credit report – Sono Webs http://sonowebs.com/ Sun, 06 Mar 2022 02:29:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sonowebs.com/wp-content/uploads/2021/10/cropped-favicon-5-32x32.png credit report – Sono Webs http://sonowebs.com/ 32 32 Top 5 Tips for Rebounding from Bad Credit | News from the region https://sonowebs.com/top-5-tips-for-rebounding-from-bad-credit-news-from-the-region/ Sun, 06 Mar 2022 02:29:00 +0000 https://sonowebs.com/top-5-tips-for-rebounding-from-bad-credit-news-from-the-region/ Budget setbacks can happen at any time, whether it’s unexpected bills, expensive repairs or the loss of a job. These financial situations can lead to bad credit or financial instability. Having a bad credit score can affect your loan, mortgage, or job application. A bad credit score is seen as a sign of lack of […]]]>

Budget setbacks can happen at any time, whether it’s unexpected bills, expensive repairs or the loss of a job. These financial situations can lead to bad credit or financial instability.

Having a bad credit score can affect your loan, mortgage, or job application. A bad credit score is seen as a sign of lack of discipline in credit behavior, which lowers your chances of availing loans.

You might end up paying higher interest for sanctioned loans. The good news is that there are companies that offer personal loans for bad credit. However, be sure to conduct thorough research to identify a reputable lender in your locality.

Nevertheless, it is important to identify ways to bounce back from a bad credit score. It would be better to understand that rebuilding your credit is more difficult than starting from scratch.

You are trying to show credit card issuers, lenders and employers that you will be able to have better financial management in the future despite your current situation. But before you begin the process of rebuilding your credit score, it’s essential to make sure you understand your current score.

Below are some tips you might consider using to rebuild your credit score. They understand:

1. Take stock of your debt

Taking stock of your debt will make it easier for you to know how much you owe and how much interest it’s costing you. You can easily decide where you should start focusing your efforts and the best strategy for paying off your debt. This includes:

Debt Snowball – This debt repayment strategy allows you to gradually repay the smallest to the largest debt. This way, you will make progress sooner.

Debt Consolidation – This strategy allows you to consolidate all your debts into a single loan with a single interest rate. This will make it easier to pay and track your various debts.

Avalanche of debt – In this method, you will prioritize paying off the debt with the highest interest rate. This is an ideal route to save time and interest on your debt repayment journey.

Do extensive research to identify the best strategy for paying off your debts. Paying off your debt will influence your credit score, making it easier for you to get a low-interest loan or mortgage.

2. Refrain from submitting multiple credit applications

Each time you apply for a loan or credit card, the issuer will assess your creditworthiness using your credit report. Such lender-initiated credit reports can lower your credit score by certain points.

So, if you apply to multiple lenders, especially in a short period of time, it can negatively impact your credit score.

To avoid this, visit various online marketplaces to compare loans based on your credit score instead of applying for a loan directly from multiple lenders. Although these marketplaces may retrieve your report from a credit bureau, this will not affect your credit score as these are unauthorized requests.

3. Set up automatic payments

Several factors can affect your credit score. They include late payments, credit usage, etc. Thus, on-time payments will play a huge role in improve your credit report. Automating your payment will ensure you don’t miss any payments.

Features like autopay are generally available for most bills and let you set a date each month to automatically use funds from your bank or credit account to pay bills. This will help you avoid late payments, which will help rebuild your credit score.

4. Develop a financial cushion

Developing a financial cushion will ensure you have a reliable way to pay for unexpected expenses if your savings fund isn’t enough. So your rainy day fund should include backup options beyond a savings account.

Including a contingency funding option in your emergency plan will make it easier to access sufficient funds to meet unexpected bills.

If your fund is low, it’s important to improve your savings rate, to ensure you have a steady flow of funds to cover emergencies.

This is another trick you can use to tackle your debt. Be sure to conduct a thorough audit to understand where your money is currently going. This will make it easier for you to assess whether your current budget meets your financial goals.

For example, if your goal is to pay off debt, but you find yourself spending money on other things like shopping, it’s time to re-evaluate your budget. This will help you avoid accumulating debt, which could affect your credit score.

There are several ways you can use to improve your budget. For example, 50-30-20 budgeting is a strategy that helps you divide your income into essentials, wants, and savings. You can also use several budgeting apps to reassess your spending and improve your credit score.

As stated above, bad credit can affect your loan or mortgage application. You could end up paying higher interest, which would affect your savings margin. For this reason, it is important to identify ways to increase your credit score.

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Healing the Heartache of Bad Credit | Opinion https://sonowebs.com/healing-the-heartache-of-bad-credit-opinion/ Mon, 28 Feb 2022 16:00:00 +0000 https://sonowebs.com/healing-the-heartache-of-bad-credit-opinion/ All month I’ve been talking about financial love, and we all know that “love doesn’t come easy.” There is always a risk of heartache. The final piece of my financial love advice explains why building or rebuilding your credit profile is key to minimizing these risks. Having good credit affects many areas of your life. […]]]>

All month I’ve been talking about financial love, and we all know that “love doesn’t come easy.”

There is always a risk of heartache. The final piece of my financial love advice explains why building or rebuilding your credit profile is key to minimizing these risks.

Having good credit affects many areas of your life. Imagine you and your family finally saving enough money for a down payment on a house. You find the perfect home to be turned down by the bank because of your credit. Or maybe your dream is to own your own business.

You’ve found the perfect place, but it needs a little work, so you go to the bank for a small business loan that’s only been turned down. Now you are “dreaming with a broken heart”.

Finally, imagine that you have found your dream car, your first car, to be exact.

Unfortunately, you can’t afford it and your credit situation means financing is out of reach. Three hits, you’re out! At this point you have “Lost that Lovin’ Feelin”. However, there is a chance that the romance will be rekindled; it doesn’t have to end in a tragic love story.

With credit affecting so many areas of your life, consider the following tips to help you rebuild your credit while mending that heartache at the same time.

Tip #1 – Review your credit report

You need to know where you are. The first step in this process is to get a copy of your credit report. You can get a copy from every major credit bureau: Equifax, Experian and TransUnion as a consumer. The best way to get your credit report from all three major credit bureaus for free is to go through

a site called www.annualcreditreport.com.

The good news is that you can request it for free once a week. previously it was only once a year from each office. Check it for any incorrect information. If there are errors on your report, they could negatively affect your credit score. It is important to note that you have the right to dispute errors or

information about your report.

Tip #2 – Pay your bills on time

Being late for a date or forgetting an important event in a relationship, such as your birthday or anniversary, can lead to serious romantic problems. Your finances are no different. Payment history makes up 35% of your credit score, which means your payment history is one of the biggest determining factors. Negative information, like missed or late payments, can affect your credit score for years. Late payments can also result in late fees which can add up quickly!

The sooner you pay your bills, the better it is for your payment history. Consider setting up a budget, automatic payments, or reminder alerts to help you track your bills.

Tip #3 – Try to keep most of your credit limit available

Quality versus quantity is another factor to consider. Credit utilization is a term used to describe the percentage of your credit limit that you are using. The amount you use has a powerful effect on your credit score – in fact, the only thing that matters most is paying on time.

Most experts recommend not going over 30% of the limit on any card or account, as a lower value is better for your score. This is important because keeping your credit utilization below around 30% can show that you are managing your credit responsibly and not overspending. Check credit usage for all your credit accounts and focus on reducing the highest ones to improve your score.

Tip #4 – Consider a secured credit card

Feeling safe is also important when a relationship is recovering from an “Achy Breaky Heart”. A secured credit card is a great product for people who want to build credit from scratch. If your credit card accounts have been closed, you may need to start over with a secured credit card. These cards require an initial deposit, which is usually used as a credit limit, but other than that they work like any other credit card.

Tip #5 – Get a credit CD or secured loan

A credit building CD has one purpose: to help you improve your credit profile. Many banks and credit unions like Southern Bancorp offer these credit building products.

They work by having you take out a small loan, but instead of pocketing the money, it goes into a CD or certificate of deposit. Then you make regular payments until you have repaid the initial amount. At this time, the CD is given to you. The benefit is that your regular payments are reported to the credit bureau to show your creditworthiness, helping you build or repair your credit.

Secured loans work the same way in that you will need to provide some sort of security for the loan, but either way it’s about making your payments on time so the credit bureaus know you’re on the right track. Remember that rebuilding credit can take time as you increase your credit score, as can building a better romantic relationship. The time it takes to rebuild credit depends on your situation.

The good news is that most things won’t affect your score forever. The effects of negative factors may lessen over time. Being patient and building good habits will eventually pay off in the long run!

Remember that getting better credit is possible with responsible financial behavior and it’s never too late to start. “What does love have to do with it”, you might ask? Financial freedom can be achieved if you want to love your money again and have it love you back.

For more information contact me at Charlestien.harris@southernpartners.org or call me at 662-624-5776.

Until next week — Stay financially fit!

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6 business credit cards for bad credit https://sonowebs.com/6-business-credit-cards-for-bad-credit/ Thu, 24 Feb 2022 18:30:00 +0000 https://sonowebs.com/6-business-credit-cards-for-bad-credit/ Your credit score is dismal and you can’t pay off your personal credit card. You would think that with this credit history, you would never be approved for a business credit card. You are wrong. Even with a bad credit rating, you can get a card. Business credit card companies will approve your application for […]]]>

Your credit score is dismal and you can’t pay off your personal credit card. You would think that with this credit history, you would never be approved for a business credit card.

You are wrong. Even with a bad credit rating, you can get a card. Business credit card companies will approve your application for certain types of bad credit cards, such as a secured card.

Other business card issuers will require you to pay the full credit card balance each monthly billing period.



What is bad or poor personal credit?

A credit score of 579 or less is considered bad or bad credit. Your personal credit history contributes to credit scores. But don’t forget that there is also a business credit score.

Here are the main factors that affect your personal credit score:

You have unpaid bills or loans from the past. This may include student loans.

You have made many late payments on utilities, a mortgage, or personal credit cards.

You have exceeded your own credit limit on your personal card.

How can a business owner qualify for a card with bad or poor personal credit scores?

You can get a “secured” credit card. This means that you make a refundable security deposit in advance and cannot exceed this amount on card charges. It’s similar to the security deposit you pay when renting an apartment or house.

Or you can get 0% APR cards. With these, the credit card issuer requires you to pay your balance in full each billing cycle. With regular payments, your credit limit may increase. If you are still wondering why should I get a business credit card, the best answer is that you can start repairing your credit. Once you start fixing it, you can even get small business loans with bad credit.

How to Choose the Best Business Credit Cards for Bad or Poor Credit?

Most business credit cards offer your choice of cash back or rewards programs. Until you go above a fair to good or excellent credit rating, you will not qualify for cards with excellent programs.

But that doesn’t mean you can’t get a good card and build business credit. Business credit card issuers will perform a personal credit check. You should be able to get approved for a secure business credit card. Or you can choose to start building credit by choosing a card that requires you to pay it off every billing cycle. While you’re in this process, look for ways to fix your credit score.

The 6 Best Business Credit Cards for Bad Credit

Let’s start with secured credit cards.

With an unsecured credit card, no cash deposit on your part is required, although the card may be linked to your business bank account.

With secured business credit cards, you must provide a deposit as a personal guarantee. You won’t get a high credit limit unless you make a high dollar deposit.

1. First National Bank Visa Business Edition® Secured® card

the Secure Business Edition® Visa® Card | First National Bank of Omaha (fnbo.com) includes a benefit you would normally only get with an unsecured business credit card – 0% APR for 12 billing cycles. You’ll also get 1.5% cash back with this secure Visa card.

  • Annual fees: $0
  • APR: 0% for 12 cycles, then 14.24-20.24%
  • Credit required: Bad, poor and better.

2. Wells Fargo Business Secure Credit Card Account

You will link the Wells Fargo card to a Wells Fargo business checking account. Compared to other secured credit cards for small businesses, the Wells Fargo Business Secured Credit Card offers you 1.5% cash back, or you can choose to earn one point for every dollar spent. You will receive 1,000 bonus points each cycle you spend $1,000 on qualifying business expenses and business purchases. Add in no foreign transaction fees and free employee cards, plus liberal credit limits of up to $25,000, and Secure Wells Fargo Business is the right business credit card for you. many.

The only downside? Use of the Wells Fargo Business Secured Credit Card is not reported to personal credit bureaus. You can always use proof of your timely payments on the card to improve your credit report with the major credit bureaus – you have to do it yourself.

  • Annual fees: $0
  • APR: 11.9% plus prime rate.
  • Credit required: Bad, poor and better.

3. Capital One Platinum Secure Commercial Credit Card

This is a great starter model in business credit card options. There is no annual fee for the Capital One card, and you can start with deposits as low as $49 to $200.

  • Annual fees: $0
  • APR: 26.99%
  • Credit required: bad, bad or better

Best Business Startup Credit Cards for Bad Credit

If you’re a startup or entrepreneur, you’ll want a card that grows with you, while keeping your spending in line.

We’ve selected two that require you to pay the full balance each month, and a third card to help new businesses that rely on a fleet of vehicles.

4. SVB Innovators

It seems, the SVB Innovators is one of the best business credit cards for entrepreneurs.

  • Offers for startups: A business rewards program that gives you 2 points for every dollar spent. You can use the points to create a credit on your statement.
  • Annual fees: $0
  • Introductory APR: 0%. You must pay the full balance each cycle, but your credit limit increases rapidly as you make payments.
  • Credit required: Bad, poor and better.

5. Stripe

Many retailers or restaurant owners recognize Stripe as software used to process payments. If you already have a Stripe account, you can get one. Stripe credit card.

  • Offers for startups: You’ll get 2% cash back and $150 Google ad credit. 3 months free on Shopify.
  • Annual fees: $0
  • Introductory APR: 0%. You must pay the full balance each cycle.
  • Credit required: Bad, bad or better.

6. Sam’s Club Business Mastercard

You must be a member of Sam’s Club. This Sam’s Club card is also accepted at Wal-Mart. Considering the vast choices at Sam’s and Wal-Mart, this is a great card for outfitting an office and getting big discounts on gas purchases.

  • Offers for startups: 5% cash back on gas purchases and 3% cash back on purchases at Sams. On purchases elsewhere, you’ll get 1% cash back.
  • Annual fees: $0
  • Introductory APR: 15.65-23.65%
  • Credit required: Bad, bad or better, and you have to be a member of Sam’s Club.

Secured Card Vs. Unsecured Business Credit Card

With an unsecured card, you risk spending more than you should. With a secure card, you can use your personal checking account or savings account to make deposits, helping you control your spending.

Unsecured credit cards are less restrictive, which can make them an ideal business credit card – for those who can stick to a budget. If you want to learn more, search for resources on what business credit cards are.

What is the best credit card for bad credit?

The best business credit card will probably be the one you get after cleaning up your credit report.

In the meantime, we love First National Bank secure visa card for its main features: no annual fee, 0% APR for 12 cycles and 1.5% cash back.

Image: Depositphotos


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Best credit cards for bad credit: February 2022 https://sonowebs.com/best-credit-cards-for-bad-credit-february-2022/ Fri, 11 Feb 2022 23:10:21 +0000 https://sonowebs.com/best-credit-cards-for-bad-credit-february-2022/ CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission through the LendingTree Affiliate Network if you apply and are approved for a card, but our reporting is always independent and objective. If you have a low credit score, you might be surprised […]]]>

CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission through the LendingTree Affiliate Network if you apply and are approved for a card, but our reporting is always independent and objective.

If you have a low credit score, you might be surprised to learn that getting a new credit card could actually help. If you can get a new card approved despite having bad credit, you’ll have the opportunity to develop better credit habits and better creditworthiness through responsible use. Plus, adding a new card can improve your credit utilization rate and your credit score if you’re already in debt.

Unfortunately, credit card options for people with bad credit tend to have few benefits. For example, you usually won’t get a welcome bonus with these types of cards, and they usually charge fees, such as annual fees and foreign transaction fees. Credit cards for bad credit can also come with high interest rates, which can make maintaining a balance expensive.

But with all that said, it’s important to understand that some credit cards for bad credit are considerably better than others. So let’s take a look at the types of credit cards you might qualify for with poor credit, and how you can use them to your advantage.

Click here to see the latest list of the best credit cards for people with bad credit.

If you have bad credit, you are probably already aware of it. After all, a bad credit score usually means that you’ve been denied a credit card or other loan in the past because a lender felt you posed too much of a financial risk. You probably also know the reason why you have bad credit to begin with, whether it’s because you let a loan or credit card go into default, you have an account in collection, or you go bankrupt. case.

But even if that’s the case, it never hurts to check your credit score so you know exactly where you stand. Fortunately, there are several ways to check your credit score for free.

You can start by signing up for a credit monitoring service that provides a free credit score or a program that offers free credit monitoring tools. For example, Experian Boost gives consumers a free snapshot of their FICO credit score, and it can even help you improve your score quickly.

When working on your credit score, you’ll probably want to pay the most attention to your FICO credit score because it’s the most commonly used scoring model. FICO credit scores range from 300 to 850 and are broken down into the following levels:

  • Excellent: 800 and above
  • Very good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 579 and below

While truly “bad” credit is a FICO score of 580 or lower, “fair” credit between 580 and 669 is still below average compared to other US consumers. If your credit score falls into one of these categories, you need to take steps to improve it as soon as possible.

See if you qualify for one of these credit cards for people with fair credit.

If you have poor credit, you can qualify for two types of credit cards: secured credit cards and unsecured credit cards.

Secured credit cards are usually the easiest to get if you have bad credit. However, secured credit cards require a cash deposit to get started. This means that you may need to deposit $200, $500 or more as collateral, and you will usually get a low credit limit at or near your deposit.

The biggest advantage of secured credit cards is that they are usually reported to major credit bureaus. This means that all of your one-time payments are added to your credit report, which can help you increase your credit over time. And even though you need to put down a cash deposit to open a secured card, if you later close the account or upgrade in good standing and with a $0 balance, your deposit will be refunded.

Save money with these best credit card offers for people with bad credit.

In addition to secured credit cards, you may also qualify for an unsecured credit card with bad credit. These cards tend to come with fees, low credit limits, and few benefits, but they can still help you build credit.

Store credit cards are also a type of unsecured credit card that may be easier for people with bad credit to approve because they can usually only be used at the store or chain that issues the card.

Besides being easier to get, the biggest advantage of store credit cards is that if you find yourself shopping at a particular retailer often, you may be able to save money, whether on your initial purchase or later on a future shopping spree. Typically, using a store credit card saves you 5% on your purchase, and store credit cards can also have other benefits that you might not have thought of. .

Before you get a new credit card, you need to make sure you have a clear understanding of what you hope to accomplish. Although obtaining a credit card gives you the opportunity to improve your credit, you could worsen your credit if you are not prepared to take on this responsibility. So before you apply, ask yourself these questions:

  • Do I plan to carry over a balance? If you want a credit card so you can carry over a balance, be aware that credit cards for bad credit come with high interest rates. Not only that, but secured credit cards require you to deposit money as collateral, so they’re not a good option if you need a loan.
  • Am I interested in the rewards? Some credit cards for people with bad credit offer the opportunity to earn rewards on your spending. Although rewards can be lucrative, keep in mind that they often entice people to spend more than they intended.
  • Do I want to pay an annual fee? Not all credit cards for people with bad credit charge an annual fee, but some do. If you decide to pay an annual fee, you need to make sure that any benefits you get in exchange are worth it.
  • Am I ready to take my credit seriously? A new credit card gives you the opportunity to improve your credit, but it won’t happen automatically. In most cases, getting a new credit card will only help your situation if you keep your balance low and always pay your bill on time.

The best credit cards for bad credit may not sound very appealing, but the point is to use them to boost your credit score so you can qualify for better deals later. But there are a few “gotchas” to be aware of and watch out for, including:

  • Costs: While you should try to avoid annual fees if you can, you should also be aware that some credit cards, especially those for people with bad credit, try to charge an account set-up fee or program fees. Avoid these offers as much as possible.
  • High APRs: Beware of high interest rates which can make debt incredibly expensive. In fact, if you’re considering using a credit card to improve your credit, you should try to avoid carrying a balance on the new card entirely.
  • Credit errors: Finally, watch out for mistakes that hurt your credit in the first place. The worst thing you can do is pay your credit card bill late, as this will have a major negative effect on your credit score, so avoid it at all costs.

Compare credit card offers available to people with fair credit.

If your goal is to get a new credit card to help rebuild your credit, you need to know and understand how your credit score is determined in the first place. Let’s take a closer look at the five factors that make up your FICO credit score:

  • Payment history: 35%
  • Amounts due: 30%
  • Length of credit history: 15%
  • New credit: 10%
  • Credit mix: 10%

By looking at these factors, it’s easy to see what your next steps should be. More importantly, you should strive to pay your credit card bill — and all your other bills — on time each month. Also, you need to keep your debt to a minimum, because the amount you owe against your credit limits is 30% of your FICO score, also known as your “credit utilization rate.”

Since any credit card you get with bad credit will likely have a low credit limit to start with, you’ll need to be extra careful not to go over your credit limit and pay off your balance as much as possible each month to keep your credit utilization rate is low.

The length of your credit history can also be increased if you keep old credit accounts open and in good standing, and you can keep your score high in the “new credit” category by refraining from opening too many new accounts.

Your credit mix is ​​a final category to keep in mind, but you might not have too many different types of credit — such as installment loans like a mortgage or car loan — when your credit score credit is fair or bad. Once you’ve improved your credit score, you can worry more about diversifying your credit with installment loans, revolving accounts, and other types of credit.

Ultimately, if you’re going to get a new credit card in an effort to improve your bad credit, you need to make sure that you don’t make the same mistakes that got you into trouble in the first place. So if you decide to apply for a new credit card, be smart about how you use it. Don’t overspend, don’t pay bills late, and avoid cards that charge high fees so you can get back on the path to good credit.

Learn more and apply now for the best credit cards you can get with bad credit.

Is your credit rating good or excellent? Or maybe you have no credit? CNN underlined has you covered with our other stories in this series:

Check out CNN Underscored’s list of best credit cards available now.

Get all the latest personal finance deals, news and advice from CNN Underscored Money.

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How to Improve Bad Credit and Get a Home Loan https://sonowebs.com/how-to-improve-bad-credit-and-get-a-home-loan/ Sun, 06 Feb 2022 11:10:45 +0000 https://sonowebs.com/how-to-improve-bad-credit-and-get-a-home-loan/ You may have saved enough for a deposit on a car or a house, but your dreams may be dashed at the last hurdle if your credit score isn’t up to par. If you need a loan for a major purchase, your lender will check your credit score to determine your reliability as a borrower. […]]]>

You may have saved enough for a deposit on a car or a house, but your dreams may be dashed at the last hurdle if your credit score isn’t up to par.

If you need a loan for a major purchase, your lender will check your credit score to determine your reliability as a borrower.

Get a good score and you can get the loan at a reasonable interest rate. bad score, and you might have trouble getting a competitive interest rate or a lender at all.

How to improve your credit score

If you have caused damage to your credit rating, the first step in redemption is to take responsibility and pay off all outstanding debts.

Experity director Clint Howen says contacting the organizations you owe is the first step to clearing the debt from your credit report.

“For example, if it’s an invoice with Telstra, the process is usually to go through Telstra and say, ‘Hey, I’ll pay off this debt, whatever the balance is, sorry. How can I withdraw this from my report?” he said.

If you’re having trouble paying overdue bills that affect your credit score, you can get a loan or use a credit card to help pay it off.

But if you go this route, be careful.

Mr Howen said that if you’re using a loan or credit card to pay off debt, make sure the limit is low; for example, if you are using a credit card, set the limit to $500 instead of $5,000.

“Yes, it works…but be as careful as possible because you can easily end up in a much worse position,” he said.

There are also professionals who specialize in checking your credit report, which can be a good option if you have multiple issues with it or need it fixed quickly.

To protect your credit score in the future, Fitzpatricks Private Wealth financial planner Gianna Thomson recommended paying your bills by direct debit to avoid missing a payment deadline.

Loretta Iskra, a professor at the University of Wollongong, said the resources offered by the government MoneySmart websiteand could help you improve your financial literacy and put you in touch with a financial advisor if you need one.

“Often people don’t know what they don’t know,” Ms Iskra said.

“So being able to ask someone else to give their opinion on what’s going on… [is needed] so they can understand the things that are more important in terms of spending and that impact their credit risk. »

How Credit Scores Are Damaged

A common way people hurt their credit score is by not paying even small bills, Howen said.

“Any type of subscription or plan you have, or bills you miss – it’s going to show up on your credit report,” he said.

He said most people get caught up in smaller bills they forget about, like telecom bills, which can haunt them for years.

Ms. Iskra said sometimes you might not even be at fault because a credit company may have accidentally duplicated an application from your credit report.

To make sure that’s not the case, you can check to see if anything on your credit report has been listed twice, she said.

Investors Choice Mortgages director Jane Slack-Smith said sometimes a demerit on your report might not even be yours – for example, you might take the fall of a roommate who didn’t pay the bill on time even though you gave him the money.

That’s why you should request a free copy of your credit report and review it carefully, Slack-Smith said.

You can access your credit report from a credit reporting agency free of charge once every three months.

You can also request a free copy if you have been denied credit in the last 90 days or if your personal credit information has been corrected.

But beware: if your credit report has been requested too many times, it could set off alarm bells for potential future lenders.

How a bad credit score affects your loan application

If you’ve defaulted on a loan in the past, it could automatically disqualify you for a loan from another lender in the future, Mr Howen said.

Even if you end up paying the amount owed, it can take years for the default to clear from your credit report.

He said it could leave you stuck with “non-compliant” lenders who charge higher interest rates and are not regulated by the Australian Prudential Regulation Authority.

Ms Iskra said: ‘Having a good rating really allows you to have a better choice for a better range of options and to minimize costs wherever possible.’

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How to get student loans for parents with bad credit – Forbes Advisor https://sonowebs.com/how-to-get-student-loans-for-parents-with-bad-credit-forbes-advisor/ Fri, 04 Feb 2022 12:09:31 +0000 https://sonowebs.com/how-to-get-student-loans-for-parents-with-bad-credit-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Many parents wonder how they are going to pay for their child’s college education, especially since the cost of higher education seems to increase every year. However, borrowing for your child’s education […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Many parents wonder how they are going to pay for their child’s college education, especially since the cost of higher education seems to increase every year. However, borrowing for your child’s education can be more complicated if you have bad credit.

Fortunately, there are ways to find financing even if you have bad credit. Here’s what you need to know.

Start with Parent PLUS Loans

If you need to borrow student loans for your child, Parent PLUS Loans should be one of the first places you should look. These federal student loans allow you to borrow money on behalf of your child who is attending college. It covers the full cost of attendance minus any other financial aid the student receives, such as grants and scholarships.

For many, especially those with poor credit, federal student loans may be a better option than private debt. They are generally easier to obtain and everyone receives the same interest rates, regardless of your credit. They also come with greater protections, such as more flexible repayment options and forgiveness programs.

To qualify for a parent PLUS loan, you must be the biological or adoptive parent of a dependent undergraduate student who is enrolled at least part-time in school. In some cases, a step-parent may also be eligible.

While most types of federal student loans don’t require a credit check, a PLUS parent loan does, but there’s more leeway than you might think. To receive a PLUS loan, you cannot have “adverse credit,” which means you cannot have the following items on your credit report:

  • Overdue account balances totaling more than $2,085 over the past two years; or the same amount collected or paid in the last two years
  • A tax lien, foreclosure or repossession within the past five years
  • Garnishment of wages in the last five years
  • Cancellation of federal student debt over the past five years
  • Accounts in default in the last five years

If you don’t have a lot of credit to your name or your score is low for other reasons, chances are you’ll be easily approved. There is no minimum credit score requirement, and everyone who qualifies for a parent PLUS loan receives the same interest rate.

If you have experienced credit issues like those listed above, all is not lost. You may still qualify for Parent PLUS Loans, but you will need to take additional steps.

Consider adding an endorser

If you cannot qualify on your own, you can add an endorser to your application. An endorser, similar to a co-signer, is someone who has no adverse credit history and agrees to repay the loan if the parent cannot. The endorser cannot be the child receiving the loan, but it can be another family member or a close friend.

Becoming an endorser carries risks: the endorser is legally responsible for repaying the loan if the primary borrower fails to do so, and any missed payments or negative marks will also appear on the endorser’s credit. However, if you cannot qualify for a parent PLUS loan individually, adding a trustworthy endorser could help.

If you are denied, submit an appeal

If you meet all other loan requirements and can prove that your adverse credit history is due to extenuating circumstances, you may appeal to the US Department of Education. Although approval is not guaranteed, a call may increase your chances of qualifying.

For example, if you were denied a PLUS loan because you previously had an account in collections, you might win an appeal if you can prove that the account has since been paid off or that you have consolidated the debt and have access to debt. a recent file over-time payments. See more examples of how you might appeal an adverse credit history on the Federal student aid website.

If you end up getting an endorser or successfully submitting an appeal, you will need to complete a 30-minute online credit counseling session before the funds are disbursed.

Look at private student loans Next

If you don’t qualify for PLUS parent loans, consider private student loans for parents with bad credit. Private student loans are administered by institutions like banks, credit unions, and online lenders. Some private lenders offer parent-specific student loans, but in other cases, private student loans can be taken out by the student and co-signed by a parent or another adult.

For private lenders, a strong credit score and track record are an important part of eligibility. If you apply with poor credit, you may not qualify, or if you do, you will likely face higher interest rates than with federal student loans. If you don’t have enough credit to qualify, you can add a co-signer with good credit to your application.

When shopping for private student loans, it’s a good idea to compare lenders and their requirements. Many lenders allow you to prequalify before you complete a full application, so you can see if you might qualify for a loan before committing to anything. Since there are no universal standards among private lenders, you may need to go through this step with multiple companies to find a loan you qualify for.

4 alternatives to student loans for parents with bad credit

Having bad credit makes it harder to borrow money. If you’re trying to get your child’s education loans and you’re having trouble, there are some things you can do.

1. Look for grants and scholarships

Grants and scholarships – free money that does not need to be repaid – must be used before taking out any type of loan. The more free money your child gets, the less they will need to borrow (and repay).

There are many scholarship and grant databases that house billions of dollars in awards. Look for different types of awards based on race, gender, socioeconomic background, field of study, and even general interests of the student.

2. Help your child apply for loans

College students typically have more borrowing options for college than their parents — and many student loan products are designed for borrowers with little or no credit. This means it’s probably easier and cheaper for your child to borrow money for their own education.

For example, most undergraduates are eligible for subsidized and unsubsidized federal student loans, which have a fixed interest rate of 3.73% for the 2021-22 school year. These loans require no credit checks, only come into repayment after the student has left school, and have flexible repayment plans that can be based on the student’s post-graduate income.

If you think you’ll have trouble qualifying for a parent student loan, help your child research the options available to them. There will likely be more loan opportunities to choose from at lower rates than a parent with poor credit could find.

3. Work to increase your credit score

If you are determined to borrow parent student loans, build your credit as much as possible before applying. You can do things like:

  • Examine your credit report for errors. Review your credit report and verify its accuracy. If you find errors that hurt your score, you can submit a dispute with the relevant credit bureau. The office will investigate the complaint to determine if it is an error, and if so, the offending mark will be removed.
  • Repay old debts. If you are behind on payments, consider paying off all old debts you can. Whether it’s a hospital bill or an overdue credit card, it’s a way to boost your score. You may find that lenders are willing to work with you on a new payment plan if it means they get some money back.
  • Reduce your use of credit. Your credit utilization, also known as your debt-to-equity ratio, is an important part of your credit score. In short, it measures how much of your total credit limit you spend each month. If possible, keep your credit utilization below 30% to help your credit.

4. Consider other ways to help

If you’re struggling to find ways to pay for your child’s school, see if you can help in other ways. For example, you can reduce tuition costs by allowing your child to live at home while in school. If you think your child should be eligible for more financial help, you can help them appeal for more money.

If you have exhausted your other funding options, consider asking family or close friends to contribute towards tuition as a last resort. While it’s not an option for everyone, lean on your network if you’re lucky enough to have a family with means.

Before money changes hands, establish a written agreement (and repayment plan, if necessary) that works for everyone. This can help ensure everyone understands expectations and reduce misunderstandings later.

Student loans are an option, but not your only choice

Although loans are helpful for many students, other funding opportunities should first be fully exploited. Parents can help their children get all the free money they can by submitting the Free Application for Federal Student Aid (FAFSA) as soon as possible and applying for individual grants and scholarships.

Once this funding is exhausted, consider federal student loans to cover additional costs. If you still need more money after that, consider private student loans as a last option.

Compare student loan rates in minutes

Compare rates from participating lenders via Credible.com

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Best Loans for Bad Credit in 2022: Online Options https://sonowebs.com/best-loans-for-bad-credit-in-2022-online-options/ Wed, 19 Jan 2022 08:00:00 +0000 https://sonowebs.com/best-loans-for-bad-credit-in-2022-online-options/ While bad credit can make it harder to get affordable financing, it doesn’t mean you can’t qualify for a bad credit loan. You just need to look for lenders who offer financial products to people in your credit range. We’ve ranked and rated our partner lenders to help you find the best bad credit personal […]]]>

While bad credit can make it harder to get affordable financing, it doesn’t mean you can’t qualify for a bad credit loan. You just need to look for lenders who offer financial products to people in your credit range.

We’ve ranked and rated our partner lenders to help you find the best bad credit personal loans.

Note that we do not recommend any lender offering loans with APRs above 36%. Before turning to these loans, you should see if you can qualify for the lenders on this page, other loans with rates below 36%, or the alternatives highlighted below.

In this guide:

Best Personal Loan Companies with Bad Credit

Personal loan options for bad credit

  • Rates from 7.99% APR
  • You can check rates without hurting your credit score
  • Quick funding

Upstart logo

  • Rates from 8.13% APR1
  • Low minimum loan amount
  • 10-day grace period for late payment

Here are brief comments on our personal loan partners who offer loans to people with bad credit.

To improve

Rates (APR)

7.99%35.97%

Loan amounts

$1,000$35,000

Upgrading is a great option for borrowers on the upper end of the bad credit spectrum, as well as those who need smaller loans.

One of the benefits of upgrading is that you can check your eligibility and rates without affecting your credit score. Also, eligibility is based more on free cash flow compared to other lenders, so you may qualify for a lower rate with Upgrade compared to other lenders with bad credit.

  • Flexible credit to check rates: Yes
  • Filing deadline: The next day
  • Creation costs: 2.9% – 8%
  • Late charge: $10
  • Repayment Terms : 36 or 60 months

Reached

Rates (APR)

6.27%- 35.99%1

Loan amounts

$5,000$30,0002

Upstart is another great option for borrowers with bad credit because they offer competitive rates, a wide range of loan amounts, and funding as fast as one business day.3.

You can check your rates without affecting your credit score4 and use the funds for almost any expense. Note that the minimum credit score for Upstart varies depending on the state you live in.

  • Flexible credit to check rates: Yes
  • Filing deadline: As fast as one business day
  • Creation costs: 0% – 10%
  • Late charge: $5 or 15% of payment (whichever is greater)
  • Repayment Terms : 36 months or 60 months

>> Learn more: How to get a loan without a credit check

How We Choose The Best Bad Credit Loans

To find the best personal loans for bad credit, our editorial team analyzed each of our lending partners for BBB rating, Trustpilot rating, interest rates, loan amounts, terms, deposit times, fees origination fees, late fees, other fees, initial credit draw availability, perks, and more. Learn more about our ratings and methodology here.

If you want to see other options, check out these reviews:

Should you take out a personal loan if you have bad credit?

Why do you need it ?

If you have bad credit and are considering a personal loan, the most important thing you can do is ask yourself why you need this loan. If you’re paying off high-interest debt or have a pressing emergency, a personal loan may be a reasonable financing option.

However, since bad credit personal loans often come with extremely high interest rates and fees, the total cost of the loan is rarely worth unnecessary shopping. As such, you may want to consider other options before using a personal loan to buy a car, renovate your home, or go on vacation.

Can you improve your credit rating first?

If you have bad credit, it’s not the end of the world. You may still qualify for loans from some lenders, but you may decide to wait and improve your credit if you are rejected for a loan or want better interest rates.

There are many ways to improve your credit, but not all are quick fixes. The best way to improve your credit is to borrow responsibly and pay down your debt over time.

If you can increase your score to even 20 points, you may qualify for different lenders and better rates. This can have a huge impact on the final cost of your loan.

Be ready to repay if you take out a loan

If you need to take out a personal loan with bad credit, it’s imperative that you make sure your budget can accommodate repayment obligations for the life of the loan.

By making regular payments, you may find that a personal loan can help you build your credit; however, failure to make timely payments can have a negative effect, leaving your score even lower than it was.

>> Learn more: Where to find small personal loans

What about payday loans?

Although a payday loan may seem like an attractive option for those with bad credit, it generally represents one of the most dangerous loan products on the market today.

Payday lenders offer immediate cash in exchange for automatic payment (by post-dated check or direct debit agreement). However, the repayment includes the loan amount plus a significant amount of interest, often around 400%.

These loans often make it even harder to get out of debt and can hurt your financial future.

>> Learn more: Alternatives for getting out of the payday loan cycle

Alternatives to personal loans for bad credit

Before taking out a loan for bad credit, it is important to determine if there are cheaper alternatives that you can turn to. The main factor in the total cost of your loan (and most financial products) is the interest rate and associated fees.

Here are some guides to other financial products you may want to explore before taking out a bad credit personal loan:

Bottom Line: Finding the Right Bad Credit Loan

Although bad credit can make it harder to get a personal loan, it’s not impossible. There are several lenders who specialize in subprime loans and are willing to work with consumers with poor or no credit.

However, keep in mind that these bad credit loans usually come with high interest rates and limited terms. As such, it’s best to think about the reason for your loan and, if possible, work on improving your credit score before applying.


1 The full range of available rates varies by state. The average 3-year loan offered to all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646, including an origination fee of $626. The APR is calculated based on the 3-year rates offered in the last month. There is no down payment or prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.

2 Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be eligible for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.

3 If you accept your loan before 5 p.m. EST (excluding weekends and holidays), you will receive your funds the next business day. Loans used to fund education-related expenses are subject to a 3 business day waiting period between loan acceptance and funding in accordance with federal law.

4 When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and continue with your application, we will do another (hard) credit check which will impact your credit score. If you take out a loan, repayment information will be reported to the credit bureaus.

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Do you have bad credit Here are some options to explore https://sonowebs.com/do-you-have-bad-credit-here-are-some-options-to-explore/ Fri, 14 Jan 2022 14:30:09 +0000 https://sonowebs.com/do-you-have-bad-credit-here-are-some-options-to-explore/ Although you may think you don’t have many credit options, you don’t. In reality, there are many different credit cards you can apply for if your credit score is low. If you have bad credit, it’s a good idea to realize your options before getting approved for a new card. By doing this, you can […]]]>

Although you may think you don’t have many credit options, you don’t. In reality, there are many different credit cards you can apply for if your credit score is low. If you have bad credit, it’s a good idea to realize your options before getting approved for a new card. By doing this, you can ensure that you are applying for the right cards that will help boost your credit score.

Get a copy of your credit report

Your credit report is a record of your credit history, including information about the things you borrowed money for, such as car loans, mortgages, and credit cards. For each account, it shows whether or not you make your payments on time and the amount of your current debt. It also lists all accounts that have been reported to collection agencies.

The most important thing you can do if your score isn’t as good as you’d like is to check your credit report and fix any errors! By law, you are entitled to a free copy of your credit report each year. Get them, check them carefully and make sure there are no mistakes.

Consolidate your debts

Consolidating your debts is a great way to improve your credit score. You can consolidate debts from various sources. You can consolidate your loans, student loans, personal loans, car loans, credit cards, mortgages and even your cashfloat payday loans.

Dealing with multiple creditors is never easy, but it is definitely worth it because of the many benefits you can enjoy. Another option to consider is debt settlement. Debt settlement programs help you negotiate an affordable repayment schedule with each creditor to avoid bankruptcy. When you turn to this program, you must waive all rights to collect the full balance owing for each debt. However, this method may be worth considering if it saves you from filing for bankruptcy or puts an end to harassing collection calls.

There’s no quick and easy way to fix bad credit, but the work involved will be worth it in the end. And often the best way is to set small goals and gradually begin to achieve them one by one. You just have to take the first step!

Consider getting a credit card

Consider getting a credit card to improve your credit score. Many cards on the market can help you build your credit.

Before applying for a credit card:

  1. View your free annual copy of your credit report. This will give you an idea of ​​where you stand in terms of building or rebuilding your credit history.
  2. Keep a balance below 30% of your available limit. If you receive a card with a low limit, try not to charge more than 30% of that limit, if possible.
  3. Pay on time and in full each month.

Make sure you pay on time and in full each month, even if you don’t carry over a balance from month to month. Use the card frequently. Even for small purchases, use the card frequently to establish your payment history and show lenders that you are responsible for the money.

Check for errors and on your report

Here are the steps you need to take to make sure there are no errors in your credit report that could affect your ability to get approved for a loan or a new credit card.

Check for errors and challenge them. Then go through your reports for anything that seems strange or inaccurate. This can range from an old, unpaid bill (which you’ve since paid) to incorrect personal information like your date of birth or proof of address. It may also include incorrect addresses or phone numbers associated with you. If there is anything wrong with this information on your report, contact the appropriate agency to resolve this issue.

This is a sponsored feature

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11 Easy Ways To Get Free Online Content Today https://sonowebs.com/11-easy-ways-to-get-free-online-content-today/ Sat, 27 Nov 2021 19:35:00 +0000 https://sonowebs.com/11-easy-ways-to-get-free-online-content-today/ 11 Easy Ways To Get Free Online Content Today It’s amazing how much more your budget can go if you get a bunch of stuff for free. You just have to know where to look. We’ve done the hard work for you and found these 11 places to get everything from food and diapers to […]]]>


11 Easy Ways To Get Free Online Content Today

It’s amazing how much more your budget can go if you get a bunch of stuff for free. You just have to know where to look.

We’ve done the hard work for you and found these 11 places to get everything from food and diapers to gift cards, without paying a dime.

Now it’s your turn to take on the challenge: How much can you get for free this month?

1. Listen to recordings of today’s bestsellers

Love a good audiobook to help you fall asleep at night or to listen while driving to work in the morning? Sign up for a 30-day free trial with Audiobooks.com.

You will receive your first book for free, along with two bonus books from the VIP selection and unlimited access to audio news, magazines, summaries and the sleep and meditation section.

After your trial is over, it costs $ 14.95 per month to enjoy an audiobook and bonus VIP book each month.

2. Earn free shares in companies like Apple or Zynga

Office man finger touch hud, virtual screen with stock market changes, business candlestick chart graph.  Double exposure of blue and white lines, increasing number, online business

ImageFlow / Shutterstock

Several investing apps will give you free stock just for signing up.

However, some of these gifts are worth more than others.

When you sign up for a free account with Robin Hood, you will get a randomly selected share from the most popular stocks on the platform. Most users get a share worth between $ 2.50 and $ 10, but a lucky few will get a share worth up to $ 225.

A fresh Robinhood account no commission fees. The app makes it easy to start investing, whether you want to make your own trades or use ready-made funds designed to meet your investment goals.

3. Fill up on free infant formula

Sign up for Similac Strong Moms Rewards Program to get up to $ 400 in free plan samples, coupons, and other perks throughout the year.

You can sign up for freebies based on your baby’s needs, including Alimentum for Allergic Babies and NeoSure for Premature Babies.

4. Save money, get free gift cards

15% discount card is a lot of discount cards

smile23 / Shutterstock

Shopping in the capital is a free browser extension that you should bring when browsing a large site like Amazon. The extension will instantly check the price of the items you are viewing on other online retailers on the internet. It even takes into account taxes and shipping costs.

Then when you are ready to pay, it will automatically try to apply the discount codes that have worked for its other users in the past to your order.

On top of all this, Capital One Shopping tells you when you can get extra cash back for your purchases at a particular store (like Walmart or eBay), and you can use your cash back. in the form of free gift cards.

5. Try the free loose tea

Open Door Tea is a family-run, female-run teahouse in Stratford, Connecticut. In addition to the tasty meals and craft drinks on site, the company sells loose tea and tea items online – and they’re happy to let you ‘try before you buy’.

Order up to three free tea samples of any variety (subject to availability) and pay shipping costs only.

A sample bag includes two to four servings of tea, so these samplers could allow you to go through many fancy tea parties.

6. Get free cloth diapers

Apply with Share the Love to get a free set of washable diapers for your baby.

Low-income families who receive assistance through programs such as WIC or TANF may be eligible for free diapers through this program from the CEO of the Cotton Babies cloth diaper company.

You can pick up your free diapers from a host near you or have them mailed for a nominal shipping charge. You will get the diapers on loan for an extended period and will need to return them by a set date to potentially receive a new set as your baby grows.

7. Check your credit score for free at any time

Happy smiling latin man using a smartphone

Rido / Shutterstock

Credit bureaus are only required to send you a free credit report once every 12 months – and be warned, this report does not include your credit score.

But you can see your credit score and up-to-date credit report for free in two minutes using Sesame Credit.

You can sign up for Credit Sesame with just an email address (no credit card information required). You’ll need to enter some personal information to retrieve your credit history, but don’t worry: the company is BBB A + rated and uses bank-grade security to protect your financial data.

With a free account, you’ll see your credit score and credit history presented in an easy-to-understand “credit report card” that shows you exactly how to maintain or improve your score. In addition, you get free credit monitoring to alert you to important changes to your report, including potential fraud or identity theft.

8. Give your child free books (courtesy Dolly Parton)

Dolly Parton is a national treasure – for more than her dazzling looks and sparkling clothes.

Dolly Parton’s Imagination Library sends free books to 0-5 year olds all over the world.

Sign up for a program in your area to receive a free children’s book in the mail each month. Your children will love receiving the package in the mail and discovering their new book.

9. Get free products for various hair and skin types

ThePinkPanel is a consumer testing panel for women and non-binary people in the United States that sends you free makeup, hair, skin care, and personal care products to test at home.

Complete this survey to register and let the company know the types of products you are interested in.

If you are approved, you will get product samples to use at home in exchange for feedback. For some products, you will even get paid for your comments in addition to the freebies.

10. Get up to $ 35 of free baby items from Amazon

Waiting?

Set up a baby registry on amazon, and you’ll receive a free welcome box with up to $ 35 worth of baby and parent fun stuff.

The contents of your box are a surprise, so we cannot say for sure what you will receive. But we do know that baby registry gifts usually include free samples or life-size versions of things like formula, bottles, diapers, nursing supplies, and more.

An Amazon Baby Registry also includes the ability to list items from other sites, facilitate group gifts, and get a 10% discount on items left on your registry after all gifts have been purchased.

11. Nab 10 free reusable breast pads

No one says your nursing accessories can’t be fun and fashionable. Breast pads manufactures 100% cotton, machine washable and reusable nursing pads with beautiful designs.

You can get 10 pairs for free with the promo code 1FRUGALBÉBÉ.

The code gives you up to $ 35 off your order. To get 10 free pairs, order five packs of four (two pairs each) and enter the code at checkout. You may need to pay for shipping, and you can also choose whether or not to pay $ 0.98 for shipping protection.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


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How To Buy A Home With Bad Credit: 5 Tips For Getting Approved For Your Mortgage Application https://sonowebs.com/how-to-buy-a-home-with-bad-credit-5-tips-for-getting-approved-for-your-mortgage-application/ https://sonowebs.com/how-to-buy-a-home-with-bad-credit-5-tips-for-getting-approved-for-your-mortgage-application/#respond Wed, 03 Nov 2021 03:40:20 +0000 https://sonowebs.com/how-to-buy-a-home-with-bad-credit-5-tips-for-getting-approved-for-your-mortgage-application/ goodluz / Shutterstock.com Your credit history is one of the most important factors lenders consider when deciding whether or not to approve you for a mortgage to buy a home. Potential borrowers with bad credit may find it difficult to obtain a loan, but it might be possible to be approved despite a low credit […]]]>


goodluz / Shutterstock.com

Your credit history is one of the most important factors lenders consider when deciding whether or not to approve you for a mortgage to buy a home. Potential borrowers with bad credit may find it difficult to obtain a loan, but it might be possible to be approved despite a low credit score.

What is the minimum credit score for buying a home?

The exact credit score requirements vary by loan type and lender, but the following guidelines will give you a good idea of ​​what to expect:

  • Conventional loan: 620
  • Jumbo loan: 700
  • VA loan: No minimum imposed by VA, but lenders generally require a minimum score of 620
  • FHA loan: 500 with 10% deposit; 580 with down payment of 3.5%
  • USDA Guaranteed Loan: No USDA-imposed minimum, but lenders generally require a minimum score of 640

Good to know

Your credit score is not the only credit factor that affects your mortgage application. You will also need a recent on-time payment history. According to Gustan Cho of Gustan Cho Associates Mortgage Group, it is better to have a lower score without late payments in the past 12 months than to have a higher score with recent late payments.

How to buy a house with bad credit

You can make yourself a better credit risk in the eyes of potential lenders by putting the numbers in your favor.

1. Plan to pay at least 20% deposit

A large down payment increases your participation in homeownership and reduces the risk of default on your loan. Depositing at least 20% also allows you to avoid mortgage insurance, which protects lenders in the event of borrower default, but adds a monthly premium to your mortgage payments and costs you more at closing, according to the. Consumer Financial Protection Bureau.

2. Build up cash reserves

You’ll want to save at least two months of home payments, including principal, interest, taxes, and insurance, but some lenders require up to six months for riskier borrowers. Cash reserves include bank accounts, stocks and bonds, and funds acquired in retirement accounts and life insurance policies – money that you can withdraw quickly in the blink of an eye.

3. Reduce your debt-to-income ratio

Mortgage lenders want you to have a lower debt-to-income ratio because you’re more likely to fall behind on mortgage payments if you’re already juggling other debt. To determine your DTI ratio, add up your monthly debt payments and divide that number by your gross monthly income. The CFPB recommends a DTI ratio of 43% or less, but a ratio of 36% or less gives you the best chance of being approved for a loan.

4. Get a second job

A side concert will strengthen your mortgage application by increasing your income and reducing your DTI.

5. Reduce your loan-to-value ratio

The LTV ratio is the amount of your mortgage divided by the appraised value of the house you are buying. The lower the LTV, the less risky the loan will seem to the lender because you will have more equity in your new home. Keep your LTV low by looking for the right values ​​and making the biggest down payment you can afford.

How to improve your credit to get a better mortgage rate

If your credit rating is low due to financial mistakes you have made in the past, your goal should be to increase it so that you can not only qualify for a loan, but also get a competitive interest rate. .

Here’s what you can do to improve your credit score:

  • Check your credit report for errors: If you find any errors, contact the three credit bureaus with the appropriate documentation to correct them.
  • Pay bills on time: Paying on time is one of the best ways to improve your score.
  • Pay off the debt: Paying off debt, starting with collection accounts, will lower your DTI and could increase your credit score.

The bottom line

Buying a home with bad credit can be difficult, but it is not impossible. Increase your credit by reducing your debt, cleaning up your credit report, and saving a big down payment as well as cash reserves.

Elle Martinez and Michael Galvis contributed reporting for this article.

About the Author

Daria Uhlig is a personal finance, real estate and travel writer and writer with over 25 years of editorial experience. His work has been featured on The Motley Fool, MSN, AOL, Yahoo! Finance, CNBC and USA Today. Daria studied journalism at County College of Morris and received a communications degree from Centenary University, both located in New Jersey.


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