This is a really informative article on credit scoring. When getting a student loan this is something to have embedded in the back of your head. Being in the mortgage business, I see people everyday trying to get loan consolidation with bad credit, we don't except them. When you have bad credit you can't buy a car or a house because no one wants to finance someone with bad credit, because they wont pay you back. I see a lot of clients who got into credit trouble in college and it literally destroys their life. With crappy credit you can't even get a job most of the time. Credit is very critical when it comes to your future so don't screw it up. Get a further understanding of credit by reading this article.
By: Tabitha Naylor
Confused about credit scoring? Frustrated by the so-called calculations that the bureaus use to calculate credit scores? If you answered yes to any of these questions, take a deep breath. You are not alone!
When it comes to money lending, most financial institutions strive to live by maxim of ‘only good credit need apply.’ Yes, there are lending institutions that will lend to individuals or businesses with very low credit scores (known as ‘bad credit loans’), but these loans often come at a high price. These types of loans frequently come with very high interest rates and exorbitant fees that can end up costing consumers much more than the original purchase. Even if your credit score is not necessarily bad, but just ‘so-so’, chances are you’ll end up paying a lot more than a person with very good credit.
So what exactly do lending institutions consider good credit? Good credit is based on your credit report and the accompanying three-digit FICO credit score.
Your FICO credit score is based on a number of factors, including:
1) New or recent credit history. The first factor used to calculate your credit score has to do with your recent credit history. This includes any new credit accounts you may have opened, whether you’ve made requests for new credit, and how you’ve recently managed all of your credit. If you decide to open several new accounts at once, be warned that this may hurt your credit score. A person with good credit most likely does not open new accounts frequently, but rather has a long history with a few accounts that are in good standing.
2) Your payment history. This includes whether you have missed any payments, or paid late. Payment history also involves the different types of payments (car, house, different credit cards, etc…) you make each month. Roughly 35% of your credit score is determined by your payment history. A person with good credit probably has a consistent record of paying on time each month over a long period of time, with little or no missed payments.
3) The length of your credit history. This refers to whether you have established sufficient history to provide an accurate portrait of how you manage your finances. Lending institutions want to know whether you have a history of paying on time. Keep in mind that even if you have managed your credit perfectly, if your account is only a year old, it probably won’t raise your credit score immediately. Keep it up for a few years, however, and watch your credit score soar.
4) The amount you owe on all your different accounts. Do you have dozens of accounts carrying high balances? Are most of your credit card accounts maxed out? Or can most of your debt be traced to one or two accounts, such as your mortgage and car payments? Good credit is hard to attain if you carry balances on many different accounts. A person with good credit probably only carries balances on one or two accounts.
5) Types of credit. Another factor used in calculating your credit score involves the types of credit you use. Different kinds of credit include credit cards, mortgages, and installment loans such as car and student loan payments. If the type of credit you most commonly use weighs heavily on credit cards and other high-interest credit sources, your credit score will probably suffer.
Now that you have an idea of what good credit looks like, how can you improve your chances of getting a loan if your credit is less than stellar? First, obtain a copy of your credit report. Your report is available from any of the three major credit reporting bureaus—Experian, Equifax, and TransUnion. By law, you can obtain a free copy of your credit report once a year, but additional copies will cost you approximately $13. Review your credit report carefully and contact the credit bureau if you spot any errors or omissions (be prepared to provide documentation).
Remember that so much of your credit score depends on your payment history. The importance of paying your bills on time, every month, cannot be stressed enough. Many banks offer you the option of scheduling automatic payments each month. Make use of these, if your financial situation allows. Also, don’t open new credit accounts if you don’t intend to use them, and don’t open and close accounts frequently. Instead, focus on using responsibly the accounts you already have. This alone will raise your credit score, and make you much more likely to get best loans from lending institutions.
About the Author:
Tabitha Naylor is an experienced mortgage broker/consultant with Apex Financial Mortgage. For more information, or additional resources on home loans, visit Apex Financial Mortgage
Article Source: http://www.therealarticles.com
Saturday
Planning for Your Future
One mistake students make these days is not thinking about their future. When I was 18, I was so use to people doing everything for me I had no thoughts of the future because I figured my parents had everything taken care of. So many students have that mentality. That mentality can really get you into financial trouble in the future. When you don't plan ahead, you plan to fail.
By: Nathan Dawson
With people living longer and healthier lives, it's important to save adequate funds to be able to live comfortably through retirement. Read about four families stories throughout different life stages and where they should be at financially. See where you fit and if you are on track to be able to retire with the right financial security.
20s: Just graduated, starting a career, or a family on the way...
Often times college students struggle to save. With so many different college related expenses and student loans, its difficult to put money away. However after graduation and the debt needs to be paid off, people start to think about their futures and what needs to be done to live a financially stable lifestyle. Some are successful, while others continue to struggle. People who just start a career are often using that money to pay past debts so they cant save right away. If one is expecting a family then it is extremely important to have savings in mind.
Budgeting, getting rid of debt and starting an emergency fund with up to three to six months of basic living expenses should be enough to live comfortably at the time. It's important once debt is paid off to not get into debt again, and keep proper funds in a savings account.
People in their 20's should start contributing to a retirement savings plan as well, such as a Roth IRA or if involved in the military you can make contributions to the government's Thrift Savings Plan.
30s: A family, with one child and one on the way, both employed.
People that are expecting a family in the future will usually start to save for a bigger home to live in if needed. This often times cuts into saving for retirement. If involved in the military, which has a pension, it probably wont be enough to cover both incomes. People in their 30's are faced with saving for retirement and their children's education. It's important to think about your child's education but also consider that they might get help through financial aid and scholarships.
In addition to retirement savings, people often choose to keep stock mutual funds as well to help reach long-term saving goals.
At this point in life it's important to make sure a will is in place and your life and disability insurance are updated to protect the people in your family.
40s: Single but two children with one in school.
Divorce is occurring more frequently then ever before, with about half of all Americans going through the process of one. Once people get married, some will agree to have one person be responsible for the finances. If your spouse is involved in the military many will contribute their savings to a Thrift Savings account and if by chance a divorce does occur, it will be split but its still important to have another way of saving money.
It's so important to manage expenses and save for retirement. If you are on your own at the age of 40 expenses are going to be more challenging. Plan to budget around 10-15% of your pre-tax retirement savings and increase your fixed income investment percentage. Be sure to update any estate plans, life insurance policies, and retirement accounts.
50s: Getting closer to retirement, spouse and 3 grown children, and one grand child.
The question people start asking themselves today are, "Am I going to have enough money to retire, or should I start looking for another job?" Today with people living longer, its reasonable to think if taking another job is necessary.
Creating a budget for retirement is extremely important because it will map out if you will have enough money to live off of.
People in there 50's have one of several options. They can continue to work to save more money, reduce the income goal, or increase returns by increasing your risk with a more aggressive portfolio.
Get on track at any age
No matter your age, with time and strategies you can reach your desired retirement goal.
Cut back on expenses.
Consider tax-advantaged savings through the military's Thrift Savings Plan or choose to save in a Roth IRA.
Review your assets annually and make necessary adjustments as time goes on.
Do not take money out of your retirement's savings to borrow.
The road to retirement is challenging but with proper saving and strategies in mind it is possible. Explore your options to find your best choices and you'll be one step closer to reaching your retirement goals.
About the Author:
Find more great articles at a great online source for finance information.
Article Source: http://www.therealarticles.com
By: Nathan Dawson
With people living longer and healthier lives, it's important to save adequate funds to be able to live comfortably through retirement. Read about four families stories throughout different life stages and where they should be at financially. See where you fit and if you are on track to be able to retire with the right financial security.
20s: Just graduated, starting a career, or a family on the way...
Often times college students struggle to save. With so many different college related expenses and student loans, its difficult to put money away. However after graduation and the debt needs to be paid off, people start to think about their futures and what needs to be done to live a financially stable lifestyle. Some are successful, while others continue to struggle. People who just start a career are often using that money to pay past debts so they cant save right away. If one is expecting a family then it is extremely important to have savings in mind.
Budgeting, getting rid of debt and starting an emergency fund with up to three to six months of basic living expenses should be enough to live comfortably at the time. It's important once debt is paid off to not get into debt again, and keep proper funds in a savings account.
People in their 20's should start contributing to a retirement savings plan as well, such as a Roth IRA or if involved in the military you can make contributions to the government's Thrift Savings Plan.
30s: A family, with one child and one on the way, both employed.
People that are expecting a family in the future will usually start to save for a bigger home to live in if needed. This often times cuts into saving for retirement. If involved in the military, which has a pension, it probably wont be enough to cover both incomes. People in their 30's are faced with saving for retirement and their children's education. It's important to think about your child's education but also consider that they might get help through financial aid and scholarships.
In addition to retirement savings, people often choose to keep stock mutual funds as well to help reach long-term saving goals.
At this point in life it's important to make sure a will is in place and your life and disability insurance are updated to protect the people in your family.
40s: Single but two children with one in school.
Divorce is occurring more frequently then ever before, with about half of all Americans going through the process of one. Once people get married, some will agree to have one person be responsible for the finances. If your spouse is involved in the military many will contribute their savings to a Thrift Savings account and if by chance a divorce does occur, it will be split but its still important to have another way of saving money.
It's so important to manage expenses and save for retirement. If you are on your own at the age of 40 expenses are going to be more challenging. Plan to budget around 10-15% of your pre-tax retirement savings and increase your fixed income investment percentage. Be sure to update any estate plans, life insurance policies, and retirement accounts.
50s: Getting closer to retirement, spouse and 3 grown children, and one grand child.
The question people start asking themselves today are, "Am I going to have enough money to retire, or should I start looking for another job?" Today with people living longer, its reasonable to think if taking another job is necessary.
Creating a budget for retirement is extremely important because it will map out if you will have enough money to live off of.
People in there 50's have one of several options. They can continue to work to save more money, reduce the income goal, or increase returns by increasing your risk with a more aggressive portfolio.
Get on track at any age
No matter your age, with time and strategies you can reach your desired retirement goal.
Cut back on expenses.
Consider tax-advantaged savings through the military's Thrift Savings Plan or choose to save in a Roth IRA.
Review your assets annually and make necessary adjustments as time goes on.
Do not take money out of your retirement's savings to borrow.
The road to retirement is challenging but with proper saving and strategies in mind it is possible. Explore your options to find your best choices and you'll be one step closer to reaching your retirement goals.
About the Author:
Find more great articles at a great online source for finance information.
Article Source: http://www.therealarticles.com
College Grants - On the Hunt
This is a very good article on how to hunt for grants for your college education. If your a student looking for information about getting a student loan, you should read this first before you jump off and get a loan. Their are a lot of ways to get free money for college, this is one.
By: Jordan Dunham
There are many different things that can assist you if you are a university student in search of college grant money. The best thing that you can do is apply for as many college grants as you can. Obviously the more you apply for, the greater the chance will be of receiving financial assistance. You could possibly end up with enough college grants to cover all of your tuition fees and even more.
It is vital to apply for college grants from as many different sources as possible. The most common type of college grants are federal grants or those from the colleges themselves but you should also try looking for other organisations and companies that offer grants and apply for those too.
A great source of information for college grants is the financial aid office of the college that you are going to attend. Your local library will also have a wealth of information available. Another source is, of course, the internet. You will find lots of sites offering information on college grants for free. Don't be scammed into paying for a service guaranteeing to secure you college grants as these are not legitimate.
There are so many different types of college grants available that there is sure to be some that you are eligible for, even if you don't think so to begin with. No matter what your financial circumstances are you can still be awarded grants to help pay for textbooks and living expenses. Try looking for specific college grants that match the course you want to take.
You may be surprised at just who offers college grants. Sometimes there are companies and organisations in your home town that would be happy to give financial assistance but a student has never asked. It is worth speaking to business associates of your family and friends about college grants too as they may know other possible sources. There is no harm in asking whether a firm does offer college grants or not - the worst they can say is no.
Every student would love to be given enough money to pay for everything but the reality is that a large number of college grants offered are only for a relatively small proportion of college fees and expenses. Don't ignore these smaller grants. The chances are that the small ones have less competition for them and you could well end up with a lot of seemingly worthless college grants that add up to be a decent amount of money.
It is important to start your search for any available grants as early as you can. That way you can get ahead of the competition and you will also have more time to apply for the maximum number of college grants possible.
About the Author:
Jordan Dunham is an expert on student loans, visit www.students-loan-consolidation.org/ today for details.
Article Source: http://www.therealarticles.com
By: Jordan Dunham
There are many different things that can assist you if you are a university student in search of college grant money. The best thing that you can do is apply for as many college grants as you can. Obviously the more you apply for, the greater the chance will be of receiving financial assistance. You could possibly end up with enough college grants to cover all of your tuition fees and even more.
It is vital to apply for college grants from as many different sources as possible. The most common type of college grants are federal grants or those from the colleges themselves but you should also try looking for other organisations and companies that offer grants and apply for those too.
A great source of information for college grants is the financial aid office of the college that you are going to attend. Your local library will also have a wealth of information available. Another source is, of course, the internet. You will find lots of sites offering information on college grants for free. Don't be scammed into paying for a service guaranteeing to secure you college grants as these are not legitimate.
There are so many different types of college grants available that there is sure to be some that you are eligible for, even if you don't think so to begin with. No matter what your financial circumstances are you can still be awarded grants to help pay for textbooks and living expenses. Try looking for specific college grants that match the course you want to take.
You may be surprised at just who offers college grants. Sometimes there are companies and organisations in your home town that would be happy to give financial assistance but a student has never asked. It is worth speaking to business associates of your family and friends about college grants too as they may know other possible sources. There is no harm in asking whether a firm does offer college grants or not - the worst they can say is no.
Every student would love to be given enough money to pay for everything but the reality is that a large number of college grants offered are only for a relatively small proportion of college fees and expenses. Don't ignore these smaller grants. The chances are that the small ones have less competition for them and you could well end up with a lot of seemingly worthless college grants that add up to be a decent amount of money.
It is important to start your search for any available grants as early as you can. That way you can get ahead of the competition and you will also have more time to apply for the maximum number of college grants possible.
About the Author:
Jordan Dunham is an expert on student loans, visit www.students-loan-consolidation.org/ today for details.
Article Source: http://www.therealarticles.com
Thursday
How Do I Compare Student Loans
All rates are fixed by the government, so all lenders use the same rate. Some lenders tend to sneak in some additional fees, and some lenders do not. Many lenders offer additional deals or incentives to take their loan. This is why I highly suggest shopping around. Shopping around educates you on what your embarking on, and also gets you the best deal.
Where Do I Consolidate my Student Loan
If you have one lender you have to consolidate your loan with that lender. If you have multiple lenders then you can consolidate with another lender.
What to Consider When Getting a Student Loan
Their are many factors to consider to make sure you get the best loan, that fits all your needs. Below is a list of things you need to ask yourself before, making your decision to consolidate your student loan.
1. Do you feel comfortable with the Rates?
2. Do you have trust in the company?
3. Will you have enough time to pay off the loan?
4. Have you looked at all the offers?
5. Do you feel educated about the topic?
6. How do you plan to pay off the loan?
7. Do you know what a FAFSA is?
8. Have I talked to multiple companies?
9. Have I considered my benefits?
10. Have I searched for scholarships?
11. Do I know what I'm getting into?
1. Do you feel comfortable with the Rates?
2. Do you have trust in the company?
3. Will you have enough time to pay off the loan?
4. Have you looked at all the offers?
5. Do you feel educated about the topic?
6. How do you plan to pay off the loan?
7. Do you know what a FAFSA is?
8. Have I talked to multiple companies?
9. Have I considered my benefits?
10. Have I searched for scholarships?
11. Do I know what I'm getting into?
Student Loan Consolidation Steps
1. Talk to a federal lender.
2. Fill out an FAFSA.
3. Compare companies.
4. Compare loans.
5. Find the best loan that fits all your needs.
2. Fill out an FAFSA.
3. Compare companies.
4. Compare loans.
5. Find the best loan that fits all your needs.
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