Archive for the ‘Debt Consolidation Loans’ Category

Your Credit Score And A Low Interest Debt Consolidation Loan

Friday, September 14th, 2007


Introduction

If you are wondering whether or not a low interest debt
consolidation loan is right for you, you likely have a number of
questions. In this regard, you may be wondering how and why
your credit score might effect your overall ability to obtain a
low interest debt consolidation loan.

 

Through this article, you are provided with an informational
overview of the role your credit score plays when it comes to
applying and qualifying for a low interest debt consolidation
loan. By considering this information, you will be in a better
position to determine whether or not it will be worth your while
to make application for a low interest debt consolidation loan
at this point in time.

How Your Credit Score Works

You credit score -- or FICO score as it is called from time to
time -- is computed based upon your credit history. In point of
fact, the specific manner in which your credit score is
determined is a proprietary secret of the Fair Issac and
Company, the entity that worked with the three major credit
reporting agencies to develop the credit or FICO score system in
the first instance.

It is generally appropriate to consider your credit score as
being something akin to a grade based on the manner in which
you've used credit and dealt with your debt in the past. Of
course, this is a simplistic explanation about how your credit
score works =85 but, it is also an accurate way of explaining the
way the credit or FICO score does work.

How Your Credit Score Will Impact Your Low Interest Debt
Consolidation Loan Eligibility

If you credit score dips too low, you no longer will be able to
obtain a low interest debt consolidation loan. In fact, your
credit score really does need to be in the good to excellent
range for you to have the ability to qualify for a low interest
debt consolidation loan. In other words, if you are interested
in consolidating your debt as part of an overall debt management
program or plan, you need to be proactive and actually seek out
a low interest debt consolidation loan before your financial
situation becomes out of line, negatively impacting your credit
score and rendering it unlikely that you will be able to obtain
a low interest debt consolidation loan.

Dealing with a Low Credit Score

If you do have a credit score that falls below that point at
which you would be more likely to be approved for a low interest
debt consolidation loan, you will want to forgo applying for a
low interest debt consolidation loan for the time being. You
will want to take steps to better your credit score in advance
of applying for a low interest debt consolidation loan. Steps
that you will want to consider taking include bringing all of
your credit accounts current and paying down -- at least to some
degree -- the balances on some of your credit accounts. You
will also want to make certain that there is no incorrect
information on your credit report that is negatively impacting
your credit score.

About The Author: Thomas Erikson is co-founder of
http://www.your-debt-consolidation-loan.com which provides debt
consolidation information and solutions. Find out how you can
effectively get your finances under control with a Low Interest
Debt Consolidation Loan.

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Consolidate Debt To Improve Home Loan Chances

Thursday, January 11th, 2007

http://www.debtania.com . His
work on negotiate debt settlement can be found on
http://www.debtania.com/negotiatesettlement.html and other
online sites.

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Debt Consolidation Mortgage Loans – How To Secure A Loan To Payoff Debts

Tuesday, January 2nd, 2007

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Personal Loan For Consolidating Debt – Using An Unsecured Personal Loan To Improve Your Finances

Sunday, December 31st, 2006

With poor credit, you can reduce your loan costs and monthly
payments by consolidating debt with an unsecured personal loan.
Even without collateral in the form of property or assets, you
can find lower rate loans. The key is to look online for
special offers that fit with your financial plan.

Consolidating Small Balances With 0% Transfers

For accounts with balances of less than $10,000, applying for a
credit card with 0% on transfers is a great way to get a jump on
eliminating your debt. Before signing up for one of these
offers, be sure you investigate the claims carefully. It is
very easy to get misled, especially if you have a bad credit
record.

Start by asking how long the 0% transfer is good for. Dates can
range from six to eighteen months. Next, ask what the interest
rate will be after the incentive period. Here is where you can
get caught paying a higher rate than your original loan. And
finally, request a quoted rate based on your credit standing.
This written estimate will protect you from future changes.

Merging Larger Balances With A Personal Bank Loan

If you want a longer payment schedule or to tackle a larger
debt, apply for a personal bank loan. With rates lower than
most credit cards, you can easily reduce your monthly payments.
Of course the drawback is that over the total life of the loan,
you may end up paying more interest.

Bank loans usually have adjustable rates, but you can find
fixed rates. With a fixed rate, you protect yourself from
unpredictable rate hikes and an extended loan period.

Be A Smart Credit Shopper

No matter which type of personal loan you pick, check a number
of lender sites to guarantee that you are getting the best
available rates and fees. Ask for a loan estimate, especially
if you don’t know your credit standing. This will protect you
from any surprises and give you numbers to make a real
comparison with.

It just takes a little bit of time to start saving yourself
money and improving your credit.

About The Author: Visit Debt Sanity to view our
http://www.debtsanity.com online. Also, visit Debt Sanity for
more information on where to find the best
http://www.debtsanity.com/types_of_debt_consolidation_loans.shtml.

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Don’t Pay Extra For Debt Consolidation Loans

Sunday, December 24th, 2006

If you have a high balance of outstanding debt, you may want to
consider debt consolidation. By using debt consolidation
services, you can reduce your interest rate, the amount you are
repaying and ultimately reduce the stress caused by this debt.
The choice is yours, though. You can choose debt relief
consolidation services that are either =ECfor-profit=EE or =ECfree=EE.
For-profit services usually charge a flat monthly fee but with
other charges applied beyond that flat fee On the other hand,
free consolidation services are associated with creditors and
therefore only charge the flat fee per month. This, obviously,
saves the debtor money in the end. He or she is, in fact,
trying to reduce their debt and incur additional unnecessary
expenses when alternatives are available.

A benefit to free debt consolidation companies is that their
services go far beyond just consolidation of credit cards and
debt loans. The subsidies they receive from their supporting
creditors give them more freedom to more thoroughly help those
with poor credit. They are able to afford the risk. This is one
reason why those with poor credit ratings prefer these services
over the for-profit consolidation companies. Those with poor
credit will benefit from those companies offering education on
consumer debt repair. Repairing your credit rating is an
important aspect of improving your entire financial future.

In addition to choosing the right company, the actual
consolidation program will also be extremely important in your
decision-making, especially for those severely in debt. For
individuals in such a situation, accelerated debt consolidation
is probably the best consolidation program. The accelerated
program is similar to regular consolidation but rather
separates the debt into unsecured and secured, only
consolidating the unsecured debts. You can get lower rates and
a faster repayment plan through accelerated consolidation
programs, but the more secured debt you have, the more
difficult it will be in obtaining this plan. The most common
types of unsecured debt today are personal loans, credit cards
and department store cards. Secured debts involve collateral,
or an asset to secure the loan such as a house or car.

Whether you choose accelerated or regular debt consolidation,
do not underestimate the benefits of a =ECfree=EE debt
consolidation organization. Not only are you saving money in
unnecessary fees, the services they are able to offer the
consumer can equip you with money management skills to better
secure your long-term financial health by eliminating debt and
repairing your credit.

About The Author: Concentrating on informating about debt
loans, Vince Paxton pens predominantly for
http://www.creditenio.com . With his works such as
http://www.creditenio.com/debtrelief.html ,the columnist
improved his capability on ideas relating to debt relief
consolidation.

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Top 2 Reasons To Use Home Equity Loans For Debt Consolidation

Sunday, December 24th, 2006

Generations past used to enjoy tax benefits on their interest
payments on certain loans such as consumer loans.
Unfortunately, these tax benefits did not extend to this
current generation, and even as we cough up a huge amount every
month on interest payments on various debts such as your credit
card debts, you can no longer enjoy the same level of tax
relief. However, there is another option today that will allow
you to consolidate all your high interest debts into one low
interest loan and even to secure good tax benefits for repaying
the interest on it. This option is the home equity loan, and it
is open to any homeowner, who can then use the loan for more
efficient debt management.

Homeowners often obtain home equity loans for the purpose of
restructuring or repairing the house. It then becomes a kind of
long-term investment. However, you may hesitate at the thought
of putting your house up yet again for a second mortgage. But
if you are to enjoy lower interest payments and some tax
benefits, you should not hesitate at all at taking this loan,
or even wasting your time looking into other forms of loans to
consolidate your debts. If you are already struggling with
managing all you debts, then a home equity loan is your best
solution for refinancing and managing your otherwise
unmanageable debt.

By arranging to refinance your debt through a home equity loan,
you are not further adding to your existing debt amount. This
debt consolidation plan allows you to transfer all your various
debts such as your credit card debts, with all their different
due dates and interest rates, to one lender. For the repayment
of this consolidated second loan you are paying a lower
interest rate as a part of a fixed repayment plan.

Thus the convenience of making a single payment at a lower
interest rate to one lending institution is just one of the
benefits of home equity loans. In addition to this convenience,
you also get to enjoy a tax benefit. This tax benefit along with
the financial gains of paying a lot less interest, indirectly
adds to your net gain.

Before committing to home equity loan you should make sure that
you are in a position to pay back all the debts within the given
period. Otherwise you will be putting your home at stake. So be
careful about your spending habits, and be particularly wary of
accumulating debts on your credit card.

About The Author: For more information on Home Equity Loan,
check out Susan’s site at http://www.quickhomeequityloan.info
and http://www.quickhomeequityloan.info/home-equity-loan.php.
You can read up on more Home Equity Loan articles at
http://www.mynicheblog.info.

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Debt Consolidation Refi Loans – Cash Out And Reduce Debts

Sunday, December 24th, 2006

Debt consolidation refi loans reduce your debt sooner by
lowering the interest rate on your principal. So for the same
amount you are paying now, you can trim years off your payment
schedule. At the same time, you can further reduce your
mortgage costs by finding low rate refinancing.

Cashing Out Equity Can Save You Money

By securing your debt consolidation loan with your home=EDs
equity, you qualify for some of the cheapest financing
available to you. So you can trade in your double digit credit
card rates for single digit mortgage rates. To get the most out
of your cash out refi, decide if you want one or two mortgages.
By refinancing your original mortgage, you qualify for lower
overall rates. But if you have good rates now, it might be
better to take out a second mortgage. Even with higher rates,
having separate mortgages could be cheaper for you.

Selecting The Right Refi Terms

Terms are just as important as rates when trying to reduce your
debts. Ideally, you want a short term loan to get out of debt
sooner. This doesn=EDt necessarily mean higher payments though.
With lower rates, you can select a loan years shorter with the
same monthly payment. Adjustable rate home loans also offer low
payments, but there is the chance that your rates could
increase. Fixed rate loans provide security of knowing what
your rates and payments will always be.

Lenders Make The Difference

Not all lendering companies are created the same. Each
financing company has their own formula for determining loan
rates and closing costs. To make sure you are getting the best
refi deal for your credit circumstances, ask for a loan
estimate. Within minutes you can receive dozens of offers from
several lenders. You can then make side-by-side comparisons to
select the best option. This is just another way you can save
thousands on your loan=EDs cost. When you are ready, you can
complete your loan application online for speedy approval. In
less than two weeks, your loan=EDs paperwork can be completed,
and you can pay off your other bills.

About The Author: View our recommended lenders for
http://www.abcloanguide.com/refinance.shtml online.

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“Using Personal Loans For Credit Card Debt…”

Sunday, December 24th, 2006

Credit card debt is widespread amongst the average American
household and seeking ways of consolidating debt usually means
utilizing the equity in ones home or seeking a personal loan to
service the credit card payments. Using the equity in your home
to apply for an equity home loan and directing the funds
towards debt management is an excellent method for getting your
house in order in regards to your finances.

A personal loan without collateral may sound inviting but rest
assured any financial institution or broker is going to want a
higher return for the added risk. Using the equity in ones home
has become a popular form of liquidity to finance and
consolidate existing credit card debt, however not without its
risks. Be sure you read the fine print & beware of the risks of
defaulting on any repayments when using the equity in your home
for a equity home loan as you could end up losing your family
home to your creditors should you fail to meet the
repayments!!!

Consolidating debt for some means digging into their 401K for
immediate relief to the detriment of their future well being.
Immediate relief from credit card debt and the high fees and
interest associated with such debts is a huge incentive for
some to look for the 401K alternative. The compromise to such
action is that you are forgoing future savings and security for
immediate relief, but if the timing is right and you are
confident of repaying the loan it certainly is a viable
proposition. It is a very appealing short term debt solution
which has its benefits as well as draw backs.

It is always wise to stack the advantages against the
disadvantages in anything dealing with your finances and when
formulating a wise debt management strategy. Any unforeseen
event which can disrupt your repayment schedule could mean
penalties due in the form of tax installments or the
fulfillment of the principal on the borrowed loan.

Tax perks when saving with a 401K account are reduced when
borrowing off your retirement, as you are reimbursing the
account with after-tax dollars.

Be sure to negotiate a better interest rate on any repayments
with any loan whether it be a personal or a home equity loan.
The higher the interest rates, the higher the repayments, the
less disposable income that is left for savings or other
pleasures of life so ensure you manage your credit card debts
first as they carry the highest interest rates of any form of
credit.

The rate you are able to negotiate your interest will be fixed
for the duration of your personal loan and you will be required
to make monthly installments to service the loan which will be
at a rate much lower than any credit card debt you are
carrying. Undisciplined habits of making late and overdue
credit card payments tends to incur extremely high fees and
even higher interest rates which can become a major problem to
most budgets.

A savings account allows you the luxury of redirecting
resources to areas of debt which have the potential to erode
ones worth very quickly if left unchecked!!! When you compare
the interest rate you earn on a savings account and the cost of
credit card debt it makes little sense not redirecting funds
from you savings account towards servicing debts elsewhere???
Be smart and service your credit card debt before setting up
any high yield savings account, you will be thankful you did in
the long run.

About The Author: http://www.accounttt.info: A site about using
personal & home equity loans to service credit card debt as well
as other related information of interest … The above article
may be used on the condition that any live links be left active
…. Enjoy!!!

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