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How To Get Consolidation Loans For Bad Credit

February 27, 2012

Consolidation Loans For Bad Credit

Consolidation Loans For Bad Credit

You can get consolidation loans for bad credit that can really help you get out of debt once and for all and not have your credit affect your ability to eliminate this debt. This first option that you can consider is getting a worth co-signer, which if you can get one it can be a very valuable thing to have that can result in better interest rates as well more lenient repayment terms. If you are able to obtain a co-signer when applying for consolidation loans with bad credit, you have the option of having the loan tranferred to your name later on, usually after 1 to 2 years of ontime payments.

This is one way of obtain consolidation loans for bad credit, but you can also qualify for loans regardless of your credit score but they may come with higher interest rates as well as the possibility of you needing to provide collateral, which is something valuable that the lendee puts up which is to be taken it they do not make their monthly payments.

Other methods that have been used to attain bad credit consoliation loans are borrowing against things like your home or taking out equity to pay off debts, as well as borrowing against ones car. If these options to do not apply to your situation, then the next section will provide you with other alternatives.

Finding Reputable Companies That Offer Consolidation Loans For Bad Credit

1.)  There are various ways to find the best rates on consolidatoin loans for bad credit, which a great way to do so is to search online on sites that offer comparisons on rates of different credit card consolidation companies. When you find one that you wish to do business with, always meet in person when doing the paperwork, never fill out anything or offer any personal information online.

2)  If you are uncomfortable applying for bad credited consolidation loans, then a great alternative can be visiting a bank or a credit union, which credit unions are known for offering much better interest rates on their loans as well as offer better eligibility odds when it comes to those with bad credit scores, compared to the likes of banks. You can also consider going through a non-profit organization for consolidation services, which you will want to make sure they are infact a non-profit organization, which you can do so by demanding their non profit documentation.

3.)  You can also meet with various lenders and compare their rates, allowing you to go with one that provides you with the best interest rates.

The main thing to keep in mind when searching for a company that can provide you with a consolidation loan for bad credited is to make sure they are repuatable, which the best way to do so is to contact the Better Business Bureau (BBB) whom keep tabs on a myraid of different companies and know whether or not they provide honest services. The most reputable companies offering consolidation loans for bad credit will actually have the BBB logo on their website, which you can also verify consolidation companies at you states auditors office.

Requirements For Consolidation Loans For Bad Credit

When meeting with a bad credit consolidation loan lender, you will need to prove a couple of aspects about yourself, those of which include:

  • Proof that you are a US citizen, or a permanet resident.
  • Be 18 years or older.
  • Proof that you have a job as well as documentation of what you are earning. This will both provide the bad credit debt consolidation company with the confidence that you can pay your monthly payments as well as information needed for them to cater a good repayment plan that you can afford.
  • That you have lived in the same place for a minimum of 1 year.

You will need to prove a minimum of 6 months of employment history, as well as a list of all your expenses that will show if you can truly buget in an additional monely payment, which you can prove that you can by creating a budget of all your expenses and proving that you have extra money each month to do so.

Private Student Loan Consolidation

February 20, 2012

Private Student Loan Consolidation

Utilizing private student loan consolidation can allow you to gain back control of your debt situation as well as help you get out of debt much faster. The act of consolidation will allow you to group all of your private loans into one single monthly payment instead of having to worry about paying multiple creditors, which it also includes only one interest rate which consolidating loans often times brings lower interest rates due to the fact that private loans most always have higher interest rates compared to federal student loans  Lower interest rates through private student loan consolidation will mean that more of your monthly payment will go towards paying off your debt and less that you have to pay just to cover interest.

private student loan consolidation

The good news about private student loan consolidation is almost any debt can be consolidated, as anywhere from $7,500 to $100,000 for undergraduate loans and anywhere between $7,500 to $150,000 for graduate loans. Consolidating private student loans usually only takes around 45 days for the process to be complete.

It should be known that your interest rates are heavily based off of your credit score so it is advised to either have great credit when applying or find an individual with a solid credit score who can co-sign for you. This co-signer doesn’t have to be an intermediate family member, it can be a relative or friend but the loan will be in their name so it is very important to make your private student loan consolidation payments on time as late payments will adversely affect your co-signers credit score. The consolidation loan can be transferred to your name after a certain amount of on time payments, usually 12 to 18 months, which then you will be able to make payments under your name and build your credit score as well as keep the interest rate that you attained when your co-signer took out the loan for you. A good credit score also gives you a much better shot in gettin g

Monthly payments can be reduced through the act of private student loan consolidation as well, but with a price as to reduced payments the repayment period must be extended leaving you in debt longer as well as paying more in interest.

Companies Offering Private Student Loan Consolidation

NextStudent is known to offer great terms as well are an honest lender in private student loan consolidation service. You can also consider going through larger banks like Citibank, Bank of America, Washington Mutual among others. No matter who you go through, you can verify their reputation by contacting the Better Business Bureau whom maintain a database of most all consolidation providers.

At the end of the day, your lenders are going to be demanding repayment 6 months after your schooling has concluded, if not before which the chipping away on your student loan debt begins. Which after the 6 month deferrment period, you are aloud to consolidation your student loans. Private student loan consolidation can allow you to chip away a lot faster, putting you on the fast track towards paying back your student loans and becoming debt free.

 

Best Credit Card Consolidation Loans

January 16, 2012

Best Credit Card Consolidation Loans

There are various factors that go into finding the best credit card consolidation loans for you and your particular debt situation but the first thing you want to comtemplate is whether you really want to use consolidation for your debt/bills as there are various different debt relief methods. The situation in which credit card consolidation is best is when one is having trouble making their even their minimum payments as well as are paying high interest rates in which the minimum payment is only really covering the interest, and maybe a small amount of the total debt. Debt consolidation can both lower interest and provide you with a fixed interest rate not variable like credit card lenders, as well as provide you with a lower overall debt total, if you find the right loan and lender.

Credit Card Consolidation Loans

How To Find The Best Credit Card Consolidation Loans

The easiest method known when it comes to finding the best credit card consolidation loan for you is to use complimentary online quote in which many lenders offer on their websites. Now you can shop around and get one online quote after another, but an more stress free method is at your avail, known as side by side comparisons which a website will allow you to get a feel for the rates of and terms of a host of different credit card consolidation providers. A couple of other tips that can help you on the pursuit of finding the best credit card consolidation loans include:

  • You will also want to contact your states Department of Banking in order to make sure that the credit card consolidation company that you are looking to do business with is licensed and providers fair services. The Better Business Bureau also keeps a tab on whether companies are reputable or not giving them different ratings depending on how good they are.
  • Read the fine print! Make sure the terms and conditions are exactly as stated before you sign anything.
  • The best consolidation loans for credit cards can also often be found with non profit consolidation companies. But many pose that they are non profit so you will want to verify their non profit status which can be done by contacting your states Department of Banking and/or asking them to provide non profit verification which will come in the form of the variation: (501(c)(3)).
  • Ask for a complimentary counseling session in which you and the credit counseler will go over how credit card consolidation will benefit you more so than your current debt situation, or if a different form of debt relief is a better option.

Best Credit Card Consolidation Loans – Alternatives

If you are looking for the best credit card consolidation loans, but happen to have one credit card that has an interest rate that is considerably lower then the rest of your cards interest rates, you can also consider doing a balance transfer in which you transfer all of your debt to one card allowing you to pay on a lower interest rate which will equate to more money going towards paying off your actual debt. If you go with this debt relief method, you will want to keep in mind that credit card rates are variable and can change on you pretty much at any given moment. You can also try to find a credit card that has zero interest for a period of time in which you can transfer your debt to that card and do everything in your power to pay off as much of the debt as possible during the zero interest timeframe.

 

 

Credit Card Counseling Debt Consolidation

January 2, 2012

Credit Card Counseling Debt Consolidation

Credit card counseling debt consolidation can be your saving grace in getting out of debt. Good news is that both debt consolidation and credit card counseling most always go hand in hand, as when you work with a consolidation company they have highly training credit specialists which who assist you in creating a plan of attack to get you out of debt. Besides consolidating your credit card debt, debt counselorscredit card counseling debt consolidation can also assist you in managing your debt, so you don’t end up in debt again.

 

Credit Card Counseling Debt Consolidation Methods

For the most part credit card counselers will assist you in understanding 3 different forms of credit card consolidation, those of which include:

  1. Consolidating On Your Own – You can consolidate your credit cards all on your own by making a tranferring all of your debts to a credit card which requires you to pay a lower interest rate than you are paying on all of your other cards.
  2. Consolidation Negotiation – Credit card counseling debt consolidation professionals can actually reduce your entire amount of debt by as much as 60%, and get you compeletely out of debt in as little as 10 to 25 payments. This is done by communication between both your credit card companies as well as the counselers, where a lower interest rate as well as debt total is attempted to be decreased, creating a much more suitable payment plan for the one in debt.
  3. Consolidation Loan – Credit card counseling debt consolidation can also be done by taking out what is called a “consolidation loan” through a company, which comes in the form of a secure loan which are known to have lower interest rates, which will enable one to to have much lower payments as well as pay a lot less over the life of the repayment. These sort of loans for the most part require that you put up “collateral”, which is something valuable like for example a car, which if the loan payments are not paid, then the collateral is taken from the person paying off the debt.

These are the main types of consolidation methods that credit card consolidation counselers will propose, but there are other form of debt relief that are offered by credit card counseling debt consolidation companies like debt settlement and debt management programs (DMP). The goal of the counseler is to find out what method of debt relief is best for your personal debt situation.

Credit card counseling, at the end of the day should be used by those who are having serious trouble paying their credit card debt off, which the minimum payment is only covering the interest that you have to pay, and not going towards paying off your debt total. Debt consolidation counseling will enable you to work with a professional who is dedicated to getting you better terms and out of debt a lot faster, instead of going into the debt consolidation process yourself without proper education, which can add more insult to injury.

 

Consolidation Loans For Credit Cards – How To Get The Best Loans

December 4, 2011

Consolidation Loans For Credit Cards

Attaining a consolidation loan for credit cards you have debt with can equate to the first step towards gaining back your financial independency as well as freedom, and best of all being one less number in the ever growing number of people that are in over their heads in debt. When you take out a credit card consolidation loan, you will be able to possibly get a much lower interest rate, being that credit card interest rates are sky high, as well as you will avoid the gargantuan fees that comes with paying late, as you will now be paying on a much lower payment total each month as consolidation companies stretch out the repayment period, enabling lower payments.

consolidation loans for credit cards

When going to apply for a consolidation loan for credit cards, you will be entertained by two different offers, which are loans in the form of being secured or unsecured. Secured credit card consolidation loans, also known as secured lending, are offered for those who are willing to put up collateral like a home or car or any other asset that has high worth which the higher worth, the better chance that the person will receive a loan as well as better rates. If the borrower fails to make their credit card consolidation loan payments they will go into defualt, which then the lender then owns the collateral that is put up. The benefit of secured loans is that they always come with lower interest rates than that of unsecured loans, as well as offer more lenient repayment terms, enabling one to extend payments terms to up to 30 years. This method is most often used for those who have very high debt totals, and need to get a large loan.

Unsecured consolidation loans for credit cards do not require any collateral to be offered for acceptance, but unlike secured loans, acceptance is based off of your credit score. If one doesn’t have a good credit score, then it is imperative to find a someone who does, and have them be your co-signer, and being that you are not offering something to loose, interest rates will most likely be higher as well as repayment terms will be higher. Unsecured consolidation loans for credit cards are best for those who do not have a home or much in the form of collateral.

No matter which option you end up choosing, you will want to compare APR rates and terms along with other encompassing information before committing to the first company that will have you, as you will be able to find the best deal for you and not get sucked into a company that is just trying to close a deal. It is also highly advised that you employ a debt consouler who can advise you on reputable companies and the best terms for your particular situation as well as they can also provide alternatives that can be better for your situation if infact a consolidation loan for credit cards isn’t the best way to go.

How To Get The Best Conolidation Loans For Credit Cards

Below are a few tips that you may want to consider entertaining in the event that you choose on using consolidation loans for credit cards.

  • In the event that you want to pay your debt off early, you will want to find a company that offers principal rate reduction,
  • If in fact you are looking for a longer repayment term to pay off your credit card consolidation loan, you will want to find a company offering interest rate reductions.
  • Make sure you find companies who have permanent discounts, not just temporary.
  • If you happen to be with another lender, and during that time you started with a poor credit score, but have boosted it up during the time your have been with your current lender, like 100 points or more, you can consider going to another lender who may give you a better interest rate, or try and negotiate better terms with your current credit card consolidation lender since they want to keep your business.
  • Low interest rates are also found through non profit organizations which you can tell if they are non profit by asking them to prove their non profit formation which is:  (501(c)(3)), but if you do not go with a non profit organization, make sure the company is involved with either The Association of Debt Settlement and/or Internal Association of Professional Debt Arbitrators (IAPDB) or both.
  • Using auto debit can result in your saving a small percentage, but a percentage none the less on your interest rates, as well as ensures that you make your consolidation loans for credit cards payment on time each month.
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