In the last post we discussed the impact that bad credit can have on our overall financial health; affecting our ability to get loans of any kind including a mortgage loan, car loans, and other lines of credit. When we find ourselves in a situation where our credit is defining us (negatively, that is) it’s time to take action so that we can get control of our finances and pave a road for success in the future.

In order to get the ball rolling in this regard it’s best to first begin in with the procurement of free credit reports. Such reports are available to us through the three credit bureaus that hold our financial information; we need only logon to a central website, www.annualcreditreport.com to get the credit reports we need.

Following the receipt of our free credit reports we will have much more solid information regarding the state of our credit and what we need to address in order to increase our credit score. Bad credit loans may be the best way to begin the work towards improving our credit score believe it or not. Bad credit loans are provided to those consumers with less than perfect credit; those that would not ordinarily be approved for traditional loans or credit lines. Typically, in order to protect the interests of the lender, bad credit loans are given to consumers with higher than average interest rates, lower lines of credit, or even credit lines that must be secured.

Secured credit cards offer consumers a particular line of credit but only if the cardholder first deposits the amount of the credit line into a secured savings account held by the lender. This protects all parties from possible harm; the lender is protected in that they can access the savings account if the consumer defaults on the loan; the consumer is protected from getting too far in over their head.

Bad credit loans allow consumers to take baby steps and start to improve their credit one dollar at a time.

Popularity: 14% [?]

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This economy has had an impact on all of us in one way or another. Whether it’s the beating we’ve taken at the gas pumps or the reduction in home values that we have experienced just as we get ready to sell, we’ve all seen the results of a poor financial climate. This can trigger many of us to get in over our heads as we look for alternatives to stay afloat. Credit cards get maxed out, savings are tapped, and before we know it we are looking down the barrel of some significant damage to our credit report.

There are certainly steps that we can take, however, that will minimize the effects of this economy and get us back on the road to financial health. Starting with a free credit report.

* Get a free credit report. Our credit report is what speaks to the world about our financial worth in terms of lending. When we apply for a loan, lenders look at our credit report to ensure that we are a good enough risk. By getting free credit reports we can ensure that our report is accurate so that lenders are looking at the information that is line with the reality of the situation.

* Consider consolidation. For debt that has gotten out of hand, many consumers turn to debt consolidation to help ease their financial burden. A debt consolidation loan essentially collects all existing debt under one umbrella – so that specific credit card debt is wiped clear and the consumer is left with one monthly payment at a much lower interest rate than they had been paying to multiple cards. Debt consolidation can be tricky, however, as it is essential that consumers not turn back to credit cards and essentially double their debt.

* Try secured credit cards. Once debt has been eliminated it is wise to begin building our credit scores back up again. Secured credit cards can be helpful in this regard. Secured credit cards offer consumers a credit limit but the amount of the credit limit must first be deposited into a savings account held by the lender. This negates the risk for the lender as they can simply access the savings account if the creditor defaults on the loan. Conversely, it allows the consumer to begin rebuilding their credit within very defined terms.

Popularity: 18% [?]

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Summer may have just begun but for those students heading off to college in the fall, the preparation begins now. In fact, many colleges begin their fall semester as early as the end of August and as a result many college students head off to school during the time period that most of us still consider to be summer.

There are many preparations for those going to college – whether it’s their first year or they are well into their college experience; there are many things that must be purchased in order to properly outfit a dorm room or college apartment, books that must be found and bought, classes to be registered for, and paperwork to be completed. But beyond that, many college students must prepare their finances in order to go off to school as prepared as possible.

For those who have had some financial struggles and are facing less than perfect credit, the process of getting finances together is more of a challenge than it is for most. When facing these circumstances, many college students may consider secured credit cards this summer in an effort to rebuild their credit.

Secured credit cards are those credit cards offered to those consumers that are not able to qualify for traditional credit cards. With secured credit cards, consumers can request a particular credit line, but in order to receive this credit they must first deposit the amount they have requested (and in some cases, a bit more) into a secured savings account that is held by the lender. The purpose of this money is to act as collateral; it protects the lender’s interests should the cardholder default on the loan. In the case of a default, the lender is then able to access the savings account to recoup their money.

Secured credit cards provide consumers with time and opportunity. While using secured credit cards, consumers with questionable credit can make on time payments and begin to build their credit. And for college students that are facing an upcoming journey into the “real world” good credit can open many doors.

Popularity: 14% [?]

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Summer is often a time for many goals – set forth by people who, experiencing an uncommon lull, have the time to finally gather their thoughts. There are vacations to plan, homes to clean, projects to undertake, and the myriad of things that are associated with having children home from school. While many people may not think of summer as a time to regroup financially, it actually is one of the most appropriate seasons to do so. After all, come September and the back to school chaos that it brings, we are right back on the crazy train with the holidays right around the bend - a time that can be a financial setback for a great many people. And so, this summer it may be time to examine our finances and start getting things back on track, especially those with poor credit.

First and foremost, it is absolutely crucial for every consumer to get a free credit report so that they can be adequately informed as to what is included on their credit report and at what number their credit score is ranked. With this information in hand, consumers can make educated decisions regarding their finances and any credit repair in which they might engage.

For some, their credit report is such that they are unable to receive any further credit. In terms of building up a credit score and beginning the process of credit repair, it may be wise to look into secured credit cards.

Secured credit cards provide consumers with a particular amount of money as a credit line, but the card holder must first deposit the amount of their credit line into a secured savings account held by the creditor. This money acts as collateral should the cardholder default on the loan. The good news is that a period of time with secured credit cards can very quickly begin to raise the consumer’s credit score – especially with a track record of on time payments and responsible spending.

Popularity: 18% [?]

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The older generation often lived a very different life than what would be considered “normal” by today’s standards. In years’ past it was perfectly acceptable – and completely standard – for the man of the household to go to work and the woman to stay home with the children and keep house. While this was a comfortable arrangement for couples of this generation, many are finding that there are repercussions to that lifestyle in later years. When these men pass away, leaving their wives behind, the women are finding that they know very little about their own finances – and are even coming to find that they have established very little credit in their own name.

What they quickly come to learn is that little credit is almost as challenging as bad credit when it comes to qualifying for a loan. And so these women who may find themselves in need of a credit card in their name, or a larger loan with which to pay expenses may not qualify to receive this money because of a lack of credit history.

In such cases, secured credit cards can offer an alternative solution. Secured credit cards are offered to consumers who do not have a solid enough credit history to qualify for traditional credit cards. With secured credit cards consumers must deposit an equal or greater amount than their line of credit into a secured savings account held by the creditor. This money acts as collateral for the lender; should the cardholder default on the loan the credit has access to the money in the savings account that essentially covers the entire line of credit.

While secured credit cards may seem counterintuitive to getting a line of credit, the truth is that they are temporary and only needed to help bolster a consumer’s credit report – by showing a record of on-time payments and responsible card usage – allowing them to one day move on to a more traditional credit card.

Popularity: 22% [?]

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Those just leaving college and embarking out in the “real world” may find themselves woefully unprepared for what lies again in terms of finances. Not only is everything far more expensive than we could have anticipated, but we are often less than prepared in terms of presenting with a solid credit history. The truth is that lenders, prospective landlords, and even potential employers examine our credit report for a pattern of creditworthiness, trustworthiness, and responsibility. The only thing worse than having bad credit is having no credit, and young people just starting out in the world often learn this lesson the hard way.

Building a credit report for success, however, doesn’t have to be a lengthy and arduous process. Rather, young people who wish to build their credit report can do their best on a daily basis to make responsible financial decisions; every little bit counts and every day matters. One of the things that young people with little to no credit can do to begin building a strong credit report includes the procurement of a credit card – a credit card in their name with a manageable balance and competitive interest rate.

The acquisition of a credit card builds credit and teaches important budget lessons. The cardholder should only charge enough to be able to pay off the card in total each month. If they are unable to get a credit card because of their lack of credit, the consumer may look into secured credit cards – cards that require a collateral cash deposit equal to the credit line; the collateral money is held by the lender in a savings account as a good faith deposit. Should the cardholder default on the loan the lender has the option to recoup their money through the deposit. A short time with secured credit cards will build credit quickly and allow consumers to move on to more traditional credit cards if they desire.

Popularity: 22% [?]

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There are few of us who have not experienced some really stressful financial times throughout our lives. A loss of a job, medical bills, or maybe just the piling up of credit card debt has rendered quite a few of us helpless and hopeless in the face of burgeoning debt and a shockingly inadequate income to keep pace. Most often we just ride out these times and find the money – somehow – to pay the bills and move on as best we can. But there are those times for some people where they are simply drowning in debt and not able to find the light of day. And when things get really bad – and personal property is on the line – many people determine that bankruptcy is the only way to go.

Bankruptcy is a last resort for those who are in financial straits. While it discharges much of a consumer’s debt and allows them to financially start over, it does leave a mark on the consumer’s credit report. Put simply, a credit report is our financial report card – the history of our debt and spending and our track record when it comes to making on time payments. Lenders look at our credit report to determine if we are credit worthy and should be given a loan for which we have applied. When bankruptcy is on our credit report, we are likely not to receive a loan for quite some time.

There are various opinions as to how long a bankruptcy stays on a consumer’s credit report – but it is generally anywhere from seven to ten years. This is not to say that the consumer will not be able to qualify for any credit a few years after bankruptcy but chances are it will not be a big loan. Lenders want to see a change in behavior following a bankruptcy so consumers would do well to use secured credit cards and other methods for rebuilding their credit following a bankruptcy.

Popularity: 24% [?]

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For those who have navigated through tricky financial waters, the times can be stressful and certainly upsetting. And when such circumstances lead to an inevitable bankruptcy the stress can be compounded significantly. The fact of the matter is, however, that sometimes filing bankruptcy is the only way out of a very bad situation. While it’s true that a bankruptcy can remain on a credit report for quite some time – typically seven to ten years – it can also offer an effective, albeit last ditch, choice for wiping the financial slate clean and taking advantage of a second chance.

Bankruptcy does allow consumers to start over but it’s not a speedy process. Rather, creditors are paid off which allows consumers to start from scratch but credit is withheld for many years because of the bankruptcy on the consumer’s credit report. The three major credit bureaus – Experian, TransUnion, and Equifax – collect pertinent financial information on consumers; the combination of this information is what is used to determine a consumer’s credit score – the number that lenders use to determine creditworthiness. A bankruptcy on a credit report can significantly inhibit the lines of credit that a consumer may be able to receive. But after a few years, a consumer may be ready for secured credit cards.

Secured credit cards allow consumers to get back into the credit game. They are like traditional credit cards but with the caveat of collateral. The consumer must deposit funds – matching the amount of their line of credit – into a secure savings account held by the lender. Subsequently, should the consumer default on their payments the lender has the option of collecting the funds from the savings account.

Secured credit cards protect the interests of both the lender and the consumer and can effectively be the first baby steps on the road back from bankruptcy.

Popularity: 22% [?]

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There are very few among us who cannot relate to having more bills than we have money to pay them and facing significant challenges when it comes to budgeting our household expenses. The truth is that in many cases salaries are just not able to keep up with the cost of living, and when there is only one salary in a household the challenges can become even more daunting. When we’re dealing with a limited income, but still need a credit line, secured credit cards may be the most appropriate way to go.

Secured credit cards offer consumers a line of credit like any other credit card. The difference is, however, with secured credit cards the consumer must offer collateral that matches the amount of their credit line. So if the consumer would like to have a $1,000 credit line with a particular credit card, they must first deposit $1,000 in cash (sometimes more depending on the lender) into a secured savings account held by the lender.

The collateral used with secured credit cards is meant to protect both the consumer and the lender. In the case of the lender, their interests are protected by the collateral; if the consumer defaults on their payments the lender may choose to access the savings account to cover the total of the loan.

But secured credit cards are also quite beneficial for the cardholders. By using secured credit cards, consumers are able to monitor their spending on credit; with limited income this is especially important in that it could be disastrous to have minimum payments climb to an unmanageable sum. Additionally, secured credit cards offer a foray into the world of credit – in a protected way – and offers consumers who may otherwise have not had the opportunity, a chance to build their credit.

Popularity: 24% [?]

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College is all about getting your feet wet and experimenting with different career choices prior to the start of “real life.” We look for those things that will make us happy, try on different hats, and begin to get a sense of what our place in the world might be after graduation. One of the things that we may begin exploring is our financial selves. Up until this point most of us have largely been supported by our parents, and any credit that we may have would be very minimal.

During this college experience, however, it may be time to begin building our credit so that we are able to navigate freely in the adult world which we are entering. After all, there are rental applications to fill out, cars loans to procure, and even mortgages to seek at some point. And one of the ways that college students can begin to build good credit – without getting out of hand – is through the use of secured credit cards.

Secured credit cards are meant to protect the lender and the consumer equally. They are credit cards that require collateral funds to be deposited into a secured savings account held by the lender; collateral funds that match or exceed the credit limit extended to the consumer. Secured credit cards benefit the lender because it ensures that they will not lose their money even if the consumer defaults on the loan; the lender has the right to recoup the money from the savings account. Conversely, secured credit cards also protect the interest of the consumer in that they do not allow them to rack up too much credit card debt right out of the gate.

Secured credit cards allow consumers to build their credit report slowly and wisely, learn how to budget their money appropriately, and learn their first lesson on the responsible use of credit cards.

Popularity: 24% [?]

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