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A PERSONAL Finance Guide FOR PEOPLE WITH BAD CREDIT HOW IS A CREDIT SCORE DETERMINED? |15% of Credit 30% History Longer credit history can have a positive impact on your score Amounts Owed Having accounts with pending balances lowers your scores 10% 850 Types of Credit Used History of managing different types of credit can improve scores 600 500 35% 10% 300 New Credit Payment History Late payments will cause your credit score to drop Recent inquiries for credit can hurt scores What are my OPTIONS if I have bad credit PAYDAY LOANS How are payday loans used: geYHH 69% SMALL AND SHORT-TERM LOANS usually meant to be repaid with the borrower's next paycheck. PPD O Recurring Expenses (utilities, credit card bills, rent, groceries) 16% C2 O Unexpected Emergency Expenses • Each year, 12 milllon Americans use payday loans. • 5.5 % of adult Americans used payday loans in the 2007-2012 period. 70% of payday loan borrowers have household incomes 8% Special Purchases lower than $40,000 per year. 7% Other / Don't Know Payday loans usually range from $100 to $500 with charges that range from $15 to $100. Requirements $3000 Average payday loan borrower takes out - STEADY INCOME eight loans a year for a total of, ACTIVE CHECKING ACCOUNT - LENDERS ARE REQUIRED TO DISPLAY paying $520 on interest. LOAN AMOUNT, FINANCE CHARGE AND APR (ANNUAL PERCENTAGE RATE). Prepaid cards allow consumers to spend only the money that has been deposited into them. PREPAID CARDS GPR (General Purpose Reloadable) prepaid cards can be used for purchases or ATM withdrawals whenever their issuer brand is accepted. Prepaid Cards are becoming a popular alternative to checking accounts: 2009 2010 2011 2012 2013 2014 :$57 billions $167 billions were loaded into projected to be loaded into prepaid cards by 2014 prepaid cards in 2011 Up until 2009, 9.7% of households have : used prepaid cards. 42% annual growth rate expected for prepaid market from 2010 to 2014. P2P (Рссг-to-Pecr Loans) and are the biggest P2P loan sites. P2P loans have their own risk-rating estimates, terms, and return rates. P2P loan websites MATCH PEOPLE PROSPER ILendingClub that need a loan with individuals that have invested funds for lending purposes Lending Club and Prosper have facilitated the lending of over $1 Billion on 112,000 loans since they were launched Lending Club processes $45 million in loans every month but declines about 90% of all borrower |applications. P2P provides from 5% to 9% return to lenders. Riskier loans can provide up to 31% return. CAR TITLE LOANS Reasonsfor Y29% taking out a car title loan Car maintenance / герair A type of $HORT-TERM SECURED LOAN, in which a 29% car title is used as collateral. Rent or mortgage Credit score is usually not consid- ered, but full auto insurance is normally required. Lenders usu- ally offer up to half of the car's resale value. 15% 29% Delayed payment income or missed paycheck Medical bills 9% Other 19% Utility bill HOW TO IMPROVE YOUR CREDIT SCORE: Pay your bills on time. Check your credit report, it may have errors. Don't get credit cards that you don't need Pay off your debt instead of moving it around Contact your creditors and discuss payment arrangements. Use credit cards responsibly and reduce the amount you owe. REFERENCES YourScore.aspx |BAD CREDIT |LOANS DIRECT © 2012


shared by BadCreditLoansDirect on Aug 24
A good credit history can offer an extensive variety of loans at special rates to purchase anything from a pack of gum to a dream home. On the other hand, having poor credit records can lower the abil...


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