Your Guide to Credit and Personal Finance

It’s surprising how many borrowers apply for a mortgage after a bankruptcy discharge without taking any steps to repair the damage done from their bankruptcy. It’s very, very unlikely that a borrower will be able to obtain a mortgage without taking some credit improvement steps first. The bankruptcy laws do eliminate or reduce your debt, and get creditors off your back. But, they do not wipe out the bad credit profile that’s been created on your road to bankruptcy.

Accounts that have been reported late, gone to collection, or resulted in reposession, and that were included in your bankruptcy are still on your credit reports. Each, and all of these individual accounts are being reported as derogatory marks against you. Very often, just the sheer number of them will bring down your credit scores, because each one of these derogatory accounts takes points off your score.

Now, in case you haven’t read elsewhere on the Mortgage Match website, the minimum, midscore FICO required to obtain a zero down mortgage is 580. It’s very true that there are mortgage lenders who will approve you for a mortgage just one day after your bankruptcy discharge, but the borrower still needs to meet this minimum, midscore FICO requirement to qualify. And, it’s very rare that a borrower emerges from bankruptcy with a midscore this high. Consequently, one of the first things a borrower should do, not just for obtaining a mortgage, but for starting their credit lives over again, is to see that the individual files or accounts covered in the bankruptcy are deleted from all 3 credit reports. Bankruptcy borrowers have the right to request that the credit bureaus delete these accounts on the grounds that their dispositions were governed under the bankruptcy.

Taking steps to remove these items from your credit reports is an absolute must, and one of the fastest and easiest ways to significantly improve your credit after a bankruptcy. It’s a relatively simple process you can do yourself. There’s no need to purchase expensive credit repair. It requires just basic knowledge of how to contact, approach and deal with the credit bureaus on this issue. However, if you don’t have a clue as to how to get started, you might try this website: PDQ Credit Repair. It lays out all the basics with simple, easy-to-follow, how-to, help for the fast-track in getting back your credit life.

People with bad credit record face several problems while trying to procure a secured loan. Their bad credit history reflects that they may have arrears, defaults, county court judgements (CCJs) against their name. Some of the lenders will think twice before sanctioning a secured loan to them. Other lenders however do not give too much importance to the credit record. They know that in the case of non-payment, they can sell off the property offered as collateral and get back the amount lost.

Secured loans have many advantages for the borrower as well. For example, the terms and conditions of secured loans are easy. The borrower also has the option to choose low interest rates and longer repayment terms so that the monthly instalments remain low enough.

The disbursement of secured loans is not that fast. This is due to the evaluation of the collateral and the resultant paper work. The borrower however can easily ignore this disadvantage as getting it late is better than not getting it.

A bad credit secured loan should chiefly be utilized for improving the credit record. There is no restriction however on its use. One could use it also for other purposes like meeting holiday expenses, medical expenses, house renovation, vehicle purchase, debt consolidation, and car purchase.

Other types:
Some other types of most favoured secured loans are personal secured loan, secured homeowner loan, secured consolidation loan, low rate secured loan, cheap secured loan, and secured business loan.

Before applying for a secured loan spend some time on the internet and compare the rates of different lenders in UK. If you have doubts about something take advice from online financial experts. They will help you secure the best deal for you. Apply for online secured loans to save time and energy.
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