Tag Archives: lenders
Loans: 4 Keys To Better Loans and a Better Credit Score! (Page 1 of 2)
How you manage loans impacts your FICO score more than any other factor in your credit history. It’s true, you are scored heavily on the kinds of loans you have, how many months or years you have had those loans, how much you owe, and your repayment history, are key clues that credit bureaus use to arrive at your credit score. If you can wisely manage your loans, you will add points to your credit score quickly. Here are 4 key tips…
1. When the time is right you should try to refinance your high interest loans.
If you have high interest rate loans, especially on big ticket items like a motor vehicle or home mortgage and interest rates drop two points or more in the market, investigate refinancing some or all these loans. This is especially true if your credit score improves to above 700, even above 750 would be better. But, be wise about how you carry out this tactic.
First, shop loan sources other than the creditor that has your loan now. This way you may force your current lender to compete for your continued business by offering a more favorable interest rate. At the same time, do this only with those lenders who are obviously only interested in making money on you. Stick with lenders with whom you have a good long-term relationship but advise them that you are looking for a lower rate on your loan.
When shopping for credit give potential creditors only your credit score, not your Social Security number, for them to come up with a quote. Giving your S.S. number results in inquiries on your credit report which can damage your score. When they use only your score, no inquiries are recorded.
When seeking loans, you are looking for a lower interest rate or better repayment terms or both. By getting a better interest rate you will save hundreds, perhaps thousands, of dollars in interest. At the very least, getting more favorable monthly repayment terms that you can comfortably afford, will enhance your loan repayment history and automatically improve your score.
Refinancing is ideal for someone who is living from pay-to-pay and having a tough time making their monthly bills and who has been getting late notices or collections recorded in their credit history. It’s also a good idea for someone who has been paying bills on time with no recent negatives in their credit history and who has a good credit score. They will have an easier time refinancing for a better interest rate and more favorable repayment terms.
2. This is not my favorite solution but, if you must, there are loans available for folks with a poor credit history.
If your credit score is really low and you need a loan, you should look into services that provide loans to people with poor credit scores. But, be very careful you do not go even deeper into interest rate debt. There are legitimate lenders who know that some folks with poor credit scores will still make their payments on time if given a second chance and they are willing to speak with anyone that other lenders have denied.
Mortgage Lenders Continue to Stall Foreclosure Activities
Many homeowners who are in pending foreclosure could still sigh relief although temporarily. Major home loan lenders GMAC Mortgage, JPMorgan Chase & Co, and Bank of America continue to observe suspension of a huge portion of their overall foreclosure activities. This is still in line with numerous allegations filed before courts in September by borrowers who claim their foreclosures were improperly handled by the banks.
GMAC admits that its foreclosure activities have significantly slowed down because of the ‘documents mess’ allegations. However, the lender said it has started the review of thousands of its foreclosure cases. The company said it is moving ahead slowly but surely.
JPMorgan Chase last week announced plans to restart its pending foreclosure processes by the end of November. The mortgage provider said it has halted up to 127,000 foreclosure proceedings across 40 states. It added that it expects to go back to its normal speed of processing in less than four months.
For its part, Bank of America has begun resubmission of some of 102,000 pending affidavits across 23 states that are related to foreclosure. It expects the process to be completed in just several weeks. The company said it is still halting foreclosures in 27 states, where court approvals are still not required for the review of such cases.
Mortgage lenders have seized about 909,000 properties from January to October of this year, despite the delays brought about by the foreclosure freeze. They are set to repossess more than a million homes in the entire year. It is expected that such banks would strive harder to go on with their respective foreclosure activities sooner.
Analysts cite several factors for the continuous increase in foreclosures nationwide. Those include major economic woes like higher unemployment rate and lower income. They also added that consumers find it harder today to get approvals for new loans or even refinance facilities, because most lenders have further tightened their respective restrictions for borrowing applications.
The temporary halt in foreclosure activities somehow slowed down the rate of foreclosure. Consequently, the number of repossessed homes sharply declined in September. The trend is most evidently noted in typical foreclosure hotbeds like the states of California, Nevada, Arizona, and Illinois. The temporary freeze was not enough to significantly trim the volume of foreclosure activities in Florida, where foreclosed homes continued to increase in the month.
Check out ForeclosureDataBank.com for additional information about foreclosures.