Bad Credit Loan Articles and Blog Posts

If you have bad credit, you may feel financially trapped. It is hard to get approved for loans and credit cards with a low credit score. But what you may not know is that bad credit can affect other areas of your life too.

If you are applying for a new job or thinking about moving into a new place, now is the time to get your credit in order. Landlords often pull your credit report before they approve your application. Landlords want to know how you’ve handled past housing payments to insure that you are financially responsible and will pay rent on time each month. With a bad credit score, you may look like a risk and they won’t want you as a renter. Furthermore, employers often check your credit report as part of the hiring process. So, when you are applying for a job or have received an offer, certain companies will run a credit check on you. Employers want to make sure you are responsible, and a bad credit history can make you seem unreliable. In addition, the Federal Fair Credit Reporting Act gives businesses or entities the ability to pull your credit report if there is “permissible purpose.” As a result, employers and landlords can continue to pull your credit report once you are hired or have moved in. So, if you are up for a promotion, you could be turned down as a result of having bad credit.

If you have bad credit, you may be feeling helpless. But don’t let this turn you away from getting your dream job or the perfect apartment. There are some protective measures that can help you get what you want. Here are some tips to help you:

· Your employer and landlord must ask permission before running a credit check. That way, you are aware of the check and can say no. However, in many cases, if you do not authorize the credit check, you may not be able to rent the property or get the job.

· If your company or landlord does run a credit check on you, you are entitled to see the report and they must give you a copy. There is no charge for the report if you request it within 60 days. You can then check the report for any mistakes and correct any errors there might be.

· If you do have bad credit, you may want to explain your situation to a potential employer before they run your credit. Letting them know that you are still a reliable employee may help them make their decision based on you, not your credit.

· Know your state’s regulations. Some states have pushed back and restricted how credit reports are used in hiring. Others are fighting to make this practice illegal. So, check to see whether your state has protective measures before you authorize a credit check.

· This one may seem obvious, but improve your credit score. Not only will this help you with your finances, but it will insure that you do not have to settle when it comes to jobs or properties.

 

Whether you have poor credit, average credit, or good credit, identity theft is a problem these days. Just think of the recent Target hacking. Up to 40 million shoppers’ information was stolen in a major security breach. This information included credit and debit card numbers, security codes, and card expiration dates. And it didn’t matter whether they had good credit or bad.

From pickpockets who steal your wallet to skilled hackers who use sophisticated technology, identity theft can happen to anyone. And it can have lasting impacts on your credit score. So, it is important to take precautions to protect yourself against identity theft. Although you may not always be able to prevent it, you can make it harder for thieves to get the information they need. By making the below actions a part of your normal routine, you can lessen your risk of falling victim to identity theft.

1. Review your credit reports and bank statements. Check your bank statement each month to make sure there are no unauthorized transactions. If there are any discrepancies, make sure to report the suspicious activity to your bank. In addition, check your credit score annually. You can get a free copy of your credit report every twelve months from each of the major credit reporting agencies- Equifax, Experian, and TransUnion. Monitor your credit reports and make sure there are no mistakes.

2. Keep your personal information private. Many thieves find personal information about you and can use that data to obtain more sensitive information. So, shred every piece of trash that may have personal information about you (including mail that just has your name and address). Furthermore, don’t give out your passwords or social security number unless you have to. Your banks and employers may require it, but others often don’t. Check to see if it is absolutely necessary before you give out this information.

3. Be careful online. Do not enter your credit card information online unless it is a secured website. If it is unsecured, the imposter site can easily steal your information. Check for https:// and the padlock icon in the URL. Also, use credit instead of debit when shopping online. If a hacker gets your debit card information, they can easily drain your account, and you will have less federal protection.

4. Don’t respond directly to people that want your information. If you receive a text, email, or phone call asking for specific information, contact the institution yourself. Legitimate merchants or financial institutions will let you research and speak to the correct employee to find out if the request is valid. On the other hand, imposters will try to steal your information by making you think something is urgent and you need to give your information immediately.

5. Be aware of your surroundings, and keep your important information somewhere safe. Identity theft can happen, but you can take actions to prevent it. Place a hold on your mail when you leave town, so crooks cannot get to your information. Try not to leave your purse unzipped or your wallet in your back pocket, as these are prime targets for pickpocketing. Also, do not keep the most important information (ex: your social security card) in your wallet.

Unfortunately, identity theft is now a routine part of life. But by sticking to these approaches, you can hopefully save yourself the hassle and the headaches of falling victim to fraud. 

Going to college is a financial struggle, and it may seem impossible if you or your family have low credit scores. With a low credit score or no credit history, it is hard to obtain any kind of credit, including student loans. But don’t let this deter you from getting your education!

There are ways to get student loans and finance your way through college with a low score. In fact, many of these options will help you build your credit history and improve your score. Here are just some of the ways you can fund your college degree:

Student Loans:

There are many student loan options available to you. If you have a low credit score, you may want to consider a cosigner. This is when someone with good credit signs your loan to assume responsibility for the debt if you default on your loan. This can make you eligible for better interest rates and loan terms. You can also register for a bad credit loan, which caters to people who have low credit scores or no credit history. These loans can be easier to get approved for and will help you get the funds you need to continue your education.  Another option is a federal student loan. The federal government offers some federally-funded student aid programs where you can get a loan regardless of your credit score. You can apply for federal aid by completing the FAFSA, the Free Application for Federal Student Aid. If you qualify for these programs, you will receive affordable student loans regardless of your credit history. Lastly, you can use a peer to peer loan. Students can look on certain websites to find anonymous investors willing to offer loans. These loans offer low rates and flexible terms, and many do not require a credit check.

Scholarships and Grants:

Scholarships and grants are some other great options to finance your education. With these, you will not have to worry about paying the money back, but you will also not have the option to increase your credit score. There are many scholarship opportunities available, so it is very important to research the best ones for you. Some require high grade point averages or certain hobbies. You should apply for any scholarships that you are qualified for. Through scholarships, you can receive a lot of money to fund your education with no strings attached. Student grants are issued by the federal government. Like federal student loans, you need to apply for FAFSA to receive them. If you are qualified, FAFSA will give you a student grant for financial assistance. These grants do not need to be paid back; they are a free gift to help fund your education.   

In conclusion, there are many ways to get an education if you have a low credit score. It may seem daunting, but if you research the right student loans for you and apply for financial assistance, you will be on your way to a new degree!

If you have a poor credit score, it can be hard to qualify for a credit card. However, it is important to use the right card to rebuild your credit.

Although you may have limited options, there are several credit card choices designed to help rebuild poor credit histories. These cards offer you an opportunity to get out of debt while showing creditors that you are financially responsible. Here are the types of card we recommend using with bad credit:

· Secured credit cards: These cards require a security deposit in order to start using the card. The card works just like any other credit card, but you have a cash deposit against the credit limit on the card. The deposit will be used if you default on your credit card. By having this cushion, you will always have the money to pay. Although credit lines may start low (ex: $250), you can get a credit line increase if you use the card responsibly and pay all your bills on time. Furthermore, card issuers often reward secured credit card members with an unsecured offer after several months of on time payments.

· Prepaid debit cards: Although most of these cards do not help you build credit, they are great options to use if you are worried about overspending. With a set limit, these cards are accepted and used like credit cards. However, there are no finance charges, and you avoid debt by spending money that you have. Some of these cards do report to credit bureaus, helping you build credit.

· Unsecured credit cards for bad credit: If you have a problem of overspending and getting yourself into debt, you may not want to use an unsecured credit card. These are normal credit cards that often carry higher interest rates and fees, so you need to be able to use credit responsibly. While they do carry these fees, unsecured credit cards for bad credit are easy to get and can help rebuild your credit score and credit history fast.

These cards are your best options for financial stability and better credit scores. If you are able to get them, you should. However, there are some cards you should stay away from if you have bad credit:

· Retail credit cards: These cards can seem like a lifesaver for those with bad credit. They are easy to get and give you savings on purchases at that store. Nevertheless, be cautious with these cards. They often have very high interest rates, poor intro periods, and limited use. These cards will end up giving you more debt than benefit.

· Unsecured credit cards with bad terms: Research your options before you choose a credit card. Even though you have bad credit, you still need to find the best credit card available to you. If you get stuck with lots of annual fees, penalties, and bad introductory offers, you may sink back into debt.

By staying away from these cards and instead using secured credit cards, prepaid debit cards, or unsecured credit cards for bad credit, you will be able to rebuild your credit!

Holiday shopping is always stressful. But it can be even more worrisome if you have bad credit. 

Of course you want to get your friends and family the best possible presents for the holidays. Nevertheless, you want to be cheap without looking like you’re cheap. You don’t want your credit score to drop lower than it is, and you don’t have a lot of money to spend on gifts. Don’t fret- there are ways to shop wisely and give great gifts while helping your credit. Here are some strategies you can use to make the most out of your holiday shopping experience:

· Know what you need. Make a list of what you want to buy before you start shopping. Although you may see other things in the store, stick to your list. It may be tempting to get other things, but it will only lead to overspending.

· Figure out your budget ahead of time. You alone know how much you can afford on holiday gifts. By preparing ahead of time and only spending a certain amount, you will be better able to manage your finances.

· Look out for deals. Luckily, holidays are the prime time for sales and discounts. You should have a list already, so check out which retailers are offering the best deals for whatever you need. You can save a lot of money by bringing coupons and only going to the stores that offer the best discounts for you.

· Start shopping as early as possible. If you find a potential gift for someone during the year, buy it then. By spacing out your holiday purchases over a long period of time, you won’t feel burdened to spend a lot at once.

· Be careful with your credit card. Holidays are not a free pass to get yourself into more debt. If you have a bad credit score, do not overspend or max out your credit card. This will further lower your credit score and lead to more financial problems.

· Know your credit card. Just because you have a credit card does not mean you should use it. Make sure you know your credit card’s policies. By using a low interest credit card with no extra fees or penalties, you will not have to pay many extra charges. However, if you have a high interest credit card or one with a lot of extra fees, you may not want to use it.

· Check out secured credit cards. These cards require a cash deposit in exchange for the card. So, if you put down $500, you can spend up to $500 on your card. Secured credit cards are extremely helpful, because you are spending money that you actually have. Furthermore, they can help increase your credit score as you use the card responsibly.

If you stick to these approaches, your holiday shopping can be debt free! Budgeting, planning, and using credit cards responsibly can be good for your credit. So, be smart about shopping and your bad credit won’t matter.

If you work in the public sector, I don't need to tell you about how the recent government shutdown is affecting the lives of everyday people in the work force. Thousands upon thousands are out of work, without a paycheck for the forseeable future, unless this conflict is ended quickly. 

But despite what the government is doing, people still need to pay their bills. The house is relieving that pressure a little today:

With much of the federal government shut down for the fifth day, Congress has its hands full trying to reach an agreement on reopening the government, but one brief spot of compromise emerged on Saturday, when a broad bipartisan majority in the House of Representatives passed a bill granting back pay to federal employees who have been furloughed during the shutdown.

The bill passed by a margin of 407 to zero. Twenty-five members did not vote. In a press conference after the vote, House Majority Leader Eric Cantor, R-Va., said the House "took another step to try and ease the pain of the federal government shutdown."

But if you're not one of those lucky workers, there are alternatives to how you can help make ends meet in the meantime. 

Bad credit loans allow you to receive cash fast, without having to worry about whether or not you will be approved because of credit. Credit Sources is a great way to apply and become approved almost instantly. These loans are short-term, but can help you in a bind until the government reopens and you get back on your financial feet.

If you have a little cash stored away but don't have great credit, applying for a secured credit card is a great idea. This will help you borrow some money with a lower interest rate in these tough times. A small deposit acts as your credit limit, so you'll be instantly approved.

For more information on Credit Sources dot Org, check out our frequently asked questions page.

 

With the economy slowly recovering and jobs slowly starting pop up, you might be thinking it's time for a career change. Maybe a something a little more lucrative? The problem is you'll have to go back to school. Maybe community college, maybe get a masters degree or maybe even going back to university to finish your undergraduate. Either way, you're going to need that precious funding, and as an adult (or non-traditional student) there are plenty of ways to find that cash you need to go back to school.

"Non-traditional student" is usually defined as students 24 or older. While most schools restrict their financial aid to students earning their first bachelors degree, many will waive this restriction if the individual is committed to a significant career change. According to the 2007-08 National Postsecondary Student Aid Study, older students are more likely to get grants (free money) but are less likely to get private scholarships.

Once you grab all that scholarship and grant money you can, it's time to fill the rest out with student loans. There's a large debate, as there should be, about whether to take out federal or private student loans, and the like in most ways, the government always wins.

Federal student loans much lower interest rates across the board, and usually have very friendly plans of paying the money back based on income. Depending what field you get into, you might even get them forgiven. If you work in the public sector for a number of years as a government employee, all your student loan debt could be ousted.

When shopping for private loans however, just be careful. Variable and overall higher interest rates can make these difficult to pay off. But if you need them make sure you keep an eye on the fine print so you're not surprised when the due date shows up.

Last week a very honest man in La Coruna, Spain handed over a lottery ticket worth 4.7 million euros, or $6.3 million. It was apparently lost by a customer in his shop, and when the owner found the ticket, his first thought was to turn it over to the authorities, citing that he probably wouldn't be able to sleep if he had cashed it in as his own.

While I'm sure he's in the minority of what most people would do if they stumbled upon a $6 million receipt, he'll actually earn the money if no one claims the prize in two years. And while we're on the topic of the lottery, I think this is a good time to talk about what some people call a "stupid tax" and why the call it that.

If you're up to your eyeballs in debt, bad credit and the likes, you probably have seen a mega millions headline and thought that that doesn't look like too bad of an idea. Well here's some breaking news: it is.

Recent odds for the jackpot have been roughly one in 175 million. Think about that for a second. That's a pretty far fetched idea, and if you're plunking down your hard earned money on lotto tickets instead of saving that cash and paying off your credit card debt, your debt will only grow, along with your mood when you lose contest after contest.

Instead of dropping that cash on a lotto ticket, put it in a jar, or better yet a savings account. You'll be amazed how quickly the money piles up. Don't just do this with the lottery though, pick a few habits that'd you'd like to kick. Once you add things like cigarettes and eating out to the list you'll be swimming in green in no time.

Remember one thing, the road to recovery from debt is a long one, but every dollar helps, and if you take that attitude with you daily you'll be in much better shape before you know it.


Guest post provided by Modest Money.

It’s not like you’re not already hit with an onslaught of Credit Card advertising. The smokey haze from the print, billboard, magazine and TV “Best Credit Card Offer” ads can be blinding. In fact, I have tears in my eyes just thinking about it right now. But don’t be dazed, lost, or confused by all the promotional mayhem. There’s a way to find our path—here’s where to start when seeking the most fitting credit card offer.

The One, Single, Most Important Point When Finding Good Credit Card Offers:

KNOW WHAT YOU NEED…

…and here’s what you need to know and decide for yourself:

Point One: Are you going to carry a balance?

If you know that you are going to need to carry a balance for a while (it’s not inherently evil as many might say) to get out of a tough spot or make it through a period of unemployment--or even buy mac-n-cheese in between your college classes—then you should find the best APR offer.

Don’t be tricked by 0% introductory offers if you plan on carrying that balance longer than the 6 or 12 months it lasts for. IF you are certain you are going to pay it off in full (and you should) within the low-APR time frame that is set, this card should be your first option—not one with frilly extras. -- If you’re not planning on carrying a balance…

Point Two: Do you want to travel, save on gas, groceries, and more?

Simply find a site that has the best credit card offers for you to choose from. Earning point per dollar rewards is nice, but in a way, doesn’t that encourage you to spend more? My preference is a card with a killer signing bonus program so I get a ton of miles, free tickets, or spendable points immediately.

Don’t Go for the Complicated

If the rewards program seems complicated or too cumbersome to understand within 60 seconds of reading it, I would consider passing it up for something you can digest. If you can’t easily understand it, I wouldn’t be confident you’ll really take advantage of those awards. Confusing Terms and Conditions as well as that blasted “smokey” marketing shouldn’t lure you into signing up for something you’re unsure of. 

Go for accessibility! I’ve been carrying an American Express card for ages now because is really does have the best rewards program for me. But American Express, as well as Discover, can sometimes be a hindrance in terms of accessibility. More vendors accept MasterCard and Visa than those that accept American Express and Discover. Why? Well, for vendors these latter two companies charge higher percentages to “collect” the payment from the consumer (you and me).

If you do choose an American Express or Discover credit card, make sure to take a MasterCard or Visa along with you as well.

If you've caught yourself heading for a payday loan more than once or twice recently, it’s probably time to take a step back and look at the root of the problem. If you’re using payday loans responsibly, you probably have a somewhat steady income, but you’re also there because either your credit stinks, or it doesn't exist.
 
The first step to getting out of debt is living paycheck to paycheck instead of payday loan to payday loan. Here are some tips to boost that credit score so you can apply for a much friendlier credit card instead of using those high interest short-term loans that can quickly turn into a cycle of debt.
 
Secured credit card
Secured credit cards are a great way to either rebuild damaged credit or start a credit history where there is none. The way they work is you put a cash deposit down as collateral (usually between $300-500) and then get a line of credit that is either the amount of your deposit.
 
The benefit of these cards is you get a line of credit that you can use responsibly as a stepping stone to build your credit back up to where it should be. Charge a few things each month to the card and pay it off in full after each billing cycle and you’ll be on your way to fixing that three-digit number.
 
The detriment however, is these cards often carry an annual fee and high interest rates. This is not a card you want to carry a balance on. This should only be used to demonstrate to financial institutions that you have changed your ways and are now a responsible spender.
 
In order to get the most out of these cards (or anything at all really) make sure that the company you get your secured credit card from reports to the three major credit bureaus. If they don’t, your credit score won’t be affected and you’ll just be wasting your time with annual fees.
 
Take out a loan
Taking out a loan is a great way to build credit without having to use a credit card, but again, only if you are responsibly paying off the loan.
 
If you’re a student, or thinking about going back to school, a federal student loan is a good place to start. Low interest rates combined with the fact that you don’t need too much credit history to qualify for one, this option is perfect for the education-minded.
 
If you’re not planning on school in the near future, a secured loan might be right for you. Just like a secured credit card, a secured loan uses collateral (houses, cars, property). Getting a loan from a credit union is the way to go since they usually look beyond your credit score when deciding who qualifies for a loan, unlike a bank.
 
Link to a friend
If you have a buddy you trust (and I mean really trust) ask them if you can become an authorized user on their credit card or loan. This will link your credit to theirs. Obviously the drawback here is if they fail to payoff the loan or abuse the credit card, it will reflect poorly on you and your credit score for the life of the loan.
 
These are all good tips to getting out from under the weight of debt, and hopefully off of those payday loans. Follow them diligently while maintaining responsible habits, and you’ll be well on your way to a good credit score.