Cheap Credit--Cheap deals such as pay nothing over 3 months on loans, 0% on balance transfers with credit cards and 110 per cent mortgages will almost certainly become a thing of the past as lenders learn that it is best to get money as soon as possible from customers,.....
Cheap Credit Enters Last Chance Saloon
Yesterday's budget demonstrated one thing, that the economy is no longer awash with money. As a result, loans regardless of what form they take are going to be increasingly hard to find at competitive rates in 2008. The treasury has little money, banks have little money and therefore businesses have little money to invest.
It would appear to be a bad time to apply for a loan, however inter-bank lending in the short term has just gotten a little easier thanks to the central Bank's decision to free up capital by selling off secured loans to add an extra ?99bn to the world economy. This week saw share prices hit their highest peaks of the year and although the budget might appear reactionary in the long-term towards expenditure, it is still a shrewd move as it has helped restore confidence to the markets.
This could be the last chance saloon for favourable rates on borrowing for quite a while. If you own your own home it is still possible to get loans on say ?20,000 at 5.9 per cent fairly easily. This is favourable to rates of around 2-3 years ago, and it is now fair to say that things are not going to be getting much better than this in the future. Personal loans, from supermarket lenders such as Asda or Tesco are still offering deals that require you to pay nothing for the first three months and then a rate of around 6.9 per cent APR upto ?25,000. This can be achieved at an even lower rate if you negotiate with your bank, but be warned, they will be keen to offer lower rates with variable APR packages so they are protected if the worst should happen in the economy.
Julian Jessop, economist at research house Capital Economics said: "The Federal Bank's willingness to pull out all the stops simply underlines the fact that it is unwilling to take any risks with confidence either in the financial system or the US economy, especially with the later almost certainly in recession."
The US is indeed struggling, with all the hallmarks of recession that we have so far avoided. They are seeing a huge rise in housing repossesions and unemployment rates, which means that the Central Bank will not be able to bail out the European Central Bank (ECB) in the future. A report released yesterday by IT consultancy firm Capgemini has predicted that global banks will lose upto 36 per cent of their next income over the next 10 years. Gambling with variable loan rates does not look favourable looking into the crystal ball of most analysts.
In fact, things may never be so good again as tighter regulatory rules mean that lenders will no longer be able to give away money quite as recklessly in the past. Cheap deals such as pay nothing over 3 months on loans, 0% on balance transfers with credit cards and 110 per cent mortgages will almost certainly become a thing of the past as lenders learn that it is best to get money as soon as possible from customers, rather than getting them to pay more in the long term, but finding as they are now, as in the US, that they cannot get the money back. For Brits, this could be the last opportunity to obtain cheap credit.
By Expert Author: Tom Hughes
Article Source: http://www.articlesphere.com/
วันศุกร์ที่ 30 มกราคม พ.ศ. 2552
Information on Credit Reports and Checks
Credit Reports and Checks--The credit check is the favored tool of creditors all round the world, looking to check up on the credit credibility,Many employers also draw up credit report information of their employees before recruiting them, in order to form an idea about them....
Information on Credit Reports and Checks
When you have been refused a loan pointblank, think awhile before blaming the surly creditor. In fact, there are high chances that your creditworthiness is suspect and this is why you have been denied the money. And that “surly” creditor whom you are probably cursing under your breath has run up a credit check on you and come to the decision. It is not that he has some grudge against you.
The credit check is the favored tool of creditors all round the world, looking to check up on the credit credibility, credit score to be precise, of the prospective client before advancing loans to him. After all, the creditor needs to make sure that the money that he is tendering finds its way back to him. And for this he has to make sure that his client has some source of income or some asset with which he can pay back the money.
Now it is not only the banks and the creditors who take recourse to running credit checks on the loan seekers. Property owners also run a background credit check on the credit records of the prospective tenants, just to make sure that they would not make away without clearing their dues. Many employers also draw up credit report information of their employees before recruiting them, in order to form an idea about them.
There are many people who have credit checks done by credit-rating agencies on their own credit resources. These are probably people who have had an unpleasant experience with bad or low credit and are determined not to let history repeat itself. That is why they keep a watchful eye on their credit condition so that they can take immediate action if they find themselves loosening their purse strings too much or too frequently. This credit check is actually their form of reality check.
There’s also a breed of prudent people who would however like to keep a track on their credit resources at all times.
Now, if you are thinking of applying for a loan you need to keep in mind that the credit score that you rake up will determine whether you are deemed eligible for a loan. To elaborate, in USA, the FICO (Fair Issac Corporation) standard is used to measure the credit score. According to this parameter, your credit score can range between 300-850. While 750 is quite good, anything below 600 and you can start looking for alternative sources.
It is understood that people, the loan hunters to be precise, are quite in awe of credit checks. On the other hand, there is quite a misconception about the way in which the credit score is determined. It is usually believed that a sizeable bank balance will guarantee a healthy credit score. But the crux of the matter is that this credit score is based on sundry factors like timeliness of payments in the past, the duration of the credit history, the kinds of credits used, capacity used (the ratio of the present revolving debt to the available revolving credit) and the size and types of the latest debts.
A credit check is a way of comprehensively determining your financial position, so that creditors can lend you money with a light heart or you yourself take heart in the fact that you are not doing too bad on money matters.
By Expert Author: Carol Thompson
Article Source: http://www.articlesphere.com/
Information on Credit Reports and Checks
When you have been refused a loan pointblank, think awhile before blaming the surly creditor. In fact, there are high chances that your creditworthiness is suspect and this is why you have been denied the money. And that “surly” creditor whom you are probably cursing under your breath has run up a credit check on you and come to the decision. It is not that he has some grudge against you.
The credit check is the favored tool of creditors all round the world, looking to check up on the credit credibility, credit score to be precise, of the prospective client before advancing loans to him. After all, the creditor needs to make sure that the money that he is tendering finds its way back to him. And for this he has to make sure that his client has some source of income or some asset with which he can pay back the money.
Now it is not only the banks and the creditors who take recourse to running credit checks on the loan seekers. Property owners also run a background credit check on the credit records of the prospective tenants, just to make sure that they would not make away without clearing their dues. Many employers also draw up credit report information of their employees before recruiting them, in order to form an idea about them.
There are many people who have credit checks done by credit-rating agencies on their own credit resources. These are probably people who have had an unpleasant experience with bad or low credit and are determined not to let history repeat itself. That is why they keep a watchful eye on their credit condition so that they can take immediate action if they find themselves loosening their purse strings too much or too frequently. This credit check is actually their form of reality check.
There’s also a breed of prudent people who would however like to keep a track on their credit resources at all times.
Now, if you are thinking of applying for a loan you need to keep in mind that the credit score that you rake up will determine whether you are deemed eligible for a loan. To elaborate, in USA, the FICO (Fair Issac Corporation) standard is used to measure the credit score. According to this parameter, your credit score can range between 300-850. While 750 is quite good, anything below 600 and you can start looking for alternative sources.
It is understood that people, the loan hunters to be precise, are quite in awe of credit checks. On the other hand, there is quite a misconception about the way in which the credit score is determined. It is usually believed that a sizeable bank balance will guarantee a healthy credit score. But the crux of the matter is that this credit score is based on sundry factors like timeliness of payments in the past, the duration of the credit history, the kinds of credits used, capacity used (the ratio of the present revolving debt to the available revolving credit) and the size and types of the latest debts.
A credit check is a way of comprehensively determining your financial position, so that creditors can lend you money with a light heart or you yourself take heart in the fact that you are not doing too bad on money matters.
By Expert Author: Carol Thompson
Article Source: http://www.articlesphere.com/
Credit Harder To Get And Less In Demand
Credit Harder--The latest Credit Conditions Survey released by the Bank have shown a number of lenders are becoming stricter about who they will give credit to.....
A new Bank of England report has shown that the availability of loans and other types of credit are set to greatly diminish in 2008. The latest Credit Conditions Survey released by the Bank have shown a number of lenders are becoming stricter about who they will give credit to.
The credit crunch has had a serious effect on lender’s faith in consumers, checks have become more vigorous and lending criteria much tighter. Lenders do not want to lend to high risk individuals and at this tight time in the market at taking all necessary steps to ensure they do not.
With mortgages and other loans harder to get hold of, alongside an increase in monthly repayments, the cost of having a home may be affecting consumer’s abilities to meet other payments such as secured loans and credit cards. With mortgage payments increasing as many people come to the end of fixed rate deals, and are hit by increased interest rates, they will struggle to meet other financial demands.
According to the Bank of England 31.2% of lenders has noted a fall in the availability of secured loans in the last four months of last year. 25.3% think that access to credit such as this is going to become steadily more difficult over the next few months. The accessibility to unsecured credit dropped 13.6% from October – December 2007 and 7% believe this will worsen in the near future. This could mean that the popularity of secured loans will grow as lenders are prepared to lend against the security of property.
The people who will face the biggest difficulties getting credit is going to be those who have a bad credit rating, impaired financial history or who taken out a bad credit loan. The Bank of England said that 32% of providers have tightened their credit scoring criteria over the past few months, making it much harder to be approved if you have any strikes against your name.
“This survey corroborates other evidence of worsening market sentiment. This may increase the chances of interest rate cuts sooner rather than later if inflation remains subdued. Borrowers should make a new year resolution to review their finances and plan ahead if they are coming off fixed rate deals later this year,” remarked Bob Rannell, head of research for the Council of Mortgage Lenders (CML).
The CML also stated that regardless of the previous demands for secured loans, the fact that people have been tightly scrutinised before being lent to means that the demand for credit is set to fall sharply. It was also claimed that a larger balance of lenders believe house price expectations will have a serious impact on borrowing over the first quarter of 2008. If less people are looking for secured loans it will not only be the brokers and advisers who are affected but also the secured loan leads companies.
Some lenders would advise anyone concerned about managing their money and the availability of credit should apply for a secured loan or credit sooner rather than later. Moneyextra conducted research that showed that during the 12 months leading up to November 2007, average house owners who are looking to remortgage their property have seen values increase by 8.6%.
Robin Amlot, Moneyextra’s senior editor said: “The sharp rise in property values of those remortgaging may be an indicator of how the credit crunch is extending beyond the traditionally vulnerable sectors of society.” He also stated that mortgage prospects for this year appear “grim”, applying for a secured loan now could help money management over the coming months.
By Expert Author: Jemma Tipping
Article Source: http://www.articlesphere.com/
Credit Harder To Get And Less In Demand
A new Bank of England report has shown that the availability of loans and other types of credit are set to greatly diminish in 2008. The latest Credit Conditions Survey released by the Bank have shown a number of lenders are becoming stricter about who they will give credit to.
The credit crunch has had a serious effect on lender’s faith in consumers, checks have become more vigorous and lending criteria much tighter. Lenders do not want to lend to high risk individuals and at this tight time in the market at taking all necessary steps to ensure they do not.
With mortgages and other loans harder to get hold of, alongside an increase in monthly repayments, the cost of having a home may be affecting consumer’s abilities to meet other payments such as secured loans and credit cards. With mortgage payments increasing as many people come to the end of fixed rate deals, and are hit by increased interest rates, they will struggle to meet other financial demands.
According to the Bank of England 31.2% of lenders has noted a fall in the availability of secured loans in the last four months of last year. 25.3% think that access to credit such as this is going to become steadily more difficult over the next few months. The accessibility to unsecured credit dropped 13.6% from October – December 2007 and 7% believe this will worsen in the near future. This could mean that the popularity of secured loans will grow as lenders are prepared to lend against the security of property.
The people who will face the biggest difficulties getting credit is going to be those who have a bad credit rating, impaired financial history or who taken out a bad credit loan. The Bank of England said that 32% of providers have tightened their credit scoring criteria over the past few months, making it much harder to be approved if you have any strikes against your name.
“This survey corroborates other evidence of worsening market sentiment. This may increase the chances of interest rate cuts sooner rather than later if inflation remains subdued. Borrowers should make a new year resolution to review their finances and plan ahead if they are coming off fixed rate deals later this year,” remarked Bob Rannell, head of research for the Council of Mortgage Lenders (CML).
The CML also stated that regardless of the previous demands for secured loans, the fact that people have been tightly scrutinised before being lent to means that the demand for credit is set to fall sharply. It was also claimed that a larger balance of lenders believe house price expectations will have a serious impact on borrowing over the first quarter of 2008. If less people are looking for secured loans it will not only be the brokers and advisers who are affected but also the secured loan leads companies.
Some lenders would advise anyone concerned about managing their money and the availability of credit should apply for a secured loan or credit sooner rather than later. Moneyextra conducted research that showed that during the 12 months leading up to November 2007, average house owners who are looking to remortgage their property have seen values increase by 8.6%.
Robin Amlot, Moneyextra’s senior editor said: “The sharp rise in property values of those remortgaging may be an indicator of how the credit crunch is extending beyond the traditionally vulnerable sectors of society.” He also stated that mortgage prospects for this year appear “grim”, applying for a secured loan now could help money management over the coming months.
By Expert Author: Jemma Tipping
Article Source: http://www.articlesphere.com/
Bad Credit Lenders: Purchase your Home even with Bad Credit
Bad Credit Lenders: The bad credit or credit impaired home purchase loan is available to those persons who either have bad credit or no credit, but are looking to purchase a home....
Bad Credit Lenders: Purchase your Home even with Bad Credit
Bad credit loans are available to people from all walks of life who find themselves in financial straits. There are a number of different types of bad credit loans that are available for all sorts of needs and purposes, for people with bad credit who are unable to get traditional loans.
If you are looking to remodel or add on to your home because of an increasing family or you find yourself needing more room but have bad credit, you can still obtain a bad credit loan specifically for your needs. The credit impaired home renovation loan is available just for this purpose, where someone with bad credit is looking to renovate or remodel their home.
The bad credit or credit impaired home purchase loan is available to those persons who either have bad credit or no credit, but are looking to purchase a home. This bad credit loan helps to ensure that anyone can afford to follow their dream of owning a home, regardless of credit history.
Another bad credit loan that is available is the low or no documentation loan. This loan is available to the self-employed or small business owner who is unable to provide enough documents proving income to secure a traditional loan. This bad credit loan type only requires that you be able to show your earnings in order to qualify.
The bad credit or credit impaired refinancing loan is available to those people that are trying to apply for a home loan in order to replace an existing loan and use the same assets as security. This bad credit loan is available even if you have defaults, mortgage arrears or judgments. By obtaining a bad credit refinancing loan you will be able to lower monthly payments, consolidate bills may also be able to take advantage of lower interest rates. This is also a good way to get creditors to stop bothering you.
Bad credit loans are available for those who are in financial difficulties and are unable to obtain traditional loans because of it. These bad credit loans are available in several forms in order to meet and fulfill the many different needs of those who are getting them, be it for home renovations or purchasing a new home. Just because a bad credit loan may require a larger deposit or have a higher interest rate, shouldn’t deter you from applying for one if you need it.
By Expert Author: Zack Fair
Article Source: http://www.articlesphere.com/
Bad Credit Lenders: Purchase your Home even with Bad Credit
Bad credit loans are available to people from all walks of life who find themselves in financial straits. There are a number of different types of bad credit loans that are available for all sorts of needs and purposes, for people with bad credit who are unable to get traditional loans.
If you are looking to remodel or add on to your home because of an increasing family or you find yourself needing more room but have bad credit, you can still obtain a bad credit loan specifically for your needs. The credit impaired home renovation loan is available just for this purpose, where someone with bad credit is looking to renovate or remodel their home.
The bad credit or credit impaired home purchase loan is available to those persons who either have bad credit or no credit, but are looking to purchase a home. This bad credit loan helps to ensure that anyone can afford to follow their dream of owning a home, regardless of credit history.
Another bad credit loan that is available is the low or no documentation loan. This loan is available to the self-employed or small business owner who is unable to provide enough documents proving income to secure a traditional loan. This bad credit loan type only requires that you be able to show your earnings in order to qualify.
The bad credit or credit impaired refinancing loan is available to those people that are trying to apply for a home loan in order to replace an existing loan and use the same assets as security. This bad credit loan is available even if you have defaults, mortgage arrears or judgments. By obtaining a bad credit refinancing loan you will be able to lower monthly payments, consolidate bills may also be able to take advantage of lower interest rates. This is also a good way to get creditors to stop bothering you.
Bad credit loans are available for those who are in financial difficulties and are unable to obtain traditional loans because of it. These bad credit loans are available in several forms in order to meet and fulfill the many different needs of those who are getting them, be it for home renovations or purchasing a new home. Just because a bad credit loan may require a larger deposit or have a higher interest rate, shouldn’t deter you from applying for one if you need it.
By Expert Author: Zack Fair
Article Source: http://www.articlesphere.com/
Give Me Credit - Britain Loves To Borrow
Give Me Credit--With the global credit crunch looming, a number of providers are withdrawing their credit card offers, and some customers...
Give Me Credit - Britain Loves To Borrow
Along with the rise of the internet, with many websites only accepting credit cards as a form of payment, they have become an integral part of many Britons’ lifestyles. New research by market analyst Datamonitor has cast light on just how far in love Britain is with the cards: people living in the UK are twice as likely to own a card than in any country in Western Europe.
The survey has held up long-maintained beliefs that Britain is a country in love with credit. Second-place Norway had just 0.7 cards average per person – Britain had a massive 1.4. In contrast to this, the other end of the scale has Germany having only 1 in 16 cards using the credit system, whilst the Swedes, the Danes and the French have 1 in 10.
The figures make for disturbing reading. Is it a different attitude towards debt in the UK that keeps Britons borrowing, or is it the more prevalent availability of enticing credit card offers, like the commonplace 0% balance transfers? Probably a combination of the two, thinks the author of the report Andrew Fabricius: "The high penetration of credit cards in the UK is due to consumers being happy to pay for goods and services by using credit and enjoy the flexibility of paying for purchases over a longer period of time."
By contrast, consumers in Germany were much more careful about going into debt and thus didn’t felt that the money must be earned before the purchase is made, not the other way round. The UK even has the most amount of payment cards – including debit cards – in their wallets, an average of 2.8. Compare this to second place Norway, with 2.3, and France which has just one. This statistic is particularly daunting for the people with fiscal control over Britain – are we just a nation in love with spending?
The consequences for would-be identity thieves with such a large amount of potential material on their hands are also a factor. Gangs – often technologically advanced and highly astute – target the UK in particular because they realise the high bounty that can be reaped in the card-heavy country. Only recently, one group of criminal installed a camera above a cash point, thus obtaining the PIN number for a number of credit cards. Money was taken from the account without the cardholder knowing – a nightmare scenario for anyone.
With the global credit crunch looming, a number of providers are withdrawing their credit card offers, and some customers – notably Egg - who’ve been loyal and capable users of credit cards have suddenly found their plastic withdrawn. Though this might seem a rash step for the banks to take, it might be just what Britain needs to knock us out of this credit-induced stupor and get back to the real world.
By Expert Author: Jack Harris
Article Source: http://www.articlesphere.com/
Give Me Credit - Britain Loves To Borrow
Along with the rise of the internet, with many websites only accepting credit cards as a form of payment, they have become an integral part of many Britons’ lifestyles. New research by market analyst Datamonitor has cast light on just how far in love Britain is with the cards: people living in the UK are twice as likely to own a card than in any country in Western Europe.
The survey has held up long-maintained beliefs that Britain is a country in love with credit. Second-place Norway had just 0.7 cards average per person – Britain had a massive 1.4. In contrast to this, the other end of the scale has Germany having only 1 in 16 cards using the credit system, whilst the Swedes, the Danes and the French have 1 in 10.
The figures make for disturbing reading. Is it a different attitude towards debt in the UK that keeps Britons borrowing, or is it the more prevalent availability of enticing credit card offers, like the commonplace 0% balance transfers? Probably a combination of the two, thinks the author of the report Andrew Fabricius: "The high penetration of credit cards in the UK is due to consumers being happy to pay for goods and services by using credit and enjoy the flexibility of paying for purchases over a longer period of time."
By contrast, consumers in Germany were much more careful about going into debt and thus didn’t felt that the money must be earned before the purchase is made, not the other way round. The UK even has the most amount of payment cards – including debit cards – in their wallets, an average of 2.8. Compare this to second place Norway, with 2.3, and France which has just one. This statistic is particularly daunting for the people with fiscal control over Britain – are we just a nation in love with spending?
The consequences for would-be identity thieves with such a large amount of potential material on their hands are also a factor. Gangs – often technologically advanced and highly astute – target the UK in particular because they realise the high bounty that can be reaped in the card-heavy country. Only recently, one group of criminal installed a camera above a cash point, thus obtaining the PIN number for a number of credit cards. Money was taken from the account without the cardholder knowing – a nightmare scenario for anyone.
With the global credit crunch looming, a number of providers are withdrawing their credit card offers, and some customers – notably Egg - who’ve been loyal and capable users of credit cards have suddenly found their plastic withdrawn. Though this might seem a rash step for the banks to take, it might be just what Britain needs to knock us out of this credit-induced stupor and get back to the real world.
By Expert Author: Jack Harris
Article Source: http://www.articlesphere.com/
Taking Control of Your Credit
Taking Control of Your Credit***Having a good credit history in today’s economy is vital. Banks have made it harder than ever before to qualify and purchase a home.....
You’ve found the house of your dreams, made an offer and now it’s time to head on down to the bank. What goes on in that visit will determine if you’re able to make your dream become a reality. If so, at what price will it cost you?
Having a good credit history in today’s economy is vital. Banks have made it harder than ever before to qualify and purchase a home. Ensuring your credit rating is on the right path will open numerous financial doors for you and your family.
The ideal situation would be to not wait until you are sitting in the banker’s chair with your palms sweating. Get online and look at your credit score before hand. See if there is anything that needs your attention. Unpaid bills, late payments, high credit card balances can all contribute in dragging that credit score down. This can result in higher interest rates for your loan, or ultimately getting no loan at all. Make the calls necessary to get your score cleared up and back on track.
There are 3 major reporting agencies that financial institutions will pull from. Experian, TransUnion, and Equifax can all result in different readings. That’s why it is crucial to check each one of them for discrepancies. You are entitled to a credit reading each year at no cost. Even so, shelling out $15 for a credit reading is a small price to pay when it comes to buying a home. Do whatever it takes to make sure you are the driver behind the wheel of your credit.
After you’ve exhausted all your resources for bringing up your credit score, you can confidently walk into the bank. You now are fully aware of your financial situation and have done everything possible to secure good standing. Sure it may take a little work on your part, but keep in mind by doing so you are building a bridge that will lead to your new home.
By Expert Author: David Kent
Article Source: http://www.articlesphere.com/
Taking Control of Your Credit
You’ve found the house of your dreams, made an offer and now it’s time to head on down to the bank. What goes on in that visit will determine if you’re able to make your dream become a reality. If so, at what price will it cost you?
Having a good credit history in today’s economy is vital. Banks have made it harder than ever before to qualify and purchase a home. Ensuring your credit rating is on the right path will open numerous financial doors for you and your family.
The ideal situation would be to not wait until you are sitting in the banker’s chair with your palms sweating. Get online and look at your credit score before hand. See if there is anything that needs your attention. Unpaid bills, late payments, high credit card balances can all contribute in dragging that credit score down. This can result in higher interest rates for your loan, or ultimately getting no loan at all. Make the calls necessary to get your score cleared up and back on track.
There are 3 major reporting agencies that financial institutions will pull from. Experian, TransUnion, and Equifax can all result in different readings. That’s why it is crucial to check each one of them for discrepancies. You are entitled to a credit reading each year at no cost. Even so, shelling out $15 for a credit reading is a small price to pay when it comes to buying a home. Do whatever it takes to make sure you are the driver behind the wheel of your credit.
After you’ve exhausted all your resources for bringing up your credit score, you can confidently walk into the bank. You now are fully aware of your financial situation and have done everything possible to secure good standing. Sure it may take a little work on your part, but keep in mind by doing so you are building a bridge that will lead to your new home.
By Expert Author: David Kent
Article Source: http://www.articlesphere.com/
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