Your credit history will affect every aspect of your financial future. However, keeping your credit in good standing can be difficult from time to time.

No matter the reasons for your bad credit history, there are ways to improve it to secure the finance you need when getting a new car.

Finding finance with a bad credit history

If you have a bad credit history, you might be concerned about how to get car finance. Once you have assessed your financial situation, you might be able to access bad credit car finance.

There are things you can do to improve your chances of receiving the finance you need. We take a look at the top tips to improve your credit history below.

Tips to improve your credit history

Check your credit score and report

First, you need to understand your credit history. Obtain your credit report and score, as it will help you assess your credit history and where to make improvements.

Pay your bills on time

Consistently paying all your debts on time will help you improve your credit history and get car finance. Lenders will want to see that you are reliable in making repayments.

Pay off credit card debt

The more credit card debt you pay off, the better your credit history will be. Ideally, try to pay off above the minimum every month to clear your debt quickly.

Avoid applying for new credit

It can be tempting to apply for new credit to pay for old credit. Avoid doing this as it will continue to harm your credit history. Especially if you get rejected for multiple lines of credit.

Dispute inaccuracies on your report

Once you have assessed your credit report, make sure you report any inaccuracies with the credit score provider. You can then work to get false credit information removed from your report.

Stick to a savings plan

When applying for finance, a larger down payment can improve your chances of being approved. Make a savings plan and stick to it. You can then use your savings as a deposit or to pay off bad debt.

Get on the electoral register

Joining and staying on the electoral register can improve your credit score significantly. This is an easy step to take as it doesn’t take long to register on your local electoral roll.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

When the pandemic first hit in 2020, small businesses were inconvenienced. Small businesses started letting go of their employees, struggling to keep their doors open and keeping their lights on. The small business administration sought a way out.

They partnered with the US Treasury Department and launched the Paycheck Protection Program in April 2020. The program loans were offered to approved businesses through lenders to give small incentives to keep their employees throughout the pandemic.

According to Lantern by SoFi, “PPP loans may be forgivable if they meet certain qualifications pertaining to how funds are used.” The terms were that the loan was spent to pay the employees and keep the workforce. In the first round of the program, about 85% of the qualified recipients received $150,000 or less.

After the program was closed in august 2020, many businesses continued to struggle. Fortunately, Congress passed the 2021 Coronavirus Response and Relief Supplemental Appropriations Act, which saw a massive $659 billion set aside to help small businesses maintain their workforce.

Who Can Get the PPP Loan?

Since Congress approved a new round of funding, many people are asking who can qualify to get a PPP loan. According to PPP loan data, real estate and construction businesses made up the largest percentage of PPP applicants. If your business did not receive the first round of funding and it needs it, the government is encouraging you to apply for the loan if you are not enrolled.

If your business received a loan in the first round, you can also apply for a new loan if your business is not out of the woods yet. Seasonal businesses like hotels and restaurants can receive additional benefits. In the second round, the businesses can receive a PPP loan 3.5 times more than that in the first round of PPP loans. The multiplier in the first round of loans was 2.5.

PPP loans are meant for only small businesses and not any publicly traded businesses. The SBA has defined these small businesses as the ones that have not more than 500 employees or companies with 300 employees or less looking for a second round of funding.

Congress has defined the small businesses that qualify for PPP loans at this round of the program. In the first round, there were many questions about the businesses that qualify. The businesses that qualify with their structures include:

• S-corps
• C-corps
• LLCs
• Private nonprofit businesses
• Faith-based organizations
• Tribal groups
• Veteran groups
• 501(c)(3) nonprofits
• 501(c)(6) organizations
• Independent contractors

What Your Small Business Needs to Qualify

Beyond your business structure, a few key details will be asked for qualifying for the loan.

• How much you incur in payroll and proof. (IRS form 941)
• Basic business information like name tax ID number, and address
• Some background information about your business including the business owner, any existing loans, and citizenship information.
• Business Bank statements
• Your driver’s license
• A nullified business check for your account information.

If you are applying for the second round of funding, your business must not have more than 300 employees. You should have also used up all the money you received in the first loan. You must also prove that your business has suffered a 25% revenue loss in any quarter of 2020 if compared to the same quarter in 2019

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

When you’re taking a loan, your intention is to pay it back as per the offer. However, the unexpected happens and you’re not able to meet your part of the obligation.

Secured loans are attached to your home as security. If you’re unable to pay, the lender can apply to the courts, sell your home and recover their money. 

With secured loans, the risk is low, and therefore, the loans are offered at a lower interest rate. You can also borrow more than you would qualify for through a personal loan. 

What’s a Secured Loan?

This is a loan attached to your property or home. If you cannot pay the debt, the lender has the right to repossess your property. 

As mentioned above, it’s easy for lenders to give you a higher amount with a secured loan than you would ordinarily qualify for. 

That often turns out to be a challenge if you fail to pay your debt. 

If you cannot pay your secured loan, you must talk to your lender the soonest time possible. That way, you can put an affordable arrangement in place and reduce the risk of losing the property your loan is secured against. 

These five tips will help you pay back a secured loan you’re struggling with and avoid stress.

Talking To Your Lender

Talking to your lender is the foremost thing you need to do when you have a problem repaying your loan. It may be embarrassing talking about your money woes with strangers, but the lender can come to your rescue when in financial difficulty. 

If you feel you’re going to miss a payment for one reason or another, then it’s prudent you contact the lender in advance. That will help you avoid any dire consequences. Explain your predicament to the lender and let them advise you on what to do. They may agree on a reduced repayment, a freeze on interest and charges until you’re in a stable financial position. 

Tighten your Financial Belt

When things are not working out financially, you’ve to engage another gear, and the first thing you do is review your spending.

 Find below ways you can trim your budget with little effort;

Cut down the Cost of Energy: Turn those lights off, shorten your showers; do more during the non-peak hours. 

Pause on Groceries:  Check your last month’s bank statement; what is it you paid for without thinking? Is it Amazon Prime, Netflix, and others that add up so fast? Remember you’re cutting them to reduce your expenses for the time being, and then you can pick them up later once you get financially stable. You may even find out that you didn’t need them in the first place, and they were the reason for your current situation.

Though your lender may even lessen things for you, so your problem is solved, kindly consider adjusting to your new budget. It’s an opportunity for you to save and work out on an emergency fund. Thus, in case a financial storm hits another round, you’ll be ready to take it head-on.

Consolidate Your Debt

You are suffering financial downtime because of the many loans you have with the same or different lenders. You may therefore need to do debt consolidation. That would mean you get a new loan facility and clear off the smaller debts. Managing a single debt is relatively easy- and you suffer only a single interest, unlike when you’re several debts. 

When you merge your loan balances, you may opt for a personal loan instead. With unsecured loans, your properties are not tied to the debt and thus less risk involved. 

But before you decide on consolidating your loans through refinancing, think of the early repayment charges that may apply. Again, find out about the loan term and the interest rate- personal loans have higher interest rates than secured. 

Before you sign the refinance document, make sure you can make repayments on time. If you miss your repayments, then your future borrowing is doomed, and your credit score reduces significantly, and you may have challenges borrowing in the future. 

Sell Something

What’s more precious than peace of mind? And that peace can only come if you’re financially stable. If you have some precious jewelry, an expensive car, or some property, you can sell and use the cash to clear your loan or reduce the principal amount.

A reduced principal amount will significantly bring down your repayments, and thus you can repay your loan without breaking a sweat. Anything you own and don’t use anymore can be disposed of, and use the proceeds to clear the debt. 

Sometimes, you may have to sell something that you treasure so much and buy it at a later date when you get back on your feet. 

Use Savings

You’ve some savings stashed away for your dream car or the education of your children some years to come. This is an amount you can use to get yourself out of the financial abyss and save again when things are up. 

What’s the need of having thousands of dollars in your savings account, and your million-dollar home is about to be auctioned? Take the bold step; use your savings to pay up the overdue amount.  When your secured loan is overdue, it could mean you are going to lose your treasured property to the lender. But you can make bold steps like disposing of some of your assets,  and use the proceeds to repay the loan. But most importantly, talk to your lender to help you out.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

You may need a cosigner for a financial product if your credit score isn’t up to par. Here is some information on cosigners, why you may need one, and what your alternatives might be.

What Exactly Is a Cosigner?

A cosigner is a person who agrees to take full responsibility if another person defaults on a loan product. Such people usually have excellent credit scores and strong reputations with credit bureaus.

A cosigner situation can occur in various loans, but they’re most common in student loans and other installment loans. According to Ascent Funding, it’s quite common to have private student loans with a cosigner. An automobile loan or regular personal loan may require a cosigner, as well.

When Could You Need a Cosigner?

You may need to request a cosigner if you have less-than-desirable credit. The lender might be a bit nervous about you and want to be reassured they will receive repayment for the loan product.

According to Ascent Funding, “if you don’t qualify for a loan in your own name,” you should consider applying with a creditworthy cosigner.

A lender may also ask for a cosigner if you’re new to the credit world and don’t have a history with any creditors at all. They may be willing to provide you with the loan funds but still want a little reassurance.

Four Alternatives to Having a Cosigner

Other alternatives are available if you don’t have a traditional cosigner, such as your parents in mind for your loan product. You have the option to ask a friend or family member to cosign for you instead of your parents.

This person will have to know you very well and have faith that you understand how important it is to repay your loans on time. You can sit down with the person and discuss the cosigning situation when no distractions are apparent.

You may have to settle for taking a much higher interest rate for a while. This may be more true with an auto loan than other types of loan products. The good news is that you may be able to apply for a refinance loan when some time passes.

You might also be able to talk to the loan company and see if they will take a larger down payment to compensate for the lack of credit score qualification. A larger down payment may make the lender a bit more confident that you’re fully invested in the product and repayment.

You could also try looking for help from a non-traditional lending source. Many lenders are open to the idea of helping people who have less than perfect credit. Thus, you can try to apply with that type of lender. You could also go in the direction of a peer-to-peer lender for help. Peer-to-peer lending involves people who want to invest in helping other people.

Should You Wait to Borrow Instead?

In some situations, you may prefer to wait a little while before you request a loan. For example, you might want to work on boosting your credit score for a few months before applying for a student loan, car, or home. That decision will depend on where you stand financially, but it’s perfectly acceptable for you to do so.

Now you know more about cosigning and how it can work for you. Use the information above to take the next steps toward getting the perfect loan products.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

Purchasing a home can be a thrilling and enjoyable experience. However, it might also be a costly, confusing, and frustrating experience for prospective homebuyers. Thus, it would be best to gain a deeper understanding of how the mortgage process works. This can increase the possibility of getting a successful mortgage loan, minus all the headaches.

The key to getting a successful mortgage loan relies on the borrower and the mortgage lender. The mortgage lender has a vital role in a borrowers’ success rate to get approved. They do this by helping borrowers better understand the available loan and the best deal for the budget. You can look here for an example of a suitable mortgage lender.

Meanwhile as a borrower, you also have a crucial role in getting a successful mortgage loan. The approval rate will depend on the information you’ll provide the lender. This refers to your documents and other data they’ll need for a credit check. 

Helpful Tips To Get Your Mortgage Loan Approved

Applying for a mortgage can be a nerve-wracking experience. You can avoid this from happening by setting yourself up and following these tips for success

Get A Pre-Qualification And Pre-approval

Pre-qualification is a good starting point for figuring out what you can afford, and the better thing is it has no bearing when making deals. On the other hand, a pre-approval entails completing a mortgage application, including details such as your Social Security Number. This allows a lender to perform a hard credit check on you.

Getting pre-qualified and approved ensures that once you find a home you prefer, you can make a stronger application for a higher approval success rate. This is because your lender has already confirmed that you can buy a mortgage in a specific price range. It may also help identify what type of housing you can afford, allowing you to determine the right price range.

Maintain An Ideal Debt-To-Income (DTI) Ratio

The debt-to-income ratio calculates how much money you owe per month in contrast to how much you can make. It’s the percentage of your gross monthly income that goes toward mortgage, rent, credit card, and other debt payments.

Documenting your monthly income and loan payments is the first step in getting a successful mortgage loan. Your ‘front-end’ debt-to-income ratio, which only covers mortgage-related expenditures, should be less than 28% of your income. Your ‘back-end’ debt-to-income ratio, which covers your mortgage and all other debt commitments, should be no more than 43% of your income, though less than 36% is ideal.

The debt-to-income ratio is one of the most important factors lenders consider when approving a loan. Most lenders prefer borrowers with an ideal debt-to-income ratio because borrowers with a higher debt-to-income ratio are more likely to have difficulty making monthly payments. If your DTI is too big, you’ll need to reduce or eliminate any current debt before applying for a mortgage for a successful loan processing.

Check Your Credit Report And Credit Score

Obtain your credit history report, as well as your credit score before applying for a mortgage. This is recommended so you can double-check the information for any mistakes or negative stuff, such as late payments, because they might harm your credit. You may also check the accuracy of your details, such as your name, address, and Social Security Number. Lastly, include checking the balances and status of the credit accounts and loans listed on your reports to ensure they’ve been stated correctly.

Do all of these to correct any unresolved issues or incorrect details so lenders can see an up-to-date version of your current credit rating. Many traditional lenders consider a credit score of 620 to 640 to be the minimum requirement for a mortgage. That’s why building a good credit score is essential to get a successful mortgage loan. If you meet other criteria, some government-backed loans will allow you to borrow with a credit score as low as 500.

Your credit score could make or break your chances of having the loan approved. It also has an effect on the interest rate the lender offers you. The higher your credit score, the lower the interest rates you’ll be eligible for.

Moreover, avoid applying for new credit in the months leading up to your mortgage application. Even getting a credit check for a new cell phone contract might require a letter of explanation to your mortgage lender. Banks will be suspicious if it seems you’re piling on new credit.

Know That Your Employment History Matters

Avoid making any big career changes within the duration of applying for a home loan and closing it. A career change may necessitate a more thorough investigation of your background before the income is factored into the loan application. Lenders go to great lengths to ensure that you have a steady income and job. This is the rationale behind lenders asking for two years’ worth of tax forms as well as the employer’s contact details.

Essentially, lenders want to guarantee that you can afford the additional financial pressure of a new mortgage. You can do so by providing proof that you make enough money to cover a mortgage payment and associated monthly housing expenses.

Remember that one of the most critical aspects of the loan process is stability because if you can’t demonstrate that you have a consistent income, your mortgage loan’s success rate gets negatively affected. Thus, make sure you have a steady career and other sources of income.

Ensure You Fund Closing Costs

The lender would need sufficient evidence that you have sufficient funds to cover the closing costs. It may include the down payment as well as other related costs. Thus, it’s important to maintain an adequate balance in the designated account you intend to use. Following the initial loan application, updated bank statements and deposit verification may be needed to confirm appropriate funds.

Takeaways

Although mortgage loan processing can be daunting, you can prevent this from happening if you make sure you have prepared everything. Most lenders require a down payment, so you have to ensure you have enough savings to cover the costs.

Securing your employment history, financial stability, and your debt-to-income ratio also matters as lenders will rely on your source of income to ensure you can pay what you owe. Lastly, consider getting pre-approved loans to know how much you can afford and how wide your price range can be.

These are some of the most helpful tips to help you get a successful mortgage loan.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

Vehicle leasing definitely has its appeal, and more business and personal customers are opting for such deals because of their inherent benefits. For one, when you go for a vehicle lease, you don’t have to worry about the car’s depreciation – it’s not yours, so you will not have to deal with the lowered value of the vehicle after a few years. Secondly, vehicle leasing gives you the unique opportunity to drive the car you want but couldn’t afford otherwise if you were to buy it. Thirdly, such deals allow you to save money as well, and this is already apparent to many who are interested in vehicle leasing. The cost of leasing a vehicle is not as high as buying a vehicle, especially since the total monthly cost already considers the vehicle’s depreciation at the end of the term. But what else should you really know about car leasing before you opt for a leasing deal? Here are some quick facts.

The duration

Typical leasing deals or arrangements can last from one to four years. Your monthly payments can vary depending on the leasing provider’s computation regarding the drop of the vehicle’s value because of depreciation and the make and model of the car itself. The monthly payment can also change depending on the interest rate for financing, and you will have to settle an initial deposit which is often equal to three to nine months’ worth of the fixed monthly payment of the vehicle.

How to acquire one

The good news is that leasing a vehicle is a lot easier than buying a vehicle simply because you don’t have to go through such extensive credit checks. All you have to do is browse through a list of available cars based on your preference, your budget for the deposit, and your estimated monthly expenditure. Once you find a vehicle you are interested in, you can request a quote or get in touch with the leasing provider to get more information. When you have all your questions answered and have finalised the payment terms, you can submit your application. Upon approval, all you have to do is sign the agreement and decide on the delivery date.

Types of Leasing

There are two general types of leasing deals: first, leasing with the option of buying, and second, leasing as a contract hire deal. Leasing with the option of buying is just as the name implies – you have the chance to purchase the vehicle at the end of the term, and you have to make a final bulk payment at the contract’s end. But if you don’t have any interest in purchasing the vehicle at the end of the term, you can go for another leasing as a contract hire deal.

This is pretty popular amongst many businesses because it’s clear-cut and straightforward: you choose a car, set aside your budget for the monthly payment, and then return the vehicle at the end of the term. Many company cars are leased nowadays because it’s more viable for businesses – they can have a new car with a manufacturer’s warranty, but in the end, they don’t have to be concerned about depreciation.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

Are you a homeowner with equity in your property? If so, a cash-out refinance loan is perfect for you. If you want to make some home improvements, you can use the Home Equity Loan. You will pay for your home improvements and pay off some of your mortgage at the same time. The cash out refinance rate will depend on the current interest rates and the amount of equity they have in their home. It could also be a good idea to consult an experienced mortgage broker or financial advisor before signing any papers!

What is a Cash Out Refinance?

A cash-out refinance can be a good idea for homeowners with equity in their property. This is because you won’t have to worry about your home equity decreasing as it does when taking out an equity loan or second mortgage. With this option, you’ll still be able to make improvements on the property while paying off some debt with one convenient payment.

One comparison is to see the difference in interest rates between a cash-out refinance and an equity loan. When taking out a home equity loan, you’ll typically have to pay more than just the interest on your mortgage because of fees associated with borrowing money from a bank or credit union. A cash-out option will allow for lower monthly payments by only paying off the remaining balance due on your mortgage plus any other debt that needs to be paid off right away.

But, there is one thing you need to think about when considering this type of refinancing: it could come at the expense of some tax benefits. Home improvements are not usually deductible expenses. You would need to speak to your tax professional about taxes related to cash out refinance.

Am I Eligible for a Cash Out Refinance?

Eligibility for a cash out refinance loan will require a good credit score – 640 FICO – with a debt to income ratio of less than 55%. You’ll also need to have home equity of up to $250,000.

If you’re considering refinancing your property with a cash out refinance loan, be sure that the amount is below or equal to what you owe on your mortgage and any other debts attached. That way, there will still be room for more borrowing in the future if necessary without going into debt.

You would need to get an appraisal to determine your new home equity value and keep a percentage of the difference between what you owe and what it’s worth using as you see fit. You will have a larger loan, but your monthly payments will be lower. This means you will have more money each month.

The Benefits of a Cash Out Refinance

A cash out refinance can be a smart financial move. For instance, if you are carrying high-interest debts such as credit cards or old loans with higher penalties and other installment loans.

Since the cash out refinance rates are lower than other loans you may have, you will have more cash in your pocket each month.

You may also want to use the extra funds for home improvements that are needed or wanted but couldn’t be done with a traditional refinancing loan because of property restrictions and other factors. You could even put it toward retirement savings by either keeping it as an additional monthly payment on your mortgage or by using a Roth IRA conversion strategy.

Doing this type of refinancing is very beneficial if you plan on staying in your house long-term (usually at least five years). If you are considering a move then opting for the cash-out option might not be beneficial. Any equity gained would likely go toward another purchase instead of being left behind for future investment.

When Should I Get a Cash Out Refinance Loan?

If you’re a homeowner with equity in your property and are looking for an affordable way to pay off some debt, then consider a cash-out refinance loan. This type of mortgage is perfect if you want to make improvements or repairs to your home while still paying off other debts at the same time. The best thing about this option is that it’s not just available for people who need immediate access to cash, but you can also use these loans as investment vehicles!

Interest rates will vary depending on current interest rates and how much equity you have in the house itself, so be sure to research all options before signing anything official. For more information, consult an experienced mortgage broker or financial advisor today at moreirateam!

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

Recently, a number of states have moved their cap for the interest rates of payday loans. This has been done in an attempt to help protect the loan’s consumers from struggling or becoming too overwhelmed with repayments – this type of lending traditionally having a bad reputation as high-cost.

There are price caps for payday lending across the US, with many Nabraska voters calling for a cap on payday loan interest rates throughout the state to 36% last November (2020), while this January, Illinois also passed a bill to cap consumer loan rates (including payday loans) at the same 36%.

However, it’s important to note that not all states cap payday loan interest rates the same. In February 2021, CNBC reported the following states as having their payday loan interest capped at 36% or lower:

• Arkansas
• Arizona
• Colorado
• Connecticut
• Georgie
• Maryland
• Massachusetts
• Montana
• Nebraska
• New Hampshire
• New Jersey
• New York
• North Carolina
• Pennsylvania
• South Dakota
• Vermont
• West Virginia

For other states, the interest can be substantially higher than this cap.

Why Is There a Price Cap for Payday Lending Throughout the US?

Price caps have been placed on US payday loans to help prevent borrowers from becoming in over their heads with the management of such loans.

Payday loans are traditionally high-cost and have developed a bad reputation in recent years. Some claim that this is down to the lack of regulation throughout certain US states, which led to companies practicing at questionable, and incredibly poor standards – overcharging their borrowers and not being clear enough regarding loan repayment fees.

Thankfully, in 2021, this industry has undergone significant improvements, with strong regulations having been put in place in such US states as follows:

• Alabama
• Illinois
• California
• Florida
• Iowa
• Texas
• And more…

Many lenders now are required to hold stricter practices when lending, helping to protect their borrowers and preventing the poor, damaging standards of the past from being repeated.

Payday Loans – What to Consider

When wanting to take out a payday loan, there are a few important things to consider – the cap on lenders’ interest rates in your state being one.

As previously mentioned, there are a few states that have introduced interest caps for payday loans at 36% or lower. However, it’s important to check the cap that applies to your state, and therefore that which will apply to any payday loan you take out in this state.

It’s also important to check that the state you are wanting to take the payday loan out in actually enables you to take out the amount of money you wish to borrow, and for the length you wish to borrow it for.

Another vital thing to consider with payday loans is whether you need to take one out. Payday loans, as their name suggests, are traditionally known for being used by those who need access to cash before their next payday arrives. They are also known to be taken out during unexpected emergencies, and should never be used as a long-term solution to deeper financial issues.

Payday loans are intended as a short-term means of borrowing money, that borrowers know they can afford before taking them out – and should be kept as such.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.