Student Loan Consolidation

May 31st, 2007, Auto Loan, Car Loans No Comments

* If you have several Federal student loans outstanding, you’re probably burdened with not only high loan balances but also several different payment schedules, various interest rates, and all the associated paperwork hassles.
* A student loan consolidation loan, also known as school loan consolidation, is a refinancing program where you, as the borrower, can simplify and transform all your student loans into one loan at one fixed rate, one monthly loan payment, and with only one lender!
* Consolidation gives you the opportunity to reduce the size of your monthly payment by extending the standard 10-year repayment plan to 15 to 30 years. When combined with low Federally-mandated interest rates, student loan consolidation can provide a better cash flow.

     Benefits:

* Save potentially thousands of dollars in student
loan interest fees over the life of the loans by locking in fixed interest rates, now among the lowest they’ve been in years!  Rather than pay out student loan interest fees, wouldn’t you like to have those funds for yourself and your family?

* Put more cash in your pocket.  Imagine what you could do with all the extra funds you’ll have with student loan consolidation: Pay down your other debt. Put a down payment on a new home. Start your own business. Invest in your future.

* Lower your monthly payments and improve cash flow by extending your repayment terms.  Earn an even lower interest rate through deferment or forbearance.  These programs allow you to lower your monthly payments even more, easing the burden of your education debt.

* No prepayment penalties means you can pay off your loans sooner, without any extra charges or fees, as your financial status improves.  You went to college to achieve your career and financial goals.  As your earning power increases, you can have the flexibility to reduce your outstanding college loan debt even faster without any additional fees or charges.

* Consolidation of your student loans can help improve your overall credit rating. When you apply for any form of credit, such as a mortgage loan or credit card, lenders will evaluate your credit score as part of the application process. Your credit score takes into an account the number of creditors you have as well as the balance of outstanding loans.  By consolidating your student loans into a single loan, you can effectively decrease the number of creditors on your credit history, thereby enhancing your overall credit score.

Tips for Getting the Best Deal On a Car

May 29th, 2007Auto Loan, Car Loans No Comments

From choosing the right type of car to comparing loans, there are five important things you can do to maximize your car shopping experience. Get a great deal on the car of your dreams.
Tip 1: Buy it used – We’ve all watched friends buy a brand new car. They are really excited about their purchase…for a few months. After a year or two, they usually complain about their high loan payments. Don’t make the same mistake! Buying a used car, even if it is just a year old, can help you save big. A new car drops in value dramatically as soon as you drive it off the lot. Plus, used cars these days can come with warranty and service packages, just like a new car. If the car you want isn’t available used or comes with a 0% APR offer, buying it new may make sense.
Tip 2: Research prices online – Buyers have the upper hand now that they can easily research prices and features of cars online. Before you go to a dealer, investigate the blue book price, MSRP, and other details of the car you are interested in buying. Print out these documents and take them with you. When a salesman tries to offer you a high price, you can use these facts in the negotiations.
Tip 3: Order a CARFAX report – Most sellers will give you a free CARFAX report for the vehicle you are thinking about buying. If not, go online and order one yourself. This $20 report will show you how many owners a car has had, where it’s been located, if it was in an accident and other “lemon” indicators. It is especially important to check out a car’s history, as recent floods in the south have put a lot of damaged cars on the market.
Tip 4: Check your credit – Reviewing your credit standing before you start to shop for a car can help you save big. If you have a high credit score, you may be able to qualify for the dealer’s special financing offers. You’ll also have extra bargaining power when negotiating a deal with a salesman. If your credit score is low, work on improving it for a few months before your application and take extra time to shop for the best loan offer.
Tip 5: Save on financing – The cheapest way to buy a car is in cash, but there are also ways you can save if you buy with a loan. Put down the largest down payment possible and choose the shortest-term loan in order to reduce your loan costs. Compare loan rates from banks, credit unions, and online lenders by using their free calculators. Once you’ve found the best deal, apply for the loan and take the financial paperwork with you to the dealer. You’ll usually get a much better rate through a bank or online lender than from the dealer’s financing office.
These tips can help you save hundreds, if not thousands, on your next auto purchase. Take control of the car buying process today…

Business Credit Score

May 24th, 2007, Credit Scores No Comments

Gone were the days when all you need is the four C’s to start a business. But without a good business credit score you can still come up with a capital.

Gone was the day when all you need to start a business is with the four C’s (Character, Cash flow, Credit history, Collateral). Today, with the introduction of FICO and credit scores, chances in applying for bank financing is nil, especially if you don’t have a good business credit score which most starter entrepreneurs won’t have.

Unless you are a holder of several good accounts, obtaining bank financing is very hard. Bankers have religiously followed the credit score trend. Who would? After all they are the ones that dictate the flow of cash and credit. That’s why you should forget big banks as your fundamental source of funding and find your path somewhere else.

Large banks should be more accommodating than smaller banks but reality it is otherwise. True, smaller banks are more accommodating than renowned banks so it’s worthwhile to hunt for business seed and start-up capital on smaller banks. They might get you a business loan regardless of your business credit score. Smaller banks are not so rigid in their financing requirements

This is where home equity loan becomes real handy. Houses are the best business collateral since they allow huge sums of cash. Furthermore, applying for home equity plans aren’t based on business credit score, they are more particular on the ability to pay and the value of the collateral since it is a secured deal. Secured meaning the equity lender is secured with the collateral if the loan is not repaid, not the other way around.

If your business is big time, then one solid option is getting an investors interested. Shares plays an important value to every big time business but it is not unheard of for starter business to have stocks and shares, especially ambitious business.

Some institutions do offer services specialized to meet these needs. Like the government agency SBA (Small Business Administration). They do not directly offer you the money. instead they will offer to back you up as you make a loan. An SBA backed loan has more probability for success than without. In any event when the loan goes default, the SBA will pay up to 90% of the loan. Of course, by the name your business must qualify as a ’small business’.

As time goes by, eventually the need to establish a good business credit score would be optimal as it will eventually affect the operation. And since good business credit score allows more than just business loan, maintaining a good score is highly beneficial.

Credit management determines credit opportunities

May 23rd, 2007, , Bankruptcy, Credit Card No Comments

How well you manage your credit can play a big part in your future credit opportunities. Creditors and lenders may review your credit report and score to evaluate your creditworthiness.

Generally, the higher the credit score, the lower the credit risk – and essentially, the more likely you are considered to be responsible with your financial obligations.

Generally, people with higher scores tend to receive more favorable credit terms and interest rates than those with lower scores. Likewise, studies have shown that higher available limits are typically given to those with good credit and higher credit scores.

This places consumers in the precarious position of having a large amount of credit available at their disposal, which could lead to accruing more debt.

Your credit score may also indicate signs of financial trouble. Negative account information on your credit report can seriously affect your credit score.

One of the most damaging forms of negative information is having a bankruptcy on your report.

Q and A on credit Report

May 22nd, 2007 No Comments

Who can see your credit Report?
You have the right to see your credit report. No one else can have access to the information in  your report unless you allow it.

Usually, when you sign documents you are allowing the organization that is giving you credit to check your credit history. Credit-reporting agencies will only give information from your credit report to someone else when you have given permission.

What is a credit score?
Your credit score is a judgment about your financial health, at a specific point in time. It
indicates the risk you represent for lenders, compared with other consumers.

There are many different ways to work out credit scores. The credit-reporting agencies
Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender.

Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use your score to set the interest rate you will pay.

What factors influence your credit score?

Credit-reporting agencies and lenders use a mathematical formula to figure out your credit
score. This formula takes into account various factors described in your credit report, such as your payment history, outstanding debts etc.

How long do these factors affect your credit score?
Information that affects your credit score is usually removed from your credit report after a certain period of time.

How can you check your credit report and score?

It’s a good idea to request a copy of your credit report from the three credit-reporting
agencies at least once a year to verify that your information is up to date. Because your credit information can be kept by more than one credit-reporting agency, and because those agencies do not necessarily share information, it’s important to check all three credit reports carefully.

How to Order Your Credit report?

Although there are many ways to order your credit report the easiest and safest method is by Internet. You can order your credit report through the reporting agencies websites. This method o ordering you credit report is convenient and fast since you will receive your credit report online only a few minutes after you have ordered your credit report.

How to Get Your Credit score?
The only way you can obtain your credit score is online, through the credit-reporting agencies websites. The cost of your credit score will include an online copy of your credit report. You will receive your credit score (and credit report) online a few minutes after you have made the request.

Information on Identify theft

May 20th, 2007, Identity Theft No Comments

What is Identity Theft?
An identity theft occurs when someone obtains piece of your sensitive information and uses it without your knowledge to commit fraud or theft.

Identity theft – Is that a crime?
Identity theft is a very serious crime. You can spend months or years – and a lot of money cleaning up the mess the thieves have made of your name and credit record. You can lose job opportunities, be denied loans for education, housing or cars, or even be arrested for crimes you don’t commit.

Identity theft – What is stolen?
Identity thieves go after the bits of personal information:
· bank and credit card account numbers
· driver license
· Social Security number (SSN)
· name, address, and phone numbers

How they do Identity theft?
Skilled identity theft perpetrators use a variety of methods to get the information from businesses or other institutions by and commit theft.
· stealing records from their employer,
· bribing an employee who has access to these records, or
· hacking into the organization’s computers.
· rummage through your trash, or the trash of businesses or dumps in a practice known as dumpster diving.
· obtain credit reports by abusing their employer’s authorized access to credit reports
· posing as a landlord, employer, or someone else who have a legal right to the information.
· steal credit and debit card numbers as your card is processed by using a special information storage device in a practice known as “skimming.”
· steal wallets and purses containing identification and credit and bank cards.
· steal mail, including bank and credit card statements, pre-approved credit offers, new checks, or tax information.
· complete a “change of address form” to divert your mail to another location.
· steal personal information from your home.
· scam information from you by posing as a legitimate business person or government official.

Identity theft – What they do next?
· using your credit and debit card account numbers to buy “big-ticket” items like computers that they can easily sell.
· open a new credit card account, using your name, date of birth, and SSN – when they don’t pay the bills, the delinquent account is reported on your credit report.
· change the mailing address on your credit card account – the imposter then runs up charges on the account – bills are being sent to the new address so it may take time before you realize there’s a problem.
· take out auto loans in your name.
· establish phone or wireless service in your name.
· counterfeit checks or debit cards, and drain your bank account.
· open a bank account in your name and write bad checks on that account.
· file for bankruptcy under your name to avoid paying debts they’ve incurred, or to avoid eviction.
· give your name to the police during an arrest – if they are released and don’t show up for their court date, an arrest warrant could be issued in your name

How can you tell if you are a victim of identity theft?
· unexplained charges or withdrawals on your financial accounts
· failing to receive bills or other mail signaling an address change by the identity thief
· receiving credit cards for which you did not apply
· denial of credit for no apparent reason
· receiving calls from debt collectors or companies about merchandise or services you didn’t buy

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