Bad Credit Loans Blog

Great Tips and Advice for Managing Your Money

Hope everyone is had a relaxing holiday season.  :) Below, is a blog from The Phoenix Group, https://thephenixgroup.com.  It has some good pointers to keep in mind if you happen to be unlucky enough to come across debt collectors who don't work within the rules.

If you’ve ever dealt with bill collectors and debt collectors, then you know how stressful it is. Most debt collectors are polite and offer reasonable options to help you take care of your obligations. However, there are those who are not courteous or professional, and they can make your life a living hell. Especially, when it hits your credit report & makes it difficult to do credit repair

debt collectionDebt collectors do have restrictions and are subject to the Fair Debt Collection Practices Act (FDCPA). This act requires that they engage in fair practices when attempting to collect a debt. Still, there are those debt collectors that walk a fine line between what’s acceptable and what’s not.

The FDCPA was passed in 1977, and the idea was to protect consumers against unscrupulous and unfair debt collection practices. Since this act's passing, most of the violations and bad practices have stopped, but there are still companies, such as Transworld Systems, that employ tactics that make life rough for consumers.

Transworld received countless complaints regarding their debt collection practices and have been in trouble with the Federal Trade Commission. Here are a few things to watch out for when dealing with a debt collectors such as Transworld Systems.

Outright Harassment

According to FDCPA, debt collectors cannot leave robocalls or send unsolicited text messages. They can’t use foul language. If they send you mail, the envelope can’t contain information about debt collection that could embarrass you. Lastly, debt collectors can’t repeatedly call you.

Threatening Violence

Debt collectors can’t threaten a consumer with violence nor can they pretend to be law enforcement, a government agency or have the authority they don’t have.

Unreasonable Correspondence

Debt collectors can’t call you at unreasonable times. For example, if you wish not to be called at work, they must abide by that. Also, debt collectors can’t call before 8 a.m. or after 9 p.m., or after the regular working hours of the consumer, if they’re not on a standard 9-5 schedule.

Ignoring Request For Proof dect collection final notice

If a debt collector is contacting you, they’re legally bound to provide you with the proof of that debt should you request it. They must send this request to you in writing, and it must contain all of the details regarding the debt and the collection agency assigned to your case. If you see any inaccuracies, you have the right to dispute them.

Mislead You

A debt collector can’t agree to do something for you and then not follow through. For example: If they tell you they’re going to clear your debt with the credit reporting agencies if you settle up, then they must follow through with that. If they do make a promise, make sure to get it in writing.

Document Everything

When dealing with debt collection agencies such as Transworld Systems, it’s vital you get everything in writing. Avoid discussing these matters with their agents over the phone in favor of a paper trail that can be used as proof should you need it. This is essential when doing credit restoration as well.

 

All of us have experienced this scenario:  You get in your vehicle and there is that insidious “Check Engine” light telling you for the past week that some costly expense is bound to happen soon.  Don’t you just hate that “Check Engine” light?  We all know it is there to help.  But, one can’t help but to feel like “That light has it in for me.  This is personal.”

Your First Impulse?

My first reaction in such cases is to feel irritation.  You can mentally see the domino effect: take vehicle to mechanic, get charged just to have the vehicle checked, have the car technician approach you with a grin and a repair estimate, and then you think “How much? Mercy!”.  But you need your vehicle and are compelled to have the vehicle checked and repaired.  At times the repairs can wait until you save some money saved and other times it needs to becar engine light taken care of ASAP.  Some of us will have the funds or the credit card to pay for the repairs, but, some of us won’t.  For those who don’t have the funds or the credit cards to pay for the repairs, the first impulse may be to get a Personal Loan instead of asking a friend or relative for help or getting a loan from your employer.  The reasons vary.  Maybe asking friend or relative for some financial help feels embarrassing.  However, there a good reasons for you to consider other options before getting into a debt.

Personal Loan Vs Family or Friend’s help or An Employer Loan

If no family or friend can offer some small financial help, a Personal Loan may be the way to go.  And to some of us, we just don’t want relatives or friends knowing our financial woes.  However, keep in mind that a Personal Loan will be a negative onto your monthly budget as most personal loans are paid in installments over several months.  Furthermore, you will be paying back, not only the amount borrowed, but also origination fees and interest among other fees.  This means less spending money for fun stuff.  Also, you would have to follow a somewhat rigid payment schedule with possibilities of getting late fees if not paid on time.  And the loan may be reported to your credit. 

LOANS CHAINIf you are lucky enough to be able to borrow some funds from family or friends or even an employer, you will still need to repay it.  Consider the benefits: the repayment arrangement may be easier on your budget; you will most likely not be charged a late fee if you are a little late on the payments; and if you are dealing with someone who likes you as a person, having to repay interest or other fees won’t be required.

The choice to get a Personal Loan or borrow from other sources is totally personal.  Both have the plus and minuses.  However, at a time when we see more people getting into more and more debt, we are hoping these few points will help some to make the best personal financial decisions. 

As a side note, for those who are interested in ideas to improve their credit, you may want to visit this link for Top 20 Credit Repair Blogs, https://blog.feedspot.com/credit_repair_blogs/

Hello.  Hope everyone is having a relaxing holiday season.  Below, is a blog from The Phoenix Group, https://thephenixgroup.com, that has some interesting points for those looking for ways to improve their credit.

Millions of Americans deal with an incredible amount of debt. As of March 2018, American household debt alone reached $13.21 trillion. As the amount of debt rises throughout the country, credit scores are bound to sink. Which makes credit repair a must for some people. If you’re one of the unlucky individuals that are dealing with a sinking credit score, you’re not alone. Here are a couple situations that might have destroyed your credit score, along with millions of other Americans. credit repair with calculator

Foreclosure is one of the most prominent situations that significantly lower credit scores. Over two million homeowners have dealt with this unfortunate event since 2009. Also, you may have been one of the millions of individuals that claimed bankruptcy since 2009. There are also many other small situations many of us deal with, like delayed payment of a bill, that negatively impact your credit score. But, with the recession of 2007 to 2009 behind us, as a country, we are better equipped to repair our credit scores than we were ten years ago. If you’re looking to rebuild your credit score, then read on to learn more.

Monitor Your Credit Score

First off, the most important thing that you can do is be aware. Get a free copy of your credit score and analyze it. If you find any inaccuracies in your report, resolves those issues ASAP with the three most prominent credit monitoring bureaus: TransUnion, Experian, and Equifax. Then, once everything looks accurate, monitor it as much as possible.

Make Payments on Time

Over a third of your credit score is measured by how often you make payments on time. Even if you’ve had a spotty past with your payments, focus on making sure you get every future payment out on time. Each timely payment will positively affect your credit score.

Get Current on Delinquencies  erase bad credit

A third of your credit score surround your debt to credit ratio, so it’s incredibly important that you get current on those delinquent accounts.

Avoid Closing Accounts

When you close accounts, you damage your credit in two different ways. 15% of your credit is based on how old your credit history is, so the older your account is the more credit history they have to take from. When you close an account, you wipe out all the credit history the account is linked to.

Also with closing revolving accounts, it makes your debt to credit ratio smaller. Make sure that all your accounts, even those with minimal balances, are still getting used. If they’re not, your credit company might close it before you do.

Diversify Your Credit

Be sure to have a couple credit lines through your accounts. Relying on one credit line (i.e. credit cards) will do you more harm than good.

Always Pay Down Your Debt

Paying more than the minimum payment on your debt will inevitably help your debt to credit ratio. The less debt you have compared to your credit, the higher your credit score will be.

Think Before You Take On New Debt

Taking on too much new debt too quickly will negatively affect your credit score. For example, taking on three new credit cards in three months is probably not a good idea. excellent credit score

Being aware of your credit score and monitoring it is the first step to achieving your goals. By doing things such as paying down your debt, making payments on time, and getting current on your delinquencies will help your credit score in no time. Following these steps will help start building credit again for you & your future!

If you are looking for other tips to repair your credit, you may try this link with Top 20 Credit Repair Blogs, https://blog.feedspot.com/credit_repair_blogs/

Personal Loans are typically closed ended loans with a specific first payment date and maturity date.  If all payments are made on time, then the term will end as scheduled and everyone is happy.  As an attempt to keep making payments on time,  many people with Personal Loans opt to have payments debited automatically from their bank accounts on payment due dates.  To the borrowers’ benefit, having the payments debited automatically makes it less likely that an account will accrue late fees for non-payment within that due date grace period.  However, what happens after a payment is dishonored by the bank but I keep making all future payments.  It’s just one little missed payment.  How bad can the consequences be, right? debt on chalk board

What if I don’t make up the one missed payment but pay all future payments?

When a debit or payment is returned by the bank, most vendors will charge a Non-Sufficient Funds fee.  This is in addition to what the bank will charge the owner of the account.  So think to yourself two NSF fees.  As future regular payments hit the account and clear, that NSF fee will be paid first and late fees will begin to accrue with every payment.  The NSF fee and late fees will be paid first from the regular payments and whatever is left will be applied to interest and then principal. I know what you’re thinking, “so, I get charged one NSF fee and one late fee.”  To that, I have to answer “brace yourself.”  As time goes on, if future payments clear, by the end of the term, that single payment that came back NSF will have caused extra interest and many late fees to accrue with EACH payment.  Imagine if you missed the 10th payment on a 24 month loan schedule.  That translates into additional late fees for each of the future 14 payments.  At the end of the term, there will also be a principal balance due.  Remember, as mentioned above, that fees get paid first and what’s left over is used to pay down the principal.  This means the loan will not be paid in full as scheduled.  Also, keep in mind that the missed Insufficient funds check articlepayment may affect your credit score as it may show the account as being constantly one payment behind.

 

I got it!  What if I make up the missed payment but not the NSF or late fees?

Even with an extra full payment made to make up the one missed installment, if you do not also pay the extra NSF Fee and late fees, this will still cause extra interest to accrue by the end of the term.  But, the good news is that no more late fees should accrue.  Also, the credit report will show that the account is current on payments.  But, towards the end of the term, not only will there be a principal balance, there will also be extra interest accrued.  The loan will not be paid in full as scheduled.

Alright, bottom line it for me.

The best way to deal with a missed payment is to immediately make up the payment with the NSF fee before a late fee accrues.  This will save a significant amount of money towards the end.  If that’s not possible, try appealing to the lender’s need to keep a good customer and ask to have some of those fees reduced or waived.  This will work particularly if you have a good payment history.  After all, you have other choices.  If all you did was miss one payment, there will be other lenders who may refinance your loan.  Another option is to save up a little bit of cash.  As soon as there is enough to make up the missed payment, pay it.  At least that will reduce the damage at little, even if few late fees have accrued.  However, the longer you let an account stay behind, the more disappointed and surprised you’ll be towards the end of the loan. credit score pic

As a side note, if you are interested in tips on how to repair your credit check out this link with top 20 credit repair blogs, https://blog.feedspot.com/credit_repair_blogs/

We received this blog below from The Phoenix Group, https://thephenixgroup.com/.  Thought it would be good to share for those interested in improving their credit score.

Many Americans who have bad credit still need to get a loan. Having a FICO score of 620 or lower is considered in the bad credit territory. A score this low prohibits one from getting a loan under reasonable terms, but that doesn’t mean it’s impossible.

It’s vital to know your score before you apply for a loan, and if it’s not where it needs to be, consider working to raise your credit score before you apply.credit score pic

What Does Bad Credit Mean?

Our consumer culture encourages people to buy now and pay later, and many people are happy to do just that. And, unfortunately, many people aren’t adequately educated on responsible financial practices and end up ruining their credit rating, which makes it tough when applying for a car or home loan. Being smart with credit, and knowing how to fix bad credit, are essential for your financial well-being. As stated, bad credit is a FICO score of less than 620. A score of 630 or higher is considered fair, and 720 and up is deemed to be good to excellent.

What is a Bad Credit Loan?

A bad credit loan is a loan given to those people who have lower than average credit scores. These loans are typically high interest and come with many fees, but if you need a loan and have bad credit, you’ll have to take what you can get. The key to a bad credit loan is to repay it quickly and never miss a loan agreementpayment; doing these two things significantly improve your credit score.

What’s the Difference Between Secured and Unsecured Loans?

There are two main types of loans for which one can apply: Secured and unsecured loans. The secured loan requires the borrower to put up some collateral such as a home or vehicle to guarantee payment. Lenders typically give unsecured loans to people who have proven themselves trustworthy with credit, and who have good to excellent credit. Both of these loans can be helpful to build up your credit, but the key is to be vigilant about making payments and to pay them off quickly.

Types of Secured Loans

A payday loan gives a person fast cash. The borrower writes a check that they give to the lender who cashes it on the borrower’s payday. Another type of secured loan is a Title Loan. This loan uses your property as collateral to guarantee repayment. Property can be real estate or a vehicle. If you default on the loan, the lender gets the title to your property. Both of these loans are helpful for building credit but beware of the high interest and fees that come with them.

Types of Unsecured Loans

If you have bad credit, you may still qualify for an unsecured loan, but be prepared for interest rates from 100 to 300%. Most of these loans require a credit score in the mid to upper 600s.

Two important keys to rebuilding your credit are to be on time with your payments and to carry a low credit to debt ratio.

If looking for other tips to repair your credit, you may try this link with Top 20 Credit Repair Blogs, https://blog.feedspot.com/credit_repair_blogs/
 

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