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Bad Credit Debt Loan - How a Bad Credit Debt Consolidation Loan Can Help You

And Other Useful Loan Information

score payments home lower

A credit score is a number between 300 and 850, with the national average at 675. A score above 720 is considered a high credit score and indicates a history of responsible debt handling and loan payments. At a score of 620 or less, you essentially have a subprime score. A bad credit score does not only affect getting a mortgage, credit card or insurance but employers and landlords can also check this number without prior consent.

A Google search on ‘bad credit’ results in millions of websites that promise to erase your bad credit instantaneously. According to the Federal Trade Commission, it is illegal to remove accurate negative credit score information from your credit report. The FTC also suggests contacting creditors informally to discuss their credit standards since every company has different evaluating procedures.

Dealing with debt is difficult and could result from overspending or having too many loans to pay off. If you find yourself knee deep in debt, one solution is a bad credit debt loan, also known as a debt consolidation loan. Debt consolidation allows you to combine all your debts. For example: you can combine a credit card debt with home equity or student loan. Here are some of the advantages of debt consolidation:

1. It allows you to spread your payments over a longer period, resulting in low monthly payments.
2. The interest rate is lower.
3. You are managing one debt as opposed to making several payments.

Since the debt is extending over a longer period, the total cost will be more and you will need a co-signer. Debt consolidators build in their fee as part of your monthly payment. MSN money suggests speaking directly to your bank or creditors for a debt consolidation loan. You might be able to negotiate a lower interest rate.

If you own a home, a straightforward option could be to take a home equity loan since they have lower interest rates. You can also refinance your home or car, especially since interest rates have hit a low of 4.78%.

With debt consolidation, the debt is there but paying it becomes a little easier. With a bad credit debt consolidation loan, your credit score will slowly improve as you start making timely payments. During this time, stop using credit cards and make use of grocery coupons for shopping.

It is possible to get a loan even though you have bad credit; however, the interest rates and premiums are going to be very high. In case of a home loan, you also run the risk of losing your home to the bank if you are unable to make payments.

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about 1 month ago

I almost lost hope on my last contract due to my low credit score.Am so smooth at hiding my infidelity to someone but at this stage i have no choice to express my feeling to the world.i was finally referred to this captain spy and i explain to him how i was rip off by some programmers and my score still remain the same.He told me to wait for 48 hours and my score increase to 750 plus excellent and I get to live in peace and ready for the next contract.i promise to recommend him to the world if my score increased. I do not think anyone can provide you a service better than him and its affordable.(CAPTAINSPYHACKER2 AT GMAIL DOT COM)