How to Restore Your Credit Rating
Often a person’s credit rating has been destroyed due to no intention on their part. It was not planned that way it just happened. I got carried away with a credit card so to speak and it just overwhelmed me is a common refrain. Once into debt it is often very difficult if not impossible to get out. On top of that your credit rating may be in not good shape or even in shambles.
How can you restore your credit rating? A person’s reputation and to an extension their credit rating is among the most valuable of assets, Like a mirror once sullied it can be most difficult if not impossible to restore the mirror to its original previous state.
What can be done? It all comes down to personal honesty and consistent efforts at repairing your credit history and creating a new and outstanding current credit report. It all comes down to personal honor, integrity and sincerity.
If you are sincere about your efforts a lot can be done over time. It is not hopeless; if on the other hand you are setting yourself up for another run at the bank then you will not succeed and make it tremendously worse for yourself for ever. If you lie to people once it can be called a mistake, an error. If you lie again you will forever branded as a villain.
It is interesting that those who have “bad credit “or “bad car credit or financing: issues do not even see themselves as in the wrong. Indeed Robin Hood and Saddam Hussein saw themselves as great benefactors. It all depends on the perspective so to speak.
In your situation however you wish to restore your standing and credit history. Without a valid credit history you may well find that your options in life are more limited. The tentacles of credit reports go far and wide. Anyone knows with a Paypal account or credit card can source a wealth of information. A potential employer for a good job, that pays well, may not hire you as a result of a poor credit report. Ditto that for landlords as well as new and used car dealers. You may find it very hard if not impossible to obtain a credit card. Sure you may think that credit card was the evil apple of the Garden of Eden that got you into this fix in the first place. However if you wish to go on a vacation both the hotel and auto rental agencies may demand a credit card for their services.
What are the steps to restore your credit history and report? First visit your local credit reporting agencies. The major credit reporting agencies are Equifax, Transunion and Experian. Remember all of these companies share information routinely so that you’re the data and your efforts on one report will spread to the others as a matter of routine and modern systems. You can visit or phone the offices personally. There are services on the internet but with your credit problems, hence no charge card, for reasons of confidentiality of billing to another person’s card this may be out of the question.
Ask for a copy of your credit report. By law you are entitled to it. Remember to bring a number of acceptable photo identification.
Next go down the list of creditors and people you have not paid. By far the worst thing that you can do if you owe money is to ignore a creditor. Let me repeat that – the worst thing that you can do with a creditor is to ignore the creditor.
Visit the creditor if possible. If that is not possible personally phone. Only as a last resort should you send an email. Apologize to that person and tell them that you are in the process of cleaning up your debts. Explain that you will be sending them an amount on a regular basis. If the numbers are so big that you can never pay off the amount at least make a stab. Perhaps the other person will have written off the debt in their mind as uncollectible and will regard this as “found money”. Regardless of this your attempt to communicate rather than ignore the creditor will melt the heart of almost even the most cold hearted lender.
It is as if you are a widow whose husband earned the money and took of all the financial affairs. The new widow has a blank spot for a credit history. You are in a similar situation of creating a new and proper credit history.
Start a saving account. Place a regular deposit in that bank saving account. If you are working and have a job this can be done painlessly through automated deposits from your paycheck.
Once you have built up a balance in your bank or credit union savings account ask to take out a small loan with the balance of the savings account as collateral. Pay back that loan on time and promptly. Do this over a number of times.
Next the bank may even issue you with a charge card. Only use a charge card where you place a pool of money as a fund that you spend and nothing more. Use this charge card for routine everyday purchases to build up a monthly balance and cash flow.
Again it is most important that you pay all bills on time never skipping or missing a payment.
There is no secret to restoring a damaged credit rating. It comes down to personal integrity, trust and consistency of actions.
Showing posts with label credit. Show all posts
Showing posts with label credit. Show all posts
Friday, February 5, 2010
Tuesday, February 2, 2010
Remortgage With Adverse Credit – Why Past Mistakes Needn’t Hinder Your Future Home Ownership
It’s easier than ever to borrow money – in 2007, the average consumer borrowing via credit cards, overdrafts and unsecured personal loans was £4550 while the average amount of interest paid by every household is £3525.
For most people repayments on credit cards, mortgages and other borrowings are an essential but manageable part of life. Being able to borrow money lets you buy what you need when you need without having to save for years and years.
It’s a fine balancing act to meet repayments every month and still have enough left over to live. A slight change in circumstances can throw this off balance. It’s easy to find yourself in a position where the debt repayments start to outweigh your living expenses – you may feel that the only way to get enough money for the basics is to borrow more money.
There are companies who are experts in helping customers get back on track – in our experience many people find themselves in debt through no fault of their own. Often redundancy, illness or traumatic and stressful events such as divorce or bereavement lead to credit difficulties.
Once you have missed a mortgage payment it can be extremely difficult to get back on track – especially if you have other credit problems. A single missed payment is enough to create a bad credit rating while more serious arrears will inevitably lead to repossession proceedings.
Similarly, when other creditors seek settlement on their bills due to non-payment, you could find yourself with County Court Judgements against you.
The bottom line is that CCJs, mortgage arrears and other debt problems can quickly lead to a bad credit rating – and once you have a bad credit rating you will find it extremely difficult to borrow money.
Even if you have cleared you debt and are now financially secure it could be extremely difficult to remortgage your house with adverse credit history.
The good news is that there is help available.
Most mortgage lenders specialise in what are called “prime” borrowers – that means they won’t consider applications from those with bad credit history. Essentially that makes it extremely unlikely that a direct application to a High St lender will be successful.
However there are mortgages for people with bad credit history. Even if you’ve been turned down elsewhere, the chances are you can be helped.
For starters, the specialist companies have a great deal of experience with customers with bad credit history – they know the stress it can cause and the impact it can have on your life. Whether you’re trying to get on the housing ladder for the first time or attempting to remortgage your home in order to clear your debt problems, they work to help you find a mortgage that will suit your needs.
Sub Prime Remortgage brokers work with a large panel of lenders who offer highly competitive rates and terms for those who need to remortgage with adverse credit history. Working with these lenders they’re able to create a package that suits your needs and can help you alleviate the debt situation almost immediately.
For most people repayments on credit cards, mortgages and other borrowings are an essential but manageable part of life. Being able to borrow money lets you buy what you need when you need without having to save for years and years.
It’s a fine balancing act to meet repayments every month and still have enough left over to live. A slight change in circumstances can throw this off balance. It’s easy to find yourself in a position where the debt repayments start to outweigh your living expenses – you may feel that the only way to get enough money for the basics is to borrow more money.
There are companies who are experts in helping customers get back on track – in our experience many people find themselves in debt through no fault of their own. Often redundancy, illness or traumatic and stressful events such as divorce or bereavement lead to credit difficulties.
Once you have missed a mortgage payment it can be extremely difficult to get back on track – especially if you have other credit problems. A single missed payment is enough to create a bad credit rating while more serious arrears will inevitably lead to repossession proceedings.
Similarly, when other creditors seek settlement on their bills due to non-payment, you could find yourself with County Court Judgements against you.
The bottom line is that CCJs, mortgage arrears and other debt problems can quickly lead to a bad credit rating – and once you have a bad credit rating you will find it extremely difficult to borrow money.
Even if you have cleared you debt and are now financially secure it could be extremely difficult to remortgage your house with adverse credit history.
The good news is that there is help available.
Most mortgage lenders specialise in what are called “prime” borrowers – that means they won’t consider applications from those with bad credit history. Essentially that makes it extremely unlikely that a direct application to a High St lender will be successful.
However there are mortgages for people with bad credit history. Even if you’ve been turned down elsewhere, the chances are you can be helped.
For starters, the specialist companies have a great deal of experience with customers with bad credit history – they know the stress it can cause and the impact it can have on your life. Whether you’re trying to get on the housing ladder for the first time or attempting to remortgage your home in order to clear your debt problems, they work to help you find a mortgage that will suit your needs.
Sub Prime Remortgage brokers work with a large panel of lenders who offer highly competitive rates and terms for those who need to remortgage with adverse credit history. Working with these lenders they’re able to create a package that suits your needs and can help you alleviate the debt situation almost immediately.
Tuesday, January 5, 2010
Protect Credit Card Numbers At All Costs
Owning a credit card is a true benefit for most individuals. Credit cards allow people to purchase items, both large and small, without the need to pay with cash. Credit cards also allow consumers to purchase expensive items that may not be affordable without the ability to pay gradually.
Credit cards do have many positive aspects. Not only have they helped advance the economy, but they have also improved ability for people to buy things they want and need. However, there is a certain amount of responsibility that credit card owners must accept so that they do not get into credit card trouble. The most obvious responsibility of a credit card owner is to make sure to not accumulate too much credit card debt. Yet, it is also extremely important to make sure to keep credit card numbers safe and secure.
Most people who watch television news or read local or national newspapers on a regular basis have heard about increased incidences of credit card number theft. This is a huge problem which is becoming more and more prevalent as people are increasing the frequency they use credit cards both in person an electronically over the Internet.
Following are some easy ways to help protect personal credit card numbers. Most of these tips are based on common sense, but they are all important to re-emphasize again and again.
Sign It
Many people receive new credit cards in the mail and without signing them, stick them in their wallets. This is not a good idea. If those wallets are stolen or lost, anybody can take the credit cards and forge signatures on them, making it very easy to use the credit cards before they are reported lost or stolen.
Don't Give Numbers to Strangers
It seems so obvious that it's not a good idea to give credit card numbers to complete strangers, but individuals do it all the time. When a solicitor calls on the telephone offering to sell something or asking for a donation, there are many unsuspecting individuals who willingly give their credit card information to the caller, not truly knowing who is on the other end of the phone. A good rule of thumb is to only use credit cards over the phone when the credit card holder initiates the call.
Get the Right Card Back
It's extremely common for a waiter in a restaurant to handle several credit cards at any given time, and to accidentally return the wrong credit card with a receipt to the incorrect person. Unfortunately in restaurants, many people do not take a few seconds to check and make sure they've put their own credit card into their wallet, and then they discover the mistake hours or even days later.
Shred Receipts and Statements
It has been increasingly uncommon for receipts from credit card purchases to show an entire credit card number. However, some still do and these receipts can cause potential problems for credit card holders. In addition to receipts, credit card statements normally do include entire account numbers, which can make it easy for potential credit card number thieves to obtain information. Knowing this, it's important to shred all paper (receipts, account statements, and any other document containing credit card information) prior to throwing it in the trash can.
Check Statements Carefully
Some people's credit card numbers have unknowingly been stolen from them, and the only way they find out is by carefully checking monthly credit card statements for unauthorized charges. Anyone who does not check credit card statements with a fine tooth comb every month may be paying for charges they never made. While this practice is not exactly a tactic for avoiding credit card number theft, it is a good idea on how to stop it if it does occur.
It's is the responsibility of credit card owners to do everything possible to ensure that their credit card numbers remain protected and private. This can usually be accomplished by following good common sense and adhering to simple tips on how to keep credit card information concealed as carefully as possible.
Credit cards do have many positive aspects. Not only have they helped advance the economy, but they have also improved ability for people to buy things they want and need. However, there is a certain amount of responsibility that credit card owners must accept so that they do not get into credit card trouble. The most obvious responsibility of a credit card owner is to make sure to not accumulate too much credit card debt. Yet, it is also extremely important to make sure to keep credit card numbers safe and secure.
Most people who watch television news or read local or national newspapers on a regular basis have heard about increased incidences of credit card number theft. This is a huge problem which is becoming more and more prevalent as people are increasing the frequency they use credit cards both in person an electronically over the Internet.
Following are some easy ways to help protect personal credit card numbers. Most of these tips are based on common sense, but they are all important to re-emphasize again and again.
Sign It
Many people receive new credit cards in the mail and without signing them, stick them in their wallets. This is not a good idea. If those wallets are stolen or lost, anybody can take the credit cards and forge signatures on them, making it very easy to use the credit cards before they are reported lost or stolen.
Don't Give Numbers to Strangers
It seems so obvious that it's not a good idea to give credit card numbers to complete strangers, but individuals do it all the time. When a solicitor calls on the telephone offering to sell something or asking for a donation, there are many unsuspecting individuals who willingly give their credit card information to the caller, not truly knowing who is on the other end of the phone. A good rule of thumb is to only use credit cards over the phone when the credit card holder initiates the call.
Get the Right Card Back
It's extremely common for a waiter in a restaurant to handle several credit cards at any given time, and to accidentally return the wrong credit card with a receipt to the incorrect person. Unfortunately in restaurants, many people do not take a few seconds to check and make sure they've put their own credit card into their wallet, and then they discover the mistake hours or even days later.
Shred Receipts and Statements
It has been increasingly uncommon for receipts from credit card purchases to show an entire credit card number. However, some still do and these receipts can cause potential problems for credit card holders. In addition to receipts, credit card statements normally do include entire account numbers, which can make it easy for potential credit card number thieves to obtain information. Knowing this, it's important to shred all paper (receipts, account statements, and any other document containing credit card information) prior to throwing it in the trash can.
Check Statements Carefully
Some people's credit card numbers have unknowingly been stolen from them, and the only way they find out is by carefully checking monthly credit card statements for unauthorized charges. Anyone who does not check credit card statements with a fine tooth comb every month may be paying for charges they never made. While this practice is not exactly a tactic for avoiding credit card number theft, it is a good idea on how to stop it if it does occur.
It's is the responsibility of credit card owners to do everything possible to ensure that their credit card numbers remain protected and private. This can usually be accomplished by following good common sense and adhering to simple tips on how to keep credit card information concealed as carefully as possible.
Sunday, January 3, 2010
Protecting Your Credit Card Information Online
One of the biggest trends of today's world is shopping online. It is convenient, easy, and saves a great deal of time, not to mention that it, in many cases, saves you a great deal of money at the same time. However, while shopping online is the latest and greatest trend for consumers, hackers and other dishonest people have also turned to online shopping as a way to obtain credit card information for fraudulent use.
You take a risk every time you use your computer and the internet to do your shopping, however, if you know what to do and what to look for, you can take steps to ensure that you do everything possible to protect your credit card information.
Safe and Secure – That's the Ticket
Before you start shopping on ANY website and provide your credit card information, you want to be sure that the website you are shopping with has taken measures to secure your order and payment. There are two specific things you want to look for:
Encryption Sign
Secure Website Address
The encryption sign can be found on the bottom of the webpage you are viewing. This typically looks like a padlock. An "open" padlock indicates that the website is not secure. It will not encrypt your credit information when you provide it. A "closed" padlock indicates that the site is using security and encrypts the information you provide. Typically, this is shown on the website page that is asking for this information.
A secure website address is a good way to tell that the information you provide is secure as well. When asked to provide your credit card information look at the website address. https:// indicates a secure website; http:// indicates that the website is not secure.
Check Your Credit Card
It is advisable to make sure you understand the terms and conditions of your card, as well as benefits. Use only cards that protect you and your liability if something were to occur. Some credit cards protect you entirely against credit card fraud while others will have a liability limit.
It is a good idea that you keep track of your credit card statements and your purchases. If you notice things out of place, it is important to contact your credit card company immediately to take action and remedy the situation.
Know Where Your Information Is Going
It is important to read the terms and conditions of use for the website you are shopping from, as well as the privacy policy. The information contained in both of these documents should inform you as to how, when, and where your information is stored, if it is at all.
The most important thing in protecting your credit card information is that you trust the website you are conducting online shopping with. Some things to ask yourself include:
Does their privacy policy protect my information?
Does the company sell my information to other companies?
Did I read the fine print and understand it?
Does the company store my credit card information?
If so, where is this information stored? An online database, their own business files, or both?
When filling out credit card payment forms, what information is required?
The security for many online shopping sites has been beefed up. At one time, it was only necessary to provide your credit card number, expiration date, name, and address. Well, it turned out that hackers and scammers had the ability to obtain this information in multiple ways. Now, more and more sites are requiring that you provide the CVC2 code, which is a series of three digits located on the back of the credit card.
Make sure the site you do your online shopping with is secure, safe, and requires the information you deem pertinent to ensure fraudulent activity does not occur on their site.
You take a risk every time you use your computer and the internet to do your shopping, however, if you know what to do and what to look for, you can take steps to ensure that you do everything possible to protect your credit card information.
Safe and Secure – That's the Ticket
Before you start shopping on ANY website and provide your credit card information, you want to be sure that the website you are shopping with has taken measures to secure your order and payment. There are two specific things you want to look for:
Encryption Sign
Secure Website Address
The encryption sign can be found on the bottom of the webpage you are viewing. This typically looks like a padlock. An "open" padlock indicates that the website is not secure. It will not encrypt your credit information when you provide it. A "closed" padlock indicates that the site is using security and encrypts the information you provide. Typically, this is shown on the website page that is asking for this information.
A secure website address is a good way to tell that the information you provide is secure as well. When asked to provide your credit card information look at the website address. https:// indicates a secure website; http:// indicates that the website is not secure.
Check Your Credit Card
It is advisable to make sure you understand the terms and conditions of your card, as well as benefits. Use only cards that protect you and your liability if something were to occur. Some credit cards protect you entirely against credit card fraud while others will have a liability limit.
It is a good idea that you keep track of your credit card statements and your purchases. If you notice things out of place, it is important to contact your credit card company immediately to take action and remedy the situation.
Know Where Your Information Is Going
It is important to read the terms and conditions of use for the website you are shopping from, as well as the privacy policy. The information contained in both of these documents should inform you as to how, when, and where your information is stored, if it is at all.
The most important thing in protecting your credit card information is that you trust the website you are conducting online shopping with. Some things to ask yourself include:
Does their privacy policy protect my information?
Does the company sell my information to other companies?
Did I read the fine print and understand it?
Does the company store my credit card information?
If so, where is this information stored? An online database, their own business files, or both?
When filling out credit card payment forms, what information is required?
The security for many online shopping sites has been beefed up. At one time, it was only necessary to provide your credit card number, expiration date, name, and address. Well, it turned out that hackers and scammers had the ability to obtain this information in multiple ways. Now, more and more sites are requiring that you provide the CVC2 code, which is a series of three digits located on the back of the credit card.
Make sure the site you do your online shopping with is secure, safe, and requires the information you deem pertinent to ensure fraudulent activity does not occur on their site.
Thursday, December 31, 2009
Privacy Protection In Today’s Mortgage Climate
Most savvy consumers these days are taking steps to ensure their privacy and avoid unsolicited calls or a mailbox full of junk. There are laws in place that give us a bit of control when it comes to how our information is being used and by whom. The problem is these laws can only help if we know how to protect ourselves. Most understand that unless they "opt out" after a transaction, many companies will sell their information to other businesses.
Trigger Leads
One of the most alarming of these scenarios is what the three main credit bureaus are doing. When you apply for a home loan with a carefully chosen mortgage company, your credit will need to be checked to determine precisely what interest rate you will qualify for. Once your credit is pulled from one or more of the three credit bureaus; Experian, Equifax and TransUnion, the bureaus know that you are in the market for a mortgage.
Without your permission, these bureaus are using the initial inquiry as a trigger, and are turning around and selling your detailed information to companies who are in direct competition with the mortgage company you chose to work with. These competitors pay for this privileged information and are willing to do whatever it takes to recoup that cost. Too often this includes underhanded and misleading tactics.
It is not uncommon for a consumer to be contacted by a new mortgage company claiming to have been referred to them by the consumer's original broker. They may also employ "bait and switch" tactics to lure a customer in with an enticing offer which they may not really qualify for, and then switch them to another, often more costly product without notification.
The trigger lead trend has lessened somewhat in recent months as the mortgage sector has cooled. But it would be wrong to think that it's no longer a threat to consumer privacy. As loan requirements have become stricter, the call for viable mortgage leads has reached a crescendo. And that means homeowners with good credit scores are very likely to find their information being sold in the form of a trigger lead.
A few states, like Minnesota, have introduced strict legislation prohibiting credit bureaus from selling trigger leads. But most states are acting very slowly on the issue for a variety of reasons, and Federal action seems unlikely. The Federal Trade Commission claimed in March 2007 it lacks the legal authority to tackle unwanted trigger lead solicitations. So it is vital consumers empower themselves to combat this trend.
Protecting Yourself
There are things you can do to prevent yourself becoming just another trigger lead. Under Federal law, the consumer credit reporting industry is required to provide a way for consumers to "opt out" or remove their name from these lists. You can call (888) 567-8688 or go online to www.optoutprescreen.com and opt out for 5-years or for life. If you choose the lifetime option, you will be required to complete and sign a form. They don't make it easy to opt out for life for obvious reasons, but it may be worth it to you.
In addition to protecting yourself from these mortgage shenanigans, opting out with the credit agencies will also protect you from pre-approved credit offers arriving by mail. These direct mail credit offers are a major annoyance for many homeowners and one of the main sources of identity theft in the US today! And don't forget the National Do Not Call List, which can help protect you from unsolicited telephone inquiries.
Shopping Around
Many consumers like the idea of "shopping around" for the best loan. And it's a good idea to make sure you're getting the best deal available. But such a strategy should be done on your own terms, and not at the whim of companies who disclose private information for their own profit.
If you're looking to compare multiple loan options that are tailored to your unique needs and want to be sure you're getting the best rate, companies like America's Lending Partners offer free consultation with in-house mortgage experts who, with your approval, will seek out and negotiate with lenders on your behalf. Unlike checking around with individual lenders who will each check your credit separately, such services can pull your credit report one time, shop around for you, and provide you with the comparisons you want without the need for numerous damaging inquires.
And when you start working with a broker or lender make sure you note down your contact's name and phone number, along with the name of their company. If someone suspicious calls up claiming to work for that company, or to have been referred to you by that company, call your contact back and double check it with them. Also, beware of new mortgage companies contacting you out of the blue and making you offers which seem too good to be true: often they are! As a rule of thumb, only work with the companies you contacted.
Conclusion
Whether you are looking to purchase a new home or refinance your existing home, make sure you protect your privacy. Before you begin the mortgage process, prepare by opting out of unsolicited offers, and arm yourself with the knowledge that you don't have to become another trigger lead. Even in a deflated mortgage market, you have significant control over who you work with to achieve your new mortgage.
Trigger Leads
One of the most alarming of these scenarios is what the three main credit bureaus are doing. When you apply for a home loan with a carefully chosen mortgage company, your credit will need to be checked to determine precisely what interest rate you will qualify for. Once your credit is pulled from one or more of the three credit bureaus; Experian, Equifax and TransUnion, the bureaus know that you are in the market for a mortgage.
Without your permission, these bureaus are using the initial inquiry as a trigger, and are turning around and selling your detailed information to companies who are in direct competition with the mortgage company you chose to work with. These competitors pay for this privileged information and are willing to do whatever it takes to recoup that cost. Too often this includes underhanded and misleading tactics.
It is not uncommon for a consumer to be contacted by a new mortgage company claiming to have been referred to them by the consumer's original broker. They may also employ "bait and switch" tactics to lure a customer in with an enticing offer which they may not really qualify for, and then switch them to another, often more costly product without notification.
The trigger lead trend has lessened somewhat in recent months as the mortgage sector has cooled. But it would be wrong to think that it's no longer a threat to consumer privacy. As loan requirements have become stricter, the call for viable mortgage leads has reached a crescendo. And that means homeowners with good credit scores are very likely to find their information being sold in the form of a trigger lead.
A few states, like Minnesota, have introduced strict legislation prohibiting credit bureaus from selling trigger leads. But most states are acting very slowly on the issue for a variety of reasons, and Federal action seems unlikely. The Federal Trade Commission claimed in March 2007 it lacks the legal authority to tackle unwanted trigger lead solicitations. So it is vital consumers empower themselves to combat this trend.
Protecting Yourself
There are things you can do to prevent yourself becoming just another trigger lead. Under Federal law, the consumer credit reporting industry is required to provide a way for consumers to "opt out" or remove their name from these lists. You can call (888) 567-8688 or go online to www.optoutprescreen.com and opt out for 5-years or for life. If you choose the lifetime option, you will be required to complete and sign a form. They don't make it easy to opt out for life for obvious reasons, but it may be worth it to you.
In addition to protecting yourself from these mortgage shenanigans, opting out with the credit agencies will also protect you from pre-approved credit offers arriving by mail. These direct mail credit offers are a major annoyance for many homeowners and one of the main sources of identity theft in the US today! And don't forget the National Do Not Call List, which can help protect you from unsolicited telephone inquiries.
Shopping Around
Many consumers like the idea of "shopping around" for the best loan. And it's a good idea to make sure you're getting the best deal available. But such a strategy should be done on your own terms, and not at the whim of companies who disclose private information for their own profit.
If you're looking to compare multiple loan options that are tailored to your unique needs and want to be sure you're getting the best rate, companies like America's Lending Partners offer free consultation with in-house mortgage experts who, with your approval, will seek out and negotiate with lenders on your behalf. Unlike checking around with individual lenders who will each check your credit separately, such services can pull your credit report one time, shop around for you, and provide you with the comparisons you want without the need for numerous damaging inquires.
And when you start working with a broker or lender make sure you note down your contact's name and phone number, along with the name of their company. If someone suspicious calls up claiming to work for that company, or to have been referred to you by that company, call your contact back and double check it with them. Also, beware of new mortgage companies contacting you out of the blue and making you offers which seem too good to be true: often they are! As a rule of thumb, only work with the companies you contacted.
Conclusion
Whether you are looking to purchase a new home or refinance your existing home, make sure you protect your privacy. Before you begin the mortgage process, prepare by opting out of unsolicited offers, and arm yourself with the knowledge that you don't have to become another trigger lead. Even in a deflated mortgage market, you have significant control over who you work with to achieve your new mortgage.
Sunday, December 27, 2009
Need A Loan? Guess The Interest Rate
How do you find the best interest rates if you’re planning to apply for a loan? Until relatively recently, it was simple. There were plenty of lists of comparative rates published in table form on various websites. You could take your pick and investigate the terms of the cheapest lenders. This approach is not so easy any more.
Many banks are choosing to use a new system where the rate offered is dependent on your personal credit profile. At first glance, this appears to be a very fair system, but in fact would-be borrowers will have no idea of what interest rate they’ll be offered and so will be unable to make comparisons.
The Halifax, HSBC and Bank of Scotland have all switched to personal pricing and no longer advertise typical rates. In fact, most of the twenty leading lenders have adopted this method. The result of this is that customers applying for a loan will have very little idea of what rate they’ll be offered, or whether they’ll be accepted. This is a ridiculous situation as no should have to go “blind” into a credit application without a good idea of the interest rate.
It’s difficult to find out the rates by multiple loan applications, as each credit application is marked on your credit file. Lenders are understandably concerned where there have been excessive searches carried out and therefore the apparently simple process of achieving the best rate for your loan could affect your credit rating!
Even applying to your present bank for a loan will still require a credit check, but you may be able to gain some idea of what the interest rate is likely to be and most banks would, presumably, like to keep your business.
A representative of one of the leading banks has said the lending is on dangerous ground at present and that there are huge debt problems in the UK. Because of this, loan applications are increasingly likely to be rejected.
Where banks are still advertising headline interest rates it appears that lenders are failing to follow through with offers to a high proportion of applicants. Those who are successful are often offered a higher rate than the one advertised.
The Consumer Credit Act 2004 stipulates that lenders who advertise loans using a typical rate must lend money at that rate to at least 66% of successful applicants. Obviously by not showing a commitment to a rate, lenders can evade this rule.
A recent survey showed that, of almost 3,000 people who applied for a loan, 40% were refused almost immediately and 25% were accepted without delay. However some days later the remaining applicants were still waiting for a reply and it is expected that a further 17% will fail to be granted the rate they applied for.
There are a great many people applying for loans with the lowest headline rates and very many of them are going to be disappointed. Doubly so, as with every rejection they are putting the chance of obtaining a loan from another lender in jeopardy.
A browse through the internet will find you an advisor who should be able to offer some guidance and help you to avoid any nasty surprises.
Many banks are choosing to use a new system where the rate offered is dependent on your personal credit profile. At first glance, this appears to be a very fair system, but in fact would-be borrowers will have no idea of what interest rate they’ll be offered and so will be unable to make comparisons.
The Halifax, HSBC and Bank of Scotland have all switched to personal pricing and no longer advertise typical rates. In fact, most of the twenty leading lenders have adopted this method. The result of this is that customers applying for a loan will have very little idea of what rate they’ll be offered, or whether they’ll be accepted. This is a ridiculous situation as no should have to go “blind” into a credit application without a good idea of the interest rate.
It’s difficult to find out the rates by multiple loan applications, as each credit application is marked on your credit file. Lenders are understandably concerned where there have been excessive searches carried out and therefore the apparently simple process of achieving the best rate for your loan could affect your credit rating!
Even applying to your present bank for a loan will still require a credit check, but you may be able to gain some idea of what the interest rate is likely to be and most banks would, presumably, like to keep your business.
A representative of one of the leading banks has said the lending is on dangerous ground at present and that there are huge debt problems in the UK. Because of this, loan applications are increasingly likely to be rejected.
Where banks are still advertising headline interest rates it appears that lenders are failing to follow through with offers to a high proportion of applicants. Those who are successful are often offered a higher rate than the one advertised.
The Consumer Credit Act 2004 stipulates that lenders who advertise loans using a typical rate must lend money at that rate to at least 66% of successful applicants. Obviously by not showing a commitment to a rate, lenders can evade this rule.
A recent survey showed that, of almost 3,000 people who applied for a loan, 40% were refused almost immediately and 25% were accepted without delay. However some days later the remaining applicants were still waiting for a reply and it is expected that a further 17% will fail to be granted the rate they applied for.
There are a great many people applying for loans with the lowest headline rates and very many of them are going to be disappointed. Doubly so, as with every rejection they are putting the chance of obtaining a loan from another lender in jeopardy.
A browse through the internet will find you an advisor who should be able to offer some guidance and help you to avoid any nasty surprises.
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