The answer is Yes. The cases have to be unique however. Carrying a high balance in debt and having a high debt ratio can upset your credit score, however it is possible to achieve a high credit score if you continue to make regular payments and on time. One interesting fact is that if its an education loan, it could be $500000 or even a million dollars, this will not affect your credit score as you are not required to repay it yet. Hence education loans, although they do reflect on your credit report, do not affect your score much. If anything, if you keep on paying your other debt on time, such as your credit cards etc. Then you will be absolutely fine.
Is high credit score possible with high debt?
October 17th, 2009Is Gambling good?
October 17th, 2009Let me tell you one thing, as a recreation if you set an amount of $10 – $20 or even $50 according to your pocket then its fine. Do not become a chronic gambler. Unfortunately, casinos can play with your psyche. You may win $1000 and that may be motivating enough to bring you back to the casino but one thing is guaranteed – House always wins!! Hands down, you will eventually lose. If you feel any compulsion to gamble, its highly recommended to consult a psychiatrist or a counsellor. It has destroyed families and this can never bring you out of debt. Its best to stay away from such things.
With that, I wish everyone a Happy Diwali 2009 today!
Is there a way to get a fixed rate Consolidation loan?
October 16th, 2009With the current economy in terrible turmoil, it has been fairly difficult to secure such types of loans. Although each case is different and with economy showing slight signs of recovery, you may have a shot at it. The best thing to do is consult your financial manager at your bank branch and work out your options. If it would be for a small amount, and you have a good credit, i do not see why not. However, again – its all case by case and only your bank can advise you on this. You may shop around via phone by calling other banks but beware because all would want to do a credit check and you don’t want too many of those. If two banks deny you such a loan, its best to wait it out.
Is it possible to Defer your loan?
October 16th, 2009A lot of credit companies including Car Finance companies, mortgage companies and even for your undergraduate loans, its possible to defer your loan or make payment arrangements. I know for example in the case of GMAC, i had a friend who was 3 payments in arrears and was having a hard time catching up. Not only was this hurting his credit but also was annoyed from the daily collection calls. The company offered him to make a small payment of under $100 and defer the three payments to the end of the term and hence it brought him up to date with his payments. Now all he had to do was keep his leased vehicle three months longer and pay it off.
For students, you must make sure that if you are going to pursue post graduate courses, you can defer your undergraduate loans. You need to contact your bank to get more information on this.
Are you aware of loan Application fee and its implications?
October 15th, 2009A lot of creditors end up waiting until a consumer will himself or herself not able to make payments so they may end up in a financial turmoil and force them to refinance at a higher interest rate and consolidate. Its unfortunate but also true that such credit companies, not all i must say, but some have also introduced a loan application fee to the tune of several hundred dollars to even a couple of thousand depending on the consolidation amount which prolongs the pay off period. Its a very vicious cycle and to come out of it, Its extremely important to discuss these issues with your credit counselor or expert staff.
Such examples of charging an application fee is true for private education loans as well. Its very important to be aware of terms and conditions before engaging in any sort of contract.
Best is always to budget yourself well and pay what you can on time. This will help improve your credit score and keep you out of the financial turmoil.
0% or Low APR credit cards can also help you
October 2nd, 20090% APR Credit cards are offered by a few companies as a promotion of 12 months or even 24 months sometimes. If you have high debt on your credit card and paying interest every month. It may be best to transfer balance on a low APR cards to save on the interest.