The Meaning Of A Bad Credit Loan

A personal loan offered for bad credit to customers is a bad credit loan. Its repayment terms are not fixed and hence it will suit the person who takes the loan. In a way it is like taking the first step towards rewriting your credit history. If the person is above the age of 18 and a permanent resident of the country, and who is employed, then he is eligible to apply for this loan. They may need to use it to pay for some important personal event.

The Options Available If A Consolidation Loan Is Not Granted

If one is applying for a debt consolidation loan, it will not be granted if you have debts to clear and also a bad credit history. The lenders do not think that you will be able to pay back. The only options available for you are Personal Insolvency Agreement or Debt Agreement. There are a few people who are ready to sanction a personal loan even with a bad credit history, but then you will be charged a high rate of interest. A few kinds of bad credit loans are payday loans, car loans and home loans

Other Options Available For Repayments Of Debts

A debt agreement is another option available for those who cannot pay back the entire amount of debt, but have funds to repay a part of it. If you are not able to get a personal loan because of bad credit history, this is a good alternative. All the debts are brought under one umbrella. All loans that are not secured like old utility bills, credit cards, personal loans, repossessed cars, will be pooled together. You are required to make one regular payment weekly, fortnightly or monthly. No legal action can be taken against you and there will be a freeze on the interest charges. Finally whatever you cannot repay is cancelled.

The Concerns Of Proposing A Debt Agreement

Since the person who intends a debt agreement, commits an act of bankruptcy which means that if the proposal is not accepted by the creditors, an application can be made to the court to declare the debtor bankrupt. The debtor’s chances of obtaining any loans even personal loans for bad credit will be affected since his name will be mentioned in the credit reporting organisation’s records and this will remain there for about seven years. Secured creditors can sell any asset that was offered as security in case of a default. The payments made towards unsecured creditors are only in proportion of their debts. Debt Agreement should be applied for, only if there is no chance of repayment of loans on time, otherwise debt consolidation is better.

How to Get Approval for a Home Mortgage Loan

If you are planning to apply for a home loan, check out the following helpful tips to get your application approved.

Know Your Credit Score

Credit activity and credit scores will greatly affect your mortgage approval. Lenders usually require minimum amount of credit score that should be maintained so that your conventional mortgage loan request will not be denied.

Also, having derogatory credit information might hinder mortgage approval. To avoid unwanted denial of your requested loan, you should lower your debts, pay bills on time, and fix errors on credit reports.

Save Your Cash

Mortgage lenders require down payments which depend on the kind of loan. If you have the means, pay a higher down payment. This will lower your balance and alleviates your private mortgage insurance.

Down payment is not the only fee you should be worrying about. Acquiring a mortgage also involves home inspections, title searches, closing costs, application fees, credit report fees and other fees. Save up cash for these payable fees.

Stay at Your Job

Changes on your employment and/or income status will have a major effect on the mortgage process. The information you provided in your application will be the basis of your home loan approval. Giving up a job to be self-employed or getting a lower paying job will make a wrench in the plans, leading to a reevaluation of your finances to check if you’re still qualified for the loan.

Pay Debt & Avoid New Debt

Qualifying for a loan doesn’t require that your credit card be zero balance. But, it’s better that you owe less to your creditors. Your debts determine whether you will get a mortgage or not. Also, it will determine how much you will acquire from the lender. When you have many credit card debts which makes your debt ratio high, the lender might refuse your loan request or provide a lower mortgage.

However, even though you get approval for a mortgage with debt, it is advised that new debt should be avoided while under the mortgage process. Before the mortgage closing, lenders recheck credit and when they found out that there are new debts they can stop the closing.

Have Pre-Approval for a Mortgage

Having your home loan pre-approved will help you determine what you can afford before bidding on properties and what interest rate should you be paying on the loan.

Determine What You Can Afford

Choose a home that will fit your budget. Though some lenders pre-approved applicants for more than what they can afford, be smart, live within your means and purchase a home that you can afford.

Taking Advantage Of A New York Car Loan

New York car buyers can benefit from a car loan, since it gives them an extended amount of time

to pay for their car. If their income increases, then the fixed cost of the loan will decrease as

a percentage of their total income.

We witness and era of machineries, automatic means to make our life easier, along with a burst of the automobile industry, as man’s most comfortable and easiest way to commute from one place to another. t would seem that cars multiply as days go by, and at first glance, many would say that everyone can afford to buy one. Their prices vary considerably; if some are highly expensive, there are a whole lot more, for the average consumer, which can be bought. However, many cannot buy one because of inadequate cash, and no matter how cheap, it still remains unreachable, and not for few. For them, the car loan is the helping hand and the key.

Many researches have agreed that buying a car with the help of a loan, remains the most profitable way to purchase a car, as opposite to traditional car finances, or car dealers, which are rather expensive and even risky. Certain costs may be kept hidden from you, but will reveal themselves when may be perhaps too late. If you fail to pay a few months in a row, the car will be seized and they are not joking. Another factor why the car loan is better than any other method of finance is that it gives you the freedom of haggling with the price of the car, even when finding the actual loan, as well. The dealers offer packages, which you are not obligated to accept. Thus, car loan offers a cost-effective means of getting the favorite car in your name.

Hidden Advantages of Outsourcing Services for the Car Loan Industry

Let us face the reality that today, we live in a ‘do-it-yourself’ way of life. As they should, people want to show off their auto repairs, home improvement projects, and many other tasks that majority of us would more often not seek professionals to perform the task, as they just prefer to do it by themselves.

It is absolutely a great value in a number of ways. You can gain expertise from your experience. Sometimes, it does not necessarily mean that it is a better way to go from doing something by yourself because oftentimes, it pays more to hand over and look someone for help.

Many of the car loan businesses are beginning to worry about not only getting in the game but also in maximizing their returns with all sizes racing to compete in the lending market. To outsource car loan business services, many industry experts understand that it is often considered more cost-effective.The most obvious reason for doing this is because industries don’t have to hire new staffs or underwriters solely for car loan operations and services. You have to keep in mind that those industries are also avoiding the other expenses related to assisting the infrastructure associated with an internal underwriting team.

But the advantages don’t stop there because there are a number of hidden advantages that many businesses fail to consider when entertaining ideas of outsourcing their car loan business processing that includes staffing and funding. Here are some of the hidden advantages of outsourcing for car loan business:

Increase the Number of Loans that Leads to More Net Profit

Just consider it as any consumer business committing to sales. As this dealer management is all about being able to see, looking for your niche and catering your offers to the biggest needs of your dealers. Better and stronger relationship with dealers and having more dealerships in the network in order to drive portfolio growth is one of the end goals of outsourcing some services when you are in the car loan business.

Improved Relationships with Customers

Your staff will be able to intensify its focus on strengthening relationships with your customers- making visits, gathering feedback and better addressing their needs that will drive growth for your car loan business portfolio.

A Guideline that Allows the Outsourcing Provider to Serve as an Extension of Your Car Finance Team

Your outsourced car loan provider should be able to efficiently, quickly, and easily customize its financing scorecard to fit your representation. By doing this, it guarantees that making a decision for car loan financing is consistent and fits your appetite and business plan.

Access to Consultation and Expertise

It allows your business to avoid common pitfalls that businesses fall victim to when trying to get in-house functions off the ground when outsourcing your car loan business processing. Through outsourcing, those businesses must hire the expertise that is readily available.

After-Hours Process

By waiting until the next business day to respond to proposals, don’t miss out on those deals especially over the weekend when many consumers have time to hunt for motorcycles, cars, and trucks.

It will absolutely offer a significant benefit over businesses with in-house operations that are confined to traditional business hours when you have an access to after-hours processing service.

Are you ready to revolutionize the way you do business? Grow your business by outsourcing.

Three Proven Techniques For Car Loan Approval After Bankruptcy

Most consumers associate bankruptcy with reduced credit options. The reason for this is that many people know for a fact that it will be very difficult for them to get good financing deals once they have filed for bankruptcy. How come?

Well, most lenders today tend to shy away from extending credit accounts to consumers who possess bad credit reports, especially those with bankruptcy records. After all, they do not want to take on the huge risk involved in allowing these consumers to assume credit lines.

Still, you have to remember that bankruptcy should not be the end of your credit history. This is because there are a lot of great financing deals that you can take advantage of once you have successfully fixed your bad credit report. But how can you do this?

One way to regain your financial health is to apply for an auto loan. Below we have tackled three proven techniques that you can employ for you to instantly get approved for a car loan. This way, you can have a credit account that you can use to gradually repair your bad credit history.

Three Techniques for Car Loan Approval

1. Know the requirements and guidelines of lenders. Even with a bankruptcy record on your credit file, you can still inquire about the common requisites for different car loan programs. You just need to approach a prospective lender and ask about the guidelines of the auto loans they offer. Then tell him upfront that you have had discharged your debts through bankruptcy and you wish to use a car loan to repair your credit history. Your honesty will surely encourage the prospective lender to come up with a program that will suit your personal and financial situation. And he will surely be glad to assist you regain your credit reputation by approving your application for a car loan.

2. Know your credit standing. Once you have determined the requirements for a car loan, your next step will be to prepare all the necessary documents that you have to submit to your chosen car loan provider. For sure you will be asked to provide the most recent copy of your credit report to your lender. This is why you have to obtain a copy of your credit file from any of the three credit reporting agencies.

After receiving your credit file, scrutinize the entries on your report carefully. See to it that your credit report is free from any errors and inaccuracies that can inflict further damage to your credit standing. If you see one, then file a letter of dispute to the three credit reporting agencies right away. This way, they can immediately investigate your records and eliminate the mistake or incorrect entry that you have observed on your credit file. This will in turn ensure that you will eventually receive a more accurate credit report that you can present to your lender once you have filed your application for a car loan.

3. Consider refinancing. After your application for a car loan has been approved, always look for opportunities to refinance your credit account. In line with this, you have to make sure that you pay all your credit charges on time and in full each month. Eventually you may qualify for lower interest rates and fees which will allow you to repay your car loan in the soonest time possible. And for sure this will help you finally recover your financial health.

Follow these techniques and for sure you can get approved for a car loan that you can use to rebuild your credit history, even after you have filed for bankruptcy

Victims of Fraud and Identity Theft – Think Cash and Payday Loan Customers

Beware – Scam and Fraud Alert for Present and Past Payday Loan Customers

Let’s face it, every once in a while, the average American may find him/herself in a financial bind. There are always the unexpected or unprepared for expense, like a medical emergency, car repair or busted air conditioning unit. Yes, life has a way of presenting us the sudden financial woe that was not included on our budget. It may be that payday is a mere week or month away and we find ourselves having to turn to a payday loan or cash advance lender. Most financial institutions strongly advise against these lenders due to their excessively high interest rates but oftentimes, when faced with extenuating circumstances, one has no other choice.

Unfortunately, there is now a more dangerous or sinister side to these cash advance loans. Customers of these lenders, have now become the target of scam artists.

A few years ago, I too had such an emergency and availed of a necessary cash advance, not withstanding the interest rates. Certainly, there are times when one is in a desperate situation and such lenders are readily available to provide a loan that one may not have otherwise been approved for, at a conventional bank or credit union. I was granted the loan, and had it repaid within a two month period. Months after, I received a telephone call from a gentleman with an accent, claiming that he represented Think Cash Loans and that my account had been in a negative standing and that there was in fact an unpaid balance. He insisted that I take care of the balance immediately, amounting to several hundred dollars. This individual was privy to my name, address, social security number and work information. Though I was certain that the debt had been repaid, having someone sound this convincing and credible did for a minute, create a substantial degree of doubt in my mind. I asked that he mail me an invoice. He asserted that my account was beyond written communication and that the matter could only be resolved with an immediate credit card payment. I refused to make any payment and subsequently informed the gentleman that I would have to further research my records to determine if there had been an oversight on my part.

Later, I did a search on the telephone number from which his call originated, only to find out, that others had received similar calls from that same number and that it was nothing but a scam seeking to swindle this company’s present and previous customers.

Maybe the most disturbing fact here, is that these persons are privy to very sensitive information. One may be led to wonder by what means is this information being accessed. Is this an inside job whereby the lender’s staff is selling customer information? Is it a hacking incident, where scammers are able to retrieve information on present or past loan customers? Regardless, Think Cash Loans needs to look into the matter of security and the buyer needs to BEWARE!! Did you know that there is a correct procedure to handling collections and collection calls?

A dear friend has unfortunately fallen prey to this scam. Sadly, after the person on the other side of the telephone line quoted her social security number, she gave her credit card information and now the rest is history. Maybe she can file a claim that it was a fraudulent transaction. Maybe she will get her money back, all nine hundred dollars of it, maybe she won’t. In the meanwhile there is an unscrupulous scam artist, somewhere out there, with her personal and banking information.

This article is by no means an attempt to defame the name of this lender or deface its character, but rather an attempt to alert the public to a very deceptive practice by scam artists to use “Think Cash Loans” and other cash advance lenders’ customers, as their next scamming target. This is to remind the reader to totally investigate any telephone request for unpaid balances. Take the time to contact the lender, regardless to the persistence of the caller and verify balances and claims that balances have been sent to collection agencies. If you have the slightest doubt, stop and check it out. Do not ever remit payments on the telephone unless you are absolutely certain of the one on the other line. Make no mistake, these individuals make quote your social security number!!! They will sound very legitimate. They will be threatening!! It is all up to us, the consumers, to stop and check the source of the call. It will only take a couple of minutes to contact the lending company, to determine whether or not there is in fact an unpaid balance.

The Department of Justice has a treasure load of information about different types of scams and hoaxes on its website. It also does well in defining identity theft and identity fraud. They have several examples of schemes and offer several tips on how to secure your identity and what to do in the event that it is compromised.

If you were unfortunate to fall victim to this or any scam, immediately report it to the police and contact the company the person claimed to be representing. You may need to alert your banking institution, cancel bank cards or accounts that you gave to the scammer. I strongly advise everyone reading this article to investigate the benefits of credit monitoring Some companies will for a reasonable and minimal fee, keep your credit screened for any enquiries or attempts to open new lines of credit. The peace of mind of having such a service, sometimes offering up to a million dollar guarantee is worth its weight in gold. The support that most reputable credit monitoring services offer, should the safety of your identity or the integrity of your credit be compromised, is immeasurable.

Be aware that there are many, many unscrupulous individuals out there, whose sole intent, is to prey on the weak. They will use any means necessary to get into your wallet. They are evil individuals who have absolutely no conscience. They will steal from babies and the aged without a shred of remorse. Let us be more aware that they are out there and take better precautions to safeguard our assets and our identities.

Upside Down on Car Loan – Chapter 13 Cram Down Provisions and Chapter 7 Redemption

Clients often find themselves in need of debt relief because of a car loan gone badly.

Modern day society necessitates owning and maintaining an automobile which sometimes evolves into a devastating financial burden. Lenders are quick in financing vehicles knowing borrowers highly prioritize automobile transportation over most other financial obligations. Even borrowers with bad credit are fitted into an automobile financing packages priced at high interest rates to compensate aggressive lenders for the added risk.

Financial difficulty often arises from auto financing. The happy car buyer drives their new vehicle off the lot financed nearly 100%. As the saying goes, almost immediately thereafter, the new vehicle depreciates in value several thousand dollars before it is even hits the highway.

Automobile transportation costs $ 4,000.00 to $ 6,000.00 annually including auto loan payments, liability and collision insurance, repairs and maintenance and gasoline.

Havoc begins when an unexpected car repair not covered by warranty, or a motor vehicle accident, unexpectedly and substantially decreases the value of the vehicle far below the outstanding loan balance owed to the bank. Or, perhaps more harmlessly, on a trade-in for a new vehicle where eager car salespersons and lenders agree to take in your old vehicle on trade, and throw the remaining outstanding balance from your old car loan (for a little higher payment) on the back-end of your new auto loan leaving the new car buyer considerably 'upside-down' on the new vehicle purchase.

These situations leave the borrower in a predicament where sizable portions of income are devoted towards covering an unsecured auto debt obligation that is of no use towards sustaining modest costs of necessities for family living.

Under certain circumstances relief from these devastating financial predicaments can be obtained through a bankruptcy filing.

CHAPTER 13 CRAM DOWN PROVISIONS

Under Chapter 13 of the United States Bankruptcy Code, Debtors are permitted to 'Cram Down' the unsecured portion of their auto loans to the fair market value of the vehicle securing the loan. This requires debtors to pay back only the secured portion of the auto loan, but the unsecured balance is treated as a general unsecured creditors providing substantial benefit for the Debtor, permitting Debtor to only pay a small fraction of the unsecured portion of the auto loan debt that is owed.

As an example, let's suppose our debtor owns a car worth $ 10,000.00 and there is an auto loan with a payoff balance of $ 20,000.00. In this scenario, the loan is only partially secured. The auto lender is secured only to the extent of the value of the vehicle or $ 10,000.00. The remaining $ 10,000.00 balance on the loan is unsecured. In this situation the Bankruptcy Code affords the Debtor the right to cut off the unsecured portion of the auto loan and treat that portion of the loan as unsecured. So, if General Unsecured Creditors were only receiving a dividend of 20%, the auto lender would receive only $ 2,000.00 on its unsecured portion of the auto loan.

These situations become sticky between Debtor and Lender because often disagreements arise as to the correct value of the vehicle. Your bankruptcy attorney will need to negotiate a settlement over the valuation before confirmation of the Debtor's Chapter 13 plan.

Valuation is guided under provisions of the United States Bankruptcy code, specifically 11 US Code § 506 – Determination of Secured Status.

11 USC §506 (a) (2) specifically states:

"If the debtor is an individual in a case under chapter 7 or 13, such value with respect to personal property securing an allowed claim shall be determined based on the replacement value of such property as of the date of the filing of the petition without deduction for costs of sale or marketing. With respect to property acquired for personal, family, or household purposes, replacement value shall mean the price a retail merchant would charge for property of that kind considering the age and condition of the property at the time value is determined "emphasis added

The Cram Down provision under the bankruptcy code also provides for a reduction of the interest rate on the auto loan. Often Debtors find themselves shelling out enormous auto payments used to cover exorbitant interest rates auto lenders often charge to risky borrowers.

An interesting exception was enacted under the 2005 Amendments to the United States Bankruptcy Code prohibiting cram downs where the purchase money auto loan was originated within 910 days (2 ½ years) of the filing date of the Chapter 13 bankruptcy [see 11 USC §1325 ( a) (9)]. Debtors must consider timing of a Chapter 13 filing if they desire to escape the burden of a burdensome auto loan debt. Bankruptcy rules require car loans taken out within 2 ½ years of the bankruptcy filing must be paid as agreed.

CHAPTER 7 REDEMPTION

Cram downs are not permitted under Chapter 7 bankruptcy (or 'straight bankruptcy'). But, Chapter 7 debtors are permitted to 'redeem' personal property under 11 USC §722.

11 USC §722 provides as follows:

"An individual debtor may … redeem tangible personal property intended primarily for personal, family, or household use, from a lien securing a dischargeable consumer debt, if such property is exempted under section 522 of this title or has been abandoned under section 554 of this title, by paying the holder of such lien the amount of the allowed secured claim of such holder that is secured by such lien in full at the time of redemption. " emphasis added

Redemption, however, can be difficult under Chapter 7 because debtors must pay upfront in full a lump sum of cash an amount sufficient to pay the secured portion of the auto loan measured by the fair market value of the vehicle at the time Debtor seeks to redeem the vehicle. Chapter 7 does not permit a restructuring of the loan, but sometimes the auto lender will accept payments over time, but usually within a short term.

CONCLUSION

If your vehicle is worth less than you owe on it, bankruptcy options can be advantageous towards affording you to retain your vehicle and move towards better financial health.

Chapter 13 can reduce or 'cram down' your loan balance and interest rates thus lowering your auto payment making it affordable. Chapter 13 also enables you to restructure past due auto payments and spread them over the term of the Chapter 13 plan so you can afford to catch up the past due payments within your personal financial means.

Chapter 7 bankruptcy does not accommodate restructuring of loan repayments but the §722 redemption provisions allow debtors to purchase their vehicles out of bankruptcy for the fair market value of the vehicle, leaving the unsecured portion of the debt discharged under the Chapter 7 bankruptcy.