Posts filed under 'Credit Repair'
How payday loans work ?
Payday lenders make a fortune by preying on consumers who have limited access to other forms of credit.Loans payday loan offers come from out-of-state lenders, because the amount of interest that can be charged by a New York lender is set by law. Cashing in on high interest rates — and the borrowers inability to make payments — is the payday loan sting.
Lenders offer high interest loans guaranteed by your paycheck. Say, for example, you receive an offer to borrow $100 for two weeks. You might be asked to give the lender a personal check for $115. That $15 fee is the same as paying interest at an annual percentage rate (APR) of 391%. Since many of these loans are offered on-line, the loan is made electronically.
The lender holds the check until the next payday and then deposits it. You redeem the check by paying the $115 in cash. Or you can pay another fee to extend the loan (“rollover”) for another two weeks. Eventually, rollover fees will be higher than the original loan amount.
August 17th, 2007
There are good refinancing options available for those with bad credit unlike many years ago. And the process is not much different than that it is for those with good credit. One option is to consult a an adviser specializing in mortgages for those with bad credit. A careful evaluation of credit score will also help a lot.
Being honest and providing complete information to the mortgage adviser will only help your cause. Keep record of your credit score. It helps in the log run for comparison. In the U.S., each citizen is entitled to one free credit report per year from each of the major credit reporting agencies. Homeowners can obtain these reports for use in making comparisons to the previous credit scores. Negatives like bankruptcies, delinquent or missed payments are often erased from the credit report after a certain period of time.
Contrary to general belief, even those with poor credit have the ability to lower their interest rate by purchasing point. A point is typically equally to 1% of the total loan amount and may translate to a ¼ of a percentage point on the interest rate. You can also take a call on the type of loan that you choose, e.g. fixed rate mortgages, adjustable rate mortgages (ARMs) and hybrid mortgages.
You can get all the information about mortgage,refinance and bad credit here.
author: Jasper knowapp from http://finance-mortgage-credit.info
August 9th, 2007
It’s not your fault if you foreclosure is staring you in the face right now. After all it’s that mortgage broker guy’s fault. He recommended that 2 year adjustable mortgage in the first place. No, wait a minute; it’s the lender’s fault for even offering these self-destructive loans. They were just setting me up for foreclosure with no way to go about avoiding foreclosure.
In the end, I know that the fault is mine and mine alone. Now what to do? First things first, understand that foreclosures are stopped all day every day. You are not helpless there are many strategies you can employ to stop your foreclosure and even terminate a pending auction.
Of the 100 thousand plus families that will face foreclosure this month a large percentage can avoid foreclosure and put all back in order. Instead they will make terrible decisions as one is want to do when under pressure. Avoiding foreclosure is very possible if you know your rights. Make it a point to know your rights!
July 27th, 2007
Need extra money to hold you over until your next paycheck?, you can apply for a payday loan or a check loan online. with a Bad Credit payday or Cash Advance Loan no credit check is required ; indeed, with online lenders, you may not even need to physically see the lender.
Having bad credit does not disqualify you from a payday loan. The money is often deposited into your account the same day you apply for the loan, and you can use it for whatever you need . Anyone with a checking account and steady income may be eligible for a directly deposited loan of $1000 or even more.
** payday loans should be used only as a one-time, emergency source of funding, and not as an ongoing expense **
payday loans should only be used in emergencies, as the fees charged for these loans can be much higher than traditional bank loans. payday loans can become extremely costly, especially if you use them often or require pay off date extensions. It is possible to be approved and get even $1000.00 or more put into your checking account on the day of application, if you decide that a short term payday loan is your best option.
Each lender sets their own payday loan interest rates. With some lenders, both new and old customers can obtain discounted rates. Once the lender company has the required data from you, approval time may take less than an hour, and then funds may be deposited into your account that very same day. Approval may be based on your last pay check stub and bank statement; but this requirement probably will not delay receipt of your loan.
Bad credit should not have affect your application for a payday loan. You are verified by the information you supply, not by a credit check.
lenders companies will only contact your employer to verify employment, and do not check your credit report.
Applying and being approved is fast and easy. Your application gets approved fast by online lenders, which means you get the cash you need equally fast, often on the same day.
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Hector Milla at http://www.BestAdvanceCash.com shows you how to get the Best Cash Advance Loan Online quickly, legally and with low rates. Visit for further information.
July 19th, 2007
Top Ten Credit Tips
1. Use disclosure box to shop for the best deals
Inundated with credit card offers? Well, the best way to sort through to find the best deal for yourself is to go strait to the “disclosure” box. It is required by law to tell you everything. If the interest rate seems too low, go find out what the interest rate really is in the disclosure box.
2. Get your FREE credit report with no strings attached http://www.annualcreditreport.com/
3. Use a your check register to track expenditures
Whenever you charge something record it in your check register and
deduct the funds as if you had written a check.
4. Keep your card active!
Instead of leaving your card inactive charge at least a very small amount. What you want to do is manipulate your credit report to look like you pay on time every month. Your credit bureau does not record how much you pay. Therefore, if you charge only $15 and pay it all off on time, you get credited for a “1″. Do this if you have zero for a balance. Do not do this if you already have a balance. Most students use their card sporadically. This strategy of charging a small amount will make your credit report look better.
5. Be careful of credit scams
Credit scams are all around. Be extremely careful in giving out your credit card number. A scam that has been reported recently goes like this. A telemarketer calls to notify you that you have won a prize if you have a visa card number that starts with a “four”. The scamee runs to get his card and realizes HE’S A WINNER. His visa credit card number starts a “four”. In his elation, he gives the rest of the number to verify his winnings. What the scamee does not realize is that all visa cards start with a “four”, all mastercards start with a “five” and all American Express cards start with a “three”. Be careful out there!
6. Work with the retention department as opposed to the customer service personnel
Have you ever seen a $10 late fee appear on your statement? When you call they will tell you that they received your payment a little late (sometimes they charge the $10 fee just after three days). The person in customer service says that it is policy to levy this fee. At this point, you should politely ask as a “courtesy” that they waive the fee. There may be real, legitimate reasons why they received the payment late (post office delays, system backlogs…). Regardless, ask this person in customer service to waive the fee.
If they do not agree to waive the fee and you feel as if you have a concrete gripe, then you should state that you would like to cancel the account and take your credit card business elsewhere (you do see one or two banks on campus begging for your business, don’t you?). At this point, they will know who the boss is. They will then either:
- waive the late charge or
- transfer you to an “account closing specialist”.
This “specialist” is really going to be smooth and his/her job is to keep your account. Please note: if you perpetually pay late don’t expect preferential treatment. Working with the “account closing specialist” in the retention department is your best bet when it comes to getting results. Aren’t we sneaky?
7. Rebate Cards
Do you notice some credit card companies on campus trying to sell you a credit card? Yeah, pretty sickening how they’re on every corner you turn. Well, we’re here to talk about REBATE cards. Among the different “bait and switch” schemes, credit card companies are the most guilty.
8. Reduce your balance
We’ve all heard horror stories… There’s always some friend of a friend of a friend who is just completely out of control with their credit card. Interest can really add up quickly. Here are some tips that are really helpful in reducing your balance (if you have one):
- Watch what you charge! Small purchases (movie, food, CDs) can really rack up your debt. Recording your expenses is a great way to keep track of what you’ll be owing at the end of the month.
- Keep your balance manageable. Don’t charge huge amounts in the hopes of paying them off with future income. Sale items that appear to be “too good to pass up” can be costly. A good rule of thumb is to never have a balance that is three times the amount that you can pay off in one month.
- It’s O.K. to have a “0″ balance! Some students are so used to a balance that they feel the need to charge something big when they don’t owe anything.
- If you do have a balance you’re trying to whittle down, use not only the above strategies, but also LOWER YOUR INTEREST RATE. The benefits are obvious–you’ll owe less money. How do you lower your rate? There are two ways: negotiate the interest rate with your bank or shop for a lower rate offer.
9. Bad credit can raise your insurance premiums!
In a Wall Street Journal article (Nov. 6), insurance companies were cited using credit reports to predict the likelihood of future claims. The most glaring example is Allstate which has “on the basis of statistical analysis” concluded that people with bad credit are more risky to insure.
Is this fair? Hardly. This can potentially have a big negative impact for you. Car insurance premiums are high enough for us. Having to pay additional for the same coverage isn’t very appealing. The article goes on to elaborate State Farm policies for evaluating. State Farm concentrates on, “bankruptcies, foreclosures, repossessions, judgments, and multiple large charge-offs”. They imply that they don’t care if you are a few days late paying on a Sears card…or do they?…
What I wonder is that if bad credit can raise your premiums, will good credit lower them?
10. Rip up incoming credit card solicitations
Be really careful when you’re throwing away those credit card solicitations–someone may be digging through your trash. Why? Most credit card solicitations contain a lot of very personal information. Some even come in the form of a certificate that is very easy to forge. Here’s potentially what can happen:
- a thief finds your credit card offer that you do not rip up,
- that person fills out the application and
- gets the card sent to some other address.
Credit card companies do take precautions to ensure that this doesn’t occur but why trust them? Your best protection is to be safe with our personal information.
Bonus - Your credit card interest rate can be negotiated!
Last month, we talked about “reducing your balance”. One of the best ways to owe less money and save money overall is to NEGOTIATE DOWN your interest rate. Here are some specific strategies for doing so.
Negotiating strategy number 1:
Call your bank. Ask for them to lower the rate. Most banks have multiple rates that range from 5.9% (a teaser rate) to 19.9%. Use the principal we outlined in an earlier “Tip of the Month” (October 1995 - Work with the retention department…). Remember, your bank values your business and will do a lot of things to keep your business.
Negotiating strategy number 2:
Shop for a better rate. Look around for offers that are really aggressive. Going from a 17% rate to a 13% rate saves you quite a lot.
Negotiating strategy number 3:
Make your credit report look stronger. This will reward you in the long run. Remember, loan officers use a scorecard. When you make a conscious decision to improve your score, that will make you more qualified for better offers in the future. People with good credit are inundated with low interest rate offers.
Here’s an example of how you can work these “negotiating strategies” into a real life situation. Let’s say you owe about $750. Your current bank charges you 16.95%. Here’s exactly what you do. Call your bank’s customer service department and have them tell you what your current interest rate is. Then, tell them that you are considering a much lower rate offer. An offer you recently received in the mail that is much cheaper, 5.9%. Listen to what they then say. It will probably go something like this, “Oh, that’s just a teaser rate to get you to switch… ” and then they’ll say, “we provide outstanding service and we’re #1″. Your reply should be, “Can you as my current bank match this new bank’s offer?” Say nothing and wait for their response. Be ready to walk away from your bank. If they say “yes” you are happy as a clam and we’re glad that we could help. On the other hand, if you meet up with some resistance…
Ask to cancel the account and go through the retention department (do this with confidence if you have good credit and know it). The conversation with the retention department should go along the lines of, “Hello, my name’s Mike and I can handle the details of closing your account. I am sorry that you are closing your account… we very much value your business. Before I start the process of closing your account, can I ask you why…Is it something that we did?… ” This “Mike” will be super smooth but you’ll be ready. Tell him, “Look, it’s not that I don’t like the wonderful service because it’s terrific. I might even miss you guys…but what it comes down to is money. It’s important to me. I want a lower interest rate.” Be very nice but also very firm. Either he lowers your rate or you’re taking your business elsewhere. This “Mike” has the authority to review your account and will most likely help you out.
Some notes we want to make clear. Make sure you have good credit before you start exercising these negotiating gambits. There is no clearer example of the benefits of good credit than when your bank values your account to the point that they feel they can’t afford to lose you. That is the position that you want to be in.
Learn more visit Us Online Credit Info.
July 17th, 2007
The Threat of Identity Theft
Personal information has become the currency of choice for criminals because the credit system allows consumers with a good credit rating to easily set up lines of credit until fraud is detected. Thieves would rather steal an individual’s reputation than what is in his wallet. Compromised data are routinely bought and sold by individuals and organized crime through Internet chat rooms, electronic-payment systems and online casinos. The
data can pop up anywhere — from Russia, where credit card numbers are ripe for the picking on Web sites, to the Middle East, where terrorist groups finance operations through ID theft, and South Central Los Angeles, where street gangs do the same.
There is also no discrimination regarding identity theft. Young people, 18-29 years of age, are currently the number one target for identity thieves. Teenagers and young people are more vulnerable to identity theft than adults because most have not established credit records that can be monitored.
Most young people don’t have a credit file. A credit file is established whenever someone first submits, under his or her name, the request to establish credit. Thieves take advantage of these clean records and rack up charges, ruining the victim’s credit score. The victim does not find out until they
are denied a loan, a job, insurance coverage or a collection agency starts calling because of the fraudulent charges.
How to prevent Identity Theft ?
Get protection! There is this company called LifeLock.com which promises to reimburse up to $1,000,000 for any losses resulted from Identity Theft Activity.
Additional services from LifeLock.com include:
- No more junk mail
- No more unsolicited credit card offers
- Notice whenever anyone tries to use your credit
- Free credit reports each year
- $1 Million Guarantee
Besides, you can get a whopping 17.5% discount at lifelockidentitytheftprotection.reviewstations.info. Dont be the next victim. You cant afford to lose your precious goodname. Singup now at lifelockidentitytheftprotection.reviewstations.info You wont regret !
July 16th, 2007
For those of you who do not know there is a great site out there which shows you different ways to make money online. There are tips like how to utilize your credit cards to make the most of the cash back and other rewards points that the different merchants offer. If you use cards like the PayPal card you get an immediate 1% cash back bonus which goes directly into your savings account which earns about 5% interest because it is a money market account.
This site also suggests using cards like the Chase Freedom card which gives you points for every dollar spent from 1-3% of your purchases. These points can then be redeemed for cash or prizes, you make the choice. You can also see some of the cards that the writer has actually used for the 0% balance transfers. These are real experiences, not just lists made up like some other bloggers. This blog shares personal experience with the various ways to make money online that work and also shows you the ones that do not work so that you can have a little bit of information when you are making choices.
There are also other tips like using sites like MyPoints to get free stuff. This is not exactly making money online but it does help you to save your own money because you will be getting things for free.
July 16th, 2007
Riches Revolution
Millions of people are now earing a living by harnessing the power of the internet. Many have found that working 40, 50, 60, 80 hours for “the man” is not what they would like.
At the same time internet scam artists have risen and robbed many of precious money needed to support their family.
Enter Riches Revolution. Riches Revolution will help you sort through the pool of worthless online scams and provide you with real educational know how that can help you succeed at working from home. There is no reason why you cannot be successful having your own home business that will provide you with the money you need for the freedom you desire.
Start today visit Riches Revolution today!
July 10th, 2007
A survey of 1,049 U.S. adults by Boston University showed that more than four in five agree that identity theft “is a major problem in the United States.” Nearly one third of Americans - 31% - are very concerned that identity theft could happen to them in the next five years. And when offered the option to pay for a means that would take care of their credit history, bank accounts and credit accounts in the event their identity was stolen, 72% indicated they were willing to pay at least something.
How to Prevent Identity Theft ?
Easy. There is this company called LifeLock.com which promises to reimburse up to $1,000,000 for any losses resulted from Identity Theft Activity.
Here are additional services whereby LifeLock.com can do for you
- No more junk mail
- No more unsolicited credit card offers
- Notice whenever anyone tries to use your credit
- Free credit reports each year
- $1 Million Guarantee
Besides, you can get a whopping 17.5% discount at www.lifelock-promotion.com . Already thousands of people benefit from LifeLock.com. To understand more,you can get some testimonial at www.lifelock-promotion.com
July 3rd, 2007
As anyone who follows the world of bankruptcy knows, as of October 17, 2005, substantial and, from the point of view of consumers, painful changes were made to the Federal Bankruptcy Laws. At the behest, primarily, of the credit card providers and banks, who had been lobbying for years, new legislation was drafted and approved setting the stage for stricter requirements governing (primarily, though not exclusively) personal bankruptcy. This legislation came at great cost to its proponents, and it was expected that it would lead to fewer defaults and more repayment plans, all of which would redound to the benefit of the banks and credit card issuers.
While it is still too early to say, with any certainty, what the overall effect on defaults will be, it seems that, statistically, Chapter 7 filings are rising again, and the expected relative increase of Chapter 13 repayment plans may not, in fact, be materializing. Fewer debtors than one might expect have been disqualified from Chapter 7 relief by “means testing.”
In addition, at the same time that the new bankruptcy laws were taking effect, credit card issuers and banks were finding creative ways to avoid usury problems by domiciling themselves in creditor-friendly states, such as South Dakota, and default rates for consumers now exceed 30% in some cases. Defaults, for those consumers (virtually all of them, I daresay) who have not read the fine print in their credit card disclosures, may be caused not only by late payments, but by high debt to income ratios observed in periodic reviews by card issuers, and defaults under other credit card agreements. The consolidation of issuers, of course, means that there are only a few issuers out there now. Coupled with this have been changes to “minimum payment” rules, so that where a credit card holder carrying a balance might have been able to carry a $250 per month minimum payment, the combination of 30+% APR’s and higher minimum payment rules may have increased that to $600, or more.
Multiply that by the 5 or 6 cards that a consumer might be holding, and, well, one can easily see where this is going. But that same cardholder is now facing higher obstacles to Chapter 7 filings, simply by being, statistically, in the “middle class” and exceeding his or her state’s median income.
What will the result of this be? It’s hard to tell, but one likely scenario is higher defaults with no bankruptcy option. For those cardholders who own a home, with equity, Chapter 13 may not be a viable option because of the sheer amount of debt they are now carrying, relative to their incomes, so the risk of losing their homes may be substantially enhanced. If this happens on a large-scale basis, there will surely be an outcry to “reform” the “reform.” The credit card issuers and banks, having paid dearly for this legislation, may well have overplayed their hand.
Furthermore, those cardholder who can, have, in large numbers, been paying off their balances, outraged as they are by being socked with APR’s exceeding 30%. This has already hurt the bottom line of credit card issuers and their bank affiliates, who make nothing on cardholders who don’t carry a balance. The pot of gold for them is in cardholders carrying balances and paying high rates, and even better, those consumers paying late fees when they get in over their heads, or overlimit fees when, as in many cases, the suddenly increased interest rates take them unexpectedly over their limits. Late fees and overlimit fees are often now in the $40-$50 range.
The result? Less income for the creditors as consumers have wised up. MBNA and Capital One, two huge credit card providers, are seeing their profits sink. Other credit card providers are reporting similar results. Highly dependent on the consumer’s desire to run up debt, these companies are now seeing their profit margins drop sharply. In a nutshell: high consumer debt equals big profits; low consumer debt levels equals low profits.
During the last five to ten years, beginning in the halcyon days of the late 1990’s when, it seems, everyone was an internet or high tech millionaire on paper, Congress was amenable to bankruptcy reform to address real or perceived abuses. The banks had the will and the cash to finance legislation and, after years of almost getting there, finally crossed over into the “Promised Land” in 2005. By contrast, consumers, many of them unsophisticated, who had been given credit cards, with low “teaser” rates, just couldn’t resist the lure of easy credit, big screen TV’s.
Predictably, they acted irresponsibly. But while the lobbyists worked their magic for MBNA and Chase, the consumer had no lobby with which to oppose bankruptcy reform. I’m sure that for the most part, they had no clue as to what was in store for them. Those consumers in the lower economic strata still have no lobby, but they will still be eligible for Chapter 7 relief. The challenge for the banks is that the pain is moving up the ladder to the middle class homeowner. The howling is bound to be heard, and soon.
Copyright 2006 Warren R. Graham
Warren R. Graham is a New York attorney with the Firm of Cohen Tauber Spievack & Wagner LLP. He is a frequent writer on a variety of topics, including legal matters, political and religious affairs. His opinions are his own and do not necessarily reflect the views of his firm or its members. Additional information on him may be found at http://warrenrgraham.blogspot.com
June 20th, 2007
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