Ways to Get Yourself Ready To Buy Your Own Home

Buying a home is a big step – for some of us, it’s the biggest financial decision we’ll make in our lives, so it can be discouraging if you are ready to for it, but some things are standing in your way.
You want your home buying journey to be a positive one, not a negative experience, and so it is crucial to make sure that you’re fully ready for it when the right time comes. Here are a couple of things you should do to get ready to buy a home.
Your Home’s Fair Market Value

Clear your debts.

One of the vital things you need to do is to start paying down your debt, especially your credit card debt. Doing so will help improve your credit score. Your credit score affects how much you’ll be qualified to borrow when applying for a mortgage.
This may seem like a redundant step, but removing your debt frees yourself from the stress of paying other things when you buy a house, plus it can make everything easier. If you’re planning on buying a home, it’ll be more beneficial to pay your debt rather than settle it, which won’t show up on your credit report.

Work on your credit.

It is crucial to clean up your credit report before even thinking of applying for a mortgage. Start this by pulling both a copy of your credit report and your credit score to assess where you stand. Higher credit score means that you can qualify for lower mortgage rates. Make sure to pay your debts that are past due. Next, work on paying your creditors religiously as soon as possible. This will boost your score.

Get a good home loan plan.

One of the best home loan options for first-time homebuyers is a fixed rate home loan. As the name suggests, you will pay a set amount every month that won’t change despite what happens in the housing market.

Save up a down payment.

Saving up a big down payment (15-20% of the home cost) will help you prove to yourself that you’re finally ready to purchase a home. It will also help you prepare for other costs that come with the home purchase. A large down payment will make homes that may seem out of reach for you become affordable because you are putting so much down for the purchase. Take your time and save up your down payment as well as the extra money you will need for closing costs on the mortgage.
You can learn more about fixed rate home loans by visiting home loan home page of lenders. The 3 year fixed rate right now from Newcastle Permanent, for instance, offers 3.94 % P.A. fixed for 3 years. However, fixed Rate home loans let you lock in your interest rate for up to 10 years, giving you the certainty of knowing what your repayments will be.

The Bottom Line

So, what’s keeping you from buying your first home? Remember, you can always procrastinate, but that home ownership won’t come anytime soon if you do. If you have solid finances, a clear goal in mind, then you’re well on your way to being a homeowner.

Key Tips to Do To Experience Debt Relief Fast

Debt is a completely normal part of life, and is something a lot of people could relate to. This means not only can people acquire debt, but it is completely possible to manage them properly. However, how can we experience debt relief when we have other expenses, other life events, and maybe even other loans and debt as well?
Debt
Luckily, debt relief methods are not exactly hard to come by. A little creativity with a dose of good planning can actually pave way to debt relief that we need. Here are some key tips to do experience debt relief fast. 

Know the Real Score 

Before we even approach the matter of debt relief, we should first realize a few things about our good old friend: debt. It is important to let it sink in our heads that debt is not something extremely bad in our lives. Debt is normal, as there really are circumstances when we cannot financially handle things and we need the proper assistance. This is not a sign of weakness, but rather a sign that we simply need a break in order to get back up.

  • With this in mind, instill in yourself that you have to assess the kind of behavior you currently have that resulted in this debt. What are the things you could do in order to avoid these next time?
  • What are good spending habits you have learned throughout the years? Is there anyway you can incorporate this in your current lifestyle to make positive changes?
  • How much debt do you have, and how do you plan on currently resolving your issue? You have to compare this plan to the one you will form once you go through the other steps, as this can reflect on the kind of behavior you have to change when it comes to looking at your debt.

A Plan Pays 

Now that you know the real deal between you and your debt, it is time to make a plan to deal with it properly. However, this does not simply mean listing finances. This involves careful planning in order to guarantee that you can experience debt relief sooner than expected. Programs like https://aaacreditguide.com/debt-relief/freedom-debt-relief/ are a great resource to look into if you’re feeling overwhelmed tackling it alone.

  • Assess your debt’s current repayment costs, periods, and interest rates. When you have these in mind, you can have a clear picture as to how long it might take for you to get your debt fully repaid.
  • Try to assess your finances and check the kind of lifestyle changes you must make in order to make the best out of your situation. What’s the fastest way to repay your debt without having to stay in debt for a long time?
  • Remember to stick with the plan. You can make adjustments when you think you are making progress, but try to be as faithful to the plan as possible. Avoid extra purchases and avoid spending lavishly when possible,.

 Advance Payments Work

When it comes to debt, the repayments always matter, but early repayments are sometimes things to look forward to. They have a lot of benefits that can help you remove your debt from your list of loans in the long run, but you have to follow these tips carefully:

  • Making an extra repayment, say, every two weeks instead of paying your repayment once a month can help reduce interest costs. Try to calculate your current trajectory for when you pay once a month and when you pay twice a month. Not only will you have a shorter amount of time before debt relief, but your credit can be raised as it sees you making two payments in just one month.
  • This is actually good practice as interest rates, when combined together, leave a huge dent in your finances outside your actual repayment, so the earlier you remove the chances of paying interest, the better.

When you are looking for debt relief within a limited timeframe, then it essentially becomes a race. However, always remember that financial matters are not things to just simply forego. Just because you want to experience debt relief in a hurry does not mean you do not follow your plan properly. 

Try to Find More Income 

Of course, stating the above are easy when we have extra profit to get debt repayments from, but what if we do not have extra profit? Why, we can actually make this work by getting profit ourselves.

  • Try to find a freelancing gig or a part time job outside your current work that can help you pay some of your repayments.
  • You can try to sell old items to help declutter, or even sell stuff you are not using but are of any value.
  • It is not bad to negotiate a raise, or even ask for extra responsibilities from your place of employment. If you explain your situation properly, they may give your offer a shot.

Conclusion 

Remember, where there is a will, there’s a way. Debt relief can be overwhelming at first, especially when we consider all the debt we have and the money we currently have. However, proper planning and the right financial management can make debt relief possible in no time at all. One must remember however that debt relief is not instant, but the above methods can help make the process faster than you normally could have estimated.

How to Build Good Credit as a Student?

College is the best time. College students have all kinds of freedom. They can live away from their homes if they wish to, always up for fun and get invited to house parties to enjoy binge drinking with their pals.
College is also the best time to build a good credit. Improving credit score is the quickest way to get financed. A good credit will pay you off for the rest of your life. So, the earlier you start building it, the better.
Tips for Students on How to Build Good Credit
The advantages of good credit are so many that it’s difficult to list all of them down. A good credit can make it easy for you to rent a condo apartment or get a loan to buy a fancy car. Here are some handy tips to help you build a decent credit:

Open a bank account 

What’s puzzling is you need credit to build credit. Sort of chicken and egg stuff. It’s puzzling no doubt, but not perplexing. Not having a credit history works in your favor. That means your slate is clean. All you need to do is open a bank account, that’s it. Doesn’t matter whether it’s a checking or savings account.
Next, you need to diligently maintain the account balance. Opening an account means getting credit, but good credit only comes as a reward for maintaining the account.
It sounds so easy, doesn’t it? In truth, it is easy if you don’t have a bad press because of poor credit history. And if you are carrying the baggage of bad credit, the remedial steps are –

Finding a co-signer 

Find someone who is reliable and has good credit. He can be a family member or a close friend. Request them to co-sign a loan issued in your name. When someone with good credit co-signs a loan or declares you as a co-holder of their credit card, their good credit passed on to you and offsets the negative impact of the bad credit you incurred in the past.
There’s a caveat, though. While riding on someone else’s back is convenient, the person carrying your weight may end up with sore back and shoulders. You don’t want that, do you? When someone else is transferring their good credit to you, it’s your responsibility not to default. Or else, the person would be in debt. This could be a sticky situation and to not let it arise, you should become an authorized user. Authorized users remain under the purview of their parents. However, that’s possible only if you are a teenager.

Get new credit card 

For college students, getting a new credit card is easy. Of course it’s not assured and several factors are at play. But when young people, especially teens apply for credit card, lenders assume their parents will come for their rescue if they ever find themselves in the thick of debt. And so, they accept their request.
If you don’t get credit card this way, no problem. You can still get a secured card. All you need to do is deposit money to your bank account. Your friends or parents can borrow you. The amount of your deposit and that of your credit limit will be the same. Banks will unhesitatingly issue you a card as you will keep money in their escrow as security.

After getting the card 

Getting a card may be difficult, but not as difficult as maintaining one. Using the credit card in a frugal way is incredibly challenging. Resisting the temptation to max out credit limit is hard. Most people easily succumb to this temptation. It’s hardly surprising that the US consumer debt has reached a staggering $13 trillion.
Prudent use of the card comes with a checklist, which includes:

  • Not using more than 30% of your credit limit.
  • Staying away from big purchases.
  • No overdue balance.
  • Pay your electricity and telephone bills on time.
  • Don’t apply for loans if you haven’t paid off the previous ones.
  • If you have taken a loan, pay the interest on time.

In short, play by the rules and don’t irk the lender. If you can follow all the said pro tips, not only you’ll have a shining credit report, but learn tons of valuable lessons on saving.

Utilize student loan 

There’s no dearth of tips on how to secure student loan. Very few, however, offer tips on how to correctly utilize it. A whole lot of students take out loan to spend on non-educational items. This is a surefire way to ruin good credit. Never do that. Always spend the money on educational purposes.
Credit bureaus have their hawk eyes open and they can see what you are doing with the borrowed money. Your credit report will reveal to them all the purchases you’ve made with the loan amount. If they find out you’ve used up the money for purposes other than education, they’ll lower your credit score. In fact, the presence of unknown items on your credit report can make it difficult for you to get a loan.

Summary 

Students have golden opportunities to build excellent credit. It’s extravagance and spunkiness that stop them from doing so. They must act wisely and in a matured way. The tips discussed can help them with requisite insights. But the implementation part solely rests with them.

How to Get an Insurance Policy with Bad Credit?

Insurance companies do their best to convince us that we are their proverbial “friends in need” and their sole intention is to help us as we are their “friends indeed.” Gullible customers get easily convinced and fall into their “High premium low claim” trap.
If, as a future insurance buyer, you want to avoid this trap, be honest and outright with insurance agencies. If there’s anything else to help you see through their lies besides being upright, it is bad credit. Hard to believe, but it could come as your saving grace in situations like that.
The sketchy insurance agent, sitting next to you and bringing all his persuasion skills into play, all the while hoping that you’ll buy from his company – tell him straight up that you have bad credit. Give him few minutes to sink that in and then ask him what kind of insurance you are going to get with that.
home insurance rate
I bet he’ll choke a few times before giving you an answer.
Such is the power of bad credit. You could use it as a filtering tool. Agencies that make over-the-top claims or conceal hidden charges will cease to bother you once you tell them that you have bad credit.

Credit record and insurance 

The bad news, however is that bad credit may have one or two upsides, but the downsides are pretty much endless. One of the downsides is that you’d be scowled by the majority of insurance providers.
Your credit record matters. It matters when you apply for a mortgage, when you apply for a loan and when you purchase insurance. Bad credit translates to low-quality insurance. Assuming you don’t have much idea about finance, here’s how bad credit makes it difficult for you to get an insurance policy that gives you good value for your money:
Insurance companies collect money from policyholders in the form of premiums. Premiums can be high or low depending on how wealthy the policyholder is and few other things. Part of the money they collect is used to pay out for settling claims.
Insurance companies want customers to buy policies with high-premium but with low-coverage. What customers want is quite the opposite. Credit report is a bargaining tool for for insurance buyers. Good credit record means better insurance offers.

What’s the solution? 

Having bad credit puts you at risk of being disadvantaged in the insurance market. The common wisdom is when you are disadvantaged, you have less options. However, that’s not true. A bad credit doesn’t necessarily mean you have to select whatever low-value insurance available to you. There are quite a few leeways for people with poor credit record and you can put them to use if you know how.

Excellent background

Credit record is not the only thing that decides whether you are eligible for insurance, how much premium you ought to be paying and your deductible amount. There are other things that could also factor in and one of them is your background.
Let’s say you want to purchase auto insurance and you have an excellent driving record. No speeding ticket, no recorded history of drunk driving; the vehicle you drive presently has never been involved in any accident – all these are brownie points getting you near a low-deductible, low-premium auto insurance.
Your age could go in favor of you or against you. You could be the most docile person on earth but if you are younger than 25, chances of getting a favorable policy are slim. Auto insurance companies use statistical models to decide the probability of an accident. Under 25 are more likely to meet an accident than those who are 25 or older.
Same way, homeowners looking for insurance, who have previously been victims of burglary or whose houses incurred some sort of damage in the past due to fire accident, or who live in hurricane prone areas are more likely to claim for reimbursement. Hence, they have less chances to get low-premium, high-claim insurance.
If the location of your home, driving history, etc are all okay, you can expect a decent insurance policy despite bad credit. However, it’s not guaranteed. This drives insurance owners to look for :-

Third-party negotiators 

Private agencies negotiate with insurance companies on behalf of their customers. They attempt to circumvent the impact of bad credit. They understand the extent of damage that bad credit can cause and in order to persuade the insurance company, they cite the goods.
Your job is to assist them. Do all the following:

  • Pay your bills on time.
  • Do not max out your credit card and follow the recommended guidelines.
  • Pay off all the unpaid debt.

Simply put, bring a consistency in your financial life. And do keep in mind this is not an one-time affair. You have to keep maintaining it – even after you get the insurance.

Choose either one 

You don’t necessarily need a private agency to negotiate. If you are willing to sacrifice either one of the two – low-premium or high-claim – then you can negotiate your way to purchasing an insurance policy, despite having bad credit.
If you have a high-paying job, I’d advise go for high-premium option. If your savings are high, low-claim would be perfect. Take ample time and think along the lines of your financial reality before taking any decision.

Summing up 

Bad credit makes it difficult for you to get an insurance deal with desirable terms and conditions. However, as we’ve discussed all through this article – it’s difficult but not impossible. You need to know the right strategies, the hacks that work.
To bring some comparison here, it’s like a game of cards. If you know how to play your cards right, you’ll end up winning the game.