Tips to help you get approved for a Loan

There are many reasons to seek credit; ranging from car loans, to mortgages, to simple payday advances. If you are aiming to get approved for a personal loan, then there are a few steps that you can take in order to improve your odds of success. These include:

 

• Check Your Credit Score. You must know your own strengths and weaknesses in order to apply for the right types of loans, and this means checking your credit score. The three major credit bureaus in the United States are TransUnion, Equifax, and Experian: you can acquire your current score through any of these company’s websites. In addition to giving you a good idea of where you stand, having a credit report will also allow you to report any errors (which are more common than you might think) thus allowing you to boost your score instantly simply by correcting mistaken information.
• Take Steps to Improve Your Credit Score. Knowing your score will give you a good idea of how much funding you should aim to acquire, and at what interest rate you can expect to be given a loan. All the same, you should make an effort to maximize your score in order to maximize your chances of acceptance. Good ways of doing this include making on-time payments, reducing your amount of debt owed, and consistently maintaining a few simple lines of credit (such as credit cards) in order to build a strong financial “reputation.”
• Choose Lenders Wisely. Many payday advance companies and other “easy-approval” lenders are predatory and downright unethical in their lending practices: be sure to research any potential lenders carefully in order to make a choice that truly works for you.
• Consider Your Debt to Income Ratio. The more debt you currently owe, the more difficult it will be to get approved. The higher your income, the easier it will be to get approved. Understanding this dynamic can help you put yourself in the best position to get approved for the loan you need.

 

Reducing debt owed improves your odds of approval! Visit Madison Monroe and Associates online today to learn more about how you can lower the amount of money that you owe quickly and permanently!

 

 

The Hidden Costs of Vehicle Ownership

Owning a car offers freedom, convenience, and maybe even a bit of status. But it also comes with costs -- some of which are not always so obvious at first glance. So when deciding how much you can afford to spend on that new ride, be sure to take in the costs that go beyond the initial sticker price. Here are just a few common factors to consider.

 

• Interest. Keep in mind that, should you finance your vehicle purchase by taking on debt, you will be paying more than just the sticker price that you see advertised. The interest that you pay on such purchases can easily add up to an additional 25% of the cost of the car itself. (Which, of course, depreciates the moment that you drive away with it, which can make selling off a car later in order to get out of debt problematic.)
• Insurance. Driving without insurance is both illegal and financially reckless, so you should calculate monthly insurance payments when considering what kind of car you can afford.
• Maintenance. Vehicles are bound to experience problems from time to time -- be it as simple as a broken windshield wiper or as complex as a blown motor. Because of this, maintenance costs can vary greatly. It’s wise to always be prepared, and maybe even keep a separate maintenance fund for rainy days.
• Paperwork. Keeping title, registration, and any other relevant paperwork for your vehicle up to date is going to require administrative expenses from time to time: be prepared to shell out about 100 bucks per year on this, depending on what kind of vehicle you use and what purposes you use it for.
• Gas. Fuel-efficient cars aren’t popular just because people want to reduce their carbon footprints -- they are also gaining traction because most American households spend upward of two hundred bucks per month on motor fuels.

 

Are you having trouble keeping up on car payments or other important financial responsibilities? If debt has taken control of your life, it is important to understand that you have options. Visit Madison Monroe and Associates online today to learn more about how you can get out of debt quickly and effectively.

Two Major Credit Reporting Agencies Have Been Lying to Consumers

In personal finance, practically everything can turn on one’s credit score. It’s both an indicator of one’s financial past, and the key to accessing necessities—without insane costs—in the future. But on Tuesday, the Consumer Financial Protection Bureau announced that two of the three major credit-reporting agencies responsible for doling out those scores—Equifax and Transunion—have been deceiving and taking advantage of Americans. The Bureau ordered the agencies to pay more than $23 million in fines and restitution.  

In their investigation, the Bureau found that the two agencies had been misrepresenting the scores provided to consumers, telling them that the score reports they received were the same reports that lenders and businesses received, when, in fact, they were not. The investigation also found problems with the way the agencies advertised their products, using promotions that suggested that their credit reports were either free or cost only $1. According to the CFPB the agencies did not properly disclose that after a trial of seven to 30 days, individuals would be enrolled in a full-price subscription, which could total $16 or more per month. The Bureau also found Equifax to be in violation of the Fair Credit Reporting Act, which states that the agencies must provide one free report every 12 months made available at a central site. Before viewing their free report, consumers were forced to view advertisements for Equifax, which is prohibited by law.

That these credit agencies would abuse their power to mislead Americans attempting to take a more active role in monitoring their financial health is not only a violation of trust, it is dangerous.

These agencies—along with a third, Experian—make up the nation’s credit-reporting industry, and, as such, they wield a significant and unique influence over America's’ financial health. Many lenders use only the data from these providers to determine whether someone can get a loan and how much interests he will pay. “Credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them,” said CFPB Director Richard Cordray in a statement. Credit-reporting agencies keep track of an individual’s overall debt picture, how much credit they have access to, and how frequently payments are late, among other things. They then assign a score ranging from 300 to 850, which is consulted before one rents an apartment, gets a loan, opens a credit card, buys a car, or even gets a cellphone.

Much of an individual’s ability to improve his or her finances is predicated on his or her ability to maintain a high credit score. To do that, he or she needs to be able to see accurate credit reports that reflect the information that lenders see when they assess them. The actions of Equifax and Transunion prevented that. And that’s especially troubling because the American credit system is a reinforcing cycle. Good credit often comes from having enough money to pay bills off in a timely manner, which raises one’s score and provides access to more credit at better interest rates. That can amount to tens of thousands of dollars in savings on mortgages, business loans, and credit- card interest. And having good credit means that a person’s score can sustain the decline that comes with lender inquiries for new credit cards or loans, which then gives them access to more credit—and raises their score once again. For Americans with bad credit and little income, the system works in exactly the opposite manner, and leaves people relegated to pricey and predatory options for basic financial needs. In 2010, the CFPB found that 26 million Americans had no credit history, and another 19 million had such limited credit history that they were considered unscorable. These groups were primarily made up of low-income and minority households.


Credit scores and the agencies that provide them have long been a point of contention among consumer advocates, not only because the system further marginalizes those who are already struggling, but also because it offers very limited opportunities to improve one’s financial standing. Even obtaining, understanding, and correcting official credit reports can be tricky, time-consuming, and, in some cases, costly.  As a result, consumer advocates have called for greater accessibility and pushed  alternative credit indicators. That two major providers of score data have been intentionally deceiving Americans confirms what those advocates have been saying all along: This is a deeply dysfunctional system that is hurting the Americans who can least afford it.