Debt consolidation is a good way to get debt under control and it is not only for former students with many student loans. Military personnel with a number of pesky debts can get them all rolled into one. Having a lot of little loans, or even a few large ones, can be a monthly debt management nightmare.
Risky Nightmare
You have multiple payments, all due on different days with different amounts, and all with different interest rates. What a bother! Every month you risk getting a late fee tacked on, or missing a payment completely. Money management is so much easier and far less risky if you have one payment to one lender with a military bad credit debt consolidation loan. And your monthly payment will probably be a lot less than the sum paid on all your former debt.
Credit Correction
Other good things can come from loan consolidation. It produces an immediate upward movement for your credit scores. Instead of having multiple lenders, you have just one. That is a lot nicer looking to credit checkers. Also, if you do automatic payments to that single account, you lose the risk of being charged late fees or missing any payments. That provides another boost to your credit scores.
Many Lenders
Traditional lenders such as banks and credit unions have tightened up their lending practices since the big bust at the end of the last decade. Many folks with bad credit cannot get loans. Even borrowers with good credit have trouble landing a loan. Seeing a growing market, private lenders have stepped in and now there are many lenders willing to extend military bad credit consolidation loans. Most of these lenders have set up shop on the internet, making shopping for a loan much easier for the borrower. Just punch your web browser with this key phrase: bad credit military consolidation loan. You will be immediately shown a large number of lenders willing to give military members loans.
Easy Application
Online credit applications are easy to fill out and approval can be had within 24 hours, sometimes sooner. Be sure you have all your documentation handy. You will need bona fide government identification, a checking account with direct deposit, proof of service and salary, and proof of residency. Just be sure the site where you divulge your personal and financial information is secure and be sure to check the reputation of your lender. The online Better Business Bureau listings would be a good place to start.
Soldiers and Sailors Relief Act
Even if service members have bad credit, the Soldiers and Sailors Relief Act dictates that they are allowed lower interest rates on personal loans for debt relief. The amount of reduction can be as much as six percent off the original interest of the loan. This act was made into law because of the essential service military men and women make to the nation. Lenders must comply. You will also find lenders who specialize in making loans to military personnel so there is no confusion over interest rates.
You Deserve It
Your military service should allow you to get a decent bad credit military debt consolidation loan. Take advantage of it to get a handle on your debt and be debt free in the shortest time possible.
Showing posts with label Facts. Show all posts
Showing posts with label Facts. Show all posts
Wednesday, July 4, 2012
Tuesday, May 29, 2012
The Facts About Bankruptcy Dismissal
Bankruptcy provides an opportunity for someone experiencing financial hardship relief from overwhelming debt. By filing for bankruptcy a debtor can petition to have their debts expunged through a Chapter 7 bankruptcy or develop a debt repayment plan that outlines more financially favorable terms in a Chapter 13 bankruptcy. Filing a bankruptcy petition serves to protect debtor from negative consequences associated with defaulted payments on debts. By the time you have defaulted on payments to creditors, your credit standing has been negatively impacted. Although filing for bankruptcy will be reported to credit agencies, it does afford an opportunity to begin repairing your credit as soon as you receive a discharge of your debt. However, not everyone filing for bankruptcy will receive a debt discharge, but instead may have their petition denied in a bankruptcy dismissal.
Voluntary Dismissals
If you filed for a Chapter 13 bankruptcy, you may voluntarily request a bankruptcy dismissal. Typically, a dismissal is only voluntarily requested if they courts notify the debtor that their debts are not dischargeable through bankruptcy. You may also request a dismissal if you secured enough income to repay your debts without the aid of bankruptcy. In a Chapter 7 bankruptcy, there is little freedom to request a dismissal. Once a bankruptcy petition is filed in a Chapter 7 bankruptcy, the court must approve a voluntary dismissal.
Involuntary Dismissals
Most often, someone receiving a bankruptcy dismissal is the decision of the bankruptcy court. The court will dismiss your bankruptcy case if you failed to follow the court order or pay the necessary fees. Bankruptcy laws require anyone filing for bankruptcy to complete a credit counseling course, failure to complete this course can lead to the dismissal of your case. Another reason your case may be dismissed if you have not filed a tax return over the four years preceding your bankruptcy petition. Also, your bankruptcy case is likely to be dismissed if you fail to make the necessary payments outlined in your Chapter 13 plan without requesting a voluntary dismissal.
Consequences of a Bankruptcy Dismissal
Dismissal can lead to negative consequences for the debtor, resulting in more problems than prior to filing for bankruptcy. Once a case is dismissed, you will no longer be protected from collection efforts by creditors. You will be responsible for managing their debt payments to creditors without assistance from bankruptcy provisions. Dismissal from bankruptcy also means you are no longer protected from further damage to your credit standing. The Fair Credit Reporting Act regulates credit reporting practices and allows a bankruptcy filing to remain on your credit report for up to 10 years. There is no guarantee the bankruptcy filing will remain on your report for that duration. You should be aware that even if you do not complete the bankruptcy proceeding, by receiving a dismissal, your credit report will reflect a bankruptcy. Receiving a bankruptcy dismissal can also lead to complications with future bankruptcy filings. Any disregard for court orders will prohibit you from filing for at least 180 days. However, you may be able to reinstate your bankruptcy if you received an involuntary dismissal due to failure to meet paperwork or fee requirements. Dismissals also affect your protection from creditors through an automatic stay, which prevents creditors from making collection attempts. If your bankruptcy case was dismissed within the last year, you are allowed only 30 days of protection from creditors with an automatic stay.
To protect your bankruptcy petition from being dismissed, contact a qualified bankruptcy attorney to assist you through the process. Your attorney will make sure you qualify for bankruptcy, help you complete and file all the necessary paperwork and even make payments on your behalf. It is important you are up front and truthful about your financial hardship and any assets you own. Hiding important information can lead to bankruptcy fraud, which carries serious legal consequences.
Voluntary Dismissals
If you filed for a Chapter 13 bankruptcy, you may voluntarily request a bankruptcy dismissal. Typically, a dismissal is only voluntarily requested if they courts notify the debtor that their debts are not dischargeable through bankruptcy. You may also request a dismissal if you secured enough income to repay your debts without the aid of bankruptcy. In a Chapter 7 bankruptcy, there is little freedom to request a dismissal. Once a bankruptcy petition is filed in a Chapter 7 bankruptcy, the court must approve a voluntary dismissal.
Involuntary Dismissals
Most often, someone receiving a bankruptcy dismissal is the decision of the bankruptcy court. The court will dismiss your bankruptcy case if you failed to follow the court order or pay the necessary fees. Bankruptcy laws require anyone filing for bankruptcy to complete a credit counseling course, failure to complete this course can lead to the dismissal of your case. Another reason your case may be dismissed if you have not filed a tax return over the four years preceding your bankruptcy petition. Also, your bankruptcy case is likely to be dismissed if you fail to make the necessary payments outlined in your Chapter 13 plan without requesting a voluntary dismissal.
Consequences of a Bankruptcy Dismissal
Dismissal can lead to negative consequences for the debtor, resulting in more problems than prior to filing for bankruptcy. Once a case is dismissed, you will no longer be protected from collection efforts by creditors. You will be responsible for managing their debt payments to creditors without assistance from bankruptcy provisions. Dismissal from bankruptcy also means you are no longer protected from further damage to your credit standing. The Fair Credit Reporting Act regulates credit reporting practices and allows a bankruptcy filing to remain on your credit report for up to 10 years. There is no guarantee the bankruptcy filing will remain on your report for that duration. You should be aware that even if you do not complete the bankruptcy proceeding, by receiving a dismissal, your credit report will reflect a bankruptcy. Receiving a bankruptcy dismissal can also lead to complications with future bankruptcy filings. Any disregard for court orders will prohibit you from filing for at least 180 days. However, you may be able to reinstate your bankruptcy if you received an involuntary dismissal due to failure to meet paperwork or fee requirements. Dismissals also affect your protection from creditors through an automatic stay, which prevents creditors from making collection attempts. If your bankruptcy case was dismissed within the last year, you are allowed only 30 days of protection from creditors with an automatic stay.
To protect your bankruptcy petition from being dismissed, contact a qualified bankruptcy attorney to assist you through the process. Your attorney will make sure you qualify for bankruptcy, help you complete and file all the necessary paperwork and even make payments on your behalf. It is important you are up front and truthful about your financial hardship and any assets you own. Hiding important information can lead to bankruptcy fraud, which carries serious legal consequences.
Monday, May 21, 2012
Va Home Loan With Bad Credit: Facts To Consider
Military veterans face the same financial challenges as the rest of us, especially when it comes to buying a home. But thanks to the Department of Veteran Affairs (the VA), they have been given a clear advantage that can help them buy the property they want, even with a poor credit history. Getting a VA home loan with bad credit is made simple.
Mortgage providers do not grant loans to just anyone, and there are plenty of stringent rules that work against veterans. As former military members, they earned a good but not large income, so the ability to buy a home is limited. Approval despite bad credit might seem unlikely, but through the VA, a mortgage is made much more affordable.
Of course, the VA does not issue mortgages, but simply underwrites them, guaranteeing 25% of the total sum borrowed. That is enough to make the difference necessary, making a VA home loan the mortgage of choice for veterans and their families.
Qualifying for VA Assistance
There is an idea that, when seeking a VA home loan with bad credit, simply being a former member of the armed forces, home guard or coast guard is enough to ensure qualification. But this not actually the case. There are criteria to meet, and rules that need to be adhered to.
For example, applicants will not succeed if they have defaulted on a loan recently, or if they have been ruled bankrupt at any time in the previous two years. The reason is that to gain approval despite bad credit, the lender needs to be satisfied the risk is minimal. And the lenders are not the VA.
However there are conditions to these rules too. With bankruptcy, for example, if it was brought on by circumstances beyond your control, then the wait to qualify is reduced to just one year. And if bankruptcy involved repaying some of the debts, then it is possible to apply for a VA home loan immediately.
The Role of the Credit Score
As with any kind of loan, improving the credit score helps the applicant greatly in securing a VA home loan with bad credit. There are ways to improve the score, with small personal loans useful in clearing individual outstanding debts. However, when bankruptcy was a feature in the past, there are other measures to take.
When confirmation of a bankruptcy discharge is received, it is a good idea to send a copy to the credit rating agencies. With this information, they will adjust the credit score upwards. Gaining approval despite bad credit is made easier when the term of bankruptcy is over.
Restoring the credit rating can also be done by opening up two secured credit card accounts, with modest balances (perhaps 0 each) allowing the borrower a chance to rebuild their credit score. And as the score improves, the chances of getting a bigger VA home loan increases.
Getting Secured Credit Cards
A great advantage with getting secured credit cards before applying for a VA home loan with bad credit is that credit scores can be improved in advance. Online lenders are easy to find on the Internet, and their secured credit cards are highly competitive in their terms.
Of course, the fact that secured credit cards are backed up by a deposit lowers the interest that is charged on them, but they present the opportunity to rebuild the credit reputation of the cardholder too. This improves the chances of getting approval despite bad credit.
But it is also worth remembering that the terms of a VA home loan ensure that the repayments are made more affordable. By guaranteeing 25% of the mortgage borrowed, the risk is 75% of the sum, thereby lowering interest and keeping repayments down. With an improved credit score, the savings can be even greater.
Mortgage providers do not grant loans to just anyone, and there are plenty of stringent rules that work against veterans. As former military members, they earned a good but not large income, so the ability to buy a home is limited. Approval despite bad credit might seem unlikely, but through the VA, a mortgage is made much more affordable.
Of course, the VA does not issue mortgages, but simply underwrites them, guaranteeing 25% of the total sum borrowed. That is enough to make the difference necessary, making a VA home loan the mortgage of choice for veterans and their families.
Qualifying for VA Assistance
There is an idea that, when seeking a VA home loan with bad credit, simply being a former member of the armed forces, home guard or coast guard is enough to ensure qualification. But this not actually the case. There are criteria to meet, and rules that need to be adhered to.
For example, applicants will not succeed if they have defaulted on a loan recently, or if they have been ruled bankrupt at any time in the previous two years. The reason is that to gain approval despite bad credit, the lender needs to be satisfied the risk is minimal. And the lenders are not the VA.
However there are conditions to these rules too. With bankruptcy, for example, if it was brought on by circumstances beyond your control, then the wait to qualify is reduced to just one year. And if bankruptcy involved repaying some of the debts, then it is possible to apply for a VA home loan immediately.
The Role of the Credit Score
As with any kind of loan, improving the credit score helps the applicant greatly in securing a VA home loan with bad credit. There are ways to improve the score, with small personal loans useful in clearing individual outstanding debts. However, when bankruptcy was a feature in the past, there are other measures to take.
When confirmation of a bankruptcy discharge is received, it is a good idea to send a copy to the credit rating agencies. With this information, they will adjust the credit score upwards. Gaining approval despite bad credit is made easier when the term of bankruptcy is over.
Restoring the credit rating can also be done by opening up two secured credit card accounts, with modest balances (perhaps 0 each) allowing the borrower a chance to rebuild their credit score. And as the score improves, the chances of getting a bigger VA home loan increases.
Getting Secured Credit Cards
A great advantage with getting secured credit cards before applying for a VA home loan with bad credit is that credit scores can be improved in advance. Online lenders are easy to find on the Internet, and their secured credit cards are highly competitive in their terms.
Of course, the fact that secured credit cards are backed up by a deposit lowers the interest that is charged on them, but they present the opportunity to rebuild the credit reputation of the cardholder too. This improves the chances of getting approval despite bad credit.
But it is also worth remembering that the terms of a VA home loan ensure that the repayments are made more affordable. By guaranteeing 25% of the mortgage borrowed, the risk is 75% of the sum, thereby lowering interest and keeping repayments down. With an improved credit score, the savings can be even greater.
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