Bad credit scores would make your life miserable. You will have to pay higher interest rates on whatever loans you take out, your insurance premiums will be larger and also you will have to pay higher amounts as security deposits for your utility and phone services. Of course all this happens only when your application does not get rejected due to a poor credit score. Bad credit score would also prevent you from obtaining the loan amount you require to purchase your dream home, get your dream job, or even sign up for the insurance policy you wish to have.
Credit scores are basically three digit numbers that are used by lenders to measure your creditworthiness before offering you a loan. Before the event of the financial crisis, people were able to take out loans with best possible terms with a FICO credit score of just 720. Also, people with low credit scores were offered decent terms on loans by most lenders. But, in recent years, especially after the financial crisis, lenders tend to demand for a minimum of 740 FICO credit score to offer borrowers the best terms on their loans.
If any borrower carries a low credit score than the expected limit, he or she would be offered a loan with higher rates of interest and absolutely inflexible terms, and in worst cases, their loan applications get rejected. This situation makes it pretty evident that a good, perhaps an excellent credit score is of much importance for any of the services you wish to have, right from getting a telephone line to getting a mortgage loan.
If you happen to have a low credit score at present, here are some tips that can help you rebuild your credit score:
It has been found that several credit reports contain errors. Some of those errors can even affect your creditworthiness to a great extent. Therefore, before you apply for a loan or for any other service, remember to pull out your credit report from one of the credit bureaus and check for disparities. If you happen to find any major errors, like reports of late payments which were actually made on time or change in your account number, etc., immediately apply to the bureau for the correction to be made and have it rectified.
One of the fastest and best ways in which you can rapidly improve your credit score is by paying off certain debts of yours, like a credit card debt. As credit cards come under the category of revolving lines, the balances you keep on them will be considered more important than that you have on other types of loans like mortgage loans, student loans, car loans, etc.
In order to obtain a secured credit card, you will be required to make a deposit of something between $200 and $2000, which will considered as collateral against the card. Use this card regularly, yet lightly, and remember to pay it back on time.Read More
Small business owners who are in need of urgent cash for any of their business needs have a blooming industry that is all set and ready to fund them: merchant cash advance lenders. This industry, which is basically a decade old, has seen considerable growth in the past couple of years, and what fuels its demand is the stiff credit environment. Merchant cash advance is basically a lump sum, normally within $150,000, offered to a business owner in return for a share of the business’s future sales.
Merchant cash advance funding option mainly targets businesses in the hotel, retail and service industries that carry very strong credit card sales, but are not eligible to apply for a conventional business loan due to the possession of bad credit status or very less or no collateral. And as a result of rapid approval and instant gain of business capital, this funding option has currently become the go to, though risky, source of finance for certain small business owners.
When you are planning to expand your business or equipment fails all of a sudden, or your office building needs a renovation, merchant cash advance comes up as the best available solution, of course, unless you possess some equity on your home or any other viable property, you have no other collateral that can help you obtain a conventional small business loan. If you are lucky enough, you might come to know of banks that offer Small Business Administration Express loans, usually up to $50,000.
If you happen to get one such loan, then you are fortunate enough to end up with reasonable rates. However, on the flip side, Express loans can also take weeks for approval and involve a lot of paperwork, which might not be ideal for you if you do not have enough time. In such a circumstance, you have no other option but to approach a merchant cash advance lender who can provide you with the necessary amount within a span of few days. Your bank statements and merchant processing statements will be reviewed by the lender.
If you are considering about taking out merchant cash advance, first insist to have a look at all the associated costs upfront, and be sure that you comprehend each and every charges and fees. Secondly, you should be clear of the terms offered to you. Certain loans will require you to provide a percentage of your daily sales to the lender and few others will end up debiting a particular amount from your account on a daily basis. Make sure you will be able to afford such payments.
Ask for a projected Annual Percentage Rate (APR) that the cash advance company is going to charge you on your loan. This will be helpful in comparing the rates with that from other lenders in the market. You can also consider about taking out equipment leases or business credit cards, as an alternative to merchant cash advances. In order to get the best possible rate, you should always shop around and compare the rates offered by different lenders.Read More
There’s an excuse for lenders who’re financial organizers that can help in determining the very best means to fix tailor towards the financial necessity of the customers. These mortgage advisors are very well outfitted using the financial understanding, abilities and knowledge about a large network of contacts to secure the very best loan with respect to the customer. Although a lot of people lengthy to possess their very own home, it’s a challenging task with no preferred financial revenue. A home loan could be among the possible options to carry out that path. One might need to consider several aspects in acquiring a home loan with the best large financial company around.Read More