credit card debt

bad credit history with credit card debt

Image by eikootje via Flickr

A buddy of mine had been fighting with slightly significant credit card debts of approximately $9000 that he carried for quite some time and was not managed to pay back. It was not anything flighty that saddled him with that sum – his newly born kid had major problems starting and my mate wanted to dip into his credit cards to assist in managing the situation. But there’s something that came out of his credit card situation that he never knew to expect – he asserts his bad credit history got him fired from his job. The unexpected thing here is that he’s employed for the govt, for the Defense Finance and Accounting Service in Ohio. They assert that bad credit history ruins a person’s security position in a fashion that will be hard to accept at a high-security regime position. But that employer is not exactly the only one ; there are so very many folks now with bad credit history, their conditions brought on by all of the repos and the unemployment of the previous 2 years ; and more, companies, both government and non-public, are using credit background investigations to be certain that they do not have anything to do with workers with bad credit. There’s a reason they are saying why your credit history should matter. They just accept that the more that you are in difficulty financially, the more that you will get tempted to swindle the company, to embezzle, to accept deductions or luxuriate in harmful monetary practices.

So are they being absolutely bigoted or is there a specific amount of logic to their position? If you ask me, I’d go on the side of announcing that they were just being bloody-minded. More than one out of 10 bosses have made credit checks a part of their background screening process – for each job, and not just the ones where a worker would make contact with money or anything to do with cash. And second, nobody has ever proved, not even close, that folks with bad credit history and monetary issues are certain to pilfer or luxuriate in anything deceptive. About one out of four companies immediately admits that if they were given an application from somebody whose credit report discussed an insolvency at any point at all in his life, that they might not consider him.

The thing is, to hold a person’s credit situation or insolvency against him in work goes against equal opportunity work under Fed.

law : it is really illegal. Not a tiny illegality would stand in the way of wanton insensitivity at these firms. Actually there’s been a bill being passed that proscribes corporations from conducting credit checks at all on workers or on potential workers. The law does make exceptions for certain firms like banks where workers have to work in contact with heaps of money. There are a considerable number of other states that are passing these laws too – Washington, Hawaii and a lot of others. The governing body has intermediated and my pal has his job back now, but nobody knows for how long. Essentially he just got sacked as he actually is in an office where they pay the bills of the Office of Defense. That actually should not need to be high-security.

Pretty shortly, there may be tons of corporations that find reasons to launch somebody because somebody occurs to have some remote type of access to consumers ‘ credit card numbers. A new law when they pass it all though the country, should ensure that there aren’t any loopholes possible that companies could use to just claim they had to tug an employee’s bad credit history and fire him seeing as there had been some way they could prove that he turns out to be inside 10 feet of somebody’s credit card number

Technorati Tags: bad credit history

instant approval credit cards

bad credit

Image via Wikipedia

If your credit score has been impacted by the commercial slump, you have possibly seen your mailbox getting crammed with those offers for ‘bad credit direct acceptance cards ‘ just about everyday.

You are actually not alone many millions of northern Americans have become victim to the whims of this declining economy, ensuing in an once good or decent credit score diminishing down to a poor rating. There are an abundance of reasons ; maybe you’ve been fired, had a decrease in work hours or pay, experienced high-priced health issues or just cannot keep up with curving food costs. Just one or two missed payments can send your credit status way south in a rush. You might think, hopeless times call for desperate measures, which makes you straightforward prey for those smartly written ‘offers ‘ for blemished credit instantaneous authorization mastercards. With the ‘advance pay-day ‘ loans, these sorts of offers should go direct from your mailbox into the round file.

Here’s why. Think about how, a few years gone, the banking industry lured millions on millions of Americans into mortgage loans they could not afford, inspired by brokers and lenders to ‘fudge ‘ on the information on their loan applications, either increasing their real earnings, or convincing them to accept some of the more creative financing packages , for example the ARMs. Today, we see the tragic results : repossessions on these loans are at a high. This is reasonably equivalent in nature to those solicitations for subprime credit, direct approval ‘ cards you now find growing in your mailbox. We’ll take another look at this latest banker’s ploy. The friendly, clever copy of the cover letter is intended to make you think that taking them up on this offer may help you out of an awkward situation.

Nothing could be farther from the actual facts.

When you inspect the footnotes, you can see the APR is ghastly. Should you drop a payment, even by a day, that already large APR immediately goes up and you will be considered a serious fine think $75 or even more! there were many documented cases of banks, getting a prompt payment and then deferring processing the payment for 1 or 2 days, simply so they can raise your APR and evaluate you that serious fine.

Bear in mind that only one event like this could then eat up the remainder of your line of credit! Likely the key-phrase in these supposed offers for bad credit, immediate approval credit cards is ‘instant approval ‘. You already know you have got subprime credit and are despairingly searching for an instant solution. Bonafide ‘instant approval ‘ Visa card offers are approved just for those with a credibly near-pristine credit record. If you have subprime credit, you want to work your way out of it the ‘old fashioned ‘ way. Sharpen your pencil and give your position a good quantity of perusal. Cut all pointless spending. If you have one or two little liabilities, squeeze your financial position and pay them off, one at a time. Attempt to make perhaps the minimum amount on existing credit cards. Check with a non-profit debt consolidation organization to determine if you cannot consolidate your present debt and cut back your total regular payments. The moral to this story? Avoid those bad credit instantaneous authorization cards like the plague! Good luck!

Technorati Tags: bad credit, Credit Cards, instant approval

I remember hearing a while back that there’s some companies you pay that can raise your credit score.

I’ve heard its illegal to do but there’s companies that you can pay to raise your score. What is the deal with this? WHy is it illegal? How is it done?

They would have to commit fraud to raise your score and both fraud and an accessory to fraud are felonies.

My partner is the main income earner as I currently stay at home with our three year old son. I have a flawless credit history but cannot get a credit card as my income is too low. My partner has had trouble applying for a loan due to bad credit. If we were to apply for a joint loan or a credit card would my good credit help us?

Bad credit is one of the worst problems to have… however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

I already disputed all of the items on my report (yes, ALL of them, thought I’d give it my best shot), and I want to know if there is any other way to get that stuff off of my report. I don’t want to do anything TOO illegal… in other words, I would be happy to find more loopholes like the dispute thing, if anyone has any suggestions…

disputing them, unless you win, won’t clean it up. your credit today is no better than it was yesterday. i’d suggest paying your bills, or at least making partial payments.

auto loans

successful car loans

There’s no doubt about it, credit is hard to get these days. Even after the bank bailout, with the huge infusion of money to their coffers, bankers are stricter about giving out loans. You need a car. You have no credit history whatsoever. So, how about auto loans for people with no credit? Is this an impossible dream? Not at all. Surprisingly, if you have no credit history and are looking for an auto loan, chances are good you can obtain that loan. Here’s how to tackle the task and get that car.

The way the banks look at it is that no credit is better than bad credit. They want your business. The interest on the loan is cash on the hoof for them. So what do you need to qualify?

The first thing you need to know is that bankers view a loan with collateral in a far more favourable light than a loan without collateral. For example, if you’re going for a credit card line of credit, if you default, the bank has no way to recoup the loss – they can’t repossess your groceries or that fancy pair of shoes. With an auto loan, the picture, from a banker’s point of view, is entirely different. They will only loan a percentage of the car’s value, that dollar amount that they can recoup, through the sale of the car, should you default. It’s really a win-win for them. When reviewing applications for auto loans for people with no credit, the lender has two important components in their favour: you need the car, they collect interest, and they have collateral should you fail to make the payments.

If you have a job which you’ve had for a year or more, pay your rent and utilities on time and are breathing, you’re likely to get the loan. Remember, auto loans for people with no credit means exactly that. You have no credit history. This can be a good thing. Get a copy of your credit report. If there’s nothing listed, this means, from the lender’s perspective, that you’ve satisfied the ordinary debts everyone incurs, such as rent and utilities. If you’ve defaulted on these debts, it will show up on your credit report. If not, the lender will rub his or her hands together in the happy anticipation of the interest the bank will realize.

You can further ‘feather your nest’, so to speak, with a reference from your landlord or utility companies which you freely pen in on your loan application.  Sure, they’ll check your credit report anyway, but this gesture helps make a good impression. You’ve got nothing to hide.

If you don’t already have a savings account, start one, with regular, albeit small, deposits made via electronic transfers from your checking account. This bespeaks a financially responsible person. Points for you. If your paycheck is not now made via direct deposit, initiate the paperwork to make this happen. The lender then knows that your income goes straight to your account with every payday, making it easy to set up an automatic debit for the loan payment. When going through the approval process for auto loans for people with no credit, all of these factors can give you an edge.

Finally, consider that people who have gone through bankruptcy are able to obtain an auto loan. The collateral component is paramount. Don’t be shy. Auto loans for people with no credit are a dream come true. Apply and drive away tomorrow!

Technorati Tags: auto loan, car loan, credit card advice

I recently struggled getting my credit score to a 580 as soon as I made it the the requirements for an FHA loan changed to a 620. I would like to know what I can do to raise the score. I paid every negative item off on my credit report. What else can I do?

Pay on time for several months – that is 35% of your score right there. If you have been carrying balances start working to reduce them to 25% or less of credit limits. the ratio of available to used credit is another 30% or so. Some things you can’t alter like length of credit history so you just live with it.

Help! I’m trying to start up a business and all I need is a $10k business credit card. But I have a bad credit rating and so far lenders insist I must have a strong co-signer. But I can’t get anyone to do this for me (long story) Any suggestions?
In answer to the first responder, it’s a self-employed business. I’m the only employee. It’s a long story but my personal financial mess is a combination of the high tech collapse (I’m an engineer) that has gone on 6 years, 3.5 years unemployed for myself. Plus, I have a medical condition. I finally made a bold move to get around the medical condition so I can start my own business, now all that is stopping me is a co-signer. I agree, it’s not an enviable position but I have no other choice. Is there any way to get a credit card without a co-signer when you have a bad credit rating?

Actually, it’s a short story. No one else wants to stick their neck out (co-signing) to cover your debts after you have shown little ability to handle your own affairs. They will be 100% financially responsible if you default on your debts and they know it. Operating a business is like operating your own financial affairs on steriods.

Who in their right mind would start a business on credit card with up to 32% anual interest? That is a very large nut to crack on top of paying for employees,your wages, materials, rent,phone and lights…. then look for making a profit too???
Tell me what kind of business you are going into that has a 32% profit after all expenses and I will start one in a heartbeat (as long as it is legal to do so)

Maybe you had better sit down and work out a business financial plan… then work towards fulfilling it and obtaining the capital you need by working and saving the start-up funds… then someone might be willing to listen to your business idea. If you don’t believe in yourself then others will not believe any differently. There is no shortcut to success. Those who cut corners are the first to fail.

Response to additional details:

The most probable way you will get a card is with that much money in their account. Your credit limit will match the amount of money in the savings account held by the credit card company. That way you can start building up a history of purchases and paying the bill on time. You have to re-establish a history of being reliable. After a couple of years of a spotless record, you may find someone who is willing to issue you limited credit and further build from that. I know you are looking for a fast way to do this…. sorry probably not going to happen.

I am not trying to beat up on you… I am trying to show you how others (creditors and co-signers) will look at this. Even if you have lost your job,any work is better than none… even fliping burgers. 10 G’s is not an undoable amount but it might take you 1 year to get there working minimum wage. Hopefull you will do the numbers and see that if you are holding 10Grand worth of debt on a credit card, your whole business profit will go to support the debt and you are working for nothing.

If you were an engineer then you are used to solving problems with a systems approach and a thorough evaluation. It doesn’t sound like you are using your formal education on this new problem. Please write up a plan and look at all the issues systematically. Form a feasable plan and go after your dreams.

Hope that helps

one credit card, a student loan, and a dew minor debts. I am divorced, and my crdit took a major hit. What is the highest score you can receive?

You have some awful answers here.

Credit scores are based on the following factors only;

1. Payment history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio 30%

Since you have a mortgage a credit card and a car loan now as long as you pay everything on time every month your score should be fine.

FICO scores run from 300 to 850 anything that calculates to below 300 defaults to a 0.

To have the very best score and profile people need 3 credit card accounts (revolving) with balances below 30% of their limits and 2 cars, boats, homes, computers, furniture or personal accounts (installment) all with good long payment history’s.

bad credit

loan for car with bad credit

Image by alancleaver_2000 via Flickr

If you’ve got bad credit, you probably know it! Now your car has gone south and you’re looking to get a car loan for people with bad credit. Geez. From bad to worse, you might well think. No, don’t throw in the towel yet. Getting a car loan, even with bad credit, is a doable project. You just need to know the rules of this particular financial road.

The saving grace in this scenario, is that even the banks recognize that a car is essential to just about everyone. That being the case, they also know that the last thing you want to lose is your car. This means that you might be late on your payments for anything else, but not that essential vehicle. Whether you want to finance a new or used car, they’ll adjust their sights accordingly. Does your income to debt ratio support the proposed payment on this car loan? If so, you’ve passed test number one. Now, how much money are you bringing to the table? This means the down payment. The larger the down payment, the better  is your chance of obtaining that car loan for people with bad credit. If you’re willing to part with a sizable amount of cash to buy the car, you’re going to make that payment on the car loan before anything else. Who wants to lay out $1000 of their own money, only to have the car repossessed when payments aren’t made on time? It becomes a lose-lose proposition. You lose your cash and your credit rating goes down.

Do you have direct deposit in place for transferring your paycheck to your bank account? Do you have a savings account? Do you belong to a credit union? If you can say yes to any of these, your chance for the car loan for people with bad credit increases exponentially with each ‘yes’ answer.

Even cold-hearted bankers know that there are any number of legitimate reasons you might end up with bad credit. The lender will look over your credit report and it will be apparent, with even a cursory perusal, that the loss of a job or a monster medical bill is all it takes to explain your current bad credit score. The question becomes, given your credit and employment history, and where the credit blips occurred, are you a credit worthy risk? Given that you’re putting a substantial sum down on the proposed car and demonstrate fiscal responsibility with a savings account, direct deposit and/or credit union membership, you start to look better and better as a credit risk.

No, a car loan for people with bad credit isn’t impossible. You just need to understand the rules of this road. Good luck!

Technorati Tags: bad credit, car loan