Perfect Credit - Let the Journey Begin
Jun 24, 2008 Credit
With the economy taking a back step, it is becoming more difficult to find loans. This is the time to take precautionary and careful steps to make sure that you will appear to be the perfect-borrower in lender’s eyes. Thoughtful lending process may get you that perfect loan.
First, the debtor should get his credit report. Evaluate your score and realize that some lenders won’t consider lending you money. Don’t waste your time, money, or your credit score on such lenders. Apply where you have a chance at getting the loan. Also, when searching for your perfect loan, don’t apply at multiple places all at once. This shows up on your credit report and gives the impression that you were searching for credit after being turned down by many other creditors,
leading the potential lender to be wary. Get into the habit of having one application at a time. If you do get turned down for credit at a specific place, inquiry about the reason for the rejection. Even though the lenders are not required to explain their refusal, most of them will. If there is a certain problem on your credit report that can be fixed, such as an error on a credit report, then fix it. However, don’t reapply to the same lender without fixing the problem, hoping that it might go through this time. You can also try to explain to the lender some of the issues upon your credit report, such as a severe medical condition that occurred at a specific time, causing your credit payments to suffer.
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Credit Cards - Finding the Best Deals
Jun 24, 2008 Credit
Shopping for the proper credit card should be similar to shopping for a house. Don’t just read reviews or rankings for the best credit card what is the best credit card for one is not the best credit card for another. A credit card that offers 5% cash rebate of fuel charges sounds great to a daily driver, but has no benefits for a college student without a car. It is necessary to decide what it is you want from your credit card The first question you need to ask yourself is how you are going to be using the credit card For example, if you intend to be paying of the credit balance every month, then you might not be concerned with the interest rate that the credit card charges. If you are also not interested in flying then you don’t need the frequent flyer miles.
Decide the criteria that are most important to you. If you are a consumer that doesn’t pay of his balance every month then you might be interested in the lowest interest rate that is available. In this case the Annual Percentage Rate should be carefully analyzed. However, most credit cards have different APR rates for different types of transfers. For examples, purchases may have an interest rate of 14%, while transferring money from one credit card to another might have an interest rate of 18%. What ever you are intending to use the credit card for make sure that such credit card has a low interest for that that specific use.
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Visa Card Issued With 365% Interest Rate
Jun 24, 2008 Credit
News broke yesterday that a visa credit card with an exceptionally high lending rate has been made available to customers by a leading financial firm. The credit card is being offered to customers who have a poor credit rating and has a whopping 365% interest rate.
This is 10 times the highest interest rate for a credit card available from a high street bank. The company offering the deal is Provident Financial, a company based in Bradford. Consumers are told to pay their bill in weekly instalments which the firm’s agents collect from them at their door.
The card is pre-loaded with a loan amount and the financial firm then charges its customers an APR of 183% if they use the card, during a period of 56 weeks. An article in the Times Online revealed that “If the loan [on the card] is £300 over [the] period, the customer is expected to pay back £504. However, if he or she borrows the same amount over 31 weeks, the APR can be as high as 365% and a customer can expect to repay £465.” The highest APR for a credit card which is available on the high street is just 35.9%.
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