One of the things that need to be made clear is how long after bankruptcy you are applying. Another important topic is the type of credit card you want to apply to. And finally, another issue is the things you can do in order to boost your chances of getting approved for a credit card after going through a bankruptcy process that has ruined your credit score and history.
How Long After Bankruptcy Are You Trying To Apply?
It’s is definitely not the same to apply for a credit card right away after bankruptcy than applying after two years or applying past ten years when your bankruptcy will be removed from your credit report. You need to understand that bankruptcies on your credit history scare lenders and financial institutions away and if the entry is in your recent credit history, chances are that you’ll get declined.
Truth is that there is no particular time period specified to apply for a credit card after a bankruptcy process. Yet, most lenders and financial institutions would agree that a two year period is the least time required for applying to obtain any kind of financial product if you have gone through a bankruptcy process in the past. Thus, though you may get a credit card sooner, don’t expect to obtain an excellent deal.
What Type Of Credit Card Do You Want To Obtain?
Another important issue is the fact that you can’t look ahead to obtaining the same credit card products that are offered to those with a fair credit score and history or even those with some minor delinquencies like late payments or missed payments. Those who have defaults or bankruptcies on their credit report will have to be contented with less advantageous products.
This means that you’ll be able to obtain only higher interest credit cards, with lower credit limits and that the income requirements you’ll have to meet in order to get approved will be more rigorous. Store credit cards are easier to obtain but, consequently have higher rates and though they sometimes offer higher credit limits, they can only be used at that particular store.
Increasing Your Chances of Getting Approved For A Credit Card After Bankruptcy
If you want to increase your chances of getting approved for a credit card after a bankruptcy process you’ll need to improve your credit score and history. In order to do that, you’ll have to avoid late payments and missed payments. This is due to the fact that you need to show an impeccable recent credit history in order to compensate for the past bankruptcy on your records. Sadly, a clean credit history implies six months of timely payments with no delinquencies at all.
If you can’t meet the above requirement, you can always resort to a secured credit card. You’ll need to raise some money for a deposit prior to using this card and that deposit will be your credit limit. Yet, with some use of this card, you’ll build up your credit score again and will be able to obtain a better credit card product in a matter of months.
http://www.articlebliss.com/Article/Credit-Cards-After-Bankruptcy--Is-It-Feasible-/96856
Thursday, September 13, 2007
Population Friendly View of Mortgage Process in UK
The mortgage process in UK normally comprises of six basic steps and in general takes from 4-6 weeks, and includes 6 major milestones. If you want to taste sweet successful mortgage process in UK then make sure to understand below mentioned steps:
Apply For Your Loan
Process starts by application for mortgage loan as per needs to potential lender. Explore this part of mortgage process well as future of the whole process depends on this step only.
Submit the Application for Review
A Loan Consultant of lender will review your application and request a credit report for all applicants and submit your information to underwriting department for an initial lending decision.
Receive the Welcome Package
Once you are approved and registered, your title report, appraisal, and flood certification will be ordered and you will receive a welcome information package introducing you to your loan counselor, who will be your guide through remainder of the loan process. You will also receive other important documents to review.
Reports are Review Phase
Your Loan Processor will review the title report, appraisal, and flood certification and verify that all conditions of the initial lending decision have been met prior to obtaining the final lending decision.
After the Final Lending Decision
Your Loan Processor will notify you of the final lending decision and will schedule a date and time for your loan closing.
The Loan is Closed and Funded
Attend the loan closing where you will review and sign the loan documents.
Different Types of Mortgages Available in UK
There are two main types of mortgage, namely repayment mortgages and interest only mortgages. There are several different ways of repaying interest only mortgages, and so interest only mortgages have several different options available including different investment options to pay off the mortgage, and also different types of interest rate. The savings made can differ substantially between the different types of mortgages and between the different lenders.
Repayment Mortgage
The payments you make to the lender every month pay off both the capital and the interest from the mortgage. Provided you keep up the payments, you are guaranteed to pay off the loan by the end of the term agreed (usually between 20 and 30 years). You usually pay off more interest at the start of the mortgage term and then gradually more of the capital debt. Therefore, in later years, you will be repaying increasing amounts of capital and reducing amounts of interest. It may seem as if this is costing more but that's because unlike the other types of mortgages you're paying off the capital and not just the interest.
First time buyers will usually get a low start capital repayment mortgage where for the early years of the mortgage interest only is repayed. Most lenders also offer Flexible mortgages and 100% mortgages.
Interest-Only Mortgages
An interest-only mortgage is where the lender only charges you interest on the loan you've agreed. You don't pay the capital back until the end of the mortgage term 25 years or whatever period agreed. The idea of this mortgage is that you pay the interest owed to the lender and save the capital repayments by investing them elswhere. At the end of the mortgage term you will have hopefully made enough money from investments to pay the lump capital sum. This way you can possibly make a saving by investing capital that would otherwise be paid straight back to the mortgage lender. The lender may offer you an investment opportunity if you choose an interest only mortgage such as an ISA. There are several different types of interest-only mortgage:
■ Endowment mortgages
■ Unit linked Endowment mortgages
■ ISA mortgages
■ Pension linked mortgages
There are also several different types of interest rates:
■ Fixed Rate
■ Standard Variable Rate
■ Capped Rate
■ Discounted rate
■ Base Rate Tracker
Information compiled in above lines in relation to Mortgage process in UK will definitely simplify the process for individuals looking for quick mortgage approval.
http://www.articlebliss.com/Article/Population-Friendly-View-of-Mortgage-Process-in-UK/100712
Apply For Your Loan
Process starts by application for mortgage loan as per needs to potential lender. Explore this part of mortgage process well as future of the whole process depends on this step only.
Submit the Application for Review
A Loan Consultant of lender will review your application and request a credit report for all applicants and submit your information to underwriting department for an initial lending decision.
Receive the Welcome Package
Once you are approved and registered, your title report, appraisal, and flood certification will be ordered and you will receive a welcome information package introducing you to your loan counselor, who will be your guide through remainder of the loan process. You will also receive other important documents to review.
Reports are Review Phase
Your Loan Processor will review the title report, appraisal, and flood certification and verify that all conditions of the initial lending decision have been met prior to obtaining the final lending decision.
After the Final Lending Decision
Your Loan Processor will notify you of the final lending decision and will schedule a date and time for your loan closing.
The Loan is Closed and Funded
Attend the loan closing where you will review and sign the loan documents.
Different Types of Mortgages Available in UK
There are two main types of mortgage, namely repayment mortgages and interest only mortgages. There are several different ways of repaying interest only mortgages, and so interest only mortgages have several different options available including different investment options to pay off the mortgage, and also different types of interest rate. The savings made can differ substantially between the different types of mortgages and between the different lenders.
Repayment Mortgage
The payments you make to the lender every month pay off both the capital and the interest from the mortgage. Provided you keep up the payments, you are guaranteed to pay off the loan by the end of the term agreed (usually between 20 and 30 years). You usually pay off more interest at the start of the mortgage term and then gradually more of the capital debt. Therefore, in later years, you will be repaying increasing amounts of capital and reducing amounts of interest. It may seem as if this is costing more but that's because unlike the other types of mortgages you're paying off the capital and not just the interest.
First time buyers will usually get a low start capital repayment mortgage where for the early years of the mortgage interest only is repayed. Most lenders also offer Flexible mortgages and 100% mortgages.
Interest-Only Mortgages
An interest-only mortgage is where the lender only charges you interest on the loan you've agreed. You don't pay the capital back until the end of the mortgage term 25 years or whatever period agreed. The idea of this mortgage is that you pay the interest owed to the lender and save the capital repayments by investing them elswhere. At the end of the mortgage term you will have hopefully made enough money from investments to pay the lump capital sum. This way you can possibly make a saving by investing capital that would otherwise be paid straight back to the mortgage lender. The lender may offer you an investment opportunity if you choose an interest only mortgage such as an ISA. There are several different types of interest-only mortgage:
■ Endowment mortgages
■ Unit linked Endowment mortgages
■ ISA mortgages
■ Pension linked mortgages
There are also several different types of interest rates:
■ Fixed Rate
■ Standard Variable Rate
■ Capped Rate
■ Discounted rate
■ Base Rate Tracker
Information compiled in above lines in relation to Mortgage process in UK will definitely simplify the process for individuals looking for quick mortgage approval.
http://www.articlebliss.com/Article/Population-Friendly-View-of-Mortgage-Process-in-UK/100712
Bouncing Back From Bankruptcy: Obtaining an Improved Credit Score
There are many different things you can do to obtain an improved credit score after you have had a bankruptcy. Most lawyers and mortgage companies will tell you that you need to wait three years before you can start to improve your credit scores and obtain better loans. While to a degree this is true there are things you can do immediately to improve your credit scores.
First it will be difficult to obtain a great loan on anything, but it is not impossible. You will have a high interest rate, but in order to improve your credit score you need to start establishing a good credit report. The only way to get the credit report back in favor is to have credit. You will need to find a credit card company that is willing to give you a credit card. Do your research. Find the credit card company that will offer you the lowest interest rate. While it may be high it is still important.
You should not use the credit card, except once a month. If you use the card to fill up on gas once a month and paying off the balance you are showing the credit reporting agencies that you are establishing better credit and therefore you will be a better risk down the road. Companies look for a steady monthly payment that you are never late on. They are also looking for a credit limit.
If you are showing a company that you have a credit limit and are responsible your credit score will begin to rise. The same applies for a car loan. If you have a car loan that you pay on time every month your credit score will soon increase.
The bankruptcy will keep your back on your credit report, but after three years you can start to remove some of the bad credit reports helping you to increase your credit score.
http://www.articlebliss.com/Article/Bouncing-Back-From-Bankruptcy--Obtaining-an-Improved-Credit-Score/131612
First it will be difficult to obtain a great loan on anything, but it is not impossible. You will have a high interest rate, but in order to improve your credit score you need to start establishing a good credit report. The only way to get the credit report back in favor is to have credit. You will need to find a credit card company that is willing to give you a credit card. Do your research. Find the credit card company that will offer you the lowest interest rate. While it may be high it is still important.
You should not use the credit card, except once a month. If you use the card to fill up on gas once a month and paying off the balance you are showing the credit reporting agencies that you are establishing better credit and therefore you will be a better risk down the road. Companies look for a steady monthly payment that you are never late on. They are also looking for a credit limit.
If you are showing a company that you have a credit limit and are responsible your credit score will begin to rise. The same applies for a car loan. If you have a car loan that you pay on time every month your credit score will soon increase.
The bankruptcy will keep your back on your credit report, but after three years you can start to remove some of the bad credit reports helping you to increase your credit score.
http://www.articlebliss.com/Article/Bouncing-Back-From-Bankruptcy--Obtaining-an-Improved-Credit-Score/131612
Getting Credit Cards after Bankruptcy
It is not uncommon to go through the agony of facing a bankruptcy and spending many a sleepless night worrying about whether you have any chances of getting credit cards after bankruptcy. This might have been impossible earlier, but not now. Increasing market competition has ensured that there are now credit card providers who specialize in providing credit cards after bankruptcy.
It is not too difficult to get a credit card after bankruptcy from these kinds of credit card providers. The only hitch is that they take a higher interest rate and a lower credit limit. This is because of the risk that they are taking for offering a credit card after bankruptcy to a person.
It is not difficult to rebuild good credit after bankruptcy. In fact filing for bankruptcy in the court is a good move in itself. It might be a huge blow to your credit report but eventually it will prove to be a sensible move. Once you have eliminated debt by filing for bankruptcy you can make a new start by applying for bankruptcy credit card application. You should take care that you fill you bankruptcy credit card application properly. While filling up your bankruptcy credit card application make sure that all your paid expenses are shown as paid or else they would tag along and spoil your new credit report.
You can either opt for secured credit cards after bankruptcy or unsecured credit cards after bankruptcy. A secured credit card after bankruptcy is a wiser decision than an unsecured credit card. These are secured by special savings account one establishes with a credit card issuer which acts as a security for his credit limit. A unsecured credit card is exactly its opposite. Once you have opted for a secured or unsecured credit card after bankruptcy make sure that you build up a good credit report. Building up a good credit report is absolutely essential if you want to come to a good standing back again. For this, always pay your bills on time and also cut down your expenses to bare essentials. Another way to rebuild your credit after bankruptcy is to add years of positive credit history to your account. It is a slow and could be an agonizing process but once you build a good credit record, you will be in a different league altogether.
Credit cards after bankruptcy while on one hand may prove to be expensive, but then, they can help you secure a stronger footing in future with regards to your credit rating. Getting a credit card after bankruptcy is one of the best ways to begin rebuilding your credit score, if you are careful and selective about choosing the right card and provider. Limiting the amount of accounts and the spending limits will help to keep this in check. Having good recent credit will bring up an overall score and look much better on a report than not having any, especially when there is a bankruptcy shown within the last couple years.
http://www.articlebliss.com/Article/Getting-Credit-Cards-after-Bankruptcy/143632
It is not too difficult to get a credit card after bankruptcy from these kinds of credit card providers. The only hitch is that they take a higher interest rate and a lower credit limit. This is because of the risk that they are taking for offering a credit card after bankruptcy to a person.
It is not difficult to rebuild good credit after bankruptcy. In fact filing for bankruptcy in the court is a good move in itself. It might be a huge blow to your credit report but eventually it will prove to be a sensible move. Once you have eliminated debt by filing for bankruptcy you can make a new start by applying for bankruptcy credit card application. You should take care that you fill you bankruptcy credit card application properly. While filling up your bankruptcy credit card application make sure that all your paid expenses are shown as paid or else they would tag along and spoil your new credit report.
You can either opt for secured credit cards after bankruptcy or unsecured credit cards after bankruptcy. A secured credit card after bankruptcy is a wiser decision than an unsecured credit card. These are secured by special savings account one establishes with a credit card issuer which acts as a security for his credit limit. A unsecured credit card is exactly its opposite. Once you have opted for a secured or unsecured credit card after bankruptcy make sure that you build up a good credit report. Building up a good credit report is absolutely essential if you want to come to a good standing back again. For this, always pay your bills on time and also cut down your expenses to bare essentials. Another way to rebuild your credit after bankruptcy is to add years of positive credit history to your account. It is a slow and could be an agonizing process but once you build a good credit record, you will be in a different league altogether.
Credit cards after bankruptcy while on one hand may prove to be expensive, but then, they can help you secure a stronger footing in future with regards to your credit rating. Getting a credit card after bankruptcy is one of the best ways to begin rebuilding your credit score, if you are careful and selective about choosing the right card and provider. Limiting the amount of accounts and the spending limits will help to keep this in check. Having good recent credit will bring up an overall score and look much better on a report than not having any, especially when there is a bankruptcy shown within the last couple years.
http://www.articlebliss.com/Article/Getting-Credit-Cards-after-Bankruptcy/143632
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