Friday, July 15, 2011

How Do I Remortgage With Bad Credit?

Remortgaging is a process that allows homeowners to consolidate debt or lower payments by changing lenders. In this process, a new lender with more amenable terms buys the mortgage from the original lender, so that the homeowner can now pay off the debt with a more flexible repayment schedule. It is often possible to remortgage with bad credit, though it may initially cost more and take some serious research on the part of the homeowner. Deciding to remortgage with bad credit can actually help rebuild credit scores over time.

In order to remortgage with bad credit, it is first important to figure out an ideal payment plan for the mortgage. If a person has 15 years left on his mortgage and can no longer afford his $2000 US Dollars (USD) per month in mortgage payments, he may be able to remortgage with another company for a 20 or 25 year term. While this might mean that he would pay more in interest over time, it could potentially reduce monthly payments to a manageable level. In some cases, a remortgage with bad credit can be the difference between keeping a house and going into foreclosure.

Where credit comes to bear in the remortgage process is the availability of interest rates and loan terms. A person with high credit scores may be able to secure much lower interest rates, while the choices of a person that is trying to remortgage with bad credit may be more limited. Nevertheless, many financial institutions specialize in providing remortgages to people with bad credit or a history of bankruptcy, but experts recommend shopping around to find the best possible rates.

In order to remortgage with bad credit, a homeowner will likely need to agree to strict repayment terms with the new lender. A bad credit history intimates that the person is a higher risk for lenders, so the new mortgage will have built in safeguards to protect the profit of the lender. Some of the extra costs that may be involved in remortgaging include a higher initial processing fee, high late payment penalties, and other fees not disclosed in the initial rate of the remortgage. It is important to read all fine print on remortgaging information to ensure that the terms of the new loan are acceptable.

An important step that can be built into remortgaging is the release of equity in the home or property. As a person pays his mortgage, equity in the house is slowly built up. A person facing large debts may technically have the assets to get out of trouble, but since they are tied up in housing equity, the assets are not liquid. A remortgage can include an option to borrow the equity already owned from the lender, hence creating a lump sum to pay off student loans, credit cards, and other debts. While this does mean that equity is lost, if the interest rate on the remortgage is lower than that on other debts, a person may be able to pay off debt faster by consolidating it into the remortgage.
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What are Credit Reporting Agencies?

Credit reporting agencies (CRAs) are for-profit organizations that keep track of your credit history and report on these details to potential creditors, employers, insurance companies, lenders and landlords. They may also be referred to as credit bureaus. It is important to regularly check your credit history to be sure the information is correct and your credit scores are as high as they can be.

There are three primary credit reporting agencies that keep track of your credit history and provide a Fair Isaac Corporation (FICO) score to potential lenders. These are TransUnion® Experian℠ and Equifax®. You are entitled to one free credit report per year from each agency, though FICO scores are not free. FICO scores can be received for what is generally a nominal fee. It is important to check all three credit reports from each credit bureau, because each one can contain different information.

The annual free credit report can be ordered online, by mail, or by phone. You are also entitled to receive a credit report if you are denied a loan due to negative information found on the report. If you find any errors on your credit report, you can then begin to take steps to resolve them. Equally importantly, if you have negative information on your credit report, you can learn how to improve your money management skills, such as paying bills on time and keeping balances on credit cards at a low or zero balance.

Though there are other, smaller credit reporting agencies across the country, the three mentioned above are known as the "Big Three." Each month, these companies collect information on your debts, payment history, credit inquiries, and types of credit you hold to update your credit history and your three-digit FICO score. Credit reporting agencies also collect information from court records, such as a bankruptcy or foreclosure. These major negative events can affect your credit report for seven to ten years. Maintaining positive information, such as making all your payments on time, is equally important as removing negative information.

The purpose of credit reporting is to signify to lenders and other potential people you may do business with that you are a responsible person and a good credit risk. The information found on your credit report will also affect the interest rate you receive if you are granted a loan, which could end up costing you a significant amount of money over the long term. It is simple to receive your annual credit report from the three major credit reporting agencies, and should be something you do every year to be sure the information is correct and to prevent identity theft.
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How Can I Improve My Credit Report Score

Maintaining a healthy credit report score is very important in today’s world. Unfortunately, many situations can take place that damage credit scores, making it difficult to obtain financing when and as needed. If you need to improve your credit report score, here are some tips on how to get started.

One of the most common issues with credit scores is outdated or inaccurate information contained on one or more credit reports. To begin the process of improving your credit report score, your first task is to obtain a copy of your credit report from each of the major credit reporting agencies. Keep in mind that the information on each report may vary, which is one reason why many creditors use at least two bureaus when evaluating the creditworthiness of an applicant. This means you must read all three reports in order to get an accurate picture of what lenders see before doing business with you.

As you read each of the reports, look for any data that is not current. For example, you may find a reference to an account that still shows an active balance, even though you paid it off over a year ago. There may also be accounts showing as open that you’ve closed at some time in the past. Since your credit report scores are based in part on the amount of debt you currently have as well as the number of creditors, contact each of these creditors and request that they update the information on your credit report as soon as possible.

While contacting the creditors is necessary, also make it a point to contact the credit reporting agency and note the inaccuracies on your report. This can also help expedite the process of updating your information and make sure potential lenders see an accurate credit report and score. Make sure to keep following up until you have confirmation that the updates have been made.

There is also the possibility that you will find data reflected on the report that is not relevant to you. False data can end up on a credit report due to errors with a creditor or some similar data entry error along the way. Call attention to the false data at once, and follow up until it is removed from your report. This will make it much easier to determine your true credit report score as of the current period.

Keep in mind that even if you’ve had financial issues in the past, you can incrementally improve your credit score by not falling behind on any current debt obligations. Make it a point to pay at least by your current due date. In the case of credit card debt, try to pay more than the minimum, even if it is only an additional ten percent. More creditors are not only making note of timely payments, but also noting when more than the minimum payment is submitted, and supplying that data to the various credit reporting agencies.

Be aware that there are no quick fixes to your credit report score. Avoid any type of program that claims to increase your credit score in a matter of days or even weeks. Speak with a financial counselor and learn how to communicate with your creditors and the credit reporting bureaus. While the process takes time, you will eventually see improvement in your credit report score.
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What are Credit Reports ?

Credit reports contain information about an individual's background and credit history, and these reports are used to determine if someone is credit worthy. In short, if you pay your mortgage late, file for a bankruptcy, or are denied a credit card, all of these items will be recorded in your credit report.

Equifax, Trans Union, and Experian are the three major companies that compile credit information. These companies keep track of your addresses, mortgage payment history, checking accounts, credit card payment history and other similar information. They also list the balances you owe on your mortgage as well as credit cards. If you are a prompt payer of bills, this will be reflected in the credit reports. However, if you are habitually late with your monthly mortgage payment, store and bank credit cards, and have a judgment against you from a lawsuit, this will also show on your credit report.

Based on your credit history, you are given a score. This score, in effect, determines the degree of your credit worthiness. It tells a bank or lender what the risks are if they offer credit to a consumer. For example, if your credit history demonstrates a lengthy on-time bill payment history and low outstanding non-mortgage debt, your strong score will allow you to get a loan with a great interest rate to buy that new car you've had your eye on. A poor score may result in an outright credit denial, or the loan for that very same car may come with an extremely high interest rate.

In order for a lender or other creditor to obtain a credit report, the consumer must give them authorization. If you have been denied a loan or credit card and you are wondering why, it would be wise to order your own credit report. While Equifax, Trans Union and Experian have been in the credit reporting business for quite some time, they are by no means infallible. You many find mistakes and inaccuracies on your report and such items can certainly weaken your credit score.

If you discover any inaccuracies in your credit report, you should notify the three major companies and supply them with the corrected information. If you, for example, had a judgment against you from a car accident, but you paid the judgment off, you should supply the companies with a "Release and satisfaction of judgment" so they can remove the judgment from your credit file.
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Tuesday, June 28, 2011

What are the Different Types of Money Transfer Services?

There are four different types of money transfer services available: wire transfer, bank draft, Internet money transfer, and money orders. All these methods can be used both domestically and internationally. A money transfer service is used to quickly provide funds to both businesses and individuals. They are typically used in situations where a check would take too long, may not be accepted or where the recipient does not have a bank account.

Wire transfers are one of the more popular money transfer services that are used to move funds from one bank account either to another bank account or to a cash office. The person who is sending the money can create a wire transfer from his or her own bank or from a cash office. In order to complete a wire transfer, you need to have the details of the recipient’s bank or their wire transfer code and location code for the cash office where they will pick up the funds.

A bank draft is a type of money transfer service most commonly used for payments to companies in foreign countries. A bank draft is issued by a bank or money transfer company and is cashable at any banking institution. This method of payment is more expensive than other methods, but is preferred by companies and large institutions due to additional security and audit trail features.

Internet money transfer services have increased in popularity as security has improved. Several large companies specialize in this type of service. Funds can be transferred to anyone with an email account in the world and is available is all recognized foreign currencies. Transfers can be created through a third party, or directly from the sender’s bank account.

Third party companies usually provide a free basic account set up, but charge a transaction fee for every transfer of funds to your bank account. In addition, there is a processing delay of between five to seven days to receive the funds in your bank account. If you are going to use this type of service, check the reputation and conflict resolution steps first.

Several specialized firms offer money orders as one of their money transfer services. The sender goes to the cash office and creates a money order for a specific cash office and person to pick up. The recipient is notified by the sender and is responsible for going to the cash office and picking up the funds. A secret password is often used to validate that the correct person is receiving the money order.
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How Do I Open a Secret Bank Account?

There are many reasons why someone may want to open a secret bank account. One person might consider it in order to save money for the purchase of an engagement ring or an anniversary gift, while someone else might be concerned about his or her financial security when another account is shared with a partner. Whatever the reason, the goal is fairly easy to accomplish, but it will definitely take some work on your part. There are many Internet-based financial institutions and local banks that are suitable for setting up an account. To avoid having mail related to this clandestine account sent to your residence, you could have all correspondence sent to the home of a trusted relative. Otherwise, you should consider renting a post office box, where you can receive mail without having to worry about it.

Many financial institutions offer paperless banking options, which means that statements are sent to your email address — not delivered through the mail — as long as you enroll in the service. You can sign up for a secret bank account online, but it is usually not recommended, since many of them require you to link an active checking account to it, which can be counter-productive. Ideally, you should visit a financial institution in person when setting up your account. It is a good idea not to bank at a location where you currently have a joint account with someone else. An out-of-the-way bank is ideal to avoid seeing people you know during any visits.

When you decide on the bank you would like to use to open your secret bank account, you will need to provide certain information about yourself. In the U.S., it is common policy for a bank to request your Social Security Number (SSN), phone number, birth date, and other personal identifiers. You are also required to provide your physical address. For this reason, when you meet with the bank manager, make sure you tell him or her that you do not want any mail coming to your home.

Bank managers are usually very understanding and respectful of your desire for privacy. If you explain your situation, they can usually advise you about the best way to keep your account secure. You will, however, need to provide them with a mailing address, which can belong to a relative or close friend who has given you permission to use it. If it is your desire to keep the account secret from everyone, a post office box is generally your best option for receiving mail about your secret bank account while maintaining your privacy.

Once you sign up for your secret bank account, you should have a safe, secure place to store your banking information, checks, and bank card. If you do not have a private place where you can store this information, a safety deposit box can be a great alternative. It may even be possible to rent one at the same facility where your post office box is located.
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What is a Safe Deposit Box?

Many of us are afraid to keep our valuables in our homes. Though we'd love to feel as if our family treasures and important documents are safe, the fact of the matter is that the unthinkable does happen. In addition to being the spoils of a robbery, our valuables can become damaged due to fire, flooding or another act of nature. For this reason, a safe deposit box is a good idea.

A safe deposit box is a locked container kept inside of a bank vault. These boxes come in many different shapes and sizes and are made of a fireproof material. They're not free though. A safe deposit box is rented much in the way one would rent a post office box. The amount of money you pay depends on the size of the box desired.

Items that are good candidates for a safe deposit box are important documents, such as the deed to a house or a last will and testament, and treasured family heirlooms such as jewelry. Anything you'd rather not see fall into the wrong hands should be kept in a safe deposit box.

When you rent a safe deposit box, you'll most likely be presented with two keys. Only persons authorized by you will be allowed to access the safe deposit box. This means an employee of the bank will request identification before allowing access to the safe deposit box. Anyone not on the list of approved persons will be denied access.

Should you desire to make a deposit into or withdrawal from your safe deposit box, you and your box will be escorted to a private room. You will be left alone to view your treasures without worrying about who might be taking inventory.

Keep in mind however, that there's a downside to owning a safe deposit box. Since your valuables are held at a remote location, they're not available at your disposal. This means you will not be able to have convenient access to your stored valuables during non-business hours. If you decide to rent a safe deposit box, be sure you give careful consideration to those items you opt to store at the bank.

In the long run, the benefits of renting a safe deposit box far outweigh the disadvantages. When it comes to your family treasures, it's better to be safe than sorry.
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