TERRY McAlpine feared he’d never be a homeowner due to debts of £50,000 and a ruined credit score, but he still managed to get a mortgage on his three-bed house. Often, lenders won't take on someone with a bad credit file as they are considered too much of a risk. If a person’s file reveals they have a track record of missed credit card or loan repayments lenders typically conclude that this is a dangerous trend, and they will reject applications. Another mark against potential homeownership is the risk of repossession - as a mortgage lender can take your house if repayments are not made. Terry, from Upton in Northampton, had seen his finances left in tatters thanks to the antics of a long-since ex-girlfriend. He says she racked up almost £50,000 of debt by using his credit cards without permission. How to boost your credit score before applying for a mortgageFIRST ensure all of your payments are made on time - this includes anything from household bills to … [Read more...] about How we got a mortgage despite being £50k in debt and having a bad credit score
I have bad credit and need a personal loan
Robert Powell Special to USA TODAY Published 11:43 p.m. UTC Jul 18, 2018 Question: I’m 64. My credit score is about 656. For different reasons over a long period of time — including unemployment and health issues — I accumulated credit card debt of about $50,000. I intend to take out an unsecured personal loan, but I don’t want it to have a negative impact on my credit score. I have a job now and I will pay my monthly payments on time. But what will happen if I cannot continue my payments to the lender? If I should file for bankruptcy, which is worse: defaulting on credit card debt or an unsecured personal loan? If I try to negotiate a reduction of my debt with the creditors, do you think this procedure will be successful and not take too long? And what is a nonprofit debt relief company/agency, and how could they help me? Bottom line: What strategy would you implement to resolve the debt problem if you were in my … [Read more...] about How do I get out of $50,000 in credit card debt: personal loan or repayment plan?
Our credit scores have become the defining factor of our financial lives, and we're not just talking applying for a mortgage, personal loan or a car on finance - it can even control whether you own a mobile phone or not. New research has uncovered how thousands of Brits across the UK are completely unaware that they are being judged when it comes to overdraft extensions, paying household bills, and even renting a flat. And this extends to monthly insurance premium instalments, monthly direct debits and monthly electricity direct debits – with more than half of the population admitting that they weren't aware big brother was checking out their trustworthiness, according to Amigo Loans. More seriously, one in five people aren't aware that they’re credit checked when applying for a mortgage, meaning they may not only be declined but they could actually damage their credit score, making finding a mortgage acceptance even harder - and more expensive. Top 10 financial … [Read more...] about 10 money purchases you probably don’t know you’re being credit checked for
Credit scores are needed to qualify for a car loan or mortgage. And the way you establish a credit history is by getting a credit card, right? That's a familiar personal finance myth that has led millions of Americans to get their first credit card -- and risk falling into high-interest debt, experts say. The average American in 2017 had two-bank issued credit cards and carried $5,551 in debt, according to the credit bureau Experian. Collectively, Americans have $1 trillion in credit card debt, more than any country in the world. Here are four ways consumers can create a credit history without falling into the credit card trap. Report monthly bills like rent and utilities Bills like rent and utilities traditionally aren't used to create a credit history – only loans are. But new companies and scoring models are springing up that include monthly bills like rent, said Robert Harrow, a credit card specialist with ValuePenguin. Those bills include rent, cell phone, internet, … [Read more...] about 4 ways to build good credit without using a credit card
Carmen Reinicke CNBC Published 6:00 p.m. UTC Jul 9, 2018 You've watched your children or relatives celebrate college graduation, move to new cities and start first jobs. You might be settling into life with an empty nest, or simply enjoying one less person in the house. That is, until your child brings up student loan refinancing and asks if you will help by co-signing. Student loan debt in the United States has climbed to more than $1.48 trillion, a record amount. The average student loan debt for the class of 2017 was nearly $40,000, according to Student Loan Hero, an online resource for managing student and personal debt. This represents a huge financial burden for 44.2 million Americans and can take years to pay off. More: Borrowing for college? 3 ways to avoid getting trapped in a bad student loan deal More: How some students are lowering or avoiding college tuition and student loans More: Student loans have become our modern-day debtors prisons Currently, interest … [Read more...] about Piggybacking on good credit: Things to consider before co-signing a student loan