Tag: bad credit

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Mortgage

Second Mortgage Loans For People With Bad Credit

Bad Credit Home Loan||bad credit home loan

Not sure whether second mortgage loans are a good idea with bad credit? Here are a few things to keep in mind before conditioning your mind into making new monthly mortgage payments again.

Some people don’t like second mortgages…

Some people, especially retirees don’t like the idea of carrying a second mortgage throughout retirement, despite the thrill of reinvesting the money into something lucrative. New homeowners with enough home equity to use for good business ventures also don’t think that the second mortgage is a brilliant financial strategy. But, just like any other investment-carrying, a second mortgage can be a good idea in certain situations, but there can be drawbacks too.

Here are two factors you must consider before hopping into second mortgage loans for people with bad credit.

Home equity

Do you have more than enough equity to take the plunge? Don’t wait for another housing bubble to burst. Use your equity as a form of leverage before the home values plummet sending many mortgages down the sink. Know where your equity stands, before you sign up for a new loan.

Since second mortgages allow you to borrow up to 80% of your home’s value-it is not enough to know how much you can borrow, but how much you can repay. While the second mortgage has lower interest rates than other types of loan, remember that you are still securing the loan with your home. While it reduces the risk for your lender, it increases the risk on your part-because inability to pay it could mean losing your own home.

Diversification

A lot of people suffered during housing bubbles because they got fooled by attractive real estate returns in the past years. But, those who opted to get a second mortgage to diversify their portfolio were able to do better and can be expected to do so in the future.

You are shifting your assets from your home by getting a second mortgage and investing in ETF’s or mutual funds or in a business venture, thereby diversifying your portfolio to enhance your net worth. Aside from the fact that diversified portfolio outperforms residential real estate returns, getting a second mortgage is also tax-deductible. So, if your home makes up a huge portion of your net worth, it is advisable to get a second mortgage and use it as a tool for diversification. But, despite the potential advantages of this strategy, it can also have some side effects.

Some Final Considerations Before Taking Out Second Mortgage Loans With Bad Credit

If you want to take out a mortgage as a form of leverage, you should know how to handle your other investments wisely. Remember that by getting a second mortgage to diversify your assets, you’re also exposing your home and your additional investments to risk. Increased risk exposure requires increased wealth management strategy as well.

In short, if you are scared of downward fluctuations, make sure that you have personal skills to handle all your new investments before you get a second mortgage for diversification purposes.

Learn more about second mortgage loans for people with bad credit and the financing options available for you by talking to Australian Lending Centre’s consultants today!

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News

4 Tips to Pay Car Loan With Bad Credit Faster

car loans

Here are some practical, easy tips to help you to pay your car loan with bad credit faster, and how to save money while doing so…

1. Add extra payment on your monthly instalment.

Most of the car loans have fixed monthly instalments. So, every time you make an extra payment, it should go directly to the principal. You can also set up an automatic payment with the extra amount so you could avoid missing the due dates. Afterwards, you can work on increasing the additional payments.

2. Spend your cash windfall to repay your debts

Did you suddenly receive a chunk of money? Maybe you won the lottery or received a tax refund or inheritance and you are tempted to spend on your must-haves. Hold that thought-debt must come off first. Use your cash windfall for paying off car loans faster.

3. Work on your budget

If you want to have more money to pay off your loans as quickly as you can, but increasing your income is not possible at the moment, decreasing your spending is an option. While it is a bit hard to trim your budget drastically, skipping small stuff that used to cost you a few hundred bucks a day is worth it.

For example, if you are paying a thousand dollars a year for your gym membership, why not try cheaper exercise programs with friends until you have paid off your car loan?  You may have to skip clubbing or eating out, but it’s only a short-term. Use your creativity to get cheaper alternatives to things that you used to buy.

If you love throwing big parties, why not try cost-effective celebrations that focus more on experiences instead of glamour? Even if you can only handle cost-cutting for a few months, the amount of money you can save can still help your car loan repayment.

Maybe you can keep some cost-cutting strategies you can use for life, especially the healthy and friendly alternatives.

4. Debt consolidation

It is not easy to obtain a car loan for bad credit with reasonable repayment terms. Lenders look into your credit history to check your ability to pay your monthly instalments. One of the most common financing options for people with bad credit who want to finance a car is debt consolidation.

Here is one of our best tips to pay your car loan with bad credit faster. If you want a stress-free ride, reduced interest rates on your bills and debts and an easy-to-follow debt repayment plan, debt consolidation can help you. You can also enjoy the convenience of making one payment every month.

Debt consolidation helps you become debt-free faster and you can save hundreds to thousands of dollars on penalty fees and debt charges plus accumulating interests from various debts.

Australian Lending Centre helps thousands of individuals deal with defaults, late payments and charged-off accounts that could ruin your credit rating. Their debt consolidation program helps you reduce your debt payments and save money in interests. They also have in-house loan specialists that will guide you on how you can improve your credit score.

Start with a clean slate while you get your dream ride. Getting a car loan for bad credit isn’t as hard as you think, with Australian Lending Center.

Contact ALC today!

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Bad Credit Loans

How to Pick the Best Loans When You Have Bad Credit

Pick the Best Loans When You Have Bad Credit

Getting a loan when you have bad credit can be tough sometimes because many lenders don’t want to take on the perceived increased risk.

Despite this, it is still completely possible to get loan approval. You just have to make smart financial decisions from now on. Learn how to pick the best loans when you have bad credit below.

Know the common types of loans for people with a poor credit history.

If you don’t have a car, home equity, or other properties to use as collateral, then a secured loan is not for you. But, you may have to pay a higher interest rate for an unsecured loan because, unlike secured loans, they have no collateral to go after.

If you need only a small loan to cover unexpected expenses like car repair, health emergencies, and small purchases, a bad credit personal loan could be the right solution

Important tips when taking out loans for people with bad credit:

  • Check your credit report before anything else. If you notice incorrect negative listings, these could be disputed manually or removed by a credit repair company.
  • Read the terms of the loan. Check the interest rate, payment terms and late fees.
  • Don’t use a bad credit loan to pay off other debts if you can help it. Otherwise, you could find yourself in a debt spiral.
  • Compare loan products and try to get the best deals available. You’re likely to face high interest rates and fees when you have bad credit. This is because extending loans to people with bad credit is riskier for lenders than lending to people with good credit.

Determine whether or not you can still rebuild your credit.

After taking out this bad credit loan, can you establish a consistent repayment history? If you think you have sufficient income to repay your loan and stick to your spending limit, then rebuilding your credit is certainly possible.

Choose your lender wisely.

Picking the best loans when you have bad credit isn’t easy. Some lenders take advantage of your situation and charge absurd interest rates for alternative loans.

Think twice before taking loans when you have bad credit, and consider the urgency of your financial situation and the availability of better loan options.

If you need help finding the most suitable loans for people with bad credit, contact the Australian Lending Centre today! We’re rated excellent on Trustpilot and Google reviews.

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Financial Planning

5 Rules to Avoid a Bad Credit Score

debt consolidation||consolidation loans

These days, no one could be immune to possible bad credit. Many people are incurring either a job loss or a reduced income. Some just could not control their personal finances effectively. A bad credit score has become very common especially now that many consumers find difficulty in meeting financial obligations.
No one wants to incur bad credit. That is for sure. Getting a poor credit rating is like a curse. It could mean many other problems and difficulties. Bad credit could be a passport to higher interest rates and discrimination from banks and other financial institutions. Fortunately, incurring bad credit could be avoided. Here are five rules you could observe to do so.

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