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How Are Hard Money Loans Different From Traditional Loans?

Hard money loans are different from traditional loans in several ways. For instance, while a person may be able to repay a traditional loan in as many as thirty years, hard money loans typically have a repayment plan of about 3 years or less. 

There are several benefits of a hard money loan that may make borrowers prefer it to traditional loans. For instance, even if you do not have a very good credit score, you may still qualify for a hard money loan, experts say. While traditional lenders depend largely on a person’s credit score to approve their loan applications, hard money lenders may not be so particular about credit scores.

Types Of Hard Money Loans

Hard money loans come with different kinds of financing options, some of which include:

1. Transactional Loans

This type of loan offers short-term capital to investors. They are a quick and easy alternative to traditional loans. The entire process of getting a transactional loan is fast, making it possible for investors to get a loan in as little as one business day. These loans are designed to provide investors with short-term capital so they can quickly close deals. 

What Kind Of Investors Need Transactional Loans?

Transactional loans are certainly not the best kind of loans for every situation, however, there are situations for which these types of loans are the best. These loans are most ideal for investors who have found buyers willing to pay a lot higher for a property than its price. In this type of situation, an investor could purchase the property using a transactional loan and then sell it to the buyer. The investor would then pay off the loan using the proceeds from the sale and keep the difference as profit. These types of transactions are done very quickly.

Benefits Of Transactional loans

Transactional loans can benefit an investor in several ways, some of which include:

2. Bridge Loans

As the name implies, bridge loans are given to investors to bridge a period between two transactions, such as transactions involving buying a property and selling off the same property. The bridging industry has evolved immensely in the past decade. Today bridge loans are taken by businesses and individuals who need quick approval for real estate financing. When managed wisely, bridge loans can help investors create a lot of profit in very little time. It takes about a week to process this type of loan

What Kind Of Investors Need Bridge Loans

Many investors benefit immensely from bridge loans. Whether for managing rental properties, or fixing and flipping, bridge loans come in very handy. House flipping is growing increasingly popular as a great investment, as it yields good returns on investment; this has made bridge loans even more popular. 

Advantages Of Bridge Loans

These are a few reasons why you should choose bridge loans over other types of loans.

3. Rental Loan

This type of loan is available for people looking to buy real estate for rent. Rental loans are typically tailored to the unique needs of each investor whether veteran or a newcomer to the industry. 

What Kind Of Investors Need Rental Loans

This loan is best suited for people looking to jump into the highly lucrative business of buying properties for rent. This type of investment needs a lot of capital both for the purchase and rehabilitation of properties and rental loans are a great way to get this capital.

Benefits Of Rental Loans

What Is Credit Repair?

Credit repair is the process of disputing errors on your credit report to improve your credit score. The goal is to get the negative items removed from your report, giving you a better chance of being approved for loans and other forms of credit.

It becomes easier to get approved for a mortgage, car loan, or credit card when you have a good credit report. You may also be able to get a lower interest rate on those loans. A bad credit report can lead to you being denied credit altogether or paying high-interest rates. The good thing is that credit repair companies can help you fix your credit. They will work to ensure that your credit report is accurate and up-to-date.

What Do Credit Repair Companies Do?

It is wise to know that credit repair companies will work to dispute any errors on your credit report. They have experience dealing with the credit bureaus and know how to get the negative items removed from your report. This can be a long process, but it is worth it in the end.

One of the main things that credit repair companies will do is help you build a good credit history. This includes helping you to establish a solid payment history and increasing your credit score. They can also help you learn how to use credit wisely to don't damage your credit score again in the future.

So, if you have a bad credit report, you can seek these companies out for help. They will work to correct the errors on your report and help you rebuild your credit. It may take some time, but it is worth it in the end. What you are required to do is be patient and follow the instructions of the credit repair company. They know what they are doing, so you can trust them with your credit file.

How Much Does Credit Repair Cost?

Many individuals who want to repair their credit always have this question in mind - how much does credit repair cost? This question may vary, as each company has its pricing structure. However, the average fee for credit repair is around $99 per month. This price usually includes all of the services you will need to improve your credit score.

If you are on a tight budget, you may want to consider a credit repair company that offers a payment plan. This will allow you to pay for the services over time, making the repair more affordable for you.

What To Consider When Choosing A Credit Repair Company

When choosing a credit repair company, there are a few things you will want to keep in mind. First, make sure that the company is reputable and has experience repairing credit reports. This is to ensure that you are dealing with a company that knows what they are doing, and they can repair your credit as required.

You will also want to ensure that the company offers a money-back guarantee. While this is not assured in many companies, it can give you some peace of mind that you will get your money back if the services do not meet your expectations. However, it is essential to read the terms and conditions of the guarantee before you sign up for the services.

Lastly, make sure that the company offers a payment plan if needed. This will allow you to spread out the cost of the services over time, making it more affordable for you. This is especially so if you are working with a tight budget.

Credit repair companies can be a great help when fixing your credit report and increasing your credit score. If you are considering using their services, make sure that you do your research first to find the best company for you.

Can You Clean Up Your Credit For Free?

You can do some things on your own to clean up your credit for free. This includes reviewing your credit report regularly and disputing any errors that you find. You can also start building a good credit history by making on-time payments each month. However, if you have the worst credit and it seems like you have tried everything, then you may want to consider using the services of a credit repair company.

Credit repair companies can be beneficial in fixing your credit report and increasing your credit score. They have experience dealing with the credit bureaus and know how to get the negative items removed from your report. But it is worth it in the end. So, if you are considering using their services, make sure to do your research first to find the best company for you.

Your car is probably one of the most valuable possessions you own and one of the most expensive. And sometimes, you just need a little extra cash. Taking out a logbook loan on your car is a great way to free up your finances. 

What Is A Logbook Loan? 

A logbook loan is a new way of releasing finance on your car. Just like a mortgage, a logbook loan means that your vehicle is used as a form of collateral for your chosen loan amount. If you’re strapped for cash and you need to free up your finances, you can use a logbook loan to release money from your car without having to surrender your keys. 

How Do Logbook Loans Work? 

If you have been struggling to find and take out a loan in other ways, a logbook loan could be the answer you have been looking for. According to LoanOnYourCar.com, “The trade value of your car will determine the maximum value of the loan, therefore the more your car is worth, the more you can borrow against it.”

Once you have your loan, you can repay it back in monthly instalments that are manageable for you. Repayments can be made anywhere from 1 month to 3 years. What’s more, you can keep driving the kids to school, taking your car to work, and picking up the groceries. Basically, you can use your car in the same way you always did while enjoying the freedom of more finance. 

The 3 Benefits Of A Logbook Loan 

So, now that you know what a logbook loan is and how it works, what are the benefits? Not all loans are created equal and the type of loan you take out will depend on your individual circumstances and what you deem the best decision for your family. To help inform your decision, we have listed the benefits of logbook loans below. 

1. Bad Credit History Doesn’t Matter

For many people looking to take out a loan, there is the worry about bad credit history. So many people are rejected for loans due to the state of their credit history. However, when it comes to logbook loans, bad credit history doesn’t matter. All you need to take out a logbook loan is proof that you are the legal owner of the vehicle. Having a bad credit history doesn’t stop you from taking out a loan in this case, making it a great way to raise funds when you need them. Of course, it is important to be realistic about whether or not you can keep up with the loan repayments. However, if you feel confident this is something you can manage, logbook loans could be the answer to your financial difficulties. 

2. Raise Funds Fast 

Depending on the value of your car, with a logbook loan, you could borrow up to £50,000 in cash. Just imagine what a difference that could make to your financial situation. Whether you need a new washing machine or you need funds to finish your extension or pay your kids way through university, a logbook loan lets you take out money on the value of your car and make monthly repayments that are manageable for you. 

3. You Can Choose A Reputable Company

Loan companies tend to have a bad reputation. And sometimes, when you’re desperate for cash, it can be tempting to go for whichever company will accept you (despite their reputation or the extortionate interest rates they charge). Sadly, hasty and panicked decisions like these can often result in worsening financial situations. With logbook loan companies, your credit score doesn’t matter so you have the pick of the crop. As the choice is yours, you should always choose a company that is reputable and sets out its terms and conditions clearly. After all, you don’t want to get caught out making extortionate monthly repayments just because you didn’t read the small print. Reputable logbook loan companies share all of their information on their website and are upfront about the credit arrangement, repayments, interest rates, and more. 

Is A Logbook Loan Right For Me? 

You may be asking yourself whether a logbook loan is right for you. And that’s a good question to ask yourself. Freeing up your finances is a wonderful thing to do, but not at the expense of your financial security. That’s why, before entering into a loan of any kind, it is important to do your research and seek advice from an expert. 

If you are still unsure whether a logbook loan is right for you, we have listed a couple of questions you can ask yourself to help shed some light on the decision. 

If You Can’t Make The Repayments

In the UK, around 12 million people struggle with loan repayments. If repayments can’t be made collateral must be claimed and in the case of a logbook loan, that collateral is your car. Missing a repayment is a risk that anyone takes on when they take out a loan, whether it be a loan on their property or their car. 

That’s why it is so important to consider whether a logbook loan is the right option for you and carefully work out your finances and whether you can afford the monthly repayments over a set period of time. Taking the time to work these things out will ensure you make the most of your loan and don’t get yourself in further financial trouble. 

Top tip: be reassured that most companies will only do this if you have fallen behind on several repayments over a set period of time. A default notice must be provided to you by law, allowing you a 14 day notice period during which you can make up any missed payments. 

Final Words 

I hope you have found this article useful. If you are looking to free up your finances, releasing cash from your car in the form of a logbook loan is one of the best ways to do so.

There are many sources of financing for an e-commerce business. If you have been diligent about savings, you can use that. The other option is to borrow from family and friends. However, there are instances when you may need business financing. You can get money from bank loans and credit lines. And, there is also the option of inventory financing, which we will explore in more detail below.

Understanding Inventory Financing

Lenders give inventory financing to help business owners buy inventory. It is a secured short-term loan or line of credit. The e-commerce owner uses current or future inventory as collateral. Inventory financing can be a lifesaver for a business that does not have enough cash flow. The lenders use specific criteria to determine who qualifies for the financing. Such include:

Do note, the financing company may run a business credit check. The credit score will determine whether you qualify for financing. It also impacts how much interest the lender will charge. It is important to monitor the scores to check for inaccuracies or inconsistencies. Such include wrongful assigning of credit accounts to you. You can also identify incorrect credit debts on your account. Look out for misspelling of names and other critical information. Leaving such on the report can result in lower credit scores. 

Some companies offer credit repair management services to identify and correct such errors. Asking help from professionals when you don’t know how to proceed is the best way to go. They’ll know all the requirements and procedures to rectify mistakes.

However, a bad credit score may not always impact the ability to qualify for inventory financing. The inventory is their collateral. It gives them some form of security for the money they lend out.

Why Inventory Financing is A Good Idea

E-commerce owners get advantages from inventory financing in several ways. These include:-

The main advantage of inventory lines of credit is that the waiting time is short. Within a few days, you know whether you have qualified or not. That means you can apply when you need to take advantage of market opportunities.

Disadvantages Of Inventory Financing

Inventory financing can save the business in critical times. But there are some disadvantages to such loans. These are:

Types Of Inventory Financing For E-Commerce Owners

Let’s look at the different types of inventory financing for e-commerce owners:

1. Inventory Loans

A lender gives an inventory loan based on the inventory value. The lender fixes a repayment period and the monthly amount the borrower needs to pay. There is also the option of lump-sum payment after the sale of the items.

2.  Inventory Lines Of Credit

Inventory lines of credit differ from loans in that the borrower can get money on an ongoing basis. It means the business can handle any unforeseen expenses. The other advantage is you can establish long-term funding with the financing company.

3. Debt Financing

The e-commerce owner can sell his debts to investors or individuals. You then agree on repayment terms for the principal amount and interest. Please note, whether you sell the stock or not, the creditors will expect the payments.

4. Work-In-Process Financing

Work-in-process (WIP) provides financing during the manufacturing process. The lender pays the supplier directly. There is a downside though. Getting a loan for the final product will need you to pay the WIP loan first. The lender will also have a very active role in the manufacturing process. They keep a close watch on every step because they need to know their money is safe. Some suppliers may not be very comfortable with the arrangement.

Final Thoughts

Inventory financing brings many benefits for e-commerce businesses. It allows for stock replenishment when you need to. Such financing can be the lifeline you need during peak times. You maximise the existing business potential by ensuring you have the product when you need it most. There are also inventory financing options, as we have highlighted above. Do assess your business needs before committing to any loans. Also, shop around for lenders, looking at their terms and policies.

Finally, make sure you make the payments so that it does not impact your credit. A poor credit score can impact your ability to get financing in the future. Lenders who will be willing to give you money will charge high interest rates. Keep checking your credit reports for any errors. Get the help of credit repair management service providers. They will track and correct such mistakes.

Tradelines can be an excellent way of improving your credit score and ameliorating your overall financial position. However, this can only be achieved if you choose the right tradeline with the best tradeline company for your needs. The process of selecting a great tradeline company can be difficult, especially when you consider the wide range of companies to choose from and the extensive collection of information available to you. However, finding the right tradeline company for you is far from impossible – you simply need to know what to look out for. 

 1. Credit Limits

Most tradelines will have credit limits, whether they are $10,000, $15,000 or $25,000. This is an important consideration to keep in mind when choosing a tradeline company. If you anticipate that you’ll need to use a significant amount of credit to make major purchases, then you need a tradeline that will allow you to do so. Be sure to take a look at the credit limits of all the tradeline companies you’re researching. 

 2. Reviews

Since tradelines significantly impact your financial standing, you want to ensure you work with a tradeline company that is reputable. You tell if an enterprise has a high level of reputability by checking out its reviews. Reading reviews from previous customers allows you to gain insight into the experiences other people have had with this company. You’ll be able to see if people favour the company, what flaws they have pointed out, and as a result, you’ll have a better chance at gauging if the company is a good fit for you. There are many sites that allow you to read and cross-reference reviews of multiple tradeline companies. On these sites, you can find a Superior Tradelines review and compare it to a Coast Tradelines review to see which organisation comes out on top for your needs.

 3. Level of Experience

Ideally, you’d like to buy a tradeline from a knowledgeable company with plenty of experience buying and selling tradelines. As a general rule, it is advisable to work with a credit supply organisation with 10 or more years of experience. This will ensure that you’re working with seasoned specialists who know how to manage unexpected issues related to your tradeline and

4. Customer Support

Take an in-depth look at the customer service offerings of each organisation you’re considering. Do they have chatbots on their website that can help answer some FAQs? Do they have a support phone number or email that you can contact at any time?

There are several steps you can take to improve your credit score – and buying a tradeline with a reliable and trustworthy company is one of them. Although finding an organisation like this may seem like a tall task, it can be easier than you expect. As long as you put these four criteria at the forefront of your search, you’ll ensure that you pick the right tradeline company for your circumstance.

What Exactly Is An Unconventional Personal Loan?

Unconventional personal loans like the old school personal loan allow you to borrow a certain amount of money at a fixed interest rate. You will have to pay back the amount along with the interest within a decided time period. The money that you have borrowed from the lender can then be used for any personal reason including purchases, medical use, car purchasing, home repairing, etc.

But what is the difference between a traditional personal loan and an unconventional personal loan? There are two key factors you should take into consideration. Firstly, the lenders for this unconventional loan are not the usual lenders, they are usually marketplace lenders, private lenders or lenders backed by the government. Secondly, different factors are taken into consideration for qualifying for this loan. These different factors make those people eligible for the loan who otherwise would not qualify for the traditional loans.

What Are The Types Of Unconventional Loans?

Unconventional loans have been specifically designed to cater to people who have low or moderate-income, and people who are unable to pay big down payments for a house. They are usually backed by the government and require no or very low down payment with low-interest value. Here are the different types of unconventional loans you can get:

FHA

This type of loan allows you to buy a house with a very low down payment. The interest rate offered is low compared to the conventional value but some other amounts have to be paid. This program asks you to pay an insurance premium as an upfront value and a monthly fee as well apart from the monthly instalment of the loan. The credit score limit for its eligibility is lower as compared to conventional loans.

HUD Section 148

This program has been specifically designed for Native Americans with no minimum limit of credit scores. They are asked to pay an upfront value along with a monthly insurance fee. The interest rate is very low making it an easier option for a loan.

VA Home Loan

For you to be eligible to get this loan you need to be in service. This loan has been designed for military personnel and members of the National Guard to build up a home for their family. This loan allows you to purchase a home without any down payment. The only money that you have to give is the VA funding fee. Usually, there is no minimum credit score limit to get the loan.

USDA

This loan has been designed for people who are on a moderate or low income and are looking forward to purchasing a home in a USDA designated rural area. With this loan, you do not have to pay any down payment and get complete financing at a reasonable interest. You have to pay a guarantee fee which includes an upfront value and monthly insurance fees.

Why And When Is An Unconventional Personal Loan Beneficial?

An unconventional personal loan is the only way to get the best personal loan if you are not eligible to get a traditional bank loan. You can undergo situations in which you need money but you cannot qualify for conventional loans, in such situations unconventional is the best way to get a loan to suffice your needs.
Most of the unconventional loans come with no collateral. This means you do not have to have any personal belongings at risk to get the money. These unconventional loans come with no or very low down payment making it a very easy choice for the majority of low or moderate-income people. Having an unconventional loan can also improve your credit score as these unconventional lenders report about the loan activity to the credit bureaus which help to build up your loan history and improve your credit score.

Cons Of Unconventional Personal Loans

The biggest drawback associated with unconventional loans is that you cannot receive a huge cash sum. With this loan, you will be able to meet only limited expenses. If you are looking forward to getting a big house or making a big purchase, then this loan is not for you. Most of the unconventional lenders are online which means you cannot establish any relationship with the lender which sometimes is necessary to discuss your issues and requirements. Moreover, in most cases, you are not guaranteed the lowest APR.

In A Nutshell

An unconventional personal loan is a great opportunity for those who are looking forward to borrowing money but cannot meet the criterion of the conventional lenders. There are many pros associated with it and will be very beneficial for you. However, all is not good for an unconventional loan and you might have to look into it to get the best loan out of it.

This is according to research carried out by YouGov on behalf of specialist lender, Pepper Money. The research identified and questioned 600 people who have experienced credit problems, including missed payments, CCJs, defaults, unsecured arrears and secured arrears, in the last three years.

It found that 44% of adults who have experienced adverse credit said they would select a broker based on existing relationships while just over a third (36%) said they would ask for recommendations from family and friends.

Paul Adams, Sales Director at Pepper Money, says: “Our programme of research has shown that there is considerable demand for mortgages from people who have experienced credit blips in the last three years, and many of those people have concerns about having an application declined.

“This presents opportunity for brokers to promote the services they offer to potential clients and, with half of customers in these circumstances saying that they would use online research to find a broker, it’s clear that brokers can benefit from working on their online presence.”

Danny Belton, Head of Lender Relationships at Legal & General Mortgage Club says: “It is no surprise that in today’s world, potential customers start their search online to find an adviser. However, the fact that these customers are seeking advice from an adviser is very encouraging. This demonstrates the need for advisers to make themselves more visible online, and to stay close enough to existing customers so that they can be recommended to friends and family that may need their help.”

If possible, you may be better off minimizing the amount that you borrow until your credit score shows signs of improvement. Unfortunately, this is not always an option for people who find themselves in times of unexpected financial strain, and absolutely need a loan.

This is where direct lender installment loans for bad credit come into play. With these types of loans, a lender may be more likely to approve your loan given your credit score, but they may come with higher interest rates or fees.

Here are some other types of loans that may provide assistance if you find yourself in an unexpected financial crisis and have bad credit.

1. VA Home Loan

A VA home loan is a program designed to help veterans become homeowners. Although the VA does not supply the loan, they act as a co-signer for the veteran. This enables the veteran to obtain a guaranteed amount and interest rate regardless of having bad credit.

2. Secured Personal Loans

Having a secured personal loan means you have collateral that equals the amount that you borrow and that the lender can seize if a default should occur by you. Examples of personal loans include auto loan and mortgages.

In some instances, you may obtain a secured personal loan through a bank, online lenders, or credit unions, where the borrower borrows against a personal asset such as savings or an automobile. These loan types tend to carry lower interest rates compared to unsecured loans due to the lower risk involved.

3. Fixed-Rate Loans

Having a fixed-rate loan when you have bad credit may require you to make a down payment to secure the amount of your loan and rate. Having a fixed-rate loan is perfect for having monthly payments made that are consistent. This loan type also allows you to budget better thus helping you to change your spending habits and improving your bad credit.

4. Variable-Rate Loans

A variable-rate loan carries an interest rate that is tied to a bank rate called benchmark. As a benchmark rate fluctuates, your loan rate, total interest, and payment amount also fluctuates.

A benefit of a variable-rate loan includes an APR that is usually lower than what a fixed-rate loan has. Another benefit includes a possible cap on the rate and the number of times it can change over a certain amount of time as well as the amount of time of the loan.

It can make sense to have a variable-rate loan if your term is short-term because the rates could become higher, but may stay the same if the loan is short-term.

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5. Debt Consolidation Loans

A debt consolidation loan gathers all of your debts into one combined loan. This type of loan usually has an APR that is lower so that you are able to save money because of the interest. When you consolidate you simplify all of your debts payments by creating only one payment per month.

6. Co-Sign Loans

A co-sign loan specifically targets borrowers with bad or no credit history who would not be approved if they applied alone. When a co-signer is used they act as a promise that the loan will be paid in accordance with the terms and amount if the borrower is unable to.

When a co-signer is used and their credit is strong then your chances for qualifying improve thus allowing you to secure loan terms that are favorable and a rate that is lower.

7. Personal Line of Credit

When you obtain a line of credit you have revolving credit which acts like a credit card. So instead of getting a cash loan, you have a credit amount that you borrow from whenever the need arises. You then make payments only on the amount that is borrowed.

This loan type works best for when you have times of emergency or for expenses that are ongoing, instead of an expense that is one-time.

8. Payday Loans

Another type of unsecured loan is a payday loan, which is normally repaid on a borrower’s payday. Payday loans are designed for convenient repayment because in some instances, they can be repaid by simply having a borrower’s predated check deposited. The loan amounts can be low and average around a couple of hundred dollars.

In this article, we provide some tips that could help improve your credit score, allowing you to easily qualify for a car loan or personal loan. So, without wasting any time, let's look at some tips on how you can improve your credit score.

Rectify the mistakes from your credit report

There is no doubt that sometimes incorrect information does severe damage to your credit score. So, you must carefully check your credit report to see if there are any mistakes in it. We recommend checking the report at least once a year because your credit score is profoundly affected by the information found on your credit report. Make sure that you get these problems resolved promptly; otherwise your credit score will be severely affected by these errors.

You may consult your national credit bureau, like the Credit Bureau Singapore (CBS), if you want to report the accuracy of any item of information like overdue balances, previous inquiries, and account status. The credit bureau will highlight in your report that the following information is under investigation.

Pay bills on time

A missed credit card bill payment is a dangerous element that damages your credit score in the long run. It will take a lot of time to improve your credit score if there are any missed payments in your report. Banks and other financial institutions will evaluate the risk by carefully analyzing your credit card payments. So, if you want to maintain a high credit rating, you must pay your credit card balances in full every month.

Multiple New Credit Applications Are Also A Threat

The eligibility criteria and requirements are different for every bank. Therefore, we cannot state a particular number of new applications that may harm your credit score. However, your credit score will be severely affected if you've applied for many new credit facilities in a very short period.

Keep Your Credit Active

The lender will also check if you're a responsible user of credit or not. So, if you're not utilizing your credit cards after paying off all your credit card bills, it may have an adverse impact on your credit rating. You must regularly build a history of on-time repayments by using your credit cards after a specific period. The regular use of credit has a significant impact on your reputation.

Keep it Simple

Managing credit is not a problem at all. All you need to do is to keep things simple and smooth. Here are a few habits you must follow in the long run if you want to maintain a good credit score:

Building your credit health is entirely in your control. So, consistency is key. With the tips below you’ll have no problem pushing your score right back up.

Nearly half (43%) of homeowners aren’t aware of all the steps in their mortgage process.

Dilpreet Bhagrath answers some of the most-searched-for questions about mortgages, to help both current and potential homeowners prepare for any potential obstacles in the mortgage process.

  1. What happens if your mortgage lender goes bust?

Don’t panic. There will be a process in place to protect you.

Contact your lender as soon as possible to ask for their advice on the next steps with your mortgage. In some instances, they’ll continue to honour the product until the end of your mortgage term, with the help of another lender who might purchase their portfolio of mortgage loans. In most cases, the terms of your mortgage agreement won’t change.

In the case of the recent acquisition of Tesco’s mortgage book by Lloyds Banking Group, once the accounts have been transferred over, customers’ mortgage terms will remain as they were with Tesco. This should give customers peace of mind that their mortgage is being proactively looked after whether they’re partway through their mortgage or coming to the end of the term.

  1. What happens to your mortgage when you move house? 

If you’re moving to a new home, you might be able to take your mortgage deal with you. Simply ask your lender about the process of ‘porting’ your mortgage arrangement.

During this process, the lender will need to value the new property to see if they’re happy to lend on it. If the new property is larger, it's likely you’ll have to borrow more (known as a 'top-up'), and you’ll have to prove to your lender that you can afford the higher repayments using your income, outgoings and other payments. It’s important to remember that the ‘top-up’ will be based on the mortgage deals available from the lender at the time, not on the same interest rate as your current deal.

Should they decline your request to borrow extra money, you’ll need to pay the early repayment charge on your current mortgage and find a new lender to finance your new home. It’s worth speaking to a mortgage broker to find the most suitable outcome for your personal circumstances.

  1. Can you get a mortgage if you’re self-employed? 

There are 4.85 million self-employed workers in the UK. It’s estimated this number will rise to 5.5 million by 2022.

While it can seem like a trickier process, self-employed people can still successfully apply for a mortgage.

Make sure you’re prepared with at least two to three years’ of financial documents as this is the amount some lenders will require. Keep your personal and professional bank accounts separate, and registering for the electoral roll can help lenders to confirm your identity.

As always, it’s to consider any personal and future circumstances when securing a mortgage and seek professional advice to ensure you're aware of the options.

  1. Can you get a mortgage if you have bad credit? 

All lenders will conduct a credit check when you apply for a mortgage with them. Many people will assume that if they have a poor credit rating, they won’t be able to get a mortgage. But that’s not always the case.

There may be options out there. It’s important to remember that some credit issues carry less weight than others. Factors including how much bad credit you have and how long it’s been since the incident occurred will all contribute to whether the lender approves your application.

Some high street lenders will consider offering you a mortgage deal if they consider your credit issues as small.

It’s worth being aware that the mortgage deals available to those with bad credit will often have higher rates and fees, and they may require a larger deposit.

Speak to a mortgage broker to discuss the options available to you based on your situation.

  1. Can you get a mortgage if you have an overdraft? 

It’s possible to get a mortgage with an overdraft, but your debt-to-income ratio will be taken into account. This includes the portion of your monthly income that goes towards paying credit card bills, loans and student finance. This is assessed to ensure that you’re not financially overstretched and can afford your monthly mortgage repayments.

If you’re actively using your bank’s overdraft or paying one-off, this will also be taken into account during the mortgage application. When lenders assess your monthly income and outgoings, any money used to pay off the overdraft will be accounted for.

Taking out a personal loan in the run-up to applying for a mortgage will impact your affordability assessment as these repayment costs will also have to be considered by the lender. It’s also advisable to cancel any unused credit cards before you apply for a mortgage, as lenders look at the amount of credit available to you, not the amount you actually owe.

 

Buying a home is one of the biggest financial and emotional commitments someone will make in their lifetime. Speak to a mortgage broker to discuss what options are available to you and lead you through the process. 

For more information on mortgage complications or costs, head over to https://trussle.com/blog/ for advice and tips.

 

 

A good credit score provides you with so many benefits, such as reasonable interest rates, faster loan approvals, and suitable insurance policies. Nearly 70 million Americans are suffering from bad credit because repairing your credit requires a lot of time and self-control. So, what is the best way to improve your credit score in no time? The answer is simple – buy a tradeline.

But, in order to understand how to improve your credit score by using a tradeline, you need to understand the term “tradeline” first.

What are tradelines?

A tradeline is basically any account appearing on your credit report. A tradeline keeps a record of creditor’s information to calculate his credit report. You can mutually benefit from someone with positive credit history and improve your credit score if he adds you as an authorized user (AU).

Most people ask their family and friends to add them as their AU, but if you want a quick improvement to your credit score, you can add users with exceptional credit history as an authorized user. These AU provide positive data regarding:

Fair Isaac Corporation (FICO) places a credit score in 5 different grades.

Buying 2-3 seasoned tradeline can help you jump to a 720-850 credit score in a month.

What will a tradeline help you achieve?

A tradeline helps you improve your credit score so it will reap all the benefits a good credit score enables you to achieve. Without a good credit score, you will have limited access and services of your credit card, loan plan, and a higher rate of mortgages. In short, you will have to end up paying more money than usual.

But good tradelines on your account will help you achieve a credit score of 750 or higher in no time. When you buy an authorized tradeline from someone like Personal Tradelines, you are added as an AU to one of their credit card accounts, and it takes only 25-30 days to get your credit up to a good score.

Common mistakes people make when buying Tradelines

·         Having no idea of how tradelines work

The most common mistake people do is buy a tradeline without having the slightest idea of how it works. I recommend that you read all about tradelines and their types before actually committing to buying one. You can also get help and information from tradelines vendors.

·         Buying tradelines in hopes that it will unfreeze their accounts

Tradelines work by adding positive information to your account. If you have fraud alerts or credit freezes on your account, buying a tradeline will not work as new information can’t be posted on your credit report.

·         Understanding the age factor of tradelines

The effectiveness of a tradeline is always going to be relative to how old your own account is and what is in your credit file. For example, if you have a 10-year-old account, an 8-year-old tradeline would not have much impact on it. However, if the account is only 1-2 years old, an 8-year-old tradeline would do wonders in increasing your credit score.

·         Not having an idea of how credit score works

Before buying tradelines, it is vital to know how a credit score impacts your general lifestyle. Because even if you are successful at getting a good credit score after buying tradelines; you will have to follow a particular set of rules to maintain it.

·         Going cheap

Some people go for 4-5 cheap tradelines instead of buying 2-3 seasoned tradelines. It ends up costing you more money, and you are better off buying seasoned or authorized tradelines rather than a lot of cheap tradelines.

Also, a cheap tradeline will not have that much positive effect on your credit report as they don’t have good age. This works against the goal of improving your credit score exponentially.

·         Buying tradelines for shady companies

Unfortunately, there are a lot of companies that are selling tradelines, and it is tough to trust someone random. It is essential to do a background check on a company which includes customer reviews, their ratings, and some money-back guarantee to make that you are getting the best service possible.

It is essential that you improve your credit score prior to applying for a mortgage in order to boost your chances of getting one.

Here are a few ways that you can bump up your credit rating with the help from Howells Solicitors:

  1. Pay Your Monthly Bills on Time

The first, and most obvious, point to make would be to start paying your bills on time, or in advance. This is one of the biggest contributing factors to getting a good credit rating. Paying your bills late will give your bank a reason to tell everyone that you’re not trustworthy enough to lend money to, and therefore bring your score down.

  1. Pay Your Phone Bill

Again, not too far away from point one but your monthly phone bill contributes heavily to your credit score. While it may only be £20/30 a month, ensure that there is enough money in your bank to pay this.

Usually, network providers give you a few days’ notice if the payment does not go through as they are aware that there could be a number of contributing factors (closed bank, new bank, fraud, etc.), but you should realistically always leave enough money in your account to pay this by direct debit. The smoother the transaction goes, the higher the rating gets.

  1. Use Your Credit Card

If you don’t have a credit card, then it might be worth getting one. If you make small purchases on your credit card and pay them back on time, or before the due date, it shows your bank that you’re reliable and can pay back things on time.

Think of it this way; would you be more likely to lend money to someone that has no history of paying things back, so you have no idea whether you’ll get the money back or not, or more likely to lend money to someone that you know has a great history of paying people back on time?

  1. Sign-Up to Credit Updates

You should sign-up to a free credit report checker, such as Experian, which sends you monthly emails. This way, you will be made aware of any changes and can dispute any errors that have been made that reflects your credit in a bad light, however there is no need to run multiple, full credit checks

  1. Close Unused Accounts

Closing any unused bank accounts can improve your credit score. If you opened a bank account back in the day, and you haven’t touched it since, then take the money out that is currently in there and close the account. If you have more than one credit card, then you should consolidate the debt on just one.

For further information on whether your credit score will affect your chances of getting a mortgage, or further information on how you can improve your credit score, check out this FAQ Series by Howells Solicitors, or contact the team for guidance using the contact form on their website.

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