Chasing dollar…..always

Archive for April, 2011

Use bad credit loans if you don’t have credit

So you have never taken out a loan? You don’t have a credit card and you don’t have a mortgage? You always pay cash? You’re a student, a recent widow, a divorcee or from an ethnic minority group who have a tendency not to have any lines of credit? If you are any of the above, then your credit score will not necessarily reflect your ability to pay as you have little or no credit history whatsoever. This will make it difficult to obtain any form of loan and in these circumstances, you may have to take out a bad credit loan.

How prevalent is this?

Fair Isaac estimates that 50 million consumers do not have enough credit information on file to generate a credit score. This means that they are being turned away by lenders for things such as a personal loan.

Why does this happen?

Lenders will conduct a credit check. As there is little or no historic data available to measure the risk in loaning the individual money they will not meet their credit score criteria. More and more often, such consumers have to take out a bad credit loan to finance any large ticket purchases like cars as their credit score limits their financing options.

Is this fair?

It seems ludicrous that this is the case, but you have to look at it from the perspective of the lender. If someone walks into your bank or applies online to a lender for a loan, and their credit score is so low or does not exist, the automatic decision you would make is to reject the client. They appear to be too much of a risk.

Establish your credit history

The only way to remedy this is to start establishing a credit history. There are many specialist lenders who offer bad credit loans and bad credit car loans. They accept clients with little or no credit history far more readily. The bad credit loan will have higher interest rates than a standard consumer loan, but if clients make sure they pay on time and in full this will improve their credit score dramatically. They should just make sure that the lender does file credit reports, as not all of them do! In time, a credit score will be established and they can move on to apply for loans with much more favourable interest rates.

Are you the victim of ‘skimmimg?’

I am updating this post on request of a friend and fellow blogger, Marc. Hey Marc, hope you will enjoy reading this 🙂

One swipe is all it takes. And this could drain your account of all your money. When you hand over your credit card to make a payment in a shop or insert it into an Automated Teller Machine (ATM), you could run the risk of being the next victim of an international crime called ‘skimming’.

The cyber crime cell of the US police department have received more than 25 complaints from persons who have fallen victims to such scam.

The victims complained that they lost money from ATMs through forged credit cards. According to a senior police official ‘skimming is done in connivance with an UK-based gang that clones credit cards using a small machine called a skimmer which reads the data on the magnetic strip of the card and clones it. The forged cards are then sent to the US.’

Last year the cyber crime police have recovered 160 fake international credit cards through which a four-member gang had planned to withdraw 30,00,000 US dollars, said a senior police official.

They had cloned credit cards to shop at five-star hotels, malls and jewellery stores in the city. The accused had skimmed credit cards of tourists, he said.

He urged the credit card-users to keep an eye on suspicious individuals who may be present when using your credit or debit card.

He also asked them not allow a credit or debit card to be swiped out of your view. Also remain aware of unusual devices or card readers attached to an ATM machine.

An office-bearer of the US Credit Cards Users Association said ‘Apart from complaints on banks, we do receive complaints pertaining to skimming these days which we are forwarding to police officials. ’‘We are also planning to conduct awareness programmes in this regard,’ he said.

How to prepare your retirement budget?

For quite a few, retirement appears like a far-away stage of their lives, filled with carefree days with absolutely nothing to do but travel, sip wine and watch the sun set. Even though this might be the reality for some, for many people who don’t budget effectively for retirement, their golden years are filled with work and penny pinching, not relaxing. Planning a spending budget for retiring is very vital along with a vital tool to properly saving.

A generally utilised mathematical approach is to say that you need, on average 70 or 80 percent of what you make now per year to live on when you retire. A big part of what you might want to figure in is how you plan on spending your retirement years. If you are looking to travel the world and remain at 5-star hotels, you might desire to spending budget on the high side. If you are happy staying at household and relaxing, you are able to spending budget on the lower end.

To figure out your retirement budget, there a couple of things you must do. First, figure out where your retirement income is going to come from and how much of it there will likely be. A lot of people get retirement income from many different sources like the 401(k) plan they had at different jobs they worked over the years, social security payments, retirement investments and savings too as any possible income from a job that you would work soon after retirement. To figure how much you would be finding from social security, check the statements they send you inside the mail plus the amount you’d be finding is broken down there.

The next logical step is to try to estimate your list of expenses. Though this might be extremely tricky for those which are searching decades ahead, it’s most effective to try to put together some kind of plan. The top way to approach it is to itemize your expenses and break them down by category, for instance living expenses, utilities, health care and so on.

A couple of final tips that can enable you to inside the long run is to attempt to take care of all of your debt before you retire. Paying off the credit cards or your mortgage in 1 lump sum will help you out inside the long run.

Don’t forget any possible dependants. For anyone who is responsible for the expenses of other people, you must figure them in, too.

Retirement can either be a wonderful time filled with happiness or it could be a scary time filled with uncertainty. The road you walk down is up to you. The options you make now will influence how you spend the most beneficial years of your life.

Can you finance your car after bankruptcy?

The type of bankruptcy protection that you filed for or will file for will make a big difference in the speed with which you will be able to rebuild your credit file and qualify for loans even car loans. Car loans for bankruptcy are not as small and easy to be approved as they appear to be under normal circumstances.

What type of bankruptcy is available?

Prior to applying for car loans for bankruptcy or let us say any kind of bankruptcy auto loans, it is very much important to know what kind of bankruptcy are you dealing with and what  could be the consequences of each one. Every bankruptcy is sole in its own way; however most bankruptcies fall under two broad types – Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Under a Chapter 7 bankruptcy incident, the property and assets of the debtor are sold and the profits of your possessions are divided among the creditors or lenders that you chose to include in your bankruptcy. Once your creditors have got their split of the income from the possessions that are sold during Chapter 7 bankruptcy, your creditors can no longer collect on the debt that you owe them. This debt is said to be the discharged debt. There is also other kind of bankruptcy that is likely to be involved in the bankruptcy auto loans.

The chapter 13 bankruptcy allows a borrower to restructure their debts by working with a trustee who forms a payment plan that is paid over a period of five years. Your qualifying for a bankruptcy auto loan will be strongly dictated by which chapter of bankruptcy that you filed. Those who have filed Chapter 7 bankruptcies would face o hindrances in qualifying for this type of loan; on the contrary, those who have filed for Chapter 13 bankruptcies, will have to meet with their trustee and be approved to take out a car loan for bankruptcy according to the budget and the repayment plan that has been set up through the court for their debts.

Bankruptcy car loan – Get the car despite bankruptcy

If you have had your debts discharged under the Chapter 7 bankruptcy, you are well eligible to apply for and be approved for a bankruptcy car loan. You have a new appeal to certain lenders because you are now debt-free, regardless of how you got there. Lenders are well aware of the fact that you cannot file another bankruptcy proceeding for a specific number of years, and this makes them more willing to trust that you will honor the terms of your bankruptcy car loan.

So just go and shop around, find the right car loans for bankruptcy, find the right dealers and car loan lenders like http://www.CarLoanz.net, study the plan and make sure put forth your credit history clearly, without any ambiguity. Basically, what you need to do is put forth your past payments and credit scores and a document exhibiting the reasons for you are applying for bankruptcy. When you find the right price down, negotiate till you get the best price from the bankruptcy auto loan lender. Keep in mind that it is never difficult to get a car loan after bankruptcy. All you need to be is a little wise and patient and shrewd in your dealings.

Bankruptcy attorney: Mistakes to avoid

Before and after hiring a bankruptcy attorney, there are several mistakes that many people make and that you should make a concerted effort to avoid. By doing so, you can save yourself a lot of time, effort, and money. There is a right way and a wrong way to go about doing something, and with the help of a qualified lawyer, you can usually find the right way. For that reason, the first mistake you should avoid is trying to file yourself. Spend the extra money and hire a good lawyer. They can help you save a lot of aggravation in the meantime.

Secondly, make sure you really want to go through with this. Hiring a bankruptcy attorney and filing for Chapter 7 or 13 is a big undertaking and it can have fairly consequential effects on your credit for a long time to come. It could prevent you from purchasing some of the things you want to buy in the foreseeable future. Not only that, it could have an impact on the type of employers who are willing to hire you. Some employers see filing as a symbol of unreliability. Still, it is sometimes necessary. If you need to go through with it, then take advantage of the legal escape hatch our laws provide and don’t spend the rest of your life trying to climb uphill in the snow.

Don’t wait until things are too far gone before you hire a bankruptcy attorney and set the wheels in motion. If you know this is where your life is headed, then go ahead, make the tough call, and get out from under that crushing debt. If possible, do it before the bank forecloses on your house (if that is a danger you’re facing). Certain forms of filing will allow you to keep the home and get on a special repayment plan that works for you in your financial situation. If you wait until the foreclosure is already in progress, this may no longer be an option.

Finally, don’t lie to your lawyer or try to get away with something while going through the process. The people in the legal system have seen it all and they won’t be fooled. You risk jail time and exorbitant fines if you try to cheat the system. This is your chance for a new beginning, so don’t mess it up trying to pull a fast one on the government.