Highlights of Credit and Finance

Financial Assistance

How Long Does It Take to Fix Bad Credit?

When one desires to fix their bad credit, it is important that they understand that this is a process that usually takes time. It could actually be likened to losing weight which takes some considerable time depending on how efficient the weight loss efforts you put in place. There is no short cut or fast way of fixing your credit score and such advice is better avoided as it could backfire on you.

How Long Does it Take?
The amount of time that rebuilding your credit history will take depends fully on the reasons that caused you to be in this situation in the first place. Most of the negative changes that cause this change in your credit score is the addition of a negative element in your credit score. An example of a negative element is a collection account or a delinquency. Other factors include your credit history length, payment history and debt amount you got on your credit report. These are some elements that affect your credit score until the time they reach a particular age. Delinquencies usually remain on your individual credit report for a period of up to 7 years. Unpaid tax liens and some form of bankruptcies can remain on your credit report for 10 years. Inquiries on your own credit report could remain for two years.

In order to ensure that the length of time that it will take to fix your credit score is shorter, there are several tips that you could follow. It would be important to ensure that on your credit report there shall be no further negative information reported. The more the negative information you get, the longer it will take for you to fix it. Making payments on time could be helpful as well as minimizing debts that are outstanding. Another important step would be to make sure that you do not overextend yourself and also avoid applying for credit unnecessarily.

Financing With Bad Credit

Bad credit can dictate doom to borrowers. Keep in mind that lenders have to develop a level of trust by seeing a good credit record. However, all is not lost for people with bad credit as there are still ways of getting loans even with poor credit. If you have poor credit you can use these financing methods as you try to build you credit record. The following are methods of getting finances with poor credit:

Get a quick payday loan online through trusted websites, such as They are also referred to as cash in advance. Payday loans are mostly given to salaried persons or people with a constant flow of income. Credit worthiness is not much considered when giving these types of loans because money is directly deducted from the salary before it reaches the borrower. The credit given by payday loans is however limited compared to other types of loans, and the fees associated with this type of loan might be higher than usual.

Apply for a loan using the equity on your home. This type of financing requires a lot of discipline because you don’t want to gamble your home with debt. The best thing with home equity is that it offers low interest so you can easily pay it with less trouble. As a borrower this is a risky source of credit considering your home is taken as security and there are chances you may lose your home. This type of loan is however recommended for persons with a stable and regular income who can service the loan comfortably. It is a low interest loan meaning that you don’t have to worry about paying large amounts of money. People with low income can highly benefit from home equity credit.

Find a credit union that will let you join. Credit unions are micro-finance institutions that operate like banks. Membership to credit unions is by people who associate in some kind of way. For instance, there are credit unions for people who work together or even neighbors. These organizations offer their members financing and loans for bad credit depending on their earnings but on a low interest.

Did you also know that you can use your car for collateral in order to get quick cash?  Car titles can be used to get emergency loans and the car is used as collateral for the loan. Just like home equity loans, car title loans require discipline because failure to pay may lead to losing the car leading to more financial trouble. This is however a good option if you are able to repay your loan without trouble.

Ask a dependable friend, family member, or associate if they might be willing to be a cosigner on a loan for you.  A cosigner is a person with good credit who helps you get a loan in cases where your credit worthiness cannot be trusted. This person will be responsible for paying your loan in case you default payment. A cosigner should be a close person who has put their trust in you.

As a final word, if you have poor credit, and are worried that you might not be able to obtain the financing that you desperately need, be aware that most bad credit situations can be helped. FinancialLitNow offers a variety of financial solutions for people with bad credit. You can apply online 24 hours a day for personal loans, payday loans, auto loans, and even debt consolidation loans.

Is Having No Credit Better Than Having Bad Credit?

When it comes to discussing whether having no credit is worse than having bad credit, there are a few crucial aspects that should be taken into consideration. As many young people move from childhood to adulthood, they are often confronted by a sad reality. They have no credit at all, and they are associated with those who have bad credit. Your creditworthiness is directly related to your credit lines. You gain a credit line when you apply for credit cards, bank loan, or buy a car.

In order to gain a credit line, you must have good credit, and to get good credit, you need to have credit lines. This has been the problem for most people. One way of dealing with this problem is to apply for a collateral bank loan. As this loan is paid back, you automatically gain a credit line. Many banks are willing to offer this loan, since they know that credit is very important in this world.

Why It Is Important To Rebuild Your Credit

If you currently have credit problems, then it is tempting to think that it is a problem you can just ignore without any long-term ramifications. Unfortunately, if you fail to take the positive steps required to rebuild your credit rating at the soonest possible juncture, then you will store up problems for your future. A bad credit rating can make it incredibly difficult to obtain a mortgage and even if you are successful at getting a mortgage you will end up paying much higher repayment rates than you would with good credit. Furthermore, should you wish to obtain a loan to finance a business in the future it will be much harder to be accepted if you haven’t rebuilt your credit. Simply put, if you don’t take proactive steps to rebuild your credit rating then you’re not only damaging your present financial situation, but also creating long-term problems that will be very hard to recover from financially.