Four Things To Be Considered Before Applying for A Bad Credit Home Loan!

Four Things To Be Considered Before Applying for A Bad Credit Home Loan!

There are plenty of reasons why you might have a bad credit rating, missed payments, loan defaults and other money miscalculations can affect your credit report and your financial future. Even if you have never had a loan or credit card before you could end up with a poor credit rating because lenders can’t access any evidence to show that you could manage your borrowing successfully.

However, getting a Bad Credit Home Loan is still possible even with credit problems. If you have a poor credit score and looking for a bad credit home loans, here are top 4 things that you should consider before applying:

1. Choose Secured vs unsecured:
You have many decisions to make when shopping for a bad credit loan, and one of them is whether to obtain a secured or an unsecured loan. Secured loans require you to use an asset to secure the loan, whereas an unsecured loan is a money that you borrow without using collateral. You are advised to contact your local lenders and check which loan can work out for your needs.

2. Check The Interest Rates:
This is when home loans come into play. When it comes to home loan interest rates, the lower one is always better. It is essential to consider the interest rates at which these loans are offered, some lenders offer low and attractive interest rates while others have too high and unaffordable interest rates. Choose one of the most reliable lenders that can provide the loan at lower interest rate with fewer documentation works.

3. Repayment Duration:
This is the most important parameter that the lender will look into while deciding your home loan tenure. The older you are, lesser will be the home loan tenure and the younger you are longer will be your home loan tenure. If you take a home loan for a short period then your EMI will be high, and if your home loan tenure is long then your EMI will be low. So choose accordingly which is better for you.

4. Check Your Ability for Repayments:
If you will fail to keep up with your loan repayments, it could seriously affect your credit score. So check your ability to pay your loan repayments on time.

Conclusion:
There are many different loans for people with bad credit, so always do plenty of research before applying to make sure you have found the best loan to suit your needs. If you need more information about a bad credit loan, please feel free to contact Magna Capital Group, Inc. today at (310) 734 4044 or email at info@magnaloans.com.


10 Steps To Raise Your Credit Score Quickly!

Credit scores play an important role in nearly everyone’s life. A good Credit score decides whether you get a loan or not. Everyone should make time to check and manage their credit score regularly, as it can affect your ability to borrow money or access products such as credit cards, or loans. If you aren’t getting approved for credit cards or loans, or aren’t getting favorable rates for financing, you might need to make some improvements to your credit score.

Here are 10 steps that can help you boost your credit score quickly:

1. Check your credit report for accuracy:
The first step to improving your credit score is checking your credit reports. Credit scores are based on the data in your credit reports, it’s incredibly important to make sure all of that information is accurate. If you have a mistake on your credit report, your credit score will reflect that mistake. As you look through the report, be sure to keep a lookout for references to unpaid bills or late payments. If you find any inaccurate information, file a dispute. The report should give you with instructions on how to do that. If you find you are not up for doing the task yourself, enlist a credit repair company.

2. Try to get your credit card limit increased:
You can try to get an increase on your credit limit in order to get your balances down. For example, if you have reached the $1k limit on your card, try to get the limit increased to $2k. The amount of credit you are using will get cut in half. If you are able to do this, be sure not to use any of it otherwise it will defeat your purpose.

3. Get a new credit card:
Get a new card but do not use it for any purchases. If you do not put any new purchases on your current credit cards as well as the new one, the overall amount of credit you are using will go down and your score may increase. The key here is to not apply for more than two cards, any more and it may look like you are looking to go on a shopping spree.

4. Try to negotiate any remaining balances:
You can help out your score by trying to settle some of the debt but make sure you get them to send you something in writing. If you find yourself in need of some extra cash, there are lots of ways to get some. For example: you may try to opt hard money loans as it’s easy, fast and quick funding loans provide full-flexibility to the borrowers.

5. Pay off your due credit accounts:
Make sure to check and pay off you all due credit accounts as soon as possible. Your payment history makes up 40% of your credit score. So start making payments now on any due accounts and you will see a quick boost to your credit score after it has been noted on your credit report.

6. Get connected with authorized user:
Connecting with an authorized user is a great option for giving your credit score a boost. The key is to make sure that the cardholder is making his/her payments on time each month and will continue to do so. When you get connected, the account will now be on your credit report. Just make sure it is your name on the card. Your credit report will now show the main cardholder’s on-time payments etc.

7. Pay your bills on time:
Paying bills on time is one of the biggest ingredients in building a good credit score. If you’re bad about paying your bills or paying them on time, it damages your credit and hurts your credit score. SO make sure you pay bills on time every month.
8. Use different credit types:
You can use different kinds of credit in order to increase your score quickly. For example, taking out a small personal loan or purchasing new furniture on installments may do the trick. This, of course, should only be considered if you are sure you can make the payments and on time.

9. Leave old debt on your credit report especially those with balance:
Leaving an account open provides you with a trade-line that can benefit your credit score as long as you are making timely monthly payments. If you are going to close your credit card accounts that have become delinquent, then please wait. Before closing any of your credit accounts make sure it would not negatively affect your credit score because closing a credit card with a balance can hurt your credit score. It’s very rare that closing a credit card will improve your credit score.

10. Ask your creditors to delete late payments:
If you are in a good place with your creditors, try to see if they can delete any late payments with the credit bureaus. This could help to increase your credit score.

The Bottom Line:
Credit scores are decision-making tools that lenders use to determine whether or not you qualify for a loan and how good the terms of the loan will be. However, lenders not only look at your credit score, they also consider so many other things such as the total amount of debt you have, the types of credit in your report, and any derogatory marks you may have. Other than your credit report and credit scores, lenders may also consider your total expenses against your monthly income (known as your debt-to-income ratio), depending on the type of loan you’re seeking.

Every time you set a major financial goal, like becoming a homeowner or getting a new car, your credit score is likely to be a major part of that financing picture. Improving a poor credit score takes time, but it’ll be completely worth it. If you have bad credit, following these steps will not only save you money, but also teach you the valuable skills necessary to maintain a good credit score in your future. You are advised to be responsible and stay educated about your accounts and scores in order to handle your own finances successfully.

Financial Institutions like Banks use credit score as a primary factor in the loan decision. They are often very stringent in demanding things like personal credit score and history, personal information including work experience and education, cash flow statements, balance sheets, financial projections, and much more. This abundance of paperwork, information, and requirements immediately turn off many otherwise qualified investors. The entire process of bank loan is very lengthy and complicated. For bank loans, minimum credit scores are crucial and very rarely can even well-documented explanations reverse a “denied” decision.

If you have bad credit and need a loan, hard money can be an extremely useful financing option for you. It is significantly easier to secure a hard money loan than a traditional bank loan. Private hard money lenders set their own criteria for accepting credit and be more receptive to common sense credit review. They look more at the situation and the cause of the credit flaws and rely on the collateral and higher points and rate to mitigate risk.

For additional help and advice on ways to get financing with bad credit, please feel free to contact Magna Capital Group, Inc. today at (310) 734 4044 or Email at info@magnaloans.com.


Improve Your Credit Score With Hard Money Loans!

A credit score is one of the most important components within your financial realm. Your credit history determines what loans you will qualify for and the interest rate you will pay. A credit score provides an easy way for lenders to numerically judge your credit at a point in time. It gauges how likely you are to repay your loan in a timely manner. The better your history appears, the more attractive you become as a loan customer.

Most people don’t put much thought into their credit scores until the time comes to apply for a loan. Unfortunately, some people run into situations or make bad decisions that affect their credit score. Thankfully, hard money loans are great options for those people who have bad credit histories. The loan criteria of hard money loans do not focus on the credit histories of the borrowers. Hard money lenders provide borrowers with the money they need in order to complete specific tasks, they allow them to improve their FICO credit scores.

Repairing credit score is a bit like losing weight, you are required to plan your budget and avoid unnecessary expenses. You also need to increase your saving and earning as well to have a good credit score. Before finding out how to use hard money loans to repair credit scores, you must make sure that you can comply with the terms and conditions of this loan. If you are able to pay off the loan by the due date, you can definitely use it in order to improve your credit score.

The following lines show how hard money lenders can help debtors improve their credit histories.

Flexible Agreements: hard money loans come along with more flexible agreements compared to the traditional mortgage loans. This means that lenders are able to adjust the terms and conditions of a hard money loan in order to help a borrower to repay it on time and improve his or her FICO scores.

Extendable Payment Terms: Due to the current economic situation, more and more people are searching for loans that provide extendable payment terms. These loans allow lenders to extend the loan repayment term up to three years.

Debt Consolidation: Hard money lenders usually allow people to refinance existing debts. This can definitely help a debtor to improve his or her FICO score.

Conclusion:
Your credit score plays an important role in your financial journey. If you expect to need financing in the next few months and aren’t convinced your credit score is high enough to get you approved, you’ll need to act quickly to improve your chances. You are advised to check and manage your credit score regularly, as it can affect your ability to borrow money or access products such as credit cards, or loans.

A hard money loan is a big advantage for borrowers who have bad credit histories. Magna Capital Group, Inc is one of the most trusted hard money lenders in California that provides fast financing solutions for borrowers who have come across challenging times and are in need of fast, creative financing solutions without regard to their FICO credit score.

For more details about hard money loans, please feel free to call us today at (310) 734 4044 or email at info@magnaloans.com.


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    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.