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What is the Range for Credit Scores based on the FICO Model

The range for FICO credit score is in between 300 – 850 with the scoring being divided into many different levels. Credit score that is 800 or higher is an excellent FICO and it indicates that you always promptly pay your bills. Only 1% of borrowers have excellent credit score which allows them to get a fast approval and the best interest rate to any loan that they apply. Credit score range in between 740-799 is a very good FICO score that will also gives you the advantage of fast loan approval with the lowest interest rate.

A credit score in between 670 – 739 is a good credit score range that can fetch you a low interest rate for a loan. An average credit score is in between 580 – 669. Many lenders extend loans to borrowers with average credit score at a higher interest rate. Credit score that is lower than 580 is considered a poor credit rating which means that it will be hard to get approved for a loan or credit card. Borrowers with poor credit score should improve their credit scores prior to applying a loan otherwise the interest rate will be very high.

FICO score is originally invented by Fair Isaac Corporation and 90% of lenders use FICO score to determine a lending decision. The credit score is calculated based on several factors such as payment history, how much you owe on your existing debts, how much credit history you have, and the types of loans you have. The credit score is not the only factor that lender looks at when approving the loan.

Each lender has its own method of calculating the risk of the borrowers when coming to deciding whether to approve a loan. There are many other factors that the lender will take into account including how long you are being employed, annual income, other debts that you have, and alimony. Low credit score is not always caused by negligence in making prompt repayment to the lender. If you have very little or no credit history at all, your credit score will be low.

You can request for a free FICO score credit report from the 3 local credit bureaus including Equifax, TransUnion and Experian. The FICO score report you get from each credit bureau may be different as it depends on the data that is submitted to them. You should only apply a loan or credit card from a lender that submit your payment history to at least one credit bureau. If the information on your credit report changes, there will be changes on your credit score as well. You should regularly review your credit report to make sure it has absolutely no mistake. You can dispute any error record on the credit report to get a raise in your credit score.

Can Short Term Loans Restructure High Interest Credit Card Debt

Short term loans can be used for the purpose of restructuring credit card debt. You have to find a short term loan that charges a lower interest rate compared to your credit card interest rates. A personal loan can give you the option of choosing your loan term as you can afford it in your budget.

Lower interest rates means the monthly payment will also be cheaper. With the lower monthly payment, you will find that it is more manageable for you to pay back the credit card debt. The lower interest fees will decrease the expense of interest that you will be spending on paying off your debt. The average credit card interest rate is 13% and you can get a lower interest rate through a personal loans.

It is easier to pay off a personal loan because it has a defined period of loan term. You have to pay a fixed amount that include the principal and interest fee. Most personal loans can be cleared up within 4 – 5 years. Consolidating your credit card debt on a personal loan can help you to save thousands of dollars in interest rates.

Credit card does not have a defined loan term because you just keep paying until all the debt is cleared. In credit card, you can make a minimum repayment where you only make payment for the interest fees. As a result, your balance will roll from month to month and this can end up you taking 10 years of more to repay your debt.

You will see an improvement in your credit score as you make payment for the personal loans. Your credit score will increase because of the reduced credit utilization. Usually the loan companies will carry out soft and hard pulls when you submit a loan request application.

Soft pulls won’t affect your credit score. Even though hard pulls can affect the credit score, it is very rarely that it will deduct a large amount of credit score.

Restructuring the credit card debt with personal loans is feasible if the total minimum payments you make on the credit card is higher than the total you have to pay for the personal loan. You can easily apply for a personal by submitting an online loan application.

Normally, you can expect to get the funds for the personal loans in between 1-5 days.
Personal loans is a type of unsecured loans just like credit card. So, you are not required to put your asset as a type of collateral. you can use the online loan comparison sites to compare the different loans. You should take into account fees like teaser fees and origination fees when applying for a personal loan.

How Cash Advance Lenders Help Borrowers Avoid Missing Payments on Bills and Bank Overdraft Charges

Payday loan is very easy to get approved and great for people who need money urgently. Normally, the payday loan lenders will collect the payment for the amount you owe on your payday through automatic billing. Through automatic billing, the money will automatically be deducted from the bank account on file at the due date. The deadline for a cash advance loan is usually 8 days – 20 days. The benefits of the automatic billing is that it ensure that you won’t miss a payment in case you forgot about the deadline.

Although automatic billing is a convenient form of payment, your financial situation may not go smoothly at all time. Payday loan lenders usually don’t accept check for the repayment. They also do not accept calls to pay back the owed amount via credit card. As a borrower, you must make sure that you have enough money to cover the amount you owe on the day when they will deduct the money from your bank account.

If your bank account does not have enough money and they still manage to deduct the money, you may get bank overdraft fees. If the lender is not able to deduct the funds from your account, you will be penalized with a late payment fee since you fail to pay back by due date. Besides, most lenders will also charge interests on the outstanding amount, for example 1% per day. The interest rate will quickly accumulate to a large amount if you don’t quickly settle the debt. The lender may also try to deduct money from the account of your friend who have helped you to pay back the loan in the past.

Paying the cash advance loan in full which includes the principal amount and interest charges, is always the best. This is because it can help you to avoid spending money on additional fees and interest. If you know you can’t pay back the payday loan, you should contact your bank to cancel the Continuous Payment Authority. The payday loan has no right to stop you from canceling the Continuous Payment Authority according to the law. You should give the lender a call and tell him about your financial situation.

Many lenders will let you pay back in installment to make it easier for you to pay back the loan. The repayment plan involves making partial payment with interest rates and fees over a period of time. This will result in paying back more because of the accumulation of the interest rate but it can help you to pay back the loan easier. You can also request to extend the deadline by paying an additional fee. If you need more time to pay back the loan, you should inform the lender about 2 days before the deadline.

Short Term Loans For Businesses Can Help When Cash Flow Problems Occur

You might be similar to most small or medium-sized business owners who frequently require urgent working capital or cash flow. Regardless of the fact that your small business is growing, you might end up requiring additional cash to cover everyday expenses, for example, payroll, rent and inventory, or to pay for short-term projects that could develop your revenue over the long haul.

Try not to feel embarrassed that you do not have the cash to pay your expenses. It can happen to the best of us. On the off chance that General Motors can have a cash flow issue (and it has commonly) you can as well.
On the off chance that you discover your business doesn’t fit the bill for a traditional business loan from a traditional financing institution, you may even now have the capacity to acquire finance as a short-term business loan.

What are Short-Term Business Loans?

• It will give your business a suitable funding different option for traditional business loans.
• Here is a rundown of reasons why the loan package can advantage you:
• You will have the capacity to meet you urgent requirements for financing, without obliging you to make a long-term debt responsibility; and
• You can pick a maturity date of one year or less.

Short-Term Business Loan Purposes

Here is a rundown of reasons how it can help your business:

• They furnish your business with working capital to help you cover any impermanent lacks. In this way, you can meet your payrolls and expenses;
• They empower you to meet any quick and urgent expenses, especially if your business is seasonal in nature;
• They empower you to make and manage new companies and pay for any new company costs;
• They empower you to exploit any business development opportunities and when you need to move rapidly; and
• They empower you to take a gander at any acquisition or expansion opportunities that can emerge all of a sudden, and you have to react quickly and give prompt cash.

Traditional Business Loans may not generally be the Best Solution for you!

Here is a rundown of common disappointments that numerous small to medium-sized business owners have when taking a gander at traditional loans:

• They are frequently made for whatever length of time that ten years;
They frequently require mountains of documentation and financial statements;
• They have a somewhat long holding up period before you get an approval;
• They can take weeks or even months before funding is gotten; and
• They have a somewhat high decline rate for small businesses.

Taking help of Experts

Guaranteeing you have the right finance structure set up is imperative for you. In this way, you ought to look for master and authority advice from a finance broker who has satisfactory information of the credit policies and the standard necessities for getting short-term business loans. You ought to additionally look for autonomous taxation and accounting advice in regards to the treatment of depreciation and any tax points of interest that might be accessible to you.

Really, short-term business loans are an extremely proficient and financially savvy source of urgent finance. Thus, next time your business confronts cash crisis, don’t stress. Basically contact a finance broker who will help you in getting your preferred loan package.

Improving Your Credit Score By Managing Credit Cards and Loans in 2016

If you are new to credit and looking to build up credit for the first time, you have likely noticed the catch 22 involved with this entire process. Companies and lenders you want to do business with in an effort to build up credit require a credit history in most cases. So it is hard to build up a credit history when you have none. There are some ways around this however, like if you income is very high. Another way around this is to apply for credit in such a low amount that it is safe enough for the lender to lend to you, and in this way you at least get a trade line going.

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You can start out with a starter credit card, such as the card offered by CreditOne, very few people get denied this credit card. This will help you build up a credit score within 6 months. The key here is to max the card the 1st month, and pay the entire balance the same month, and wash and repeat that for 2 months, then only use 30% of your credit or less for the remaining months. Doing this will build up a good payment history, and then show that you stay within respectable credit utilization limits.

A credit card or two alone however will not give you the credit report and credit score that you need. You will need 24 months of on time payments to get a credit score of 750, with no missed or late payments on any type of credit. To get the best type of credit report you should ideally also have an installment loan reported to your credit report, on top of one or preferably two credit cards. Personal loans are an ideal installment loan for this purpose. Installment loans are any loan that has regular repayments. A big part of a balanced credit report is a healthy mix of revolving credit like credit cards, and installment loans. When you have this healthy mix, it lets creditors know that you can handle all types of credit, and manage your finances well.

You might be wondering why I say a personal loan is an ideal installment loan for this purpose. There are several reasons why personal loans are ideal when building up credit. The main reason is that you can take out a personal loan for nearly any reason. The next reason is that unlike say an auto loan, you can take out a smaller amount, say $1000 or less, which allows you to build up your credit without a huge strain to your finances. We feature several personal loan lenders on this website that allow you to borrow as little as $300, and while that amount is indeed low, it does build a new tradeline on your credit report.

With time spent hunting down lenders willing to lend small amounts to people new to credit, and a good repayment history, your credit score will go up over a period of 24 months to as much as 750. Building your score to this point is just a matter of finding the right credit card offers and the right installment loans, such as small personal loans. Remember as well to not stretch out your finances to much, and always ensure that you can meet at least the minimum payments per month. With credit cards it is wise to pay more than the minimum, but with installment loans such as personal loans the opposite is true, you do not want to pay off the loan early. Each type of credit has its own rule as far as how to raise your credit score, and the things that lenders look at when reviewing your credit report.

Personal Loans For Reducing Credit Card Debts Pros and Cons Reviewed

Are you swamped by credit card debt on two or more credit cards? The average American has 3 or more credit cards with a large to medium sized balance on them. The interested accrued on credit card debt can quickly pile up, before you know it you can quickly owe hundreds of dollars in interest on your credit cards. Any credit card with an interest rate of 15 percent or higher can pile on debt rather quickly if you carry large balances.

You could of course opt to a 0% interest rate introductory balance transfer, if your credit is still rock solid, meaning a credit score of at least 680, if not 720 or higher. These credit cards are highly coveted by consumers, but the credit requirements can put these cards out of reach of many in today’s uncertain financial climate. If you are starting to fall behind on debt, raising your credit up by performing credit repair might well be out of reach of you. There is also the fact that high credit card balances can quickly plummet your credit score due to too high of a credit utilization ratio. These cards can also be a catch 22, as if you do not pay off the balance in full by the time the intro period expires, you will be on the hook for interest in full.

So how can you effectively reduce this credit card interest, and make your debts more manageable? A personal loan can be a great choice to consolidate your debt and reduce your interest rates. Not only can you reduce your interest rates, you can also raise your credit score by going this route, in as little as 30 days! When you take out a personal loan to pay off your credit card debt, your balances go down to zero, but your available credit stays the same. With 100% of your credit limit available, your credit utilization rate is now 0%, which means if your prior utilization rate was higher than 30%, your credit score will see a boost. Whether the boost is a large one or only slight depends on how bad your credit utilization rate was. Many credit cards, such as CapitalOne have a credit tracker, where you can see the effects on your credit score using the various sliders to see how your credit score will go up if you pay off your revolving credit balances.

You might be wondering now about some of the perks of using a personal loan to pay off your credit card debt. There are several including:


* One set fixed interest rate

* One payment date vs multiple payment dates

* Lower interest than most credit cards

* Does not require pristine credit

* You can inquire what your rate will be with many lenders without affecting your credit score


The best personal loan rates will come from online lenders. The reason being is that these lenders cut out the middle man and the overhead that branches normally incur. The lenders pass this savings onto you, and makes them competitive against banks and even credit unions. Once upon a time credit unions offered the best possible rates on personal loans, but these days often times an online lender will be the best rate of a credit union on a personal loan.

Points Credit Cards Can Help With Conserving Cash

There is an outstanding offer right now for American Express, the American Express Gold Charge Card, of which gives you 25,000 membership rewards points as a sign up offer. Any Amex card only allows you to get a sign up bonus only once on each American Express card once per person. This is not the greatest American Express card versions om the market, but the rewards bonus makes it worth looking into. You can always start out with this Amex card, and then upgrade down the line. Lets examine this credit card offer.


American Express Gold Charge Card

This is similar but weaker than the Premier Rewards Gold card by American Express. This card is offering you 25,000 points as long as you spend $1000 on your new card within 90 days of opening the card. These points can be used at over 500 brands, from travel to gift cards to merchandise and even entertainment. There is normally a annual fee of $160 a year which is kind of steep, but for the first year this fee is waived, so you can always apply and shut this card down on month 12 to avoid this fee the next year, and still take advantage of this amazing offer. Most rewards programs that offer this many points require you to spend anywhere from $3000 to $5000 or more in 90 days, while this offer only requires you to spend $1000, so kind of an amazing offer here. The low threshold to qualify for the rewards points in my opinion makes this card and offer worth going for. You earn 1 point on most purchases, and you earn 2x the points on any flights which you book direct through an airline, as well as at U.S Restaurants. There are some I got you’s with the x2 points on restaurants, for example a restaurant in a hotel will not qualify, nor would a restaurant within a mall qualify.

This is a charge card however, not a credit card. The difference being is that you are expected to pay your balance off in full each month. Amex may at their option extend payment over time on some charges, if you qualify for their Pay Over Time feature(s). If you do qualify for their Pay Over Time features, you will be then subject to interest, and that rate will depend on your credit score and Amex. This card has no preset spending limits, but Amex can limit your purchase power on a number of factors, including income known to Amex, past charge card usage and payment history.

The card comes with a number of benefits, including personalized travel service, return protection on eligible purchases made with your Amex card. The return protection means that the merchant must honor a product return if the card was used to purchase the product, even if the store normally has a no return and no exchange policy. You also qualify for 24/7 roadside assistance, where a tow operator or locksmith will be sent to assist in an emergency situation. You can even redeem your points for good on Amazon.com, as long as you sign up for their Shop With Points program. If you have at least 2000 points gathered, you can redeem your points at Ticketmaster for a free ticket to an event, point values and redemption levels however will vary according to the nature of the event and the venue. There are many more benefits to this card, such as baggage insurance, car rental loss and damage insurance, extended warranties, travel accident insurance and more.

All around this is a good card to have, as long as you do not mind the $160 annual fee that kicks in on year 2 of owning the card. If you do not yet have an Amex card, this could be a good card to get started with on your path to Amex card ownership. Do well with your payments, then on year two, call Amex and ask for one of their better cards.

Our mission is to find the best articles on consumer finance and lending to help borrowers make good financial decisions. Searching for a loan topic, have a credit questions. reach out to our editorial team.

Fair credit finance offers include loans and credit cards in 2015

If you have a fair credit score, you have some credit card options, and you are not as bad off as someone with bad or poor credit, but you definitely could use some improvement in your FICO score or Vantage score. Chances are before this that you had a credit card for those with poor credit, so the good news is that you now qualify for a better credit card. The bad news is that even though the types of credit cards you now qualify for are “better” they still often come with an annual fee, poor rewards, less perks then a credit card for good or excellent credit, and a high interest rate. Granted you should qualify for a lower interest than your old card, which was designed for those with poor credit.

To raise your credit score first and foremost work on dropping any credit card balances you have to zero. The amount of available credit that you utilize, in addition to any loans that your have, current and closed in the past 3 years, will directly affect your credit score. Once your balances are zero, wait 30 days and apply for one new credit card, this time a card designed for those with fair credit. You should not close out your old credit card however, as this will lower your credit limit and credit utilization threshold. Also the more accounts you have open, the better the credit reporting agencies and FICO can calculate a credit score for you. Many people with only one open account get denied credit for having too few open accounts in good standing. If the old credit card has an annual fee just put up with it until your credit score reaches the excellent range. Once your credit score reaches the excellent range you can apply for credit cards that carry no annual fee without worry of rejection. Once you get approved for those cards, you can then drop the fee harvester credit cards like a bad habit.

When it comes to finding a credit card designed for those with fair credit, you want to look for a card with the best possibler interest rate. You should not concentrate on rewards programs at this point, they tend to have pretty high interest rates that pretty much negate any benefit gained by the rewards, especially after you take into account any annual fee the card might have. There are plenty of credit cards for those with fair credit that do not have an annual fee, especially credit cards offered by credit unions. If you can qualify for a credit card backed by a credit union this may be your best bet as these cards tend to carry a lower interest rate than their bank backed counterparts. This is because credit unions are not run for profit. Baring that you should also look into a credit card issued by the bank that you already do business with for checking and savings, often times you will get a slightly better rate for being a bank customer, or special perks.

You should also pay heavy attention to what fees the credit card is charging, and under what circumstance. Lastly you may want to consider what if any perks the credit card company offers. Perks can include such things as rental card collision damage, no foreign transaction fees, purchase protection and travel insurance. You also need to consider the credit cards terms and conditions well before applying. For example some credit cards charge you interest from the very moment you purchase an item, while the better credit cards out there offer a grace period, which allows you to pay off all or part of the charges before incurring interest.

Below is our choice pick (thanks for the tip) credit card for those with fair to good credit:

Barclaycard® Rewards MasterCard®
This credit card has no annual fee. The down side is that it requires the upper range of fair credit to qualify. If you do qualify however the interest rate is decent, a 24.99% variable APR. The interest rate is offset by the fact you receive 2x cash back rewards for gas, groceries and utilities purchases, and 1x cash back on everything else. 1000 points equals 10 dollars. You receive a complimentary credit score and alerts every time your credit score changes, for better or worse, making this credit card ideal for those striving towards excellent credit.

Tips for Millenials to retire with financial security

Do you want to retire with enough money to make it in retirement? How about retiring with more than enough money to retire comfortably? Today’s millennial generation is not saving a dime. It is the only generation in history to actually have negative savings, which means not only do most millennials not have any money saved, they also carry a high debt load and owe money. Today’s millennials live beyond their means, do not know how to save, and have no firm reality based retirement plans. If you want to retire rich, start by learning and practicing these financial tactics.

Budget
The key to wealth generation is setting up a budget and sticking to it. Many of today’s generation see the word budget as a dirty word, but it is the corner stone of good financial habits. In order to build wealth, you must live below your means, not above it, and this can only be done with the help of a budget. Your budget should have room for at least 20 percent of your income going towards savings.


Rainy day and Emergency Fund

Many people end up in debt due to never planning for emergencies. Most loans today can be attributed to either emergencies, or for goods or services that could have been saved up for. When you go for a loan you are throwing away hundreds if not thousands of dollars away in interest. When you borrow you are making someone else wealthy due to being unable or unwilling to save up money. In life it is not a matter of if you will ever need money for an emergency, but rather a matter of when, so prepare yourself now by starting an emergency fund.

Automatic Savings Accounts
You should set up an automatic savings account so that you save money no matter what happens. All to often we intend to save money, but human nature gets the best of us, and before we know it our paycheck is gone. To prevent this, set up an automatic savings account. You are also taking advantage of compound interest when you do this, every rich person knows that money makes money. While the interest rate on savings accounts today is not that great, it is better than negative interest!

Roth IRAs
This is one of the ultimate retirement vehicles here. A Roth IRA allows you to build wealth for retirement that when you retire is tax free, since you pay the taxes on it beforehand. At age 59 ½ you can withdraw your Roth IRA money without penalty, and if you follow the advice in this article you could retire young at age 59 ½! There is no call to have to retire at age 65, those who have the dedication can find the means to retire early and retire very comfortably.


Live below your means

If you want to build wealth, you need to learn the habit of living below your means. That means saving money anywhere possible. It means not rushing out to buy the latest i-Phone when it hits the market, or buying slick ultra high priced sports cars. Learning how to not spend money while learning how to make your money last longer is vital towards wealth building.

Invest Money
All wealthy people have learned one key train of thought, to make their money work for them. It is not enough to merely save money, you also need to invest money. Yes there is always some risk with investment, which is why you should seek the help of a financial planner to assist you. You can mitigate your risk by choosing S&P 500 index funds, which have a wide variety of companies. Index funds are also light on fees, so you see a higher rate of true return.

If you practice the above advice you will be able to meet every financial obstacle head on, and retire very comfortably. Stay tuned to the editorial team from Short Term Signature Loans, the #1 finance site for emergency loans, cash savings tips credit and finance news in 2015!

Settlement for past due debts on your FICO score this year

If you have one or more past due accounts in collections right now, you may have been contacted by a collections agency or the creditor itself, offering you a settlement on your debt. You may be wondering if it is indeed possible to remove some of the negative impact that this past due debt has had on your credit score by paying off the settlement amount, or even the entire balance.

Everyone wants a good credit score, and sometimes we do make mistakes with our credit. Our credit scores arise from the actions we take every day with our finances and our debts. Anytime we even miss a payment, let alone let a debt go into default, the damage is already done to our credit scores.

Sadly under the old FICO scoring system, paying a settlement on your debt will do very little in the way of credit repair. You will get a slight rise in your credit score, which is better than nothing I suppose. You would get an even slighter improvement on your credit score by paying off the debt in full, under the old scoring system.

The good news is that sometime this year that will change on a wide scale basis. Already 10 credit card issuers have used the new scoring system. It remains to be seen how many creditors will adopt the new scoring system as of now. Well it will change for your FICO score at any rate. Fair Isaac Corp or FICO will not include in your score any debt that has been paid in full or settled. This is being done to help boost consumer lending. The thought here is that if you have repaid your debt, that you just had some financial problems, but that you were still good to your word on repaying your debt. You still receive the hit for the late payments, but not the charge off or debt in default. This new model of FICO score will be known as the FICO9 model.

I should point out that not all lenders will be using FICO9. Indeed some lenders have already stated that they will be using earlier versions of the FICO scoring system. So while you may have a credit score of 690 with one lender, you may have what appears to be a 529 score with another lender for example. Also some creditors use in house scoring systems that only use FICO as a base scoring system, while the in house scoring modifiers change the score substantially.

Rather than worry about paying the debt off just for credit scoring reasons, you should be paying the debt off because you in fact owe the debt. If you start working on your finances so that you never end up in default again, nor end up with late payments, you will in time naturally have a good credit score. Good credit scores follow good credit behavior, it is the natural evolution of good credit behavior. A good budget will help you with keeping up on payments and not over extending yourself where credit is concerned.

I should point out that if you do accept a settlement on any type of debt, that there will be tax liabilities on the amount of debt forgiven. This is because the creditor has written off this debt, debt that the creditor would have paid taxes on, so the IRS instead will turn to you to pay the taxes on the amount of debt that was forgiven. You cannot avoid paying this tax, as the creditor will notify the IRS of the settlement. The settlement is counted by the IRS as a sort of income for you, as you are after all saving money by escaping from the owed debt. This only counts however for debts forgiven that total $600 or more, so you are off the hook for tax liability, if the debt does not reach this amount.