing, you have to meet the necessary requirements such as a checking account, and direct checks.

If your payday applications are rejected, it may badly affect the credit report. The 5 reasons seem to be potential enough to ruin your financial stability. It is always better to avoid payday loan, if you have any other option. However, the availability of money at the right time of necessity should be certainly appreciated. Anyway, the hidden dangers behind the helping hand have to be assessed carefully before stepping in.

Remember… : The warning of the Consumer Federation of America (CFA), regarding the payday loans has to be taken seriously and based on the guidelines you can find secure payday loans.

The Truth About PayDay Loans

February 10th, 2010 consolidationschoolloan No comments

Over the last couple of years we’ve all been bombarded with numerous emails, banners, and event TV and radio commercials offering to save our immediate cash shortage by offering so called payday loans. Obviously, the offers indeed sounds very interesting, if you have a phone and a checking account, the money will be transferred to your account by next business day. However, the ads always fail to mention the astronomical cost that you’ll endure by taking out such a loan.  Due to legal issues, the interest rate on such loans is usually similar to credit card rates.  It is obvious thought, that these lending companies will not make sufficient profits by lending the money for 2 weeks at annual rate of 10%.       Therefore, in addition to the regular interest rate, these companies charge so-called service fees.  These range of the fee depends on the company you deal with, however, they often end up being much higher than your interest payment. Furthermore, if you take a payday loan with the term of 2 weeks, until your next paycheck that is, the chance is that you won’t have enough money to make the payment and still have enough to live on. After all, if you had the money, you wouldn’t need the loan in the first place.  In this case, the lending companies are more than happy to reissue the loan to you or extend its due date by another two weeks.

Obviously, in order for them to cover their time of processing your loan again, they will once again charge you with the astronomical processing fee.  After a while you realize that it’s been a few months and you still haven’t been able to repay the loan, yet your account is being charged every two weeks.  After doing some simple calculations by combining the charges, you see that you’ve already paid more than you’ve borrowed, yet you still owe the principal.
After reading this, one will rightfully have a question of how to get immediate funds without being getting into endless debt by predatory lenders.  There is no one single right answer.  However, there are some options available, which might come into use.  If you already have payments due or bills to pay, try calling your current creditors and see if you can postpone the payment, or even temporarily freeze the payment schedule.  If you’ve always been paying your bills on time, the chance is that your creditor might give you a one time break.  If the situation is that you need money right away, and you can’t take it out of your budget, you can always considering borrowing from you family and friends. In order to avoid such situations when you have to turn to lenders or others for help, it’s better to always have at least some savings, in case a financial need should arise.  Credit cards are also a good way to solve temporary financial constrains, especially considering that there are no fees or interest to pay if the bill is repaid within 30 or so days.

The Dynamics Of No Teletrack Payday Loans

February 10th, 2010 consolidationschoolloan No comments

Do you have a bad credit but in dire need of cash? Then it is time for you to try no teletrack payday loans. This type of loan is an easy way for people who have bad credit to get access to thousands of loan services that do not probe on one’s credit history or credit rating. A no teletrack payday loan lets you enjoy the usual loan services of payday loans as provided by payday lenders. The term “no teletrack” pertains to the system used by lending institutions to detect or identify the borrower’s credit history, such as current loans and bankruptcy cases, as well as all the elements defining one’s financial history. Built in 1989, teletrack is a monetary service company can provide businesses and other lending institutions regarding the credit information of a particular individual. Aside from the credit bureaus that automatically provide an individual’s credit information, teletrack can likewise provide the same information especially on outstanding checks against existing loans and even bankruptcy cases.

This may sound okay but not so much to those who have bad credit. Chances are, payday loan companies may disapprove applications with bad credit standing. Luckily, some payday loan companies do not use teletrack system, thus, people with bad credit have better chances of getting approved for their payday loan. In this regard, payday loan companies that do not use teletrack will just require proof of full-time, regular employment and a fixed salary. These things ensure the lender that you can pay your dues on time or during payday. Like the usual payday loans, no teletrack payday loans provide instant loan for a short term period. This usually lasts for 2 to 3 weeks. However, when compared to other loans, no teletrack payday loans entail higher interest rates. This is to cover up for any risk that may arise. To know more about no teletrack payday loans, here’s a list of some notes to remember:

1. Do your homework
Every loan companies have different terms and conditions. Hence, it is important to make some assessments first on a particular company that offer no teletrack payday loans. Even if most loan companies provide higher interest rates, you can still identify some loan companies that can provide you no teletrack payday loans at lower interest rates. It is just a matter of shopping and comparing.
2. Prepare your requirements
No teletrack payday loans can provide you instant cash advance for as long as you can provide all the necessary materials, such as employment details, basic personal information, and available checking account. Once completed, you can get your cash the next day or on the same day.
3. Take note of the schedules
Normally, the scheduled repayment of your loan is on the day of your next paycheck, hence the term payday loans. This information is indicated on your application form. If you think you need more time to pay the loan, you can always ask for an extension provided that you agree to the additional charges they will give you. All of these things will tell you how practical and useful no teletrack payday loans are. You just have to find reliable sources for safe transactions. Most of all, be mindful of your due dates. Loans are not extensions of your financial resources. Hence, never disregard payment schedules, otherwise, you might experience a hard time getting approvals.

Same Day Payday Loan

February 10th, 2010 consolidationschoolloan No comments

A payday loan is a short-term loan that helps you when you run short of money. Payday loans are given based on a postdated check that the receiver gives for the amount that is being borrowed. A small finance charge is also added to the amount that is borrowed. The loan gives emergency cash that one needs until the next payday. Payday loans are uncomplicated and one can easily qualify for payday loans. These loans are also known as cash advance loans or check advance loans. Same day payday loans are payday loans that get approved the same day you apply. Any person who is employed and has a checking account can avail same day payday loans. There are several online payday loan companies that offer same day payday loans helping you to obtain cash as soon as possible. All one has to do is to apply for the loan by filling in a simple online loan application for immediate approval. Once the loan gets approved the loan amount is directly deposited into the loan applicant’s checking account. All this happens within 24 hours and one does not have to wait for long to get the money. Once the loan is due, the amount gets automatically deducted from your checking account.

There are many companies that offer same day payday loans. The services are uncomplicated, easy and very quick. Payday loans can range from a $100 to up to $1000s, based on how much the borrower can qualify for. One can find numerous same day payday loan lenders online offering loans at various interest rates. A quick research on the Internet can take us to loan providers who offer low interest payday loans. Interest rates can vary from $9.5 to $20 for every hundred that is borrowed. Also, care should be taken to avail the loan from a trusted loan provider. It is better to go for a reputable loan provider who has been in business for at least three years. A reputable same day payday loan company will be licensed to operate in the state they are based in and the borrower should verify the company’s license before applying for the loan. A big advantage is that there are no credit checks involved with same day payday loans. Borrowers need not bother about their credit history and can avail the loan effortlessly. The borrower does not have to fax any form or fill in lengthy, complicated forms either. Hence a faxless payday loan saves a lot of time and is absolutely hassle free. Same day payday loans are an excellent option for those who need immediate financial help in meeting unexpected expenses. Whether it is for paying your bills or even going on a vacation, payday loans are a very convenient and are popular for their quickest modes of service.

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