Primer on Payday Loans and Other Unsecured Personal Loans

At present, the interest on an unsecured personal loan is currently over 15% per year, says, assuming you can get this type of loan at all in today’s credit-starved environment. And that’s about your best such rate. Attempt to borrow against a credit card, for example, and it could be a good deal more. It’s obvious that personal loans can get very expensive nowadays.

In many situations, though, a personal loan can be just about unavoidable for many of us. What if the car won’t start and you need an expensive engine repair to get it up and running again? Or your daughter needs braces? Or the washing machine breaks down?

Situations like these force many Americans to resort to personal loans, including high-cost payday loans. These loans now make up over 22% of the total non-mortgage installment loans at U.S. banks, up from only 11% in 1998.

However before you sign up for your next personal loan, consider the following alternative possibilities —

– Consider a home equity loan. If you own a house with equity in it, you can probably borrow against the equity at a fairly low interest rate and at the same time get a tax deduction. Check out for a list of lenders.

– Selling stocks, Treasury bonds, etc., can be a fast way to drum up some hard cash – just be sure you understand you’ll have to pay taxes on any gains or interest.

– What about borrowing against your cash value life insurance policy.? This is a low-interest alternative if you have this type of policy, and it’s the most common type.

– Try borrowing against your retirement account. Ask your employer’s benefits department if this option is available. If so, it’s another low-interest alternative.

– Family or friends. Maybe your dad can fork over some cash. Just make sure you pay him back.

– Ask your creditors – particularly local merchants who may be more flexible – if they might be willing to extend your payments a month. If they are, make sure you’re not getting charged extra for the privilege of paying your bill late – or if you do get charged, find out how much.

– How about asking your employer for a pay advance – assuming of course you have an understanding employer.

Good vs Bad Debt

You need to recognize a simple fact of personal finance: Never borrow money for consumption. That’s bad debt. Only borrow for investments that will increase in value (and increase by more than the cost of the loan). Borrowing money just in order to spend it is a terrible idea, a royal road to bankruptcy or other financial land mines. As Eric Tyson says in his book, PERSONAL FINANCE:

If you spend, say $2,500 [which you’ve borrowed] on a European vacation, the money is gone. Poof! You may have good memories and even some Kodak moments, but you’ll have no financial value to show for it… I’m not saying don’t take a vacation. Definitely, take one, two, three, or as many as you can afford yearly. But that’s the point – what you can afford. If you need to borrow money… [then you can’t afford the vacation]…

And precisely the same advice applies to almost any consumer purchase: home computers, expensive meals, clothes,, yes, even a new car – anything that decreases in value and eventually becomes financially worthless. If you have to borrow to buy it, you probably can’t afford it. According to Tyson “The financially correct amount of bad debt [you should have] is zero.”

But this does not apply to things that “retain and hopefully increase in value over the long term, such as an real estate, education or your own business.” For these uses, debt is acceptable, up to a limit – the limit being the point at which making payments causes you to be no longer able to save sufficiently to accomplish your financial goals.

All that is excellent advice, but the fact is that, at times, you simply may not be able to avoid adding to your debt load – an emergency or other urgent situation forces you to seek a personal loan. In those kinds of situations, what are your best options?

Personal Loan Essentials

Here are a few basics to keep in mind whenever shopping for an unsecured personal loan:

First, never borrow more than you need. Given the high interest rates in today’s credit environment, you’ll want to keep the amount to an absolute minimum.

Second, compare terms from several lenders. Never look at just the monthly payments – consider the total cost of the loan, including any hidden charges like credit insurance or other fees. Don’t skip the small print on the loan agreement. Don’t assume what you’re being told by a loan officer is binding. It’s what’s in writing in the contract that counts.

Third, begin by trying your credit union before a bank. Credit unions usually have more favorable terms than banks and are often willing to make small unsecured personal loans to their members.

Fourth, don’t pledge valuable personal assets when you take out a small loan – it’s almost never worth the risk. And avoid using credit cards or payday loans if at all possible – the interest rates, especially on the latter, can be prohibitive.

Fifth, be aware that the interest you pay on unsecured personal loans is not tax deductible.

Understanding Subprime Loans

If you find yourself in the subprime lending category, things get even more complicated. As you know, subprime lending has tightened up greatly over the past months (and is now almost nonexistent in the mortgage market). However, if you are employed, you can still find cash in an emergency – you just have to be prepared to pay a steep interest rate for it.

But what exactly does the term “subprime” mean? The definition varies by lender, but in general subprime means a FICO score of 650 or below. Among the other criteria commonly used are: a bankruptcy within the past five years, a foreclosure within the past 24 months, or a debt-to-income ratio of 50% or higher. Some ultra-conservative lenders will even brand you as subprime if you’ve been late on one or one or two credit card payments over the past 12 months.

There are some important factors to bear in mind if you’re considered subprime and yet need to take out an emergency personal loan. One is to recognize that you won’t be viewed the same by all lenders – so you don’t have to jump at the first offer you receive. Shop around. As said, be sure to try your credit union first – and also one or more banks that have departments providing subprime lending. Try using one of the online services that allow you to apply at several lenders simultaneously, like Lending Tree

Here are a few important points for subprime borrowers to bear in mind:

Never risk valuable assets in order to make a small loan.

Avoid personal loans which involve “fancy” terms such as balloon payments. Avoid adjustable rate loans (these have proven disastrous for thousands of subprime mortgage borrowers and can be almost as disastrous for personal loan borrowers).

Always read the fine print. Be sure you understand the terms of the loan clearly. You will be held to what is in the contract, no matter how much eye-strain it takes to read it.

Don’t allow several lenders to access your credit report at the same time. Several inquiries on your credit report within a short period can further lower your credit score.

How Do I Qualify for a Loan?

Loans are the single most common source of funding, whether for purchasing a home, financing a business, paying off debt, or financing a college education. Before approaching a lender to see if you qualify for a   loan , whether your  credit  scores are ideal or very poor, it’s a good idea to understand as much as you can about the factors that a lender will take into consideration when evaluating your situation and your position as a borrower. Qualifying for a loan can be much easier when you have and understand all of these factors.

To qualify for a loan, a bank or other lender will examine a few key points about you.

1. Ability to repay the loan.

First and foremost, when qualifying for a loan, a lender needs to be reassured that you have the ability to repay the money that is borrowed, and that you are trustworthy enough to make your payments. Lenders want to see your cash flow and if possible, a secondary resource, such as collateral. Your  credit  scores help them determine if you’ve paid off  credit  cards and other  loans . Lenders check your credit scores to see if you’ve made your payments on time, and to see if you’ve defaulted any creditors. If you’re applying for a business loan, lenders like to see a business that’s been in existence for a long time, and that it’s been profitable for a long time. Qualifying for a personal loan or a mortgage is much the same. If you have a  credit  history that shows that you’ve paid your other bills, and you have a steady flow of income coming into your budget, chances are good that the  loan  will be approved. If your  credit  is questionable, however, it may be of benefit to seek a lender specializing in  loans  for individuals with poor  credit .

2. Credit history.

As mentioned, the first thing that a lender will do to determine if an individual, couple, or business can qualify for a  loan  is to pull their  credit  report, usually from Experian, Equifax, Transunion, or another smaller credit bureau. Therefore, before you approach a lender, or even start preparing to request a  loan  and see if you qualify for a  loan , make sure your  credit  scores are as high as possible. Get a copy of your credit report from each of these three credit bureaus. Review each item on the report carefully, and report any errors that you find. For example, if you’ve gone through a divorce and a loan was placed in your spouse’s name, request that that item be removed from your report to not reflect the current history of that particular loan. Watch for items that may not be yours, too. Identity theft and identity errors are common, and it’s important to protect your credit and remove anything that simply does not belong on your report. Once a dispute is filed, the creditor has 30 days to respond to the credit bureau. If no response is received, the item must be removed from your credit report, and your credit scores will increase. Check your name, social security number, and address at the top of each report to make sure they are correct. Contact each individual  credit  bureau with questions and disputes before determining if you qualify for a  loan .

Qualifying for a  loan  can also be a matter of being honest, regardless of  credit  scores. If your  credit  scores dropped due to a divorce, medical crisis, or job loss, and those issues have been resolved, you can still easily qualify for a  loan  by explaining these events to the lender. Bad things happen to good people, so be honest and explain and detail these issues in writing, and submit that information along with your loan application to determine if you qualify for a loan.

3. Equity.

Lenders often ask for equity when qualifying for a loan, especially if the loan amount is large, such as to construct a new building for business or purchase a home. In these instances, the building or home itself can be the collateral, and equity is built by offering the lender a down payment. To qualify for a loan, be prepared to offer equity, either with a down payment or some type of collateral.

If your  credit  scores are high, and if you’ve never had any financial difficulties, qualifying for a  loan  should be a fairly simple process. If you’ve had financial challenges or extreme financial difficulties in the past, be prepared to offer explanation of these problems to the lender when finding out if you qualify for a loan. Seek out a lender specializing in poor  credit   loans  if your  credit  scores are too low for a conventional  loan . You may find that by seeking these lenders, you’ll easily qualify for a loan.

Regardless of your  credit  scores, always make sure that the  loan  payments fit into your current personal or business budget easily, and do this before determining if you qualify for a loan. Not making payments on time can result in adverse marks on your  credit  reports, reducing your  credit  scores and making it difficult to obtain future  loans .

Effective Tips on Getting an Unsecured Loan Up to $20,000

A number of Americans living paycheck to paycheck had greatly increased during last recession. Should unexpected circumstances enter your life, such as a car breakdown or a family emergency, a situation may arise where extra cash is needed. In turbulent economy the way it is today, very few would risk putting their vehicle or even a house as collateral to secure a loan. Therefore, the best option is to raise funds through unsecured borrowing, typically referred to as signature loans.

A personal or signature loan is a type of a loan that requires granting potential lender an access to your credit bureau records to check your credit worthiness before approval decision is made. Signature loans do not require any sort of collateral. Up to $20,000 may be borrowed without the need to explain to lender where the money loaned is going to be spent. It gives a borrower a great freedom of using loan proceeds, whether it is medical bills, home repairs, or a backup fund for a “rainy day”.

Finding A $10,000 Unsecured Loan Is Easy

While for people with above-average credit scores getting a signature loan is a simple task, for the ones with credit blemishes on their record it may not seem as easy. Option of adding a co-signer is a great tool, allowing even bad credit borrowers to get access to higher loan amounts and more favorable interest rates. An old friend or a family member with good credit is the best candidate for being a co-signer. While it may seem as a matter of simple paperwork, a co-signer takes the responsibility of taking over loan payments in case when principal borrower fails to pay. Should you be married, it is advised to make a joint application for a loan since both incomes will be considered as a basis for loan repayment, allowing taking out larger loans with better rates. Good credit borrowers may easily qualify for loans as high as $20,000 featuring low rates and longer terms.

Spend It Whichever Way You Want

Uncommonly to car loans and mortgages, signature loans give you a freedom to spend money any way you want – no restrictions whatsoever. Money may be used for educational expenses, home refurbishing, buying a car, or even taking a vacation. Lenders do not ask you about reasons for taking the loan.

Keep Your Loan Current

While lenders may prequalify you for quite a sum of money, you should only borrow what is needed and may be paid back without stretching your budget. This applies to both, secured and unsecured personal loans. If you can payoff loan sooner, it may save you some dollars on interest charges, since interest on a signature loan is accrued monthly on the remaining loan balance. Typical loans feature terms of between two to six years.

Unsecured Loans With Cheap Borrowing Costs

No need to jump in a car and make a trip to the bank – finding a loan is at your fingertips. All you need is a computer and an Internet access. Established online lenders may outbid brick-and-mortar lending institutions in terms of attractiveness of terms and rates. Spending some time to conduct a search of lenders online can help you to save big on borrowing costs.

With every application made online for a signature loan you credit is checked by a prospective lender. A large number of inquiries within a short period of time may lower your credit score temporarily, and affect your ability to secure a loan. Online applications, though, are great since they eliminate wait time, so common with traditional bank lending, and help you to get approval in terms of hours, not days or weeks.

Debt-Ridden Go For Debt Consolidation Loan

The growing financial aspiration could often make you fall deep into immense debt. You might be left debt-ridden and alone, none to help you to short out the problem of several loans. Debt Consolidation is one easily availed option which can be of greater help to you. The process of debt consolidation helps you to consolidate all your existing loans into one, and pay off all your previous loan amount at once.

Debt Consolidation loan is specially meant to those debt-ridden borrowers, who have incurred several loans, and are bewildered while paying them off. This kind of loan gives a borrower the loan amount similar to the sum of all his existing loan amount. This amount is used to pay off all his previous loan amount. Consolidating all the loans into one save borrower from confusion of paying so many monthly installments for several loans which they have taken.

In UK, there are two types of Debt Consolidation loan available – Secured and Unsecured. Secured method of consolidation will require borrowers to put collateral security. The collateral security could be your home or any other property. Secured way of borrowing has several advantages like lower interest rate, longer repayment period, smaller monthly installments, and high loan amount. The loan amount you wish to avail depends basically upon the value of your collateral.

While borrowers availing unsecured mode of this loan might not avail such advantages, due to absence of collateral security. But relief can be sought from the fact that they are getting several of their debts over. People having bad credit history are also eligible to avail Debt Consolidation loan []. They can take up this loan to improve their credit score. Whether you are availing secured or unsecured way of Debt Consolidation loan, it is going positively to help you in shorting out much of your financial trouble.

Debt Consolidation Loans – Is This For You

What is a Debt Consolidation loan?

Debt consolidation is basically placing several debts with one lender in the hopes of getting the total monthly payments and interest rates lowered. Today’s economy is overwhelmed with consumer debt. To often credit card companies send offers to young adults with offers that sound like free money. While the truth is these cards come with high interest rates and every payment that is late the interest rate is skyrocketing. Soon the payments are only paying on the interest and not the actual loan itself.

Unexpected hurdles happen in our lives, like job layoffs, hospital bills or that unwanted car repair bill. We have no control over these events but our bills remain constant. If they are not dealt with in a timely fashion they will develop into a huge problem that will be hard to eliminate.

These accumulating debts will not just magically disappear. They need to be dealt with immediately. If you find yourself in a position in which it is impossible to make the monthly minimum payments on debts such as mortgage, car payments or credit cards then a debt consolidation loan might be a perfect solution for you. By consolidating these debts it should reduce the total monthly amount paid out and reduce the interest rates. It will also be convenient because there will only be one bill to pay every month instead of several.

There are Several Options Available A secured loan will most certainly guarantee a lower interest rate. This is because the lender will be more comfortable because the forced sale of the collateral will ensure payment on the loan. However some of us do not have the means in which to secure this type of loan. Therefore an unsecured loan will be your option. There are even loans available to those who have bad credit. Look at every option available to you closely and read every last word in the fine print. Understand completely what you are getting. There are many legitimate companies and debt consumer groups out there but there are also several that thrive on your fear and they can’t wait to cash in on your feeling of inferiority. Educate yourself. Knowledge will give you the confidence to overcome this fear. The person in front of you making you feel nervous may well be in your position in the near future. For that matter how do we know he is not worse off than you are right now.

How Do I Choose a Debt Consolidation Loan Company?

1. Do diligent research on the companies you wish to do business with.

2. They should be part of the Better Business Bureau and have referrals.

3. They should have credit counselors who have been trained and certified.

4. They should offer educational resources about debt consolidation,money management,paying bills on time, budgeting and several other financial issues.

If you answered yes to even one of these questions then it would be at least worth the time to look into a debt consolidation loan. Debt consolidation can be a different solution rather than bankruptcy ruining your credit however this may solution stop you from dismissing some debts during bankruptcy. Make your decision out of education and knowledge, not out of fear and desperation.

How 13 Common Actions Can Affect Your Credit Score

We are all aware of how the credit crisis and recession has caused damage to some important nation economic indicators including home prices, stock market indexes and retail sales. They have also affected a lot of people’s credit score as well. This is due to layoffs, reduced credit lights and much tighter credit standards. All of this has caused consumers to take advantage of loan-modification programs and lenders to be more willing to negotiate problematic debt. In the mean time, FICO has also introduced a new scoring method which is known as FICO 08. This new scoring method can raise or lower your credit score by as much as 50 points.

Here is what you need to know about how today’s credit events can either help or harm your credit score. Some of these things may even surprise you, which is why it is important to know how to protect your credit rating in today’s economy.

Your Credit Limit Is Reduced By Your Card Issuer

This will not affect your credit as much as you might fear. In fact, studies have shown that there was little to no impact on credit scores for this. These same studies have actually shown that the median score for these people actually rose a few points. So, while you don’t have to worry about this too much, you will want to pay attention to it next time.

Rate Hikes Cause You to Close Your Credit Card

This can hurt you somewhat if you have a large credit line and a low balance because the scoring model no longer includes the vast, unused credit that you had from this account. However, if you still have a sizable balance on this account, the negative effect will be smaller. For this reason you should keep your account open and only use it sparingly, especially if this is your oldest account. The reason behind this is the fact that the scoring model only knows your earliest credit experience. So, since these closed accounts will eventually be dropped from your report, the length of your credit history isn’t going to be apparent and you could be hurt by this.

Paying Down or Paying Off Credit Balances

This is one of the most effective ways in which to improve your credit rating because it will help your score by reducing your total credit use. It is important to make sure that you don’t do away with all of your credit though because it is still important to show some activity. If you are trying to improve your credit score, then make sure to pay off your balance as soon as possible. You also need to remember that there can be a lag between the time when a lender cashes your check and when they report your payment to the credit bureau.

Getting a Mortgage Modification or Short-Selling Your Home

This will probably negatively affect your credit score but it depends upon how the lender reports the transaction. If you have a modified loan agreement, then your lender will agree to accept a lower amount of money than what you had originally agreed to repay. More than likely this will not damage your credit report if you already have other bad marks on your credit report. If this is your only issue and you get it marked as “paid as agreed,” then the scoring model will never even know about it. However, if a loan modification or short sale is reported as “partial payment,” “deferred payment” or “not paid as agreed,” then your credit score may suffer a lot of damage even if this is the only thing wrong. For this reason, you should always know for sure how this will be reported before entering into the special payment plan. Of course, if you really need the help, you should take the deal even if it will hurt your credit score because the impact this has will eventually fade.

Being Rejected For a Loan Several Times

This is only a small negative since the scoring model doesn’t know if you have been denied credit. All it will see is the prospective lender’s inquiries. However, if there are too many inquiries, this will be seen as risky credit-seeking behavior unless you are loan shopping and all inquiries are made within 14 to 30 days as these will be considered as just one inquiry. Nevertheless it is still a good idea to apply for credit so that you will know what the loan officer’s credit standards are as well as what your prospects for approval are. If it is questionable whether you will qualify, then you should find a more lenient lender to apply with instead.

Having a Sub Prime or Adjustable-Rate Mortgage on Your Credit Report

This won’t affect your score in any way because the underwriting terms of the loan, or anything that may expose you as a big risk, will not be given to the credit bureaus. They also won’t be figured into your FICO score. Nevertheless, you will want to continue making your mortgage payments. If at all possible, it would be a good idea to refinance to an adjustable rate mortgage and take advantage of the lower rates that are currently available on fixed loans.

Get Debt Relief from a Credit Counselor

Entering into a “partial payment agreement” with a debt relief firm will negatively affect your credit score since it will be reported to the credit bureaus. So, if you are struggling with your finances, try to get them back on track just as soon as possible. While your credit will take a hit at first here, it will gradually improve as you demonstrate that you are a responsible borrower. This is something that a credit counselor will be able to help you with. They can set up a five year repayment plan, with favorable terms, for you. Whenever you choose to go this route, make sure that you stick with a reputable, nonprofit agency that employs counselors who are both trained and certified. Make sure that the counselors are also members of either the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling. You will also want to check on the agency’s standing with the Better Business Bureau.

Get a “Goodwill Correction” From a Lender

This is a positive thing since FICO doesn’t track any changes on your credit file. Therefore, if a creditor removes a negative item today, the scoring model will never know that it ever existed. So, it will never hurt to ask a lender to remove something that is negative from your credit report. You should definitely try it if it is the only black mark on your otherwise great credit report and you have a longstanding relationship with that creditor. Studies actually show that 50% of those who ask for a goodwill correction will actually get it. Since this is something that you can do for yourself, it can be done for free.

Paying Your Loans While Falling Behind On Other Bills

This will hurt your credit score because the FICO model doesn’t weigh the different types of delinquency any differently from one another. Here it is important to understand that even those bills that aren’t generally reported to the credit bureau may eventually show up on your credit report if it is sent to a collection agency. For this reason, you should never blow off any creditors. Instead, once you find that you are unable to manage all of your bills, make sure that you call the creditor before you are late so that you can make payment arrangements with them.

Adding an Explanation to Your Credit Report as to Why You’ve Defaulted

This will not have any impact whatsoever on your credit score since lenders don’t even bother looking at the special comments field on a person’s credit report. Since this information can’t be coded, the FICO 08 won’t look at this either. Even if your file gets flagged, the FICO model won’t adjust your score. However, if you happen to become a victim of identity theft, make sure that you immediately place a security freeze on your credit report with all three credit bureaus. You will also need to file a police report and then begin the process of removing any fraudulent information from your credit report.

Becoming an “Authorized User” On another Person’s Credit Card

If this is a scam, then there is no benefit. However if you are legitimately authorized to use your spouse’s account, there is some benefit. This is important to understand because the old FICO scoring model couldn’t tell the difference here. Thus you would get points for a good credit history regardless as to whether or not it was actually a scam. FICO 08 can discern this though so you don’t want to misrepresent your credit profile.

Singing Up For A Loan That Will Make Your Payments While Unemployed

This isn’t negative. In fact, it may actually be positive because loans that are covered by credit insurance aren’t reported to the credit bureaus. For this reason, the FICO scoring model isn’t going to penalize you as long as the safeguard kicks in and your bill gets paid on time. It will actually only see “paid on time,” which is a plus. So, if credit insurance makes you feel better, go for it as long as you don’t have to pay any extra for it. Just make sure that you read the fine print in order to be sure that the loopholes won’t give you a false sense of security.

Not Returning a Public Library Book Several Years Ago

This isn’t an issue because FICO 08 doesn’t even look at any collection items that are under $100. It is also more forgiving of any isolated, minor delinquencies that you may have. Nevertheless, you should still do your best to always return your library books on time.

Get A Visa-Mastercard With No Credit Check

Creditors approve credit to those people who most closely match the right profile. They arrive at those conclusions by assigning point values to various items of information that are included either on your credit application or in a credit report. Credit card companies like scoring systems because as a large volume creditor, they can replace trained credit personnel with a relatively few employees who can quickly total number columns and determine if an applicant’s point values add up to the right score.

Scoring, of course, is done for one reason. A creditor just wants to know that the odds are high he will get his money back. Scoring systems are fine for those people who fit right into the right profile, but what about those who don’t but could pay off their monthly obligations just as easily and reliably as the next person? If you are one of those people who just doesn’t ‘fit the mold,’ you’ll simply have to make a few adjustments in your application so that you do fit the scoring profile of what a creditor is looking for in a final total.


The first thing you should know is that every system is different. That in itself can work to your advantage. You could be rejected by one company’s scoring system and approved by another. One creditor’s system will give you many points for a good ancwer, and totally ignore a question that gives a negative answer. Another creditor can simply reverse the process. Keeping in mind that creditors use different scoring systems, we will list only the most important questions and briefly review how a response can affect your total score. The following categories are listed from the highest to lowest points awarded each response.

RESIDENCE – The longer you have lived in one place the better. Stability is given high points.

HOME OWNERSHIP – The best possible housing situation is to own your own home, even if itt is mortgaged. The worst is: renting an unfurnished apartment, living with parents, living in a trailer or motel.

FHA ASSUMABLE HOME   LOANS  – President Bush signed legislation making  credit  checks for home mortgages mandatory after December 1989. Prior to that date however, all  loans  are fully assumable without a mandatory  credit  check. There are four important factors that will allow you to purchase a home without a credit check and with a minimal down payment:

1) As a home buyer, your application can be pre-approved and your  loan  without a  credit  check provided: a) The original VA  loan  was granted March 1988, or b) The original FHA loan was granted prior to December 2) If the original home buyer made a small down payment on the sale price which was used primarily for closing costs and consequently did not buy any equity at that time. 3) If most of the payments made by the original owner were applied to interest during the first 4-5 years and very little went towards the principal. In that event, very little equity would result from making payments. Or, if there was any equity it would probably have been reduced by depreciation or other home market conditions. 4) The last factor would be low- or no-equity conditions that resulted from low inflation and other economic conditions that can decrease the value of property.


In order to understand the buying significance of equity you must understand what it means. Equity is the difference between what real estate sells for (market value), and the payoff amount of the loan to a lender on that property. In other words, if you own a home with a market value or $100,000, but you owe the bank $99,000, your eequity is $1,000. In tens of thousands of cases, VA and FHA homes can be purchased with little or no down payment because no equity has been built up.


If you have been dreaming about owning your own home someday, Dream No More! Right now at this very moment there are tens of thousands of homes for you to choose from that can be purchased with no credit check and no down payment. or with a very modest down payment. Sounds incredible doesn’t it? But remember, the only reason any seller requires a down payment in the first place is usually to recover the equity in their home. A small amount of equity requires a small down payment. No equity means no down payment!


Your objective as a smart buyer should always be to buy real estate with little or nothing down. Even if a seller has equity, you can work out an arrangement that is to your benefit. For example, a seller may agree to carry all the paper on the transaction. This doesn’t mean that the seller will receive no down payment where there is an equity consideration. What it does mean is that you shouldn’t have to come up with cold cash out of your pocket. Extending credit to customers is the way creditors make money. If you convince them you are a good risk they will give you what you want. Basically, there are two ways you can achieve that goal.

1) You can bypass the normal scoring methods that are used by impressing the person processing your application that you are sincerek reliable, stable, and have the ability to make monthly payments on a  loan  or  credit  card account. 2) You can tailor your answers to the application’s questions and in that manner fit into the right scoring mold of what a good credit risk is, according to the formula they are using. That doesn’t mean you should lie on your application. It simply means you should be aware that being compatible with certain stereotypes will work in your favor. Remember, a creditor can still verify the information you list in an application. Still, many people will twist the truth to put themselves in a favorable position. For example:

1) Some applicants will list their parent’s, a friend’s, or a relative’s address as their own residence and indicate they have lived there for years, knowing it probably won’t be checked. 2) Provided an applicant has a friend or employer who will go along with them, they can list a position and salary they don’t really receive. Then when the creditor calls to verify employment the friend will support what the applicant has claimed to be true. 3) Another way applicants instantly increase their salary is to set up their own corporation. After issuing themselves private stock with an inflated value, they list the stock as part of their salary.


1) If you don’t have a telephone get one installed. The alternative is to make an arrangement with the telephone company and a friend or relative, to have your name listed with their phone. 2) If you have more than one job, list the one that provides you with the greatest income. 3) Add up your income from all sources and place the total in your gross income listing. Be prepared to submit a supplement to your application if they want to verify your income with your employer.

4) Many banks will have a list of ‘good’ and ‘bad’ reasons for borrowing money. Unless you are applying for a secured loan, you don’t have to spend the money for the reason specified. ‘Good’ reasons include home improvement, education,  loan  to establish  credit , medical treatment for you or your family, and secured  loans  for a home, car, boat, and other properties. ‘Bad’ reasons include loans that create another obligation such as that created when you borrow money for a down payment and then have two payments to make; money to pay aa fine or penaltly; money to consolidate debts, unless you are doing it to get lower interest rates; an unnecessary luxury item; money to finance politics; and money that you will loan to someone else. Use a little common sense in determining what type of loan a creditor may consider bad.

5) Banks use dependent figures to determine what your living costs are. If you have more than two dependents you should indicate how they earn their own way or are self-supporting.

6) If you don’t own your own home, counteract this by showing how stable you are. For example, even though you have only rented in a new location for a relatively short time, you lived at your last residence for many years. You moved to improve yourself in some way.

7) Even job changes can be counteracted if each change increased your salary and improved your position.

8) Don’t ever let a creditor guess as to whether or not you can afford the extra obligation you are asking for. Make it obvious by the amount of your income. If you have more income sources than just your salary, include those amounts.


If you complete an application and are still rejected, the very first thing you should do is be persistent and never give up. There are many reasons why a person may be turned down for credit, but whatever the reason, you have a legal right to ask a creditor what their reason was. By knowing what some of the main reasons are for denying credit you can put yourself in a position whereby you can make necessary adjustments and avoid negative effects in advance. If you are turned down, you can then of course concentrate on those points when you reapply.

When you are dealing with creditors you will know who is the cooperative sort, and who is not. If an unsecured loan does not appear imminent, turn the conversation to a secured loan. Then all you do is deposit an amount into savings account to serve as collateral for the amount of credit you want to secure. In some cases the creditor may take personal property as security. If you go to one creditor and it’s clear he has no imagination to deal, go to another who is willing.


A co-signer is soneone who generall has better credit than the person he is co-signing for. He is also the person a creditor will go after first in the event you do not pay off you debt. Why? Because the know that co-signers don’t want their credit ratings ruined and will quickly settle the obligation. If you are trying to establish or rebuild credit, co-signers can help you achieve that goal. Naturally you wouldn’t need a co-signer every time you apply for credit. After paying off one obligation with a co-signer, it should be much easier to acquire more credit on your own.

Co-signers are usually friends or relatives. When you find someone willing to help they should be offered some compensation agreeable to both of you. Your application for credit will be approved primarily on the strength of your co-signer’s credit.


The tips and techniques described in this report are meant to increase the odds for anyone who is absolutely certain they cannot get a Visa/Mastercard through normal channels. You should make every attempt to clean up your credit report by removing negative items and replacing them with positive items. If you have no credit at all, open an account at a local department store. After a few months apply for your bank card. If you are rejected, find out why and correct the problem. If that doesn’t work, cultivate a relationship with your banker. Open other accounts that are easier to obtain. Increase your income. Buy a home. Make yourself a better credit risk on your credit report. Ask a friend or relative to co-sign. After paying off that debt, reapply on your own. Or, the fastest and easiest way to open a Visa or Mastercard account in your own name, is through a secured account.


Secured Visa and Mastercard bank cards are issued by savings and loan associations throughout the U.S. The lender will ask you to open a savings account. The funds placed into the savings account are frozen as long as there is an outstanding balance on the credit card. The savings account acts as security against non-payment of charges made against the credit card. Then, in the event a cardholder doesn’t pay, funds from the frozen account can be used to pay off the debt. This method completely reduces any risk to the lender. Requirements are often lowered by lending institutions that have this program. So if you couldn’t obtain a card through your regular bank, chances are you will receive one through a secured credit card program without a credit check.

Getting Yourself the Best Auto Finance Loan

Getting yourself a best auto finance loan over the Internet is one of the best possible things you can do for yourself when it comes to getting any type of financial loan for that matter. This is because the companies that you work with over the Internet have low overhead possibly because they work through the Internet and as a result they pass on the savings to you as the consumer.

Additionally, there are no application fees that are involved when it comes to getting yourself the best auto finance of the Internet that you possibly can get yourself or as a brick and mortar banking institution or credit union you would be subjected to these fees and would have to spend money on something that is not a sure thing and can possibly be something that you would not be interested in.

This also means that you are in a position to thoroughly research all of the different companies that are propositioning you with their different terms and conditions and interest rates in order to fully understand everything that they are offering you so that nothing would be a surprise years down the line if something were to occur and so that you would be able to find the best possible solution for your own unique financial situation in a very time efficient and cost-effective manner. It will also allow you to research each company individually to make certain that they are in good standing with the community and that they have helped individuals that are in similar situations that you currently find yourself in the four you sign anything with them.

Getting yourself the best auto finance as you possibly can get over the Internet will allow you the freedom to get the bargaining power that you need to save money on the cost of the car itself the moment you walk into the dealership because you are considered a cash buyer at that point you are treated as such. You should already done all the research on the cost of the vehicle itself so you should be a position to negotiate on it without having to worry about dealing with the third party financing options that auto dealerships will try to convince you to go with if you walk into one.

This in and of itself will also save you money in the short term as well as a long term because the cheaper the vehicle is the cheaper loan is an the shorter the loan term will be in order to fully pay off the cost of the loan itself. This of course means that you should always know exactly what you are looking for before you even dare step foot onto a car dealerships lot because they will use every high pressured sales tactic that they can possibly think of it order to sell you a vehicle. You need to make sure that you know what you want and that you go for it.

If they do not have exactly what you want as you are pre-approved buyer you can simply walk away at having to worry about dealing with another third party financing company with the possibility of not being approved by them. Instead, you can go across street to another car dealership and simply negotiate on the price of the vehicle that you want there that having to worry about anything.

In the end, all it takes for you to get a great deal on an auto loan is to simply fill out the short form on our site and in no time your information will be compared against a database of the finest lenders available. Take advantage of this opportunity right now while the economy is the way it is, because now is the time to get the most out of your hard earned dollar.

4 Tips to Get the Most Out of Your Bad Credit No Money Down Auto Loan

Imagining a world without a car seems quite impossible. A car has become a necessity that is integral to our lives. Sorrowfully, many car buyers find themselves in a state of mayhem due to the compulsion of making a down payment. A down payment makes it difficult for car buyers to arrange a big amount of money in a short time-frame. To add to that, there is a possibility that a bad credit score or an average credit score can diminish the chances of obtaining an auto loan. However, there is always a way out. A bad credit no money down auto loan is the best option for you. But, before you avail the loan, make sure that you leave no stone unturned to educate yourself on all the important details.

The following tips will assist you in getting the most of your bad credit no money down auto loan:

1) Trade-In Your Old Car

Many a times, trading your old car can act as a replacement for a down payment. Once you have agreed to trade-in your old car, the amount equivalent to your car will be deducted from the total loan amount. It substantially reduces your burden of the monthly payment amount. Thus, by trading your old car, you can maximize the benefits of your bad credit no money down auto loan.

2) Get a Co-Signer

When you suffer from a damaged credit and cannot spare the amount for a down payment, getting a co-signer greatly helps your situation. If you are unable to make payments, a co-signer is equally liable to repay the loan amount. A lender will be more likely to grant you a loan if you have a co-signer with a rich credit history. Therefore, in order to make the most of your bad credit no money down auto loan, make it a point to get a co-signer.

3) Aim for Reasonably-Priced Cars

It is much easier to obtain a bad credit no money down auto loan if the loan amount is reasonable. If you aim for cars which are way out of your league, it can become difficult to get a loan. Additionally, opt for a loan with a shorter term. A realistic amount which can be repaid in a short time-frame can reduce the overall interest on your loan.

4) Present Evidence of a Stable Income

Regardless of a bad credit history, evidence of a stable income can boost your chances of getting a loan. Stability in the form of a regular job, a regular income source and a stable residential address can increase your credibility. Present pay-stubs that prove you can repay the loan within the stipulated time-frame.

For a car buyer with a bad credit score, getting financing options without a down payment is possible. Keep the above tips in mind to get the most of your bad credit no money down auto loan.

Common Mistakes Motorcycle Buyers Make When Looking For a Motorcycle Loan

Whether interest rates are high or low or it’s the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans.

Shopping for a motorcycle before shopping for a motorcycle loan.

Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only willing to provide a loan amount of $10,000.

Additionally, once motorcycle buyers enter the showroom slick salespeople often pressure them into motorcycle loans with much higher internet rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople do not like motorcycle buyers to leave the dealership to get a motorcycle loan. In the salespersons mind this only increases the chance of losing a sale and commission. Therefore, salespeople frequently try for a quick sale which normally results in pushing motorcycle buyers to get motorcycle financing at the dealership.

The bottom-line is that it is always best to shop for a motorcycle loan before entering the showroom.

Diving into the unknown motorcycle loan.

Motorcycle buyers often jump into motorcycle loans that they do not completely understand or may not be the best alternative for them. For instance, in today’s age manufacturers frequently run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically offer a low interest rate for a short term like 12 or 24 months and have a much higher interest rate after the short promotional term. On a credit card promotion if motorcycle buyers can not afford to pay off the loan during the short promotion period, then they are typically better finding a lender offering an installment motorcycle loan for a longer term.

Borrowing too much.

The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 – $15,000. What they fail to realize is that financing a $10,000 – $15,000 motorcycle can stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.

Not asking the right questions.

The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions.

Here are some good questions to ask:

o Is the interest rate fixed or variable? If fixed how long will it be fixed for?

o Are there circumstances that can make the interest rate on the motorcycle loan change in the future?

o What happens if a payment is 30 days late? Does the interest rate increase?

o What happens if a payment is 60 days late? Does the interest rate increase?

o How long is the term on the motorcycle loan?

o If the loan is an installment loan, does it use rule of 78 or simple interest? (Simple interest is always better because it does not penalize the motorcycle buyer if the loan is paid off early.)

o What is the down payment requirement to get the motorcycle loan?

o Is full coverage insurance required?

o How much is registration and are these fees included in the motorcycle loan?

o Are there any administrative fees to get the motorcycle loan and if so how much are the fees?

Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions.