Friday, May 25, 2007

Thursday, April 19, 2007

How Do You Build Credit-Tips for Starting A Positive Credit History

Imagine the next time you join a discussion about credit history . When you start sharing the fascinating credit history facts below, your friends will be absolutely amazed.

I trust that what you've read so far has been informative. The following section should go a long way toward clearing up any uncertainty that may remain.

How Do You Build Credit-Tips for Starting A Positive Credit History

Almost everyone needs credit. If you are renting an apartment, applying for a mortgage, applying for a car loan, or even applying for a job, you will need some type of credit history, as credit decisions are often based on your prior use of credit. If you are a young adult or are still in college, you have a unique opportunity to start building a solid credit history that can serve you for many years to come. By carefully building credit and avoiding credit mistakes, you can insure a strong credit history.

Although you may not have credit yet, you should try to get a copy of your credit report for the credit bureaus, so you can check if there is any inaccurate information. Additionally, you will want to make sure that you haven't been a victim of identity theft, with someone using your name and trashing your credit. The three bureaus are: Equifax, Experian and Trans Union, and they can be contacted online, as well as by phone and mail.

One of the first steps to building credit is to open a checking and a savings account in your name. You may already have an account, and it is something many lenders will look at, as it show stability. If you only have a checking account, you may also want to open a savings account as well, which can be used as collateral for a secured loan, if necessary.

You should also have as many bills as you can listed in your name, such as your telephone and cellular bill. Make sure you pay all of your bills on time, as this is a major factor in your credit score. If you can, try to establish the accounts in your name only.

The next step would be to get a credit card. If you are a student, you may be bombarded by credit offers on campus. Its a good idea to get one credit card, so if you find one available with low interest rates and a low or no annual fee, you may want to apply. Student credit cards are mainly designed for people with no prior credit, and they accept a large percentage of applicants. However, don't get more than one card, as its too easy to start running up balances, and it also looks better for your credit if you don't open a number of accounts in a short period of time.

If you are unable to get an unsecured credit card, you still have some options to establish credit with a credit card. If you have a savings account, your bank may let you apply for a secured credit card tied to your savings account. Over time, once you make regular on time payments, you should be able to qualify for a non-secured card. You should also make sure your payments are reported to the credit bureaus, otherwise you won't be building your credit history.

Another option is to get a co-signer. If someone has good credit, that will extend it to you, by putting their name as being jointly responsible for your limit on your card. This will help your credit history if you pay off the loan in a responsible way. If you do have a co-signer, you have a serious responsibility to make sure your payments are timely, or you will hurt their credit as well as your own.

With some foresight, it can be relatively easy to start building credit. Once you get a credit card, its important to keep the balance low, and to make regular, on time payments. The card should be used as a tool for credit building, not as a additional spending money. Over time, you credit will start to look better and better.

Amy Wells writes about consumer finance. Bad Credit? Get insider tips on getting a bad credit loan or credit card at:
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There's no doubt that the topic of credit history can be fascinating. If you still have unanswered questions about credit history , you may find what you're looking for in the next article.

Saturday, February 17, 2007

Be On Guard For Scam

We should be alert of the pitfalls of these home equity, before using a home equity loan. The main thing is that you can lose your home if you fail to meet the repayment schedule required by the loan.

Another common pitfall of home equity loans is that scammers have found plenty of ways to cheat homeowners out of their most valuable asset. Be sure that you know who you’re doing business with. If something smells fishy like a high-pressure sales pitch or an inability to put things in writing, then take a step back and make sure the deal is legitimate.

How to Find the Best Home Equity Loans

Finding the best home equity loan can save you thousands of dollars. In order to get the best loan, we need to consider the following:-

* Shop around with different banks,credit unions and brokers.
* Improve your credit score and make sure your credit reports are correct
and accurate
* Ask for recommendation from friends and family members who they delt
with before.
* Apply from various scouces and compare their terms and conditions and
get the best deal.

Additional Home Equity Loan Tips

To make the deal work out in your best interest, make sure that it is the right deal in the first place. Is a home equity loan a better fit for your needs than a simple credit card account? If you’re not sure, figure it out before you put your home at risk.

We have to review and plan out our budget ahead of time. Make sure that taking the loan will not overburden you.

It is a wise move to consider insurance to cover the payments if something happens. You may or may not need insurance. Try try to pay the premiums monthly, not up frontlumpsum.

The Benefits Of Home Equity Loan

The positive aspect of a home equity loan. Comparatively to other forms of loans, it has tax advantages that is not available for other loans. Furthermore it has lower interest rate and easy to be approved and disbursed. They are easier to qualify for even if you have bad credit. It can help borrowers clear up outstanding bills while leaving them with a single monthly payment at a lower rate of interest. It does restructure liabilities to our benefits.

Sunday, February 4, 2007

Details Of Home Equity Loans

The following paragraphs summarize the work of experts who are completely familiar with all the aspects of home equity loans. Heed their advice to avoid any surprises.

Home equity loan is a type of loan in which the borrower uses the equity in his home as collateral. These loans are sometimes useful for families to help finance major home repairs, medical bills or college educations. A home equity loan creates a lien against the borrower's house.

Here are 2 definitions:

A collateral is property that you pledge as a guarantee that you will repay a debt. If you don't repay the debt, the lender can take your collateral and sell it to get its money back. With a home equity loan or line of credit, you pledge your home as collateral. You can lose the home and be forced to move out if you don't repay the debt.

An equity is the difference between how much the home is worth and how much you owe on the mortgage (or mortgages, if you have more than one on the property).

Most home equity loans are commonly second position liens (second trust deed), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end.

The two are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one's personal income taxes.

Closed end home equity loan

Borrower will receives a lump sum at the time of the closing and cannot borrow further. The maximum amount of money that can be borrowed is determined by variables including credit history, income, and the appraised value of the collateral, among others. It is common to be able to borrow up to 100% of the appraised value of the home, less any liens, although there are lenders that will go above 100% when doing over-equity loans. However, state law governs in this area; for example, Texas (which for many years was the only state not to allow home equity loans) only allows borrowing up to 80% of equity.

Think about what you've read so far. Does it reinforce what you already know about home equity loan? Or was there something completely new? What about the remaining paragraphs?

A closed-end home equity loans generally have fixed rates and can be amortized for periods usually up to 15 years. Some home equity loans offer reduced amortization whereby at the end of the term, a balloon payment is due. These larger lump-sum payments can be avoided by paying above the minimum payment or refinancing the loan.

Open end home equity loan

By nature it is a revolving credit loan, also referred to as a home equity line of credit (HELOC), where the borrower can choose when and how often to borrow against the equity in the property, with the lender setting an initial limit to the credit line based on criteria similar to those used for closed-end loans. Like the closed-end loan, it may be possible to borrow up to 100% of the value of a home, less any liens. These lines of credit are available up to 30 years, usually at a variable interest rate. The minimum monthly payment can be as low as only the interest that is due.

Typically, the interest rate is based on the Prime rate plus a margin.

Home Equity Loan Fees

Please take a look here. This is a brief list of possible fees that may apply to your home equity loan: Appraisal fees, originator fees, title fees, stamp duties, arrangement fees, closing fees, early pay-off and other costs are often included in loans. Surveyor and conveyor or valuation fees may also apply to loans, some may be waived. The survey or conveyor and valuation costs can often be reduced, provided you find your own licensed surveyor to inspect the property considered for purchase. The title charges in secondary mortgages or equity loans are often fees for renewing the title information. Most loans will have fees of some sort, so make sure you read and ask several questions about the fees that are charged.

That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.

Home Equity Loans

Home Equity Loan is the amount of 2nd loan available after taking consideration of the market value of your home minus the outstanding amount owing to the bank. You can use the loan granted for your various purposes. Basically it can be disbursed in one lumpsum with fixed repayment period or being given extra fixed line of credit in a manner use as you like and pay at your convenience. Of course, within the bank's specific terms and conditions.