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debt relief service
Debt Relief

Questions to Ask Before You Pick a Debt Relief Service

Before contracting with any debt relief company or organization, you should ensure you know enough about the company to ensure they can be trusted with your financial future.

1. How long has the service been in business?

While it may seem basic, this is a valuable piece of information.

For many types of debt relief, it is important that the service has good working relationships with various creditors so that they can use that personal sway to your benefit.

2. How does this service make money?

There are a variety of ways that debt relief services make money.

It is important that you understand how the service makes money for a number of reasons.

Remember that just because a service says they are non-profit does not mean that they are free.

Many debt relief services make money from creditors. When this is the case, individuals must always remember that there may be a conflict of interest.

When creditors pay the debt professional, they are going to be most concerned with the benefits to the creditors rather than benefits to the individual consumer.

It is also important to understand what fees are assessed to you.

Find out how the debt relief service determines their rates so that you can compare different services and find the most attractive rate.

3. What is the service’s process? How does it work?

Even if you feel you understand how a particular type of debt relief works, it is important to ask the individual service about their process.

Any professional service should be willing to walk you through each step so that you are comfortable with how things will be managed.

This conversation should include information about how they will deal with your current creditors and how payments will be made.

4. Is the service willing to provide an offer in writing?

When a service is unwilling to provide you an offer in writing unless you sign a contract or pay a fee first, it is not a good sign.

A trustworthy company will be willing to supply you with all the details of their service in writing, including their terms and conditions.

There should not be a rush to make a verbal agreement over the phone; this is an important decision and an ethical debt relief company will want you to make a careful decision.

5. How personal is the service?

Find out if you will be working with a single representative or if the service has a general call center.

It is always preferable to have individual contact who can become familiar with you and your situation.

A direct contact that you have a relationship with is more likely to take a personal interest in helping you.

6. Does the service make unbelievable claims?

There are a number of debt relief services that claim that they will be able to remove negative items from your credit report. This is a big red flag.

While it would be nice to have negative items on your credit report disappear, there is not a single debt relief professional who has that authority.

This is an empty promise and it should make you wonder about what other things the company is not being honest.

7. Are there numerous complaints with the BBB?

Before you decide on a debt relief service, you should also research the company on the Better Business Bureau and on other consumer complaint sites.

Almost every debt relief service will have some complaints.

What you want to look for is a large number of unresolved complaints about a particular company.

Respectable debt relief services will show evidence that they work to resolve their complaints.

When selecting a debt relief service, it is important to consider your options and do some research.…

bad credit mortgage
Bad Credit, Mortgage

How to Get Mortgage with a Bad Credit

Bad credit mortgages differ considerably from standard mortgage loans.

Any person who has ever failed to pay a credit card payment even once or someone who has incurred much debt and has been failing to repay brings upon himself a bad credit history.

That is when it literally becomes impossible for him to get a mortgage loan for buying a home.

But there are companies and lenders that nowadays offer mortgage loans for those who have a bad credit history.

Of course, it can be easily guessed that the interest rate on these loans would be much higher than what can be found in a general mortgage loan for a home.

But still, there are a lot of offers that should be looked into thoroughly before deciding on a particular offer.

With a mortgage loan, one needs to pay a much higher amount of down payment.

The higher the down payment the lesser the interest rates are going to be and so it is better to save some money for the loan by saving on pointless expenditure.

There are many differences that one will find between a mortgage loan secures from the bank and these bad credit mortgage loans that are offered by individual companies or lenders.

The interest rate is decided upon by the lender and usually, it is not as reasonable as with the general mortgage loan.

The lender himself checks out the various conditions and circumstances before fixing the interest rate on the loan.

But even then negotiation is always possible. A good lender would consider unavoidable circumstances that might have created a bad credit record.

Mortgage brokers are oftentimes a great help in making the bargains and bringing in the quotes from the various lenders which saves one some money at least.

They are also able to provide great advice as to which loan offers are the best and more suitable for the person.

A bad credit mortgage loan can help in improving a person’s credit score and this is a plus point of such loans indeed.

The payments should fall under the budget of the person and then he would be able to pay the mortgage loan in time and this, in turn, will help improve his credit history.

There would be some additional expenses that a person will sustain along with the mortgage payments and he should be aware of that.

This will help him to decide as to how much money he needs to borrow.

The closing costs, on the bad credit mortgage loan, are to be taken into consideration.

These considerations are important as if he is unable to pay the loan in time again then his credit history is supposed to get worse and that is not a bad thing.

The mortgage financing can be secured for the entire life of a person or if he so chooses then it can be for a much shorter time than that.

It can so happen that the person will find his financial situations improving and in that case after discussing the facts with the lender he can go for a mortgage loan that is for a shorter period of time.

This can save them a significant amount of money in the future even though it might heighten the interest rates for the present.…

tips get credit
Credit Score

X Tips to Get Credit

It seems that credit is the main way to purchase these days.

Cash isn’t even a close second anymore.

But if you’re just starting out and have no credit, it can be difficult to obtain a credit card.

No one wants to give credit to someone who has no credit.

This is because when you have no payment history, it is difficult to judge if you will pay back the loan or not.

Still, it does leave many of us in quite a pickle, since you need credit to get credit.

Where do you go from here?

Do Your Research

Some companies will actually look at the whole picture and not just your credit history.

Ask for a company’s loan policy.

Look for ones that check for your housing situation, bills, and income.

It is also a plus if you have been with your current employer and residence for at least a year.

This shows your potential creditors that you are stable and won’t move at the drop of a hat.

Secured Credit

If you have a savings account, many banks will issue a line of credit against the amount in the account.

They also will probably lock the account against withdrawal until you begin to pay back the loan.

They have their money, either way, so you are a pretty safe bet for credit.

Passbook Loans

This is similar to secured credit loans. The big difference is you don’t get the money.

Instead, you are using the money to open up a locked savings account. As you pay on the loan, the money then becomes available in the account.

This is a great way to build credit and savings at the same time since you did not have to have the money already in the account to get the loan.

Collateral

Some banks like the one I use no longer offer passbook loans.

They offer a loan against something of equal value such as a vehicle or laptop.

Do your homework first as some banks have a minimum amount on this type of loan and the item must be worth at least the amount.

Credit Unions

Credit unions are a little bit more relaxed in their approval process.

If you qualify for membership, it may be easier to get a credit card from one of these companies.

Many of them will even offer to mail you a free credit report if you are turned down.

Student Credit

Many banks are less liberal in their approval process for college students. If you are currently a student, this may be the route for you.

Store Cards

Nearly every department store, grocery store, and gas station around is now offering a store card.

These are much easier to obtain because they can only be used at that company.

The important thing, though, is that they are reported to the credit bureaus so they can still help your credit history.

No matter which method you use, once you get a credit card, be careful with it. Always think before you spend and make sure you can pay back the loan.

Credit cards can help you establish good credit and build a bright future, but if used unwisely, they can also cause many headaches that will take forever to go away. Guard your credit with your life!…