4 Ways to Get Good Mortgage Rates on a Low Income

Having a low-income does not prevent you from buying a home in today’s market. You can find the property that suits you best for a deal that fits within your budget. Lenders look at more than income when approving a loan, so do not be discouraged and feel like you need to keep renting a home or apartment. 

When searching for properties, you want to use some of the tips mentioned below to ensure you get the best mortgage rate as a low-income buyer.

Research Lenders

You might be surprised at how many lenders accept buyers with low-income. With more options, you don’t have to choose the first offer, and you can find ways to reduce down payment requirements and lower your mortgage rates. 

When completing applications, be sure to put the same information on all applications, including the type of property you are interested in purchasing, the size of the down-payment you can make, and the kind of income you have.

Good Credit Score

Having a low-income does not mean your credit score is low. By managing your bills and making payments on-time, you can find reasonable mortgage rates on a new home. You can request your credit score and history for discounted prices or even free-of-charge (this will vary from person-to-person). 

Go over your debt ratio and see what can be paid down and what accounts you should close. If there are any inaccuracies on your credit report, dispute them immediately.

Public and Private Programs

Some government agencies and private lenders have programs available for low-income buyers. These programs develop criteria that buyers must meet and award loans with reasonable mortgage rates. 

The qualifications vary, but some of the most common requirements include being a first-time buyer, purchasing a specific type of home, such as single-family homes, and the property’s location.

Trusted Real Estate Solutions

Buying a home can present many challenges, especially for low-income buyers. The good news is that there are realty solutions that you can take advantage of to ensure you are getting a great deal on single-family homes, including low mortgage rates. 

The companies will keep you well-informed throughout the purchasing process, from contract requirements, local rules and regulations, and more. A reputable realty solutions company will ensure you have all of the facts you need and go over the best options for you and your family.

The tips above can help you with the buying process and get you one step closer to purchasing a home with a good mortgage rate, even with low-income wages. 

The best advice is to search and use all of the resources available to low-income buyers. Remember to stay positive and enjoy the buying process as much as possible; you only get one chance to buy your first home.

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan

How to Know Which Loan is the Best Choice for You

Unfortunately, life doesn't come without the occasional need for extra cash due to an unexpected expense. It may be a leaky pipe that burst while you were at work, high medical bills or an engine that quits on your car. 

Whatever the emergency, you need money now. The good news is that whether your credit is good or poor, there are many ways to acquire the money through different types of loans. 

In some cases, it depends on what you need the money for, for example, college costs for your kids or a remodeling project.

Poor or No Credit

The hardest part of having no established credit or poor credit due to late or missed payments is that your options are limited when it comes to borrowing money. 

It wasn't too long ago that you either had to borrow from your family or pay extremely high-interest rates through payday loans. Luckily, today there are lenders such as MaxLend.com that base their loans primarily on whether or not you have a job, a checking account and are a citizen. 



This makes it easier to take out a short-term loan with monthly repayment terms, allowing you to take care of the unexpected expense.

A Personal Loan

If you have good credit a personal loan from a bank gives you a way to acquire money to take care of your unexpected expense. This type of loan allows you to borrow $10,000, $20,000 or even $40,000 to cover a major repair. 

Since they are unsecured, there is no collateral required so you won't have to put your home or your car in jeopardy. You can acquire it from either a bank or a credit union and the repayment terms work much in the same manner as a mortgage wherein the payments are fixed and the loan is not open-ended, meaning there's an end date.

Student Loans

The stress of coming up with the money to send a child off to college can take away from their achievements. Luckily there are several ways to acquire the money including a private lender or a federal loan like the Stafford or Perkins. 

The government loans are more popular because there is no collateral needed to acquire them. These loans also have lower interest rates and a deferment period of up to 6 months after your child graduates college before you need to begin repaying the loan. 

Plus, if your child attends multiple schools before graduating, you can consolidate them into a single loan. Private lenders offer student loans as well. Unfortunately, they base their approval on your credit history. 

In most cases, they also have a higher interest rate and there is no subsidizing so you can owe money on a loan before your child actually graduates college. While they do offer deferments, they are limited and less likely.

A Home Repair

If you own a home and have equity in it and need a major repair like a total replumbing job or are in need of a new roof, applying for a home equity loan can help you get the money you need. 

This type of loan allows you to use the equity you have available based on the value of your home in the current market. Since the bank uses your home as collateral the criteria are less stringent than acquiring a personal, unsecured loan so even if you have a few blemishes on your credit report, the chances are better that you will get an approval. 

In addition, other advantages are that the interest rates mirror that of a mortgage, you can borrow a larger amount and since it's a home equity loan some of the interest is tax deductible. 

Another big advantage is that you can use the money however you want to without the need for disclosing it to the bank and thus needing their approval.

Life can throw you curves from time to time. Luckily, whether you have excellent credit or poor credit there are many ways to acquire the funds you need to make necessary repairs, acquire the funds for college or pay off expensive medical bills.

5 Ways a Bad Credit Score Can Hurt Your Career Growth

Do you know how good your credit score is? According to Statistic Brain, only 35% of Americans checked their credit file at all last year, and the national average has plummeted to just 691. Despite that, 90% believe that they have a low or average level of debt - but does it really matter? 

Your credit score doesn't just decide if you can finance that new leather sofa, or if you'll get a good rate on your mortgage application. It can have a big impact on your everyday life, too, and having a bad credit score can even stop you being able to get promoted, or even get a job in the first place. So why does it matter, and what can you do about it?

You Can't Get A Job

According to Forbes, 6 in 10 employers now check the credit of their potential new hires. Failing the check can mean kissing goodbye to the job, even if you excelled at interview. Good credit shows the employer that you're a more responsible person. If your job will involved handling money, valuable items or locking up, it's even more likely to signal the end of the road. Financial gurus like Mark Weinberger are perfect to emulate when looking to get your finances on the right track. 

You Can't Get A Phone Contract

Most jobs will require you to be contactable, which means carrying a phone around with you. The best deals on handsets and air time are offered to contract customers who can afford bigger monthly payments: with poor credit, you are likely to be offered a higher rate, or be rejected completely. A pay-as-you-go phone can seem a good solution, but you are charged much more, so keep calls and texts to a minimum and make sure you've always got credit.

You Can't Get Insured

Whether it's getting to work in the morning or driving around as part of your job, chances are you'll need a vehicle. Not a problem if you can get a good finance deal, and some cheap insurance; but terrible if your credit is shot, or if the company can't insure you on a company car. If transport is essential, your only option is to join a car sharing scheme, or show your bosses that you've researched public transport and don't need to drive.

You Can't Move

Sometimes the best opportunities require sacrifice: including relocating. While the best companies will offer a relocation package and try to help you get on your feet, that's not normally an option unless you already work for the company, and they won't help with contracts. If your credit would stop you from renting or buying a new place, you may have to pass up the promotions and opportunities until its better. 

Solving The Problem

So what can you do if you find your credit score holding you back? Be honest. When you give permission for the check, mention any CCJs, DMPs or finance management. Offer an explanation if you have one, and show how you are trustworthy and reliable.If your credit history doesn't come as a surprise, you are much more likely to get the job.

Credit scores has a much larger impact on our lives than many people believe, so make sure that you aren't receiving the brunt of it for your past financial mistakes. 

How Important is Your Credit Score After 50?

We've all heard that a credit score can be “built over a lifetime and destroyed overnight.” But once you reach 50 and your long-term financial goals are mostly in order – let's say you have a mortgage, a 401k or an IRA, and a healthy emergency fund – how important does your credit score become?

The answer is that while your credit may not seem as important as it did when you were shopping around for your first mortgage years ago, life's full of surprises and you never know when a good credit score may be necessary after 50. 

Here's a few reasons why it's simply a good idea to maintain a solid credit score after you reach the age of 50...

Unforeseen Financial Emergencies

As most Americans are now aware of in the post-Great Recession era, the bottom can fall out on the economy seemingly overnight. It's safe to say that most of us now have our guard up when it comes to the prospect of a financial emergency, which means preparing for the worst and hoping for the best.

With that in mind, a healthy credit score well into your 50's is a valuable asset for you and your family. Mortgage refinancing, credit advances and loans are all relevant to 50-something consumers, but are hard to get done at any age with a bad credit score.

Basically, it's better to be safe than sorry when it comes to credit.

Existing Debt

50-somethings with existing debt can negotiate better interest rates if their score and credit history is still considered good-to-excellent. This is important to both the individual and their heirs in case they pass away, since assets after a person has passed are distributed to beneficiaries only after their debt has been paid off. If the debt outweighs the estate, beneficiaries aren't saddled with the old debt (unless they're a co-signer on any of these outstanding debts), but they do miss out on an inheritance.

This is all to say that an old debt never dies, but unfortunately we do. (Mordbid, I know.) And to prepare for such a situation is to take action while we still have the income, the assets and – most importantly – the time.

Paying down old debt – especially credit card debt – can take a lot of that precious commodity that we call “time”. One way to expedite this process is by negotiating lower rates with your credit card companies; another is to transfer a sizable portion of that debt to a 0 percent credit card applied to balance transfers. Simply apply for a new, 0 percent card, transfer as much of your existing debt to your new card as you see fit, and start paying it down more vigorously to remove as much of that balance as you can during the allotted 0 percent period.

While both of these options allow someone to pay down their debt at a faster rate, they're essentially reserved for good-to-excellent credit consumers. If you want lower rates, you need a good score, which is why it makes sense to maintain a healthy score well into your 50's and beyond.

The Hassle, and The Guilt

The last reason it's important to maintain solid credit and good-standing accounts is the hassle and the guilt that comes with defaulting and paying late, which are what ultimately drive down your credit scores for good.

The incessant phone calls – which you're legally entitled to stop, by the way, as part of the Fair Debt Collection Practices Act – the scary looking letters (you can stop these, too), and let's face it, the hit to your pride. None of that's worth dealing with at any age, especially when you thought your financial woes were long in your rear view mirror.

Look, it doesn't feel “good” to have bad credit and it certainly doesn't feel good to owe money. Maintaining a good credit score is what you've done all your life, so why let go just because you're unsure of it's worth in 50's and beyond?

No one can tell the future, and it's impossible to say when or how a good credit score could come in handy down the road. But it's best to be prepared if the situation arises; you'll sleep better at night in the meantime knowing you – and your family – will be in good shape in case of a credit or finance-related emergency thanks to your lifelong dedication to paying on time and carrying little to no debt.

This post was written by Jason Bushey. Jason is a personal finance expert and you can find his work daily on www.creditnet.com.

Useful Things You Should Know to Boost Your Credit Score

When applying for loans, opening a bank account or even renting out an apartment, your credit report is required. It helps determine whether or not you have the capability to repay the loans that you have taken out. 

Of course these credit companies would like to know if you are a good risk or not. If you have poor ratings on your credit report, there is a lesser chance that your loan will not get approved or you will not get the interest rate that you want. 

More often than not, people with bad credit reports will run the chance of paying loans with high interest rates and shorter payment terms. If you want to improve your credit score, here are some useful things you should know: 

• Get a copy of your credit report from the credit bureaus. It will be difficult to improve your credit score if you don’t know your current standing. Credit reports are given free once each year, but if you want to know your credit score then you have to pay minimal amount for it. FICO credit score is the most commonly used by creditors. There are three credit bureaus that can supply you with this score namely Equifax, Experian and TransUnion. 
• Don’t accept all the pre-approved credit card offers. There are times when you will get this type of credit card offer in your mail and even online. Resist the temptation of responding to these offers because easily approved credit cards can affect your credit score. Whenever there’s an inquiry in on national credit bureaus, points are deducted from your score. Frequent and impulsive checking of your credit score can harm your score. 
• Avoid transferring from one credit card to another. You may think the transferring your balance will not hurt you because you will receive 0% interest rate for a particular period of time. However, it will be much better if you don’t close your old credit card because long-stand credit card will look good in your credit report and may give you a good credit score too. 
• Don’t miss out on due dates. Paying your bills on time and on a regular basis if you want to avoid credit score dings. For every late payment you make on your bills, it depicts a picture that you are not reliable. Keep in mind that a huge chunk of your credit score is based on your payment history. If creditors can see that you are a responsible in paying your bills, it can improve you credit score big time. 
• Raise disputes when necessary. If you see that something is wrong in your credit report, make sure that you dispute it. If you have been a bad person as far as your creditors are concerned, you can get one bad thing out of the report yearly. You just need to be consistent in improving your credit scores. If there are negative notations on your credit report, make sure that you dispute these things. Be patient because it is not easy to remove any negative information on your credit reports. 

About the Author: The article is done by Mackenzie Sulivan, technology, seo and finance copywriter, guest blogger and web developer. She likes covering seo, technology and finance articles and news via online edition. She contributes to this site: 12 Month Loans from eMoneyBuddy.

Common Credit Score Myths Debunked

Credit Scores (Photo credit: i am real estate photographer)

Ahh myths...they are fun but, when they are about financial stability, they can cause quite the stir! With credit scores being more important today than ever before, it is no surprise that myths have started to form as the result of lack of knowledge about this topic. The truth is, most schools don't teach kids about credit cards and credit scores. When it's time to fend for ourselves financially, we try to just learn as we go. In this process, we often times take suggestions offered up by friends when the truth is, they know no more about the topic than we do. Well, today, I am writing this article to debunk the most common credit score myths! 

Myth #1: Will Checking My Credit Score Harm My Credit Scores?

Over time, I've been told by several people that if I check my credit score, it will harm my credit score. The truth is, this is definitely a myth. How is it that you would be able to manage your credit if your score went down every time you went to check it! Although, this myth does have a reasonable explanation. When consumers apply for loans, their credit is checked. As a result of this check, the credit score will be decreased. However, the decreases are small and consumers would have to apply for a few loans at a time to notice any huge changes. The bottom line is, negative changes as the result of a credit check only happen if the check is requested by a third party for the purpose of issuing credit. 

Myth #2: Is Closing My Credit Card A Bad Idea?

It is a widely thought idea that closing a credit card is a bad idea. But, is this always the case? This idea is a MYTH! Although it's not always a good idea to close a credit card, it's not always necessarily a bad idea either. There are many factors that determine your credit score. One of the factors is the average amount of time your credit cards have been opened. Therefore, every time you open a new credit card, the average time goes down and it causes a minor ding. But, if you open a new credit card and find out it's not something you enjoy, it's probably a good idea to close it, considering you have other accounts that have been opened for a while. As a matter of fact, in this case, it shouldn't do the slightest bit of damage and may have a positive impact. 

Myth #3: Are Lenders Willing To Help Consumers Through Rough Times?

It is a common misconception that lenders are evil corporations that don't care about us little guys. Without us little guys, the credit card companies would have absolutely nothing. So, even if they don't care about anything but the bottom line, it's in their best interest to help us out from time to time. As a matter of fact, many lenders have opened up financial hardship departments to provide a helping hand when needed. Learn more about credit card hardship programs here in an article I recently wrote for Top Finance Blog! 

Final Thoughts

When it comes to something so incredibly important as your credit score, it's important to believe nothing you hear without research. The truth is, if you are afraid to check your credit score, it's unlikely that you will build an excellent one. If you don't understand how closing a credit card may or may not change your score, it will be hard to manage reasonable amounts of debt and lines of credit. Finally, if you are afraid to ask your lender for assistance in the midst of hard times, you will find harder times to come in most financial hardship situations. This is why doing your research is so important!

About The Author, Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance writer. This article was inspired by Joshua's most recent work, “How Long Does It Take To Improve Your Credit Score”. Join the discussion about credit scores or any personal finance topic of your choice on Google+!

Why a Credit Score Still Means Something at 50+

Credit Scores (Photo credit: i am real estate photographer)

There are many consumers of fifty years of age and over whose credit scores have been damaged in recent years by the fickle financial climate. On average however, those of us who are over 50 still have better credit scores on average than many. As we head into our retirement years though, it’s possible to become a little complacent about our credit ratings. We are debt free and not interested in borrowing any more, so what’s the big deal if our credit score “ ain't what it used to be?” Well, the truth is, it does matter, and for some very specific reasons you may not have thought of. 

We Should Still Be Diligent About Identity Theft

Though great measures have been incorporated into our society in order to prevent identity theft, it still occurs. The fact is, as vendors and lenders implement strategies to combat identity theft, thieves exert as much energy into figuring out how to get around them. Almost 10% of American households have at least one member who has fallen victim to this heinous crime, which continues to increase. (US Bureau of Justice)

Monitoring our credit reports and credit scores on a regular basis is an effective means of protecting ourselves against identity theft. If we check our credit report on a regular basis there is a greater chance of catching any irregular transactions before they can do much harm. Look for any new accounts that you did not open, credit card transactions, even loan applications that are not of your doing. Even an increase in the number of inquiries can expose fraudsters trying to open accounts in your name.

The Possibility of Medical Emergencies

As we get older there is a greater chance of us becoming ill. Maintaining a healthy credit score will ensure that we can get the loan we need if saddled with huge medical expenses. Many accounts that are in collection are there because of unpaid medical bills, in fact it is one of the most common reasons for debt. Our insurance may not cover everything, and it is comforting to know that the funds we may need for ourselves or our loved ones will be available if we need them.

Take Advantage of Better Insurance Rates

Many of us who are over 50 still need to pay auto and home insurance. There is a 2:1 chance that our insurer uses our credit score in determining how much they charge us and what discounts we qualify for. The higher our credit score is, the better our chance of receiving the best possible rates, savings we can put towards our retirement and the amenities we’d like to go with it! 

Better Employment Opportunities

Unfortunately many people over 50 have been forced to return to work in recent years. Anyone in that position needs every advantage they can get, and a good credit score is an ace to have up your sleeve. Many employers factor an applicants credit score into their decision making progress of who to hire. They feel a good credit score is an indication of responsibility and reliability. Though they need your permission to view it, refusing them access could lead them to believe you have something to hide, even if that’s not true. Consequently your chances of securing a senior position, or employment in general, could be jeopardized.

Though we may be over 50, it doesn’t pay to be complacent about something that affects so many different areas of our lives. Paying attention to our credit scores can save us embarrassment, hardship, and most of all, money!

5 Tips to Restoring a Bad Credit Score

Good credit can open the door to many things, such as a nice home, a brand new vehicle, and furniture and electronics to furnish your home. It also allows you the opportunity to save money. However, bad credit keeps the door close to owning a home and saving money. Bad credit is a stain on many people’s credit reports that prevents them from obtaining many things.

Many people find themselves in a situation with bad credit due to a number of reasons, a loss of job, poorly paid jobs, lack of education, overspending, divorce, too many credit cards or debtors, health issues, etc. The list is long as to why many people find themselves in credit disarray. But there is a way to get out of the bad debt hole, and it’s by repairing your credit.

Credit repair can be a very long and complicated process that requires discipline and self-motivation. It also involves a basic and dramatic change in your spending habits. Many people can repair their credit by doing a number of things.

The first thing you can do is to obtain a copy of your credit report from the three major credit bureaus - Contact Transunion, Equifax, and Experian. Make sure you get a copy from all three of them. Often one of the bureaus will have information that the other one doesn’t. If you have recently been denied credit for whatever reason, you can obtain a free copy from each bureau. You can also sign up for a free trial with AnnualCreditRepair.com to view your credit report and credit score.

Carefully examine your credit reports for any inaccurate information. If you notice something that is not correct or current, contact the credit bureaus by mail to dispute the charges.

Contact the creditors listed on the report and try to arrange a payment plan. Most of them will work with you on a payment plan in order to pay the debt off. Many will offer a settlement, which will allow you to pay off the debt for an agreed upon amount that is a lot lower than the original debt amount. Make sure you get any settlement down in writing. Keep up your end of the settlement by setting up automatic payments. This will ensure that the exact payments are made to the creditors on-time. Before you agree to a payment plan, make sure you can make the payments.

Contact a free credit counseling credit debt management service to help you manage your bills, pay your creditors, and resolve your credit problems. Many people seek the assistance of companies like Advantage Credit Counseling Service to help them stay focus on repairing their credit and maintaining their improved credit. Advantage Credit Counseling Service offers free counseling for those who need to get out of debt.

Try changing your spending habits. Reevaluate your needs and wants. Look into downsizing to help reduce your budget. Carefully keep track of what you’re spending to see what things can be reduced or even eliminated. Focus on the long-term benefits of establishing and restoring your credit, and approach credit repair as a lifestyle change instead of a temporary fix.