How to keep a good credit record

MANILA, Philippines – Having a bad credit record will pose problems when applying for a new loan or a credit card.

Someone with bad credit score is also more susceptible to unscrupulous money lenders.

To maintain a good credit history, Alex Ilagan, the executive director of Credit Card Association of the Philippines (CCAP), said it is important to stay gainfully employed.

A steady income stream looks attractive to banks and credit card providers because it means having the ability to pay for goods and services and being a low-risk borrower.

It also helps if you have held a job for a long time.

Building a good credit record also requires being a responsible credit card user.

Ilagan said to improve credit score, bills should be paid in full before the deadline.

Missing a credit payment will negatively affect personal credit records.

Owning a credit card is also useful as several service providers, as well as government institutions such as consulate offices processing visa applications—and even hotels, require individuals to present a valid credit card as proof of their financial capacity.

Opening a checking and a savings account can also help in proving financial stability.

“Managing your financial affairs well, and being prudent will help you improve your credit record, and your ability to achieve you and your family’s future dreams,” Ilagan said.

source: www.abs-cbnnews.com

Guarantor loans for those with bad or no credit history

People take out loans all the time, and this could be for a number of different reasons. Some people however will find it very difficult to take out a loan if they have a bad credit history or no credit history at all, and this could result in you having to pay an incredibly high rate of interest and you could find yourself in serious financial issues. This of course is a very slippery slope, but thankfully there is a type of loan available which is ideal for those with a bad or no credit history. This type of loan is called a guarantor loan, and it works by a second person making the repayments if you are unable to, and this means that the loan is unsecured and not attached to a property.


A guarantor loan is a great solution for those who have previously struggled to obtain a loan, and this is because they have a lower interest rate and there are no upfront arrangement fees. These types of loans are also ideal for non home owners too as you do not have to own a property because instead you will have your second person to rely on making the payments if you can’t. Another great advantage of taking out one of these loans is that it will allow you to build up a good credit history as long as you can make the repayments on time.


If you have found a friend or family member who is happy to be your guarantor then you are a big step closer to getting that loan that you need. As long as you and your guarantor are both in full time employment then you can apply online at www.1ststop.co.uk where you can apply for loans between £500 and £5,000 with terms from 12 to 60 months. Each month you will make your repayments, and if for some reason you are unable to then your guarantor will step in to make these payments until you are able to resume.


Your guarantor can be anyone that you like but they cannot be financially linked to you and they will also need to have a good credit history and be a UK homeowner. Once you have found a friend, family member or colleague who is willing to be your guarantor you can begin the application process and before long you will have your loan approved.

source: everythingfinanceblog.com

Students and credit cards – searching for the best deal

In recent years, the cost of going to university has risen greatly. From 2012, many institutions saw a dramatic rise in the tuition fees per year to attend campuses around the country. In some cases, the costs rose to a staggering £9,000. This has led to around a 15% drop in applications in many cases, according to sources such as The Guardian who explained university applicant numbers fell by 8.8% in 2012 and 7.2% in 2010 (totalling 16%).

One way that many students who do still wish to attend university are able to find the breathing room to study through difficult financial times is by using a credit card. If you are thinking about using one yourself, then here are a few key points to make sure you get the best deal.










Low APR

A low APR (annual percentage rate) is essential when looking for a credit card. This will ensure that your repayments are affordable and attainable and using your card will not land you in trouble at a later date with high fees to pay off when you come to leave university. The graduate job market is a difficult one at the moment so you should always plan ahead for every eventuality.



A good credit history
A good credit history simply means that you have shown diligence and capability when paying off any direct debits or contract-based payments for items such as mobile phones or electronic goods. As long as you have kept up repayments successfully on anything you are either leasing contractually or have rented then you will be able to get the best deal possible.

Credit reference agencies such as Experian and Equifax will run your credit score based on your past ability to keep up with any repayments. Making sure you always have enough in your bank to cover your expenses will help you greatly.



Seek a student friendly card

There are now actually many cards out there on today’s market that do cater for students. Having seen such a rise in the cost of living, particularly when studying in an expensive city like London with its vastly high cost of living, many cards now do offer student-specific rates.


You can find out about the advance card which is on offer from aquacard and offers very reasonable rates for low-income students in need of financial assistance or alternatively search for other student credit cards to consider all of the options which are available to you.

source: 20smoney.com

Tips That Will Get You The Best Home Loans Available

Obtaining a home loan is a process that many people have little experience with, leading them to make mistakes that can cost them a great deal of money.  Although some guidance can be obtained from the lender as you are going through the process of obtaining the loan, it is best not to rely on the lender’s advice alone.  Here are some tips that will help you get the best home loan for your current financial situation, allowing you to buy the home you desire without paying more than necessary.





 


Read And Understand All Of The Terms Of The Loan

Many people make the mistake of signing up for a home loan that they do not understand, trusting that the lender has their best interests at heart.  They fail to realize that the lender is going to try to do what is best for the business, not necessarily what will save the borrower the most money.  It is important for you to educate yourself on the different loan types and features so that you can make an informed decision about which loan product to choose.  There are many people facing foreclosure today because they took out a home loan with terms they did not understand, not realizing how the loan would affect them financially in the future.

Choose A Traditional Loan Product

Over the past decade, many exotic home loan products have been created to appeal to niche borrowers that may or may not benefit from the terms of these products.  Exotic home loans are designed to satisfy certain financial requirements and may have uncommon loan terms that must be fulfilled for the loan to remain in good standing.  Because these home loans can have several traps for the unwary, many first time homebuyers prefer to obtain traditional home loans.  Traditional loans often have fixed interest rates for the life of the loan and generous repayment terms that allow you to pay a reasonable amount over a significant period of time to pay off your home.

Examine The Interest Rate Carefully

One of the most important details to pay attention to when attempting to obtain a home loan is the interest rate that will be charged for that loan.  A number of different factors may be used to determine the interest rate that you are charged by the lender for your home loan.  A large part of the calculation will be your credit score and your credit history, with a high credit score and good credit history resulting in a lower interest rate.  The lender that your loan is being obtained from will also affect the interest rate of the loan, but the lender offering the lowest interest rate may not be the best lender to obtain the loan from.  You should take all factors into consideration when choosing the best home loan for your needs.

source: everybodylovesyourmoney.com

Five Key Facts About Credit Ratings

Having a good credit history is very important when it comes to making an application to borrow money, and most people agree that credit ratings are extremely important. However, very few people actually know precisely what a credit rating is and how they’re constructed, so we’ve pulled together five key facts that will give you a much clearer idea about everything concerning credit.



A lot of people say “it’s too complicated to check my credit history” but it’s actually very easy with companies like CreditExpert and time extremely well spent. You have the right to see your credit rating and to make sure that any errors that are on it are corrected immediately. Most of the time the credit companies will do amend any errors for free. Bear in mind that simple things like old mobile phone contracts that were never fully cancelled can have an effect, so it’s good to do a spring clean at least once a year.

Black Lists Don’t Exist

Each lender has their own criteria of what represents the perfect customer, and it might not necessarily be the same from lender to lender (in fact, the odds are that it’s not). So, just because you’ve been turned down from one bank doesn’t mean that you’ll get turned down by another. However, it’s a good idea not to make too many applications in quick succession, as each time you do a ‘search’ will be carried out on your credit rating, and too many searches in a short period could raise the alarm.

Profit Is More Important Than Risk

Most people assume that the banks decide who they’ll lend to on a basis of risk. If you’re not likely to pay back any debt in full, they shouldn’t lend. Unfortunately, that’s not the case, if you have a perfect credit history, never have credit card debt and pay everything off in full as quickly as possible you could still be rejected because you won’t make the bank very much money. This is rare but it does happen.

Use Your Rights

As mentioned above you can correct any errors on your credit report simply by writing to the credit agency concerned, however, sometimes you may have to talk to the company who filed the report, rather than the credit agency. There are a whole strings of rights attached to credit reports, and you should never have to pay to have something amended. If you’re having real problems, you can always talk to the Citizen’s Advice Bureau.

Your Credit Score is Not Fixed

You may have seen adverts for products that will ‘repair your credit score’ and these will usually cost you money without making any difference to your score. However, there are a whole list of things you can do to improve your credit rating, whether it’s something simple like getting on the electoral roll, or cancelling an old phone contract. So, if you do check your rating and it’s not so good, there’s no need to fear the worst.

source:  christianfinanceblog.com