BAD CREDIT PERSONAL LOANS? WHICH TYPE OF LENDER TO CHOOSE ?

What is a bad credit loan?

Basically, it is a loan with a very low or bad credit score as a result of defaulting on loan payments, showing R9's on your Equifax report, going into collections and ending up in bankruptcy or consumer proposal. These loans are often called "sub-prime" loans and are perceived as high risk and therefore involve higher interest rates.


Can I get a car or personal loan if I have bad credit?

Yes, there are many sub-prime lenders out there who will advance loans for cars, personal loans and mortgages -- but approval will depend on how much you owe and if you are in arrears.

Also, the amount you can loan will depend on your income, job, length of time on job and if you have the collateral of a paid off car or a home with sufficient equity.

The more collateral, the better your chances of getting a loan at better rates.


Is there a difference between bad credit lenders for personal loans?

Yes. Big differences. See below.

Finance companies which offer loans you are required to repay over one year or more (depending on how much you borrow) with fixed monthly payments including both interest and principal. Some allow you to pay off early and therefore pay less interest.

 Some allow you to postpone payments without charge. Some also help repair your credit score by reporting to Equifax. You receive the highest rating if you pay on time. Ask about each company's rates, credit repair services and charges for holding a payment and if you can pay off the loan early.


Pay day loan companies which offer fast, short-term loans from payday to payday which usually must be paid back within two weeks, or occasionally over a month.

These loans are only meant for short term. If you cannot pay back within that time, your interest will quickly grow not only on the principal of the loan but on the unpaid interest.

 Your interest will skyrocket by hundreds and thousands of dollars depending on how long it takes you to repay.
The difficulty of paying off payday loans which go into default often results in taking out a second loan in order to pay off the first.

In the U.S., 76% of payday loans are repeat loans, or loans that are being used to pay off the original.


Credit card cash advances are often used instead of loans. The problem here is that often only the minimum payments are made and while this seems convenient this practice leads to huge interest charges.

 Also, it will take an extraordinary amount of time to repay your loan.You must read your credit card statement carefully to see how long it will take you to pay back what you owe if you only pay back the minimum amount.


For example, if you make only the minimum payment of $40 on a balance or $2000 -- it would take you 30 years and 10 months to pay it all off and you would end up paying $4931 in interest!

The safest bet is to select the right finance company where you are given time to pay off all your interest and principal, open loans you can pay off early, repayment flexibility when there are problems, and an opportunity to improve your credit score.


Since 1984, Prudent Financial Services has offered the best credit repair services and the lowest-cost rates for people with bad credit histories in Toronto and the GTA. We offer fast same day car and personal loans. Also, Prudent Mortage Corp. offers competive mortgage and home equity loans. For more information about PRUDENT FINANCIAL SERVICES, visit our web site: http://www.prudentfinancial.net


Also, visit Prudent Value Cars, our quality pre-owned car dealership where you can get the car you want and the loan you need all on the same day. Visit our showroom inventory at http://www.prudentvaluecars.com.

Applying For a Low Rate Home Loan with Bad Credit

We all make mistakes and some of these mistakes could be financial mistakes that have caused your credit rating to plummet or even forced you into bankruptcy. Now you’re in the position where you need a mortgage so what do you do? Don’t be discouraged, there are lenders who specialize in lending money to people with bad credit histories. Here are some steps to take when you apply for a home loan with bad credit:

Your credit rating – Your credit score can have a serious impact on your mortgage so request your credit report and work through it with a fine tooth comb. Correcting even a single simple mistake on your credit history could potentially save you money when applying for a low rate home loan and make you a better prospect.

Income - It’s important that when you meet with your lender that you demonstrate your efforts in turning over your new leaf. Share what your willingness to make right what you’ve done wrong in the past. You can do this by showing them that all your credit cards and outstanding bills are paid off or carry very low balances. Don’t have applications for new credit as this will make lenders very suspicious about your risk factor. You will need a steady income source so quitting or changing your job is a definite no-no.

Price – It’s very unlikely that a lender will issue a mortgage for a home that you can’t afford. Figure out your debt to income ratio to get an idea of how much you can afford monthly. Remember that interest rates are a factor in your monthly payments and they may rise so consider your options such as locking in your mortgage.

Down payment – The more of a down payment you make, the less of a risk you’ll look in the lenders eye and the greater your chances are of getting approved. Because you have so much invested in the property, you’ll most likely not default on the loan. Factor in the all other fees such as closing costs.

Once you fill out the loan application, be sure to review the terms so there are no surprises later. Always stay on top of your payments and create a great rapport with your lender!

For more valuable information and tips, visit http://www.prudentcreditrepair.ca/

Credit Repair Scams and How to Avoid Them

It seems like every store you set foot in today offers you credit cards. With the opportunity to be able to apply right at the checkout counter and get a new credit card instead of having to buy out of pocket for your purchase, and with promises of easy approval, these cards are certainly tantalizing. But they also carry dangers with them – dangers that can impact areas of your life that you're unlikely to be considering while filling out the simple application for them. In short, retail credit cards can carry some very serious threats behind them.

The Pro’s and Con’s of Credit Cards:

• In most cases, credit cards don't have quite the flexibility or the better terms that some of the best credit cards have.

• Some may have great interest rates, but many have higher than average ones. And if you find yourself in a financial bind, they're usually among the first cards that you decide to skip a payment on.

• Carrying a high balance or missing payments on your credit cards, even retail credit cards, can not only impact your overall credit score and make it more difficult to get a personal loan at a great interest rate, but they can also affect your homeowner's insurance.

How Credit Cards can affect your Homeowner’s Insurance

• Seventy five percent of customers in a recent surveyed had no idea that bad credit could drive up their homeowner's insurance, but it's the truth.

• And since a huge number of people include their homeowner's insurance in their mortgage payments, that means that your monthly mortgage payments may end up being even higher than they should be.

• It's hard to fathom, but the allure of retail credit cards could actually result in you having to pay out a higher mortgage payment and get worse insurance rates on your home and even your vehicle. Because of these, there's been talk of trying to make some changes.

The repercussions you never knew in the Fine Print
There's now talk of filing formal petitions to change this unfair practice. Insurance companies don't have to ask for your permission before checking your credit score due to a simple matter of confusing contract wording. Most never even realize they're paying more for insurance due to their credit score. And since homeowners still paying loans have to have insurance, there is actually very little that they can do once their credit score drops. With inaccuracies in credit reports being fairly common today, and with the shady nature of these insurance rate increases, most agree that the time has come to change this system completely.
For more valuable information, visit www.prudentcreditrepair.ca

6 Month Loans - Quick Amount For the Duration of Six Months

Suppose there is a situation where you cannot wait for money, you have a sudden expense and you

have to fulfill this expense within six month. And you have not enough funds to fulfill your

goals. At that time you will contact your friends and relatives but sometimes all your sources go

fail due to any reason. This time may be very critical for everybody. So there is an option for

you and you can get money very quickly with the help of this fascinating idea. This is 6 month

loans scheme which helps you to get whatever you want.

This 6 month loan scheme is the scheme in which you can get money for six months and that cash

helps you to pay all your expenses on time without any default and penalty. But there may be some

conditions and requirements and you have to fulfill all this. These are as

o You are UK citizen.
o You are of 18 year of age at least.
o You must be currently employed.
o You are getting sufficient salary to repay that money.
o You have a valid bank account instead of saving account.
o You can send all the documents whenever required.

These schemes are very easy to understand; and also the conditions and requirements are very

easy. Sometimes the process of taking finance is very complicated in other finances and tough to

understand. But this scheme is very easy as well as beneficial. The rate of interest is very

affordable. These schemes are easily available on internet. In this fast and advance era,

everybody wants a fast track scheme to do everything. So this scheme is also suit for this kind

of people who generally have no time to spend on the bank formalities. But you should read the

entire document before entering in this scheme and just because of this scheme you can get money

for six month. This helps you to mark your entire task as done.

Winter Emergency Kit

Holiday season excitements often lead us to forget to prepare for winter.

Even though you may believe you are ready to face the winter chills with your scruffs, mitts and snow shovel—you may never know about emergencies! 

So prepare an emergency kit this winter. If you already have one, then it’s time to ensure everything is in order.

Here is a small list of items you should keep on your winter emergency kit.

·         Candles, heavy duty matches and a fire-proof container

·         Bottled water and non-perishable food for family and pets.

·         Water for cooking and other usage needs to be stored separately

·         Can opener and canned food.

·         Sufficient numbers of warm clothes and blankets.

·         Emergency first aid kit- including band-aid, alcohol swabs, pain killers, cottons and so on.

·         Flashlight and spare batteries. Make sure you have at least two flash-lights that are built for heavy duty.

·         Also prepare another kit for vehicle emergency. Vehicle emergency kit should include water-proof blankets, sand, flares, small tool box, rope and shovel.

 

Have a safe winter and enjoy the holiday season!

For helpful information and financial advice visit www.prudentfinancial.net

Prudent Financial Services helping people with bad credit since 1984.

 

Source: Red Cross

Black Friday- a Shopping Frenzy! Is Cross- Border Shopping Worth It or Not?

Like many Canadians, you are going to join the shopping madness on Black Friday in the U.S.

But is the time, energy or money worth it?

Some bargain hunters find Door Crasher sales, Power Prices and great brand selection too alluring not to go.

But some are not so sure. The reasons are lengthy border wait times, crazy impulse purchases and most of all The Crowds!  Also, many Canadian stores are offering deep discounts on top brands and extended shopping hours on special Black Friday.

So when you factor in the costs of gas, the mileage, the time it takes to cross the border, does it all add up to such a bargain?  Tell us what you think!  YES OR NO?

 

Christmas shopping plan without going RED on your budget

If you visited any mall this weekend, then you have already realized the Christmas shopping is in full bloom!

Even though you may feel like bringing everything home that’s on SALE at ridiculous prices that you’ll never see again, it’s time for you to calm down and prepare a list for Christmas shopping.

Check out the prudent way to became one smart shopper this holiday season.

1.       Become tech savvy. A recent article on Moneyville mentioned most buyers will shop online this holiday season. The reason is you can compare, compare and compare! Online shopping will not only save you money but also save you significant time shopping. Compare the prices on websites before hitting the stores. However it’s important to identify what purchases are a ‘catch’ online. Don’t purchase anything that is perishable, or you’re not sure about the size. However, you can never go wrong with gift cards, toys, accessories and home décor.

2.       Use your card rewards. According to recent consumer statistics, every Canadian has at least two reward cards or is involved in loyalty programs. If you hold any reward card, now is the perfect time to utilize as all those points will pay off either now or throughout the year. But make sure your reward program gives you the option to roll over your incentives next year. If you don’t have any reward card use your credit card cash back option. Also check for in-store coupons.

3.       Buy bulk only if you have a big family or planning a big party. Imagine the savings on dry foods, snacks, chocolates and other household items. Some great places to visit are Bulk Barn, Costco. Make sure all bulk items are non-perishable so you can store the left overs to use rest of the year.

4.       Make gift list and stick to it. This is very helpful when you have a strict budget when buying for your friends and family. Make a budget list to know how much you spend for each person. This way you will not end up spending more than you could afford. Here is a sample below-

Name	Gift Idea	Budget

5.       Finally don’t forget to have a great time. We all have certain budget limitations but let’s not stop this from enjoying the holiday season. Merry Christmas!

 For more money saving options this Christmas, visit our Facebook page http://www.facebook.com/prudentfinancial or website http://prudentfinancial.net/.