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Saturday, January 24, 2015
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American Association of Private Lenders
American Association of Private Lenders - Leading association of private money lenders. Find private money lenders in your area.
Friday, January 2, 2015
2015 CA HOUSING MARKET ?
As 2014 ends on a rather flat note, investor are wondering what is in store for 2015. Will the residential housing market see double digit gains throughout the year as it did in 2014 or will the market flatten out as it did toward the end of 2014.
Tuesday, December 30, 2014
CREDIT AFTER BK?
Rebuilding after Filing Bankruptcy
- By HardmoneyDirect.com / December 28, 2014
Filing for bankruptcy is a difficult choice that not only destroys your credit profile but more importantly tends to destroys and undermines your self esteem and self confidence. However, there are few alternative for families or individuals drowning in debt. Many times Bankruptcy is the only salvation from pounding debt collectors and the only means of some peace and normalcy to your life. Most importantly Bankruptcy is the sometimes the only way to get a fresh financial start. The downside is that creditors are less willing to extend you an unsecured credit line after a bankruptcy filing.
The good news is that you are definitely not alone and the weight of many are behind you in your trek back to credit worthiness. Thousands of US families have been affected by the mortgage melt down of 2007/2008. Most of the families were credit worthy individuals that never missed payments and had excellent credit scores and excellent jobs to pay their bills; but when thousands lost their jobs due to the economic colapse caused by the mortgage melt down good credit worthy people had no choice but to walk away from homes losing them to foreclosure and ultimately having to claim Bankruptcy to protect them from hounding creditors. Creditors understand what happened and have adjusted their underwriting policies to account for the economic colapse. Since the only way banks and credit card companies and lenders make money is by extending credit to customers these companies are going to stretch the envelope when it comes to extending credit in the future. So keep your head up there is light at the end of this tunnel. There is nothing to he assamed of and there is certainly nothing to be embarred about. You are not alone.Think about it as a "fresh" new beggining. You will be surprised how fast time flies when you are rebuilding your financial strength. So with you mind in a positive place lets start rebuilding your credit.
First and foremost, order a copy of your credit report from all three bureaus to see that all your creditor are reporting the debt as discharged (if that is the case). You might have to wait a few months for the credit report to reflect the BK. If you indentify creditors reflecting open debt that has not been discharged you can write a letter to the bureaus challanging the validity the debt. By law the creditor has 30 days to respond or the debt must be removed entirely from your credit file never to return.
Secondly, start rebuilding your credit by obtaining a secured credit card with a bank or credit union. Make sure they report to the credit bureaus every month. Usually they require a deposit of about $300 which will be your credit spending limit for that card. You can increase your spending limit by increase your deposit. I recommend paying your basic utilities with the card every month and here is the important part use the money that you would have paid for your utility bills to pay off the credit card every month or the interest will eat up your finances.Try not to leave a monthly balance on the card. Pay it off every time you pay a bill and you will never incur the high interest they generate on those credit cards. You will just be charged the annual fee, which is usually anywhere from $35 to $100 annually.
Thirdly, try and buy a used compact car at a "buy here, pay here" those used car dealers have in-house financing and they typically deal in poor credit, low income buyers. So they already have processes in place to recover bad customers that don't pay. Usually they are very agressive extending credit and will sell anybody a car with $500 to $1000 down payment and a verifiable job. Buy something that you can pay off in 12 months. Make sure that car dealer reports to the credit bureaus every month. Remember, you want all your new creditors to report your good pay history to the credit bureaus. These monthly reportings will gradually pull your credit score higher and higher every month.
Once you have established your secured credit line with your bank credit card and you have your small inexpensive compact car on a finance plan stop applying for credit altogether. Just a few open accounts that are paying strong every month is all you need to begin the process of credit rehabilitation. Don't be tempted by the credit offers you get in the mail for the next few months they are only there to bait you into the credit trap.
After one year or 12 months of good payments to these creditors you will have a decent case for asking for a credit increase or an unsecured credit card rather than the secured card thay you have had for the past year. You will also being showing a completely financing and paid off used car on your credit. If your are declined thats ok. Keep building credit. Increase the balance on the secured card and replace the financed car with another form of credit. Try applying now for a unsecured card with another bank that is more aggressive. Here are few credit card companies that cater to people with poor credit. However, do not rush out an start applying for credit card after credit card beacuse it will not work unless you take the steps discussed above to rebuild your credit profile and most importantly some time has past between your BK filing and your credit application.
After about 1.5 to 2 years of good payment history hire a good credit repair company to clean up your credit file. As long as you’re paying all your bills on time, you should begin to see your credit score improve. Generally, you’ll want to work on rebuilding your credit for at least one year after the bankruptcy before applying for unsecured credit
Bad Credit Personal Loan Lenders
You have several options when applying for a bad credit personal loan, starting with your bank. Find out what the basic requirements are for getting secured or unsecured personal loans and what type of repayment terms the bank offers. Depending on your credit, the bank may only consider you for a secured personal loan, at least initially.
Credit unions are another potential source for secured and unsecured loans. With this lender, you’ll need to join a credit union in order to apply for a loan and each credit union has different requirements for membership.
One of the primary advantages of credit unions is that they typically offer better interest rates than traditional banks, which can save you money if you’re approved for a personal loan.
If you don’t want to go the traditional route, you may also consider using an online lender. Peer-to-peer lending has made it possible for borrowers to get loans for bad credit without having to go through a bank.
Investors pool money to fund loans to borrowers; there’s no collateral required and your loan approval is based on your credit history. You may even be able to get a better interest rate with a peer-to-peer loan than you would with a traditional lender. Again, this is after you have established a good payment history for the first 12 months after your bankruptcy filing.
If You Don’t Qualify?
You may simply need to allow more time for your credit score to improve if you can’t get approved for a bad credit personal loan 12 months after bankruptcy.
Continue paying your bills on time and don’t apply for too many credit cards at one once. If you need to borrow money right away, you can look for alternate sources of funding, such as payday loans, title loans or cash advance loans. Keep in mind these loans are likely significantly more in interest and considered high-risk options so use them only out of desperation.
Applying for a personal loan can be a stressful and time-consuming process, especially if you’re worried about a recent bankruptcy. The more proactive you are in improving your score, the more attractive you’ll be to potential lenders.
This article was contributed by John Florit on behalf of www.HardMoneyDirect.com
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