It’s easy to ignore the problems that are created by a low credit rating. Thinking about your credit history isn’t something many people do every day. At some point it will become obvious that the poor credit score is stopping you from moving forward. For most, the moment of understanding comes when it is time to make a big purchase, like purchase a home or a car.
Having a bad credit score makes it very hard to obtain a loan. Even if your score is somewhat decent and you can get approved, your will likely pay much higher interest rates. It may not seem like an additional 2% in interest will result in much, until you do the math. A mere 2% higher interest rate will result in thousands of extra dollars spent.
The first thing that you need to do in order to begin raising your score is to pull copies of your credit files and scores. You can do that by visiting Credit Viper.
Recently I had a good friend call me for some financial advice about credit card debt. I’m not going to try and claim that I’m a certified financial planner, but I’m not afraid to offer my financial opinion. My friend has run into a situation that has become very common place among many Americans, mounting credit card bills. He was specifically wondering if there was an easy way to lower his interest rate and begin paying down the balance after his bank didn’t have any solutions. I suggested taking a friendly approach to financing and brought up peer-to-peer lending.
As all of you know the financial world as we knew it has changed forever. Absolutely there still exists and always will exist a variety of financial products and services to serve consumers and businesses. However, the way banks and financial institutions lend money to businesses and consumers is changing dramatically. Gone are the days of ridiculously high amounts of leverage employed by banks and amazingly excessive levels of risk assumed. If you ever felt it was tough to obtain a loan or LOC from a bank before well you haven’t seen anything yet.
About 9 million existing businesses per year apply for funds from a bank and are denied. One of the only options an existing business had to this point to obtain funds was a merchant cash advance. Many merchant cash advance companies exist and may be willing to advance your business cash based on your credit card sales activity. The problem with these cash advances is that they tend to be very expensive and burdensome for a business. These companies take advantage of customers that are in need of an advance. Up until recently no competition existed for these cash advances that presented a very reasonable cost of financing option.