What is Credit: A creditable personality is associated with terms like authority, esteem, fame, good standing, reputation etc.
And credit in the financial standing is associated with words like balance, bond, securities, stock, trust, wealth etc.
Why we mention this is that very often a credit mess in finance harms creditability of the persona.
What is Bad Credit: A bad credit will largely be defined by the following: oA F.
I.
C.
O.
score of 620 or lower oTwo (or more) 30 day late payments in the past 12 months oOne or more 60 day late payments in the past 24 months oA foreclosure in the past 24 months oA charge off in the past 24 months oA bankruptcy in the last 60 months oA qualifying debt-to-income ratio of 50% or higher About 10% of all American people have a credit score of 800 or higher.
The average is 710 points and about 10% of the population has a credit score of 575 or less.
A credit score of above 730 is considered excellent and above 700 is considered good.
With a credit score between 670 and 699, lenders will take a closer look at your file before approving or denying you a loan.
With a credit score between 585 and 669 it will be considered a higher risk to grant you a loan.
At below 585 points you might face problems even getting one.
With a credit score under 550 concentrate all your efforts on improving your score first.
Bad Credit Debt Consolidation: Before the advent of credit counseling companies in the early 1980s, people had few options when it came to dealing with debt reduction other than filing for bankruptcy.
Now specialists constantly advise you never to file for bankruptcy.
Credit counseling organizations were set up by credit card companies as a way of getting money from thousands of people who were failing to make their monthly payments due to various reasons like health problems, unemployment, or simply too much debt.
Though they called themselves 'non-profit' organizations, most were working with credit card companies to collect money for the banks from consumers.
Since credit counseling services were backed by the card companies, usually over 50% of the people who started a credit counseling program never completed paying off the debt they owed.
What may happen even now is that many credit counseling services do not reduce the total debt you owe.
Instead they sell unknowing consumers on the concept of just adding up the total monthly payments into one payment.
This may sound appealing but the cost of the subscriptions for credit counseling companies can often be five times higher than the regular monthly minimums.
Most people seeking debt assistance need immediate monthly cash relief.
Their monthly bills are already too high and they need a solution instead of ending up paying for the additional exorbitant interest charges.
Now debt consolidation for bad credit customers is the new mantra with debt arbitrators dealing with their creditors and negotiating for an operational payment strategy.
Well then, the situation is quite different now.
The options are more and the competition bigger.
Here are some of the common features and services offered by the modern day credit counseling agencies: 1.
Consolidate all bills 2.
Immediate relief from creditors 3.
Do not offer a loan.
So no question of qualifying 4.
A non-profit foundation 5.
A reduction of up to 70% through debt negotiation and debt consolidation.
6.
Deal directly with your creditors saving you a lot of hassles.
7.
Promise to make you become debt free in 12 months.
There are numerous sites offering services for debt consolidation that claim to give you 30% to 75% debt reduction.
Avoid the Debt Trap: Debt consolidation as we have seen above does not give you a transparent picture about the costs involved and the final salvation.
Our advice for you is to try not to fall in this debt trap.
Credit cards allow us the opportunity to enjoy our lives first and pay later for just about anything.
We set the highest standards and many a dreams for us as we do not have to pay immediately.
Without having any cash on our hands we make purchases that allow retailers and manufacturers to collect money from the credit card companies.
As a result we end up having multiple credit card accounts and multiple bills to pay each month, but only one income to handle it all.
This income has to spread itself so thin there isn't enough to go around.
This could lead to high stress levels, marital tension, creditor harassment or even bankruptcy.
You can avoid falling into this trap if you really desire so and then you can fully concentrate on how to go on improving your credit score.
Without bad credit you will never need debt consolidation.
***
And credit in the financial standing is associated with words like balance, bond, securities, stock, trust, wealth etc.
Why we mention this is that very often a credit mess in finance harms creditability of the persona.
What is Bad Credit: A bad credit will largely be defined by the following: oA F.
I.
C.
O.
score of 620 or lower oTwo (or more) 30 day late payments in the past 12 months oOne or more 60 day late payments in the past 24 months oA foreclosure in the past 24 months oA charge off in the past 24 months oA bankruptcy in the last 60 months oA qualifying debt-to-income ratio of 50% or higher About 10% of all American people have a credit score of 800 or higher.
The average is 710 points and about 10% of the population has a credit score of 575 or less.
A credit score of above 730 is considered excellent and above 700 is considered good.
With a credit score between 670 and 699, lenders will take a closer look at your file before approving or denying you a loan.
With a credit score between 585 and 669 it will be considered a higher risk to grant you a loan.
At below 585 points you might face problems even getting one.
With a credit score under 550 concentrate all your efforts on improving your score first.
Bad Credit Debt Consolidation: Before the advent of credit counseling companies in the early 1980s, people had few options when it came to dealing with debt reduction other than filing for bankruptcy.
Now specialists constantly advise you never to file for bankruptcy.
Credit counseling organizations were set up by credit card companies as a way of getting money from thousands of people who were failing to make their monthly payments due to various reasons like health problems, unemployment, or simply too much debt.
Though they called themselves 'non-profit' organizations, most were working with credit card companies to collect money for the banks from consumers.
Since credit counseling services were backed by the card companies, usually over 50% of the people who started a credit counseling program never completed paying off the debt they owed.
What may happen even now is that many credit counseling services do not reduce the total debt you owe.
Instead they sell unknowing consumers on the concept of just adding up the total monthly payments into one payment.
This may sound appealing but the cost of the subscriptions for credit counseling companies can often be five times higher than the regular monthly minimums.
Most people seeking debt assistance need immediate monthly cash relief.
Their monthly bills are already too high and they need a solution instead of ending up paying for the additional exorbitant interest charges.
Now debt consolidation for bad credit customers is the new mantra with debt arbitrators dealing with their creditors and negotiating for an operational payment strategy.
Well then, the situation is quite different now.
The options are more and the competition bigger.
Here are some of the common features and services offered by the modern day credit counseling agencies: 1.
Consolidate all bills 2.
Immediate relief from creditors 3.
Do not offer a loan.
So no question of qualifying 4.
A non-profit foundation 5.
A reduction of up to 70% through debt negotiation and debt consolidation.
6.
Deal directly with your creditors saving you a lot of hassles.
7.
Promise to make you become debt free in 12 months.
There are numerous sites offering services for debt consolidation that claim to give you 30% to 75% debt reduction.
Avoid the Debt Trap: Debt consolidation as we have seen above does not give you a transparent picture about the costs involved and the final salvation.
Our advice for you is to try not to fall in this debt trap.
Credit cards allow us the opportunity to enjoy our lives first and pay later for just about anything.
We set the highest standards and many a dreams for us as we do not have to pay immediately.
Without having any cash on our hands we make purchases that allow retailers and manufacturers to collect money from the credit card companies.
As a result we end up having multiple credit card accounts and multiple bills to pay each month, but only one income to handle it all.
This income has to spread itself so thin there isn't enough to go around.
This could lead to high stress levels, marital tension, creditor harassment or even bankruptcy.
You can avoid falling into this trap if you really desire so and then you can fully concentrate on how to go on improving your credit score.
Without bad credit you will never need debt consolidation.
***
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