Hank Coleman, Author at Getting Out of Debt Q&A

Have You Been Denied Credit? Now What Should You Do?

The following is a guest post by Kostas Chiotis. If you would like to write an article for Money Q&A, please visit our Guest Posting Guidelines page.

Unless you have perfect credit, you’ve likely been on the receiving end of some of the most difficult words that there are to hear – you’re denied credit. Credit companies have very stringent rules that they follow to determine who they extend credit to. If you’re credit rating is not up to their rigorous par, it’s highly likely that you’ll be forced to rethink your financial strategy. As a smart consumer, being denied credit shouldn’t be the end of the road but instead the beginning of the path to improvement.

Find Out Why You Were Denied Credit

According to the Equal Credit Opportunity Act, creditors are required to inform you as to why your application was rejected. This notice comes in the mail, sent to the address you applied for the credit with. There are a number of different reasons that you could be denied credit for, including:

Credit usage too high
Too many previous delinquencies
Too many lines of credit
Little or no credit history
Too many credit inquiries

By taking advantage of the information that the credit company provides, you can more easily understand where the problem with your credit is so that you can take action to fix it.

How to Make the Most of a Debt Consolidation Loan

by Hank Coleman

Have you ever had a debt consolidation loan? Have you ever thought about getting a consolidation loan to clean up some credit cards with high interest rates or to bring several small debts under one monthly payment?

There are a few things that you should consider if you are going to get a debt consolidation loan. I recently wrote a guest post on badcredit.org, “How to Make the Most of a Debt Consolidation Loan“, where I listed the three ways that you can maximize your debt consolidation loan and never get into debt again.

Three Ways to Make the Most of a Debt Consolidation Loan

Look at your spending habits
Don’t shuffle money around
Throw more money at the consolidation loan

Infographic: The Generation Gap In Student Debt

by Hank Coleman

Back in the 1940s, you could get a four-year college degree for under $500, even at the most prestigious colleges. Back then, it wasn’t even necessary to get a degree. It was seen as an accomplishment for those going over and beyond their standard education. Nowadays, a four-year college degree is the equivalent to a … Read more

There Is No Better Time To Organize Your Debts

by Hank Coleman

The financial crisis was a wake-up call for those who needed to reign in their spending and limit the amount of debt they carried. If you want to end the year with less debt than you started with, then taking out a consolidation loan could be the answer.

What is a Consolidation Loan?

Basically these loans cover the existing balances on all your other unsecured debts, leaving you with one monthly repayment. They can cover anything from credit cards and store cards to personal loans. As the loan is secured on your property, some lenders can offer poor credit history loans. However, if you miss repayments, you could put your home at risk of repossession.

Your Credit Rating: Knowing How It Works And How To Improve It

by Hank Coleman

Applying for a mortgage, personal loan or even some credit cards can take a while. Searching for a lender that has the best value product in terms of payable interest is a potentially lengthy process, while completing an application often takes up even more time. However, the most time-consuming part of applying for credit is the wait to see if your credit rating is good enough.

Everyone over the age of 16 with at least minimal financial responsibilities has a credit rating to speak of, but what do they mean? In short, they’re the score given to individuals that determines whether or not they’re worthy to loan money to in the form of a cash loan, mortgage or any similar product. The higher a credit rating is, the more likely a credit application is to be accepted.

What makes a good credit rating?

Every credit rating is calculated by a number of factors. The most important are previous financial history, current levels of debt, previous instances of financial irresponsibility, previous failed applications for credit, missed or non-payment of bills and constant changes of address. Errors made in previous or your most recent application can also cost you, as can multiple open bank accounts.

Credit ratings are worked out by three main agencies: Experian, Equifax and Call Credit. All three work for the majority of major lenders in the UK, process key data and pass it onto lenders who then use it to decide whether or not to lend money to credit applicants. From the first two, you can find out what your current credit rating is and work out how to improve it.