Friday, July 28, 2006

How to Get Approved For a Car Loan after Bankruptcy

Years ago, people who had a bankruptcy on their credit report were unable to get a decent car loan, if they were able to get approved for a car loan at all. However, today, the rules have changed. More and more lenders are offering car loans to people who’ve filed bankruptcy. If you have a bankruptcy on your credit report, and you’re looking to get a car loan, read this article to find out three things you need to know about getting an auto loan after bankruptcy.

Waiting Two Years Earns You Better Interest Rates

If you need to apply for a car loan earlier than two years after the date that your bankruptcy went through, you’ll likely get approved; however, your interest rates will be a lot higher than they would be if you wait two years. After two years, most lenders will see you as less of a risk, and you will qualify for much better loan terms.

A Bigger Down Payment Makes You a More Qualified Borrower

When you apply for a car loan, your lender looks at something called your LTV ratio. LTV is the amount of money you are borrowing divided by the value of your car. For example, if your car is worth $10,000, and you are borrowing $9,000, then your LTV is 90%. 100% LTV’s are generally reserved for borrowers with near-perfect credit. However, the lower your LTV is, the more likely you will get approved for your loan. Most lenders rarely decline loans with an LTV at or lower than 80%.

Some Lenders Specialize In After-Bankruptcy Mortgages

Some lenders specialize in loaning to people with either bad credit or past bankruptcies. These lenders will not view you as more of a risk than their other borrowers because all of their borrowers are in the same situation as you are. Your best bet is to shop online and compare interest rates and terms between different lenders. This way you can be sure that you are getting the best deal.

Bankruptcy No Longer Means - No Mortgage

In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy. Many potential home-buyers or exiting homeowners felt they must wait at least seven to ten years after a bankruptcy to be eligible for financing. This is a common misconception.

While some people declaring bankruptcy have had trouble managing their money, a larger number of those declaring have simply experienced unfortunate events. Americans have been filing bankruptcies at record-high levels over the last many years, especially last year.

Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Recognizing that sometimes bad things happen to good people, some select loan officers are becoming more willing to take a calculated risk.

Some lenders use a scoring system to determine whether potential borrowers are a worthwhile risk. Unfortunately, bankruptcy gives an automatic low score. However select lenders are beginning to look beyond the scores and look at the individuals in need.

Instead of waiting two or four years after being discharged from bankruptcy, some mortgage professionals are willing to give a home loan much sooner. Those who have declared Chapter 7 bankruptcy liquidation may be eligible for a loan in as little as one day after discharge, and those who have declared Chapter 13 may be eligible for a loan even while they are still in their plan.

Another common misconception is that a previous bankruptcy on your credit report will require you to have a large down payment and pay extremely high rates and points. There are currently programs available with no down payment required and with very attractive rates and points.

Some lenders are even pre-qualifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer pre-qualifies they will have the advantage of greater negotiation power.

No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish credit to help the buyer become mortgage ready, ensuring homeownership in the future.

Because of new options, bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more creative lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.

Luke Currier and Ed Jeffry are experts in mortgage lending. They specialize in working with homeowners who have had a bankruptcy or other credit challenge find payment relief, achieve financial security, restore their credit and receive peace of mind. Visit their website at for more information or call them direct at 925-983-3127 to ask their advice.

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Sunday, July 16, 2006

Ways to Bounce Back from Bankruptcy

Credit is hard to come by if you have a bankruptcy on your record. You are guaranteed higher interest rates. You may even be targeted by unscrupulous lenders who believe that you are probably desperate and will agree to anything. Don't despair; there are ways to re-establish your good credit. Make this your main goal.

First make a budget. Look at your income and your expenses. Decide what your priorities are for spending and saving your money. You have to learn to control your money, don't let it control you.

Learn that cash is your best friend. Make a deal with yourself. You can only pay in cash. Once you run out of cash, that's it until the next pay day.

Make sure that you pay every bill on time every time! This is one of the most important factors for repairing your credit report. Bounced checks, overdrafts and bank fees can show up on your report. Pay attention to what you spend and when you spend it.

Keep an eye on your credit report. You want to make sure that everything is reported accurately. You want to make sure that there aren't any errors. You need to know what others are seeing when they look at your report. Only then do you know what to fix.

You do need to get a credit card. This card should only be used to raise your credit rating. Only charge very little. And you must pay it off every month in full. This shows that you have changed your ways and can use and pay for credit wisely. You could try deducting your credit card charges directly from your checkbook register. When the bill comes in, you've already taken the money out of your account.

A line of credit through your bank can help you to reestablish your credit. Use a savings account to secure the loans and be responsible in your spending.

Don't go out and buy a car. While you will find financing, the terms will make it crazy. Wait a little bit and you'll do much better when your credit is looking better. You need to prove you are responsible first.

Long-term relationships will pay off. A steady income and a steady job really help. Don't do a lot of credit card hopping, because it will adversely affect your credit rating. Having long-term credit shows that you can form a lasting business relationship.

If you are having trouble with a lender, just let them know the truth. Explain your situation. The lending business does have a human factor. Being able to say that you made a mistake and learned your lesson says a lot. People know that bad things happen to good people.

There are no quick fixes. If it sounds too good to be true, it is. Anyone who claims that they can fix your credit is lying. It takes hard work. You can do it, but you really have to be patient. In the long run, it's worth it.

Martin Lukac represents and, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

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Repair Your Credit With a Credit Repair Kit

Credit repair kit? You ask - what is it exactly?

If you could stretch your imagination a little bit, it's something that is the equivalent of a toolbox. Say your kid sister asked you to repair her dollhouse. She says to you, "can you repair my little house? The ceiling fell a few inches and now it's too low, the floor is crooked and the walls need a fresh coat of paint. Can you help me?"

So what do you do?

You go to the basement and grab your toolbox. You know there's a drill in it, some nails, glue, a rag and clean paint brushes.

A credit repair kit works on the same principle of fixing something that isn't right. It entails removing one obstacle that's making you lose thousands of dollars annually paying those steep interest rates and insurance premiums - all because your credit score is the pits.

Credit Repair Kit: getting to 700 points

To obtain a better score is a task that needs your urgent attention. Not only will it improve your financial condition, but it will also open doors to money opportunities that you can't take advantage of at the moment because your credit isn't too impressive.

One smart way of mending your credit score is to look into a credit repair kit that will provide you with all the tools you need to start the process of rebuilding. You can repair a dollhouse that will be the talk of the town, but if you continue with that down and out credit rating, the whole town will be talking about you.

What's in a credit repair kit? Remember that not all kits come with all the tools. If you're not sure which one you need, you may want to check around to see if you could get a free credit repair kit. If it does not meet your needs, you can discard it; at least you didn't pay for it.

There is one credit repair kit being sold for a reasonable $20.00. The seller claims that it's your stairway to heaven; that is, getting your score to 700 eventually so you can pay less in financing costs. The kit is organized into ten sections, and for that price you get not 1 credit free letter repair sample but 28! That's like getting the services of a credit law firm repair, minus the exorbitant legal fees.

This kit we saw online says that you follow the simple steps to an improved credit score, how to deal with a credit bureau or creditor who refuses to rectify their mistakes, and legitimate ways you can have negative information removed.

Want to do credit own repair? Try a credit repair kit today.

Guy Ray is a published author with more than 200 articles to his credit. To learn more about how a credit repair kit can help you overcome a poor credt rating visit his site at

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Friday, July 14, 2006

Buying a Home with Bad Credit - Your Keys to Success

Buying a home with bad credit used to be nearly impossible. Things have changed. Today, many lenders offer loan programs specifically designed for people with bad credit. Some lenders even specialize in it.

Like I said, the times have changed.

But even though it's easier to buy a home with bad credit these days, you still need a solid strategy. Here are your four steps to home buying success:

Buying a Home with Bad Credit -- Your 4-Point Plan

1. Obtain copies of your credit report.
Start the process by getting copies of your credit report from all three credit bureaus: TransUnion, Experian and Equifax. Review your credit reports closely for errors and inaccuracies. You don't want errors dragging your score any lower than it should be. If you find a mistake on your credit report, dispute it online through the credit agency's website.

2. Shop for a lender.
Buying a home with bad credit requires you to be extra cautious. Some lenders try to take advantage of people with bad credit (since they don't have as many loan options). These lenders are often referred to as predatory lenders, and the name fits.

Avoid such lenders by shopping around and trusting your instincts. Get more than one quote. Ask around. Go with trusted names. Conduct research online. Watch out for “red flags.”

Here’s some good news. Due to government regulation and industry competition, the number of trustworthy lenders who offer bad credit loans has increased dramatically.

3. Dedicate yourself to improving your credit.
Always think long term when trying to improve your credit. Taking positive actions today will help you for years to come. Pay your bills on time, especially your mortgage. Don't open any new lines of credit. Pay down your existing lines of credit. Raise your credit score enough, and you'll be able to refinance the mortgage at a lower interest rate. And that leads us to step #4.

4. Refinance as soon as possible.
Buying a home with bad credit can actually help you improve your credit. By obtaining a mortgage loan and making payments on time, you can increase your credit score to the point that you quality for a lower rate. This will in turn lower your overall monthly payment.

Better credit, lower mortgage. You can do it!

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlink intact.

About the Author
Brandon Cornett is the editor of, the Internet's largest library of home buying advice. To learn more about buying a home with bad credit, visit

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Wednesday, July 12, 2006

How to Get a Bank Account with Bad Credit History

When you have bad credit, it seems that nothing is easy. Questions about how to get a credit card, how to get a bank account with bad credit history and where to get a free instant credit report are frequently asked. Many people are interested in learning how to repair their bad credit as well. It may be wise to make efforts to repair your credit before you worry about how to get a bank account with bad credit history.

It is quite possible that if you have been denied a bank account by one bank, another may allow you to open an account. All banks have different policies, so shop around first. If you really need someplace to keep your money, you can get a prepaid credit card, no matter what your credit history is like. If you want to know what information is stored on your credit report, you can get a free instant credit report.

It is wise to check the information on your credit report at least once a year. Due to a recently enacted law, a free instant credit report is now available on line. The three major credit bureaus created one website,, to allow consumers easier access to their free instant credit report. Each consumer is entitled to one every year. If you are trying to learn how to get a bank account with bad credit history, then you have probably either been denied an account or denied credit. If you have been denied credit then you are entitled to a free instant credit report within 60 days of the credit denial. The lender must tell you why you were denied credit, in specific terms. If you were denied because of information on you credit report, he must furnish you with the name and address of the credit bureau that he used.

Some companies that advertise a free instant credit report have similar website addresses. Some companies offer a free instant credit report, if you sign up for their credit monitoring, credit repair information or services. The Federal Trade Commission advises consumers to spell the website address correctly or link to it from the FTC official website to avoid the impostor sites.

If you are trying to learn how to get a bank account with bad credit history and you have a record of bouncing checks, you may want to open only a savings account. Instead of writing checks to pay your bills, you can use money orders. Most banks will give you an ATM to use for cash withdrawals. You will probably not be able to get a debit card. Debit cards are generally linked to one’s checking account. If your balance is large enough, some banks offer a secured credit card. The credit limit is determined by the balance in the savings account. Some of the prepaid credit cards offer on-line bill pay and free direct deposit. This may be a good temporary solution for someone interested in how to get a bank account with bad credit history.

It may be possible to learn how to get a bank account with bad credit history. It is definitely possible to learn how to repair bad credit. Some companies that offer prepaid and secured credit cards charge a fee to report account activity to the credit bureaus. Before you pay a company to report good credit history, get a free instant credit report. If you have problems that you do not know how to correct, contact a law firm that specializes in credit repair. For more information, visit Credit Fix Solutions.

This writer and the other writers at Credit Fix Solutions have experience with problem credit and make every effort to provide free accurate information for consumers with credit issues. Visit us at

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How To Get a Bad Credit Personal Loan

A bad credit personal loan is still a possible - and some will say viable - option. Don't let a bad credit report prevent you from applying for emergency cash.

While a bad credit personal loan is a good reason for your lender to examine your situation with a fine-toothed comb, do not despair. If lender “A” rejects your application, you move on to lender “B”. A bad credit personal loan is not a social stigma. These types of loans change hands everyday. And people do manage to repair their bad credit, so they eventually qualify for a bad credit personal loan, warts and all.

You and I know that there are thousands, if not millions, of bad credit personal loan lenders out there. In fact, most of these people thrive on the phenomenon of bad credit. Without bad credit, they could be packing their bags and looking for more lucrative ways to make money.

You see, you may not be aware of this but a bad credit personal credit can still generate substantial revenues for the lender. Don’t ever doubt this – or else why do they stay in business? What these lenders like to see on their desks is a higher number of personal loan applications from people with bad credit.

Bankers and lenders have several strategies to turn a bad credit personal loan into a cash cow. They’ve studied the human factor, they know the dynamics of lending and banking, and they have the means to get their money back. There are mechanisms in place – supported by legislation - to ensure that they do get their money back.

A bad credit personal loan will require a lot of supporting documents. Your credit report card, for one, a list of all your assets and liabilities, proof of revenue, and whether or not this is your first bank personal loan for bad credit. It does not end there.

Your bad credit personal loan may be slapped a higher interest rate, and may be for a shorter term so that your monthly payments could be rather steep. Your lender may also opt to insert a few clauses that could constitute hardship – like an acceleration clause for one, or a balloon payment clause – if you default.

However – and this is the most encouraging part – if you have excellent negotiation skills and you have one – just one - proof that demonstrates your integrity, you could go back to your lender after a few months and ask him to “ease up” on the restrictions of your bad credit personal loan!

Guy Ray is a published internet author and has more than 100 articles to his credit. If you would like to learn more about qualifying for a bad credit personal loan be sure to visit his website at

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Tuesday, July 11, 2006

Credit Cards for Those Who Have Poor Credit

Don’t you just hate it when these big-name credit card companies keep turning down your application for a credit card simply because of some financial mistakes or missed payments that you made in the early years of your career, which adversely affected your credit rating? If only you could speak to the account officer handling new applications and politely inform him that you have long since settled those debts and, now that you are gainfully employed, can handle the responsibilities a credit card brings, right? Well, you don’t have to go to such extremes and you don’t have to hope for a miracle because yes, you still can have a credit card. It may not be one of the major ones, but it still is a credit card.

Several credit card companies offer people who have the misfortune of having a less than stellar credit rating a chance to own their own bit of plastic money. The rise of these non-mainstream credit card companies may have been caused by the demand created by those who did not pass the stringent requirements of the big - name players. The credit cards provided by these companies still function like a regular credit card: these have pre-determined credit limits; are accepted in various retail establishments; give cardholders periodic increase in credit limits (naturally this would still depend on your performance as a card holder and your capacity to pay) and may probably even have a form of rewards program. Card holders enjoy almost the same benefits as those who hold well known credit cards. But what’s good about these non-mainstream cards is that they still report to the three major credit rating bureaus and, if you pay promptly and maintain your good standing, these cards will, in time, help improve your credit rating.

If you believe that these card companies only offer one kind of card for all possible clients, then you are mistaken because they do carry different kinds of credit cards – even for those who have been classified with poor credit ratings. There are standard cards for regular clients, and silver, gold and even platinum cards, which not only offer higher credit limits but also provide more security privileges and benefits, for customers who need more to sustain their lifestyle. If you’re concerned about international acceptance, you don’t have to worry because most of these credit cards are recognized by Mastercard.

If you feel that you really need and deserve a credit card but keep hitting a brick wall when you approach the more established and more popular credit card companies, why not consider using one of these non-mainstream credit cards – at least for the meantime. They may not have the same appeal as the big – name brands but as long as you get similar service, would the name even matter? Who knows, maybe after you’ve gotten used to carrying these cards, you may not want to give these up for one of the high profile credit cards you originally wanted.

This article is brought to you by View 100's of Credit Card Ratings by category. View poor credit card offers and more and apply online.

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Friday, July 07, 2006

How Your Credit Rating Affects Your Mortgage

Your credit rating will be one of the biggest factors that will influence your ability to get a mortgage, and how much interest, fees, and down payment you will be required to provide. In Australia, the agency that collects and reports on your credit information is Baycorp Advantage ( Any negative credit information, including defaults, bankruptcies, or judgments, as well as information about how many inquiries have been made against your file, is maintained by this company.

By law, Baycorp Advantage must provide Australians with a free copy of their credit history. It takes about a week to ten days for you to receive your credit file in the mail. If you need is sooner, Baycorp has an expedited service that will get it to you in 24 to 48 hours, although there is a fee for the expedited report. In New Zealand (, there is a fee involved to obtain a copy of your file in any case.

Mortgage lenders tend to be a lot stricter than other lenders. You may be able to get credit cards or a car loan with spotty credit, but it is more difficult to get a mortgage without a clean credit report. It's important to note that even having too many inquiries counts against you, so be frugal in how many times you allow potential creditors to access your file.

Although there is negative information about you, positive information is not included. Paying your bills on time will keep negative reports off your credit report, but the fact that you pay on a timely basis is not expressly noted due to Australian and New Zealand privacy laws. Further, negative data can be held for only five years, except for bankruptcies, which are noted for seven years.

Your good credit report is a big part of getting a mortgage, and it's a good idea to get a copy of your report before you make any applications. This will give you a chance to correct any inaccuracies that may exist. Also, it gives you a chance to re-adjust your timing. If for example, you have a negative mark that is four years and eleven months old, you may wish to wait a month before making any applications, since once that negative mark turns five years old, it disappears.

If you do have some bad marks on your credit, it is still possible to obtain a mortgage from a sub-prime lender, or a lender that offers non-conforming loans. However, the interest rate, fees and points are likely to be higher, and you may be required to put down a larger than normal down payment. When seeking out a non-conforming loan, it is important to beware of predatory lenders. Deposit-taking institutions are regulated by the Australian Prudential Regulation Authority (, but there are other lenders who do not fall under the APRA's jurisdiction. One of the main non-conforming lenders in Australia is Liberty Financial (

If you do decide to apply for a non-conforming loan, try to find one with reasonable pre-payment terms. You will want to try to improve your credit rating after you get the high interest, non-conforming loan, so that you can switch to a conforming loan later on once your credit has improved. If your non-conforming mortgage does not allow for pre-payment, then you will be stuck with high interest for years, even though your credit may improve over time.

Copyright 2006 Tracey Anderson

Tracey Anderson is a mortgage broker with 16 years experience in the Australian mortgage industry. To speak to a mortgage broker and get help with finding the right home loan from a wide selection of lenders, visit

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Sunday, June 25, 2006

Courtney Love Avoids Bankruptcy

Courtney Love says she is finally in control of her finances, read it here: COURTNEY LOVE - LOVE BOUNCES BACK FROM BRINK OF BANKRUPTCY

Of course, it does help if you own the Kurt Cobain's rights to the Nirvana catalogue.
At her lowest point, Love says she had about $4,000 (GBP2,200) in the bank and had to move into a rented apartment with her daughter FRANCES BEAN. The MISS WORLD singer, who was married to NIRVANA singer/songwriter Kurt Cobain, was able to get out debt by selling 25 per cent ownership in Nirvana's music catalogue in April (06). Love says U2 frontman BONO wanted to buy the catalogue, but she tells Fox News correspondent ROGER FRIEDMAN, "He didn't understand the extent of my debt." The two have remained friends and Love eventually sold the music collection to music veteran LARRY MESTEL. The MALIBU singer says offers have always poured in to use Nirvana's songs and Coca-Cola was desperate for one song in particular to use in a commercial. Now she claims a new feminine version of personal lubricant K-Y Jelly is begging to use one of the songs for their commercials. She adds jokingly, "They probably want COME AS YOU ARE." So far, no decision has been made on the offer.