Entries from August 2011 ↓

College Student Credit Problems – How To Teach Your Kids To Prevent Them

Life Without Debt

With students always having the goal of going to college, it is no wonder their many years of hard work feels like a pay off once they finally graduate. What many of these students don’t learn about growing up is the importance of using money to pay off for many things in college, and how they will probably face many problems regarding cash. This is where most students grab the opportunity of credit cards to pay for all of their expenses. Once they are addicted, bad credit comes into play and it ruins them forever. That is why, as a parent, it is important that your teach your kids on how to prevent college student credit problems. College is where they are usually left alone for the first time, so this is the peak of when they need to learn. It has been reported several times that the creators of these credit cards have goals of aiming mainly towards the teenage group, as they can take advantage of them and make them feel addicted. This is not good for them because this may affect their credibility to obtain excellent credit scores in the future.

As a way to help them, instead of giving them credit cards for college students, why not give them a reloadable card instead? Reloadable cards are most recommended, as parents can just put more cash whenever their kids need to. Reloadable cards can help students keep good credit throughout their years, so this is a great option worth taking advantage of.

Aside from all the above tips, remember that nothing is better than simply explaining to your children the consequences of being obsessed with credit cards. It can be extremely bad for your kids to be obsessed with using it and it is best that you teach as early as possible. Introducing them to the way money works can be a great way to show them all about money and cards. Show them how you pay the bills, buy all their food and basically how you handle money using hard earned cash and not a credit card. This can truly help them in not depending on using credit to pay for everything.

When you introduce your kids to the dangers of not having good credit, it can help them along the way as they get older. Whatever you teach them and whatever advice you give them, will stay with them forever, especially during their college years.

Using Secured Credit Cards To Improve Bad Credit

Consumers are actively searching for information regarding secured credit cards to improve poor credit. Many people have bad credit scores due to missed bill payments or overdue student loans. People with a poor credit score are unable to qualify for a mortgage and may even have a difficult time qualifying for a decent rental property. It is crucial to repair bad credit and thankfully there are several great ways to improve a poor credit score. Some people benefit from financial consultation which helps them to catch up on missed payments and reduce interest rates. Other people need to find a way to demonstrate their reliability to lenders who see them as a high risk borrower.

People who are looking for information on secured credit cards can begin by searching the Internet. There has recently been a huge influx of online information on the topic of secured credit cards. Many people want to find out more about how secured credit cards can repair their poor credit score and get them back on the right financial track. Secured credit cards repair credit by giving people with bad credit the chance to prove that they can make monthly credit card payments on time.

Secured credit cards require a cash deposit. Most secured cards require $300-$500, but a few secured credit card companies accept a deposit as low as $100. The amount of the deposit will be the credit card limit, so those who want a higher limit on their credit card can choose to make a larger deposit. Some people prefer a credit card with a higher limit so that they can use it to book an airline flight, car rental or hotel room stay.

When comparing secured credit cards people should consider the interest rate of the card as well as the annual membership and finance fees that card holders must pay. People should choose a secured card with a low interest rate or a card that offers airline miles or other rewards and incentives. Don’t just go for the easiest credit cards to get.

Once someone gets a secured credit card they must make timely monthly payments to reestablish their credit. If they do not make their payments on time or fail to pay, their credit score will continue to decline. Those who make their payments on time can improve their credit and eventually get their deposit back when their secured card converts into a regular credit card.

Are there loans for small businesses?

Life Without Debt

Savings and loans are everywhere for everyone. Whether or not it is necessary to file for a loan, loans are just around the corner waiting and even sometimes already knocking down your doorsteps to be taken advantage of. Loans can be a personal loan or a business loan. Simple savings options are often unregarded of because of existing loan offers. Applying and be granted for a loan is clearly not a way on how to save money today.

Business loans do not have to be for a corporation loan because there are loans these days that are becoming available to small business owners. Like any other business loans, filing for a loan is not as easy as a personal cash loan. Over time, banks and other lending companies would require a business to provide proof that the borrower owns a stable business before being considered and granted a loan. Therefore, regardless of the business’s size, all that matters is that the level of risk that the business gives to a lender. The lesser the potential risk they see in a business, the better chance at being approved of the loan. Some of the factors lenders take a look into are:

* The business has to have a good credit standing. Good business credit score from the three major credit reporting agencies means lesser risk and it means a good chance at being approved.

* A positive business bank account rating. Most banks rate their customers through a different level other than what the credit bureaus do. Therefore, you check your bank’s history if it is fairly providing good feedback towards your business.

* Your business should have at least five vendor lines of credit. They want to make sure that your business is having a good relationship with other businesses in a variety of transactions specially payments.




*Your business should have atleast three revolving credit card accounts. This is to gauge your ability to make payments on time and staying on top of the business’s finances.

There are other factors that are looked into but it looks like everything boils down to your ability to deal with business accordingly. Check for yourself and make a fair assessment of your business. From the information that you will gather, you will pretty much get a clearer idea on where you stand when it comes small business loans.

Auto Loans for Terrible Credit

Life Without Debt

Most people cannot afford to pay cash for a brand new car. If you are like the 80% of people who need help when purchasing a car, you are probably searching for an auto loan. If you have good credit, there should be no problem applying for an auto loan so you can finally drive your dream car home. How about people who have terrible credit? Can they still get an auto loan? The answer is a big yes! Although auto loans may come few and far in between for people who have bad credit, it is possible to get one. You will just have to be patient and determined if you want one. Here are tips which can help you in your quest for bad credit auto loans.

Know you score ahead of time. If you are planning to apply for an auto loan in the future, you should know your score at least six months before you apply. This will help you take all the necessary steps to at least increase you score and get better rates when you apply for loans. This will also help you get prepared before you speak to lenders.

Prepare your documents. Gather all the documents which show your financial standing. This will include your current and your past employment records, as well as all the professional associations you belong to.  You can also include good driver discounts from your insurance company.

Once you apply for a loan, you should try to reduce the loan amount as much as possible. Take out only the amount which you can afford to pay. Do not get carried away when you apply for a loan. It can be very tempting to ask for a big amount but never do so. Whatever type of loan you apply for, even short term loan business owners, it is a must to only take out what you can afford to repay on time.

Struggling With Bills? Here’s 5 Tips To Help You Get Back On Track

Life Without Debt

Debt is like a pool of quicksand. The more we struggle to extricate ourselves from it, the more it seems to cripple our finances. Interest rates seem to grow exponentially, making it difficult to pay your bills let alone pare down your debt obligation. Often times this leads to people seeking help from a credit counselor, yet this may lead to an overall downgrade of your credit score.

Rather than plummet your credit even further, it may be wise to consider these 5 following tips for debt management. Not only will they help get your credit under control, but create good habits so that you avoid falling into the debt in the future.

1. Reduce Your Expenses

Debt is typically the product of a person living beyond their means. Formulate a list of your expenditures and determine which items are luxuries and which are vital. Although saving money on air conditioning or cooking cheaper meals can help, usually it’s the larger purchases that compound your debt problem. Try purchasing used items or more inexpensive alternatives to your daily habits. For example, instead of buying a monthly satellite TV package, watch your favorite programs online for free.

2. Get a Lower Interest Rate

Credit cards generally fleece customers with interest rates ranging from twenty to thirty percent. Even balance transfer rates will tack on a ten percent fee, turning an attractive five percent rate into a fifteen percent rate paid mostly up front. Consolidating your high interest debts into a single, low interest loan is an excellent to both simplify your obligation and lower your monthly interest payment. For those who don’t qualify for loan consolidation, a tax-deductible home equity loan may provide the relief you need.

3. Pay More Than the Minimum
The less you pay, the more you pay. While money may be tight, putting down only the minimum payment will result in you paying more in interest than the original cost of the loan. For example, a $1000 loan with a minimum payment of $25 will on average take 13 years to pay off in full. In addition, during that time the interest paid on that loan will range from $1000 to $1500 depending on the APR.

4. Use Cash

If you are having difficulty managing your existing credit, it goes without saying that you should remove credit from your life. Do not apply for new cards, regardless of what type of deal they are offering. Interest free deals will either force you to spend more than you intended or apply the interest if you fail to pay off the card in a certain time frame. Pay for everything with cash. If you don’t have the cash on hand to purchase something, it’s beyond your means. Make a clean break.

5. Alter Your Payment Times

Credit card and other late fees are a huge factor in the rising debt crisis. A major reason individuals fall victim to these fees is due to an arbitrary payment time. In many instances a person will receive their paycheck days after their bills are due, resulting in a late payment and an accumulation of fees. Try contacting the billing party directly and negotiate a due date that comes after your paycheck. Otherwise you may need to set aside just enough money to meet the minimum payment, followed by a larger payment once your paycheck has arrived.

Article by Jess Hampers of credit report. Jess writes about a variety of finance related topics including credit score tips and information.

Getting the Best Mortgage Quotes

Life Without Debt

You certainly want to get the best mortgage quotes that you can before you make up your mind. This is a huge commitment, and the best deal can save you lots of money over the term of your mortgage.

Shop Around

Make sure you shop around to find out what the rates are, loan fees, and more. What you will discover is that different lenders offer different options. This can be a highly competitive market too, so that is in your favor. Never assume the first lender you talk to has all the answers. You won’t know though until you compare what others are telling you.

Check your Credit

It may surprise you to learn how many people have errors on their credit report. When that occurs, their interest rate can be much higher than it should be. You have to be an advocate for yourself and check this out before you get a mortgage. Go through all of the details on your credit report. If it all checks out then great, but if it doesn’t you need to take action. It can be a long process to get corrections completed, but well worth it when it comes to the terms of your mortgage loan.

Check the Rates

The rates for mortgages change often, but see what those rates are. When you find that they are very low you want to take action. They aren’t guaranteed to stay there so you don’t want to wait around. If you find that the rates are very high, it may not be the best time to consider buying a home. Keep all of this in mind and do your homework so that you won’t have such surprises.

Consider Buying Points

If your credit isn’t the best or rates seem to be high at the time you need to buy a home, consider buying points. By paying such fees to the lender or a broker, then you will be able to get a lower rate of interest. Talk to them to see what the fees are and how many points you may be able to purchase.

Down Payment

One of the biggest expenses with a mortgage is the amount of money you have to put down. Some lenders require 20% of the purchase price for the home. Other loans though require very little down or nothing at all. Make sure you check this out so that you aren’t struggling to come up with lots of money for that down payment.

Negotiate the Price

You can always make a offer on the purchase price of the home too. You don’t have to agree to the cost the seller is asking for. The worst case scenario is that they could come back and say they don’t accept your offer. They may give you a counter offer or you can place another offer to them that is higher. It is certainly worth it to negotiate because you will often find they do accept the offer, and you pay less for your mortgage.

The author gives advice on home loans and how you can get the mortgage deal