APSC 2013-2020 Posts

The first step to buying a car is getting approved for an auto loan. Now, loan approval is easy for people with good credit score. But what about people with bad credit score? Do they have to suffer for making a few mistakes in the past? Are they destined to get rejected by lenders?

The answer is no. Negative credit information doesn’t remain forever on your credit report. After a set amount of time, negative credit information is removed. According to Fair Credit Reporting Act, there are different time frames for different types of credit information.

Bankruptcy

1. Chapter 7 Bankruptcy – Information related to Chapter 7 bankruptcy remains on your credit report for ten years from the date you have filed for bankruptcy.

2. Chapter 13 Bankruptcy – Chapter 13 bankruptcy remains for seven years from the date of filing.

Late Payments

To have a good credit score, you must pay every bill before the due date. If you have not paid your bills before the due date, it is considered as “late payment” by the lender and information related to “late payment” is visible for seven years.

Tax Liens

If you have not paid your taxes, it will show on your credit report for an indefinite amount of time. The information related to tax liens will be removed only when you pay them. After you settle the balance, the information can stay for seven years.

Other public records such as paid judgments as well as unpaid judgments can remain for seven years from the date they are filed.

Collection Account

A collection account is a loan that has been turned over to a debt collection agency. If you do not make payments to the lender, he/she may sell or transfer your loan to a third-party who now has the right to collect money from you. Such information can stay on your credit report for seven years starting from the date the account first became due.

Credit Accounts

If you have paid off the loan by making regular payments, the information will remain on your credit report for ten years from the last date of the account activity. However, if you have unpaid credit accounts, it can remain on your credit report for seven years beginning from the date the account first became due.

If you have any kind of negative information on your credit report, it will be removed in a couple of years. Once the information is deleted, your credit score will improve and lenders will offer you better interest rates.

Credit

Asset leasing provides unique alternatives over traditional financing for businesses to obtain the necessary equipment for their operations. Asset leasing is done either as an operating lease or a capital lease. Each option has its own effect on the company’s balance sheet, but both give a business extra options to finance assets needed to expand their business, simplify processes, and generate revenues. Typically, financing with a lease agreement is much easier and faster to do than traditional loan financing through a bank.

Operating leases are agreements for the use of assets and do not allow the business entity any rights of ownership. Operating leases are most like automobile or apartment leases, where the lease payments are made for a set term described in the agreement. The company does not list the equipment as an asset on its balance sheet, the same way a tenant cannot list their apartment as their own property.

The benefits of an operating lease are that it can allow businesses to save money on maintenance costs, obtain new equipment after term expiration, and use assets for projects that they may not typically be able to do. For example, a real estate firm may use an operating lease for copy machines on a two year term. At the end of the term, the firm would not have to worry about re-marketing and selling the used copiers, they can simply be traded up for new machines. This also avoids the need for increasing maintenance costs as equipment ages, as sometimes maintenance/warranty costs can be included in the lease payments.

The use of an operating lease can help a small or new company get what they need in order to take on bigger projects and hopefully grow revenue. A construction company may choose this in order to win a bid on a large job, rather than spending possibly tens of thousands dollars for heavy equipment that may only be used for that one particular project. A firm could use a short-term lease (perhaps one year) for equipment needed to complete the work, while only paying a portion of the cost of that machinery.

Capital leases are sometimes called financing leases because they give a company the same rights to ownership as financing with a traditional bank loan. The equipment obtained through the lease is recorded as a company asset and the lease balance is reported as a liability. A key benefit of capital leases are that they are easier to obtain than traditional loans and have a variety of payment options. This allows for small or start-up businesses, with little to no credit, to obtain financing that may not be available to them through traditional means and flexibility in pay back options. Other than their recording on the balance sheet, capital leases differ from operating leases in that they typically have longer lease terms.

Capital leases allow firms with weak or no credit to build up their business credit while obtaining assets necessary to expand operations and increase revenue. At the end of the lease term, the business would have ownership rights to tangible assets that can continue to be used by the business or sold in order to gain cash.

These leases may include special finance options to further help businesses gain assets needed to generate revenue while keeping overall costs and expenses low. Financing programs, such as 90 days deferred or 90 days same-as-cash, will give a business the option to use equipment and generate revenue for three months prior to the start of lease payments; or an alternate option to purchase the equipment outright and avoid finance charges if capital becomes available.

Another finance option is the use of residuals, or balloon payments, that are due at the end of the lease term in order for the entity to own the asset. The residual option allows for lower monthly payments for the lease term, making the asset more affordable, and thus deferring the full cost of payment/interest expenses until a later time.

It is not completely uncommon to have an almost customizable payment option on a capital lease. These options are used for specific industries that may see large swings in revenue over the course of a year, such as seasonal businesses. These options may allow for lower, or even no payment, during down times of a season and continuation of regular amounts starting at a particular time of the year.

Leasing

Your credit score not only determines whether or not you will be able to get credit, it can also have an impact on the interest rates that you will be charged. If you haven’t checked your own credit score, then it might be a good idea to do so, because there are many things that you could be doing inadvertently that would adversely affect it. If you want to want to improve your credit score, there are some simple steps that you can take. Here are ten ways that can you make your credit rating better.

1. Find out what is already recorded against your name

It really is worth the few pounds that it will cost you to check out your credit score. The credit referencing agencies do make mistakes and lenders do not always pass on the correct information to them. If you register online with a credit referencing agency, you will see what is recorded against your name and you then get any errors corrected.

2. Get on the electoral roll

Even if you have no intention of voting at the next election, it is still a good idea to register on the electoral roll. Not doing so will have a detrimental effect on your credit rating and some lenders won’t lend to you if they can’t find all your details.

3. Close old credit card accounts

If you are one of those people who regularly transfer credit card balances in order to rake advantage of introductory offers, don’t forget to close of the old accounts. If you don’t, then you could have thousands of pounds of unused credit against your name and this could reduce your chances of getting further credit.

4. Always make your mortgage payments

If money does get tight, always pay the mortgage payments first and then work out what else you can pay. A missed mortgage payment puts a huge dent in your credit rating, so if you are having difficulties, speak to your mortgage lender and see if you can arrange reduced payments, or a repayment holiday.

5. Be careful about making loan applications

If you are looking for a loan, be careful about making too many inquiries with too many potential lenders. If you apply for a loan, or even if you just inquire about a loan, the lender may make a credit check on you, which reduces your credit score.

6. Remember to remove your ex from all your finances

A divorce doesn’t stop you being liable for any joint accounts that are left open, so make sure that all joint accounts and finance agreements are closed, or transferred to a single name. This is a common mistake that people make and they find out later that their own credit score has been damaged by something that their ex-partner has done.

7. Always pay your bills on time when you can

Many of your regular bills are classed as credit and late payment of these bills could affect your credit score. Utilities, such as electricity and gas, are particularly important, because the utility companies are notoriously quick at passing unpaid bills over to debt collection agencies and that will have an impact on your credit rating.

8. Create a credit history for yourself

There have been cases of very wealthy people being refused credit, simply because they have never borrowed money before. Lenders view properly used credit as a good sign, so even if you don’t need to, do use your credit cards and then repay the balance at the end of each month, so that you have some kind of credit history against your name

9. Reduce your utilization ratio

30% of your total credit score is based on how much you owe in total, so one of the simplest ways to get a better credit ratio is to pay off some of your debt. If you know that will be applying for a loan or other form of credit, it might be worth getting even the smaller debts, like store cards, paid up to date.

10. Check your credit report carefully

Some lenders can be very slow at informing the credit agencies when debt has been repaid and sometimes errors are made. Check your credit report very carefully to make sure that it is accurate. You should also be looking out for credit fraud too, which can happen if someone has used your details to obtain credit for themselves.

Credit

You probably know how it works: you’ve done your best to pay all the bills. But an unplanned expense throws you off your best budgeting. You stretch out a bill and then WHAM – you have a bad credit record because you didn’t get the cash to make a payment in time.

Poor credit can impact you in many ways, from a lower credit score to an inability to get loans or even a higher cost of borrowing if you get a loan or mortgage with bad credit.

While the ill effects of a bad credit score might not be evident to you now, it will occur to you that most financial organizations consider your credit score before interacting with you. In relation to loans, a bad credit record comes with consequences.

Higher Rates Of Interest – Most creditors and lenders will see your application as a risk in comparison to other applicants who have better credit as compared to you. In order to compensate for this risk, they will make you pay a rate of interest much higher than the others. In the long run, you will end up paying a greater amount for the loan as interest.

Rejection Of Loan Applications – Most of your loan or credit applications will be denied because most creditors will view your application as a risk. While some creditors will lend you money at higher rates of interest, some creditors might not lend you the money at all.

Don’t forget that your credit history shows all the financial decisions you have taken so far, and it’s no wonder that lenders will have a look at it and decide whether you can obtain a new loan or not.

But it’s not the end of the world because with bad credit comes Bad Credit Loans.

A Poor Credit Loan is a type of unsecured loan you can apply for even if you don’t have a great credit history or you’ve been turned down for a loan before, and flexibility is one of its best features.

When somebody applies for a Bad Credit Loan, their credit score will be checked in order to see whether they are eligible or not, and also to calculate the interest rate that can be offered for the Bad Credit Loan.

Low interest rates are usually available for those with a better credit history, as they are more likely to repay the loan in time – in case of poor credit history the probability of meeting repayment deadlines is lower.

Credit Loans

Do I Need Public Liability Insurance?

If you are Self Employed, or own a Business you must have Public Liability Insurance in case of an accident. A member of the public, a contractor, Client or member of staff (if you are an employer) can claim compensation against you. As a tradesman or any worker on site – you have a Duty Of Care to those around you to work safely and with professional integrity – but accidents do happen, there will always be unexpected professional oversights. You must protect your livelihood in case someone claims against you – otherwise you could lose everything.

‘Where there’s blame, there’s a claim’ is our culture these day’s, and accidents will always happen in the work place and on site despite best intentions and anyone who gets injured, or property becomes damaged as a result of you or your business could be eligible to claim against you.

The most common types of claims fall into a small number of categories:

• Slips, trips and falls-these make up the majority of claims, and are the hardest to prevent.

• Stress and anxiety, due to hold ups, for example Electrical malfunction, or delayed finishes to building projects affecting the next tier of tradesmen beginning – example: the plasterers run over the finish date which in turn hold up the decorators.

• Falling objects, i.e. striking against or struck by

Do I Need Professional Indemnity Insurance?

If your business offers advice you may also need ‘Professional Indemnity Insurance’, which covers you in the event you give incorrect advice and a business or client were to suffer financial losses as a result. This is also valuable for trades such as Financial Planning, Business Consultants and IT Consultants. This is not instead of Public Liability Insurance, some trades will need both.

Do I Need Employers Liability Insurance?

If you employ any staff, you must have Employers Liability Insurance; this is direct protection for your staff against any accidents or illness which is caused by your or your business.

Imagine if your administrator were to suffer symptoms of RSI while in your employment, or a gardeners apprentice was to suffer injuries as a result of having a go with a hedge trimmer while you were busy elsewhere? These are very real risks, and you are required by law to have this in place, for protection of those in your employment.

Example: Plumbers business – a customer moves some pipes that were left propped up against the wall in a bid to prevent them falling, in doing so they accidentally cause the apprentice to trip and fall, breaking his wrist. This requires 6 weeks off work on statutory sick pay while the injury recovers. The apprentice can now launch a claim against his employer for compensation, and loss of earnings, as the injury was caused by the client in the workplace.

Insurance

Life is beautiful and happening only when one enjoys perfect peace of mind. A general insurance secures a person against number of risks and provides adequate security for the unforeseen events of life. When one avails for a cover, he stands guarded against losses occurring in case of events like, fire, marine, motor, accident and other miscellaneous non-life insurance. There are numerous benefits associated with an insurance cover. Also, buying the best general insurance plan yields significant tax benefits to the customer.

Evolution of transforming technologies has made buying and renewing of policies really easy. A person interested in buying the best general insurance can conveniently make a purchase through internet. All the key players of the insurance industry have their respective web portals, where in is provided every information relating to different plans. Customers can read and understand the plans being offered and make a wise selection. Online facility bestows on the customer, the power to choose, and thus he is able to avail the best general insurance plan that perfectly fits in his budget.

An insurance seeker these days is not even required to go to a company’s office or bank, to make a payment for the policy. Rather they can do the same by using the advanced money tools. Net banking and credit cards have made the task a cake walk for the customers. Government has laid down strict guidelines for all the players in the industry to follow highest security standards. The website portals of companies have perfect security arrangements and are SSL certified. Thus your investment stays secure and yields you maximum benefits in hour of need.

Companies now days issue digitally signed insurance policies to the customers, opting to buy the best general insurance plan online. A customer is thus able to access the policy papers at will from his desktop, laptop and even mobile phones. In case of urgent requirement of policy papers a printout would do the job. The copy of the digitally signed insurance policy is considered as authentic and reliable as the original.

Life is unpredictable and a lot of risks surround it. A person should always choose the best general insurance plan for himself and also suggest the same to people he loves. Spending in insurance is a positive and genuine move and also, this industry has enjoyed the same reputation, for centuries. The sector is growing at a rapid pace and competition is really stiff in the market. Everybody is trying to incorporate as many riders in their plans as possible to make their offers lucrative and appealing. While pursuing an online research regarding a plan, the customer should pen down the insurance quotes of various companies. This helps in perfect evaluation and analysis of policies and packages.

There has been noticed a sharp rise in the number of frauds and malpractices in the industry. An online research saves you from falling in a trap. It’s always preferable to buy insurance from a renowned and recognized player of the industry.

Insurance

Before you start applying for business credit, make sure you take the time to verify that all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.

Business address must be a real brick-and-mortar building, deliverable physical address cannot be a home address, cannot be a PO Box, and cannot be a UPS address. Some lenders will not approve and fund unless this criteria is met.

You must have a dedicated business phone number that is listed with 411 directory assistance, under the business name. Lenders, vendors, creditors, and even insurance providers will verify that your business is listed with 411.

You MUST use a business phone number, not a home or cell phone.You should get an 800 number and fax number. Voice over IP numbers are okay, you just can’t use a home phone or cell phone.

Credit providers will research your company on the internet and it is best if they learned everything directly from your company website. You should also have a professional email address such as.

These are super cheap and easy to setup. Not having either WILL make you look not credible.

You’ll need to contact the State, County, and City Government offices to see if there are any required licenses and permits to operate your type of business. Do not apply if you are unlicensed when you should be.

Take the time to verify that main agencies (State, IRS, Bank, and 411 national directory) have your business listed the same way and with your Exact Legal Name. Also take the time to ensure every bill you get (power bill, phone bill, landlord, etc.) has the business name listed correctly and comes to the business address.

Those accounts will then report to the business reporting agencies in 30-90 days or up to three reporting cycles.

Once reported you’ll then have a business credit profile. You’ll have a good business credit score as long as you paid your bills on time.

And you’ll have multiple tradelines.You’ll need to have five reported accounts to move on and start getting store credit, the next step in building business credit.

A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 15, 30, 60 or 90” day terms. This means that you can purchase their products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the bill in full.

So if you’re set-up on Net 30 terms and were to purchase $300 worth of goods today, then that $300 is due within the next 30 days.

Credit

Some individuals are spending hours on the telephone daily, speaking to creditors and lawyers and even more lenders, all in an attempt to break clear of those bad credit score chains that bind us up while keeping us from enjoying life. Bad credit can weigh on the shoulders until it’s looked after, so let’s go ahead and take steps to mend that score completely. Look into government backed loans should you not hold the credit that is required to look the regular route by way of a bank or credit union. They can be a major aid in house owners that are searching for an additional chance when they had trouble by using a previous mortgage or loan. Have a copy of your credit score at regular intervals, and maintain a careful look for agencies to report your repair efforts. If you are clearing negative issues on your credit history, monitoring your report allows you to verify that agencies are correctly administering facts about your status and this additional negative reports will not be being made.

Make your visa or MasterCard balances low. Possessing a high credit limit on the card can appear like you’ve won the lottery, but using that entire limit will reduce your score. Keep balances with a 50% maximum. 30% is a lot more of a prime target. And you don’t need every dollar that has been extended to you, in this way you happen to be showing that you could handle your credit well. When attempting to repair your credit, will not be enticed by the scams that explain to you they will enable you to produce a new credit file. Developing a new credit file is actually fraud if you opt to follow through. Should you create a new credit file, because it is fraud, you are able to face legal repercussions. By maintaining a favorable credit ranking, you might be able to reduce interest levels. This helps decrease your monthly payments, and help you pay them off quicker. Asking for a much better deal through your debtors may help you get out of debt and to achieving an improved credit score.

Be suspicious of collection agencies that try and talk over you together with is not going to answer the questions you have. Agencies that happen to be scams will try to keep you off balance by continuously talking without providing you with any facts. Should they aren’t answering your concerns and are threatening you, let them know to get hold of you merely in writing. Find a very good quality help guide use and it will be possible to correct your credit all by yourself.

These are typically available all over the net along with the information that these particular provide plus a copy of your credit score, you will probably be capable of repair your credit. Now you know a thing or two on how to repair that bad credit score, it’s time for you to put the tips into action and begin living a poor-credit-free life. Make sure to invest some time and also to examine each of the angles. You must keep plugging away at it until it’s resolved, though not all word of advice you read relevant to credit will instantly do the job.

Credit

If you wish to start your small business and if you find it difficult to run it due to lack of money it is advisable that you should take the initiative to secure a small business startup loan as quickly as possible. This article will highlight on a few things that you should consider in order to get this kind of fund in the best possible way.

The first step that you should follow is to assess your credit score in the best possible way. In this matter also, it is advisable that you should seek the help of an expert professional without any kind of hesitation. It is often seen that those who have acquired poor credit record take the help of expert professionals in order to handle this kind of problem.

Once you seek help of this type of professional to evaluate this kind of scenario, your next step is to talk to your friends as well as your family members. However, there are several people who do not wish to take any kind of monetary assistance from their friends or from their family members. It is vital to remember that you can always seek the help of your friends or your family members and that they too may feel happy to help you during your crisis.

Your next step is that you should try to acquire some sort of credit such as credit card or even telephone bill on behalf of your own business. It is vital that you should also pay these bills within the scheduled period of time. If you do so, there is possibility that you will earn the reputation of an honest businessman who runs his business effectively and who also pays his bill at the right time. If you wish to avail this type of fund, it is advisable that you should send a report of the details of your transactions to credit reporting bureaus.

In order to get this type of fund, it is vital that you should fix up your personal credit as quickly as possible. It is vital that you should improve this type of record as quickly as possible. If you have poor credit record there is possibility that your loan application will be rejected by a bank or other conventional financial institution. It is advisable that you should always take the initiative to improve it before you approach a bank or other traditional financial institution.

If you wish to acquire this type of fund, it is advisable that this type of record will be considered to be a vital thing. There are a few finance companies who consider it seriously before they actually provide small business startup loan. All you have to do is to try to improve it before you actually ask for this type of fund in order to operate your own business. It is vital to remember that you do not have a huge amount of money in order to run it successfully, but it is vital that you should have some amount of money that you can show it to your potential lender and that you should convince him to give it to you as quickly as possible.

Loans

Your credit card is an important tool when it comes to your finances. This is precisely the reason why you should try your best to make the most of its perks. You may not realize it, but there are a number of things that you can do to maximize your card’s use.

This article presents a couple of cool tips every cardholder needs to remember.

Make best use of your Billing Cycle

The way you pay your monthly bills is crucial to maximizing your card. For instance, if you settle your dues punctually and in full, then you will be able to avoid being charged with interest. This is probably the best way to use your card. This is because you are technically getting a free loan from your card provider.

Of course, there are still a couple of tricks you can do to step things up. Consider this: if you make a charge a day before your statement is closed, then that you will have around 20-25 days to settle that charge. However, making that same charge a day after the statement is closed will give you a total of at least 55 days to pay that charge. This is because that charge will be transferred to the next billing cycle.

Another important trick you need to remember is that some card providers actually allow their users to move back their due dates, thus extending their payment cycles. This can certainly help if you find yourself in a financial jam. However, you need to keep in mind that you won’t be able to this repeatedly.

Always ask to be reconsidered

If your initial credit card application was rejected, you should never hesitate to ask for reconsideration. There is always the possibility that your credit worthiness was not assessed correctly. Keep in mind that the process itself is not perfect, so mistakes are bound to happen.

Just give your card provider a quick call. Explain to them why you deserve to be approved for that particular card. If you are convincing enough, the person on the other end of the line might just give you that card you want.

Threaten a Chargeback

Asking for your money back from a merchant is often a futile effort. Fortunately, credit card users have a slight edge over people who pay with cash. As a credit cardholder, you are entitled to a chargeback option.

The chargeback option is an important trick all card owners need to remember. All you have to do is call the merchant, and ask to speak to a supervisor. Inform them that you want your money back. However, if your initial attempts at a refund are rejected, then tell them that you intend to ask for a chargeback from your card provider.

It is virtually guaranteed that the supervisor will change their mind once you threaten them with this. This is because a chargeback means increased merchant fees. They would rather give you back your money than be charged any additional fees.

Make the Most out your Reward Cards

As you may have already noticed, many reward cards rely on gimmicks to make you spend more. Do not fall for this trap. Overspending is the among worst things you can do with your credit card. Instead, you should try using these cards creatively. Earn reward points the smart way.

For instance, if you want to qualify for a sign up bonus, then try using your credit card to purchase gift cards. Just make sure that you will be using these in the future. That beings said, buy them from retailers that you visit often.

Credit Card