Monthly Archives: July 2016

Debt Consolidation Loans a Better Idea Than Home Refinancing

Debt Consolidation Loans a Better Idea Than Home Refinancing
Debt Consolidation Loans offer a host of benefits over Home Refinancing, including lower interest rates, and making your financial status more secure.
Debt Consolidation Loans a Better Idea Than Home Refinancing

( — July 11, 2016) — When it comes to consolidating debt, there are quite a few options that people can choose from today in order to get their finances back in order. Those who are dealing with out-of-control mortgage debt, in particular, may be tempted to pursue a home refinancing plan that will make it easier to make their monthly payments. However, it turns out that debt consolidation loans are actually a better option than home refinancing. Continue reading to learn why.

The Benefits of Getting Debt Consolidation Loans
Those who apply for debt consolidation loans can expect to receive a host of benefits. These include a lower interest rate, particularly if you have a good credit score and credit history. You can also take advantage of the fact that you’ve been smart with your money and the fact that you don’t have credit card debt in order to get a great rate on your debt consolidation loan so that you can afford the repayments, especially if you opt for secured loans. Ultimately, this means that your monthly payments will be lower and, therefore, a lot more affordable than they are now, and that will lower the financial burden that you face each month substantially.

The Additional Costs That Are Associated with Home Refinancing
Even though home refinancing may seem like a tempting and smart option that can help you better manage your existing debt, the truth is that there are several problems associated with it. First off, the cost of home refinancing could actually end up offsetting any savings that you would receive from a lowered monthly payment with a new loan. Also, fees could be in the thousands, and that does not even include private mortgage insurance, loan discount points, and the loan origination fee, which could be up to 1.5 per cent of your loan principal. So when searching for a home refinancing plan, homeowners need to be diligent with reading the fine print.

It Is Harder Than Ever to Get Home Refinancing
Ever since the housing crash, banks and lenders are being much more selective when it comes to allowing people to refinance their homes. Individuals who have average credit could begin a refinancing process and then end up being rejected, or they could end up paying a higher rate once the bank or lender ends up checking credit scores. In fact, many people simply will not qualify for the lowest interest rates that are advertised because you often need a credit score of at least 720 or more to qualify. Therefore, individuals who have been rejected for home refinancing may be able to find new hope by opting for a debt consolidation loan instead.

As you can see, there are many things that you need to consider when it comes to lowering your debt, and one of the best ways to make your financial status more secure is by opting for a debt consolidation loan instead of opting for home refinancing. As more people find it difficult to afford their monthly payments, debt consolidation is a solution that is clearly a viable option. Please visit National Debt Relief now for more information.

If you have any questions about Debt Consolidation Loans a Better Idea Than Home Refinancing, please do not hesitate to contact me.

How to Fix Your Bad Credit Score Quickly

How to Fix Your Bad Credit Score Quickly

How to Fix Your Bad Credit Score Quickly

How to Fix Your Bad Credit Score Quickly. Having a good credit score is more difficult today than it is to keep the economy’s inflation rates low, and that is because there are innumerable new debt generating options available to people now. Yet, having good scores is absolutely essential if you are to take on any more debt in the future at reasonably competitive rates. Bad scores only mean refused loan applications, for either they refuse you for being a high credit risk, or you refuse them for quoting horrendous interest rates. If you wish to spare yourself all that, here are a few steps on how to fix your bad credit score quickly.

The Need for Good Credit Scores

Good scores make you eligible for loans, like car loans or home loans, but they also give you better interest rates, as you pose of lesser risk to the lenders. Apart from this, the bonus is that, as they are a reflection of how you handle financial responsibility. They increase your probability of getting good jobs. Many companies today check applicants’ credit histories to gauge whether the candidates are responsible enough. To be on the ‘A-class’ list, all you need to know are a few repair tricks.

Ways to Fix Bad Credit Fast

Do not expect overnight results, and if anyone is promising them to you, you should know that they are lying. Just follow some of the steps given below.

Lower your debts. Paying off your loan installments does not work as fast on your score, as paying off revolving accounts does. So, you must shell out some money, and pay down your debt. Ideally, if you keep your debts below 30% of your limits, you will doing your scores a world of good.

Start up a Budget. Disciplining yourself where spending is concerned, and curbing your spending habits with a tight budget is actually the best long-term way. It will help you from not creating newer debts.

Check Your Scores. If your lender shows lower credit limits than actually are on your card, your scores may get adversely affected. So it is always good to check on them periodically, and also ascertain if your lender has appropriately shown the right figures on your cards.
Older credit history like aged wine, will help increase your credit score. If you have an old card lying around, you must start using it again; for this way, you keep updating those old accounts with the credit bureau. Old accounts show consistency of performance.

Credit Score Errors.  The first step is to identify and correct errors and any negative information that the credit bureaus have on you. For example, if you had paid a bill on time, but the lender failed to report it as so, there will be a late payment mark adversely affecting your report. If these simple mistakes are corrected, your score automatically improves.

Small Negatives. If you have any small unpaid bill marks for example, you can contact the credit bureaus and contest the charge either as ‘not mine’, or as ‘incorrectly stated as a late payment’. With old and small negatives, the bureaus usually do not take the time and effort to verify your requests, and therefore it is very likely that these contested marks will be deleted from your credit report.

Generating Good Will.  Nothing works better than generating goodwill. If you have consistently  shown yourself to be a good borrower, you will probably be let off the hook for one delayed payment. A lender may choose not to report you as a late payment, given your past good record, and this will certainly help you.

Bank Accounts. Opening a bank account and maintaining a healthy amount of funds in them, helps improve your score, as banks usually report this to the bureaus.

Retaining Paid Accounts. It is wise to let already paid accounts stay open, as this helps improve the credit to debt ratio. Improving this ratio is usually the fastest way to fix bad credit.

These are some of the most effective ways to fix bad credit fast. By implementing these different ways, I know your credit score will improve quickly! Good luck!
Disclaimer: This article is for reference purposes only and does not directly recommend any specific financial course of action.


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