Posts Tagged: ‘FICO’

Finance Debt Consolidation Chop Down Monthly Outgoings

November 17, 2014 Posted by admin

Finance for debt consolidation should be availed after a careful thought. Any unwise borrowing of the loan may lend you in another trouble and its very purpose will be defeated.

When you intend to consolidate your balance payments on credit cards, store cards, any other bills and unsecured loans, then it simply means that you want to get rid of the higher rate payments immediately. Other usual intention is that you want to make low monthly payments towards the new loan.

Prior to applying for the new loan, check your credit report, which you can get free from the major credit rating bureaus. Make sure that the report has correctly mentioned all the past payment and has no errors. Know that the lenders will study the report. You should also know as to where you stand on FICO credit rating. If your rating is low, then apply for the loan with improved rating after few months.

You should assess your debt position, including the interest rate payments. Avoid borrowing greater amount of loan as it carries larger repayment duration and you end-up making high interest payments.

Finance for debt consolidation comes in secured or unsecured option. The secured loan should be preferred for its lower rate of interest as you borrow the loan against your valued property. Depending on value of the property, you can borrow greater amounts for larger duration of say 25 years. However, prefer repaying the loan in short for saving interest payments. Tenants and homeowners both can opt for unsecured loans if they need only smaller loan, without collateral. Interest rate goes higher on these loans and the repayment duration is in the range of few months to 15 years.

For bad credit history people, interest rate on these loans will be higher. Therefore, they should make a good comparison of as many Finance Debt Consolidation offers as they can. This is the way of finding a suitable deal with comparatively lower rate and with less additional charges. Make sure to repay the new loan installments in a regular manner.

Bad credit unsecured loan takes care of finances in bad credit

May 12, 2014 Posted by admin

Difficult situations leave people in even worse conditions. A financial crisis may leave a borrower with defaults, arrears or a bad credit score which amount to a bad credit history. Taking a loan in such situation may also prove difficult for a borrower as bad credit history places obstacles in that too. But now, Bad credit unsecured loan [] help these borrowers in maintaining their finances.

Bad credit can be a result of missed repayments, defaults, arrears, or any big or small County Court Judgments that have been passed against a borrower. All these factors lower the credit score of the borrower. To know his credit status, a borrower can request for a credit report from companies like FICO or Fair Isaac Credit Organization. A score of less than 580 on the FICO credit report means a bad credit score.

A bad credit unsecured loan provides money to the bad credit borrower to take care of his finances. It may be debt consolidation, wedding expenses, home improvement, medical expenses, etc.

A bad credit unsecured loan does not demand any collateral to be pledged for the loan. This opens the way for people who do not own assets like tenants and non-homeowners and have a bad credit history but require money for their needs.

Since bad credit arises some amount of a doubt in the lender’s mind while giving money to the bad credit borrower, the lender tries to cover the risk as much as possible and charges a high rate. To lower this high rate, the borrower can convince the lender by proving good repayment ability.

Online research can help the borrower in getting a low rate for the bad credit unsecured loan. The borrower can compare quotes that the numerous lenders offer and choose accordingly.

Bad credit unsecured loan is the best bet that bad credit borrowers can rely on, to improve their financial situation and improve their bad credit condition.