Refinancing With Low FICO Credit Score

Guest Editorial:

"Bad Credit Refinance Loans - Refinancing With A Low FICO Credit Score"

By Sharon Listner

Your financial situation may have changed for the worse since you first purchased your home. You may have had a great credit score, above 700, back then ... but now you find yourself with a low FICO score below 640 (be it 450, 500, 550, 600 or 620).

Now you need to refinance your existing mortgage loan to take cash out of your home for a home improvement project, credit card debt consolidation or other purposes.

The big question is this: "Can you get a mortgage refinance loan with a low credit score?

The answer is "yes".

Contrary to popular belief, life doesn't end, when your credit score dips below the magic 670 number.

Yes - it is a true that a person with a FICO credit score above 670 will find it easier to get a mortgage refinance loan than a person with a low credit score - but this is doesn't mean that you cannot find a loan.

How to find a poor credit refinance loan


1. The key to finding a lender, who specializes in low credit score refinance loans is to do your research. The power of the internet cannot be underestimated, when it comes to shopping for a poor credit refinance lender.

2. Once you find a lender, ensure that you complete their application form, thoroughly. Remember that you are competing with other applicants, who have excellent credit scores. Leave nothing to chance.

3. Be truthful on your loan application. Don't indicate a "fair" credit rating (620 and above), when you have a "poor" credit rating (any credit score below 600). A lender who specializes in low credit score loans is used to working with consumers with all credit scores and will not turn you down immediately, upon seeing a credit score like 500. Other details on your application form, will factor into the lender's final approval decision.

Research recommended bad credit refinance loan lenders and the various products, they offer at the loan resource guide: http://www.kstreetloans.com.

Sharon Listner writes about finance and conducts in-depth analysis on various consumer mortgage loan products.

Article Source: Sharon Listner

Beware Hidden Costs of Bad Credit

GUEST EDITORIAL:

"The Hidden Costs of Bad Credit"

By Brian Edmondson

Many people don't know or care about their credit. In a lot of cases they may either jokingly say, "I probably have bad credit" or unknowingly assume that their credit is good.

Most people just assume it's either good for fair… but certainly not poor. The realization that their credit is actually considered bad usually isn't made known until it's too late.

Usually the consequences of bad credit are pretty obvious.

Want a store credit card to buy that big screen TV? Denied.
Want to get that new car at the special financing rate? Not a chance.
Looking to lease a new apartment or purchase a new home? Not without a big deposit.

While these are the obvious consequences of not having good credit, there are also many hidden costs of bad credit which you may not be aware of.

Here are 3 of the not-so-obvious costs of bad credit:

1. Higher Interest Rates

This applies to just about everything, whether you are getting a new credit card, purchasing a new car, or buying a new home.

The lower your credit score, the higher your interest rate is going to be. While the rate difference may appear small (the difference between a 7% rate and 9% rate is only 2% right?), the amount you will pay over the term of the entire loan (5 years for a car; 30 years for a mortgage) adds up to several thousands of dollars more.

Be especially careful of credit card offers. They will offer you the card at a very low rate (2.9%, 8%, or 11%) but have very small print that allows them to skyrocket the rate anywhere from 18% to over 20% if you are late on just one payment or go over your limit.

2. Higher Car Insurance Rates

Yes it's true.

Car insurance companies will base your premium on your credit score.

Even if you've never been in an accident, never got a speeding ticket, and always wear your seatbelt you won't get the best rates.

A bad credit score may result in higher insurance premiums and may even result in a denial of coverage!

3. Higher Financial Stress

When most people talk about the negative effects of bad credit, they usually talk about the numbers: credit scores, interest rates, monthly payments, etc.

However, one of the biggest consequences of bad credit is the financial stress it causes in life.

The more money you spend as a penalty of having bad credit means less money in your bank account at the end of the day. Less money lead to more stress, which can have negative effects on you, your job, and your relationships.

Half of all marriages end in divorce, and usually financial problems are cited as a leading cause of a failed marriage. Bad credit certainly doesn't help the situation.

The number one financial mistake people make is not knowing what their credit score is and understanding the consequences of good and bad credit. While there are many obvious disadvantages of having bad credit, there are also many hidden disadvantages of having poor credit.

Knowing, understanding, and managing your credit is an important part of your financial plan, as it effect just about every aspect of your life.

Brian T. Edmondson is a recognized authority on the subject of credit repair and bankruptcy recovery. His web site, http://www.SuccessAfterBankruptcy.com, provides a wealth of informative articles and resources on everything you'll ever need to know about reparing your credit and/or recovering from Bankruptcy.

Article Source: Brian_Edmondson

New E-Book Offers Quick Credit Help

You can take the first step right now and click below to start improving your credit score with our newest e-book available for immediate download!

"How To Fix Your Credit Report For Free!"

It's never too late to get started cleaning up your credit history and giving yourself a fresh start. Only $1.95.... Download your personal copy today!

Top 5 Free Debt Reduction Websites

Here are 5 websites to visit to get free debt relief know-how:

Debt reduction calculator can be found at:
CNN.COM MONEY.

AARP also has a debt-reduction calculator on its website: AARP.ORG.

Financial expert Dave Ramsey offers insight into the truths about debt reduction here: DAVERAMSEY.COM.

Quicken offers a debt an online planning tool to help you build an action plan to escape debt: QUICKEN.COM.

Amazon.com published one of our own articles from FindHow2.com on how to reduce debt and fix one's credit: AMAZON.COM HOW-TO GUIDES.

Visit our top picks for credit repair and debt consolidation books available online.

End of year thoughts and musings

As 2006 fades and 2007 approaches, this is a good time to reflect on the year gone past, and the challenges and opportunities looming ahead.

We appreciate the opportunity to help spread free advice on credit repair, debt consolidation and financial budgeting tools to our readers. We aim to do more in 2007.

It's important to thank the participating authors who freely offer their advice and experience in credit counselling, especially the authors at Ezine.com.

Our goal in 2007 is to offer easily downloadable tools to help anyone who is willing to make the hard decisions and stick to a budget get themselves out of debt and stay out of debt.

there's really no mystery to it: Set a goal, do a little to reach it every day, and soon you'll get there. Debt free. A great credit report. Money in savings. Peace of mind.

And peace of mind and spirit is what we wish for every one of you this coming year. We value your readership and we hope we have helped you along the way. Please invite others you know to visit us, to learn, to share, to get free of debt once and for all, and to start enjoying life.

Best wishes and peace in 2007!

Sincerely, Steve Johnson

fixyourcreditreport@gmail.com

Find how to pay down debt free

Here's a helpful article on how to get a handle of your debts: "How to Pay off Holiday Bills in January".

You'll be well advised to follow this advice, and to get your credit report cleaned up. We've added more new, free articles at our sister site: FindHow2.com.

Once there, you'll find free tips on how to improve your FICO credit score, consolidate debts, and get a handle on your out-of-control budget.

Tips For Fixing Your Credit Report

When you first start to repair your credit, the task may seem daunting. But keep in mind that others before you have successfully learned how to fix bad credit. The techniques and strategies on credit repair found on this blog will help.
The simple steps include:
1. Know what's in your credit report. Order all three major credit bureau reports from http://www.annualcreditreport.com/, and examine your free credit reports for any errors. Fight identity theft by monitoring and reviewing your credit report. You may request your free credit report online, and you'll also have the option to get your report via the telephone or through snail mail. Often, you'll discover that outdated information is still showing up in your file, and simply by requesting that these errors be removed, your credit score should start inching upwards.
2. Know your budget. Realize that your income is all you have to work with, and that you must budget accordingly. Take a good hard look at your monthly bills. You'll be surprised how many "essentials" can be cut out of your monthly expenses without really impacting your lifestyle.
3. Know your financial goals. Know "why" you want to do something, and you'll find "how" to do it. Why do you want a better credit score? To qualify for a home loan? That's a great goal. But if you want a better credit score and a clean credit report to qualify for a larger home than your budget will allow, that's not such a great goal. Look long range. Having good credit will help you achieve your long range financial goals.
4. Know that it will be hard... but worth the effort. Fixing your credit is simple to do once you know how. But easy? No. There are reports to wade through, letters to write, phone calls to make. Letters to send off again, and again, and again. But in the end, you CAN fix your bad credit yourself. And having a clean credit file when someone does a credit check on you when you apply for a loan in the future will make all the work it takes worth the time and effort.