Private loan consolidation allows individuals to free up some of their monthly income, with one smaller payment to worry about rather than several. It allows individuals to get control of their finances before they end up in debt like so many others. There are many advantages to seeking this kind of consolidation and the goal of this article is to provide information and tips to those seeking consolidation.

Check the Credit Score

One important part of seeking private loan consolidation is the individual’s credit score. The better the credit, the better the interest rate of the private loan – which means that over time, the individual will be paying less money. Any negative blips on the credit report should be taken care of immediately so that one has the best chance of receiving a private loan consolidation.

Compare Bank Interest Rates

One of the best ways of determining which bank to go with in order to get a private consolidation loan is to check BankRate. This website allows individuals to compare different banks and their interest rates, so those in need of consolidation loans can determine which loan would be best to go with. Those considering a consolidation loan should compare bank interest rates on BankRate.com with their own personal bank as well.

Figure out if Interest Rates are Fixed

Another thing that should be considered when thinking of consolidating one’s loans is whether or not the interest rate is fixed. If the interest rate is fixed, it means the price will stay the same as individuals pay off the loan. However, if the interest rate is not fixed, individuals will risk having to pay higher interest rates in the future. Interest rates will also be based on the individual’s credit score, so ensuring that the score is above average or better is a good idea as well.

It’s also important that the individual ensures that the consolidation loan interest rate is lower than the interest rates on the original debt. If the consolidation loan interest rate is not lower, there is no point in seeking the consolidation in the first place – since the individual will not be saving money through the consolidation.

Check out Education Lenders

There are many different lenders willing to help with educational loans that need to be consolidated. These include different types of loans and different interest rates depending upon the lender. To get more information regarding education lenders, visit Finaid.

Be Aware of Repayment Terms

Any individual considering obtaining a consolidation loan to help with their monthly debt should ensure that they have concrete means of repaying the loan. Without this, the individual risks damaging his or her credit, which can lead to problems in the future when the individual seeks funding for a home, car or similar items.

Using the advice and tips above, individuals can determine the best ways to seek a loan consolidation that will provide them with more financial freedom than they currently have.

Secured debt consolidation loans have grown in popularity. They are a means of putting all unsecured personal debt under one roof, including high APR personal loans, credit card debt and personal overdrafts. However, these are all forms of unsecured debt. Is it a sensible idea to turn unsecured debt into secured debt?

Secured Debt Consolidation Loans vs. Unsecured Debt

Secured debt consolidation loans, also known as homeowner loans, allow a borrower to combine debts into a single monthly payment, benefit from a low APR and reduce monthly repayments. This can be the difference between paying household bills punctually and the worry of money problems. Further unsecured loans may not be available to a borrower because of a bad credit history.

Whilst a secured debt consolidation loan has merits, turning unsecured debt into secured debt is rarely a smart move. It gives creditors far greater powers in the event of default as they now have collateral. This means that, should a borrower fail to make their monthly repayments, it could lead to creditor harassment or even house repossession in certain circumstances.

Doesn’t a Charging Order Turn Unsecured Debt into Secured Debt?

It is true that a lender can get a charging order and turn unsecured debt into secured debt. However, the process of getting a charging order is very involved and means that a lender has to register a County Court Judgement or CCJ against a borrower before this can even be contemplated. Should a borrower come up with a repayment plan, a charging order could be prevented by a judge.

Consider a Debt Solution before Getting a Secured Debt Consolidation Loan

Unless someone has a job that depends upon good credit, it is worthwhile considering a debt solution, such as a debt management plan, when experiencing money problems. Getting a secured debt consolidation loan could serve to worsen money problems, especially if the borrower fails to close down sources of credit that had been consolidated by a homeowner loan.

A debt solution will result in a bad credit rating, but many borrowers already have adverse credit which is why they have turned to a secured debt consolidation loan. A debt solution could simplify finances greatly and even result in a debt write-off in the case of an Individual Voluntary Arrangement.

Whilst secured debt consolidation loans allow a borrower to get a low APR, the negatives outweigh the positives. Should an unsecured loan no longer be available because of a bad credit rating, someone experiencing money problems would be well advised to see if a debt solution presents a more favourable alternative.

There are many ways to get bad credit help, especially through secured bank or credit union loans.
The first step on the road to get bad credit help is to make sure your credit report is accurate. If your report from Equifax, Experian, and TransUnion has incorrect or incomplete information on it, then you can write a credit report dispute letter and tell them you believe the information is incorrect. Under the Fair Credit Reporting Act (FCRA), the credit reporting agency has 30 days to investigate your letter. The less information you place in such a letter, the better. Remember that if it cannot be proved, the credit reporting agency must remove it.

Another valuable step is to get a secured bank or credit union installment loan. How this works is you go into a local bank or credit union, especially the smaller ones. A good amount to go in with is $1,000 to $2,000. However, you can usually go as low as $250 and even as high as $5,000. Do not panic; you will get this money right back.

Honestly tell the loan officer you need to get bad credit help through a savings-secured loan. Usually you will not need to have a credit check, since you are technically borrowing your own money. Deposit the money into a savings account. You will then get your money right back as the “loan.” As you pay the installment each month, the savings account will be unfrozen in an equal amount. This way to get bad credit help is risk-free, as long as you remember to “pay” on time, and costs very little money. Most banks and credit unions charge only a few percent for the interest on a savings-secured loan. For maximum effect, you may want to repeat this several times with multiple banks and credit unions if possible. These accounts will reflect on your credit reports as on-time secured installment loans. At a later date, these same lenders will be more likely to give you unsecured loans, especially if you make a good living. In addition, this method to get bad credit help will greatly improve your credit score, enabling you to get more and more lending opportunities from other banks, credit unions, and finance companies.

It may seem hard to get bad credit help, and though it requires patience and persistence, your credit score can and will improve. Pay all your new obligations on time and make sure old information on your report is accurate, and you will have a better credit future.

Many individuals have credit report questions, and with so many people in debt these days, it’s important to learn as much as possible about the benefits of good credit and how to maintain an excellent credit score. For those individuals wondering ‘what’s my credit score,’ there are a number of resources available that assist with tracking and monitoring credit reports. Learn to answer credit report questions and inform individuals of how to maintain great credit.

What is a Credit Score?

A credit score is formulated by the three major credit bureaus, based on an individual’s credit history. As individuals stay on top of their monthly payments and pay on time, lenders report to the credit bureaus, and the credit score increases. However, when individuals pay late or don’t pay at all, it is reported also, and makes the credit score decrease. Other things affect the credit score as well, such as how many different types of debt an individual has and what the balances on those debts are in comparison to what they are paying each month.

The Three Major Credit Bureaus

There are three major credit bureaus, which formulate credit scores for individuals. Before lenders extend credit to an individual, they will check with these bureaus to determine whether or not the individual is a ‘safe’ risk or not. Depending upon the score of the credit, the lender will decide whether or not to extend that credit. The credit bureaus are TransUnion, Equifax and Experian. For the addresses and other contact information regarding the three major credit bureaus, visit Fight Identity Theft.

How to Monitor a Credit Score

Individuals with credit report questions can monitor their credit report, staying on top of the score and the entries. While it doesn’t happen often, credit bureaus can make mistakes, placing entries on an individual’s credit report that do not belong to them. Also, monitoring credit scores can help individuals spot identity theft right away and take actions to stop it before much damage has occurred.

Each individual is entitled to a free yearly credit report, which can allow him or her to monitor the score. The only website which officially offers free credit reports is AnnualCreditReport. By creating an account, individuals can receive their free report and if they wish, can decide to monitor the report more frequently, which may cost a small fee.

Free Credit Report after Being Turned Down for Credit

Individuals who have been turned down for credit may find themselves wondering, ‘what’s my credit score?’ In most cases when an individual has been turned down for credit, they will receive a letter which explains why. On the back of the letter, individuals will find instructions on how to receive a free credit report. This will answer credit report questions and help the individual understand why they’ve been turned down for credit.

By using the information above, individuals will understand their credit report better and learn how to monitor it and keep the score above average.

Most individuals residing in Canada understand the importance of monitoring their credit report. With less than good or poor credit, individuals have a very hard time being financed for anything. This makes it difficult to get financed for a home, a vehicle and other major purchases. Individuals can check their credit report easily in Canada with the tips for dealing with the credit bureau of Canada below.

Contact the Three Major Credit Bureaus

Like the US, the three major credit bureaus in Canada are Equifax, Experian and TransUnion. In order to receive a copy of their credit reports, individuals must contact these bureaus and request a copy. If one has recently been turned down for receiving credit from a particular lender, he or she will receive a letter stating why. There are instructions on the back of the letter which explain how to obtain a free copy of the credit report. Other than this, the bureaus will need to be contacted separately.

Contact TransUnion

In order for individuals to receive a copy of their TransUnion credit report, they will need to contact the company directly. In Canada, individuals can call 1-800-663-9980. However, those who live in Quebec can call the toll-free number at 877-713-3393. For those who would rather visit the location to receive their credit report, there are offices in Quebec and Ontario. In order to receive the copy, most individuals will need to have two different forms of identification.

Contact Equifax

To receive a copy of the Equifax credit report, call toll-free at 800-465-7166. Customer service representatives can give individuals the best information regarding how to receive their credit report in the most suitable way. Also, individuals have the ability to receive their report via snail mail. On the Equifax Canada website, found at Equifax, there is a credit request form which individuals can print out and mail in. There is also the option to check the credit report online but this may cost a small fee. Similar to TransUnion, there is a two identification requirement to prove an individual’s identity.

Contact Experian

The Experian website is available at Experian where individuals can receive an online copy of their credit report. The phone number to Experian Canada is 888-826-1718 and individuals can call this number to find more information regarding how to receive their Experian report by mail in Canada.

By using the information above, individuals can receive copies of their credit reports from the major Canadian credit bureaus. It’s important for individuals to keep track of their credit and monitor the activity in order to ensure that everything reported is legitimate and valid.