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Looking for a personal mortgage loan? With the super low mortgage rates and the declining real estate market, you would think that buying a house will be great right now. But wait? now with bad credit, high unemployment, a threat of a second recessionary dip. and an anemic recovery, experts are doubting that the bottom has not fallen yet.

So on top of this there are areas in that are doing much worst for real estate. It all follows the type of economy that the city is dependent on. For example Reno’s dependence on gambling and tourism has seen home prices dropped as much as 50% from its 2006 level, other markets include Vegas, napels, fla, with the expectation that prices can fall even further. (Remember that just a couple of years ago Vegas was promoted as the new retirement spot with great weather, and close gambling and amenities), and Florida’s prices were just booming with excessive speculation.

CNN just reported on how to “crack the code for a perfect credit score” As I mentioned on previous articles, there are lenders looking to lend to bad credit borrowers, but the terms may not be the best. So why not try to fix your credit, manage your debts (instead of declaring bankruptcy and being in years of credit and possibly job limbo).

To summarize the article, Fico the company that produces the Fico Scoring model explains that there are 5 factors that determine your credit score number, which could be the key to great personal loan rates, rather than struggle with bad credit. So here they are: Payment history, the amount you own in your credit lines, length of credit history, how much credit have you applied, and types of accounts.

The article emphasizes payment history as the most important ruler on how your credit score is determined. So there you go.

I recently read a CNN article about the New normals that we will need to get used to with the expectation of a new dip in the economy. Not to mentioned that credit is really tough to obtain, even with good credit. So as the economy growth slows with bad reports in real estate, unemployment, low credit approval , and slowing down on personal and commercial lending, including bad credit loans. We may need to get used to paying things with cash. What?

Well, here are the new normals of the economy: Long term unemployment, with “finding a job” being the daytime occupation. The article further indicates, that with employment close to 10% and little or no hiring from the private sector, this could be the new normal. Another aspects are Renting vs Owning, as experts claim that real estate is no longer the great investment that they a few years ago claim to be, and more expected declines on property prices, people may expect to rent rather than buy a house. More Savings as people opt to save money due to the uncertainty of the economy, and Higher taxes for the rich.

Personal Loans, bad credit or not affect your life, not only because they prevent you to save, but also because it ties you up to a payment plan that does not allow you to grow financially. For most people, it starts with the infamous student loan. Student’s work really hard to get to the school of their choice, but after years of study, and debt, they enter a lackluster job market. Which further ads to debt, and long term payment plans.

Rite of passage like getting your own appartment, getting a job and growing in your career are affected. Students are now opting to moving with their parents, going to state schools, negotiating rates with loan companies and looking for ways to save in college education.

Previously owned U.S. homes sales fell to their lowest point in 15 years with a record drop in July as the economic recovery stalled.

Home sales in June fell by 27.2% with 3.83 million units sold, the lowest since May 1995. (As reported by the AP)

The years of the weak housing market, the end of the tax credit in April, and the high unemployment may indicate that the economy will take more time to recover, or may even dip to another recession.

Not great news…

Cash advance loans are required when someone wants money on urgent basis and don’t have time to fulfill exhaustive paperwork that is usually involved in loan giving services of banks and financial institutions. Quick cash advance loans are undoubtedly perfect solution to get emergency cash but the borrowers have to take special measures such as paying off the loan on appropriate time so as to avoid paying huge interest rates that are imposed on late or irregular payments of the quick advance loans. Cash advance loans are emerging as a popular alternative against loan from banks because one gets instant approval of such loans by the lenders.

Online cash advance loans are drawing attention of more and more borrowers because these loans are provided in a fast and easy manner. One of the most alluring parts of the cash advance loans is that the lenders of such loans do not check the credit history of the borrower and that is why this loan has emerged as a popular alternative for people having bad credit history. Read more of this >>

The difficulties in obtaining a personal loans for people with bad credit can be best understood by those who have suffered with a history of bad credit. Personal loans such as these provides a manner in which they can recover there dignity and improve there overall credit rating.

A personal loan may help you to payoff those smaller debts that seem to keep lingering around that you may have incurred. With this type of program, you can use this loan to do away with those pesky little bills that seem to keep pilling up. If the consumer uses this wisely, they will use this opportunity to get ahead and restore a good credit rating with these types of loans.

People are said to have bad credit when they have defaulted on loans in the past. Auto loan defaults, court judgments, involuntary repossessions, all count against the persons credit history. Read more of this >>

Your ability to qualify for any kind of financing – from credit cards to auto loans to mortgages, depends greatly on credit scoring. Most creditors will draw your credit report to look at your FICO score.

The FICO score will be used to evaluate your qualification for a particular credit line or loan program and to calculate the applicable interest rate. Depending on their specific institutional needs, some lenders may use the highest FICO score or the middle score, or only one FICO credit score if the credit transaction is for a consumer purchase.

For instance, if you were to apply for a house credit card at a department store, they would run your credit profile (with your permission, of course) to obtain a FICO score. On the assumption that the store reports to only one of the three credit bureaus – as most department stores tend to do -, then the inquiry will go only to that bureau. The store would make its decision based on only one bureau’s information, and by using only the one FICO score.

The system works differently for mortgage credit. Banks report to all three credit bureaus (Experian, Equifax and Trans Union), so they would get three different FICO scores, calculated on three credit reports that the credit bureaus sent for scoring by FICO. Since there are three FICO scores, banks generally will use the middle or average FICO score. Depending on the type of financing you are seeking, whether it is for a new car, appliances, a credit card, or a home mortgage, your FICO score makes up a significant portion of the decision-making process. The FICO score will determine the premium rates you pay for insurance and the interest rate available to you on a loan.

Your FICO score is usually a composite of the following: Read more of this >>

#1. – OPEN ACCOUNTS! – I have worked with several people that either had a Bankruptcy or got in trouble with credit cards and canceled them all. They use cash only now, thinking that is the best way to go. Well that is a great way to do things. However not if your trying to get a home loan or any other type of loan. In fact sometimes people don’t even generate a FICO score because they don’t have any credit at all! Thats bad news. You need three active credit accounts, preferably for one year to help your cause. “That means I have to use credit cards again? In the past they ruined me!” Well yea thats pretty much what it means. But lets understand how credit cards and loans effect your FICO score. First of all a FICO score doesn’t look at your job or how much money you make. You could have no debt and a $100,000.00 a year job but if you dont have active accounts, your FICO score may still be low. That means higher interest rates on loans. Here is what you can expect in terms of interest rates in relation to what your FICO score is:

• FICO score:– APR:
• 760-850—– 5.918%
• 700-759—– 6.140%
• 660-699—– 6.424%
• 620-659—– 7.234%
• 580-619—– 8.777%
• 500-579—– 9.670%

Many people aren’t aware that you cant really negotiate the rate much with lenders. That FICO score indicates your risk factor. You may know you can pay your loan but they don’t. When they see a 500 credit score they think there is a huge risk you will default on your loan, Read more of this >>

By now everyone is aware of the Vantage credit scoring system developed by the three major credit bureaus Equifax, Experian and TransUnion that grades consumers on a grading scale of A-F. I have done extensive research but have yet to find out how lenders will use this score or what lenders will choose to use the Vantage score as opposed to the FICO score. Will they be flexible in their analysis and look at the actual score or just look at the grade of A-F.? Unfortunately, no one knows for sure. For now, when applying for a loan ask the lender which credit score they are using.
I recently refinanced my home and the lender used the FICO score. Well, I recently obtained a copy of my credit report and credit scores from the three major credit bureaus, Equifax, Experian and TransUnion. I have not made any late payments in the past 10 years; therefore I expected to get the highest credit score possible or at least very close to it. My scores were 760 and above. When I ordered by Experian credit score I wanted to order a FICO score yet I only had the option of getting a Vantage score. My Experian Vantage score was 819. To my surprise all of these ridiculous reasons were given why my credit scores were not higher:

1. Your report does not show real estate loans – this was incorrect, I have had a mortgage for the past 7 years.
2. Your report shows that available credit across your open revolving accounts is too low – I only have one credit card with a limit of $3,000. They are telling me that if I had more credit cards my score would be higher. Read more of this >>