Your Credit Report and Refinancing

Applying for a job, mortgage, credit or insurance? Get a complimentary copy of your credit report so you know what it contains. If you think credit scores are only used when trying to get a personal loan, think again. Many other firms require them. Hiring companies look at your credit history as a way of determining whether you are a good employee. An auto insurer company decides an applicant's risk by reviewing at your credit rating. And of course if you're applying for a home equity line your credit history is of extreme importance.

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What you might not realize is that having several of requests for you credit report in a short period of time can hurt your rating. Do not apply to more than one or 2 loan firms at a time. Obtain a Free Credit Report and Scores and look at the report for accuracy and correctness.

Your credit report is important in deciding whether or not you are approved for a mortgage.

Home loan interest fees have decreased a lot in the past few months. Over the prior two or three years the economy has sagged. If you acquired your refinancing before the interest rates plummeted, you're probably envious of the home owners who have the same size home loan you have, but their payments are far reduced because of the lesser interest rate. Mortgage rates fluctuate based on where you live. Rates also depend on your credit score, employment, and the value of your house If high mortgage interest rates take a big chunk out of your take home pay, you should consider refinancing. The application doesn't have to be difficult. Or time consuming. Waiting too late is a problem. Refinancing a mortgage could save you hundreds of dollars a month. That means more cash in your pocket.

It's important when asking for mortgage to have the best credit score possible.
The first step is to start paying off your creditors as soon as possible. All the extraneous debts you can clear off your credit report as soon as possible will be better for you in the long run. At the very least you should be able to eliminate fees and lower the interest rate.

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Improve your credit score by paying down creditors and you'll soon be able to apply and obtain a refinanced mortgage. The new mortgage will probably have lower payments and a lesser interest rate. Use that extra money to pay off even more debt.

The Downside of Debt Settlement: What You Need to Know

Debt settlement has become increasingly popular these days because of the economic crisis that has forced many to resort to negotiations with their lenders. While some opt for a consolidation loan, others choose debt settlement as a means to alleviate their financial burden. Payment of the debt means that the lender agrees to set aside a portion of its debt, as long as the debtor continues to make monthly payments for the remainder of their debt.

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Some lenders will only consider debt settlement as a lump sum rather than monthly payments. This is something that can be of great help to someone in a difficult financial situation, but there are also disadvantages of this method.

Unsecured debts such as credit cards, personal loans, medical bills and store credit cards are more likely to be open for debt settlement. The only recourse the lender has is to sue the borrower for the unpaid amount. Secured debts such as auto loans and home mortgages are less likely to be open to negotiation.

A major disadvantage lies in the tax department. The fact that part of the debt was forgiven could be considered income. The debtor received the money and no longer has to pay it back. This could very well mean an increase in taxes. If part of the owed debt is because of late fees and high interest penalties it may be possible to exclude these as income.

Probably the main drawback for debt settlement is that the credit scores of the person will be negatively affected. This means that the person will have difficulty obtaining a loan in the future. Something that could make things more difficult when it comes to buying a car, a house, or, depending on the situation, even renting an apartment can be difficult.

Lenders may also file a lawsuit against someone up until the renegotiated loan amount is paid, even if payments are being made. If this happens the debtor may have to pay legal fees, as well as the debt in full, according to the results of the judgment.

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Debt settlement is an option but is not something that should be considered lightly. The short-term results are breathing room for the debtor. The long term results are a ruined credit score for up to seven years until the negative reports are out of date. Desperate times call for desperate measures. Debt settlement is an option for you in a difficult situation.

How Can I Settle Credit Card Debts Myself?

The average American family these days owes at least $10,000 of credit card debt, plus a mortgage and at least one car payment. Many consumers have fallen into the trap of only being able to make the minimum monthly payment or worse make the payments on an irregular basis. Does this sound like you? Have you wondered "How I can settle credit card debts myself?

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One answer is through debt settlement, convincing your creditors to take less than the full amount owed. Like the pharmaceutical advertisements on TV, debt settlement isn't for everyone.

Your accounts must be at least 6 months over due. In other words no payments have been made for 180 days. At that point the bank or credit card company will have written off the balance of the card. It is still a valid account but its worth to the bank is close to nothing. If you make a payment on the account its value increases and the creditor won't negotiate.

You must have some funds available to pay at least 50% of what you owe. Most creditors won't agree to anything much lower when negotiating with an individual creditor. Of course start the discussions with an amount that is 35% to 40% of what you owe so you have some wiggle room.

It's fine to start the debt settlement procedure with a phone call but it's best to get everything in writing. Your job is to convince the creditor that there is no way that you can possible pay more than what you're offering to settle for. It may not be pleasant but if you've lost your job, gone through a divorce or have major medical bills to pay, the creditor needs to know that.

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The creditor may insist that you make a payment, even just a small payment immediately, to show your good faith. But remember, if you do that you bring the account to day 1. Accounts must have had no payments for 180 days to be eligible for settlement.
Until the creditor has agreed, in writing, and you've made the settlement payment, the creditor can pursue legal action. As soon as you receive a debt settlement agreement, send in a check for the amount with a copy of the agreement by registered mail or overnight delivery.

Debt settlement is one answer to the question: How can I settle credit card debts myself?