Finance

Applying For a Credit Card

In this day and age, with creditors more conservative than ever, bad credit repair common and creditors changing interest rates and lowering balances seemingly without notice, applying for credit may seem daunting. These days, some may even eschew credit for cash exclusively, but know that it is vitally important to have some sort of credit available to you, not only for emergencies but also simply for maintaining your credit history. If you don’t maintain your credit history, you may find yourself unable to secure mortgages, seconds, lines of credit… etc. when you really need it and in a situation where you’ll need to be fixing your credit standing. To simplify credit card application, you may consider visiting a site like www.creditcardguide.com to compare major cards. You’ll want to consider things like APR, fees, rewards options… etc. Also, this site and similar sites allow you to apply online directly from their site, which is convenient. Once approved, consider using the credit card, even minimally and pay it off on time each month to establish and maintain your clean credit history. Furthermore, if your credit score is poor, contacting a credit repair services company, like Vitesse Financial, is a great option for credit repair.

Co-signing on a loan for a friend or relative

Co-signing on a loan is a very serious financial commitment that should be heavily considered. Co-signing on a loan means that the original borrower (probably your friend or relative,) was turned down by the lender, therefore the co-signer is responsible for guaranteeing the loan. In other words, if the borrower misses payments or defaults on the loan, it is the cosigner who is responsible for paying the remainder of the loan.

Studies conducted among certain types of lenders revealed that of all the co-signed loans that go to default, as many as three out of four co-signers are required to repay the loan (source: Federal Trade Commission). Furthermore, if the borrower defaults on the loan, the lender will come after you, the co-signer first. Often when the loan goes to collections, this is the first sign of trouble the co-signer sees and it will significantly and negatively impact the co-signers credit standing. So, when you co-signed, you thought you were doing your friend or loved one a favor, but if they default you are looking at bad credit repair for yourself. Not only will you be looking at credit repair, you could be responsible for late fees, have your wages garnished, lose property used as collateral, be sued and finally your relationship with the borrower may be forever damaged.

If you find yourself on the bad end of a co-signer situation with negatives on your credit report, fixing credit should be a priority. You may consider contacting a reputable credit repair services company like Vitesse Financial. Visit our website at www.vitessefinancial.com

Having a Baby Can Lower Your Credit Score

We blog a lot about bad credit repair and the measures consumers take to regain control of their credit but sometimes it’s the little things that count.

When you go to pay your deductible or any hospital costs after baby, think again before reaching for your credit card. A large bill will drastically increase the balance on your credit card, which could lower your credit score because it impacts your “credit utilization,” (a piece of the puzzle that makes up your FICO number.)

Instead, experts agree that you should consider paying with cash, check or if you choose to use a credit card, pay off your card prior to the next reporting cycle. Keep in mind that you’ll want to do some research because billing cycles range in length. Once you get your statement in the mail it’s too late- the balance will probably affect your credit score. Alternatively, you could pay off your credit card the same day you pay the hospital bill. These measures will keep your credit intact, which is important especially for those of you focusing on credit repair. Furthermore, using a “rewards” credit card will double your pleasure, so to speak, because you’ll get a rebate or air miles back. This example illustrates how fixing credit or even maintaining good credit can boil down to what seems like a small decision, and it’s wise to consider all expenditures and how they will impact your credit.