December 23rd, 2011 | Credit Lending |
1-Always fill out credit application completely and accurately.
Most sub prime lenders will require documentation to verify the info that you fill out on the application. Pay stubs to verify your income and some type of utility bill to prove you place of residence are common requests. They will also contact your employer to verify employment and time on the job. If you are not sure what your monthly income is always estimate low, its better for them to find out later that you make more than what you put down on the application than less. Never over inflate income, job, or residence time on your application or your loan will get rejected in the verifications process. If a lender feels you have deliberately deceived them you are dead in the water.
2-Always have some type of down payment no matter how small.
Although it is possible on rare occasions to get approved for auto loans with bad credit without a down payment. Most of the time you will be hard pressed to find a sub prime lender that will approve you with zero down. Always bring some type of down payment to the table regardless of how small it is. When you put money down you accomplish two things for the lender. Number one it shows a commitment on your part. If you are struggling financially and are still able to save up some money to put down on this loan, you are demonstrating a commitment to the lender that you have the ability to repay. Number two it helps to fit within the loan to value guidelines that most sub prime lenders follow.
3-Always have a pre approval in hand before visiting the dealer.
Having a pre approval in hand when you visit the dealer puts you in a position of strength and gives you negotiating power. You are not at the mercy of what the dealer can get approved for you. That’s why it is recommended that you apply online or in person with one of the many sub prime lending sources out there. Once you have a pre approval then go out and start your search for your new vehicle. You will save yourself a lot of time, money, and headaches.
4-Always Be flexible and have an open mind.
If your credit scores are low and you are in a rebuilding mode always keep an open mind as to what you may qualify for. Maybe a brand new vehicle isn’t the best idea right now. Maybe a slightly used vehicle with a much more affordable payment is what the lender may want to approve you for. Sub prime lenders do not want to set you up to fail. They will want to approve you for a payment that fits well within your debt to income ratios. As you make timely payments on this new loan your credit score will start to rise and next time you can get the car of your dreams.
5-Always know your budget.
It is easy to get caught up in the new car fever when you are shopping for a vehicle. Work with your lender and figure out a payment that fits into your budget and stick to it. Do not set yourself up for failure by biting off more than you can chew. You are in a rebuilding mode and need to be realistic as to what you can afford monthly. Leave yourself a cushion for unexpected expenses that may come up.
By following these guidelines you can save yourself a lot of time, money, and headaches.
December 4th, 2011 | Credit Lending |
Bank of America is one of the biggest lending institutions in North America. With the economic meltdown making it tough for several home loan borrowers to pay off the home loan, the bank has launched a loan modification program with effect from Dec 1’2008. Bank of America loan modification is also affiliated with the Federal loan modification program. If you are a home loan borrower from bank of America, and having trouble paying back the loan because of a frail financial condition, check with the bank personnel to see if you qualify. Before you go for refinancing or foreclosure check out the option of Loan modification. It may be a better and cost effective option for you.
The eligibility conditions for bank of America modifications are:
To qualify for bank of America modification program, the date of receipt of sub prime mortgage or adjustable rate mortgage should be prior to Dec 31st 2007.
The borrower should be delinquent for more than 60 days, prior to being considered for loan modification program of Bank of America. A borrower who is current now but becomes delinquent for 60 days or more at any time prior to June 30, 2012 is also eligible for Bank of America loan modification program.
A borrower who has sub prime mortgage at adjustable rate mortgage (ARM) and can become delinquent at any time prior to 30th Dec 2012 because of the rate resetting which shooting the mortgage installments beyond the affordability of the borrower.
The loan to value of the property ratio should be greater than or equal to 75% before the borrower can be considered for the loan modification program.
The debt to income ratio (DTI) of the borrower should at least 34% to be able to be approved for loan modification to be able to spare for the mortgage payments after taking care of routine monthly expenses.
The property on which the mortgage is sought should be the primary residence of the borrower.
If you qualify for the Bank of America modification as per above guidelines, following is the approval procedure:
Make an income and expense statement. The income statement is made up of pay stubs and tax returns. For the expense statements collect all the bills paid or unpaid, credit card statements, insurance payments, student loans, medical bills and your utilities bill and all other expenses that you are currently or likely to incur in a month.
Contact the Bank of America loss mitigation department to inquire about the document requirements. Ensure sending the entire set of required document in the first chance itself to avoid any risk of delay or denial of your application. Everything that you state in the application has to be verifiable. An iota of dishonesty can kill all your chances of securing the modification
The application form has to be accompanied with a hardship letter. Draft your hardship letter with utmost diligence. A well drafted compelling hardship letter can turn the tables in your favor.
The whole modification procedure takes eight to ten weeks before you receive approval. Be patient but constantly keep following up about the status check of your application with the concerned department.
November 18th, 2011 | Credit Lending |
When business owners apply for a credit card, they need to provide detailed information to the potential lending company. The application form is more detailed than the one used for an individual who is applying for credit. Some of the information that a business owner is asked to provide will be the same as with an application for a personal card. Other will pertain to the history of the business.
The business owner will be asked to indicate the legal name of the business, as well as the company address, phone and fax numbers. Thelending company will also want to get information about the nature of the business, as well as whether the business is a sole proprietorship, a partnership, or a corporation.
The required form will also ask for information about the company’s gross annual sales, how many employees it has, and how long it has been in business. The tax ID or the owner’s Social Security Number are also required.
The may also request additional information on the small business credit card application form, such as the annual sales for the previous three years and whether the business is a subsidiary of a parent company. The credit issuing company may also ask about previous bankruptcies or tax liens that have been filed against the company. Business owners should consider their options carefully before filling out applications for your small business credit cards. The terms can vary greatly between issuers, and these differences cost a business money.
When business owners apply for a credit card, they need to provide detailed information to the potential lending company. The application form is more detailed than the one used for an individual who is applying for credit. Some of the information that a business owner is asked to provide will be the same as with an application for a personal credit card. Other will pertain to the history of the business.