How to Fix Your Bad Credit in Our Down Economy

With the recent economic turmoil, almost everyone's account is taking the hit and finding it hard to keep their financial ratings high. In fact, this is probably the reason why people are unable to find good sponsors and have to end up in a lot of debt and resolve to desperate ways in order to get back on their feet again.

What is the optimal solution that is usually overlooked?

The solution in few words is called adverse credit mortgage. Using this option, you should have some hope and not give it up all together. This might probably be the solution that you have been looking out for and just might be the thing that you need to get back your life and rebuild your finances.

Well, but where should you apply for adverse credit mortgage?

There are some places that you can still consider where you can apply for bad credit finance and get counseled on good habits to practice in order to have a good financial score.

Here is a short list of the possible places where you can apply:

* Bank of America in the United States
* Banks that belong to industrial companies. E.g. Volkswagen Bank
* Online debt consolidators

Well, but why should you do this?

* The preconditions of these financial institutions are not that strict like others.
* It is relatively fast to get a decision from them.
* Getting denied from these institutions does not hurt your financial score that bad.

However, what are the top #2 myths about these institutions?

Myth #1: As they offer loans for semi-qualified people, they take high risk. For this, they charge you relatively high interest rates. So be careful not to end up having more debts than before.

Myth #2: Since most people are not completely sure about the different things that can affect their score, they eventually realize their folly but do not know how to go from there. Hence, you might want to avoid ending up in such a position.

So, how to overcome this situation?

Do not hurry and educate yourself quite fine before you start. Never rush after your happiness that you have been accepted there. Read first each line in the contract before you decide.

Additionally, you can even seek bad debt loans where you can get money regardless of your current financial rating and use it to help reclaim your finances and get it right his time around. It is nowadays hard to find but with some patience in the searching process, it should be possible to find something suitable for you.

What should you do then, if everything did not work out?

Also, it might be suitable to apply for personal loans for debt consolidation. If you can explain your situation accurately enough, there might be people willing to hear you out and help you with your situation.

In this manner, you can perhaps try and get financed despite your poor situation. There is also the option of personal credit mortgage that you can consider if everything else seems to be out of reach or not possible for some reasons. However, you should first try getting adverse credit mortgage.

READ MORE - How to Fix Your Bad Credit in Our Down Economy

How to Get a Low Interest Credit Card Without Breaking the Bank

If you are looking for low interest rate CC, you have quite a few options available. There are many banks and companies out there that offer various options and card types, and this makes it more difficult for you to find the best one that will suit mostly your needs. This is why it's important to know the basics, so you have an easier time wading through all that credit card information before you decide on one.

There are many credit card companies that offer an introductory low interest rate. Sometimes this low rate can be as low as 0% up to the first one year. Several banks offer these types of cards, including American Express, Chase, City and so on.

The problem comes when the introductory offer is over and you have to pay a Purchase APR interest rate. This basically is an Annual Percentage Rate which can be quite high. Depending on your credit score it can be low as well, down to 9%. If you have a good credit score you can even get cards with an APR as low as 5.5%, but you have to do some searching of your own to find them.

It is also important to know about the letters "V" and "F". "V" means variable, while "F" means fixed. If your card has a "V" on it, it means that the rates can change at any time, while "F" means that you have all the times the same rate. Obviously it is better if you have a credit card with an "F" on it rather than one with a "V", since your APR will stay at the same level as originally agreed.

How much credit and APR you will be able to get depends on your credit score greatly. There are however places that can give you credit cards with great APR and low interest rates if you only find some great deals which are out there. For example even if your credit score is rather poor, if you can show that you had steady income for the last couple of months, there are CC companies who will be forthcoming and help you with a deal that will be suitable to your income level.

Just make sure that you check out the small print as well, so you don't end up with some high APR that you won't be able to ever pay back.

This is why improving your credit score is crucial even before you apply for a new CC. Make sure that all your bills are paid on time and don't ever let them go to collections. Keep your credit card balances very low, even at zero if possible, and every year once check your credit score. If you have a high credit score, many doors will open to you, including getting low interest rates on car loans, or mortgages, on personal loans, and of course on credit cards.

READ MORE - How to Get a Low Interest Credit Card Without Breaking the Bank

Think of Your Credit As a Job

1. Personal Information

This is the easy part-name, social security number, etc. Give it a quick glance to make sure it is correct. If there is more than one spelling of your name, or any other inaccurate information, it is okay provided the correct information is there as well. That is because if someone submits inaccurate information, they leave it on your report in case they resubmit something with the same wrong information at a later date-it just makes it easier to find you.

2. Credit History

Typically, this involves a list of all of your past credit: the name of the creditor, account numbers, etc. It also includes when you opened the account, the kind of credit, whose name the credit is actually in, the total amount, how much you owe, minimum payments, status of the credit, and, of course, how well you have paid the account. If that is all in English, great, but sometimes they use codes and such.

Some terms you might see:

• Internal Collection: They are in the process of trying to collect the debt.

• Charged Off: The creditor tried to collect the debt, could not, and threw in the towel.

• Numbers prefaced by R or I: These numbers range from 1-9, with lower numbers indicating a good payment history.

3. Public Records:Hopefully, this section is empty. It is the part that destroys your credit report-bankruptcies, defaults, and the like.

4. Inquiries:This is simply a list of anyone who is ever asked to see your credit report. Do not worry too much about this: It has a relatively small impact on your credit rating.

Once you understand your credit report, there are four possible courses of action:

1. Fill out the attached form to correct errors.

2. Work on ways to maintain your good rating.

3. Begin building up your nonexistent rating.

4. Tackle the problem of bad credit.

Think of Your Credit as a Job

READ MORE - Think of Your Credit As a Job